Relating to cottage food production operations, the official text

S.B. No. 541

AN ACT

relating to cottage food production operations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 437.001, Health and Safety Code, is

amended by amending Subdivision (2-b) and adding Subdivisions (3)

and (5-a) to read as follows:

(2-b) "Cottage food production operation" means an

individual, operating out of the individual's home, or a nonprofit

organization that [who]:

(A) produces at the individual's home or the home

of an individual who is a director or officer of the nonprofit

organization, as applicable, any food other than [subject to

Section 437.0196]:

(i) meat, meat products, poultry, or

poultry products;

(ii) seafood, including seafood products,

fish, fish products, shellfish, and shellfish products;

(iii) ice or ice products, including shaved

ice, ice cream, frozen custard, popsicles, and gelato;

(iv) low-acid canned goods;

(v) products containing cannabidiol or

tetrahydrocannabinol; or

(vi) raw milk and raw milk products [a baked

good that is not a time and temperature control for safety food, as

defined by Section 437.0196;

[(ii) candy;

[(iii) coated and uncoated nuts;

[(iv) unroasted nut butters;

[(v) fruit butters;

[(vi) a canned jam or jelly;

[(vii) a fruit pie;

[(viii) dehydrated fruit or vegetables,

including dried beans;

[(ix) popcorn and popcorn snacks;

[(x) cereal, including granola;

[(xi) dry mix;

[(xii) vinegar;

[(xiii) pickled fruit or vegetables,

including beets and carrots, that are preserved in vinegar, brine,

or a similar solution at an equilibrium pH value of 4.6 or less;

[(xiv) mustard;

[(xv) roasted coffee or dry tea;

[(xvi) a dried herb or dried herb mix;

[(xvii) plant-based acidified canned

goods;

[(xviii) fermented vegetable products,

including products that are refrigerated to preserve quality;

[(xix) frozen raw and uncut fruit or

vegetables; or

[(xx) any other food that is not a time and

temperature control for safety food, as defined by Section

437.0196];

(B) has an annual gross income of $150,000

[$50,000] or less from the sale of food described by Paragraph (A),

as the department annually adjusts for inflation using the Consumer

Price Index for All Urban Consumers (CPI-U) published by the United

States Bureau of Labor Statistics or its successor in function;

(C) sells the foods produced under Paragraph (A)

[only] directly to consumers or to a cottage food vendor; and

(D) delivers products to the consumer or cottage

food vendor at the point of sale or another location designated by

the consumer or cottage food vendor.

(3) "Cottage food vendor" means a person located in

this state who:

(A) has a contractual relationship with a cottage

food production operation; and

(B) sells directly to consumers located in this

state on behalf of the cottage food production operation a food

other than a time and temperature control for safety food.

(5-a) "Nonprofit organization" means an organization

exempt from federal income tax under Section 501(a), Internal

Revenue Code of 1986, as an organization described by Section

501(c)(3) of that code.

SECTION 2. Section 437.0196(a), Health and Safety Code, is

redesignated as Section 437.001(8), Health and Safety Code, and

amended to read as follows:

(8) "Time [(a) In this section, "time] and

temperature control for safety food" means a food that requires

time and temperature control for safety to limit pathogen growth or

toxin production. The term includes a food that must be held under

proper temperature controls, such as refrigeration, to prevent the

growth of bacteria that may cause human illness. The term:

(A) [A time and temperature control for safety

food] may include a food that contains protein and moisture and is

neutral or slightly acidic, such as meat, poultry, fish, and

shellfish products, pasteurized and unpasteurized milk and dairy

products, raw seed sprouts, baked goods that require refrigeration,

including cream or custard pies or cakes, and ice products; and

(B) [. The term] does not include a food that

uses time and temperature control for safety food as ingredients if

the final food product does not require time or temperature control

for safety to limit pathogen growth or toxin production.

SECTION 3. Section 437.0191, Health and Safety Code, is

amended by adding Subsection (c) to read as follows:

(c) Notwithstanding any other law, a cottage food

production operation that manufactures and distributes at

wholesale cottage food for resale by others is exempt from

department licensing requirements under Chapter 431.

SECTION 4. Section 437.0192, Health and Safety Code, is

amended by amending Subsection (a) and adding Subsection (c) to

read as follows:

(a) A local government authority, including a local health

department, may not:

(1) regulate the production of food at a cottage food

production operation; or

(2) require a cottage food production operation to

obtain any type of license or permit or pay any fee to produce or

sell directly to a consumer or cottage food vendor, or to provide

samples directly to a consumer, a food other than a food described

by Sections 437.001(2-b)(A)(i)-(vi).

(c) A local government authority, including a local health

department, may not employ or continue to employ a person who

knowingly requires or attempts to require a cottage food production

operation to obtain a license or permit in violation of Subsection

(a)(2).

SECTION 5. Section 437.0193, Health and Safety Code, is

amended by amending Subsections (a) and (b) and adding Subsections

(b-1) and (e) to read as follows:

(a) Food [described by Section 437.001(2-b)(A)] sold by a

cottage food production operation must be packaged in a manner that

prevents product contamination, except that a food item is not

required to be packaged if it is too large or bulky for conventional

packaging.

(b) The executive commissioner shall adopt rules requiring

a cottage food production operation to label all of the foods

[described in Section 437.001(2-b)(A) that] the operation sells to

consumers. The label must include:

(1) the name and address of the cottage food

production operation; and

(2) the following disclosure:

"THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT

SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION." [a statement that

the food is not inspected by the department or a local health

department.]

(b-1) Notwithstanding Subsection (b)(1), a cottage food

production operation is not required to include on a food label the

address of the operation if the operation registers with the

department in the form and manner the department prescribes, and

includes on the label a unique identification number provided by

the department. The executive commissioner may adopt rules to

implement this subsection.

(e) A cottage food production operation that sells a time

and temperature control for safety food must include:

(1) on the food label the date the food was made; and

(2) on the food label or on an invoice or receipt

provided with the food when sold the following statement in at least

12-point font: "SAFE HANDLING INSTRUCTIONS: To prevent illness from

bacteria, keep this food refrigerated or frozen until the food is

prepared for consumption."

SECTION 6. Section 437.0194, Health and Safety Code, is

amended to read as follows:

Sec. 437.0194. CERTAIN SALES BY COTTAGE FOOD PRODUCTION

OPERATIONS PROHIBITED OR RESTRICTED. (a) Except as provided by

Subsection (a-1), a [A] cottage food production operation may not

sell food [any of the foods described in Section 437.001(2-b)(A)]

at wholesale.

(a-1) A cottage food production operation may sell to a

cottage food vendor at wholesale food other than a food described by

Sections 437.002(2-b)(A)(i)-(vi) or a time and temperature control

for safety food.

(b) A cottage food production operation may sell a food

other than a food described by Sections 437.002(2-b)(A)(i)-(vi)

[Section 437.001(2-b)(A)] in this state through the Internet [or by

mail order] only if:

(1) the consumer purchases the food through the

Internet [or by mail order] from the operation and the operator or

operator's employee or household member personally delivers the

food to the consumer; and

(2) subject to Subsection (c), before the operator

accepts payment for the food, the operator provides all labeling

information required by Section 437.0193(e) [437.0193(d)] and

department rules to the consumer by[:

[(A)] posting a legible statement on the

operation's Internet website[;

[(B) publishing the information in a catalog; or

[(C) otherwise communicating the information to

the consumer].

(c) The operator of a cottage food production operation that

sells a food [described by Section 437.001(2-b)(A)] in this state

in the manner described by Subsection (b):

(1) is not required to include the address of the

operation in the labeling information required under Subsection

(b)(2) before the operator accepts payment for the food; and

(2) shall provide the address or unique identification

number of the operation on the label of the food in the manner

required by Section 437.0193(b) or (b-1) after the operator accepts

payment for the food.

SECTION 7. Chapter 437, Health and Safety Code, is amended

by adding Sections 437.01953, 437.01955, and 437.01965 to read as

follows:

Sec. 437.01953. REQUIREMENTS FOR SALE OF CERTAIN FOOD. (a)

A cottage food production operation that sells to consumers a time

and temperature control for safety food shall:

(1) register with the department in the form and

manner prescribed by the department;

(2) store and deliver the food at the air temperature

necessary to prevent the growth of bacteria that may cause human

illness; and

(3) label the food in accordance with Section

437.0193.

(b) The executive commissioner may adopt rules to implement

this section.

Sec. 437.01955. SAMPLING AND DONATION OF COTTAGE FOOD. (a)

A cottage food production operation may provide samples of its

products to consumers at any location in this state in accordance

with the standards provided by Section 437.020(c).

(b) A cottage food production operation may donate food

other than time and temperature control for safety food for sale or

service at an event, including a religious or charitable

organization's bake sale, to the same extent an individual is

allowed by law to donate food.

Sec. 437.01965. COTTAGE FOOD VENDOR. (a) A cottage food

vendor may sell food produced by a cottage food production

operation in accordance with Section 437.0194(a-1) directly to

consumers at a farmers' market, a farm stand, a food service

establishment, or any retail store.

(b) A cottage food vendor who sells food described by

Subsection (a) must display in a prominent place near the location

where the food is offered for sale a sign with the following

disclosure:

"THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT

SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION."

(c) Food produced by a cottage food production operation and

sold by a cottage food vendor must include on the label the date the

food was made.

(d) A cottage food vendor that purchases food from a cottage

food production operation at wholesale shall register with the

department in the form and manner the department prescribes. The

executive commissioner may adopt rules to implement this

subsection.

SECTION 8. The following provisions of the Health and

Safety Code are repealed:

(1) Section 437.0193(d);

(2) Section 437.01952;

(3) the heading to Section 437.0196; and

(4) Section 437.0196(b).

SECTION 9. This Act takes effect September 1, 2025.

______________________________
______________________________

President of the Senate
Speaker of the House

I hereby certify that S.B. No. 541 passed the Senate on

April 10, 2025, by the following vote: Yeas 30, Nays 0; and that

the Senate concurred in House amendments on May 20, 2025, by the

following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 541 passed the House, with

amendments, on May 13, 2025, by the following vote: Yeas 135,

Nays 5, three present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor