82R6206 YDB-D
 
  By: Rodriguez H.B. No. 1139
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the regulation of cottage food products and 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 Subdivisions (1) and (3) and adding
  Subdivisions (1-a), (2-a), (2-b), (3-a), and (5) to read as
  follows:
               (1)  "Baked good" includes cookies, cakes, bread,
  Danish, donuts, pastries, pies, and other similar items prepared by
  baking the item in an oven.
               (1-a)  "Board" means the executive commissioner [Texas
  Board of Health].
               (2-a)  "Cottage food product" means a baked good,
  canned jam or jelly, dried fruit, candy, snack food, cereal,
  granola, dry mix, vinegar, or a dried herb produced for sale by a
  cottage food production operation. A cottage food product does not
  include a potentially hazardous food item as defined by department
  rule.
               (2-b)  "Cottage food production operation" means an
  individual, operating out of the individual's home, who:
                     (A)  produces a cottage food product for sale at
  the individual's home or at:
                           (i)  a farmers' market or farm market or
  roadside stand;
                           (ii)  a county fair or municipal or county
  celebration, festival, or event; or
                           (iii)  an event held or sponsored by a
  religious or nonprofit organization;
                     (B)  does not offer a food item other than a
  cottage food product for sale at a location listed in Paragraph (A);
  and
                     (C)  has annual gross sales of $150,000 or less
  from the sale of cottage food products.
               (3)  "Department" means the [Texas] Department of State
  Health Services.
               (3-a)  "Executive commissioner" means the executive
  commissioner of the Health and Human Services Commission.
               (5)  "Home" means a primary residence that contains a
  kitchen and appliances designed for common residential use.
         SECTION 2.  Chapter 437, Health and Safety Code, is amended
  by adding Sections 437.022 through 437.028 to read as follows:
         Sec. 437.022.  EXEMPTION FOR COTTAGE FOOD PRODUCTION
  OPERATION. (a) A cottage food production operation is not a food
  service establishment or roadside food vendor for purposes of this
  chapter.
         (b)  The exemption provided by Subsection (a) does not affect
  the application of any other state or federal law or an applicable
  ordinance enacted by a local governmental entity.
         Sec. 437.023.  PERMIT FROM DEPARTMENT REQUIRED FOR COTTAGE
  FOOD PRODUCTION OPERATION. (a)  A person may not operate a cottage
  food production operation unless the person holds a permit issued
  by the department.
         (b)  A person required to obtain a permit under Subsection
  (a) must apply annually for the permit and pay the fees required by
  the department.
         Sec. 437.024.  COTTAGE FOOD PRODUCT LABELING REQUIREMENTS.
  (a) A cottage food production operation shall prepackage and
  properly label each cottage food product the operation offers for
  sale.
         (b)  The label at a minimum must include:
               (1)  the name and address of the cottage food
  production operation;
               (2)  the name of the cottage food product;
               (3)  the ingredients in the cottage food product in
  descending order of predominance by weight;
               (4)  the net weight or net volume of the cottage food
  product;
               (5)  any labeling information required by federal law;
  and
               (6)  the following statement in at least the equivalent
  of 11-point font in a color that provides a clear contrast to the
  background: "Made in a home kitchen that is not routinely inspected
  by a state or local health authority."
         Sec. 437.025.  PRODUCTION OF COTTAGE FOOD PRODUCTS. (a)  An
  individual may not directly engage in the processing, preparing,
  packaging, or handling of cottage food products and may not be
  present during the production of the products in any area where the
  products are produced for sale unless the individual is the holder
  of the cottage food production operation permit or is under the
  direct supervision of the permit holder.
         (b)  An individual who processes, prepares, packages, or
  handles cottage food products must have adequate knowledge of safe
  food handling practices and must have successfully completed a
  basic food safety education or training program for food handlers
  accredited under Subchapter D, Chapter 438.
         Sec. 437.026.  LIMITATIONS ON SALE AND STORAGE OF COTTAGE
  FOOD PRODUCT. (a) A cottage food product may only be sold directly
  from the cottage food production operation to the consumer and may
  not be resold.
         (b)  A cottage food product may not be sold:
               (1)  over the Internet;
               (2)  by mail order;
               (3)  by consignment; or
               (4)  at wholesale.
         (c)  A cottage food production operation may not store a
  cottage food product at a location other than the home at which the
  product was produced.
         Sec. 437.027.  ESTABLISHMENT OF SALES OF COTTAGE FOOD
  PRODUCTION OPERATION. The department may require a cottage food
  production operation to provide the department with a current
  financial statement or federal income tax return to establish that
  the annual gross sales of the operation do not exceed $150,000.
         Sec. 437.028.  INVESTIGATION OR INSPECTION OF COTTAGE FOOD
  PRODUCTION OPERATION IN CERTAIN CIRCUMSTANCES; ADOPTION OF RULES.
  (a) The executive commissioner by rule may require an investigation
  of a cottage food production operation if the department has reason
  to believe that the cottage food production operation is operating
  in violation of Section 437.023, 437.024, 437.025, or 437.026 or a
  rule adopted under those sections.
         (b)  If a person files with the department a complaint
  alleging that a cottage food production operation is violating an
  applicable provision of this chapter or a rule adopted under this
  chapter, an authorized agent or employee of the department may
  enter the premises of the cottage food production operation to
  conduct an inspection of the operation to determine compliance with
  this chapter and department rules.  The inspection shall be
  conducted on the days and at times cottage food products are being
  processed, prepared, packaged, or handled as provided by department
  rules.
         (c)  The executive commissioner shall adopt the rules
  necessary to implement this section and Sections 437.022 through
  437.027.
         SECTION 3.  Not later than January 1, 2012, the executive
  commissioner of the Health and Human Services Commission shall
  adopt the rules necessary to implement Sections 437.022 through
  437.028, Health and Safety Code, as added by this Act.
         SECTION 4.  (a)  Except as provided by Subsection (b) of
  this section, this Act takes effect September 1, 2011.
         (b)  Sections 437.023 and 437.024, Health and Safety Code, as
  added by this Act, take effect January 1, 2012.