H.B. No. 970
 
 
 
 
AN ACT
  relating to 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 (2-a) and (2-b) and adding
  Subdivision (3-b) to read as follows:
               (2-a)  "Baked good" includes cookies, cakes, breads,
  Danish, donuts, pastries, pies, and other items that are prepared
  by baking the item in an oven.  [A baked good 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 at the individual's home, subject to
  Section 437.0196:
                           (i)  a baked good that is not a potentially
  hazardous 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)  pickles;
                           (xiv)  mustard;
                           (xv)  roasted coffee or dry tea;[,] or
                           (xvi)  a dried herb or dried herb mix [for
  sale at the person's home];
                     (B)  has an annual gross income of $50,000 or less
  from the sale of food described by Paragraph (A); [and]
                     (C)  sells the foods produced under Paragraph (A)
  only directly to consumers at the individual's home, a farmers'
  market, a farm stand, or a municipal, county, or nonprofit fair,
  festival, or event; and
                     (D)  delivers products to the consumer at the
  point of sale or another location designated by the consumer.
               (3-b)  "Farm stand" means a premises owned and operated
  by a producer of agricultural food products at which the producer or
  other persons may offer for sale produce or foods described by
  Subdivision (2-b)(A).
         SECTION 2.  Section 437.0191, Health and Safety Code, is
  amended to read as follows:
         Sec. 437.0191.  EXEMPTION FOR COTTAGE FOOD PRODUCTION
  OPERATIONS. (a)  A cottage food production operation is not a food
  service establishment for purposes of this chapter.
         (b)  The exemption provided by Subsection (a) does not affect
  the application of Sections 431.045, 431.0495, and 431.247
  authorizing the department or other local health authority to act
  to prevent an immediate and serious threat to human life or health.
         SECTION 3.  The heading to Section 437.0192, Health and
  Safety Code, is amended to read as follows:
         Sec. 437.0192.  REGULATION OF COTTAGE FOOD PRODUCTION
  OPERATIONS BY LOCAL GOVERNMENT AUTHORITIES [HEALTH DEPARTMENT]
  PROHIBITED; COMPLAINTS.
         SECTION 4.  Section 437.0192(a), Health and Safety Code, is
  amended to read as follows:
         (a)  A local government authority, including a local health
  department, may not regulate the production of food at a cottage
  food production operation.
         SECTION 5.  Sections 437.0193 and 437.0194, Health and
  Safety Code, are amended to read as follows:
         Sec. 437.0193.  PACKAGING AND LABELING REQUIREMENTS FOR
  COTTAGE FOOD PRODUCTION OPERATIONS.  (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)  a statement that the food is not inspected by the
  department or a local health department.
         (c)  For foods not required to be packaged under Subsection
  (a), the information required to be included on the label under
  Subsection (b) must be provided to the consumer on an invoice or
  receipt.
         Sec. 437.0194.  CERTAIN SALES BY COTTAGE FOOD PRODUCTION
  OPERATIONS [THROUGH THE INTERNET] PROHIBITED.  A cottage food
  production operation may not sell any of the foods described in
  Section 437.001(2-b)(A):
               (1)  through the Internet;
               (2)  by mail order; or
               (3)  at wholesale.
         SECTION 6.  Chapter 437, Health and Safety Code, is amended
  by adding Sections 437.0195 and 437.0196 to read as follows:
         Sec. 437.0195.  PRODUCTION OF COTTAGE FOOD PRODUCTS. (a) An
  individual who operates a cottage food production operation must
  have successfully completed a basic food safety education or
  training program for food handlers accredited under Subchapter D,
  Chapter 438.
         (b)  An individual may not process, prepare, package, or
  handle cottage food products unless the individual:
               (1)  meets the requirements of Subsection (a);
               (2)  is directly supervised by an individual described
  by Subsection (a); or
               (3)  is a member of the household in which the cottage
  food products are produced.
         Sec. 437.0196.  POTENTIALLY HAZARDOUS FOOD; PROHIBITION FOR
  COTTAGE FOOD PRODUCTION OPERATIONS. (a) In this section,
  "potentially hazardous 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. A potentially hazardous
  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. The
  term does not include a food that uses potentially hazardous food as
  ingredients if the final food product does not require time or
  temperature control for safety to limit pathogen growth or toxin
  production.
         (b)  A cottage food production operation may not sell to
  customers potentially hazardous foods.
         SECTION 7.  Chapter 211, Local Government Code, is amended
  by adding Subchapter C to read as follows:
  SUBCHAPTER C. REGULATION OF COTTAGE FOOD PRODUCTION OPERATIONS
         Sec. 211.031.  DEFINITIONS. In this subchapter, "cottage
  food production operation" and "home" have the meanings assigned by
  Section 437.001, Health and Safety Code.
         Sec. 211.032.  CERTAIN ZONING REGULATIONS PROHIBITED. A
  municipal zoning ordinance may not prohibit the use of a home for
  cottage food production operations.
         Sec. 211.033.  ACTION FOR NUISANCE OR OTHER TORT. This
  subchapter does not affect the right of a person to bring a cause of
  action under other law against an individual for nuisance or
  another tort arising out of the individual's use of the individual's
  home for cottage food production operations.
         SECTION 8.  Chapter 231, Local Government Code, is amended
  by adding Subchapter M to read as follows:
  SUBCHAPTER M. REGULATION OF COTTAGE FOOD PRODUCTION OPERATIONS
         Sec. 231.281.  DEFINITIONS. In this subchapter, "cottage
  food production operation" and "home" have the meanings assigned by
  Section 437.001, Health and Safety Code.
         Sec. 231.282.  CERTAIN ZONING REGULATIONS PROHIBITED. A
  county zoning ordinance may not prohibit the use of a home for
  cottage food production operations.
         Sec. 231.283.  ACTION FOR NUISANCE OR OTHER TORT. This
  subchapter does not affect the right of a person to bring a cause of
  action under other law against an individual for nuisance or
  another tort arising out of the individual's use of the individual's
  home for cottage food production operations.
         SECTION 9.  Notwithstanding Section 437.0195, Health and
  Safety Code, as added by this Act, an individual operating a cottage
  food production operation is not required to complete a basic food
  safety education or training program for food handlers before
  January 1, 2014.
         SECTION 10.  This Act takes effect September 1, 2013.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 970 was passed by the House on May 6,
  2013, by the following vote:  Yeas 143, Nays 2, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 970 was passed by the Senate on May
  22, 2013, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor