|
|
A BILL TO BE ENTITLED
|
|
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, who or a |
|
nonprofit organization that: |
|
(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, subject to Section 437.0196: |
|
(i) 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 $100,000 |
|
[$50,000] or less from the sale of food described by Paragraph (A); |
|
(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 who: |
|
(A) has a contractual relationship with a cottage |
|
food production operation; and |
|
(B) sells food described by Subdivision (2-b)(A) |
|
on behalf of the cottage food production operation directly to |
|
consumers. |
|
(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 437.0192, 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 sell food |
|
described by Section 437.001(2-b)(A) directly to a consumer or |
|
cottage food vendor. |
|
(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 3. Section 437.0193, Health and Safety Code, is |
|
amended by amending Subsection (b) and adding Subsections (b-1) and |
|
(e) to read as follows: |
|
(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) at least one of the following for the cottage food |
|
production operation: |
|
(A) the phone number; |
|
(B) the e-mail address; or |
|
(C) the mailing address; and |
|
(3) the following disclosure: |
|
"THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE AND IS NOT |
|
SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION. THIS PRODUCT MAY |
|
CONTAIN ALLERGENS." [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 prescribed by the department. The |
|
executive commissioner may adopt rules to implement this |
|
subsection. |
|
(e) A cottage food production operation that sells time and |
|
temperature control for safety baked goods must include on the |
|
label of the food 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 4. Section 437.0194, Health and Safety Code, is |
|
amended by amending Subsections (a) and (c) and adding Subsection |
|
(a-1) to read as follows: |
|
(a) Except as provided by Subsection (a-1), a [A] cottage |
|
food production operation may not sell any of the foods described in |
|
Section 437.001(2-b)(A) at wholesale. |
|
(a-1) A cottage food production operation may sell food |
|
described by Section 437.001(2-b)(A) to a cottage food vendor at |
|
wholesale. |
|
(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 information |
|
required under Section 437.0193(b)(2) for [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 information required under |
|
Section 437.0193(b)(2) for [address of] the operation on the label |
|
of the food in the manner required by that subdivision [Section |
|
437.0193(b)] after the operator accepts payment for the food. |
|
SECTION 5. Chapter 437, Health and Safety Code, is amended |
|
by adding Section 437.01953 to read as follows: |
|
Sec. 437.01953. REQUIREMENTS FOR SALE OF CERTAIN BAKED |
|
GOODS. A cottage food production operation that sells to consumers |
|
time and temperature control for safety baked goods shall: |
|
(1) store and deliver the food at the air temperature |
|
necessary to prevent the growth of bacteria that may cause human |
|
illness; and |
|
(2) label the food in accordance with Section |
|
437.0193(e). |
|
SECTION 6. Section 437.0196(a), Health and Safety Code, is |
|
amended to read as follows: |
|
(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. 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. The term does not include: |
|
(1) 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; or |
|
(2) a baked good, including a baked good that: |
|
(A) contains pasteurized and unpasteurized milk |
|
and dairy products; or |
|
(B) requires refrigeration. |
|
SECTION 7. Chapter 437, Health and Safety Code, is amended |
|
by adding Section 437.01965 to read as follows: |
|
Sec. 437.01965. COTTAGE FOOD VENDOR. (a) A cottage food |
|
vendor may sell food described by Section 437.001(2-b)(A) directly |
|
to consumers at a farmers' market, farm stand, food service |
|
establishment, or retail food store. |
|
(b) A cottage food vendor who sells food described by |
|
Section 437.001(2-b)(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 AND IS NOT |
|
SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION. THIS PRODUCT MAY |
|
CONTAIN ALLERGENS." |
|
(c) 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 prescribed by the department. The |
|
executive commissioner may adopt rules to implement this |
|
subsection. |
|
SECTION 8. This Act takes effect September 1, 2023. |