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A BILL TO BE ENTITLED
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AN ACT
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relating to cottage food production operations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 437.001, Health and Safety Code, is |
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amended by amending Subdivision (2-b) and adding Subdivisions (3) |
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and (5-a) to read as follows: |
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(2-b) "Cottage food production operation" means an |
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individual, operating out of the individual's home, who or a |
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nonprofit organization that: |
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(A) produces at the individual's home or the home |
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of an individual who is a director or officer of the nonprofit |
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organization, as applicable, subject to Section 437.0196: |
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(i) a baked good [that is not a time and |
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temperature control for safety food, as defined by Section |
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437.0196]; |
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(ii) candy; |
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(iii) coated and uncoated nuts; |
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(iv) unroasted nut butters; |
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(v) fruit butters; |
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(vi) a canned jam or jelly; |
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(vii) a fruit pie; |
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(viii) dehydrated fruit or vegetables, |
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including dried beans; |
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(ix) popcorn and popcorn snacks; |
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(x) cereal, including granola; |
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(xi) dry mix; |
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(xii) vinegar; |
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(xiii) pickled fruit or vegetables, |
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including beets and carrots, that are preserved in vinegar, brine, |
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or a similar solution at an equilibrium pH value of 4.6 or less; |
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(xiv) mustard; |
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(xv) roasted coffee or dry tea; |
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(xvi) a dried herb or dried herb mix; |
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(xvii) plant-based acidified canned goods; |
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(xviii) fermented vegetable products, |
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including products that are refrigerated to preserve quality; |
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(xix) frozen raw and uncut fruit or |
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vegetables; or |
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(xx) any other food that is not a time and |
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temperature control for safety food, as defined by Section |
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437.0196; |
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(B) has an annual gross income of $100,000 |
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[$50,000] or less from the sale of food described by Paragraph (A); |
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(C) sells the foods produced under Paragraph (A) |
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[only] directly to consumers or to a cottage food vendor; and |
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(D) delivers products to the consumer or cottage |
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food vendor at the point of sale or another location designated by |
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the consumer or cottage food vendor. |
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(3) "Cottage food vendor" means a person who: |
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(A) has a contractual relationship with a cottage |
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food production operation; and |
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(B) sells food described by Subdivision (2-b)(A) |
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on behalf of the cottage food production operation directly to |
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consumers. |
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(5-a) "Nonprofit organization" means an organization |
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exempt from federal income tax under Section 501(a), Internal |
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Revenue Code of 1986, as an organization described by Section |
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501(c)(3) of that code. |
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SECTION 2. Section 437.0192, Health and Safety Code, is |
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amended by amending Subsection (a) and adding Subsection (c) to |
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read as follows: |
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(a) A local government authority, including a local health |
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department, may not: |
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(1) regulate the production of food at a cottage food |
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production operation; or |
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(2) require a cottage food production operation to |
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obtain any type of license or permit or pay any fee to sell food |
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described by Section 437.001(2-b)(A) directly to a consumer or |
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cottage food vendor. |
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(c) A local government authority, including a local health |
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department, may not employ or continue to employ a person who |
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knowingly requires or attempts to require a cottage food production |
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operation to obtain a license or permit in violation of Subsection |
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(a)(2). |
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SECTION 3. Section 437.0193, Health and Safety Code, is |
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amended by amending Subsection (b) and adding Subsections (b-1) and |
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(e) to read as follows: |
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(b) The executive commissioner shall adopt rules requiring |
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a cottage food production operation to label all of the foods |
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described in Section 437.001(2-b)(A) that the operation sells to |
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consumers. The label must include: |
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(1) the name and address of the cottage food |
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production operation; [and] |
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(2) at least one of the following for the cottage food |
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production operation: |
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(A) the phone number; |
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(B) the e-mail address; or |
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(C) the mailing address; and |
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(3) the following disclosure: |
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"THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE AND IS NOT |
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SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION. THIS PRODUCT MAY |
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CONTAIN ALLERGENS." [a statement that the food is not inspected by |
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the department or a local health department.] |
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(b-1) Notwithstanding Subsection (b)(1), a cottage food |
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production operation is not required to include on a food label the |
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address of the operation if the operation registers with the |
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department in the form and manner prescribed by the department. The |
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executive commissioner may adopt rules to implement this |
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subsection. |
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(e) A cottage food production operation that sells time and |
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temperature control for safety baked goods must include on the |
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label of the food or on an invoice or receipt provided with the food |
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when sold the following statement in at least 12-point font: "SAFE |
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HANDLING INSTRUCTIONS: To prevent illness from bacteria, keep this |
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food refrigerated or frozen until the food is prepared for |
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consumption." |
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SECTION 4. Section 437.0194, Health and Safety Code, is |
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amended by amending Subsections (a) and (c) and adding Subsection |
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(a-1) to read as follows: |
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(a) Except as provided by Subsection (a-1), a [A] cottage |
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food production operation may not sell any of the foods described in |
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Section 437.001(2-b)(A) at wholesale. |
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(a-1) A cottage food production operation may sell food |
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described by Section 437.001(2-b)(A) to a cottage food vendor at |
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wholesale. |
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(c) The operator of a cottage food production operation that |
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sells a food described by Section 437.001(2-b)(A) in this state in |
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the manner described by Subsection (b): |
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(1) is not required to include the information |
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required under Section 437.0193(b)(2) for [address of] the |
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operation in the labeling information required under Subsection |
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(b)(2) before the operator accepts payment for the food; and |
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(2) shall provide the information required under |
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Section 437.0193(b)(2) for [address of] the operation on the label |
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of the food in the manner required by that subdivision [Section |
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437.0193(b)] after the operator accepts payment for the food. |
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SECTION 5. Chapter 437, Health and Safety Code, is amended |
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by adding Section 437.01953 to read as follows: |
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Sec. 437.01953. REQUIREMENTS FOR SALE OF CERTAIN BAKED |
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GOODS. A cottage food production operation that sells to consumers |
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time and temperature control for safety baked goods shall: |
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(1) store and deliver the food at the air temperature |
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necessary to prevent the growth of bacteria that may cause human |
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illness; and |
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(2) label the food in accordance with Section |
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437.0193(e). |
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SECTION 6. Section 437.0196(a), Health and Safety Code, is |
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amended to read as follows: |
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(a) In this section, "time and temperature control for |
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safety food" means a food that requires time and temperature |
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control for safety to limit pathogen growth or toxin production. |
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The term includes a food that must be held under proper temperature |
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controls, such as refrigeration, to prevent the growth of bacteria |
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that may cause human illness. A time and temperature control for |
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safety food may include a food that contains protein and moisture |
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and is neutral or slightly acidic, such as meat, poultry, fish, and |
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shellfish products, pasteurized and unpasteurized milk and dairy |
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products, raw seed sprouts, [baked goods that require |
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refrigeration, including cream or custard pies or cakes,] and ice |
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products. The term does not include: |
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(1) a food that uses time and temperature control for |
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safety food as ingredients if the final food product does not |
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require time or temperature control for safety to limit pathogen |
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growth or toxin production; or |
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(2) a baked good, including a baked good that: |
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(A) contains pasteurized and unpasteurized milk |
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and dairy products; or |
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(B) requires refrigeration. |
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SECTION 7. Chapter 437, Health and Safety Code, is amended |
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by adding Section 437.01965 to read as follows: |
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Sec. 437.01965. COTTAGE FOOD VENDOR. (a) A cottage food |
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vendor may sell food described by Section 437.001(2-b)(A) directly |
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to consumers at a farmers' market, farm stand, food service |
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establishment, or retail food store. |
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(b) A cottage food vendor who sells food described by |
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Section 437.001(2-b)(A) must display in a prominent place near the |
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location where the food is offered for sale a sign with the |
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following disclosure: |
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"THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE AND IS NOT |
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SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION. THIS PRODUCT MAY |
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CONTAIN ALLERGENS." |
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(c) A cottage food vendor that purchases food from a cottage |
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food production operation at wholesale shall register with the |
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department in the form and manner prescribed by the department. The |
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executive commissioner may adopt rules to implement this |
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subsection. |
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SECTION 8. This Act takes effect September 1, 2023. |
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* * * * * |