HB 520

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)
(2-b)  "Cottage food production operation" means an
individual, operating out of the individual's home, who or a
(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, including a baked good
that requires [is not a] time and temperature control for safety to
limit pathogen growth or toxin production, but does not contain
meat, poultry, shellfish, or fish [food, as defined by Section
(iii)  coated and uncoated nuts;
(viii)  dehydrated fruit or vegetables,
(ix)  popcorn and popcorn snacks;
(x)  cereal, including granola;
(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;
(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
(xx)  any other food that is not a time and
temperature control for safety food, as defined by Section
437.0196, subject to Subparagraph (i);
(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
(B)  sells food described by Subdivision
(2-b)(A), except baked goods, 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
SECTION 2.  Section 437.0192, Health and Safety Code, is
amended by amending Subsection (a) and adding Subsection (c) to
(a)  A local government authority, including a local health
(1)  regulate the production of food at a cottage food
(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
(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
SECTION 3.  Section 437.0193, Health and Safety Code, is
amended by amending Subsection (b) and adding Subsections (b-1) and
(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
(2)  the words "prepared on" immediately followed by
the date on which the food is prepared; and
"THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE AND IS NOT
SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION." [a statement that
the food is not inspected by the department or a local health
(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.  The
executive commissioner may adopt rules to implement this
(e)  A cottage food production operation that sells time and
temperature control for safety baked goods must include 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 4.  Section 437.0194, Health and Safety Code, is
amended by amending Subsection (a) and adding Subsection (a-1) to
(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), except baked goods, to a
cottage food vendor at wholesale.
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
(2)  label the food in accordance with Section
SECTION 6.  Section 437.0196(a), Health and Safety Code, is
(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 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 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), except
baked goods, directly to consumers at a farmers' market, farm
stand, food service establishment, or any retail 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
"THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE AND IS NOT
SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION."
(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 the department prescribes.  The
executive commissioner may adopt rules to implement this
SECTION 8.  This Act takes effect September 1, 2025.