Bill Text: TX HB1139 | 2011-2012 | 82nd Legislature | Introduced

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Bill Title: Relating to the regulation of cottage food products and cottage food production operations.

Sponsorship: Bipartisan Bill

Status: (Introduced - Dead) 2011-04-20 - Left pending in committee [HB1139 Detail]

Download: Texas-2011-HB1139-Introduced.html

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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.