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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of cottage food products and cottage |
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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 Subdivisions (1) and (3) and adding |
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Subdivisions (1-a), (2-a), (2-b), (3-a), and (5) to read as |
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follows: |
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(1) "Baked good" includes cookies, cakes, bread, |
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Danish, donuts, pastries, pies, and other similar items prepared by |
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baking the item in an oven. |
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(1-a) "Board" means the executive commissioner [Texas
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Board of Health]. |
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(2-a) "Cottage food product" means a baked good, |
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canned jam or jelly, dried fruit, candy, snack food, cereal, |
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granola, dry mix, vinegar, or a dried herb produced for sale by a |
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cottage food production operation. A cottage food product does not |
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include a potentially hazardous food item as defined by department |
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rule. |
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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: |
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(A) produces a cottage food product for sale at |
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the individual's home or at: |
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(i) a farmers' market or farm market or |
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roadside stand; |
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(ii) a county fair or municipal or county |
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celebration, festival, or event; or |
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(iii) an event held or sponsored by a |
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religious or nonprofit organization; |
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(B) does not offer a food item other than a |
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cottage food product for sale at a location listed in Paragraph (A); |
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and |
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(C) has annual gross sales of $150,000 or less |
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from the sale of cottage food products. |
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(3) "Department" means the [Texas] Department of State |
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Health Services. |
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(3-a) "Executive commissioner" means the executive |
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commissioner of the Health and Human Services Commission. |
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(5) "Home" means a primary residence that contains a |
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kitchen and appliances designed for common residential use. |
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SECTION 2. Chapter 437, Health and Safety Code, is amended |
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by adding Sections 437.022 through 437.028 to read as follows: |
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Sec. 437.022. EXEMPTION FOR COTTAGE FOOD PRODUCTION |
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OPERATION. (a) A cottage food production operation is not a food |
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service establishment or roadside food vendor for purposes of this |
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chapter. |
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(b) The exemption provided by Subsection (a) does not affect |
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the application of any other state or federal law or an applicable |
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ordinance enacted by a local governmental entity. |
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Sec. 437.023. PERMIT FROM DEPARTMENT REQUIRED FOR COTTAGE |
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FOOD PRODUCTION OPERATION. (a) A person may not operate a cottage |
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food production operation unless the person holds a permit issued |
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by the department. |
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(b) A person required to obtain a permit under Subsection |
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(a) must apply annually for the permit and pay the fees required by |
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the department. |
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Sec. 437.024. COTTAGE FOOD PRODUCT LABELING REQUIREMENTS. |
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(a) A cottage food production operation shall prepackage and |
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properly label each cottage food product the operation offers for |
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sale. |
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(b) The label at a minimum must include: |
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(1) the name and address of the cottage food |
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production operation; |
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(2) the name of the cottage food product; |
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(3) the ingredients in the cottage food product in |
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descending order of predominance by weight; |
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(4) the net weight or net volume of the cottage food |
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product; |
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(5) any labeling information required by federal law; |
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and |
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(6) the following statement in at least the equivalent |
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of 11-point font in a color that provides a clear contrast to the |
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background: "Made in a home kitchen that is not routinely inspected |
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by a state or local health authority." |
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Sec. 437.025. PRODUCTION OF COTTAGE FOOD PRODUCTS. (a) An |
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individual may not directly engage in the processing, preparing, |
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packaging, or handling of cottage food products and may not be |
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present during the production of the products in any area where the |
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products are produced for sale unless the individual is the holder |
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of the cottage food production operation permit or is under the |
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direct supervision of the permit holder. |
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(b) An individual who processes, prepares, packages, or |
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handles cottage food products must have adequate knowledge of safe |
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food handling practices and must have successfully completed a |
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basic food safety education or training program for food handlers |
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accredited under Subchapter D, Chapter 438. |
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Sec. 437.026. LIMITATIONS ON SALE AND STORAGE OF COTTAGE |
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FOOD PRODUCT. (a) A cottage food product may only be sold directly |
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from the cottage food production operation to the consumer and may |
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not be resold. |
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(b) A cottage food product may not be sold: |
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(1) over the Internet; |
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(2) by mail order; |
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(3) by consignment; or |
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(4) at wholesale. |
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(c) A cottage food production operation may not store a |
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cottage food product at a location other than the home at which the |
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product was produced. |
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Sec. 437.027. ESTABLISHMENT OF SALES OF COTTAGE FOOD |
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PRODUCTION OPERATION. The department may require a cottage food |
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production operation to provide the department with a current |
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financial statement or federal income tax return to establish that |
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the annual gross sales of the operation do not exceed $150,000. |
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Sec. 437.028. INVESTIGATION OR INSPECTION OF COTTAGE FOOD |
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PRODUCTION OPERATION IN CERTAIN CIRCUMSTANCES; ADOPTION OF RULES. |
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(a) The executive commissioner by rule may require an investigation |
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of a cottage food production operation if the department has reason |
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to believe that the cottage food production operation is operating |
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in violation of Section 437.023, 437.024, 437.025, or 437.026 or a |
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rule adopted under those sections. |
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(b) If a person files with the department a complaint |
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alleging that a cottage food production operation is violating an |
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applicable provision of this chapter or a rule adopted under this |
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chapter, an authorized agent or employee of the department may |
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enter the premises of the cottage food production operation to |
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conduct an inspection of the operation to determine compliance with |
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this chapter and department rules. The inspection shall be |
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conducted on the days and at times cottage food products are being |
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processed, prepared, packaged, or handled as provided by department |
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rules. |
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(c) The executive commissioner shall adopt the rules |
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necessary to implement this section and Sections 437.022 through |
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437.027. |
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SECTION 3. Not later than January 1, 2012, the executive |
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commissioner of the Health and Human Services Commission shall |
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adopt the rules necessary to implement Sections 437.022 through |
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437.028, Health and Safety Code, as added by this Act. |
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SECTION 4. (a) Except as provided by Subsection (b) of |
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this section, this Act takes effect September 1, 2011. |
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(b) Sections 437.023 and 437.024, Health and Safety Code, as |
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added by this Act, take effect January 1, 2012. |