Bill Text: TX SB829 | 2023-2024 | 88th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to cottage food production operations.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2023-05-23 - Placed on General State Calendar [SB829 Detail]

Download: Texas-2023-SB829-Comm_Sub.html

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By: Kolkhorst S.B. No. 829
(In the Senate - Filed February 10, 2023; March 1, 2023,
read first time and referred to Committee on Health & Human
Services; April 3, 2023, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 9, Nays 0;
April 3, 2023, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 829 By: Miles

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.
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