Food Freedom Act doubles the cottage food sales cap

The text as introduced · 1,741 words

By: Hull
H.B. No. 2588

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. This Act shall be known as the Food Freedom Act.

SECTION 2. 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 ] , any

food except:

(i) meat, meat products, poultry, or

poultry products;

(ii) seafood, seafood products, fish, fish

products, shellfish, or shellfish products;

(iii) ice or ice products, including shaved

ice, ice cream, frozen custard, popsicles, or gelato;

(iv) low-acid canned goods;

(v) products containing CBD or THC;

(vi) raw milk or raw milk products .

[ (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 , indexed for inflation as of 2026, 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 non-Time or Temperature Controlled for

Safety foods 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 3. 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 produce,

sell, or provide samples of 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 4. Section 437.0193, Health and Safety Code, is

amended by amending Subsections (b) and (d), 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) the following disclosure:

"THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT

SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION." [ 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 the department prescribes. The

executive commissioner may adopt rules to implement this

subsection.

(d) A cottage food production operation that sells

time-and-temperature-control-for-safety food must include on the

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."

[ A cottage food production operation that sells frozen raw

and uncut fruit or vegetables must include on the label of the

frozen fruit or vegetables or on an invoice or receipt provided with

the frozen fruit or vegetables when sold the following statement in

at least 12-point font: "SAFE HANDLING INSTRUCTIONS: To prevent

illness from bacteria, keep this food frozen until preparing for

consumption." ]

SECTION 5. Section 437.0194, Health and Safety Code, is

amended by amending Subsections (a) and (b) 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 non-time

or temperature controlled for safety foods to a cottage food vendor

at wholesale.

(b) A cottage food production operation may sell a food

described by Section 437.001(2-b)(A) in this state through the

Internet [ or by mail order ] only if:

(1) the consumer purchases the food through the

Internet [ or by mail order ] from the operation and the operator or

operator's employee or household member personally delivers the

food to the consumer; and

(2) subject to Subsection (c), before the operator

accepts payment for the food, the operator provides all labeling

information required by Section 437.0193(d) and department rules to

the consumer by[ :

[ (A) ] posting a legible statement on the operation's

Internet website[ ;

[ (B) publishing the information in a catalog; or

[ (C) otherwise communicating the information to the

consumer ].

SECTION 6. Chapter 437, Health and Safety Code, is amended

by amending Sec. 437.01952 as follows:

437.01952 [ REQUIREMENTS FOR SALE OF FROZEN FRUIT OR

VEGETABLES. A cottage food production operation that sells to

consumers frozen raw and uncut fruit or vegetables shall:

[ (1) store and deliver the frozen fruit or vegetables

at an air temperature of not more than 32 degrees Fahrenheit; and

[ (2) label the fruit or vegetables in accordance with

Section 437.0193(d). ] SAMPLING AND DONATING: (a) A cottage food

production operation may provide samples of its products to

consumers at any location in the state in accordance with the

standards set out in Section 437.020(c).

(b) A cottage food production operation may donate non-time

or temperature controlled for safety food for sale or service at a

function such as a religious or charitable organization's bake sale

to the same extent an individual is allowed by law.

SECTION 7. 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 FOODS. A

cottage food production operation that sells to consumers time and

temperature control for safety foods shall:

(1) register with the department;

(2) store and deliver the food at the air temperature

necessary to prevent the growth of bacteria that may cause human

illness;

(3) label the food in accordance with Section

437.0193(e); and

(4) label the food with a "made on" date.

SECTION 8. Section 437.0196(a), Health and Safety Code, is

amended to read as follows:

TIME AND TEMPERATURE CONTROL FOR SAFETY FOOD[ ; PROHIBITION

FOR COTTAGE FOOD PRODUCTION OPERATIONS; EXCEPTION. ] (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.

[ (b) Except as otherwise provided by this chapter, a cottage

food production operation may not sell to consumers time and

temperature control for safety foods. ]

SECTION 9. 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) that is

non-time or temperature controlled for safety 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

following disclosure:

"THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT

SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION."

(c) Food produced by a cottage food operator and sold by a

cottage food vendor shall include a "made on" date on the label.

(d) 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

subsection.

SECTION 10. This Act takes effect September 1, 2025.