The bill amends the Health and Safety Code to expand the definition and regulations surrounding cottage food production operations in Texas. It introduces the concept of a "cottage food vendor," which is defined as a person who has a contractual relationship with a cottage food production operation and sells certain foods on behalf of that operation. The bill allows cottage food production operations to include nonprofit organizations and raises the annual gross income limit from $50,000 to $100,000 for these operations. Additionally, it specifies that cottage food production operations can sell certain baked goods, provided they adhere to specific labeling and storage requirements to ensure food safety.

Furthermore, the bill prohibits local government authorities from regulating the production of food at cottage food operations or requiring them to obtain licenses or permits for direct sales to consumers or cottage food vendors. It mandates that food labels include specific disclosures about the nature of the products and their production environment. The bill also establishes that cottage food vendors can sell food directly to consumers at various locations, including farmers' markets and retail stores, while ensuring that proper disclosures are made regarding the nature of the products sold. The changes are set to take effect on September 1, 2025.

Statutes affected:
Introduced: Health and Safety Code 437.001, Health and Safety Code 437.0192, Health and Safety Code 437.0193, Health and Safety Code 437.0194, Health and Safety Code 437.0196 (Health and Safety Code 437)