S.B. No. 541 amends the Health and Safety Code to expand the definition and regulations surrounding cottage food production operations in Texas. The bill allows both individuals and nonprofit organizations to operate cottage food production from their homes, provided they meet certain criteria, including an annual gross income of up to $100,000 from food sales. It introduces the term "cottage food vendor," which refers to individuals who sell food produced by cottage food operations, and outlines specific labeling requirements for food products, including a statement indicating that the food was produced in a private residence and is not subject to governmental licensing or inspection.

Additionally, the bill prohibits local government authorities from regulating cottage food production or requiring licenses or permits for sales directly to consumers or cottage food vendors. It establishes guidelines for the sale of certain baked goods that require time and temperature control for safety, mandating proper storage and labeling. The bill also allows cottage food vendors to sell products at various locations, including farmers' markets and retail stores, while ensuring that they display appropriate disclosures about the nature of the products. The provisions of this act will 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)
Senate Committee Report: 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)
Engrossed: 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)