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 introduces the concept of a "cottage food vendor," which refers to individuals who sell food produced by cottage food operations directly to consumers. It also allows nonprofit organizations to operate as cottage food production entities, provided they meet specific criteria. The bill raises the annual gross income limit for cottage food operations from $50,000 to $150,000, adjusted for inflation, and specifies that these operations can sell food directly to consumers or through cottage food vendors without needing a license or permit from local authorities.

Additionally, the bill outlines labeling requirements for cottage food products, including a disclosure statement indicating that the products were made in a private residence not subject to governmental inspection. It also establishes that cottage food production operations can sell certain foods at wholesale to cottage food vendors and provides guidelines for the sale of time and temperature control for safety foods. The bill repeals several existing provisions that are no longer applicable, streamlining the regulations for cottage food operations. The new regulations 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)
House Committee Report: Health and Safety Code 437.001, Health and Safety Code 437.0191, Health and Safety Code 437.0192, Health and Safety Code 437.0193, Health and Safety Code 437.0194 (Health and Safety Code 437)
Enrolled: Health and Safety Code 437.001, Health and Safety Code 437.0191, Health and Safety Code 437.0192, Health and Safety Code 437.0193, Health and Safety Code 437.0194 (Health and Safety Code 437)