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 for cottage food production to be conducted not only by individuals operating from their homes but also by nonprofit organizations. It raises the annual gross income limit for these operations from $50,000 to $150,000, adjusted for inflation, and introduces the concept of a "cottage food vendor," which refers to individuals who sell cottage food products on behalf of these operations. Additionally, the bill specifies that cottage food production operations are exempt from certain licensing requirements if they manufacture and distribute cottage food for wholesale resale.

The legislation also includes provisions that local government authorities cannot regulate cottage food production or require licenses for operations selling directly to consumers. It mandates that cottage food products must be labeled with specific disclosures, including a statement indicating that the products were produced in a private residence not subject to governmental inspection. Furthermore, the bill outlines requirements for the sale of time and temperature control for safety food, including registration with the department and proper labeling. The act is 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)
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)