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 new definitions for "cottage food vendor" and "nonprofit organization." Additionally, it specifies that cottage food production operations can sell directly to consumers or to cottage food vendors, and it outlines the labeling requirements for food products, including a disclosure statement regarding the lack of governmental licensing or inspection.

The bill also prohibits local government authorities from regulating cottage food production operations or requiring them to obtain licenses or permits, thereby streamlining the process for these small businesses. It allows cottage food production operations to sell certain foods at wholesale to cottage food vendors and provides guidelines for the sale of time and temperature control for safety foods. Furthermore, it includes provisions for sampling and donating cottage food products, and mandates that cottage food vendors display appropriate disclosures when selling these products. 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)