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 "nonprofit organization" as a cottage food producer, allowing such entities to operate under the same guidelines as individual home-based producers. It raises the annual gross income limit for cottage food operations from $50,000 to $150,000, adjusted for inflation, and clarifies the types of food that can be produced, explicitly excluding items like meat, seafood, and low-acid canned goods. Additionally, it establishes the role of "cottage food vendors," who can sell these products directly to consumers.

The bill also includes provisions that exempt cottage food production operations from certain licensing requirements, prohibits local authorities from regulating these operations, and mandates specific labeling requirements for products, including a disclosure statement about the lack of governmental inspection. Furthermore, it allows for the wholesale sale of certain foods to cottage food vendors and outlines the requirements for selling time and temperature control for safety foods. 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)