TITLE: Relating to the regulation of cottage food products and cottage food production operations.

SUMMARY: Relating to the regulation of cottage food products and cottage food production operations.

FULL TEXT:
AN ACT relating to the regulation of cottage food products and cottage food production operations. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 437.001, Health and Safety Code, is amended by amending Subdivisions (1) and (3) and adding Subdivisions (1-a), (2-a), (2-b), (3-a), and (5) to read as follows: (1) "Baked good" includes cookies, cakes, bread, Danish, donuts, pastries, pies, and other similar items prepared by baking the item in an oven. (1-a) "Board" means the executive commissioner [Texas Board of Health].(2-a) "Cottage food product" means a baked good, canned jam or jelly, dried fruit, candy, snack food, cereal, granola, dry mix, vinegar, or a dried herb produced for sale by a cottage food production operation. A cottage food product does not include a potentially hazardous food item as defined by department rule. (2-b) "Cottage food production operation" means an individual, operating out of the individual's home, who: (A) produces a cottage food product for sale at the individual's home or at: (i) a farmers' market or farm market or roadside stand; (ii) a county fair or municipal or county celebration, festival, or event; or (iii) an event held or sponsored by a religious or nonprofit organization; (B) does not offer a food item other than a cottage food product for sale at a location listed in Paragraph (A); and (C) has annual gross sales of $150,000 or less from the sale of cottage food products. (3) "Department" means the [Texas] Department of State Health Services.(3-a) "Executive commissioner" means the executive commissioner of the Health and Human Services Commission. (5) "Home" means a primary residence that contains a kitchen and appliances designed for common residential use. SECTION 2. Chapter 437, Health and Safety Code, is amended by adding Sections 437.022 through 437.028 to read as follows: Sec. 437.022. EXEMPTION FOR COTTAGE FOOD PRODUCTION OPERATION. (a) A cottage food production operation is not a food service establishment or roadside food vendor for purposes of this chapter. (b) The exemption provided by Subsection (a) does not affect the application of any other state or federal law or an applicable ordinance enacted by a local governmental entity. Sec. 437.023. PERMIT FROM DEPARTMENT REQUIRED FOR COTTAGE FOOD PRODUCTION OPERATION. (a) A person may not operate a cottage food production operation unless the person holds a permit issued by the department. (b) A person required to obtain a permit under Subsection (a) must apply annually for the permit and pay the fees required by the department. Sec. 437.024. COTTAGE FOOD PRODUCT LABELING REQUIREMENTS. (a) A cottage food production operation shall prepackage and properly label each cottage food product the operation offers for sale. (b) The label at a minimum must include: (1) the name and address of the cottage food production operation; (2) the name of the cottage food product; (3) the ingredients in the cottage food product in descending order of predominance by weight; (4) the net weight or net volume of the cottage food product; (5) any labeling information required by federal law; and (6) the following statement in at least the equivalent of 11-point font in a color that provides a clear contrast to the background: "Made in a home kitchen that is not routinely inspected by a state or local health authority." Sec. 437.025. PRODUCTION OF COTTAGE FOOD PRODUCTS. (a) An individual may not directly engage in the processing, preparing, packaging, or handling of cottage food products and may not be present during the production of the products in any area where the products are produced for sale unless the individual is the holder of the cottage food production operation permit or is under the direct supervision of the permit holder. (b) An individual who processes, prepares, packages, or handles cottage food products must have adequate knowledge of safe food handling practices and must have successfully completed a basic food safety education or training program for food handlers accredited under Subchapter D, Chapter 438. Sec. 437.026. LIMITATIONS ON SALE AND STORAGE OF COTTAGE FOOD PRODUCT. (a) A cottage food product may only be sold directly from the cottage food production operation to the consumer and may not be resold. (b) A cottage food product may not be sold: (1) over the Internet; (2) by mail order; (3) by consignment; or (4) at wholesale. (c) A cottage food production operation may not store a cottage food product at a location other than the home at which the product was produced. Sec. 437.027. ESTABLISHMENT OF SALES OF COTTAGE FOOD PRODUCTION OPERATION. The department may require a cottage food production operation to provide the department with a current financial statement or federal income tax return to establish that the annual gross sales of the operation do not exceed $150,000. Sec. 437.028. INVESTIGATION OR INSPECTION OF COTTAGE FOOD PRODUCTION OPERATION IN CERTAIN CIRCUMSTANCES; ADOPTION OF RULES. (a) The executive commissioner by rule may require an investigation of a cottage food production operation if the department has reason to believe that the cottage food production operation is operating in violation of Section 437.023, 437.024, 437.025, or 437.026 or a rule adopted under those sections. (b) If a person files with the department a complaint alleging that a cottage food production operation is violating an applicable provision of this chapter or a rule adopted under this chapter, an authorized agent or employee of the department may enter the premises of the cottage food production operation to conduct an inspection of the operation to determine compliance with this chapter and department rules. The inspection shall be conducted on the days and at times cottage food products are being processed, prepared, packaged, or handled as provided by department rules. (c) The executive commissioner shall adopt the rules necessary to implement this section and Sections 437.022 through 437.027. SECTION 3. Not later than January 1, 2012, the executive commissioner of the Health and Human Services Commission shall adopt the rules necessary to implement Sections 437.022 through 437.028, Health and Safety Code, as added by this Act. SECTION 4. (a) Except as provided by Subsection (b) of this section, this Act takes effect September 1, 2011.