HB2588 - Relating to cottage food production operations.

  89R22016 JTZ-D     By: Hull, et al. H.B. No. 2588     Substitute the following for H.B. No. 2588:     By:  VanDeaver C.S.H.B. No. 2588       A BILL TO BE ENTITLED   AN ACT   relating to 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 Subdivision (2-b) and adding Subdivisions (3)   and (5-a) to read as follows:                (2-b)  "Cottage food production operation" means an   individual, operating out of the individual's home, or a nonprofit   organization that  [ who ]:                      (A)  produces at the individual's home or the home   of an individual who is a director or officer of the nonprofit   organization, as applicable , any food other than  [ subject to   Section 437.0196 ]:                            (i)   meat, meat products, poultry, or   poultry products;                             (ii)     seafood, including seafood products,   fish, fish products, shellfish, and shellfish products;                             (iii)     ice or ice products, including shaved   ice, ice cream, frozen custard, popsicles, and gelato;                             (iv)  low-acid canned goods;                             (v)     products containing cannabidiol or   tetrahydrocannabinol; or                             (vi)  raw milk and raw milk products  [ a baked   good that is not a time and temperature control for safety food, as   defined by Section 437.0196;                            [ (ii)  candy;                            [ (iii)  coated and uncoated nuts;                            [ (iv)  unroasted nut butters;                            [ (v)  fruit butters;                            [ (vi)  a canned jam or jelly;                            [ (vii)  a fruit pie;                            [ (viii)     dehydrated fruit or vegetables,   including dried beans;                            [ (ix)  popcorn and popcorn snacks;                            [ (x)  cereal, including granola;                            [ (xi)  dry mix;                            [ (xii)  vinegar;                            [ (xiii)     pickled fruit or vegetables,   including beets and carrots, that are preserved in vinegar, brine,   or a similar solution at an equilibrium pH value of 4.6 or less;                            [ (xiv)  mustard;                            [ (xv)  roasted coffee or dry tea;                            [ (xvi)  a dried herb or dried herb mix;                            [ (xvii)     plant-based acidified canned   goods;                            [ (xviii)     fermented vegetable products,   including products that are refrigerated to preserve quality;                            [ (xix)     frozen raw and uncut fruit or   vegetables; or                            [ (xx)     any other food that is not a time and   temperature control for safety food, as defined by Section   437.0196 ];                      (B)  has an annual gross income of $100,000   [ $50,000 ] or less from the sale of food described by Paragraph (A) ,   as the department annually adjusts for inflation using the Consumer   Price Index for All Urban Consumers (CPI-U) published by the United   States Bureau of Labor Statistics or its successor in function ;                      (C)  sells the foods produced under Paragraph (A)   [ only ] directly to consumers or to a cottage food vendor ; and                      (D)  delivers products to the consumer or cottage   food vendor at the point of sale or another location designated by   the consumer or cottage food vendor .                 (3)     "Cottage food vendor" means a person located in   this state who:                       (A)     has a contractual relationship with a cottage   food production operation; and                       (B)     sells directly to consumers located in this   state on behalf of the cottage food production operation a food   other than a time and temperature control for safety food.                 (5-a)     "Nonprofit organization" means an organization   exempt from federal income tax under Section 501(a), Internal   Revenue Code of 1986, as an organization described by Section   501(c)(3) of that code.          SECTION 2.  Section 437.0196(a), Health and Safety Code, is   redesignated as Section 437.001(8), Health and Safety Code, and   amended to read as follows:                 (8)  "Time [ (a)  In this section, "time ] and   temperature control for safety food" means a food that requires   time and temperature control for safety to limit pathogen growth or   toxin production.  The term includes a food that must be held under   proper temperature controls, such as refrigeration, to prevent the   growth of bacteria that may cause human illness.   The term:                       (A)   [ A time and temperature control for safety   food ] may include a food that contains protein and moisture and is   neutral or slightly acidic, such as meat, poultry, fish, and   shellfish products, pasteurized and unpasteurized milk and dairy   products, raw seed sprouts, baked goods that require refrigeration,   including cream or custard pies or cakes, and ice products ; and                       (B)   [ .  The term ] does not include a food that   uses time and temperature control for safety food as ingredients if   the final food product does not require time or temperature control   for safety to limit pathogen growth or toxin production.          SECTION 3.  Section 437.0191, Health and Safety Code, is   amended by adding Subsection (c) to read as follows:           (c)     Notwithstanding any other law, a cottage food   production operation that manufactures and distributes at   wholesale cottage food for resale by others is exempt from   department licensing requirements under Chapter 431.          SECTION 4.  Section 437.0192, Health and Safety Code, is   amended by amending Subsection (a) and adding Subsection (c) to   read as follows:          (a)  A local government authority, including a local health   department, may not :                 (1)   regulate the production of food at a cottage food   production operation ; or                 (2)     require a cottage food production operation to   obtain any type of license or permit or pay any fee to produce,   sell, or provide samples directly to a consumer or cottage food   vendor of a food other than a food described by Sections   437.001(2-b)(A)(i)-(vi) .           (c)     A local government authority, including a local health   department, may not employ or continue to employ a person who   knowingly requires or attempts to require a cottage food production   operation to obtain a license or permit in violation of Subsection   (a)(2).          SECTION 5.  Section 437.0193, Health and Safety Code, is   amended by amending Subsections (a) and (b) and adding Subsections   (b-1) and (e) to read as follows:          (a)  Food [ described by Section 437.001(2-b)(A) ] sold by a   cottage food production operation must be packaged in a manner that   prevents product contamination, except that a food item is not   required to be packaged if it is too large or bulky for conventional   packaging.          (b)  The executive commissioner shall adopt rules requiring   a cottage food production operation to label all of the foods   [ described in Section 437.001(2-b)(A) that ] the operation sells to   consumers. The label must include:                (1)  the name and address of the cottage food   production operation; and                (2)   the following disclosure:           "THIS PRODUCT WAS PRODUCED IN A PRIVATE RESIDENCE THAT IS NOT   SUBJECT TO GOVERNMENTAL LICENSING OR INSPECTION." [ a statement that   the food is not inspected by the department or a local health   department. ]           (b-1)     Notwithstanding Subsection (b)(1), a cottage food   production operation is not required to include on a food label the   address of the operation if the operation registers with the   department in the form and manner the department prescribes, and   includes on the label a unique identification number provided by   the department. The executive commissioner may adopt rules to   implement this subsection.           (e)     A cottage food production operation that sells a time   and temperature control for safety food must include:                 (1)  on the food label the date the food was made; and                 (2)     on the food label [Text truncated for display. Full text available on Congress.gov.]