SECTION 5. Section 437.001, Health and Safety Code, is amended by amending Subdivisions (1) and (3) and adding Subdivisions (2-a), (2-b), (3-a), and (5) to read as follows:
(1) "Board" means the executive commissioner [Texas Board of Health].
(2-a) "Baked good" includes cookies, cakes, breads, Danish, donuts, pastries, pies, and other items that are prepared
by baking the item in an oven. A baked good 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 baked good, a canned jam or jelly, or a dried herb or herb mix for sale at the person's home;
(B) has an annual gross income of $50,000 or less from the sale of food described by Paragraph (A); and
(C) sells the foods produced under Paragraph (A) only directly to consumers.
(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 usage.
SECTION 6. Chapter 437, Health and Safety Code, is amended by adding Sections 437.0191, 437.0192, 437.0193, and 437.0194 to read as follows:
Sec. 437.0191. EXEMPTION FOR COTTAGE FOOD PRODUCTION OPERATIONS. A cottage food production operation is not a food service establishment for purposes of this chapter.
Sec. 437.0192. REGULATION OF COTTAGE FOOD PRODUCTION OPERATIONS BY LOCAL HEALTH DEPARTMENT PROHIBITED; COMPLAINTS.
(a) A local health department may not regulate the production of food at a cottage food production operation.
(b) Each local health department and the department shall maintain a record of a complaint made by a person against a cottage food production operation.
Sec. 437.0193. LABELING REQUIREMENTS FOR COTTAGE FOOD PRODUCTION OPERATIONS. 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 the name and address of
the cottage food production operation and a statement that the food is not inspected by the department or a local health department.
Sec. 437.0194. SALES BY COTTAGE FOOD PRODUCTION OPERATIONS THROUGH THE INTERNET PROHIBITED. A cottage food production operation may not sell any of the foods described in Section 437.001(2-b)(A) through the Internet.
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