Texas Senate approves SB 541 to expand cottage food laws for nonprofits and vendors

The Texas Senate Committee on Health and Human Services convened on March 11, 2025, to discuss significant updates to the state's cottage food laws, which aim to enhance opportunities for small food producers and nonprofit organizations. The proposed Senate Bill 541 seeks to expand the definition of cottage food producers, allowing nonprofit organizations and cottage food vendors to sell homemade food products directly to consumers at various venues, including farmers' markets and retail stores.

One of the key changes in the bill is the increase of the gross income cap for annual cottage food sales from $50,000 to $100,000. This adjustment reflects the economic realities of inflation and aims to support small businesses that have emerged from the cottage food movement. The bill also removes certain regulatory requirements, such as the time-temperature control for safety provision for baked goods, which could broaden the range of products available under cottage food laws.

Senator Sparks, who has been involved in the cottage food legislation since its inception, highlighted the bill's role as a small business incubator, emphasizing its positive impact on local economies and individual entrepreneurs. The discussions also touched on the importance of maintaining food safety standards while allowing for greater flexibility in food production.

Concerns were raised regarding enforcement mechanisms to prevent misuse of the cottage food laws, particularly the risk of large-scale commercial operations masquerading as cottage industries. The Department of State Health Services is tasked with overseeing the implementation of these laws, ensuring that they remain beneficial for small-scale producers while safeguarding public health.

The committee's discussions reflect a growing recognition of the cottage food industry as a vital component of Texas's economy, particularly for women-owned businesses. As the bill moves forward, it aims to strike a balance between fostering entrepreneurship and ensuring food safety, with the potential to significantly impact local food systems and community health. The committee is expected to continue refining the bill and addressing any unresolved issues in the coming sessions.