Relating to egg grading and the selling of ungraded eggs; requiring an occupational license.

SB 1864 allows small egg producers to sell ungraded eggs directly to consumers and up to 500 dozen per week wholesale within Texas. It requires producers selling wholesale to register with the state for an annual fee of up to $50, label cartons with "ungraded" plus their name, address, packing date, and registration number, and follow specific food safety rules (refrigeration within 36 hours, storage at 45°F or below, and sanitation standards). The bill directly affects backyard or small-scale egg producers who do not grade their eggs but wish to sell them commercially. Key provisions include limiting wholesale sales to 500 dozen weekly, mandating clear labeling, and establishing registration and safety requirements. The bill takes effect September 1, 2025, if not passed with a two-thirds vote.