SB 541 Texas Senate · 89th Legislature (2025)

Relating to cottage food production operations.

SB 541 expands Texas cottage food production rules by raising the annual income limit from $50,000 to $100,000 for home-based food businesses. It defines eligible foods to include baked goods (excluding those requiring time/temperature control), candy, jams, dried fruits, and fermented products, while excluding meats and shellfish. The bill also creates a new "cottage food vendor" category for individuals selling these products on behalf of producers. This law, effective September 1, 2025, directly affects small home-based food entrepreneurs and their vendors by broadening allowable products and increasing revenue thresholds.
Bill status signed all 5 stages cleared
Introduction
Dec 2024
Committee Review
May 2025
Senate Passage
May 2025
House Passage
May 2025
Signed into Law
May 2025
Introduced Dec 6, 2024 Signed May 30, 2025
Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed Enrolled · 6 edits · May 30, 2025
MODERATE
This bill updates Texas cottage food laws to modernize definitions, expand allowable products, and clarify sales restrictions. Key changes include raising the income threshold for cottage food operations, adding new food categories like CBD products and raw milk, and clarifying rules for online sales and wholesale transactions.
Scope change
The bill expands the scope of allowable cottage food products and clarifies the distinction between cottage food production operations and cottage food vendors, particularly regarding wholesale sales and online transactions.
ELIGIBILITY

Raised the annual gross income threshold for cottage food production operations from $50,000 to $150,000, allowing more small businesses to qualify.

DEFINITION

Added new food categories including products containing CBD or THC, raw milk and raw milk products, and expanded the list of allowable items to include various processed goods.

REQUIREMENT

Updated labeling requirements to include unique identification numbers when operations register with the department, and clarified when address disclosure is required on labels.

Added new sections requiring registration for operations selling time and temperature control for safety foods and clarified sampling and donation rules.

ENFORCEMENT

Clarified that local government authorities cannot require licenses or permits for cottage food operations selling directly to consumers or cottage food vendors.

TIMELINE

Set the effective date of the Act to September 1, 2025, providing time for operations to adjust to new requirements.

Floor votes · House May 13, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
53
Key actions
16
Committee
10
Amendments
6
May 30, 2025
Signed into law
Signed by the Governor
executive
May 21, 2025
Lower · Passed
Signed in the House
lower
May 21, 2025
Upper · Passed
Signed in the Senate
upper
May 21, 2025
Introduced
Senate concurs in House amendment(s)-reported
lower
May 20, 2025
Introduced
Senate concurs in House amendment(s)
upper
May 20, 2025
Introduced
House amendment(s) laid before the Senate
upper
May 14, 2025
Upper · Passed
House passage as amended reported
upper
May 13, 2025
Lower · Passed
Passed
lower
May 12, 2025
Lower · Passed
Passed to 3rd reading as amended
lower
May 12, 2025
Lower · Passed
Amended
lower
May 10, 2025
Lower · Passed
Committee report sent to Calendars
lower
May 10, 2025
Lower · Passed
Committee report distributed
lower
May 8, 2025
Lower · Passed
Reported favorably as substituted
lower
Apr 17, 2025
Committee
Referred to Public Health
lower
Apr 17, 2025
Introduced
Read first time
lower
Apr 14, 2025
Introduced
Received from the Senate
lower
Apr 10, 2025
Upper · Passed
Passed
upper
Mar 19, 2025
Upper · Passed
Committee report printed and distributed
upper
Mar 19, 2025
Upper · Passed
Reported favorably w/o amendments
upper
Mar 18, 2025
Upper · Passed
Vote taken in committee
upper
Mar 11, 2025
Upper · Passed
Left pending in committee
upper
Mar 11, 2025
Upper · Passed
Testimony taken in committee
upper
Feb 3, 2025
Committee
Referred to Health & Human Services
upper
Feb 3, 2025
Introduced
Read first time
upper
2 primary · 2 co-sponsors

Sponsors