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Cottage food rules

Texas Cottage Food Law Update: What Changed

A clear read on the Texas cottage food update so you know what to check before your next sale.

On this page
  1. What SB 541 changes
  2. Baked goods, labels, and the rules behind them
  3. Wholesale and direct sales
  4. Farmers markets and older changes
Hands kneading dough on a floured kitchen counter
What you can sell from home, and the licenses and labels to check.

What to remember

  • SB 541 expands the types of allowable cottage foods.
  • It sets conditions for wholesale cottage foods.
  • It changes labeling requirements.
  • It clarifies how cottage foods are regulated.
  • Cottage vendors cannot sell perishable or refrigerated foods through a retail store.

If you sell cakes, cookies, breads, or other baked goods from your home, start with what the update means for your labels. Use what your label says as a checklist before you order stickers or print cards. Then check the update against the foods you actually sell. Eggs and honey have their own guides, and both are worth a look if they are part of your table: eggs and honey.

What SB 541 changes

SB 541 expands the types of allowable cottage foods, sets conditions for the wholesale of cottage foods, changes labeling requirements, and clarifies the regulation of cottage foods. The bill text also adds Sec. 437.01953, titled Requirements for sale of certain baked goods, covering a cottage food production operation that sells to consumers. Under the enrolled version, a cottage food production operation means an individual operating out of the individual’s home. That definition is the starting point for the update.

Baked goods, labels, and the rules behind them

The Texas cottage food statute as passed by the legislature is contained largely in Chapter 437 of the Texas Health and Safety Code. 25 Tex. Admin. Code § 229.661 implements Chapter 437 for cottage food production operations and requires the department to adopt rules for labeling and production. That is why the label change in SB 541 matters in your daily baking. Your label is one of the places where the law shows up at the table. Use the label guide as a checklist, then confirm the current wording with the Texas Department of State Health Services before you print.

Wholesale and direct sales

SB 541 sets conditions for the wholesale of cottage foods. If a shop or cafe wants to buy your bakes, do not treat it like a bigger version of a direct sale. Read the wholesale conditions first, then decide whether your kitchen, your labels, and your schedule can meet them. Direct sales to customers are the other path, and the baked goods section in the bill text covers a cottage food production operation that sells to consumers. The update is a good reason to review both paths before you say yes to a new order.

Before your next sale, make a short list of what you sell and where you sell it. Note which items are baked goods, which are direct to customer, and which, if any, a shop wants to buy. Then match each item to the update and the label rule. This keeps the law practical: one page for your table, one page for wholesale, and one page for labels. If something does not fit, change the plan before you take the order.

Farmers markets and older changes

Senate Bill 617 from the 87th Legislature in 2021 made several important changes to Chapter 437, including provisions on farmers’ markets. If market day is part of your income, check the farmers market guidance along with the SB 541 update. The two together give you a fuller picture than the newest bill alone.

Common questions

What is the Texas cottage food law update?

The update is SB 541. It expands allowable cottage foods, sets conditions for wholesale, changes labeling requirements, and clarifies how cottage foods are regulated.

Does SB 541 cover baked goods?

Yes. The bill text adds Sec. 437.01953, Requirements for sale of certain baked goods, covering a cottage food production operation that sells to consumers.

Can I sell cheesecake through a retail store?

No. Cottage vendors cannot sell perishable or refrigerated (TCS) foods through a retail store. Cheesecakes, veggie lasagna, and custard pies can only be sold directly to customers.

Where do Texas cottage food rules live?

The statute is contained largely in Chapter 437 of the Texas Health and Safety Code. 25 Tex. Admin. Code § 229.661 implements Chapter 437 for cottage food production operations.

What did SB 617 change?

SB 617 from the 87th Legislature in 2021 made several changes to Chapter 437, including provisions on farmers' markets.

Sources

  1. Texas Cottage Food Production, Texas Department of State Health Services
  2. SB 541 Bill Text, Texas Legislature Online
  3. SB 541 Enrolled Version, Texas Legislature Online
  4. 25 Tex. Admin. Code § 229.661, Cornell Law School
  5. Texas Cottage Food Rules 2026 Summary, City of Mansfield
  6. Legal Sources, Texas Cottage Food Law
  7. Texas Farmers Market, Texas Department of State Health Services

This is general information, not legal advice. Check the Texas Department of State Health Services and a qualified Texas attorney for your situation.

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