TX SB541

Expands the definition of "cottage food production operation" to include nonprofit organizations (501(c)(3)) in addition to individuals operating from home, and allows production at the home of a nonprofit's director or officer

Increases the annual gross income limit for cottage food operations from $50,000 to $150,000, with annual inflation adjustments based on the Consumer Price Index (CPI-U)

Broadens allowable cottage food products to include any food except meat/poultry, seafood, ice products (ice cream, gelato, popsicles), low-acid canned goods, CBD/THC products, and raw milk products

Creates a new "cottage food vendor" category allowing third parties with contractual relationships to purchase cottage food at wholesale and resell directly to consumers at farmers' markets, farm stands, and retail stores

Prohibits local governments from requiring licenses, permits, or fees for cottage food operations and mandates termination of any government employee who knowingly attempts to require such permits in violation of the law

Takes effect September 1, 2025, passed the Senate 30-0 on April 10, 2025, and the House 135-5 on May 13, 2025