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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of small food production and sales |
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operations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 435.009, Health and |
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Safety Code, is amended to read as follows: |
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Sec. 435.009. FEES ON MILK AND MILK PRODUCTS. |
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SECTION 2. (a) Section 435.009(a), Health and Safety Code, |
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is redesignated as Section 435.0091, Health and Safety Code, and |
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amended to read as follows: |
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Sec. 435.0091. CERTAIN FEES PROHIBITED. [(a)] A political |
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subdivision or agency of this state, other than the department, may |
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not impose a fee on milk or a milk product, or on a person for the |
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movement, distribution, or sale of milk or a milk product. |
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(b) Section 435.009, Health and Safety Code, is amended by |
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adding Subsection (a-1) and amending Subsections (d) and (e) to |
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read as follows: |
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(a-1) This section does not apply to a small dairy |
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production operation as defined by Section 435.0092. |
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(d) A permit issued under Section 435.006 [this chapter] is |
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valid for two years and must be renewed not later than September 1 |
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of the year in which the permit expires. |
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(e) The department shall prorate fees paid for permits |
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issued under Section 435.006 [this chapter] after the beginning of |
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a permit year. |
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SECTION 3. Subchapter A, Chapter 435, Health and Safety |
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Code, is amended by adding Section 435.0092 to read as follows: |
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Sec. 435.0092. PERMIT AND FEES FOR SMALL DAIRY PRODUCTION |
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OPERATIONS. (a) In this section, "small dairy production |
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operation" means a person who produces less than $250,000 worth of |
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cheese and other milk products for retail sale, based on gross |
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retail sales. |
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(b) A person may not operate a small dairy production |
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operation unless the person holds a permit issued under this |
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section. The person must apply to the department for a permit. |
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(c) Notwithstanding Section 435.009(b), the department |
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shall impose on a small dairy production operation the following |
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fees: |
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(1) a permit fee of $50 a year for a dairy farm; and |
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(2) a permit fee of $100 a year for a dairy plant. |
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(d) A permit issued under this section is valid for one year |
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and must be renewed not later than September 1 of the year in which |
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the permit expires. |
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(e) The department shall prorate fees paid for permits |
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issued under this section after the beginning of a permit year. |
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(f) A small dairy production operation that holds a permit |
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under this section is not required to hold a permit under Section |
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435.006 or pay a fee under Section 435.009. |
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SECTION 4. Section 437.001, Health and Safety Code, is |
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amended by amending Subdivisions (1) and (3) and adding |
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Subdivisions (2-a), (2-b), (3-a), and (5) to read as follows: |
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(1) "Board" means the executive commissioner [Texas
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Board of Health]. |
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(2-a) "Baked good" includes cookies, cakes, breads, |
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Danish, donuts, pastries, pies, and other items that are prepared |
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by baking the item in an oven. A baked good does not include a |
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potentially hazardous food item as defined by department rule. |
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(2-b) "Cottage food production operation" means an |
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individual, operating out of the individual's home, who: |
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(A) produces a baked good, a canned jam or jelly, |
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or a dried herb or herb mix for sale at the person's home or a |
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farmers' market; |
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(B) has an annual gross income of $250,000 or |
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less from the sale of food described by Paragraph (A); and |
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(C) sells the foods produced under Paragraph (A) |
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only directly to consumers. |
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(3) "Department" means the [Texas] Department of State |
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Health Services. |
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(3-a) "Executive commissioner" means the executive |
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commissioner of the Health and Human Services Commission. |
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(5) "Home" means a primary residence that contains a |
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kitchen and appliances designed for common residential usage. |
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SECTION 5. Chapter 437, Health and Safety Code, is amended |
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by adding Sections 437.0191 and 437.0192 to read as follows: |
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Sec. 437.0191. EXEMPTION FOR COTTAGE FOOD PRODUCTION |
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OPERATIONS. A cottage food production operation is not a food |
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service establishment for purposes of this chapter. |
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Sec. 437.0192. REGULATION AND INVESTIGATION OF COTTAGE FOOD |
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PRODUCTION OPERATIONS BY LOCAL HEALTH DEPARTMENT. (a) A local |
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health department: |
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(1) may not regulate the production of food at a |
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cottage food production operation; and |
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(2) may investigate a cottage food production |
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operation only if the local health department receives a complaint |
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regarding the operation. |
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(b) If the department receives a complaint about a cottage |
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food production operation, the operation's owner shall provide the |
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department with a current financial statement, federal income tax |
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return, sales receipts, or other documentation to establish that |
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the annual gross sales of the operation do not exceed $250,000. |
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SECTION 6. Chapter 33, Human Resources Code, is amended by |
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adding Section 33.029 to read as follows: |
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Sec. 33.029. FARMERS' MARKET NUTRITIONAL ASSISTANCE |
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PROGRAM. (a) In this section, "farmers' market" means a location |
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at which a group of two or more farmers that are certified under the |
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Department of Agriculture's farmers' market certification program |
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offer produce for retail sale. |
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(b) The department shall develop and implement a farmers' |
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market nutritional assistance program. The program must: |
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(1) allow a person receiving benefits under a |
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nutritional assistance program under this chapter to purchase at a |
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farmers' market food items eligible under the program; |
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(2) provide an affordable method for enabling |
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individual sellers at a farmers' market to accept and process an |
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electronic benefits transfer as payment for food; and |
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(3) make available to a person receiving benefits |
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under a nutritional assistance program administered under this |
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chapter information regarding the program and a list of |
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participating farmers' markets. |
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(c) The department may not implement a program under this |
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section for the sole purpose of regulating farmers' markets. |
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(d) The department may accept gifts or grants from |
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individuals or private or public organizations and accept federal |
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or local funds to implement and administer the program developed |
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under this section. |
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SECTION 7. (a) The comptroller shall: |
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(1) determine whether land is eligible, under current |
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law, for appraisal under Subchapter C or D, Chapter 23, Tax Code, if |
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the land is used to: |
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(A) cultivate an urban farm; |
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(B) cultivate a community garden; |
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(C) produce specialty crops; or |
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(D) raise livestock or produce crops using |
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organic, sustainable, or other unconventional methods; and |
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(2) study issues regarding the eligibility of land |
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used for the purposes listed in Subdivision (1) for appraisal under |
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Subchapter C or D, Chapter 23, Tax Code. |
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(b) Not later than December 1, 2012, the comptroller shall |
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submit to the appropriate standing committees of the senate and the |
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house of representatives a report on: |
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(1) the comptroller's eligibility determinations |
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under Subsection (a)(1); |
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(2) an analysis of the comptroller's reasons for |
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determining that land used for a purpose listed in Subsection |
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(a)(1) is or is not eligible for appraisal under Subchapter C or D, |
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Chapter 23, Tax Code; and |
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(3) as applicable and based on the determinations made |
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under Subdivision (a)(1), recommendations for legislation to |
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clarify or change the requirements for land to be eligible for |
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appraisal under Subchapter C or D, Chapter 23, Tax Code. |
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(c) This section expires December 31, 2012. |
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SECTION 8. The change in law made by this Act in amending |
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Section 435.009, Health and Safety Code, and adding Section |
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435.0092, Health and Safety Code, applies to a small dairy |
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production operation permit that is issued or renewed under Section |
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435.0092, Health and Safety Code, as added by this Act, on or after |
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the effective date of this Act. A permit issued or renewed under |
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Chapter 435, Health and Safety Code, before the effective date of |
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this Act is governed by the law in effect at the time the permit was |
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issued or renewed, and the former law is continued in effect for |
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that purpose. |
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SECTION 9. If before implementing any provision of this Act |
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a state agency determines that a waiver or authorization from a |
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federal agency is necessary for implementation of that provision, |
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the agency affected by the provision shall request the waiver or |
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authorization and may delay implementing that provision until the |
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waiver or authorization is granted. |
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SECTION 10. The Health and Human Services Commission shall |
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develop and implement the farmers' market nutritional assistance |
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program as required by Section 33.029, Human Resources Code, as |
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added by this Act, not later than September 1, 2012. |
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SECTION 11. This Act takes effect September 1, 2011. |