What does Texas SB541 do?
Effective September 1, 2025, SB541 transforms cottage food production from a limited hobby exemption into a regulated commercial tier by raising the revenue cap to $150,000 and authorizing wholesale distribution to retail outlets. This legislation strictly preempts local municipal authority, shifting oversight to the Department of State Health Services (DSHS) and introducing new liability risks for retailers entering the cottage food supply chain. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025 (All labeling, signage, and registration protocols must be active).