Relating to the regulation of food service establishments, including retail food stores and mobile food vendors; requiring an occupational license; imposing fees; authorizing an administrative penalty.

89(R) HB 2844 - Enrolled version - Bill Text

H.B. No. 2844

AN ACT

relating to the regulation of food service establishments,

including retail food stores and mobile food vendors; requiring an

occupational license; imposing fees; authorizing an administrative

penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 437, Health and Safety Code, is amended

by adding Section 437.0063 to read as follows:

Sec.

437.0063.

SMALL-SCALE FOOD BUSINESS PERMIT

EXEMPTIONS.

(a)

In this section:

(1)

"Food producer" has the meaning assigned by

Section 437.020.

(2)

"Small-scale food business" means a legal entity

established by a farmer or food producer with less than $1.5 million

in annual gross revenue.

The term includes a sole proprietorship,

organization, association, corporation, partnership, joint

venture, limited partnership, limited liability partnership, or

limited liability company.

(b)

A county, municipality, or public health district may

not require a small-scale food business or an employee of a

small-scale food business to obtain a permit or pay a permitting fee

to operate a food service establishment, temporary food service

establishment, retail food establishment, temporary retail food

establishment, or retail food store if the business:

(1)

holds a permit issued by the department for that

purpose; or

(2)

is licensed as a food manufacturer under

Subchapter J, Chapter 431.

(c)

This section preempts a county's, municipality's, or

public health district's authority to regulate a small-scale food

business in a manner that conflicts with this section.

SECTION 2. Subtitle A, Title 6, Health and Safety Code, is

amended by adding Chapter 437B to read as follows:

CHAPTER 437B. MOBILE FOOD VENDORS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 437B.001. DEFINITIONS. In this chapter:

(1)

"Applicant" means a person who applies to the

department to receive a license to operate as a mobile food vendor.

(2)

"Food vending vehicle"

means any vehicle that

operates as a food service establishment and is designed to be

readily movable.

(3)

"License holder" means a person who holds a mobile

food vendor license issued under this chapter.

(4)

"Local authority" means a municipality, county,

public health authority, special purpose district or authority, or

any other political subdivision of this state.

(5)

"Mobile food vendor" means any person who

dispenses food or beverages from a food vending vehicle for

immediate service or consumption.

(6)

"Prepackaged food" means any commercially labeled

and processed food that is prepackaged to prevent direct human

contact with the food product on distribution from the

manufacturer, food facility, or other approved source.

Sec.

437B.002.

CONSTRUCTION OF CHAPTER. This chapter may

not be construed to require a local authority to enter into a

collaborative agreement with the department to conduct health

inspections, adopt a program regulating mobile food vendors, or

modify a local authority's existing mobile food vendor regulation

program, provided the local authority's regulations do not conflict

with this chapter.

Sec.

437B.003.

LOCAL PREEMPTION. This chapter preempts a

local authority's power to prohibit or regulate mobile food vendors

in a manner that conflicts with this chapter.

Sec.

437B.004.

RULES. The executive commissioner may adopt

rules to implement this chapter.

The rules must be narrowly

tailored to address a demonstrable health or safety risk and may

not:

(1)

limit the number of mobile food vendor licenses

the department may issue;

(2)

address the hours of operation for mobile food

vendors;

(3)

restrict a mobile food vendor's propane capacity

below the capacity state law allows for commercial vehicles; or

(4) require a mobile food vendor to:

(A)

operate outside a specific perimeter of a

commercial establishment or restaurant;

(B)

enter into any agreement with a commercial

establishment or restaurant, except as necessary to properly

dispose of grease and other cooking waste;

(C)

have an operational handwashing sink in the

vehicle of a vendor who sells only prepackaged food;

(D)

associate with a commissary if the vehicle

carries the equipment necessary to comply with state law and

properly disposes of grease and other cooking waste;

(E)

provide the vendor's fingerprints as a

condition of holding a mobile food vendor license;

(F)

install a global positioning system tracking

device on the vehicle;

(G)

keep the vehicle in constant motion except

when serving customers;

(H)

submit to an additional fire inspection a

vehicle the vendor demonstrates has passed a state or local fire

inspection within the preceding 12 months; or

(I)

submit to health inspections other than an

inspection the department, or a local authority under a

collaborative agreement, conducts unless the department is

investigating a reported foodborne illness.

SUBCHAPTER B. LICENSE

Sec.

437B.051.

LICENSE REQUIRED. (a)

A person may not

operate as a mobile food vendor in this state unless the person

holds a mobile food vendor's license issued by the department.

A

separate license is required for each food vending vehicle a mobile

food vendor operates.

(b)

A local authority may not prohibit the operation in its

jurisdiction of a mobile food vendor who holds a mobile food vendor

license and complies with all other state and local laws not in

conflict with this chapter.

Sec.

437B.052.

FORM OF APPLICATION. The department shall

prescribe a written application for a mobile food vendor license.

The department shall make the application available to applicants

in person and on the department's Internet website.

Sec.

437B.053.

APPLICATION REQUIREMENTS. (a) An applicant

for a mobile food vendor license must submit an application to the

department on the form the department prescribes. The application

must contain:

(1)

the applicant's name, address, and telephone

number;

(2)

the name, address, and telephone number of any

associated entity or organization the applicant is representing and

copies of documents verifying that relationship;

(3)

the applicant's primary residences and business

addresses during the 12 months preceding the date of the

application;

(4)

the food or beverages the applicant proposes to

sell to enable the department to establish the applicant's food

type classification;

(5)

a statement of whether the applicant has

previously been denied a mobile food vendor license or had a mobile

food vendor license suspended or revoked in another state or local

jurisdiction and the reasons for any denial, suspension, or

revocation; and

(6)

for each motorized food vending vehicle the

applicant is applying for a license to operate:

(A)

the vehicle license number, description,

identification number, and registration;

(B) proof of vehicle insurance; and

(C)

a copy or proof of any additional commercial

vehicle licenses or permits required by this state.

(b)

An applicant must attest to the information submitted

under Subsection (a).

(c)

The department may require an applicant to submit

additional information.

(d)

An applicant may submit one application for all food

vending vehicles to be licensed under this subchapter.

(e)

An applicant's failure to submit a complete application

may result in denial of a license.

(f)

A person may not intentionally provide false

information or intentionally omit requested information on an

application.

Sec.

437B.054.

HEALTH INSPECTION. (a)

Not later than the

14th day after the date the department receives a complete mobile

food vendor license application, the department or a governmental

entity acting under a collaborative agreement as provided by

Subchapter D shall conduct a health inspection of each of the

applicant's food vending vehicles listed on the application.

The

department may not issue a license to an applicant whose vehicle

does not pass a health inspection.

(b) The department shall ensure that:

(1)

an applicant's food vending vehicle is safe for

preparing, handling, and selling food; and

(2)

an applicant is in compliance with all applicable

laws and the rules adopted under those laws.

Sec.

437B.055.

ISSUANCE OF LICENSE. (a)

The department

shall issue a mobile food vendor license to an applicant who submits

a complete application, pays any required fee, and meets the

department's licensing requirements and whose food vending vehicle

passes a health inspection.

(b)

A license issued under this section expires on the first

anniversary of the date of issuance.

Sec.

437B.056.

LICENSE RENEWAL. (a)

Before expiration of a

license, the department shall send notice of the expiration to the

mobile food vendor.

The vendor shall submit a renewal application

before the date the license expires.

(b)

A mobile food vendor may continue to operate while the

vendor's application for renewal is pending with the department.

Sec.

437B.057.

LICENSE NOT TRANSFERABLE; SUBSTITUTION OF

VEHICLE. (a)

A mobile food vendor license issued under this

subchapter is not transferable and does not authorize the

activities of any person other than the person who holds the

license.

(b)

The sale of one food vending vehicle identified in a

mobile food vendor license application, when replaced by another

food vending vehicle, does not invalidate the license or require

issuance of a new license.

(c)

A license holder who replaces a food vending vehicle

with another vehicle must provide to the department for the

replacement vehicle the information required by Section 437B.053

and have the replacement vehicle inspected as required by Section

437B.054.

The health inspection shall be conducted as soon as

practicable but not later than the 14th calendar day after the date

the department receives the information required under this

section.

(d)

The recipient of transferred mobile food vendor

business assets must apply for and obtain a new mobile food vendor

license before operating as a mobile food vendor.

Sec.

437B.058.

FEES. (a)

The department may charge a fee

for each mobile food vendor license application submitted and each

license issued or renewed under this chapter.

The department may

establish a schedule of fees based on the license classifications

described by Section 437B.151.

The department may set the fees in

amounts necessary to cover the costs of administering this chapter.

(b)

The department may charge a fee for a health inspection

of an applicant's food vending vehicle required under Section

437B.054.

The department shall set the fee in an amount that covers

the cost of conducting a health inspection under that section.

(c)

At the time the department issues or renews a mobile

food vendor license, the department shall charge a fee for a health

inspection required under Subchapter D.

The department shall set

the fee in an amount based on the average cost of conducting a

health inspection multiplied by the number of annual health

inspections required during the next year for the mobile food

vendor classification type as described by Section 437B.151.

(d)

All fees collected by the department under this chapter

shall be deposited in the state treasury to the credit of the food

and drug retail fee account.

Sec.

437B.059.

MOBILE FOOD VENDOR GUIDE. (a)

The

department shall develop a guide on the mobile food vendor

licensing procedures.

The guide must include:

(1)

instructions for obtaining, maintaining, and

renewing a mobile food vendor license; and

(2)

a description of the department's standards for

inspecting a food vending vehicle.

(b)

The department shall make the guide available at the

department's office and on the department's Internet website.

Sec.

437B.060.

DEPARTMENT DATABASE. (a)

The department

shall establish and maintain a statewide database for use by the

department and local authorities that includes the:

(1)

names of mobile food vendors licensed under this

chapter;

(2)

results of health inspections of mobile food

vendors' food vending vehicles, including inspection reports;

(3)

public complaints made against mobile food vendors

resulting in disciplinary or corrective action; and

(4)

itineraries of mobile food vendors submitted under

Subsection (b).

(b)

A mobile food vendor may periodically submit to the

department an itinerary of the locations of the mobile food

vendor's food vending vehicles.

SUBCHAPTER C.

MOBILE FOOD VENDOR OPERATIONS

Sec.

437B.101.

COMPLIANCE WITH STATE AND LOCAL LAW. A

mobile food vendor shall comply with all state and local laws in the

jurisdiction in which the mobile food vendor operates, including

all fire codes, location restrictions, and zoning codes.

Sec.

437B.102.

FOOD VENDING VEHICLE DRIVER REQUIREMENTS. A

person who drives a motorized food vending vehicle must hold a

current commercial driver's license if a commercial driver's

license is required for the vehicle's class under Chapter 522,

Transportation Code.

Sec.

437B.103.

OPERATIONAL STANDARDS. A mobile food vendor

shall:

(1)

submit to and pass any required health inspection

conducted under Subchapter D; and

(2)

display the mobile food vendor license and health

inspection certificate in a conspicuous location for public view.

Sec.

437B.104.

FOOD SAFETY. A mobile food vendor shall

comply with all laws and rules regarding food safety, including any

food safety and food manager certifications required under Chapter

438.

SUBCHAPTER D.

HEALTH INSPECTIONS

Sec.

437B.151.

MOBILE FOOD VENDOR CLASSIFICATIONS. (a)

The executive commissioner by rule shall establish classifications

of mobile food vendors for purposes of conducting health

inspections as follows:

(1)

mobile food type I vendor for a vendor who

dispenses prepackaged foods, does not dispense time or temperature

control for safety beverages, or poses a low risk of harm to the

public;

(2)

mobile food type II vendor for a vendor who

dispenses food that requires limited handling and preparation; and

(3)

mobile food type III vendor for a vendor who

prepares, cooks, holds, and serves food from a food vending

vehicle.

(b)

The rules adopted under Subsection (a) shall specify the

categories of foods or beverages that mobile food vendors in each

classification may serve.

Sec.

437B.152.

CHANGING CLASSIFICATIONS. A mobile food

vendor who seeks to serve food or beverages that may require the

vendor's reclassification shall notify the department of the nature

of the food or beverages to be sold. The department, or a local

authority in a collaborative agreement with the department under

Section 437B.153, may conduct a health inspection and reclassify

the vendor in accordance with the rules adopted under Section

437B.151.

Sec.

437B.153.

INSPECTIONS; COLLABORATIVE AGREEMENT WITH

LOCAL AUTHORITY. (a)

To protect public health and safety, the

department shall ensure ongoing, randomized inspections are

conducted on each mobile food vendor based on the mobile food

vendor's classification and previous health inspection results.

(b)

On request by a local authority, the department may

enter into a collaborative agreement with the local authority for

conducting health inspections.

The department shall reimburse the

local authority acting under a collaborative agreement for the cost

of conducting a health inspection using money collected for health

inspection fees under Section 437B.058(c).

Sec.

437B.154.

NOTICE OF LOCATION FOR INSPECTIONS. A

mobile food vendor shall make available to the department a list of

all locations at which the vendor intends to operate, to the best of

the vendor's knowledge.

A vendor may provide the list of locations

through the vendor's social media or on the vendor's Internet

website.

If the vendor does not provide the list of operating

locations on social media or the vendor's Internet website, the

vendor shall submit to the department in the form and manner the

department prescribes a list of the locations at which the vendor

intends to operate, to the best of the vendor's knowledge.

Sec.

437B.155.

REIMBURSEMENT OF INSPECTION FEE.

On request

of a mobile food vendor, the department shall reimburse the vendor

the portion of the fee charged for each health inspection required

under this subchapter that was not conducted by the department or

local authority under a collaborative agreement during the time the

vendor's license was valid.

The department shall reimburse the

vendor not later than the 30th day after the date the department

receives the vendor's request.

SUBCHAPTER E.

INVESTIGATION; ENFORCEMENT

Sec.

437B.201.

INVESTIGATION. (a)

The department or a

local authority may investigate a mobile food vendor on reasonable

suspicion the vendor is violating the law or on receipt of a health

or safety complaint.

The department must record a complaint in the

state's mobile food vendor database.

The local authority shall

report suspected violations of state law to the department and may

recommend the department suspend or revoke a mobile food vendor

license.

(b)

The mobile food vendor shall cooperate with the

department or local authority during an investigation. Failure to

cooperate with the department or local authority may result in

suspension or revocation of a license.

(c)

This chapter may not be construed to impede the

department or local authority when conducting an investigation of a

reported foodborne illness.

Sec.

437B.202.

LICENSE DENIAL, SUSPENSION, OR REVOCATION.

The department may deny, suspend, or revoke a mobile food vendor

license only if:

(1) the applicant or license holder:

(A)

violates this chapter, a rule adopted under

this chapter, or a department order;

(B)

obtains a license by means of fraud,

misrepresentation, or concealment of a material fact;

(C)

commits fraud or makes a misrepresentation or

false statement in connection with the sale of food or beverages

while operating as a mobile food vendor; or

(D)

is cited three or more times during a

12-month period for a violation of this chapter or rules adopted

under this chapter; or

(2)

the department determines that material facts or

conditions related to the applicant or application provide

reasonable justification for the denial, suspension, or revocation

of the license.

Sec.

437B.203.

NOTICE AND HEARING. (a)

The department

shall provide written notice to an applicant or license holder that

the applicant's mobile food vendor application has been denied or

that the license may be suspended or revoked.

Not later than 14

calendar days after the date an applicant or license holder

receives notice from the department of a denial, suspension, or

revocation of a license, the applicant or license holder may

request a hearing in the form and manner the department prescribes.

(b)

If the applicant for or holder of a mobile food vendor

license requests a hearing as prescribed by the department, the

department shall promptly refer the matter to the State Office of

Administrative Hearings for a contested case hearing.

(c)

Following a hearing or on conclusion of the involvement

of the State Office of Administrative Hearings in the matter under

this section, the department shall promptly issue an order that

includes findings of fact and conclusions of law.

Sec.

437B.204.

EMERGENCY SUSPENSION. (a)

The department

may issue an emergency order to suspend a mobile food vendor license

if the department has reasonable cause to believe a license

holder's operations pose an imminent threat to the public's health

and safety.

An emergency suspension order is effective immediately

without a hearing on notice to the license holder and must state the

length of the suspension.

(b)

Not later than the 14th day after the date a mobile food

vendor license holder receives notice from the department of an

emergency suspension of a license under this section, the license

holder may request a preliminary hearing on the emergency order in a

form and manner the department prescribes.

(c)

On receipt of a license holder's request for hearing

under Subsection (b), the department shall promptly refer the

matter to the State Office of Administrative Hearings for a

preliminary hearing before an administrative law judge.

(d)

An administrative law judge for the State Office of

Administrative Hearings shall:

(1)

conduct a preliminary hearing to affirm, modify,

or set aside the emergency suspension order issued by the

department under Subsection (b) not later than the 17th day after

the date the office receives the hearing request;

(2) make findings of fact and conclusions of law; and

(3)

issue a written proposal for decision on the

department's reasonable cause to believe a continuing and imminent

threat to the public's health and safety exists.

(e)

A final hearing on the matter shall be held not later

than the 61st day after the date of the emergency suspension.

Sec.

437B.2045.

RIGHT TO APPEAL. The department's

suspension or revocation of a mobile food vendor license under this

chapter and the appeal from that action are governed by the

procedures for a contested case hearing under Chapter 2001,

Government Code.

Sec.

437B.205.

ADMINISTRATIVE PENALTY.

A license holder

who continues to operate after the department suspends or revokes

the license holder's mobile food vendor license is subject to an

administrative penalty in an amount the department determines.

SECTION 3. Section 437.0055(a), Health and Safety Code, is

amended to read as follows:

(a) A person may not operate a food service establishment,

retail food store, [
mobile food unit,
] or temporary food service

establishment located in an area in which a county or public health

district does not require a permit or conduct inspections under

this chapter unless the person has a permit issued by the

department.

SECTION 4. Section 437A.003, Health and Safety Code, is

repealed.

SECTION 5. (a) Chapter 437B, Health and Safety Code, as

added by this Act, applies to an ordinance, rule, regulation,

policy, or procedure adopted before, on, or after the effective

date of this Act.

(b) Not later than May 1, 2026, the executive commissioner

of the Health and Human Services Commission shall adopt the rules

required by Chapter 437B, Health and Safety Code, as added by this

Act.

(c) A mobile food vendor is not required to hold a license

under Chapter 437B, Health and Safety Code, as added by this Act,

before July 1, 2026.

SECTION 6. (a) Except as provided by Subsection (b) of this

section, this Act takes effect July 1, 2026.

(b) Section 437B.004, Health and Safety Code, as added by

this Act, takes effect September 1, 2025.

______________________________

______________________________

President of the Senate

Speaker of the House

I certify that H.B. No. 2844 was passed by the House on May

16, 2025, by the following vote: Yeas 86, Nays 31, 4 present, not

voting; and that the House concurred in Senate amendments to H.B.

No. 2844 on May 29, 2025, by the following vote: Yeas 102, Nays 36,

1 present, not voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 2844 was passed by the Senate, with

amendments, on May 26, 2025, by the following vote: Yeas 29, Nays

2.

______________________________

Secretary of the Senate

APPROVED: __________________

Date

__________________

Governor