HB 2844

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