SB 1864 revises Section 132.002 of the Texas Agriculture Code to expand the commercial opportunities for small-scale egg producers by loosening regulatory restrictions on the sale of ungraded eggs. Under current law, individuals selling eggs from their own flocks are generally exempt from the chapter’s requirements so long as they do not claim a grade for the eggs. SB 1864 retains this exemption for direct-to-consumer sales and clarifies that such producers may also sell up to 400 dozen ungraded eggs per week at wholesale to small grocery stores (under 25,000 square feet), restaurants, and cooperative associations.
To ensure transparency and food safety, the bill establishes modest labeling and handling requirements for producers selling at wholesale. Egg cartons must prominently display a label indicating that the eggs are ungraded, along with the producer's name, address, packing date, and license number (if applicable). Wholesale sellers are also required to obtain a license as an “ungraded dealer-wholesaler” from the Texas Department of Agriculture and must adhere to basic sanitation, refrigeration, and recordkeeping protocols to ensure the safe distribution of eggs.
Finally, the bill includes a preemption clause that prohibits any state agency or political subdivision from restricting the purchase, resale, or use of ungraded eggs that comply with these standards. The legislation directs the Texas Department of Agriculture to adopt the necessary administrative rules for implementation.
The House Committee Substitute for SB 1864 makes several substantive and structural changes compared to the Senate Engrossed version, focusing on refining scope, terminology, and administrative requirements for the sale of ungraded eggs in Texas.
One of the key differences is in the weekly wholesale sales limit: the Senate version allows producers to sell up to 500 dozen ungraded eggs per week, while the House substitute reduces this to 400 dozen. Additionally, the House substitute specifies that wholesale sales are limited to particular types of buyers—restaurants, small grocery stores (under 25,000 square feet), and agricultural cooperatives—whereas the Senate version allows wholesale sales more broadly without defining the nature of the buyers.
The licensing requirement also differs in terminology and implementation. The Senate version uses a simpler "registration" requirement with the Texas Department of Agriculture and authorizes a registration fee of up to $50, calling the identifier a "registration number." In contrast, the House substitute replaces this with a more formal "license as an ungraded dealer-wholesaler" and does not reference a specific fee, suggesting potentially stricter oversight or operational standards.
Structurally, the House substitute adds detail to enforcement and compliance by explicitly referencing the relevant statute sections for recordkeeping, refrigeration, and sanitation (Sections 132.061 and 132.045). It also mandates that eggs must be refrigerated within 36 hours of collection and stored at 45°F or lower, which is consistent across both versions but more clearly organized in the House substitute.
Finally, the House substitute includes a preemption clause barring political subdivisions from interfering with the purchase, resale, or use of eligible ungraded eggs—this provision also exists in the Senate version, but its framing in the House substitute is slightly clearer in its scope and protections.
Overall, the House version tightens regulatory boundaries and sharpens clarity on eligible sales channels while preserving the bill's core intent to expand opportunities for small egg producers.