According to the Legislative Budget Board (LBB), the fiscal implications of SB 1864 are currently indeterminate. While the bill authorizes the Texas Department of Agriculture (TDA) to issue licenses for producers who wholesale ungraded eggs, the revenue impact cannot be projected with certainty. This is primarily due to two unknown variables: the specific license fee amount (which the bill authorizes but does not fix) and the number of small-scale producers who would opt into the licensing system to sell up to 400 dozen ungraded eggs per week.

Despite this uncertainty, the LBB indicates that the Texas Department of Agriculture could absorb any administrative costs associated with implementing the bill using existing resources. This suggests that no new appropriations would be immediately required to support enforcement, licensing, or compliance monitoring.

Moreover, the bill could provide a legal basis for future appropriations, depending on how the licensing framework evolves and whether additional resources are later deemed necessary to scale oversight or outreach efforts. At present, however, there are no direct fiscal implications for local governments, as the bill’s provisions do not impose mandates or costs on cities or counties.

SB 1864 advances a meaningful and balanced expansion of commercial opportunities for small-scale egg producers in Texas by legalizing limited wholesale distribution of ungraded eggs. The bill allows producers who do not claim a grade and who operate from their own flocks to sell any quantity directly to consumers and up to 400 dozen eggs per week to certain wholesale buyers—specifically small grocery stores, restaurants, and agricultural cooperatives. This shift enhances economic opportunity and consumer choice while preserving food safety through licensing, labeling, refrigeration, and sanitation requirements.

The bill upholds the principles of individual liberty and free enterprise by reducing unnecessary regulatory barriers that previously prevented small producers from entering wholesale markets without costly grading procedures. It ensures transparency and accountability through clear carton labeling and reasonable oversight via the required license from the Texas Department of Agriculture. Importantly, it also includes a preemption clause that prevents political subdivisions from banning or limiting the purchase and resale of such eggs, supporting a uniform regulatory environment across Texas.

While the fiscal impact is currently indeterminate due to uncertainties around the number of license applicants and the fee amount, the Legislative Budget Board concludes that any administrative costs could be absorbed using existing resources. From a policy perspective, this bill provides a cost-effective way to expand market access, empower small agricultural businesses, and enhance food system resilience without imposing substantial new regulatory burdens.

In sum, SB 1864 exemplifies limited, targeted government action that facilitates greater personal responsibility and economic participation, particularly in rural and local food economies. Texas Policy Research recommends that lawmakers vote YES on SB 1864.

• Individual Liberty: The bill expands individual freedom by enabling small-scale producers to sell ungraded eggs directly to consumers and to specified wholesale outlets without being subject to the full regulatory framework typically required for graded egg sales. This respects individuals’ rights to engage in voluntary, informed transactions and acknowledges consumers’ capacity to make their own decisions about food purchases when proper labeling is provided.
• Personal Responsibility: The bill fosters personal responsibility by placing reasonable obligations on producers who choose to sell eggs wholesale. It requires proper labeling, sanitation, refrigeration, and recordkeeping—ensuring that producers are accountable for the safety and traceability of their products. Consumers also assume responsibility in choosing ungraded eggs with full disclosure, supporting a marketplace where decisions are based on trust and transparency rather than overregulation.
• Free Enterprise: The bill directly advances free enterprise by removing costly and complex regulatory hurdles that have historically blocked small producers from accessing wholesale markets. By creating a licensing pathway for ungraded dealer-wholesalers, the bill unlocks new economic opportunities for small farms and family businesses. It also promotes competition by allowing more sellers into the market, which could improve supply and affordability for buyers like local restaurants and small grocers.
• Private Property Rights: The bill affirms producers’ rights to the products of their land—their flocks and eggs—by granting them broader latitude to use and sell those products. It recognizes that individuals should be able to commercialize the output of their property (in this case, eggs) within reasonable safety parameters. Additionally, it protects buyers (e.g., small businesses) from being barred by local ordinances from purchasing or reselling these eggs.
• Limited Government: The bill embodies limited government by reducing unnecessary state interference in small-scale agricultural commerce. It substitutes a burdensome egg grading mandate with a more narrowly tailored licensing and labeling requirement for wholesale sales, coupled with basic food safety rules. It also explicitly preempts local regulations that would otherwise restrict the sale or use of ungraded eggs, ensuring a consistent statewide policy that curtails local overreach.

• HB 2953 (Same As)