(a) Except as provided by Subsection (b), a food service establishment that holds a permit under this chapter may sell directly to an individual consumer food, other than prepared food, that:
(1) is labeled, which may include a handwritten label, with any information required by the department’s food service establishment rules;
(2) for a meat product or poultry product, is obtained from a source that is appropriately inspected and bears an official mark of inspection from the department or the United States Department of Agriculture; and
(3) for food requiring refrigeration other than whole, uncut produce, is:
(A) maintained at or below 41 degrees Fahrenheit until the establishment sells or donates the food; and
(B) protected from contamination.
(b) A food service establishment described by Subsection (a) may not sell directly to an individual consumer food that is:
(1) in a package exhibiting damage; or
(2) distressed because the food:
(A) has been subjected to fire, flooding, excessive heat, smoke, radiation, or another environmental contamination;
(B) is not held at the correct temperature for the food type; or
(C) is not in good condition.

(c) A municipality or public health district may not require a food service establishment that sells food directly to an individual consumer under this section to obtain a food manufacturer license or permit if the establishment:
(1) complies with this section; and
(2) is not required to hold a food manufacturer license or permit under other state law.