I don't know about Texas, but I do know that Florida's Cottage Food Act DOES NOT allow online selling. LOTS of people ignoring it. I'm completely licensed/ certified/insured and it costs a lot of money to be completely legal...which is why, I guess so many people choose to risk it.
I have seen LOTS of shops on Etsy that are illegal as per the Cottage Food Act...not sure the rules in every state.