BILL ANALYSIS C.S.H.B. 722 By: Bob Turner 02-24-95 Committee Report (Substituted) BACKGROUND In 1991 the Centers for Disease Control linked an outbreak of salmonella food poisoning to cantaloupes. Texas growers, farm workers, and others involved in the melon industry suffered $12 million in losses due to news reports about the possibility of salmonella in the fruit, even though those reports were never substantiated. The well-known Alar apple scare cost apple growers in Washington State $125 million. It was later determined that the disseminators of the damaging, sensationalized allegations linking Alar to cancer had no recognized scientific data to validate their charges. These cases underscore the fact that food producers in Texas are currently vulnerable to the careless or malicious use of false or misleading information. This is especially alarming when considering the short amount of time available to harvest and market perishable agricultural and aquacultural food products. Many feel that legislation is needed to ensure that claims about the health, safety and wholesomeness of Texas-grown food products are based on reasonable and reliable scientific data, not sensationalized claims made by groups or individuals seeking publicity for their agendas. Opponents to food product legislation believe that the measure is unnecessary because common law slander of property already offers producers protection, although it does not provide for a cause of action. They also believe that the bill's broad language will inhibit consumers' ability to learn about products that may be unsafe. Legislation comparable to C.S.H.B. 722 was introduced during the Seventy-third Regular Legislature. Similar food product disparagement legislation has already been passed in Louisiana, Idaho, Georgia, Colorado, Alabama, Florida and South Dakota. PURPOSE The purpose of this legislation is to create a cause of action against the disparagement of perishable food products. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, department or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Title 4, Civil Practice and Remedies Code, by adding Chapter 96 as follows: CHAPTER 96. FALSE DISPARAGEMENT OF PERISHABLE FOOD PRODUCTS. SECTION 96.001. DEFINITION. Defines "perishable food product." SECTION 96.002. LIABILITY. (a) Sets forth that a person is liable if: (1) the person disseminates information relating to a perishable food product to the public; (2) the person knows the information is false; and (3) the information states or implies that the food product is not safe for consumption by the public. (b) Sets forth that a person who is liable under Subsection (a) is liable to the producer of the product for damages and appropriate relief. SECTION 96.003. PROOF. Establishes a presumption that disseminated information is considered false if it was not based on reasonable and reliable scientific inquiry, facts or data. This presumption may be challenged by appropriate evidence. SECTION 2. Effective Date. The Act takes effect September 1, 1995 and applies only to information disseminated on or after that date. SECTION 3. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute includes processed and unprocessed agricultural and aquacultural food products in its definition of "perishable food product." SUMMARY OF COMMITTEE ACTION Public notice was posted in accordance with House rules and a public hearing was held on February 21, 1995. On February 21, 1995, the full committee voted to report H.B. 722 as substituted with the recommendation that it do pass by a record vote of 5 ayes, 0 nays, 0 present not voting and 4 absent. The following people testified in support of the bill: Ms. Kathryn Keller, of the Texas Farm Bureau and representing herself. Mr. Charles Carter, representing the Independent Cattlemen's Association of Texas. Mr. Ed Small, attorney, representing Texas and Southwestern Cattle Raisers Association. Mr. Ross Wilson, representing the Texas Cattle Feeders Association. Mr. Tommy Engelke, representing the Texas Agricultural Cooperative Council. The following people testified against the bill: Mr. Reggie James, representing the Consumers Union.