BILL ANALYSIS


                                                         H.B. 722
                                        By: Turner, Bob (Sponsor)
                                                      Agriculture
                                                          4-22-95
                              Senate Committee Report (Unamended)
BACKGROUND

Currently, food producers in Texas are vulnerable to the careless
or malicious use of false or misleading information and the
subsequent market effect.  The short amount of time available to
harvest and market perishable agricultural and aquacultural food
products makes the vulnerability of these products especially
acute.

PURPOSE

As proposed, H.B. 722 creates liability for the false 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, 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

     Sec. 96.001.  DEFINITION.  Defines "perishable food product."
     
     Sec. 96.002.  LIABILITY.  (a) Makes a person liable under
     Subsection (b) if the person disseminates information about a
     perishable food product to the public, the person knows that
     the information is false, and the information states or
     implies that the food product is not safe for consumption.
     
     (b) Provides that a person who is liable under Subsection
       (a) is liable to the producer of the perishable product for
       damages and appropriate relief arising from the person's
       dissemination of the information.
       
       Sec. 96.003.  PROOF.  Requires the trier of fact, in
     determining if information is false, to consider whether the
     information was based on reasonable or reliable scientific
     inquiry, facts, or data.
     
     Sec. 96.004.  CERTAIN MARKETING OR LABELING EXCLUDED. 
     Declares that a person is not liable under this chapter for
     marketing or labeling any agricultural product in a manner
     that indicates that the product was grown or produced by using
     or not using a chemical or drug, was organically grown, or was
     grown without the use of any synthetic additive.
     
     SECTION 2.     Effective date: September 1, 1995.
           Makes application of this Act prospective.

SECTION 3. Emergency clause.