BILL ANALYSIS



H.B. 1313
By: Uher
4-25-95
Committee Report (Amended)


BACKGROUND

     Texas is an important seafood production state, harvesting
roughly $200 million worth of seafood products each year. 
Nationwide, Texas ranks fourth in landed value.  This high dockside
value exists primarily because large, offshore shrimp dominate the
state's seafood production base.  Offshore shrimp have placed three
Texas ports among the top twenty highest valued fishing ports in
the United States.  Texas shrimpers produce 34 cents out of every
dollar's worth of shrimp harvested in U.S. waters.  Besides shrimp,
the wild fishery consists of oysters, crabs, and various pelagic
finfish species such as tuna.  In addition to these wild harvests,
Texas aquaculture is an emerging industry, though currently
considerably smaller than the wild fishery.  These harvests are
processed into numerous market forms and are distributed
nationwide.  Texas is a huge market for seafood, and much of our
seafood production base ends up in the display cases of Texas
grocery stores.  By any measure (sales, square footage, and number
of stores) the Texas grocery industry is the second largest
nationwide. 

As in all food systems, the total economic impact of producing food
goes far beyond the docks, boats, fishermen, and aquaculture
facilities.  It also impacts suppliers as well as processing,
distributing, and retailing components.  Cumulatively, seafood-linked employment in Texas is estimated at 30,000 full time jobs
with an annual payroll of $327 million.  Every pound of seafood
landed in Texas generates $5.20 in payroll for seafood-linked firms
across the state.
For each $1,000 paid to working Texans, $3 are seafood-linked. 
Comparing seafood-linked employment and payroll with the massive
Texas agribusiness complex, seafood-linked employment accounts for
29 out of every 1,000 agribusiness jobs, and $24 out of every
$1,000 in agribusiness payroll.  

The common thread running through each of these seafood-linked
sectors is the need for objective, science-base information which
these industries can use to maintain, or enhance, their economic
opportunities while contributing significantly to the state's
economy.  Without added research and education efforts focused on
the current issues facing seafood-dependent industries, it can be
expected that some segments of Texas' seafood linked economy will
shrink in economic importance, and adversely affect not only
individual firms but also the dependent regional infrastructure
along the Texas gulf coast. 

PURPOSE

     The purpose of this legislation is to establish a mechanism
for placing the Texas Seafood* production and processing sector on
a more equal footing with other users of coastal resources to help
them maintain their economic vitality and competitive position in
Texas, the U.S. and the global marketplace through the production
and distribution of documents on: industry assessments; economic
analysis; employment and payroll surveys; annual product forecasts
and income; and the overall performance of the seafood production
and processing industries.  Also, applied research, educational and
demonstration programs will be conducted and presented to food
retailers that focuses on the design and implementation of cost
effective, labor efficient, seafood quality management systems to
improve efficiency, quality and in return, increased profits. 
Finally, given the forthcoming mandates and regulations (1995) from
the U.S. Food and Drug Administration for all seafood processors
and importers to develop and implement a "Hazardous Analysis
Critical Control Point"  program (HACCP), for improving and
ensuring seafood safety, training programs will be developed and
provided to educate and improve management's knowledge and
efficiency for compliance.

* The term seafood used in this analysis refers to both wild
harvested species as well as those marine and freshwater species
which are cultured.         

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1.   Amends Health and Safety Code by adding Subchapter J
as follows:  Establishes the Texas Seafood-Linked Industries
Research, Educational, and Consumer Safety Program. 

     Sec. 463.131.  PROGRAM.  (a) Requires Texas A&M University Sea
Grant Program to  develop and administer a program related to
seafood linked industries.

     (b)  The program developed under this section shall prepare,
     distribute, and present various industry assessments, economic
     analyses, and market research efforts to help the industry
     maintain its economic vitality and competitive position.

     (c)  The program shall conduct and present the results of
     applied research and educational activities that focus on
     designing and implementing systems for food retailers.

     (d)  The program shall develop and present a variety of
     training opportunities for seafood processors and importers in
     the use of the hazard analysis critical control point system.

     (e)  The program shall develop and distribute printed or
     electronic materials that are objective and based on
     scientific fact to educate the public on topics related to the
     quality and safety of the seafood supply.

           Sec. 436.132.  ADVISORY COMMITTEE.  (a)  Creates a
technical advisory committee to assist Texas A&M Sea Grant Program.

     (b)  Advisory committee members serve two-year terms.

     (c)  The governor shall appoint one member to the advisory
     committee from each list submitted by the Texas Food Industry
     Association; the Texas Restaurant Association; the Texas
     Shrimp Association; and the Texas Aquaculture Association

     (d)  The governor may reject a list submitted under Subsection
     (c) and require another list to be submitted.

     (e)  The governor shall appoint a representative of the Texas
     grocery industry; a representative of the Texas seafood
     processing industry; and a representative of the Texas bay
     seafood industry, to the advisory committee.

     (f)  A representative from the Texas Agricultural Extension
     Service and the Texas Department of Health, chosen by the
     executive head of each agency, shall also serve on the
     advisory committee.

     (g)  Article 6252-33, Revised Statutes, does not apply to the
     advisory committee.

     Sec. 463.133.  ANNUAL REPORT.  Requires Texas A&M University
Sea Grant Program to develop annual progress reports. 

SECTION 2.   Appropriations of $450,000 is appropriated from the
general revenue fund to the Texas A&M University Sea Grant Program.

SECTION 3. Effective date:  September 1, 1995.

SECTION 4. Emergency clause.

EXPLANATION OF AMENDMENTS

Amendment #1 changes the sum of $450,000 appropriated from the
general revenue to $225,000 appropriated from the game, fish and
water safety account.

SUMMARY OF COMMITTEE ACTION

The Business and Industry Committee considered H.B. 1313 in a
public hearing on March 7, 1995.  The following witness testified
on H.B. 1313:  Michael G. Haby, representing Texas A&M Research
Extension Center.  The following witnesses testified for H.B. 1313: 
Tim C. Moore, representing Texas Aquaculture Association; Wilma
Anderson, representing Texas Shrimp Association; and Jim Sagnes,
representing Texas Shrimp Association.  H.B. 1313 was referred to
a subcommittee consisting of Representatives Janek-chair, Brady,
Eiland.  The subcommittee considered H.B. 1313 in a formal meeting
on April 25, 1995.  The subcommittee considered 1 (one) amendment
to H.B. 1313.  The 1 (one) amendment was adopted without objection. 
H.B. 1313, as amended, was reported favorably to the full committee
with the record vote of 2 (two) ayes, 0 (zero) nays, 0 (zero)
present-not-voting, 1 (one) absent.  H.B. 1313 was considered on
subcommittee report by the committee in a public hearing on April
25, 1995.  The full committee considered 1 (one) amendment to H.B.
1313.  The 1 (one) amendment was adopted without objection.  H.B.
1313, as amended, was reported favorably with the recommendation
that it do pass and be printed, by a record vote of 7 (seven) ayes,
0 (zero) nays, 0 (zero) present-not-voting, 2 (two) absent.