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.