BILL ANALYSIS Public Health Committee C.S.H.B. 2383 By: McDonald 04-11-95 Committee Report (Substituted) BACKGROUND The Texas Department of Health (TDH) currently monitors the charges levied by counties and local public health districts. In some municipalities, excessive food service permit fees and multiple fines have transformed the local health departments into revenue generators. The revenue generated is more than necessary for the regulation of food service in some cases, and is allocated to unrelated municipal expenses. Local health authorities, pressed by municipalities to generate excess revenue, lose sight of their function as protectors of the public health. Some restaurants, overcharged and fearful of the local health authority, have an adversarial relationship with them. PURPOSE H.B. 2383 as substituted eliminates the cap based on the lowest fee charged in a district and prohibits excessive fines. 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 Section 437.012(b) of the Health and Safety Code by establishing that the fee charged by a county or public health district for issuing or renewing a permit may not exceed $150, and deletes the language allowing the fee to also be the highest fee charged by a municipality in the county or public health district, whichever amount is less. SECTION 2. Adds Section 437.019 to the Health and Safety Code as follows: (a) Establishes that a municipality, county, or public health district may not unreasonably penalize a person required to obtain a permit for retailing or serving food by levying fines or penalties significantly in excess of similarly situated municipalities, counties or public health districts. (b) Establishes that a person or class of persons may bring suit to enjoin a practice prohibited by this section and may recover fines found by the court to have been excessive or confiscatory in nature, and reasonable attorney's fees and court costs. SECTION 3. Effective date: September 1, 1995. SECTION 4. Emergency clause. COMPARISON OF ORIGINAL TO THE SUBSTITUTE H.B. 2383 as substituted deletes specific requirements in the original bill for municipalities to create a subsidiary account dedicated to the regulation of the food service industry. Provisions in the introduced version which would have mandated municipalities to audit this account and file a financial report with the Texas Department of Health have been deleted. Amends the original bill to prohibit a municipality, county, or public health district from unreasonably penalizing a person required to obtain a permit through excessive fines or penalties not consistent with the norm. SUMMARY OF COMMITTEE ACTION H.B. 2383 was considered by the committee in a public hearing on March 28, 1995. The committee considered a complete substitute for the bill. The substitute was adopted without objection. The following persons testified in favor of the bill: Chuck Courtney, representing Texas Retailers Association. Glenn Garey, representing Texas Restaurant Association. Rex T. Sherry, representing self. The following person testified against the bill: Wayne Farrell, representing self and Texas Association of Municipal Health Officials. The bill was considered by the committee as pending business on April 11, 1995. The bill was reported favorably as substituted, with the recommendation that it do pass and be printed, by a record vote of 6 Ayes, 0 Nays, 0 PNV, 3 Absent.