LSL H.B. 1875 75(R) BILL ANALYSIS PUBLIC HEALTH H.B. 1875 By: Glaze 4-2-97 Committee Report (Unamended) BACKGROUND State law has provided for the regulation of milk in Texas since 1937. Until 1979, cities had the primary role of inspecting and regulating dairies and the Texas Department of Health (TDH) oversaw the local regulation. In 1979, state law authorized statewide regulations for the safety of milk and gave the responsibility to TDH. State regulations ensure the safety of the state's milk supply through a program of permitting and inspection of dairies and milk processing plants. TDH regulations provide specifications for the production, handling and labeling of milk that ensure the safety and food value of the milk and for sanitary conditions. TDH uses product sampling and lab analysis to evaluate the milk for contamination and butterfat content. Milk which does not qualify as Grade A, or is found to contain contaminants like antibiotics, cannot be sold for human consumption in Texas. Dairies whose milk does not pass the laboratory analysis cannot sell milk until follow-up lab analysis proves the milk to be safe. Texas currently has about 1,600 dairies and 42 milk processing plants. Dairies and processors must maintain a permit and pay fees. In addition to annual permit fees, each processor must also pay a fee based on the volume of milk processed or distributed. The volume-based fee was initially set at $.01 per 100 pounds and has never been raised. About 4.2 billion pounds of milk were sold in Texas last year. TDH reports that milk fees cover only about 31 percent of the state cost of regulating the industry. Limited program fee revenues have limited the availability of follow-up laboratory analyses. Delays in follow-up lab analysis have resulted in wasted milk products which cannot be sold. PURPOSE HB 1875 increases the amount of funding available to the Texas Department of Health (TDH) for milk inspection by increasing the volume-based milk fee from one cent per hundred pounds to two cents per hundred pounds. The bill authorizes TDH to use the revenue for this volume-based fee only for milk inspections, which under this law includes sampling and laboratory analysis. 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 435.009, Health and Safety Code, by amending Subsection (b)(5) increasing the milk fee from "one cent" per hundred pounds to "two cents" per hundred pound, and by adding Subsection (g) requiring the TDH to use money collected under Subsection (b)(5) only for milk inspection. SECTION 2. Establishes that this bill takes effect September 1, 1997. SECTION 3. Emergency Clause.