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.