S.B. No. 691

AN ACT

relating to an animal share exemption for certain meat and meat food products; providing a civil penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter A, Chapter 433, Health and Safety Code, is amended by adding Section 433.0065 to read as follows:

Sec. 433.0065. ANIMAL SHARE EXEMPTION; CIVIL PENALTY. (a) In this section, "animal share" means an ownership interest in one or more identified livestock animals created by a contract between a farmer or rancher who owns the livestock and a prospective co-owner of the livestock.

(b) An animal share executed by a co-owner and a farmer or rancher under this section must include:

(1) a bill of sale the farmer or rancher provides to the co-owner conveying an ownership interest in the livestock;

(2) a provision authorizing the farmer or rancher to board the livestock and arrange preparation of the livestock as meat and meat food products for the co-owner; and

(3) a provision entitling the co-owner to a share of meat and meat food products derived from the livestock.

(c) The provisions of this chapter requiring inspection of livestock before slaughter and inspection of the preparation of meat and meat food products do not apply to the slaughter of livestock and preparation of meat and meat food products if:

(1) ownership of the livestock under an animal share is established before the livestock is slaughtered and the meat and meat food products are prepared;

(2) the meat and meat food products are:

(A) prepared from livestock subject to an animal share and delivered to the establishment preparing the products by the farmer or rancher boarding the livestock; and

(B) following preparation, delivered directly to the co-owner;

(3) on delivery of the meat or meat food products to the co-owner, the establishment provides to the co-owner notice that the department has not inspected the meat or meat food products in:

(A) a separate written statement that prominently displays the warning; or

(B) a warning statement prominently displayed on a label affixed to the meat or meat food product packaging;

(4) the label affixed to the meat or meat food product clearly and conspicuously states "Not for Sale"; and

(5) the farmer or rancher provides to the co-owner information describing the standards the farmer or rancher followed in maintaining livestock health and preparing the meat and meat food products derived from the livestock.

(d) A person may not sell, donate, or commercially redistribute meat or meat food products produced in accordance with this section. A person who violates this subsection is liable to this state for a civil penalty in the amount of $10,000 for each violation. The attorney general may bring an action to recover a civil penalty authorized under this subsection and may recover reasonable expenses incurred in obtaining the civil penalty, including court costs, attorney's fees, investigative costs, witness fees, and deposition expenses.

(e) A farmer or rancher may not publish a statement that implies department approval or endorsement regarding meat or meat food products delivered pursuant to an animal share.

(f) The adulteration and misbranding provisions of this chapter, other than the requirement of an inspection legend, apply to meat or meat food products prepared by a processing establishment under this section.

(g) This section does not authorize the preparation of meat or meat food products in violation of the Federal Meat Inspection Act (21 U.S.C. Section 601 et seq.).

SECTION 2. Section 433.024(b), Health and Safety Code, is amended to read as follows:

(b) The department shall inspect each slaughtering establishment whose primary business is the selling of livestock to be slaughtered by the purchaser on premises owned or operated by the seller. This subsection does not nullify the provisions in Section 433.006 relating to exemptions or Section 433.0065 relating to an animal share exemption.

SECTION 3. This Act takes effect September 1, 2023.

______________________________ ______________________________

President of the Senate Speaker of the House

I hereby certify that S.B. No. 691 passed the Senate on April 3, 2023, by the following vote: Yeas 31, Nays 0.

______________________________ Secretary of the Senate

I hereby certify that S.B. No. 691 passed the House on May 19, 2023, by the following vote: Yeas 126, Nays 17, two present not voting.

______________________________ Chief Clerk of the House

Approved:

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Date

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Governor