BILL ANALYSIS

C.S.H.B. 1958

By: Lopez, Janie

Trade, Workforce & Economic Development

Committee Report (Substituted)

BACKGROUND AND PURPOSE

The bill author has informed the committee that local shrimpers are finding it difficult to sell their catch because many restaurants and buyers opt for cheaper foreign shrimp instead of locally sourced, healthier options. C.S.H.B. 1958 seeks to help protect the Texas shrimping industry from the challenges posed by competition with imported alternatives by prohibiting restaurants from labeling or representing imported shrimp using certain phrases characterizing the shrimp as being from Texas or the United States.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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.

ANALYSIS

C.S.H.B. 1958 amends the Health and Safety Code to prohibit a restaurant from labeling or representing imported shrimp as "Texas shrimp," "American shrimp," "Domestic shrimp," or "Gulf shrimp" and from labeling or representing farm-raised shrimp as "wild-caught shrimp." For purposes of the bill's provisions, a shrimp is considered to be imported if the shrimp does not satisfy the United States country of origin requirements for wild or farm-raised shellfish established by applicable federal regulations.

C.S.H.B. 1958 requires the Department of State Health Services (DSHS), a public health district, a county, or a municipality that, under the Texas Food, Drug, and Cosmetic Act or statutory provisions regulating food service establishments and certain other food-related businesses, requires a license or permit for operation of a restaurant in Texas to impose an administrative penalty against the restaurant for a violation of the bill's provisions or a rule adopted under those provisions. The bill establishes that it is an affirmative defense to the imposition of such an administrative penalty that the restaurant believed in good faith the shrimp was not imported or farm raised. The bill expressly does not create a private cause of action or change any common law or statutory duty.

C.S.H.B. 1958 does not apply to foods served or prepared in similar retail food establishments, such as grocery stores or other food enterprises located within grocery stores, or properly labeled shrimp packaged by itself or as an ingredient in another packaged food product that is sold packaged. The bill establishes that a restaurant is not required to comply with the bill's provisions before March 1, 2026.

EFFECTIVE DATE

September 1, 2025.

COMPARISON OF INTRODUCED AND SUBSTITUTE

While C.S.H.B. 1958 may differ from the introduced in minor or nonsubstantive ways, the following summarizes the substantial differences between the introduced and committee substitute versions of the bill.

Whereas the introduced required a food service establishment serving shrimp imported from outside of Texas to provide to customers of the establishment notice of the shrimp's importation in a specified manner, the substitute prohibits a restaurant from labeling or representing imported shrimp as "Texas shrimp," "American shrimp," "Domestic shrimp," or "Gulf shrimp" and from labeling or representing farm-raised shrimp as "wild-caught shrimp." However, the substitute retains the provision from the introduced establishing that compliance is not required before March 1, 2026.

Whereas the introduced established that a shrimp caught in the Gulf of Mexico is considered to be imported from outside of Texas if the shrimp is caught outside of the state-owned submerged lands described by Natural Resources Code provisions relating to the gulfward boundary of Texas, the substitute establishes that a shrimp is considered to be imported if the shrimp does not satisfy the United States country of origin requirements for wild or farm-raised shellfish established by applicable federal regulations.

The substitute includes provisions absent from the introduced that do the following:

· require DSHS, a public health district, a county, or a municipality that under certain state law requires a license or permit for the operation of a restaurant in Texas to impose an administrative penalty against the restaurant for a violation of the bill's provisions or a rule adopted under those provisions;

· establish that it is an affirmative defense to the imposition of such an administrative penalty that the restaurant believed in good faith the shrimp was not imported or farm raised;

· establish that the bill's provisions do not create a private cause of action or change any common law or statutory duty; and

· except from the bill's provisions foods served or prepared in similar retail food establishments, such as grocery stores or other food enterprises located within grocery stores, or properly labeled shrimp packaged by itself or as an ingredient in another packaged food product that is sold packaged.

The substitute omits a requirement from the introduced for the executive commissioner of the Health and Human Services Commission to adopt rules necessary to implement the bill's provisions.