LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION May 11, 2021 TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture & Rural Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1958 by Gonzlez, Mary (Relating to the regulation of livestock export-import processing facilities; creating a criminal offense.), As Engrossed No significant fiscal implication to the State is anticipated. The bill would require public and private livestock export-import processing facilities with the capacity to receive and hold livestock for transportation in international trade to notify the Animal Health Commission (TAHC) within 24 hours if an animal is refused export.The bill creates a Class C misdemeanor offense if a person knowingly moves an animal in violation of the adopted rules under the provisions of the bill. This analysis assumes the provisions of the bill addressing sanctions for criminal offenses would not result in a significant impact on state correctional agencies.Based on information provided by the TAHC, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished utilizing existing resources. According to the Texas Department of Agriculture (TDA), additional costs associated with feeding and caring for rejected animals may be incurred and shipments may delayed if a state-run facility is quarantined after a sick animal is held. This analysis assumes these costs could be covered with existing resources. TDA also anticipates revenue losses from quarantine periods after sick animals are identified. This analysis assumes that fees would be adjusted as necessary to offset any revenue losses due to the Livestock Export Pen program being required to cover the cost of its operations with fee generated revenues.The bill would take effect upon receiving a two-thirds majority vote in both houses; otherwise, the bill would take effect September 1, 2021. Local Government ImpactNo significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 551 Department of Agriculture, 554 Animal Health Commission LBB Staff: b > td > JMc, AJL, MW, DA LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION May 11, 2021 TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture & Rural Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1958 by Gonzlez, Mary (Relating to the regulation of livestock export-import processing facilities; creating a criminal offense.), As Engrossed TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture & Rural Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB1958 by Gonzlez, Mary (Relating to the regulation of livestock export-import processing facilities; creating a criminal offense.), As Engrossed Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture & Rural Affairs Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture & Rural Affairs Jerry McGinty, Director, Legislative Budget Board Jerry McGinty, Director, Legislative Budget Board HB1958 by Gonzlez, Mary (Relating to the regulation of livestock export-import processing facilities; creating a criminal offense.), As Engrossed HB1958 by Gonzlez, Mary (Relating to the regulation of livestock export-import processing facilities; creating a criminal offense.), As Engrossed No significant fiscal implication to the State is anticipated. No significant fiscal implication to the State is anticipated. The bill would require public and private livestock export-import processing facilities with the capacity to receive and hold livestock for transportation in international trade to notify the Animal Health Commission (TAHC) within 24 hours if an animal is refused export.The bill creates a Class C misdemeanor offense if a person knowingly moves an animal in violation of the adopted rules under the provisions of the bill. This analysis assumes the provisions of the bill addressing sanctions for criminal offenses would not result in a significant impact on state correctional agencies.Based on information provided by the TAHC, it is assumed that duties and responsibilities associated with implementing the provisions of the bill could be accomplished utilizing existing resources. According to the Texas Department of Agriculture (TDA), additional costs associated with feeding and caring for rejected animals may be incurred and shipments may delayed if a state-run facility is quarantined after a sick animal is held. This analysis assumes these costs could be covered with existing resources. TDA also anticipates revenue losses from quarantine periods after sick animals are identified. This analysis assumes that fees would be adjusted as necessary to offset any revenue losses due to the Livestock Export Pen program being required to cover the cost of its operations with fee generated revenues.The bill would take effect upon receiving a two-thirds majority vote in both houses; otherwise, the bill would take effect September 1, 2021. According to the Texas Department of Agriculture (TDA), additional costs associated with feeding and caring for rejected animals may be incurred and shipments may delayed if a state-run facility is quarantined after a sick animal is held. This analysis assumes these costs could be covered with existing resources. TDA also anticipates revenue losses from quarantine periods after sick animals are identified. This analysis assumes that fees would be adjusted as necessary to offset any revenue losses due to the Livestock Export Pen program being required to cover the cost of its operations with fee generated revenues. The bill would take effect upon receiving a two-thirds majority vote in both houses; otherwise, the bill would take effect September 1, 2021. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: b > td > 551 Department of Agriculture, 554 Animal Health Commission 551 Department of Agriculture, 554 Animal Health Commission LBB Staff: b > td > JMc, AJL, MW, DA JMc, AJL, MW, DA