88R6867 MPF-F By: Kolkhorst S.B. No. 691 A BILL TO BE ENTITLED 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 livestock created by a contract between a consumer and a farmer or rancher who owns the livestock. (b) An animal share executed by a consumer and a farmer or rancher under this section must include: (1) a bill of sale the farmer or rancher provides to the consumer conveying to the consumer 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 consumer; and (3) a provision entitling the consumer 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 consumer who owns the animal share; (3) on delivery of the meat or meat food products to the consumer, the establishment provides to the consumer 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; and (4) the farmer or rancher provides to the consumer 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 consumer may not sell, donate, or commercially redistribute meat or meat food products delivered to the consumer 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. 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.