LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION March 26, 2023 TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture, & Rural Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB691 by Kolkhorst (Relating to an animal share exemption for certain meat and meat food products; providing a civil penalty.), As Introduced Estimated Two-year Net Impact to General Revenue Related Funds for SB691, As Introduced : a positive impact of $6,525,160 through the biennium ending August 31, 2025. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill. Appropriations: Fiscal Year Appropriation out ofGeneral Revenue Fund1 Appropriation out ofFood & Drug Registration5024 Appropriation out ofFederal Funds555 Appropriation out ofFed Health/ Lab Funding Excess Rev2732024$0$0$0$02025$6,525,160$1,216,162$5,669,730($5,669,730)General Revenue-Related Funds, Five- Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact toGeneral Revenue Related Funds2024$02025$6,525,1602026$6,525,1602027$6,525,1602028$6,525,160All Funds, Five-Year Impact: Fiscal Year Probable Savings/(Cost) fromGeneral Revenue Fund1 Probable Savings/(Cost) fromFood & Drug Registration5024 Probable Savings/(Cost) fromFederal Funds555 Probable Savings/(Cost) fromFed Health/ Lab Funding Excess Rev2732024$0$0$0$02025$6,525,160$1,216,162$5,669,730($5,669,730)2026$6,525,160$1,216,162$5,669,730($5,669,730)2027$6,525,160$1,216,162$5,669,730($5,669,730)2028$6,525,160$1,216,162$5,669,730($5,669,730)Fiscal Year Change in Number of State Employees from FY 202320240.02025(140.0)2026(140.0)2027(140.0)2028(140.0) Fiscal AnalysisThe bill would exclude the requirements of inspection of livestock before slaughter and preparation of meat and meat food products if the slaughtered livestock is under an animal share. The meat and meat food products must be delivered to the establishment preparing products for the farmer or rancher boarding the livestock and delivered to the consumer who owns the animal share.A consumer may not sell, donate, or commercially redistribute meat or meat food products delivered to consumer under the animal share agreement authorized by the bill and can be liable for a $10,000 civil penalty for each violation. The Attorney General may recover reasonable expenses in obtaining the civil penalty.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 88TH LEGISLATIVE REGULAR SESSION
March 26, 2023
TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture, & Rural Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB691 by Kolkhorst (Relating to an animal share exemption for certain meat and meat food products; providing a civil penalty.), As Introduced
TO: Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture, & Rural Affairs
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB691 by Kolkhorst (Relating to an animal share exemption for certain meat and meat food products; providing a civil penalty.), As Introduced
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
SB691 by Kolkhorst (Relating to an animal share exemption for certain meat and meat food products; providing a civil penalty.), As Introduced
SB691 by Kolkhorst (Relating to an animal share exemption for certain meat and meat food products; providing a civil penalty.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SB691, As Introduced : a positive impact of $6,525,160 through the biennium ending August 31, 2025. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Estimated Two-year Net Impact to General Revenue Related Funds for SB691, As Introduced : a positive impact of $6,525,160 through the biennium ending August 31, 2025. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.
Appropriations:
2024 $0 $0 $0 $0
2025 $6,525,160 $1,216,162 $5,669,730 ($5,669,730)
General Revenue-Related Funds, Five- Year Impact:
2024 $0
2025 $6,525,160
2026 $6,525,160
2027 $6,525,160
2028 $6,525,160
All Funds, Five-Year Impact:
2024 $0 $0 $0 $0
2025 $6,525,160 $1,216,162 $5,669,730 ($5,669,730)
2026 $6,525,160 $1,216,162 $5,669,730 ($5,669,730)
2027 $6,525,160 $1,216,162 $5,669,730 ($5,669,730)
2028 $6,525,160 $1,216,162 $5,669,730 ($5,669,730)
2024 0.0
2025 (140.0)
2026 (140.0)
2027 (140.0)
2028 (140.0)
Fiscal Analysis
The bill would exclude the requirements of inspection of livestock before slaughter and preparation of meat and meat food products if the slaughtered livestock is under an animal share. The meat and meat food products must be delivered to the establishment preparing products for the farmer or rancher boarding the livestock and delivered to the consumer who owns the animal share.A consumer may not sell, donate, or commercially redistribute meat or meat food products delivered to consumer under the animal share agreement authorized by the bill and can be liable for a $10,000 civil penalty for each violation. The Attorney General may recover reasonable expenses in obtaining the civil penalty.
A consumer may not sell, donate, or commercially redistribute meat or meat food products delivered to consumer under the animal share agreement authorized by the bill and can be liable for a $10,000 civil penalty for each violation. The Attorney General may recover reasonable expenses in obtaining the civil penalty.
Methodology
According to the Department of State Health Services (DSHS), it is assumed the bill would lead to the United States Department of Agriculture, Food and Safety Inspection Service (FSIS) taking over regulation of all meat and poultry slaughter and processing in the state for products amendable to the Federal Meat Inspection Act and Poultry Products Inspection Act. It is assumed this bill would prevent the state from meeting federal requirements, and the process of withdrawing from the cooperative agreement would take up to one year.Beginning in fiscal year 2025, it is assumed the loss of three federal grants from FSIS would total $5.7 million per year. The state would no longer need to provide matching funds for the grants which would result in cost savings to the state of $6.5 million in General Revenue Funds and $1.2 million in General Revenue-Dedicated Funds per fiscal year. These changes would result in the loss 140.0 FTEs.After the FSIS takeover of all meat and poultry slaughter and processing in the state under products amenable to the Federal Meat Inspection Act and Poultry Products Inspection Act, it is assumed that 10 percent of current inspection program staff at DSHS would be needed to continue the Voluntary Inspection Program required by the Texas Meat and Poultry Inspection Act for exotic animal and domesticated game birds and would be continued to be funded from General Revenue.
Beginning in fiscal year 2025, it is assumed the loss of three federal grants from FSIS would total $5.7 million per year. The state would no longer need to provide matching funds for the grants which would result in cost savings to the state of $6.5 million in General Revenue Funds and $1.2 million in General Revenue-Dedicated Funds per fiscal year. These changes would result in the loss 140.0 FTEs.
After the FSIS takeover of all meat and poultry slaughter and processing in the state under products amenable to the Federal Meat Inspection Act and Poultry Products Inspection Act, it is assumed that 10 percent of current inspection program staff at DSHS would be needed to continue the Voluntary Inspection Program required by the Texas Meat and Poultry Inspection Act for exotic animal and domesticated game birds and would be continued to be funded from General Revenue.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 537 State Health Services, Department of
537 State Health Services, Department of
LBB Staff: b > td > JMc, SZ, ER, APA, NV
JMc, SZ, ER, APA, NV