SB823

Regular Session

Relating to labeling and representation of imported shrimp; authorizing an administrative penalty.

CriticalImmediate action required

Medium Cost

Effective:2025-09-01

Enforcing Agencies

Department of State Health Services (DSHS) • Public Health Districts • Counties • Municipalities

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: September 1, 2025. (There is no grace period for inventory sell-through; non-compliant inventory must be cleared or relabeled by this date.)
Agency Rulemaking: The Health and Human Services Commission (HHSC) is required to adopt rules "as soon as practicable" after the effective date.
*Regulatory Warning:* This creates a "gap period" starting September 1 where the statute is enforceable before detailed agency guidance exists. You must adopt a conservative interpretation immediately.

Immediate Action Plan

1. Audit Menus Immediately: Review physical menus, chalkboards, and websites. Remove terms like "Gulf," "Texas," or "Domestic" unless you have an unbroken, documented chain of custody for that specific product.
2. Segregate Inventory: Distributors must physically separate domestic and imported stock to prevent accidental "picking" errors that lead to mislabeling.
3. Flush Inventory: Distributors holding imported shrimp without proper origin labeling must relabel or sell through exempt channels (retail grocery) before September 1, 2025.
4. Update PO Terms: Issue a notice to all suppliers that effective immediately, all shrimp shipments must carry explicit origin documentation.

Operational Changes Required

Contracts

Vendor Agreements: Restaurants must amend supply agreements to require explicit Country of Origin (COOL) declarations on all invoices.
Indemnification: Add clauses requiring distributors to indemnify the restaurant against regulatory penalties resulting from mislabeled product.
Substitution Clauses: Strike "manager's choice" or automatic substitution clauses. Distributors must be contractually prohibited from substituting imported shrimp for domestic orders without prior written consent.

Hiring/Training

Receiving Clerks: Staff must be trained to reject shipments where the box label (Domestic/Gulf) contradicts the Bill of Lading or Invoice (Imported).
Front-of-House: Waitstaff must be retrained on verbal menu descriptions. Verbal misrepresentation of shrimp origin to a customer is a liability event.

Reporting & Record-Keeping

Traceability: Maintain a strict chain of custody. Invoices and Bills of Lading must explicitly state origin.
Affirmative Defense: To utilize the "good faith" defense in Section 436.083(e), you must retain documentation proving you relied on a supplier's label.
Retention: Retain origin records for a minimum of two years to align with standard audit windows.

Fees & Costs

Penalties: Violations trigger administrative penalties against your operating license.
Litigation Risk: DSHS has requested funding for additional attorneys specifically to handle contested enforcement cases, signaling an intent to litigate aggressively.

Strategic Ambiguities & Considerations

"Processed" vs. "Origin": The statute is unclear regarding shrimp harvested internationally but processed (breaded, marinated) in Texas. The Fiscal Note explicitly warns that DSHS expects legal contests here. Until rulemaking clarifies, treat origin based on the raw protein source, not the processing location.
"Clear and Conspicuous": This standard is subjective. A small code on a packing slip is insufficient. Distributors should apply bold, distinct labeling (e.g., "IMPORTED") on physical containers.
Digital Legacy: It is unclear if old social media posts (e.g., a 2023 post claiming "We serve Gulf Shrimp") constitute a current misrepresentation if the supply chain changes. Audit and scrub digital marketing.

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Legislative Timeline

This bill's path through the Texas Legislature

TopicsAgriculture Health Health--general Food Packaging & Labeling Requirements Shrimping Industry Health & Human Services Commission

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

Senate Research Center	S.B. 823
89R1932 SRA-D	By: Middleton
	Water, Agriculture and Rural Affairs
	5/5/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Current Texas law does not require labeling that informs consumers whether shrimp sold in the state are imported from outside Texas, including shrimp caught in Gulf waters beyond the state's jurisdiction. This lack of transparency creates challenges for Texas shrimpers, who compete with cheaper, often lower-quality imported shrimp. S.B. 823, as substituted in committee, narrows its focus solely to shrimp and requires that all shrimp imported from outside Texas carry a clear, conspicuous label disclosing their out-of-state origin. This measure aims to strengthen consumer awareness, support local shrimping industries, and promote fair competition in Texas seafood markets.

As proposed, S.B. 823 amends current law relating to required labeling of meat, poultry, shrimp, and certain related food products.

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the executive commissioner of the Health and Human Services Commission in SECTION 3 of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter C, Chapter 433, Health and Safety Code, by adding Section 433.046, as follows:

Sec. 433.046. LABELING OF MEAT, POULTRY, AND CERTAIN RELATED FOOD PRODUCTS. Prohibits a person, in this state, from selling meat, a meat food product, poultry, or a poultry product unless the food's label includes a clear and conspicuous notice stating whether the food originated in this state.

SECTION 2. Amends Subchapter F, Chapter 436, Health and Safety Code, by adding Section 436.083, as follows:

Sec. 436.083. LABELING OF SHRIMP. Prohibits a person from selling shrimp in this state unless the shrimp's label includes a clear and conspicuous notice stating whether the shrimp originated in this state.

SECTION 3. Requires the executive commissioner of the Health and Human Services Commission, as soon as practicable after the effective date of this Act, to adopt rules necessary to implement Sections 433.046 and 436.083, Health and Safety Code, as added by this Act.

SECTION 4. Effective date: September 1, 2025.

Bill Text(with markup)

S.B. No. 823

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to labeling and representation of imported shrimp;
	authorizing an administrative penalty.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter F, Chapter 436, Health and Safety
	Code, is amended by adding Section 436.083 to read as follows:
	Sec. 436.083. LABELING OF SHRIMP. (a) For purposes of this
	section, 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 7 C.F.R. Section
	60.128, or successor regulations.
	(b) A food service supplier, wholesaler, distributor, or
	wholesale distributor may not sell shrimp in this state unless the
	shrimp's label includes a clear and conspicuous notice stating
	whether the shrimp is imported.
	(c) A restaurant shall not label or represent imported
	shrimp as "Texas shrimp," "American shrimp," "Domestic shrimp," or
	"Gulf shrimp."
	(d) The department, a public health district, a county, or a
	municipality that under Chapter 431 or 437 requires a restaurant,
	food service supplier, wholesaler, distributor, or wholesale
	distributor to hold a license or permit to operate in this state may
	impose an administrative penalty against the license or permit
	holder for a violation of this section or a rule adopted under this
	section.
	(e) It is an affirmative defense to the imposition of an
	administrative penalty under this section that the license or
	permit holder believed in good faith the shrimp was not imported.
	(f) This section does not create a private cause of action
	or change any common law or statutory duty.
	(g) This section 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.
	SECTION 2. As soon as practicable after the effective date
	of this Act, the executive commissioner of the Health and Human
	Services Commission shall adopt rules necessary to implement
	Section 436.083, Health and Safety Code, as added by this Act.
	SECTION 3. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


May 18, 2025

TO:	Honorable Charles Perry, Chair, Senate Committee on Water, Agriculture and Rural Affairs

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB823 by Middleton (Relating to required labeling of meat, poultry, shrimp, and certain related food products.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB823, As Introduced: a negative impact of ($618,209) through the biennium ending August 31, 2027.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

General Revenue-Related Funds, Five- Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026	($273,736)
2027	($344,473)
2028	($344,913)
2029	($345,279)
2030	($345,653)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Change in Number of State Employees from FY 2025
2026	($273,736)	2.0
2027	($344,473)	2.0
2028	($344,913)	2.0
2029	($345,279)	2.0
2030	($345,653)	2.0

Fiscal Analysis

The bill would prohibit the sale of meat, meat food product, poultry, poultry product, or shrimp unless the food's label includes a clear and conspicuous notice stating whether the food originated in this state.

Methodology

According to the Department of State Health Services (DSHS), the agency would expect an increase in the number of contested enforcement cases because the bill is unclear as to how products produced in Texas from source material not produced in Texas should be labeled. Also, the agency claims it is unclear as how meat and poultry products from animals slaughtered in Texas but born or raised outside of Texas should be labeled.

According to DSHS, the agency would need 2.0 full-time equivalent positions to implement the bill including a Program Specialist III (1.0 FTE) to process enforcement cases and an Attorney IV position (1.0 FTE) to represent the agency in enforcement cases. This analysis estimates salaries, benefits, and other related FTE costs to total $273,736 in fiscal year 2026 and $344,473 in fiscal year 2027. The lower cost in fiscal year 2026 is attributable to an assumed start date for the positions later in the fiscal year.

According to the Health and Human Services Commission, adoption of rules required under the bill can be accomplished within existing resources.

Local Government Impact

The fiscal implications of the bill to units of local government cannot be determined at this time.

Source Agencies:

529 Health and Human Services Commission, 537 State Health Services, Department of

LBB Staff:

JMc, FV, ER, APA

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Frequently Asked Questions

Common questions about SB823

What does Texas SB823 do?

SB823 imposes strict origin labeling mandates on the Texas shrimp supply chain, bifurcating liability between distributors (who must label imported product) and restaurants (who must not misrepresent imported product as domestic). Failure to comply constitutes a violation of Health and Safety Code Chapter 436, directly threatening your facility’s health permit and operating license. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: September 1, 2025.

Who authored SB823?

SB823 was authored by Texas Senator Mayes Middleton during the Regular Session.

When was SB823 signed into law?

SB823 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce SB823?

SB823 is enforced by Department of State Health Services (DSHS), Public Health Districts, Counties and Municipalities.

How urgent is compliance with SB823?

The compliance urgency for SB823 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB823?

The cost impact of SB823 is estimated as "medium". This may vary based on industry and implementation requirements.

What topics does SB823 address?

SB823 addresses topics including agriculture, health, health--general, food and packaging & labeling requirements.

Legislative data provided by LegiScanLast updated: November 25, 2025

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