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Senate finance hears oyster-industry incentives: credits for Texas farmed oysters and shell recycling
Summary
Two companion oyster-industry bills — one to encourage restaurants to buy Texas-farmed oysters and one to reward restaurants for participating in oyster-shell recycling — were adopted as committee substitutes and reported favorably by the Senate Finance Committee.
Two related bills aimed at supporting oyster mariculture and reef restoration were presented to the Senate Finance Committee: House Bill 3486 would incentivize restaurants to purchase Texas farm-raised oysters via a tax deduction; House Bill 3487 would provide a deduction tied to participation in qualified oyster-shell recycling programs.
Sponsor remarks described HB 3486 as creating a sales-and-use tax incentive by allowing eligible restaurants to deduct a specified amount from taxable sales for each unit of Texas farm-raised oysters purchased. The sponsor said a committee substitute changes the credit from a reduction of payment to a reduction in taxable sales and extended reporting windows to quarter, month, or year per the comptroller’s requests.
Witnesses from the oyster industry and restaurant trade testified in support. Bradley Lomax, owner of Water Street Oyster Bar and a permitted oyster farmer, told the committee he operates both a restaurant and an oyster farm and said oyster mariculture can help restore reefs and build a sustainable industry. "This is the first new fishery in Texas in over a hundred years," Lomax said, and testified about lost natural reefs and the role of mariculture. Carol Hunsberger, owner of Quality Seafood, and Madison Gessner of the Texas Restaurant Association’s Greater Austin area also supported HB 3486, noting the potential benefit to small restaurant businesses.
HB 3487, the oyster-shell recycling incentive, would permit restaurants participating in a qualified recycling program to deduct taxable sales for a measured amount of recycled shell. The Galveston Bay Foundation’s Jacob Hupp described the foundation’s shell-recycling work and said his group has recycled about 2,000 tons from roughly 40 restaurant partners; he said the incentive would encourage additional restaurant participation.
Committee substitutes for both bills were adopted and both measures were reported favorably to the full Senate. The committee vote on HB 3486’s committee substitute was recorded as 8 ayes, 1 nay; HB 3487 was reported with 9 ayes, 0 nays. Sponsors and witnesses emphasized these are voluntary incentives that require verification by the comptroller and coordination with Texas Parks and Wildlife for program standards.
