By: Armbrister S.B. No. 565
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the licensure of food manufacturers and wholesale food
1-2 distributors.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter J, Chapter 431, Health and Safety
1-5 Code, is amended to read as follows:
1-6 SUBCHAPTER J. FOOD MANUFACTURERS AND FOOD WHOLESALERS
1-7 Sec. 431.221. DEFINITIONS <APPLICABILITY TO CERTAIN
1-8 PERSONS>. <(a)> In this subchapter:
1-9 (1) "Place of business" means each location where a
1-10 person manufactures food or where food for wholesale is
1-11 distributed.
1-12 (2) "Food manufacturer" means a person who combines,
1-13 purifies, processes, or packages food for sale through a wholesale
1-14 outlet. The term also includes a retail outlet that packages or
1-15 labels food before sale and a person that represents itself as
1-16 responsible for the purity and proper labeling of an article of
1-17 food by labeling the food with the person's name and address.
1-18 (3) "Food wholesaler" means a person who distributes
1-19 food for resale, either through a retail outlet owned by that
1-20 person or through sales to another person. The term "food
1-21 wholesaler" shall not include a commissary which distributes food
1-22 primarily intended for immediate consumption on the premises of a
1-23 retail outlet under common ownership.
1-24 (4) "Manufacture" <chapter, "manufacture"> means the
2-1 process of combining or purifying food and packaging food for sale
2-2 to a consumer at wholesale or retail.
2-3 Sec. 431.2211. APPLICATION OF SUBCHAPTER. <(b) Any person,
2-4 firm, or corporation that represents itself as responsible for the
2-5 purity and the proper labeling of any article of food by placing or
2-6 having placed its name and address on the label of any food shall
2-7 be deemed a manufacturer and shall be included within the meaning
2-8 of this section.>
2-9 <(c)> This subchapter does not apply to a person, firm, or
2-10 corporation that harvests, packages, washes, or ships raw fruits or
2-11 vegetables.
2-12 Sec. 431.222. LICENSE <REGISTRATION> REQUIRED; LICENSING
2-13 FEES. (a) A food manufacturer <of food> in this state must apply
2-14 for and obtain from <shall register annually with> the department
2-15 each year a license for each place of business <establishment> that
2-16 the manufacturer operates in this state. The food manufacturer
2-17 must <and> pay a licensing fee for each establishment.
2-18 (b) A food wholesaler in this state must apply for and
2-19 obtain from the department each year a license for each place of
2-20 business that the wholesaler operates in this state. The food
2-21 wholesaler must pay a licensing fee for each place of business <The
2-22 registration statement must be signed and verified and filed on a
2-23 form furnished by the department>.
2-24 (c) For the purposes of collecting licensing fees under this
2-25 section, the department shall require a food manufacturer that
2-26 distributes only food manufactured by that firm to obtain only a
2-27 license as a food manufacturer. A person that does not manufacture
3-1 food and serves only as a wholesale distributor must obtain only a
3-2 wholesale distributor's license. A person that distributes both
3-3 its own manufactured food and food it does not manufacture must
3-4 obtain only a food manufacturer's license.
3-5 Sec. 431.223. CONTENTS OF LICENSE APPLICATION <REGISTRATION
3-6 STATEMENT>. (a) The person applying for a license under this
3-7 subchapter must provide, at a minimum, the following information in
3-8 a license application <registration statement must contain>:
3-9 (1) the name under which the food manufacturer or
3-10 wholesale distributor conducts business <is conducted>;
3-11 (2) the address of each place of business in this
3-12 state that is licensed <registered>;
3-13 (3) if the food manufacturer or wholesale distributor
3-14 is an individual, a partnership, or an association, the name or
3-15 names of:
3-16 (A) the proprietor, if the business is a sole
3-17 proprietorship;
3-18 (B) all partners, if the business is a
3-19 partnership; or
3-20 (C) all principals, if the business is an
3-21 association;
3-22 (4) if the food manufacturer or wholesale distributor
3-23 is a corporation, the date and place of incorporation and the name
3-24 and address of its registered agent in this state<, if the business
3-25 is a corporation>; <and>
3-26 (5) the names and residences of the individuals in an
3-27 administrative capacity, showing:
4-1 (A) the managing proprietor, if the business is
4-2 a sole proprietorship;
4-3 (B) the managing partner, if the business is a
4-4 partnership;
4-5 (C) the officers and directors, if the business
4-6 is a corporation; or
4-7 (D) the persons in a managerial capacity, if the
4-8 business is an association; and
4-9 (6) the residence address of a person in charge of
4-10 each place of business.
4-11 (b) The license application must be signed, verified, and
4-12 filed on a form furnished by the department according to the rules
4-13 adopted by the board.
4-14 Sec. 431.224. Fees. (a) The board shall collect fees for:
4-15 (1) a license <registration> that is filed or<,>
4-16 renewed<, or amended>; <and>
4-17 (2) a license that is amended, including a
4-18 notification of a change in the location of a licensed place of
4-19 business required under Section 431.2251; and
4-20 (3) an inspection performed to enforce this subchapter
4-21 and rules adopted under this subchapter.
4-22 (b) The board may charge annual fees.
4-23 (c) The board by rule shall set the fees in amounts that
4-24 allow the department to recover at least 50 percent of the annual
4-25 expenditures of state funds by the department in:
4-26 (1) reviewing and acting on a license <registration>;
4-27 (2) amending and renewing a license <registration>;
5-1 (3) inspecting a licensed <registered> facility; and
5-2 (4) implementing and enforcing this subchapter,
5-3 including a rule or order adopted or a license <registration>
5-4 issued under this subchapter.
5-5 (d) The department shall use not less than one-half of
5-6 license <registration> fees collected for inspecting a licensed
5-7 place of business <registered facility> or enforcing this
5-8 subchapter, and the remainder for the administration of this
5-9 subchapter.
5-10 (e) All license <registration> fees received by the
5-11 department under this subchapter shall be deposited in the state
5-12 treasury to the credit of the food and drug license <registration>
5-13 fee fund.
5-14 Sec. 431.225. Expiration Date. (a) The board by rule may
5-15 provide that licenses <registrations> expire on different dates
5-16 during the year.
5-17 (b) For the year in which the license <registration>
5-18 expiration date is changed, license <registration> fees payable on
5-19 or before September 1 shall be prorated so that each license holder
5-20 <registrant> pays only that portion of the license <registration>
5-21 fee allocable to the number of months during which the license
5-22 <registration> is valid. On renewal of the license <registration>
5-23 on the new expiration date, the total license <registration>
5-24 renewal fee is payable.
5-25 Sec. 431.2251. CHANGE IN LOCATION OF PLACE OF BUSINESS. Not
5-26 later than the 31st day before the date of the change, the license
5-27 holder shall notify in writing the commissioner or the
6-1 commissioner's designee of the license holder's intent to change
6-2 the location of a licensed place of business. The notice shall
6-3 include the address of the new location and the name and residence
6-4 address of the individual in charge of the place of business. Not
6-5 later than the 10th day after the completion of the change of
6-6 location, the license holder shall forward to the commissioner or
6-7 the commissioner's designee the name and residence address of the
6-8 individual in charge of the new place of business. Notice is
6-9 considered adequate if the license holder provides the intent and
6-10 verification notices to the commissioner or the commissioner's
6-11 designee by certified mail, return receipt requested, mailed to the
6-12 central office of the department.
6-13 Sec. 431.226. REFUSAL TO GRANT LICENSE <REGISTER>;
6-14 SUSPENSION OR REVOCATION OF LICENSE <REGISTRATION>. (a) The
6-15 commissioner may refuse an application for a license <to register,>
6-16 or may suspend or revoke a license <registration>.
6-17 (b) The board by rule shall establish minimum standards for
6-18 granting and maintaining a license <registration>.
6-19 (c) The refusal or the suspension or revocation of a license
6-20 <registration> by the commissioner and the appeal from that action
6-21 are governed by the procedures for a contested case hearing under
6-22 the Administrative Procedure and Texas Register Act (Article
6-23 6252-13a, Vernon's Texas Civil Statutes).
6-24 SECTION 2. This Act takes effect September 1, 1993.
6-25 SECTION 3. The importance of this legislation and the
6-26 crowded condition of the calendars in both houses create an
6-27 emergency and an imperative public necessity that the
7-1 constitutional rule requiring bills to be read on three several
7-2 days in each house be suspended, and this rule is hereby suspended.