By:  Armbrister                                        S.B. No. 565
       73R931 LGF-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the licensure of food manufacturers and wholesale food
    1-3  distributors.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter J, Chapter 431, Health and Safety
    1-6  Code, is amended to read as follows:
    1-7        SUBCHAPTER J.  FOOD MANUFACTURERS AND FOOD WHOLESALERS
    1-8        Sec. 431.221.  DEFINITIONS <APPLICABILITY TO CERTAIN
    1-9  PERSONS>.  <(a)>  In this subchapter:
   1-10              (1)  "Place of business" means each location where a
   1-11  person manufactures food or where food for wholesale is
   1-12  distributed.
   1-13              (2)  "Food manufacturer" means a person who combines,
   1-14  purifies, processes, or packages food for sale through a wholesale
   1-15  outlet.  The term also includes a retail outlet that packages or
   1-16  labels food before sale and a person that represents itself as
   1-17  responsible for the purity and proper labeling of an article of
   1-18  food by labeling the food with the person's name and address.
   1-19              (3)  "Food wholesaler" means a person who distributes
   1-20  food for resale, either through a retail outlet owned by that
   1-21  person or through sales to another person.
   1-22              (4)  "Manufacture" <chapter, "manufacture"> means the
   1-23  process of combining or purifying food and packaging food for sale
   1-24  to a consumer at wholesale or retail.
    2-1        Sec. 431.2211.  APPLICATION OF SUBCHAPTER.  <(b)  Any person,
    2-2  firm, or corporation that represents itself as responsible for the
    2-3  purity and the proper labeling of any article of food by placing or
    2-4  having placed its name and address on the label of any food shall
    2-5  be deemed a manufacturer and shall be included within the meaning
    2-6  of this section.>
    2-7        <(c)>  This subchapter does not apply to a person, firm, or
    2-8  corporation that harvests, packages, washes, or ships raw fruits or
    2-9  vegetables.
   2-10        Sec. 431.222.  LICENSE <REGISTRATION> REQUIRED; LICENSING
   2-11  FEES.  (a)  A food manufacturer <of food> in this state must apply
   2-12  for and obtain from <shall register annually with> the department
   2-13  each year a license for each place of business <establishment> that
   2-14  the manufacturer operates in this state.  The food manufacturer
   2-15  must <and> pay a licensing fee for each establishment.
   2-16        (b)  A food wholesaler in this state must apply for and
   2-17  obtain from the department each year a license for each place of
   2-18  business that the wholesaler operates in this state.  The food
   2-19  wholesaler must pay a licensing fee for each place of business <The
   2-20  registration statement must be signed and verified and filed on a
   2-21  form furnished by the department>.
   2-22        (c)  For the purposes of collecting licensing fees under this
   2-23  section, the department shall require a food manufacturer that
   2-24  distributes only food manufactured by that person to obtain only a
   2-25  license as a food manufacturer.  A person that does not manufacture
   2-26  food and serves only as a wholesale distributor must obtain only a
   2-27  wholesale distributor's license.  A person that distributes both
    3-1  its own manufactured food and food it does not manufacture must
    3-2  obtain both a food manufacturer's license and a wholesale
    3-3  distributor's license.
    3-4        Sec. 431.223.  CONTENTS OF LICENSE APPLICATION <REGISTRATION
    3-5  STATEMENT>.  (a)  The person applying for a license under this
    3-6  subchapter must provide at a minimum, the following information in
    3-7  a license application <registration statement must contain>:
    3-8              (1)  the name under which the food manufacturer or
    3-9  wholesale distributor conducts business <is conducted>;
   3-10              (2)  the address of each place of business in this
   3-11  state that is licensed <registered>;
   3-12              (3)  if the food manufacturer or wholesale distributor
   3-13  is an individual, a partnership, or an association, the name or
   3-14  names of:
   3-15                    (A)  the proprietor, if the business is a sole
   3-16  proprietorship;
   3-17                    (B)  all partners, if the business is a
   3-18  partnership; or
   3-19                    (C)  all principals, if the business is an
   3-20  association;
   3-21              (4)  if the food manufacturer or wholesale distributor
   3-22  is a corporation, the date and place of incorporation and the name
   3-23  and address of its registered agent in this state<, if the business
   3-24  is a corporation>; <and>
   3-25              (5)  the names and residences of the individuals in an
   3-26  administrative capacity, showing:
   3-27                    (A)  the managing proprietor, if the business is
    4-1  a sole proprietorship;
    4-2                    (B)  the managing partner, if the business is a
    4-3  partnership;
    4-4                    (C)  the officers and directors, if the business
    4-5  is a corporation; or
    4-6                    (D)  the persons in a managerial capacity, if the
    4-7  business is an association; and
    4-8              (6)  the residence address of a person in charge of
    4-9  each place of business.
   4-10        (b)  The license application must be signed, verified, and
   4-11  filed on a form furnished by the department according to the rules
   4-12  adopted by the board.
   4-13        Sec. 431.224.  Fees.  (a)  The board shall collect fees for:
   4-14              (1)  a license <registration> that is filed<,> or
   4-15  renewed<, or amended>; <and>
   4-16              (2)  a license that is amended, including a
   4-17  notification of a change in the location of a licensed place of
   4-18  business required under Section 431.2251; and
   4-19              (3)  an inspection performed to enforce this subchapter
   4-20  and rules adopted under this subchapter.
   4-21        (b)  The board may charge annual fees.
   4-22        (c)  The board by rule shall set the fees in amounts that
   4-23  allow the department to recover at least 50 percent of the annual
   4-24  expenditures of state funds by the department in:
   4-25              (1)  reviewing and acting on a license <registration>;
   4-26              (2)  amending and renewing a license <registration>;
   4-27              (3)  inspecting a licensed <registered> facility; and
    5-1              (4)  implementing and enforcing this subchapter,
    5-2  including a rule or order adopted or a license <registration>
    5-3  issued under this subchapter.
    5-4        (d)  The department shall use not less than one-half of
    5-5  license <registration> fees collected for inspecting a licensed
    5-6  place of business <registered facility> or enforcing this
    5-7  subchapter, and the remainder for the administration of this
    5-8  subchapter.
    5-9        (e)  All license <registration> fees received by the
   5-10  department under this subchapter shall be deposited in the state
   5-11  treasury to the credit of the food and drug license <registration>
   5-12  fee fund.
   5-13        Sec. 431.225.  Expiration Date.  (a)  The board by rule may
   5-14  provide that licenses <registrations> expire on different dates
   5-15  during the year.
   5-16        (b)  For the year in which the license <registration>
   5-17  expiration date is changed, license <registration> fees payable on
   5-18  or before September 1 shall be prorated so that each license holder
   5-19  <registrant> pays only that portion of the license <registration>
   5-20  fee allocable to the number of months during which the license
   5-21  <registration> is valid.  On renewal of the license <registration>
   5-22  on the new expiration date, the total license <registration>
   5-23  renewal fee is payable.
   5-24        Sec. 431.2251.  CHANGE IN LOCATION OF PLACE OF BUSINESS.
   5-25  Not later than the 31st day before the date of the change, the
   5-26  license holder shall notify in writing the commissioner or the
   5-27  commissioner's designee of the license holder's intent to change
    6-1  the location of a licensed place of business.  The notice shall
    6-2  include the address of the new location and the name and residence
    6-3  address of the individual in charge of the place of business.  Not
    6-4  later than the 10th day after the completion of the change of
    6-5  location, the license holder shall forward to the commissioner or
    6-6  the commissioner's designee the name and residence address of the
    6-7  individual in charge of the new place of business.  Notice is
    6-8  considered adequate if the license holder provides the intent and
    6-9  verification notices to the commissioner or the commissioner's
   6-10  designee by certified mail, return receipt requested, mailed to the
   6-11  central office of the department.
   6-12        Sec. 431.226.  REFUSAL TO GRANT LICENSE <REGISTER>;
   6-13  SUSPENSION OR REVOCATION OF LICENSE <REGISTRATION>.  (a)  The
   6-14  commissioner may refuse an application for a license <to register,>
   6-15  or may suspend or revoke a license <registration>.
   6-16        (b)  The board by rule shall establish minimum standards for
   6-17  granting and maintaining a license <registration>.
   6-18        (c)  The refusal or the suspension or revocation of a license
   6-19  <registration> by the commissioner and the appeal from that action
   6-20  are governed by the procedures for a contested case hearing under
   6-21  the Administrative Procedure and Texas Register Act (Article
   6-22  6252-13a, Vernon's Texas Civil Statutes).
   6-23        SECTION 2.  This Act takes effect September 1, 1993.
   6-24        SECTION 3.  The importance of this legislation and the
   6-25  crowded condition of the calendars in both houses create an
   6-26  emergency   and   an   imperative   public   necessity   that   the
   6-27  constitutional rule requiring bills to be read on three several
    7-1  days in each house be suspended, and this rule is hereby suspended.