1-1  By:  Armbrister                                        S.B. No. 565
    1-2        (In the Senate - Filed March 2, 1993; March 3, 1993, read
    1-3  first time and referred to Committee on Health and Human Services;
    1-4  May 7, 1993, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 7, Nays 0; May 7, 1993,
    1-6  sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Zaffirini          x                               
   1-10        Ellis              x                               
   1-11        Madla              x                               
   1-12        Moncrief           x                               
   1-13        Nelson                                         x   
   1-14        Patterson          x                               
   1-15        Shelley                                        x   
   1-16        Truan              x                               
   1-17        Wentworth          x                               
   1-18  COMMITTEE SUBSTITUTE FOR S.B. No. 565                By:  Wentworth
   1-19                         A BILL TO BE ENTITLED
   1-20                                AN ACT
   1-21  relating to the licensure of food manufacturers and wholesale food
   1-22  distributors.
   1-23        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-24        SECTION 1.  Subchapter J, Chapter 431, Health and Safety
   1-25  Code, is amended to read as follows:
   1-26        SUBCHAPTER J.  FOOD MANUFACTURERS AND FOOD WHOLESALERS
   1-27        Sec. 431.221.  DEFINITIONS <APPLICABILITY TO CERTAIN
   1-28  PERSONS>.  <(a)>  In this subchapter:
   1-29              (1)  "Place of business" means each location where a
   1-30  person manufactures food or where food for wholesale is
   1-31  distributed.
   1-32              (2)  "Food manufacturer" means a person who combines,
   1-33  purifies, processes, or packages food for sale through a wholesale
   1-34  outlet.  The term also includes a retail outlet that packages or
   1-35  labels food before sale and a person that represents itself as
   1-36  responsible for the purity and proper labeling of an article of
   1-37  food by labeling the food with the person's name and address.
   1-38              (3)  "Food wholesaler" means a person who distributes
   1-39  food for resale, either through a retail outlet owned by that
   1-40  person or through sales to another person.
   1-41              (4)  "Manufacture" <chapter, "manufacture"> means the
   1-42  process of combining or purifying food and packaging food for sale
   1-43  to a consumer at wholesale or retail.
   1-44        Sec. 431.2211.  APPLICATION OF SUBCHAPTER.  <(b)  Any person,
   1-45  firm, or corporation that represents itself as responsible for the
   1-46  purity and the proper labeling of any article of food by placing or
   1-47  having placed its name and address on the label of any food shall
   1-48  be deemed a manufacturer and shall be included within the meaning
   1-49  of this section.>
   1-50        <(c)>  This subchapter does not apply to a person, firm, or
   1-51  corporation that harvests, packages, washes, or ships raw fruits or
   1-52  vegetables.
   1-53        Sec. 431.222.  LICENSE <REGISTRATION> REQUIRED; LICENSING
   1-54  FEES.  (a)  A food manufacturer <of food> in this state must apply
   1-55  for and obtain from <shall register annually with> the department
   1-56  each year a license for each place of business <establishment> that
   1-57  the manufacturer operates in this state.  The food manufacturer
   1-58  must <and> pay a licensing fee for each establishment.
   1-59        (b)  A food wholesaler in this state must apply for and
   1-60  obtain from the department each year a license for each place of
   1-61  business that the wholesaler operates in this state.  The food
   1-62  wholesaler must pay a licensing fee for each place of business <The
   1-63  registration statement must be signed and verified and filed on a
   1-64  form furnished by the department>.
   1-65        (c)  For the purposes of collecting licensing fees under this
   1-66  section, the department shall require a food manufacturer that
   1-67  distributes only food manufactured by that firm to obtain only a
   1-68  license as a food manufacturer.  A person that does not manufacture
    2-1  food and serves only as a wholesale distributor must obtain only a
    2-2  wholesale distributor's license.  A person that distributes both
    2-3  its own manufactured food and food it does not manufacture must
    2-4  obtain only a food manufacturer's license.
    2-5        Sec. 431.223.  CONTENTS OF LICENSE APPLICATION <REGISTRATION
    2-6  STATEMENT>.  (a)  The person applying for a license under this
    2-7  subchapter must provide, at a minimum, the following information in
    2-8  a license application <registration statement must contain>:
    2-9              (1)  the name under which the food manufacturer or
   2-10  wholesale distributor conducts business <is conducted>;
   2-11              (2)  the address of each place of business in this
   2-12  state that is licensed <registered>;
   2-13              (3)  if the food manufacturer or wholesale distributor
   2-14  is an individual, a partnership, or an association, the name or
   2-15  names of:
   2-16                    (A)  the proprietor, if the business is a sole
   2-17  proprietorship;
   2-18                    (B)  all partners, if the business is a
   2-19  partnership; or
   2-20                    (C)  all principals, if the business is an
   2-21  association;
   2-22              (4)  if the food manufacturer or wholesale distributor
   2-23  is a corporation, the date and place of incorporation and the name
   2-24  and address of its registered agent in this state<, if the business
   2-25  is a corporation>; <and>
   2-26              (5)  the names and residences of the individuals in an
   2-27  administrative capacity, showing:
   2-28                    (A)  the managing proprietor, if the business is
   2-29  a sole proprietorship;
   2-30                    (B)  the managing partner, if the business is a
   2-31  partnership;
   2-32                    (C)  the officers and directors, if the business
   2-33  is a corporation; or
   2-34                    (D)  the persons in a managerial capacity, if the
   2-35  business is an association; and
   2-36              (6)  the residence address of a person in charge of
   2-37  each place of business.
   2-38        (b)  The license application must be signed, verified, and
   2-39  filed on a form furnished by the department according to the rules
   2-40  adopted by the board.
   2-41        Sec. 431.224.  Fees.  (a)  The board shall collect fees for:
   2-42              (1)  a license <registration> that is filed or<,>
   2-43  renewed<, or amended>; <and>
   2-44              (2)  a license that is amended, including a
   2-45  notification of a change in the location of a licensed place of
   2-46  business required under Section 431.2251; and
   2-47              (3)  an inspection performed to enforce this subchapter
   2-48  and rules adopted under this subchapter.
   2-49        (b)  The board may charge annual fees.
   2-50        (c)  The board by rule shall set the fees in amounts that
   2-51  allow the department to recover at least 50 percent of the annual
   2-52  expenditures of state funds by the department in:
   2-53              (1)  reviewing and acting on a license <registration>;
   2-54              (2)  amending and renewing a license <registration>;
   2-55              (3)  inspecting a licensed <registered> facility; and
   2-56              (4)  implementing and enforcing this subchapter,
   2-57  including a rule or order adopted or a license <registration>
   2-58  issued under this subchapter.
   2-59        (d)  The department shall use not less than one-half of
   2-60  license <registration> fees collected for inspecting a licensed
   2-61  place of business <registered facility> or enforcing this
   2-62  subchapter, and the remainder for the administration of this
   2-63  subchapter.
   2-64        (e)  All license <registration> fees received by the
   2-65  department under this subchapter shall be deposited in the state
   2-66  treasury to the credit of the food and drug license <registration>
   2-67  fee fund.
   2-68        Sec. 431.225.  Expiration Date.  (a)  The board by rule may
   2-69  provide that licenses <registrations> expire on different dates
   2-70  during the year.
    3-1        (b)  For the year in which the license <registration>
    3-2  expiration date is changed, license <registration> fees payable on
    3-3  or before September 1 shall be prorated so that each license holder
    3-4  <registrant> pays only that portion of the license <registration>
    3-5  fee allocable to the number of months during which the license
    3-6  <registration> is valid.  On renewal of the license <registration>
    3-7  on the new expiration date, the total license <registration>
    3-8  renewal fee is payable.
    3-9        Sec. 431.2251.  CHANGE IN LOCATION OF PLACE OF BUSINESS.  Not
   3-10  later than the 31st day before the date of the change, the license
   3-11  holder shall notify in writing the commissioner or the
   3-12  commissioner's designee of the license holder's intent to change
   3-13  the location of a licensed place of business.  The notice shall
   3-14  include the address of the new location and the name and residence
   3-15  address of the individual in charge of the place of business.  Not
   3-16  later than the 10th day after the completion of the change of
   3-17  location, the license holder shall forward to the commissioner or
   3-18  the commissioner's designee the name and residence address of the
   3-19  individual in charge of the new place of business.  Notice is
   3-20  considered adequate if the license holder provides the intent and
   3-21  verification notices to the commissioner or the commissioner's
   3-22  designee by certified mail, return receipt requested, mailed to the
   3-23  central office of the department.
   3-24        Sec. 431.226.  REFUSAL TO GRANT LICENSE <REGISTER>;
   3-25  SUSPENSION OR REVOCATION OF LICENSE <REGISTRATION>.  (a)  The
   3-26  commissioner may refuse an application for a license <to register,>
   3-27  or may suspend or revoke a license <registration>.
   3-28        (b)  The board by rule shall establish minimum standards for
   3-29  granting and maintaining a license <registration>.
   3-30        (c)  The refusal or the suspension or revocation of a license
   3-31  <registration> by the commissioner and the appeal from that action
   3-32  are governed by the procedures for a contested case hearing under
   3-33  the Administrative Procedure and Texas Register Act (Article
   3-34  6252-13a, Vernon's Texas Civil Statutes).
   3-35        SECTION 2.  This Act takes effect September 1, 1993.
   3-36        SECTION 3.  The importance of this legislation and the
   3-37  crowded condition of the calendars in both houses create an
   3-38  emergency and an imperative public necessity that the
   3-39  constitutional rule requiring bills to be read on three several
   3-40  days in each house be suspended, and this rule is hereby suspended.
   3-41                               * * * * *
   3-42                                                         Austin,
   3-43  Texas
   3-44                                                         May 7, 1993
   3-45  Hon. Bob Bullock
   3-46  President of the Senate
   3-47  Sir:
   3-48  We, your Committee on Health and Human Services to which was
   3-49  referred S.B. No. 565, have had the same under consideration, and I
   3-50  am instructed to report it back to the Senate with the
   3-51  recommendation that it do not pass, but that the Committee
   3-52  Substitute adopted in lieu thereof do pass and be printed.
   3-53                                                         Moncrief,
   3-54  Acting Chair
   3-55                               * * * * *
   3-56                               WITNESSES
   3-57                                                  FOR   AGAINST  ON
   3-58  ___________________________________________________________________
   3-59  Name:  Steve McAndrew                                          x
   3-60  Representing:  TDH
   3-61  City:  Austin
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