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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