By Serna H.B. No. 2774 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the regulation of a commercial laundry; providing 1-3 penalties. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. DEFINITIONS. In this Act: 1-6 (1) "Board" means the Texas Board of Health. 1-7 (2) "Bureau" means the Bureau of Commercial Laundries. 1-8 (3) "Caustic or toxic chemical" includes chlorine 1-9 bleach, potassium permanganate, caustic soda, hydroxamine sulfate, 1-10 and metabisulfate, and blue dye or alkali in an amount greater than 1-11 the minimum amount the board by rule determines to be excessive. 1-12 (4) "Commercial laundry" means a laundry that uses 1-13 pumice stone or caustic or toxic chemicals to wash, finish, or 1-14 alter the appearance of a garment or fabric for retail sale or 1-15 wholesale distribution by a manufacturer, distributor, or 1-16 wholesaler of apparel. 1-17 (5) "Department" means the Texas Department of Health. 1-18 (6) "Person" means an individual, sole proprietorship, 1-19 association, corporation, business trust, or other private legal 1-20 entity. 1-21 (7) "Pumice stone" means an abrasive that is a gritty 1-22 volcanic dust, very light in weight, and buoyant in liquid. 1-23 SECTION 2. LICENSE REQUIREMENT. A person may not operate a 2-1 commercial laundry that employs three or more individuals unless 2-2 the person holds a license issued under this Act. 2-3 SECTION 3. BUREAU OF COMMERCIAL LAUNDRIES. (a) The Bureau 2-4 of Commercial Laundries is created within the department to 2-5 administer and enforce this Act. 2-6 (b) The bureau may contract with other state agencies for 2-7 services. 2-8 SECTION 4. POWERS AND DUTIES OF BOARD AND BUREAU. (a) The 2-9 board shall: 2-10 (1) adopt rules for the licensing of a person that 2-11 operates a commercial laundry; 2-12 (2) adopt rules for the operation of a commercial 2-13 laundry under this Act; and 2-14 (3) establish application and renewal license fees in 2-15 an amount not to exceed three percent of the annual gross receipts 2-16 of a commercial laundry operated by a license holder under this 2-17 Act, and other fees in amounts that are reasonable and necessary to 2-18 defray the costs of the administration of this Act. 2-19 (b) The bureau shall: 2-20 (1) prescribe application forms for original and 2-21 renewal licenses; and 2-22 (2) take other action as necessary to enforce this 2-23 Act. 2-24 SECTION 5. COMMERCIAL LAUNDRY LICENSE. (a) The bureau 2-25 shall issue a commercial laundry license to an applicant who: 3-1 (1) is at least 18 years of age; 3-2 (2) meets the application requirements prescribed by 3-3 board rule; and 3-4 (3) pays the application and licensing fees. 3-5 (b) A license issued under this Act is valid throughout this 3-6 state. 3-7 (c) A license issued under this Act is not assignable or 3-8 transferable. 3-9 SECTION 6. LICENSE RENEWAL. (a) A license is valid for one 3-10 year and may be renewed on payment of the required renewal fee. 3-11 (b) If a license holder fails to renew the license by the 3-12 required date, the license holder may renew the license on payment 3-13 of the renewal fee and a late fee set by the board. If the license 3-14 is not renewed by the first anniversary of the date on which the 3-15 license expired, the license holder must apply for an original 3-16 license in the manner required by Section 5 of this Act. 3-17 SECTION 7. DENIAL, SUSPENSION, REVOCATION, OR REINSTATEMENT 3-18 OF LICENSE. (a) The bureau may deny, suspend, revoke, or 3-19 reinstate a license. 3-20 (b) The board shall adopt rules establishing the grounds for 3-21 the denial, suspension, revocation, or reinstatement of a license 3-22 and establishing procedures for disciplinary actions. 3-23 (c) Proceedings relating to the suspension or revocation of 3-24 a license issued under this Act are subject to the Administrative 3-25 Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas 4-1 Civil Statutes). 4-2 (d) A person whose license has been revoked may not apply 4-3 for a new license until after the first anniversary of the date of 4-4 the revocation. 4-5 SECTION 8. BOARD RULES. The board shall adopt rules for the 4-6 regulation of a commercial laundry that include: 4-7 (1) a requirement that toxic and caustic chemicals be 4-8 stored in a separate and secured room or facility with limited 4-9 access by an employee of the laundry; 4-10 (2) periodic testing of the discharge from the laundry 4-11 for toxic or caustic chemicals; 4-12 (3) record-keeping requirements for the periodic 4-13 testing for toxic discharge and the availability of those records 4-14 for inspection on the request of an appropriate state, municipal, 4-15 county, or municipal utility district inspector; 4-16 (4) the posting of warnings, in each language read by 4-17 five percent or more of all employees that work in a facility, in 4-18 an area where toxic or caustic chemicals are used; 4-19 (5) a requirement of a periodic health examination, at 4-20 least semiannually, for an employee who works with or is exposed to 4-21 toxic or caustic chemicals that includes testing of an employee's 4-22 eyes, respiratory system, and blood for exposure to toxic or 4-23 caustic chemicals; 4-24 (6) a requirement that a building used by a commercial 4-25 laundry be properly ventilated and partitioned from ceiling to 5-1 floor to separate from each other the areas used for: 5-2 (A) the storage of toxic and caustic chemicals; 5-3 (B) the washing of garments; 5-4 (C) the pressing, folding, and packaging of 5-5 garments; and 5-6 (D) other purposes; 5-7 (7) the clear indication and marking of dangerous 5-8 areas around hazardous machinery and the limitation of access in 5-9 those areas to an operator and supervisor; 5-10 (8) the limitation of splashing from machinery and wet 5-11 areas on the floor of a laundry; 5-12 (9) the provision by a laundry of: 5-13 (A) showers for employees on the premises of the 5-14 laundry; 5-15 (B) first aid kits that are openly accessible to 5-16 the employees of a laundry; 5-17 (C) protective gear for employees who work with 5-18 or have access to toxic or caustic chemicals; and 5-19 (D) periodic educational and training programs 5-20 concerning accident prevention for all employees; 5-21 (10) the posting of equipment safety ratings; 5-22 (11) the prohibition of tampering with the safety 5-23 features of machinery without the written authority of the bureau; 5-24 (12) the prohibition of a license holder under this 5-25 Act from employing a person 15 years of age or younger in a 6-1 commercial laundry; 6-2 (13) the prohibition of the discharge of pumice stone 6-3 or its residue that has been contaminated by chlorine bleach of 15 6-4 percent or greater, potassium permanganate, caustic soda, 6-5 hydroxamine sulfate, metabisulfate, alkali, or color dye into a 6-6 municipal sewer drain system; 6-7 (14) a requirement that drain flows and drain channels 6-8 be covered; 6-9 (15) the reporting by a laundry to the bureau of all 6-10 injuries and accidents suffered by a laundry employee; 6-11 (16) the development of a plan for fire prevention, 6-12 prevention of accidental chemical spillage, and evacuation of 6-13 employees; 6-14 (17) the filtration of a discharge from a facility to 6-15 limit the discharge of a toxic or caustic chemical, pollutant, 6-16 water contaminant, or mud; and 6-17 (18) the access a bureau inspector may have to records 6-18 that are required to be kept under this Act and by board rule. 6-19 SECTION 9. CONFLICT WITH FEDERAL LAW. A provision of this 6-20 Act or rule adopted by the board under this Act may not overrule or 6-21 supersede any federal law or regulation that regulates the 6-22 operation of a commercial laundry or the use of a caustic or toxic 6-23 chemical by a commercial laundry. 6-24 SECTION 10. HEALTH INSURANCE REQUIRED. The holder of a 6-25 commercial laundry license under this Act must provide a group 7-1 health insurance policy that is available to each employee of a 7-2 laundry. 7-3 SECTION 11. ADMINISTRATIVE PENALTY. (a) If the bureau 7-4 determines that a person regulated under this Act has violated a 7-5 safety rule adopted under this Act in a manner that constitutes a 7-6 ground for a disciplinary action under this Act, the bureau may 7-7 assess an administrative penalty against that person as provided by 7-8 this section. 7-9 (b) The bureau may assess the administrative penalty in an 7-10 amount not less than $50 and not more than $5,000. In determining 7-11 the amount of the penalty, the commission shall consider the 7-12 seriousness of the violation. 7-13 (c) If, after examination of a possible violation and the 7-14 facts relating to that possible violation, the bureau determines 7-15 that a violation has occurred, the bureau shall issue a preliminary 7-16 report that states the facts on which the conclusion is based, the 7-17 fact that an administrative penalty is to be imposed, and the 7-18 amount to be assessed. Not later than the 10th day after the date 7-19 on which the bureau issues the preliminary report, the bureau shall 7-20 send a copy of the report to the person charged with the violation, 7-21 together with a statement of the right of the person to a hearing 7-22 relating to the alleged violation and the amount of the penalty. 7-23 (d) Not later than the 20th day after the date on which the 7-24 report is sent, the person charged either may make a written 7-25 request for a hearing or may remit the amount of the administrative 8-1 penalty to the bureau. Failure either to request a hearing or to 8-2 remit the amount of the administrative penalty within the time 8-3 provided by this subsection results in a waiver of a right to a 8-4 hearing under this Act. If the person charged requests a hearing, 8-5 the hearing shall be conducted in the manner provided for a 8-6 contested case hearing under the Administrative Procedure and Texas 8-7 Register Act (Article 6252-13a, Vernon's Texas Civil Statutes). If 8-8 it is determined after a hearing that the person has committed the 8-9 alleged violation, the commission shall give written notice to the 8-10 person of the findings established by the hearing and the amount of 8-11 the penalty and shall enter an order requiring the person to pay 8-12 the penalty. 8-13 (e) Not later than the 30th day after the date on which the 8-14 notice is received, the person charged shall pay the administrative 8-15 penalty in full or, if the person wishes to contest either the 8-16 amount of the penalty or the fact of the violation, forward the 8-17 assessed amount to the bureau for deposit in an escrow account. 8-18 If, after judicial review, it is determined that no violation 8-19 occurred or that the amount of the penalty should be reduced, the 8-20 bureau shall remit the appropriate amount to the person charged 8-21 with the violation not later than the 30th day after the date on 8-22 which the judicial determination becomes final. 8-23 (f) Failure to remit the amount of the administrative 8-24 penalty to the bureau within the time provided by Subsection (e) of 8-25 this section results in a waiver of all legal rights to contest the 9-1 violation or the amount of the penalty. 9-2 SECTION 12. FUNDING. The commercial laundries account is 9-3 created in the general revenue fund. The account consists of all 9-4 money derived from fees, assessments, or charges under this Act. 9-5 The legislature shall appropriate at least half of the money in the 9-6 account to the bureau for the enforcement of this Act. The 9-7 legislature may appropriate more from the account for that purpose, 9-8 but the total appropriation for that purpose may not exceed the 9-9 amount credited to the account in the year for which the 9-10 appropriation is made. At the end of each fiscal biennium, the 9-11 comptroller shall transfer the unobligated and unexpended balance 9-12 of the amount in that account to the general revenue fund. 9-13 SECTION 13. PENALTY. (a) A person commits an offense if 9-14 the person operates a commercial laundry without a license issued 9-15 under this Act. 9-16 (b) An offense under this section is a misdemeanor 9-17 punishable by a fine of not less than $10,000 and not more than 9-18 $5,000,000. 9-19 SECTION 14. EFFECTIVE DATE FOR LICENSE REQUIREMENT. A 9-20 person is not required to obtain a license under this Act until 9-21 January 1, 1996. 9-22 SECTION 15. EFFECTIVE DATE; TRANSITION. (a) This Act takes 9-23 effect September 1, 1995, except that Sections 2 and 13 take effect 9-24 January 1, 1996. 9-25 (b) The board shall adopt rules under this Act not later 10-1 than November 1, 1995. 10-2 SECTION 16. EMERGENCY. The importance of this legislation 10-3 and the crowded condition of the calendars in both houses create an 10-4 emergency and an imperative public necessity that the 10-5 constitutional rule requiring bills to be read on three several 10-6 days in each house be suspended, and this rule is hereby suspended.