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.