By Maxey                                         H.B. No. 358

      75R2758 MCK-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the use of certain detained or embargoed articles.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Section 431.021, Health and Safety Code, is

 1-5     amended to read as follows:

 1-6           Sec. 431.021.  PROHIBITED ACTS.  The following acts and the

 1-7     causing of the following acts within this state are unlawful and

 1-8     prohibited:

 1-9                 (a)  the introduction or delivery for introduction into

1-10     commerce of any food, drug, device, or cosmetic that is adulterated

1-11     or misbranded;

1-12                 (b)  the adulteration or misbranding of any food, drug,

1-13     device, or cosmetic in commerce;

1-14                 (c)  the receipt in commerce of any food, drug, device,

1-15     or cosmetic that is adulterated or misbranded, and the delivery or

1-16     proffered delivery thereof for pay or otherwise;

1-17                 (d)  the distribution in commerce of a consumer

1-18     commodity, if such commodity is contained in a package, or if there

1-19     is affixed to that commodity a label that does not conform to the

1-20     provisions of this chapter and of rules adopted under the authority

1-21     of this chapter;  provided, however, that this prohibition shall

1-22     not apply to persons engaged in business as wholesale or retail

1-23     distributors of consumer commodities except to the extent that such

1-24     persons:

 2-1                       (1)  are engaged in the packaging or labeling of

 2-2     such commodities;  or

 2-3                       (2)  prescribe or specify by any means the manner

 2-4     in which such commodities are packaged or labeled;

 2-5                 (e)  the introduction or delivery for introduction into

 2-6     commerce of any article in violation of Section 431.084, 431.114,

 2-7     or 431.115;

 2-8                 (f)  the dissemination of any false advertisement;

 2-9                 (g)  the refusal to permit entry or inspection, or to

2-10     permit the taking of a sample or to permit access to or copying of

2-11     any record as authorized by Sections 431.042-431.044;  or the

2-12     failure to establish or maintain any record or make any report

2-13     required under Section 512(j), (l), or (m) of the federal Act, or

2-14     the refusal to permit access to or verification or copying of any

2-15     such required record;

2-16                 (h)  the manufacture within this state of any food,

2-17     drug, device, or cosmetic that is adulterated or misbranded;

2-18                 (i)  the giving of a guaranty or undertaking referred

2-19     to in Section 431.059, which guaranty or undertaking is false,

2-20     except by a person who relied on a guaranty or undertaking to the

2-21     same effect signed by, and containing the name and address of the

2-22     person residing in this state from whom the person received in good

2-23     faith the food, drug, device, or cosmetic;  or the giving of a

2-24     guaranty or undertaking referred to in Section 431.059, which

2-25     guaranty or undertaking is false;

2-26                 (j)  the use, removal, or disposal of a detained or

2-27     embargoed article in violation of Section 431.048;

 3-1                 (k)  the alteration, mutilation, destruction,

 3-2     obliteration, or removal of the whole or any part of the labeling

 3-3     of, or the doing of any other act with respect to a food, drug,

 3-4     device, or cosmetic, if such act is done while such article is held

 3-5     for sale after shipment in commerce and results in such article

 3-6     being adulterated or misbranded;

 3-7                 (l)(1)  forging, counterfeiting, simulating, or falsely

 3-8     representing, or without proper authority using any mark, stamp,

 3-9     tag, label, or other identification device authorized or required

3-10     by rules adopted under this chapter or the regulations promulgated

3-11     under the provisions of the federal Act;

3-12                       (2)  making, selling, disposing of, or keeping in

3-13     possession, control, or custody, or concealing any punch, die,

3-14     plate, stone, or other thing designed to print, imprint, or

3-15     reproduce the trademark, trade name, or other identifying mark,

3-16     imprint, or device of another or any likeness of any of the

3-17     foregoing on any drug or container or labeling thereof so as to

3-18     render such drug a counterfeit drug;

3-19                       (3)  the doing of any act that causes a drug to

3-20     be a counterfeit drug, or the sale or dispensing, or the holding

3-21     for sale or dispensing, of a counterfeit drug;

3-22                 (m)  the using by any person to the person's own

3-23     advantage, or revealing, other than to the commissioner, an

3-24     authorized agent, a health authority or to the courts when relevant

3-25     in any judicial proceeding under this chapter, of any information

3-26     acquired under the authority of this chapter concerning any method

3-27     or process that as a trade secret is entitled to protection;

 4-1                 (n)  the using, on the labeling of any drug or device

 4-2     or in any advertising relating to such drug or device, of any

 4-3     representation or suggestion that approval of an application with

 4-4     respect to such drug or device is in effect under Section 431.114

 4-5     or Section 505, 515, or 520(g) of the federal Act, as the case may

 4-6     be, or that such drug or device complies with the provisions of

 4-7     such sections;

 4-8                 (o)  the using, in labeling, advertising or other sales

 4-9     promotion of any reference to any report or analysis furnished in

4-10     compliance with Sections 431.042-431.044 or Section 704 of the

4-11     federal Act;

4-12                 (p)  in the case of a prescription drug distributed or

4-13     offered for sale in this state, the failure of the manufacturer,

4-14     packer, or distributor of the drug to maintain for transmittal, or

4-15     to transmit, to any practitioner licensed by applicable law to

4-16     administer such drug who makes written request for information as

4-17     to such drug, true and correct copies of all printed matter that is

4-18     required to be included in any package in which that drug is

4-19     distributed or sold, or such other printed matter as is approved

4-20     under the federal Act.  Nothing in this subsection shall be

4-21     construed to exempt any person from any labeling requirement

4-22     imposed by or under other provisions of this chapter;

4-23                 (q)(1)  placing or causing to be placed on any drug or

4-24     device or container of any drug or device, with intent to defraud,

4-25     the trade name or other identifying mark, or imprint of another or

4-26     any likeness of any of the foregoing;

4-27                       (2)  selling, dispensing, disposing of or causing

 5-1     to be sold, dispensed, or disposed of, or concealing or keeping in

 5-2     possession, control, or custody, with intent to sell, dispense, or

 5-3     dispose of, any drug, device, or any container of any drug or

 5-4     device, with knowledge that the trade name or other identifying

 5-5     mark or imprint of another or any likeness of any of the foregoing

 5-6     has been placed thereon in a manner prohibited by Subdivision (1)

 5-7     of this subsection;  or

 5-8                       (3)  making, selling, disposing of, causing to be

 5-9     made, sold, or disposed of, keeping in possession, control, or

5-10     custody, or concealing with intent to defraud any punch, die,

5-11     plate, stone, or other thing designed to print, imprint, or

5-12     reproduce the trademark, trade name, or other identifying mark,

5-13     imprint, or device of another or any likeness of any of the

5-14     foregoing on any drug or container or labeling of any drug or

5-15     container so as to render such drug a counterfeit drug;

5-16                 (r)  dispensing or causing to be dispensed a different

5-17     drug in place of the drug ordered or prescribed without the express

5-18     permission in each case of the person ordering or prescribing;

5-19                 (s)  the failure to register in accordance with Section

5-20     510 of the federal Act, the failure to provide any information

5-21     required by Section 510(j) or (k) of the federal Act, or the

5-22     failure to provide a notice required by Section 510(j)(2) of the

5-23     federal Act;

5-24                 (t)(1)  the failure or refusal to:

5-25                             (A)  comply with any requirement prescribed

5-26     under Section 518 or 520(g) of the federal Act;  or

5-27                             (B)  furnish any notification or other

 6-1     material or information required by or under Section 519 or 520(g)

 6-2     of the federal Act;

 6-3                       (2)  with respect to any device, the submission

 6-4     of any report that is required by or under this chapter that is

 6-5     false or misleading in any material respect;

 6-6                 (u)  the movement of a device in violation of an order

 6-7     under Section 304(g) of the federal Act or the removal or

 6-8     alteration of any mark or label required by the order to identify

 6-9     the device as detained;

6-10                 (v)  the failure to provide the notice required by

6-11     Section 412(b) or 412(c), the failure to make the reports required

6-12     by Section 412(d)(1)(B), or the failure to meet the requirements

6-13     prescribed under Section 412(d)(2) of the federal Act;

6-14                 (w)  the acceptance by a person of an unused

6-15     prescription or drug, in whole or in part, for the purpose of

6-16     resale, after the prescription or drug has been originally

6-17     dispensed, or sold;

6-18                 (x)  engaging in the wholesale distribution of drugs or

6-19     operating as a distributor or manufacturer of devices in this state

6-20     without filing a licensing statement with the commissioner as

6-21     required by Section 431.202 or having a license as required by

6-22     Section 431.272, as applicable;

6-23                 (y)  engaging in the manufacture of food in this state

6-24     without first registering with the department as required by

6-25     Section 431.222;  or

6-26                 (z)  unless approved by the United States Food and Drug

6-27     Administration pursuant to the federal Act, the sale, delivery,

 7-1     holding, or offering for sale of a self-testing kit designed to

 7-2     indicate whether a person has a human immunodeficiency virus

 7-3     infection, acquired immune deficiency syndrome, or a related

 7-4     disorder or condition.

 7-5           SECTION 2.  Sections 431.048(b) and (c), Health and Safety

 7-6     Code, are amended to read as follows:

 7-7           (b)  The tag or marking on a detained or embargoed article

 7-8     must warn all persons not to use the article, remove the article

 7-9     from the premises, or dispose of the article by sale or otherwise

7-10     until  permission for use, removal, or disposal is given by the

7-11     commissioner, the authorized agent, or a court.

7-12           (c)  A person may not use a detained or embargoed article,

7-13     remove a detained or embargoed article from the premises, or

7-14     dispose of a detained or embargoed article [it] by sale or

7-15     otherwise without permission of the commissioner, the authorized

7-16     agent, or a court.  The commissioner or the authorized agent may

7-17     permit perishable goods to be moved to a place suitable for proper

7-18     storage.

7-19           SECTION 3.  Section 431.049(a), Health and Safety Code, is

7-20     amended to read as follows:

7-21           (a)  If the claimant of the detained or embargoed articles or

7-22     the claimant's agent fails or refuses to transfer the articles to a

7-23     secure place after the tag or other appropriate marking has been

7-24     affixed as provided by Section 431.048, the commissioner or an

7-25     authorized agent may order the transfer of the articles to one or

7-26     more secure storage areas to prevent their unauthorized use,

7-27     removal, or disposal.

 8-1           SECTION 4.  The importance of this legislation and the

 8-2     crowded condition of the calendars in both houses create an

 8-3     emergency and an imperative public necessity that the

 8-4     constitutional rule requiring bills to be read on three several

 8-5     days in each house be suspended, and this rule is hereby suspended,

 8-6     and that this Act take effect and be in force from and after its

 8-7     passage, and it is so enacted.