By Maxey                                         H.B. No. 492

      75R2551 SKB-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to activities covered by the Texas Food, Drug and Cosmetic

 1-3     Act.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 431.002(23), Health and Safety Code, is

 1-6     amended to read as follows:

 1-7                 (23)  "Manufacture" means:

 1-8                       (A)  the process of combining or purifying food

 1-9     or [and] packaging food for sale to a person [consumer] at

1-10     wholesale or retail, and includes repackaging or otherwise changing

1-11     the container, wrapper, or labeling of any food;

1-12                       (B)  the process of preparing, propagating,

1-13     compounding, processing, packaging, holding, repackaging, labeling,

1-14     testing, or quality control of a drug or drug product;

1-15                       (C)  the process of preparing, fabricating,

1-16     assembling, processing, packing, repacking, labeling, or relabeling

1-17     a device; or

1-18                       (D)  the making of any cosmetic product by

1-19     chemical, physical, biological, or other procedures, including

1-20     manipulation, sampling, testing, or control procedures applied to

1-21     the product.

1-22           SECTION 2.  Section 431.021, Health and Safety Code, is

1-23     amended to read as follows:

1-24           Sec. 431.021.  Prohibited Acts.  The following acts and the

 2-1     causing of the following acts within this state are unlawful and

 2-2     prohibited:

 2-3           (a)  the introduction or delivery for introduction into

 2-4     commerce of any food, drug, device, or cosmetic that is adulterated

 2-5     or misbranded;

 2-6           (b)  the adulteration or misbranding of any food, drug,

 2-7     device, or cosmetic in commerce;

 2-8           (c)  the receipt in commerce of any food, drug, device, or

 2-9     cosmetic that is adulterated or misbranded, and the delivery or

2-10     proffered delivery thereof for pay or otherwise;

2-11           (d)  the distribution in commerce of a consumer commodity, if

2-12     such commodity is contained in a package, or if there is affixed to

2-13     that commodity a label that does not conform to the provisions of

2-14     this chapter and of rules adopted under the authority of this

2-15     chapter; provided, however, that this prohibition shall not apply

2-16     to persons engaged in business as wholesale or retail distributors

2-17     of consumer commodities except to the extent that such persons:

2-18                 (1)  are engaged in the packaging or labeling of such

2-19     commodities; or

2-20                 (2)  prescribe or specify by any means the manner in

2-21     which such commodities are packaged or labeled;

2-22           (e)  the introduction or delivery for introduction into

2-23     commerce of any article in violation of Section 431.084, 431.114,

2-24     or 431.115;

2-25           (f)  the dissemination of any false advertisement;

2-26           (g)  the refusal to permit entry or inspection, or to permit

2-27     the taking of a sample or to permit access to or copying of any

 3-1     record as authorized by Sections 431.042-431.044; or the failure to

 3-2     establish or maintain any record or make any report required under

 3-3     Section 512(j), (l), or (m) of the federal Act, or the refusal to

 3-4     permit access to or verification or copying of any such required

 3-5     record;

 3-6           (h)  the manufacture or sale within this state of any food,

 3-7     drug, device, or cosmetic that is adulterated or misbranded;

 3-8           (i)  the giving of a guaranty or undertaking referred to in

 3-9     Section 431.059, which guaranty or undertaking is false, except by

3-10     a person who relied on a guaranty or undertaking to the same effect

3-11     signed by, and containing the name and address of the person

3-12     residing in this state from whom the person received in good faith

3-13     the food, drug, device, or cosmetic; or the giving of a guaranty or

3-14     undertaking referred to in Section 431.059, which guaranty or

3-15     undertaking is false;

3-16           (j)  the removal or disposal of a detained or embargoed

3-17     article in violation of Section 431.048;

3-18           (k)  the alteration, mutilation, destruction, obliteration,

3-19     or removal of the whole or any part of the labeling of, or the

3-20     doing of any other act with respect to a food, drug, device, or

3-21     cosmetic, if such act is done while such article is held for sale

3-22     after shipment in commerce and results in such article being

3-23     adulterated or misbranded;

3-24           (l)(1)  forging, counterfeiting, simulating, or falsely

3-25     representing, or without proper authority using any mark, stamp,

3-26     tag, label, or other identification device authorized or required

3-27     by rules adopted under this chapter or the regulations promulgated

 4-1     under the provisions of the federal Act;

 4-2                 (2)  making, selling, disposing of, or keeping in

 4-3     possession, control, or custody, or concealing any punch, die,

 4-4     plate, stone, or other thing designed to print, imprint, or

 4-5     reproduce the trademark, trade name, or other identifying mark,

 4-6     imprint, or device of another or any likeness of any of the

 4-7     foregoing on any drug or container or labeling thereof so as to

 4-8     render such drug a counterfeit drug;

 4-9                 (3)  the doing of any act that causes a drug to be a

4-10     counterfeit drug, or the sale or dispensing, or the holding for

4-11     sale or dispensing, of a counterfeit drug;

4-12           (m)  the using by any person to the person's own advantage,

4-13     or revealing, other than to the commissioner, an authorized agent,

4-14     a health authority or to the courts when relevant in any judicial

4-15     proceeding under this chapter, of any information acquired under

4-16     the authority of this chapter concerning any method or process that

4-17     as a trade secret is entitled to protection;

4-18           (n)  the using, on the labeling of any drug or device or in

4-19     any advertising relating to such drug or device, of any

4-20     representation or suggestion that approval of an application with

4-21     respect to such drug or device is in effect under Section 431.114

4-22     or Section 505, 515, or 520(g) of the federal Act, as the case may

4-23     be, or that such drug or device complies with the provisions of

4-24     such sections;

4-25           (o)  the using, in labeling, advertising or other sales

4-26     promotion of any reference to any report or analysis furnished in

4-27     compliance with Sections 431.042-431.044 or Section 704 of the

 5-1     federal Act;

 5-2           (p)  in the case of a prescription drug distributed or

 5-3     offered for sale in this state, the failure of the manufacturer,

 5-4     packer, or distributor of the drug to maintain for transmittal, or

 5-5     to transmit, to any practitioner licensed by applicable law to

 5-6     administer such drug who makes written request for information as

 5-7     to such drug, true and correct copies of all printed matter that is

 5-8     required to be included in any package in which that drug is

 5-9     distributed or sold, or such other printed matter as is approved

5-10     under the federal Act.  Nothing in this subsection shall be

5-11     construed to exempt any person from any labeling requirement

5-12     imposed by or under other provisions of this chapter;

5-13           (q)(1)  placing or causing to be placed on any drug or device

5-14     or container of any drug or device, with intent to defraud, the

5-15     trade name or other identifying mark, or imprint of another or any

5-16     likeness of any of the foregoing;

5-17                 (2)  selling, dispensing, disposing of or causing to be

5-18     sold, dispensed, or disposed of, or concealing or keeping in

5-19     possession, control, or custody, with intent to sell, dispense, or

5-20     dispose of, any drug, device, or any container of any drug or

5-21     device, with knowledge that the trade name or other identifying

5-22     mark or imprint of another or any likeness of any of the foregoing

5-23     has been placed thereon in a manner prohibited by Subdivision (1)

5-24     of this subsection; or

5-25                 (3)  making, selling, disposing of, causing to be made,

5-26     sold, or disposed of, keeping in possession, control, or custody,

5-27     or concealing with intent to defraud any punch, die, plate, stone,

 6-1     or other thing designed to print, imprint, or reproduce the

 6-2     trademark, trade name, or other identifying mark, imprint, or

 6-3     device of another or any likeness of any of the foregoing on any

 6-4     drug or container or labeling of any drug or container so as to

 6-5     render such drug a counterfeit drug;

 6-6           (r)  dispensing or causing to be dispensed a different drug

 6-7     in place of the drug ordered or prescribed without the express

 6-8     permission in each case of the person ordering or prescribing;

 6-9           (s)  the failure to register in accordance with Section 510

6-10     of the federal Act, the failure to provide any information required

6-11     by Section 510(j) or (k) of the federal Act, or the failure to

6-12     provide a notice required by Section 510(j)(2) of the federal Act;

6-13           (t)(1)  the failure or refusal to:

6-14                       (A)  comply with any requirement prescribed under

6-15     Section 518 or 520(g) of the federal Act; or

6-16                       (B)  furnish any notification or other material

6-17     or information required by or under Section 519 or 520(g) of the

6-18     federal Act;

6-19                 (2)  with respect to any device, the submission of any

6-20     report that is required by or under this chapter that is false or

6-21     misleading in any material respect;

6-22           (u)  the movement of a device in violation of an order under

6-23     Section 304(g) of the federal Act or the removal or alteration of

6-24     any mark or label required by the order to identify the device as

6-25     detained;

6-26           (v)  the failure to provide the notice required by Section

6-27     412(b) or 412(c), the failure to make the reports required by

 7-1     Section 412(d)(1)(B), or the failure to meet the requirements

 7-2     prescribed under Section 412(d)(2) of the federal Act;

 7-3           (w)  the acceptance by a person of an unused prescription or

 7-4     drug, in whole or in part, for the purpose of resale, after the

 7-5     prescription or drug has been originally dispensed, or sold;

 7-6           (x)  engaging in the wholesale distribution of drugs or

 7-7     operating as a distributor or manufacturer of devices in this state

 7-8     without filing a licensing statement with the commissioner as

 7-9     required by Section 431.202 or having a license as required by

7-10     Section 431.272, as applicable;

7-11           (y)  engaging in the manufacture of food in this state

7-12     without first registering with the department as required by

7-13     Section 431.222; or

7-14           (z)  unless approved by the United States Food and Drug

7-15     Administration pursuant to the federal Act, the sale, delivery,

7-16     holding, or offering for sale of a self-testing kit designed to

7-17     indicate whether a person has a human immunodeficiency virus

7-18     infection, acquired immune deficiency syndrome, or a related

7-19     disorder or condition.

7-20           SECTION 3.  Section 431.042(b), Health and Safety Code, is

7-21     amended to read as follows:

7-22           (b)  The inspection of an establishment, including a factory,

7-23     warehouse, or consulting laboratory, in which a [prescription]

7-24     drug, [or restricted] device, or cosmetic is manufactured,

7-25     processed, packed, or held for introduction into commerce extends

7-26     to any place or thing, including a record, file, paper, process,

7-27     control, or facility, in order to determine whether the drug, [or]

 8-1     device, or cosmetic:

 8-2                 (1)  is adulterated or misbranded;

 8-3                 (2)  may not be manufactured, introduced into commerce,

 8-4     sold or offered for sale under this chapter; or

 8-5                 (3)  is otherwise in violation of this chapter.

 8-6           SECTION 4.  Sections 431.045(a) and (c), Health and Safety

 8-7     Code, are amended to read as follows:

 8-8           (a)  The commissioner or a person designated by the

 8-9     commissioner may issue an emergency order that is restrictive,

8-10     [either] mandatory, or prohibitory in nature [,] in relation to the

8-11     manufacture or sale of a food, drug, device, or cosmetic in the

8-12     department's jurisdiction if the commissioner or the person

8-13     designated by the commissioner determines that:

8-14                 (1)  the manufacture or sale of the food, drug, device,

8-15     or cosmetic creates or poses an immediate and serious threat to

8-16     human life or health; and

8-17                 (2)  other procedures available to the department to

8-18     remedy or prevent the occurrence of the situation will result in

8-19     unreasonable delay.

8-20           (c)  If an emergency order is issued without a hearing, the

8-21     department shall determine a time and place for a hearing at which

8-22     the emergency order is affirmed, modified, or set aside.  The

8-23     hearing shall be held under the contested case provisions of

8-24     Chapter 2001, Government Code, and the board's formal hearing

8-25     [departmental] rules.

8-26           SECTION 5.  This Act takes effect September 1, 1997.

8-27           SECTION 6.  The importance of this legislation and the

 9-1     crowded condition of the calendars in both houses create an

 9-2     emergency and an imperative public necessity that the

 9-3     constitutional rule requiring bills to be read on three several

 9-4     days in each house be suspended, and this rule is hereby suspended.