AN ACT

 1-1     relating to regulation of new or renovated bedding; providing

 1-2     penalties.

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

 1-4           SECTION 1.  Section 345.001, Health and Safety Code, is

 1-5     amended by amending Subdivisions (7), (8), (9), and (10) and adding

 1-6     Subdivision (11) to read as follows:

 1-7                 (7)  "Recycled material" means material that:

 1-8                       (A)  is composed of recyclable material or that

 1-9     is derived from postconsumer waste or industrial waste; and

1-10                       (B)  may be used in place of raw or virgin

1-11     filling material in manufacturing, repairing, or renovating

1-12     bedding.

1-13                 (8)  "Renovate" means to restore to a former condition

1-14     or to place in a good state of repair.

1-15                 (9) [(8)]  "Secondhand" means previous use in any

1-16     manner.

1-17                 (10) [(9)]  "Sell" includes offering or exposing for

1-18     sale, including in a sale, bartering, trading, delivering,

1-19     consigning, leasing, possessing with intent to sell, or disposing

1-20     of in any commercial manner.

1-21                 (11) [(10)]  "Wholesaler" means a person located

1-22     outside this state who on his own account sells, distributes, or

1-23     jobs into this state to another for the purpose of resale bedding

 2-1     or filling material to be used in bedding.  The term does not

 2-2     include an affiliate or subsidiary if the ownership and the name of

 2-3     the affiliate or subsidiary are the same as the manufacturer, and

 2-4     the affiliate or subsidiary is the exclusive sales outlet for the

 2-5     manufacturer.

 2-6           SECTION 2.  Section 345.003, Health and Safety Code, is

 2-7     amended to read as follows:

 2-8           Sec. 345.003.  PAYMENT TO DEPARTMENT.  Money [from the sale

 2-9     of stamps, and other money] collected in the administration of this

2-10     chapter[,] is payable to the department.

2-11           SECTION 3.  Subchapter A, Chapter 345, Health and Safety

2-12     Code, is amended by adding Sections 345.0055 and 345.007 to read as

2-13     follows:

2-14           Sec. 345.0055.  MATERIAL USED IN BEDDING.  (a)  The

2-15     department may adopt rules relating to material used in new or

2-16     renovated bedding, including rules:

2-17                 (1)  requiring the use of burn resistant material; and

2-18                 (2)  prohibiting or restricting the use of secondhand

2-19     or recycled material.

2-20           (b)  Rules adopted under this section must be consistent with

2-21     any applicable federal law or regulation.

2-22           Sec. 345.007.  ADVISORY COMMISSION.  The Texas Board of

2-23     Health may appoint an advisory commission composed of

2-24     representatives of consumers and the bedding industry to assist the

2-25     board in implementing this chapter.

 3-1           SECTION 4.  Subchapter B, Chapter 345, Health and Safety

 3-2     Code, is amended to read as follows:

 3-3                        SUBCHAPTER B.  LABELS [TAGS]

 3-4           Sec. 345.021.  LABEL [TAG] REQUIRED.  (a)  A person may not

 3-5     manufacture, repair, renovate, or sell bedding unless a label [tag]

 3-6     that conforms to this subchapter is:

 3-7                 (1)  securely attached to the bedding at the location

 3-8     and by a method approved by the department; and

 3-9                 (2)  [is] clearly visible.

3-10           (b)  The label [tag] must be [white and] made of substantial

3-11     cloth or a substance of equal quality.

3-12           (c)  The information required on a label [tag] by this

3-13     chapter must be in English.  The department may authorize or

3-14     require the use of a language in addition to English on the label

3-15     or on an additional separate label.

3-16           Sec. 345.022.  LABELS [TAGS] ON BEDDING MADE OF NEW OR

3-17     SECONDHAND MATERIAL.  (a)  A label [tag] required under this

3-18     section shall be attached at the factory in which the bedding is

3-19     manufactured.

3-20           (b)  A label [tag] attached to bedding wholly manufactured

3-21     from new material must be at least six square inches and state,

3-22     plainly stamped or printed in [black] ink:

3-23                 (1)  "All New Material" in lettering at least

3-24     one-eighth inch high;

3-25                 (2)  the kind and grade of each material used in the

 4-1     filling and, if more than one kind or grade of material is used,

 4-2     the percentage, in descending order, by weight of each material;

 4-3     and

 4-4                 (3)  the manufacturer's permit number assigned by the

 4-5     department.

 4-6           (c)  A label [tag] attached to bedding any part of which is

 4-7     manufactured from secondhand or recycled material, other than

 4-8     bedding reworked, repaired, or renovated for the owner for the

 4-9     owner's personal use, must be at least 12 square inches and state,

4-10     plainly stamped or printed in [red] ink:

4-11                 (1)  "Secondhand or Recycled Material" in lettering at

4-12     least one-fourth inch high; and

4-13                 (2)  the manufacturer's permit number assigned by the

4-14     department.

4-15           (d)  A label [tag] attached to bedding renovated, reworked,

4-16     or repaired for the owner for the owner's personal use and from the

4-17     owner's material that is in whole or in part secondhand must be at

4-18     least six square inches and state, plainly stamped or printed in

4-19     [black] ink:

4-20                 (1)  "Not for Sale, Owner's Own Material which is

4-21     Secondhand Material" in lettering at least one-eighth inch high;

4-22                 (2)  the name and address of the owner; and

4-23                 (3)  the manufacturer's permit number assigned by the

4-24     department.

4-25           (e)  A term used on a label [tag] required by this section to

 5-1     describe kinds and grades of material used in filling must conform

 5-2     to those defined in the department's rules, and a trade or

 5-3     substitute term may not be used.

 5-4           (f)  The department may adopt rules that:

 5-5                 (1)  require that the label state conformity with burn

 5-6     resistant material requirements or identify any chemical treatment

 5-7     applied to the bedding; and

 5-8                 (2)  exempt from the requirements of this section a

 5-9     custom upholstery business that does not repair or renovate bedding

5-10     for resale.

5-11           Sec. 345.023.  FALSE OR MISLEADING STATEMENT PROHIBITED.  A

5-12     person may not make a false or misleading statement on a label

5-13     [tag] required by Section 345.022.

5-14           Sec. 345.024.  GERMICIDAL TREATMENT OF BEDDING AND MATERIALS.

5-15     (a)  Except as provided by Subsection (b), a person may not sell

5-16     secondhand bedding or bedding manufactured in whole or in part from

5-17     secondhand or recycled material unless the bedding has been

5-18     germicidally treated and cleaned by a method approved by the

5-19     department.

5-20           (b)  An upholstered sofa bed, reclining chair, or studio

5-21     couch shall be germicidally treated and cleaned only when required

5-22     by department rules.

5-23           (c)  A person may not use in the manufacture, repair, or

5-24     renovation of bedding a material that has not been cleaned and

5-25     germicidally treated by a process or treatment approved by the

 6-1     department if the material:

 6-2                 (1)  has been used by a person with a communicable

 6-3     disease; or

 6-4                 (2)  is filthy, oily, stained, or harbors loathsome

 6-5     insects or pathogenic organisms [bacteria].

 6-6           (d)  A person may not sell material or bedding requiring

 6-7     germicidal treatment under this section unless the person applying

 6-8     the germicidal treatment securely attaches by a method approved by

 6-9     the department a label [tag] that is at least 12 square inches and

6-10     contains, plainly printed in [black] ink:

6-11                 (1)  a statement that the article or material has been

6-12     germicidally treated by a method approved by the department;

6-13                 (2)  a statement of the method of germicidal treatment

6-14     applied;

6-15                 (3)  the date [lot number and the tag number of] the

6-16     article was germicidally treated;

6-17                 (4)  the name and address of the person for whom the

6-18     article was germicidally treated; and

6-19                 (5)  the permit number of the person applying the

6-20     germicidal treatment.

6-21           Sec. 345.025.  [TAG,] LABEL[, OR MARKING] REQUIRED ON [BY

6-22     PROCESSOR OF] FILLING MATERIAL.  A processor shall identify each

6-23     item of material to be used for filling bedding by affixing to the

6-24     filling material a label as required by department rules [shipment

6-25     or delivery, however contained, of processed filling material used

 7-1     for filling bedding by affixing to the bedding in a conspicuous

 7-2     place a tag, label, or indelible marking that clearly indicates:]

 7-3                 [(1)  the kind of material;]

 7-4                 [(2)  whether the material is new or secondhand; and]

 7-5                 [(3)  the permit number of the processor].

 7-6           Sec. 345.026.  REMOVAL, DEFACEMENT, OR ALTERATION.  A person

 7-7     may not remove, deface, or alter, or cause the removal, defacing,

 7-8     or alteration of, a label [tag] or a statement on the label [tag]

 7-9     to defeat a provision of this chapter.

7-10           Sec. 345.027.  COLOR OF LABEL AND LETTERING.  The department

7-11     may adopt rules governing the color of label required under this

7-12     subchapter and the color of the lettering on the label [DEFACEMENT

7-13     OF TAG BY STAMP.  A tag is considered to be defaced if a stamp

7-14     required by Subchapter D is placed over any lettering on the tag].

7-15           Sec. 345.028.  APPLICATION TO RECYCLED MATERIAL.

7-16     Notwithstanding any other provision of this subchapter, this

7-17     subchapter applies to bedding manufactured, repaired, or renovated

7-18     in whole or in part from recycled materials only to the extent

7-19     required by department rules.

7-20           SECTION 5.  Section 345.041, Health and Safety Code, is

7-21     amended by adding Subsection (c) to read as follows:

7-22           (c)  The Texas Board of Health by rule may exempt from the

7-23     permit requirement of this section a custom upholstery business

7-24     that does not repair or renovate bedding for resale.

7-25           SECTION 6.  Section 345.043, Health and Safety Code, is

 8-1     amended to read as follows:

 8-2           Sec. 345.043.  FEES; EXPIRATION.  (a)  The Texas Board of

 8-3     Health shall set the fees [fee] for an initial permit issued under

 8-4     this chapter and for renewal of a permit issued under this chapter

 8-5     in amounts reasonable and necessary to defray the cost of

 8-6     administering this chapter [is $15].

 8-7           (b)  A fee collected under this chapter shall be deposited to

 8-8     a special account in the state treasury.  Money in the account may

 8-9     be appropriated only to the department to administer and enforce

8-10     this chapter.

8-11           (c)  A permit expires one year after the date of issuance.

8-12           [(c)  The renewal fee for a permit is $10.]

8-13           SECTION 7.  Subchapter C, Chapter 345, Health and Safety

8-14     Code, is amended by adding Sections 345.0435 and 345.0436 to read

8-15     as follows:

8-16           Sec. 345.0435.  ADOPTION OF RULES; MINIMUM STANDARDS.

8-17     (a)  The Texas Board of Health shall adopt rules necessary to

8-18     implement this subchapter, including requirements for the issuance,

8-19     renewal, denial, suspension, and revocation of a permit issued

8-20     under this subchapter.

8-21           (b)  The rules must contain minimum standards to protect the

8-22     health and safety of the public.

8-23           Sec. 345.0436.  SUBMISSION OF PRODUCT TEST RESULTS OR SAMPLE.

8-24     In conjunction with the issuance or renewal of a permit under this

8-25     subchapter, the department may require the applicant or permit

 9-1     holder to submit:

 9-2                 (1)  a product sample; or

 9-3                 (2)  the results of tests conducted on the product as

 9-4     required by the department.

 9-5           SECTION 8.  Section 345.087, Health and Safety Code, is

 9-6     amended to read as follows:

 9-7           Sec. 345.087.  PROHIBITED ACTS; CRIMINAL OFFENSE.  (a)  A

 9-8     person commits an offense if a person:

 9-9                 (1)  manufactures, repairs, or renovates:

9-10                       (A)  bedding using material in violation of rules

9-11     adopted under Section 345.0055;

9-12                       (B)  bedding or batting in violation of Section

9-13     345.005;

9-14                       (C)  bedding using material in violation of

9-15     Section 345.024; or

9-16                       (D)  bedding that does not conform to the label

9-17     requirements of Subchapter B;

9-18                 (2)  introduces or delivers for introduction into

9-19     commerce:

9-20                       (A)  bedding or batting manufactured, repaired,

9-21     or renovated in violation of Section 345.005, 345.0055, or 345.024;

9-22                       (B)  bedding that does not conform to the label

9-23     requirements of Subchapter B; or

9-24                       (C)  bedding or material the sale of which is

9-25     prohibited as provided by Section 345.084;

 10-1                (3)  receives in commerce:

 10-2                      (A)  bedding or batting manufactured, repaired,

 10-3    or renovated in violation of Section 345.005, 345.0055, or 345.024;

 10-4                      (B)  bedding that does not conform to the label

 10-5    requirements of Subchapter B; or

 10-6                      (C)  bedding or material the sale of which is

 10-7    prohibited as provided by Section 345.084; or

 10-8                (4)  violates Section 345.041, 345.042, or any other

 10-9    provision of this chapter or a rule adopted under this chapter.

10-10          (b)  An offense under this section is a Class A misdemeanor

10-11    [punishable by a fine of not less than $50 or more than $200].

10-12          (c)  In a criminal proceeding under Subsection (a)(1), (2),

10-13    or (3), it is not necessary to prove intent, knowledge,

10-14    recklessness, or criminal negligence.

10-15          (d)  It is a defense to prosecution under Subsection (a)(2)

10-16    or (3) that the person acted in good faith and was not the person

10-17    who manufactured, repaired, or renovated the article.  This

10-18    subsection does not apply unless the person furnishes, on request

10-19    of the department or a local health authority, the name and address

10-20    of the person from whom the article was received and copies of any

10-21    documents relating to receipt of the article.

10-22          SECTION 9.  Subchapter D, Chapter 345, Health and Safety

10-23    Code, is repealed, Subchapter E, Chapter 345, Health and Safety

10-24    Code, is redesignated as Subchapter D, Chapter 345, Health and

10-25    Safety Code, and the heading of Subchapter E, Chapter 345, Health

 11-1    and Safety Code, is amended to read as follows:

 11-2         SUBCHAPTER D [E].  GENERAL ENFORCEMENT; CRIMINAL OFFENSE

 11-3          SECTION 10.  Chapter 345, Health and Safety Code, is amended

 11-4    by adding new Subchapters E and F to read as follows:

 11-5             SUBCHAPTER E.  ADMINISTRATIVE PENALTY; INJUNCTION

 11-6          Sec. 345.101.  ADMINISTRATIVE PENALTY.  (a)  The department

 11-7    may assess an administrative penalty against a person who violates

 11-8    this chapter or a rule adopted under this chapter.

 11-9          (b)  The penalty may not exceed $25,000 for each violation.

11-10    Each day of a continuing violation constitutes a separate

11-11    violation.

11-12          (c)  In determining the amount of an administrative penalty

11-13    assessed under this section, the department shall consider:

11-14                (1)  the seriousness of the violation;

11-15                (2)  the history of previous violations;

11-16                (3)  the amount necessary to deter future violations;

11-17                (4)  efforts made to correct the violation; and

11-18                (5)  any other matters that justice may require.

11-19          (d)  All proceedings for the assessment of an administrative

11-20    penalty under this chapter are subject to Chapter 2001, Government

11-21    Code.

11-22          Sec. 345.102.  NOTICE; REQUEST FOR HEARING.  (a)  If, after

11-23    investigation of a possible violation and the facts surrounding

11-24    that possible violation, the department determines that a violation

11-25    has occurred, the department shall give written notice of the

 12-1    violation to the person alleged to have committed the violation.

 12-2    The notice must include:

 12-3                (1)  a brief summary of the alleged violation;

 12-4                (2)  a statement of the amount of the proposed penalty

 12-5    based on the factors set forth in Section 345.101(c); and

 12-6                (3)  a statement of the person's right to a hearing on

 12-7    the occurrence of the violation, the amount of the penalty, or both

 12-8    the occurrence of the violation and the amount of the penalty.

 12-9          (b)  Not later than the 20th day after the date on which the

12-10    notice is received, the person notified may accept the

12-11    determination of the department made under this section, including

12-12    the proposed penalty, or may make a written request for a hearing

12-13    on that determination.

12-14          (c)  If the person notified of the violation accepts the

12-15    determination of the department or if the person fails to respond

12-16    in a timely manner to the notice, the commissioner of public health

12-17    or the commissioner's designee shall issue an order approving the

12-18    determination and ordering that the person pay the proposed

12-19    penalty.

12-20          Sec. 345.103.  HEARING; ORDER.  (a)  If the person notified

12-21    requests a hearing, the department shall:

12-22                (1)  set a hearing;

12-23                (2)  give written notice of the hearing to the person;

12-24    and

12-25                (3)  designate a hearings examiner to conduct the

 13-1    hearing.

 13-2          (b)  The hearings examiner shall make findings of fact and

 13-3    conclusions of law and shall promptly issue to the commissioner of

 13-4    public health or the commissioner's designee a proposal for

 13-5    decision as to the occurrence of the violation and a recommendation

 13-6    as to the amount of the proposed penalty if a penalty is determined

 13-7    to be warranted.

 13-8          (c)  Based on the findings of fact and conclusions of law and

 13-9    the recommendations of the hearings examiner, the commissioner of

13-10    public health or the commissioner's designee by order may find that

13-11    a violation has occurred and may assess a penalty or may find that

13-12    no violation has occurred.

13-13          Sec. 345.104.  NOTICE AND PAYMENT OF ADMINISTRATIVE PENALTY;

13-14    JUDICIAL REVIEW; REFUND.  (a)  The department shall give notice of

13-15    the order under Section 345.103(c) to the person alleged to have

13-16    committed the violation.  The notice must include:

13-17                (1)  separate statements of the findings of fact and

13-18    conclusions of law;

13-19                (2)  the amount of any penalty assessed; and

13-20                (3)  a statement of the right of the person to judicial

13-21    review of the order.

13-22          (b)  Not later than the 30th day after the date on which the

13-23    decision is final as provided by Chapter 2001, Government Code, the

13-24    person shall:

13-25                (1)  pay the penalty;

 14-1                (2)  pay the penalty and file a petition for judicial

 14-2    review contesting the occurrence of the violation, the amount of

 14-3    the penalty, or both the occurrence of the violation and the amount

 14-4    of the penalty; or

 14-5                (3)  without paying the penalty, file a petition for

 14-6    judicial review contesting the occurrence of the violation, the

 14-7    amount of the penalty, or both the occurrence of the violation and

 14-8    the amount of the penalty.

 14-9          (c)  Within the 30-day period, a person who acts under

14-10    Subsection (b)(3) may:

14-11                (1)  stay enforcement of the penalty by:

14-12                      (A)  paying the penalty to the court for

14-13    placement in an escrow account; or

14-14                      (B)  giving to the court a supersedeas bond that

14-15    is approved by the court for the amount of the penalty and that is

14-16    effective until all judicial review of the order is final; or

14-17                (2)  request the court to stay enforcement of the

14-18    penalty by:

14-19                      (A)  filing with the court a sworn affidavit of

14-20    the person stating that the person is financially unable to pay the

14-21    amount of the penalty and is financially unable to give the

14-22    supersedeas bond; and

14-23                      (B)  giving a copy of the affidavit to the

14-24    department by certified mail.

14-25          (d)  If the department receives a copy of an affidavit under

 15-1    Subsection (c)(2), the department may file with the court, within

 15-2    five days after the date the copy is received, a contest to the

 15-3    affidavit.  The court shall hold a hearing on the facts alleged in

 15-4    the affidavit as soon as practicable and shall stay the enforcement

 15-5    of the penalty on finding that the alleged facts are true.  The

 15-6    person who files an affidavit has the burden of proving that the

 15-7    person is financially unable to pay the penalty and to give a

 15-8    supersedeas bond.

 15-9          (e)  If the person does not pay the penalty and the

15-10    enforcement of the penalty is not stayed, the department may refer

15-11    the matter to the attorney general for collection of the penalty.

15-12          (f)  Judicial review of the order:

15-13                (1)  is instituted by filing a petition as provided by

15-14    Subchapter G, Chapter 2001, Government Code; and

15-15                (2)  is under the substantial evidence rule.

15-16          (g)  If the court sustains the occurrence of the violation,

15-17    the court may uphold or reduce the amount of the penalty and order

15-18    the person to pay the full or reduced amount of the penalty.  If

15-19    the court does not sustain the occurrence of the violation, the

15-20    court shall order that no penalty is owed.

15-21          (h)  When the judgment of the court becomes final, the court

15-22    shall proceed under this subsection.  If the person paid the amount

15-23    of the penalty under Subsection (b)(2) and if that amount is

15-24    reduced or is not upheld by the court, the court shall order that

15-25    the department pay the appropriate amount plus accrued interest to

 16-1    the person.  The rate of the interest is the rate charged on loans

 16-2    to depository institutions by the New York Federal Reserve Bank,

 16-3    and the interest shall be paid for the period beginning on the date

 16-4    the penalty was paid and ending on the date the penalty is

 16-5    remitted.  If the person paid the penalty under Subsection

 16-6    (c)(1)(A), or gave a supersedeas bond, and if the amount of the

 16-7    penalty is not upheld by the court, the court shall order the

 16-8    release of the escrow account or bond.  If the person paid the

 16-9    penalty under Subsection (c)(1)(A) and the amount of the penalty is

16-10    reduced, the court shall order that the amount of the penalty be

16-11    paid to the department from the escrow account and that the

16-12    remainder of the account be released.  If the person gave a

16-13    supersedeas bond and if the amount of the penalty is reduced, the

16-14    court shall order the release of the bond after the person pays the

16-15    amount.

16-16          Sec. 345.105.  PENALTY DEPOSITED TO STATE TREASURY.  An

16-17    administrative penalty collected under this subchapter shall be

16-18    deposited in the state treasury to the credit of the general

16-19    revenue fund.

16-20          Sec. 345.106.  INJUNCTION.  (a)  At the request of the

16-21    commissioner of public health, the attorney general may petition

16-22    the district court for a temporary restraining order to restrain a

16-23    continuing violation of this chapter or a threat of a continuing

16-24    violation of this chapter if the commissioner of public health

16-25    finds that:

 17-1                (1)  a person has violated, is violating, or is

 17-2    threatening to violate this chapter; and

 17-3                (2)  the violation or threatened violation creates an

 17-4    immediate threat to the health and safety of the public.

 17-5          (b)  A district court, on petition under this section and on

 17-6    a finding by the court that a person is violating or threatening to

 17-7    violate this chapter, shall grant any injunctive relief warranted

 17-8    by the facts.

 17-9          (c)  Venue for a suit brought under this section is in the

17-10    county in which the violation or threat of violation is alleged to

17-11    have occurred or in Travis County.

17-12          Sec. 345.107.  RECOVERY OF COSTS.  (a)  The department may

17-13    assess reasonable expenses and costs against a person in an

17-14    administrative hearing if, as a result of the hearing, the person's

17-15    permit is denied, suspended, or revoked or if administrative

17-16    penalties are assessed against the person.  The person shall pay

17-17    expenses and costs assessed under this subsection not later than

17-18    the 30th day after the date on which the order issued by the

17-19    commissioner of public health or the commissioner's designee

17-20    requiring the payment of expenses and costs is final.  The

17-21    department may refer the matter to the attorney general for

17-22    collection of the expenses and costs.

17-23          (b)  If the attorney general brings an action against a

17-24    person under Section 345.106 or to enforce an administrative

17-25    penalty assessed under this subchapter and an injunction is granted

 18-1    against the person or the person is found liable for an

 18-2    administrative penalty, the attorney general may recover, on behalf

 18-3    of the attorney general and the department, reasonable expenses and

 18-4    costs.

 18-5          (c)  For purposes of this section, "reasonable expenses and

 18-6    costs" include expenses incurred by the department and the attorney

 18-7    general in the investigation, initiation, or prosecution of an

 18-8    action, including reasonable investigative costs, court costs,

 18-9    attorney's fees, witness fees, and deposition expenses.

18-10             (Sections 345.108-345.130 reserved for expansion

18-11              SUBCHAPTER F.  DETENTION OR EMBARGO OF BEDDING

18-12          Sec. 345.131.  DEFINITIONS.  In this subchapter:

18-13                (1)  "Authorized agent" means an employee of the

18-14    department who is designated by the commissioner of public health

18-15    to enforce the provisions of this chapter.

18-16                (2)  "Detained or embargoed bedding" means bedding that

18-17    has been detained or embargoed under Section 345.132.

18-18          Sec. 345.132.  DETAINED OR EMBARGOED BEDDING.  (a)  The

18-19    commissioner of public health or an authorized agent may detain or

18-20    embargo bedding under this section if the commissioner or the

18-21    authorized agent finds or has probable cause to believe that the

18-22    article violates this chapter or a rule or standard adopted under

18-23    this chapter.

18-24          (b)  The commissioner of public health or an authorized agent

18-25    shall affix to detained or embargoed bedding a tag or other

 19-1    appropriate marking that gives notice that:

 19-2                (1)  the bedding violates or is suspected of violating

 19-3    this chapter or a rule or standard adopted under this chapter; and

 19-4                (2)  the bedding has been detained or embargoed.

 19-5          (c)  The tag or marking on detained or embargoed bedding must

 19-6    warn all persons not to use the bedding, remove the bedding from

 19-7    the premises, or dispose of the bedding by sale or otherwise until

 19-8    permission for use, removal, or disposal is given by the

 19-9    commissioner of public health, the authorized agent, or a court.

19-10          (d)  A person may not use detained or embargoed bedding,

19-11    remove detained or embargoed bedding from the premises, or dispose

19-12    of detained or embargoed bedding by sale or otherwise without

19-13    permission of the commissioner of public health, the authorized

19-14    agent, or a court.

19-15          (e)  The commissioner of public health or an authorized agent

19-16    shall remove the tag or other marking from detained or embargoed

19-17    bedding if the commissioner or an authorized agent finds that the

19-18    bedding does not violate this chapter or a rule or standard adopted

19-19    under this chapter.

19-20          Sec. 345.133.  REMOVAL ORDER FOR DETAINED OR EMBARGOED

19-21    BEDDING.  (a)  If the claimant of the detained or embargoed bedding

19-22    or the claimant's agent fails or refuses to transfer the bedding to

19-23    a secure place after the tag or other appropriate marking has been

19-24    affixed as provided by Section 345.132, the commissioner of public

19-25    health or an authorized agent may order the transfer of the bedding

 20-1    to one or more secure storage areas to prevent unauthorized use,

 20-2    removal, or disposal.

 20-3          (b)  The commissioner of public health or an authorized agent

 20-4    may provide for the transfer of the bedding if the claimant of the

 20-5    bedding or the claimant's agent does not carry out the transfer

 20-6    order in a timely manner.

 20-7          (c)  The claimant of the bedding  or the claimant's agent

 20-8    shall pay the costs of the transfer, and the costs of any transfer

 20-9    made under Subsection (a) or (b) shall be assessed against the

20-10    claimant of the bedding or the claimant's agent.

20-11          (d)  The commissioner of public health may request the

20-12    attorney general to bring an action in the district court in Travis

20-13    County to recover the costs of the transfer.  In a judgment in

20-14    favor of the state, the court may award costs, attorney's fees,

20-15    court costs, and interest from the time the expense was incurred

20-16    through the date the department is reimbursed.

20-17          Sec. 345.134.  CONDEMNATION.  An action for the condemnation

20-18    of bedding may be brought before a court in whose jurisdiction the

20-19    bedding is located, detained, or embargoed if the bedding violates

20-20    this chapter or a rule or standard adopted under this chapter.

20-21          Sec. 345.135.  RECALL ORDERS.  (a)  In conjunction with the

20-22    detention or embargo of bedding under this subchapter, the

20-23    commissioner of public health may order bedding to be recalled from

20-24    commerce.

20-25          (b)  The commissioner of public health's recall order may

 21-1    require the bedding to be removed to one or more secure areas

 21-2    approved by the commissioner or an authorized agent.

 21-3          (c)  The recall order must be in writing and signed by the

 21-4    commissioner of public health.

 21-5          (d)  The recall order may be issued before or in conjunction

 21-6    with the affixing of the tag or other appropriate marking as

 21-7    provided by Section 345.132(b).

 21-8          (e)  The recall order is effective until the order:

 21-9                (1)  expires on its own terms;

21-10                (2)  is withdrawn by the commissioner of public health;

21-11    or

21-12                (3)  is reversed by a court in an order denying

21-13    condemnation under Section 345.134.

21-14          (f)  The claimant of the bedding or the claimant's agent

21-15    shall pay the costs of the removal and storage of the bedding

21-16    removed.

21-17          (g)  If the claimant or the claimant's agent fails or refuses

21-18    to carry out the recall order in a timely manner, the commissioner

21-19    of public health may provide for the recall of the bedding.  The

21-20    costs of the recall shall be assessed against the claimant of the

21-21    bedding or the claimant's agent.

21-22          (h)  The commissioner of public health may request the

21-23    attorney general to bring an action in the district court of Travis

21-24    County to recover the costs of the recall.  In a judgment in favor

21-25    of the state, the court may award costs, attorney's fees, court

 22-1    costs, and interest from the time the expense was incurred through

 22-2    the date the department is reimbursed.

 22-3          Sec. 345.136.  DESTRUCTION OF BEDDING.  (a)  A court shall

 22-4    order the destruction of detained or embargoed bedding if the court

 22-5    finds that the bedding violates this chapter or a rule or standard

 22-6    adopted under this chapter.

 22-7          (b)  After entry of the court's order, an authorized agent

 22-8    shall supervise the destruction of the bedding.

 22-9          (c)  The claimant of the article shall pay the cost of the

22-10    destruction of the bedding.

22-11          (d)  The court shall tax against the claimant of the bedding

22-12    or the claimant's agent all court costs and fees and storage and

22-13    other proper expenses.

22-14          Sec. 345.137.  CORRECTION BY PROPER LABELING OR PROCESSING.

22-15    (a)  A court may order the delivery of detained or embargoed

22-16    bedding that violates this chapter or a rule or standard adopted

22-17    under this chapter to the claimant of the bedding for labeling or

22-18    processing under the supervision of an agent of the commissioner of

22-19    public health or an authorized agent if:

22-20                (1)  the decree has been entered in the suit relating

22-21    to the detained or embargoed bedding;

22-22                (2)  the claimant has paid the costs, fees, and

22-23    expenses of the suit;

22-24                (3)  the violation can be corrected by proper labeling

22-25    or processing; and

 23-1                (4)  a good and sufficient bond, conditioned on the

 23-2    correction of the violation by proper labeling or processing, has

 23-3    been executed.

 23-4          (b)  The claimant shall pay the costs of the supervision of

 23-5    the labeling or processing by the agent of the commissioner of

 23-6    public health or an authorized agent.

 23-7          (c)  The court shall order that the bedding be returned to

 23-8    the claimant and the bond discharged on the representation to the

 23-9    court by the commissioner of public health or an authorized agent

23-10    that the article no longer violates this chapter or a rule or

23-11    standard adopted under this chapter and that the expenses of the

23-12    supervision are paid.

23-13          SECTION 11.  This Act takes effect September 1, 1997.

23-14          SECTION 12.  The change in law made by Section 7 of this Act

23-15    applies only to the issuance or renewal of a permit under

23-16    Subchapter C, Chapter 345, Health and Safety Code, on or after

23-17    January 1, 1998.

23-18          SECTION 13.  (a)  The change in law made by Section 8 of this

23-19    Act applies only to the punishment for an offense committed on or

23-20    after the effective date of this Act.  For purposes of this

23-21    section, an offense is committed before the effective date of this

23-22    Act if any element of the offense occurs before the effective date.

23-23          (b)  An offense committed before the effective date of this

23-24    Act is covered by the law in effect when the offense was committed,

23-25    and the former law is continued in effect for this purpose.

                                                               S.B. No. 1284

 24-1          SECTION 14.  The change in law made by Section 10 of this Act

 24-2    applies only to assessment of an administrative penalty for conduct

 24-3    occurring on or after the effective date of this Act.

 24-4          SECTION 15.  The importance of this legislation and the

 24-5    crowded condition of the calendars in both houses create an

 24-6    emergency and an imperative public necessity that the

 24-7    constitutional rule requiring bills to be read on three several

 24-8    days in each house be suspended, and this rule is hereby suspended.

         ________________________________   ________________________________

            President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 1284 passed the Senate on

         April 17, 1997, by the following vote:  Yeas 31, Nays 0;

         May 23, 1997, Senate refused to concur in House amendment and

         requested appointment of Conference Committee; May 24, 1997, House

         granted request of the Senate; June 1, 1997, Senate adopted

         Conference Committee Report by a viva-voce vote.

                                            _______________________________

                                                Secretary of the Senate

               I hereby certify that S.B. No. 1284 passed the House, with

         amendment, on May 21, 1997, by a non-record vote; May 24, 1997,

         House granted request of the Senate for appointment of Conference

         Committee; June 1, 1997, House adopted Conference Committee Report

         by a non-record vote.

                                            _______________________________

                                                Chief Clerk of the House

         Approved:

         ________________________________

                     Date

         ________________________________

                   Governor