By Gray                                               H.B. No. 2638
         76R3428 JRD-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the hazardous substances law; providing penalties.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 501.001, Health and Safety Code, is
 1-5     amended to read as follows:
 1-6           Sec. 501.001.  DEFINITIONS.  In this chapter:
 1-7                 (1)  "Board" means the Texas Board of Health.
 1-8                 (2)  "Commerce" includes the operation of a business or
 1-9     service establishment and other commerce in this state that is
1-10     subject to the jurisdiction of this state.
1-11                 (3)  "Commissioner" means the commissioner of public
1-12     health.
1-13                 (4)  "Department" means the Texas Department of Health.
1-14                 (5) [(4)]  "Label" means a display of written, printed,
1-15     or other graphic matter:
1-16                       (A)  on the immediate container, excluding the
1-17     package liner, of any substance; or
1-18                       (B)  directly on the article or on a tag or other
1-19     suitable material affixed to the article, if the article is
1-20     unpackaged or not packaged in an immediate container intended or
1-21     suitable for delivery to the ultimate consumer.
1-22                 (6) [(5)]  "Misbranded hazardous substance" means
1-23     either of the following that is not properly packaged or does not
1-24     bear a proper label required by this chapter:
 2-1                       (A)  a hazardous substance; or
 2-2                       (B)  a toy or other article intended for use by
 2-3     children that bears or contains a hazardous substance in a manner
 2-4     that is accessible by a child to whom the toy or other article is
 2-5     entrusted, intended, or packaged in a form suitable for use in a
 2-6     household or by children.
 2-7           SECTION 2.  Sections 501.002(a) and (d), Health and Safety
 2-8     Code, are amended to read as follows:
 2-9           (a)  A hazardous substance is:
2-10                 (1)  a substance or mixture of substances that is
2-11     toxic, corrosive, extremely flammable, flammable, combustible, an
2-12     irritant, or a strong sensitizer, or that generates pressure
2-13     through decomposition, heat, or other means, if the substance or
2-14     mixture of substances may cause substantial personal injury or
2-15     substantial illness during or as a proximate result of any
2-16     customary or reasonably foreseeable handling or use, including
2-17     reasonably foreseeable ingestion by children;
2-18                 (2)  a toy or other article, other than clothing, that
2-19     is intended for use by a child and that presents an electrical,
2-20     mechanical, or thermal hazard; or
2-21                 (3)  a radioactive substance designated as a hazardous
2-22     substance under Section 501.003.
2-23           (d)  A substance or article is extremely flammable,
2-24     flammable, or combustible if it is defined as extremely flammable,
2-25     flammable, or combustible by rule of the board.  Unless the board
2-26     determines that the health, safety, and welfare of persons in this
2-27     state requires a different definition, the board shall define the
 3-1     terms as they are defined by the Federal Hazardous Substances Act
 3-2     (15 U.S.C. Section 1261 et seq.), as amended, and by federal
 3-3     regulations adopted under that Act.  Until the board adopts a
 3-4     different definition, the terms each have the meaning assigned by
 3-5     the Federal Hazardous Substances Act (15 U.S.C. Section 1261 et
 3-6     seq.), and by federal regulations adopted under that Act, as of
 3-7     September 1, 1999 [is flammable if it has a flash point of 80
 3-8     degrees Fahrenheit or less, as determined by the Tagliabue Open Cup
 3-9     Tester or other method as provided by Section 501.021].
3-10           SECTION 3.  Section 501.021, Health and Safety Code, is
3-11     amended to read as follows:
3-12           Sec. 501.021. FLAMMABILITY STANDARDS; DETERMINATION OF
3-13     FLAMMABILITY.  (a)  The board by rule shall establish the methods
3-14     for determining the flammability of solids, fabrics, children's
3-15     clothing, household furnishings, and the contents of
3-16     self-pressurized containers that the board finds are generally
3-17     applicable to those materials or containers.
3-18           (b)  The board by rule shall establish flammability standards
3-19     for articles described by Subsection (a).  Unless the board
3-20     determines that the health, safety, and welfare of persons in this
3-21     state requires a different standard, the standards must conform to
3-22     standards prescribed by federal regulations adopted under the
3-23     federal Flammable Fabrics Act (15 U.S.C. Section 1191 et seq.), as
3-24     amended, the Federal Hazardous Substances Act (15 U.S.C. Section
3-25     1261 et seq.), as amended, and the federal Consumer Product Safety
3-26     Act (15 U.S.C.  Section 2051 et seq.), as amended.  Until the board
3-27     adopts different standards, the flammability standards for articles
 4-1     described by Subsection (a) are the standards prescribed by federal
 4-2     regulations adopted under the federal Flammable Fabrics Act (15
 4-3     U.S.C. Section 1191 et seq.), the Federal Hazardous Substances Act
 4-4     (15 U.S.C. Section 1261 et seq.), and the federal Consumer Product
 4-5     Safety Act (15 U.S.C. Section 2051 et seq.) as of September 1,
 4-6     1999.
 4-7           (c)  The department may obtain samples of articles described
 4-8     by Subsection (a) and determine the flammability of the articles
 4-9     for compliance with applicable standards established under this
4-10     section [shall determine the flammability of those articles].
4-11           SECTION 4.  Section 501.022(a), Health and Safety Code, is
4-12     amended to read as follows:
4-13           (a)  The board by rule shall designate as a banned hazardous
4-14     substance any article, including [of] clothing intended for the use
4-15     of children, that is not properly packaged or that does not comply
4-16     with applicable flammability standards established by the board.
4-17     The board's determination that articles of clothing of a specified
4-18     range of sizes are intended for the use of a child 14 years of age
4-19     or younger is conclusive.
4-20           SECTION 5.  The heading for Section 501.023, Health and
4-21     Safety Code, is amended to read as follows:
4-22           Sec. 501.023.  GENERAL LABELING AND PACKAGING REQUIREMENTS.
4-23           SECTION 6.  Subchapter B, Chapter 501, Health and Safety
4-24     Code, is amended by adding Sections 501.0231-501.0233 to read as
4-25     follows:
4-26           Sec. 501.0231.  LABELING OF CERTAIN TOYS AND GAMES.  (a)
4-27     Toys or games intended for use by children, including the parts of
 5-1     those toys or games, shall be labeled in the manner required by
 5-2     rule of the board.  Unless the board determines that the health,
 5-3     safety, and welfare of persons in this state requires a deviation
 5-4     from federal standards, the board's rules under this subsection
 5-5     shall be consistent with federal guidelines and regulations adopted
 5-6     under the Federal Hazardous Substances Act (15 U.S.C. Section 1261
 5-7     et seq.), as amended.  Until the board adopts rules under this
 5-8     subsection, the toys, games, and parts shall be labeled in the
 5-9     manner required by federal guidelines and regulations adopted under
5-10     the Federal Hazardous Substances Act (15 U.S.C. Section 1261 et
5-11     seq.) as of September 1, 1999.
5-12           (b)  Latex balloons, small balls, marbles, and any toy or
5-13     game that contains such a balloon, ball, or marble shall be labeled
5-14     in the manner required by rule of the board.  Unless the board
5-15     determines that the health, safety, and welfare of persons in this
5-16     state requires a deviation from federal standards, the board's
5-17     rules under this subsection shall be consistent with federal
5-18     guidelines and regulations adopted under the Federal Hazardous
5-19     Substances Act (15 U.S.C. Section 1261 et seq.), as amended.  Until
5-20     the board adopts rules under this subsection, latex balloons, small
5-21     balls, marbles, and any toy or game that contains such a balloon,
5-22     ball, or marble shall be labeled in the manner required by federal
5-23     guidelines and regulations adopted under the Federal Hazardous
5-24     Substances Act (15 U.S.C. Section 1261 et seq.) as of September 1,
5-25     1999.
5-26           Sec. 501.0232.  REVIEW AND LABELING OF HAZARDOUS ART
5-27     MATERIALS.  (a)  Art materials shall be reviewed by a toxicologist.
 6-1           (b)  Art materials shall be labeled in the manner required by
 6-2     rule of the board.  Unless the board determines that the health,
 6-3     safety, and welfare of persons in this state requires a deviation
 6-4     from federal standards, the board's rules under this subsection
 6-5     shall be consistent with the Federal Hazardous Substances Act (15
 6-6     U.S.C. Section 1261 et seq.), as amended, and federal regulations
 6-7     adopted under that Act.  Until the board adopts rules under this
 6-8     subsection, art materials shall be labeled in the manner required
 6-9     by the Federal Hazardous Substances Act (15 U.S.C. Section 1261 et
6-10     seq.), and federal regulations adopted under that Act, as of
6-11     September 1, 1999.
6-12           Sec. 501.0233.  PACKAGING OF HAZARDOUS SUBSTANCES.  Hazardous
6-13     substances shall be packaged in the manner required by special
6-14     packaging rules adopted by the board.  Unless the board determines
6-15     that the health, safety, and welfare of persons in this state
6-16     requires a deviation from federal standards, the board's rules
6-17     under this section shall be consistent with federal special
6-18     packaging regulations adopted under the federal Poison Prevention
6-19     Packaging Act of 1970 (15 U.S.C.  Section 1471 et seq.), as
6-20     amended.  Until the board adopts rules under this section,
6-21     hazardous substances shall be packaged in the manner required by
6-22     federal special packaging regulations adopted under the federal
6-23     Poison Prevention Packaging Act of 1970 (15 U.S.C. Section 1471 et
6-24     seq.), as of September 1, 1999.
6-25           SECTION 7.  Section 501.024, Health and Safety Code, is
6-26     amended to read as follows:
6-27           Sec. 501.024.  REGISTRATION.  (a)  A person who manufactures,
 7-1     imports, or repacks a hazardous substance that is distributed in
 7-2     this state or who distributes a hazardous substance in this state
 7-3     under the person's private brand name shall have on file with the
 7-4     department a registration statement as provided by this section.
 7-5           (b)  The board by rule shall detail the registration
 7-6     requirements and prescribe the contents of the registration
 7-7     statement.
 7-8           (c)  The person must file the registration statement with the
 7-9     department [before]:
7-10                 (1)  before beginning business in this state as a
7-11     manufacturer, importer, repacker, or distributor of a hazardous
7-12     substance; and
7-13                 (2)  in each succeeding year that the person continues
7-14     the business in this state, not later than the anniversary of
7-15     [September 1 of each year after] the initial filing.
7-16           (d)  The initial registration statement and each annual
7-17     registration statement must be accompanied by a fee prescribed by
7-18     the board [of $150].
7-19           (e)  The department, after notice and hearing, may refuse to
7-20     register or may cancel, revoke, or suspend the registration of a
7-21     person who manufactures, imports, repacks, or distributes a
7-22     hazardous substance if the person fails to comply with the
7-23     requirements of this chapter [make timely payment of the fee].
7-24           (f)  A hazardous substance is subject to seizure and
7-25     disposition under Section 501.033 if the person who manufactures,
7-26     imports, repacks, or distributes the hazardous substance does not,
7-27     after notice by the department, register with the department and
 8-1     make timely payment of the fee under this section.
 8-2           (g)  This section does not apply to a retailer who
 8-3     distributes a hazardous substance to the general public unless the
 8-4     retailer distributes a hazardous substance made to its
 8-5     specifications.
 8-6           SECTION 8.  Section 501.025, Health and Safety Code, is
 8-7     amended to read as follows:
 8-8           Sec. 501.025.  RULES.  The board may adopt reasonable rules
 8-9     necessary for the efficient administration and enforcement of this
8-10     chapter.  Unless the board determines that the health, safety, and
8-11     welfare of persons in this state requires a deviation from federal
8-12     regulations, the [The] rules must conform with regulations adopted
8-13     under the Federal Hazardous Substances Act (15 U.S.C. Section 1261
8-14     et seq.), as amended, the federal Consumer Product Safety Act (15
8-15     U.S.C. Section 2051 et seq.), as amended, the federal Flammable
8-16     Fabrics Act (15 U.S.C.  Section 1191 et seq.), as amended, and the
8-17     federal Poison Prevention Packaging Act of 1970 (15 U.S.C. Section
8-18     1471 et seq.), as amended, as applicable.
8-19           SECTION 9.  Subchapter B, Chapter 501, Health and Safety
8-20     Code, is amended by adding Section 501.026 to read as follows:
8-21           Sec. 501.026.  FEES.  (a)  The board by rule shall set
8-22     reasonable registration fees in an amount designed to recover not
8-23     more than the costs to the department of administering, monitoring
8-24     compliance with, enforcing, and conducting tests under this
8-25     chapter.
8-26           (b)  All registration fees received by the department under
8-27     this chapter shall be deposited to the credit of a dedicated
 9-1     account in the general revenue fund.  Money in the account may be
 9-2     appropriated only to the department to implement this chapter.
 9-3           SECTION 10.  Section 501.031(b), Health and Safety Code, is
 9-4     amended to read as follows:
 9-5           (b)  The officer, employee, or agent of the department may
 9-6     obtain samples of any materials, packaging, [or] labeling, or
 9-7     finished product.  [The officer, employee, or agent shall pay or
 9-8     offer to pay the owner, operator, or agent in charge for a sample
 9-9     and shall give a receipt describing a sample obtained.]
9-10           SECTION 11.  Section 501.033(b), Health and Safety Code, is
9-11     amended to read as follows:
9-12           (b)  The department shall petition a [the] district court of
9-13     Travis County or of the county in which the article is located to
9-14     authorize the destruction of the article.  If the court determines
9-15     that the article is a banned or misbranded hazardous substance, the
9-16     department shall destroy the article, and the court shall impose
9-17     all court costs and fees and storage and other proper expenses
9-18     against the claimant of the article.  However, if the court finds
9-19     that misbranding occurred in good faith and can be corrected by
9-20     proper labeling, the court may direct that the article be delivered
9-21     to the claimant for proper labeling with the approval of the
9-22     department.
9-23           SECTION 12.  Section 501.034, Health and Safety Code, is
9-24     amended by adding Subsections (g) and (h) to read as follows:
9-25           (g)  A person may not manufacture, import, or repack a
9-26     hazardous substance that is to be distributed in this state or
9-27     otherwise distribute a hazardous substance in this state without
 10-1    complying with Section 501.024.
 10-2          (h)  A person may not package a hazardous substance in a new
 10-3    or reused food, drug, or cosmetic container that is identifiable as
 10-4    a food, drug, or cosmetic container by its labeling or other
 10-5    identification.
 10-6          SECTION 13.  Sections 501.035(a) and (b), Health and Safety
 10-7    Code, are amended to read as follows:
 10-8          (a)  A person commits an offense if the person
 10-9    [intentionally, knowingly, or recklessly] violates this chapter or
10-10    a rule adopted under this chapter.
10-11          (b)  An offense under this section is a [Class B misdemeanor
10-12    unless it is shown on the trial of the offense that the person's
10-13    intent was to defraud another, in which event the offense is a]
10-14    Class A misdemeanor.
10-15          SECTION 14.  Subchapter C, Chapter 501, Health and Safety
10-16    Code, is amended by adding Sections 501.036-501.042 to read as
10-17    follows:
10-18          Sec. 501.036.  INJUNCTION.  (a)  If it appears that a person
10-19    has violated, is violating, or is threatening to violate this
10-20    chapter or a rule adopted or order issued under this chapter, the
10-21    commissioner may request the attorney general or a district,
10-22    county, or city attorney of the county or municipality in which the
10-23    violation has occurred, is occurring, or may occur to institute a
10-24    civil suit for:
10-25                (1)  an order enjoining the violation or an order
10-26    directing compliance; or
10-27                (2)  a permanent or temporary injunction, restraining
 11-1    order, or other appropriate order if the department shows that the
 11-2    person has engaged in, is engaging in, or is about to engage in a
 11-3    violation of this chapter or a rule adopted or order issued under
 11-4    this chapter.
 11-5          (b)  Venue for a suit brought under this section is in the
 11-6    county or municipality in which the violation occurred or in Travis
 11-7    County.
 11-8          (c)  The commissioner and either the attorney general or the
 11-9    district, county, or city attorney, as appropriate, may each
11-10    recover from the violator reasonable expenses incurred in obtaining
11-11    injunctive relief under this section, including investigative
11-12    costs, court costs, reasonable attorney's fees, witness fees, and
11-13    deposition expenses.  Expenses recovered by the commissioner may be
11-14    appropriated only to the department to administer and enforce this
11-15    chapter.  Expenses recovered by the attorney general may be
11-16    appropriated only to the attorney general.
11-17          Sec. 501.037.  RECALL ORDERS.  (a)  In conjunction with the
11-18    detention of an article under Section 501.033, the commissioner may
11-19    order that a hazardous substance be recalled from commerce.
11-20          (b)  The commissioner's recall order may require the articles
11-21    to be removed to one or more secure areas approved by the
11-22    commissioner or an authorized agent of the commissioner.
11-23          (c)  The recall order must be in writing and signed by the
11-24    commissioner.
11-25          (d)  The recall order may be issued before or in conjunction
11-26    with the affixing of the tag or other appropriate marking as
11-27    provided by Section 501.033.
 12-1          (e)  The recall order is effective until the order:
 12-2                (1)  expires on its own terms;
 12-3                (2)  is withdrawn by the commissioner; or
 12-4                (3)  is reversed by a court in an order denying
 12-5    destruction under Section 501.033.
 12-6          (f)  The claimant of the articles or the claimant's agent
 12-7    shall pay the costs of the removal and storage of the articles
 12-8    removed.
 12-9          (g)  If the claimant or the claimant's agent does not
12-10    implement the recall order in a timely manner, the commissioner may
12-11    provide for the recall of the articles.  The costs of the recall
12-12    shall be assessed against the claimant of the articles or the
12-13    claimant's agent.
12-14          (h)  The commissioner may request the attorney general to
12-15    bring an action in a district court of Travis County to recover
12-16    costs of the recall.  In a judgment in favor of the state, the
12-17    court may award costs, attorney's fees, and court costs related to
12-18    the recall together with interest on those costs from the time an
12-19    expense was incurred through the date the department is reimbursed.
12-20          Sec. 501.038.  ADMINISTRATIVE PENALTY.  (a)  The department
12-21    may assess an administrative penalty against a person who violates
12-22    this chapter or a rule adopted or order issued under this chapter.
12-23          (b)  In determining the amount of the penalty, the department
12-24    shall consider:
12-25                (1)  the person's history of previous violations;
12-26                (2)  the seriousness of the violations;
12-27                (3)  the hazard to the health and safety of the public;
 13-1                (4)  the person's demonstrated good faith; and
 13-2                (5)  other matters as justice may require.
 13-3          (c)  The penalty may not exceed $25,000 a day for each
 13-4    violation.
 13-5          (d)  Each day of a continuing violation constitutes a
 13-6    separate violation.
 13-7          (e)  A proceeding for the assessment of an administrative
 13-8    penalty under this chapter is a contested case under Chapter 2001,
 13-9    Government Code.
13-10          Sec. 501.039.  ADMINISTRATIVE PENALTY: NOTICE; REQUEST FOR
13-11    HEARING.  (a)  If, after investigation of a possible violation of
13-12    this chapter or a rule adopted or order issued under this chapter
13-13    and the facts surrounding that possible violation, the department
13-14    determines that a violation has occurred, the department shall give
13-15    written notice of the violation to the person alleged to have
13-16    committed the violation.  The notice shall include:
13-17                (1)  a brief summary of the alleged violation;
13-18                (2)  a statement of the amount of the proposed penalty
13-19    based on the factors listed in Section 501.038; and
13-20                (3)  a statement of the person's right to a hearing on
13-21    the occurrence of the violation, the amount of the penalty, or both
13-22    the occurrence of the violation and the amount of the penalty.
13-23          (b)  Not later than the 20th day after the date the notice is
13-24    received, the person notified may accept the determination of the
13-25    department made under this section, including the amount of the
13-26    proposed penalty, or make a written request for a hearing on that
13-27    determination.
 14-1          (c)  If the person accepts the determination of the
 14-2    department, the commissioner or the commissioner's designee shall
 14-3    issue an order approving the determination and ordering that the
 14-4    person pay the proposed penalty.
 14-5          Sec. 501.040.  ADMINISTRATIVE PENALTY: HEARING; ORDER.  (a)
 14-6    If the person  notified under Section 501.039 requests a hearing,
 14-7    the department shall:
 14-8                (1)  set the matter for a hearing;
 14-9                (2)  give written notice of the time and place of the
14-10    hearing to the person; and
14-11                (3)  designate a hearings examiner to conduct the
14-12    hearing.
14-13          (b)  The hearings examiner shall make findings of fact and
14-14    conclusions of law and shall promptly issue to the commissioner or
14-15    the commissioner's designee a proposal for decision as to the
14-16    occurrence of the violation and a recommendation as to the amount
14-17    of the proposed penalty, if a penalty is determined to be
14-18    warranted.
14-19          (c)  Based on the findings of fact and conclusions of law and
14-20    the recommendations of the hearings examiner, the commissioner or
14-21    the commissioner's designee by order may find that a violation has
14-22    occurred and may assess a penalty, or may find that no violation
14-23    has occurred.
14-24          Sec. 501.041.  NOTICE AND PAYMENT OF ADMINISTRATIVE PENALTY;
14-25    JUDICIAL REVIEW; REFUND.  (a)  The department shall give notice of
14-26    the order under Section 501.040 to the person affected by the
14-27    order.  The notice must include:
 15-1                (1)  separate statements of the findings of fact and
 15-2    conclusions of law;
 15-3                (2)  the amount of any penalty assessed; and
 15-4                (3)  a statement of the right of the person to judicial
 15-5    review of the order.
 15-6          (b)  Not later than the 30th day after the date the decision
 15-7    is final as provided by Chapter 2001, Government Code, the person
 15-8    shall:
 15-9                (1)  pay the penalty;
15-10                (2)  pay the penalty and file a petition for judicial
15-11    review contesting the occurrence of the violation, the amount of
15-12    the penalty, or both the occurrence of the violation and the amount
15-13    of the penalty; or
15-14                (3)  without paying the penalty, file a petition for
15-15    judicial review contesting the occurrence of the violation, the
15-16    amount of the penalty, or both the occurrence of the violation and
15-17    the amount of the penalty.
15-18          (c)  Within the 30-day period, a person who acts under
15-19    Subsection (b)(3) may:
15-20                (1)  stay enforcement of the penalty by:
15-21                      (A)  paying the penalty to the court for
15-22    placement in an escrow account; or
15-23                      (B)  giving to the court a supersedeas bond that
15-24    is approved by the court for the amount of the penalty and that is
15-25    effective until all judicial review of the order is final; or
15-26                (2)  request the court to stay enforcement of the
15-27    penalty by:
 16-1                      (A)  filing with the court the person's sworn
 16-2    affidavit stating that the person is financially unable to pay the
 16-3    amount of the penalty and is financially unable to give the
 16-4    supersedeas bond; and
 16-5                      (B)  sending a copy of the affidavit to the
 16-6    department by certified mail.
 16-7          (d)  If the department receives a copy of an affidavit under
 16-8    Subsection (c)(2), the department may file with the court, within
 16-9    five business days after the date the copy is received, a contest
16-10    to the affidavit.  The court shall hold a hearing on the facts
16-11    alleged in the affidavit as soon as practicable and shall stay the
16-12    enforcement of the penalty on finding that the alleged facts are
16-13    true.  The person who files an affidavit has the burden of proving
16-14    that the person is financially unable to pay the penalty or give a
16-15    supersedeas bond.
16-16          (e)  If the person does not pay the penalty and the
16-17    enforcement of the penalty is not stayed, the department may refer
16-18    the matter to the attorney general for collection of the penalty.
16-19          (f)  Judicial review of an order issued under Section
16-20    501.040:
16-21                (1)  is instituted by filing a petition as provided by
16-22    Subchapter G, Chapter 2001, Government Code; and
16-23                (2)  is under the substantial evidence rule.
16-24          (g)  If the court sustains the occurrence of the violation,
16-25    the court may uphold or reduce the amount of the penalty and order
16-26    the person to pay the full or reduced amount of the penalty.  If
16-27    the court does not sustain the occurrence of the violation, the
 17-1    court shall order that no penalty is owed.
 17-2          (h)  When the judgment of the court becomes final, the court
 17-3    shall proceed under this subsection.  If the person paid the amount
 17-4    of the penalty under Subsection (b)(2) and if that amount is
 17-5    reduced or is not upheld by the court, the court shall order that
 17-6    the department pay the appropriate amount plus accrued interest to
 17-7    the person.  The rate of the interest is the rate charged on loans
 17-8    to depository institutions by the New York Federal Reserve Bank,
 17-9    and the interest shall be paid for the period beginning on the date
17-10    the penalty was paid and ending on the date the penalty is
17-11    remitted.  If the person paid the penalty under Subsection
17-12    (c)(1)(A) or gave a supersedeas bond and if the amount of the
17-13    penalty is not upheld by the court, the court shall order the
17-14    release of the escrow account or bond.  If the person paid the
17-15    penalty under Subsection (c)(1)(A) and the amount of the penalty is
17-16    reduced, the court shall order that the amount of the penalty be
17-17    paid to the department from the escrow account and that the
17-18    remainder of the account be released.  If the person gave a
17-19    supersedeas bond and if the amount of the penalty is reduced, the
17-20    court shall order the release of the bond after the person pays the
17-21    amount.
17-22          Sec. 501.042.  RECOVERY OF COSTS.  (a)  The department may
17-23    assess reasonable expenses and costs against a person in an
17-24    administrative hearing if, as a result of the hearing, the person's
17-25    registration is denied, suspended, or revoked or if administrative
17-26    penalties are assessed against the person.  The person shall pay
17-27    expenses and costs assessed under this subsection not later than
 18-1    the 30th day after the date the order of the commissioner or the
 18-2    commissioner's designee requiring the payment of expenses and costs
 18-3    is final.  The department may refer the matter to the attorney
 18-4    general for collection of the expenses and costs.
 18-5          (b)  If the attorney general brings an action against a
 18-6    person to enforce an administrative penalty assessed under this
 18-7    chapter and the person is found liable for the administrative
 18-8    penalty, the attorney general may recover, on behalf of the
 18-9    attorney general and the department, reasonable expenses and costs.
18-10          (c)  For purposes of this section, "reasonable expenses and
18-11    costs" include expenses incurred by the department and the attorney
18-12    general in the investigation, initiation, or prosecution of an
18-13    action, including reasonable investigative costs, court costs,
18-14    attorney's fees, witness fees, and deposition expenses.
18-15          (d)  Expenses recovered by the department under this section
18-16    may be appropriated only to the department to administer and
18-17    enforce this chapter.  Expenses recovered by the attorney general
18-18    under this section may be appropriated only to the attorney
18-19    general.
18-20          SECTION 15.  This Act takes effect September 1, 1999.
18-21          SECTION 16.  (a)  A change in law made by this Act relating
18-22    to the criminal, civil, or administrative enforcement of Chapter
18-23    501, Health and Safety Code, applies only to an offense under or
18-24    other violation of Chapter 501, Health and Safety Code, that occurs
18-25    on or after the effective date of this Act, including a continuing
18-26    offense or continuing violation to the extent that it continues on
18-27    or after the effective date of this Act.
 19-1          (b)  An offense under or other violation of Chapter 501,
 19-2    Health and Safety Code, that occurs before the effective date of
 19-3    this Act is covered by the law relating to the criminal, civil, and
 19-4    administrative enforcement of Chapter 501, Health and Safety Code,
 19-5    in effect when the violation occurred, and the former law is
 19-6    continued in effect for that purpose.
 19-7          (c)  For purposes of this section, a criminal offense is
 19-8    committed before the effective date of this Act if any element of
 19-9    the offense occurs before that date.
19-10          SECTION 17.  The importance of this legislation and the
19-11    crowded condition of the calendars in both houses create an
19-12    emergency and an imperative public necessity that the
19-13    constitutional rule requiring bills to be read on three several
19-14    days in each house be suspended, and this rule is hereby suspended.