1-1     By:  Carona                                           S.B. No. 1533
 1-2           (In the Senate - Filed March 12, 1999; March 15, 1999, read
 1-3     first time and referred to Committee on State Affairs;
 1-4     April 12, 1999, reported favorably, as amended, by the following
 1-5     vote:  Yeas 9, Nays 0; April 12, 1999, sent to printer.)
 1-6     COMMITTEE AMENDMENT NO. 1                                By:  Brown
 1-7     Amend S.B. No. 1533, as introduced, as follows:
 1-8     (1)  On page 4, line 18, strike "(a)" of SECTION 9 of the bill.
 1-9     (2)  On page 4, strike the entirety of Subsection (b) of SECTION 9
1-10     of the bill.
1-11     (3)  On page 8, strike Subsection (d) of SECTION 14 of the bill.
1-12                            A BILL TO BE ENTITLED
1-13                                   AN ACT
1-14     relating to the hazardous substances law; providing penalties.
1-15           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-16           SECTION 1.  Section 501.001, Health and Safety Code, is
1-17     amended to read as follows:
1-18           Sec. 501.001.  DEFINITIONS.  In this chapter:
1-19                 (1)  "Board" means the Texas Board of Health.
1-20                 (2)  "Commerce" includes the operation of a business or
1-21     service establishment and other commerce in this state that is
1-22     subject to the jurisdiction of this state.
1-23                 (3)  "Commissioner" means the commissioner of public
1-24     health.
1-25                 (4)  "Department" means the Texas Department of Health.
1-26                 (5) [(4)]  "Label" means a display of written, printed,
1-27     or other graphic matter:
1-28                       (A)  on the immediate container, excluding the
1-29     package liner, of any substance; or
1-30                       (B)  directly on the article or on a tag or other
1-31     suitable material affixed to the article, if the article is
1-32     unpackaged or not packaged in an immediate container intended or
1-33     suitable for delivery to the ultimate consumer.
1-34                 (6) [(5)]  "Misbranded hazardous substance" means
1-35     either of the following that is not properly packaged or does not
1-36     bear a proper label required by this chapter:
1-37                       (A)  a hazardous substance; or
1-38                       (B)  a toy or other article intended for use by
1-39     children that bears or contains a hazardous substance in a manner
1-40     that is accessible by a child to whom the toy or other article is
1-41     entrusted, intended, or packaged in a form suitable for use in a
1-42     household or by children.
1-43           SECTION 2.  Subsections (a) and (d), Section 501.002, Health
1-44     and Safety Code, are amended to read as follows:
1-45           (a)  A hazardous substance is:
1-46                 (1)  a substance or mixture of substances that is
1-47     toxic, corrosive, extremely flammable, flammable, combustible, an
1-48     irritant, or a strong sensitizer, or that generates pressure
1-49     through decomposition, heat, or other means, if the substance or
1-50     mixture of substances may cause substantial personal injury or
1-51     substantial illness during or as a proximate result of any
1-52     customary or reasonably foreseeable handling or use, including
1-53     reasonably foreseeable ingestion by children;
1-54                 (2)  a toy or other article, other than clothing, that
1-55     is intended for use by a child and that presents an electrical,
1-56     mechanical, or thermal hazard; or
1-57                 (3)  a radioactive substance designated as a hazardous
1-58     substance under Section 501.003.
1-59           (d)  A substance or article is extremely flammable,
1-60     flammable, or combustible if it is defined as extremely flammable,
1-61     flammable, or combustible by rule of the board.  Unless the board
1-62     determines that the health, safety, and welfare of persons in this
1-63     state requires a different definition, the board shall define the
 2-1     terms as they are defined by the Federal Hazardous Substances Act
 2-2     (15 U.S.C. Section 1261 et seq.), as amended, and by federal
 2-3     regulations adopted under that Act.  Until the board adopts a
 2-4     different definition, the terms each have the meaning assigned by
 2-5     the Federal Hazardous Substances Act (15 U.S.C. Section 1261 et
 2-6     seq.) and by federal regulations adopted under that Act, as of
 2-7     September 1, 1999 [is flammable if it has a flash point of 80
 2-8     degrees Fahrenheit or less, as determined by the Tagliabue Open Cup
 2-9     Tester or other method as provided by Section 501.021].
2-10           SECTION 3.  Section 501.021, Health and Safety Code, is
2-11     amended to read as follows:
2-12           Sec. 501.021.  FLAMMABILITY STANDARDS; DETERMINATION OF
2-13     FLAMMABILITY.  (a)  The board by rule shall establish the methods
2-14     for determining the flammability of solids, fabrics, children's
2-15     clothing, household furnishings, and the contents of
2-16     self-pressurized containers that the board finds are generally
2-17     applicable to those materials or containers.
2-18           (b)  The board by rule shall establish flammability standards
2-19     for articles described by Subsection (a).  Unless the board
2-20     determines that the health, safety, and welfare of persons in this
2-21     state requires a different standard, the standards must conform to
2-22     standards prescribed by federal regulations adopted under the
2-23     federal Flammable Fabrics Act (15 U.S.C. Section 1191 et seq.), as
2-24     amended, the Federal Hazardous Substances Act (15 U.S.C. Section
2-25     1261 et seq.), as amended, and the federal Consumer Product Safety
2-26     Act (15 U.S.C. Section 2051 et seq.), as amended.  Until the board
2-27     adopts different standards, the flammability standards for articles
2-28     described by Subsection (a) are the standards prescribed by federal
2-29     regulations adopted under the federal Flammable Fabrics Act (15
2-30     U.S.C. Section 1191 et seq.), the Federal Hazardous Substances Act
2-31     (15 U.S.C. Section 1261 et seq.), and the federal Consumer Product
2-32     Safety Act (15 U.S.C. Section 2051 et seq.) as of September 1,
2-33     1999.
2-34           (c)  The department may obtain samples of articles described
2-35     by Subsection (a) and [shall] determine the flammability of the
2-36     [those] articles for compliance with applicable standards
2-37     established under this section.
2-38           SECTION 4.  Subsection (a), Section 501.022, Health and
2-39     Safety Code, is amended to read as follows:
2-40           (a)  The board by rule shall designate as a banned hazardous
2-41     substance any article, including [of] clothing intended for the use
2-42     of children, that is not properly packaged or that does not comply
2-43     with applicable flammability standards established by the board.
2-44     The board's determination that articles of clothing of a specified
2-45     range of sizes are intended for the use of a child 14 years of age
2-46     or younger is conclusive.
2-47           SECTION 5.  The heading for Section 501.023, Health and
2-48     Safety Code, is amended to read as follows:
2-49           Sec. 501.023.  GENERAL LABELING AND PACKAGING REQUIREMENTS.
2-50           SECTION 6.  Subchapter B, Chapter 501, Health and Safety
2-51     Code, is amended by adding Sections 501.0231, 501.0232, and
2-52     501.0233 to read as follows:
2-53           Sec. 501.0231.  LABELING OF CERTAIN TOYS AND GAMES.
2-54     (a)  Toys or games intended for use by children, including the
2-55     parts of those toys or games, shall be labeled in the manner
2-56     required by rule of the board.  Unless the board determines that
2-57     the health, safety, and welfare of persons in this state requires a
2-58     deviation from federal standards, the board's rules under this
2-59     subsection shall be consistent with federal guidelines and
2-60     regulations adopted under the Federal Hazardous Substances Act (15
2-61     U.S.C. Section 1261 et seq.), as amended.  Until the board adopts
2-62     rules under this subsection, the toys, games, and parts shall be
2-63     labeled in the manner required by federal guidelines and
2-64     regulations adopted under the Federal Hazardous Substances Act (15
2-65     U.S.C. Section 1261 et seq.) as of September 1, 1999.
2-66           (b)  Latex balloons, small balls, marbles, and any toy or
2-67     game that contains such a balloon, ball, or marble shall be labeled
2-68     in the manner required by rule of the board.  Unless the board
2-69     determines that the health, safety, and welfare of persons in this
 3-1     state requires a deviation from federal standards, the board's
 3-2     rules under this subsection shall be consistent with federal
 3-3     guidelines and regulations adopted under the Federal Hazardous
 3-4     Substances Act (15 U.S.C. Section 1261 et seq.), as amended.  Until
 3-5     the board adopts rules under this subsection, latex balloons, small
 3-6     balls, marbles, and any toy or game that contains such a balloon,
 3-7     ball, or marble shall be labeled in the manner required by federal
 3-8     guidelines and regulations adopted under the Federal Hazardous
 3-9     Substances Act (15 U.S.C. Section 1261 et seq.) as of September 1,
3-10     1999.
3-11           Sec. 501.0232.  REVIEW AND LABELING OF HAZARDOUS ART
3-12     MATERIALS.  (a)  Art materials shall be reviewed by a toxicologist.
3-13           (b)  Art materials shall be labeled in the manner required by
3-14     rule of the board.  Unless the board determines that the health,
3-15     safety, and welfare of persons in this state requires a deviation
3-16     from federal standards, the board's rules under this subsection
3-17     shall be consistent with the Federal Hazardous Substances Act (15
3-18     U.S.C. Section 1261 et seq.), as amended, and federal regulations
3-19     adopted under that Act.  Until the board adopts rules under this
3-20     subsection, art materials shall be labeled in the manner required
3-21     by the Federal Hazardous Substances Act (15 U.S.C. Section 1261 et
3-22     seq.), and federal regulations adopted under that Act, as of
3-23     September 1, 1999.
3-24           Sec. 501.0233.  PACKAGING OF HAZARDOUS SUBSTANCES.  Hazardous
3-25     substances shall be packaged in the manner required by special
3-26     packaging rules adopted by the board.  Unless the board determines
3-27     that the health, safety, and welfare of persons in this state
3-28     requires a deviation from federal standards, the board's rules
3-29     under this section shall be consistent with federal special
3-30     packaging regulations adopted under the federal Poison Prevention
3-31     Packaging Act of 1970 (15 U.S.C. Section 1471 et seq.), as amended.
3-32     Until the board adopts rules under this section, hazardous
3-33     substances shall be packaged in the manner required by federal
3-34     special packaging regulations adopted under the federal Poison
3-35     Prevention Packaging Act of 1970 (15 U.S.C. Section 1471 et seq.),
3-36     as of September 1, 1999.
3-37           SECTION 7.  Section 501.024, Health and Safety Code, is
3-38     amended to read as follows:
3-39           Sec. 501.024.  REGISTRATION.  (a)  A person who manufactures,
3-40     imports, or repacks a hazardous substance that is distributed in
3-41     this state or who distributes a hazardous substance in this state
3-42     under the person's private brand name shall have on file with the
3-43     department a registration statement as provided by this section.
3-44           (b)  The board by rule shall detail the registration
3-45     requirements and prescribe the contents of the registration
3-46     statement.
3-47           (c)  The person must file the registration statement with the
3-48     department [before]:
3-49                 (1)  before beginning business in this state as a
3-50     manufacturer, importer, repacker, or distributor of a hazardous
3-51     substance; and
3-52                 (2)  in each succeeding year that the person continues
3-53     the business in this state, not later than the anniversary of
3-54     [September 1 of each year after] the initial filing.
3-55           (d)  The initial registration statement and each annual
3-56     registration statement must be accompanied by a fee prescribed by
3-57     the board [of $150].
3-58           (e)  The department, after notice and hearing, may refuse to
3-59     register or may cancel, revoke, or suspend the registration of a
3-60     person who manufactures, imports, repacks, or distributes a
3-61     hazardous substance if the person fails to comply with the
3-62     requirements of this chapter [make timely payment of the fee].
3-63           (f)  A hazardous substance is subject to seizure and
3-64     disposition under Section 501.033 if the person who manufactures,
3-65     imports, repacks, or distributes the hazardous substance does not,
3-66     after notice by the department, register with the department and
3-67     make timely payment of the fee under this section.
3-68           (g)  This section does not apply to a retailer who
3-69     distributes a hazardous substance to the general public unless the
 4-1     retailer distributes a hazardous substance made to its
 4-2     specifications.
 4-3           SECTION 8.  Section 501.025, Health and Safety Code, is
 4-4     amended to read as follows:
 4-5           Sec. 501.025.  RULES.  The board may adopt reasonable rules
 4-6     necessary for the efficient administration and enforcement of this
 4-7     chapter.  Unless the board determines that the health, safety, and
 4-8     welfare of persons in this state requires a deviation from federal
 4-9     regulations, the [The] rules must conform with regulations adopted
4-10     under the Federal Hazardous Substances Act (15 U.S.C. Section 1261
4-11     et seq.), as amended, the federal Consumer Product Safety Act (15
4-12     U.S.C. Section 2051 et seq.), as amended, the federal Flammable
4-13     Fabrics Act (15 U.S.C. Section 1191 et seq.), as amended, and the
4-14     federal Poison Prevention Packaging Act of 1970 (15 U.S.C. Section
4-15     1471 et seq.), as amended, as applicable.
4-16           SECTION 9.  Subchapter B, Chapter 501, Health and Safety
4-17     Code, is amended by adding Section 501.026 to read as follows:
4-18           Sec. 501.026.  FEES.  (a)  The board by rule shall set
4-19     reasonable registration fees in an amount designed to recover not
4-20     more than the costs to the department of administering, monitoring
4-21     compliance with, enforcing, and conducting tests under this
4-22     chapter.
4-23           (b)  All registration fees received by the department under
4-24     this chapter shall be deposited to the credit of a dedicated
4-25     account in the general revenue fund.  Money in the account may be
4-26     appropriated only to the department to implement this chapter.
4-27           SECTION 10.  Subsection (b), Section 501.031, Health and
4-28     Safety Code, is amended to read as follows:
4-29           (b)  The officer, employee, or agent of the department may
4-30     obtain samples of any materials, packaging, [or] labeling, or
4-31     finished product.  [The officer, employee, or agent shall pay or
4-32     offer to pay the owner, operator, or agent in charge for a sample
4-33     and shall give a receipt describing a sample obtained.]
4-34           SECTION 11.  Subsection (b), Section 501.033, Health and
4-35     Safety Code, is amended to read as follows:
4-36           (b)  The department shall petition a [the] district court of
4-37     Travis County or of the county in which the article is located to
4-38     authorize the destruction of the article.  If the court determines
4-39     that the article is a banned or misbranded hazardous substance, the
4-40     department shall destroy the article, and the court shall impose
4-41     all court costs and fees and storage and other proper expenses
4-42     against the claimant of the article.  However, if the court finds
4-43     that misbranding occurred in good faith and can be corrected by
4-44     proper labeling, the court may direct that the article be delivered
4-45     to the claimant for proper labeling with the approval of the
4-46     department.
4-47           SECTION 12.  Section 501.034, Health and Safety Code, is
4-48     amended by adding Subsections (g) and (h) to read as follows:
4-49           (g)  A person may not manufacture, import, or repack a
4-50     hazardous substance that is to be distributed in this state or
4-51     otherwise distribute a hazardous substance in this state without
4-52     complying with Section 501.024.
4-53           (h)  A person may not package a hazardous substance in a new
4-54     or reused food, drug, or cosmetic container that is identifiable as
4-55     a food, drug, or cosmetic container by its labeling or other
4-56     identification.
4-57           SECTION 13.  Subsections (a) and (b), Section 501.035, Health
4-58     and Safety Code, are amended to read as follows:
4-59           (a)  A person commits an offense if the person
4-60     [intentionally, knowingly, or recklessly] violates this chapter or
4-61     a rule adopted under this chapter.
4-62           (b)  An offense under this section is a [Class B misdemeanor
4-63     unless it is shown on the trial of the offense that the person's
4-64     intent was to defraud another, in which event the offense is a]
4-65     Class A misdemeanor.
4-66           SECTION 14.  Subchapter C, Chapter 501, Health and Safety
4-67     Code, is amended by adding Sections 501.036 through 501.042 to read
4-68     as follows:
4-69           Sec. 501.036.  INJUNCTION.  (a)  If it appears that a person
 5-1     has violated, is violating, or is threatening to violate this
 5-2     chapter or a rule adopted or order issued under this chapter, the
 5-3     commissioner may request the attorney general or a district,
 5-4     county, or city attorney of the county or municipality in which the
 5-5     violation has occurred, is occurring, or may occur to institute a
 5-6     civil suit for:
 5-7                 (1)  an order enjoining the violation or an order
 5-8     directing compliance; or
 5-9                 (2)  a permanent or temporary injunction, restraining
5-10     order, or other appropriate order if the department shows that the
5-11     person has engaged in, is engaging in, or is about to engage in a
5-12     violation of this chapter or a rule adopted or order issued under
5-13     this chapter.
5-14           (b)  Venue for a suit brought under this section is in the
5-15     county or municipality in which the violation occurred or in Travis
5-16     County.
5-17           (c)  The commissioner and either the attorney general or the
5-18     district, county, or city attorney, as appropriate, may each
5-19     recover from the violator reasonable expenses incurred in obtaining
5-20     injunctive relief under this section, including investigative
5-21     costs, court costs, reasonable attorney's fees, witness fees, and
5-22     deposition expenses.  Expenses recovered by the commissioner may be
5-23     appropriated only to the department to administer and enforce this
5-24     chapter.  Expenses recovered by the attorney general may be
5-25     appropriated only to the attorney general.
5-26           Sec. 501.037.  RECALL ORDERS.  (a)  In conjunction with the
5-27     detention of an article under Section 501.033, the commissioner may
5-28     order that a hazardous substance be recalled from commerce.
5-29           (b)  The commissioner's recall order may require the articles
5-30     to be removed to one or more secure areas approved by the
5-31     commissioner or an authorized agent of the commissioner.
5-32           (c)  The recall order must be in writing and signed by the
5-33     commissioner.
5-34           (d)  The recall order may be issued before or in conjunction
5-35     with the affixing of the tag or other appropriate marking as
5-36     provided by Section 501.033.
5-37           (e)  The recall order is effective until the order:
5-38                 (1)  expires on its own terms;
5-39                 (2)  is withdrawn by the commissioner; or
5-40                 (3)  is reversed by a court in an order denying
5-41     destruction under Section 501.033.
5-42           (f)  The claimant of the articles or the claimant's agent
5-43     shall pay the costs of the removal and storage of the articles
5-44     removed.
5-45           (g)  If the claimant or the claimant's agent does not
5-46     implement the recall order in a timely manner, the commissioner may
5-47     provide for the recall of the articles.  The costs of the recall
5-48     shall be assessed against the claimant of the articles or the
5-49     claimant's agent.
5-50           (h)  The commissioner may request the attorney general to
5-51     bring an action in a district court of Travis County to recover
5-52     costs of the recall.  In a judgment in favor of the state, the
5-53     court may award costs, attorney's fees, and court costs related to
5-54     the recall together with interest on those costs from the time an
5-55     expense was incurred through the date the department is reimbursed.
5-56           Sec. 501.038.  ADMINISTRATIVE PENALTY.  (a)  The department
5-57     may assess an administrative penalty against a person who violates
5-58     this chapter or a rule adopted or order issued under this chapter.
5-59           (b)  In determining the amount of the penalty, the department
5-60     shall consider:
5-61                 (1)  the person's history of previous violations;
5-62                 (2)  the seriousness of the violations;
5-63                 (3)  the hazard to the health and safety of the public;
5-64                 (4)  the person's demonstrated good faith; and
5-65                 (5)  other matters as justice may require.
5-66           (c)  The penalty may not exceed $25,000 a day for each
5-67     violation.
5-68           (d)  Each day of a continuing violation constitutes a
5-69     separate violation.
 6-1           (e)  A proceeding for the assessment of an administrative
 6-2     penalty under this chapter is a contested case under Chapter 2001,
 6-3     Government Code.
 6-4           Sec. 501.039.  ADMINISTRATIVE PENALTY: NOTICE; REQUEST FOR
 6-5     HEARING.  (a)  If, after investigation of a possible violation of
 6-6     this chapter or a rule adopted or order issued under this chapter
 6-7     and the facts surrounding that possible violation, the department
 6-8     determines that a violation has occurred, the department shall give
 6-9     written notice of the violation to the person alleged to have
6-10     committed the violation.  The notice shall include:
6-11                 (1)  a brief summary of the alleged violation;
6-12                 (2)  a statement of the amount of the proposed penalty
6-13     based on the factors listed in Section 501.038; and
6-14                 (3)  a statement of the person's right to a hearing on
6-15     the occurrence of the violation, the amount of the penalty, or both
6-16     the occurrence of the violation and the amount of the penalty.
6-17           (b)  Not later than the 20th day after the date the notice is
6-18     received, the person notified may accept the determination of the
6-19     department made under this section, including the amount of the
6-20     proposed penalty, or make a written request for a hearing on that
6-21     determination.
6-22           (c)  If the person accepts the determination of the
6-23     department, the commissioner or the commissioner's designee shall
6-24     issue an order approving the determination and ordering that the
6-25     person pay the proposed penalty.
6-26           Sec. 501.040.  ADMINISTRATIVE PENALTY: HEARING; ORDER.
6-27     (a)  If the person notified under Section 501.039 requests a
6-28     hearing, the department shall:
6-29                 (1)  set the matter for a hearing;
6-30                 (2)  give written notice of the time and place of the
6-31     hearing to the person; and
6-32                 (3)  designate a hearings examiner to conduct the
6-33     hearing.
6-34           (b)  The hearings examiner shall make findings of fact and
6-35     conclusions of law and shall promptly issue to the commissioner or
6-36     the commissioner's designee a proposal for decision as to the
6-37     occurrence of the violation and a recommendation as to the amount
6-38     of the proposed penalty, if a penalty is determined to be
6-39     warranted.
6-40           (c)  Based on the findings of fact and conclusions of law and
6-41     the recommendations of the hearings examiner, the commissioner or
6-42     the commissioner's designee by order may find that a violation has
6-43     occurred and may assess a penalty or may find that no violation has
6-44     occurred.
6-45           Sec. 501.041.  NOTICE AND PAYMENT OF ADMINISTRATIVE PENALTY;
6-46     JUDICIAL REVIEW; REFUND.  (a)  The department shall give notice of
6-47     the order under Section 501.040 to the person affected by the
6-48     order.  The notice must include:
6-49                 (1)  separate statements of the findings of fact and
6-50     conclusions of law;
6-51                 (2)  the amount of any penalty assessed; and
6-52                 (3)  a statement of the right of the person to judicial
6-53     review of the order.
6-54           (b)  Not later than the 30th day after the date the decision
6-55     is final as provided by Chapter 2001, Government Code, the person
6-56     shall:
6-57                 (1)  pay the penalty;
6-58                 (2)  pay the penalty and file a petition for judicial
6-59     review contesting the occurrence of the violation, the amount of
6-60     the penalty, or both the occurrence of the violation and the amount
6-61     of the penalty; or
6-62                 (3)  without paying the penalty, file a petition for
6-63     judicial review contesting the occurrence of the violation, the
6-64     amount of the penalty, or both the occurrence of the violation and
6-65     the amount of the penalty.
6-66           (c)  Within the 30-day period, a person who acts under
6-67     Subsection (b)(3) may:
6-68                 (1)  stay enforcement of the penalty by:
6-69                       (A)  paying the penalty to the court for
 7-1     placement in an escrow account; or
 7-2                       (B)  giving to the court a supersedeas bond that
 7-3     is approved by the court for the amount of the penalty and that is
 7-4     effective until all judicial review of the order is final; or
 7-5                 (2)  request the court to stay enforcement of the
 7-6     penalty by:
 7-7                       (A)  filing with the court the person's sworn
 7-8     affidavit stating that the person is financially unable to pay the
 7-9     amount of the penalty and is financially unable to give the
7-10     supersedeas bond; and
7-11                       (B)  sending a copy of the affidavit to the
7-12     department by certified mail.
7-13           (d)  If the department receives a copy of an affidavit under
7-14     Subsection (c)(2), the department may file with the court, within
7-15     five business days after the date the copy is received, a contest
7-16     to the affidavit.  The court shall hold a hearing on the facts
7-17     alleged in the affidavit as soon as practicable and shall stay the
7-18     enforcement of the penalty on finding that the alleged facts are
7-19     true.  The person who files an affidavit has the burden of proving
7-20     that the person is financially unable to pay the penalty or give a
7-21     supersedeas bond.
7-22           (e)  If the person does not pay the penalty and the
7-23     enforcement of the penalty is not stayed, the department may refer
7-24     the matter to the attorney general for collection of the penalty.
7-25           (f)  Judicial review of an order issued under Section
7-26     501.040:
7-27                 (1)  is instituted by filing a petition as provided by
7-28     Subchapter G, Chapter 2001, Government Code; and
7-29                 (2)  is under the substantial evidence rule.
7-30           (g)  If the court sustains the occurrence of the violation,
7-31     the court may uphold or reduce the amount of the penalty and order
7-32     the person to pay the full or reduced amount of the penalty.  If
7-33     the court does not sustain the occurrence of the violation, the
7-34     court shall order that no penalty is owed.
7-35           (h)  When the judgment of the court becomes final, the court
7-36     shall proceed under this subsection.  If the person paid the amount
7-37     of the penalty under Subsection (b)(2) and if that amount is
7-38     reduced or is not upheld by the court, the court shall order that
7-39     the department pay the appropriate amount plus accrued interest to
7-40     the person.  The rate of the interest is the rate charged on loans
7-41     to depository institutions by the New York Federal Reserve Bank,
7-42     and the interest shall be paid for the period beginning on the date
7-43     the penalty was paid and ending on the date the penalty is
7-44     remitted.  If the person paid the penalty under Subsection
7-45     (c)(1)(A) or gave a supersedeas bond and if the amount of the
7-46     penalty is not upheld by the court, the court shall order the
7-47     release of the escrow account or bond.  If the person paid the
7-48     penalty under Subsection (c)(1)(A) and the amount of the penalty is
7-49     reduced, the court shall order that the amount of the penalty be
7-50     paid to the department from the escrow account and that the
7-51     remainder of the account be released.  If the person gave a
7-52     supersedeas bond and if the amount of the penalty is reduced, the
7-53     court shall order the release of the bond after the person pays the
7-54     amount.
7-55           Sec. 501.042.  RECOVERY OF COSTS.  (a)  The department may
7-56     assess reasonable expenses and costs against a person in an
7-57     administrative hearing if, as a result of the hearing, the person's
7-58     registration is denied, suspended, or revoked or if administrative
7-59     penalties are assessed against the person.  The person shall pay
7-60     expenses and costs assessed under this subsection not later than
7-61     the 30th day after the date the order of the commissioner or the
7-62     commissioner's designee requiring the payment of expenses and costs
7-63     is final.  The department may refer the matter to the attorney
7-64     general for collection of the expenses and costs.
7-65           (b)  If the attorney general brings an action against a
7-66     person to enforce an administrative penalty assessed under this
7-67     chapter and the person is found liable for the administrative
7-68     penalty, the attorney general may recover, on behalf of the
7-69     attorney general and the department, reasonable expenses and costs.
 8-1           (c)  For purposes of this section, "reasonable expenses and
 8-2     costs" include expenses incurred by the department and the attorney
 8-3     general in the investigation, initiation, or prosecution of an
 8-4     action, including reasonable investigative costs, court costs,
 8-5     attorney's fees, witness fees, and deposition expenses.
 8-6           (d)  Expenses recovered by the department under this section
 8-7     may be appropriated only to the department to administer and
 8-8     enforce this chapter.  Expenses recovered by the attorney general
 8-9     under this section may be appropriated only to the attorney
8-10     general.
8-11           SECTION 15.  This Act takes effect September 1, 1999.
8-12           SECTION 16.  (a)  A change in law made by this Act relating
8-13     to the criminal, civil, or administrative enforcement of Chapter
8-14     501, Health and Safety Code, applies only to an offense under or
8-15     other violation of Chapter 501, Health and Safety Code, that occurs
8-16     on or after the effective date of this Act, including a continuing
8-17     offense or continuing violation to the extent that it continues on
8-18     or after the effective date of this Act.
8-19           (b)  An offense under or other violation of Chapter 501,
8-20     Health and Safety Code, that occurs before the effective date of
8-21     this Act is covered by the law relating to the criminal, civil, and
8-22     administrative enforcement of Chapter 501, Health and Safety Code,
8-23     in effect when the violation occurred, and the former law is
8-24     continued in effect for that purpose.
8-25           (c)  For purposes of this section, a criminal offense is
8-26     committed before the effective date of this Act if any element of
8-27     the offense occurs before that date.
8-28           SECTION 17.  The importance of this legislation and the
8-29     crowded condition of the calendars in both houses create an
8-30     emergency and an imperative public necessity that the
8-31     constitutional rule requiring bills to be read on three several
8-32     days in each house be suspended, and this rule is hereby suspended.
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