By Burnam H.B. No. 1673 77R1943 DLF-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the salvage of certain distressed merchandise. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Chapter 432, Health and Safety Code, is amended by 1-5 adding Sections 432.0035 and 432.0115 to read as follows: 1-6 Sec. 432.0035. DISTRESSED MERCHANDISE DEFINED. (a) A food, 1-7 drug, or cosmetic is distressed merchandise for purposes of this 1-8 chapter only if the food, drug, or cosmetic: 1-9 (1) has lost its label or is otherwise unidentified; 1-10 (2) has been subjected to prolonged or improper 1-11 storage; 1-12 (3) has been subjected for any reason to abnormal 1-13 environmental conditions, including temperature extremes, humidity, 1-14 smoke, water, fumes, pressure, or radiation; or 1-15 (4) may have been rendered unsafe or unsuitable for 1-16 human consumption or use for any reason other than those specified 1-17 by this subsection. 1-18 (b) A device is distressed merchandise for purposes of this 1-19 chapter only if the device: 1-20 (1) subject to Subsection (c), is misbranded or 1-21 mislabeled for purposes of: 1-22 (A) the Federal Food, Drug, and Cosmetic Act (21 1-23 U.S.C. Section 301 et seq.), as amended, and federal regulations 1-24 adopted under that Act; or 2-1 (B) the fair packaging and labeling program 2-2 established under 15 U.S.C. Section 1451 et seq., as amended, and 2-3 federal regulations adopted under that law; or 2-4 (2) has been subjected to conditions that render the 2-5 device unsuitable for use according to the original manufacturer's 2-6 published recommendations or specifications. 2-7 (c) A device is not distressed merchandise under Subsection 2-8 (b)(1) unless the device is offered for sale or distribution to a 2-9 person who does not hold a license under this chapter. 2-10 Sec. 432.0115. TREATMENT OF DEVICE AS DISTRESSED 2-11 MERCHANDISE. Before the department may treat a device in the 2-12 possession of a person licensed under this chapter as distressed 2-13 merchandise under this chapter, the department must provide to the 2-14 person a statement of proof that establishes that the device is 2-15 distressed merchandise. 2-16 SECTION 2. Section 432.003(6), Health and Safety Code, is 2-17 repealed. 2-18 SECTION 3. This Act takes effect September 1, 2001, and 2-19 applies only to the operations of a salvage broker, salvage 2-20 establishment, salvage operator, or salvage warehouse on or after 2-21 that date. The operations of a salvage broker, salvage 2-22 establishment, salvage operator, or salvage warehouse before 2-23 September 1, 2001, are governed by the law as it existed before the 2-24 effective date of this Act, and that law is continued in effect for 2-25 that purpose.