By Capelo                                             H.B. No. 3601
         77R4714 MCK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the enforcement powers of the Texas Department of
 1-3     Health over food, drugs, devices, and cosmetics.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 431.021, Health and Safety Code, is
 1-6     amended to read as follows:
 1-7           Sec. 431.021.  PROHIBITED ACTS. The following acts and the
 1-8     causing of the following acts within this state are unlawful and
 1-9     prohibited:
1-10                 (a)  the introduction or delivery for introduction into
1-11     commerce of any food, drug, device, or cosmetic that is adulterated
1-12     or misbranded;
1-13                 (b)  the adulteration or misbranding of any food, drug,
1-14     device, or cosmetic in commerce;
1-15                 (c)  the receipt in commerce of any food, drug, device,
1-16     or cosmetic that is adulterated or misbranded, and the delivery or
1-17     proffered delivery thereof for pay or otherwise;
1-18                 (d)  the distribution in commerce of a consumer
1-19     commodity, if such commodity is contained in a package, or if there
1-20     is affixed to that commodity a label that does not conform to the
1-21     provisions of this chapter and of rules adopted under the authority
1-22     of this chapter;  provided, however, that this prohibition shall
1-23     not apply to persons engaged in business as wholesale or retail
1-24     distributors of consumer commodities except to the extent that such
 2-1     persons:
 2-2                       (1)  are engaged in the packaging or labeling of
 2-3     such commodities; or
 2-4                       (2)  prescribe or specify by any means the manner
 2-5     in which such commodities are packaged or labeled;
 2-6                 (e)  the introduction or delivery for introduction into
 2-7     commerce of any article in violation of Section 431.084, 431.114,
 2-8     or 431.115;
 2-9                 (f)  the dissemination of any false advertisement;
2-10                 (g)  the refusal to permit entry or inspection, or to
2-11     permit the taking of a sample or to permit access to or copying of
2-12     any record as authorized by Sections 431.042-431.044; or the
2-13     failure to establish or maintain any record or make any report
2-14     required under Section 512(j), (l), or (m) of the federal Act, or
2-15     the refusal to permit access to or verification or copying of any
2-16     such required record;
2-17                 (h)  the manufacture within this state of any food,
2-18     drug, device, or cosmetic that is adulterated or misbranded;
2-19                 (i)  the giving of a guaranty or undertaking referred
2-20     to in Section 431.059, which guaranty or undertaking is false,
2-21     except by a person who relied on a guaranty or undertaking to the
2-22     same effect signed by, and containing the name and address of the
2-23     person residing in this state from whom the person received in good
2-24     faith the food, drug, device, or cosmetic; or the giving of a
2-25     guaranty or undertaking referred to in Section 431.059, which
2-26     guaranty or undertaking is false;
2-27                 (j)  the use, removal, or disposal of a detained or
 3-1     embargoed article in violation of Section 431.048;
 3-2                 (k)  the alteration, mutilation, destruction,
 3-3     obliteration, or removal of the whole or any part of the labeling
 3-4     of, or the doing of any other act with respect to a food, drug,
 3-5     device, or cosmetic, if such act is done while such article is held
 3-6     for sale after shipment in commerce and results in such article
 3-7     being adulterated or misbranded;
 3-8                 (l)(1)  forging, counterfeiting, simulating, or falsely
 3-9     representing, or without proper authority using any mark, stamp,
3-10     tag, label, or other identification device authorized or required
3-11     by rules adopted under this chapter or the regulations promulgated
3-12     under the provisions of the federal Act;
3-13                       (2)  making, selling, disposing of, or keeping in
3-14     possession, control, or custody, or concealing any punch, die,
3-15     plate, stone, or other thing designed to print, imprint, or
3-16     reproduce the trademark, trade name, or other identifying mark,
3-17     imprint, or device of another or any likeness of any of the
3-18     foregoing on any drug or container or labeling thereof so as to
3-19     render such drug a counterfeit drug;
3-20                       (3)  the doing of any act that causes a drug to
3-21     be a counterfeit drug, or the sale or dispensing, or the holding
3-22     for sale or dispensing, of a counterfeit drug;
3-23                 (m)  the using by any person to the person's own
3-24     advantage, or revealing, other than to the commissioner, an
3-25     authorized agent, a health authority or to the courts when relevant
3-26     in any judicial proceeding under this chapter, of any information
3-27     acquired under the authority of this chapter concerning any method
 4-1     or process that as a trade secret is entitled to protection;
 4-2                 (n)  the using, on the labeling of any drug or device
 4-3     or in any advertising relating to such drug or device, of any
 4-4     representation or suggestion that approval of an application with
 4-5     respect to such drug or device is in effect under Section 431.114
 4-6     or Section 505, 515, or 520(g) of the federal Act, as the case may
 4-7     be, or that such drug or device complies with the provisions of
 4-8     such sections;
 4-9                 (o)  the using, in labeling, advertising or other sales
4-10     promotion of any reference to any report or analysis furnished in
4-11     compliance with Sections 431.042-431.044 or Section 704 of the
4-12     federal Act;
4-13                 (p)  in the case of a prescription drug distributed or
4-14     offered for sale in this state, the failure of the manufacturer,
4-15     packer, or distributor of the drug to maintain for transmittal, or
4-16     to transmit, to any practitioner licensed by applicable law to
4-17     administer such drug who makes written request for information as
4-18     to such drug, true and correct copies of all printed matter that is
4-19     required to be included in any package in which that drug is
4-20     distributed or sold, or such other printed matter as is approved
4-21     under the federal Act.  Nothing in this subsection shall be
4-22     construed to exempt any person from any labeling requirement
4-23     imposed by or under other provisions of this chapter;
4-24                 (q)(1)  placing or causing to be placed on any drug or
4-25     device or container of any drug or device, with intent to defraud,
4-26     the trade name or other identifying mark, or imprint of another or
4-27     any likeness of any of the foregoing;
 5-1                       (2)  selling, dispensing, disposing of or causing
 5-2     to be sold, dispensed, or disposed of, or concealing or keeping in
 5-3     possession, control, or custody, with intent to sell, dispense, or
 5-4     dispose of, any drug, device, or any container of any drug or
 5-5     device, with knowledge that the trade name or other identifying
 5-6     mark or imprint of another or any likeness of any of the foregoing
 5-7     has been placed thereon in a manner prohibited by Subdivision (1)
 5-8     of this subsection; or
 5-9                       (3)  making, selling, disposing of, causing to be
5-10     made, sold, or disposed of, keeping in possession, control, or
5-11     custody, or concealing with intent to defraud any punch, die,
5-12     plate, stone, or other thing designed to print, imprint, or
5-13     reproduce the trademark, trade name, or other identifying mark,
5-14     imprint, or device of another or any likeness of any of the
5-15     foregoing on any drug or container or labeling of any drug or
5-16     container so as to render such drug a counterfeit drug;
5-17                 (r)  dispensing or causing to be dispensed a different
5-18     drug in place of the drug ordered or prescribed without the express
5-19     permission in each case of the person ordering or prescribing;
5-20                 (s)  the failure to register in accordance with Section
5-21     510 of the federal Act, the failure to provide any information
5-22     required by Section 510(j) or (k) of the federal Act, or the
5-23     failure to provide a notice required by Section 510(j)(2) of the
5-24     federal Act;
5-25                 (t)(1)  the failure or refusal to:
5-26                             (A)  comply with any requirement prescribed
5-27     under Section 518 or 520(g) of the federal Act; or
 6-1                             (B)  furnish any notification or other
 6-2     material or information required by or under Section 519 or 520(g)
 6-3     of the federal Act;
 6-4                       (2)  with respect to any device, the submission
 6-5     of any report that is required by or under this chapter that is
 6-6     false or misleading in any material respect;
 6-7                 (u)  the movement of a device in violation of an order
 6-8     under Section 304(g) of the federal Act or the removal or
 6-9     alteration of any mark or label required by the order to identify
6-10     the device as detained;
6-11                 (v)  the failure to provide the notice required by
6-12     Section 412(b) or 412(c), the failure to make the reports required
6-13     by Section 412(d)(1)(B), or the failure to meet the requirements
6-14     prescribed under Section 412(d)(2) of the federal Act;
6-15                 (w)  the acceptance by a person of an unused
6-16     prescription or drug, in whole or in part, for the purpose of
6-17     resale, after the prescription or drug has been originally
6-18     dispensed, or sold;
6-19                 (x)  engaging in the wholesale distribution of drugs or
6-20     operating as a distributor or manufacturer of devices in this state
6-21     without filing a licensing statement with the commissioner as
6-22     required by Section 431.202 or having a license as required by
6-23     Section 431.272, as applicable;
6-24                 (y)  engaging in the manufacture of food in this state
6-25     or operating as a food wholesaler in this state without having a
6-26     license [first registering with the department] as required by
6-27     Section 431.222; or
 7-1                 (z)  unless approved by the United States Food and Drug
 7-2     Administration pursuant to the federal Act, the sale, delivery,
 7-3     holding, or offering for sale of a self-testing kit designed to
 7-4     indicate whether a person has a human immunodeficiency virus
 7-5     infection, acquired immune deficiency syndrome, or a related
 7-6     disorder or condition.
 7-7           SECTION 2. Section 431.045(a), Health and Safety Code, is
 7-8     amended to read as follows:
 7-9           (a)  The commissioner or a person designated by the
7-10     commissioner may issue an emergency order, either mandatory or
7-11     prohibitory in nature, in relation to the manufacture or
7-12     distribution of a food, drug, device, or cosmetic in the
7-13     department's jurisdiction if the commissioner or the person
7-14     designated by the commissioner determines that:
7-15                 (1)  the manufacture or distribution of the food, drug,
7-16     device, or cosmetic creates or poses an immediate and serious
7-17     threat to human life or health; and
7-18                 (2)  other procedures available to the department to
7-19     remedy or prevent the occurrence of the situation will result in
7-20     unreasonable delay.
7-21           SECTION 3. This Act takes effect September 1, 2001.