By:  Moncrief                                         S.B. No. 1046
                                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 not
1-23     apply to persons engaged in business as wholesale or retail
1-24     distributors of consumer commodities except to the extent that such
1-25     persons:
 2-1                       (1)  are engaged in the packaging or labeling of
 2-2     such commodities; or
 2-3                       (2)  prescribe or specify by any means the manner
 2-4     in which such commodities are packaged or labeled;
 2-5                 (e)  the introduction or delivery for introduction into
 2-6     commerce of any article in violation of Section 431.084, 431.114,
 2-7     or 431.115;
 2-8                 (f)  the dissemination of any false advertisement;
 2-9                 (g)  the refusal to permit entry or inspection, or to
2-10     permit the taking of a sample or to permit access to or copying of
2-11     any record as authorized by Sections 431.042-431.044; or the
2-12     failure to establish or maintain any record or make any report
2-13     required under Section 512(j), (l), or (m) of the federal Act, or
2-14     the refusal to permit access to or verification or copying of any
2-15     such required record;
2-16                 (h)  the manufacture within this state of any food,
2-17     drug, device, or cosmetic that is adulterated or misbranded;
2-18                 (i)  the giving of a guaranty or undertaking referred
2-19     to in Section 431.059, which guaranty or undertaking is false,
2-20     except by a person who relied on a guaranty or undertaking to the
2-21     same effect signed by, and containing the name and address of the
2-22     person residing in this state from whom the person received in good
2-23     faith the food, drug, device, or cosmetic; or the giving of a
2-24     guaranty or undertaking referred to in Section 431.059, which
2-25     guaranty or undertaking is false;
2-26                 (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
 4-1     acquired under the authority of this chapter concerning any method
 4-2     or process that as a trade secret is entitled to protection;
 4-3                 (n)  the using, on the labeling of any drug or device
 4-4     or in any advertising relating to such drug or device, of any
 4-5     representation or suggestion that approval of an application with
 4-6     respect to such drug or device is in effect under Section 431.114
 4-7     or Section 505, 515, or 520(g) of the federal Act, as the case may
 4-8     be, or that such drug or device complies with the provisions of
 4-9     such sections;
4-10                 (o)  the using, in labeling, advertising or other sales
4-11     promotion of any reference to any report or analysis furnished in
4-12     compliance with Sections 431.042-431.044 or Section 704 of the
4-13     federal Act;
4-14                 (p)  in the case of a prescription drug distributed or
4-15     offered for sale in this state, the failure of the manufacturer,
4-16     packer, or distributor of the drug to maintain for transmittal, or
4-17     to transmit, to any practitioner licensed by applicable law to
4-18     administer such drug who makes written request for information as
4-19     to such drug, true and correct copies of all printed matter that is
4-20     required to be included in any package in which that drug is
4-21     distributed or sold, or such other printed matter as is approved
4-22     under the federal Act.  Nothing in this subsection shall be
4-23     construed to exempt any person from any labeling requirement
4-24     imposed by or under other provisions of this chapter;
4-25                 (q)(1)  placing or causing to be placed on any drug or
4-26     device or container of any drug or device, with intent to defraud,
 5-1     the trade name or other identifying mark, or imprint of another or
 5-2     any likeness of any of the foregoing;
 5-3                       (2)  selling, dispensing, disposing of or causing
 5-4     to be sold, dispensed, or disposed of, or concealing or keeping in
 5-5     possession, control, or custody, with intent to sell, dispense, or
 5-6     dispose of, any drug, device, or any container of any drug or
 5-7     device, with knowledge that the trade name or other identifying
 5-8     mark or imprint of another or any likeness of any of the foregoing
 5-9     has been placed thereon in a manner prohibited by Subdivision (1)
5-10     of this subsection; or
5-11                       (3)  making, selling, disposing of, causing to be
5-12     made, sold, or disposed of, keeping in possession, control, or
5-13     custody, or concealing with intent to defraud any punch, die,
5-14     plate, stone, or other thing designed to print, imprint, or
5-15     reproduce the trademark, trade name, or other identifying mark,
5-16     imprint, or device of another or any likeness of any of the
5-17     foregoing on any drug or container or labeling of any drug or
5-18     container so as to render such drug a counterfeit drug;
5-19                 (r)  dispensing or causing to be dispensed a different
5-20     drug in place of the drug ordered or prescribed without the express
5-21     permission in each case of the person ordering or prescribing;
5-22                 (s)  the failure to register in accordance with Section
5-23     510 of the federal Act, the failure to provide any information
5-24     required by Section 510(j) or (k) of the federal Act, or the
5-25     failure to provide a notice required by Section 510(j)(2) of the
5-26     federal Act;
 6-1                 (t)(1)  the failure or refusal to:
 6-2                             (A)  comply with any requirement prescribed
 6-3     under Section 518 or 520(g) of the federal Act; or
 6-4                             (B)  furnish any notification or other
 6-5     material or information required by or under Section 519 or 520(g)
 6-6     of the federal Act;
 6-7                       (2)  with respect to any device, the submission
 6-8     of any report that is required by or under this chapter that is
 6-9     false or misleading in any material respect;
6-10                 (u)  the movement of a device in violation of an order
6-11     under Section 304(g) of the federal Act or the removal or
6-12     alteration of any mark or label required by the order to identify
6-13     the device as detained;
6-14                 (v)  the failure to provide the notice required by
6-15     Section 412(b) or 412(c), the failure to make the reports required
6-16     by Section 412(d)(1)(B), or the failure to meet the requirements
6-17     prescribed under Section 412(d)(2) of the federal Act;
6-18                 (w)  the acceptance by a person of an unused
6-19     prescription or drug, in whole or in part, for the purpose of
6-20     resale, after the prescription or drug has been originally
6-21     dispensed, or sold;
6-22                 (x)  engaging in the wholesale distribution of drugs or
6-23     operating as a distributor or manufacturer of devices in this state
6-24     without filing a licensing statement with the commissioner as
6-25     required by Section 431.202 or having a license as required by
6-26     Section 431.272, as applicable;
 7-1                 (y)  engaging in the manufacture of food in this state
 7-2     or operating as a food wholesaler in this state without having a
 7-3     license [first registering with the department] as required by
 7-4     Section 431.222; or
 7-5                 (z)  unless approved by the United States Food and Drug
 7-6     Administration pursuant to the federal Act, the sale, delivery,
 7-7     holding, or offering for sale of a self-testing kit designed to
 7-8     indicate whether a person has a human immunodeficiency virus
 7-9     infection, acquired immune deficiency syndrome, or a related
7-10     disorder or condition.
7-11           SECTION 2.  Subsection (a), Section 431.045, Health and
7-12     Safety Code, is amended to read as follows:
7-13           (a)  The commissioner or a person designated by the
7-14     commissioner may issue an emergency order, either mandatory or
7-15     prohibitory in nature, in relation to the manufacture or
7-16     distribution of a food, drug, device, or cosmetic in the
7-17     department's jurisdiction if the commissioner or the person
7-18     designated by the commissioner determines that:
7-19                 (1)  the manufacture or distribution of the food, drug,
7-20     device, or cosmetic creates or poses an immediate and serious
7-21     threat to human life or health; and
7-22                 (2)  other procedures available to the department to
7-23     remedy or prevent the occurrence of the situation will result in
7-24     unreasonable delay.
7-25           SECTION 3.  Section 431.2211, Health and Safety Code, is
7-26     amended to read as follows:
 8-1           Sec. 431.2211.  APPLICATION OF SUBCHAPTER.  (a)  A person is
 8-2     not required to hold a license under this [This] subchapter if the
 8-3     person is [does not apply to]:
 8-4                 (1)  a person, firm, or corporation that only harvests,
 8-5     packages, washes, or ships raw fruits or vegetables;
 8-6                 (2)  an individual who only sells prepackaged
 8-7     nonperishable foods, including dietary supplements, from a private
 8-8     home as a direct seller; or
 8-9                 (3)  a person who holds a license under Chapter 432 and
8-10     who only engages in conduct within the scope of that license.
8-11           (b)  An exemption from the licensing requirements prescribed
8-12     by this subchapter does not exempt the person from other provisions
8-13     prescribed by this subchapter or from rules adopted by the board to
8-14     administer and enforce those provisions.
8-15           (c)  This subchapter does not apply to [engaged solely in]
8-16     the distribution of [alcoholic] beverages in sealed containers by
8-17     holders of licenses or permits issued under Chapter 19, 20, 21, 23,
8-18     64, or 65, Alcoholic Beverage Code.  The provisions of the
8-19     Alcoholic Beverage Code prevail to the extent of any conflict with
8-20     this chapter.
8-21           SECTION 4.  This Act takes effect September 1, 2001.