SRC-VRA H.B. 3542 78(R)    BILL ANALYSIS


Senate Research CenterH.B. 3542
78R10403 YDB-DBy: Laubenberg (Carona)
Administration
5/15/2003
Engrossed

DIGEST AND PURPOSE 

Currently, the Texas Department of Health cannot prevent adulterated or
misbranded dairy products from reaching consumers without suspending the
certificate of a milk and dairy products manufacturer or distributor.
Other food and drug safety programs have additional enforcement tools.
H.B. 3542 establishes other enforcement tools for manufacturers and
distributors of milk and dairy products.  

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Department of
Health in SECTION 5 (Section 435.012, Health and Safety Code) of this
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter A, Chapter 431, Health and Safety Code, by
adding Section 431.010, as follows: 

Sec. 431.010.  APPLICABILITY OF CHAPTER TO MILK AND MILK PRODUCTS. (a)
Provides that this chapter applies to milk or a milk product subject to
Chapter 435 (Dairy Products).  Provides that milk or a milk product is a
food for purposes of this chapter. 

(b) Provides that this chapter applies to the conduct of a person who
holds a permit under Chapter 435, except as provided by Subsection (c). 

(c) Provides that a person who holds a permit under Chapter 435 related to
the processing, producing, bottling, receiving, transferring, or
transporting of Grade A milk or milk products and who is engaging in
conduct within the scope of that permit is not required to hold a license
as a food manufacturer or food wholesaler under Subchapter J. 

SECTION 2.  Amends Section 431.2211, Health and Safety Code, by adding
Subsection (a-2) to provide that a person is not required to hold a
license under this subchapter if the person holds a permit under Chapter
435 (Dairy Products) related to the processing, producing, bottling,
receiving, transferring, or transporting of Grade A milk or milk products
and is engaging in conduct within the scope of that permit. 

SECTION 3.  Amends Subchapter A, Chapter 435, Health and Safety Code, by
adding Section 435.0015, as follows: 

Sec. 435.0015.  APPLICABILITY OF OTHER LAW.  Provides that Chapter 431
(Applicability of Chapter to Milk and Milk Products) applies to a person
and milk or a milk product regulated under this chapter, except as
provided by Section 431.010(c). 

SECTION 4.  Amends Section 435.011, Health and Safety Code, as follows:

Sec. 435.011.  New heading: HEARING.  Creates this subsection from
existing text. Deletes existing text regarding denial of a permit and
receiving a hearing on that action. 

 (b) Provides that the refusal or the suspension or revocation of a permit
by the Texas Department of Health (TDH) and the appeal of that action are
governed by the procedures for a contested case hearing under Chapter
2001, Government Code (Administrative Procedure). 

SECTION 5.  Amends Section 435.012, Health and Safety Code, as follows:

Sec. 435.012.  New heading:  REFUSAL TO GRANT PERMIT; SUSPENSION OR
REVOCATION OF PERMIT.  (a) Authorizes TDH to refuse an application for a
permit under this chapter or to suspend or revoke a permit issued under
this chapter.  Deletes existing text related to payment of the monthly
fee. 

(c) Requires TDH, by rule, to take certain actions.

SECTION 6.  Amends Section 435.014, Health and Safety Code, by adding
Subsection (d) to provide that the penalty prescribed by this section is
subject to either the sanctions prescribed in the Grade A Pasteurized Milk
Ordinance for products covered by the ordinance or any civil or
administrative penalty or sanction otherwise imposed by Chapter 431
(Applicability of Chapter to Milk and Milk Products) or other law for
products not covered by the ordinance. 

SECTION 7.  Requires the Texas Board of Health to adopt the rules and
establish the procedures required by Section 435.012, Health and Safety
Code, as amended by this Act, by December 1, 2003. 

SECTION 8.  Effective date:  September 1, 2003.