SRC-MSY S.B. 1392 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1392
By: Janek
Health & Human Services
3/27/2003
As Filed


DIGEST AND PURPOSE 

Current Texas law requires the Texas Department of Health (TDH) to
regulate the sale of medical devices within the state, and issues licenses
for medical device salvage establishments and medical device salvage
brokers.  As proposed, S.B. 1392 eliminates that licensing requirement. 

RULEMAKING AUTHORITY

Rulemaking authority previously granted to the Texas Board of Health is
modified in SECTION 10 (Section 432.011(b), Health and Safety Code) of
this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 431.008, Health and Safety Code, by amending
Subsections (a) and (c), as follows: 

(a)  Deletes a device from the list of items that are distressed
merchandise for purposes of Chapter 432 or that has been subject to
reconditioning in accordance with Chapter 432. 

(c)  Deletes a device distributor from the list of persons who hold a
license under Chapter 432 and are engaging in conduct within the scope of
that license who are not required to hold a certain second license. 

SECTION 2.  Amends Section 431.023, Health and Safety Code, as follows:

Sec.  431.023.  New heading: LIMITED EXEMPTION FOR DISTRESSED FOOD, DRUGS,
OR COSMETICS.  Deletes a device from the list of products in relation to
which Sections 431.021(a), (c), and (d) do not prohibit certain actions. 

SECTION 3.  Amends the heading to Chapter 432, Health and Safety Code, to
read as follows: 

CHAPTER 432.  FOOD, DRUG, AND COSMETIC SALVAGE ACT

SECTION 4.  Amends Section 432.001, Health and Safety Code, to delete
"Device" from the short title of Chapter 432. 

SECTION 5.  Amends Section 432.002, Health and Safety Code, by deleting
devices from the list of goods whose sale this chapter aims to prevent
under certain circumstances to protect the health of the people of this
state. 

SECTION 6.  Amends Section 432.003(6), Health and Safety Code, by
redefining "distressed merchandise" to exclude a device.  Makes conforming
changes. 

SECTION 7.  Amends Section 432.003, Health and Safety Code, by adding
Subsection (19) to define "refurbishing a device." 

SECTION 8.  Amends Section 432.004(a), Health and Safety Code, by deleting
a manufacturer or common carrier of a device who takes certain actions
from the list of persons to whom this  chapter does not apply.  Adds
Subsection (5) to provide that this chapter does not apply to a person or
organization who engages in refurbishing medical devices for purposes of
selling. 

SECTION 9.  Amends Section 432.010, Health and Safety Code, by deleting
"device" from the description of a fund in the state treasury to which a
fee collected under this chapter is required to be deposited for use in
implementing this chapter. 

SECTION 10.  Amends Section 432.011(b), Health and Safety Code, by
deleting devices from the list of products for which certain rules must
prescribe standards. 

SECTION 11.  Amends Section 432.020(a), Health and Safety Code, by
deleting devices from the list of products whose sale or distribution the
commissioner of health or the commissioner's designee may issue an
emergency order concerning. 

SECTION 12.  Effective date:  September 1, 2003.