SRC-LBB S.B. 1803 78(R)BILL ANALYSIS


Senate Research CenterS.B. 1803
By: Duncan
Business & Commerce
6/24/2003
Enrolled


DIGEST AND PURPOSE 

Currently, the Texas Department of Health (TDH) is required to issue
licenses to food manufacturers for each warehouse in which they store
food.  However, TDH licenses warehouses on behalf of their customers, not
as dictated in statute.  S.B. 1803 codifies in statute the current
practice of warehouses being licensed on behalf of their customers,
requires food manufacturers to register with TDH if they store their
products in a licensed warehouse, and requires a food manufacturer to
obtain a license for food stored in an unlicensed warehouse. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Department of
Health in SECTION 6 (Section 431.2211, Health and Safety Code) of this
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subdivision (23), Section 431.002, Health and Safety
Code, to redefine "manufacture." 

SECTION 2.  Amends Section 431.021, Health and Safety Code, by amending
Subdivision (y) and adding Subdivision (aa), as follows:   

(y)  Changes "food wholesaler" to "warehouse operator," and adds "or
operating as a food wholesaler in this state without having a license
under Section 431.222 or being registered under Section 431.2211, as
appropriate," regarding acts which are unlawful in this state. 

(aa)  Provides that making a false statement or false representation in an
application for a license or in a statement, report, or other instrument
to be filed with the board, the commissioner, or the department under this
chapter is unlawful within this state.  

SECTION 3.  Amends Section 431.059(a), Health and Safety Code, to provide
that a first offense under this subsection is a Class A misdemeanor unless
it is shown on the trial of an offense under this subsection that the
defendant was previously convicted of an offense under this subsection, in
which event the offense is a state jail felony.  

SECTION 4.  Amends the heading to Subchapter J, Chapter 431, Health and
Safety Code, to read as follows: 

SUBCHAPTER J.  FOOD MANUFACTURERS, FOOD WHOLESALERS, AND WAREHOUSE
OPERATORS 

SECTION 5.  Amends Section 431.221, Health and Safety Code, by amending
Subdivision (1) and adding Subdivision (6), as follows: 

(1)  Creates Subdivision (1)(A) from existing text and adds Subdivision
(1)(B) to include "a  warehouse where food is stored" to the meaning of
"place of business." 

 (6)  Defines "warehouse operator."
 
SECTION 6.  Amends Section 431.2211, Health and Safety Code, by adding
Subsections (d) and (e), as follows: 

(d)  Provides that a food wholesaler is not required to obtain a license
under this subchapter for a place of business if all of the food
distributed from that place of business will be stored in a warehouse
licensed under this subchapter. 

(e)  Requires a food wholesaler that is not required to obtain a license
for a place of business under Subsection (d) to register that place of
business with the Texas Department of Health (TDH).  Requires TDH to adopt
rules for the registration of food wholesalers under this section. 

SECTION 7.  Amends Section 431.222, Health and Safety Code, as follows:

(a)  Requires a food manufacturer, food wholesaler, or warehouse operator
in this state to apply for and obtain from TDH each year a license for
each place of business that the food manufacturer, food wholesaler, or
warehouse operator operates in this state, except as provided by Section
431.2211.  Requires the food manufacturer, food wholesaler, or warehouse
operator to pay a licensing fee for each establishment. 

 (b)  Deletes existing Subsection (b) and redesignates existing Subsection
(c) as  
Subsection (b).   Changes the words "wholesale distributor" to "food
wholesaler." Provides that a warehouse operator who also distributes food
is required to obtain only a warehouse operator license. 

SECTION 8.  Amends Section 431.223(a), Health and Safety Code, to include
a warehouse operator in relation to licensing applications. 

SECTION 9.  (a)  Makes application of this Act prospective.

           (b)  Provides that a food wholesaler that obtains or renews a
license before the effective date of this act is not entitled to a refund
for any fee paid to TDH for the license issuance or renewal, regardless of
the food wholesaler's eligibility for an exemption under Section
431.2211(d), Health and Safety Code, as added by this Act. 

SECTION 10.  Makes application of this Act prospective.

SECTION 11.  Effective date:  September 1, 2003.