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


Senate Research Center   S.B. 1803
78R8767 JTS-DBy: Duncan
Business & Commerce
4/5/2003
As Filed


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.  As proposed, 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 4 (Section 431.2211, Health and Safety Code) of this
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 431.021(y), Health and Safety Code, to change
"food wholesaler" to "warehouse operator," and add "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. 

SECTION 2.  Amends the heading to Chapter 431J, Health and Safety Code, to
read as follows: 

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

SECTION 3.  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 4.  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 5.  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 6.  Amends Section 431.223(a), Health and Safety Code, to include
a warehouse operator in relation to licensing applications. 

SECTION 7.  (a)  Effective date:  September 1, 2003.
                             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.