MPM S.B. 1532 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1532
By: Carona
Public Health
4/26/1999
Engrossed



BACKGROUND AND PURPOSE 

Renderable materials such as used cooking oil, grease, waste products from
animal slaughter, and dead livestock, are heated under pressure and
converted to materials that are then used in products such as animal feeds,
fertilizer, and cosmetics.  Every year, Texas transports and sells millions
of pounds of renderable raw materials and inedible kitchen grease.  The
Texas Renderers' Licensing Act (TRLA) (Chapter 144, Health and Safety Code)
has not been revised since it was enacted in 1969.  The rendering industry
has since changed and expanded with respect to technology, products, and
related potential public health hazards.   

The public health threat from possible contamination of recyclable cooking
grease from added sewer trap grease and other unapproved sources is not
addressed in existing TRLA.  The Texas Department of Health (department)
does not have the authority to identify vehicles licensed under TRLA or to
require renderers to adequately document that they are obtaining renderable
materials from approved sources.  Without this documentation, the
department cannot track renderable raw material from its origin to its
destination.  Additionally, although recyclable cooking grease used in the
food industry is now mainly of plant origin, TRLA only addresses the
rendering of animals and products of animal origin.  TRLA also does not
address activities such as the rendering of certain oils used in topical
products. 

S.B. 1532 amends TRLA to:

_adequately regulate transporters and other rendering operations dealing in
inedible kitchen grease, whether plant or animal in origin; 
_require disclosure of all rendering and kitchen grease purchase and sales
transactions, including documentation content requirements and distribution
of copies to the appropriate entities; 
_allow for additional categories of rendering operations;
_allow for variances in construction requirements for various rendering
categories; and  
_authorize the department to set fees and those fees to be appropriated to
the department. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Department of Health in
SECTION 18  (Section 144.072, Health and Safety Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 144.002, Health and Safety Code, a follows:

Sec. 144.002.  DEFINITIONS.  Redefines "employee" as a legal employee of a
rendering establishment, rather than a person who is employed in or by a
rendering establishment, and handles or operates rendering equipment,
utensils, containers, vehicles, or packaging materials owned or leased by
the rendering establishment.  Redefines "related station" to mean an
operation or facility that is necessary or incidental, rather than
necessary, useful, or incidental, to the operation of a rendering
establishment and that is operated or maintained separately from the
rendering establishment. Redefines "rendering business" as the  collection,
transportation, disposal, or storage of dead animals or renderable raw
materials for commercial purposes at locations where dead animals or
renderable raw materials are rendered, boiled, processed, stored,
transferred, or otherwise prepared, either as a separate business or in
connection with any other established business.  Redefines "rendering
establishment" to delete the provision that a related station is excluded
among the facilities which comprise this term.  Redefines "renderable raw
material" as any unprocessed or partially processed material of plant
origin, in addition to animal origin, other than a dead animal, that is
processed by rendering establishments.  Includes recyclable cooking oil
among those items included under this term, and defines "recyclable cooking
oil" for purposes of this chapter.  Redefines "renderable raw material
hauler" as a person who collects or transports, rather than a person who
collects and disposes of, renderable raw materials for commercial purposes.
Redefines "transfer station" as a facility, rather than a related station,
at which renderable raw materials are transferred from one conveyance to
another, and deletes text relating to the transfer of dead animals.
Defines "waste cooking grease" for purposes of this section.  Redesignates
Subdivisions (12) and (13) to Subdivisions (13) and (14), respectively.
Makes a conforming change. 

SECTION 2.  Amends Section 144.003(b), Health and Safety Code, to make a
conforming change. 

SECTION 3.  Amends Section 144.011, Health and Safety Code, as follows:

(a)  Makes no change.

(b)  Removes the stipulation that a person is prohibited from operating or
maintaining a related station without a related station operating license
issued by the Texas Department of Health (department) unless the person is
an employee of a rendering establishment that the station serves or the
related station is part or subsidiary of a rendering establishment that the
station serves.   

(c)  Prohibits a person from operating or maintaining a transfer station
without a transfer station operating license issued by the department. 

(d)  Redesignated from existing Subsection (c).  Deletes the requirements
that a person be an employee of a related station served by the person or
that the person does not operate separately from the rendering
establishments or related stations served by the person in order to operate
as a dead animal hauler without a related license issued by the department.

(e)  Redesignated from existing Subsection (d).  Deletes the requirements
that a person be an employee of a related station served by the person or
that the person does not operate separately from the rendering
establishments or related stations served by the person in order to operate
as a renderable raw material hauler without a related license issued by the
department. 

SECTION 4.  Amends Section 144.012(a), Health and Safety Code,  to make
this chapter inapplicable to person who is an individual and who disposes
of the individual's own animal, unless the person also performs rendering
operations or processes.  Makes a nonsubstantive change. 

SECTION 5.  Amends Sections 144.013(a) and (f), Health and Safety Code, to
include a transfer station among those facilities an applicant for an
operating license is required to indicate that the person intends to
operate on the application.  Deletes the requirement that a hearing be
conducted no later than the 30th day after the date of the second denial of
an applicant's application, if the applicant is denied an application by
the department. 

SECTION 6.  Amends Section 144.021(b), Health and Safety Code, to authorize
the department, as a condition of licensure, to prescribe other reasonable
and appropriate construction, operational, maintenance, and inspection
requirements to ensure compliance with this chapter and applicable rules of
the department.  Deletes the requirement that each holder of an operating
license comply with the specific operating procedures establishing under
this subchapter. 

 
SECTION 7.  Amends Section 144.023, Health and Safety Code, as follows:

Sec. 144.023.  New title:  VEHICLES; PERMIT REQUIRED.  Provides that a
vehicle used to transport dead animals or renderable raw materials to or
from a rendering establishment must comply with each applicable requirement
for operation on the public roads or highways, including applicable
insurance requirements and gross vehicle weight limitations.  Provides that
a truck bed used to transport dead animals or renderable raw materials is
required to be thoroughly washed and sanitized before use for the transport
of finished renderable products, rather than finished products.  Makes a
conforming change.  Prohibits the owner of a vehicle from operating it on
public roads or highways to haul dead animals or renderable raw materials
unless the owner holds a permit for the vehicle issued by the department.
Provides that to obtain this permit, the owner must provide specific
information to the department. Authorizes the department to require that a
dead animal or renderable raw material hauling vehicle display a permit
decal issued by the department and the license holder's name and number.
Authorizes the department to require the vehicle to comply with certain
requirements prescribed by the department. 

SECTION 8.  Amends Section 144.024, Health and Safety Code, by adding
Subsection (d) to prohibit a person from contaminating or commingling waste
cooking greases or recyclable cooking oils with grease trap waste, grit
trap waste, or any other substance that would render the greases or oils
harmful or otherwise unsuitable for use as an ingredient in livestock feed
or in topical cosmetic products. 

SECTION 9.  Amends Section 144.030, Health and Safety Code, as follows:

Sec. 144.030.  COLLECTION CONTAINER REQUIREMENTS.  (a)  Deletes text
prohibiting the container in which dead animals or renderable raw materials
are accumulated by a producer at collecting points for pick-ups from being
replaced or exchanged by the hauler or returned to a rendering
establishment. 

(b)  Requires the owner of the containers, rather than the producer of the
materials, to maintain the containers in a leak-proof, rather than clean,
and sanitary condition and to replace them as necessary. 

(c)  Requires the transportation, delivery, transfer, loading, and
off-loading of dead animals and renderable raw materials to be performed in
a way that prevents the release of animal parts and spills or leaks or
renderable raw materials from containers.  Requires that such a leak or
spill be immediately cleaned up and reported in the operations log required
by Section 144.022 (Records), Health and Safety Code.  Deletes text making
this section inapplicable to the containers of a producer who collects and
accumulates the materials only in areas separated from areas in which the
producer receives, holds, slaughters, butchers, or otherwise processes or
prepares any animal or animal part as food for human consumption. 

SECTION 10.  Amends Section 144.031, Health and Safety Code, by adding
Subsection (c) to prohibit a person licensed under this chapter from
purchasing renderable raw materials from a renderable raw material hauler
not licensed under this chapter. 

SECTION 11.  Amends Section 144.041, Health and Safety Code, as follows:

Sec. 144.041. PERMIT REQUIRED.  (a) Makes no change.

(b)  Deletes the provision that a person is prohibited from constructing a
new related station or engaging in construction involving an addition or
replacement at a related station without a construction permit issued by
the department unless the construction is conducted in connection with
construction at a rendering establishment covered by a construction permit
issued under Subsection (a). 

(c)  Prohibits a person from constructing a new transfer station or
engaging in  construction involving an addition or replacement at a
transfer station without a construction permit issued by the department,
except as provided by Section 144.042, Health and Safety Code. 

(d)  Provides that construction at a rendering business, rather than a
related station, is subject to the construction and layout requirements
established under Subchapter E (Construction and Layout Requirements for
Rendering Establishments and Related Stations). 

SECTION 12.  Amends Section 144.042, Health and Safety Code, to provide
that a construction permit from the department for the construction of a
new rendering business, rather than a new rendering establishment or new
related station, or for construction at a rendering business, rather than
at a rendering establishment or related station, is not required if the
cost of the construction is less than $10,000.  Makes a conforming change. 

SECTION 13. Amends Sections 144.043(a) and (e), Health and Safety Code, as
follows: 

(a)  Includes a transfer station among those facilities a person is
required to describe in an application for a construction permit. 

(e)  Deletes the provision that a hearing must be conducted no later than
the 30th day after the request of an applicant who is denied an application
twice by the department. 

SECTION 14.  Amends Section 144.051, Health and Safety Code, to include a
transfer station among other facilities subject to this chapter which are
required to make certain provisions and follow certain preventive measures.
Requires each construction permit holder, except to the extent the
department grants a written variance from a requirement, to comply with the
specific requirements established under this subchapter.  Authorizes the
department to grant a variance from the requirements of this subchapter if
it determines that construction or operational features established at a
rendering establishment will provide protection for public health and
safety equivalent to that afforded by the requirements of this subchapter. 

SECTION 15.  Amends Sections 144.063(b) and (d), Health and Safety Code, as
follows: 

(b)  Requires the department to set an annual renewal fee for an operating
license.  Deletes text providing that this fee is the same as the original
license fee for that license. 

(d)  Provides that if the renewal fee is not paid before the expiration of
the 15th day after a written notice of delinquency is given to the license
holder by the department, the license expires unless the department grants
an extension to renew, rather than unless the license holder shows good
cause for failure to renew. 

SECTION 16.  Amends Section 144.064, Health and Safety Code, as follows:

Sec. 144.064.  New title:  DENIAL, SUSPENSION, OR REVOCATION OF LICENSE OR
PERMIT; REINSTATEMENT.  (a) Authorizes the commissioner of public health
(commissioner) to deny, in addition to suspend, or revoke an operating
license, construction permit, or renewal of an operating license or
construction permit if the commissioner makes certain findings.  Provides
that this denial, suspension, or revocation may take place if the license
or permit holder has violated, rather than knowingly violated, this chapter
or a rule or order adopted under it, or did not exercise due care to
prevent the violation. 

(b)  Deletes the requirement that the commissioner of public health allow a
reasonable period for correction on the discovery of a violation. 

(c)  Makes no change.

SECTION 17. Amends Sections 144.071(a) and (c), Health and Safety Code, to
include the vehicles of each renderable raw material hauler among those
facilities the department is required to inspect  on a yearly basis and at
other times as the department deems necessary.  Makes a conforming change. 

SECTION 18.  Amends Section 144.072, Health and Safety Code, as follows:

Sec. 144.072.  FEES.  (a)  Provides that an application for an operating
license is required to be accompanied by an application fee, rather than
the applicable fee.  Deletes a list of fees for specific entities and
equipment. 

(b) Provides that construction permit fees must be, rather than are, based
on the dollar value at the cost to the rendering establishment or related
station of the construction. Deletes a schedule of fees related to
construction permits.  Makes a conforming change. 

(c)  Provides that an application for a vehicle permit under Section
144.023, Health and Safety Code, must be accompanied by a permit fee for
each vehicle for which a permit is to be issued.  

(d)  Redesignated from existing Subsection (c).  Makes no change.

(e)  Requires the department, by rule, to set the fees authorized by this
chapter in amounts that allow the department to recover the annual
expenditures of state funds by the department for performing certain
functions related to this chapter. 

SECTION 19.  Amends Section 144.073, Health and Safety Code, to require all
fees collected under this chapter to be deposited to the credit of the
rendering fee account in the general revenue fund. Authorizes money in the
account to be appropriated only to the department to be used to process and
investigate applications filed under this chapter and to administer this
chapter.  Deletes the requirement that the fees be deposited in an account
in the state treasury to the credit of the department. 

SECTION 20.  Amends Section 144.077, Health and Safety Code, as follows:

Sec. 144.077.  New title:  HEARINGS AND JUDICIAL REVIEW.  Makes a hearing
held under this chapter subject to Chapter 2001 (Administrative Procedure),
Government Code. Provides that the manner of judicial review, rather than
review, is by substantial evidence review, rather than trial de novo. 

SECTION 21.  Amends Sections 144.078(a) and (c), Health and Safety Code, as
follows: 

(a)  Authorizes the attorney general, on request of the department, to
bring an action in any district court of this state that has jurisdiction
and venue for an injunction to compel compliance with this chapter or to
restrain any actual or threatened violation of this chapter. 

(b)  Authorizes the attorney general, on behalf of the department, to bring
an action under Subsection (a) in addition to any other action provided by
this chapter and without prejudice to that action. 

SECTION 22.  Amends Section 144.079, Health and Safety Code, as follows:

Sec. 144.079.  New title:  PROHIBITED ACTS.  Deletes "processing animals
for human consumption" from title.  Prohibits a person from stealing,
misappropriating, contaminating. or damaging recyclable cooking oil or
containers of recyclable cooking oil.  Prohibits a renderer, hauler, or any
other person from taking possession of recyclable cooking oil from an
unlicensed hauler or an employee of an unlicensed hauler or knowingly
taking possession of stolen recyclable cooking oil. 

SECTION 23.  Amends Sections 144.082(a) and (c), Health and Safety Code, to
provide that an administrative penalty is authorized to be assessed only
after a person notified of a violation, rather than charged with a
violation, is given an opportunity for a hearing.  Makes a conforming
change. 

 SECTION 24.  Effective date:  September 1, 1999.

SECTION 25.  Makes application of this Act prospective to conduct occurring
on or after January 1, 2000.  Provides that a person required to be
licensed under Section 144.011, Health and Safety Code, as amended by this
Act, and who was not required to be licensed under that section before
amendment by this Act, is not required to be licensed under that section
before January 1, 2000. Provides that an owner of a vehicle is not required
to hold a permit for the vehicle under Section 144.023, Health and Safety
Code, as amended by this Act, before January 1, 2000. 

SECTION 26.  Emergency clause.