HBA-MPM H.B. 3598 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3598
By: Capelo
Public Health
3/18/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, the Texas Department of Health (TDH) regulates distressed food,
drugs, devices, and cosmetics for the purpose of reintroducing these goods
into normal commerce.  TDH regulates the goods using applicable provisions
of the  Texas Food, Drug, and Cosmetic Act and the Texas Food, Drug,
Device, and Cosmetic Salvage Act.  These two acts work in unison to protect
consumers from unnecessary health risks associated with adulterated and
misbranded products. House Bill 3598 clarifies the authority granted to TDH
through the Texas Food, Drug, and Cosmetic Act as it applies to licensed
salvagers. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 3598 amends the Health and Safety Code to provide that the Texas
Food, Drug, and Cosmetic Act applies to a food, drug, device, or cosmetic
that is distressed merchandise or has been subject to reconditioning in
accordance with the Texas Food, Drug, Device, and Cosmetic Salvage Act.  

The bill provides that in relation to distressed merchandise, law
prohibiting the introduction or delivery, receipt, or distribution in
commerce of goods that are adulterated or misbranded does not prohibit the
introduction or delivery or receipt in commerce  for the purpose of
reconditioning according to the Texas Food, Drug, Device, and Cosmetic
Salvage Act. 

The bill prohibits the commissioner of health (commissioner) or an
authorized agent from detaining or embargoing an article, including an
article that is distressed merchandise, that is in the possession of a
person licensed under the Texas Food, Drug, Device, and Cosmetic Salvage
Act and that is being held for the purposes of reconditioning unless the
commissioner or agent finds or has probable cause to believe that the
article cannot be adequately and lawfully reconditioned.  The bill provides
an affirmative defense to prosecution under these provisions if the conduct
charged is exempt because the actions were for the purposes of
reconditioning. 

H.B. 3598 provides that a person licensed under the Texas Food, Drug,
Device, and Cosmetic Salvage Act and who engages only in conduct within the
scope of that license is not required to be licensed under the Texas Food,
Drug, and Cosmetic Act.  The bill stipulates that an exemption from
licensing requirements under these provisions do not exempt a person from
other provisions of law governing food manufacturers and food wholesalers
or rules adopted by the Texas Board of Health.  

EFFECTIVE DATE

On passage, of if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.