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.