HBA-MPM S.B. 1080 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1080
By: Moncrief
Public Health
5/4/2001
Engrossed



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. Senate Bill 1080 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 rulemaking
authority is expressly delegated to the Texas Board of Health in SECTION 7
(Section 432.011, Health and Safety Code) of this bill. 

ANALYSIS

Senate Bill 1080 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, delivery, holding, receipt,
or distribution in commerce of goods that are adulterated or misbranded
does not prohibit the introduction, delivery, holding, 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
authorizes the Texas Department of Health (TDH) to detain or embargo an
article, including 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 reconditioning if TDH has reason 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. 

S.B. 1080 provides that a salvage operator or salvage broker who is
engaging only within the scope of the license issued Texas Food, Drug,
Device, and Cosmetic Salvage Act is not required to also be licensed under
the Texas Food, Drug, and Cosmetic Act. 

The bill requires the Texas Board of Health to adopt rules prescribing
standards for salvaged food, drugs, devices, and cosmetics in separate
subchapters. 



 EFFECTIVE DATE

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