CHAPTER 501. HAZARDOUS SUBSTANCES

HEALTH AND SAFETY CODE

TITLE 6. FOOD, DRUGS, ALCOHOL, AND HAZARDOUS SUBSTANCES

SUBTITLE D. HAZARDOUS SUBSTANCES

CHAPTER 501. HAZARDOUS SUBSTANCES

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 501.001. DEFINITIONS. In this chapter:

(1) "Board" means the Texas Board of Health.

(2) "Commerce" includes the operation of a business or service

establishment and other commerce in this state that is subject to

the jurisdiction of this state.

(3) "Commissioner" means the commissioner of public health.

(4) "Department" means the Texas Department of Health.

(5) "Label" means a display of written, printed, or other

graphic matter:

(A) on the immediate container, excluding the package liner, of

any substance; or

(B) directly on the article or on a tag or other suitable

material affixed to the article, if the article is unpackaged or

not packaged in an immediate container intended or suitable for

delivery to the ultimate consumer.

(6) "Misbranded hazardous substance" means either of the

following that is not properly packaged or does not bear a proper

label required by this chapter:

(A) a hazardous substance; or

(B) a toy or other article intended for use by children that

bears or contains a hazardous substance in a manner that is

accessible by a child to whom the toy or other article is

entrusted, intended, or packaged in a form suitable for use in a

household or by children.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 360, Sec. 1, eff. Sept. 1,

2001.

Sec. 501.002. HAZARDOUS SUBSTANCE DESCRIBED. (a) A hazardous

substance is:

(1) a substance or mixture of substances that is toxic,

corrosive, extremely flammable, flammable, combustible, an

irritant, or a strong sensitizer, or that generates pressure

through decomposition, heat, or other means, if the substance or

mixture of substances may cause substantial personal injury or

substantial illness during or as a proximate result of any

customary or reasonably foreseeable handling or use, including

reasonably foreseeable ingestion by children;

(2) a toy or other article, other than clothing, that is

intended for use by a child and that presents an electrical,

mechanical, or thermal hazard; or

(3) a radioactive substance designated as a hazardous substance

under Section 501.003.

(b) A substance is corrosive if, when in contact with living

tissue, it causes destruction of that tissue by chemical action.

A chemical action on an inanimate surface is not corrosive for

the purpose of this section.

(c) An article is an electrical hazard if, in normal use or when

subjected to reasonably foreseeable damage or abuse, it may

cause, because of its design or manufacture, personal injury or

illness by electric shock.

(d) A substance or article is extremely flammable, flammable, or

combustible if it is defined as extremely flammable, flammable,

or combustible by rule of the board. The board shall define the

terms as they are defined by the Federal Hazardous Substances Act

(15 U.S.C. Section 1261 et seq.), as amended, and by federal

regulations adopted under that Act. The terms each have the

meaning assigned by the Federal Hazardous Substances Act (15

U.S.C. Section 1261 et seq.) and by federal regulations adopted

under that Act, as of September 1, 2001.

(e) A substance is an irritant if it is noncorrosive and if, on

immediate, prolonged, or repeated contact with normal living

tissue, it induces a local inflammatory reaction.

(f) An article is a mechanical hazard if, in normal use or when

subjected to reasonably foreseeable damage or abuse, it presents,

because of its design or manufacture, an unreasonable risk of

personal injury or illness:

(1) from fracture, fragmentation, or disassembly of the article;

(2) from propulsion of the article or a part or accessory of the

article;

(3) from points or other protrusions, surfaces, edges, openings,

or closures;

(4) from moving parts;

(5) from lack or insufficiency of controls to reduce or stop

motion;

(6) as a result of self-adhering characteristics of the article;

(7) because the article or a part or accessory of the article

may be aspirated or ingested;

(8) because of instability; or

(9) because of any other aspect of the article's design or

manufacture.

(g) A substance is radioactive if it emits ionizing radiation.

(h) A substance is a strong sensitizer if, when on normal living

tissue, it causes, through an allergic or photodynamic process, a

hypersensitivity that becomes evident on reapplication of the

same substance.

(i) An article is a thermal hazard if, in normal use or when

subject to reasonably foreseeable damage or abuse, it presents,

because of its design or manufacture, an unreasonable risk of

personal injury or illness because of heat, including heat from

heated parts, substances, or surfaces.

(j) A substance is toxic if it is capable of producing personal

injury or illness to any person through ingestion, inhalation, or

absorption through any body surface and it is not radioactive.

(k) The following are not hazardous substances:

(1) a pesticide subject to Chapter 76, Agriculture Code, or to

the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C.

Section 135 et seq.);

(2) a food, drug, or cosmetic subject to the Federal Food, Drug,

and Cosmetic Act (21 U.S.C. Section 301 et seq.) or Chapter 431

(Texas Food, Drug, and Cosmetic Act);

(3) a beverage complying with or subject to the Federal Alcohol

Administration Act (27 U.S.C. Section 201 et seq.);

(4) a substance intended for use as fuel that is stored in a

container and used in the heating, cooking, or refrigeration

system of a private residence; and

(5) source material, special nuclear material, or by-product

material as defined in the Atomic Energy Act of 1954 (42 U.S.C.

Chapter 23) and regulations issued under that Act by the Atomic

Energy Commission.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 360, Sec. 2, eff. Sept. 1,

2001.

Sec. 501.003. DESIGNATION OF RADIOACTIVE SUBSTANCE AS HAZARDOUS.

The board by rule shall designate a radioactive substance to be

a hazardous substance if, with respect to the substance as used

in a particular class of article or as packaged, the board finds

that the substance is sufficiently hazardous as to require

labeling as a hazardous substance under this chapter in order to

protect the public health.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 501.004. DESIGNATION OF STRONG SENSITIZER. Before

designating a substance as a strong sensitizer, the department

must determine that the substance has a significant potential for

causing hypersensitivity considering the frequency of occurrence

and the severity of the reaction.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 501.005. EXCLUSION. This chapter does not apply to the

manufacture, distribution, sale, or use of diapers.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

SUBCHAPTER B. REGULATION OF SUBSTANCES

Sec. 501.021. FLAMMABILITY STANDARDS; DETERMINATION OF

FLAMMABILITY. (a) The board by rule shall establish the methods

for determining the flammability of solids, fabrics, children's

clothing, household furnishings, and the contents of

self-pressurized containers that the board finds are generally

applicable to those materials or containers.

(b) The board by rule shall establish flammability standards for

articles described by Subsection (a). The standards must conform

to standards prescribed by federal regulations adopted under the

federal Flammable Fabrics Act (15 U.S.C. Section 1191 et seq.),

as amended, the Federal Hazardous Substances Act (15 U.S.C.

Section 1261 et seq.), as amended, and the federal Consumer

Product Safety Act (15 U.S.C. Section 2051 et seq.), as amended.

Until the board adopts standards, the flammability standards for

articles described by Subsection (a) are the standards prescribed

by federal regulations adopted under the federal Flammable

Fabrics Act (15 U.S.C. Section 1191 et seq.), the Federal

Hazardous Substances Act (15 U.S.C. Section 1261 et seq.), and

the federal Consumer Product Safety Act (15 U.S.C. Section 2051

et seq.) as of September 1, 2001.

(c) The department may obtain samples of articles described by

Subsection (a) and determine the flammability of the articles for

compliance with applicable standards established under this

section.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 360, Sec. 3, eff. Sept. 1,

2001.

Sec. 501.022. DESIGNATION OF BANNED HAZARDOUS SUBSTANCES. (a)

The board by rule shall designate as a banned hazardous substance

any article, including clothing intended for the use of children,

that is not properly packaged or that does not comply with

applicable flammability standards established by the board. The

board's determination that articles of clothing of a specified

range of sizes are intended for the use of a child 14 years of

age or younger is conclusive.

(b) The board by rule shall designate as a banned hazardous

substance any toy or other article, other than clothing, intended

for the use of children that is a hazardous substance or bears or

contains a hazardous substance in a manner accessible by a child

to whom the toy or other article is entrusted.

(c) The board by rule shall designate as a banned hazardous

substance any hazardous substance intended or packaged in a form

suitable for use in a household that, notwithstanding cautionary

labeling required by this chapter, is potentially so dangerous or

hazardous when present or used in a household that the protection

of the public health and safety may be adequately served only by

keeping the substance out of commerce.

(d) The board by rule shall designate as a banned hazardous

substance any article subject to this chapter that cannot be

labeled adequately to protect the public health and safety or

that presents an imminent danger to the public health and safety.

(e) This section does not apply to a toy or article such as a

chemical set that because of its functional purpose requires the

inclusion of a hazardous substance or necessarily presents an

electrical, mechanical, or thermal hazard if the toy or article:

(1) bears labeling that in the judgment of the board gives

adequate directions and warnings for safe use; and

(2) is intended for use by children who have attained sufficient

maturity and may reasonably be expected to read and heed those

directions and warnings.

(f) This section does not apply to the manufacture, sale,

distribution, or use of fireworks of any class.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 360, Sec. 4, eff. Sept. 1,

2001.

Sec. 501.023. GENERAL LABELING AND PACKAGING REQUIREMENTS. (a)

The department shall ensure that each hazardous substance is

labeled sufficiently to inform its user of the dangers involved

in using, storing, or handling the substance, of actions to be

taken or avoided, and to give instructions as necessary for

proper first aid treatment. The department shall develop labeling

instructions consistent with and in conformity with federal

requirements.

(b) A statement required by Subsection (a) must be located

prominently and written in English in conspicuous and legible

type that contrasts in typography, layout, or color with other

printed matter on the label. The department may also require the

statement to be written in Spanish.

(c) The statement must also appear:

(1) on the outside container or wrapper of a substance and on a

container sold separately and intended for the storage of a

hazardous substance unless the statement required by Subsection

(a) is easily legible through the outside container or wrapper;

and

(2) on all accompanying literature containing directions for

use, whether written or in other form.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 360, Sec. 5, eff. Sept. 1,

2001.

Sec. 501.0231. LABELING OF CERTAIN TOYS AND GAMES. (a) Toys or

games intended for use by children, including the parts of those

toys or games, shall be labeled in the manner required by rule of

the board. The board's rules under this subsection shall be

consistent with federal guidelines and regulations adopted under

the Federal Hazardous Substances Act (15 U.S.C. Section 1261 et

seq.), as amended. Until the board adopts rules under this

subsection, the toys, games, and parts shall be labeled in the

manner required by federal guidelines and regulations adopted

under the Federal Hazardous Substances Act (15 U.S.C. Section

1261 et seq.) as of September 1, 2001.

(b) Latex balloons, small balls, marbles, and any toy or game

that contains such a balloon, ball, or marble shall be labeled in

the manner required by rule of the board. The board's rules under

this subsection shall be consistent with federal guidelines and

regulations adopted under the Federal Hazardous Substances Act

(15 U.S.C. Section 1261 et seq.), as amended. Until the board

adopts rules under this subsection, latex balloons, small balls,

marbles, and any toy or game that contains such a balloon, ball,

or marble shall be labeled in the manner required by federal

guidelines and regulations adopted under the Federal Hazardous

Substances Act (15 U.S.C. Section 1261 et seq.) as of September

1, 2001.

Added by Acts 2001, 77th Leg., ch. 360, Sec. 6, eff. Sept. 1,

2001.

Sec. 501.0232. REVIEW AND LABELING OF HAZARDOUS ART MATERIALS.

(a) Art materials shall be reviewed by a toxicologist.

(b) Art materials shall be labeled in the manner required by

rule of the board. The board's rules under this subsection shall

be consistent with the Federal Hazardous Substances Act (15

U.S.C. Section 1261 et seq.), as amended, and federal regulations

adopted under that Act. Until the board adopts rules under this

subsection, art materials shall be labeled in the manner required

by the Federal Hazardous Substances Act (15 U.S.C. Section 1261

et seq.), and federal regulations adopted under that Act, as of

September 1, 2001.

Added by Acts 2001, 77th Leg., ch. 360, Sec. 6, eff. Sept. 1,

2001.

Sec. 501.0233. PACKAGING OF HAZARDOUS SUBSTANCES. Hazardous

substances shall be packaged in the manner required by special

packaging rules adopted by the board. The board's rules under

this section shall be consistent with federal special packaging

regulations adopted under the federal Poison Prevention Packaging

Act of 1970 (15 U.S.C. Section 1471 et seq.), as amended. Until

the board adopts rules under this section, hazardous substances

shall be packaged in the manner required by federal special

packaging regulations adopted under the federal Poison Prevention

Packaging Act of 1970 (15 U.S.C. Section 1471 et seq.), as of

September 1, 2001.

Added by Acts 2001, 77th Leg., ch. 360, Sec. 6, eff. Sept. 1,

2001.

Sec. 501.024. REGISTRATION. (a) A person who manufactures,

imports, or repacks a hazardous substance that is distributed in

this state or who distributes a hazardous substance in this state

under the person's private brand name shall have on file with the

department a registration statement as provided by this section.

(b) The board by rule shall detail the registration requirements

and prescribe the contents of the registration statement.

(c) The person must file the registration statement with the

department:

(1) before beginning business in this state as a manufacturer,

importer, repacker, or distributor of a hazardous substance; and

(2) in each succeeding year that the person continues the

business in this state, not later than the anniversary of the

initial filing.

(d) The initial registration statement and each annual

registration statement must be accompanied by a fee prescribed by

the board.

(e) The department, after notice and hearing, may refuse to

register or may cancel, revoke, or suspend the registration of a

person who manufactures, imports, repacks, or distributes a

hazardous substance if the person fails to comply with the

requirements of this chapter.

(f) A hazardous substance is subject to seizure and disposition

under Section 501.033 if the person who manufactures, imports,

repacks, or distributes the hazardous substance does not, after

notice by the department, register with the department and make

timely payment of the fee under this section.

(g) This section does not apply to a retailer who distributes a

hazardous substance to the general public unless the retailer

distributes a hazardous substance made to its specifications.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 360, Sec. 7, eff. Sept. 1,

2001.

Sec. 501.025. RULES. The board may adopt reasonable rules

necessary for the efficient administration and enforcement of

this chapter. The rules must conform with regulations adopted

under the Federal Hazardous Substances Act (15 U.S.C. Section

1261 et seq.), as amended, the federal Consumer Product Safety

Act (15 U.S.C. Section 2051 et seq.), as amended, the federal

Flammable Fabrics Act (15 U.S.C. Section 1191 et seq.), as

amended, and the federal Poison Prevention Packaging Act of 1970

(15 U.S.C. Section 1471 et seq.), as amended, as applicable.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 360, Sec. 8, eff. Sept. 1,

2001.

Sec. 501.026. FEES. The board by rule shall set reasonable

registration fees in an amount designed to recover not more than

the costs to the department of administering, monitoring

compliance with, enforcing, and conducting tests under this

chapter.

Added by Acts 2001, 77th Leg., ch. 360, Sec. 9, eff. Sept. 1,

2001.

SUBCHAPTER C. ENFORCEMENT

Sec. 501.031. EXAMINATIONS AND INVESTIGATIONS. (a) To enforce

this chapter, an officer, employee, or agent of the department,

on the presentation of appropriate credentials to the owner,

operator, or agent, at reasonable times may enter a factory,

warehouse, or establishment in which a hazardous substance is

manufactured, processed, packaged, or held for introduction into

commerce in this state or in which a hazardous substance is held

after introduction into commerce, or a vehicle used to transport

or hold a hazardous substance in commerce, for the purpose of

inspecting within reasonable limits and in a reasonable manner

the factory, warehouse, establishment, or vehicle and all

pertinent equipment, finished and unfinished materials, and

labeling in the factory, warehouse, establishment, or vehicle.

(b) The officer, employee, or agent of the department may obtain

samples of any materials, packaging, labeling, or finished

product.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 360, Sec. 10, eff. Sept. 1,

2001.

Sec. 501.032. RECORDS OF HAZARDOUS SUBSTANCE IN COMMERCE. (a)

For the enforcement of this chapter, a carrier engaged in

commerce, a person receiving a hazardous substance in commerce,

or a person holding a hazardous substance received in commerce,

on request of the department shall permit a representative of the

department at reasonable times to have access to and to copy all

records showing the movement in commerce or the holding after

movement in commerce of any hazardous substance and the quantity,

consignees, and shipper of the hazardous substance.

(b) Evidence obtained under this section may not be used in the

criminal prosecution of the person from whom the evidence is

obtained.

(c) A carrier is not subject to the other provisions of this

chapter because of the carrier's receipt, carriage, holding, or

delivery of a hazardous substance in the usual course of the

carrier's business.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Sec. 501.033. SEIZURE AND DISPOSITION OF BANNED OR MISBRANDED

HAZARDOUS SUBSTANCE. (a) If an authorized agent of the

department has good reason to believe that a hazardous substance

is a banned or misbranded hazardous substance, the agent shall

affix to the article a tag or other appropriate marking giving

notice that the article is or is suspected to be a banned or

misbranded hazardous substance and that the article has been

detained, and warning all persons not to remove the article from

the premises or dispose of the article by sale or in any other

manner until permission to do so is given by the agent or a

court.

(b) The department shall petition a district court of Travis

County or of the county in which the article is located to

authorize the destruction of the article. If the court determines

that the article is a banned or misbranded hazardous substance,

the department shall destroy the article, and the court shall

impose all court costs and fees and storage and other proper

expenses against the claimant of the article. However, if the

court finds that misbranding occurred in good faith and can be

corrected by proper labeling, the court may direct that the

article be delivered to the claimant for proper labeling with the

approval of the department.

(c) If the court finds that the article is not a banned or

misbranded hazardous substance, the court shall order the

department to remove the tags or other markings.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 360, Sec. 11, eff. Sept. 1,

2001.

Sec. 501.034. PROHIBITED ACTS. (a) A person may not hold or

offer for sale, sell, or introduce or deliver for introduction

into commerce a misbranded hazardous substance or banned

hazardous substance.

(b) A person may not alter, mutilate, destroy, or remove all or

part of the label of a hazardous substance, or do any other act

relating to a hazardous substance, when the substance is in

commerce or is held for sale, whether or not the first sale,

after shipment in commerce, if the act results in the hazardous

substance being a banned or misbranded hazardous substance.

(c) A person may not receive a banned or misbranded hazardous

substance in commerce or deliver or offer to deliver a banned or

misbranded hazardous substance for pay or otherwise.

(d) A person may not fail to permit entry or inspection as

authorized by this chapter or to provide records as required by

this chapter.

(e) A person may not use to his own advantage or reveal to any

person other than the department or a court, if relevant to a

judicial proceeding under this chapter, information acquired in

an inspection authorized by this chapter and relating to a method

or process that is entitled to protection as a trade secret.

(f) A person may not remove or dispose of a detained article or

substance in violation of Section 501.035.

(g) A person may not manufacture, import, or repack a hazardous

substance that is to be distributed in this state or otherwise

distribute a hazardous substance in this state without complying

with Section 501.024.

(h) A person may not package a hazardous substance in a new or

reused food, drug, or cosmetic container that is identifiable as

a food, drug, or cosmetic container by its labeling or other

identification.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 360, Sec. 12, eff. Sept. 1,

2001.

Sec. 501.035. OFFENSES; EXCEPTIONS. (a) A person commits an

offense if the person intentionally, knowingly, or recklessly

violates this chapter or a rule adopted under this chapter.

(b) An offense under this section is a Class A misdemeanor.

(c) This section does not apply to a person who delivers or

receives a banned or misbranded hazardous substance if the

delivery or receipt is made in good faith and if the person

subsequently delivers on request:

(1) the name and address of the person from whom the substance

was purchased or received; and

(2) copies of all documents, if any, relating to the original

delivery of the substance to the person.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Amended by Acts 2001, 77th Leg., ch. 360, Sec. 13, eff. Sept. 1,

2001.

Sec. 501.036. INJUNCTION. (a) If it appears that a person has

violated, is violating, or is threatening to violate this chapter

or a rule adopted or order issued under this chapter, the

commissioner may request the attorney general or a district,

county, or city attorney of the county or municipality in which

the violation has occurred, is occurring, or may occur to

institute a civil suit for:

(1) an order enjoining the violation or an order directing

compliance; or

(2) a permanent or temporary injunction, restraining order, or

other appropriate order if the department shows that the person

has engaged in, is engaging in, or is about to engage in a

violation of this chapter or a rule adopted or order issued under

this chapter.

(b) Venue for a suit brought under this section is in the county

or municipality in which the violation occurred or in Travis

County.

(c) The commissioner and either the attorney general or the

district, county, or city attorney, as appropriate, may each

recover from the violator reasonable expenses incurred in

obtaining injunctive relief under this section, including

investigative costs, court costs, reasonable attorney's fees,

witness fees, and deposition expenses. Expenses recovered by the

commissioner may be appropriated only to the department to

administer and enforce this chapter. Expenses recovered by the

attorney general may be appropriated only to the attorney

general.

Added by Acts 2001, 77th Leg., ch. 360, Sec. 14, eff. Sept. 1,

2001.

Sec. 501.037. RECALL ORDERS. (a) In conjunction with the

detention of an article under Section 501.033, the commissioner

may order that a hazardous substance be recalled from commerce.

(b) The commissioner's recall order may require the articles to

be removed to one or more secure areas approved by the

commissioner or an authorized agent of the commissioner.

(c) The recall order must be in writing and signed by the

commissioner.

(d) The recall order may be issued before or in conjunction with

the affixing of the tag or other appropriate marking as provided

by Section 501.033.

(e) The recall order is effective until the order:

(1) expires on its own terms;

(2) is withdrawn by the commissioner; or

(3) is reversed by a court in an order denying destruction under

Section 501.033.

(f) The claimant of the articles or the claimant's agent shall

pay the costs of the removal and storage of the articles removed.

(g) If the claimant or the claimant's agent does not implement

the recall order in a timely manner, the commissioner may provide

for the recall of the articles. The costs of the recall shall be

assessed against the claimant of the articles or the claimant's

agent.

(h) The commissioner may request the attorney general to bring

an action in a district court of Travis County to recover costs

of the recall. In a judgment in favor of the state, the court may

award costs, attorney's fees, and court costs related to the

recall together with interest on those costs from the time an

expense was incurred through the date the department is

reimbursed.

Added by Acts 2001, 77th Leg., ch. 360, Sec. 14, eff. Sept. 1,

2001.

SUBCHAPTER D. ADMINISTRATIVE PENALTY

Sec. 501.101. IMPOSITION OF PENALTY. (a) The department may

impose an administrative penalty on a person:

(1) who manufactures or repacks a hazardous substance that is

distributed in this state or who distributes a hazardous

substance in this state; and

(2) who violates this chapter or a rule or order adopted under

this chapter.

(b) A penalty collected under this subchapter shall be deposited

in the state treasury in the general revenue fund.

Added by Acts 1999, 76th Leg., ch. 1411, Sec. 7.01, eff. Sept. 1,

1999.

Sec. 501.102. AMOUNT OF PENALTY. (a) The amount of the penalty

may not exceed $1,000 for each violation, and each day a

violation continues or occurs is a separate violation for

purposes of imposing a penalty. The total amount of the penalty

assessed for a violation continuing or occurring on separate days

under this subsection may not exceed $5,000.

(b) The amount shall be based on:

(1) the seriousness of the violation, including the nature,

circumstances, extent, and gravity of the violation;

(2) the threat to health or safety caused by the violation;

(3) the history of previous violations;

(4) the amount necessary to deter a future violation;

(5) whether the violator demonstrated good faith, including when

applicable whether the violator made good faith efforts to

correct the violation; and

(6) any other matter that justice may require.

Added by Acts 1999, 76th Leg., ch. 1411, Sec. 7.01, eff. Sept. 1,

1999.

Sec. 501.103. REPORT AND NOTICE OF VIOLATION AND PENALTY. (a)

If the department initially determines that a violation occurred,

the department shall give written notice of the report by

certified mail to the person.

(b) The notice must:

(1) include a brief summary of the alleged violation;

(2) state the amount of the recommended penalty; and

(3) inform the person of the person's right to a hearing on the

occurrence of the violation, the amount of the penalty, or both.

Added by Acts 1999, 76th Leg., ch. 1411, Sec. 7.01, eff. Sept. 1,

1999.

Sec. 501.104. PENALTY TO BE PAID OR HEARING REQUESTED. (a)

Within 20 days after the date the person receives the notice sent

under Section 501.103, the person in writing may:

(1) accept the determination and recommended penalty of the

department; or

(2) make a request for a hearing on the occurrence of the

violation, the amount of the penalty, or both.

(b) If the person accepts the determination and recommended

penalty or if the person fails to respond to the notice, the

commissioner of public health by order shall approve the

determination and impose the recommended penalty.

Added by Acts 1999, 76th Leg., ch. 1411, Sec. 7.01, eff. Sept. 1,

1999.

Sec. 501.105. HEARING. (a) If the person requests a hearing,

the commissioner of public health shall refer the matter to the

State Office of Administrative Hearings, which shall promptly set

a hearing date and give written notice of the time and place of

the hearing to the person. An administrative law judge of the

State Office of Administrative Hearings shall conduct the

hearing.

(b) The administrative law judge shall make findings of fact and

conclusions of law and promptly issue to the commissioner of

public health a proposal for a decision about the occurrence of

the violation and the amount of a proposed penalty.

Added by Acts 1999, 76th Leg., ch. 1411, Sec. 7.01, eff. Sept. 1,

1999.

Sec. 501.106. DECISION BY COMMISSIONER. (a) Based on the

findings of fact, conclusions of law, and proposal for a

decision, the commissioner of public health by order may:

(1) find that a violation occurred and impose a penalty; or

(2) find that a violation did not occur.

(b) The notice of the commissioner's order under Subsection (a)

that is sent to the person in accordance with Chapter 2001,

Government Code, must include a statement of the right of the

person to judicial review of the order.

Added by Acts 1999, 76th Leg., ch. 1411, Sec. 7.01, eff. Sept. 1,

1999.

Sec. 501.107. OPTIONS FOLLOWING DECISION: PAY OR APPEAL. Within

30 days after the date an order of the commissioner of public

health under Section 501.106 that imposes an administrative

penalty becomes final, the person shall:

(1) pay the penalty; or

(2) file a petition for judicial review of the commissioner's

order contesting the occurrence of the violation, the amount of

the penalty, or both.

Added by Acts 1999, 76th Leg., ch. 1411, Sec. 7.01, eff. Sept. 1,

1999.

Sec. 501.108. STAY OF ENFORCEMENT OF PENALTY. (a) Within the

30-day period prescribed by Section 501.107, a person who files a

petition for judicial review may:

(1) stay enforcement of the penalty by:

(A) paying the penalty to the court for placement in an escrow

account; or

(B) giving the court a supersedeas bond approved by the court

that:

(i) is for the amount of the penalty; and

(ii) is effective until all judicial review of the

commissioner's order is final; or

(2) request the court to stay enforcement of the penalty by:

(A) filing with the court a sworn affidavit of the person

stating that the person is financially unable to pay the penalty

and is financially unable to give the supersedeas bond; and

(B) giving a copy of the affidavit to the commissioner of public

health by certified mail.

(b) If the commissioner of public health receives a copy of an

affidavit under Subsection (a)(2), the commissioner may file with

the court, within five days after the date the copy is received,

a contest to the affidavit. The court shall hold a hearing on the

facts alleged in the affidavit as soon as practicable and shall

stay the enforcement of the penalty on finding that the alleged

facts are true. The person who files an affidavit has the burden

of proving that the person is financially unable to pay the

penalty or to give a supersedeas bond.

Added by Acts 1999, 76th Leg., ch. 1411, Sec. 7.01, eff. Sept. 1,

1999.

Sec. 501.109. COLLECTION OF PENALTY. (a) If the person does

not pay the penalty and the enforcement of the penalty is not

stayed, the penalty may be collected.

(b) The attorney general may sue to collect the penalty.

Added by Acts 1999, 76th Leg., ch. 1411, Sec. 7.01, eff. Sept. 1,

1999.

Sec. 501.110. DECISION BY COURT. (a) If the court sustains the

finding that a violation occurred, the court may uphold or reduce

the amount of the penalty and order the person to pay the full or

reduced amount of the penalty.

(b) If the court does not sustain the finding that a violation

occurred, the court shall order that a penalty is not owed.

Added by Acts 1999, 76th Leg., ch. 1411, Sec. 7.01, eff. Sept. 1,

1999.

Sec. 501.111. REMITTANCE OF PENALTY AND INTEREST. (a) If the

person paid the penalty and if the amount of the penalty is

reduced or the penalty is not upheld by the court, the court

shall order, when the court's judgment becomes final, that the

appropriate amount plus accrued interest be remitted to the

person within 30 days after the date that the judgment of the

court becomes final.

(b) The interest accrues at the rate charged on loans to

depository institutions by the New York Federal Reserve Bank.

(c) The interest shall be paid for the period beginning on the

date the penalty is paid and ending on the date the penalty is

remitted.

Added by Acts 1999, 76th Leg., ch. 1411, Sec. 7.01, eff. Sept. 1,

1999.

Sec. 501.112. RELEASE OF BOND. (a) If the person gave a

supersedeas bond and the penalty is not upheld by the court, the

court shall order, when the court's judgment becomes final, the

release of the bond.

(b) If the person gave a supersedeas bond and the amount of the

penalty is reduced, the court shall order the release of the bond

after the person pays the reduced amount.

Added by Acts 1999, 76th Leg., ch. 1411, Sec. 7.01, eff. Sept. 1,

1999.

Sec. 501.113. ADMINISTRATIVE PROCEDURE. A proceeding to impose

the penalty is considered to be a contested case under Chapter

2001, Government Code.

Added by Acts 1999, 76th Leg., ch. 1411, Sec. 7.01, eff. Sept. 1,

1999.