BILL ANALYSIS



S.B. 955
By: Nelson (Giddings)
05-02-95
Committee Report (Unamended)


BACKGROUND

Current law requires wholesale food distributors to pay a licensing
fee for each place of business to help defray the cost of facility
inspections.  A "food wholesaler" is defined as a "person who
distributes food for resale, either through a retail outlet owned
by that person or through sales to another person."  By this
definition, an individual operating as an independent distributor
for personal care products, prepackaged dietary supplements, or
small quantities of prepackaged foods is subject to the wholesaler
licensing fee; however, these small, homebased businesses are not
subject to facility inspections.

PURPOSE

As proposed, S.B. 955 would exempt an individual who sells packaged
nonperishable foods out of a  private home from regulation as a
food manufacturer or wholesaler.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 431.221, Health and Safety Code, to
delete from the definition of "food wholesaler" establishments
engaged solely in the distribution of beverages in sealed
containers.

SECTION 2. Amends Section 431.2211, Health and Safety Code, to make
Subchapter J, Chapter 431, inapplicable to an individual who sells
prepackaged nonperishable foods, including dietary supplements,
from a private home.

SECTION 3. Emergency clause.
           Effective date: upon passage.

SUMMARY OF COMMITTEE ACTION

S.B. 955 was considered by the Public Health Committee in a public
hearing on May 2, 1995.

The following persons testified in favor of the bill:
     Teresa L. Jennings, representing Direct Selling Association.
     Michael Lunceford, representing Mary Kay Cosmetics.
     Evelyn Jarvis-Ferris, representing Shaklee Corp.
     Dirk Bloemendaal, representing Amway Corporation.

The following person testified neutrally on the bill:
     R.D. (Dan) Sowards, representing TX Dept. of Health, Bureau of
Food & Drug Safety.

The bill was reported favorably without amendment, with the
recommendation it do pass and be printed and sent to the Committee
on Local and Consent Calendars, by a record vote of 6 ayes, 0 nays,
0 PNV, and 3 absent.