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.