GEC H.B. 264 75(R)    BILL ANALYSIS


BUSINESS & INDUSTRY
H.B. 264
By: Van de Putte
3-28-97
Committee Report (Amended)



BACKGROUND 

Flea markets have become a major outlet for the sale of stolen merchandise
like batteries, shampoo, cosmetics, baby formula and other perishables.
Many of these items are sold after the manufacturers recommended freshness
date.   There is also the risk that mishandling of these items might
contaminate the quality of the product.  If stored at incorrect
temperatures baby formula spoils and is no longer fit for consumption.
Millions of dollars in merchandise and state taxes are lost every year to
shoplifting. 

PURPOSE

HB 264 is intended to prohibit the sale of  food products typically
consumed by children younger than two years of age,  drugs, cosmetics, and
other related devices, and  items which have an expiration date at flea
markets. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. SALE OF ITEMS AT FLEA MARKET.  Amends Subchapter D, Chapter 35
of the Business and Commerce Code by adding Section 35.55 (a) by defining
a "flea market" as a location with booths or rented spaces temporarily
available to individuals for the sale of tangible personal property. 

(b) Creates an offense under this section if an individual sells at  said
flea markets: (1) food products typically consumed by children younger
than two years of age, (2) an item defined in Health and Safety Code in
Section 431.002, and (3) items which have an expiration date. 

(c) Creates an offense under this section if the provider of spaces in a
flea market knowingly permits the sale of an item under subsection (b)
listed above. 

(d) Defines an affirmative defense for (b) and (c) under this section if
the person selling the items  is authorized to do so by the manufacturer
or an authorized distributor and that authorization includes the persons
name and the person provides for examination of that authorization to
inspectors, or if the item is a catalog or display item and the item was
not delivered to the buyer at the flea market. 

SECTION 2.  EFFECTIVE DATE for this Section is September 1, 1997.

SECTION 3. EMERGENCY CLAUSE.



 

EXPLANATION OF AMENDMENTS

Committee Amendment #1 adds section 35.56. PURCHASE OF GOODS BY FLEA
MARKET VENDOR.  This amendment defines "flea market" and "flea market
vendor" and also lists valid forms of identification which must be
presented to a flea market vendor in order to purchase property offered
for sale. The amendment also outlines the requirements and
responsibilities of the flea market vendor concerning purchase receipts in
order to ensure the legitimacy of the property offered for sale. The
person who provides space at a flea market must notify the flea market
vendors of their responsibilities in writing and assist in the
verification process. This amendment also prohibits the flea market vendor
from purchasing property from an individual who is younger than 18 years
of age and provides for a misdemeanor fine of not more than $100 for each
violation of this section.