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.