LSL H.B. 1362 75(R) BILL ANALYSIS PUBLIC HEALTH H.B. 1362 By: Giddings 3-12-97 Committee Report (Amended) BACKGROUND Section 431.221, Health and Safety Code, allows the Texas Department of Health (TDH) to protect public health from adulterated, contaminated, and misbranded foods. An amendment enacted by the 74th Texas Legislature, Regular Session, added an exemption to the licensure requirements for certain wholesale food distributors. The amendment exempted "...an individual who sells prepackaged nonperishable foods, including dietary supplements, from a private residence." Since enactment of the amendment, the Licensure Program for the Bureau of Food and Drug Safety has received several calls from individuals wishing to operate a wholesale food distributorship from their residence. The exempting language in Chapter 431 was not intended to permit such operations from a private residence unless such facilities were licensed by TDH and in compliance with the Good Warehousing Practices rules found in Sec. 431.221. Without appropriate amendments, TDH can no longer exclude individuals from operating wholesale food distribution facilities from their home. Current Good Manufacturing Practices rules for food manufacturers, and the Rules on Food Service Establishments, specifically exclude those types of establishments from compliance and licensure. PURPOSE H.B. 1362 defines "direct seller", clarifying that only "direct sellers" are exempt from regulation as a food manufacturer or wholesaler. 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. Amends Section 431.221, Health and Safety Code, by adding Subsection (5) to define the term "direct seller." SECTION 2. Amends Section 431.2211(2), Health and Safety Code, by specifying that this subchapter does not apply to someone selling prepackaged nonperishable foods, including dietary supplements, from a private home "as a direct seller." SECTION 3. Emergency Clause. EXPLANATION OF AMENDMENTS The committee amendment replaces the language in SECTION 1 of the original bill (Section 431.221(5)(A), Health and Safety Code) to clarify the scope of the "direct seller" definition to be an individual "engaged in the business of in-person sales of prepackaged non-perishable foods or dietary supplements to a buyer on a buy-sell basis or similar basis for resale in a home, and not affiliated with a permanent retail establishment".