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".