By Giddings                                           H.B. No. 1362

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to exemptions from regulation as a food manufacturer or

 1-3     wholesaler.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 431.221, Health and Safety Code, is

 1-6     amended by adding Subdivision (5) to read as follows:

 1-7                 (5)  "Direct seller" means an individual:

 1-8                       (A)  engaged in the business of in-person sales

 1-9     of prepackaged, nonperishable foods or dietary supplements to a

1-10     buyer on a buy-sell basis or similar basis for resale in a home,

1-11     and not affiliated with, a permanent retail establishment;

1-12                       (B)  who receives substantially all remuneration

1-13     for a service, whether in cash or other form of payment, which is

1-14     directly related to sales or other output, including the

1-15     performance of the service, and not to the number of hours worked;

1-16     and

1-17                       (C)  who performs services under a written

1-18     contract between the individual and the person for whom the service

1-19     is performed, and the contract provides that the individual is not

1-20     treated as an employee with respect to federal tax purposes.

1-21           SECTION 2.  Section 431.2211, Health and Safety Code, is

1-22     amended to read as follows:

1-23           Sec. 431.2211.  Application of Subchapter.  This subchapter

1-24     does not apply to:

 2-1                 (1)  a person, firm, or corporation that harvests,

 2-2     packages, washes, or ships raw fruits or vegetables; or

 2-3                 (2)  an individual who sells prepackaged nonperishable

 2-4     foods, including dietary supplements, from a private home as a

 2-5     direct seller.

 2-6           SECTION 3.  The importance of this legislation and the

 2-7     crowded condition of the calendars in both houses create an

 2-8     emergency and an imperative public necessity that the

 2-9     constitutional rule requiring bills to be read on three several

2-10     days in each house be suspended, and this rule is hereby suspended.