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) who is not affiliated with a permanent 1-9 retail establishment and who engages in the business of: 1-10 (i) in-person sales of prepackaged 1-11 nonperishable foods, including dietary supplements, to a buyer on a 1-12 buy-sell basis, a deposit-commission basis, or a similar basis for 1-13 resale in a home; or 1-14 (ii) sales of prepackaged nonperishable 1-15 foods, including dietary supplements, in a home; 1-16 (B) who receives substantially all remuneration 1-17 for a service, whether in cash or other form of payment, which is 1-18 directly related to sales or other output, including the 1-19 performance of the service, and not to the number of hours worked; 1-20 and 1-21 (C) who performs services under a written 1-22 contract between the individual and the person for whom the service 1-23 is performed, and the contract provides that the individual is not 1-24 treated as an employee with respect to federal tax purposes. 2-1 SECTION 2. Section 431.2211, Health and Safety Code, is 2-2 amended to read as follows: 2-3 Sec. 431.2211. Application of Subchapter. This subchapter 2-4 does not apply to: 2-5 (1) a person, firm, or corporation that harvests, 2-6 packages, washes, or ships raw fruits or vegetables; or 2-7 (2) an individual who sells prepackaged nonperishable 2-8 foods, including dietary supplements, from a private home as a 2-9 direct seller. 2-10 SECTION 3. The importance of this legislation and the 2-11 crowded condition of the calendars in both houses create an 2-12 emergency and an imperative public necessity that the 2-13 constitutional rule requiring bills to be read on three several 2-14 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 1362 was passed by the House on April 11, 1997, by a non-record vote; and that the House concurred in Senate amendments to H.B. No. 1362 on May 29, 1997, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 1362 was passed by the Senate, with amendments, on May 26, 1997, by the following vote: Yeas 31, Nays 0. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor