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 of 1-9 consumer products to a buyer on a buy-sell basis, a 1-10 deposit-commission basis, or a similar basis for resale in a home 1-11 or in a place other than, and not affiliated with, a permanent 1-12 retail establishment; or sales of consumer products in a home or in 1-13 a place other than, and not affiliated with, a permanent retail 1-14 establishment; 1-15 (B) who receives substantially all remuneration for a 1-16 service, whether in cash or other form of payment, which is 1-17 directly related to sales or other output, including the 1-18 performance of the service, and not to the number of hours worked; 1-19 and 1-20 (C) who performs services under a written contract 1-21 between the individual and the person for whom the service is 1-22 performed, and the contract provides that the individual is not 1-23 treated as an employee with respect to federal tax purposes. 1-24 SECTION 2. Section 431.2211, Health and Safety Code, is 2-1 amended to read as follows: 2-2 Sec. 431.2211. Application of Subchapter. This subchapter 2-3 does not apply to: 2-4 (1) a person, firm, or corporation that harvests, 2-5 packages, washes, or ships raw fruits or vegetables; or 2-6 (2) an individual who sells prepackaged nonperishable 2-7 foods, including dietary supplements, from a private home as a 2-8 direct seller. 2-9 SECTION 3. The importance of this legislation and the 2-10 crowded condition of the calendars in both houses create an 2-11 emergency and an imperative public necessity that the 2-12 constitutional rule requiring bills to be read on three several 2-13 days in each house be suspended, and this rule is hereby suspended. 2-14 COMMITTEE AMENDMENT NO. 1 2-15 Amends H.B. 1362, Section 431.221(5A), Health and Safety 2-16 Code, by replacing the existing language with the following 2-17 language: 2-18 For the purposes of this Chapter, "Direct Seller" means an 2-19 individual "engaged in the business of in-person sales of 2-20 prepackaged, non-perishable foods or dietary supplements to a buyer 2-21 on a buy-sell basis or similar basis for resale in a home, and not 2-22 affiliated with, a permanent retail establishment." 2-23 Berlanga