Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      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.