1-1 By: Giddings (Senate Sponsor - Nelson) H.B. No. 1362 1-2 (In the Senate - Received from the House April 14, 1997; 1-3 April 16, 1997, read first time and referred to Committee on State 1-4 Affairs; May 18, 1997, reported favorably, as amended, by the 1-5 following vote: Yeas 13, Nays 0; May 18, 1997, sent to printer.) 1-6 COMMITTEE AMENDMENT NO. 1 By: Nelson 1-7 Amend H.B. No. 1362 by striking Section 431.221(5)(A), Health 1-8 and Safety Code, as added by SECTION 1 of the bill (page 1, 1-9 lines 27-30, House engrossed version) and substituting the 1-10 following: 1-11 (A) who is not affiliated with a permanent 1-12 retail establishment and who engages in the business of: 1-13 (i) in-person sales of prepackaged 1-14 nonperishable foods, including dietary supplements, to a buyer on a 1-15 buy-sell basis, a deposit-commission basis, or a similar basis for 1-16 resale in a home; or 1-17 (ii) sales of prepackaged nonperishable 1-18 foods, including dietary supplements, in a home; 1-19 A BILL TO BE ENTITLED 1-20 AN ACT 1-21 relating to exemptions from regulation as a food manufacturer or 1-22 wholesaler. 1-23 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-24 SECTION 1. Section 431.221, Health and Safety Code, is 1-25 amended by adding Subdivision (5) to read as follows: 1-26 (5) "Direct seller" means an individual: 1-27 (A) engaged in the business of in-person sales 1-28 of prepackaged, nonperishable foods or dietary supplements to a 1-29 buyer on a buy-sell basis or similar basis for resale in a home, 1-30 and not affiliated with, a permanent retail establishment; 1-31 (B) who receives substantially all remuneration 1-32 for a service, whether in cash or other form of payment, which is 1-33 directly related to sales or other output, including the 1-34 performance of the service, and not to the number of hours worked; 1-35 and 1-36 (C) who performs services under a written 1-37 contract between the individual and the person for whom the service 1-38 is performed, and the contract provides that the individual is not 1-39 treated as an employee with respect to federal tax purposes. 1-40 SECTION 2. Section 431.2211, Health and Safety Code, is 1-41 amended to read as follows: 1-42 Sec. 431.2211. Application of Subchapter. This subchapter 1-43 does not apply to: 1-44 (1) a person, firm, or corporation that harvests, 1-45 packages, washes, or ships raw fruits or vegetables; or 1-46 (2) an individual who sells prepackaged nonperishable 1-47 foods, including dietary supplements, from a private home as a 1-48 direct seller. 1-49 SECTION 3. The importance of this legislation and the 1-50 crowded condition of the calendars in both houses create an 1-51 emergency and an imperative public necessity that the 1-52 constitutional rule requiring bills to be read on three several 1-53 days in each house be suspended, and this rule is hereby suspended. 1-54 * * * * *