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.

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