By Nelson                                             S.B. No. 1633
         76R1373 CLG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the sale or exchange of items at a flea market;
 1-3     providing a penalty.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 35, Business & Commerce Code, is amended
 1-6     by adding Subchapter J to read as follows:
 1-7                         SUBCHAPTER J.  FLEA MARKETS
 1-8           Sec. 35.111.  DEFINITIONS.  In this subchapter:
 1-9                 (1)  "Device" and "drug" have the meanings assigned by
1-10     Section 431.002, Health and Safety Code.
1-11                 (2)  "Flea market" means:
1-12                       (A)  a location at which:
1-13                             (i)  booths or similar spaces are rented or
1-14     otherwise made available temporarily to two or more persons who
1-15     offer tangible personal property for sale or exchange; and
1-16                             (ii)  a fee is charged:
1-17                                            (a)  for the sale or
1-18     exchange of personal property; or
1-19                                            (b)  to prospective buyers
1-20     for admission to the location; or
1-21                       (B)  a location at which more than six times a
1-22     year for a total of not more than 120 days one or more persons
1-23     offer tangible personal property for sale or exchange.
1-24                 (3)  "Flea market vendor" means a person who uses a
 2-1     booth or similar space to sell or exchange tangible personal
 2-2     property at a flea market more than four times a year.
 2-3                 (4)  "Nonprescription drug" means a nonnarcotic drug or
 2-4     device that may be sold without a prescription and that is labeled
 2-5     and packaged in compliance with applicable state or federal law.
 2-6     The term does not include vitamins or an herbal product, dietary
 2-7     supplement, or botanical extract.
 2-8                 (5)  "Unused personal property" means tangible personal
 2-9     property that has never been used after being acquired directly
2-10     from the producer or manufacturer of the property or a wholesaler
2-11     or retailer, including property in an original package or
2-12     container.
2-13           Sec. 35.112.  EXEMPT EVENTS.  This subchapter does not apply
2-14     to an:
2-15                 (1)  industry or association trade show;
2-16                 (2)  event organized for the exclusive benefit of a
2-17     community chest, fund, foundation, association, or corporation
2-18     organized and operated for religious, educational, or charitable
2-19     purposes, if no portion of any fee charged vendors or prospective
2-20     purchasers and none of the gross receipts or net earnings of the
2-21     sale or exchange of personal property benefits a private
2-22     shareholder or person participating in the event or the
2-23     organization of the event; or
2-24                 (3)  event  or location at which all of the personal
2-25     property offered for sale or on display is new and all persons
2-26     selling, exchanging, offering, or displaying personal property for
2-27     sale or exchange are manufacturers of the property or authorized
 3-1     representatives or distributors of the manufacturer.
 3-2           Sec. 35.113.  SALE OF ITEMS AT FLEA MARKET.  (a)  A person
 3-3     commits an offense if the person sells or offers for sale at a flea
 3-4     market:
 3-5                 (1)  packaged food of a type usually consumed by
 3-6     children younger than two years of age;
 3-7                 (2)  a nonprescription drug; or
 3-8                 (3)  a device.
 3-9           (b)  A person who provides spaces at a flea market commits an
3-10     offense if the person knowingly permits at the flea market a sale
3-11     prohibited by Subsection (a).
3-12           (c)  It is a defense to prosecution under Subsection (a)  or
3-13     (b) that:
3-14                 (1)  the person selling the item is authorized in
3-15     writing to sell the item at retail by the manufacturer of the item
3-16     or the manufacturer's authorized distributor, the authorization
3-17     states the person's name, and the person provides for examination
3-18     the authorization to any person at the flea market who requests to
3-19     see the authorization; or
3-20                 (2)  only a sample of the item or a catalog or brochure
3-21     displaying the item was available at the flea market and the item
3-22     sold was not delivered to the buyer at the flea market.
3-23           (d)  A person commits an offense if the person provides to
3-24     another person an authorization under Subsection (c)(1); and:
3-25                 (1)  the authorization is forged or contains a false
3-26     statement; or
3-27                 (2)  the person displaying the authorization obtained
 4-1     the authorization by fraud.
 4-2           (e)  An offense under this section is a Class C misdemeanor,
 4-3     unless it is shown on the trial of an offense under this section
 4-4     that the person has previously been convicted of a violation of
 4-5     this section.   If it is shown at the trial for the offense that
 4-6     the person has been previously convicted under this section one
 4-7     time, the offense is a Class B misdemeanor.  If it is shown at the
 4-8     trial for the offense that the person has been previously convicted
 4-9     under this section two or more times, the offense is a Class A
4-10     misdemeanor.
4-11           Sec. 35.114.  PURCHASE OF GOODS BY FLEA MARKET VENDOR.  (a)
4-12     This section does not apply to the sale or exchange of the
4-13     following property at a flea market:
4-14                 (1)  a motor vehicle or trailer that is:
4-15                       (A)  required to be registered in this state; or
4-16                       (B)  subject to Chapter 501, Transportation Code;
4-17                 (2)  wood for fuel purposes, ice, or livestock;
4-18                 (3)  arts or crafts by a person producing the arts or
4-19     crafts; or
4-20                 (4)  unused property the style, packaging, or material
4-21     of which clearly indicates the property:
4-22                       (A)  is no longer available for sale at retail;
4-23     or
4-24                       (B)  was manufactured or produced more than five
4-25     years ago.
4-26           (b)  A flea market vendor shall create or maintain in
4-27     connection with a purchase of unused personal property acquired by
 5-1     the vendor for sale or exchange at a flea market a purchase receipt
 5-2     that must contain:
 5-3                 (1)  the date of the transaction;
 5-4                 (2)  the name and address of the seller of the
 5-5     property;
 5-6                 (3)  a description of each item of unused personal
 5-7     property purchased from the seller, including the item's serial and
 5-8     model number, if any;
 5-9                 (4)  the price paid for each item of unused personal
5-10     property purchased from the seller;
5-11                 (5)  the signature of the vendor; and
5-12                 (6)  the signature of the seller.
5-13           (c)  A flea market vendor shall retain the original of each
5-14     purchase receipt until the second anniversary of the date on which
5-15     the property was purchased.
5-16           (d)  A flea market vendor may not:
5-17                 (1)  falsify or destroy a purchase receipt required
5-18     under this section;
5-19                 (2)  fail or refuse to make a purchase receipt
5-20     available for examination within a reasonable time to a person who
5-21     requests to see the purchase receipt; or
5-22                 (3)  be required to carry or present a purchase receipt
5-23     without reasonable notice.
5-24           (e)  An offense under this section is a Class C misdemeanor,
5-25     unless it is shown on the trial of an offense under this section
5-26     that the person has previously been convicted of a violation of
5-27     this section.   If it is shown at the trial for the offense that
 6-1     the person has been previously convicted under this section one
 6-2     time, the offense is a Class B misdemeanor.  If it is shown at the
 6-3     trial for the offense that the person has been previously convicted
 6-4     under this section two or more times, the offense is a Class A
 6-5     misdemeanor.
 6-6           SECTION 2.  This Act  takes effect September 1, 1999.
 6-7           SECTION 3.  The importance of this legislation and the
 6-8     crowded condition of the calendars in both houses create an
 6-9     emergency and an imperative public necessity that the
6-10     constitutional rule requiring bills to be read on three several
6-11     days in each house be suspended, and this rule is hereby suspended.