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.