§ 431.221 Definitions

§ 431.221. Definitions

    In this subchapter:

    (1) “Place of business” means:

        (A) each location where:

            (i) a person manufactures food; or

            (ii) food for wholesale is distributed; or

        (B) a warehouse where food is stored.

    (2) “Food manufacturer” means a person who combines, purifies, processes, or packages food for sale through a wholesale outlet. The term also includes a retail outlet that packages or labels food before sale and a person that represents itself as responsible for the purity and proper labeling of an article of food by labeling the food with the person's name and address. The term does not include a restaurant that provides food for immediate human consumption to a political subdivision or to a licensed nonprofit organization if the restaurant would not otherwise be considered a food manufacturer under this subdivision.

    (3) “Food wholesaler” means a person who distributes food for resale, either through a retail outlet owned by that person or through sales to another person. The term “food wholesaler” shall not include:

        (A) a commissary which distributes food primarily intended for immediate consumption on the premises of a retail outlet under common ownership;

        (B) an establishment engaged solely in the distribution of nonalcoholic beverages in sealed containers; or

        (C) a restaurant that provides food for immediate human consumption to a political subdivision or to a licensed nonprofit organization if the restaurant would not otherwise be considered a food wholesaler under this subdivision.

    (4) Deleted by Acts 1997, 75th Leg., ch. 629, § 2, eff. Sept. 1, 1997

    (5) “Direct seller” means an individual:

        (A) who is not affiliated with a permanent retail establishment and who engages in the business of:

            (i) in-person sales of prepackaged nonperishable foods, including dietary supplements, to a buyer on a buy-sell basis, a deposit-commission basis, or a similar basis for resale in a home; or

           (ii) sales of prepackaged nonperishable foods, including dietary supplements, in a home;

        (B) who receives substantially all remuneration for a service, whether in cash or other form of payment, which is directly related to sales or other output, including the performance of the service, and not to the number of hours worked; and

        (C) who performs services under a written contract between the individual and the person for whom the service is performed, and the contract provides that the individual is not treated as an employee with respect to federal tax purposes.

    (6) “Licensed nonprofit organization” means an organization that is licensed under any statutory authority of the State of Texas and is exempt from federal income taxation under Section 501(a), Internal Revenue Code of 1986, and its subsequent amendments, as an organization described in Section 501(c)(3) of that code.

    (7) “Warehouse operator” means a person that operates a warehouse where food is stored.