Enrolled Bill Summary

            Under previous law, a person commits an offense if the person affixes a tax stamp to a cigarette package that violates federal trademark or copyright law, contains alterations to packaging language, fails to comply with federal labeling requirements, has been labeled for export, or has been imported illegally in violation of specified federal law. House Bill 2378 amends the Tax Code to expand the offense to include cigarette packages in noncompliance with other federal laws relating to ingredient submission and the import of previously exported products. The bill provides that an offense is committed only if a person knowingly affixes a tax stamp inappropriately and amends the Penal Code to make the violation a Class A misdemeanor. The bill allows a seller, distributor, or manufacturer of cigarettes who sustains direct economic or commercial injury as a result of inappropriate tax stamp affixation to seek injunctive relief. It requires the comptroller to provide tax stamps so as to identify by number or mark the person who affixes a stamp to a particular package of cigarettes. A cigarette distributor, in addition to other required information, must keep copies of customs certificates for all imported cigarettes to which the distributor has affixed a tax stamp.