Enrolled Bill Summary

            Senate Bill 55 amends the Health and Safety Code and the Tax Code to add provisions concerning the prevention of smoking and use of tobacco by minors. Under the act, a minor who possesses, purchases, consumes, or accepts cigarettes, cigars, smoking tobacco, chewing tobacco, or other tobacco products may be fined up to $250. Exceptions apply if the minor possesses such a product in the presence of a parent, guardian, or spouse or in connection with certain employment duties or law enforcement activities. Violators receive a suspended sentence but must attend a tobacco awareness program or perform community service if no such program is available locally. A court may also require attendance of the tobacco awareness program by the minor's parent. On program or service completion, the fine may be reduced by up to 50 percent, the charge dismissed, or the violation expunged from the minor's record depending on certain circumstances. Failure to satisfy the conditions of the suspended sentence result in a driver's license suspension lasting up to 180 days.

            The act prohibits vending machine sales of cigarettes and other tobacco products, or direct customer access to such products, except in establishments that are limited to adults or humidors where cigars are stored. Dispensing of free samples, or of coupons tradeable for free or discounted samples, is prohibited. Also prohibited is the sale of cigarettes in packages of less than 20. The act increases from 500 to 1,000 feet the minimum distance between signs advertising cigarettes or other tobacco products and a church or school. It places a fee of 10 percent on the gross sales price of outdoor advertising for such products.

            Fees for bonded agent's, distributor's, and wholesaler's permits are tripled or quadrupled. The act establishes a new fee for retailer's permits. Retailers and others face new product distribution restrictions including the vending machine, direct access, free sample, and coupon prohibitions. A sale to a person younger than 27 requires a check of the person's identification. Retailers must notify their employees of relevant state laws, and the language of posted warning signs changes. The act provides for retailer fines, or suspension or revocation of a retailer's permit, for certain violations.

            The comptroller assumes certain enforcement duties, in conjunction with local law enforcement officials and the commissioner of health. The comptroller is responsible for the approval of seller training programs directed at the employees of retailers. The commissioner of health is responsible for the establishment of the tobacco awareness programs attended by minors who violate the law and for the development and implementation of a public awareness campaign designed to reduce tobacco use by minors. The act establishes an associated grant program for youth groups. Retailer permit revenue goes to a combination of administration, enforcement, the public awareness campaign, and youth group grants. Fees for outdoor advertising go to a new tobacco education and enforcement education fund, to be used for similar purposes.

            Implementation of the act is contingent on the availability of funds from advertising fees and retailer permit fees, as determined by the comptroller. Prohibitions relating to vending machines, direct customer access, and illegal acquisition or possession by minors take effect January 1, 1998, as do the requirements for retailer notification of employees and identification checks on purchasers under age 27. Other provisions take effect September 1, 1997, but advertising signs located too close to a church or school are grandfathered if situated legally before that date. The act does not preempt compatible or more stringent local regulations relating to product distribution. If provisions relating to product distribution or advertising are found to be federally preempted before taking effect, the comptroller may seek an exemption from federal preemption and delay implementation. The act requires the Texas Department of Health to report biennially to the governor, lieutenant governor, and speaker of the house on the status of smoking and the use of tobacco products in Texas.