By:  Zaffirini, et al.                                 S.B. No. 373
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the regulation of the sale, distribution, or use of
    1-2  cigarettes and tobacco products; providing penalties.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  This Act may be cited as the Children's Tobacco
    1-5  Prevention and Enforcement Act.
    1-6        SECTION 2.  Subchapter H, Chapter 161, Health and Safety
    1-7  Code, is amended to read as follows:
    1-8             SUBCHAPTER H.  SALE OF CIGARETTES OR TOBACCO
    1-9                         PRODUCTS <TO MINORS>
   1-10        Sec. 161.081.  DEFINITION.  In this subchapter, "permit
   1-11  holder" has the meaning assigned by Section 154.001 or 155.001, Tax
   1-12  Code, as applicable.
   1-13        Sec. 161.082.  ADMINISTRATION AND ENFORCEMENT.  (a)  The
   1-14  state treasurer is responsible for the administration and
   1-15  enforcement of this subchapter and for compliance with related
   1-16  provisions of the federal Alcohol, Drug Abuse and Mental Health
   1-17  Administration Reorganization Act, Pub.L. 102-321, and the rules
   1-18  prescribed under that law, except as otherwise provided by state
   1-19  law.
   1-20        (b)  In administering and enforcing this subchapter, the
   1-21  state treasurer has all rights and powers prescribed by Chapters
   1-22  154 and 155, Tax Code.
   1-23        (c)  The state treasurer shall:
   1-24              (1)  conduct random and targeted unannounced
    2-1  inspections of locations where cigarettes or tobacco products are
    2-2  sold or delivered to ensure compliance with this subchapter and as
    2-3  necessary to comply with related provisions of the federal Alcohol,
    2-4  Drug Abuse and Mental Health Administration Reorganization Act,
    2-5  Pub.L. 102-321, and the rules prescribed under that law;
    2-6              (2)  establish a system to allow persons to report the
    2-7  sale or delivery of cigarettes or tobacco products to a person
    2-8  younger than 18 years of age, including a sale or delivery by a
    2-9  permit holder;
   2-10              (3)  maintain statistics and information relating to
   2-11  violations of this subchapter and related provisions of the Tax
   2-12  Code and the activities carried out to enforce this subchapter and
   2-13  related provisions of the Tax Code;
   2-14              (4)  provide statistics and information to the Texas
   2-15  Commission on Alcohol and Drug Abuse relating to violations of this
   2-16  subchapter and the activities carried out by this state to enforce
   2-17  this subchapter and related provisions of the Tax Code;
   2-18              (5)  prescribe by rule the design and size of the sign
   2-19  required by Section 161.084; and
   2-20              (6)  adopt rules relating to:
   2-21                    (A)  the administration and enforcement of this
   2-22  subchapter, including the inspection and reporting requirements of
   2-23  this subchapter;
   2-24                    (B)  administrative proceedings for violations of
   2-25  this subchapter and Chapters 154 and 155, Tax Code; and
   2-26                    (C)  any other matter necessary to comply with
   2-27  related provisions of the federal Alcohol, Drug Abuse and Mental
    3-1  Health Administration Reorganization Act, Pub.L. 102-321, and the
    3-2  rules prescribed under that law.
    3-3        (d)  The Texas Commission on Alcohol and Drug Abuse shall:
    3-4              (1)  submit to the federal government reports necessary
    3-5  to comply with the federal Alcohol, Drug Abuse and Mental Health
    3-6  Administration Reorganization Act, Pub.L. 102-321, and the rules
    3-7  prescribed under that law;
    3-8              (2)  obtain from the state treasurer and the Central
    3-9  Education Agency statistics and information relating to violations
   3-10  of this subchapter and reports relating to activities carried out
   3-11  by this state to enforce this subchapter; and
   3-12              (3)  adopt rules relating to the reporting requirements
   3-13  prescribed by the federal Alcohol, Drug Abuse and Mental Health
   3-14  Administration Reorganization Act, Pub.L. 102-321, and the rules
   3-15  prescribed under that law.
   3-16        (e)  Before submitting a proposed rule for publication
   3-17  relating to the inspection and reporting requirements of Subsection
   3-18  (c) or (d), the state treasurer and the Texas Commission on Alcohol
   3-19  and Drug Abuse shall consult with each other regarding the rule.
   3-20        (f)  The state treasurer and the Texas Commission on Alcohol
   3-21  and Drug Abuse shall develop strategies to increase compliance with
   3-22  this subchapter.
   3-23        (g)  Subject to Subsection (h), the state treasurer may
   3-24  delegate to the Texas Department of Health or the Texas Alcoholic
   3-25  Beverage Commission authority to enforce this subchapter and may
   3-26  contract with the Texas Department of Health or the Texas Alcoholic
   3-27  Beverage Commission as necessary to administer or enforce this
    4-1  subchapter.
    4-2        (h)  The state treasurer may not delegate to or contract with
    4-3  the Texas Department of Health or the Texas Alcoholic Beverage
    4-4  Commission regarding authority to:
    4-5              (1)  hold administrative hearings under this subchapter
    4-6  or Chapters 154 and 155, Tax Code; or
    4-7              (2)  impose administrative penalties, including
    4-8  suspending or revoking permits, under this subchapter or Chapters
    4-9  154 and 155, Tax Code.
   4-10        Sec. 161.083.  SALE OR DISTRIBUTION OF CIGARETTES OR TOBACCO
   4-11  PRODUCTS TO PERSONS YOUNGER THAN 18 YEARS OF AGE <MINORS>
   4-12  PROHIBITED.  <(a)>  A person commits an offense if the person, as a
   4-13  commercial enterprise:
   4-14              (1)  with criminal negligence, sells, gives, or causes
   4-15  to be sold or given a cigarette or other tobacco product to someone
   4-16  who <the person knows> is younger than 18 years of age; or
   4-17              (2)  sells, gives, or causes to be sold or given a
   4-18  cigarette or other tobacco product to another person, knowing that
   4-19  the person receiving the cigarette or other tobacco product intends
   4-20  to deliver it to someone who is younger than 18 years of age.
   4-21        <(b)  An offense under this section is a Class C misdemeanor.>
   4-22        <(c)  It is a defense to prosecution under this section that
   4-23  the person to whom the cigarette or other tobacco product was sold
   4-24  or given presented to the defendant an apparently valid Texas
   4-25  driver's license or an identification card, issued by the
   4-26  Department of Public Safety and containing a physical description
   4-27  consistent with the person's appearance, that purported to
    5-1  establish that the person was 18 years of age or older.>
    5-2        Sec. 161.0831.  PURCHASE OF CIGARETTES OR TOBACCO PRODUCTS BY
    5-3  PERSONS YOUNGER THAN 18 YEARS OF AGE PROHIBITED.  (a)  A person
    5-4  younger than 18 years of age commits an offense if the person
    5-5  purchases a cigarette or other tobacco product.
    5-6        (b)  An offense under this section is a Class C misdemeanor.
    5-7        Sec. 161.084 <161.082>.  WARNING NOTICE.  (a)  Each person
    5-8  who sells cigarettes or tobacco products at retail or by vending
    5-9  machine shall post <a sign> in a location that is conspicuous to
   5-10  all employees and customers and that is close to the place at which
   5-11  cigarettes or <the> tobacco products may be purchased a sign that
   5-12  states that sale or provision of cigarettes or tobacco products to
   5-13  a person younger than 18 years of age is prohibited by law.
   5-14        (b)  The sign required by this section must be printed in
   5-15  English and Spanish, state that identification may be required for
   5-16  cigarette and tobacco product sales, and include a telephone number
   5-17  that a person may call to report sales or deliveries of cigarettes
   5-18  or tobacco products to persons younger than 18 years of age <must
   5-19  include the statement:>
   5-20              <SALE OR PROVISION OF TOBACCO PRODUCTS TO A MINOR UNDER
   5-21              18 YEARS OF AGE IS PROHIBITED BY LAW.  UPON CONVICTION,
   5-22              A MAXIMUM FINE OF UP TO $200 MAY BE IMPOSED>.
   5-23        (c)  <The board by rule shall determine the design and size
   5-24  of the sign.>
   5-25        <(d)  The department on request shall provide the sign
   5-26  without charge to any person who sells cigarette products.  The
   5-27  department may provide the sign without charge to cigarette
    6-1  distributors or wholesale dealers of cigarette products in this
    6-2  state for distribution to persons who sell cigarette products.  A
    6-3  distributor or wholesale dealer may not charge for distributing a
    6-4  sign under this subsection.>
    6-5        <(e)>  A person commits an offense if the person
    6-6  <intentionally> fails to display a sign as prescribed by this
    6-7  section or any rules promulgated by the state treasurer.  <An
    6-8  offense under this subsection is a Class C misdemeanor.>
    6-9        Sec. 161.085.  VENDING MACHINES.  (a)  A person may not
   6-10  install or maintain a vending machine containing cigarettes or
   6-11  tobacco products in a place that is generally accessible to persons
   6-12  younger than 18 years of age, as defined by the state treasurer
   6-13  under Subsection (c).
   6-14        (b)  Subsection (a) does not apply to:
   6-15              (1)  an industrial or manufacturing plant;
   6-16              (2)  a military installation;
   6-17              (3)  a bar, lounge, or other similar facility or
   6-18  business where persons younger than 18 years of age are not allowed
   6-19  entry unless accompanied by a parent or other adult acting in place
   6-20  of a parent; or
   6-21              (4)  a private business office not generally accessible
   6-22  to persons younger than 18 years of age.
   6-23        (c)  The state treasurer may prescribe such rules relating to
   6-24  the location of vending machines containing cigarettes or tobacco
   6-25  products as are necessary to comply with the federal rules adopted
   6-26  under the federal Alcohol, Drug Abuse and Mental Health
   6-27  Administration Reorganization Act, Pub.L. 102-321, relating to
    7-1  restricting the access of persons under 18 years of age to
    7-2  cigarettes and tobacco products.
    7-3        (d)  A person who violates this section or a rule prescribed
    7-4  under authority of this section commits an offense.
    7-5        Sec. 161.086.  PREEMPTION OF LOCAL LAW.  (a)  This subchapter
    7-6  does not affect the authority of a political subdivision to adopt
    7-7  or enforce an ordinance or requirement, including penalties in the
    7-8  form of fines, relating to the sale or distribution of cigarettes
    7-9  or tobacco products to persons younger than 18 years of age if the
   7-10  regulation, ordinance, or requirement:
   7-11              (1)  is equal to or more stringent than a requirement
   7-12  prescribed by this subchapter or a rule prescribed under authority
   7-13  of this subchapter; or
   7-14              (2)  relates to an issue that is not addressed by this
   7-15  subchapter, Chapter 154 or 155, Tax Code, or a rule prescribed
   7-16  under authority of this subchapter or Chapter 154 or 155, Tax Code.
   7-17        (b)  Notwithstanding any other provision of this subchapter,
   7-18  Chapters 154 and 155, Tax Code, shall govern exclusively the
   7-19  administration and enforcement related to permits for engaging in
   7-20  business as a distributor, wholesaler, bonded agent, or retailer of
   7-21  cigarettes in this state.
   7-22        Sec. 161.087.  REPORTS OF INSPECTIONS AND VIOLATIONS.
   7-23  (a)  Each municipality, county, state agency, or other governmental
   7-24  unit that issues a citation or makes an inspection under this
   7-25  subchapter shall notify the state treasurer of the issuance of a
   7-26  citation and the inspection as required by the rules of the state
   7-27  treasurer.  The municipality, county, state agency, or other
    8-1  governmental unit shall provide the state treasurer such supporting
    8-2  documentation of inspections and prosecutions resulting from
    8-3  violations of this subchapter as the treasurer may require by rule.
    8-4        (b)  A municipality, county, state agency, or other
    8-5  governmental unit which makes inspections or issues citations under
    8-6  a local ordinance, order, or resolution, Section 250.002, Local
    8-7  Government Code, or other law intended to restrict the sale or
    8-8  delivery of cigarettes and tobacco products to persons younger than
    8-9  18 years of age shall maintain statistics and information relating
   8-10  to violations of this subchapter and the local ordinance, order,
   8-11  resolution, or other law and activities to enforce this subchapter
   8-12  and the local ordinance, order, resolution, or other law.  The
   8-13  municipality, county, state agency, or other governmental unit
   8-14  shall report the statistics and information maintained under this
   8-15  subsection as required by the rules of the state treasurer.
   8-16        Sec. 161.088.  CRIMINAL PENALTY.  An offense under Section
   8-17  161.083, 161.084, or 161.085 is a Class C misdemeanor.
   8-18        Sec. 161.089.  ADMINISTRATIVE PENALTY.  (a)  The state
   8-19  treasurer may impose an administrative penalty, as provided by this
   8-20  section, against a person who violates Section 161.083 or 161.084
   8-21  or a rule adopted under Section 161.085.  Each day a violation
   8-22  continues or occurs is a separate violation for purposes of
   8-23  imposing a penalty.
   8-24        (b)  The penalty for a first violation may be in an amount
   8-25  not to exceed $500.
   8-26        (c)  The penalty for a second or subsequent violation may be
   8-27  in an amount not to exceed $2,000.
    9-1        (d)  The amount of the penalty shall be based on:
    9-2              (1)  the seriousness of the violation;
    9-3              (2)  the history of previous violations;
    9-4              (3)  the person's demonstrated good faith; and
    9-5              (4)  any other matter that justice may require.
    9-6        (e)  If the state treasurer determines that a violation has
    9-7  occurred, the state treasurer shall give written notice of the
    9-8  violation to the person not later than the 15th day after the date
    9-9  of the determination.  The notice shall be given by certified mail.
   9-10  The notice must include a brief summary of the alleged violation
   9-11  and a statement of the amount of the recommended penalty and must
   9-12  inform the person that the person has a right to a hearing on the
   9-13  occurrence of the violation, the amount of the penalty, or both the
   9-14  occurrence of the violation and the amount of the penalty.
   9-15        (f)  Within 20 days after the date the person receives the
   9-16  notice, the person may accept the determination by paying the
   9-17  penalty to the state treasurer or may make a written request for a
   9-18  hearing on the occurrence of the violation, the amount of the
   9-19  penalty, or both the occurrence of the violation and the amount of
   9-20  the penalty.
   9-21        (g)  If the person requests a hearing the state treasurer
   9-22  shall set a hearing and give notice of the hearing to the person.
   9-23        (h)  The notice of the hearing shall be given to the person
   9-24  under the Administrative Procedure and Texas Register Act (Article
   9-25  6252-13a, Vernon's Texas Civil Statutes).
   9-26        (i)  If the person fails to timely respond to the notice, the
   9-27  state treasurer shall begin collection efforts under Article
   10-1  6252-5e, Revised Statutes.
   10-2        (j)  A penalty collected under this section shall be
   10-3  deposited in the general revenue fund.
   10-4        (k)  All proceedings under this section are subject to the
   10-5  Administrative Procedure and Texas Register Act (Article 6252-13a,
   10-6  Vernon's Texas Civil Statutes).
   10-7        Sec. 161.0891.  CIVIL PENALTY.  (a)  A person is subject to a
   10-8  civil penalty for each day during which the person is in violation
   10-9  of Section 161.084 or a rule adopted under Section 161.085 and for
  10-10  each act of violation of Section 161.083.  The amount of the civil
  10-11  penalty shall be not more than $500.  If it is shown that the
  10-12  person has been found to have violated Section 161.083 or Section
  10-13  161.084 or a rule adopted under Section 161.085 once before, the
  10-14  amount of the civil penalty shall be not more than $2,000.
  10-15        (b)  In determining the amount of the civil penalty, the
  10-16  court shall consider:
  10-17              (1)  the person's previous violations, if any;
  10-18              (2)  the seriousness of the violation, including the
  10-19  nature, circumstances, extent, and gravity of the violation;
  10-20              (3)  the demonstrated good faith of the person; and
  10-21              (4)  the amount necessary to deter future violations.
  10-22        (c)  At the request of the state treasurer or on the
  10-23  initiative of the attorney general or a district or county
  10-24  attorney, the attorney general or the appropriate district or
  10-25  county attorney may institute and conduct the suit authorized by
  10-26  this section in the name of the state.
  10-27        (d)  The state treasurer and the party bringing the suit may
   11-1  recover reasonable expenses incurred in obtaining civil penalties,
   11-2  including investigation costs, court costs, reasonable attorney
   11-3  fees, witness fees, and deposition expenses.
   11-4        (e)  A penalty collected under this section shall be
   11-5  deposited to the credit of the general revenue fund.
   11-6        (f)  The civil penalty authorized by this section is in
   11-7  addition to any other civil, administrative, or criminal penalty
   11-8  provided by law.
   11-9        Sec. 161.0892.  DISCIPLINARY ACTION FOR CERTAIN VIOLATIONS.
  11-10  (a)  If the state treasurer finds, after notice and hearing as
  11-11  provided by Subchapter D, Chapter 154, or Subchapter C, Chapter
  11-12  155, Tax Code, as applicable, that a permit holder has violated
  11-13  this subchapter or rules adopted under this subchapter more than
  11-14  twice within a period of 12 consecutive months the state treasurer
  11-15  may revoke or suspend the permit.  The state treasurer shall adopt
  11-16  rules stating the time periods for which suspensions under this
  11-17  section shall be effective and the conditions under which
  11-18  revocations under this section shall be imposed.
  11-19        (b)  The state treasurer may revoke a person's permit if the
  11-20  person sells cigarettes or tobacco products during a period in
  11-21  which the permit has been suspended under this section.
  11-22        Sec. 161.0893.  DEFENSE.  (a)  It is a defense to
  11-23  prosecution, or the imposition of administrative or civil penalties
  11-24  or revocation or suspension of a permit, based on a violation of
  11-25  Section 161.083 that the person to whom a cigarette or tobacco
  11-26  product was sold or given presented to the defendant apparently
  11-27  valid proof of identification that contained a physical description
   12-1  and photograph consistent with the person's appearance, purported
   12-2  to establish that the person was 18 years of age or older, and was
   12-3  purportedly issued by a governmental agency.
   12-4        (b)  The proof of identification may include a driver's
   12-5  license issued by this state or another state, a passport, or an
   12-6  identification card issued by a state or the federal government.
   12-7        Sec. 161.0894.  LIABILITY FOR ACTIONS OF EMPLOYEE.  With
   12-8  respect to a prosecution of an employer or to the revocation or
   12-9  suspension of a permit, based on a violation of Section 161.083 by
  12-10  an employee, it is a defense that the employer acted in good faith
  12-11  and did all of the following:
  12-12              (1)  conspicuously posted and reasonably maintained
  12-13  appropriate signs in areas frequented by employees, such as near
  12-14  time cards or in lunchrooms, reminding the employees of the
  12-15  provisions of this subchapter and the penalties provided hereunder;
  12-16              (2)  conspicuously posted and reasonably maintained
  12-17  signs on or near any cash register or comparable area reminding
  12-18  employees to ask for proof of identification before selling
  12-19  cigarettes or tobacco products if there is any doubt as to the
  12-20  customer being younger than 18 years of age;
  12-21              (3)  provided the employee a copy of this subchapter or
  12-22  a reasonable summary of this subchapter and required the employee
  12-23  to sign a statement that the copy or the summary was received and
  12-24  understood and that the employee will uphold the law;
  12-25              (4)  provided the employee with a written list of the
  12-26  types of proof of identification that are deemed valid by the state
  12-27  to establish legal age under this subchapter; and
   13-1              (5)  if the employee has violated this subchapter more
   13-2  than once:
   13-3                    (A)  promptly terminated the employee's
   13-4  employment; or
   13-5                    (B)  promptly reassigned the employee to a
   13-6  position in which the employee is prohibited from selling and does
   13-7  not sell cigarettes or tobacco products for a period of one year
   13-8  from the date of the employee's last violation.
   13-9        SECTION 3.  Subsection (a), Section 154.114, Tax Code, is
  13-10  amended to read as follows:
  13-11        (a)  The treasurer may suspend or revoke a distributor's,
  13-12  wholesaler's, bonded agent's, or retailer's permit if the treasurer
  13-13  finds, after notice and hearing as provided by this section, that
  13-14  the permit holder violated this chapter or an administrative rule
  13-15  made under this chapter or Section 161.083, 161.084, or 161.085,
  13-16  Health and Safety Code, or a rule promulgated thereunder.
  13-17        SECTION 4.  Subsection (a), Section 155.059, Tax Code, is
  13-18  amended to read as follows:
  13-19        (a)  The treasurer may revoke or suspend a distributor's,
  13-20  wholesaler's, bonded agent's, or retailer's permit if the treasurer
  13-21  finds, after notice and hearing as provided by this section, that
  13-22  the permit holder violated this chapter or an administrative rule
  13-23  made under this chapter or Section 161.083, 161.084, or 161.085,
  13-24  Health and Safety Code, or a rule promulgated thereunder.
  13-25        SECTION 5.  Subsection (a), Section 154.403, Tax Code, is
  13-26  amended to read as follows:
  13-27        (a)  The treasurer with or without process may seize:
   14-1              (1)  cigarettes taxed under this chapter that are
   14-2  possessed or controlled by a person for the purpose of selling or
   14-3  removing the cigarettes in violation of this chapter;
   14-4              (2)  cigarettes that are removed, deposited, or
   14-5  concealed by a person intending to avoid payment of taxes imposed
   14-6  by this chapter;
   14-7              (3)  an automobile, boat, conveyance, or other type of
   14-8  vehicle used to remove or transport cigarettes by a person
   14-9  intending to avoid payment of taxes imposed by this chapter; <and>
  14-10              (4)  equipment, paraphernalia, or other tangible
  14-11  personal property used by a person intending to avoid payment of
  14-12  taxes imposed by this chapter found in the place where the
  14-13  cigarettes are found; and
  14-14              (5)  a vending machine for a third or subsequent
  14-15  violation of Section 161.085, Health and Safety Code, or a rule
  14-16  adopted under that section or a violation of this chapter.
  14-17        SECTION 6.  Section 154.304, Tax Code, is amended to read as
  14-18  follows:
  14-19        Sec. 154.304.  INSPECTION.  (a)  To determine the tax
  14-20  liability of a person dealing in cigarettes or the person's
  14-21  compliance with any provisions of this chapter or Subchapter H,
  14-22  Chapter 161, Health and Safety Code, the treasurer may during
  14-23  business hours:
  14-24              (1)  inspect any place of business <premises>,
  14-25  including a vehicle or a vending machine and its contents, where
  14-26  cigarettes are manufactured, produced, stored, transported, sold,
  14-27  or offered for sale or exchange;
   15-1              (2)  remain on the premises as long as necessary during
   15-2  business hours to determine the tax liability;
   15-3              (3)  examine the records required by this chapter or
   15-4  other records, books, documents, papers, accounts, and objects that
   15-5  the treasurer determines are necessary for conducting a complete
   15-6  examination; and
   15-7              (4)  examine stocks of cigarettes and cigarette stamps.
   15-8        (b)  A person dealing in cigarettes may not during business
   15-9  hours:
  15-10              (1)  fail to produce, on the treasurer's demand,
  15-11  records required by this chapter; or
  15-12              (2)  hinder or prevent the inspection of records or the
  15-13  examination of the premises.
  15-14        SECTION 7.  Section 154.512, Tax Code, is amended to read as
  15-15  follows:
  15-16        Sec. 154.512.  REFUSAL OF INSPECTION <OF PREMISES>.  A person
  15-17  commits an offense if the person refuses to permit a complete
  15-18  inspection during business hours by an authorized representative of
  15-19  the treasurer of any place of business <premises> where cigarettes
  15-20  are manufactured, produced, stored, transported, sold, or offered
  15-21  for sale or exchange, or fails to produce, on the treasurer's
  15-22  demand, records required by this chapter.
  15-23        SECTION 8.  Section 155.183, Tax Code, is amended to read as
  15-24  follows:
  15-25        Sec. 155.183.  INSPECTION.  (a)  To determine the tax
  15-26  liability of a person dealing in tobacco products or the person's
  15-27  compliance with any provisions of this chapter or Subchapter H,
   16-1  Chapter 161, Health and Safety Code, the treasurer may during
   16-2  business hours:
   16-3              (1)  inspect any place of business <premises>,
   16-4  including a vehicle or a vending machine and its contents, where
   16-5  tobacco products are manufactured, produced, stored, transported,
   16-6  sold, or offered for sale or exchange;
   16-7              (2)  remain on the premises as long as necessary during
   16-8  business hours <to determine the tax liability>;
   16-9              (3)  examine the records required by this chapter or
  16-10  other records, books, documents, papers, accounts, and objects that
  16-11  the treasurer determines are necessary for conducting a complete
  16-12  examination; and
  16-13              (4)  examine stocks of tobacco products.
  16-14        (b)  A person dealing in tobacco products may not during
  16-15  business hours:
  16-16              (1)  fail to produce, on the treasurer's demand,
  16-17  records required by this chapter; or
  16-18              (2)  hinder or prevent the inspection of records or the
  16-19  examination of the premises.
  16-20        SECTION 9.  Section 155.210, Tax Code, is amended to read as
  16-21  follows:
  16-22        Sec. 155.210.  REFUSAL OF INSPECTION <OF PREMISES>.  A person
  16-23  commits an offense if the person refuses to permit a complete
  16-24  inspection during business hours by an authorized representative of
  16-25  the treasurer of any place of business <premises> where tobacco
  16-26  products are manufactured, produced, stored, transported, sold, or
  16-27  offered for sale or exchange or fails to produce, on the
   17-1  treasurer's demand, records required by this chapter.
   17-2        SECTION 10.  Chapter 250, Local Government Code, is amended
   17-3  by adding Section 250.002 to read as follows:
   17-4        Sec. 250.002.  LOCAL ENFORCEMENT OF PROHIBITIONS ON SALE OR
   17-5  DISTRIBUTION OF CIGARETTES OR TOBACCO PRODUCTS TO PERSONS YOUNGER
   17-6  THAN 18.  (a)  The governing body of a municipality or county may
   17-7  grant authority under this section to a municipal or county
   17-8  employee who is not a peace officer and who is employed by:
   17-9              (1)  a health authority appointed under Section
  17-10  121.021, Health and Safety Code;
  17-11              (2)  a local health department established under
  17-12  Section 121.031, Health and Safety Code; or
  17-13              (3)  a public health district established under Section
  17-14  121.041, Health and Safety Code.
  17-15        (b)  The governing body may grant to the employee the power
  17-16  to conduct random unannounced inspections of locations where
  17-17  cigarettes or tobacco products are sold or delivered within the
  17-18  territorial limits of the municipality or county.
  17-19        (c)  The governing body may also grant to the employee the
  17-20  authority to issue a citation in the territorial limits of the
  17-21  municipality or county to enforce a provision of Subchapter H,
  17-22  Chapter 161, Health and Safety Code.  The citation must state the
  17-23  name of the person cited, the violation charged, and the time and
  17-24  place the person is required to appear in court.
  17-25        (d)  The court in which a person who receives a citation
  17-26  under Subsection (c) is to appear may issue an arrest warrant for
  17-27  the person for the violation described in the citation if the
   18-1  person fails to appear on or before the return date stated in the
   18-2  citation.
   18-3        (e)  County courts, justice courts, and municipal courts,
   18-4  including municipal courts of record, have jurisdiction in all
   18-5  criminal cases arising under this section that:
   18-6              (1)  arise within the territorial limits of the
   18-7  municipality or county, as appropriate; and
   18-8              (2)  are punishable only by a fine not to exceed
   18-9  $2,000.
  18-10        (f)  Subsection (e) prevails over any other provision of law,
  18-11  ordinance, or charter.
  18-12        SECTION 11.  Section 21.927, Education Code, is amended to
  18-13  read as follows:
  18-14        Sec. 21.927.  SMOKING AND USE OF OTHER TOBACCO PRODUCTS ON
  18-15  SCHOOL PROPERTY.  The board of trustees of a school district shall
  18-16  prohibit <students from> smoking and the use of <or using> tobacco
  18-17  products at any school related or sanctioned activity on or off
  18-18  school property and shall instruct school personnel to enforce the
  18-19  policy against smoking and the use of tobacco products on school
  18-20  property.  It shall be the responsibility of the Central Education
  18-21  Agency to monitor and enforce this provision of the law.
  18-22        SECTION 12.  (a)  Except as provided by Subsection (b) of
  18-23  this section, this Act takes effect September 1, 1993.
  18-24        (b)  Sections 1 through 10 of this Act take effect only if
  18-25  the administration and enforcement of the program provided by this
  18-26  Act are funded through provisions of S.B. No. 5, Acts of the 73rd
  18-27  Legislature, Regular Session, 1993.  If such funding is not
   19-1  provided or if the bill providing the funding is not finally passed
   19-2  and approved by the governor, those sections have no effect.
   19-3        SECTION 13.  (a)  The change in law made by this Act applies
   19-4  only to an offense committed on or after the effective date of this
   19-5  Act.  For purposes of this subsection, an offense is committed
   19-6  before the effective date of this Act if any element of the offense
   19-7  occurs before that date.  An offense committed before the effective
   19-8  date of this Act is governed by the law in effect when the offense
   19-9  was committed, and the former law is continued in effect for this
  19-10  purpose.
  19-11        (b)  This Act applies to the sale or distribution of
  19-12  cigarettes or tobacco products on or after the effective date of
  19-13  this Act.  The sale or distribution of a cigarette or tobacco
  19-14  product before the effective date of this Act is governed by the
  19-15  law in effect when the sale or distribution was made, and that law
  19-16  is continued in effect for that purpose.
  19-17        SECTION 14.  The importance of this legislation and the
  19-18  crowded condition of the calendars in both houses create an
  19-19  emergency and an imperative public necessity that the
  19-20  constitutional rule requiring bills to be read on three several
  19-21  days in each house be suspended, and this rule is hereby suspended.