By Zaffirini, et al.                                   S.B. No. 373
          Substitute the following for S.B. No. 373:
          By Tallas                                          C.S.S.B. No. 373
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the regulation of the sale, distribution or use of
    1-3  cigarettes and tobacco products; providing penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  This Act may be cited as the Children's Tobacco
    1-6  Prevention and Enforcement Act.
    1-7        SECTION 2.  Subchapter H, Chapter 161, Health and Safety
    1-8  Code, is amended by adding Section 161.083 to read as follows:
    1-9        Sec. 161.083.  PURCHASE OF CIGARETTES OR TOBACCO PRODUCTS BY
   1-10  PERSONS YOUNGER THAN 18 YEARS OF AGE PROHIBITED.  (a)  A person
   1-11  younger than 18 years of age commits an offense if the person
   1-12  purchases a cigarette or other tobacco product.
   1-13        (b)  An offense under this section is subject to a fine not
   1-14  to exceed $100 and the provisions of Article 45.521, Code of
   1-15  Criminal Procedure.
   1-16        SECTION 3.  Subchapter H, Chapter 161, Health and Safety
   1-17  Code, is amended by adding Section 161.084 to read as follows:
   1-18        Sec. 161.084.  ADMINISTRATION AND IMPLEMENTATION.  (a)  The
   1-19  state treasurer shall be responsible for the administration and
   1-20  implementation of this subchapter and for compliance with the
   1-21  related provisions of the federal Alcohol, Drug Abuse, and Mental
   1-22  Health Administration Reorganization Act, Pub. L. 102-321, except
   1-23  as otherwise provided by state law.
   1-24        (b)  Upon disposition of a case relating to a violation of
    2-1  Section 161.081, 161.082 or 161.083 of this subchapter, the clerk
    2-2  of the court shall promptly notify the state treasurer of the
    2-3  disposition of the case, regardless of whether the case resulted in
    2-4  a conviction.
    2-5        (c)  The state treasurer with the cooperation of local law
    2-6  enforcement agencies shall annually conduct random, unannounced
    2-7  inspections at locations where tobacco products are sold to ensure
    2-8  compliance with this subchapter.  Persons under 18 years of age may
    2-9  be enlisted by local law enforcement agencies to ensure compliance
   2-10  with this subchapter, provided that such persons may be enlisted
   2-11  only if the inspection is conducted under the direct supervision of
   2-12  local law enforcement agency personnel.  Each cooperating local law
   2-13  enforcement agency shall file a report with the state treasurer
   2-14  which summarizes findings regarding compliance with this section
   2-15  and the number of violations occurring within their jurisdiction.
   2-16  The state treasurer shall prepare the report required by section
   2-17  one thousand nine hundred and twenty-six of subpart I part B of
   2-18  title XIX of the federal Public Health Service Act (42 U.S.C.
   2-19  300X-26) on an annual basis for submission to the Secretary of the
   2-20  United States Department of Health and Human Services.
   2-21        (d)  Should the U.S. Department of Health and Human Services
   2-22  issue rules under the federal Alcohol, Drug Abuse, and Mental
   2-23  Health Administration Reorganization Act, Pub. L. 102-321,
   2-24  requiring state action not provided for in Subsections (a), (b) and
   2-25  (c) of this section, the state treasurer is authorized to adopt
   2-26  rules, only to the extent necessary to avoid loss of federal
   2-27  funding, to provide for administrative penalties and suspension and
    3-1  revocation of permits issued under Chapter 154 and 155, Tax Code,
    3-2  for a violation of Sections 161.081 or 161.082 by a permit holder.
    3-3        (e)  In promulgation of rules under Subsection (d), the state
    3-4  treasurer shall provide for the following:
    3-5              (1)  any administrative penalties for violations of
    3-6  Sections 161.081 or 161.082 shall not exceed the following
    3-7  schedule:
    3-8                    (i)  the penalty for the first violation may be
    3-9  in an amount not to exceed $500;
   3-10                    (ii)  the penalty for a second or subsequent
   3-11  violation may be in an amount not to exceed $1000.
   3-12                    (iii)  the penalty for a third or subsequent
   3-13  violation of Section 161.081 may include the suspension or
   3-14  revocation of a retailer's permit issued under Chapter 154 or 155,
   3-15  Tax Code; provided however, that no suspension may exceed a period
   3-16  of 10 days.  Further, a permit may not be revoked until such permit
   3-17  has been suspended at least once in the prior 12 month period.  The
   3-18  amount of a penalty shall be based on:
   3-19                    (A)  the seriousness of the violation;
   3-20                    (B)  the history of previous violations;
   3-21                    (C)  the person's demonstrated good faith; and
   3-22                    (D)  any other matter that justice may require.
   3-23              (2)  A determination that a violation has occurred
   3-24  shall be made following written notice and hearing pursuant to the
   3-25  Administrative Procedure and Texas Register Act (Article 6252-13a,
   3-26  Vernon's Texas Civil Statutes).
   3-27              (3)  It shall be a defense to the imposition of
    4-1  administrative penalties or suspension or revocation of a permit
    4-2  for a violation of Sections 161.081 that the person to whom the
    4-3  cigarette or tobacco product was sold or given presented to the
    4-4  person apparently valid proof of identification that contained a
    4-5  physical description and photograph consistent with the person's
    4-6  appearance, purported to establish that the person is 18 years of
    4-7  age or older, and was purportedly issued by a governmental agency.
    4-8  The proof of identification may include a driver's license issued
    4-9  by this state or another state, a passport or an identification
   4-10  card issued by a state or the federal government.
   4-11              (4)  With respect to the revocation or suspension of a
   4-12  permit, based on a violation of Section 161.081 by an employee, it
   4-13  is a defense that the employer acted in good faith and did the
   4-14  following:
   4-15                    (i)  conspicuously posted and reasonably
   4-16  maintained appropriate signs in areas frequented by employees, such
   4-17  as near time cards or in lunchrooms, reminding the employees of the
   4-18  provisions of this subchapter and the penalties provided hereunder;
   4-19                    (ii)  conspicuously posted and reasonable
   4-20  maintained signs on or near any cash register or comparable area
   4-21  reminding employees to ask for proof of identification before
   4-22  selling cigarettes or tobacco products if there is any doubt as to
   4-23  the customer being younger than 18 years of age:
   4-24                    (iii)  provided the employee a copy of this
   4-25  subchapter or a reasonable summary of this subchapter and required
   4-26  the employee to sign a statement that the copy or the summary was
   4-27  received and understood and that the employee will uphold the law;
    5-1                    (iv)  provided the employee with a written list
    5-2  of the types of proof of identification that are deemed valid by
    5-3  the state to establish legal age under this subchapter; and
    5-4                    (v)  if the employee has violated this subchapter
    5-5  more than once:
    5-6                          (A)  promptly terminated the employee's
    5-7  employment; or
    5-8                          (B)  promptly reassigned the employee to a
    5-9  position in which the employee is prohibited from selling and does
   5-10  not sell cigarettes or tobacco products for a period of one year
   5-11  from the date of the employee's last violation.
   5-12        SECTION 4.  Subchapter H, Chapter 161, Health and Safety
   5-13  Code, is amended by adding Section 161.085 to read as follows:
   5-14        Sec. 161.085.  ENFORCEMENT.  The provisions of Subchapter H,
   5-15  Chapter 161, Health and Safety Code, and Chapters 154 and 155, Tax
   5-16  Code, shall govern exclusively the sale and distribution of
   5-17  cigarettes and other tobacco products in this state; provided,
   5-18  however, that this section shall not affect an ordinance,
   5-19  regulation, order, resolution or policy adopted by the governing
   5-20  board of a political subdivision relating to the regulation of the
   5-21  sale or distribution of cigarettes or other tobacco products in
   5-22  effect on October 1, 1993.
   5-23        SECTION 5.  The change in law made by this Act applies only
   5-24  to an offense committed on or after the effective date of this Act.
   5-25  For the purposes of this subsection, an offense is committed before
   5-26  the effective date of this Act if any element of the offense occurs
   5-27  before that date.  An offense committed before the effective date
    6-1  of this Act is governed by the law in effect when the offense was
    6-2  committed, and the former law is continued in effect for this
    6-3  purpose.
    6-4        SECTION 6.  The importance of this legislation and the
    6-5  crowded condition of the calendars in both houses create an
    6-6  emergency and an imperative public necessity that the
    6-7  constitutional rule requiring bills to be read on three several
    6-8  days in each house be suspended, and this rule is hereby suspended.