By Hirschi, Delisi, Luna, Romo, Naishtat              H.B. No. 1152
       74R5159 DAK-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the sale or possession of tobacco products and the
    1-3  enforcement of the law prohibiting the sale of tobacco products to
    1-4  minors; providing penalties; establishing fees.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Section 154.111(b), Tax Code, is amended to read
    1-7  as follows:
    1-8        (b)  An application for a permit required by this chapter
    1-9  must be accompanied by a fee of:
   1-10              (1)  $100 for a bonded agent's permit;
   1-11              (2)  $100 for a distributor's permit;
   1-12              (3)  $50 for a wholesaler's permit;  <and>
   1-13              (4)  $50 for a retailer's permit; and
   1-14              (5)  $15 for each permit for a vehicle if the applicant
   1-15  is also applying for a permit as a bonded agent, distributor, or
   1-16  wholesaler or has received a current permit from the treasurer
   1-17  under Sections 154.101 and 154.110.
   1-18        SECTION 2.  Section 154.114, Tax Code, is amended by adding
   1-19  Subsection (h) to read as follows:
   1-20        (h)  The treasurer shall suspend or revoke a retailer's
   1-21  permit if the treasurer finds, after notice and hearing as provided
   1-22  by this section, that the retailer has been adjudged guilty of an
   1-23  offense under Section 161.081(d), Health and Safety Code, on four
   1-24  or more occasions within a five-year period.
    2-1        SECTION 3.  Section 154.121, Tax Code, is amended to read as
    2-2  follows:
    2-3        Sec. 154.121.  REVENUE.  (a)  Revenue from the sale of
    2-4  permits to distributors, wholesalers, and bonded agents is
    2-5  allocated in the same manner as other revenue allocated by
    2-6  Subchapter J.
    2-7        (b)  Subject to Section 154.602, revenue from the sale of
    2-8  permits to retailers shall be deposited in the state treasury to
    2-9  the credit of the account created by Section 161.083, Health and
   2-10  Safety Code.
   2-11        SECTION 4.  Section 154.602, Tax Code, is amended to read as
   2-12  follows:
   2-13        Sec. 154.602.  Funds for Enforcement.  The legislature may
   2-14  appropriate money from the cigarette tax to the treasurer for
   2-15  manufacturing and printing of cigarette tax stamps and for the
   2-16  administration of the duties of the treasurer under this chapter.
   2-17  Amounts appropriated under this subsection shall be taken from
   2-18  revenue received from the cigarette tax before the revenue is
   2-19  allocated under Section 154.121(b) or 154.603 of this code to the
   2-20  funds specified by those sections <that section> and shall be
   2-21  deposited to the credit of the treasury fiscal agency fund.  The
   2-22  amount withheld from revenue received from retailers under Section
   2-23  154.111(b)(4) shall be in proportion to the costs of issuing
   2-24  retailers' permits and the enforcement of this chapter on retail
   2-25  premises.
   2-26        SECTION 5.  Section 155.049(b), Tax Code, is amended to read
   2-27  as follows:
    3-1        (b)  An application for a permit required by this chapter
    3-2  must be accompanied by a fee of:
    3-3              (1)  $100 for a bonded agent's permit;
    3-4              (2)  $100 for a distributor's permit;
    3-5              (3)  $50 for a wholesaler's permit;  <and>
    3-6              (4)  $50 for a retailer's permit; and
    3-7              (5)  $15 for each permit for a vehicle if the applicant
    3-8  is also applying for a permit as a bonded agent, distributor, or
    3-9  wholesaler or has received a current permit from the treasurer
   3-10  under Sections 155.041 and 155.048.
   3-11        SECTION 6.  Section 155.058, Tax Code, is amended to read as
   3-12  follows:
   3-13        Sec. 155.058.  REVENUE.  (a)  Revenue from the sale of
   3-14  permits to distributors, wholesalers, and bonded agents is
   3-15  allocated in the same manner that other revenue is allocated by
   3-16  Subchapter H.
   3-17        (b)  Subject to Section 155.242, revenue from the sale of
   3-18  permits to retailers shall be deposited in the state treasury to
   3-19  the credit of the account created by Section 161.083, Health and
   3-20  Safety Code.
   3-21        SECTION 7.  Section 155.059, Tax Code, is amended by adding
   3-22  Subsection (h) to read as follows:
   3-23        (h)  The treasurer may suspend or revoke a retailer's permit
   3-24  if the treasurer finds, after notice and hearing as provided by
   3-25  this section, that the retailer has been adjudged guilty of an
   3-26  offense under Section 161.081(d), Health and Safety Code, on four
   3-27  or more occasions within a five-year period.
    4-1        SECTION 8.  Subchapter H, Chapter 155, Tax Code, is amended
    4-2  by adding Section 155.242 to read as follows:
    4-3        Sec. 155.242.  ENFORCEMENT FUNDS:  RETAILER'S PERMIT REVENUE.
    4-4  The legislature may appropriate money from the revenue received
    4-5  from permits issued to retailers under Section 155.049(b)(4) to the
    4-6  treasurer for the administration of the duties of the treasurer in
    4-7  issuing those permits and in enforcing this chapter on retail
    4-8  premises.  Amounts appropriated under this section shall be taken
    4-9  from revenue received from the permits before the revenue is
   4-10  allocated under Section 155.058 to the fund specified by that
   4-11  section and shall be deposited to the credit of the treasury fiscal
   4-12  agency fund.
   4-13        SECTION 9.  The heading to Subchapter H, Chapter 161, Health
   4-14  and Safety Code, is amended to read as follows:
   4-15             SUBCHAPTER H.  SALE OF CIGARETTES OR TOBACCO
   4-16               PRODUCTS TO MINORS; POSSESSION BY MINORS
   4-17        SECTION 10.  Section 161.081, Health and Safety Code, is
   4-18  amended to read as follows:
   4-19        Sec. 161.081.  Sale of Cigarettes or Tobacco Products to
   4-20  Minors Prohibited.  (a)  A person commits an offense if the person,
   4-21  as a commercial enterprise:
   4-22              (1)  sells, gives, or causes to be sold or given a
   4-23  cigarette or other tobacco product to another <someone the> person
   4-24  who <knows> is younger than 18 years of age; or
   4-25              (2)  sells, gives, or causes to be sold or given a
   4-26  cigarette or other tobacco product to another person, knowing that
   4-27  the person receiving the cigarette or other tobacco product intends
    5-1  to deliver it to someone who is younger than 18 years of age.
    5-2        (b)  An offense under Subsection (a) <this section> is a
    5-3  Class C misdemeanor.
    5-4        (c)  It is a defense to prosecution under this section that
    5-5  the person to whom the cigarette or other tobacco product was sold
    5-6  or given presented to the defendant an apparently valid Texas
    5-7  driver's license or an identification card, issued by the
    5-8  Department of Public Safety and containing a physical description
    5-9  consistent with the person's appearance, that purported to
   5-10  establish that the person was 18 years of age or older.
   5-11        (d)  Criminal liability for a violation of this section
   5-12  extends, in the manner authorized by Section 7.22, Penal Code, to a
   5-13  corporation or association that is a permit holder and that employs
   5-14  a person who commits an offense under Subsection (a).
   5-15        (e)  A court may sentence a permit holder that is adjudged
   5-16  guilty of an offense under Subsection (d) to pay a fine of:
   5-17              (1)  $200 for the first offense;
   5-18              (2)  $600 for an offense if, within a five-year period
   5-19  preceding the offense, one other offense under this section was
   5-20  committed;
   5-21              (3)  $1,200 for an offense if, within a five-year
   5-22  period preceding the offense, two other offenses under this section
   5-23  were committed; or
   5-24              (4)  $4,000 for an offense if, within a five-year
   5-25  period preceding the offense, three or more offenses under this
   5-26  section were committed.
   5-27        (f)  In this section, "permit holder" has the meaning
    6-1  assigned that term by Section 155.001, Tax Code.
    6-2        SECTION 11.  Subchapter H, Chapter 161, Health and Safety
    6-3  Code, is amended by adding Section 161.0815 to read as follows:
    6-4        Sec. 161.0815.  POSSESSION OF CIGARETTES OR TOBACCO PRODUCTS
    6-5  BY MINORS PROHIBITED.  (a)  A person commits an offense if the
    6-6  person is younger than 18 years of age and possesses a cigarette or
    6-7  other tobacco product.
    6-8        (b)  An offense under this section is punishable by a fine of
    6-9  not more than $25.
   6-10        (c)  It is an affirmative defense to prosecution under this
   6-11  section that the person who possesses a cigarette or other tobacco
   6-12  product does so for a bona fide medical, psychiatric, judicial,
   6-13  legislative, or law enforcement purpose.
   6-14        (d)  It is an affirmative defense to prosecution under this
   6-15  section that the person who possesses a cigarette or other tobacco
   6-16  product does so while in the course and scope of employment if the
   6-17  person is an employee of a permit holder, as that term is defined
   6-18  by Section 155.001, Tax Code.
   6-19        SECTION 12.  Subchapter H, Chapter 161, Health and Safety
   6-20  Code, is amended by adding Sections 161.083 and 161.084 to read as
   6-21  follows:
   6-22        Sec. 161.083.  COORDINATION OF LOCAL ENFORCEMENT BY TEXAS
   6-23  D.A.R.E. INSTITUTE; SPECIAL ACCOUNT.  (a)  An account is created in
   6-24  the state treasury for the deposit of revenue under Sections
   6-25  154.121(b) and 155.058(b), Tax Code.  Money from the account shall
   6-26  be appropriated only to the Texas Commission on Alcohol and Drug
   6-27  Abuse for the Texas D.A.R.E. Institute for the institute's programs
    7-1  relating to education and awareness concerning the use of drugs,
    7-2  alcohol, and tobacco.
    7-3        (b)  In this section, "Texas D.A.R.E. Institute" means the
    7-4  Texas Drug Abuse Resistance Education Institute that is a grant
    7-5  program of Southwest Texas State University.
    7-6        Sec. 161.084.  ENFORCEMENT.  The Texas Alcoholic Beverage
    7-7  Commission shall enforce this subchapter.
    7-8        SECTION 13.  (a)  Except as provided by Subsection (b) of
    7-9  this section, this Act takes effect September 1, 1995.
   7-10        (b)  Sections 1 and 5 of this Act take effect May 1, 1996,
   7-11  and apply only to a retailer's permit that expires on or after May
   7-12  31, 1996.
   7-13        SECTION 14.  The importance of this legislation and the
   7-14  crowded condition of the calendars in both houses create an
   7-15  emergency and an imperative public necessity that the
   7-16  constitutional rule requiring bills to be read on three several
   7-17  days in each house be suspended, and this rule is hereby suspended.