By Carter                                        H.B. No. 602

      75R2355 MCK-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to retailers' permits for, and programs funded by, tobacco

 1-3     sales.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 154.111, Tax Code, is amended to read as

 1-6     follows:

 1-7           Sec. 154.111.  PERMIT YEAR; FEES.  (a) A permit required by

 1-8     this chapter expires on the last day of February of each year,

 1-9     except that the retailer's permit required by Section 154.101

1-10     expires on the last day of May of each even-numbered year.

1-11           (b)  An application for a permit required by this chapter

1-12     must be accompanied by a fee of:

1-13                 (1)  $100 for a bonded agent's permit;

1-14                 (2)  $100 for a distributor's permit;

1-15                 (3)  $50 for a wholesaler's permit; [and]

1-16                 (4)  $50 for a retailer's permit; and

1-17                 (5)  $15 for each permit for a vehicle if the applicant

1-18     is also applying for a permit as a bonded agent, distributor, or

1-19     wholesaler or has received a current permit from the comptroller

1-20     [treasurer] under Sections 154.101 and 154.110.

1-21           (c)  [A fee is not required for a retailer's permit.]

1-22           [(d)]  For a new or renewal permit required by Section

1-23     154.101, the comptroller [treasurer] shall prorate the fee

1-24     according to the number of months remaining during the calendar

 2-1     year that the permit is to be in effect.

 2-2           (d) [(e)]  A person who does not obtain a permit each year in

 2-3     a timely manner must pay a fee of $50 in addition to the

 2-4     application fee for the permit.

 2-5           (e) [(f)]  If at the date of issuance a permit will expire

 2-6     within three months, the comptroller [treasurer] may collect the

 2-7     prorated  permit fee or the fee for the current year and, with the

 2-8     consent of the permit holder, may collect the fee for the next

 2-9     permit year and issue a permit or permits for both periods, as

2-10     applicable.

2-11           SECTION 2.  Section 154.121, Tax Code, is amended to read as

2-12     follows:

2-13           Sec. 154.121.  REVENUE.  (a) Revenue from the sale of permits

2-14     to distributors, wholesalers, and bonded agents is allocated in the

2-15     same manner as other revenue allocated by Subchapter J.

2-16           (b)  Subject to Section 154.122, revenue from the sale of

2-17     permits to retailers shall be deposited in the state treasury to

2-18     the credit of a special account.  Money from the account may be

2-19     appropriated only to the Texas Commission on Alcohol and Drug Abuse

2-20     for the Texas D.A.R.E.  Institute for the institute's programs

2-21     relating to tobacco enforcement and education and awareness

2-22     concerning the use of drugs, alcohol, and tobacco.

2-23           (c)  In this section, "Texas D.A.R.E. Institute" means the

2-24     Texas Drug Abuse Resistance Education Institute that is a grant

2-25     program of Southwest Texas State University.

2-26           SECTION 3.  Subchapter D, Chapter 154, Tax Code, is amended

2-27     by adding Section 154.122 to read as follows:

 3-1           Sec. 154.122.  ENFORCEMENT FUNDS: RETAILER'S PERMIT REVENUE.

 3-2     The legislature may appropriate money from the revenue received

 3-3     from permits issued to retailers under Section 154.111(b)(4) to the

 3-4     comptroller for the administration of the duties of the comptroller

 3-5     in issuing retailers' permits and in enforcing this chapter on

 3-6     retail premises. Amounts appropriated under this section shall be

 3-7     taken from revenue received from the permits before the revenue is

 3-8     allocated under Section 154.121(b) to the account specified by that

 3-9     section.

3-10           SECTION 4.  Section 155.049, Tax Code, is amended to read as

3-11     follows:

3-12           Sec. 155.049.  LICENSING YEAR; FEES.  (a) A permit required

3-13     by this chapter expires on the last day of February of each year,

3-14     except the retailer's permit required by Section 155.041 expires on

3-15     the last day of May of each even-numbered year.

3-16           (b)  An application for a permit required by this chapter

3-17     must be accompanied by a fee of:

3-18                 (1)  $100 for a bonded agent's permit;

3-19                 (2)  $100 for a distributor's permit;

3-20                 (3)  $50 for a wholesaler's permit; [and]

3-21                 (4)  $50 for a retailer's permit; and

3-22                 (5)  $15 for each permit for a vehicle if the applicant

3-23     is also applying for a permit as a bonded agent, distributor, or

3-24     wholesaler or has received a current permit from the comptroller

3-25     [treasurer] under Sections 155.041 and 155.048.

3-26           (c)  [A fee is not required for a retailer's permit.]

3-27           [(d)]  For a new or renewal permit required by Section

 4-1     155.041, the comptroller [treasurer] shall prorate the fee

 4-2     according to the number of months remaining during the calendar

 4-3     year that the permit is to be in effect.

 4-4           (d) [(e)]  A person who does not obtain a permit each year in

 4-5     a timely manner must pay a late fee of $50 in addition to the

 4-6     application fee for the permit.

 4-7           (e) [(f)]  If at the date of issuance a permit will expire

 4-8     within three months, the comptroller [treasurer] may collect the

 4-9     prorated  permit fee or the fee for a current year and, with the

4-10     consent of the permit holder, may collect the fee for the next

4-11     permit year and issue a permit or permits for both periods, as

4-12     applicable.

4-13           SECTION 5.  Section 155.058, Tax Code, is amended to read as

4-14     follows:

4-15           Sec. 155.058.  REVENUE.  (a) Revenue from the sale of permits

4-16     to distributors, wholesalers, and bonded agents is allocated in the

4-17     same manner that other revenue is allocated by Subchapter H.

4-18           (b)  Subject to Section 155.0585, revenue from the sale of

4-19     permits to retailers shall be deposited in the state treasury to

4-20     the credit of the account created by Section 154.121.

4-21           SECTION 6.  Subchapter C, Chapter 155, Tax Code, is amended

4-22     by adding Section 155.0585 to read as follows:

4-23           Sec. 155.0585.  ENFORCEMENT FUNDS:  RETAILER'S PERMIT

4-24     REVENUE.  The legislature may appropriate money from the revenue

4-25     received from permits issued to retailers under Section

4-26     155.049(b)(4) to the comptroller for the administration of the

4-27     duties of the comptroller in issuing those permits and in enforcing

 5-1     this chapter on retail premises.  Amounts appropriated under this

 5-2     section shall be taken from revenue received from the permits

 5-3     before the revenue is allocated under Section 155.058 to the

 5-4     account specified by that section.

 5-5           SECTION 7.  This Act takes effect September 1, 1997, and

 5-6     applies only to a retailer's permit that expires on or after May

 5-7     31, 1998.

 5-8           SECTION 8.  The importance of this legislation and the

 5-9     crowded condition of the calendars in both houses create an

5-10     emergency and an imperative public necessity that the

5-11     constitutional rule requiring bills to be read on three several

5-12     days in each house be suspended, and this rule is hereby suspended.