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.