By Danburg H.B. No. 815
75R620 DLF-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the regulation of the sale or distribution of tobacco
1-3 products; providing penalties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 ARTICLE 1. DISTRIBUTION OF CIGARETTES OR TOBACCO PRODUCTS
1-6 SECTION 1.01. Subchapter H, Chapter 161, Health and Safety
1-7 Code, is amended to read as follows:
1-8 SUBCHAPTER H. DISTRIBUTION [SALE] OF CIGARETTES OR TOBACCO
1-9 PRODUCTS [TO MINORS]
1-10 Sec. 161.081. DEFINITIONS. In this subchapter:
1-11 (1) "Cigarette" has the meaning assigned by Section
1-12 154.001, Tax Code.
1-13 (2) "Permit holder" has the meaning assigned by
1-14 Section 154.001 or 155.001, Tax Code, as applicable.
1-15 (3) "Retail sale" means a transfer of possession from
1-16 a retailer to a consumer in connection with a purchase, sale, or
1-17 exchange for value of cigarettes or tobacco products.
1-18 (4) "Retailer" has the meaning assigned by Section
1-19 154.001 or 155.001, Tax Code, as applicable.
1-20 (5) "Tobacco product" has the meaning assigned by
1-21 Section 155.001, Tax Code.
1-22 (6) "Wholesaler" has the meaning assigned by Section
1-23 154.001 or 155.001, Tax Code, as applicable.
1-24 Sec. 161.082. ADMINISTRATION AND ENFORCEMENT. (a) The
2-1 department shall administer this subchapter.
2-2 (b) The department shall:
2-3 (1) conduct random unannounced inspections of
2-4 locations where cigarettes or tobacco products are sold or
2-5 delivered to ensure compliance with this subchapter and related
2-6 laws;
2-7 (2) establish a system to allow persons to report the
2-8 sale or delivery of cigarettes or tobacco products to a person
2-9 younger than 18 years of age, including a sale or delivery by a
2-10 permit holder;
2-11 (3) maintain statistics relating to violations of this
2-12 subchapter and related laws, the activities carried out by this
2-13 state to enforce this subchapter and related laws, and the extent
2-14 to which the state has succeeded in reducing the availability of
2-15 cigarettes and tobacco products to persons younger than 18 years of
2-16 age;
2-17 (4) develop strategies to increase compliance with
2-18 this subchapter and related laws; and
2-19 (5) submit to the federal government any reports
2-20 necessary to comply with federal law.
2-21 Sec. 161.083. SALE OF CIGARETTES OR TOBACCO PRODUCTS TO
2-22 PERSONS YOUNGER THAN 18 YEARS OF AGE [MINORS] PROHIBITED; PROOF OF
2-23 AGE REQUIRED. (a) A person commits an offense if the person, as a
2-24 commercial enterprise and with criminal negligence:
2-25 (1) sells, gives, or causes to be sold or given a
2-26 cigarette or [other] tobacco product to someone who [the person
2-27 knows] is younger than 18 years of age; or
3-1 (2) sells, gives, or causes to be sold or given a
3-2 cigarette or [other] tobacco product to another person who[,
3-3 knowing that the person receiving the cigarette or other tobacco
3-4 product] intends to deliver it to someone who is younger than 18
3-5 years of age.
3-6 (b) A retailer commits an offense if:
3-7 (1) an agent or employee of the retailer commits an
3-8 offense under Subsection (a); and
3-9 (2) the retailer, with criminal negligence, failed to
3-10 prevent the offense through adequate supervision of the agent or
3-11 employee.
3-12 (c) An offense under this section is a [Class C] misdemeanor
3-13 punishable by a fine of not less than $100 or more than $1,000. If
3-14 it is shown on the trial of the person that the person previously
3-15 has been convicted of an offense under this section, the offense is
3-16 punishable by a fine of not less than $500 or more than $2,000.
3-17 (d) [(c)] It is a defense to prosecution under Subsection
3-18 (a)(1) [this section] that the person to whom the cigarette or
3-19 [other] tobacco product was sold or given presented to the
3-20 defendant [an] apparently valid proof of [Texas driver's license or
3-21 an] identification.
3-22 (e) A proof of identification satisfies the requirements of
3-23 Subsection (d) if it contains [card, issued by the Department of
3-24 Public Safety and containing] a physical description and photograph
3-25 consistent with the person's appearance, purports [that purported]
3-26 to establish that the person is [was] 18 years of age or older, and
3-27 was issued by a governmental agency. The proof of identification
4-1 may include a driver's license issued by this state or another
4-2 state, a passport, or an identification card issued by a state or
4-3 the federal government.
4-4 Sec. 161.084. SALE OF CIGARETTES OR TOBACCO PRODUCTS TO
4-5 PERSONS YOUNGER THAN 27 YEARS OF AGE. (a) A person may not sell,
4-6 give, or cause to be sold or given a cigarette or tobacco product
4-7 to someone who is younger than 27 years of age unless the person to
4-8 whom the cigarette or tobacco product was sold or given presents an
4-9 apparently valid proof of identification.
4-10 (b) A retailer shall adequately supervise the retailer's
4-11 agents and employees to prevent a violation of Subsection (a).
4-12 (c) A proof of identification described by Section
4-13 161.083(e) satisfies the requirements of Subsection (a).
4-14 Sec. 161.085 [161.082]. Warning Notice. (a) Each person
4-15 who sells cigarettes or tobacco products at retail or by vending
4-16 machine shall post a sign in a location that is conspicuous to all
4-17 employees and customers and that is close to the place at which the
4-18 cigarettes or tobacco products may be purchased.
4-19 (b) The sign must include the statement:
4-20 SALE OR PROVISION OF TOBACCO PRODUCTS TO A MINOR UNDER 18 YEARS OF
4-21 AGE IS PROHIBITED BY LAW. UPON CONVICTION, A MAXIMUM FINE OF UP TO
4-22 $2,000 [$200] MAY BE IMPOSED.
4-23 (c) The board by rule shall determine the design and size of
4-24 the sign.
4-25 (d) The department on request shall provide the sign without
4-26 charge to any person who sells cigarettes or tobacco [cigarette]
4-27 products. The department may provide the sign without charge to
5-1 [cigarette] distributors of cigarettes or tobacco products or
5-2 wholesale dealers of cigarettes or tobacco [cigarette] products in
5-3 this state for distribution to persons who sell cigarettes or
5-4 tobacco [cigarette] products. A distributor or wholesale dealer
5-5 may not charge for distributing a sign under this subsection.
5-6 (e) A person commits an offense if the person intentionally
5-7 fails to display a sign as prescribed by this section. An offense
5-8 under this subsection is a Class C misdemeanor.
5-9 Sec. 161.086. VENDOR ASSISTED SALES REQUIRED; VENDING
5-10 MACHINES. (a) Except as provided by Subsection (b), a retailer or
5-11 other person may not:
5-12 (1) offer cigarettes or tobacco products for sale in a
5-13 manner that permits a customer direct access to the cigarettes or
5-14 tobacco products; or
5-15 (2) install or maintain a vending machine containing
5-16 cigarettes or tobacco products.
5-17 (b) Subsection (a) does not apply to:
5-18 (1) a bar, lounge, or other similar place that, as its
5-19 primary business, sells or serves alcoholic beverages for
5-20 on-premises consumption; or
5-21 (2) a facility or business that is not open to persons
5-22 younger than 18 years of age.
5-23 (c) The comptroller or a peace officer may, with or without
5-24 a warrant, seize, seal, or disable a vending machine installed or
5-25 maintained in violation of this section. Property seized under
5-26 this subsection must be seized in accordance with, and is subject
5-27 to forfeiture to the state in accordance with, Subchapter H,
6-1 Chapter 154, Tax Code, and Subchapter E, Chapter 155, Tax Code.
6-2 (d) A person commits an offense if the person violates
6-3 Subsection (a). An offense under this subsection is punishable by
6-4 a fine of not less than $100 or more than $1,000. If it is shown
6-5 on the trial of the person that the person previously has been
6-6 convicted of an offense under this subsection, the offense is
6-7 punishable by a fine of not less than $500 or more than $2,000.
6-8 Sec. 161.087. DISTRIBUTION OF CIGARETTES OR TOBACCO
6-9 PRODUCTS. (a) A person may not distribute:
6-10 (1) a free sample of a cigarette or tobacco product;
6-11 or
6-12 (2) a coupon or other item that the recipient may use
6-13 to receive a free or discounted cigarette or tobacco product or a
6-14 sample cigarette or tobacco product.
6-15 (b) Except as provided by Subsection (c), a permit holder
6-16 may not accept or redeem, offer to accept or redeem, or hire a
6-17 person to accept or redeem a coupon or other item that the
6-18 recipient may use to receive a free or discounted cigarette or
6-19 tobacco product or a sample cigarette or tobacco product.
6-20 (c) Subsections (a)(2) and (b) do not apply to a transaction
6-21 between permit holders unless the transaction is a retail sale.
6-22 (d) A person commits an offense if the person violates this
6-23 section. An offense under this subsection is punishable by a fine
6-24 of not less than $100 or more than $1,000. If it is shown on the
6-25 trial of the person that the person previously has been convicted
6-26 of an offense under this subsection, the offense is punishable by a
6-27 fine of not less than $500 or more than $2,000.
7-1 Sec. 161.088. JURISDICTION OF CRIMINAL PROCEEDING. (a) A
7-2 municipal court, including a municipal court of record, has
7-3 jurisdiction in all criminal cases arising under this subchapter
7-4 that:
7-5 (1) arise within the territorial limits of the
7-6 municipality; and
7-7 (2) are punishable only by a fine not to exceed
7-8 $2,000.
7-9 (b) This section prevails over any other law, ordinance, or
7-10 charter.
7-11 Sec. 161.089. MUNICIPAL ENFORCEMENT. (a) The governing
7-12 body of a municipality may grant authority under this section to a
7-13 municipal employee who is not a peace officer and who is employed
7-14 by:
7-15 (1) a health authority appointed under Section
7-16 121.021;
7-17 (2) a local health department established under
7-18 Section 121.031; or
7-19 (3) a public health district established under Section
7-20 121.041.
7-21 (b) The governing body may grant to the employee the power
7-22 to conduct random unannounced inspections of locations where
7-23 cigarettes or tobacco products are sold or delivered within the
7-24 territorial limits of the municipality.
7-25 (c) The governing body may also grant to the employee the
7-26 authority to issue a citation in the territorial limits of the
7-27 municipality to enforce a provision of this subchapter. The
8-1 citation must state the name of the person cited, the violation
8-2 charged, and the time and place the person is required to appear in
8-3 court.
8-4 (d) The court in which a person who receives a citation
8-5 under Subsection (c) is to appear may issue an arrest warrant for
8-6 the person for the violation described in the citation if the
8-7 person fails to appear on or before the return date stated in the
8-8 citation.
8-9 Sec. 161.090. CIVIL PENALTY. (a) A person is subject to a
8-10 civil penalty of not less than $100 or more than $2,000 for each
8-11 day of violation and each act of violation of Section 161.083,
8-12 161.086, or 161.087. In determining the amount of the civil
8-13 penalty, the court shall consider:
8-14 (1) the person's previous violations;
8-15 (2) the seriousness of the violation, including the
8-16 nature, circumstances, extent, and gravity of the violation;
8-17 (3) the demonstrated good faith of the person; and
8-18 (4) the amount necessary to deter future violations.
8-19 (b) At the request of the department or on the initiative of
8-20 the attorney general or district or county attorney, the attorney
8-21 general or the appropriate district or county attorney shall
8-22 institute and conduct the suit authorized by this section in the
8-23 name of the state.
8-24 (c) The department and the attorney bringing the suit may
8-25 recover reasonable expenses incurred in obtaining civil penalties,
8-26 including investigation costs, court costs, reasonable attorney's
8-27 fees, witness fees, and deposition expenses.
9-1 (d) A penalty collected under this section by the attorney
9-2 general shall be deposited to the credit of the general revenue
9-3 fund. A penalty collected under this section by a district or
9-4 county attorney shall be deposited to the credit of the general
9-5 fund of the county in which the suit was heard.
9-6 (e) The civil penalty authorized by this section is in
9-7 addition to any other civil, administrative, or criminal penalty
9-8 provided by law.
9-9 Sec. 161.0901. PREEMPTION OF LOCAL LAW. This subchapter
9-10 does not preempt a local regulation of the sale, distribution, or
9-11 use of cigarettes or tobacco products or affect the authority of a
9-12 political subdivision to adopt or enforce an ordinance or
9-13 requirement relating to the sale, distribution, or use of
9-14 cigarettes or tobacco products if the regulation, ordinance, or
9-15 requirement:
9-16 (1) is compatible with and equal to or more stringent
9-17 than a requirement prescribed by this subchapter; or
9-18 (2) relates to an issue that is not specifically
9-19 addressed by this subchapter or Chapter 154 or 155, Tax Code.
9-20 Sec. 161.0902. REPORTS OF VIOLATION. A local or state law
9-21 enforcement agency or other governmental unit shall notify the
9-22 department of any violation of this subchapter that the agency or
9-23 unit detects, investigates, or prosecutes.
9-24 ARTICLE 2. ADVERTISING OF CIGARETTES OR TOBACCO PRODUCTS
9-25 SECTION 2.01. Subchapter K, Chapter 161, Health and Safety
9-26 Code, is amended to read as follows:
10-1 SUBCHAPTER K. PROHIBITION OF CERTAIN CIGARETTE OR TOBACCO
10-2 PRODUCT ADVERTISING
10-3 Sec. 161.121. DEFINITIONS. In this subchapter:
10-4 (1) "Church" means a facility that is owned by a
10-5 religious organization and that is used primarily for religious
10-6 services.
10-7 (2) "Cigarette" has the meaning assigned by Section
10-8 154.001, Tax Code.
10-9 (3) "School" means a private or public elementary or
10-10 secondary school.
10-11 (4) [(3)] "Sign" means an outdoor medium, including a
10-12 structure, display, light device, figure, painting, drawing,
10-13 message, plaque, poster, or billboard, that is:
10-14 (A) used to advertise or inform; and
10-15 (B) visible from the main-traveled way of a
10-16 street or highway.
10-17 (5) [(4)] "Tobacco product" has the meaning assigned
10-18 by Section 155.001, Tax Code.
10-19 Sec. 161.122. GENERAL PROHIBITION. (a) A person may not
10-20 use a sign to advertise a cigarette or tobacco product.
10-21 (b) This section does not apply to a contract for an
10-22 advertisement for a cigarette or tobacco product entered into
10-23 before September 1, 1997.
10-24 Sec. 161.123. PROHIBITION RELATING TO CERTAIN SIGNS;
10-25 EXCEPTIONS. (a) A sign excepted from the application of Section
10-26 161.122 under Section 161.122(b) that contains [containing] an
10-27 advertisement for cigarettes or tobacco products may not be located
11-1 closer than 500 feet to a church or school.
11-2 (b) The measurement of the distance between the sign
11-3 containing an advertisement for cigarettes or tobacco products and
11-4 an institution listed in Subsection (a) is from the nearest
11-5 property line of the institution to a point on a street or highway
11-6 closest to the sign, along street lines and in direct lines across
11-7 intersections.
11-8 (c) This section does not apply to:
11-9 (1) a sign located on or in a facility owned or leased
11-10 by a professional sports franchise or in a facility where
11-11 professional sports events are held at least 10 times during a
11-12 12-month period; or
11-13 (2) a contract for a cigarette or [other] tobacco
11-14 product advertisement entered into before August 26, 1991.
11-15 (d) In Subsection (c)(1), a "facility" includes a stadium,
11-16 arena, or events center and any land or property owned or leased by
11-17 the professional sports franchise that is connected to or
11-18 immediately contiguous to the stadium, arena, or events center.
11-19 ARTICLE 3. YOUTH TOBACCO USE
11-20 SECTION 3.01. Chapter 161, Health and Safety Code, is
11-21 amended by adding Subchapters N and O to read as follows:
11-22 SUBCHAPTER N. TOBACCO USE BY MINORS
11-23 Sec. 161.251. DEFINITIONS. In this subchapter:
11-24 (1) "Cigarette" has the meaning assigned by Section
11-25 154.001, Tax Code.
11-26 (2) "Tobacco product" has the meaning assigned by
11-27 Section 155.001, Tax Code.
12-1 Sec. 161.252. PROHIBITION. A person younger than 18 years
12-2 of age may not use or possess a cigarette or tobacco product.
12-3 Sec. 161.253. CIVIL FINE; CITATION. (a) A peace officer
12-4 may issue a citation for a violation of Section 161.252. The
12-5 citation must state:
12-6 (1) that the person is required to participate in an
12-7 approved tobacco use prevention program under this subchapter;
12-8 (2) the requirements relating to participation
12-9 prescribed by Section 161.254; and
12-10 (3) a telephone number the person may call at the
12-11 department to obtain information about approved programs.
12-12 (b) On issuance of a citation under this section, the peace
12-13 officer shall mail a copy of the citation to the department.
12-14 Sec. 161.254. PARTICIPATION REQUIREMENTS. (a) A person to
12-15 whom a citation is issued under Section 161.253 shall mail or
12-16 deliver to the department a certificate evidencing that the person
12-17 has completed an approved program not later than the 90th day after
12-18 the date the citation is issued.
12-19 (b) On application of a person to whom a citation is issued
12-20 under Section 161.253, for good cause shown, the department may:
12-21 (1) dismiss the citation;
12-22 (2) waive participation; or
12-23 (3) extend the period for completion of a program
12-24 under Subsection (a) to a date not later than the 180th day after
12-25 the date the citation is issued.
12-26 (c) A person who violates this section is subject to a civil
12-27 fine of not more than $100.
13-1 Sec. 161.255. PROGRAM REQUIREMENTS. (a) The department
13-2 shall:
13-3 (1) adopt criteria, application and renewal
13-4 procedures, and other rules necessary for approval of tobacco use
13-5 prevention programs; and
13-6 (2) establish reasonable application and renewal fees
13-7 for the approval of tobacco use prevention programs in amounts
13-8 necessary to administer this subchapter.
13-9 (b) The department may require the person participating in
13-10 the program to pay the cost of the program. The department may
13-11 adopt rules restricting the amount that a program provider may
13-12 charge for providing the program.
13-13 (c) The department may waive the application or renewal fee
13-14 for a program operated by a school district.
13-15 Sec. 161.256. DEPARTMENT ADMINISTRATION OF CIVIL FINE. (a)
13-16 The department shall:
13-17 (1) establish an administrative adjudication hearing
13-18 procedure under which a civil fine under this subchapter may be
13-19 imposed; and
13-20 (2) adopt and distribute forms to be used by a peace
13-21 officer in issuing a citation under Section 161.253.
13-22 (b) The procedure adopted under Subsection (a)(1) must allow
13-23 a charged person to appear by telephone or in writing.
13-24 Sec. 161.257. ORDER. The hearing officer at an
13-25 administrative adjudication hearing under this subchapter shall
13-26 issue an order stating:
13-27 (1) whether the person charged with the violation of
14-1 Section 161.254 is liable for the violation; and
14-2 (2) the amount of the fine assessed against the
14-3 person.
14-4 Sec. 161.258. APPEAL. (a) A person whom the hearing
14-5 officer determines to be in violation of Section 161.254 may appeal
14-6 the determination in the municipal court of a municipality in which
14-7 the violation occurred or, if the violation did not occur in a
14-8 municipality, in a justice court of the county in which the
14-9 violation occurred. The appeal shall be brought by filing a
14-10 petition with the clerk of the court and paying the required court
14-11 costs not later than the 30th day after the date the order is
14-12 filed.
14-13 (b) An appeal does not stay enforcement and collection of
14-14 the order unless the person, before appealing, posts bond with the
14-15 court. The court may stay the enforcement and collection of the
14-16 order on the filing of a sworn affidavit of the person stating that
14-17 the person is financially unable to post the bond.
14-18 SUBCHAPTER O. PREVENTION OF TOBACCO USE BY MINORS
14-19 Sec. 161.301. TOBACCO USE PUBLIC AWARENESS CAMPAIGN. (a)
14-20 The department shall develop and implement a public awareness
14-21 campaign designed to reduce tobacco use by minors in this state.
14-22 The campaign may use advertisements or similar media to provide
14-23 educational information about tobacco use.
14-24 (b) The department may contract with another person to
14-25 develop and implement the public awareness campaign.
14-26 ARTICLE 4. RELATED TAX CODE PROVISIONS
14-27 SECTION 4.01. (a) Section 154.111(b), Tax Code, is amended
15-1 to read as follows:
15-2 (b) An application for a permit required by this chapter
15-3 must be accompanied by a fee of:
15-4 (1) $300 [$100] for a bonded agent's permit;
15-5 (2) $300 [$100] for a distributor's permit;
15-6 (3) $200 [$50] for a wholesaler's permit; [and]
15-7 (4) $15 for each permit for a vehicle if the applicant
15-8 is also applying for a permit as a bonded agent, distributor, or
15-9 wholesaler or has received a current permit from the comptroller
15-10 [treasurer] under Sections 154.101 and 154.110; and
15-11 (5) $200 for a retailer's permit.
15-12 (b) Section 154.111(c), Tax Code, is repealed.
15-13 SECTION 4.02. Section 154.121, Tax Code, is amended to read
15-14 as follows:
15-15 Sec. 154.121. REVENUE. (a) Except as provided by
15-16 Subsection (b), revenue [Revenue] from the sale of permits to
15-17 distributors, wholesalers, and bonded agents is allocated in the
15-18 same manner as other revenue allocated by Subchapter J.
15-19 (b) Revenue from the sale of retailer's permits shall be
15-20 deposited to the general revenue fund and may be appropriated only
15-21 as provided by this section. The money may be appropriated first
15-22 to the comptroller for administration of licensing of retailers
15-23 under this chapter or Chapter 155.
15-24 (c) If, after any appropriation is made under Subsection
15-25 (b), revenue remains from the sale of retailer's permits, the
15-26 remaining money may be appropriated to the Texas Department of
15-27 Health for administration and enforcement of Subchapters H, K, and
16-1 N, Chapter 161, Health and Safety Code.
16-2 (d) If, after any appropriation is made under Subsections
16-3 (b) and (c), revenue remains from the sale of retailer's permits,
16-4 the remaining money may be appropriated to the Texas Department of
16-5 Health to administer its responsibilities under Subchapter O,
16-6 Chapter 161, Health and Safety Code.
16-7 SECTION 4.03. Subchapter D, Chapter 154, Tax Code, is
16-8 amended by adding Section 154.1142 to read as follows:
16-9 Sec. 154.1142. DISCIPLINARY ACTION FOR CERTAIN VIOLATIONS.
16-10 (a) If the comptroller finds, after notice and hearing as provided
16-11 by this subchapter, that a permit holder has violated Subchapter H
16-12 or K, Chapter 161, Health and Safety Code, the comptroller may
16-13 revoke the permit or suspend the permit for not more than 60 days.
16-14 (b) If the permit holder has been found to have violated
16-15 Subchapter H or K, Chapter 161, Health and Safety Code, once before
16-16 during the preceding 36 months, the comptroller may revoke the
16-17 permit or suspend the permit for not more than 90 days.
16-18 (c) If the permit holder has been found to have violated
16-19 Subchapter H or K, Chapter 161, Health and Safety Code, twice
16-20 before during the preceding 36 months, the comptroller may revoke
16-21 the permit or suspend the permit for not more than 12 months.
16-22 (d) If the permit holder has been found to have violated
16-23 Section 161.083(b), Health and Safety Code, on four previous and
16-24 separate occasions, the comptroller shall revoke the permit.
16-25 SECTION 4.04. Section 154.504, Tax Code, is amended to read
16-26 as follows:
16-27 Sec. 154.504. POSSESSION OF QUANTITIES LESS THAN INDIVIDUAL
17-1 PACKAGE. A person commits an offense if the person sells
17-2 cigarettes in quantities less than an individual package containing
17-3 at least 20 cigarettes.
17-4 SECTION 4.05. (a) Section 155.049(b), Tax Code, is amended
17-5 to read as follows:
17-6 (b) An application for a permit required by this chapter
17-7 must be accompanied by a fee of:
17-8 (1) $300 [$100] for a bonded agent's permit;
17-9 (2) $300 [$100] for a distributor's permit;
17-10 (3) $200 [$50] for a wholesaler's permit; [and]
17-11 (4) $15 for each permit for a vehicle if the applicant
17-12 is also applying for a permit as a bonded agent, distributor, or
17-13 wholesaler or has received a current permit from the comptroller
17-14 [treasurer] under Sections 155.041 and 155.048; and
17-15 (5) $200 for a retailer's permit.
17-16 (b) Section 155.049(c), Tax Code, is repealed.
17-17 SECTION 4.06. Section 155.058, Tax Code, is amended to read
17-18 as follows:
17-19 Sec. 155.058. REVENUE. (a) Except as provided by
17-20 Subsection (b), revenue [Revenue] from the sale of permits to
17-21 distributors, wholesalers, and bonded agents is allocated in the
17-22 same manner that other revenue is allocated by Subchapter H.
17-23 (b) Revenue from the sale of retailer's permits shall be
17-24 deposited to the general revenue fund and may be appropriated only
17-25 as provided by this section. The money may be appropriated first
17-26 to the comptroller for administration of licensing of retailers
17-27 under this chapter or Chapter 154.
18-1 (c) If, after any appropriation is made under Subsection
18-2 (b), revenue remains from the sale of retailer's permits, the
18-3 remaining money may be appropriated to the Texas Department of
18-4 Health for administration and enforcement of Subchapters H, K, and
18-5 N, Chapter 161, Health and Safety Code.
18-6 (d) If, after any appropriation is made under Subsections
18-7 (b) and (c), revenue remains from the sale of retailer's permits,
18-8 the remaining money may be appropriated to the Texas Department of
18-9 Health to administer its responsibilities under Subchapter O,
18-10 Chapter 161, Health and Safety Code.
18-11 SECTION 4.07. Subchapter C, Chapter 155, Tax Code, is
18-12 amended by adding Section 155.0592 to read as follows:
18-13 Sec. 155.0592. DISCIPLINARY ACTION FOR CERTAIN VIOLATIONS.
18-14 (a) If the comptroller finds, after notice and hearing as provided
18-15 by this subchapter, that a permit holder has violated Subchapter H
18-16 or K, Chapter 161, Health and Safety Code, the comptroller may
18-17 revoke the permit or suspend the permit for not more than 60 days.
18-18 (b) If the permit holder has been found to have violated
18-19 Subchapter H or K, Chapter 161, Health and Safety Code, once before
18-20 during the preceding 36 months, the comptroller may revoke the
18-21 permit or suspend the permit for not more than 90 days.
18-22 (c) If the permit holder has been found to have violated
18-23 Subchapter H or K, Chapter 161, Health and Safety Code, twice
18-24 before during the preceding 36 months, the comptroller may revoke
18-25 the permit or suspend the permit for not more than 12 months.
18-26 (d) If the permit holder has been found to have violated
18-27 Section 161.083(b), Health and Safety Code, on four previous and
19-1 separate occasions, the comptroller shall revoke the permit.
19-2 ARTICLE 5. FEDERAL WAIVER; TRANSITION; EFFECTIVE DATE;
19-3 EMERGENCY CLAUSE
19-4 SECTION 5.01. (a) If, before the changes in law made by
19-5 this Act to Subchapter H or K, Health and Safety Code, take effect,
19-6 the Texas Board of Health determines that an exemption from federal
19-7 preemption from the federal Food and Drug Administration is
19-8 necessary for implementation, the board shall request the exemption
19-9 and may delay implementing the affected provision of law until the
19-10 exemption is granted.
19-11 (b) If a provision of law affected by a delay in
19-12 implementation under Subsection (a) of this section contains a
19-13 criminal penalty:
19-14 (1) the Texas Board of Health shall publish in the
19-15 Texas Register notice of:
19-16 (A) the delay in implementation; and
19-17 (B) the grant of an exemption from preemption
19-18 requested under Subsection (a); and
19-19 (2) the provision is effective on the 90th day after
19-20 the date that notice of the grant of an exemption is published
19-21 under Subdivision (1)(B) of this subsection.
19-22 SECTION 5.02. (a) Except as provided by Subsection (b) of
19-23 this section, this Act takes effect September 1, 1997.
19-24 (b) Sections 161.084, 161.086, and 161.087, Health and
19-25 Safety Code, and Subchapter N, Chapter 161, Health and Safety Code,
19-26 as added by this Act, take effect January 1, 1998.
19-27 (c) The change in law made by this Act applies only to an
20-1 offense committed on or after the effective date of this Act. For
20-2 purposes of this subsection, an offense is committed before the
20-3 effective date of this Act if any element of the offense occurs
20-4 before that date. An offense committed before the effective date
20-5 of this Act is governed by the law in effect when the offense was
20-6 committed, and the former law is continued in effect for that
20-7 purpose.
20-8 (d) This Act applies to the sale or distribution of coupons,
20-9 cigarettes, or tobacco products on or after the effective date of
20-10 this Act. The sale or distribution of a coupon, cigarette, or
20-11 tobacco product before the effective date of this Act is governed
20-12 by the law in effect when the sale or distribution was made, and
20-13 that law is continued in effect for that purpose.
20-14 (e) The increase in the amount of a fee as provided by
20-15 Sections 154.111(b) and 155.049(b), Tax Code, as amended by this
20-16 Act, takes effect for and is applicable to the permit years
20-17 beginning on or after March 1, 1998, and June 1, 1998, as
20-18 applicable.
20-19 SECTION 5.03. The importance of this legislation and the
20-20 crowded condition of the calendars in both houses create an
20-21 emergency and an imperative public necessity that the
20-22 constitutional rule requiring bills to be read on three several
20-23 days in each house be suspended, and this rule is hereby suspended.