By Maxey                                        H.B. No. 1042

      75R4563 DLF-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the regulation of tobacco products; providing

 1-3     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

 1-9                        TOBACCO PRODUCTS [TO MINORS]

1-10           Sec. 161.071 [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)  "Manufacturer" has the meanings assigned by

1-14     Sections 154.001 and 155.001, Tax Code.

1-15                 (3)  "Retailer" has the meanings assigned by Sections

1-16     154.001 and 155.001, Tax Code.

1-17                 (4)  "Retail sale" means a transfer of possession from

1-18     a retailer to a consumer in connection with a purchase, sale, or

1-19     exchange for value of cigarettes or tobacco products.

1-20                 (5)  "Tobacco product" has the meaning assigned by

1-21     Section 155.001, Tax Code.

1-22           Sec. 161.072.  ADMINISTRATION AND ENFORCEMENT.  The

1-23     department shall administer this subchapter and shall conduct

1-24     random unannounced inspections of locations where cigarettes or

 2-1     tobacco products are sold or delivered to ensure compliance with

 2-2     this subchapter and related laws.

 2-3           Sec. 161.073.  SALE OF CIGARETTES OR TOBACCO PRODUCTS TO

 2-4     MINORS PROHIBITED.  (a)  A retailer [person] commits an offense if

 2-5     the retailer or an employee of the retailer [person, as a

 2-6     commercial enterprise]:

 2-7                 (1)  sells, gives, or causes to be sold or given a

 2-8     cigarette or [other] tobacco product to someone [the person knows

 2-9     is] younger than 18 years of age; or

2-10                 (2)  sells, gives, or causes to be sold or given a

2-11     cigarette or [other] tobacco product to another person, knowing

2-12     that the person receiving the cigarette or [other] tobacco product

2-13     intends to deliver it to someone who is younger than 18 years of

2-14     age.

2-15           (b)  An offense under this section is a Class C misdemeanor.

2-16           (c)  In a criminal proceeding under this section, it is not

2-17     necessary to prove the intent, knowledge, recklessness, or criminal

2-18     negligence of the defendant beyond the degree of culpability, if

2-19     any, stated in Subsection (a) to establish criminal responsibility

2-20     for the violation.

2-21           (d)  It is a defense to prosecution under this section that

2-22     the person to whom the cigarette or [other] tobacco product was

2-23     sold or given presented to the defendant an apparently valid Texas

2-24     driver's license or an identification card, issued by the

2-25     Department of Public Safety and containing a physical description

2-26     consistent with the person's appearance, that purported to

2-27     establish that the person was 18 years of age or older.

 3-1           Sec. 161.074.  SALE OF CIGARETTES OR TOBACCO PRODUCTS TO

 3-2     PERSONS YOUNGER THAN 27 YEARS OF AGE.  (a)  A person may not sell,

 3-3     give, or cause to be sold or given a cigarette or tobacco product

 3-4     to someone who is younger than 27 years of age unless the person to

 3-5     whom the cigarette or tobacco product was sold or given presents an

 3-6     apparently valid proof of identification.

 3-7           (b)  A retailer shall adequately supervise the retailer's

 3-8     agents and employees to prevent a violation of Subsection (a).

 3-9           (c)  A proof of identification described by Section

3-10     161.073(d) satisfies the requirements of Subsection (a).

3-11           Sec. 161.075. [Sec. 161.082.]  WARNING NOTICE.  (a)  Each

3-12     retailer [person] who sells cigarettes or tobacco products at

3-13     retail [or by vending machine] shall post a sign in a location that

3-14     is conspicuous to all employees and customers and that is close to

3-15     the place at which the cigarettes or tobacco products may be

3-16     purchased.

3-17           (b)  The sign must include the statement:

3-18     SALE OR PROVISION OF TOBACCO PRODUCTS TO A MINOR UNDER 18 YEARS OF

3-19     AGE IS PROHIBITED BY LAW.  UPON CONVICTION, A MAXIMUM FINE OF UP TO

3-20     $200 MAY BE IMPOSED.

3-21           (c)  The board by rule shall determine the design and size of

3-22     the sign.

3-23           (d)  The department on request shall provide the sign without

3-24     charge to any retailer [person] who sells cigarettes or tobacco

3-25     [cigarette] products.  The department may provide the sign without

3-26     charge to [cigarette] distributors or wholesale dealers of

3-27     cigarettes or tobacco [cigarette] products in this state for

 4-1     distribution to retailers [persons] who sell cigarettes or tobacco

 4-2     [cigarette] products.  A distributor or wholesale dealer may not

 4-3     charge for distributing a sign under this subsection.

 4-4           (e)  A retailer [person] commits an offense if the person

 4-5     intentionally fails to display a sign as prescribed by this

 4-6     section.  An offense under this subsection is a Class C

 4-7     misdemeanor.

 4-8           Sec. 161.076.  USE OF VENDING MACHINES CONTAINING CIGARETTES

 4-9     OR TOBACCO PRODUCTS PROHIBITED.  (a)  A person may not install or

4-10     maintain a vending machine containing cigarettes or tobacco

4-11     products or use a vending machine for the retail sale of cigarettes

4-12     or tobacco products.

4-13           (b)  A person who violates Subsection (a) commits an offense.

4-14     An offense under this subsection is a Class C misdemeanor.

4-15           Sec. 161.077.  DISTRIBUTION OF CIGARETTES OR TOBACCO

4-16     PRODUCTS.  (a)  A person may not distribute a free sample of a

4-17     cigarette or tobacco product in a location that is open to persons

4-18     younger than 18 years of age.

4-19           (b)  A person may not accept or redeem, offer to accept or

4-20     redeem, or hire a person to accept or redeem a coupon or other item

4-21     used to receive a free, discounted, or sample cigarette or tobacco

4-22     product unless the coupon may be accepted or redeemed only in

4-23     person by a person 18 years of age or older in a transaction

4-24     subject to Sections 161.073 and 161.074.

4-25           (c)  A person may not deliver cigarettes or tobacco products

4-26     to another person in this state by mail or another delivery

4-27     service.  This subsection does not apply to a transaction between

 5-1     permit holders or between a manufacturer and a permit holder.

 5-2           (d)  A person who violates this section commits an offense.

 5-3     An offense under this subsection is a Class C misdemeanor.

 5-4           Sec. 161.078.  DISPLAY OF TOBACCO PRODUCTS.  A retailer may

 5-5     not offer cigarettes or tobacco products for sale in a manner that

 5-6     permits a customer direct access to the cigarettes or tobacco

 5-7     products.  A retailer shall store cigarettes and tobacco products:

 5-8                 (1)  behind a sales counter or other barrier that makes

 5-9     the cigarettes and tobacco products inaccessible to customers;

5-10                 (2)  in a locked case; or

5-11                 (3)  in a storage area that is inaccessible to

5-12     customers.

5-13           Sec. 161.079.  ACKNOWLEDGMENT REQUIRED.  A retailer may not

5-14     conduct, or allow an employee or other person to conduct on behalf

5-15     of the retailer, a retail sale of a cigarette or tobacco product

5-16     unless the person conducting the sale has signed the acknowledgment

5-17     required by Section 161.080.

5-18           Sec. 161.080.  ACKNOWLEDGMENT.  (a)  Each person who conducts

5-19     a retail sale of a cigarette or tobacco product and each retailer

5-20     who employs or authorizes another person to conduct a retail sale

5-21     of a cigarette or tobacco product on the employing or authorizing

5-22     retailer's behalf shall sign a document acknowledging that the

5-23     person:

5-24                 (1)  is familiar with the provisions of Sections

5-25     161.073 and 161.074; and

5-26                 (2)  will abide by those provisions.

5-27           (b)  The department shall adopt a form to be used to satisfy

 6-1     the requirements of this section.

 6-2           Sec. 161.081.  JURISDICTION OF CRIMINAL PROCEEDING.  (a)  A

 6-3     municipal court, including a municipal court of record, has

 6-4     jurisdiction in all criminal cases arising under this subchapter

 6-5     that:

 6-6                 (1)  arise within the territorial limits of the

 6-7     municipality; and

 6-8                 (2)  are punishable only by a fine not to exceed

 6-9     $2,000.

6-10           (b)  This section prevails over any other law, ordinance, or

6-11     charter.

6-12           Sec. 161.082.  MUNICIPAL ENFORCEMENT.  (a)  The governing

6-13     body of a municipality may grant authority under this section to a

6-14     municipal employee who is not a peace officer and who is employed

6-15     by:

6-16                 (1)  a health authority appointed under Section

6-17     121.021;

6-18                 (2)  a local health department established under

6-19     Section 121.031; or

6-20                 (3)  a public health district established under Section

6-21     121.041.

6-22           (b)  The governing body may grant to the employee the power

6-23     to conduct random unannounced inspections of locations where

6-24     cigarettes or tobacco products are sold or delivered within the

6-25     territorial limits of the municipality.

6-26           (c)  The governing body may also grant to the employee the

6-27     authority to issue a citation in the territorial limits of the

 7-1     municipality to enforce a provision of this subchapter.  The

 7-2     citation must state the name of the person cited, the violation

 7-3     charged, and the time and place the person is required to appear in

 7-4     court.

 7-5           (d)  The court in which a person who receives a citation

 7-6     under Subsection (c) is to appear may issue an arrest warrant for

 7-7     the person for the violation described in the citation if the

 7-8     person fails to appear on or before the return date stated in the

 7-9     citation.

7-10           Sec. 161.083.  INJUNCTION.  (a)  A district court, on

7-11     petition of the department or the comptroller and on a finding by

7-12     the court that a person is violating this subchapter, may by

7-13     injunction:

7-14                 (1)  prohibit the person from continuing the violation;

7-15     or

7-16                 (2)  grant any other injunctive relief warranted by the

7-17     facts.

7-18           (b)  The attorney general, in the name of the state, shall

7-19     institute and conduct a suit authorized by this section at the

7-20     request of the department or the comptroller.

7-21           (c)  A suit for injunctive relief must be brought in Travis

7-22     County.

7-23           (d)  If the attorney general brings an action against a

7-24     person under this section and an injunction is granted against the

7-25     person, the attorney general may recover, on behalf of the attorney

7-26     general and the department or the comptroller, as appropriate,

7-27     reasonable expenses and costs.

 8-1           (e)  In this section, "reasonable expenses and costs" include

 8-2     expenses incurred by the department or comptroller and the attorney

 8-3     general in the investigation, initiation, or prosecution of an

 8-4     action, including reasonable investigative costs, court costs,

 8-5     attorney's fees, witness fees, and deposition expenses.

 8-6           (f)  Costs and expenses collected under this section shall be

 8-7     deposited in the state treasury.

 8-8           Sec. 161.084.  PREEMPTION OF LOCAL LAW.  This subchapter does

 8-9     not preempt a local regulation of the sale, distribution, or use of

8-10     cigarettes or tobacco products or affect the authority of a

8-11     political subdivision to adopt or enforce an ordinance or

8-12     requirement relating to the sale, distribution, or use of

8-13     cigarettes or tobacco products if the regulation, ordinance, or

8-14     requirement:

8-15                 (1)  is compatible with and equal to or more stringent

8-16     than a requirement prescribed by this subchapter; or

8-17                 (2)  relates to an issue that is not specifically

8-18     addressed by this subchapter or Chapter 154 or 155, Tax Code.

8-19          ARTICLE 2.  ADVERTISING OF CIGARETTES OR TOBACCO PRODUCTS

8-20           SECTION 2.01.  Subchapter K, Chapter 161, Health and Safety

8-21     Code, is amended to read as follows:

8-22         SUBCHAPTER K.  PROHIBITION OF CERTAIN CIGARETTE OR TOBACCO

8-23                             PRODUCT ADVERTISING

8-24           Sec. 161.121.  DEFINITIONS.  In this subchapter:

8-25                 (1)  "Church" means a facility that is owned by a

8-26     religious organization and that is used primarily for religious

8-27     services.

 9-1                 (2)  "Manufacturer" has the meanings assigned by

 9-2     Sections 154.001 and 155.001, Tax Code.

 9-3                 (3)  "Permit holder" has the meanings assigned by

 9-4     Sections 154.001 and 155.001, Tax Code.

 9-5                 (4)  "Public events center" means a sports or

 9-6     entertainment arena, stadium, community and convention hall, or

 9-7     specialty event center.  The term does not include a facility

 9-8     designed to accommodate less than 100 people.

 9-9                 (5)  "Public transportation vehicle" means a vehicle

9-10     owned or operated by a public or private entity and used to provide

9-11     transportation service to the public, whether that transportation

9-12     is provided by bus, rail, watercraft, or other means.  The term

9-13     includes a taxicab but does not include another private passenger

9-14     motor vehicle.

9-15                 (6)  "School" means a private or public elementary or

9-16     secondary school.

9-17                 (7) [(3)]  "Sign" means an outdoor medium, including a

9-18     structure, display, light device, figure, painting, drawing,

9-19     message, plaque, poster, or billboard, that is:

9-20                       (A)  used to advertise or inform; and

9-21                       (B)  visible from the main-traveled way of a

9-22     street or highway.

9-23                 (8) [(4)]  "Tobacco product" has the meaning assigned

9-24     by Section 155.001, Tax Code.

9-25                 (9)  "Video arcade facility" means a facility or part

9-26     of a facility that:

9-27                       (A)  is open to the public;

 10-1                      (B)  is intended primarily for the use of pinball

 10-2    or video machines; and

 10-3                      (C)  contains at least three pinball or video

 10-4    machines.

 10-5          Sec. 161.122.  PROHIBITION; EXCEPTION [EXCEPTIONS].  (a)  A

 10-6    sign containing an advertisement for cigarettes or tobacco products

 10-7    may not be located closer than 500 feet to a church or school.

 10-8          (b)  The measurement of the distance between the sign

 10-9    containing an advertisement for cigarettes or tobacco products and

10-10    an institution listed in Subsection (a) is from the nearest

10-11    property line of the institution to a point on a street or highway

10-12    closest to the sign, along street lines and in direct lines across

10-13    intersections.

10-14          (c)  This section does not apply to[:]

10-15                [(1)  a sign located on or in a facility owned or

10-16    leased by a professional sports franchise or in a facility where

10-17    professional sports events are held at least 10 times during a

10-18    12-month period; or]

10-19                [(2)]  a contract for a cigarette or other tobacco

10-20    product advertisement entered into before August 26, 1991.

10-21          [(d)  In Subsection (c)(1), a "facility" includes a stadium,

10-22    arena, or events center and any land or property owned or leased by

10-23    the professional sports franchise that is connected to or

10-24    immediately contiguous to the stadium, arena, or events center.]

10-25          Sec. 161.123.  PROHIBITION RELATING TO ADVERTISING ON PUBLIC

10-26    TRANSPORTATION.  (a)  A person may not place or authorize the

10-27    placement of an advertisement for a cigarette or other tobacco

 11-1    product on the outside or inside of a public transportation

 11-2    vehicle.

 11-3          (b)  A person who violates Subsection (a) commits an offense.

 11-4    An offense under this subsection is a Class C misdemeanor.

 11-5          Sec. 161.124.  VIDEO ARCADE FACILITY; GAMES.  (a)  A person

 11-6    may not place or authorize the placement of an advertisement for a

 11-7    cigarette or other tobacco product on:

 11-8                (1)  the outside or inside of a video arcade facility;

 11-9    or

11-10                (2)  a video, pinball, or other similar game.

11-11          (b)  A person who violates Subsection (a) commits an offense.

11-12    An offense under this subsection is a Class C misdemeanor.

11-13          Sec. 161.125.  PUBLIC EVENTS CENTER ADVERTISING.  (a)  A

11-14    person may not place or authorize the placement of an advertisement

11-15    for a cigarette or other tobacco product on the outside or inside

11-16    of a public events center.

11-17          (b)  This section does not apply to a public events center if

11-18    the owner or operator of the center submits to the department in

11-19    accordance with Section 161.126 a signed statement:

11-20                (1)  certifying that the owner or operator believes, in

11-21    good faith, that at least 75 percent of the individuals who will

11-22    attend events at the center in the year following the certification

11-23    will be at least 18 years of age; and

11-24                (2)  stating the facts on which this belief is based.

11-25          (c)  A person who violates Subsection (a) commits an offense.

11-26    An offense under this subsection is a Class C misdemeanor.

11-27          Sec. 161.126.  FORM OF CERTIFICATION; FEE.  (a) Certification

 12-1    under Section 161.125 must be made annually, in the form prescribed

 12-2    by the department.

 12-3          (b)  The department may charge an annual fee not to exceed

 12-4    $250 for accepting a certification under Section 161.125, as

 12-5    necessary to defray the cost of administering the department's

 12-6    duties under this section and Section 161.125(b).

 12-7          Sec. 161.127.  DELIVERY OF PROMOTIONAL ITEM.  A manufacturer

 12-8    or permit holder who distributes a promotional item in conjunction

 12-9    with advertising or sale of a cigarette or tobacco product may not

12-10    knowingly or negligently distribute the promotional item to a

12-11    person younger than 18 years of age.

12-12          Sec. 161.128.  INJUNCTION.  (a)  A district court, on

12-13    petition of the department or the comptroller and on a finding by

12-14    the court that a person is violating this subchapter, may by

12-15    injunction:

12-16                (1)  prohibit the person from continuing the violation;

12-17    or

12-18                (2)  grant any other injunctive relief warranted by the

12-19    facts.

12-20          (b)  The attorney general, in the name of the state, shall

12-21    institute and conduct a suit authorized by this section at the

12-22    request of the department or the comptroller.

12-23          (c)  A suit for injunctive relief must be brought in Travis

12-24    County.

12-25          (d)  If the attorney general brings an action against a

12-26    person under this section and an injunction is granted against the

12-27    person, the attorney general may recover, on behalf of the attorney

 13-1    general and the department or the comptroller, as appropriate,

 13-2    reasonable expenses and costs.

 13-3          (e)  In this section, "reasonable expenses and costs" include

 13-4    expenses incurred by the department or comptroller and the attorney

 13-5    general in the investigation, initiation, or prosecution of an

 13-6    action, including reasonable investigative costs, court costs,

 13-7    attorney's fees, witness fees, and deposition expenses.

 13-8          (f)  Costs and expenses collected under this section shall be

 13-9    deposited in the state treasury.

13-10          Sec. 161.129.  PREEMPTION OF LOCAL LAW.  This subchapter does

13-11    not preempt a local regulation of the sale, distribution, or use of

13-12    cigarettes or tobacco products or affect the authority of a

13-13    political subdivision to adopt or enforce an ordinance or

13-14    requirement relating to the sale, distribution, or use of

13-15    cigarettes or tobacco products if the regulation, ordinance, or

13-16    requirement:

13-17                (1)  is compatible with and equal to or more stringent

13-18    than a requirement prescribed by this subchapter; or

13-19                (2)  relates to an issue that is not specifically

13-20    addressed by this subchapter or Chapter 154 or 155, Tax Code.

13-21            ARTICLE 3.  ASSESSMENT OF ADMINISTRATIVE PENALTIES

13-22          SECTION 3.01.  Chapter 154, Tax Code, is amended by adding

13-23    Subchapter K to read as follows:

13-24      SUBCHAPTER K.  ENFORCEMENT OF RESTRICTIONS ON DISTRIBUTION AND

13-25                         ADVERTISING OF CIGARETTES

13-26          Sec. 154.701.  ADMINISTRATIVE PENALTY.  (a)  The comptroller

13-27    may assess an administrative penalty against a permit holder or

 14-1    manufacturer who violates Subchapter H or K, Chapter 161, Health

 14-2    and Safety Code.

 14-3          (b)  The penalty may not exceed $50,000 for each violation.

 14-4    Each day of a continuing violation constitutes a separate

 14-5    violation.

 14-6          (c)  In determining the amount of an administrative penalty

 14-7    assessed under this section, the comptroller shall consider:

 14-8                (1)  the seriousness of the violation;

 14-9                (2)  the history of previous violations;

14-10                (3)  the amount necessary to deter future violations;

14-11                (4)  efforts made to correct the violation; and

14-12                (5)  any other matters that justice may require.

14-13          (d)  All proceedings for the assessment of an administrative

14-14    penalty under this chapter are subject to Chapter 2001, Government

14-15    Code.

14-16          (e)  The comptroller by rule shall establish a procedure for

14-17    assessment of an administrative penalty under this section.

14-18          (f)  The comptroller and the Texas Department of Health shall

14-19    enter into a memorandum of understanding under which the department

14-20    investigates matters relating to compliance with Subchapter H or K,

14-21    Chapter 161, Health and Safety Code, and provides the comptroller

14-22    with recommendations for action under this section.  The department

14-23    may provide additional support to the comptroller to enforce

14-24    Subchapters H and K, Chapter 161, Health and Safety Code, in

14-25    accordance with the memorandum of understanding.

14-26          SECTION 3.02.  Chapter 155, Tax Code, is amended by adding

14-27    Subchapter I to read as follows:

 15-1      SUBCHAPTER I.  ENFORCEMENT OF RESTRICTIONS ON DISTRIBUTION AND

 15-2                      ADVERTISING OF TOBACCO PRODUCTS

 15-3          Sec. 155.261.  ADMINISTRATIVE PENALTY.  (a)  The comptroller

 15-4    may assess an administrative penalty against a permit holder or

 15-5    manufacturer who violates Subchapter H or K, Chapter 161, Health

 15-6    and Safety Code.

 15-7          (b)  The penalty may not exceed $50,000 for each violation.

 15-8    Each day of a continuing violation constitutes a separate

 15-9    violation.

15-10          (c)  In determining the amount of an administrative penalty

15-11    assessed under this section, the comptroller shall consider:

15-12                (1)  the seriousness of the violation;

15-13                (2)  the history of previous violations;

15-14                (3)  the amount necessary to deter future violations;

15-15                (4)  efforts made to correct the violation; and

15-16                (5)  any other matters that justice may require.

15-17          (d)  All proceedings for the assessment of an administrative

15-18    penalty under this chapter are subject to Chapter 2001, Government

15-19    Code.

15-20          (e)  The comptroller by rule shall establish a procedure for

15-21    assessment of an administrative penalty under this section.

15-22          (f)  The comptroller and the Texas Department of Health shall

15-23    enter into a memorandum of understanding under which the department

15-24    investigates matters relating to compliance with Subchapter H or K,

15-25    Chapter 161, Health and Safety Code, and provides the comptroller

15-26    with recommendations for action under this section.  The department

15-27    may provide additional support to the comptroller to enforce

 16-1    Subchapters H and K, Chapter 161, Health and Safety Code, in

 16-2    accordance with the memorandum of understanding.

 16-3                    ARTICLE 4.  FUNDING FOR ENFORCEMENT

 16-4          SECTION 4.01.  Section 154.021(b), Tax Code, is amended to

 16-5    read as follows:

 16-6          (b)  The tax rates are:

 16-7                (1)  $33 [$20.50] per thousand on cigarettes weighing

 16-8    three pounds or less per thousand; and

 16-9                (2)  the rate provided by Subdivision (1) plus $2.10

16-10    per thousand on cigarettes weighing more than three pounds per

16-11    thousand.

16-12          SECTION 4.02.  Section 154.603(b), Tax Code, is amended to

16-13    read as follows:

16-14          (b)  The revenue remaining after the deductions for the

16-15    purposes provided by Section 154.602 of this code and allocation

16-16    under Subsection (a) of this section is allocated as follows:

16-17                (1)  $10 per thousand cigarettes to the tobacco use

16-18    public awareness campaign account established under Section

16-19    161.252, Health and Safety Code;

16-20                (2)  $2.50 per thousand cigarettes to the tobacco law

16-21    enforcement account established under Section 161.253, Health and

16-22    Safety Code; and

16-23                (3)  the remainder to the general revenue fund.

16-24          SECTION 4.03.  Section 154.121, Tax Code, is amended to read

16-25    as follows:

16-26          Sec. 154.121.  REVENUE.  Subject to Section 154.122, revenue

16-27    [Revenue] from the sale of permits to distributors, wholesalers,

 17-1    and bonded agents shall be deposited in the state treasury to the

 17-2    credit of the tobacco law enforcement account established under

 17-3    Subchapter N, Chapter 161, Health and Safety Code [is allocated in

 17-4    the same manner as other revenue allocated by Subchapter J].

 17-5          SECTION 4.04.  Subchapter D, Chapter 154, Tax Code, is

 17-6    amended by adding Section 154.122 to read as follows:

 17-7          Sec. 154.122.  ENFORCEMENT FUNDS; PERMIT REVENUE.  The

 17-8    legislature may appropriate money from the revenue received from

 17-9    permits issued under Section 154.110 to the comptroller for the

17-10    administration of the duties of the comptroller in issuing the

17-11    permits and in enforcing this chapter.   Amounts appropriated under

17-12    this section shall be taken from revenue received from the permits

17-13    before the revenue is allocated under Section 154.121 to the

17-14    account specified by that section.

17-15          SECTION 4.05.  Section 155.058, Tax Code, is amended to read

17-16    as follows:

17-17          Sec. 155.058.  REVENUE.  Subject to Section 155.0585, revenue

17-18    [Revenue] from the sale of permits to distributors, wholesalers,

17-19    and bonded agents shall be deposited in the state treasury to the

17-20    credit of the tobacco law enforcement account established under

17-21    Subchapter N, Chapter 161, Health and Safety Code [is allocated in

17-22    the same manner that other revenue is allocated by Subchapter H].

17-23          SECTION 4.06.  Subchapter C, Chapter 155, Tax Code, is

17-24    amended by adding Section 155.0585 to read as follows:

17-25          Sec. 155.0585.  ENFORCEMENT FUNDS; PERMIT REVENUE.  The

17-26    legislature may appropriate money from the revenue received from

17-27    permits issued under Section 155.048 to the comptroller for the

 18-1    administration of the duties of the comptroller in issuing the

 18-2    permits and in enforcing this chapter.   Amounts appropriated under

 18-3    this section shall be taken from revenue received from the permits

 18-4    before the revenue is allocated under Section 155.058 to the

 18-5    account specified by that section.

 18-6          SECTION 4.07.  Chapter 161, Health and Safety Code, is

 18-7    amended by adding Subchapter N to read as follows:

 18-8           SUBCHAPTER N.  TOBACCO LAW ENFORCEMENT AND EDUCATION

 18-9          Sec. 161.251.  TOBACCO USE PUBLIC AWARENESS CAMPAIGN.  (a)

18-10    The department shall develop and implement a public awareness

18-11    campaign designed to reduce tobacco use by minors in this state.

18-12    The campaign may use advertisements or similar communications to

18-13    provide educational information about tobacco use.

18-14          (b)  The department may contract with another person to

18-15    develop and implement the public awareness campaign.

18-16          Sec. 161.252.  TOBACCO USE PUBLIC AWARENESS CAMPAIGN ACCOUNT.

18-17    The tobacco use public awareness campaign account is an account in

18-18    the state treasury.  The account is composed of money deposited to

18-19    the account under Section 154.603(b), Tax Code.  Money in the fund

18-20    may be appropriated only to the department to develop and implement

18-21    the tobacco use public awareness campaign under Section 161.251.

18-22          Sec. 161.253.  TOBACCO LAW ENFORCEMENT ACCOUNT.  The tobacco

18-23    law enforcement account is an account in the state treasury.  The

18-24    account is composed of money deposited to the account under

18-25    Chapters 154 and 155, Tax Code.  Money in the fund may be

18-26    appropriated only to:

18-27                (1)  the department for enforcement of Subchapters H

 19-1    and K; and

 19-2                (2)  an appropriate state agency to implement or

 19-3    enforce federal law or regulations relating to cigarettes and

 19-4    tobacco products, as authorized or required by federal law or

 19-5    regulation.

 19-6              ARTICLE 5.  INTENT; TRANSITION; EFFECTIVE DATE;

 19-7                             EMERGENCY CLAUSE

 19-8          SECTION 5.01.  Subchapters H and K, Chapter 161, Health and

 19-9    Safety Code, as amended by this Act, are cumulative of any federal

19-10    law or regulation governing the same subject as a provision of

19-11    those subchapters.  It is the intent of the legislature that, to

19-12    the extent permitted by the federal law or regulation, a provision

19-13    of this subchapter that is compatible with and equal to or more

19-14    stringent than a requirement prescribed by the federal law or

19-15    regulation be enforced as provided by those subchapters and by

19-16    Chapters 154 and 155, Tax Code.

19-17          SECTION 5.02.  (a)  This Act takes effect September 1, 1997.

19-18          (b)  This Act applies only to the acceptance or redemption of

19-19    a coupon or the sale or distribution of cigarettes, tobacco

19-20    products, and promotional items on or after September 1, 1997.  The

19-21    acceptance or redemption of a coupon or the sale or distribution of

19-22    a cigarette, tobacco product, or promotional item before that date

19-23    is governed by the law in effect when the sale or distribution was

19-24    made, and that law is continued in effect for that purpose.

19-25          SECTION 5.03.  (a)  The change in law made by this Act

19-26    applies only to an offense committed on or after the effective date

19-27    of this Act.

 20-1          (b)  An offense committed before the effective date of this

 20-2    Act is governed by the law in effect when the offense was

 20-3    committed, and the former law is continued in effect for that

 20-4    purpose.

 20-5          (c)  For purposes of this section, an offense is committed

 20-6    before the effective date of this Act if any element of the offense

 20-7    occurs before that date.

 20-8          SECTION 5.04.  The change in law made by Sections 4.01 and

 20-9    4.02 of this Act does not affect taxes imposed before the effective

20-10    date of this Act, and the law in effect before the effective date

20-11    of this Act is continued in effect for purposes of the liability

20-12    for and collection of those taxes.

20-13          SECTION 5.05.  The importance of this legislation and the

20-14    crowded condition of the calendars in both houses create an

20-15    emergency and an imperative public necessity that the

20-16    constitutional rule requiring bills to be read on three several

20-17    days in each house be suspended, and this rule is hereby suspended.