By: Armbrister S.B. No. 1266
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the administration, collection, and enforcement of
1-2 taxes on cigarettes, cigars, and tobacco products.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 154.001, Tax Code, is amended to read as
1-5 follows:
1-6 Sec. 154.001. DEFINITIONS. In this chapter:
1-7 (1) "Bonded agent" means a person in this state who is
1-8 an agent of a person outside this state and receives cigarettes in
1-9 interstate commerce and stores the cigarettes for distribution or
1-10 delivery to distributors under orders from the person outside this
1-11 state.
1-12 (2) "Cigarette" means a roll for smoking:
1-13 (A) that is made of tobacco or tobacco mixed
1-14 with another ingredient and wrapped or covered with a material
1-15 other than tobacco; and
1-16 (B) that is not a cigar.
1-17 (3) "Common carrier" means a motor carrier registered
1-18 under Chapter 643, Transportation Code [Article 6675c, Revised
1-19 Statutes], or a motor carrier operating under a certificate issued
1-20 by the Interstate Commerce Commission or a successor agency to the
1-21 Interstate Commerce Commission.
1-22 (4) "Consumer" means a person who possesses cigarettes
1-23 for personal consumption.
2-1 (5) "Counterfeit stamp" means a sticker, label, print,
2-2 tag, or token that is used or is intended to be used to simulate a
2-3 stamp and that is not authorized or issued by the comptroller
2-4 [treasurer].
2-5 (6) "Distributor" means a person who:
2-6 (A) is authorized to purchase for the purpose of
2-7 making a first sale in this state cigarettes in unstamped packages
2-8 from manufacturers who distribute cigarettes in this state and to
2-9 stamp cigarette packages;
2-10 (B) ships, transports, imports into this state,
2-11 acquires, or possesses cigarettes and makes a first sale of the
2-12 cigarettes in this state; [or]
2-13 (C) manufactures or produces cigarettes; or
2-14 (D) is an importer or import broker.
2-15 (7) "Export warehouse" means a person in this state
2-16 who receives cigarettes in unstamped packages from manufacturers
2-17 and stores the cigarettes for the purpose of making sales to
2-18 authorized persons for resale, use, or consumption outside the
2-19 United States.
2-20 (8) "First sale" means, except as otherwise provided
2-21 by this chapter:
2-22 (A) the first transfer of possession in
2-23 connection with a purchase, sale, or any exchange for value of
2-24 cigarettes in intrastate commerce;
2-25 (B) the first use or consumption of cigarettes
3-1 in this state; or
3-2 (C) the loss of cigarettes in this state whether
3-3 through negligence, theft, or other unaccountable loss.
3-4 (9) "Importer" or "Import broker" means a person who
3-5 ships, transports, or imports into this state cigarettes
3-6 manufactured or produced outside the United States for the purpose
3-7 of making a first sale in this state.
3-8 (10) [(8)] "Individual package of cigarettes" means a
3-9 package that contains not fewer than 20 cigarettes[:]
3-10 [(A) the smallest package of cigarettes
3-11 ordinarily manufactured for sale; or]
3-12 [(B) any size package of cigarettes taxed by the
3-13 United States].
3-14 (11) [(9)] "Manufacturer" means a person who
3-15 manufactures and sells cigarettes to a distributor.
3-16 (12) [(10)] "Manufacturer's representative" means a
3-17 person employed by a manufacturer to sell or distribute the
3-18 manufacturer's stamped cigarette packages.
3-19 (13) [(11)] "Permit holder" means a bonded agent,
3-20 distributor, wholesaler, or retailer required to obtain a permit
3-21 under Section 154.101.
3-22 (14) [(12)] "Place of business" means:
3-23 (A) a commercial business location [place] where
3-24 cigarettes are sold;
3-25 (B) a commercial business location [place] where
4-1 cigarettes are kept for sale or consumption or otherwise stored; or
4-2 (C) a vehicle from which cigarettes are sold.
4-3 (15) [(13)] "Previously used stamp" means a stamp that
4-4 has been used to show payment of a tax imposed by this chapter and
4-5 is again used, sold, or possessed for sale or use to show payment
4-6 of a tax imposed by this chapter.
4-7 (16) [(14)] "Retailer" means a person who engages in
4-8 the practice of selling cigarettes to consumers and includes the
4-9 owner of a coin-operated cigarette vending machine.
4-10 (17) [(15)] "Stamp" includes only a stamp that:
4-11 (A) is printed, manufactured, or made by
4-12 authority of the comptroller [treasurer];
4-13 (B) shows payment of the tax imposed by this
4-14 chapter; and
4-15 (C) is consecutively numbered and uniquely
4-16 identifiable as a Texas tax stamp.
4-17 (18) [(16)] "Wholesaler" means a person, including a
4-18 manufacturer's representative, who sells or distributes cigarettes
4-19 in this state for resale but who is not a distributor.
4-20 SECTION 2. The heading of Subchapter C, Chapter 154, Tax
4-21 Code, is amended to read as follows:
4-22 SUBCHAPTER C. TAX STAMPS [AND METERS]
4-23 SECTION 3. Section 154.050, Tax Code, is amended to read as
4-24 follows:
4-25 Sec. 154.050. PAYMENT. (a) The comptroller [treasurer]
5-1 shall require that payment in full for stamps [or meter settings]
5-2 be made within 30 days after the date stamps [or a set meter] and
5-3 an accompanying invoice from the comptroller [treasurer] are
5-4 received by the distributor, except that at the close of each
5-5 biennium, payment for stamps [or meter settings] purchased or
5-6 received on or before August 31 of that fiscal year shall be made
5-7 in full on or before August 31 of that fiscal year, providing that
5-8 such payment be received in the office of the comptroller
5-9 [treasurer] no later than August 31 of that fiscal year
5-10 notwithstanding any other statute regarding tax due dates to the
5-11 contrary.
5-12 (b) The comptroller [treasurer] may not ship stamps [or set
5-13 a meter] without advance payment under this section unless the
5-14 distributor has satisfied all requirements imposed under Section
5-15 154.051 [of this code].
5-16 (c) Payment for stamps [or meter settings] must be made by
5-17 cashier's check payable to the comptroller [treasurer], electronic
5-18 funds transfer to the comptroller [treasurer], or any other method
5-19 of payment authorized by the comptroller [treasurer].
5-20 (d) The dishonor of a check delivered to the comptroller
5-21 [treasurer] for payment of stamps constitutes a failure to pay the
5-22 tax when due.
5-23 SECTION 4. Subsections (a), (b), (c), (e) through (k), (n),
5-24 and (o), Section 154.051, Tax Code, are amended to read as follows:
5-25 (a) The cigarette tax recovery trust fund is a private trust
6-1 fund established outside the state treasury and as provided by this
6-2 section secures the payment of cigarette taxes by distributors who
6-3 contribute to the fund. The fund is composed of the total amount
6-4 in the separate accounts maintained in trust for all contributing
6-5 distributors as provided by this section. The assets of the fund,
6-6 including interest earned by those assets, are to be held in trust
6-7 for the benefit and protection of the state treasury, and may not
6-8 be diverted, distributed, or appropriated for any purpose other
6-9 than as provided by this section. Interest earned by a
6-10 distributor's account but not yet refunded to the distributor
6-11 pursuant to Subsection (d) shall, on a monthly basis, be paid to
6-12 the comptroller [treasurer] as provided by Subsection (b) or
6-13 credited to the distributor's account.
6-14 (b) The comptroller [treasurer] is the trustee of the fund
6-15 as provided by Section 404.073, Government Code, and shall manage
6-16 the fund as provided by this section. In investing the assets of
6-17 the fund, the comptroller [treasurer] has the obligations, duties,
6-18 and powers provided for the investment of state funds by Sections
6-19 404.021 through 404.0245 [404.025], Government Code, and by the
6-20 orders of the State Depository Board. The comptroller [treasurer]
6-21 shall receive five percent of the interest earned on all assets of
6-22 the fund as compensation for serving as trustee of the fund.
6-23 (c) A distributor who orders stamps [or requests a meter
6-24 setting] from the comptroller [state treasurer] under this chapter
6-25 without advance payment shall contribute to an account maintained
7-1 in the distributor's name in the fund money in the amount of each
7-2 allowance [discount] to which the distributor is entitled under
7-3 Section 154.052 [of this code]. When the money in the
7-4 distributor's account equals 20 percent of the designated amount of
7-5 stamps [and meter setting] requested by the distributor and
7-6 approved by the comptroller [treasurer] to be purchased in any one
7-7 month, the distributor's interest in the fund becomes vested.
7-8 (e) Until a distributor who orders stamps [or requests a
7-9 meter setting] without advance payment acquires a vested interest
7-10 in the fund, the comptroller [treasurer] may require the
7-11 distributor to post with the comptroller [treasurer] an irrevocable
7-12 letter of credit drawn in the form and amount specified by the
7-13 comptroller [treasurer] to secure the payment of cigarette taxes by
7-14 that distributor. The comptroller [treasurer] may not ship stamps
7-15 to [or set a meter for] a distributor not having a vested interest
7-16 in the fund without advance payment until the distributor posts the
7-17 required letter of credit.
7-18 (f) In addition to any other requirement under this section,
7-19 the comptroller [treasurer] as a condition for shipping stamps [or
7-20 setting a meter] without advance payment may:
7-21 (1) require a fiscal-year-end financial statement,
7-22 including a balance sheet and income statement verifiable as to its
7-23 accuracy or other financial information acceptable to the
7-24 comptroller [treasurer] and verifiable as to its accuracy;
7-25 (2) require indemnification from each officer,
8-1 director, and stockholder owning 10 percent or more of outstanding
8-2 stock, if the distributor is a corporation, from each partner, if
8-3 the distributor is a partnership, from each member or owner of a
8-4 joint venture or syndication, and from the owner of a sole
8-5 proprietorship;
8-6 (3) require the distributor to obtain and provide the
8-7 comptroller [treasurer] with a credit report from a credit
8-8 reporting agency acceptable to the comptroller [treasurer];
8-9 (4) require a distributor to increase the balance in
8-10 its account in the fund;
8-11 (5) require a distributor to post a letter of credit;
8-12 (6) reduce a distributor's credit time or amount; or
8-13 (7) take any other reasonable and necessary action to
8-14 protect the state treasury from loss due to the nonpayment of
8-15 cigarette taxes.
8-16 (g) If a distributor who has an account in the fund fails to
8-17 pay in full a tax imposed by this chapter by the due date, the
8-18 comptroller [treasurer], without prior notice to the distributor or
8-19 any other preliminary procedure, may seize any unaffixed stamps and
8-20 any stamped cigarette packages, up to and including the full amount
8-21 of unpaid tax. If the proceeds from the seizure do not satisfy the
8-22 total tax deficiency or the comptroller [treasurer] does not seize
8-23 any unaffixed stamps or stamped cigarette packages, the comptroller
8-24 [treasurer] may withdraw immediately from the fund an amount equal
8-25 to the amount of unpaid taxes due. The comptroller [treasurer]
9-1 shall first withdraw the amount from the account of the defaulting
9-2 distributor. The comptroller [treasurer] shall use the
9-3 comptroller's [treasurer's] best efforts to collect the tax due
9-4 from the defaulting distributor before withdrawing money from the
9-5 other accounts in the fund to satisfy the tax liability. If that
9-6 distributor's account does not contain sufficient money to satisfy
9-7 the tax liability in full, the comptroller [treasurer] shall
9-8 withdraw the additional amount necessary to satisfy that liability
9-9 from the other accounts in the fund in proportion to the balance of
9-10 each account, except that the withdrawal from any other
9-11 distributor's account in the fund is limited to an amount not
9-12 greater than 50 percent of the designated amount of stamps [and
9-13 meter settings] requested by the distributor under Subsection (c)
9-14 or of the amount required by the comptroller [treasurer] under
9-15 Subsection (f)(4). Not later than the fifth day after the date of
9-16 a withdrawal, the comptroller [treasurer] shall notify each
9-17 distributor of the withdrawal from its account and the amount
9-18 withdrawn. If as a result of a withdrawal made under this
9-19 subsection a distributor's balance in its account is reduced to an
9-20 amount less than the minimum required under this section, the
9-21 distributor's interest in the fund is no longer vested, and the
9-22 comptroller [treasurer] may discontinue refunds to the distributor
9-23 under Subsection (d) until the distributor again acquires a vested
9-24 interest in the fund. The comptroller [treasurer] may require a
9-25 distributor whose interest in the fund is no longer vested to post
10-1 an irrevocable letter of credit with the comptroller [treasurer] to
10-2 secure the payment of cigarette taxes by the distributor. To
10-3 protect the fund, each distributor having an account in the fund
10-4 must indemnify the fund against any amount withdrawn from the fund
10-5 under this subsection because of the failure of the distributor to
10-6 pay in full a tax imposed by this chapter by the due date.
10-7 (h) If distributor accounts, other than a defaulting
10-8 distributor account, are drawn pursuant to Subsection (g) [of this
10-9 section], each affected, nondefaulting distributor shall have a
10-10 claim against the defaulting distributor for the amount so drawn.
10-11 The comptroller [treasurer] is hereby appointed trustee, agent, and
10-12 assignee of each affected, nondefaulting distributor for purposes
10-13 of seeking recovery of the amount so drawn. The comptroller
10-14 [treasurer] shall have the sole judgment and discretion in deciding
10-15 whether or not to pursue such a claim and shall have discretion to
10-16 handle any such claim on any basis that in the opinion of the
10-17 comptroller [treasurer] is in the best interest of the fund. The
10-18 comptroller [treasurer] is released from any liability related to
10-19 the handling of the claims described in this section except for
10-20 intentional or wilful misconduct.
10-21 (i) A distributor or person authorized to act on behalf of a
10-22 distributor may notify the comptroller [treasurer] in writing that
10-23 the distributor no longer desires to have stamps shipped [or a
10-24 meter set] without advance payment, and may request that the money
10-25 in the distributor's account in the fund be paid to the distributor
11-1 or the distributor's heirs or assigns. The comptroller [treasurer]
11-2 shall pay the money in the distributor's account as requested at
11-3 the end of the next quarter after all outstanding taxes owed to the
11-4 state by the distributor have been paid.
11-5 (j) Under no circumstances shall the comptroller [treasurer]
11-6 return to any distributor an amount greater than the balance in the
11-7 distributor's account within the cigarette tax recovery trust fund
11-8 less any sums drawn pursuant to Subsection (g) [of this section].
11-9 The State of Texas' liability to any distributor pursuant to this
11-10 section is expressly limited to the sums on deposit in the
11-11 distributor's account at the time the request for return of funds
11-12 is made.
11-13 (k) The comptroller [treasurer] may adopt and enforce rules
11-14 necessary to carry out this section.
11-15 (n) The comptroller [treasurer] shall regularly distribute
11-16 financial information regarding the performance of the fund to
11-17 participating distributors on a regular basis. On the written
11-18 request of a participating distributor, the comptroller [treasurer]
11-19 shall provide the distributor with the name and address of each
11-20 distributor participating in the fund, the percentage of the total
11-21 fund represented by each distributor's account, and the total
11-22 amount of money in the fund.
11-23 (o) In lieu of participation in the cigarette tax recovery
11-24 trust fund to secure payment for stamps [or meter settings] and in
11-25 lieu of advance payment for stamps [or meter settings], a
12-1 distributor may pledge to the comptroller [treasurer] sufficient
12-2 collateral to secure payment for stamps [or meter settings]. Such
12-3 pledge shall be evidenced by a pledge agreement in a form
12-4 promulgated by the comptroller [treasurer], and such collateral
12-5 shall consist of certificates of deposit, treasury notes, treasury
12-6 bills, or other similar types of collateral acceptable to the
12-7 comptroller [treasurer] and held in a separate trust fund
12-8 established in the Texas Treasury Safekeeping Trust Company. All
12-9 interest earned on such collateral shall belong to the distributor.
12-10 The comptroller [treasurer] may require the pledge of additional
12-11 collateral in the event the comptroller [treasurer] determines that
12-12 the fair market value of the pledged collateral is less than the
12-13 amount due the comptroller [treasurer] for stamps [or meter
12-14 settings]. On the written request of the distributor, the
12-15 comptroller [treasurer] shall release collateral from the pledge
12-16 agreement or allow the substitution of collateral subject to the
12-17 pledge agreement if after such release or substitution the fair
12-18 market value of the collateral subject to the pledge will be equal
12-19 to or greater than the amount due the comptroller [treasurer] for
12-20 stamps [or meter settings]. If a distributor fails to pay tax in
12-21 full when due, the comptroller [treasurer] may, if the distributor
12-22 does not pay such past due tax and any penalty related thereto
12-23 within three days after receipt of written notice of such failure
12-24 from the comptroller [treasurer], sell or dispose of the collateral
12-25 and apply the proceeds to the payment of taxes, interest,
13-1 penalties, and costs due to the comptroller [treasurer] by the
13-2 distributor, with any remaining proceeds being refunded to the
13-3 distributor.
13-4 SECTION 5. Subsections (b), (c), and (d), Section 154.405,
13-5 Tax Code, are amended to read as follows:
13-6 (b) The comptroller [treasurer] shall give the notice by
13-7 certified mail, return receipt requested, not later than the 15th
13-8 day after the date of seizure and include with the notice an
13-9 inventory of the property seized and a statement that the owner of
13-10 property seized is entitled to [of the date, time, and place of] a
13-11 hearing on the seizure. Service by mail is complete when the
13-12 notice is received, as evidenced by return receipt from the U.S.
13-13 Postal Service.
13-14 (c) After providing the notice and a hearing, if a hearing
13-15 is requested under Subsection (b), the comptroller [treasurer] may
13-16 order the forfeiture to the state of any property seized under this
13-17 chapter or the proceeds of the sale of any cigarettes seized under
13-18 this chapter if the property was used, controlled, possessed, or
13-19 concealed for the purpose of violating any provision of this
13-20 chapter.
13-21 (d) The comptroller [treasurer] shall hold property or
13-22 proceeds forfeited under this section in escrow until the
13-23 comptroller's [treasurer's] determination is final and the period
13-24 for filing a petition for judicial review has expired.
13-25 SECTION 6. Section 154.415, Tax Code, is amended to read as
14-1 follows:
14-2 Sec. 154.415. DONATIONS [ADDITIONAL ENFORCEMENT POWERS].
14-3 [(a) The treasurer has all of the rights and powers granted the
14-4 comptroller in Chapters 111 and 113 of this code with respect to
14-5 the tax imposed by this chapter. Those rights and powers are in
14-6 addition to those granted the treasurer in this chapter.]
14-7 [(b)] The comptroller [treasurer] may accept gifts, grants,
14-8 and donations for the administration and enforcement of this
14-9 chapter.
14-10 SECTION 7. Section 155.001, Tax Code, is amended to read as
14-11 follows:
14-12 Sec. 155.001. DEFINITIONS. In this chapter:
14-13 (1) "Bonded agent" means a person in this state who is
14-14 an agent of a person outside this state and receives cigars and
14-15 tobacco products in interstate commerce and stores the cigars and
14-16 tobacco products for distribution or delivery to distributors under
14-17 orders from the person outside this state.
14-18 (2) "Cigar" means a roll of fermented tobacco that is
14-19 wrapped in tobacco and the main stream of smoke from which produces
14-20 an alkaline reaction to litmus paper.
14-21 (3) "Common carrier" means a motor carrier registered
14-22 under Chapter 643, Transportation Code [Article 6675c, Revised
14-23 Statutes], or a motor carrier operating under a certificate issued
14-24 by the Interstate Commerce Commission or a successor agency to the
14-25 Interstate Commerce Commission.
15-1 (4) "Consumer" means a person who possesses tobacco
15-2 products for personal consumption.
15-3 (5) "Distributor" means a person who:
15-4 (A) receives tobacco products for the purpose of
15-5 making a first sale in this state from a manufacturer outside the
15-6 state or within the state or otherwise brings or causes to be
15-7 brought into this state tobacco products for sale, use, or
15-8 consumption; [or]
15-9 (B) manufactures or produces tobacco products;
15-10 or
15-11 (C) is an importer or import broker.
15-12 (6) "Export warehouse" means a person in this state
15-13 who receives tobacco products from manufacturers and stores the
15-14 tobacco products for the purpose of making sales to authorized
15-15 persons for resale, use, or consumption outside the United States.
15-16 (7) "First sale" means, except as otherwise provided
15-17 by this chapter:
15-18 (A) the first transfer of possession in
15-19 connection with a purchase, sale, or any exchange for value of
15-20 tobacco products in intrastate commerce;
15-21 (B) the first use or consumption of tobacco
15-22 products in this state; or
15-23 (C) the loss of tobacco products in this state
15-24 whether through negligence, theft, or other unaccountable loss.
15-25 (8) "Importer" or "Import broker" means a person who
16-1 ships, transports, or imports into this state tobacco products
16-2 manufactured or produced outside the United States for the purpose
16-3 of making a first sale in this state.
16-4 (9) [(7)] "Manufacturer" means a person who
16-5 manufactures or produces tobacco products and sells tobacco
16-6 products to a distributor.
16-7 (10) [(8)] "Manufacturer's representative" means a
16-8 person employed by a manufacturer to sell or distribute the
16-9 manufacturer's tobacco products.
16-10 (11) [(9)] "Permit holder" means a bonded agent,
16-11 distributor, wholesaler, or retailer required to obtain a permit
16-12 under Section 155.041.
16-13 (12) [(10)] "Place of business" means:
16-14 (A) a commercial business location [place] where
16-15 tobacco products are sold;
16-16 (B) a commercial business location [place] where
16-17 tobacco products are kept for sale or consumption or otherwise
16-18 stored; or
16-19 (C) a vehicle from which tobacco products are
16-20 sold.
16-21 (13) [(11)] "Retailer" means a person who engages in
16-22 the practice of selling tobacco products to consumers and includes
16-23 the owner of a coin-operated vending machine.
16-24 (14) [(12)] "Tobacco product" means:
16-25 (A) a cigar;
17-1 (B) smoking tobacco, including granulated,
17-2 plug-cut, crimp-cut, ready-rubbed, and any form of tobacco suitable
17-3 for smoking in a pipe or as a cigarette;
17-4 (C) chewing tobacco, including Cavendish, Twist,
17-5 plug, scrap, and any kind of tobacco suitable for chewing;
17-6 (D) snuff or other preparations of pulverized
17-7 tobacco; or
17-8 (E) an article or product that is made of
17-9 tobacco or a tobacco substitute and that is not a cigarette.
17-10 (15) [(13)] "Wholesaler" means a person, including a
17-11 manufacturer's representative, who sells or distributes tobacco
17-12 products in this state for resale but who is not a distributor.
17-13 SECTION 8. Section 155.101, Tax Code, is amended to read as
17-14 follows:
17-15 Sec. 155.101. RECORD OF PURCHASE OR RECEIPT. Each
17-16 distributor, wholesaler, bonded agent, and export warehouse shall
17-17 keep records at each place of business of all tobacco products
17-18 purchased or received. Each retailer shall keep records at a
17-19 single location, which the retailer shall designate as its
17-20 principal place of business in the state, of all tobacco products
17-21 purchased and received. These records must include the following,
17-22 except that Subdivision (7) applies to distributors only:
17-23 (1) the name and address of the shipper or carrier and
17-24 the mode of transportation;
17-25 (2) all shipping records or copies of records,
18-1 including invoices, bills of lading, waybills, freight bills, and
18-2 express receipts;
18-3 (3) the date and the name of the place of origin of
18-4 the tobacco product shipment;
18-5 (4) the date and the name of the place of arrival of
18-6 the tobacco product shipment;
18-7 (5) a statement of the number, kind, and price paid
18-8 for the tobacco products;
18-9 (6) the name, address, permit number, and tax
18-10 identification number of the seller; [and]
18-11 (7) the manufacturer's list price for the tobacco
18-12 products; and
18-13 (8) any other information required by rules of the
18-14 comptroller [treasurer].
18-15 SECTION 9. Subsection (b), Section 155.102, Tax Code, is
18-16 amended to read as follows:
18-17 (b) The records for each sale, distribution, exchange, or
18-18 use of tobacco products must show:
18-19 (1) the purchaser's name and address, permit number,
18-20 or tax identification number;
18-21 (2) the method of delivery and the name of the common
18-22 carrier or other person delivering the tobacco products;
18-23 (3) the date, amount, and type of tobacco products
18-24 sold, distributed, exchanged, or used;
18-25 (4) the price received for the tobacco products; [and]
19-1 (5) the number and kind of tobacco products on which
19-2 the tax has been paid; and
19-3 (6) for sales from a manufacturer to a distributor,
19-4 the manufacturer's list price for the tobacco products.
19-5 SECTION 10. Section 155.111, Tax Code, is amended to read as
19-6 follows:
19-7 Sec. 155.111. DISTRIBUTOR'S REPORT. (a) A distributor
19-8 shall file with the comptroller [treasurer] on or before the 30th
19-9 day of each month, a report for the preceding month.
19-10 (b) The report must show:
19-11 (1) the date the report was made;
19-12 (2) the distributor's name and address;
19-13 (3) the month the report covers;
19-14 (4) the amount of tobacco products purchased,
19-15 received, and acquired;
19-16 (5) the manufacturer's list price of tobacco products
19-17 purchased, received, and acquired;
19-18 (6) the amount of tobacco products sold, distributed,
19-19 used, lost, or otherwise disposed of;
19-20 (7) [(6)] the amount of tobacco products on hand at
19-21 the beginning and the end of the month; and
19-22 (8) [(7)] any other information the comptroller
19-23 [treasurer] requires relating to tobacco products and to the
19-24 payment of taxes due on them.
19-25 (c) The comptroller [treasurer] shall prescribe the form and
20-1 content of the report.
20-2 SECTION 11. Section 155.141, Tax Code, is amended to read as
20-3 follows:
20-4 Sec. 155.141. DONATIONS [ENFORCEMENT POWERS]. [(a) The
20-5 treasurer has all of the rights and powers granted the comptroller
20-6 in Chapters 111 and 113 of this code with respect to the tax
20-7 imposed by this chapter. Those rights and powers are in addition
20-8 to those granted the treasurer in this chapter.]
20-9 [(b)] The comptroller [treasurer] may accept gifts, grants,
20-10 and donations for the administration and enforcement of this
20-11 chapter.
20-12 SECTION 12. Subsections (b), (c), and (d), Section 155.145,
20-13 Tax Code, are amended to read as follows:
20-14 (b) The comptroller [treasurer] shall give the notice by
20-15 certified mail, return receipt requested, not later than the 15th
20-16 day after the date of seizure and shall include with the notice an
20-17 inventory of the property seized and a statement that the owner of
20-18 property seized is entitled to [of the date, time, and place of] a
20-19 hearing on the seizure. Service by mail is complete when the
20-20 notice is received, as evidenced by return receipt from the U.S.
20-21 Postal Service.
20-22 (c) After providing the notice and a hearing, if a hearing
20-23 is requested under Subsection (b), the comptroller [treasurer] may
20-24 order the forfeiture to the state of any property seized under this
20-25 chapter or the proceeds of the sale of any tobacco products seized
21-1 under this chapter if the comptroller [treasurer] finds that the
21-2 property was used, controlled, possessed, or concealed for the
21-3 purpose of violating any provision of this chapter.
21-4 (d) The comptroller [treasurer] shall hold property or
21-5 proceeds forfeited under this section in escrow until the
21-6 comptroller's [treasurer's] determination is final and the period
21-7 for filing a petition for judicial review has expired.
21-8 SECTION 13. The following provisions of the Tax Code are
21-9 repealed:
21-10 (1) Section 111.1041;
21-11 (2) Section 154.048; and
21-12 (3) Section 154.049.
21-13 SECTION 14. This Act takes effect October 1, 1997.
21-14 SECTION 15. The importance of this legislation and the
21-15 crowded condition of the calendars in both houses create an
21-16 emergency and an imperative public necessity that the
21-17 constitutional rule requiring bills to be read on three several
21-18 days in each house be suspended, and this rule is hereby suspended.
21-19 COMMITTEE AMENDMENT NO. 1
21-20 Amend S.B. 1266 on page 3, line 9, strike "20" and substitute
21-21 "10".
21-22 Oliveira
21-23 COMMITTEE AMENDMENT NO. 2
21-24 Amend S.B. 1266 by adding a new SECTION 14 and renumbering
21-25 the remaining sections accordingly:
22-1 SECTION 14. In addition to duties prescribed by other law,
22-2 any state agency responsible for compliance with section 1926 of
22-3 the federal Public Health Service Act (42 U.S.C. Section 300x-26)
22-4 regarding the sale of tobacco products to individuals under the age
22-5 of 18 shall file with the comptroller a copy of the reports and
22-6 agreements required under such federal act. If the state agency
22-7 fails to file a copy of the reports and agreements within 10 days
22-8 after such information is due under section 1926, the comptroller
22-9 shall withhold expense appropriations. The comptroller may enter
22-10 into agreements with the responsible state agencies and may
22-11 promulgate rules as necessary to facilitate compliance.
22-12 Oliveira