By Armbrister S.B. No. 1266
75R8585 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the administration, collection, and enforcement of
1-3 taxes on cigarettes, cigars, and tobacco products.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 154.001, Tax Code, is amended to read as
1-6 follows:
1-7 Sec. 154.001. DEFINITIONS. In this chapter:
1-8 (1) "Bonded agent" means a person in this state who is
1-9 an agent of a person outside this state and receives cigarettes in
1-10 interstate commerce and stores the cigarettes for distribution or
1-11 delivery to distributors under orders from the person outside this
1-12 state.
1-13 (2) "Cigarette" means a roll for smoking:
1-14 (A) that is made of tobacco or tobacco mixed
1-15 with another ingredient and wrapped or covered with a material
1-16 other than tobacco; and
1-17 (B) that is not a cigar.
1-18 (3) "Common carrier" means a motor carrier registered
1-19 under Chapter 643, Transportation Code [Article 6675c, Revised
1-20 Statutes], or a motor carrier operating under a certificate issued
1-21 by the Interstate Commerce Commission or a successor agency to the
1-22 Interstate Commerce Commission.
1-23 (4) "Consumer" means a person who possesses cigarettes
1-24 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
2-26 in this state; or
2-27 (C) the loss of cigarettes in this state whether
3-1 through negligence, theft, or other unaccountable loss.
3-2 (9) "Importer" or "Import broker" means a person who
3-3 ships, transports, or imports into this state cigarettes
3-4 manufactured or produced outside the United States for the purpose
3-5 of making a first sale in this state.
3-6 (10) [(8)] "Individual package of cigarettes" means a
3-7 package that contains not fewer than 10 cigarettes[:]
3-8 [(A) the smallest package of cigarettes
3-9 ordinarily manufactured for sale; or]
3-10 [(B) any size package of cigarettes taxed by the
3-11 United States].
3-12 (11) [(9)] "Manufacturer" means a person who
3-13 manufactures and sells cigarettes to a distributor.
3-14 (12) [(10)] "Manufacturer's representative" means a
3-15 person employed by a manufacturer to sell or distribute the
3-16 manufacturer's stamped cigarette packages.
3-17 (13) [(11)] "Permit holder" means a bonded agent,
3-18 distributor, wholesaler, or retailer required to obtain a permit
3-19 under Section 154.101.
3-20 (14) [(12)] "Place of business" means:
3-21 (A) a commercial business location [place] where
3-22 cigarettes are sold;
3-23 (B) a commercial business location [place] where
3-24 cigarettes are kept for sale or consumption or otherwise stored; or
3-25 (C) a vehicle from which cigarettes are sold.
3-26 (15) [(13)] "Previously used stamp" means a stamp that
3-27 has been used to show payment of a tax imposed by this chapter and
4-1 is again used, sold, or possessed for sale or use to show payment
4-2 of a tax imposed by this chapter.
4-3 (16) [(14)] "Retailer" means a person who engages in
4-4 the practice of selling cigarettes to consumers and includes the
4-5 owner of a coin-operated cigarette vending machine.
4-6 (17) [(15)] "Stamp" includes only a stamp that:
4-7 (A) is printed, manufactured, or made by
4-8 authority of the comptroller [treasurer];
4-9 (B) shows payment of the tax imposed by this
4-10 chapter; and
4-11 (C) is consecutively numbered and uniquely
4-12 identifiable as a Texas tax stamp.
4-13 (18) [(16)] "Wholesaler" means a person, including a
4-14 manufacturer's representative, who sells or distributes cigarettes
4-15 in this state for resale but who is not a distributor.
4-16 SECTION 2. The heading of Subchapter C, Chapter 154, Tax
4-17 Code, is amended to read as follows:
4-18 SUBCHAPTER C. TAX STAMPS [AND METERS]
4-19 SECTION 3. Section 154.050, Tax Code, is amended to read as
4-20 follows:
4-21 Sec. 154.050. PAYMENT. (a) The comptroller [treasurer]
4-22 shall require that payment in full for stamps [or meter settings]
4-23 be made within 30 days after the date stamps [or a set meter] and
4-24 an accompanying invoice from the comptroller [treasurer] are
4-25 received by the distributor, except that at the close of each
4-26 biennium, payment for stamps [or meter settings] purchased or
4-27 received on or before August 31 of that fiscal year shall be made
5-1 in full on or before August 31 of that fiscal year, providing that
5-2 such payment be received in the office of the comptroller
5-3 [treasurer] no later than August 31 of that fiscal year
5-4 notwithstanding any other statute regarding tax due dates to the
5-5 contrary.
5-6 (b) The comptroller [treasurer] may not ship stamps [or set
5-7 a meter] without advance payment under this section unless the
5-8 distributor has satisfied all requirements imposed under Section
5-9 154.051 [of this code].
5-10 (c) Payment for stamps [or meter settings] must be made by
5-11 cashier's check payable to the comptroller [treasurer], electronic
5-12 funds transfer to the comptroller [treasurer], or any other method
5-13 of payment authorized by the comptroller [treasurer].
5-14 (d) The dishonor of a check delivered to the comptroller
5-15 [treasurer] for payment of stamps constitutes a failure to pay the
5-16 tax when due.
5-17 SECTION 4. Sections 154.051(a)-(c), (e)-(k), (n), and (o),
5-18 Tax Code, are amended to read as follows:
5-19 (a) The cigarette tax recovery trust fund is a private trust
5-20 fund established outside the state treasury and as provided by this
5-21 section secures the payment of cigarette taxes by distributors who
5-22 contribute to the fund. The fund is composed of the total amount
5-23 in the separate accounts maintained in trust for all contributing
5-24 distributors as provided by this section. The assets of the fund,
5-25 including interest earned by those assets, are to be held in trust
5-26 for the benefit and protection of the state treasury, and may not
5-27 be diverted, distributed, or appropriated for any purpose other
6-1 than as provided by this section. Interest earned by a
6-2 distributor's account but not yet refunded to the distributor
6-3 pursuant to Subsection (d) shall, on a monthly basis, be paid to
6-4 the comptroller [treasurer] as provided by Subsection (b) or
6-5 credited to the distributor's account.
6-6 (b) The comptroller [treasurer] is the trustee of the fund
6-7 as provided by Section 404.073, Government Code, and shall manage
6-8 the fund as provided by this section. In investing the assets of
6-9 the fund, the comptroller [treasurer] has the obligations, duties,
6-10 and powers provided for the investment of state funds by Sections
6-11 404.021 through 404.0245 [404.025], Government Code, and by the
6-12 orders of the State Depository Board. The comptroller [treasurer]
6-13 shall receive five percent of the interest earned on all assets of
6-14 the fund as compensation for serving as trustee of the fund.
6-15 (c) A distributor who orders stamps [or requests a meter
6-16 setting] from the comptroller [state treasurer] under this chapter
6-17 without advance payment shall contribute to an account maintained
6-18 in the distributor's name in the fund money in the amount of each
6-19 allowance [discount] to which the distributor is entitled under
6-20 Section 154.052 [of this code]. When the money in the
6-21 distributor's account equals 20 percent of the designated amount of
6-22 stamps [and meter setting] requested by the distributor and
6-23 approved by the comptroller [treasurer] to be purchased in any one
6-24 month, the distributor's interest in the fund becomes vested.
6-25 (e) Until a distributor who orders stamps [or requests a
6-26 meter setting] without advance payment acquires a vested interest
6-27 in the fund, the comptroller [treasurer] may require the
7-1 distributor to post with the comptroller [treasurer] an irrevocable
7-2 letter of credit drawn in the form and amount specified by the
7-3 comptroller [treasurer] to secure the payment of cigarette taxes by
7-4 that distributor. The comptroller [treasurer] may not ship stamps
7-5 to [or set a meter for] a distributor not having a vested interest
7-6 in the fund without advance payment until the distributor posts the
7-7 required letter of credit.
7-8 (f) In addition to any other requirement under this section,
7-9 the comptroller [treasurer] as a condition for shipping stamps [or
7-10 setting a meter] without advance payment may:
7-11 (1) require a fiscal-year-end financial statement,
7-12 including a balance sheet and income statement verifiable as to its
7-13 accuracy or other financial information acceptable to the
7-14 comptroller [treasurer] and verifiable as to its accuracy;
7-15 (2) require indemnification from each officer,
7-16 director, and stockholder owning 10 percent or more of outstanding
7-17 stock, if the distributor is a corporation, from each partner, if
7-18 the distributor is a partnership, from each member or owner of a
7-19 joint venture or syndication, and from the owner of a sole
7-20 proprietorship;
7-21 (3) require the distributor to obtain and provide the
7-22 comptroller [treasurer] with a credit report from a credit
7-23 reporting agency acceptable to the comptroller [treasurer];
7-24 (4) require a distributor to increase the balance in
7-25 its account in the fund;
7-26 (5) require a distributor to post a letter of credit;
7-27 (6) reduce a distributor's credit time or amount; or
8-1 (7) take any other reasonable and necessary action to
8-2 protect the state treasury from loss due to the nonpayment of
8-3 cigarette taxes.
8-4 (g) If a distributor who has an account in the fund fails to
8-5 pay in full a tax imposed by this chapter by the due date, the
8-6 comptroller [treasurer], without prior notice to the distributor or
8-7 any other preliminary procedure, may seize any unaffixed stamps and
8-8 any stamped cigarette packages, up to and including the full amount
8-9 of unpaid tax. If the proceeds from the seizure do not satisfy the
8-10 total tax deficiency or the comptroller [treasurer] does not seize
8-11 any unaffixed stamps or stamped cigarette packages, the comptroller
8-12 [treasurer] may withdraw immediately from the fund an amount equal
8-13 to the amount of unpaid taxes due. The comptroller [treasurer]
8-14 shall first withdraw the amount from the account of the defaulting
8-15 distributor. The comptroller [treasurer] shall use the
8-16 comptroller's [treasurer's] best efforts to collect the tax due
8-17 from the defaulting distributor before withdrawing money from the
8-18 other accounts in the fund to satisfy the tax liability. If that
8-19 distributor's account does not contain sufficient money to satisfy
8-20 the tax liability in full, the comptroller [treasurer] shall
8-21 withdraw the additional amount necessary to satisfy that liability
8-22 from the other accounts in the fund in proportion to the balance of
8-23 each account, except that the withdrawal from any other
8-24 distributor's account in the fund is limited to an amount not
8-25 greater than 50 percent of the designated amount of stamps [and
8-26 meter settings] requested by the distributor under Subsection (c)
8-27 or of the amount required by the comptroller [treasurer] under
9-1 Subsection (f)(4). Not later than the fifth day after the date of a
9-2 withdrawal, the comptroller [treasurer] shall notify each
9-3 distributor of the withdrawal from its account and the amount
9-4 withdrawn. If as a result of a withdrawal made under this
9-5 subsection a distributor's balance in its account is reduced to an
9-6 amount less than the minimum required under this section, the
9-7 distributor's interest in the fund is no longer vested, and the
9-8 comptroller [treasurer] may discontinue refunds to the distributor
9-9 under Subsection (d) until the distributor again acquires a vested
9-10 interest in the fund. The comptroller [treasurer] may require a
9-11 distributor whose interest in the fund is no longer vested to post
9-12 an irrevocable letter of credit with the comptroller [treasurer] to
9-13 secure the payment of cigarette taxes by the distributor. To
9-14 protect the fund, each distributor having an account in the fund
9-15 must indemnify the fund against any amount withdrawn from the fund
9-16 under this subsection because of the failure of the distributor to
9-17 pay in full a tax imposed by this chapter by the due date.
9-18 (h) If distributor accounts, other than a defaulting
9-19 distributor account, are drawn pursuant to Subsection (g) [of this
9-20 section], each affected, nondefaulting distributor shall have a
9-21 claim against the defaulting distributor for the amount so drawn.
9-22 The comptroller [treasurer] is hereby appointed trustee, agent, and
9-23 assignee of each affected, nondefaulting distributor for purposes
9-24 of seeking recovery of the amount so drawn. The comptroller
9-25 [treasurer] shall have the sole judgment and discretion in deciding
9-26 whether or not to pursue such a claim and shall have discretion to
9-27 handle any such claim on any basis that in the opinion of the
10-1 comptroller [treasurer] is in the best interest of the fund. The
10-2 comptroller [treasurer] is released from any liability related to
10-3 the handling of the claims described in this section except for
10-4 intentional or wilful misconduct.
10-5 (i) A distributor or person authorized to act on behalf of a
10-6 distributor may notify the comptroller [treasurer] in writing that
10-7 the distributor no longer desires to have stamps shipped [or a
10-8 meter set] without advance payment, and may request that the money
10-9 in the distributor's account in the fund be paid to the distributor
10-10 or the distributor's heirs or assigns. The comptroller [treasurer]
10-11 shall pay the money in the distributor's account as requested at
10-12 the end of the next quarter after all outstanding taxes owed to the
10-13 state by the distributor have been paid.
10-14 (j) Under no circumstances shall the comptroller [treasurer]
10-15 return to any distributor an amount greater than the balance in the
10-16 distributor's account within the cigarette tax recovery trust fund
10-17 less any sums drawn pursuant to Subsection (g) [of this section].
10-18 The State of Texas' liability to any distributor pursuant to this
10-19 section is expressly limited to the sums on deposit in the
10-20 distributor's account at the time the request for return of funds
10-21 is made.
10-22 (k) The comptroller [treasurer] may adopt and enforce rules
10-23 necessary to carry out this section.
10-24 (n) The comptroller [treasurer] shall regularly distribute
10-25 financial information regarding the performance of the fund to
10-26 participating distributors on a regular basis. On the written
10-27 request of a participating distributor, the comptroller [treasurer]
11-1 shall provide the distributor with the name and address of each
11-2 distributor participating in the fund, the percentage of the total
11-3 fund represented by each distributor's account, and the total
11-4 amount of money in the fund.
11-5 (o) In lieu of participation in the cigarette tax recovery
11-6 trust fund to secure payment for stamps [or meter settings] and in
11-7 lieu of advance payment for stamps [or meter settings], a
11-8 distributor may pledge to the comptroller [treasurer] sufficient
11-9 collateral to secure payment for stamps [or meter settings]. Such
11-10 pledge shall be evidenced by a pledge agreement in a form
11-11 promulgated by the comptroller [treasurer], and such collateral
11-12 shall consist of certificates of deposit, treasury notes, treasury
11-13 bills, or other similar types of collateral acceptable to the
11-14 comptroller [treasurer] and held in a separate trust fund
11-15 established in the Texas Treasury Safekeeping Trust Company. All
11-16 interest earned on such collateral shall belong to the distributor.
11-17 The comptroller [treasurer] may require the pledge of additional
11-18 collateral in the event the comptroller [treasurer] determines that
11-19 the fair market value of the pledged collateral is less than the
11-20 amount due the comptroller [treasurer] for stamps [or meter
11-21 settings]. On the written request of the distributor, the
11-22 comptroller [treasurer] shall release collateral from the pledge
11-23 agreement or allow the substitution of collateral subject to the
11-24 pledge agreement if after such release or substitution the fair
11-25 market value of the collateral subject to the pledge will be equal
11-26 to or greater than the amount due the comptroller [treasurer] for
11-27 stamps [or meter settings]. If a distributor fails to pay tax in
12-1 full when due, the comptroller [treasurer] may, if the distributor
12-2 does not pay such past due tax and any penalty related thereto
12-3 within three days after receipt of written notice of such failure
12-4 from the comptroller [treasurer], sell or dispose of the collateral
12-5 and apply the proceeds to the payment of taxes, interest,
12-6 penalties, and costs due to the comptroller [treasurer] by the
12-7 distributor, with any remaining proceeds being refunded to the
12-8 distributor.
12-9 SECTION 5. Sections 154.405(b)-(d), Tax Code, are amended to
12-10 read as follows:
12-11 (b) The comptroller [treasurer] shall give the notice by
12-12 certified mail, return receipt requested, not later than the 15th
12-13 day after the date of seizure and include with the notice an
12-14 inventory of the property seized and a statement that the owner of
12-15 property seized is entitled to [of the date, time, and place of] a
12-16 hearing on the seizure. Service by mail is complete when the
12-17 notice is received, as evidenced by return receipt from the U.S.
12-18 Postal Service.
12-19 (c) After providing the notice and a hearing, if a hearing
12-20 is requested under Subsection (b), the comptroller [treasurer] may
12-21 order the forfeiture to the state of any property seized under this
12-22 chapter or the proceeds of the sale of any cigarettes seized under
12-23 this chapter if the property was used, controlled, possessed, or
12-24 concealed for the purpose of violating any provision of this
12-25 chapter.
12-26 (d) The comptroller [treasurer] shall hold property or
12-27 proceeds forfeited under this section in escrow until the
13-1 comptroller's [treasurer's] determination is final and the period
13-2 for filing a petition for judicial review has expired.
13-3 SECTION 6. Section 154.415, Tax Code, is amended to read as
13-4 follows:
13-5 Sec. 154.415. DONATIONS [ADDITIONAL ENFORCEMENT POWERS].
13-6 [(a) The treasurer has all of the rights and powers granted the
13-7 comptroller in Chapters 111 and 113 of this code with respect to
13-8 the tax imposed by this chapter. Those rights and powers are in
13-9 addition to those granted the treasurer in this chapter.]
13-10 [(b)] The comptroller [treasurer] may accept gifts, grants,
13-11 and donations for the administration and enforcement of this
13-12 chapter.
13-13 SECTION 7. Section 155.001, Tax Code, is amended to read as
13-14 follows:
13-15 Sec. 155.001. DEFINITIONS. In this chapter:
13-16 (1) "Bonded agent" means a person in this state who is
13-17 an agent of a person outside this state and receives cigars and
13-18 tobacco products in interstate commerce and stores the cigars and
13-19 tobacco products for distribution or delivery to distributors under
13-20 orders from the person outside this state.
13-21 (2) "Cigar" means a roll of fermented tobacco that is
13-22 wrapped in tobacco and the main stream of smoke from which produces
13-23 an alkaline reaction to litmus paper.
13-24 (3) "Common carrier" means a motor carrier registered
13-25 under Chapter 643, Transportation Code [Article 6675c, Revised
13-26 Statutes], or a motor carrier operating under a certificate issued
13-27 by the Interstate Commerce Commission or a successor agency to the
14-1 Interstate Commerce Commission.
14-2 (4) "Consumer" means a person who possesses tobacco
14-3 products for personal consumption.
14-4 (5) "Distributor" means a person who:
14-5 (A) receives tobacco products for the purpose of
14-6 making a first sale in this state from a manufacturer outside the
14-7 state or within the state or otherwise brings or causes to be
14-8 brought into this state tobacco products for sale, use, or
14-9 consumption; [or]
14-10 (B) manufactures or produces tobacco products;
14-11 or
14-12 (C) is an importer or import broker.
14-13 (6) "Export warehouse" means a person in this state
14-14 who receives tobacco products from manufacturers and stores the
14-15 tobacco products for the purpose of making sales to authorized
14-16 persons for resale, use, or consumption outside the United States.
14-17 (7) "First sale" means, except as otherwise provided
14-18 by this chapter:
14-19 (A) the first transfer of possession in
14-20 connection with a purchase, sale, or any exchange for value of
14-21 tobacco products in intrastate commerce;
14-22 (B) the first use or consumption of tobacco
14-23 products in this state; or
14-24 (C) the loss of tobacco products in this state
14-25 whether through negligence, theft, or other unaccountable loss.
14-26 (8) "Importer" or "Import broker" means a person who
14-27 ships, transports, or imports into this state tobacco products
15-1 manufactured or produced outside the United States for the purpose
15-2 of making a first sale in this state.
15-3 (9) [(7)] "Manufacturer" means a person who
15-4 manufactures or produces tobacco products and sells tobacco
15-5 products to a distributor.
15-6 (10) [(8)] "Manufacturer's representative" means a
15-7 person employed by a manufacturer to sell or distribute the
15-8 manufacturer's tobacco products.
15-9 (11) [(9)] "Permit holder" means a bonded agent,
15-10 distributor, wholesaler, or retailer required to obtain a permit
15-11 under Section 155.041.
15-12 (12) [(10)] "Place of business" means:
15-13 (A) a commercial business location [place] where
15-14 tobacco products are sold;
15-15 (B) a commercial business location [place] where
15-16 tobacco products are kept for sale or consumption or otherwise
15-17 stored; or
15-18 (C) a vehicle from which tobacco products are
15-19 sold.
15-20 (13) [(11)] "Retailer" means a person who engages in
15-21 the practice of selling tobacco products to consumers and includes
15-22 the owner of a coin-operated vending machine.
15-23 (14) [(12)] "Tobacco product" means:
15-24 (A) a cigar;
15-25 (B) smoking tobacco, including granulated,
15-26 plug-cut, crimp-cut, ready-rubbed, and any form of tobacco suitable
15-27 for smoking in a pipe or as a cigarette;
16-1 (C) chewing tobacco, including Cavendish, Twist,
16-2 plug, scrap, and any kind of tobacco suitable for chewing;
16-3 (D) snuff or other preparations of pulverized
16-4 tobacco; or
16-5 (E) an article or product that is made of
16-6 tobacco or a tobacco substitute and that is not a cigarette.
16-7 (15) [(13)] "Wholesaler" means a person, including a
16-8 manufacturer's representative, who sells or distributes tobacco
16-9 products in this state for resale but who is not a distributor.
16-10 SECTION 8. Section 155.101, Tax Code, is amended to read as
16-11 follows:
16-12 Sec. 155.101. RECORD OF PURCHASE OR RECEIPT. Each
16-13 distributor, wholesaler, bonded agent, and export warehouse shall
16-14 keep records at each place of business of all tobacco products
16-15 purchased or received. Each retailer shall keep records at a
16-16 single location, which the retailer shall designate as its
16-17 principal place of business in the state, of all tobacco products
16-18 purchased and received. These records must include the following,
16-19 except that Subdivision (7) applies to distributors only:
16-20 (1) the name and address of the shipper or carrier and
16-21 the mode of transportation;
16-22 (2) all shipping records or copies of records,
16-23 including invoices, bills of lading, waybills, freight bills, and
16-24 express receipts;
16-25 (3) the date and the name of the place of origin of
16-26 the tobacco product shipment;
16-27 (4) the date and the name of the place of arrival of
17-1 the tobacco product shipment;
17-2 (5) a statement of the number, kind, and price paid
17-3 for the tobacco products;
17-4 (6) the name, address, permit number, and tax
17-5 identification number of the seller; [and]
17-6 (7) the manufacturer's list price for the tobacco
17-7 products; and
17-8 (8) any other information required by rules of the
17-9 comptroller [treasurer].
17-10 SECTION 9. Section 155.102(b), Tax Code, is amended to read
17-11 as follows:
17-12 (b) The records for each sale, distribution, exchange, or
17-13 use of tobacco products must show:
17-14 (1) the purchaser's name and address, permit number,
17-15 or tax identification number;
17-16 (2) the method of delivery and the name of the common
17-17 carrier or other person delivering the tobacco products;
17-18 (3) the date, amount, and type of tobacco products
17-19 sold, distributed, exchanged, or used;
17-20 (4) the price received for the tobacco products; [and]
17-21 (5) the number and kind of tobacco products on which
17-22 the tax has been paid; and
17-23 (6) for sales from a manufacturer to a distributor,
17-24 the manufacturer's list price for the tobacco products.
17-25 SECTION 10. Section 155.111, Tax Code, is amended to read as
17-26 follows:
17-27 Sec. 155.111. DISTRIBUTOR'S REPORT. (a) A distributor
18-1 shall file with the comptroller [treasurer] on or before the 30th
18-2 day of each month, a report for the preceding month.
18-3 (b) The report must show:
18-4 (1) the date the report was made;
18-5 (2) the distributor's name and address;
18-6 (3) the month the report covers;
18-7 (4) the amount of tobacco products purchased,
18-8 received, and acquired;
18-9 (5) the manufacturer's list price of tobacco products
18-10 purchased, received, and acquired;
18-11 (6) the amount of tobacco products sold, distributed,
18-12 used, lost, or otherwise disposed of;
18-13 (7) [(6)] the amount of tobacco products on hand at
18-14 the beginning and the end of the month; and
18-15 (8) [(7)] any other information the comptroller
18-16 [treasurer] requires relating to tobacco products and to the
18-17 payment of taxes due on them.
18-18 (c) The comptroller [treasurer] shall prescribe the form and
18-19 content of the report.
18-20 SECTION 11. Section 155.141, Tax Code, is amended to read as
18-21 follows:
18-22 Sec. 155.141. DONATIONS [ENFORCEMENT POWERS]. [(a) The
18-23 treasurer has all of the rights and powers granted the comptroller
18-24 in Chapters 111 and 113 of this code with respect to the tax
18-25 imposed by this chapter. Those rights and powers are in addition
18-26 to those granted the treasurer in this chapter.]
18-27 [(b)] The comptroller [treasurer] may accept gifts, grants,
19-1 and donations for the administration and enforcement of this
19-2 chapter.
19-3 SECTION 12. Sections 155.145(b)-(d), Tax Code, are amended
19-4 to read as follows:
19-5 (b) The comptroller [treasurer] shall give the notice by
19-6 certified mail, return receipt requested, not later than the 15th
19-7 day after the date of seizure and shall include with the notice an
19-8 inventory of the property seized and a statement that the owner of
19-9 property seized is entitled to [of the date, time, and place of] a
19-10 hearing on the seizure. Service by mail is complete when the
19-11 notice is received, as evidenced by return receipt from the U.S.
19-12 Postal Service.
19-13 (c) After providing the notice and a hearing, if a hearing
19-14 is requested under Subsection (b), the comptroller [treasurer] may
19-15 order the forfeiture to the state of any property seized under this
19-16 chapter or the proceeds of the sale of any tobacco products seized
19-17 under this chapter if the comptroller [treasurer] finds that the
19-18 property was used, controlled, possessed, or concealed for the
19-19 purpose of violating any provision of this chapter.
19-20 (d) The comptroller [treasurer] shall hold property or
19-21 proceeds forfeited under this section in escrow until the
19-22 comptroller's [treasurer's] determination is final and the period
19-23 for filing a petition for judicial review has expired.
19-24 SECTION 13. The following provisions of the Tax Code are
19-25 repealed:
19-26 (1) Section 111.1041;
19-27 (2) Section 154.048; and
20-1 (3) Section 154.049.
20-2 SECTION 14. This Act takes effect October 1, 1997.
20-3 SECTION 15. The importance of this legislation and the
20-4 crowded condition of the calendars in both houses create an
20-5 emergency and an imperative public necessity that the
20-6 constitutional rule requiring bills to be read on three several
20-7 days in each house be suspended, and this rule is hereby suspended.