1-1 By: Armbrister S.B. No. 1266
1-2 (In the Senate - Filed March 12, 1997; March 17, 1997, read
1-3 first time and referred to Committee on Finance; April 9, 1997,
1-4 reported favorably, as amended, by the following vote: Yeas 11,
1-5 Nays 0; April 9, 1997, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Moncrief
1-7 Amend S.B. No. 1266 on page 2, lines 5 and 6, by striking Section
1-8 154.001(10) and substituting the following:
1-9 (10) [(8)] "Individual package of cigarettes" means a
1-10 package that contains not fewer than 20 cigarettes[:]
1-11 A BILL TO BE ENTITLED
1-12 AN ACT
1-13 relating to the administration, collection, and enforcement of
1-14 taxes on cigarettes, cigars, and tobacco products.
1-15 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-16 SECTION 1. Section 154.001, Tax Code, is amended to read as
1-17 follows:
1-18 Sec. 154.001. DEFINITIONS. In this chapter:
1-19 (1) "Bonded agent" means a person in this state who is
1-20 an agent of a person outside this state and receives cigarettes in
1-21 interstate commerce and stores the cigarettes for distribution or
1-22 delivery to distributors under orders from the person outside this
1-23 state.
1-24 (2) "Cigarette" means a roll for smoking:
1-25 (A) that is made of tobacco or tobacco mixed
1-26 with another ingredient and wrapped or covered with a material
1-27 other than tobacco; and
1-28 (B) that is not a cigar.
1-29 (3) "Common carrier" means a motor carrier registered
1-30 under Chapter 643, Transportation Code [Article 6675c, Revised
1-31 Statutes], or a motor carrier operating under a certificate issued
1-32 by the Interstate Commerce Commission or a successor agency to the
1-33 Interstate Commerce Commission.
1-34 (4) "Consumer" means a person who possesses cigarettes
1-35 for personal consumption.
1-36 (5) "Counterfeit stamp" means a sticker, label, print,
1-37 tag, or token that is used or is intended to be used to simulate a
1-38 stamp and that is not authorized or issued by the comptroller
1-39 [treasurer].
1-40 (6) "Distributor" means a person who:
1-41 (A) is authorized to purchase for the purpose of
1-42 making a first sale in this state cigarettes in unstamped packages
1-43 from manufacturers who distribute cigarettes in this state and to
1-44 stamp cigarette packages;
1-45 (B) ships, transports, imports into this state,
1-46 acquires, or possesses cigarettes and makes a first sale of the
1-47 cigarettes in this state; [or]
1-48 (C) manufactures or produces cigarettes; or
1-49 (D) is an importer or import broker.
1-50 (7) "Export warehouse" means a person in this state
1-51 who receives cigarettes in unstamped packages from manufacturers
1-52 and stores the cigarettes for the purpose of making sales to
1-53 authorized persons for resale, use, or consumption outside the
1-54 United States.
1-55 (8) "First sale" means, except as otherwise provided
1-56 by this chapter:
1-57 (A) the first transfer of possession in
1-58 connection with a purchase, sale, or any exchange for value of
1-59 cigarettes in intrastate commerce;
1-60 (B) the first use or consumption of cigarettes
1-61 in this state; or
1-62 (C) the loss of cigarettes in this state whether
1-63 through negligence, theft, or other unaccountable loss.
1-64 (9) "Importer" or "Import broker" means a person who
2-1 ships, transports, or imports into this state cigarettes
2-2 manufactured or produced outside the United States for the purpose
2-3 of making a first sale in this state.
2-4 (10) [(8)] "Individual package of cigarettes" means a
2-5 package that contains not fewer than 10 cigarettes[:]
2-6 [(A) the smallest package of cigarettes
2-7 ordinarily manufactured for sale; or]
2-8 [(B) any size package of cigarettes taxed by the
2-9 United States].
2-10 (11) [(9)] "Manufacturer" means a person who
2-11 manufactures and sells cigarettes to a distributor.
2-12 (12) [(10)] "Manufacturer's representative" means a
2-13 person employed by a manufacturer to sell or distribute the
2-14 manufacturer's stamped cigarette packages.
2-15 (13) [(11)] "Permit holder" means a bonded agent,
2-16 distributor, wholesaler, or retailer required to obtain a permit
2-17 under Section 154.101.
2-18 (14) [(12)] "Place of business" means:
2-19 (A) a commercial business location [place] where
2-20 cigarettes are sold;
2-21 (B) a commercial business location [place] where
2-22 cigarettes are kept for sale or consumption or otherwise stored; or
2-23 (C) a vehicle from which cigarettes are sold.
2-24 (15) [(13)] "Previously used stamp" means a stamp that
2-25 has been used to show payment of a tax imposed by this chapter and
2-26 is again used, sold, or possessed for sale or use to show payment
2-27 of a tax imposed by this chapter.
2-28 (16) [(14)] "Retailer" means a person who engages in
2-29 the practice of selling cigarettes to consumers and includes the
2-30 owner of a coin-operated cigarette vending machine.
2-31 (17) [(15)] "Stamp" includes only a stamp that:
2-32 (A) is printed, manufactured, or made by
2-33 authority of the comptroller [treasurer];
2-34 (B) shows payment of the tax imposed by this
2-35 chapter; and
2-36 (C) is consecutively numbered and uniquely
2-37 identifiable as a Texas tax stamp.
2-38 (18) [(16)] "Wholesaler" means a person, including a
2-39 manufacturer's representative, who sells or distributes cigarettes
2-40 in this state for resale but who is not a distributor.
2-41 SECTION 2. The heading of Subchapter C, Chapter 154, Tax
2-42 Code, is amended to read as follows:
2-43 SUBCHAPTER C. TAX STAMPS [AND METERS]
2-44 SECTION 3. Section 154.050, Tax Code, is amended to read as
2-45 follows:
2-46 Sec. 154.050. PAYMENT. (a) The comptroller [treasurer]
2-47 shall require that payment in full for stamps [or meter settings]
2-48 be made within 30 days after the date stamps [or a set meter] and
2-49 an accompanying invoice from the comptroller [treasurer] are
2-50 received by the distributor, except that at the close of each
2-51 biennium, payment for stamps [or meter settings] purchased or
2-52 received on or before August 31 of that fiscal year shall be made
2-53 in full on or before August 31 of that fiscal year, providing that
2-54 such payment be received in the office of the comptroller
2-55 [treasurer] no later than August 31 of that fiscal year
2-56 notwithstanding any other statute regarding tax due dates to the
2-57 contrary.
2-58 (b) The comptroller [treasurer] may not ship stamps [or set
2-59 a meter] without advance payment under this section unless the
2-60 distributor has satisfied all requirements imposed under Section
2-61 154.051 [of this code].
2-62 (c) Payment for stamps [or meter settings] must be made by
2-63 cashier's check payable to the comptroller [treasurer], electronic
2-64 funds transfer to the comptroller [treasurer], or any other method
2-65 of payment authorized by the comptroller [treasurer].
2-66 (d) The dishonor of a check delivered to the comptroller
2-67 [treasurer] for payment of stamps constitutes a failure to pay the
2-68 tax when due.
2-69 SECTION 4. Subsections (a), (b), (c), (e) through (k), (n),
3-1 and (o), Section 154.051, Tax Code, are amended to read as follows:
3-2 (a) The cigarette tax recovery trust fund is a private trust
3-3 fund established outside the state treasury and as provided by this
3-4 section secures the payment of cigarette taxes by distributors who
3-5 contribute to the fund. The fund is composed of the total amount
3-6 in the separate accounts maintained in trust for all contributing
3-7 distributors as provided by this section. The assets of the fund,
3-8 including interest earned by those assets, are to be held in trust
3-9 for the benefit and protection of the state treasury, and may not
3-10 be diverted, distributed, or appropriated for any purpose other
3-11 than as provided by this section. Interest earned by a
3-12 distributor's account but not yet refunded to the distributor
3-13 pursuant to Subsection (d) shall, on a monthly basis, be paid to
3-14 the comptroller [treasurer] as provided by Subsection (b) or
3-15 credited to the distributor's account.
3-16 (b) The comptroller [treasurer] is the trustee of the fund
3-17 as provided by Section 404.073, Government Code, and shall manage
3-18 the fund as provided by this section. In investing the assets of
3-19 the fund, the comptroller [treasurer] has the obligations, duties,
3-20 and powers provided for the investment of state funds by Sections
3-21 404.021 through 404.0245 [404.025], Government Code, and by the
3-22 orders of the State Depository Board. The comptroller [treasurer]
3-23 shall receive five percent of the interest earned on all assets of
3-24 the fund as compensation for serving as trustee of the fund.
3-25 (c) A distributor who orders stamps [or requests a meter
3-26 setting] from the comptroller [state treasurer] under this chapter
3-27 without advance payment shall contribute to an account maintained
3-28 in the distributor's name in the fund money in the amount of each
3-29 allowance [discount] to which the distributor is entitled under
3-30 Section 154.052 [of this code]. When the money in the
3-31 distributor's account equals 20 percent of the designated amount of
3-32 stamps [and meter setting] requested by the distributor and
3-33 approved by the comptroller [treasurer] to be purchased in any one
3-34 month, the distributor's interest in the fund becomes vested.
3-35 (e) Until a distributor who orders stamps [or requests a
3-36 meter setting] without advance payment acquires a vested interest
3-37 in the fund, the comptroller [treasurer] may require the
3-38 distributor to post with the comptroller [treasurer] an irrevocable
3-39 letter of credit drawn in the form and amount specified by the
3-40 comptroller [treasurer] to secure the payment of cigarette taxes by
3-41 that distributor. The comptroller [treasurer] may not ship stamps
3-42 to [or set a meter for] a distributor not having a vested interest
3-43 in the fund without advance payment until the distributor posts the
3-44 required letter of credit.
3-45 (f) In addition to any other requirement under this section,
3-46 the comptroller [treasurer] as a condition for shipping stamps [or
3-47 setting a meter] without advance payment may:
3-48 (1) require a fiscal-year-end financial statement,
3-49 including a balance sheet and income statement verifiable as to its
3-50 accuracy or other financial information acceptable to the
3-51 comptroller [treasurer] and verifiable as to its accuracy;
3-52 (2) require indemnification from each officer,
3-53 director, and stockholder owning 10 percent or more of outstanding
3-54 stock, if the distributor is a corporation, from each partner, if
3-55 the distributor is a partnership, from each member or owner of a
3-56 joint venture or syndication, and from the owner of a sole
3-57 proprietorship;
3-58 (3) require the distributor to obtain and provide the
3-59 comptroller [treasurer] with a credit report from a credit
3-60 reporting agency acceptable to the comptroller [treasurer];
3-61 (4) require a distributor to increase the balance in
3-62 its account in the fund;
3-63 (5) require a distributor to post a letter of credit;
3-64 (6) reduce a distributor's credit time or amount; or
3-65 (7) take any other reasonable and necessary action to
3-66 protect the state treasury from loss due to the nonpayment of
3-67 cigarette taxes.
3-68 (g) If a distributor who has an account in the fund fails to
3-69 pay in full a tax imposed by this chapter by the due date, the
4-1 comptroller [treasurer], without prior notice to the distributor or
4-2 any other preliminary procedure, may seize any unaffixed stamps and
4-3 any stamped cigarette packages, up to and including the full amount
4-4 of unpaid tax. If the proceeds from the seizure do not satisfy the
4-5 total tax deficiency or the comptroller [treasurer] does not seize
4-6 any unaffixed stamps or stamped cigarette packages, the comptroller
4-7 [treasurer] may withdraw immediately from the fund an amount equal
4-8 to the amount of unpaid taxes due. The comptroller [treasurer]
4-9 shall first withdraw the amount from the account of the defaulting
4-10 distributor. The comptroller [treasurer] shall use the
4-11 comptroller's [treasurer's] best efforts to collect the tax due
4-12 from the defaulting distributor before withdrawing money from the
4-13 other accounts in the fund to satisfy the tax liability. If that
4-14 distributor's account does not contain sufficient money to satisfy
4-15 the tax liability in full, the comptroller [treasurer] shall
4-16 withdraw the additional amount necessary to satisfy that liability
4-17 from the other accounts in the fund in proportion to the balance of
4-18 each account, except that the withdrawal from any other
4-19 distributor's account in the fund is limited to an amount not
4-20 greater than 50 percent of the designated amount of stamps [and
4-21 meter settings] requested by the distributor under Subsection (c)
4-22 or of the amount required by the comptroller [treasurer] under
4-23 Subsection (f)(4). Not later than the fifth day after the date of
4-24 a withdrawal, the comptroller [treasurer] shall notify each
4-25 distributor of the withdrawal from its account and the amount
4-26 withdrawn. If as a result of a withdrawal made under this
4-27 subsection a distributor's balance in its account is reduced to an
4-28 amount less than the minimum required under this section, the
4-29 distributor's interest in the fund is no longer vested, and the
4-30 comptroller [treasurer] may discontinue refunds to the distributor
4-31 under Subsection (d) until the distributor again acquires a vested
4-32 interest in the fund. The comptroller [treasurer] may require a
4-33 distributor whose interest in the fund is no longer vested to post
4-34 an irrevocable letter of credit with the comptroller [treasurer] to
4-35 secure the payment of cigarette taxes by the distributor. To
4-36 protect the fund, each distributor having an account in the fund
4-37 must indemnify the fund against any amount withdrawn from the fund
4-38 under this subsection because of the failure of the distributor to
4-39 pay in full a tax imposed by this chapter by the due date.
4-40 (h) If distributor accounts, other than a defaulting
4-41 distributor account, are drawn pursuant to Subsection (g) [of this
4-42 section], each affected, nondefaulting distributor shall have a
4-43 claim against the defaulting distributor for the amount so drawn.
4-44 The comptroller [treasurer] is hereby appointed trustee, agent, and
4-45 assignee of each affected, nondefaulting distributor for purposes
4-46 of seeking recovery of the amount so drawn. The comptroller
4-47 [treasurer] shall have the sole judgment and discretion in deciding
4-48 whether or not to pursue such a claim and shall have discretion to
4-49 handle any such claim on any basis that in the opinion of the
4-50 comptroller [treasurer] is in the best interest of the fund. The
4-51 comptroller [treasurer] is released from any liability related to
4-52 the handling of the claims described in this section except for
4-53 intentional or wilful misconduct.
4-54 (i) A distributor or person authorized to act on behalf of a
4-55 distributor may notify the comptroller [treasurer] in writing that
4-56 the distributor no longer desires to have stamps shipped [or a
4-57 meter set] without advance payment, and may request that the money
4-58 in the distributor's account in the fund be paid to the distributor
4-59 or the distributor's heirs or assigns. The comptroller [treasurer]
4-60 shall pay the money in the distributor's account as requested at
4-61 the end of the next quarter after all outstanding taxes owed to the
4-62 state by the distributor have been paid.
4-63 (j) Under no circumstances shall the comptroller [treasurer]
4-64 return to any distributor an amount greater than the balance in the
4-65 distributor's account within the cigarette tax recovery trust fund
4-66 less any sums drawn pursuant to Subsection (g) [of this section].
4-67 The State of Texas' liability to any distributor pursuant to this
4-68 section is expressly limited to the sums on deposit in the
4-69 distributor's account at the time the request for return of funds
5-1 is made.
5-2 (k) The comptroller [treasurer] may adopt and enforce rules
5-3 necessary to carry out this section.
5-4 (n) The comptroller [treasurer] shall regularly distribute
5-5 financial information regarding the performance of the fund to
5-6 participating distributors on a regular basis. On the written
5-7 request of a participating distributor, the comptroller [treasurer]
5-8 shall provide the distributor with the name and address of each
5-9 distributor participating in the fund, the percentage of the total
5-10 fund represented by each distributor's account, and the total
5-11 amount of money in the fund.
5-12 (o) In lieu of participation in the cigarette tax recovery
5-13 trust fund to secure payment for stamps [or meter settings] and in
5-14 lieu of advance payment for stamps [or meter settings], a
5-15 distributor may pledge to the comptroller [treasurer] sufficient
5-16 collateral to secure payment for stamps [or meter settings]. Such
5-17 pledge shall be evidenced by a pledge agreement in a form
5-18 promulgated by the comptroller [treasurer], and such collateral
5-19 shall consist of certificates of deposit, treasury notes, treasury
5-20 bills, or other similar types of collateral acceptable to the
5-21 comptroller [treasurer] and held in a separate trust fund
5-22 established in the Texas Treasury Safekeeping Trust Company. All
5-23 interest earned on such collateral shall belong to the distributor.
5-24 The comptroller [treasurer] may require the pledge of additional
5-25 collateral in the event the comptroller [treasurer] determines that
5-26 the fair market value of the pledged collateral is less than the
5-27 amount due the comptroller [treasurer] for stamps [or meter
5-28 settings]. On the written request of the distributor, the
5-29 comptroller [treasurer] shall release collateral from the pledge
5-30 agreement or allow the substitution of collateral subject to the
5-31 pledge agreement if after such release or substitution the fair
5-32 market value of the collateral subject to the pledge will be equal
5-33 to or greater than the amount due the comptroller [treasurer] for
5-34 stamps [or meter settings]. If a distributor fails to pay tax in
5-35 full when due, the comptroller [treasurer] may, if the distributor
5-36 does not pay such past due tax and any penalty related thereto
5-37 within three days after receipt of written notice of such failure
5-38 from the comptroller [treasurer], sell or dispose of the collateral
5-39 and apply the proceeds to the payment of taxes, interest,
5-40 penalties, and costs due to the comptroller [treasurer] by the
5-41 distributor, with any remaining proceeds being refunded to the
5-42 distributor.
5-43 SECTION 5. Subsections (b), (c), and (d), Section 154.405,
5-44 Tax Code, are amended to read as follows:
5-45 (b) The comptroller [treasurer] shall give the notice by
5-46 certified mail, return receipt requested, not later than the 15th
5-47 day after the date of seizure and include with the notice an
5-48 inventory of the property seized and a statement that the owner of
5-49 property seized is entitled to [of the date, time, and place of] a
5-50 hearing on the seizure. Service by mail is complete when the
5-51 notice is received, as evidenced by return receipt from the U.S.
5-52 Postal Service.
5-53 (c) After providing the notice and a hearing, if a hearing
5-54 is requested under Subsection (b), the comptroller [treasurer] may
5-55 order the forfeiture to the state of any property seized under this
5-56 chapter or the proceeds of the sale of any cigarettes seized under
5-57 this chapter if the property was used, controlled, possessed, or
5-58 concealed for the purpose of violating any provision of this
5-59 chapter.
5-60 (d) The comptroller [treasurer] shall hold property or
5-61 proceeds forfeited under this section in escrow until the
5-62 comptroller's [treasurer's] determination is final and the period
5-63 for filing a petition for judicial review has expired.
5-64 SECTION 6. Section 154.415, Tax Code, is amended to read as
5-65 follows:
5-66 Sec. 154.415. DONATIONS [ADDITIONAL ENFORCEMENT POWERS].
5-67 [(a) The treasurer has all of the rights and powers granted the
5-68 comptroller in Chapters 111 and 113 of this code with respect to
5-69 the tax imposed by this chapter. Those rights and powers are in
6-1 addition to those granted the treasurer in this chapter.]
6-2 [(b)] The comptroller [treasurer] may accept gifts, grants,
6-3 and donations for the administration and enforcement of this
6-4 chapter.
6-5 SECTION 7. Section 155.001, Tax Code, is amended to read as
6-6 follows:
6-7 Sec. 155.001. DEFINITIONS. In this chapter:
6-8 (1) "Bonded agent" means a person in this state who is
6-9 an agent of a person outside this state and receives cigars and
6-10 tobacco products in interstate commerce and stores the cigars and
6-11 tobacco products for distribution or delivery to distributors under
6-12 orders from the person outside this state.
6-13 (2) "Cigar" means a roll of fermented tobacco that is
6-14 wrapped in tobacco and the main stream of smoke from which produces
6-15 an alkaline reaction to litmus paper.
6-16 (3) "Common carrier" means a motor carrier registered
6-17 under Chapter 643, Transportation Code [Article 6675c, Revised
6-18 Statutes], or a motor carrier operating under a certificate issued
6-19 by the Interstate Commerce Commission or a successor agency to the
6-20 Interstate Commerce Commission.
6-21 (4) "Consumer" means a person who possesses tobacco
6-22 products for personal consumption.
6-23 (5) "Distributor" means a person who:
6-24 (A) receives tobacco products for the purpose of
6-25 making a first sale in this state from a manufacturer outside the
6-26 state or within the state or otherwise brings or causes to be
6-27 brought into this state tobacco products for sale, use, or
6-28 consumption; [or]
6-29 (B) manufactures or produces tobacco products;
6-30 or
6-31 (C) is an importer or import broker.
6-32 (6) "Export warehouse" means a person in this state
6-33 who receives tobacco products from manufacturers and stores the
6-34 tobacco products for the purpose of making sales to authorized
6-35 persons for resale, use, or consumption outside the United States.
6-36 (7) "First sale" means, except as otherwise provided
6-37 by this chapter:
6-38 (A) the first transfer of possession in
6-39 connection with a purchase, sale, or any exchange for value of
6-40 tobacco products in intrastate commerce;
6-41 (B) the first use or consumption of tobacco
6-42 products in this state; or
6-43 (C) the loss of tobacco products in this state
6-44 whether through negligence, theft, or other unaccountable loss.
6-45 (8) "Importer" or "Import broker" means a person who
6-46 ships, transports, or imports into this state tobacco products
6-47 manufactured or produced outside the United States for the purpose
6-48 of making a first sale in this state.
6-49 (9) [(7)] "Manufacturer" means a person who
6-50 manufactures or produces tobacco products and sells tobacco
6-51 products to a distributor.
6-52 (10) [(8)] "Manufacturer's representative" means a
6-53 person employed by a manufacturer to sell or distribute the
6-54 manufacturer's tobacco products.
6-55 (11) [(9)] "Permit holder" means a bonded agent,
6-56 distributor, wholesaler, or retailer required to obtain a permit
6-57 under Section 155.041.
6-58 (12) [(10)] "Place of business" means:
6-59 (A) a commercial business location [place] where
6-60 tobacco products are sold;
6-61 (B) a commercial business location [place] where
6-62 tobacco products are kept for sale or consumption or otherwise
6-63 stored; or
6-64 (C) a vehicle from which tobacco products are
6-65 sold.
6-66 (13) [(11)] "Retailer" means a person who engages in
6-67 the practice of selling tobacco products to consumers and includes
6-68 the owner of a coin-operated vending machine.
6-69 (14) [(12)] "Tobacco product" means:
7-1 (A) a cigar;
7-2 (B) smoking tobacco, including granulated,
7-3 plug-cut, crimp-cut, ready-rubbed, and any form of tobacco suitable
7-4 for smoking in a pipe or as a cigarette;
7-5 (C) chewing tobacco, including Cavendish, Twist,
7-6 plug, scrap, and any kind of tobacco suitable for chewing;
7-7 (D) snuff or other preparations of pulverized
7-8 tobacco; or
7-9 (E) an article or product that is made of
7-10 tobacco or a tobacco substitute and that is not a cigarette.
7-11 (15) [(13)] "Wholesaler" means a person, including a
7-12 manufacturer's representative, who sells or distributes tobacco
7-13 products in this state for resale but who is not a distributor.
7-14 SECTION 8. Section 155.101, Tax Code, is amended to read as
7-15 follows:
7-16 Sec. 155.101. RECORD OF PURCHASE OR RECEIPT. Each
7-17 distributor, wholesaler, bonded agent, and export warehouse shall
7-18 keep records at each place of business of all tobacco products
7-19 purchased or received. Each retailer shall keep records at a
7-20 single location, which the retailer shall designate as its
7-21 principal place of business in the state, of all tobacco products
7-22 purchased and received. These records must include the following,
7-23 except that Subdivision (7) applies to distributors only:
7-24 (1) the name and address of the shipper or carrier and
7-25 the mode of transportation;
7-26 (2) all shipping records or copies of records,
7-27 including invoices, bills of lading, waybills, freight bills, and
7-28 express receipts;
7-29 (3) the date and the name of the place of origin of
7-30 the tobacco product shipment;
7-31 (4) the date and the name of the place of arrival of
7-32 the tobacco product shipment;
7-33 (5) a statement of the number, kind, and price paid
7-34 for the tobacco products;
7-35 (6) the name, address, permit number, and tax
7-36 identification number of the seller; [and]
7-37 (7) the manufacturer's list price for the tobacco
7-38 products; and
7-39 (8) any other information required by rules of the
7-40 comptroller [treasurer].
7-41 SECTION 9. Subsection (b), Section 155.102, Tax Code, is
7-42 amended to read as follows:
7-43 (b) The records for each sale, distribution, exchange, or
7-44 use of tobacco products must show:
7-45 (1) the purchaser's name and address, permit number,
7-46 or tax identification number;
7-47 (2) the method of delivery and the name of the common
7-48 carrier or other person delivering the tobacco products;
7-49 (3) the date, amount, and type of tobacco products
7-50 sold, distributed, exchanged, or used;
7-51 (4) the price received for the tobacco products; [and]
7-52 (5) the number and kind of tobacco products on which
7-53 the tax has been paid; and
7-54 (6) for sales from a manufacturer to a distributor,
7-55 the manufacturer's list price for the tobacco products.
7-56 SECTION 10. Section 155.111, Tax Code, is amended to read as
7-57 follows:
7-58 Sec. 155.111. DISTRIBUTOR'S REPORT. (a) A distributor
7-59 shall file with the comptroller [treasurer] on or before the 30th
7-60 day of each month, a report for the preceding month.
7-61 (b) The report must show:
7-62 (1) the date the report was made;
7-63 (2) the distributor's name and address;
7-64 (3) the month the report covers;
7-65 (4) the amount of tobacco products purchased,
7-66 received, and acquired;
7-67 (5) the manufacturer's list price of tobacco products
7-68 purchased, received, and acquired;
7-69 (6) the amount of tobacco products sold, distributed,
8-1 used, lost, or otherwise disposed of;
8-2 (7) [(6)] the amount of tobacco products on hand at
8-3 the beginning and the end of the month; and
8-4 (8) [(7)] any other information the comptroller
8-5 [treasurer] requires relating to tobacco products and to the
8-6 payment of taxes due on them.
8-7 (c) The comptroller [treasurer] shall prescribe the form and
8-8 content of the report.
8-9 SECTION 11. Section 155.141, Tax Code, is amended to read as
8-10 follows:
8-11 Sec. 155.141. DONATIONS [ENFORCEMENT POWERS]. [(a) The
8-12 treasurer has all of the rights and powers granted the comptroller
8-13 in Chapters 111 and 113 of this code with respect to the tax
8-14 imposed by this chapter. Those rights and powers are in addition
8-15 to those granted the treasurer in this chapter.]
8-16 [(b)] The comptroller [treasurer] may accept gifts, grants,
8-17 and donations for the administration and enforcement of this
8-18 chapter.
8-19 SECTION 12. Subsections (b), (c), and (d), Section 155.145,
8-20 Tax Code, are amended to read as follows:
8-21 (b) The comptroller [treasurer] shall give the notice by
8-22 certified mail, return receipt requested, not later than the 15th
8-23 day after the date of seizure and shall include with the notice an
8-24 inventory of the property seized and a statement that the owner of
8-25 property seized is entitled to [of the date, time, and place of] a
8-26 hearing on the seizure. Service by mail is complete when the
8-27 notice is received, as evidenced by return receipt from the U.S.
8-28 Postal Service.
8-29 (c) After providing the notice and a hearing, if a hearing
8-30 is requested under Subsection (b), the comptroller [treasurer] may
8-31 order the forfeiture to the state of any property seized under this
8-32 chapter or the proceeds of the sale of any tobacco products seized
8-33 under this chapter if the comptroller [treasurer] finds that the
8-34 property was used, controlled, possessed, or concealed for the
8-35 purpose of violating any provision of this chapter.
8-36 (d) The comptroller [treasurer] shall hold property or
8-37 proceeds forfeited under this section in escrow until the
8-38 comptroller's [treasurer's] determination is final and the period
8-39 for filing a petition for judicial review has expired.
8-40 SECTION 13. The following provisions of the Tax Code are
8-41 repealed:
8-42 (1) Section 111.1041;
8-43 (2) Section 154.048; and
8-44 (3) Section 154.049.
8-45 SECTION 14. This Act takes effect October 1, 1997.
8-46 SECTION 15. The importance of this legislation and the
8-47 crowded condition of the calendars in both houses create an
8-48 emergency and an imperative public necessity that the
8-49 constitutional rule requiring bills to be read on three several
8-50 days in each house be suspended, and this rule is hereby suspended.
8-51 * * * * *