By Kuempel H.B. No. 3679 76R8565 DAK-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to circumstances in which cigarettes may not be affixed 1-3 with stamps or sold; providing penalties. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter C, Chapter 154, Tax Code, is amended 1-6 by adding Section 154.0415 to read as follows: 1-7 Sec. 154.0415. CIGARETTES TO WHICH STAMPS MAY NOT BE 1-8 AFFIXED. A person may not affix a stamp to a package of cigarettes 1-9 if the package: 1-10 (1) does not comply with the Cigarette Labeling and 1-11 Advertising Act (15 U.S.C. Section 1331 et seq.) for the placement 1-12 of labels, warnings, or any other information for a package of 1-13 cigarettes to be sold within the United States; 1-14 (2) is labeled "For Export Only," "U.S. Tax Exempt," 1-15 "For Use Outside U.S.," or other wording indicating that the 1-16 manufacturer did not intend that the product be sold in the United 1-17 States; 1-18 (3) has been altered by adding or deleting wording, 1-19 labels, or warnings described in Subdivision (1) or (2); 1-20 (4) has been imported into the United States after 1-21 January 1, 2000, in violation of 26 U.S.C. Section 5754; or 1-22 (5) in any way violates federal trademark or copyright 1-23 laws. 1-24 SECTION 2. Section 154.4045(b), Tax Code, is amended to read 2-1 as follows: 2-2 (b) If the seized cigarettes are in a salable condition, the 2-3 comptroller may: 2-4 (1) sell the cigarettes, return the cigarettes to the 2-5 manufacturer for credit, or destroy or dispose of the cigarettes; 2-6 or 2-7 (2) if the seized cigarettes are in packages described 2-8 by Section 154.0415 or stamped in violation of that section, the 2-9 comptroller may not sell the cigarettes, but may destroy or dispose 2-10 of the cigarettes or return the cigarettes, solely for the purpose 2-11 of export, to the manufacturer for credit. 2-12 SECTION 3. Subchapter H, Chapter 154, Tax Code, is amended 2-13 by adding Section 154.4095 to read as follows: 2-14 Sec. 154.4095. DECEPTIVE TRADE PRACTICE. Selling a package 2-15 of cigarettes described by Section 154.0415, with or without a 2-16 stamp, is a deceptive trade practice for the purpose of Subchapter 2-17 E, Chapter 17, Business & Commerce Code. 2-18 SECTION 4. Subchapter I, Chapter 154, Tax Code, is amended 2-19 by adding Section 154.5025 to read as follows: 2-20 Sec. 154.5025. AFFIXING STAMPS TO CERTAIN CIGARETTES. A 2-21 person commits an offense if the person affixes stamps to 2-22 cigarettes in violation of Section 154.0415. 2-23 SECTION 5. The importance of this legislation and the 2-24 crowded condition of the calendars in both houses create an 2-25 emergency and an imperative public necessity that the 2-26 constitutional rule requiring bills to be read on three several 2-27 days in each house be suspended, and this rule is hereby suspended, 3-1 and that this Act take effect and be in force from and after its 3-2 passage, and it is so enacted.