By:  Armbrister                                       S.B. No. 1122
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to circumstances in which cigarettes may not be affixed
 1-2     with stamps or sold; providing penalties.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter C, Chapter 154, Tax Code, is amended
 1-5     by adding Section 154.0415 to read as follows:
 1-6           Sec. 154.0415.  CIGARETTES TO WHICH STAMPS MAY NOT BE
 1-7     AFFIXED.  A person may not affix a stamp to a package of cigarettes
 1-8     if the package:
 1-9                 (1)  does not comply with the Cigarette Labeling and
1-10     Advertising Act (15 U.S.C. Section 1331 et seq.) for the placement
1-11     of labels, warnings, or any other information for a package of
1-12     cigarettes to be sold within the United States;
1-13                 (2)  is labeled "For Export Only," "U.S. Tax Exempt,"
1-14     "For Use Outside U.S.," or other wording indicating that the
1-15     manufacturer did not intend that the product be sold in the United
1-16     States;
1-17                 (3)  has been altered by adding or deleting wording,
1-18     labels, or warnings described in Subdivision (1) or (2);
1-19                 (4)  has been imported into the United States after
1-20     January 1, 2000, in violation of 26 U.S.C. Section 5754; or
1-21                 (5)  in any way violates federal trademark or copyright
1-22     laws.
1-23           SECTION 2.  Subsection (b), Section 154.4045, Tax Code, is
1-24     amended to read as follows:
 2-1           (b)  If the seized cigarettes are in a salable condition, the
 2-2     comptroller may:
 2-3                 (1)  sell the cigarettes, return the cigarettes to the
 2-4     manufacturer for credit, or destroy or dispose of the cigarettes;
 2-5     or
 2-6                 (2)  if the seized cigarettes are in packages described
 2-7     by Section 154.0415 or stamped in violation of that section, the
 2-8     comptroller may not sell the cigarettes but may destroy or dispose
 2-9     of the cigarettes or return the cigarettes, solely for the purpose
2-10     of export, to the manufacturer for credit.
2-11           SECTION 3.  Subchapter H, Chapter 154, Tax Code, is amended
2-12     by adding Section 154.4095 to read as follows:
2-13           Sec. 154.4095.  DECEPTIVE TRADE PRACTICE.  Selling a package
2-14     of cigarettes described by Section 154.0415, with or without a
2-15     stamp, is a deceptive trade practice for the purpose of Subchapter
2-16     E, Chapter 17, Business & Commerce Code.
2-17           SECTION 4.  Subchapter I, Chapter 154, Tax Code, is amended
2-18     by adding Section 154.5025 to read as follows:
2-19           Sec. 154.5025.  AFFIXING STAMPS TO CERTAIN CIGARETTES.  A
2-20     person commits an offense if the person affixes stamps to
2-21     cigarettes in violation of Section 154.0415.
2-22           SECTION 5.  The importance of this legislation and the
2-23     crowded condition of the calendars in both houses create an
2-24     emergency and an imperative public necessity that the
2-25     constitutional rule requiring bills to be read on three several
2-26     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.