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.