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. This Act takes effect September 1, 1999. 2-23 SECTION 6. 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 3-1 days in each house be suspended, and this rule is hereby suspended, 3-2 and that this Act take effect and be in force according to its 3-3 terms, and it is so enacted. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1122 passed the Senate on April 15, 1999, by the following vote: Yeas 30, Nays 0; and that the Senate concurred in House amendments on May 28, 1999, by the following vote: Yeas 30, Nays 0. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1122 passed the House, with amendments, on May 22, 1999, by a non-record vote. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor