By Armbrister                                         S.B. No. 1122
         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.