1-1 By: Armbrister S.B. No. 1122 1-2 (In the Senate - Filed March 10, 1999; March 11, 1999, read 1-3 first time and referred to Committee on Human Services; 1-4 April 6, 1999, reported favorably by the following vote: Yeas 5, 1-5 Nays 0; April 6, 1999, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to circumstances in which cigarettes may not be affixed 1-9 with stamps or sold; providing penalties. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Subchapter C, Chapter 154, Tax Code, is amended 1-12 by adding Section 154.0415 to read as follows: 1-13 Sec. 154.0415. CIGARETTES TO WHICH STAMPS MAY NOT BE 1-14 AFFIXED. A person may not affix a stamp to a package of cigarettes 1-15 if the package: 1-16 (1) does not comply with the Cigarette Labeling and 1-17 Advertising Act (15 U.S.C. Section 1331 et seq.) for the placement 1-18 of labels, warnings, or any other information for a package of 1-19 cigarettes to be sold within the United States; 1-20 (2) is labeled "For Export Only," "U.S. Tax Exempt," 1-21 "For Use Outside U.S.," or other wording indicating that the 1-22 manufacturer did not intend that the product be sold in the United 1-23 States; 1-24 (3) has been altered by adding or deleting wording, 1-25 labels, or warnings described in Subdivision (1) or (2); 1-26 (4) has been imported into the United States after 1-27 January 1, 2000, in violation of 26 U.S.C. Section 5754; or 1-28 (5) in any way violates federal trademark or copyright 1-29 laws. 1-30 SECTION 2. Subsection (b), Section 154.4045, Tax Code, is 1-31 amended to read as follows: 1-32 (b) If the seized cigarettes are in a salable condition, the 1-33 comptroller may: 1-34 (1) sell the cigarettes, return the cigarettes to the 1-35 manufacturer for credit, or destroy or dispose of the cigarettes; 1-36 or 1-37 (2) if the seized cigarettes are in packages described 1-38 by Section 154.0415 or stamped in violation of that section, the 1-39 comptroller may not sell the cigarettes but may destroy or dispose 1-40 of the cigarettes or return the cigarettes, solely for the purpose 1-41 of export, to the manufacturer for credit. 1-42 SECTION 3. Subchapter H, Chapter 154, Tax Code, is amended 1-43 by adding Section 154.4095 to read as follows: 1-44 Sec. 154.4095. DECEPTIVE TRADE PRACTICE. Selling a package 1-45 of cigarettes described by Section 154.0415, with or without a 1-46 stamp, is a deceptive trade practice for the purpose of Subchapter 1-47 E, Chapter 17, Business & Commerce Code. 1-48 SECTION 4. Subchapter I, Chapter 154, Tax Code, is amended 1-49 by adding Section 154.5025 to read as follows: 1-50 Sec. 154.5025. AFFIXING STAMPS TO CERTAIN CIGARETTES. A 1-51 person commits an offense if the person affixes stamps to 1-52 cigarettes in violation of Section 154.0415. 1-53 SECTION 5. The importance of this legislation and the 1-54 crowded condition of the calendars in both houses create an 1-55 emergency and an imperative public necessity that the 1-56 constitutional rule requiring bills to be read on three several 1-57 days in each house be suspended, and this rule is hereby suspended, 1-58 and that this Act take effect and be in force from and after its 1-59 passage, and it is so enacted. 1-60 * * * * *