By Armbrister S.B. No. 937 77R5492 DAK-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the cigarette tax. 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 by 1-5 adding Section 154.0401 to read as follows: 1-6 Sec. 154.0401. APPLICABILITY. (a) Except as provided by 1-7 Subsection (b), this subchapter does not apply to cigarettes: 1-8 (1) imported or brought into the United States for 1-9 personal use; or 1-10 (2) sold or intended to be sold as duty-free 1-11 merchandise by a duty-free sales enterprise in accordance with 19 1-12 U.S.C. Section 1555(b), as amended, and any implementing 1-13 regulations. 1-14 (b) This subchapter applies to cigarettes brought back into 1-15 the customs territory for resale within the customs territory. 1-16 SECTION 2. Section 154.042, Tax Code, is amended by adding 1-17 Subsection (e) to read as follows: 1-18 (e) On or before the 15th business day of each month, each 1-19 distributor shall file with the comptroller, for all cigarettes 1-20 imported into the United States to which the distributor has 1-21 affixed the tax stamp in the preceding month, copies of the customs 1-22 certificates for the cigarettes required by 19 U.S.C. Section 1-23 1681a(c), as amended. 1-24 SECTION 3. Section 154.053, Tax Code, is amended by adding 2-1 Subsection (c) to read as follows: 2-2 (c) The comptroller shall design and furnish stamps in a 2-3 manner that permits identification of the person that affixed the 2-4 stamp to the particular package of cigarettes by means of a serial 2-5 number or other mark on the stamp. The comptroller shall maintain 2-6 for at least three years the information identifying the person 2-7 that affixed the stamp to each package of cigarettes. The 2-8 information is not confidential or exempt from disclosure to the 2-9 public. 2-10 SECTION 4. Subchapter H, Chapter 154, Tax Code, is amended by 2-11 adding Section 154.402 to read as follows: 2-12 Sec. 154.402. SEIZURE AND DESTRUCTION OF CERTAIN CONTRABAND 2-13 CIGARETTES. (a) This section applies only to cigarettes: 2-14 (1) that do not comply with all applicable 2-15 requirements imposed by or under federal law and implementing 2-16 regulations; or 2-17 (2) to which stamps may not be affixed under Section 2-18 154.0415. 2-19 (b) A person may not: 2-20 (1) sell or distribute in this state cigarettes to 2-21 which this section applies; 2-22 (2) acquire, hold, own, possess, or transport, for 2-23 sale or distribution in this state, cigarettes to which this 2-24 section applies; or 2-25 (3) import, or cause to be imported, into this state 2-26 for sale or distribution in this state cigarettes to which this 2-27 section applies. 3-1 (c) Cigarettes that are acquired, held, owned, possessed, 3-2 transported, imported into, or sold or distributed in this state in 3-3 violation of Subsection (b) are subject to seizure and forfeiture 3-4 under Sections 154.403 and 154.405, without regard to whether the 3-5 violation was knowing or otherwise. 3-6 (d) Any cigarettes seized and forfeited under this section 3-7 shall be destroyed. 3-8 SECTION 5. Subchapter H, Chapter 154, Tax Code, is amended by 3-9 adding Section 154.416 to read as follows: 3-10 Sec. 154.416. PRIVATE RIGHT OF ACTION. (a) A person who 3-11 sustains economic or commercial injury as a result of a violation 3-12 of Section 154.0415, 154.042(e), or 154.402 may bring an action 3-13 for: 3-14 (1) appropriate injunctive or other equitable relief; 3-15 (2) actual damages, if any, sustained as a result of 3-16 the violation; and 3-17 (3) as determined by the court: 3-18 (A) interest on damages beginning on the date 3-19 the complaint is filed; 3-20 (B) costs; and 3-21 (C) reasonable attorney's fees. 3-22 (b) If the trier of fact finds that the violation is 3-23 egregious, the court may increase the judgment to an amount equal 3-24 to or less than three times the amount of actual damages. 3-25 (c) The remedy provided by this section is in addition to 3-26 any other remedy provided by law. 3-27 SECTION 6. (a) This Act takes effect September 1, 2001. 4-1 (b) Section 154.416, Tax Code, as added by this Act, applies 4-2 only to a violation to which that section applies that occurs on or 4-3 after the effective date of this Act. A violation that occurs 4-4 before the effective date of this Act is governed by the law in 4-5 effect on the date the violation occurs, and that law is continued 4-6 in effect for that purpose.