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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation and prosecution of the offense of |
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manufacture or sale of counterfeit or gray market cigarettes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 32, Penal Code, is amended |
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by adding Section 32.235 to read as follows: |
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Sec. 32.235. MANUFACTURE OR SALE OF COUNTERFEIT OR GRAY |
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MARKET CIGARETTES. (a) In this section: |
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(1) "Cigarette" means a roll for smoking that is made |
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of tobacco or tobacco mixed with another ingredient and wrapped or |
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covered with a material other than tobacco. The term does not |
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include a cigar. |
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(2) "Counterfeit cigarette" means a cigarette in an |
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individual package of cigarettes or other container that has a: |
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(A) false manufacturing label; or |
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(B) counterfeit stamp. |
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(3) "Counterfeit cigarette paper" means a cigarette |
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paper that has a false manufacturing label or that has not been |
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printed, manufactured, or made by authority of the trademark owner. |
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(4) "Gray market cigarette" means a cigarette in a |
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package that bears any statement, label, stamp, sticker, or notice |
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indicating that the manufacturer did not intend for the cigarette |
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to be sold, distributed, or used in the United States, including a |
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label stating: |
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(A) "For Export Only"; |
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(B) "U.S. Tax Exempt"; or |
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(C) "For Use Outside U.S." |
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(5) "Gray market cigarette paper" means a cigarette |
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paper in a package that bears any statement, label, stamp, sticker, |
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or notice indicating that the manufacturer did not intend for the |
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cigarette paper to be sold, distributed, or used in the United |
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States, including a label stating: |
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(A) "For Export Only"; |
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(B) "U.S. Tax Exempt"; or |
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(C) "For Use Outside U.S." |
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(b) A person commits an offense if the person intentionally: |
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(1) manufactures, displays, advertises, distributes, |
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offers for sale, sells, or possesses with intent to sell or |
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distribute a counterfeit cigarette or counterfeit cigarette paper; |
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or |
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(2) displays, advertises, distributes, offers for |
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sale, sells, or possesses with intent to sell or distribute a gray |
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market cigarette or gray market cigarette paper. |
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(c) An offense under this section is a: |
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(1) Class C misdemeanor if the retail value of the item |
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that is the object of the offense is less than $20; |
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(2) Class B misdemeanor if the retail value of the item |
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that is the object of the offense is $20 or more but less than $500; |
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(3) Class A misdemeanor if the retail value of the item |
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that is the object of the offense is $500 or more but less than |
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$1,500; |
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(4) state jail felony if the retail value of the item |
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that is the object of the offense is $1,500 or more but less than |
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$20,000; |
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(5) felony of the third degree if the retail value of |
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the item that is the object of the offense is $20,000 or more but |
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less than $100,000; |
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(6) felony of the second degree if the retail value of |
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the item that is the object of the offense is $100,000 or more but |
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less than $200,000; or |
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(7) felony of the first degree if the retail value of |
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the item that is the object of the offense is $200,000 or more. |
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(d) For the purposes of Subsection (c), when items are the |
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subject of a violation of this section pursuant to one scheme or |
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continuing course of conduct, the conduct may be considered as one |
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offense and the retail value of the items aggregated in determining |
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the grade of offense. |
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(e) If conduct that constitutes an offense under this |
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section also constitutes an offense under any other law, the actor |
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may be prosecuted under this section, the other law, or both. |
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SECTION 2. This Act takes effect September 1, 2007. |