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A BILL TO BE ENTITLED
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AN ACT
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relating to the imposition of a tax on certain sweetened beverages |
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and ingredients used to make certain sweetened beverages and to the |
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use of the revenue for the promotion of children's health programs; |
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providing penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle E, Title 2, Tax Code, is amended by |
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adding Chapter 163 to read as follows: |
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CHAPTER 163. TAX ON SWEETENED BEVERAGES |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 163.001. DEFINITIONS. In this chapter: |
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(1) "Retailer" means a person, other than a |
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manufacturer, distributor, or wholesaler, who receives, stores, |
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mixes, compounds, or manufactures sweetened beverages and who sells |
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or otherwise distributes sweetened beverages to the ultimate |
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consumer. |
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(2) "Sweetened beverage" means a carbonated or |
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non-carbonated nonalcoholic beverage that contains natural or |
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artificial sweeteners. The term does not include: |
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(A) a beverage that: |
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(i) is sweetened only by a sweetener that |
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does not add calories to the beverage; |
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(ii) is 100 percent vegetable or fruit |
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juice by volume; |
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(iii) contains more than one-half of one |
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percent alcohol per ounce; |
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(iv) is commonly referred to as a "sports |
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drink" or "electrolyte replacement drink" and contains not more |
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than 110 milligrams of potassium and 200 milligrams of sodium per |
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eight-ounce serving; |
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(v) is intended by the manufacturer for |
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consumption by an infant and is commonly referred to as "infant |
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formula"; or |
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(vi) is intended by the manufacturer to be |
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sold and used by the ultimate consumer in domestically mixing soft |
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drinks; |
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(B) milk or milk products that do not contain |
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sweeteners that add calories to the milk or milk products; |
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(C) non-carbonated water or water without any |
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additional substances except for minerals and flavoring agents that |
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do not add calories to the water; or |
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(D) coffee or tea that does not contain |
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sweeteners that add calories to the coffee or tea. |
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(3) "Sweetened beverage powder" means a solid mixture |
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of basic ingredients used to make, mix, or compound sweetened |
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beverages. |
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(4) "Sweetened beverage syrup" means a liquid mixture |
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of basic ingredients used to make, mix, or compound sweetened |
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beverages. |
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[Sections 163.002-163.050 reserved for expansion] |
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SUBCHAPTER B. IMPOSITION AND COLLECTION OF TAX |
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Sec. 163.051. TAX IMPOSED ON SWEETENED BEVERAGES. (a) A |
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tax is imposed on the sale to a retailer of a sweetened beverage. |
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(b) A tax is imposed on the importation into this state of a |
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sweetened beverage for sale to the ultimate consumer. |
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(c) Except as provided by Subsection (d), the rate of the |
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tax imposed by this section is one cent for each 12-ounce increment |
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or fractional part of that increment of sweetened beverage. |
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(d) On January 1 of each year, the comptroller shall |
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increase the rate of the tax prescribed by Subsection (c) by a |
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percentage equal to the percentage increase in the most recent |
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annual revised Consumer Price Index for All Urban Consumers, as |
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published by the federal Bureau of Labor Statistics of the United |
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States Department of Labor. |
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Sec. 163.052. TAX IMPOSED ON SWEETENED BEVERAGE POWDER. |
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(a) A tax is imposed on the sale to a retailer of sweetened beverage |
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powder. |
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(b) A tax is imposed on the importation into this state of |
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sweetened beverage powder for sale to the ultimate consumer. |
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(c) Except as provided by Subsection (d), the rate of tax |
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imposed by this section is one cent for the greater of: |
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(1) each 12-ounce increment or fractional part of that |
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increment of sweetened beverage that may be produced from the |
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powder by following the manufacturer's directions; or |
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(2) each 12-ounce increment or fractional part of that |
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increment of sweetened beverage actually produced by the retailer, |
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as determined by the comptroller. |
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(d) On January 1 of each year, the comptroller shall |
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increase the rate of the tax prescribed by Subsection (c) by a |
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percentage equal to the percentage increase in the most recent |
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annual revised Consumer Price Index for All Urban Consumers, as |
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published by the federal Bureau of Labor Statistics of the United |
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States Department of Labor. |
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Sec. 163.053. TAX IMPOSED ON SWEETENED BEVERAGE SYRUP. (a) |
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A tax is imposed on the sale to a retailer of sweetened beverage |
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syrup in this state. |
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(b) A tax is imposed on the importation into this state of |
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sweetened beverage syrup for sale to the ultimate consumer. |
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(c) Except as provided by Subsection (d), the rate of tax |
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imposed by this section is one cent for the greater of: |
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(1) each 12-ounce increment or fractional part of that |
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increment of sweetened beverage that may be produced from the syrup |
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by following the manufacturer's directions; or |
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(2) each 12-ounce increment or fractional part of that |
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increment of sweetened beverage actually produced by the retailer, |
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as determined by the comptroller. |
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(d) On January 1 of each year, the comptroller shall |
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increase the rate of the tax prescribed by Subsection (c) by a |
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percentage equal to the percentage increase in the most recent |
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annual revised Consumer Price Index for All Urban Consumers, as |
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published by the federal Bureau of Labor Statistics of the United |
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States Department of Labor. |
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Sec. 163.054. EXEMPTION FROM TAX. The tax imposed by this |
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chapter does not apply to: |
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(1) sweetened beverages that: |
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(A) the comptroller determines are unsalable; or |
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(B) this state is prohibited from taxing under |
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federal law; or |
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(2) a sale of sweetened beverages, sweetened beverage |
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powder, or sweetened beverage syrup that occurs after a sale that is |
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taxed under this chapter. |
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Sec. 163.055. IMPACT OF TAX. The ultimate consumer or user |
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in this state bears the impact of the tax imposed by this chapter. |
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If another person pays the tax, the amount of the tax is added to the |
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price to the ultimate consumer or user. |
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Sec. 163.056. PAYMENT OF TAX. (a) The manufacturer, |
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distributor, wholesaler, or other person selling sweetened |
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beverages, sweetened beverage syrup, or sweetened beverage powder |
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in this state to a retailer or importing sweetened beverages, |
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sweetened beverage syrup, or sweetened beverage powder for sale in |
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this state to the ultimate consumer shall pay the tax imposed by |
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this chapter. |
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(b) On or before the 25th day of each month, the person |
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responsible for paying the tax shall send to the comptroller the |
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amount of tax due under this chapter for the preceding month. |
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Sec. 163.057. REPORTS. On or before the 25th day of each |
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month, the person responsible for paying the tax under this chapter |
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shall file with the comptroller a report stating: |
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(1) the volume of sweetened beverages, sweetened |
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beverage powder, and sweetened beverage syrup sold in this state to |
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retailers; |
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(2) the volume of sweetened beverages, sweetened |
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beverage powder, and sweetened beverage syrup imported into this |
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state for sale in this state to the ultimate consumer; and |
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(3) any other information required by the comptroller. |
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Sec. 163.058. RECORDS. (a) The person responsible for |
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paying the tax under this chapter shall keep a complete record of: |
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(1) the volume of sweetened beverages, sweetened |
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beverage powder, and sweetened beverage syrup sold in this state to |
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retailers; |
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(2) the volume of sweetened beverages, sweetened |
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beverage powder, and sweetened beverage syrup imported into this |
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state for sale in this state to the ultimate consumer; and |
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(3) any other information required by the comptroller. |
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(b) A record required by this section must be kept or |
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maintained for at least two years after the date the record is made. |
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[Sections 163.059-163.100 reserved for expansion] |
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SUBCHAPTER C. SALES PERMITS |
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Sec. 163.101. SALES PERMITS. (a) The comptroller shall |
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issue to an applicant who qualifies under Section 163.102 a |
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separate permit for each place of business in this state. |
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(b) The holder of a permit shall display it conspicuously in |
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the place of business to which it applies. |
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(c) A permit is valid only for the person and the place of |
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business to which it applies and is non-assignable. |
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(d) A permit issued under this chapter must be renewed |
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annually. |
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Sec. 163.102. APPLICATION FOR PERMIT. (a) A person |
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desiring to sell to a retailer in this state, or import for sale to |
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the ultimate consumer in this state, sweetened beverages, sweetened |
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beverage powder, or sweetened beverage syrup shall file with the |
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comptroller an application for a permit for each place of business. |
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(b) The application must: |
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(1) be on a form prescribed by the comptroller; |
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(2) state the name under which the applicant transacts |
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or intends to transact business; |
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(3) give the address of the place of business to which |
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the permit is to apply; |
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(4) contain any other information required by the |
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comptroller; and |
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(5) be signed by the applicant or a person authorized |
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to act on behalf of the applicant. |
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[Sections 163.103-163.150 reserved for expansion] |
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SUBCHAPTER D. PENALTIES AND OFFENSES |
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Sec. 163.151. INTEREST ON DELINQUENT TAX. A tax imposed by |
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this chapter that is delinquent draws interest as provided by |
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Section 111.060. |
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Sec. 163.152. PENALTY. (a) A person who is responsible for |
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paying the tax imposed by this chapter and who fails to file a |
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report as required by this chapter or does not pay the tax when it is |
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due forfeits to the state a penalty of 50 percent of the amount of |
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the delinquent tax. |
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(b) The minimum penalty under this section is $1. |
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Sec. 163.153. CRIMINAL PENALTY. (a) A person who violates |
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this chapter commits an offense. |
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(b) An offense under this section is a Class C misdemeanor. |
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[Sections 163.154-163.200 reserved for expansion] |
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SUBCHAPTER E. DISPOSITION OF REVENUE |
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Sec. 163.201. DISPOSITION OF REVENUE. The revenue from the |
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tax imposed by this chapter shall be deposited to the credit of the |
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children's health promotion account established under Subchapter |
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F. |
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[Sections 163.202-163.250 reserved for expansion] |
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SUBCHAPTER F. CHILDREN'S HEALTH PROMOTION ACCOUNT |
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Sec. 163.251. ACCOUNT. (a) The children's health |
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promotion account is a separate account in the general revenue |
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fund. |
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(b) The account consists of: |
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(1) the revenue from the tax imposed under this |
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chapter; |
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(2) any gifts or grants received for the purposes of |
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this subchapter; and |
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(3) interest earned on money in the account. |
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(c) The account is exempt from the application of Section |
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403.095, Government Code. |
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Sec. 163.252. USE OF ACCOUNT. (a) Money in the account may |
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be appropriated only as follows: |
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(1) 80 percent to the Texas Education Agency for the |
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purposes authorized by Subsection (b); and |
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(2) 20 percent to the Department of State Health |
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Services for the purposes authorized by Subsection (c). |
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(b) Money appropriated to the Texas Education Agency under |
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this section may be used only to: |
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(1) implement and maintain coordinated school health |
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programs, which may include enhancements to the basic school health |
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program; or |
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(2) improve the school health environment through |
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activities, which may include: |
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(A) improving or building recreational |
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facilities used for physical education and related activities at |
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public elementary and secondary schools; |
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(B) providing continuing education training for |
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physical education teachers; |
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(C) hiring qualified physical education |
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teachers; |
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(D) implementing Safe Routes to Schools |
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programs; |
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(E) improving the quality and nutrition of foods |
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served at public elementary and secondary schools; |
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(F) ensuring, at no cost, access to clean |
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drinking water throughout the school day; and |
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(G) incorporating nutrition and health into the |
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standard educational curriculum. |
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(c) Money appropriated to the Department of State Health |
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Services under this section may be used only to fund training and |
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technical assistance for the implementation and maintenance of |
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coordinated school health programs in public elementary and |
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secondary schools. |
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(d) Money appropriated under this section may be used only |
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to supplement and not to supplant current federal, state, and local |
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funding for children's health programs in public elementary and |
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secondary schools. |
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SECTION 2. Chapter 163, Tax Code, as added by this Act, |
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applies to a sweetened beverage, sweetened beverage powder, or |
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sweetened beverage syrup sold or imported on or after the effective |
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date of this Act. A sweetened beverage, sweetened beverage powder, |
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or sweetened beverage syrup sold or imported before that date is |
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governed by the law in effect when the sweetened beverage, |
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sweetened beverage powder, or sweetened beverage syrup was sold or |
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imported, and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |