84R5365 SCL-F By: Isaac H.B. No. 647 A BILL TO BE ENTITLED AN ACT relating to prohibiting the sale of nicotine products to minors; creating an offense. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The heading to Subchapter H, Chapter 161, Health and Safety Code, is amended to read as follows: SUBCHAPTER H. DISTRIBUTION OF CIGARETTES, NICOTINE PRODUCTS, OR TOBACCO PRODUCTS SECTION 2. Section 161.081, Health and Safety Code, is amended by adding Subdivision (1-a) and amending Subdivisions (3) and (4) to read as follows: (1-a) "Nicotine product" means a product that delivers to an individual nicotine by inhalation and that is not a cigarette or tobacco product. The term includes: (A) an electronic cigarette or any other device that uses a mechanical heating element, battery, or electronic circuit to deliver nicotine to the individual inhaling from the device; or (B) any substance used to fill or refill an electronic cigarette or other device described by Paragraph (A). (3) "Retail sale" means a transfer of possession from a retailer to a consumer in connection with a purchase, sale, or exchange for value of cigarettes, nicotine products, or tobacco products. (4) "Retailer" means a person who engages in the practice of selling cigarettes, nicotine products, or tobacco products to consumers and includes the owner of a coin-operated cigarette, nicotine product, or tobacco product vending machine. The term includes a retailer as that term is defined [has the meaning assigned] by Section 154.001 or 155.001, Tax Code, as applicable. SECTION 3. The heading to Section 161.082, Health and Safety Code, is amended to read as follows: Sec. 161.082. SALE OF CIGARETTES, NICOTINE PRODUCTS, OR TOBACCO PRODUCTS TO PERSONS YOUNGER THAN 18 YEARS OF AGE PROHIBITED; PROOF OF AGE REQUIRED. SECTION 4. Sections 161.082(a), (b), and (d), Health and Safety Code, are amended to read as follows: (a) A person commits an offense if the person, with criminal negligence: (1) sells, gives, or causes to be sold or given a cigarette, nicotine product, or tobacco product to someone who is younger than 18 years of age; or (2) sells, gives, or causes to be sold or given a cigarette, nicotine product, or tobacco product to another person who intends to deliver it to someone who is younger than 18 years of age. (b) If an offense under this section occurs in connection with a sale by an employee of the owner of a store in which cigarettes, nicotine products, or tobacco products are sold at retail, the employee is criminally responsible for the offense and is subject to prosecution. (d) It is a defense to prosecution under Subsection (a)(1) that the person to whom the cigarette, nicotine product, or tobacco product was sold or given presented to the defendant apparently valid proof of identification. SECTION 5. Section 161.0825(e), Health and Safety Code, is amended to read as follows: (e) It is an affirmative defense to prosecution under Section 161.082 that: (1) a transaction scan device identified a license or certificate as valid and the defendant accessed the information and relied on the results in good faith; or (2) if the defendant is the owner of a store in which cigarettes, nicotine products, or tobacco products are sold at retail, the offense under Section 161.082 occurs in connection with a sale by an employee of the owner, and the owner had provided the employee with: (A) a transaction scan device in working condition; and (B) adequate training in the use of the transaction scan device. SECTION 6. The heading to Section 161.083, Health and Safety Code, is amended to read as follows: Sec. 161.083. SALE OF CIGARETTES, NICOTINE PRODUCTS, OR TOBACCO PRODUCTS TO PERSONS YOUNGER THAN 27 YEARS OF AGE. SECTION 7. Section 161.083, Health and Safety Code, is amended by adding Subsection (a-1) and amending Subsections (b) and (c) to read as follows: (a-1) A person may not sell, give, or cause to be sold or given a nicotine product to someone who is younger than 27 years of age unless the person to whom the nicotine product was sold or given presents an apparently valid proof of identification. (b) A retailer shall adequately supervise and train the retailer's agents and employees to prevent a violation of Subsections [Subsection] (a) and (a-1). (c) A proof of identification described by Section 161.082(e) satisfies the requirements of Subsections [Subsection] (a) and (a-1). SECTION 8. Sections 161.084(a), (b), and (d), Health and Safety Code, are amended to read as follows: (a) Each person who sells cigarettes, nicotine products, or tobacco products at retail or by vending machine shall post a sign in a location that is conspicuous to all employees and customers and that is close to the place at which the cigarettes, nicotine products, or tobacco products may be purchased. (b) The sign must include the statement: PURCHASING OR ATTEMPTING TO PURCHASE NICOTINE PRODUCTS OR TOBACCO PRODUCTS BY A MINOR UNDER 18 YEARS OF AGE IS PROHIBITED BY LAW. SALE OR PROVISION OF NICOTINE PRODUCTS OR TOBACCO PRODUCTS TO A MINOR UNDER 18 YEARS OF AGE IS PROHIBITED BY LAW. UPON CONVICTION, A CLASS C MISDEMEANOR, INCLUDING A FINE OF UP TO $500, MAY BE IMPOSED. VIOLATIONS MAY BE REPORTED TO THE TEXAS COMPTROLLER'S OFFICE BY CALLING (insert toll-free telephone number). PREGNANT WOMEN SHOULD NOT SMOKE. SMOKERS ARE MORE LIKELY TO HAVE BABIES WHO ARE BORN PREMATURE OR WITH LOW BIRTH WEIGHT. (d) The comptroller on request shall provide the sign without charge to any person who sells cigarettes, nicotine products, or tobacco products. The comptroller may provide the sign without charge to distributors of cigarettes, nicotine products, or tobacco products or wholesale dealers of cigarettes, nicotine products, or tobacco products in this state for distribution to persons who sell cigarettes, nicotine products, or tobacco products. A distributor or wholesale dealer may not charge for distributing a sign under this subsection. SECTION 9. Sections 161.085(a) and (b), Health and Safety Code, are amended to read as follows: (a) Each retailer shall notify each individual employed by that retailer who is to be engaged in retail sales of cigarettes, nicotine products, or tobacco products that state law: (1) prohibits the sale or distribution of cigarettes, nicotine products, or tobacco products to any person who is younger than 18 years of age as provided by Section 161.082 and that a violation of that section is a Class C misdemeanor; and (2) requires each person who sells cigarettes, nicotine products, or tobacco products at retail or by vending machine to post a warning notice as provided by Section 161.084, requires each employee to ensure that the appropriate sign is always properly displayed while that employee is exercising the employee's duties, and provides that a violation of Section 161.084 is a Class C misdemeanor. (b) The notice required by Subsection (a) must be provided within 72 hours of the date an individual begins to engage in retail sales of nicotine or tobacco products. The individual shall signify that the individual has received the notice required by Subsection (a) by signing a form stating that the law has been fully explained, that the individual understands the law, and that the individual, as a condition of employment, agrees to comply with the law. SECTION 10. Section 161.086(a), Health and Safety Code, is amended to read as follows: (a) Except as provided by Subsection (b), a retailer or other person may not: (1) offer cigarettes, nicotine products, or tobacco products for sale in a manner that permits a customer direct access to the cigarettes, nicotine products, or tobacco products; or (2) install or maintain a vending machine containing cigarettes, nicotine products, or tobacco products. SECTION 11. The heading to Section 161.087, Health and Safety Code, is amended to read as follows: Sec. 161.087. DISTRIBUTION OF CIGARETTES, NICOTINE PRODUCTS, OR TOBACCO PRODUCTS. SECTION 12. Sections 161.087(a) and (b), Health and Safety Code, are amended to read as follows: (a) A person may not distribute to persons younger than 18 years of age: (1) a free sample of a cigarette, nicotine product, or tobacco product; or (2) a coupon or other item that the recipient may use to receive a free or discounted cigarette, nicotine product, or tobacco product or a sample cigarette, nicotine product, or tobacco product. (b) Except as provided by Subsection (c), a person, including a permit holder, may not accept or redeem, offer to accept or redeem, or hire a person to accept or redeem a coupon or other item that the recipient may use to receive a free or discounted cigarette, nicotine product, or tobacco product or a sample cigarette, nicotine product, or tobacco product if the recipient is younger than 18 years of age. A coupon or other item that such a recipient may use to receive a free or discounted cigarette, nicotine product, or tobacco product or a sample cigarette, nicotine product, or tobacco product may not be redeemable through mail or courier delivery. SECTION 13. Sections 161.088(b) and (d), Health and Safety Code, are amended to read as follows: (b) The comptroller may make block grants to counties and municipalities to be used by local law enforcement agencies to enforce this subchapter in a manner that can reasonably be expected to reduce the extent to which cigarettes, nicotine products, and tobacco products are sold or distributed to persons who are younger than 18 years of age. At least annually, random unannounced inspections shall be conducted at various locations where cigarettes, nicotine products, and tobacco products are sold or distributed to ensure compliance with this subchapter. The comptroller shall rely, to the fullest extent possible, on local law enforcement agencies to enforce this subchapter. (d) The use of a person younger than 18 years of age to act as a minor decoy to test compliance with this subchapter shall be conducted in a fashion that promotes fairness. A person may be enlisted by the comptroller or a local law enforcement agency to act as a minor decoy only if the following requirements are met: (1) written parental consent is obtained for the use of a person younger than 18 years of age to act as a minor decoy to test compliance with this subchapter; (2) at the time of the inspection, the minor decoy is younger than 17 years of age; (3) the minor decoy has an appearance that would cause a reasonably prudent seller of cigarettes, nicotine products, or tobacco products to request identification and proof of age; (4) the minor decoy carries either the minor's own identification showing the minor's correct date of birth or carries no identification, and a minor decoy who carries identification presents it on request to any seller of cigarettes, nicotine products, or tobacco products; and (5) the minor decoy answers truthfully any questions about the minor's age. SECTION 14. (a) The change in law made by this Act applies only to the sale or distribution of nicotine products occurring on or after October 1, 2015. The sale or distribution of nicotine products occurring before October 1, 2015, is governed by the law in effect immediately before that date, and that law is continued in effect for that purpose. (b) Section 161.082(a), Health and Safety Code, as amended by this Act, applies only to an offense committed on or after October 1, 2015. An offense committed before that date is governed by the law in effect on the date the offense was committed, and the former law is continued in effect for that purpose. For purposes of this subsection, an offense was committed before October 1, 2015, if any element of the offense occurred before that date. SECTION 15. (a) The comptroller shall develop the sign described by Section 161.084, Health and Safety Code, as amended by this Act, and make the sign available to the public not later than September 15, 2015. (b) This section takes effect September 1, 2015. SECTION 16. Except as otherwise provided by this Act, this Act takes effect October 1, 2015.