Texas 2017 - 85th Regular

Texas Senate Bill SB1390 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Hinojosa S.B. No. 1390
2		-	(Wray)
	1	+	S.B. No. 1390
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to taxes and fees imposed on cigarettes and other tobacco
8	6		products, including an exemption to the cigarette tax, related
9	7		administrative matters, and the elements of certain related
10	8		offenses.
11	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	10		SECTION 1. Section 161.604, Health and Safety Code, is
13	11		amended by amending Subsection (b) and adding Subsection (b-1) to
14	12		read as follows:
15	13		(b) Beginning in January 2014, and in January of each
16	14		subsequent year, the comptroller shall adjust [compute] the rate of
17	15		the fee [applicable during that calendar year] by increasing the
18	16		rate in effect on the date the adjustment is made [for the preceding
19	17		calendar year] by the greater of:
20	18		(1) three percent; or
21	19		(2) the actual total percentage change in the Consumer
22	20		Price Index for All Urban Consumers (CPI-U), as published by the
23	21		Bureau of Labor Statistics of the United States Department of
24	22		Labor, during the preceding calendar year, calculated by comparing
25	23		the CPI-U for December of the preceding calendar year with the CPI-U
26	24		for December a year earlier.
27	25		(b-1) The adjusted rate of the fee determined under
28	26		Subsection (b) takes effect on February 1 of the year in which the
29	27		adjusted rate is determined and remains in effect until January 31
30	28		of the following year.
31	29		SECTION 2. Section 161.605(e), Health and Safety Code, is
32	30		amended to read as follows:
33	31		(e) Notwithstanding any other law, a distributor that
34	32		remits a monthly fee under this section is[, subject to Section
35	33		154.051, Tax Code,] entitled to a stamping allowance of three
36	34		percent of the face value of all stamps purchased under Section
37	35		154.041, Tax Code, for providing the service of affixing stamps to
38	36		cigarette packages.
39	37		SECTION 3. Subchapter B, Chapter 154, Tax Code, is amended
40	38		by adding Section 154.026 to read as follows:
41	39		Sec. 154.026. CIGARETTES USED EXCLUSIVELY FOR RESEARCH
42	40		PURPOSES. (a) Cigarettes are exempt from the tax imposed by
43	41		Section 154.021 if the cigarettes are:
44	42		(1) contained in a package labeled with "Experimental
45	43		Use Only," "Reference Cigarettes," or other similar wording
46	44		indicating that the manufacturer intends for the product to be used
47	45		exclusively for experimental purposes in compliance with 27 C.F.R.
48	46		Section 40.232;
49	47		(2) sold directly by a manufacturer to a research
50	48		facility in this state, including:
51	49		(A) a laboratory, hospital, medical center,
52	50		college, or university; or
53	51		(B) a facility designated as a Tobacco Center of
54	52		Regulatory Science by the National Institutes of Health;
55	53		(3) used by the research facility exclusively for
56	54		experimental purposes; and
57	55		(4) not resold by the research facility.
58	56		(b) Sections 154.041, 154.302, 154.502, 154.503, and
59	57		154.515 do not apply to cigarettes exempted by Subsection (a).
60	58		SECTION 4. Section 154.210(a), Tax Code, is amended to read
61	59		as follows:
62	60		(a) A distributor shall deliver to the comptroller, on or
63	61		before the 25th [last] day of each month, a report for the preceding
64	62		month.
65	63		SECTION 5. Section 154.502, Tax Code, is amended to read as
66	64		follows:
67	65		Sec. 154.502. UNSTAMPED CIGARETTES. Except as provided by
68	66		Section 154.026(b), a [A] person commits an offense if the person:
69	67		(1) makes a first sale of unstamped cigarettes;
70	68		(2) sells, offers for sale, or presents as a prize or
71	69		gift unstamped cigarettes; or
72	70		(3) knowingly consumes, uses, or smokes cigarettes
73	71		taxed under this chapter without a stamp affixed to each individual
74	72		package.
75	73		SECTION 6. Section 154.503(a), Tax Code, is amended to read
76	74		as follows:
77	75		(a) Except as provided by Sections 154.026(b) and [Section]
78	76		154.042 [of this code], a person commits an offense if the person
79	77		possesses unstamped cigarettes in quantities less than 10,000.
80	78		SECTION 7. Section 154.515(a), Tax Code, is amended to read
81	79		as follows:
82	80		(a) Except as provided by Sections 154.026(b) and [Section]
83	81		154.042 [of this code], a person commits an offense if the person
84	82		possesses unstamped cigarettes in quantities of 10,000 or more.
85	83		SECTION 8. Section 155.111(a), Tax Code, is amended to read
86	84		as follows:
87	85		(a) A distributor shall file with the comptroller on or
88	86		before the 25th [last] day of each month[,] a report for the
89	87		preceding month.
90	88		SECTION 9. (a) The changes in law made by this Act do not
91	89		affect taxes and fees imposed before the effective date of this Act,
92	90		and the law in effect before the effective date of this Act is
93	91		continued in effect for purposes of the liability for and
94	92		collection of those taxes and fees.
95	93		(b) The changes in law made by this Act to Sections 154.210
96	94		and 155.111, Tax Code, apply only to a distributor's report
97	95		originally due on or after the effective date of this Act. A
98	96		distributor's report originally due before that date is governed by
99	97		the law in effect on the date the report was due, and the former law
100	98		is continued in effect for that purpose.
101	99		(c) The changes in law made by this Act to Sections 154.502,
102	100		154.503, and 154.515, Tax Code, apply only to an offense committed
103	101		on or after the effective date of this Act. An offense committed
104	102		before the effective date of this Act is governed by the law in
105	103		effect when the offense was committed, and the former law is
106	104		continued in effect for that purpose. For purposes of this
107	105		subsection, an offense was committed before the effective date of
108	106		this Act if any element of the offense occurred before that date.
109	107		SECTION 10. This Act takes effect September 1, 2017.
	108	+	______________________________ ______________________________
	109	+	President of the Senate Speaker of the House
	110	+	I hereby certify that S.B. No. 1390 passed the Senate on
	111	+	April 10, 2017, by the following vote: Yeas 31, Nays 0.
	112	+	______________________________
	113	+	Secretary of the Senate
	114	+	I hereby certify that S.B. No. 1390 passed the House on May
	115	+	4, 2017, by the following vote: Yeas 142, Nays 1, two present not
	116	+	voting.
	117	+	______________________________
	118	+	Chief Clerk of the House
	119	+	Approved:
	120	+	______________________________
	121	+	Date
	122	+	______________________________
	123	+	Governor