Texas 2021 - 87th Regular

Texas House Bill HB3842 Compare Versions

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11 87R8517 SRA-D
22 By: Coleman H.B. No. 3842
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the prohibited sale of flavored cigarettes,
88 e-cigarettes, and tobacco products and administrative penalties
99 for the prohibited sales.
1010 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1111 SECTION 1. Section 161.081(1-a), Health and Safety Code, is
1212 amended to read as follows:
1313 (1-a) "E-cigarette" means an electronic cigarette or
1414 any other device that simulates smoking by using a mechanical
1515 heating element, battery, or electronic circuit to deliver nicotine
1616 or other substances to the individual inhaling from the device or a
1717 consumable liquid solution or other material aerosolized or
1818 vaporized during the use of an electronic cigarette or other device
1919 described by this subdivision, regardless of whether the liquid or
2020 other material contains nicotine. The term does not include a
2121 prescription medical device unrelated to the cessation of smoking.
2222 The term includes:
2323 (A) a device described by this subdivision
2424 regardless of whether the device is manufactured, distributed, or
2525 sold as an e-cigarette, e-cigar, or e-pipe or under another product
2626 name or description; and
2727 (B) a component, part, or accessory for the
2828 device, regardless of whether the component, part, or accessory is
2929 sold separately from the device.
3030 SECTION 2. Section 161.083(d), Health and Safety Code, is
3131 amended to read as follows:
3232 (d) Notwithstanding any other provision of law, a violation
3333 of this section is not a violation of this subchapter for purposes
3434 of Section 161.0901 [154.1142 or 155.0592, Tax Code].
3535 SECTION 3. Subchapter H, Chapter 161, Health and Safety
3636 Code, is amended by adding Section 161.0901 to read as follows:
3737 Sec. 161.0901. DISCIPLINARY ACTION AGAINST CIGARETTE AND
3838 TOBACCO PRODUCTS RETAILERS. (a) A retailer is subject to
3939 disciplinary action as provided by this section if an agent or
4040 employee of the retailer commits an offense under this subchapter,
4141 Subchapter I, or Subchapter K.
4242 (b) If the comptroller finds, after notice and an
4343 opportunity for a hearing as provided by Chapter 2001, Government
4444 Code, that a permit holder violated this subchapter, Subchapter I,
4545 or Subchapter K at a place of business for which a permit is issued,
4646 the comptroller may suspend the permit for that place of business
4747 and assess an administrative penalty as follows:
4848 (1) for a permit holder who has not been found to have
4949 violated this subchapter, Subchapter I, or Subchapter K at that
5050 place of business during the 24-month period preceding the
5151 violation, the comptroller may impose on the permit holder a fine in
5252 an amount not to exceed $1,000;
5353 (2) for a permit holder who has been found to have
5454 violated this subchapter, Subchapter I, or Subchapter K at that
5555 place of business once during the 24-month period preceding the
5656 violation, the comptroller may impose on the permit holder a fine in
5757 an amount not to exceed $2,000; and
5858 (3) for a permit holder who has been found to have
5959 violated this subchapter, Subchapter I, or Subchapter K at that
6060 place of business at least twice during the 24-month period
6161 preceding the violation, the comptroller may:
6262 (A) impose on the permit holder a fine in an
6363 amount not to exceed $3,000; and
6464 (B) suspend the permit for that place of business
6565 for not more than five days.
6666 (c) Except as provided by Subsection (e), if the permit
6767 holder has been found to have violated this subchapter, Subchapter
6868 I, or Subchapter K on four or more previous and separate occasions
6969 at the same place of business during the 24-month period preceding
7070 the violation, the comptroller shall revoke the permit issued under
7171 Chapter 154 or 155, Tax Code, as applicable. If the permit holder
7272 does not hold a permit under Chapter 154 or 155, Tax Code, the
7373 comptroller shall revoke the permit issued under Section 151.201,
7474 Tax Code.
7575 (d) A permit holder whose permit has been revoked under this
7676 section may not apply for a permit for the same place of business
7777 before the expiration of six months after the effective date of the
7878 revocation.
7979 (e) For purposes of this section, the comptroller may
8080 suspend a permit but may not revoke the permit under Subsection (c)
8181 if the comptroller finds that:
8282 (1) the employer has violated this subchapter,
8383 Subchapter I, or Subchapter K seven or fewer times at the place of
8484 business for which the permit is issued in the 48-month period
8585 preceding the violation in question;
8686 (2) the employer requires its employees to attend a
8787 comptroller-approved seller training program;
8888 (3) the employees successfully complete the
8989 comptroller-approved seller training program; and
9090 (4) the employer has not directly or indirectly
9191 encouraged the employees to violate the law.
9292 (f) The comptroller may adopt rules to implement this
9393 section.
9494 SECTION 4. Chapter 161, Health and Safety Code, is amended
9595 by adding Subchapter I to read as follows:
9696 SUBCHAPTER I. FLAVORED CIGARETTES, E-CIGARETTES, AND TOBACCO
9797 PRODUCTS
9898 Sec. 161.095. DEFINITIONS. In this subchapter:
9999 (1) "Cigarette" has the meaning assigned by Section
100100 154.001, Tax Code.
101101 (2) "E-cigarette" has the meaning assigned by Section
102102 161.081.
103103 (3) "Tobacco product" has the meaning assigned by
104104 Section 155.001, Tax Code.
105105 Sec. 161.096. SALE OF FLAVORED CIGARETTES, E-CIGARETTES, OR
106106 TOBACCO PRODUCTS PROHIBITED. (a) A person may not sell, give, or
107107 cause to be sold or given a cigarette, e-cigarette, or tobacco
108108 product with a distinguishable taste or aroma other than the taste
109109 or aroma of tobacco, including the aroma or taste of:
110110 (1) an alcoholic beverage;
111111 (2) candy or dessert;
112112 (3) chocolate, cocoa, or vanilla;
113113 (4) fruit;
114114 (5) an herb or spice;
115115 (6) honey;
116116 (7) menthol; or
117117 (8) mint or wintergreen.
118118 (b) There is a rebuttable presumption that a cigarette,
119119 e-cigarette, or tobacco product has a distinguishable taste or
120120 aroma prohibited under Subsection (a) if a person:
121121 (1) makes a public statement or claim that the
122122 cigarette, e-cigarette, or tobacco product imparts a taste or smell
123123 other than the taste or smell of tobacco;
124124 (2) uses text or images on the labeling or packaging of
125125 the cigarette, e-cigarette, or tobacco product to indicate the
126126 product imparts a taste or smell other than the taste or smell of
127127 tobacco; or
128128 (3) takes other action directed at consumers that
129129 would reasonably be expected to cause consumers to believe the
130130 cigarette, e-cigarette, or tobacco product imparts a taste or smell
131131 other than the taste or smell of tobacco.
132132 SECTION 5. The following provisions of the Tax Code are
133133 repealed:
134134 (1) Section 154.1142;
135135 (2) Section 154.1143;
136136 (3) Section 155.0592; and
137137 (4) Section 155.0593.
138138 SECTION 6. Section 161.0901, Health and Safety Code, as
139139 added by this Act, applies only to a violation that occurs on or
140140 after the effective date of this Act. A violation that occurs
141141 before the effective date of this Act is governed by the law in
142142 effect on the date the violation occurred, and the former law is
143143 continued in effect for that purpose.
144144 SECTION 7. This Act takes effect September 1, 2021.