By: Johnson  S.B. No. 248          (In the Senate - Filed December 17, 2020; March 3, 2021,   read first time and referred to Committee on Finance;   April 6, 2021, reported adversely, with favorable Committee   Substitute by the following vote:  Yeas 15, Nays 0; April 6, 2021,   sent to printer.)Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR S.B. No. 248 By:  Buckingham     A BILL TO BE ENTITLED   AN ACT     relating to the regulation of and permits for the sale or delivery   of cigarettes, tobacco products, and e-cigarettes; requiring   permits; imposing fees; providing administrative penalties.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle G, Title 2, Health and Safety Code, is   amended by adding Chapter 147 to read as follows:   CHAPTER 147. E-CIGARETTE RETAILER PERMITS   SUBCHAPTER A.  GENERAL PROVISIONS          Sec. 147.0001.  DEFINITIONS. In this chapter:                (1)  "E-cigarette" has the meaning assigned by Section   161.081.                (2)  "E-cigarette retailer" means a person who engages   in the business of selling e-cigarettes to consumers, including a   person who sells e-cigarettes to consumers through a marketplace.                (3)  "Marketplace" has the meaning assigned by Section   151.0242, Tax Code.                (4)  "Permit holder" means a person who obtains a   permit under Section 147.0052.          Sec. 147.0002.  INAPPLICABILITY TO CERTAIN PRODUCTS. This   chapter does not apply to a product described by Section 161.0815.          Sec. 147.0003.  HEARINGS. Unless otherwise provided by this   chapter, the comptroller shall conduct all hearings required by   this chapter in accordance with Chapter 2001, Government Code. The   comptroller may designate one or more representatives to conduct   the hearings and may prescribe the rules of procedure governing the   hearings.          Sec. 147.0004.  RULES. The comptroller may adopt rules to   implement this chapter, including rules exempting a person who   sells e-cigarettes to consumers through a marketplace from the   requirements of this chapter.   SUBCHAPTER B.  PERMITS          Sec. 147.0051.  E-CIGARETTE RETAILER PERMIT REQUIRED. (a)   A person may not engage in business as an e-cigarette retailer in   this state unless the person has been issued a permit from the   comptroller. A person shall obtain a permit for each place of   business the person owns or operates at which sales of e-cigarettes   are made.          (b)  The comptroller shall prescribe the form and content of   an application for a permit and provide the form on request.          (c)  The applicant shall accurately complete all information   required by the application and provide the comptroller with   additional information the comptroller considers necessary.          (d)  Each applicant that applies for a permit to sell   e-cigarettes from a vehicle must provide the make, model, vehicle   identification number, registration number, and any other   information concerning the vehicle the comptroller requires.          (e)  All financial information provided under this section   is confidential and not subject to Chapter 552, Government Code.          (f)  Permits for engaging in business as an e-cigarette   retailer are governed exclusively by the provisions of this code.          Sec. 147.0052.  ISSUANCE OF PERMIT. (a) The comptroller   shall issue a permit to an applicant if the comptroller:                (1)  has received an application and fee;                (2)  does not reject the application and deny the   permit under Section 147.0053; and                (3)  determines that issuing the permit will not   jeopardize the administration and enforcement of this chapter.          (b)  The permit shall be issued for a designated place of   business, except as provided by Section 147.0056.          (c)  The permits are nonassignable.          (d)  The permit must indicate the type of permit and   authorize the sale of e-cigarettes in this state. The permit must   show that it is revocable and shall be forfeited or suspended if the   conditions of issuance, provisions of this chapter, or rules of the   comptroller are violated.          Sec. 147.0053.  DENIAL OF PERMIT. The comptroller may   reject an application and deny a permit if the comptroller finds,   after notice and opportunity for hearing, any of the following:                (1)  the premises where business will be conducted are   not adequate to protect the e-cigarettes; or                (2)  the applicant or managing employee, or if the   applicant is a corporation, an officer, director, manager, or any   stockholder who holds directly or through family or partner   relationship 10 percent or more of the corporation's stock, or, if   the applicant is a partnership, a partner or manager:                      (A)  has failed to disclose any information   required by Sections 147.0051(c) and (d); or                      (B)  has previously violated provisions of this   chapter.          Sec. 147.0054.  PERMIT PERIOD; FEES. (a) A permit required   by this chapter expires on the last day of May of each even-numbered   year.          (b)  An application for a permit required by this chapter   must be accompanied by a fee of:                (1)  one-half of the amount of the fee for a retailer's   permit required by Section 154.111(b), Tax Code, if the applicant   holds a valid retailer's permit under Section 154.101, 154.102, or   155.041, Tax Code; or                (2)  the amount of the fee for a retailer's permit   required by Section 154.111(b), Tax Code.          (c)  For a new or renewal permit required by Section   147.0051, the comptroller shall prorate the fee according to the   number of months remaining during the period that the permit is to   be in effect.          (d)  A person who does not obtain a renewal permit in a timely   manner must pay a late fee of $50 in addition to the application fee   for the permit.          (e)  If on the date of issuance a permit will expire within   three months, the comptroller may collect the prorated permit fee   or the fee for the current period and, with the consent of the   permit holder, may collect the fee for the next permit period and   issue a permit or permits for both periods, as applicable.          (f)  A person issued a permit for a place of business that   permanently closes before the permit expiration date is not   entitled to a refund of the permit fee.          Sec. 147.0055.  PAYMENT FOR PERMITS. (a) An applicant for a   permit required by Section 147.0051 shall send the required fee   with the application.          (b)  The payment must be made in cash or by money order,   check, or credit card.          (c)  The comptroller may not issue a permit in exchange for a   check until after the comptroller receives full payment on the   check.          Sec. 147.0056.  DISPLAY OF PERMIT. (a) A permit holder   shall keep the permit on public display at the place of business for   which the permit was issued.          (b)  A permit holder who has a permit assigned to a vehicle   shall post the permit in a conspicuous place on the vehicle.          Sec. 147.0057.  REVENUE. Revenue from the sale of   e-cigarette retailer's permits shall be deposited to the general   revenue fund and may be appropriated only as provided by this   section. The money may be appropriated first to the comptroller for   administering:                (1)  permitting of retailers under this chapter and   Chapters 154 and 155, Tax Code; and                (2)  disciplinary actions taken under Section   161.0901.   SUBCHAPTER C.  PERMIT SUSPENSION AND REVOCATION          Sec. 147.0101.  FINAL SUSPENSION OR REVOCATION OF PERMIT.   (a) The comptroller may revoke or suspend a permit holder's permit   if the comptroller finds, after notice and hearing as provided by   this section, that the permit holder violated this chapter or a rule   adopted under this chapter.          (b)  If the comptroller intends to suspend or revoke a   permit, the comptroller shall provide the permit holder with   written notice that includes a statement:                (1)  of the reason for the intended revocation or   suspension;                (2)  that the permit holder is entitled to a hearing by   the comptroller on the proposed suspension or revocation; and                (3)  of the date, time, and place of the hearing.          (c)  The comptroller shall deliver the written notice by   personal service or by mail to the permit holder's mailing address   as it appears in the comptroller's records. Service by mail is   complete when the notice is deposited with the United States Postal   Service.          (d)  The comptroller shall give the permit holder notice   before the 10th day before the final hearing.          (e)  A permit holder may appeal the comptroller's decision to   a district court in Travis County not later than the 30th day after   the date the comptroller's decision becomes final.          (f)  A person whose permit is suspended or revoked may not   sell, offer for sale, or distribute e-cigarettes from the place of   business to which the permit applied until a new permit is granted   or the suspension is removed.          Sec. 147.0102.  SUMMARY SUSPENSION OF PERMIT. (a) The   comptroller may suspend a permit holder's permit without notice or   a hearing for the permit holder's failure to comply with this   chapter or a rule adopted under this chapter if the permit holder's   continued operation constitutes an immediate and substantial   threat.          (b)  If the comptroller summarily suspends a permit holder's   permit, proceedings for a preliminary hearing before the   comptroller or the comptroller's representative must be initiated   simultaneously with the summary suspension. The preliminary   hearing shall be set for a date not later than the 10th day after the   date of the summary suspension, unless the parties agree to a later   date.          (c)  At the preliminary hearing, the permit holder must show   cause why the permit should not remain suspended pending a final   hearing on suspension or revocation.          (d)  Chapter 2001, Government Code, does not apply to a   summary suspension under this section.          (e)  To initiate a proceeding to suspend summarily a permit   holder's permit, the comptroller shall serve notice on the permit   holder informing the permit holder of the right to a preliminary   hearing before the comptroller or the comptroller's representative   and of the time and place of the preliminary hearing. The notice   must be personally served on the permit holder or an officer,   employee, or agent of the permit holder or sent by certified or   registered mail, return receipt requested, to the permit holder's   mailing address as it appears in the comptroller's records. The   notice must state the alleged violations that constitute the   grounds for summary suspension. The suspension is effective at the   time the notice is served. If notice is served in person, the   permit holder shall immediately surrender the permit to the   comptroller.  If notice is served by mail, the permit holder shall   immediately return the permit to the comptroller.          (f)  Section 147.0101, governing hearings for final   suspension or revocation of a permit under this chapter, governs a   final administrative hearing.          SECTION 2.  Sections 161.081(1-a), (2), and (4), Health and   Safety Code, are amended to read as follows:                (1-a)  "E-cigarette" means an electronic cigarette or   any other device that simulates smoking by using a mechanical   heating element, battery, or electronic circuit to deliver nicotine   or other substances to the individual inhaling from the device or a   consumable liquid solution or other material aerosolized or   vaporized during the use of an electronic cigarette or other device   described by this subdivision, regardless of whether the liquid or   other material contains nicotine. The term does not include a   prescription medical device unrelated to the cessation of smoking.     The term includes:                      (A)  a device described by this subdivision   regardless of whether the device is manufactured, distributed, or   sold as an e-cigarette, e-cigar, or e-pipe or under another product   name or description; and                      (B)  a component, part, or accessory for the   device, regardless of whether the component, part, or accessory is   sold separately from the device.                (2)  "Permit holder" has the meaning assigned by   Section 147.0001 of this code or Section 154.001 or 155.001, Tax   Code, as applicable.                (4)  "Retailer" means a person who engages in the   practice of selling cigarettes, e-cigarettes, or tobacco products   to consumers and includes the owner of a coin-operated cigarette,   e-cigarette, or tobacco product vending machine. The term includes   a retailer as [that term is] defined by Section 154.001 or 155.001,   Tax Code, and an e-cigarette retailer as defined by Section   147.0001 of this code, as applicable.          SECTION 3.  Section 161.083(d), Health and Safety Code, is   amended to read as follows:          (d)  Notwithstanding any other provision of law, a violation   of this section is not a violation of this subchapter for purposes   of Section 161.0901 [154.1142 or 155.0592, Tax Code].          SECTION 4.  Subchapter H, Chapter 161, Health and Safety   Code, is amended by adding Section 161.0901 to read as follows:          Sec. 161.0901.  DISCIPLINARY ACTION AGAINST CIGARETTE,   E-CIGARETTE, AND TOBACCO PRODUCT RETAILERS. (a) A retailer is   subject to disciplinary action as provided by this section if an   agent or employee of the retailer commits an offense under this   subchapter.          (b)  If the comptroller finds, after notice and an   opportunity for a hearing as provided by Chapter 2001, Government   Code, that a permit holder has violated this subchapter at a place   of business for which a permit is issued, the comptroller may   suspend the permit for that place of business and administratively   assess a fine as follows:                (1)  if the permit holder has not been found to have   violated this subchapter at that place of business during the   24-month period preceding the violation, the comptroller may   require the permit holder to pay a fine in an amount not to exceed   $1,000;                (2)  if the permit holder has been found to have   violated this subchapter at that place of business once during the   24-month period preceding the violation, the comptroller may   require the permit holder to pay a fine in an amount not to exceed   $2,000; and                (3)  if the permit holder has been found to have   violated this subchapter at that place of business at least twice   during the 24-month period preceding the violation, the comptroller   may:                      (A)  require the permit holder to pay a fine in an   amount not to exceed $3,000; and                      (B)  suspend the permit for that place of business   for not more than five days.          (c)  Except as provided by Subsection (e), if the permit   holder has been found to have violated this subchapter on four or   more previous and separate occasions at the same place of business   during the 24-month period preceding the violation, the comptroller   shall revoke the permit issued under Chapter 147 of this code or   Chapter 154 or 155, Tax Code, as applicable. If the permit holder   does not hold a permit under Chapter 147 of this code or Chapter 154   or 155, Tax Code, the comptroller shall revoke the permit issued   under Section 151.201, Tax Code.          (d)  A permit holder whose permit has been revoked under this   section may not apply for a permit for the same place of business   before the expiration of six months after the effective date of the   revocation.          (e)  For purposes of this section, the comptroller may   suspend a permit but may not revoke the permit under Subsection (c)   if the comptroller finds that:                (1)  the employer has not violated this subchapter more   than seven times at the place of business for which the permit is   issued in the 48-month period preceding the violation in question;                (2)  the employer requires its employees to attend a   comptroller-approved seller training program;                (3)  the employees have actually attended a   comptroller-approved seller training program; and                (4)  the employer has not directly or indirectly   encouraged the employees to violate the law.          (f)  The comptroller may adopt rules to implement this   section.          SECTION 5.  Section 111.00455(b), Tax Code, is amended to   read as follows:          (b)  The following are not contested cases under Subsection   (a) and Section 2003.101, Government Code:                (1)  a show cause hearing or any hearing not related to   the collection, receipt, administration, or enforcement of the   amount of a tax or fee imposed, or the penalty or interest   associated with that amount, except for a hearing under Section   151.157(f), 151.1575(c), or 151.712(g) of this code or Section   161.0901, Health and Safety Code[, 154.1142, or 155.0592];                (2)  a property value study hearing under Subchapter M,   Chapter 403, Government Code;                (3)  a hearing in which the issue relates to:                      (A)  Chapters 72-75, Property Code;                      (B)  forfeiture of a right to do business;                      (C)  a certificate of authority;                      (D)  articles of incorporation;                      (E)  a penalty imposed under Section 151.703(d);                      (F)  the refusal or failure to settle under   Section 111.101; or                      (G)  a request for or revocation of an exemption   from taxation; and                (4)  any other hearing not related to the collection,   receipt, administration, or enforcement of the amount of a tax or   fee imposed, or the penalty or interest associated with that   amount.          SECTION 6.  Section 154.1135(b), Tax Code, is amended to   read as follows:          (b)  The payment must be made in cash or by money order, [or]   check, or credit card.          SECTION 7.  Section 154.121(b), Tax Code, is amended to read   as follows:          (b)  Revenue from the sale of retailer's permits shall be   deposited to the general revenue fund and may be appropriated only   as provided by this section. The money may be appropriated first to   the comptroller for administering:                (1)  permitting [administration of licensing] of   retailers under this chapter, Chapter [or Chapter] 155 of this   code, and Chapter 147, Health and Safety Code; and                (2)  disciplinary actions taken under Section   161.0901, Health and Safety Code.          SECTION 8.  Section 155.050(b), Tax Code, is amended to read   as follows:          (b)  The payment must be made in cash or by money order, [or]   check, or credit card.          SECTION 9.  Section 155.058(b), Tax Code, is amended to read   as follows:          (b)  Revenue from the sale of retailer's permits shall be   deposited to the general revenue fund and may be appropriated only   as provided by this section. The money may be appropriated first to   the comptroller for administering:                (1)  permitting [administration of licensing] of   retailers under this chapter, Chapter [or Chapter] 154 of this   code, and Chapter 147, Health and Safety Code; and                (2)  disciplinary actions taken under Section   161.0901, Health and Safety Code.          SECTION 10.  Chapters 154 and 155, Tax Code, are amended to   read as follows:          Sec. 154.001.  DEFINITIONS.  In this chapter:                (1)  "Bonded agent" means a person in this state who is   a third-party agent of a manufacturer outside this state and who   receives cigarettes in interstate commerce and stores the   cigarettes for distribution or delivery to distributors under   orders from the manufacturer.                (2)  "Cigarette" means a roll for smoking:                      (A)  that is made of tobacco or tobacco mixed with   another ingredient and wrapped or covered with a material other   than tobacco; and                      (B)  that is not a cigar.                (3)  "Commercial business location" means the entire   premises occupied by a permit applicant or a person required to hold   a permit under this chapter.                (4)  "Common carrier" means a motor carrier registered   under Chapter 643, Transportation Code, or a motor carrier   operating under a certificate issued by the Interstate Commerce   Commission or a successor agency to the Interstate Commerce   Commission.                (5)  "Consumer" means a person who possesses cigarettes   for personal consumption.                (6)  "Counterfeit stamp" means a sticker, label, print,   tag, or token that is used or is intended to be used to simulate a   stamp and that is not authorized or issued by the comptroller.                (7)  "Distributor" means a person who:                      (A)  is authorized to purchase for the purpose of   making a first sale in this state cigarettes in unstamped packages   from manufacturers who distribute cigarettes in this state and to   stamp cigarette packages;                      (B)  ships, transports, imports into this state,   acquires, or possesses cigarettes and makes a first sale of the   cigarettes in this state;                      (C)  manufactures or produces cigarettes; or                      (D)  is an importer.                (7-a)  "Engage in business" means, in relation to   cigarettes, engaging by a person, either directly or through a   representative, in any of the following activities:                      (A)  selling cigarettes in or into this state;                      (B)  using a warehouse or another location to   store cigarettes; or                      (C)  otherwise conducting through a physical   presence cigarette-related business in this state.                (8)  "Export warehouse" means a person in this state   who receives cigarettes in unstamped packages from manufacturers   and stores the cigarettes for the purpose of making sales to   authorized persons for resale, use, or consumption outside the   United States.                (9)  "First sale" means, except as otherwise provided   by this chapter:                      (A)  the first transfer of possession in   connection with a purchase, sale, or any exchange for value of   cigarettes in or into this state, which:                            (i)  includes the sale of cigarettes by:                                  (a)  a distributor in or outside this   state to a distributor, wholesaler, or retailer in this state; and                                  (b)  a manufacturer in this state who   transfers the cigarettes in this state; and                            (ii)  does not include:                                  (a)  the sale of cigarettes by a   manufacturer outside this state to a distributor in this state;   [or]                                  (b)  the transfer of cigarettes from a   manufacturer outside this state to a bonded agent in this state; or                                  (c)  the sale of cigarettes from a   manufacturer, bonded agent, distributor, or importer to an   interstate warehouse in this state;                      (B)  the first use or consumption of cigarettes in   this state; or                      (C)  the loss of cigarettes in this state whether   through negligence, theft, or other unaccountable loss.                (10)  "Importer" means a person who ships, transports,   or imports into this state cigarettes manufactured or produced   outside the United States for the purpose of making a first sale in   this state.                (11)  "Individual package of cigarettes" means a   package that contains at least 20 cigarettes.                (11-a)  "Interstate warehouse" means a person in this   state who receives unstamped cigarettes from a manufacturer, bonded   agent, importer, or distributor and stores the cigarettes   exclusively for an interstate warehouse transaction.                (11-b)  "Interstate warehouse transaction" means the   sale or delivery from an interstate warehouse to a person in another   state who is licensed or permitted by the other state to affix that   state's cigarette stamps or otherwise pay the state's excise tax on   cigarettes as may be required.                (12)  "Manufacturer" means a person who manufactures,   fabricates, or assembles cigarettes, or causes or arranges for the   manufacture, fabrication, or assembly of cigarettes, for sale or   distribution.                (13)  "Manufacturer's representative" means a person   employed by a manufacturer to sell or distribute the manufacturer's   stamped cigarette packages.                (14)  "Permit holder" means a bonded agent, interstate   warehouse, distributor, wholesaler, manufacturer, importer, export   warehouse, or retailer who obtains a permit under Section 154.101.                (15)  "Place of business" means:                      (A)  a commercial business location where   cigarettes are sold;                      (B)  a commercial business location where   cigarettes are kept for sale or consumption or otherwise stored;                      (C)  a vehicle from which cigarettes are sold; or                      (D)  a vending machine from which cigarettes are   sold.                (16)  "Previously used stamp" means a stamp that has   been used to show payment of a tax imposed by this chapter and is   again used, sold, or possessed for sale or use to show payment of a   tax imposed by this chapter.                (17)  "Retailer" means a person who engages in the   business of selling cigarettes to consumers and includes the owner   of a cigarette vending machine.                (17-a)  "Roll-your-own machine" means a machine for   commercial use at a retail premise that is capable of producing   cigarettes only in quantities for personal use.                (18)  "Stamp" includes only a stamp that:                      (A)  is printed, manufactured, or made by   authority of the comptroller;                      (B)  shows payment of the tax imposed by this   chapter;                      (C)  is consecutively numbered and uniquely   identifiable as a Texas tax stamp; and                      (D)  is not damaged beyond recognition as a valid   Texas tax stamp.                (19)  "Wholesaler" means a person, including a   manufacturer's representative, who sells or distributes cigarettes   in this state for resale but who is not a distributor or interstate   warehouse.          Sec. 154.041.  STAMP REQUIRED.  (a)  A person who pays a tax   imposed by this chapter shall securely affix a stamp to each   individual package of cigarettes to show payment of the tax.          (b)  Except as provided by Section 154.152, each distributor   shall obtain the necessary stamps before receiving or accepting   delivery of unstamped packages of cigarettes.  The possession of   unstamped packages of cigarettes without the possession of the   requisite amount or number of stamps is prima facie evidence that   the cigarettes are possessed for the purpose of making a first sale   without stamps and without payment of the tax imposed by this   chapter.          (c)  The absence of a stamp on an individual package of   cigarettes is notice that the tax has not been paid.          (d)  A manufacturer of cigarettes outside this state may   purchase a stamp and affix it to the individual package and no   further payment of the tax is required.          (e)  The transfer of possession of cigarettes by a bonded   agent to a distributor in this state, under instructions received   from outside this state, is not a first sale.          (f)  The transfer of possession of cigarettes by an   interstate warehouse in an interstate warehouse transaction is not   a first sale and no stamp is required.          Sec. 154.101.  PERMITS.  (a)  A person may not engage in   business as a distributor, wholesaler, bonded agent, interstate   warehouse, manufacturer, export warehouse, importer, or retailer   unless the person has applied for and received the applicable   permit from the comptroller.          (b)  Each distributor, wholesaler, bonded agent, interstate   warehouse, manufacturer, export warehouse, importer, or retailer   shall obtain a permit for each place of business owned or operated   by the distributor, wholesaler, bonded agent, interstate   warehouse, manufacturer, export warehouse, importer, or retailer.     The comptroller may not issue a permit for a place of business that   is a residence or a unit in a public storage facility.          (c)  The comptroller shall prescribe the form and content of   an application for a permit and shall furnish the form on request of   an applicant.          (d)  The applicant shall accurately complete all information   required by the application and provide the comptroller with such   additional information as the comptroller deems necessary.          (e)  The comptroller may require each corporation,   association, joint venture, syndicate, partnership, or   proprietorship to furnish financial information regarding the   applicant and to provide the identity of each officer, director,   stockholder owning 10 percent or more of the outstanding stock,   partner, member, owner, or managing employee.          (f)  Each distributor, wholesaler, and retailer that applies   for a permit to sell cigarettes from a vehicle must provide the   make, model, vehicle identification number, registration number,   and any other information required by the comptroller.          (g)  All financial information provided under this section   is confidential and not subject to Chapter 552, Government Code.          (h)  Permits for engaging in business as a distributor,   wholesaler, bonded agent, interstate warehouse, manufacturer,   export warehouse, importer, or retailer shall be governed   exclusively by the provisions of this code.          (i)  This section does not apply to a research facility that   possesses and uses cigarettes only for experimental purposes.          (j)  A person engaged in the business of selling cigarettes   for commercial purposes who provides a roll-your-own machine   available for use by consumers must obtain manufacturer's,   distributor's, and retailer's permits.          (k)  A person may not hold a Texas distributor permit and an   interstate warehouse permit at the same location.          Sec. 154.1015.  SALES; PERMIT HOLDERS AND NONPERMIT HOLDERS.     (a)  Except for retail sales to consumers, cigarettes may only be   sold or distributed by and between permit holders as provided by   this section.          (b)  A person who is not a permit holder may not sell or   distribute more than 200 individual cigarettes to any person.          (c)  A manufacturer outside this state who is not a permitted   distributor may sell cigarettes only to a permitted distributor or   permitted interstate warehouse.          (d)  A permitted distributor may sell cigarettes only to a   permitted distributor, wholesaler, or retailer.  A permitted   distributor who manufactures or produces cigarettes in this state   may sell such cigarettes manufactured or produced to a permitted   interstate warehouse.          (e)  A permitted importer may sell cigarettes only to a   permitted interstate warehouse, permitted distributor, wholesaler,   or retailer.          (f)  A permitted wholesaler may sell cigarettes only to a   permitted distributor, wholesaler, or retailer.          (g)  A permitted retailer may sell cigarettes only to the   consumer and may purchase cigarettes only from a permitted   distributor or wholesaler in this state.          (h)  A permitted export warehouse may sell cigarettes only to   persons authorized to sell or consume unstamped cigarettes outside   the United States.          (i)  A manufacturer's representative may sell cigarettes   only to a permitted distributor, wholesaler, or retailer.          (j)  A permitted interstate warehouse may sell cigarettes   only in an interstate warehouse transaction.  No intrastate sale of   cigarettes by an interstate warehouse shall take place without   written authorization by the comptroller.          Sec. 154.102.  COMBINATION PERMIT.  (a)  The comptroller may   issue a combination permit for cigarettes and tobacco products to a   person who is a distributor, wholesaler, bonded agent, interstate   warehouse, manufacturer, importer, or retailer as defined by this   chapter and Chapter 155 for both cigarettes and tobacco products.     An interstate warehouse shall not be issued a combination permit as   a retailer of cigarettes or tobacco products.          (b)  A person who receives a combination permit pays only the   higher of the two permit fees.          Sec. 154.110.  ISSUANCE OF PERMIT.  (a)  The comptroller   shall issue a permit to a distributor, wholesaler, bonded agent,   interstate warehouse, manufacturer, export warehouse, importer, or   retailer if the comptroller:                (1)  has received an application and fee, if required;                (2)  believes that the applicant has complied with   Section 154.101; and                (3)  determines that issuing the permit will not   jeopardize the administration and enforcement of this chapter.          (b)  The permit shall be issued for a designated place of   business, except as provided by Section 154.117.          (c)  The permits are nonassignable.          (d)  The permit must indicate the type of permit that it is   and authorize the sale of cigarettes in this state.  The permit must   show that it is revocable and shall be forfeited or suspended if the   conditions of issuance, provisions of this chapter, or rules of the   comptroller are violated.          Sec. 154.111.  PERMIT YEAR; FEES.  (a)  A permit required by   this chapter expires on the last day of February of each year,   except that the retailer's permit required by Section 154.101   expires on the last day of May of each even-numbered year.          (b)  An application for a permit required by this chapter   must be accompanied by a fee of:                (1)  $300 for a bonded agent's permit;                (2)  $300 for an interstate warehouse's permit;                (3) [(2)]  $300 for a distributor's permit;                (4) [(3)]  $200 for a wholesaler's permit;                (5) [(4)]  $15 for each permit for a vehicle if the   applicant is also applying for a permit as a bonded agent,   distributor, or wholesaler or has received a current permit from   the comptroller under Sections 154.101 and 154.110; and                (6) [(5)]  $180 for a retailer's permit.          (c)  A fee is not required for an export warehouse permit.          (d)  For a new or renewal permit required by Section 154.101,   the comptroller shall prorate the fee according to the number of   months remaining during the calendar year that the permit is to be   in effect.          (e)  A person who does not obtain a permit each year in a   timely manner must pay a fee of $50 in addition to the application   fee for the permit.          (f)  If at the date of issuance a permit will expire within   three months, the comptroller may collect the prorated permit fee   or the fee for the current year and, with the consent of the permit   holder, may collect the fee for the next permit year and issue a   permit or permits for both periods, as applicable.          (g)  A person issued a permit for a place of business that   permanently closes before the permit expiration date is not   entitled to a refund of the permit fee.          Sec. 154.121.  REVENUE.  (a)  Except as provided by   Subsection (b), revenue from the sale of permits to distributors,   wholesalers, [and] bonded agents, and interstate warehouses is   allocated in the same manner as other revenue allocated by   Subchapter J.          (b)  Revenue from the sale of retailer's permits shall be   deposited to the general revenue fund and may be appropriated only   as provided by this section.  The money may be appropriated first to   the comptroller for administration of licensing of retailers under   this chapter or Chapter 155.          (c)  If, after any appropriation is made under Subsection   (b), revenue remains from the sale of retailer's permits, the   remaining money may be appropriated to the comptroller for   administration and enforcement of Subchapters H, K, and N, Chapter   161, Health and Safety Code, and to the Texas Department of Health,   for the administration and enforcement of Section 161.253, Health   and Safety Code.          (d)  If, after any appropriation is made under Subsections   (b) and (c), revenue remains from the sale of retailer's permits,   the remaining money may be appropriated to the Texas Department of   Health to administer the commissioner of public health's   responsibilities under Section 161.301, Health and Safety Code.          (e)  If, after any appropriation is made under Subsections   (b), (c), and (d), revenue remains from the sale of retailer's   permits, the remaining money may be appropriated to the appropriate   entity to administer that entity's responsibilities under Section   161.302, Health and Safety Code.          Sec. 154.152.  INTERSTATE STOCK.  (a)  A distributor shall   set aside unstamped cigarette packages for interstate sale and for   which no tax is due under federal law in a separate part of the   building from the stamped packages.  If the unstamped packages for   interstate sale or for which no tax is due under federal law are not   stored separately, the cigarettes are subject to the same   requirements as cigarettes possessed for the purpose of a first   sale in this state.          (b)  A distributor who possesses unstamped cigarette   packages for interstate sale must possess a number of unused stamps   from the appropriate state sufficient to stamp the distributor's   inventory of unstamped interstate cigarettes, except for cigarette   packages for which no tax is due under federal law.  Any unstamped   packages of cigarettes that exceed the number of out-of-state   stamps on hand shall be presumed to be held for sale in this state,   except for cigarette packages for which no tax is due under federal   law.          (c)  A person may not transport or cause to be transported   from this state cigarettes for sale in another state without first   affixing to the cigarettes the stamp required by the state in which   the cigarettes are to be sold or paying any other excise tax on the   cigarettes imposed by the state in which the cigarettes are to be   sold.  This provision shall not apply to distribution, sale and   transportation of cigarettes sold by an interstate warehouse in an   interstate warehouse transaction.          (d)  A person may not affix to cigarettes the stamp required   by another state or pay any other excise tax on the cigarettes   imposed by another state if the other state prohibits stamps from   being affixed to the cigarettes, prohibits the payment of any other   excise tax on the cigarettes, or prohibits the sale of the   cigarettes.          (e)  Not later than the 15th day after the end of each   calendar quarter, a person who transports or causes to be   transported from this state cigarettes for sale in another state   shall submit to the attorney general a report identifying:                (1)  the quantity of cigarettes, by brand style,   transported or caused to be transported in the preceding calendar   quarter; and                (2)  the name and address of each recipient of the   cigarettes.          Sec. 154.201.  RECORD OF PURCHASE OR RECEIPT.  Each   distributor, wholesaler, bonded agent, interstate warehouse, and   export warehouse shall keep records at each place of business of all   cigarettes purchased or received, including records of those   cigarettes for which no tax is due under federal law.  Each retailer   shall keep records at a single commercial business location, which   the retailer shall designate as its principal place of business in   this state, of all cigarettes purchased and received.  These   records must include:                (1)  the name and address of the shipper or carrier and   the mode of transportation;                (2)  all shipping records or copies of records,   including invoices, bills of lading, waybills, freight bills, and   express receipts;                (3)  the date and the name of the place of origin of the   cigarette shipment;                (4)  the date and the name of the place of arrival of   the cigarette shipment;                (5)  a statement of the number, kind, and price paid for   cigarettes, including cigarettes in stamped and unstamped   packages;                (6)  the name, address, permit number, and tax   identification number of the seller;                (7)  in the case of a distributor, copies of the customs   certificates required by 19 U.S.C. Section 1681a(c), as amended,   for all cigarettes imported into the United States to which the   distributor has affixed a tax stamp; and                (8)  any other information required by rules of the   comptroller.          Sec. 154.203.  REPORT OF SALE OR USE.  (a)  Each interstate   warehouse, distributor, and wholesaler shall keep at each place of   business in this state records of each sale, distribution,   exchange, or use of cigarettes whether taxed under this chapter or   not.  Each interstate warehouse, distributor, and wholesaler shall   prepare and retain an original invoice for each transaction   involving cigarettes.  Each interstate warehouse, distributor, or   wholesaler shall keep any supporting documentation, including   bills of lading, showing shipment and receipt used in preparing the   invoices at the place of business of the interstate warehouse,    distributor, or wholesaler.  The interstate warehouse,    distributor, or wholesaler shall prepare and deliver a duplicate   invoice to the purchaser.          (b)  The records for each sale, distribution, exchange, or   use of cigarettes must show:                (1)  the purchaser's name and address, permit number,   or tax identification number;                (2)  the method of delivery and the name of the common   carrier or other person delivering the cigarettes;                (3)  the date, number, and kind of cigarettes in   stamped packages sold, distributed, exchanged, or used; and                (4)  the date, number, and kind of cigarettes in   unstamped packages sold, distributed, exchanged, or used.          (c)  Upon request by the comptroller, each interstate   warehouse shall provide to the comptroller copies of periodic   cigarette reports filed with each state into which the interstate   warehouse sells cigarettes and copies of the PACT Act report   required by 15 U.S.C. 376.          Sec. 154.501.  PENALTIES.  (a)  A person violates this   chapter if the person:                (1)  is a distributor, wholesaler, manufacturer,   export warehouse, importer, bonded agent, interstate warehouse,    manufacturer's representative, or retailer and fails to keep   records required by this chapter;                (2)  engages in the business of a bonded agent,   interstate warehouse, distributor, wholesaler, manufacturer,   export warehouse, importer, or retailer without a valid permit;                (3)  is a distributor, wholesaler, manufacturer,   export warehouse, importer, bonded agent, interstate warehouse, or   retailer and fails to make a report or makes a false or incomplete   report or application required by this chapter to the comptroller;   or                (4)  is a person affected by this chapter and fails or   refuses to abide by or violates a provision of this chapter or a   rule adopted by the comptroller under this chapter.          (b)  A person who violates this section shall pay to the   state a penalty of not more than $2,000 for each violation.          (c)  Each day on which a violation occurs is a separate   offense.            (d)  The attorney general shall bring a suit to recover   penalties under this section.          (e)  A suit under this section may be brought in a court of   competent jurisdiction in Travis County or in any court having   jurisdiction.          Sec. 154.503.  POSSESSION IN QUANTITIES LESS THAN 10,000.     (a)  Except as provided by Sections 154.026(b), 154.041(f), and   154.042, a person commits an offense if the person possesses   unstamped cigarettes in quantities less than 10,000.          (b)  This section does not prohibit transportation of   cigarettes by a common carrier.          Sec. 154.509.  PERMITS.  A person commits an offense if the   person acting:                (1)  as a distributor, interstate warehouse,    wholesaler, or retailer, receives or possesses cigarettes without   having a valid permit;                (2)  as a distributor, interstate warehouse,    wholesaler, or retailer, receives or possesses cigarettes without   having a permit posted where it can be easily seen by the public;                (3)  as a distributor, interstate warehouse, or   wholesaler, does not deliver an invoice to the purchaser as   required by Section 154.203;                (4)  as a distributor, interstate warehouse,   wholesaler, or retailer, sells cigarettes without having a valid   permit; or                (5)  as a bonded agent, interstate warehouse, or export   warehouse, stores, distributes, or delivers cigarettes in   unstamped packages without having a valid permit.          Sec. 154.511.  TRANSPORTATION OF CIGARETTES.  A person,   other than a common carrier, commits an offense if the person:                (1)  knowingly transports cigarettes without a stamp   affixed to each individual package, except as provided by Section   154.024(a) or Section 154.152(c);                (2)  wilfully refuses to stop a motor vehicle operated   to transport cigarettes after a request to stop from an authorized   person; or                (3)  while transporting cigarettes refuses to permit a   complete inspection of the cargo by an authorized person.          Sec. 154.515.  POSSESSION IN QUANTITIES OF 10,000 OR MORE.     (a)  Except as provided by Sections 154.026(b), 154.041(f), and   154.042, a person commits an offense if the person possesses   unstamped cigarettes in quantities of 10,000 or more.          (b)  This section does not prohibit transportation of   cigarettes by a common carrier.          Sec. 155.001.  DEFINITIONS.  In this chapter:                (1)  "Bonded agent" means a person in this state who is   a third-party agent of a manufacturer outside this state and who   receives tobacco products in interstate commerce and stores the   tobacco products for distribution or delivery to distributors under   orders from the manufacturer.                (2)  "Cigar" means a roll of fermented tobacco that is   wrapped in tobacco and the main stream of smoke from which produces   an alkaline reaction to litmus paper.                (3)  "Commercial business location" means the entire   premises occupied by a permit applicant or a person required to hold   a permit under this chapter.                (4)  "Common carrier" means a motor carrier registered   under Chapter 643, Transportation Code, or a motor carrier   operating under a certificate issued by the Interstate Commerce   Commission or a successor agency to the Interstate Commerce   Commission.                (5)  "Consumer" means a person who possesses tobacco   products for personal consumption.                (6)  "Distributor" means a person who:                      (A)  receives untaxed tobacco products for the   purpose of making a first sale in this state from a manufacturer   outside the state or within the state or otherwise brings or causes   to be brought into this state untaxed tobacco products for sale,   use, or consumption;                      (B)  manufactures or produces tobacco products;   or                      (C)  is an importer.                (6-a)  "Engage in business" means, in relation to   tobacco products, engaging by a person, either directly or through   a representative, in any of the following activities:                      (A)  selling tobacco products in or into this   state;                      (B)  using a warehouse or another location to   store tobacco products; or                      (C)  otherwise conducting through a physical   presence tobacco product-related business in this state.                (7)  "Export warehouse" means a person in this state   who receives untaxed tobacco products from manufacturers and stores   the tobacco products for the purpose of making sales to authorized   persons for resale, use, or consumption outside the United States.                (8)  "First sale" means, except as otherwise provided   by this chapter:                      (A)  the first transfer of possession in   connection with a purchase, sale, or any exchange for value of   tobacco products in or into this state, which:                            (i)  includes the sale of tobacco products   by:                                  (a)  a distributor in or outside this   state to a distributor, wholesaler, or retailer in this state; and                                  (b)  a manufacturer in this state who   transfers the tobacco products in this state; and                            (ii)  does not include:                                  (a)  the sale of tobacco products by a   manufacturer outside this state to a distributor in this state;   [or]                                  (b)  the transfer of tobacco products   from a manufacturer outside this state to a bonded agent in this   state; or                                  (c)  the sale of tobacco products from   a manufacturer, bonded agent, distributor, or importer to an   interstate warehouse in this state;                       (B)  the first use or consumption of tobacco   products in this state; or                      (C)  the loss of tobacco products in this state   whether through negligence, theft, or other unaccountable loss.                (9)  "Importer" means a person who ships, transports,   or imports into this state tobacco products manufactured or   produced outside the United States for the purpose of making a first   sale in this state.                (9-a)  "Interstate warehouse" means a person in this   state who receives untaxed tobacco products from a manufacturer,   bonded agent, importer, or distributor and stores the tobacco   products exclusively for an interstate warehouse transaction.                (9-b)  "Interstate warehouse transaction" means the   sale or delivery from an interstate warehouse to a person in another   state who is licensed or permitted by the other state to pay the   state's excise tax on tobacco products as may be required.                (10)  "Manufacturer" means a person who manufactures,   fabricates, or assembles tobacco products, or causes or arranges   for the manufacture, fabrication, or assembly of tobacco products,   for sale or distribution.                (11)  "Manufacturer's representative" means a person   employed by a manufacturer to sell or distribute the manufacturer's   tobacco products for which the tax imposed under this chapter has   been paid.                (12)  "Permit holder" means a bonded agent, interstate   warehouse, distributor, wholesaler, manufacturer, importer, export   warehouse, or retailer who obtains a permit under Section 155.041.                (13)  "Place of business" means:                      (A)  a commercial business location where tobacco   products are sold;                      (B)  a commercial business location where tobacco   products are kept for sale or consumption or otherwise stored;                      (C)  a vehicle from which tobacco products are   sold; or                      (D)  a vending machine from which tobacco products   are sold.                (13-a)  "Raw tobacco" means any part of the tobacco   plant, including the tobacco leaf or stem, that is harvested from   the ground and is not a tobacco product as the term is defined in   this chapter.                (14)  "Retailer" means a person who engages in the   business of selling tobacco products to consumers and includes the   owner of a vending machine.                (15)  "Tobacco product" means:                      (A)  a cigar;                      (B)  smoking tobacco, including granulated,   plug-cut, crimp-cut, ready-rubbed, and any form of tobacco suitable   for smoking in a pipe or as a cigarette;                      (C)  chewing tobacco, including Cavendish, Twist,   plug, scrap, and any kind of tobacco suitable for chewing;                      (D)  snuff or other preparations of pulverized   tobacco; or                      (E)  an article or product that is made of tobacco   or a tobacco substitute and that is not a cigarette or an   e-cigarette as defined by Section 161.081, Health and Safety Code.                (16)  "Wholesaler" means a person, including a   manufacturer's representative, who sells or distributes tobacco   products in this state for resale but who is not a distributor or   interstate warehouse.          Sec. 155.041.  PERMITS.  (a)  A person may not engage in   business as a distributor, wholesaler, bonded agent, interstate   warehouse, manufacturer, export warehouse, importer, or retailer   unless the person has applied for and received the applicable   permit from the comptroller.          (b)  Each distributor, wholesaler, bonded agent, interstate   warehouse, manufacturer, export warehouse, importer, or retailer   shall obtain a permit for each place of business owned or operated   by the distributor, wholesaler, bonded agent, interstate   warehouse, manufacturer, export warehouse, importer, or retailer.          (c)  The comptroller shall prescribe the form and content of   an application for a permit and shall furnish the form on request of   an applicant.          (d)  The applicant shall accurately complete all information   required by the application and provide the comptroller with   additional information the comptroller considers necessary.          (e)  The comptroller may require each corporation,   association, joint venture, syndicate, partnership, or   proprietorship to furnish financial information regarding the   applicant and to provide the identity of each officer, director,   stockholder owning 10 percent or more of the outstanding stock,   partner, member, owner, or managing employee.          (f)  Each distributor, wholesaler, and retailer that applies   for a permit to sell tobacco products from a vehicle must provide   the make, model, vehicle identification number, registration   number, and any other information required by the comptroller.          (g)  All financial information provided under this section   is confidential and not subject to Chapter 552, Government Code.          (h)  Permits for engaging in business as a distributor,   wholesaler, bonded agent, interstate warehouse, manufacturer,   export warehouse, importer, or retailer shall be governed   exclusively by the provisions of this code.          (i)  A person may not hold a Texas distributor permit and an   interstate warehouse permit at the same location.          Sec. 155.0415.  SALES:  PERMIT HOLDERS AND NONPERMIT   HOLDERS.  (a)  Except for retail sales to consumers, tobacco   products may only be sold or distributed by and between permit   holders as provided by this section.          (b)  A person who is not a permit holder may not sell or   distribute tobacco products on which a tax of more than $50 has been   paid or is due.          (c)  A manufacturer outside this state who is not a permitted   distributor may sell tobacco products only to a permitted   distributor or a permitted interstate warehouse.          (d)  A permitted distributor may sell tobacco products only   to a permitted distributor, wholesaler, or retailer.  A permitted   distributor who manufactures or produces tobacco products in this   state may sell such tobacco products manufactured or produced to a   permitted interstate warehouse.          (e)  A permitted importer may sell tobacco products only to a   permitted interstate warehouse, permitted distributor, wholesaler,   or retailer.          (f)  A permitted wholesaler may sell tobacco products only to   a permitted interstate warehouse, permitted distributor,   wholesaler, or retailer.          (g)  A permitted retailer may sell tobacco products only to   the consumer and may purchase tobacco products only from a   permitted distributor or wholesaler in this state.          (h)  A permitted export warehouse may sell tobacco products   only to persons authorized to sell or consume untaxed tobacco   products outside the United States.          (i)  A manufacturer's representative may sell tobacco   products only to a permitted distributor, wholesaler, or retailer.          (j)  A permitted interstate warehouse may sell tobacco   products only in an interstate warehouse transaction.  No   intrastate sale of tobacco products by an interstate warehouse   shall take place without written authorization by the comptroller.          Sec. 155.048.  ISSUANCE OF PERMITS.  (a)  The comptroller   shall issue a permit to an interstate warehouse, [a] distributor,   wholesaler, bonded agent, manufacturer, importer, or retailer if   the comptroller:                (1)  has received an application and fee, if required;                (2)  does not reject the application and deny the   permit under Section 155.0481; and                (3)  determines that issuing the permit will not   jeopardize the administration and enforcement of this chapter.          (b)  The permit shall be issued for a designated place of   business, except as provided by Section 155.053.          (c)  The permits are nonassignable.          (d)  The permit must indicate the type of permit that it is   and authorize the sale of tobacco products in this state.  The   permit must show that it is revocable and shall be forfeited or   suspended if the conditions of issuance, provisions of this   chapter, or rules of the comptroller are violated.          Sec. 155.049.  PERMIT YEAR; FEES.  (a)  A permit required by   this chapter expires on the last day of February of each year,   except the retailer's permit required by Section 155.041 expires on   the last day of May of each even-numbered year.          (b)  An application for a permit required by this chapter   must be accompanied by a fee of:                (1)  $300 for a bonded agent's permit;                (2)  $300 for an interstate warehouse's permit;                (3) [(2)]  $300 for a distributor's permit;                (4) [(3)]  $200 for a wholesaler's permit;                (5) [(4)]  $15 for each permit for a vehicle if the   applicant is also applying for a permit as a bonded agent,   distributor, or wholesaler or has received a current permit from   the comptroller under Sections 155.041 and 155.048; and                (6) [(5)]  $180 for a retailer's permit.          (c)  A fee is not required for an export warehouse permit.          (d)  For a new or renewal permit required by Section 155.041,   the comptroller shall prorate the fee according to the number of   months remaining during the calendar year that the permit is to be   in effect.          (e)  A person who does not obtain a permit each year in a   timely manner must pay a late fee of $50 in addition to the   application fee for the permit.          (f)  If at the date of issuance a permit will expire within   three months, the comptroller may collect the prorated permit fee   or the fee for a current year and, with the consent of the permit   holder, may collect the fee for the next permit year and issue a   permit or permits for both periods, as applicable.          (g)  A person issued a permit for a place of business that   permanently closes before the permit expiration date is not   entitled to a refund of the permit fee.          Sec. 155.058.  REVENUE.  (a)  Except as provided by   Subsection (b), revenue from the sale of permits to interstate   warehouses, distributors, wholesalers, and bonded agents is   allocated in the same manner that other revenue is allocated by   Subchapter H.          (b)  Revenue from the sale of retailer's permits shall be   deposited to the general revenue fund and may be appropriated only   as provided by this section.  The money may be appropriated first to   the comptroller for administration of licensing of retailers under   this chapter or Chapter 154.          (c)  If, after any appropriation is made under Subsection   (b), revenue remains from the sale of retailer's permits, the   remaining money may be appropriated to the comptroller for   administration and enforcement of Subchapters H, K, and N, Chapter   161, Health and Safety Code, and to the Texas Department of Health,   for the administration and enforcement of Section 161.253, Health   and Safety Code.          (d)  If, after any appropriation is made under Subsections   (b) and (c), revenue remains from the sale of retailer's permits,   the remaining money may be appropriated to the Texas Department of   Health to administer the commissioner of public health's   responsibilities under Section 161.301, Health and Safety Code.          (e)  If, after any appropriation is made under Subsections   (b), (c), and (d), revenue remains from the sale of retailer's   permits, the remaining money may be appropriated to the appropriate   entity to administer that entity's responsibilities under Section   161.302, Health and Safety Code.          Sec. 155.101.  RECORD OF PURCHASE OR RECEIPT.  Each   interstate warehouse, distributor, wholesaler, bonded agent, and   export warehouse shall keep records at each place of business of all   tobacco products purchased or received.  Each retailer shall keep   records at a single commercial business location, which the   retailer shall designate as its principal place of business in the   state, of all tobacco products purchased and received.  These   records must include the following, except that Subdivision (7)   applies to distributors only and Subdivision (8) applies only to   the purchase or receipt of tobacco products other than cigars:                (1)  the name and address of the shipper or carrier and   the mode of transportation;                (2)  all shipping records or copies of records,   including invoices, bills of lading, waybills, freight bills, and   express receipts;                (3)  the date and the name of the place of origin of the   tobacco product shipment;                (4)  the date and the name of the place of arrival of   the tobacco product shipment;                (5)  a statement of the number, kind, and price paid for   the tobacco products;                (6)  the name, address, permit number, and tax   identification number of the seller;                (7)  the manufacturer's list price for the tobacco   products;                (8)  the net weight as listed by the manufacturer for   each unit; and                (9)  any other information required by rules of the   comptroller.          Sec. 155.102.  REPORT OF SALE OR USE.  (a)  Each interstate   warehouse, distributor, and wholesaler shall keep at each place of   business in this state records of each sale, distribution,   exchange, or use of tobacco products whether taxed under this   chapter or not.  Each interstate warehouse, distributor, and   wholesaler shall prepare and retain an original invoice for each   transaction involving tobacco products.  Each interstate   warehouse, distributor, or wholesaler shall keep any supporting   documentation, including bills of lading, showing shipment and   receipt used in preparing the invoices at the place of business of   the distributor or wholesaler.  The interstate warehouse,    distributor, or wholesaler shall prepare and deliver a duplicate   invoice to the purchaser.          (b)  The records for each sale, distribution, exchange, or   use of tobacco products must show:                (1)  the purchaser's name and address, permit number,   or tax identification number;                (2)  the method of delivery and the name of the common   carrier or other person delivering the tobacco products;                (3)  the date, amount, and type of tobacco products   sold, distributed, exchanged, or used;                (4)  the price received for the tobacco products;                (5)  the number and kind of tobacco products on which   the tax has been paid; and                (6)  for sales from a manufacturer to a distributor or   interstate warehouse, the manufacturer's list price for the tobacco   products.          (c)  In addition to the information required under   Subsection (b), the records for each sale, distribution, exchange,   or use of tobacco products other than cigars must show the net   weight as listed by the manufacturer for each unit.          (d)  Upon request by the comptroller, each interstate   warehouse shall provide to the comptroller copies of periodic   tobacco product reports filed with each state into which the   interstate warehouse sells tobacco products and copies of the PACT   Act report required by 15 U.S.C. 376.          Sec. 155.201.  PENALTIES.  (a)  A person violates this   chapter if the person:                (1)  is a distributor, wholesaler, manufacturer,   export warehouse, importer, bonded agent, interstate warehouse,    manufacturer's representative, or retailer and fails to keep   records required by this chapter;                (2)  engages in the business of a bonded agent,   interstate warehouse, distributor, wholesaler, manufacturer,   export warehouse, importer, or retailer without a valid permit;                (3) is a distributor, wholesaler, manufacturer, export   warehouse, importer, bonded agent, interstate warehouse, or   retailer and fails to make a report required by this chapter to the   comptroller or makes a false or incomplete report or application   required by this chapter to the comptroller; or                (4)  is a person affected by this chapter and fails or   refuses to abide by or violates a provision of this chapter or a   rule adopted by the comptroller under this chapter.          (b)  A person who violates this chapter shall pay to the   state a penalty of not more than $2,000 for each violation.          (c)  A separate offense is committed each day on which a   violation occurs.          (d)  The attorney general shall bring suits to recover   penalties under this section.          (e)  A suit under this section may be brought in a court of   competent jurisdiction in Travis County or in any court having   jurisdiction.          Sec. 155.207.  PERMITS.  A person commits an offense if the   person acting:                (1)  as a distributor, interstate warehouse,    wholesaler, or retailer, receives or possesses tobacco products   without having a valid permit;                (2)  as a distributor, interstate warehouse,    wholesaler, or retailer, receives or possesses tobacco products   without having a permit posted where it can be easily seen by the   public;                (3)  as a distributor, interstate warehouse, or   wholesaler, does not deliver an invoice to the purchaser as   required by Section 155.102;                (4)  as a distributor, interstate warehouse,   wholesaler, or retailer, sells tobacco products without having a   valid permit; or                (5)  as a bonded agent, interstate warehouse, or export   warehouse, stores, distributes, or delivers tobacco products on   which the tax has not been paid without having a valid permit.          SECTION 11.  (a) Section 161.124, Health and Safety Code, is   repealed.          (b)  The following provisions of the Tax Code are repealed:                (1)  Section 154.1142;                (2)  Section 154.1143;                (3)  Section 155.0592; and                (4)  Section 155.0593.          SECTION 12.  Section 161.0901, Health and Safety Code, as   added by this Act, applies only to a violation that occurs on or   after the effective date of this Act.  A violation that occurs   before the effective date of this Act is governed by the law in   effect on the date the violation occurred, and the former law is   continued in effect for that purpose.          SECTION 13.  (a) Notwithstanding Section 147.0051, Health   and Safety Code, as added by this Act, a person is not required to   hold a permit under that section to engage in business as a retailer   of e-cigarettes in this state until January 1, 2022.          (b)  The comptroller of public accounts shall prescribe the   form and content of an application for a permit under Section   147.0051, Health and Safety Code, as added by this Act, and begin   accepting applications for the permit not later than October 1,   2021.          SECTION 14.  This Act takes effect September 1, 2021.     * * * * *