84R20926 SCL-D
 
  By: Alvarado, Collier, Guillen, Isaac, H.B. No. 170
      Paddie
 
  Substitute the following for H.B. No. 170:
 
  By:  Crownover C.S.H.B. No. 170
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to regulation of the sale, distribution, possession, use,
  and advertising of e-cigarettes, cigarettes, and tobacco products;
  creating criminal offenses.
         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, E-CIGARETTES, 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)  "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.  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.
               (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, e-cigarettes, or tobacco
  products.
               (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 [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, E-CIGARETTES, 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, e-cigarette, 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, e-cigarette, 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, e-cigarettes, 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, e-cigarette, 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, e-cigarettes, 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, E-CIGARETTES, 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 an e-cigarette to someone who is younger than 27 years of age
  unless the person to whom the e-cigarette 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, e-cigarettes, 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, e-cigarettes, or
  tobacco products may be purchased.
         (b)  The sign must include the statement:
         PURCHASING OR ATTEMPTING TO PURCHASE E-CIGARETTES OR TOBACCO
  PRODUCTS BY A MINOR UNDER 18 YEARS OF AGE IS PROHIBITED BY
  LAW.  SALE OR PROVISION OF E-CIGARETTES 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, e-cigarettes, or
  tobacco products. The comptroller may provide the sign without
  charge to distributors of cigarettes, e-cigarettes, or tobacco
  products or wholesale dealers of cigarettes, e-cigarettes, or
  tobacco products in this state for distribution to persons who sell
  cigarettes, e-cigarettes, 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,
  e-cigarettes, or tobacco products that state law:
               (1)  prohibits the sale or distribution of cigarettes,
  e-cigarettes, 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,
  e-cigarettes, 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 e-cigarettes 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, e-cigarettes, or tobacco
  products for sale in a manner that permits a customer direct access
  to the cigarettes, e-cigarettes, or tobacco products; or
               (2)  install or maintain a vending machine containing
  cigarettes, e-cigarettes, 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, E-CIGARETTES, 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, e-cigarette, or
  tobacco product; or
               (2)  a coupon or other item that the recipient may use
  to receive a free or discounted cigarette, e-cigarette, or tobacco
  product or a sample cigarette, e-cigarette, 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, e-cigarette, or tobacco product or a sample cigarette,
  e-cigarette, 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, e-cigarette, or tobacco
  product or a sample cigarette, e-cigarette, or tobacco product may
  not be redeemable through mail or courier delivery.
         SECTION 13.  Subchapter H, Chapter 161, Health and Safety
  Code, is amended by adding Section 161.0875 to read as follows:
         Sec. 161.0875.  SALE OF E-CIGARETTE NICOTINE CONTAINERS.
  (a) A person may not sell or cause to be sold a container that
  contains liquid with nicotine and that is an accessory for an
  e-cigarette unless:
               (1)  the container satisfies the child-resistant
  effectiveness standards under 16 C.F.R. Section 1700.15(b)(1) when
  tested in accordance with the method described by 16 C.F.R. Section
  1700.20; or
               (2)  the container is a cartridge that is prefilled and
  sealed by the manufacturer and is not intended to be opened by a
  consumer.
         (b)  If the federal government adopts standards for the
  packaging of a container described by Subsection (a), a person who
  complies with those standards is considered to be in compliance
  with this section.
         SECTION 14.  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 and Subchapter R in a manner that can
  reasonably be expected to reduce the extent to which cigarettes,
  e-cigarettes, and tobacco products are sold or distributed,
  including by delivery sale,  to persons who are younger than 18
  years of age. At least annually, random unannounced inspections
  shall be conducted at various locations where cigarettes,
  e-cigarettes, and tobacco products are sold or distributed,
  including by delivery sale, to ensure compliance with this
  subchapter and Subchapter R. The comptroller shall rely, to the
  fullest extent possible, on local law enforcement agencies to
  enforce this subchapter and Subchapter R.
         (d)  The use of a person younger than 18 years of age to act
  as a minor decoy to test compliance with this subchapter and
  Subchapter R 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 and Subchapter R;
               (2)  at the time of the inspection, order, or delivery,
  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, e-cigarettes, 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 or any person who delivers 
  cigarettes, e-cigarettes, or tobacco products; and
               (5)  the minor decoy answers truthfully any questions
  about the minor's age at the time of the inspection, order, or
  delivery.
         SECTION 15.  Subchapter H, Chapter 161, Health and Safety
  Code, is amended by adding Section 161.0902 to read as follows:
         Sec. 161.0902.  E-CIGARETTE REPORT. (a) Not later than
  January 5th of each odd-numbered year, the department shall report
  to the governor, lieutenant governor, and speaker of the house of
  representatives on the status of the use of e-cigarettes in this
  state.
         (b)  The report must include, at a minimum:
               (1)  a baseline of statistics and analysis regarding
  retail compliance with this subchapter and Subchapter R;
               (2)  a baseline of statistics and analysis regarding
  illegal e-cigarette sales, including:
                     (A)  sales to minors;
                     (B)  enforcement actions concerning minors; and
                     (C)  sources of citations;
               (3)  e-cigarette controls and initiatives by the
  department, or any other state agency, including an evaluation of
  the effectiveness of the controls and initiatives;
               (4)  the future goals and plans of the department to
  decrease the use of e-cigarettes;
               (5)  the educational programs of the department and the
  effectiveness of those programs; and
               (6)  the incidence of use of e-cigarettes by regions in
  this state, including use of e-cigarettes by ethnicity.
         (c)  The department may include the report required by this
  section with a similar report for cigarettes or tobacco products
  required by law.
         SECTION 16.  The heading to Subchapter N, Chapter 161,
  Health and Safety Code, is amended to read as follows:
  SUBCHAPTER N. E-CIGARETTE AND TOBACCO USE BY MINORS
         SECTION 17.  Section 161.251, Health and Safety Code, is
  amended by adding Subdivision (1-a) to read as follows:
               (1-a)  "E-cigarette" has the meaning assigned by
  Section 161.081.
         SECTION 18.  The heading to Section 161.252, Health and
  Safety Code, is amended to read as follows:
         Sec. 161.252.  POSSESSION, PURCHASE, CONSUMPTION, OR
  RECEIPT OF CIGARETTES, E-CIGARETTES, OR TOBACCO PRODUCTS BY MINORS
  PROHIBITED.
         SECTION 19.  Sections 161.252(a) and (b), Health and Safety
  Code, are amended to read as follows:
         (a)  An individual who is younger than 18 years of age
  commits an offense if the individual:
               (1)  possesses, purchases, consumes, or accepts a
  cigarette, e-cigarette, or tobacco product; or
               (2)  falsely represents himself or herself to be 18
  years of age or older by displaying proof of age that is false,
  fraudulent, or not actually proof of the individual's own age in
  order to obtain possession of, purchase, or receive a cigarette,
  e-cigarette, or tobacco product.
         (b)  It is an exception to the application of this section
  that the individual younger than 18 years of age possessed the
  cigarette, e-cigarette, or tobacco product in the presence of:
               (1)  an adult parent, a guardian, or a spouse of the
  individual; or
               (2)  an employer of the individual, if possession or
  receipt of the e-cigarette or tobacco product is required in the
  performance of the employee's duties as an employee.
         SECTION 20.  The heading to Section 161.253, Health and
  Safety Code, is amended to read as follows:
         Sec. 161.253.  E-CIGARETTE AND TOBACCO AWARENESS PROGRAM;
  COMMUNITY SERVICE.
         SECTION 21.  Sections 161.253(a), (b), (c), (d), and (e),
  Health and Safety Code, are amended to read as follows:
         (a)  On conviction of an individual for an offense under
  Section 161.252, the court shall suspend execution of sentence and
  shall require the defendant to attend an e-cigarette and [a]
  tobacco awareness program approved by the commissioner. The court
  may require the parent or guardian of the defendant to attend the
  e-cigarette and tobacco awareness program with the defendant.
         (b)  On request, an e-cigarette and [a] tobacco awareness
  program may be taught in languages other than English.
         (c)  If the defendant resides in a rural area of this state or
  another area of this state in which access to an e-cigarette and [a]
  tobacco awareness program is not readily available, the court shall
  require the defendant to perform eight to 12 hours of e-cigarette-
  and tobacco-related community service instead of attending the
  e-cigarette and tobacco awareness program.
         (d)  The e-cigarette and tobacco awareness program and the
  e-cigarette- and tobacco-related community service are remedial
  and are not punishment.
         (e)  Not later than the 90th day after the date of a
  conviction under Section 161.252, the defendant shall present to
  the court, in the manner required by the court, evidence of
  satisfactory completion of the e-cigarette and tobacco awareness
  program or the e-cigarette- and tobacco-related community service.
         SECTION 22.  Section 161.255(a), Health and Safety Code, is
  amended to read as follows:
         (a)  An individual convicted of an offense under Section
  161.252 may apply to the court to have the conviction expunged.  If
  the court finds that the individual satisfactorily completed the
  e-cigarette and tobacco awareness program or e-cigarette- and
  tobacco-related community service ordered by the court, the court
  shall order the conviction and any complaint, verdict, sentence, or
  other document relating to the offense to be expunged from the
  individual's record and the conviction may not be shown or made
  known for any purpose.
         SECTION 23.  Section 161.256, Health and Safety Code, is
  amended to read as follows:
         Sec. 161.256.  JURISDICTION OF COURTS. A justice court or
  municipal court may exercise jurisdiction over any matter in which
  a court under this subchapter may:
               (1)  impose a requirement that a defendant attend an
  e-cigarette and [a] tobacco awareness program or perform
  e-cigarette- and tobacco-related community service; or
               (2)  order the suspension or denial of a driver's
  license or permit.
         SECTION 24.  The heading to Subchapter O, Chapter 161,
  Health and Safety Code, is amended to read as follows:
  SUBCHAPTER O.  PREVENTION OF TOBACCO AND E-CIGARETTE USE BY MINORS
         SECTION 25.  The heading to Section 161.301, Health and
  Safety Code, is amended to read as follows:
         Sec. 161.301.  TOBACCO AND E-CIGARETTE USE PUBLIC AWARENESS
  CAMPAIGN.
         SECTION 26.  Section 161.301(a), Health and Safety Code, as
  amended by S.B. 219, Acts of the 84th Legislature, Regular Session,
  2015, is amended to read as follows:
         (a)  The department shall develop and implement a public
  awareness campaign designed to reduce the [tobacco] use by minors
  in this state of tobacco and e-cigarettes as defined by Section
  161.081. The campaign may use advertisements or similar media to
  provide educational information about tobacco and e-cigarette use.
         SECTION 27.  Section 161.302(a), Health and Safety Code, is
  amended to read as follows:
         (a)  The entity administering Section 161.301 shall also
  develop and implement a grant program to support youth groups that
  include as a part of the group's program components related to
  reduction of [tobacco] use by the group's members of tobacco and
  e-cigarettes as defined by Section 161.081.
         SECTION 28.  Subchapter P, Chapter 161, Health and Safety
  Code, is amended by adding Section 161.356 to read as follows:
         Sec. 161.356.  COMPLIANCE WITH FEDERAL LAW. A person is
  considered to have complied with this subchapter if the person
  complies with Subchapter IX of 21 U.S.C. Chapter 9 and rules adopted
  under that subchapter.
         SECTION 29.  The heading to Subchapter R, Chapter 161,
  Health and Safety Code, is amended to read as follows:
  SUBCHAPTER R.  DELIVERY SALES OF CIGARETTES AND E-CIGARETTES
         SECTION 30.  Section 161.451, Health and Safety Code, is
  amended by amending Subdivisions (1) and (3) and adding Subdivision
  (2-a) to read as follows:
               (1)  "Delivery sale" means a sale of cigarettes or
  e-cigarettes to a consumer in this state in which the purchaser
  submits the order for the sale by means of a telephonic or other
  method of voice transmission, by using the mails or any other
  delivery service, or through the Internet or another on-line
  service, or the cigarettes or e-cigarettes are delivered by use of
  the mails or another delivery service. A sale of cigarettes or
  e-cigarettes is a delivery sale regardless of whether the seller is
  located within or without this state. A sale of cigarettes or
  e-cigarettes not for personal consumption to a person who is a
  wholesale dealer or a retail dealer is not a delivery sale.
               (2-a)  "E-cigarette" has the meaning assigned by
  Section 161.081.
               (3)  "Shipping container" means a container in which
  cigarettes or e-cigarettes are shipped in connection with a
  delivery sale.
         SECTION 31.  Section 161.452, Health and Safety Code, is
  amended to read as follows:
         Sec. 161.452.  REQUIREMENTS FOR DELIVERY SALES. (a) A
  person may not make a delivery sale of cigarettes or e-cigarettes to
  an individual who is under the age prescribed by Section 161.082.
         (b)  A person taking a delivery sale order of cigarettes 
  shall comply with:
               (1)  the age verification requirements prescribed by
  Section 161.453;
               (2)  the disclosure requirements prescribed by Section
  161.454;
               (3)  the shipping requirements prescribed by Section
  161.455;
               (4)  the registration and reporting requirements
  prescribed by Section 161.456;
               (5)  the tax collection requirements prescribed by
  Section 161.457; and
               (6)  each law of this state that generally applies to
  sales of cigarettes that occur entirely within this state,
  including a law:
                     (A)  imposing a tax; or
                     (B)  prescribing a permitting or tax-stamping
  requirement.
         (c)  A person taking a delivery sale order of e-cigarettes
  shall comply with:
               (1)  the age verification requirements prescribed by
  Section 161.453;
               (2)  the disclosure requirements prescribed by Section
  161.454;
               (3)  the shipping requirements prescribed by Section
  161.455;
               (4)  the registration and reporting requirements
  prescribed by Section 161.456; and
               (5)  each law of this state that generally applies to
  sales of e-cigarettes that occur entirely within this state.
         SECTION 32.  Section 161.453, Health and Safety Code, is
  amended by adding Subsections (c) and (d) to read as follows:
         (c)  A person may not mail or ship e-cigarettes in connection
  with a delivery sale order unless before accepting a delivery sale
  order the person verifies that the prospective purchaser is at
  least 18 years of age through a commercially available database or
  aggregate of databases that is regularly used for the purpose of age
  and identity verification. After the order is accepted, the person
  must use a method of mailing or shipping that requires an adult
  signature.
         (d)  A retailer in this state that otherwise complies with
  applicable laws relating to retail sales and primarily sells
  e-cigarettes may comply with Subsection (c) by:
               (1)  verifying the age of the prospective purchaser
  with a commercially available database or a photocopy or other
  image of a government-issued identification bearing a photograph of
  the prospective purchaser and stating the date of birth or age of
  the prospective purchaser;
               (2)  obtaining a written statement signed by the
  prospective purchaser, under penalty of law, certifying the
  prospective purchaser's address and date of birth; and
               (3)  receiving payment for the delivery sale from the
  prospective purchaser by a credit card or debit card that has been
  issued in the prospective purchaser's name or by a check that is
  associated with a bank account in the prospective purchaser's name.
         SECTION 33.  Section 161.454, Health and Safety Code, is
  amended to read as follows:
         Sec. 161.454.  DISCLOSURE REQUIREMENTS. (a)  The notice
  required by Section 161.453(a)(3) for a delivery sale of cigarettes 
  must include a prominent and clearly legible statement that:
               (1)  cigarette sales to individuals who are below the
  age prescribed by Section 161.082 are illegal under state law;
               (2)  sales of cigarettes are restricted to those
  individuals who provide verifiable proof of age in accordance with
  Section 161.453; and
               (3)  cigarette sales are taxable under Chapter 154, Tax
  Code, and an explanation of how that tax has been or is to be paid
  with respect to the delivery sale.
         (b)  A delivery sale of an e-cigarette must include a
  prominent and clearly legible statement that:
               (1)  e-cigarette sales to individuals younger than the
  age prescribed by Section 161.082 are illegal under state law; and
               (2)  e-cigarette sales are restricted to individuals
  who provide verifiable proof of age in accordance with Section
  161.453.
         SECTION 34.  Section 161.455, Health and Safety Code, is
  amended by adding Subsection (a-1) and amending Subsection (b) to
  read as follows:
         (a-1)  A person who mails or ships e-cigarettes in connection
  with a delivery sale order shall include as part of the shipping
  documents a clear and conspicuous statement: "E-CIGARETTES: TEXAS
  LAW PROHIBITS SHIPPING TO INDIVIDUALS YOUNGER THAN 18 YEARS OF AGE
  AND REQUIRES PAYMENT OF ALL APPLICABLE TAXES."
         (b)  A person taking a delivery sale order who delivers the
  cigarettes or e-cigarettes without using a third-party delivery
  service shall comply with the delivery requirements prescribed by
  this subchapter that apply to a delivery service.
         SECTION 35.  Section 161.456, Health and Safety Code, is
  amended to read as follows:
         Sec. 161.456.  REGISTRATION AND REPORTING REQUIREMENTS. (a)
  A person may not make a delivery sale or ship cigarettes or
  e-cigarettes in connection with a delivery sale unless the person
  first files with the comptroller a statement that includes:
               (1)  the person's name and trade name; and
               (2)  the address of the person's principal place of
  business and any other place of business, and the person's
  telephone number and e-mail address.
         (b)  Except as provided by Subsection (d), not [Not] later
  than the 10th day of each month, each person who has made a delivery
  sale or shipped or delivered cigarettes or e-cigarettes in
  connection with a delivery sale during the previous month shall
  file with the comptroller a memorandum or a copy of the invoice that
  provides for each delivery sale:
               (1)  the name, address, telephone number, and e-mail
  address of the individual to whom the delivery sale was made;
               (2)  the brand or brands of the cigarettes or
  e-cigarettes that were sold; and
               (3)  the quantity of cigarettes or e-cigarettes that
  were sold.
         (c)  With respect to cigarettes, a [A] person who complies
  with 15 U.S.C. Section 376, as amended, is considered to have
  complied with this section.
         (d)  A person is exempt from the requirement of filing with
  the comptroller a memorandum or a copy of an invoice under
  Subsection (b) if, in the two years preceding the date the report is
  due, the person has not violated this subchapter and has not been
  reported under Section 161.090 to the comptroller as having
  violated Subchapter H.
         (e)  A person required to submit a memorandum or a copy of an
  invoice under Subsection (b) shall submit a memorandum or a copy of
  an invoice to the comptroller for each delivery sale of a cigarette
  or e-cigarette in the previous two years unless the person has
  previously submitted the memorandum or copy to the comptroller.
         (f)  A person shall maintain records of compliance with this
  section until at least the fourth anniversary of the date the record
  was prepared.
         SECTION 36.  Section 161.461(a), Health and Safety Code, is
  amended to read as follows:
         (a)  Cigarettes or e-cigarettes sold or that a person
  attempted to sell in a delivery sale that does not comply with this
  subchapter are forfeited to the state and shall be destroyed.
         SECTION 37.  Section 28.004(k), Education Code, is amended
  to read as follows:
         (k)  A school district shall publish in the student handbook
  and post on the district's Internet website, if the district has an
  Internet website:
               (1)  a statement of the policies adopted to ensure that
  elementary school, middle school, and junior high school students
  engage in at least the amount and level of physical activity
  required by Section 28.002(l);
               (2)  a statement of:
                     (A)  the number of times during the preceding year
  the district's school health advisory council has met;
                     (B)  whether the district has adopted and enforces
  policies to ensure that district campuses comply with agency
  vending machine and food service guidelines for restricting student
  access to vending machines; and
                     (C)  whether the district has adopted and enforces
  policies and procedures that prescribe penalties for the use of
  e-cigarettes, as defined by Section 38.006, and tobacco products by
  students and others on school campuses or at school-sponsored or
  school-related activities; and
               (3)  a statement providing notice to parents that they
  can request in writing their child's physical fitness assessment
  results at the end of the school year.
         SECTION 38.  Section 38.006, Education Code, is amended to
  read as follows:
         Sec. 38.006.  E-CIGARETTES AND TOBACCO PRODUCTS ON SCHOOL
  PROPERTY. (a) In this section, "e-cigarette" has the meaning
  assigned by Section 161.081, Health and Safety Code.
         (b)  The board of trustees of a school district shall:
               (1)  prohibit smoking or using e-cigarettes or tobacco
  products at a school-related or school-sanctioned activity on or
  off school property;
               (2)  prohibit students from possessing e-cigarettes or
  tobacco products at a school-related or school-sanctioned activity
  on or off school property; and
               (3)  ensure that school personnel enforce the policies
  on school property.
         SECTION 39.  Section 48.01, Penal Code, is amended by
  amending Subsections (a), (c), (d), and (e) and adding Subsection
  (a-1) to read as follows:
         (a)  In this section, "e-cigarette" has the meaning assigned
  by Section 161.081, Health and Safety Code.
         (a-1)  A person commits an offense if the person [he] is in
  possession of a burning tobacco product, [or] smokes tobacco, or
  operates an e-cigarette in a facility of a public primary or
  secondary school or an elevator, enclosed theater or movie house,
  library, museum, hospital, transit system bus, [or] intrastate bus,
  [as defined by Section 541.201, Transportation Code,] plane, or
  train which is a public place.
         (c)  All conveyances and public places set out in Subsection
  (a-1) [(a) of Section 48.01] shall be equipped with facilities for
  extinguishment of smoking materials and it shall be a defense to
  prosecution under this section if the conveyance or public place
  within which the offense takes place is not so equipped.
         (d)  It is an exception to the application of Subsection
  (a-1) [(a)] if the person is in possession of the burning tobacco
  product, [or] smokes tobacco, or operates the e-cigarette 
  exclusively within an area designated for smoking tobacco or
  operating an e-cigarette or as a participant in an authorized
  theatrical performance.
         (e)  An area designated for smoking tobacco or operating an
  e-cigarette on a transit system bus or intrastate plane or train
  must also include the area occupied by the operator of the transit
  system bus, plane, or train.
         SECTION 40.  Sections 161.082(a) and 161.252(a), Health and
  Safety Code, as amended by this Act, and Section 48.01, Penal Code,
  as amended by this Act, apply 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 section, an offense was committed before October
  1, 2015, if any element of the offense occurred before that date.
         SECTION 41.  (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 42.  Except as otherwise provided by this Act, this
  Act takes effect October 1, 2015.