Texas § HS.161.0901 - DISCIPLINARY ACTION AGAINST CIGARETTE, E-CIGARETTE, AND TOBACCO PRODUCT RETAILERS

§ HS.161.0901. DISCIPLINARY ACTION AGAINST CIGARETTE, E-CIGARETTE, AND TOBACCO PRODUCT RETAILERS

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) for the first violation of this subchapter during the 24-month period preceding the violation at that place of business, the comptroller may require the permit holder to pay a fine in an amount not to exceed $1,000; (2) for the second violation of this subchapter during the 24-month period preceding the most recent violation at that place of business, the comptroller may require the permit holder to pay a fine in an amount not to exceed $2,000; and (3) for the third violation of this subchapter during the 24-month period preceding the most recent violation at that place of business, 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), for the fourth or a subsequent violation of this subchapter during the 24-month period preceding the most recent violation at that place of business, 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 (d) A permit holder whose permit has been revoked under this section may not apply for a permit for the same place of business before the expiration of six months after the effective date of the revocation.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 for a place of business but may not revoke the permit under Subsection (c) if the comptroller finds that: (1) the permit holder has not violated this subchapter more than seven times at the place of business in the 48-month period preceding the violation in question; (2) the permit holder 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 permit holder has not directly or indirectly encouraged the employees to violate the law. (f) The comptroller may adopt rules to implement this section. Added by Acts 2021, 87th Leg., R.S., Ch. 994 (S.B. 248 ), Sec. 4, eff. September 1, 2021.