(3) To initiate a proceeding to summarily suspend 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 upon
receipt of the notice.
(4) 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.
(5) Government Code, Chapter 2001, (Administrative
Procedure), does not apply to a summary suspension under this section.
(6) Subsection (j) of this section governs the hearing
for final suspension or revocation of a permit under this section.
(j) Final suspension or revocation of permit.
(1) The comptroller may revoke or suspend a permit
holder's permit if the comptroller finds, after notice and the opportunity
for a hearing, that the permit holder violated a provision of this
section.
(2) If the comptroller intends to suspend or revoke
a permit, the comptroller shall provide the permit holder with written
notice that includes a statement:
(A) of the reason for the intended revocation or suspension;
and
(B) that the permit holder is entitled to a hearing
by the comptroller on the proposed suspension or revocation.
(3) 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.
(4) If the permit holder requests a hearing, the comptroller
will set a hearing date. The hearing on the revocation or suspension
of the permit holder's permit is treated in the same manner as a hearing
on the imposition of an administrative penalty for a violation of
Health and Safety Code, §161.0901 (Disciplinary Action Against
Cigarette, E-Cigarette, and Tobacco Product Retailers) and is governed
by §1.21 of this title (relating to Cigarette, E-cigarette, Cigar,
and Tobacco Tax Hearings).
(5) 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.
(6) 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.
(k) Penalties.
(1) A person violates the provisions in this section
if the person:
(A) engages in the business of an e-cigarette retailer
without a permit; or
(B) is a person who is subject to a provision of this
section and who violates the provision.
(2) A person who violates a provision of this section
shall pay to the state a penalty set by the comptroller of not more
than $2,000 for each violation.
(3) Each day on which a violation occurs is a separate
violation.
(4) The attorney general shall bring suit to recover
penalties under this subsection.
(5) A suit under this subsection may be brought in
Travis County or another county having jurisdiction.
(l) Failure to have a permit; offense.
(1) A person commits an offense if the person acts
as an e-cigarette retailer; and:
(A) receives or possesses e-cigarettes without having
a permit;
(B) receives or possesses e-cigarettes without having
a permit posted where it can be easily seen by the public; or
(C) sells e-cigarettes without a permit.
(2) An offense under this subsection is a Class A misdemeanor.
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