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TITLE 34PUBLIC FINANCE
PART 1COMPTROLLER OF PUBLIC ACCOUNTS
CHAPTER 3TAX ADMINISTRATION
SUBCHAPTER JJCIGARETTE, E-CIGARETTE, AND TOBACCO PRODUCTS REGULATION
RULE §3.1207E-cigarette Retailer Permits

  (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.


Source Note: The provisions of this §3.1207 adopted to be effective April 22, 2024, 49 TexReg 2548

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