Texas law sets out stringent rules for buying and selling tobacco products at the retail level. Violation of any of the following laws is a Class C misdemeanor. Additionally, retailers can be fined up to $1,000 or have their cigarette or tobacco products permits suspended. Permits can be revoked if retailers commit multiple offenses.

• Retailers and their employees cannot sell or give tobacco products or coupons for tobacco products to anyone under 18.
• Free samples of tobacco products cannot be given to anyone under the age of 18.
• Retailers must notify their employees of the consequences of violating the law within 72 hours of when the employee begins selling tobacco products. As proof that notice was given, employees must sign a statement that the law has been fully explained, that they understand the law, and that they agree to comply with the law. Retailers must have a signed statement for each employee, showing the employee's name, current address, social security number, and signature date.
• Retailers must keep the signed statement for 60 days after the individual leaves employment, and must present the form to law enforcement officers and state officials on demand.
• Retailers must conspicuously display warning signs to employees and customers about the tobacco law and the penalties for violations of the law. The Comptroller, on request, will provide the warning sign without charge to any person who sells cigarettes or tobacco products.
• In any business open to minors, tobacco vending machines cannot be placed in a manner that allows direct customer access.
• Customers cannot have direct access to cigarettes or other tobacco products. (This provision does not apply to a business that holds a package store permit issued under the Alcoholic Beverage Code or that is not open at any time to persons younger than 18, or to that part of a facility or business that is an enclosure designed to store cigars in a climate-controlled environment.)
• In addition to these Class C misdemeanors, other Texas laws also affect the buying and selling of cigarettes and other tobacco products.
• Cigarettes cannot be sold in packages containing fewer than 20 cigarettes; the fine for this violation is $100.
• Retailers and their employees must ask for identification from all customers under the age of 27 who try to buy cigarettes or tobacco products.
• Retailers are responsible for the training and supervision of employees regarding the tobacco laws.
• To ensure compliance with the law, retailers are subject to random inspection by state and local law enforcement officials.

Consequences for Clerks and Owners

• Penalty for a retailers (store clerks) that sell tobacco to a minor:
  - Class C misdemeanor: Fine up to $500
• Penalties for retailers for failure to adequately inform employees of the current law:
  - First Offense: $ 500
  - Second Offense: $ 750
  - Third Offense: $ 1000 or a 3-day permit suspension
  - Fourth Offense: Permit revocation - reapply in six months
• If the retailer has been found to have violated Section 161.082 (b), Health and Safety Code, on four or more previous and separate occasions at the same place of business during the preceding 12 months, the comptroller shall revoke the permit. A retailer whose permit has been revoked, may not apply for a retailer’s permit for the same place of business before the expiration of six months after the effective date of the revocation.
• Penalty for retailers selling tobacco without a valid permit :
  - Class A misdemeanor – A penalty up to $2000. Each day is a separate offense.
• Penalty for retailers selling cigarettes in packages of less than 20 (loosies): $100 fine.