Relating to prohibited signs, logos, and designs in advertising or marketing cigarettes, e-cigarettes, or other tobacco products; creating a criminal offense.

Contracts

Vendor Indemnification is mandatory. You must amend Master Service Agreements (MSAs) with distributors and manufacturers.

• Indemnity Clauses: Require vendors to indemnify the retailer for criminal fines and legal defense costs arising from Point of Sale (POS) materials they provide.
• Warranty of Compliance: Vendors must warrant that all provided signage complies with Texas Health and Safety Code Sec. 161.124.

Hiring/Training

Managerial Authority Protocols:

• Gatekeeping: Store managers must be trained to physically reject POS materials from delivery drivers that violate the "cartoon/food/celebrity" prohibition.
• Internal Creation: Strictly prohibit store-level employees from creating handwritten signs (e.g., chalkboards) that utilize prohibited imagery.

Reporting & Record-Keeping

Defensive Documentation:

• Refusal Logs: Implement a logbook to document instances where your staff rejected non-compliant marketing materials from vendors. This establishes a "good faith" defense in the event of a criminal charge.
• Audit Certificates: Create a sign-off sheet for District Managers to certify that a location has been "scrubbed" of prohibited imagery.

Fees & Costs

• Signage Replacement: Budget immediately for the removal and replacement of permanent fixtures (e.g., neon signs, window wraps) that contain prohibited imagery.
• Legal Defense Gap: Be advised that standard General Liability insurance excludes coverage for criminal acts. You must budget for potential out-of-pocket legal defense if charged.