78S10028 CBH-D
By: Naishtat H.B. No. 26
A BILL TO BE ENTITLED
AN ACT
relating to an increase in the cigarette tax and to the use of that
increase for certain health and human services programs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 154.021(b), Tax Code, is amended to read
as follows:
(b) The tax rates are:
(1) $70.50 [$20.50] per thousand on cigarettes
weighing three pounds or less per thousand; and
(2) the rate provided by Subdivision (1) plus $2.10
per thousand on cigarettes weighing more than three pounds per
thousand.
SECTION 2. Section 154.603, Tax Code, is amended to read as
follows:
Sec. 154.603. DISPOSITION OF REVENUE. (a) After the
deductions for the purposes provided by Section 154.602 [of this
code], the revenue remaining of the first $2 of tax received per
1,000 cigarettes for cigarettes weighing three pounds or less per
thousand and the first $4.10 per 1,000 cigarettes of the tax
received for cigarettes weighing more than three pounds per
thousand is allocated:
(1) 18.75 percent to the foundation school fund; and
(2) 81.25 percent to the general revenue fund.
(b) The revenue remaining after the deductions for the
purposes provided by Section 154.602 [of this code] and allocation
under Subsection (a) of the next $26 of tax received per 1,000
cigarettes for cigarettes weighing three pounds or less per
thousand and the next $26 per 1,000 cigarettes of the tax received
for cigarettes weighing more than three pounds per thousand [this
section] is allocated to the general revenue fund.
(c) The revenue remaining after the deductions for the
purposes provided by Section 154.602 and allocation under
Subsections (a) and (b) shall be deposited as follows:
(1) the next $2.50 of tax received per 1,000
cigarettes for cigarettes weighing three pounds or less per
thousand and the next $2.50 per 1,000 cigarettes of the tax received
for cigarettes weighing more than three pounds per thousand shall
be deposited to the credit of the tobacco cessation account in the
general revenue fund and may be appropriated only to the Texas
Department of Health for programs to reduce the use of cigarettes
and tobacco products in this state;
(2) the next $5 of tax received per 1,000 cigarettes
for cigarettes weighing three pounds or less per thousand and the
next $5 per 1,000 cigarettes of the tax received for cigarettes
weighing more than three pounds per thousand shall be deposited to
the credit of the trauma care account in the general revenue fund
and may be appropriated only to the Texas Department of Health for
programs to provide emergency medical services and trauma care in
this state;
(3) the next $1.50 of tax received per 1,000
cigarettes for cigarettes weighing three pounds or less per
thousand and the next $1.50 per 1,000 cigarettes of the tax received
for cigarettes weighing more than three pounds per thousand shall
be deposited to the credit of the Texas Department on Aging account
in the general revenue fund and may be appropriated only to the
Texas Department on Aging for programs to meet the needs of this
state's elderly population;
(4) the next $1 of tax received per 1,000 cigarettes
for cigarettes weighing three pounds or less per thousand and the
next $1 per 1,000 cigarettes of the tax received for cigarettes
weighing more than three pounds per thousand shall be deposited to
the credit of the Texas Cancer Registry account in the general
revenue fund and may be appropriated only to the Texas Department of
Health to administer the Texas Cancer Registry;
(5) the next $7.50 of tax received per 1,000
cigarettes for cigarettes weighing three pounds or less per
thousand and the next $7.50 per 1,000 cigarettes of the tax received
for cigarettes weighing more than three pounds per thousand shall
be deposited to the credit of the Texas Department of Health account
in the general revenue fund and may be appropriated only to the
Texas Department of Health for programs administered by the
department;
(6) the next $2.50 of tax received per 1,000
cigarettes for cigarettes weighing three pounds or less per
thousand and the next $2.50 per 1,000 cigarettes of the tax received
for cigarettes weighing more than three pounds per thousand shall
be deposited to the credit of the rural health care account in the
general revenue fund and may be appropriated only to the Texas
Department of Health for programs to improve access to primary and
preventive health care services in rural areas of this state;
(7) the next $7.50 of tax received per 1,000
cigarettes for cigarettes weighing three pounds or less per
thousand and the next $7.50 per 1,000 cigarettes of the tax received
for cigarettes weighing more than three pounds per thousand shall
be deposited to the credit of the children's health insurance
program account in the general revenue fund and may be appropriated
only to the Health and Human Services Commission for the child
health care program under Chapter 62, Health and Safety Code; and
(8) the remaining $15 of tax received per 1,000
cigarettes for cigarettes weighing three pounds or less per
thousand and the remaining $15 per 1,000 cigarettes of the tax
received for cigarettes weighing more than three pounds per
thousand shall be deposited to the credit of the medical assistance
account in the general revenue fund and may be appropriated only to
the Health and Human Services Commission for the medical assistance
program under Chapter 32, Human Resources Code.
SECTION 3. This Act takes effect November 1, 2003.