78S30391 KLA-D

By:  Shapleigh                                                    S.B. No. 17 



A BILL TO BE ENTITLED

AN ACT

relating to increasing the cigarette tax to provide child care 
through certain quality child-care 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)  Except as provided by Subsection (c), the [The] revenue 
remaining after the deductions for the purposes provided by Section 
154.602 [of this code] and allocation under Subsection (a) [of this 
section] is allocated to the general revenue fund.
	(c)  The first $50 of revenue remaining after the deductions 
for the purposes provided by Section 154.602 and allocation under 
Subsection (a) shall be deposited to the credit of an account in the 
general revenue fund to be established by the comptroller.  Money 
may be appropriated from the account only to the Texas Workforce 
Commission to provide child-care services for low-income families 
through providers who meet the Texas Rising Star Provider criteria 
described by 40 T.A.C. Section 809.15(b).
	SECTION 3.  This Act takes effect February 1, 2004.