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78R6623 DAK-D

By:  Pena                                                         H.B. No. 2022



A BILL TO BE ENTITLED

AN ACT

relating to the imposition of a tax on rolling paper intended to be 
used to smoke tobacco; providing penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subtitle E, Title 2, Tax Code, is amended by 
adding Chapter 165 to read as follows:

CHAPTER 165.  ROLLING PAPERS
	Sec. 165.001.  SALES TAX.  (a)  A tax is imposed on each sale 
at retail of a pack, box, or other container of rolling papers 
intended to be used to smoke a tobacco product.
	(b)  The tax rate is $1.00 for each pack, box, or container.            
	(c)  The tax imposed under this chapter is in addition to the 
tax imposed under Chapter 151.  The tax imposed by this chapter does 
not apply to a sale unless the tax imposed under Chapter 151 applies 
to the sale.
	Sec. 165.002.  APPLICATION OF OTHER PROVISIONS OF CODE.  (a)  
Except as provided by this chapter:
		(1)  the tax imposed by this chapter is administered, 
imposed, collected, and enforced in the same manner as the tax under 
Chapter 151 is administered, imposed, collected, and enforced; and
		(2)  the provisions of Chapter 151 applicable to the 
sales tax imposed under Subchapter C, Chapter 151, apply to the tax 
imposed by this chapter.
	(b)  A change in the law relating to the taxation of the sale 
of rolling papers intended to be used to smoke a tobacco product 
under Chapter 151 also applies to the tax imposed by this chapter.
	Sec. 165.003.  ALLOCATION OF REVENUE.  The revenue from 
taxes imposed by this chapter, other than penalties and interest, 
is allocated as follows:
		(1)  50 percent may be appropriated only to the Texas 
Commission on Alcohol and Drug Abuse to accomplish the purposes of 
that commission; and
		(2)  50 percent shall be deposited to the credit of the 
general revenue fund.
	SECTION 2.  (a)  This Act takes effect July 1, 2003, if it 
receives a vote of two-thirds of all the members elected to each 
house, as provided by Section 39, Article III, Texas Constitution, 
for an effective date before the 91st day after the last day of the 
legislative session.
	(b)  This Act takes effect October 1, 2003, if it does not 
receive a vote of two-thirds of all the members elected to each 
house, as provided by Section 39, Article III, Texas Constitution, 
for an effective date before the 91st day after the last day of the 
legislative session.