By: Uresti H.B. No. 194
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 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 tobacco cessation account in the general revenue
fund and may be appropriated only to the Texas Department of State
Health Services for programs to reduce the use of cigarettes and
tobacco products by children in this state;
(2) 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 children's health care account in
the general revenue fund and may be appropriated only to the Texas
Department of State Health Services to provide immunizations for
children and newborn hearing and screening services;
(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 of State Health
Services and Texas Department of Aging and Disability Services
accounts in the general revenue fund and may be appropriated only to
the Texas Department of State Health Services and Texas Department
of Aging and Disability Services to provide community mental health
and mental retardation services for children and respite care for
children with developmental delay;
(4) 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 Commission on Alcohol and
Drug Abuse account in the general revenue fund and may be
appropriated only to the Texas Commission on Alcohol and Drug Abuse
to provide youth treatment prevention services and rehabilitative
services for children;
(5) the next $10 of tax received per 1,000 cigarettes
for cigarettes weighing three pounds or less per thousand and the
next $10 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 Family and Protective
Services account in the general revenue fund and may be
appropriated only to the Texas Department of Family and Protective
Services to fund the entire exceptional items list for fiscal year
2006-07;
(6) the next $3 of tax received per 1,000 cigarettes
for cigarettes weighing three pounds or less per thousand and the
next $3 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 Family and Protective
Services account in the general revenue fund and may be
appropriated only to the Texas Department of Family and Protective
Services to fund new investigative workers and new prevention and
intervention services;
(7) the next $12.50 of tax received per 1,000
cigarettes for cigarettes weighing three pounds or less per
thousand and the next $12.50 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 Health and
Human Services Commission account in the general revenue fund and
may be appropriated only to the Texas Health and Human Services
Commission to restore Medicaid adult services for mental health,
podiatry, hearing aids and eyeglasses, restore Medicaid rates,
restore 5% base reduction, maintain Children's Health Insurance
Program caseload growth, Children's Health Insurance Program cost
growth and restore rates, and restore Children's Health Insurance
Program benefits;
(8) 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 Texas Department of Aging and
Disability Services account in the general revenue fund and may be
appropriated only to the Texas Department of Aging and Disability
Services to restore the five percent base reduction, restore rates
to 2003 levels, and transfer/fund a guardianship program from the
Texas Department of Family and Protective Services;
(9) 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 Texas Department of State Health Services account
in the general revenue fund and may be appropriated only to the
Texas Department of State Health Services to restore five percent
base reduction and to restore general revenue for substance abuse
to 2003 levels;
(10) the remaining $2 of tax received per 1,000
cigarettes for cigarettes weighing three pounds or less per
thousand and the next $2 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 Health and Human Services
Commission account in the general revenue fund and may be
appropriated only to the Texas Health and Human Services Commission
to partially restore medically needy Medicaid Program.
SECTION 3. This Act takes effect September 1, 2005.