79R1248 DAK-D

By:  Shapleigh                                                    S.B. No. 97 



A BILL TO BE ENTITLED

AN ACT

relating to increases in the tax on cigarettes and to the allocation 
of those increases to 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)  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 $18.50 of tax received per 1,000 
cigarettes for cigarettes weighing three pounds or less per 
thousand and the next $18.50 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 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 September 1, 2005.