Amend CSSB 1811 (house committee printing) by adding the following appropriately numbered ARTICLE to the bill and renumbering the subsequent ARTICLES and SECTIONS of the bill accordingly:

ARTICLE ____. CIGARETTE TAX AND ALLOCATION OF REVENUE

SECTION ____.01.  Section 154.021(b), Tax Code, is amended to read as follows:

(b)  The tax rates are:

(1)  $123 [$70.50] 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 ____.02.  Section 154.053(a), Tax Code, is amended to read as follows:

(a)  The comptroller shall design and have printed or manufactured cigarette tax stamps. If the comptroller determines that it is necessary for the best enforcement of this chapter, the comptroller shall [may] change the design, color, [or] denomination, technology, or other feature of the stamps. The comptroller shall determine the quantity and the size, design, color, [or] denomination, technology, or other feature [and quantity] of stamps manufactured. The stamps shall be manufactured so that they may be easily and securely attached to an individual package of cigarettes. The comptroller may designate the method of identification for the stamps and shall award the contract for the printing or manufacturing to the person submitting the bid that will give the best protection to the state in enforcing this chapter.

SECTION ____.03.  Section 154.054(a), Tax Code, is amended to read as follows:

(a)  The comptroller may redeem unused cigarette tax stamps that were lawfully issued before a change in the stamps' design, color, [or] denomination, technology, or other feature [change].

SECTION ____.04.  Sections 154.058(a) and (d), Tax Code, are amended to read as follows:

(a)  On the effective date of a tax increase, each distributor, wholesaler, and retailer who has 2,000 or more cigarettes in packages stamped with stamps of an old design, color, [or] denomination, technology, or other feature shall immediately inventory the packages and any unused stamps of an old design, color, [or] denomination, technology, or other feature and file a report of the inventory with the comptroller.

(d)  This section does not affect the date payment is due for stamps of an old design, color, [or] denomination, technology, or other feature if payment has not been made for the stamps on or before the effective date of the tax increase.

SECTION ____.05.  Section 154.6035, Tax Code, is amended to read as follows:

Sec. 154.6035.  ALLOCATION OF CERTAIN REVENUE TO PROPERTY TAX RELIEF AND GENERAL REVENUE FUNDS [FUND]. (a) Notwithstanding Section 154.603, all proceeds from the collection of taxes imposed by this chapter attributable to the portion of the tax rate in excess of $23 [$20.50] per thousand on cigarettes, regardless of weight, shall be deposited to the credit of the property tax relief fund under Section 403.109, Government Code.