|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to the application of and allocation of revenue from |
|
certain taxes imposed on certain tobacco products. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 58A.002(b), Education Code, is amended |
|
to read as follows: |
|
(b) The permanent fund supporting graduate medical |
|
education is a special fund in the treasury outside the general |
|
revenue fund. The fund is composed of: |
|
(1) money transferred or appropriated to the fund by |
|
the legislature; |
|
(2) money deposited to the credit of the fund under |
|
Section 154.603, Tax Code; |
|
(3) gifts and grants contributed to the fund; and |
|
(4) [(3)] the returns received from investment of |
|
money in the fund. |
|
SECTION 2. Section 61.5391(b), Education Code, is amended |
|
to read as follows: |
|
(b) Money in the account may not be appropriated for any |
|
purpose except[:
|
|
[(1)] to provide loan repayment assistance to eligible |
|
physicians under this subchapter[; or
|
|
[(2)
to provide loan repayment assistance under Subchapter
|
|
JJ if reallocated under Section 61.9826]. |
|
SECTION 3. Section 61.9823(c), Education Code, is amended |
|
to read as follows: |
|
(c) The total amount of loan repayment assistance provided |
|
under this subchapter may not exceed the total amount of gifts and |
|
grants accepted by the board for the repayment assistance and other |
|
funds available to the board for the repayment assistance[,
|
|
including any money reallocated under Section 61.9826]. |
|
SECTION 4. Subchapter JJ, Chapter 61, Education Code, is |
|
amended by adding Section 61.9829 to read as follows: |
|
Sec. 61.9829. NURSING FACULTY LOAN REPAYMENT ASSISTANCE |
|
PROGRAM ACCOUNT. (a) The nursing faculty loan repayment |
|
assistance program account is an account in the general revenue |
|
fund. The account is composed of: |
|
(1) gifts and grants contributed to the account under |
|
Section 61.9827; |
|
(2) earnings on the principal of the account; and |
|
(3) other amounts deposited to the credit of the |
|
account, including: |
|
(A) legislative appropriations; |
|
(B) money deposited under Section 155.2415, Tax |
|
Code, and |
|
(c) money deposited under Section 154.603, Tax |
|
Code. |
|
(b) Money in the account may not be appropriated for any |
|
purpose except to provide loan repayment assistance to eligible |
|
nursing faculty under this subchapter. |
|
SECTION 5. Section 154.001, Tax Code, is amended by adding |
|
Subdivisions (1-a) and (11-a) and amending Subdivision (2) to read |
|
as follows: |
|
(1-a) "Cigar" has the meaning assigned by Section |
|
155.001. |
|
(2) "Cigarette" means a roll for smoking[:
|
|
[(A)] that is made of tobacco or tobacco mixed |
|
with another ingredient and wrapped or covered with a material |
|
other than tobacco[;] and |
|
[(B)] that is not a cigar. For purposes of this |
|
chapter, the term includes a little cigar. |
|
(11-a) "Little cigar" means a roll for smoking that: |
|
(A) is made of tobacco or tobacco mixed with |
|
another ingredient; |
|
(B) contains an integrated cellulose filter or |
|
other similar filter; and |
|
(C) is wrapped with a material other than natural |
|
leaf tobacco. |
|
SECTION 6. Section 154.603, Tax Code, is amended to read as |
|
follows: |
|
Sec. 154.603. DISPOSITION OF REVENUE. (a) Subject to |
|
Subsection (b), all proceeds from the collection of taxes imposed |
|
by this chapter remaining after [After] the deductions authorized |
|
[for the purposes provided] by Section 154.602 shall be deposited |
|
to the credit 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) Beginning September 1, 2017, the comptroller shall |
|
determine the increase in the amount of revenue derived from the tax |
|
imposed under Section 154.021 that is attributable to the inclusion |
|
of little cigar in the definition of cigarette. Each state fiscal |
|
year, the comptroller shall deposit an amount of money equal to that |
|
increase for the state fiscal year, less any amount required to be |
|
deposited to the property tax relief fund under Section 154.6035, |
|
as follows: |
|
(1) two-thirds to the credit of the permanent fund |
|
supporting graduate medical education; and |
|
(2) the remainder to the credit of the nursing faculty loan |
|
repayment assistance program. [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.] |
|
SECTION 7. Section 155.001, Tax Code, is amended by |
|
amending Subdivision (2) and adding Subdivision (9-a) to read as |
|
follows: |
|
(2) "Cigar" means a roll of fermented tobacco that is |
|
wrapped in tobacco and the main stream of smoke from which produces |
|
an alkaline reaction to litmus paper. For purposes of this chapter, |
|
the term does not include a little cigar. |
|
(9-a) "Little cigar" has the meaning assigned by |
|
Section 154.001. |
|
SECTION 8. Section 155.2415, Tax Code, is amended to read as |
|
follows: |
|
Sec. 155.2415. ALLOCATION OF CERTAIN REVENUE TO PROPERTY |
|
TAX RELIEF FUND AND CERTAIN OTHER FUNDS. (a) Notwithstanding |
|
Section 155.241, the proceeds from the collection of taxes imposed |
|
by Section 155.0211 shall be allocated as follows: |
|
(1) the amount of the proceeds that is equal to the |
|
amount that, if the taxes imposed by Section 155.0211 were imposed |
|
at a rate of 40 percent of the manufacturer's list price, exclusive |
|
of any trade discount, special discount, or deal, would be |
|
attributable to the portion of that tax rate in excess of 35.213 |
|
percent, shall be deposited to the credit of the property tax relief |
|
fund under Section 403.109, Government Code; |
|
(2) the amount of the proceeds that is equal to the |
|
amount that would be attributable to a tax rate of 35.213 percent of |
|
the manufacturer's list price, exclusive of any trade discount, |
|
special discount, or deal, if the taxes were imposed by Section |
|
155.0211 at that rate, shall be deposited to the credit of the |
|
general revenue fund; and |
|
(3) out [100 percent] of the remaining proceeds: |
|
(A) 98 percent shall be deposited to the credit |
|
of: |
|
(i) [(A)] the physician education loan |
|
repayment program account established under Subchapter J, Chapter |
|
61, Education Code; or |
|
(ii) [(B)] the general revenue fund, if the |
|
comptroller determines that the unencumbered beginning balance of |
|
the physician education loan repayment account established under |
|
Subchapter J, Chapter 61, Education Code, is sufficient to fund |
|
appropriations and other direct and indirect costs from that |
|
account for the fulfillment of existing and expected physician loan |
|
repayment commitments during the current state fiscal biennium; and |
|
(B) two percent shall be deposited to the credit |
|
of the nursing faculty loan repayment assistance program account |
|
established under Subchapter JJ, Chapter 61, Education Code. |
|
(b) Proceeds deposited in accordance with Subsection |
|
(a)(3)(A)(ii) [(a)(3)(B)] may be appropriated only for health care |
|
purposes. |
|
SECTION 9. Sections 61.9823(b) and 61.9826, Education Code, |
|
are repealed. |
|
SECTION 10. In addition to the substantive changes made by |
|
this Act, this Act conforms Section 154.603, Tax Code, to the method |
|
of allocating cigarette tax revenue in effect before the effective |
|
date of this Act. Section 11.04, Chapter 4 (S.B. 3), Acts of the |
|
72nd Legislature, 1st Called Session, 1991, enacted former Section |
|
403.094(h), Government Code, which abolished certain state fund |
|
dedications and resulted in the abolition of the allocation to the |
|
foundation school fund effective August 31, 1995. |
|
SECTION 11. The change in law made by this Act does not |
|
affect tax liability accruing before the effective date of this |
|
Act. That liability continues in effect as if this Act had not been |
|
enacted, and the former law is continued in effect for the |
|
collection of taxes due and for civil and criminal enforcement of |
|
the liability for those taxes. |
|
SECTION 12. The changes in law made by this Act to |
|
Subchapters J and JJ, Chapter 61, Education Code, apply beginning |
|
with loan repayment assistance awarded for the 2017-2018 academic |
|
year. Loan repayment assistance awarded for an academic year |
|
before the 2017-2018 academic year is governed by the law in effect |
|
immediately before the effective date of this Act, and the former |
|
law is continued in effect for that purpose. |
|
SECTION 13. This Act takes effect September 1, 2017. |