Bill Text: TX SB1505 | 2017-2018 | 85th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the application of certain taxes imposed on certain tobacco products and to the allocation of certain revenue from those taxes to increase funding for certain health care education programs.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2017-05-17 - Not again placed on intent calendar [SB1505 Detail]

Download: Texas-2017-SB1505-Introduced.html
 
 
  By: Hinojosa, Campbell S.B. No. 1505
 
 
 
   
 
 
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.
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