Texas 2017 - 85th Regular

Texas Senate Bill SB1505 Compare Versions

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1	1		By: Hinojosa, Campbell S.B. No. 1505
2		-	(In the Senate - Filed March 8, 2017; March 20, 2017, read
3		-	first time and referred to Committee on Finance; May 5, 2017,
4		-	reported adversely, with favorable Committee Substitute by the
5		-	following vote: Yeas 10, Nays 4; May 5, 2017, sent to printer.)
6		-	Click here to see the committee vote
7		-	COMMITTEE SUBSTITUTE FOR S.B. No. 1505 By: Hinojosa
8	2
9	3
10	4		A BILL TO BE ENTITLED
11	5		AN ACT
12		-	relating to the application of certain taxes imposed on certain
13		-	tobacco products and to the allocation of certain revenue from
14		-	those taxes to increase funding for certain health care education
15		-	programs.
	6	+	relating to the application of and allocation of revenue from
	7	+	certain taxes imposed on certain tobacco products.
16	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
17	9		SECTION 1. Section 58A.002(b), Education Code, is amended
18	10		to read as follows:
19	11		(b) The permanent fund supporting graduate medical
20	12		education is a special fund in the treasury outside the general
21	13		revenue fund. The fund is composed of:
22	14		(1) money transferred or appropriated to the fund by
23	15		the legislature;
24	16		(2) money deposited to the credit of the fund under
25	17		Section 154.603, Tax Code;
26	18		(3) gifts and grants contributed to the fund; and
27	19		(4) [(3)] the returns received from investment of
28	20		money in the fund.
29	21		SECTION 2. Section 61.5391(b), Education Code, is amended
30	22		to read as follows:
31	23		(b) Money in the account may not be appropriated for any
32	24		purpose except[:
33	25		[(1)] to provide loan repayment assistance to eligible
34	26		physicians under this subchapter[; or
35		-	[(2) to provide loan repayment assistance under
36		-	~~Subchapter~~ JJ if reallocated under Section 61.9826].
	27	+	[(2) to provide loan repayment assistance under Subchapter
	28	+	JJ if reallocated under Section 61.9826].
37	29		SECTION 3. Section 61.9823(c), Education Code, is amended
38	30		to read as follows:
39	31		(c) The total amount of loan repayment assistance provided
40	32		under this subchapter may not exceed the total amount of gifts and
41	33		grants accepted by the board for the repayment assistance and other
42	34		funds available to the board for the repayment assistance[,
43	35		including any money reallocated under Section 61.9826].
44	36		SECTION 4. Subchapter JJ, Chapter 61, Education Code, is
45	37		amended by adding Section 61.9829 to read as follows:
46	38		Sec. 61.9829. NURSING FACULTY LOAN REPAYMENT ASSISTANCE
47	39		PROGRAM ACCOUNT. (a) The nursing faculty loan repayment
48	40		assistance program account is an account in the general revenue
49	41		fund. The account is composed of:
50	42		(1) gifts and grants contributed to the account under
51	43		Section 61.9827;
52	44		(2) earnings on the principal of the account; and
53	45		(3) other amounts deposited to the credit of the
54	46		account, including:
55	47		(A) legislative appropriations;
56		-	(B) money deposited ~~to the credit of the account~~
57		-	~~under Section 155.2415~~, ~~Tax Code;~~ and
58		-	(C) money deposited ~~to the credit of the account~~
59		-	~~under Section 154.603, Tax~~ Code.
60		-	(b) Money in the account may be appropriated ~~only to provide~~
61		-	loan repayment assistance to eligible ~~nursing faculty under this~~
62		-	subchapter.
	48	+	(B) money deposited under Section 155.2415, Tax
	49	+	Code, and
	50	+	(c) money deposited under Section 154.603, Tax
	51	+	Code.
	52	+	(b) Money in the account may not be appropriated for any
	53	+	purpose except to provide loan repayment assistance to eligible
	54	+	nursing faculty under this subchapter.
63	55		SECTION 5. Section 154.001, Tax Code, is amended by adding
64	56		Subdivisions (1-a) and (11-a) and amending Subdivision (2) to read
65	57		as follows:
66	58		(1-a) "Cigar" has the meaning assigned by Section
67	59		155.001.
68	60		(2) "Cigarette" means a roll for smoking[:
69	61		[(A)] that is made of tobacco or tobacco mixed
70	62		with another ingredient and wrapped or covered with a material
71	63		other than tobacco[;] and
72	64		[(B)] that is not a cigar. For purposes of this
73	65		chapter, the term includes a little cigar.
74	66		(11-a) "Little cigar" means a roll for smoking that:
75	67		(A) is made of tobacco or tobacco mixed with
76	68		another ingredient;
77	69		(B) contains an integrated cellulose filter or
78	70		other similar filter; and
79	71		(C) is wrapped with a material other than natural
80	72		leaf tobacco.
81	73		SECTION 6. Section 154.603, Tax Code, is amended to read as
82	74		follows:
83	75		Sec. 154.603. DISPOSITION OF REVENUE. (a) Subject to
84	76		Subsection (b), all proceeds from the collection of taxes imposed
85	77		by this chapter remaining after [After] the deductions authorized
86	78		[for the purposes provided] by Section 154.602 shall be deposited
87	79		to the credit of [this code, the revenue remaining of the first $2
88	80		of tax received per 1,000 cigarettes for cigarettes weighing three
89	81		pounds or less per thousand and the first $4.10 per 1,000 cigarettes
90	82		of the tax received for cigarettes weighing more than three pounds
91	83		per thousand is allocated:
92	84		[(1) 18.75 percent to the foundation school fund; and
93	85		[(2) 81.25 percent to] the general revenue fund.
94	86		(b) Beginning September 1, 2017, the comptroller shall
95	87		determine the increase in the amount of revenue derived from the tax
96	88		imposed under Section 154.021 that is attributable to the inclusion
97	89		of little cigar in the definition of cigarette. Each state fiscal
98	90		year, the comptroller shall deposit an amount of money equal to that
99	91		increase for the state fiscal year, less any amount required to be
100	92		deposited to the property tax relief fund under Section 154.6035,
101	93		as follows:
102	94		(1) two-thirds to the credit of the permanent fund
103	95		supporting graduate medical education; and
104		-	(2) the remainder to the credit of the nursing faculty
105		-	~~loan~~ repayment assistance program ~~account~~. [The revenue remaining
106		-	~~after the~~ deductions for the purposes provided by Section 154.602
107		-	~~of this~~ code and allocation under Subsection (a) of this section is
	96	+	(2) the remainder to the credit of the nursing faculty loan
	97	+	repayment assistance program. [The revenue remaining after the
	98	+	deductions for the purposes provided by Section 154.602 of this
	99	+	code and allocation under Subsection (a) of this section is
108	100		allocated to the general revenue fund.]
109	101		SECTION 7. Section 155.001, Tax Code, is amended by
110	102		amending Subdivision (2) and adding Subdivision (9-a) to read as
111	103		follows:
112	104		(2) "Cigar" means a roll of fermented tobacco that is
113	105		wrapped in tobacco and the main stream of smoke from which produces
114	106		an alkaline reaction to litmus paper. For purposes of this chapter,
115	107		the term does not include a little cigar.
116	108		(9-a) "Little cigar" has the meaning assigned by
117	109		Section 154.001.
118	110		SECTION 8. Section 155.2415, Tax Code, is amended to read as
119	111		follows:
120	112		Sec. 155.2415. ALLOCATION OF CERTAIN REVENUE TO PROPERTY
121	113		TAX RELIEF FUND AND CERTAIN OTHER FUNDS. (a) Notwithstanding
122	114		Section 155.241, the proceeds from the collection of taxes imposed
123	115		by Section 155.0211 shall be allocated as follows:
124	116		(1) the amount of the proceeds that is equal to the
125	117		amount that, if the taxes imposed by Section 155.0211 were imposed
126	118		at a rate of 40 percent of the manufacturer's list price, exclusive
127	119		of any trade discount, special discount, or deal, would be
128	120		attributable to the portion of that tax rate in excess of 35.213
129	121		percent, shall be deposited to the credit of the property tax relief
130	122		fund under Section 403.109, Government Code;
131	123		(2) the amount of the proceeds that is equal to the
132	124		amount that would be attributable to a tax rate of 35.213 percent of
133	125		the manufacturer's list price, exclusive of any trade discount,
134	126		special discount, or deal, if the taxes were imposed by Section
135	127		155.0211 at that rate, shall be deposited to the credit of the
136	128		general revenue fund; and
137		-	(3) [100 percent] of the remaining proceeds:
	129	+	(3) out [100 percent] of the remaining proceeds:
138	130		(A) 98 percent shall be deposited to the credit
139	131		of:
140	132		(i) [(A)] the physician education loan
141	133		repayment program account established under Subchapter J, Chapter
142	134		61, Education Code; or
143	135		(ii) [(B)] the general revenue fund, if the
144	136		comptroller determines that the unencumbered beginning balance of
145	137		the physician education loan repayment account established under
146	138		Subchapter J, Chapter 61, Education Code, is sufficient to fund
147	139		appropriations and other direct and indirect costs from that
148	140		account for the fulfillment of existing and expected physician loan
149	141		repayment commitments during the current state fiscal biennium; and
150		-	(B) the remainder shall be deposited to the
151		-	credit of the nursing faculty loan repayment assistance program
152		-	account established under Subchapter JJ, Chapter 61, Education
153		-	Code.
	142	+	(B) two percent shall be deposited to the credit
	143	+	of the nursing faculty loan repayment assistance program account
	144	+	established under Subchapter JJ, Chapter 61, Education Code.
154	145		(b) Proceeds deposited in accordance with Subsection
155	146		(a)(3)(A)(ii) [(a)(3)(B)] may be appropriated only for health care
156	147		purposes.
157	148		SECTION 9. Sections 61.9823(b) and 61.9826, Education Code,
158	149		are repealed.
159		-	SECTION 10. The changes in law made by this Act to
160		-	Subchapters J and JJ, Chapter 61, Education Code, apply beginning
161		-	with loan repayment assistance awarded for the 2017-2018 academic
162		-	year. Loan repayment assistance awarded for an academic year
163		-	before the 2017-2018 academic year is governed by the law in effect
164		-	immediately before the effective date of this Act, and the former
165		-	law is continued in effect for that purpose.
166		-	SECTION 11. In addition to the substantive changes made by
	150	+	SECTION 10. In addition to the substantive changes made by
167	151		this Act, this Act conforms Section 154.603, Tax Code, to the method
168	152		of allocating cigarette tax revenue in effect before the effective
169	153		date of this Act. Section 11.04, Chapter 4 (S.B. 3), Acts of the
170	154		72nd Legislature, 1st Called Session, 1991, enacted former Section
171	155		403.094(h), Government Code, which abolished certain state fund
172	156		dedications and resulted in the abolition of the allocation to the
173	157		foundation school fund effective August 31, 1995.
174		-	SECTION 12. The change in law made by this Act does not
	158	+	SECTION 11. The change in law made by this Act does not
175	159		affect tax liability accruing before the effective date of this
176	160		Act. That liability continues in effect as if this Act had not been
177	161		enacted, and the former law is continued in effect for the
178	162		collection of taxes due and for civil and criminal enforcement of
179	163		the liability for those taxes.
	164	+	SECTION 12. The changes in law made by this Act to
	165	+	Subchapters J and JJ, Chapter 61, Education Code, apply beginning
	166	+	with loan repayment assistance awarded for the 2017-2018 academic
	167	+	year. Loan repayment assistance awarded for an academic year
	168	+	before the 2017-2018 academic year is governed by the law in effect
	169	+	immediately before the effective date of this Act, and the former
	170	+	law is continued in effect for that purpose.
180	171		SECTION 13. This Act takes effect September 1, 2017.
181		-	* * * * *