In October 2003, the Legislature approved and the Governor signed Chapter 867, Statutes of 2003 (AB 1666, Cogdill, which allows alternatives for the payment of cigarette tax stamps by cigarette distributors. Prior law allows cigarette distributors (which are responsible for affixing the stamps to cigarette packages prior to their sale) to defer the payment for such stamps under certain conditions, including the posting of a surety bond or other form of security. The 2003 statute reduced-on a temporary basis until January 2007-the minimum amount of the required security posted by distributors while increasing the frequency of their required tax remittances to the state from monthly to bimonthly. The measure requires the Legislative Analyst’s Office (LAO) to report on the impact of the statute.