diff --git a/ethcore/res/tx_permission_tests/contract_ver_3.sol b/ethcore/res/tx_permission_tests/contract_ver_3.sol
new file mode 100644
index 00000000000..b361815dc68
--- /dev/null
+++ b/ethcore/res/tx_permission_tests/contract_ver_3.sol
@@ -0,0 +1,60 @@
+pragma solidity ^0.4.20;
+
+// Adapted from https://gist.github.com/VladLupashevskyi/84f18eabb1e4afadf572cf92af3e7e7f
+// and: https://github.com/poanetwork/posdao-contracts/blob/master/contracts/TxPermission.sol
+
+contract TxPermission {
+    /// Allowed transaction types mask
+    uint32 constant None = 0;
+    uint32 constant All = 0xffffffff;
+    uint32 constant Basic = 0x01;
+    uint32 constant Call = 0x02;
+    uint32 constant Create = 0x04;
+    uint32 constant Private = 0x08;
+
+    /// Contract name
+    function contractName() public constant returns (string) {
+        return "TX_PERMISSION_CONTRACT";
+    }
+
+    /// Contract name hash
+    function contractNameHash() public constant returns (bytes32) {
+        return keccak256(contractName());
+    }
+
+    /// Contract version
+    function contractVersion() public constant returns (uint256) {
+        return 3;
+    }
+
+    /// @dev Defines the allowed transaction types which may be initiated by the specified sender with
+    /// the specified gas price and data. Used by the Parity engine each time a transaction is about to be
+    /// included into a block. See https://wiki.parity.io/Permissioning.html#how-it-works-1
+    /// @param _sender Transaction sender address.
+    /// @param _to Transaction recipient address. If creating a contract, the `_to` address is zero.
+    /// @param _value Transaction amount in wei.
+    /// @param _gasPrice Gas price in wei for the transaction.
+    /// @param _data Transaction data.
+    /// @return `uint32 typesMask` - Set of allowed transactions for `_sender` depending on tx `_to` address,
+    /// `_gasPrice`, and `_data`. The result is represented as a set of flags:
+    /// 0x01 - basic transaction (e.g. ether transferring to user wallet);
+    /// 0x02 - contract call;
+    /// 0x04 - contract creation;
+    /// 0x08 - private transaction.
+    /// `bool cache` - If `true` is returned, the same permissions will be applied from the same
+    /// `_sender` without calling this contract again.
+	function allowedTxTypes(
+        address _sender,
+        address _to,
+        uint256 _value,
+        uint256 _gasPrice,
+        bytes memory _data
+    )
+        public
+        view
+        returns(uint32 typesMask, bool cache)
+    {
+		if (_gasPrice > 0 || _data.length < 4) return (All, false);
+		return (None, false);
+    }
+}
diff --git a/ethcore/res/tx_permission_tests/contract_ver_3_genesis.json b/ethcore/res/tx_permission_tests/contract_ver_3_genesis.json
new file mode 100644
index 00000000000..a40b6be05a4
--- /dev/null
+++ b/ethcore/res/tx_permission_tests/contract_ver_3_genesis.json
@@ -0,0 +1,44 @@
+{
+	"name": "TestNodeFilterContract",
+	"engine": {
+		"authorityRound": {
+			"params": {
+				"stepDuration": 1,
+				"startStep": 2,
+				"validators": {
+					"contract": "0x0000000000000000000000000000000000000000"
+				}
+			}
+		}
+	},
+	"params": {
+		"accountStartNonce": "0x0",
+		"maximumExtraDataSize": "0x20",
+		"minGasLimit": "0x1388",
+		"networkID" : "0x69",
+		"gasLimitBoundDivisor": "0x0400",
+		"transactionPermissionContract": "0x0000000000000000000000000000000000000005",
+		"transactionPermissionContractTransition": "1"
+	},
+	"genesis": {
+		"seal": {
+			"generic": "0xc180"
+		},
+		"difficulty": "0x20000",
+		"author": "0x0000000000000000000000000000000000000000",
+		"timestamp": "0x00",
+		"parentHash": "0x0000000000000000000000000000000000000000000000000000000000000000",
+		"extraData": "0x",
+		"gasLimit": "0x222222"
+	},
+	"accounts": {
+		"0000000000000000000000000000000000000001": { "balance": "1", "builtin": { "name": "ecrecover", "pricing": { "linear": { "base": 3000, "word": 0 } } } },
+		"0000000000000000000000000000000000000002": { "balance": "1", "builtin": { "name": "sha256", "pricing": { "linear": { "base": 60, "word": 12 } } } },
+		"0000000000000000000000000000000000000003": { "balance": "1", "builtin": { "name": "ripemd160", "pricing": { "linear": { "base": 600, "word": 120 } } } },
+		"0000000000000000000000000000000000000004": { "balance": "1", "builtin": { "name": "identity", "pricing": { "linear": { "base": 15, "word": 3 } } } },
+		"0000000000000000000000000000000000000005": {
+			"balance": "1",
+			"constructor": "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"
+		}
+	}
+}
diff --git a/ethcore/src/tx_filter.rs b/ethcore/src/tx_filter.rs
index 3ee06a74d01..21c6066f729 100644
--- a/ethcore/src/tx_filter.rs
+++ b/ethcore/src/tx_filter.rs
@@ -113,7 +113,7 @@ impl TransactionFilter {
 							.and_then(|value| decoder.decode(&value).map_err(|e| e.to_string()))
 							.map(|(p, f)| (p.low_u32(), f))
 					}
-					0xffff_ffff_ffff_fffe => {
+					3 => {
 						trace!(target: "tx_filter", "Using filter with gas price");
 						let (data, decoder) = transact_acl_gas_price::functions::allowed_tx_types::call(
 							sender, to, value, gas_price, transaction.data.clone()
@@ -171,7 +171,7 @@ mod test {
 
 	/// Contract code: https://gist.github.com/VladLupashevskyi/84f18eabb1e4afadf572cf92af3e7e7f
 	#[test]
-	fn transaction_filter() {
+	fn transaction_filter_ver_2() {
 		let spec_data = include_str!("../res/tx_permission_tests/contract_ver_2_genesis.json");
 
 		let db = test_helpers::new_db();
@@ -248,6 +248,48 @@ mod test {
 		assert!(!filter.transaction_allowed(&genesis, block_number, &basic_tx_with_ether_and_to_key6.clone().sign(key7.secret(), None), &*client));
 	}
 
+	/// Contract code: res/tx_permission_tests/contract_ver_3.sol
+	#[test]
+	fn transaction_filter_ver_3() {
+		let spec_data = include_str!("../res/tx_permission_tests/contract_ver_3_genesis.json");
+
+		let db = test_helpers::new_db();
+		let tempdir = TempDir::new("").unwrap();
+		let spec = Spec::load(&tempdir.path(), spec_data.as_bytes()).unwrap();
+
+		let client = Client::new(
+			ClientConfig::default(),
+			&spec,
+			db,
+			Arc::new(Miner::new_for_tests(&spec, None)),
+			IoChannel::disconnected(),
+		).unwrap();
+		let key1 = KeyPair::from_secret(Secret::from("0000000000000000000000000000000000000000000000000000000000000001")).unwrap();
+
+		// The only difference to version 2 is that the contract now knows the transaction's gas price and data.
+		// So we only test those: The contract allows only transactions with either nonzero gas price or short data.
+
+		let filter = TransactionFilter::from_params(spec.params()).unwrap();
+		let mut tx = Transaction::default();
+		tx.action = Action::Call(Address::from("0000000000000000000000000000000000000042"));
+		tx.data = b"01234567".to_vec();
+		tx.gas_price = 0.into();
+
+		let genesis = client.block_hash(BlockId::Latest).unwrap();
+		let block_number = 1;
+
+		// Data too long and gas price zero. This transaction is not allowed.
+		assert!(!filter.transaction_allowed(&genesis, block_number, &tx.clone().sign(key1.secret(), None), &*client));
+
+		// But if we either set a nonzero gas price or short data or both, it is allowed.
+		tx.gas_price = 1.into();
+		assert!(filter.transaction_allowed(&genesis, block_number, &tx.clone().sign(key1.secret(), None), &*client));
+		tx.data = b"01".to_vec();
+		assert!(filter.transaction_allowed(&genesis, block_number, &tx.clone().sign(key1.secret(), None), &*client));
+		tx.gas_price = 0.into();
+		assert!(filter.transaction_allowed(&genesis, block_number, &tx.clone().sign(key1.secret(), None), &*client));
+	}
+
 	/// Contract code: https://gist.github.com/arkpar/38a87cb50165b7e683585eec71acb05a
 	#[test]
 	fn transaction_filter_deprecated() {