1-1  By:  Kamel (Senate Sponsor - Ratliff)                   H.B. No. 85
    1-2        (In the Senate - Received from the House March 24, 1993;
    1-3  March 25, 1993, read first time and referred to Committee on
    1-4  Finance; May 10, 1993, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 12, Nays 0; May 10, 1993,
    1-6  sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Montford           x                               
   1-10        Turner             x                               
   1-11        Armbrister         x                               
   1-12        Barrientos         x                               
   1-13        Bivins             x                               
   1-14        Ellis              x                               
   1-15        Haley              x                               
   1-16        Moncrief           x                               
   1-17        Parker                                         x   
   1-18        Ratliff            x                               
   1-19        Sims               x                               
   1-20        Truan              x                               
   1-21        Zaffirini          x                               
   1-22  COMMITTEE SUBSTITUTE FOR H.B. No. 85                By:  Armbrister
   1-23                         A BILL TO BE ENTITLED
   1-24                                AN ACT
   1-25  relating to the taxation of property used for the improvement of
   1-26  realty for a county.
   1-28        SECTION 1.  Section 151.311, Tax Code, is amended to read as
   1-29  follows:
   1-32  (a)  Tangible personal property purchased by a contractor for use
   1-33  in the performance of a contract for the improvement of realty for
   1-34  a municipality, school district or nonprofit hospital is exempted
   1-35  from the taxes imposed by this chapter to the extent of the value
   1-36  of the tangible personal property used or consumed or both in the
   1-37  performance of the contract.
   1-38        (b)  Tangible personal property is exempted from the taxes
   1-39  imposed by this chapter if the property is:
   1-40              (1)  purchased by a contractor for use in the
   1-41  performance of a contract for the improvement of realty for a
   1-42  municipality or county; and
   1-43              (2)  incorporated into that improvement.
   1-44        (c)  In this section "nonprofit hospital" means a hospital
   1-45  licensed under Chapter 241 or 577, Health and Safety Code, that is
   1-46  operated as a charitable or nonprofit establishment.
   1-47        SECTION 2.  (a)  This Act takes effect October 1, 1993, and,
   1-48  except as provided by Section 3 of this Act, applies to tangible
   1-49  personal property purchased on or after that date.
   1-50        (b)  The change in law made by this Act does not affect tax
   1-51  liability accruing before the effective date of this Act.  That
   1-52  liability continues in effect as if this Act had not been enacted,
   1-53  and the former law is continued in effect for the collection of
   1-54  taxes due and for civil and criminal enforcement of the liability
   1-55  for those taxes.
   1-56        SECTION 3.  The exemption provided by Section 151.311, Tax
   1-57  Code, as amended by this Act, for a contractor who purchases
   1-58  property for the improvement of realty for a municipality or county
   1-59  does not apply to the purchase of tangible personal property under
   1-60  a contract executed before the effective date of this Act and under
   1-61  which the municipality or county is not entitled to a refund of an
   1-62  amount of the contract price equal to the amount of the tax savings
   1-63  that would accrue to the contractor from the exemption provided by
   1-64  this Act if the exemption were effective for purchases made after
   1-65  the effective date of this Act.  This section does not prevent the
   1-66  application of the exemption provided by Section 151.311, Tax Code,
   1-67  as amended by this Act, to a contractor who refunds all or a part
   1-68  of the tax savings under a contract amendment executed by the
    2-1  municipality or county and the contractor after the effective date
    2-2  of this Act.
    2-3        SECTION 4.  The importance of this legislation and the
    2-4  crowded condition of the calendars in both houses create an
    2-5  emergency and an imperative public necessity that the
    2-6  constitutional rule requiring bills to be read on three several
    2-7  days in each house be suspended, and this rule is hereby suspended.
    2-8                               * * * * *
    2-9                                                         Austin,
   2-10  Texas
   2-11                                                         May 10, 1993
   2-12  Hon. Bob Bullock
   2-13  President of the Senate
   2-14  Sir:
   2-15  We, your Committee on Finance to which was referred H.B. No. 85,
   2-16  have had the same under consideration, and I am instructed to
   2-17  report it back to the Senate with the recommendation that it do not
   2-18  pass, but that the Committee Substitute adopted in lieu thereof do
   2-19  pass and be printed.
   2-20                                                         Montford,
   2-21  Chairman
   2-22                               * * * * *
   2-23                               WITNESSES
   2-24                                                  FOR   AGAINST  ON
   2-25  ___________________________________________________________________
   2-26  Name:  Craig Pardue                              x
   2-27  Representing:  Dallas County
   2-28  City:  Dallas
   2-29  -------------------------------------------------------------------
   2-30  Name:  Donald Lee, Legislative Coordinator       x
   2-31  Representing:  Harris Co. Commissioners Ct
   2-32  City:  Houston
   2-33  -------------------------------------------------------------------
   2-34  Name:  John Curlee, Legislative Coordinator      x
   2-35  Representing:  Tarrant Co. Commissioners Ct
   2-36  City:  Ft. Worth
   2-37  -------------------------------------------------------------------