By:  Naishtat                                         H.B. No. 2263
       73R5701 DAK-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to exempting sales by university and college student
    1-3  organizations from the state sales tax.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subchapter H, Chapter 151, Tax Code, is amended
    1-6  by adding Section 151.321 to read as follows:
    1-7        Sec. 151.321.  UNIVERSITY AND COLLEGE STUDENT ORGANIZATIONS.
    1-8  (a)  A taxable item sold by a student organization is exempted from
    1-9  the taxes imposed by Subchapter C if the student organization:
   1-10              (1)  is affiliated with an institution of higher
   1-11  education as defined by Section 61.003, Education Code, or a
   1-12  private or independent college or university that is located in
   1-13  this state and that is accredited by a recognized accrediting
   1-14  agency under Section 61.003, Education Code;
   1-15              (2)  has as its primary purpose a purpose other than
   1-16  engaging in business or performing an activity designed to make a
   1-17  profit; and
   1-18              (3)  files a certification with the comptroller as
   1-19  required by Subsection (b).
   1-20        (b)  To qualify for an exemption under Subsection (a), a
   1-21  student organization must file with the comptroller a certification
   1-22  issued by the institution, college, or university described in
   1-23  Subsection (a)(1) showing that the organization is affiliated with
   1-24  the institution, college, or university.  The certification is
    2-1  valid for two years after the date that the comptroller receives
    2-2  it.
    2-3        (c)  The storage, use, or consumption of a taxable item
    2-4  acquired tax-free under this section is exempted from the use tax
    2-5  imposed by Subchapter D until the item is resold or subsequently
    2-6  transferred.
    2-7        SECTION 2.  (a)  This Act takes effect on the first day of
    2-8  the first calendar quarter beginning on or after the date that it
    2-9  may take effect under Article III, Section 39, of the Texas
   2-10  Constitution.
   2-11        (b)  The change in law made by this Act does not affect taxes
   2-12  imposed before the effective date of this Act, and the law in
   2-13  effect before the effective date of this Act is continued in effect
   2-14  for purposes of the liability for and collection of those taxes.
   2-15        SECTION 3.  The importance of this legislation and the
   2-16  crowded condition of the calendars in both houses create an
   2-17  emergency and an imperative public necessity that the
   2-18  constitutional rule requiring bills to be read on three several
   2-19  days in each house be suspended, and this rule is hereby suspended,
   2-20  and that this Act take effect and be in force according to its
   2-21  terms, and it is so enacted.