By Wilson H.B. No. 2637 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to incentives for film, video and audio recording 1-3 production in Texas. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subsection (a), Section 151.318, Tax Code, is 1-6 amended to read as follows: 1-7 (a) The following items are exempted from the taxes imposed 1-8 by this chapter: 1-9 (1) tangible personal property that will become an 1-10 ingredient or component part of tangible personal property 1-11 manufactured, processed, or fabricated for ultimate sale; 1-12 (2) tangible personal property used or consumed in or 1-13 during the actual manufacturing, processing, or fabrication of 1-14 tangible personal property for ultimate sale, or in commercial 1-15 production of a film negative or a video or audio recording master, 1-16 of which a copy is intended for sale, if the use or consumption of 1-17 the property is necessary or essential to the manufacturing, 1-18 processing, or fabrication operation; and 1-19 (3) services performed directly on the product being 1-20 manufactured prior to its distribution for sale and for the purpose 1-21 of making the product more marketable. 1-22 SECTION 2. Subsection (e), Section 151.318, Chapter 151, Tax 1-23 Code, is amended to read as follows: 2-1 (d) This section does not apply to any taxable item rented 2-2 or leased to a person engaged in manufacturing, except that 2-3 equipment rented or leased for the commercial production of a film 2-4 negative or a video or audio recording master, of which a copy is 2-5 intended for sale, is subject to the reduction of taxes as provided 2-6 by Subsection (g) of this section. 2-7 SECTION 3. This Act takes effect September 1, 1993. 2-8 SECTION 4. The importance of this legislation and the 2-9 crowded condition of the calendars in both houses create an 2-10 emergency and an imperative public necessity that the 2-11 constitutional rule requiring bills to be read on three several 2-12 days in each house be suspended, and this rule is hereby suspended.