BILL ANALYSIS


                                                         S.B. 402
                                                     By: Whitmire
                                                Criminal Justice 
                                                          3-22-95
                                     Committee Report (Unamended)
BACKGROUND

Currently, inmates are excluded from having to pay sales tax on
soft drinks, candy, and other taxable food items at prison
commissaries.

PURPOSE

As proposed, S.B. 402 removes an exemption regarding the
application of the sales and use tax to certain products sold to
inmates.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 151.314, Tax Code, by adding Subsection
(g) to provide that an exemption provided by Subsection (d)(3) does
not apply to food products, meals, soft drinks, and candy for human
consumption sold to a person confined in a correctional facility
operated under the authority or jurisdiction of or under contract
with this state or a political subdivision of the state.

SECTION 2. Effective date: October 1, 1995.

SECTION 3. Emergency clause.