H.B. No. 596
    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 qualified student organization is
    1-9  exempted from the taxes imposed by Subchapter C if the student
   1-10  organization:
   1-11              (1)  sells the items at a sale that may last for one
   1-12  day only the primary purpose of which is to raise funds for the
   1-13  organization; and
   1-14              (2)  holds not more than one sale described by
   1-15  Subdivision (1) each month for which the exemption is claimed for
   1-16  an item sold.
   1-17        (b)  A student organization qualifies for the exemption under
   1-18  Subsection (a) if the student organization:
   1-19              (1)  is affiliated with an institution of higher
   1-20  education as defined by Section 61.003, Education Code, or a
   1-21  private or independent college or university that is located in
   1-22  this state and that is accredited by a recognized accrediting
   1-23  agency under Section 61.003, Education Code;
   1-24              (2)  has as its primary purpose a purpose other than
    2-1  engaging in business or performing an activity designed to make a
    2-2  profit; and
    2-3              (3)  files a certification with the comptroller as
    2-4  required by Subsection (c).
    2-5        (c)  A student organization must file with the comptroller a
    2-6  certification issued by the institution, college, or university
    2-7  described in Subsection (b)(1) showing that the organization is
    2-8  affiliated with the institution, college, or university.  The
    2-9  certification is valid for two years after the date that the
   2-10  comptroller receives it.
   2-11        (d)  The storage, use, or consumption of a taxable item
   2-12  acquired tax-free under this section is exempted from the use tax
   2-13  imposed by Subchapter D until the item is resold or subsequently
   2-14  transferred.
   2-15        SECTION 2.  (a)  This Act takes effect on the first day of
   2-16  the first calendar quarter beginning on or after the date that it
   2-17  may take effect under Section 39, Article III, Texas Constitution.
   2-18        (b)  The change in law made by this Act does not affect taxes
   2-19  imposed before the effective date of this Act, and the law in
   2-20  effect before the effective date of this Act is continued in effect
   2-21  for purposes of liability for and collection of those taxes.
   2-22        SECTION 3.  The importance of this legislation and the
   2-23  crowded condition of the calendars in both houses create an
   2-24  emergency and an imperative public necessity that the
   2-25  constitutional rule requiring bills to be read on three several
   2-26  days in each house be suspended, and this rule is hereby suspended,
   2-27  and that this Act take effect and be in force according to its
    3-1  terms, and it is so enacted.