By Duncan, Naishtat H.B. No. 596 74R2867 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 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.