1-1  By:  Duncan, Naishtat (Senate Sponsor - Montford)      H.B. No. 596
    1-2        (In the Senate - Received from the House April 3, 1995;
    1-3  April 4, 1995, read first time and referred to Committee on
    1-4  Finance; April 28, 1995, reported favorably by the following vote:
    1-5  Yeas 11, Nays 0; April 28, 1995, sent to printer.)
    1-6                         A BILL TO BE ENTITLED
    1-7                                AN ACT
    1-8  relating to exempting sales by university and college student
    1-9  organizations from the state sales tax.
   1-10        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-11        SECTION 1.  Subchapter H, Chapter 151, Tax Code, is amended
   1-12  by adding Section 151.321 to read as follows:
   1-13        Sec. 151.321.  UNIVERSITY AND COLLEGE STUDENT ORGANIZATIONS.
   1-14  (a)  A taxable item sold by a qualified student organization is
   1-15  exempted from the taxes imposed by Subchapter C if the student
   1-16  organization:
   1-17              (1)  sells the items at a sale that may last for one
   1-18  day only the primary purpose of which is to raise funds for the
   1-19  organization; and
   1-20              (2)  holds not more than one sale described by
   1-21  Subdivision (1) each month for which the exemption is claimed for
   1-22  an item sold.
   1-23        (b)  A student organization qualifies for the exemption under
   1-24  Subsection (a) if the student organization:
   1-25              (1)  is affiliated with an institution of higher
   1-26  education as defined by Section 61.003, Education Code, or a
   1-27  private or independent college or university that is located in
   1-28  this state and that is accredited by a recognized accrediting
   1-29  agency under Section 61.003, Education Code;
   1-30              (2)  has as its primary purpose a purpose other than
   1-31  engaging in business or performing an activity designed to make a
   1-32  profit; and
   1-33              (3)  files a certification with the comptroller as
   1-34  required by Subsection (c).
   1-35        (c)  A student organization must file with the comptroller a
   1-36  certification issued by the institution, college, or university
   1-37  described in Subsection (b)(1) showing that the organization is
   1-38  affiliated with the institution, college, or university.  The
   1-39  certification is valid for two years after the date that the
   1-40  comptroller receives it.
   1-41        (d)  The storage, use, or consumption of a taxable item
   1-42  acquired tax-free under this section is exempted from the use tax
   1-43  imposed by Subchapter D until the item is resold or subsequently
   1-44  transferred.
   1-45        SECTION 2.  (a)  This Act takes effect on the first day of
   1-46  the first calendar quarter beginning on or after the date that it
   1-47  may take effect under Section 39, Article III, Texas Constitution.
   1-48        (b)  The change in law made by this Act does not affect taxes
   1-49  imposed before the effective date of this Act, and the law in
   1-50  effect before the effective date of this Act is continued in effect
   1-51  for purposes of liability for and collection of those taxes.
   1-52        SECTION 3.  The importance of this legislation and the
   1-53  crowded condition of the calendars in both houses create an
   1-54  emergency and an imperative public necessity that the
   1-55  constitutional rule requiring bills to be read on three several
   1-56  days in each house be suspended, and this rule is hereby suspended,
   1-57  and that this Act take effect and be in force according to its
   1-58  terms, and it is so enacted.
   1-59                               * * * * *