By Marchant                                           H.B. No. 2528
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the sales and use tax exemptions for religious,
    1-3  educational, credit unions, and public service organizations.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 151.310(a), Tax Code, is amended to read
    1-6  as follows:
    1-7        (a)  A taxable item sold, leased, or rented to, or stored,
    1-8  used, or consumed by, any of the following organizations is
    1-9  exempted from the taxes imposed by this chapter:
   1-10              (1)  an organization created for religious,
   1-11  educational, or charitable purposes if no part of the net earnings
   1-12  of the organization benefits a private shareholder or individual
   1-13  and the items purchased, leased, or rented are related to the
   1-14  purpose of the organization, and in the case of a non-profit
   1-15  hospital, the hospital does not receive any payment for providing
   1-16  health care services to in-patients from any source including but
   1-17  not limited to the patient or person legally obligated to support
   1-18  the patient, third-party payors, Medicare, Medicaid, or any other
   1-19  state or local indigent care program.  Payment for providing health
   1-20  care services does not include charitable donations, legacies,
   1-21  bequests, or grants or payments for research;
   1-22              (2)  an organization qualifying for an exemption from
   1-23  federal income taxes under Section 501(c)(3), (4), (8), (10), or
    2-1  (19), Internal Revenue Code, of the item sold, leased, rented,
    2-2  stored, used, or consumed relates to the purpose of the exempted
    2-3  organization and the item is not used for the personal benefit of a
    2-4  private stockholder or individual;
    2-5              (3)  a non-profit organization engaged exclusively in
    2-6  providing athletic competition among persons under 19 years old if
    2-7  no financial benefit goes to an individual or shareholder;
    2-8              (4)  a company, department, or association organized
    2-9  for the purpose of answering fire alarms and extinguishing fires or
   2-10  for the purpose of answering fire alarms, extinguishing fires, and
   2-11  providing emergency medical services, the members of which receive
   2-12  no compensation or only nominal compensation for their services
   2-13  rendered, if the taxable item is used exclusively by the company,
   2-14  department, or association; <or>
   2-15              (5)  a chamber of commerce or a convention and tourist
   2-16  promotional agency representing at least one Texas city or county
   2-17  if the chamber of commerce or the agency is not organized from the
   2-18  profit and no part of its net earnings inures to a private
   2-19  shareholder or other individual<.>; or
   2-20              (6)  a credit union organized and doing business under
   2-21  the Texas Credit Union Act (Article 2461-1.01 et seq.) or the
   2-22  Federal Credit Union Act (12 U.S.C.A. Section 1751 et seq.) if the
   2-23  item sold, leased, rented, store, used, or consumed relates to the
   2-24  purpose of the credit union and the item is not used for the
   2-25  personal benefit of a member or individual.
    3-1        SECTION 2.  The importance of this legislation and the
    3-2  crowded condition of the calendars in both houses create an
    3-3  emergency and an imperative public necessity that the
    3-4  constitutional rule requiring bills to be read on three several
    3-5  days in each house be suspended, and this rule is hereby suspended,
    3-6  and that this Act take effect and be in force from and after its
    3-7  passage, and it is so enacted.