By Corte                                              H.B. No. 2690
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the sales tax on coin-operated services.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 151.0045, Tax Code is amended to read as
    1-5  follows:
    1-6        Sec. 151.0045.  Personal Services.  Personal services means
    1-7  clothes locker rental services as well as those personal services
    1-8  listed as personal services under Group 721, Major Group 72 of the
    1-9  Standard Industrial Classification Manual, 1972, and includes
   1-10  massage parlors, escort services, and Turkish baths under Group 729
   1-11  of said manual but does not include any other services listed under
   1-12  Group 729 unless otherwise covered under this Act, prepared by the
   1-13  statistical policy division of the office on management and budget,
   1-14  office of the president of the United States.
   1-15        SECTION 2.  Section 151.323, Tax Code is amended by adding
   1-16  subsection (4) to read as follows:
   1-17        Sec. 151.323.  Certain Telecommunications Services.  There
   1-18  are exempted from the taxes imposed by this chapter the receipts
   1-19  from the sale, use, or other consumption in this state of:
   1-20              (1)  long-distance telecommunications services that are
   1-21  not both originated from and billed to a telephone number or
   1-22  billing or service address within Texas;
   1-23              (2)  access to a local exchange telephone company's
    2-1  network by a regulated provider of telecommunications services; <and>
    2-2              (3)  broadcasts, other than cable television service,
    2-3  by commercial radio or television stations licensed or regulated by
    2-4  the Federal Communications Commission<.>; and
    2-5              (4)  telecommunications services through coin-operated
    2-6  machines so long as the amount which can be charged for the service
    2-7  activated by coins is limited by law or regulation and the provider
    2-8  of pay telephone services is paying sales tax on the charge, or
    2-9  equivalent thereof, for interconnection with the local exchange
   2-10  network.
   2-11        SECTION 3.  Section 151.335, Tax Code is amended to read as
   2-12  follows:
   2-13        Sec. 151.335.  Coin-Operated Services.  (a)  Amusement <and
   2-14  personal> services provided through coin-operated machines that are
   2-15  operated by the consumer are exempt from the taxes imposed by this
   2-16  chapter.
   2-17        (b)  This section does not apply to the sale of tangible
   2-18  personal property or to the purchase of an admission through the
   2-19  use of a coin-operated machine.
   2-20        SECTION 4.  This Act takes effect on September 1, 1995.
   2-21        SECTION 5.  The importance of this legislation and the
   2-22  crowded condition of the calendars in both houses create an
   2-23  emergency and an imperative public necessity that the
   2-24  constitutional rule requiring bills to be read on three several
   2-25  days in each house be suspended, and this rule is hereby suspended.