S.B. No. 737
                                        AN ACT
    1-1  relating to exempting court reporting services from the sales and
    1-2  use tax.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subchapter H, Chapter 151, Tax Code, is amended
    1-5  by adding Section 151.353 to read as follows:
    1-6        Sec. 151.353.  COURT REPORTING SERVICES.  (a)  Court
    1-7  reporting services relating to the preparation of a document or
    1-8  other record in a civil or criminal suit are exempted from the
    1-9  taxes imposed by this chapter if the document is:
   1-10              (1)  prepared for the use of a person participating in
   1-11  a suit or the court in which a suit or administrative proceeding is
   1-12  brought; and
   1-13              (2)  sold to a person participating in the suit.
   1-14        (b)  Court reporting services covered by this section include
   1-15  services in the preparation of a:
   1-16              (1)  deposition or discovery document;
   1-17              (2)  transcript of testimony; and
   1-18              (3)  statement of facts.
   1-19        (c)  The exemption provided by this section applies to a
   1-20  document or record on audio or video tape or a computer readable
   1-21  format and courtroom presentation of same.
   1-22        SECTION 2.  (a)  This Act takes effect on the first day of
   1-23  the first calendar quarter beginning on or after the date that it
   1-24  may take effect under Section 39, Article III, Texas Constitution.
    2-1        (b)  The change in law made by this  Act does not affect
    2-2  taxes imposed before the effective date of this Act, and the law in
    2-3  effect before the effective date of this Act is continued in effect
    2-4  for purposes of the liability for and collection of those taxes.
    2-5        SECTION 3.  The importance of this legislation and the
    2-6  crowded condition of the calendars in both houses create an
    2-7  emergency and an imperative public necessity that the
    2-8  constitutional rule requiring bills to be read on three several
    2-9  days in each house be suspended, and this rule is hereby suspended,
   2-10  and that this Act take effect and be in force according to its
   2-11  terms, and it is so enacted.