Amend CSHB 4 by inserting a new SECTION 4.091 (page 46,
between lines 65 and 66) to read as follows:
      SECTION 4.091.  Subchapter H, Tax Code, is amended by adding
Section 151.354 to read as follows:
      Sec. 151.354.  SCHOOL SUPPLIES.  (a)  A taxable item is
exempted from the taxes imposed by Subchapter C if the item:
            (1)  is listed by a principal, vice-principal, or
teacher of a public elementary or secondary school as an item
required in the performance of classroom work at the school; and
            (2)  is sold on the premises of the school by the
school or a nonprofit organization designated by the school.
      (b)  The storage, use, or consumption of a taxable item
acquired tax-free under this section is exempted from the use tax
imposed by Subchapter D until the item is resold or subsequently
transferred.