By:  Lucio                                   S.B. No. 1521

         97S0742/1                           

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to taxation of certain water supply or sewer service

 1-2     expansion.

 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 151.354 to read as follows:

 1-6           Sec. 151.354.  NEW WATER SUPPLY OR SEWER SERVICE

 1-7     CONSTRUCTION.  A nonprofit water supply or sewer service

 1-8     corporation organized and operating under Chapter 76, Acts of the

 1-9     43rd Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's

1-10     Texas Civil Statutes), is exempted from the taxes imposed by this

1-11     chapter for labor, material, and supplies incurred for new

1-12     construction or for expansion of existing water supply or sewer

1-13     service, or both.  The exemption includes but is not limited to

1-14     distribution or transmission lines, wells, treatment equipment or

1-15     chemicals, processing equipment, and other expenditures necessary

1-16     for providing water or sewer service.

1-17           SECTION 2.  (a)  This Act takes effect on the first day of

1-18     the first calendar quarter beginning on or after the date that it

1-19     may take effect under Section 39, Article III, Texas Constitution.

1-20           (b)  The change in law made by this Act does not affect taxes

1-21     imposed before the effective date of this Act, and the law in

1-22     effect before the effective date of this Act is continued in effect

1-23     for purposes of the liability for and collection of those taxes.

 2-1           SECTION 3.  The importance of this legislation and the

 2-2     crowded condition of the calendars in both houses create an

 2-3     emergency and an imperative public necessity that the

 2-4     constitutional rule requiring bills to be read on three several

 2-5     days in each house be suspended, and this rule is hereby suspended.