Amend CSHB 209 (House committee report) by striking all below the enacting clause and substituting the following: SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended by adding Section 151.326 to read as follows: Sec. 151.326. SCHOOL SUPPLIES BEFORE START OF SCHOOL. (a) The sale or storage, use, or other consumption of a school supply is exempted from the taxes imposed by this chapter if the school supply is purchased: (1) for use by a student in a class in a public or private elementary or secondary school; (2) during August; and (3) for a sales price of less than $25 per item. (b) For purposes of this exemption, "school supply" means: (1) crayons; (2) scissors; (3) glue, paste, and glue sticks; (4) pencils; (5) pens; (6) erasers; (7) rulers; (8) markers; (9) highlighters; (10) paper, including loose-leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper; (11) writing tablets; (12) spiral notebooks; (13) bound composition notebooks; (14) pocket folders; (15) plastic folders; (16) expandable portfolios; (17) manila folders; (18) three-ring binders that are three inches or less in capacity; (19) zipper pencil bags; (20) school supply boxes; (21) clipboards; (22) index cards; (23) index card boxes; (24) calculators; (25) protractors; (26) compasses; (27) music notebooks; (28) sketch or drawing pads; (29) paintbrushes; (30) watercolors; (31) acrylic, tempera, or oil paints; (32) tape, including masking tape and scotch tape; (33) clay and glazes; (34) pencil sharpeners; (35) thesauruses; and (36) dictionaries. (c) A retailer is not required to obtain an exemption certificate stating that the school supplies are purchased for use by a student in a class in a public or private elementary or secondary school unless the supplies are purchased in a quantity that indicates that the supplies are not purchased for use by a student in a class in a public or private elementary or secondary school. SECTION 2. (a) Notwithstanding any other provision of this Act, the governing body of a local taxing authority that imposes a local sales and use tax may repeal an exemption to that tax authorized by this Act if the governing body finds by an appropriate order, including an ordinance, that the exemption would materially impair the obligation of any contract existing at the time this Act goes into effect and to which the local taxing authority is a party. (b) The secretary of the local taxing authority adopting an order under this section shall send to the comptroller by certified or registered mail a copy of the order. (c) The repeal of the exemption takes effect on the first day of the month following the expiration of the calendar quarter occurring after the date on which the comptroller receives a copy of the order. SECTION 3. (a) This Act takes effect on the first day of the first calendar quarter beginning on or after the date that it may take effect under Section 39, Article III, Texas Constitution. (b) The change in law made by this Act does not affect taxes imposed before the effective date of this Act, and the law in effect before the effective date of this Act is continued in effect for purposes of the liability for and collection of those taxes. SECTION 4. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended, and that this Act take effect and be in force according to its terms, and it is so enacted.