By Maxey                                               H.B. No. 111
         76R1437 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to exempting access to the internet from the sales tax.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 151.323, Tax Code, is amended to read as
 1-5     follows:
 1-6           Sec. 151.323.  CERTAIN TELECOMMUNICATIONS SERVICES.  (a)
 1-7     There are exempted from the taxes imposed by this chapter the
 1-8     receipts from the  sale, use, or other consumption in this state
 1-9     of:
1-10                 (1)  long-distance telecommunications services that are
1-11     not both originated from and billed to a telephone number or
1-12     billing or service address within Texas;
1-13                 (2)  access to a local exchange telephone company's
1-14     network by a regulated provider of telecommunications services;
1-15     [and]
1-16                 (3)  broadcasts, other than cable television service,
1-17     by commercial radio or television stations licensed or regulated by
1-18     the Federal Communications Commission; and
1-19                 (4)  access to the internet.
1-20           (b)  In this section, "internet" means the largest
1-21     nonproprietary nonprofit cooperative public computer network,
1-22     popularly known as the  internet.
1-23           SECTION 2.  (a)  This Act takes effect on the first day of
1-24     the first calendar quarter beginning on or after the date that it
 2-1     may take effect under Section 39, Article III, Texas Constitution.
 2-2           (b)  The change in law made by this Act does not affect taxes
 2-3     imposed before the effective date of this Act, and the law in
 2-4     effect before the effective date of this Act is continued in effect
 2-5     for purposes of the liability for and collection of those taxes.
 2-6           SECTION 3.  The importance of this legislation and the
 2-7     crowded condition of the calendars in both houses create an
 2-8     emergency and an imperative public necessity that the
 2-9     constitutional rule requiring bills to be read on three several
2-10     days in each house be suspended, and this rule is hereby suspended,
2-11     and that this Act take effect and be in force according to its
2-12     terms, and it is so enacted.