76R8744 SMJ-D                           
         By Chavez                                              H.B. No. 175
         Substitute the following for H.B. No. 175:
         By Oliveira                                        C.S.H.B. No. 175
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the application of certain taxes to certain items used
 1-3     in the production of motion pictures and video or audio recordings.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter H, Chapter 151, Tax Code, is amended
 1-6     by adding Section 151.333 to read as follows:
 1-7           Sec. 151.333.  CERTAIN SALES TO TELEVISION, MOTION PICTURE,
 1-8     VIDEO, AND AUDIO PRODUCTION COMPANIES.  Tangible personal property
 1-9     is exempted from the taxes imposed by this chapter if sold, leased,
1-10     or rented to, or stored, used, or consumed by a company in
1-11     connection with the production by the company for consideration of
1-12     a television program, motion picture, or video or audio recording,
1-13     a copy of which is sold or offered for ultimate sale, licensed,
1-14     distributed, broadcast, or otherwise exhibited.
1-15           SECTION 2.  Subchapter E, Chapter 152, Tax Code, is amended
1-16     by adding Section 152.094 to read as follows:
1-17           Sec. 152.094.  MOTOR VEHICLES USED IN TELEVISION, MOTION
1-18     PICTURE, VIDEO, OR AUDIO PRODUCTIONS.  The taxes imposed by this
1-19     chapter do not apply to a motor vehicle purchased, rented, or used
1-20     in connection with the production for consideration of a television
1-21     program, motion picture, or video or audio recording, a copy of
1-22     which is sold or offered for ultimate sale, licensed, distributed,
1-23     broadcast, or otherwise exhibited.
1-24           SECTION 3.  Section 151.318(p), Tax Code, is repealed.
 2-1           SECTION 4.  (a)  This Act takes effect on the first day of
 2-2     the first calendar quarter beginning on or after the earliest date
 2-3     that it may take effect under Section 39, Article III, Texas
 2-4     Constitution.
 2-5           (b)  The change in law made by this Act does not affect taxes
 2-6     imposed before the effective date of this Act, and the law in
 2-7     effect before the effective date of this Act is continued in effect
 2-8     for the purposes of the liability for and collection of those
 2-9     taxes.
2-10           SECTION 5.  The importance of this legislation and the
2-11     crowded condition of the calendars in both houses create an
2-12     emergency and an imperative public necessity that the
2-13     constitutional rule requiring bills to be read on three several
2-14     days in each house be suspended, and this rule is hereby suspended,
2-15     and that this Act take effect and be in force according to its
2-16     terms, and it is so enacted.