By Gallego, McClendon, Naishtat, Telford               H.B. No. 598
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the application of the sales tax to certain material
 1-3     used to restore a damaged residence in a disaster area.
 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 151.351 to read as follows:
 1-7           Sec. 151.351.  BUILDING MATERIAL USED TO RESTORE CERTAIN
 1-8     PROPERTY.  (a)  Building material used to restore a residence
 1-9     homestead and incorporated into the homestead is exempt from the
1-10     taxes imposed by this chapter if:
1-11                 (1)  the amount of the charge for the building material
1-12     is separately itemized; and
1-13                 (2)  the restoration is performed on a residence
1-14     homestead:
1-15                       (A)  damaged within a disaster area by the
1-16     condition that caused the area to be declared a disaster area; and
1-17                       (B)  within 18 months after the date the area is
1-18     declared a disaster area.
1-19           (b)  In this section:
1-20                 (1)  "Building material" means material used to restore
1-21     a residence homestead, including:
1-22                       (A)  soil, dirt, rock, sand, and other natural or
1-23     man-made inert solid materials used to fill land;
1-24                       (B)  lumber;
 2-1                       (C)  brick;
 2-2                       (D)  stone;
 2-3                       (E)  paint;
 2-4                       (F)  window glass;
 2-5                       (G)  plumbing supplies;
 2-6                       (H)  electrical supplies;
 2-7                       (I)  cleaning supplies; and
 2-8                       (J)  other similar materials.
 2-9                 (2)  "Disaster area" means:
2-10                       (A)  an area declared a disaster area by the
2-11     governor under Chapter 418, Government Code; or
2-12                       (B)  an area declared a disaster area by the
2-13     president of the United States under the Robert T. Stafford
2-14     Disaster Relief and Emergency Assistance Act (42 U.S.C. Section
2-15     5121 et seq.).
2-16                 (3)  "Residence homestead" has the meaning assigned by
2-17     Section 11.13.
2-18                 (4)  "Restore" means repair, restore, remodel, clean,
2-19     or modify an improvement to a residence homestead.
2-20           SECTION 2.  (a)  This Act takes effect on the first day of
2-21     the first calendar quarter beginning on or after the earliest date
2-22     that it may take effect under Section 39, Article III, Texas
2-23     Constitution.
2-24           (b)  The change in law made by this Act does not affect taxes
2-25     imposed before the effective date of this Act, and the law in
2-26     effect before the effective date of this Act is continued in effect
2-27     for the purposes of the liability for and collection of those
 3-1     taxes.
 3-2           SECTION 3.  The importance of this legislation and the
 3-3     crowded condition of the calendars in both houses create an
 3-4     emergency and an imperative public necessity that the
 3-5     constitutional rule requiring bills to be read on three several
 3-6     days in each house be suspended, and this rule is hereby suspended,
 3-7     and that this Act take effect and be in force according to its
 3-8     terms, and it is so enacted.