1-1     By:  Gallego, et al. (Senate Sponsor - Shapleigh)      H.B. No. 598
 1-2           (In the Senate - Received from the House May 13, 1999;
 1-3     May 13, 1999, read first time and referred to Committee on Finance;
 1-4     May 14, 1999, reported favorably by the following vote:  Yeas 8,
 1-5     Nays 0; May 14, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the application of the sales tax to certain material
 1-9     used to restore a damaged residence in a disaster area.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subchapter H, Chapter 151, Tax Code, is amended
1-12     by adding Section 151.351 to read as follows:
1-13           Sec. 151.351.  BUILDING MATERIAL USED TO RESTORE CERTAIN
1-14     PROPERTY.  (a)  Building material used to restore a residence
1-15     homestead and incorporated into the homestead is exempt from the
1-16     taxes imposed by this chapter if:
1-17                 (1)  the amount of the charge for the building material
1-18     is separately itemized; and
1-19                 (2)  the restoration is performed on a residence
1-20     homestead:
1-21                       (A)  damaged within a disaster area by the
1-22     condition that caused the area to be declared a disaster area; and
1-23                       (B)  within 18 months after the date the area is
1-24     declared a disaster area.
1-25           (b)  In this section:
1-26                 (1)  "Building material" means material used to restore
1-27     a residence homestead, including:
1-28                       (A)  soil, dirt, rock, sand, and other natural or
1-29     man-made inert solid materials used to fill land;
1-30                       (B)  lumber;
1-31                       (C)  brick;
1-32                       (D)  stone;
1-33                       (E)  paint;
1-34                       (F)  window glass;
1-35                       (G)  plumbing supplies;
1-36                       (H)  electrical supplies;
1-37                       (I)  cleaning supplies; and
1-38                       (J)  other similar materials.
1-39                 (2)  "Disaster area" means:
1-40                       (A)  an area declared a disaster area by the
1-41     governor under Chapter 418, Government Code; or
1-42                       (B)  an area declared a disaster area by the
1-43     president of the United States under the Robert T. Stafford
1-44     Disaster Relief and Emergency Assistance Act (42 U.S.C. Section
1-45     5121 et seq.).
1-46                 (3)  "Residence homestead" has the meaning assigned by
1-47     Section 11.13.
1-48                 (4)  "Restore" means repair, restore, remodel, clean,
1-49     or modify an improvement to a residence homestead.
1-50           SECTION 2.  (a)  This Act takes effect on the first day of
1-51     the first calendar quarter beginning on or after the earliest date
1-52     that it may take effect under Section 39, Article III, Texas
1-53     Constitution.
1-54           (b)  The change in law made by this Act does not affect taxes
1-55     imposed before the effective date of this Act, and the law in
1-56     effect before the effective date of this Act is continued in effect
1-57     for the purposes of the liability for and collection of those
1-58     taxes.
1-59           SECTION 3.  The importance of this legislation and the
1-60     crowded condition of the calendars in both houses create an
1-61     emergency and an imperative public necessity that the
1-62     constitutional rule requiring bills to be read on three several
1-63     days in each house be suspended, and this rule is hereby suspended,
1-64     and that this Act take effect and be in force according to its
 2-1     terms, and it is so enacted.
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