By Shields                                            H.B. No. 1292
         76R4604 CBH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the sales price of a taxable item that may be sold in a
 1-3     tax-free sale held by certain organizations.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 151.310(c), Tax Code, is amended to read
 1-6     as follows:
 1-7           (c)  An organization that qualifies for an exemption under
 1-8     Subsection (a)(1) or (a)(2) of this section, and each bona fide
 1-9     chapter of the organization, may hold two tax-free sales or
1-10     auctions under this subsection during a calendar year and each
1-11     tax-free sale or auction may continue for one day only.  The sale
1-12     of a taxable item the sales price of which is $10,000 [$5,000] or
1-13     less by a qualified organization or  chapter of the organization at
1-14     a tax-free sale or auction is exempted from the sales tax imposed
1-15     by Subchapter C of this chapter.  The storage, use, or consumption
1-16     of a taxable item that is acquired from a qualified organization or
1-17     chapter of the organization at a tax-free sale or auction and that
1-18     is exempted under this subsection from the taxes imposed by
1-19     Subchapter C of this chapter is exempted from the use tax imposed
1-20     by Subchapter D of this chapter until the item is resold or
1-21     subsequently transferred.
1-22           SECTION 2.  (a)  This Act takes effect on the first day of
1-23     the first calendar quarter beginning on or after the earliest date
1-24     that it may take effect under Section 39, Article III, Texas
 2-1     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 that date is continued in effect for purposes of the
 2-5     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.