1-1     By:  Gutierrez, et al. (Senate Sponsor - Ellis)       H.B. No. 2371
 1-2           (In the Senate - Received from the House May 10, 1999;
 1-3     May 10, 1999, read first time and referred to Committee on Finance;
 1-4     May 14, 1999, reported favorably by the following vote:  Yeas 9,
 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 exempting diapers from the sales tax.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Section 151.313(a), Tax Code, is amended to read
1-11     as follows:
1-12           (a)  The following items are exempted from the taxes imposed
1-13     by this chapter:
1-14                 (1)  a drug or medicine, other than insulin, if
1-15     prescribed or dispensed for a human or animal by a licensed
1-16     practitioner of the healing arts;
1-17                 (2)  insulin;
1-18                 (3)  a hypodermic syringe or needle;
1-19                 (4)  a brace; hearing aid or audio loop; orthopedic,
1-20     dental, or prosthetic device; ileostomy, colostomy, or ileal
1-21     bladder appliance; or supplies or replacement parts for the listed
1-22     items;
1-23                 (5)  a therapeutic appliance, device, and any related
1-24     supplies specifically designed for those products, if dispensed or
1-25     prescribed by a licensed practitioner of the healing arts, when
1-26     those items are purchased and used by an individual for whom the
1-27     items listed in this subdivision were dispensed or prescribed;
1-28                 (6)  corrective lens and necessary and related
1-29     supplies, if dispensed or prescribed by an ophthalmologist or
1-30     optometrist;
1-31                 (7)  specialized printing or signalling equipment used
1-32     by the deaf for the purpose of enabling the deaf to communicate
1-33     through the use of an ordinary telephone and all materials, paper,
1-34     and printing ribbons used in that equipment;
1-35                 (8)  a braille wristwatch, braille writer, braille
1-36     paper and braille electronic equipment that connects to computer
1-37     equipment, and the necessary adaptive devices and adaptive computer
1-38     software;
1-39                 (9)  each of the following items if purchased for use
1-40     by the blind to enable them to function more independently:  a
1-41     slate and stylus, print enlarger, light probe, magnifier, white
1-42     cane, talking clock, large print terminal, talking terminal, or
1-43     harness for guide dog; [and]
1-44                 (10)  hospital beds; and
1-45                 (11)  a diaper other than a diaper purchased, sold, or
1-46     used by a diaper service.
1-47           SECTION 2.  (a)  Notwithstanding any other provision of this
1-48     Act, the governing body of a local taxing authority that imposes a
1-49     local sales and use tax may repeal an exemption to that tax
1-50     authorized by this Act if the governing body finds by an
1-51     appropriate order, including an ordinance, that the exemption would
1-52     materially impair the obligation of any contract existing at the
1-53     time this Act goes into effect and to which the local taxing
1-54     authority is a party.
1-55           (b)  The secretary of the local taxing authority adopting an
1-56     order under this section shall send to the comptroller by certified
1-57     or registered mail a copy of the order.
1-58           (c)  The repeal of the exemption takes effect on the first
1-59     day of the month following the expiration of the calendar quarter
1-60     occurring after the date on which the comptroller receives a copy
1-61     of the order.
1-62           SECTION 3.  (a)  This Act takes effect on the first day of
1-63     the first calendar quarter beginning on or after the date that it
1-64     may take effect under Section 39, Article III, Texas Constitution.
 2-1           (b)  The change in law made by this Act does not affect taxes
 2-2     imposed before the effective date of this Act, and the law in
 2-3     effect before the effective date of this Act is continued in effect
 2-4     for purposes of the liability for and collection of those taxes.
 2-5           SECTION 4.  The importance of this legislation and the
 2-6     crowded condition of the calendars in both houses create an
 2-7     emergency and an imperative public necessity that the
 2-8     constitutional rule requiring bills to be read on three several
 2-9     days in each house be suspended, and this rule is hereby suspended,
2-10     and that this Act take effect and be in force according to its
2-11     terms, and it is so enacted.
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