1-1                                   AN ACT
 1-2     relating to a refund of sales and use taxes paid on items exported
 1-3     beyond the limits of the United States.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 151.307, Tax Code, is amended by amending
 1-6     Subsection (d) and adding Subsections (e) and (f) to read as
 1-7     follows:
 1-8           (d)  A retailer who receives documentation under Subsection
 1-9     (b)(2) relating to the purchase of tangible personal property
1-10     exported beyond the limits of the United States may not refund the
1-11     tax paid under this chapter on that purchase before:
1-12                 (1)  the 24th hour after the hour stated as the time of
1-13     export on the documentation, if the retailer is located in a county
1-14     that borders the United Mexican States; or
1-15                 (2)  the seventh day after the day stated as the date
1-16     of export on the documentation, if the retailer is located in a
1-17     county that does not border the United Mexican States.
1-18           (e)  A retailer who makes a refund before the time prescribed
1-19     by Subsection (d) or makes a refund that is undocumented or
1-20     improperly documented is liable for the amount of the tax refunded
1-21     with interest.
1-22           (f)  In this section:
1-23                 (1)  "Air forwarder" means a licensed International Air
1-24     Transportation Association freight forwarder.
 2-1                 (2)  "Ocean forwarder" means a licensed Federal
 2-2     Maritime Commission freight forwarder.
 2-3           SECTION 2.  This Act takes effect September 1, 1999, and
 2-4     applies to an exemption to the sales and use tax imposed under
 2-5     Chapter 151, Tax Code, claimed on or after January 1, 2000.  An
 2-6     exemption to the sales and use tax imposed under Chapter 151, Tax
 2-7     Code, claimed before January 1, 2000, is governed by the law in
 2-8     effect when the exemption was claimed, and that law is continued in
 2-9     effect for that purpose.
2-10           SECTION 3.  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.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2406 was passed by the House on April
         16, 1999, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2406 was passed by the Senate on May
         19, 1999, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor