76R15237 E                           
         By Hunter                                             H.B. No. 2697
         Substitute the following for H.B. No. 2697:
         By McCall                                         C.S.H.B. No. 2697
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the appraisal of property for ad valorem tax purposes.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 1.04(5), Tax Code, is amended to read as
 1-5     follows:
 1-6                 (5)  "Tangible personal property" means personal
 1-7     property that can be seen, weighed, measured, felt, or otherwise
 1-8     perceived by the senses, but does not include a document or other
 1-9     perceptible object that constitutes evidence of a valuable
1-10     interest, claim, or right and has negligible or no intrinsic value.
1-11     The term includes a computer program as defined by Section 151.0031
1-12     that is recorded on a tape, disk, or optical medium, if the tape,
1-13     disk, or optical medium is held for sale to a purchaser under terms
1-14     by which that purchaser acquires a license to use the computer
1-15     program.
1-16           SECTION 2.  Subchapter A, Chapter 23, Tax Code, is amended by
1-17     adding Section 23.03 to read as follows:
1-18           Sec. 23.03.  MARKET VALUE OF COMPUTER SOFTWARE.  (a)  The
1-19     market value of a tape, disk, or optical medium on which a computer
1-20     program is recorded is the historical cost of acquiring the tape,
1-21     disk, or optical medium, including the cost to acquire a license to
1-22     use the computer program, less any accrued depreciation.
1-23           (b)  In this section, "computer program" has the meaning
1-24     assigned by Section 151.0031.
 2-1           SECTION 3.  This Act takes effect January 1, 2000, and
 2-2     applies only to an appraisal of property for a tax year that begins
 2-3     on or after that date.
 2-4           SECTION 4.  The importance of this legislation and the
 2-5     crowded condition of the calendars in both houses create an
 2-6     emergency and an imperative public necessity that the
 2-7     constitutional rule requiring bills to be read on three several
 2-8     days in each house be suspended, and this rule is hereby suspended.