By:  Ellis, et al.                                     S.B. No. 441
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to exemptions from the sales tax.
 1-3           SECTION 1.  Subsection (a), Section 151.313, Tax Code, is
 1-4     amended to read as follows:
 1-5           (a)  The following items are exempted from the taxes imposed
 1-6     by this chapter:
 1-7                 (1)  a drug or medicine, other than insulin, if
 1-8     prescribed or dispensed for a human or animal by a licensed
 1-9     practitioner of the healing arts;
1-10                 (2)  insulin;
1-11                 (3)  a drug or medicine, without regard to whether it
1-12     is prescribed or dispensed by a licensed practitioner of the
1-13     healing arts, that is:
1-14                       (A)  labeled with a national drug code issued by
1-15     the federal Food and Drug Administration; and
1-16                       (B)  specifically formulated and labeled for
1-17     children 12 years of age or younger;
1-18                 (4)  a diaper;
1-19                 (5)  a hypodermic syringe or needle;
1-20                 (6) [(4)]  a brace; hearing aid or audio loop;
1-21     orthopedic, dental, or prosthetic device; ileostomy, colostomy, or
1-22     ileal bladder appliance; or supplies or replacement parts for the
1-23     listed items;
1-24                 (7) [(5)]  a therapeutic appliance, device, and any
 2-1     related supplies specifically designed for those products, if
 2-2     dispensed or prescribed by a licensed practitioner of the healing
 2-3     arts, when those items are purchased and used by an individual for
 2-4     whom the items listed in this subdivision were dispensed or
 2-5     prescribed;
 2-6                 (8) [(6)]  corrective lens and necessary and related
 2-7     supplies, if dispensed or prescribed by an ophthalmologist or
 2-8     optometrist;
 2-9                 (9) [(7)]  specialized printing or signalling equipment
2-10     used by the deaf for the purpose of enabling the deaf to
2-11     communicate through the use of an ordinary telephone and all
2-12     materials, paper, and printing ribbons used in that equipment;
2-13                 (10) [(8)]  a braille wristwatch, braille writer,
2-14     braille paper  and braille electronic equipment that connects to
2-15     computer equipment, and the necessary adaptive devices and adaptive
2-16     computer software;
2-17                 (11) [(9)]  each of the following items if purchased
2-18     for use by the blind to enable them to function more independently:
2-19     a slate and stylus, print enlarger, light probe, magnifier, white
2-20     cane, talking clock, large print terminal, talking terminal, or
2-21     harness for guide dog; and
2-22                 (12) [(10)]  hospital beds.
2-23           SECTION 2.  Subchapter H, Chapter 151, Tax Code, is amended
2-24     by adding Section 151.325 to read as follows:
2-26     (a)  The sale of an article of clothing or footwear designed to be
 3-1     worn on or about the human body is exempted from the taxes imposed
 3-2     by this chapter if:
 3-3                 (1)  the sales price of the article is less than $200;
 3-4     and
 3-5                 (2)  the sale takes place during a period beginning at
 3-6     12:01 a.m. on the first Saturday in August and ending at 12
 3-7     midnight on the second Friday after the first Saturday in August.
 3-8           (b)  This section does not apply to:
 3-9                 (1)  any special clothing or footwear that is primarily
3-10     designed for athletic activity or protective use and that is not
3-11     normally worn except when used for the athletic activity or
3-12     protective use for which it is designed; and
3-13                 (2)  accessories, including jewelry, handbags, luggage,
3-14     umbrellas, wallets, watches, and similar items carried on or about
3-15     the human body, without regard to whether worn on the body in a
3-16     manner characteristic of clothing.
3-17           SECTION 3.  (a)  This Act takes effect October 1, 1999.
3-18           (b)  The change in law made by this Act does not affect taxes
3-19     imposed before the effective date of this Act, and the law in
3-20     effect before the effective date of this Act is continued in effect
3-21     for purposes of the liability for and collection of those taxes.
3-22           SECTION 4.  The importance of this legislation and the
3-23     crowded condition of the calendars in both houses create an
3-24     emergency and an imperative public necessity that the
3-25     constitutional rule requiring bills to be read on three several
3-26     days in each house be suspended, and this rule is hereby suspended.