By Ellis                                               S.B. No. 441
         76R5684 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to exemptions from the sales tax.
 1-4           SECTION 1.  Section 151.313(a), Tax Code, is amended to read
 1-5     as follows:
 1-6           (a)  The following items are exempted from the taxes imposed
 1-7     by this chapter:
 1-8                 (1)  a drug or medicine[, other than insulin, if
 1-9     prescribed or dispensed for a human or animal by a licensed
1-10     practitioner of the healing arts];
1-11                 (2)  a diaper [insulin];
1-12                 (3)  a hypodermic syringe or needle;
1-13                 (4)  a brace;  hearing aid or audio loop; orthopedic,
1-14     dental, or prosthetic device;  ileostomy, colostomy, or ileal
1-15     bladder appliance; or  supplies or replacement parts for the listed
1-16     items;
1-17                 (5)  a medical or therapeutic appliance, device, and
1-18     any related supplies specifically designed for those products,
1-19     other than a contraceptive unless the contraceptive is [if]
1-20     dispensed or prescribed by a licensed practitioner of the healing
1-21     arts[, when those items are purchased and used by an individual for
1-22     whom the items listed in this subdivision were dispensed or
1-23     prescribed];
1-24                 (6)  corrective lens and necessary and related
 2-1     supplies, if dispensed or prescribed by an ophthalmologist or
 2-2     optometrist;
 2-3                 (7)  specialized printing or signalling equipment used
 2-4     by the deaf for the purpose of enabling the deaf to communicate
 2-5     through the use of an ordinary telephone and all materials, paper,
 2-6     and printing ribbons used in that equipment;
 2-7                 (8)  a braille wristwatch, braille writer, braille
 2-8     paper and braille electronic equipment that connects to computer
 2-9     equipment, and the necessary adaptive devices and adaptive computer
2-10     software;
2-11                 (9)  each of the following items if purchased for use
2-12     by the blind to enable them to function more independently:  a
2-13     slate and stylus, print enlarger, light probe, magnifier, white
2-14     cane, talking clock, large print terminal, talking terminal, or
2-15     harness for guide dog; and
2-16                 (10)  hospital beds.
2-17           SECTION 2.  Section 151.323, Tax Code, is amended to read as
2-18     follows:
2-19           Sec. 151.323.  CERTAIN TELECOMMUNICATIONS SERVICES.  (a)
2-20     There are exempted from the taxes imposed by this chapter the
2-21     receipts from the  sale, use, or other consumption in this state
2-22     of:
2-23                 (1)  long-distance telecommunications services that are
2-24     not both originated from and billed to a telephone number or
2-25     billing or service address within Texas;
2-26                 (2)  access to a local exchange telephone company's
2-27     network by a regulated provider of telecommunications services;
 3-1     [and]
 3-2                 (3)  broadcasts, other than cable television service,
 3-3     by commercial radio or television stations licensed or regulated by
 3-4     the Federal Communications Commission; and
 3-5                 (4)  access to the Internet.
 3-6           (b)  In this section, "Internet" means the largest
 3-7     nonproprietary nonprofit cooperative public computer network,
 3-8     popularly known as the  Internet.
 3-9           SECTION 3.  Subchapter H, Chapter 151, Tax Code, is amended
3-10     by adding Section 151.325 to read as follows:
3-11           Sec. 151.325.  CLOTHING FOR CHILDREN PRIOR TO START OF
3-12     SCHOOL.  (a)  The sale during August of an article of clothing or
3-13     footwear designed to be worn on or about the body of a person
3-14     younger than 13 years of age is exempted from the taxes imposed by
3-15     this chapter if the sales price of the article is less than $500.
3-16           (b)  This section does not apply to:
3-17                 (1)  any special clothing or footwear primarily
3-18     designed for athletic activity or protective use and which is not
3-19     normally worn except when used for the athletic activity or
3-20     protective use for which it is designed; and
3-21                 (2)  accessories, including jewelry, handbags, luggage,
3-22     umbrellas, wallets, watches, and similar items carried on or about
3-23     the human body, without regard to whether worn on the body in a
3-24     manner characteristic of clothing.
3-25           SECTION 4.  (a)  This Act takes effect on the first day of
3-26     the first calendar quarter beginning on or after the date that it
3-27     may take effect under Section 39, Article III, Texas Constitution.
 4-1           (b)  The change in law made by this Act does not affect taxes
 4-2     imposed before the effective date of this Act, and the law in
 4-3     effect before the effective date of this Act is continued in effect
 4-4     for purposes of the liability for and collection of those taxes.
 4-5           SECTION 5.  The importance of this legislation and the
 4-6     crowded condition of the calendars in both houses create an
 4-7     emergency and an imperative public necessity that the
 4-8     constitutional rule requiring bills to be read on three several
 4-9     days in each house be suspended, and this rule is hereby suspended,
4-10     and that this Act take effect and be in force according to its
4-11     terms, and it is so enacted.