1-1     By:  Ellis, et al.                                     S.B. No. 441
 1-2           (In the Senate - Filed February 9, 1999; February 10, 1999,
 1-3     read first time and referred to Committee on Finance;
 1-4     April 6, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 11, Nays 0; April 6, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 441                 By:  Moncrief
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to exemptions from the sales tax.
1-12           SECTION 1.  Subsection (a), Section 151.313, Tax Code, is
1-13     amended to read as follows:
1-14           (a)  The following items are exempted from the taxes imposed
1-15     by this chapter:
1-16                 (1)  a drug or medicine, other than insulin, if
1-17     prescribed or dispensed for a human or animal by a licensed
1-18     practitioner of the healing arts;
1-19                 (2)  insulin;
1-20                 (3)  a drug or medicine, without regard to whether it
1-21     is prescribed or dispensed by a licensed practitioner of the
1-22     healing arts, that is:
1-23                       (A)  labeled with a national drug code issued by
1-24     the federal Food and Drug Administration; and
1-25                       (B)  specifically formulated and labeled for
1-26     children 12 years of age or younger;
1-27                 (4)  a diaper;
1-28                 (5)  a hypodermic syringe or needle;
1-29                 (6) [(4)]  a brace; hearing aid or audio loop;
1-30     orthopedic, dental, or prosthetic device; ileostomy, colostomy, or
1-31     ileal bladder appliance; or supplies or replacement parts for the
1-32     listed items;
1-33                 (7) [(5)]  a therapeutic appliance, device, and any
1-34     related supplies specifically designed for those products, if
1-35     dispensed or prescribed by a licensed practitioner of the healing
1-36     arts, when those items are purchased and used by an individual for
1-37     whom the items listed in this subdivision were dispensed or
1-38     prescribed;
1-39                 (8) [(6)]  corrective lens and necessary and related
1-40     supplies, if dispensed or prescribed by an ophthalmologist or
1-41     optometrist;
1-42                 (9) [(7)]  specialized printing or signalling equipment
1-43     used by the deaf for the purpose of enabling the deaf to
1-44     communicate through the use of an ordinary telephone and all
1-45     materials, paper, and printing ribbons used in that equipment;
1-46                 (10) [(8)]  a braille wristwatch, braille writer,
1-47     braille paper  and braille electronic equipment that connects to
1-48     computer equipment, and the necessary adaptive devices and adaptive
1-49     computer software;
1-50                 (11) [(9)]  each of the following items if purchased
1-51     for use by the blind to enable them to function more independently:
1-52     a slate and stylus, print enlarger, light probe, magnifier, white
1-53     cane, talking clock, large print terminal, talking terminal, or
1-54     harness for guide dog; and
1-55                 (12) [(10)]  hospital beds.
1-56           SECTION 2.  Subchapter H, Chapter 151, Tax Code, is amended
1-57     by adding Section 151.325 to read as follows:
1-59     (a)  The sale of an article of clothing or footwear designed to be
1-60     worn on or about the human body is exempted from the taxes imposed
1-61     by this chapter if:
1-62                 (1)  the sales price of the article is less than $200;
1-63     and
1-64                 (2)  the sale takes place during a period beginning at
 2-1     12:01 a.m. on the first Saturday in August and ending at 12
 2-2     midnight on the second Friday after the first Saturday in August.
 2-3           (b)  This section does not apply to:
 2-4                 (1)  any special clothing or footwear that is primarily
 2-5     designed for athletic activity or protective use and that is not
 2-6     normally worn except when used for the athletic activity or
 2-7     protective use for which it is designed; and
 2-8                 (2)  accessories, including jewelry, handbags, luggage,
 2-9     umbrellas, wallets, watches, and similar items carried on or about
2-10     the human body, without regard to whether worn on the body in a
2-11     manner characteristic of clothing.
2-12           SECTION 3.  (a)  This Act takes effect October 1, 1999.
2-13           (b)  The change in law made by this Act does not affect taxes
2-14     imposed before the effective date of this Act, and the law in
2-15     effect before the effective date of this Act is continued in effect
2-16     for purposes of the liability for and collection of those taxes.
2-17           SECTION 4.  The importance of this legislation and the
2-18     crowded condition of the calendars in both houses create an
2-19     emergency and an imperative public necessity that the
2-20     constitutional rule requiring bills to be read on three several
2-21     days in each house be suspended, and this rule is hereby suspended.
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