By Shapleigh                                           S.B. No. 819
         76R4387 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to one-day suspensions of the sales and use tax.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subtitle A, Title 2, Tax Code, is amended by
 1-5     adding Chapter 103 to read as follows:
 1-6       CHAPTER 103.  ONE-DAY SUSPENSIONS OF STATE AND LOCAL SALES TAX
 1-7           Sec. 103.001.  ONE-DAY SUSPENSIONS.  Notwithstanding any
 1-8     other law, on certification by the comptroller as provided by this
 1-9     chapter, the following taxes may not be collected during the period
1-10     beginning at midnight on a designated day and ending at midnight of
1-11     the following day:
1-12                 (1)  state sales and use taxes imposed under Chapter
1-13     151; and
1-14                 (2)  local sales and use taxes administered and
1-15     computed according to Chapters 321-325 and to which those chapters
1-16     apply, including a tax imposed under:
1-17                       (A)  Chapter 285, 775, or 776, Health and Safety
1-18     Code;
1-19                       (B)  Chapter 326, 334, 363, 377, or 383, Local
1-20     Government Code;
1-21                       (C)  Chapter 451, 452, 453, or 457,
1-22     Transportation Code; or
1-23                       (D)  the Development Corporation Act of 1979
1-24     (Article 5190.6, Vernon's Texas Civil Statutes).
 2-1           Sec. 103.002.  CERTIFICATION.  (a)  The comptroller shall
 2-2     declare and designate from one to four one-day suspensions of state
 2-3     and local sales tax under Section 103.001 if the comptroller
 2-4     determines that there is a state budget surplus at the close of a
 2-5     fiscal biennium. The comptroller shall declare the greatest number
 2-6     of one-day suspensions that will not violate the limitation under
 2-7     Section 103.003.
 2-8           (b)  Ten or more days before the date the comptroller
 2-9     declares one or more one-day suspensions of sales tax under this
2-10     section, the comptroller shall submit to the governor, lieutenant
2-11     governor, and the members of the legislature a statement under oath
2-12     stating:
2-13                 (1)  the determination that there will be a state
2-14     budget surplus at the end of the biennium;
2-15                 (2)  the amount of the surplus; and
2-16                 (3)  that the limitation under Section 103.003 will not
2-17     be exceeded by the declaration of the suspensions.
2-18           Sec. 103.003.  LIMITATION.  The comptroller may not declare
2-19     one or more one-day suspensions of sales tax under Section 103.002
2-20     if the amount of state revenue lost as a result of the suspensions
2-21     would be greater than 10 percent of the amount the comptroller has
2-22     determined for the state budget surplus at the end of the biennium.
2-23           Sec. 103.004.  REPORTING OF RECEIPTS.  The comptroller by
2-24     rule may adopt procedures relating to notification and reporting of
2-25     receipts for the period covered by the suspension of the tax under
2-26     Section 103.001.
2-27           SECTION 2.  This Act takes effect September 1, 1999, and
 3-1     applies only to a fiscal biennium beginning on or after that date.
 3-2           SECTION 3.  The importance of this legislation and the
 3-3     crowded condition of the calendars in both houses create an
 3-4     emergency and an imperative public necessity that the
 3-5     constitutional rule requiring bills to be read on three several
 3-6     days in each house be suspended, and this rule is hereby suspended.