By Ellis                                               H.B. No. 324
         77R2269 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to exempting textbooks for university and college courses
 1-3     from the sales tax.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter H, Chapter 151, Tax Code, is amended
 1-6     by adding Section 151.3211 to read as follows:
 1-7           Sec. 151.3211.  TEXTBOOKS FOR UNIVERSITY AND COLLEGE COURSES.
 1-8     (a)  The sale of a book is exempted from the taxes imposed by this
 1-9     chapter if the  book is:
1-10                 (1)  written, designed, and produced  for educational,
1-11     instructional, or pedagogical purposes;
1-12                 (2)  bought by a full-time or part-time student
1-13     enrolled at an institution of higher education as defined by
1-14     Section 61.003, Education Code, or a private or independent college
1-15     or university that is located in this state and that is accredited
1-16     by a recognized accrediting agency under Section 61.003, Education
1-17     Code; and
1-18                 (3)  required for a course at the institution of higher
1-19     education or the private or independent college or university.
1-20           (b)  A person may establish that the person is a full-time or
1-21     part-time student by presenting a valid student identification
1-22     card.
1-23           SECTION 2.  (a)  This Act takes effect July 1, 2001, if it
1-24     receives a vote of two-thirds of all the members elected to each
 2-1     house, as provided by Section 39, Article III, Texas Constitution.
 2-2     If this Act does not receive the vote necessary for effect on that
 2-3     date, this Act takes effect October 1, 2001.
 2-4           (b)  The change in law made by this Act does not affect taxes
 2-5     imposed before the effective date of this Act, and the law in
 2-6     effect before the effective date of this Act is continued in effect
 2-7     for purposes of  the liability for and collection of those taxes.