By Dutton                                              H.B. No. 863
         77R2136 CBH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a requirement that retail grocers post a sign listing
 1-3     items that are exempt from the sales and use 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 151.3015 to read as follows:
 1-7           Sec. 151.3015.  REQUIREMENT FOR SIGN LISTING EXEMPTIONS.
 1-8     (a)  In this section, "retail grocer" has the meaning assigned by
 1-9     Section 151.414.
1-10           (b)  Each retail grocer shall post a sign in a location that
1-11     is conspicuous to all employees and customers that lists relevant
1-12     items that are exempt from the taxes imposed by this chapter.
1-13           (c)  The comptroller by rule shall prescribe the design and
1-14     size of the sign and the relevant items that must be listed on the
1-15     sign.  The comptroller shall determine which items are relevant for
1-16     listing based on whether the item is usually sold by retail
1-17     grocers.
1-18           (d)  The comptroller shall review the sign each biennium to
1-19     determine if the listings require amendment.
1-20           (e)  The comptroller shall provide the sign to retail grocers
1-21     at a reasonable charge.
1-22           SECTION 2.  This Act takes effect September 1, 2001.  Each
1-23     retail grocer shall post the sign required by Section 151.3015, Tax
1-24     Code, as added by this Act, not later than January 1, 2002.