By Salinas                                            H.B. No. 1802
         77R6508 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to tax-free sales by certain public service organizations.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 151.310, Tax Code, is amended by adding
 1-5     Subsection (f) to read as follows:
 1-6           (f)  An organization that qualifies for an exemption under
 1-7     Subsection (a)(4) and each chapter of the organization may hold any
 1-8     number of tax-free sales or auctions during a calendar year.  The
 1-9     sale of a taxable item by the  qualified organization or chapter of
1-10     the organization at a tax-free sale or auction is exempted from the
1-11     sales tax imposed by Subchapter C.  The storage, use, or
1-12     consumption of a taxable item acquired from the qualified
1-13     organization or chapter of the organization at a tax-free sale or
1-14     auction is exempted from the use tax imposed by Subchapter D until
1-15     the item is resold or subsequently transferred.
1-16           SECTION 2.  This Act takes effect immediately if it receives
1-17     a vote of two-thirds of all the members elected to each house, as
1-18     provided by Section 39, Article III, Texas Constitution.  If this
1-19     Act does not receive the vote necessary for immediate effect, this
1-20     Act takes effect September 1, 2001.