By Bonnen                                             H.B. No. 2627
         77R6762 CBH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to an exemption from the sales and use tax for membership
 1-3     in or admission to a health spa.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 151.0028(b), Tax Code, is amended to read
 1-6     as follows:
 1-7           (b)  "Amusement services" includes membership in a private
 1-8     club or organization that provides entertainment, recreational,
 1-9     sports, dining, or social facilities to its members.  The term does
1-10     not include membership in or admission to a "health spa" as defined
1-11     by Section 702.003, Occupations Code.
1-12           SECTION 2. Section 151.005, Tax Code, is amended to read as
1-13     follows:
1-14           Sec. 151.005.  "SALE" OR "PURCHASE." "Sale" or "purchase"
1-15     means any of the following when done or performed for
1-16     consideration:
1-17                 (1)  a transfer of title or possession of tangible
1-18     personal property;
1-19                 (2)  the exchange, barter, lease, or rental of tangible
1-20     personal property;
1-21                 (3)  the performance of a taxable service or, in the
1-22     case of an amusement service, a transfer of title to or possession
1-23     of a ticket or other admission document, the collection of an
1-24     admission fee, whether by individual performance, subscription
 2-1     series, or membership privilege, the collection of dues or a fee,
 2-2     charge, or assessment, including an initiation fee, by a club or
 2-3     organization, other than a "health spa" as defined by Section
 2-4     702.003, Occupations Code, for membership or a special privilege,
 2-5     status, or membership classification in the club or organization,
 2-6     or the use of a coin-operated machine;
 2-7                 (4)  the production, fabrication, processing, printing,
 2-8     or imprinting of tangible personal property for consumers who
 2-9     directly or indirectly furnish the materials used in the
2-10     production, fabrication, processing, printing, or imprinting;
2-11                 (5)  the furnishing and distribution of tangible
2-12     personal property by a social club or fraternal organization to
2-13     anyone;
2-14                 (6)  the furnishing, preparation, or service of food,
2-15     meals, or drinks;
2-16                 (7)  a transfer of the possession of tangible personal
2-17     property if the title to the property is retained by the seller as
2-18     security for the payment of the price; or
2-19                 (8)  a transfer of the title or possession of tangible
2-20     personal property that has been produced, fabricated, or printed to
2-21     the special order of the customer.
2-22           SECTION 3. (a)  This Act takes effect July 1, 2001, if it
2-23     receives a vote of two-thirds of all the members elected to each
2-24     house, as provided by Section 39, Article III, Texas Constitution.
2-25     If this Act does not receive the vote necessary for effect on that
2-26     date, this Act takes effect October 1, 2001.
2-27           (b)  The change in law made by this Act does not affect taxes
 3-1     imposed before the effective date of this Act, and the former law
 3-2     is continued in effect for purposes of the liability for and
 3-3     collection of those taxes.