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.