By Grusendorf                                         H.B. No. 2833
         77R6858 SMJ-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the application of the sales tax to services provided
 1-3     in connection with certain foreclosure sales.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 151.0036(b), Tax Code, is amended to read
 1-6     as follows:
 1-7           (b)  "Debt collection service" does not include:
 1-8                 (1)  the collection of:
 1-9                       (A) [(1)]  a judgment by an attorney or by a
1-10     partnership or professional corporation of attorneys if the
1-11     attorney, partnership, or corporation represented the person in the
1-12     suit from which the judgment arose; or
1-13                       (B) [(2)]  court-ordered child support or medical
1-14     child support; or
1-15                 (2)  a service provided by a person acting as a trustee
1-16     in connection with the foreclosure sale of real property under a
1-17     lien created by a mortgage, deed of trust, or security instrument.
1-18           SECTION 2. (a)  This Act takes effect July 1, 2001, if it
1-19     receives a vote of two-thirds of all members elected to each house,
1-20     as provided by Section 39, Article III, Texas Constitution.  If
1-21     this Act does not receive the vote necessary for effect on that
1-22     date, this Act takes effect October 1, 2001.
1-23           (b)  The change in law made by this Act does not affect taxes
1-24     imposed before the effective date of this Act, and the law in
 2-1     effect before the effective date of this Act is continued in effect
 2-2     for the purposes of the liability for and collection of those
 2-3     taxes.