By Ogden S.B. No. 369 77R2520 SMJ-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the application of the sales and use tax to certain 1-3 items used in construction by nonprofit water supply and sewer 1-4 service corporations. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended by 1-7 adding Section 151.3105 to read as follows: 1-8 Sec. 151.3105. ITEMS USED IN CONSTRUCTION BY CERTAIN 1-9 NONPROFIT WATER SUPPLY CORPORATIONS. (a) This section applies only 1-10 to a nonprofit water supply or sewer service corporation that is 1-11 organized under Chapter 67, Water Code, and exempted from the 1-12 payment of taxes under Section 11.30. 1-13 (b) A taxable item is exempted from the taxes imposed by 1-14 this chapter if sold, leased, or rented to, or stored, used, or 1-15 consumed by, a nonprofit water supply or sewer service corporation 1-16 in connection with construction that is directly related to the 1-17 corporation's purpose under Section 67.002, Water Code. 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.