By Ogden                                              S.B. No. 1471
         77R7203 SMJ-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the application of the sales tax to certain food served
 1-3     to students at institutions of higher education.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 151.314(d), Tax Code, is amended to read
 1-6     as follows:
 1-7           (d)  Food products, meals, soft drinks, and candy for human
 1-8     consumption are exempted from the taxes imposed by this chapter if:
 1-9                 (1)  served by a public or private school, school
1-10     district, student organization, or parent-teacher association under
1-11     an agreement with the proper school authorities in an elementary or
1-12     secondary school during the regular school day or by a
1-13     parent-teacher association during a fund-raising sale the proceeds
1-14     of which do not benefit an individual;
1-15                 (2)  sold by a church or at a function of a church;
1-16                 (3)  served to a patient or inmate of a hospital or
1-17     other institution licensed by the state for the care of humans;
1-18     [or]
1-19                 (4)  served to a permanent resident of a retirement
1-20     facility which provides permanent housing and residence to
1-21     individuals, a majority of whom are 60 years or older; or
1-22                 (5)  served to a student at an institution of higher
1-23     education or a private or independent institution of higher
1-24     education, as those terms are defined by Section 61.003, Education
 2-1     Code, as part of a meal plan program provided by the institution.
 2-2           SECTION 2.  (a)  This Act takes effect July 1, 2001, if it
 2-3     receives a vote of two-thirds of all members elected to each house,
 2-4     as provided by Section 39, Article III, Texas Constitution.  If
 2-5     this Act does not receive the vote necessary for effect on that
 2-6     date, this Act takes effect October 1, 2001.
 2-7           (b)  The change in law made by this Act does not affect taxes
 2-8     imposed before the effective date of this Act, and the law in
 2-9     effect before the effective date of this Act is continued in effect
2-10     for the purposes of the liability for and collection of those
2-11     taxes.