1-1     By:  Jackson                                          S.B. No. 1678
 1-2           (In the Senate - Filed March 9, 2001; March 14, 2001, read
 1-3     first time and referred to Committee on Finance; April 24, 2001,
 1-4     reported favorably, as amended, by the following vote:  Yeas 11,
 1-5     Nays 0; April 24, 2001, sent to printer.)
 1-6     COMMITTEE AMENDMENT NO. 1                              By:  Jackson
 1-7           Amend S.B. No. 1678 by inserting an appropriately numbered
 1-8     SECTION of the bill to read as follows and renumbering subsequent
 1-9     SECTIONs appropriately:
1-10           SECTION 3.  Section 151.3511, Tax Code, as added by this Act,
1-11     expires August 31, 2003.
1-12                            A BILL TO BE ENTITLED
1-13                                   AN ACT
1-14     relating to exempting certain electronic information services from
1-15     the sales and use tax.
1-16           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-17           SECTION 1.  Section 151.351, Tax Code, is amended to read as
1-18     follows:
1-19           Sec. 151.351.  INFORMATION SERVICES AND DATA PROCESSING
1-20     SERVICES.  Except as provided by Section 151.3511, there [There] is
1-21     exempted from the taxes imposed by this chapter 20 percent of the
1-22     value of information services and data processing services.
1-23           SECTION 2.  Subchapter H, Chapter 151, Tax Code, is amended
1-24     by adding Section 151.3511 to read as follows:
1-25           Sec. 151.3511.  LOCAL ELECTRONIC INFORMATION SERVICES.  The
1-26     sale of an information service is exempt from the taxes imposed by
1-27     this chapter if the service:
1-28                 (1)  delivers its information by fax or electronic mail
1-29     over the Internet;
1-30                 (2)  does not contain any advertisements;
1-31                 (3)  is issued not more than once each business day;
1-32                 (4)  costs less than $500 for a yearly subscription or
1-33     an equivalent amount if the subscription is for a period other than
1-34     a year; and
1-35                 (5)  does not have more than 750 subscribers.
1-36           SECTION 3.  (a)  This Act takes effect July 1, 2001, if it
1-37     receives a vote of two-thirds of all the members elected to each
1-38     house, as provided by Section 39, Article III, Texas Constitution.
1-39     If this Act does not receive the vote necessary for effect on that
1-40     date, this Act takes effect October 1, 2001.
1-41           (b)  The change in law made by this Act does not affect taxes
1-42     imposed before the effective date of this Act, and the law in
1-43     effect before the effective date of this Act is continued in effect
1-44     for purposes of the liability for and collection of those taxes.
1-45                                  * * * * *