78R1134 CBH-D

By:  Dutton                                                       H.B. No. 376



A BILL TO BE ENTITLED

AN ACT

relating to a requirement that retail grocers post a sign listing 
items that are exempt from the sales and use tax.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.   Subchapter H, Chapter 151, Tax Code, is amended 
by adding Section 151.3015 to read as follows:
	Sec. 151.3015.  REQUIREMENT FOR SIGN LISTING EXEMPTIONS. 
(a)  In this section, "retail grocer" has the meaning assigned by 
Section 151.414.
	(b)  Each retail grocer shall post a sign in a location that 
is conspicuous to all employees and customers that lists relevant 
items that are exempt from the taxes imposed by this chapter.
	(c)  The comptroller by rule shall prescribe the design and 
size of the sign and the relevant items that must be listed on the 
sign.  The comptroller shall determine which items are relevant for 
listing based on whether the item is usually sold by retail grocers.
	(d)  The comptroller shall review the sign each biennium to 
determine if the listings require amendment.
	(e)  The comptroller shall provide the sign to retail grocers 
at a reasonable charge.
	SECTION 2.   This Act takes effect September 1, 2003.  Each 
retail grocer shall post the sign required by Section 151.3015, Tax 
Code, as added by this Act, not later than January 1, 2004.