78R5476 CBH-F

By:  Smith of Tarrant                                             H.B. No. 1286



A BILL TO BE ENTITLED

AN ACT

relating to the exemption of certain food from the sales and use 
tax.       
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 151.314(e), Tax Code, is amended to read 
as follows:     
	(e)  Food products, candy, carbonated beverages, and diluted 
juices are exempted from the taxes imposed by this chapter if sold 
at an exempt sale qualifying under this subsection or if stored or 
used by the purchaser of the item at the exempt sale.  A sale is 
exempted under this subsection if:
		(1)  the sale is made by a [person under 19 years old 
who is a] member of or volunteer for a nonprofit organization 
devoted to the exclusive purpose of education or religious or 
physical training or by a group associated with a public or private 
elementary or secondary school;
		(2)  the sale is made as a part of a fund-raising drive 
sponsored by the organization or group; and
		(3)  all net proceeds from the sale go to the 
organization or group for its exclusive use.
	SECTION 2.  (a)  This Act takes effect July 1, 2003, if it 
receives a vote of two-thirds of all the members elected to each 
house, as provided by Section 39, Article III, Texas Constitution. 
If this Act does not receive the vote necessary for effect on that 
date, this Act takes effect September 1, 2003.
	(b)  The change in law made by this Act does not affect taxes 
imposed before the effective date of this Act, and the former law is 
continued in effect for purposes of the liability for and 
collection of those taxes.