By:  Coleman                                                      H.B. No. 2281

relating to taxes and fees. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 151, Tax Code, is amended by adding Section 151.0041 to read as follows: Sec. 151.0041. LEGAL SERVICES. "Legal services" means an act or activity constituting the practice of law and any other act or activity provided by an attorney-at-law licensed by the Supreme Court of Texas to a client in connection with the practice of law. The term also includes services provided by a paralegal or a legal secretary employed by an attorney-at-law and provided to the attorney's client in connection with the practice of law. SECTION 2. Section 151.0101(a), Tax Code, is amended to read as follows: (a) "Taxable services" means: (1) amusement services; (2) cable television services; (3) personal services; (4) motor vehicle parking and storage services; (5) the repair, remodeling, maintenance, and restoration of tangible personal property, except: (A) aircraft; (B) a ship, boat, or other vessel, other than: (i) a taxable boat or motor as defined by Section 160.001; (ii) a sports fishing boat; or (iii) any other vessel used for pleasure; (C) the repair, maintenance, and restoration of a motor vehicle; and (D) the repair, maintenance, creation, and restoration of a computer program, including its development and modification, not sold by the person performing the repair, maintenance, creation, or restoration service; (6) telecommunications services; (7) credit reporting services; (8) debt collection services; (9) insurance services; (10) information services; (11) real property services; (12) data processing services; (13) real property repair and remodeling; (14) security services; (15) telephone answering services; (16) Internet access service; [and] (17) a sale by a transmission and distribution utility, as defined in Section 31.002, Utilities Code, of transmission or delivery of service directly to an electricity end-use customer whose consumption of electricity is subject to taxation under this chapter; and (18) legal services. SECTION 3. Section 154.021(b), Tax Code, is amended to read as follows: (b) The tax rates are: (1) $20.51 [$20.50] per thousand on cigarettes weighing three pounds or less per thousand; and (2) the rate provided by Subdivision (1) plus $2.10 per thousand on cigarettes weighing more than three pounds per thousand. SECTION 4. Section 171.853(a), Tax Code, as added by Chapter 1219, Acts of the 77th Legislature, Regular Session, 2001, is amended to read as follows: (a) The amount of the credit is 11 [10] percent of the wages paid by the corporation for each qualified employee. SECTION 5. Section 153.051(d), Occupations Code, is amended to read as follows: (d) The board may not set, charge, collect, receive, or deposit any of the following fees in excess of: (1) $1,800 [$900] for a license; (2) $600 [$200] for a first annual registration permit; (3) $600 [$200] for a temporary license; (4) $600 [$200] for renewal of an annual registration permit; (5) $600 [$200] for a physician-in-training permit; (6) $900 [$300] for the processing of an application and the issuance of an annual registration for anesthesia in an outpatient setting; (7) $600 [$200] for an endorsement to other state medical boards; (8) $600 [$200] for a duplicate license; or (9) $2,100 [$700] for a reinstated license after cancellation for cause. SECTION 6. (a) This Act takes effect September 1, 2003. (b) The change in law made by this Act does not affect taxes or fees 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 and fees.