S.B. No. 1705




AN ACT

relating to the authority of certain taxing entities to repeal the 
local sales and use tax exemption for telecommunications services.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 322.109, Tax Code, is amended by 
amending Subsection (d) and adding Subsections (f), (g), and (h) to 
read as follows:
	(d)  The governing board of a taxing entity created under 
Chapter 451, Transportation Code, may not repeal the application of 
the exemption provided by Subsection (a) unless the repeal is first 
approved by a majority of the members of the governing body of each 
municipality that created the taxing entity, except as authorized 
by Subsection (f).  A reinstatement of the exemption must be 
approved in the same manner.
	(f)  The governing board of a taxing entity created before 
1980 in which the principal municipality has a population of less 
than 1.2 million may not repeal the application of the exemption 
provided by Subsection (a) unless the repeal is first approved by a 
majority vote of a committee created under Section 451.061(d), 
Transportation Code.  A reinstatement of the exemption must be 
approved in the same manner.
	(g)  The imposition or collection of revenue resulting from a 
repeal of the application of the exemption provided by Subsection 
(a) under the procedure provided by Subsection (e) is tolled for any 
period during which the governing board obtains receipts from sales 
and use tax, collected for the purpose of an advanced 
transportation district created under Section 451.702, 
Transportation Code.
	SECTION 2.  This Act takes effect immediately 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 immediate effect, this 
Act takes effect September 1, 2003.

                                                                              




______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 1705 passed the Senate on 
April 16, 2003, by the following vote:  Yeas 31, Nays 0; and that 
the Senate concurred in House amendments on May 31, 2003, by the 
following vote:  Yeas 30, Nays 0.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 1705 passed the House, with 
amendments, on May 28, 2003, by the following vote:  Yeas 144, 
Nays 0, two present not voting.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor