Amend CSHB 3 as follows:                                                     
	(1) on page 38, on line 3, between ";" and "and" insert the 
following and renumber Section 151.0101(a) (19) as Section 151.0101 
(a) (20):
		"(19) all membership dues and fees, membership 
initiation fees, products, clothing, food, meals, and beverages 
sold by a private club that has an alcohol beverage permit under 
Chapter 32, Alcohol Beverage Code;."
	(2)  on page 38, following line 11, by adding new Sections 
3A.07 and 3A.08 to read as follows and renumbering subsequent 
sections:
	"SECTION 3A.07. Subchapter H, Chapter 151, Tax Code, is 
amended by adding Section 151.327 to read as follows:
	Sec. 151.327. SCHOOL SUPPLIES, TEXTBOOKS, BOOKS, AND OTHER 
INSTRUCTIONAL MATERIALS BEFORE START OF SCHOOL. (a)  The sale or 
storage, use, or other consumption of a school supply, including 
textbooks, books, and other instructional materials, is exempted 
from the taxes imposed by this chapter if the school supply is 
purchased:
		(1)  for use by a student in a class in a public or 
private elementary or secondary school;
		(2)  during the period described by Section 151.326 (a) 
(2); and     
		(3)  for a sales price of less than $100 per item.                     
	(b)  For purposes of this exemption, "school supply" means:             
		(1)  crayons;                                                          
		(2)   scissors;                                                        
		(3)  glue, paste, and glue sticks;                                     
		(4)  pencils;                                                          
		(5)  pens;                                                             
		(6)  erasers;                                                          
		(7)  rulers;                                                           
		(8)  markers;                                                          
		(9)  highlighters;                                                     
		(10)  paper, including loose-leaf ruled notebook paper, 
copy paper, graph paper, tracing paper, manila paper, colored 
paper, poster board, and construction paper;
		(11)  writing tablets;                                                 
		(12)  spiral notebooks;                                                
		(13)   bound composition notebooks;                                    
		(14)  pocket folders;                                                  
		(15)  plastic folders;                                                 
		(16)  expandable portfolios;                                           
		(17)  manila folders;                                                  
		(18)  three-ring binders that are three inches or less 
in capacity;  
		(19)  backpacks and zipper pencil bags;                                
		(20)  school supply boxes;                                             
		(21)  clipboards;                                                      
		(22)  index cards;                                                     
		(23)  index card boxes;                                                
		(24)  calculators;                                                     
		(25)  protractors;                                                     
		(26)  compasses;                                                       
		(27)  music notebooks;                                                 
		(28)  sketch or drawing pads;                                          
		(29)  paintbrushes;                                                    
		(30)  watercolors;                                                     
		(31)  acrylic, tempera, or oil paints;                                 
		(32)  tape, including masking tape and Scotch tape;                    
		(33)  clay and glazes;                                                 
		(34)  pencil sharpeners;                                               
		(35)  thesauruses; and                                                 
		(36)  dictionaries.                                                    
	(c)  A retailer is not required to obtain an exemption 
certificate stating that the school supplies are purchased for use 
by a student in a class in a public or private elementary or 
secondary school unless the supplies are purchased in a quantity 
that indicates that the supplies are not purchased for use by a 
student in a class in a public or private elementary or secondary 
school.
	SECTION 3A.08. Section 151.328(b), Tax Code, is repealed."                     
	(3) on page 39, strike lines 11 through 16 and substitute the 
following:     
	"SECTION 3B.04. Sections 152.026(a) and (b), Tax Code, are 
amended to read as follows:
	(a)  A tax is imposed on the gross rental receipts from the 
rental of a rented motor vehicle or boat or aircraft.
	(b)  The tax rate is 10 percent of the gross rental receipts 
from the rental of a rented motor vehicle or boat or aircraft for 30 
days or less and 7.35 [6¼] percent of the gross rental receipts from 
the rental of a rented motor vehicle or boat or aircraft for longer 
than 30 days."