HBA-JRA H.B. 1250 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1250 By: Maxey Ways & Means 2/25/1999 Introduced BACKGROUND AND PURPOSE Nearly every Texas household has a telephone and pays approximately the same amount for basic telephone service. Therefore, a tax exemption on basic phone service would benefit nearly every Texan. H.B. 1250 exempts basic phone service from sales and use tax. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 151.0103, Tax Code, to provide that, for the purposes of this title (State Taxation), the term "telecommunications services" does not include basic local exchange telephone service. Establishes that "basic local exchange telephone service" means the provision by a telephone company of each access line and each dial tone to a fixed location for sending and receiving telecommunications in the telephone company's local exchange network. Provides that services are considered to be basic whether the customer has access to a private line or party line or whether the customer has limited or unlimited access. Provides that the term does not include longdistance telephone service or enhanced or auxiliary services. Makes conforming changes. SECTION 2. Amends Section 57.042(9), Utilities Code, to define "telecommunications receipts," rather than "taxable telecommunications receipts," as taxable telecommunications receipts reported under Chapter 151 (Limited Sales, Excise, and Use Tax), Tax Code, and receipts from basic local exchange telephone service exempted from taxation under Section 151.0103, Tax Code, that were reported under Chapter 151, Tax Code, as that law existed on January 1, 1999. SECTION 3. Amends Section 57.048(b), Utilities Code, to make conforming changes. SECTION 4. (a) Provides that the text of Sections 57.042(9) and 57.048(b), Utilities Code, as set out in this Act, gives effect to changes made by Chapter 145, Acts of the 75th Legislature, Regular Session, 1997, in accordance with Section 311.031(a) (Saving Provisions), Government Code. (b) Provides that this Act controls over another Act of the 76th Legislature, Regular Session, 1999, to the extent of any conflict relating to nonsubstantive additions or corrections in enacted codes. SECTION 5. (a) Provides that this Act takes effect on the first day of the first calendar quarter beginning on or after 90 days after adjournment. (b) Makes application of this Act prospective. SECTION 6. Emergency clause.