HBA-AMW H.B. 3609 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3609 By: Davis, Yvonne Ways & Means 4/1/2001 Introduced BACKGROUND AND PURPOSE Current law exempts from limited sales, excise, and use taxes gas and electricity used in the manufacturing of goods under contract with the United States government, foreign governments, and defense-related or national security-related projects, but does not exempt the owner of a building that leases space to a manufacturer involved in these activities. House Bill 3609 exempts from limited sales, excise, and use taxes for gas and electricity the owner of a building that leases space to a manufacturer involved in a contract with or on behalf of the United States government or foreign governments, defense or national security- related electronics, classified intelligence data processing and handling systems, or defense-related platform modifications or upgrades. 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. ANALYSIS House Bill 3609 amends the Tax Code to provide that natural gas or electricity is exempt from limited sales, excise, and use taxes if it is sold to an owner of a building or a management company that directly passes the actual charge for gas or electricity to a tenant who performs exempt activities involving contracts with or on behalf of the United States government or foreign governments, defense or national security-related electronics, classified intelligence data processing and handling systems, or defense-related platform modifications or upgrades. EFFECTIVE DATE September 1, 2001.