82R16512 E
 
  By: Guillen H.B. No. 475
 
  Substitute the following for H.B. No. 475:
 
  By:  Sheffield C.S.H.B. No. 475
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to authorizing the adjutant general to operate post
  exchanges on state military property.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 431, Government Code, is
  amended by adding Section 431.040 to read as follows:
         Sec. 431.040.  POST EXCHANGES ON STATE MILITARY PROPERTY.
  (a) The adjutant general may establish and contract for the
  operation of not more than three military-type post exchanges
  similar to those operated by the armed forces of the United States
  on any real property under the management and control of the
  department. A post exchange may sell, lease, or rent goods and
  services, including beer and wine, tobacco products, and prepared
  foods. The adjutant general may designate facilities located on
  department property to use for purposes of this section.
         (b)  The adjutant general shall adopt rules to govern post
  exchanges established under this section that are similar to the
  procedures, policies, and restrictions governing exchanges of the
  Army and Air Force Exchange Service, including rules that require
  an individual to show identification that indicates that the
  individual is qualified to buy, lease, or rent goods at the post
  exchange.
         (c)  The adjutant general shall contract with a person to
  operate a post exchange created under this section.
         (d)  A post exchange may sell, lease, or rent goods and
  services only to:
               (1)  active, retired, and reserve members of the United
  States armed services;
               (2)  active and retired members of the state military
  forces;
               (3)  full-time employees of the adjutant general's
  department; and
               (4)  dependents of an individual described by
  Subdivisions (1)-(3).
         (e)  The post exchange services account is a company fund
  under Section 431.014 and may be used in a manner authorized by the
  General Appropriations Act for local funds. The post exchange
  services account is exempt from the application of Sections 403.095
  and 404.071. The account consists of:
               (1)  money received from the operation of post
  exchanges created under this section; and
               (2)  all interest attributable to money held in the
  account.
         (f)  A post exchange created under this section may sell
  goods and services, including beer and wine, for off-premises
  consumption if the operator of the exchange holds the appropriate
  license or permit issued by the Texas Alcoholic Beverage
  Commission.  The licensee or permittee shall comply in all respects
  with the provisions of the Alcoholic Beverage Code and the rules of
  the Texas Alcoholic Beverage Commission. The department may use
  appropriated money to purchase alcoholic beverages for sale at a
  post exchange.
         (g)  Chapter 94, Human Resources Code, does not apply to
  vending facilities operated at a post exchange.
         SECTION 2.  Subchapter H, Chapter 151, Tax Code, is amended
  by adding Section 151.344 to read as follows:
         Sec. 151.344.  POST EXCHANGES ON STATE MILITARY PROPERTY.  
  (a)  A taxable item sold, leased, or rented to, or stored, used, or
  consumed by, a post exchange under Section 431.040, Government
  Code, is exempt from the taxes imposed by this chapter.
         (b)  A taxable item sold, leased, or rented by a post
  exchange under Section 431.040, Government Code, is exempt from the
  taxes imposed by this chapter.
         SECTION 3.  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, 2011.