By: Hinojosa	S.B. No. 1151
	(In the Senate - Filed March 5, 2013; March 12, 2013, read
	first time and referred to Committee on Finance; April 22, 2013,
	reported adversely, with favorable Committee Substitute by the
	following vote:  Yeas 13, Nays 1; April 22, 2013, sent to printer.)
	COMMITTEE SUBSTITUTE FOR S.B. No. 1151	By:  Whitmire

	A BILL TO BE ENTITLED
	AN ACT
	relating to sales and use tax treatment of certain snack items.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 151.314, Tax Code, is amended by
	amending Subsection (b) and adding Subsections (b-1) and (h) to
	read as follows:
	(b)  "Food products" shall include, except as otherwise
	provided herein, but shall not be limited to cereals and cereal
	products; milk and milk products, including ice cream;
	oleomargarine; meat and meat products; poultry and poultry
	products; fish and fish products; eggs and egg products; vegetables
	and vegetable products; fruit and fruit products; spices,
	condiments, and salt; sugar and sugar products; coffee and coffee
	substitutes; tea; cocoa products; snack items; or any combination
	of the above.
	(b-1)  For purposes of this section, "snack items" includes:
	(1)  breakfast bars, granola bars, nutrition bars,
	sports bars, protein bars, or yogurt bars, unless labeled and
	marketed as candy;
	(2)  snack mix or trail mix;
	(3)  nuts, unless candy-coated;
	(4)  popcorn; and
	(5)  chips, crackers, or hard pretzels.
	(h)  The exemption provided by Subsection (a) does not apply
	to a snack item if the item is sold through a vending machine or is
	sold in individual-sized portions.  For purposes of this
	subsection, an individual-sized portion is a portion that:
	(1)  is labeled as having not more than one serving; or
	(2)  contains less than 2.5 ounces, if the package does
	not specify the number of servings.
	SECTION 2.  The change in law made by this Act does not
	affect tax liability accruing before the effective date of this
	Act. That liability continues in effect as if this Act had not been
	enacted, and the former law is continued in effect for the
	collection of taxes due and for civil and criminal enforcement of
	the liability for those taxes.
	SECTION 3.  This Act takes effect September 1, 2013.
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