Texas Senate Bill SB1732

Texas 2011 - 82nd Regular

• Out of Senate Committee: 4/11/11
• Voted on by Senate: 4/21/11
• Out of House Committee: 5/16/11
• Report Pass: 4/11/11
• Voted on by House: 5/23/11
• Engrossed: 4/21/11
• Governor Action: 6/17/11
• Refer: 4/26/11
• Report Pass: 5/5/11
• Enrolled: 5/27/11
• Passed: 6/17/11

Caption

Relating to authorizing the adjutant general to operate post exchanges on state military property.

Impact

One key feature of SB1732 is its provision for tax exemption on sales made through these post exchanges, which includes a variety of goods and services such as tobacco products, prepared foods, beer, and wine. This tax exemption is particularly significant as it allows the post exchanges to operate on a more favorable economic footing compared to commercial entities, potentially lowering prices for eligible consumers and encouraging sales. The bill aims to ensure that service members and their families have convenient access to necessary goods in their local military community.

Summary

Senate Bill 1732 seeks to authorize the adjutant general of Texas to operate military-type post exchanges on state military property. This initiative allows for the establishment and contract of up to three such exchanges, aligning their operation with existing procedures and policies similar to the Army and Air Force Exchange Service. These exchanges would primarily serve active, retired, and reserve members of the armed services, as well as their dependents and certain employees of the adjutant general's department.

Contention

While the bill generally enjoys support for its aim to enhance service members' benefits, there may be concerns regarding the economic implications for local businesses that compete with these post exchanges. Critics argue that the tax-exempt status could undermine local markets and raise questions about fairness, as local retailers must compete against exchanges that do not incur the same tax burdens. Nonetheless, proponents emphasize the importance of supporting military personnel and providing them with easy access to commercial goods.