By:  Carona                                            H.B. No. 437
       73R2495 CBH-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to excluding compensation of directors and executive
    1-3  officers of certain banks in computing franchise tax liability.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 171.110(b), Tax Code, is amended to read
    1-6  as follows:
    1-7        (b)  A corporation is not required to add the compensation of
    1-8  officers or directors as required by Subsection (a)(1) if the
    1-9  corporation is:
   1-10              (1)  a corporation that has not more than 35
   1-11  shareholders; <or>
   1-12              (2)  an S corporation, as that term is defined by
   1-13  Section 1361, Internal Revenue Code; or
   1-14              (3)  a banking corporation that has less than $50
   1-15  million in total assets as reported on the bank's December 31
   1-16  statement of condition for that tax year.
   1-17        SECTION 2.  This Act takes effect January 1, 1994, and
   1-18  applies to a privilege period beginning on or after that date.  The
   1-19  change in law made by this Act does not affect the obligation for
   1-20  or the payment, computation, and collection of the franchise tax
   1-21  for a period not covered by this section.
   1-22        SECTION 3.  The importance of this legislation and the
   1-23  crowded condition of the calendars in both houses create an
   1-24  emergency and an imperative public necessity that the
    2-1  constitutional rule requiring bills to be read on three several
    2-2  days in each house be suspended, and this rule is hereby suspended.