By: Stiles H.B. No. 2010
73R3748 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the apportionment of taxable capital and taxable earned
1-3 surplus of a banking corporation or savings and loan association.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 171.101(a) and (c), Tax Code, are
1-6 amended to read as follows:
1-7 (a) Except as provided by Subsections (b) and (c), the net
1-8 taxable capital of a corporation is computed by:
1-9 (1) adding the corporation's stated capital, as
1-10 defined by Article 1.02, Texas Business Corporation Act, and the
1-11 corporation's surplus, to determine the corporation's taxable
1-12 capital;
1-13 (2) apportioning the corporation's taxable capital to
1-14 this state as provided by Section 171.106(a) or (c), as applicable,
1-15 or if a banking corporation, as provided by Section 171.1065, to
1-16 determine the corporation's apportioned taxable capital; and
1-17 (3) subtracting from the amount computed under
1-18 Subdivision (2) any other allowable deductions to determine the
1-19 corporation's net taxable capital.
1-20 (c) The net taxable capital of a savings and loan
1-21 association is computed by:
1-22 (1) determining the association's net worth; <and>
1-23 (2) apportioning the amount determined under
1-24 Subdivision (1) to this state in the same manner that the taxable
2-1 capital of a banking corporation is apportioned to this state under
2-2 Section 171.1065 <171.106(a)> to determine the association's
2-3 apportioned <net> taxable capital; and
2-4 (3) subtracting from the amount computed under
2-5 Subdivision (2) any other allowable deductions to determine the
2-6 association's net taxable capital.
2-7 SECTION 2. Section 171.103, Tax Code, is amended to read as
2-8 follows:
2-9 Sec. 171.103. DETERMINATION OF GROSS RECEIPTS FROM BUSINESS
2-10 DONE IN THIS STATE FOR TAXABLE CAPITAL. Except as specifically
2-11 provided by Section 171.1031 for a banking corporation or a savings
2-12 and loan association, in <In> apportioning taxable capital, the
2-13 gross receipts of a corporation from its business done in this
2-14 state is the sum of the corporation's receipts from:
2-15 (1) each sale of tangible personal property if the
2-16 property is delivered or shipped to a buyer in this state
2-17 regardless of the FOB point or another condition of the sale, and
2-18 each sale of tangible personal property shipped from this state to
2-19 a purchaser in another state in which the seller is not subject to
2-20 taxation;
2-21 (2) each service performed in this state;
2-22 (3) each rental of property situated in this state;
2-23 (4) each royalty for the use of a patent or copyright
2-24 in this state; and
2-25 (5) other business done in this state.
2-26 SECTION 3. Section 171.1031, Tax Code, is amended to read as
2-27 follows:
3-1 Sec. 171.1031. DETERMINATION OF GROSS RECEIPTS, PROPERTY,
3-2 AND PAYROLL FACTORS FOR APPORTIONMENT OF TAXABLE CAPITAL AND
3-3 TAXABLE EARNED SURPLUS OF BANKING CORPORATION AND SAVINGS AND LOAN
3-4 ASSOCIATION. (a) A banking corporation or savings and loan
3-5 association shall determine the gross receipts factor, property
3-6 factor, and payroll factor for purposes of apportioning taxable
3-7 capital and taxable earned surplus in accordance with this section.
3-8 (b) The gross receipts factor is a fraction, the numerator
3-9 of which is the gross receipts of the banking corporation or
3-10 savings and loan association from its business done in this state
3-11 during the period on which the tax is based and the denominator of
3-12 which is the gross receipts of the banking corporation or savings
3-13 and loan association within and without this state during the
3-14 period on which the tax is based. Gross receipts of a banking
3-15 corporation or savings and loan association not specifically
3-16 described by Subdivisions (1)-(13) are apportioned as business done
3-17 in this state under the rules prescribed by Section 171.103 for
3-18 taxable capital and under the rules prescribed by Section 171.1032
3-19 for taxable earned surplus. The numerator of the gross receipts
3-20 factor includes all interest and fees or penalties in the nature of
3-21 interest and all net gains (but not less than zero), charges, fees,
3-22 or other receipts of the banking corporation or savings and loan
3-23 association from:
3-24 (1) the lease or rental of real property owned by the
3-25 taxpayer or from the sublease of real property if the property is
3-26 located in this state;
3-27 (2) the lease or rental of tangible personal property
4-1 owned by the taxpayer if the property is located in this state when
4-2 it is first placed in service, other than receipts from the lease
4-3 or rental of movable tangible property, such as rolling stock,
4-4 water vessels, or mobile equipment, included in the numerator of
4-5 the property factor under Subsection (c);
4-6 (3) loans secured by real property if the real
4-7 property securing the loan is primarily located in this state at
4-8 the time the original loan agreement was made, provided that if a
4-9 loan is secured by real property not primarily located in any one
4-10 state at the time the original loan agreement is made, the gross
4-11 receipts from the loan are apportioned to this state if the
4-12 borrower is engaged in a trade or business in this state and
4-13 maintains its commercial domicile in this state or if the borrower
4-14 is not engaged in trade or business in this state but has its
4-15 billing address in this state;
4-16 (4) loans not secured by real property if the borrower
4-17 is engaged in a trade or business in this state and maintains its
4-18 commercial domicile in this state or if the borrower is not engaged
4-19 in a trade or business in this state but has its billing address in
4-20 this state;
4-21 (5) syndication loans or participation loans, provided
4-22 that the taxpayer's portion of the interest, fees, or penalties in
4-23 the nature of interest from syndication loans or participation
4-24 loans is included in the numerator of the gross receipts factor in
4-25 the same manner as gross receipts from loans are included in the
4-26 numerator of the gross receipts factor under Subdivisions (3) and
4-27 (4);
5-1 (6) syndicated lease transactions involving the lease
5-2 of real property or tangible personal property, provided that the
5-3 taxpayer's portion of the interest, fees, or penalties in the
5-4 nature of interest from syndicated lease transactions is included
5-5 in the numerator of the gross receipts factor in the same manner as
5-6 gross receipts from leases of real property or tangible personal
5-7 property are included in the numerator of the receipts factor under
5-8 Subdivisions (1) and (2);
5-9 (7) net gains, including income recorded under the
5-10 coupon stripping rule of Section 1286, Internal Revenue Code, from
5-11 the sale of all loans, including syndication loans, provided that:
5-12 (A) if the gains are from the sale of loans
5-13 secured by real property, the amount of the net gains included as
5-14 business done in this state is determined by multiplying the net
5-15 gains by a fraction, the numerator of which is the amount included
5-16 as business done in this state under Subdivision (3) and the
5-17 denominator of which is the taxpayer's total amount of interest and
5-18 fees or penalties in the nature of interest from loans secured by
5-19 real property; and
5-20 (B) if the gains are from the sale of loans not
5-21 secured by real property, the amount of the net gains included as
5-22 business done in this state is determined by multiplying the net
5-23 gains by a fraction, the numerator of which is the amount included
5-24 as business done in this state under Subdivision (4) and the
5-25 denominator of which is the taxpayer's total amount of interest and
5-26 fees or penalties in the nature of interest from loans not secured
5-27 by real property;
6-1 (8) credit card receivables and credit card fees
6-2 charged to card holders, such as annual fees, if the billing
6-3 address of the card holder is in this state;
6-4 (9) credit card issuer's reimbursement fees and any
6-5 net gains from the sale of credit card receivables, provided that
6-6 the amount of credit card issuer's reimbursement fees or net gains
6-7 from the sale of credit card receivables included as business done
6-8 in this state is determined by multiplying the credit card issuer's
6-9 reimbursement fees or net gains from the sale of credit card
6-10 receivables, respectively, by a fraction, the numerator of which is
6-11 the amount included as business done in this state from credit card
6-12 receivables and credit card fees under Subdivision (8) and the
6-13 denominator of which is the taxpayer's total amount of gross
6-14 receipts from credit card receivables and credit card fees charged
6-15 to card holders;
6-16 (10) merchant discounts, if the commercial domicile of
6-17 the merchant is in this state;
6-18 (11) loan servicing fees from loans secured by real
6-19 property, provided that:
6-20 (A) if the loan servicing fees are derived from
6-21 loans secured by real property, the amount of the loan servicing
6-22 fees included as business done in this state is determined by
6-23 multiplying the loan servicing fees by a fraction, the numerator of
6-24 which is the amount included as business done in this state under
6-25 Subdivision (3) and the denominator of which is the taxpayer's
6-26 total amount of gross receipts from loans secured by real property;
6-27 and
7-1 (B) if the loan servicing fees are derived from
7-2 loans not secured by real property, the amount of the loan
7-3 servicing fees included as business done in this state is
7-4 determined by multiplying the loan servicing fees by a fraction,
7-5 the numerator of which is the amount included as business done in
7-6 this state under Subdivision (4) and the denominator of which is
7-7 the taxpayer's total amount of gross receipts from loans not
7-8 secured by real property;
7-9 (12) all other fees or charges for services not
7-10 otherwise apportioned under this subsection, if the service is
7-11 performed in this state; and
7-12 (13) investments in securities and from trading
7-13 activities, including investment securities, assets held in trading
7-14 accounts, federal funds, securities purchased or sold under
7-15 agreements to resell or repurchase, options, futures contracts,
7-16 forward contracts, notional principal contracts such as swaps, and
7-17 foreign currency transactions, provided that:
7-18 (A) if the income is from investments in
7-19 securities in the investment portfolio, the amount of the income
7-20 included as business done in this state is determined by
7-21 multiplying all the income by a fraction, the numerator of which is
7-22 the average value of such investments that are booked at a regular
7-23 place of business of the taxpayer within this state and the
7-24 denominator of which is the average value of all such investments;
7-25 and
7-26 (B) if the income is from investments in
7-27 securities not in the investment portfolio or from trading
8-1 activities, the amount of the income included as business done in
8-2 this state is determined by multiplying all the income by a
8-3 fraction, the numerator of which is the average value of such
8-4 investments and trading activities that are booked at a regular
8-5 place of business of the taxpayer in this state and the denominator
8-6 of which is the average value of all such investments.
8-7 (c) The property factor is a fraction that represents the
8-8 percentage of the taxpayer's real property, tangible personal
8-9 property, loans, and credit card receivables apportioned to this
8-10 state during the period on which the tax is based. The numerator
8-11 of the fraction is the average value of such property located in
8-12 this state, and the denominator of the fraction is the average
8-13 value of all such property located both within and without this
8-14 state. The numerator of the property factor includes:
8-15 (1) real property owned or rented to the taxpayer, if
8-16 the property is physically located or situated in this state;
8-17 (2) movable tangible property, such as rolling stock,
8-18 water vessels, or mobile equipment, to the extent that the property
8-19 is used in this state;
8-20 (3) loans and all credit card receivables that are:
8-21 (A) booked at a regular place of business of the
8-22 taxpayer in this state;
8-23 (B) if the taxpayer is organized under the laws
8-24 of the United States or of any state, booked at a place of business
8-25 in this state that is not a regular place of business of the
8-26 taxpayer if the taxpayer's commercial domicile is in this state; or
8-27 (C) if a taxpayer is organized under the laws of
9-1 a foreign country, booked at a place of business in this state that
9-2 is not a regular place of business of the taxpayer if the taxpayer
9-3 has declared this state to be its home state under the
9-4 International Banking Act of 1978 (12 U.S.C. Section 3101 et seq.),
9-5 provided that if that declaration has not been made or is not
9-6 required, the loan is presumed to be located at the place in the
9-7 United States where the taxpayer has the most employees; and
9-8 (4) any other loan that is demonstrated to have a
9-9 preponderance of substantive contact with this state under rules
9-10 established by the comptroller taking into consideration actions
9-11 such as solicitation, investigation, negotiation, approval, and
9-12 administration of the loan in this state.
9-13 (d) The average value of property owned by the taxpayer is
9-14 determined for purposes of the property factor on an annual basis
9-15 by adding the value of the property on the first day of the taxable
9-16 year and the value on the last day of the taxable year and dividing
9-17 the sum by two. The average value of real property and tangible
9-18 personal property that the taxpayer has leased from another and
9-19 that is not treated as owned by the taxpayer for federal income tax
9-20 purposes is determined on an annual basis by multiplying the gross
9-21 rents payable during the taxable year by eight. The value of the
9-22 property is determined as follows:
9-23 (1) real property and tangible personal property owned
9-24 by the taxpayer is valued at the cost or other basis of the
9-25 property for federal income tax purposes without regard to
9-26 depletion, depreciation, or amortization;
9-27 (2) loans are valued at their outstanding principal
10-1 balances without regard to any reserve for bad debts, provided that
10-2 if a loan is charged off in whole or in part for federal income tax
10-3 purposes, the portion of the loan charged off is not considered
10-4 part of the outstanding balance and any specifically allocated
10-5 reserve established under regulatory or financial accounting
10-6 guidelines that is treated as charged off for federal income tax
10-7 purposes is treated as charged off for purposes of this subsection;
10-8 and
10-9 (3) credit card receivables are valued at their
10-10 outstanding principal balance without regard to any reserve for bad
10-11 debts, provided that if a credit card receivable is charged off in
10-12 whole or in part for federal income tax purposes, the portion of
10-13 the receivable charged off is not considered part of the
10-14 outstanding balance.
10-15 (e) The payroll factor is a fraction, the numerator of which
10-16 is the total amount paid in this state by the taxpayer for
10-17 compensation during the period on which the tax is based and the
10-18 denominator of which is the total amount paid by the taxpayer as
10-19 compensation within and without this state during the period on
10-20 which the tax is based. The amount paid to an employee for
10-21 services or activities connected to the production of nonbusiness
10-22 income and the amount paid to an independent contractor or a person
10-23 not deemed to be an employee of the taxpayer under Section 3401,
10-24 Internal Revenue Code, is excluded from both the numerator and
10-25 denominator of the factor. In this subsection:
10-26 (1) "Compensation" includes all wages, salaries,
10-27 commissions, and any other forms of remuneration paid to an
11-1 employee for personal services that are considered income under the
11-2 Internal Revenue Code.
11-3 (2) "Employee" means an officer of a corporation or an
11-4 individual who, under the usual common-law rules applicable in
11-5 determining the employer-employee relationship, has the status of
11-6 an employee. For an employee not subject to the Internal Revenue
11-7 Code, including, for example, a person employed in a foreign
11-8 country, the determination of whether a payment to the employee
11-9 constitutes income paid to the employee is made as though the
11-10 employee were subject to the Internal Revenue Code. Compensation
11-11 paid in this state shall equal the total compensation taken from
11-12 the federal payroll tax reports for the period on which the tax is
11-13 based that is attributable to this state. Compensation is paid in
11-14 this state if any one of the following tests, applied
11-15 consecutively, is met:
11-16 (A) the employee's service is performed entirely
11-17 within this state;
11-18 (B) the employee's service is performed both
11-19 within and without this state, but the service performed without
11-20 this state is incidental to the employee's service within this
11-21 state because it is temporary or transitory in nature or is
11-22 rendered in connection with an isolated transaction;
11-23 (C) if the employee's services are performed
11-24 both within and without this state, the employee's compensation is
11-25 attributed to this state:
11-26 (i) if the employee's base of operations
11-27 is within this state;
12-1 (ii) if there is no base of operations in
12-2 any state in which some part of the service is performed, but the
12-3 place from which the service is directed or controlled is in this
12-4 state; or
12-5 (iii) if the base of operations or the
12-6 place from which the service is directed or controlled is not in
12-7 any state in which some part of the service is performed, but the
12-8 employee's residence is in this state.
12-9 (3) "Place from which the service is directed or
12-10 controlled" means the place from which the power to direct or
12-11 control is exercised by the taxpayer.
12-12 (4) "Base of operations" means the place of more or
12-13 less permanent nature from which the employee starts the employee's
12-14 work and to which the employee customarily returns to:
12-15 (A) receive instructions from the taxpayer or
12-16 communications from the employee's customers or other persons; or
12-17 (B) perform any other functions necessary to the
12-18 exercise of the employee's trade or profession at some other point
12-19 or points.
12-20 (f) In this section:
12-21 (1) "Billing address" means the location indicated in
12-22 the books and records of the taxpayer as the address where any
12-23 notice, statement, or bill relating to a customer's account is
12-24 mailed.
12-25 (2) "Commercial domicile" means the headquarters of
12-26 the trade or business, that is, the place from which the trade or
12-27 business is principally managed and directed.
13-1 (3) "Credit card" means a credit, travel, or
13-2 entertainment card.
13-3 (4) "Credit card issuer's reimbursement fee" means the
13-4 receipts a taxpayer receives from a merchant's bank because one of
13-5 the persons to whom the taxpayer has issued a credit card has
13-6 charged merchandise or services to the credit card.
13-7 (5) "Gross rents" means the actual sum of money or
13-8 other consideration payable, directly or indirectly, by or on
13-9 behalf of the taxpayer for the use or possession of the property.
13-10 The term:
13-11 (A) includes any amount payable for the use or
13-12 possession of real property or tangible property whether designated
13-13 as a fixed sum of money or as a percentage of receipts, as profits,
13-14 or otherwise;
13-15 (B) includes any amount payable as additional
13-16 rent or in lieu of rent, such as interest, taxes, insurance,
13-17 repairs, or any other amount required to be paid by the terms of a
13-18 lease or other arrangement;
13-19 (C) includes a proportionate part of the cost of
13-20 any improvement to real property made by or on behalf of the
13-21 taxpayer that reverts to the owner or lessor on termination of a
13-22 lease or other arrangement, determined by computing the amount of
13-23 amortization or depreciation allowed in computing the taxable
13-24 income base for the taxable year; except that if a building is
13-25 erected on leased land by or on behalf of the taxpayer, the value
13-26 of the land is determined by multiplying the gross rent by eight
13-27 and the value of the building is determined in the same manner as
14-1 if owned by the taxpayer; and
14-2 (D) does not include:
14-3 (i) amounts payable as separate charges
14-4 for water and electric service provided by the lessor;
14-5 (ii) amounts payable as service charges
14-6 for services such as janitorial services provided by the lessor;
14-7 (iii) amounts payable for storage,
14-8 provided the amounts are payable for space not designated and not
14-9 under the control of the taxpayer; and
14-10 (iv) that portion of any rental payment
14-11 that is applicable to the space subleased from the taxpayer and not
14-12 used by it.
14-13 (6) "Loan" means any extension of credit resulting
14-14 from direct negotiations between the taxpayer and its customer, or
14-15 the purchase, in whole or in part, of the extension of credit from
14-16 another, or both. The term includes leases treated as loans for
14-17 federal income tax purposes, but does not include:
14-18 (A) loans representing property acquired in lieu
14-19 of or pursuant to a foreclosure under Section 595, Internal Revenue
14-20 Code;
14-21 (B) futures or forward contracts, options, and
14-22 notional principal contracts, such as swaps;
14-23 (C) credit card receivables, including purchased
14-24 credit card relationships;
14-25 (D) noninterest-bearing balances due from other
14-26 depository institutions;
14-27 (E) cash items in the process of collection;
15-1 (F) federal funds sold;
15-2 (G) securities purchased under agreements to
15-3 resell;
15-4 (H) assets held in a trading account; and
15-5 (I) securities held for investment.
15-6 (7) "Merchant discount" means the fee or negotiated
15-7 discount charged to a merchant by the taxpayer for the privilege of
15-8 participating in a program in which a credit card is accepted in
15-9 payment for merchandise or services sold to the card holder. The
15-10 fee is computed net of any card holder charge-backs, but is not
15-11 reduced by an interchange transaction fee or by a credit card
15-12 issuer's reimbursement fee paid to another for charges made by its
15-13 card holders.
15-14 (8) "Real property owned" and "tangible personal
15-15 property owned" mean real and tangible personal property,
15-16 respectively:
15-17 (A) on which the taxpayer may claim depreciation
15-18 for federal income tax purposes; or
15-19 (B) to which the taxpayer holds legal title and
15-20 on which no other person may claim depreciation for federal income
15-21 tax purposes or could claim depreciation if subject to federal
15-22 income tax. Real and tangible personal property includes land,
15-23 stocks in goods, and real and tangible personal property rented to
15-24 the taxpayer. Real and tangible personal property does not include
15-25 coin, currency, or property acquired in lieu of or pursuant to a
15-26 foreclosure.
15-27 (9) "Regular place of business" means an office at
16-1 which the taxpayer carries on the taxpayer's business in a regular
16-2 and systematic manner and that is continuously maintained,
16-3 occupied, and used by employees of the taxpayer <Interest and
16-4 dividends received by a banking corporation or a savings and loan
16-5 association are gross receipts of the banking corporation or
16-6 savings and loan association from its business done in this state
16-7 if the banking corporation or savings and loan association has its
16-8 commercial domicile in this state.>
16-9 <(b) This section does not apply to any corporation other
16-10 than a banking corporation and a savings and loan association.>
16-11 <(c) To the extent that this subsection does not conflict
16-12 with Article 8, Chapter 9, The Texas Banking Code of 1943 (Article
16-13 342-908, Vernon's Texas Civil Statutes), the Banking Department of
16-14 Texas is required to revoke the chapter of any banking corporation
16-15 certified by the Comptroller as being delinquent in the payment of
16-16 its franchise tax>.
16-17 SECTION 4. Section 171.1032(a), Tax Code, is amended to read
16-18 as follows:
16-19 (a) Except as specifically provided by Section 171.1031 for
16-20 a banking corporation or a savings and loan association, in <In>
16-21 apportioning taxable earned surplus, the gross receipts of a
16-22 corporation from its business done in this state is the sum of the
16-23 corporation's receipts from:
16-24 (1) each sale of tangible personal property if the
16-25 property is delivered or shipped to a buyer in this state
16-26 regardless of the FOB point or another condition of the sale, and
16-27 each sale of tangible personal property shipped from this state to
17-1 a purchaser in another state in which the seller is not subject to
17-2 taxation;
17-3 (2) each service performed in this state;
17-4 (3) each rental of property situated in this state;
17-5 (4) each royalty for the use of a patent or copyright
17-6 in this state; and
17-7 (5) other business done in this state.
17-8 SECTION 5. Subchapter C, Chapter 171, Tax Code, is amended
17-9 by adding Section 171.1065 to read as follows:
17-10 Sec. 171.1065. APPORTIONMENT OF TAXABLE CAPITAL AND TAXABLE
17-11 EARNED SURPLUS OF BANKING CORPORATIONS AND SAVINGS AND LOAN
17-12 ASSOCIATIONS TO THIS STATE. (a) Except as provided by
17-13 Section 171.106(c), the taxable capital and taxable earned surplus
17-14 of a banking corporation or a savings and loan association is
17-15 apportioned to this state by multiplying the taxable capital and
17-16 taxable earned surplus, respectively, of the banking corporation or
17-17 savings and loan association by the apportionment percentage. The
17-18 apportionment percentage is determined by adding the following
17-19 three factors and dividing the sum by three:
17-20 (1) the gross receipts factor computed as prescribed
17-21 by Section 171.1031(b);
17-22 (2) the property factor computed as prescribed by
17-23 Sections 171.1031(c) and (d); and
17-24 (3) the payroll factor computed as prescribed by
17-25 Section 171.1031(e).
17-26 (b) If one of the factors is missing, the two remaining
17-27 factors are added and the sum is divided by two. If two of the
18-1 factors are missing, the remaining factor is the apportionment
18-2 percentage. A factor is missing if both its numerator and
18-3 denominator are zero, but it is not missing solely because its
18-4 numerator is zero.
18-5 (c) Each factor is computed on a cash or accrual basis
18-6 according to the method of accounting required or allowed to be
18-7 used by the taxpayer in determining taxable capital or earned
18-8 surplus for the period on which the tax is based.
18-9 (d) The receipts factor includes only receipts that are
18-10 included in the computation of the taxable income base for the
18-11 period on which the tax is based.
18-12 (e) The payroll factor includes only expenses that are
18-13 included in the computation of the taxable income base for the
18-14 period on which the tax is based.
18-15 (f) The property factor includes only property the income or
18-16 expenses of which are included or would have been included if not
18-17 fully depreciated or expensed, or depreciated or expensed to a
18-18 nominal amount, in the computation of the taxable income base for
18-19 the period on which the tax is based.
18-20 (g) If the apportionment percentage, computed on the basis
18-21 of all or any of the three factors of gross receipts, property, or
18-22 payroll, does not properly reflect the activity, business, or
18-23 income of the taxpayer in this state, the taxpayer may request an
18-24 adjustment or the comptroller may adjust the apportionment
18-25 percentage by:
18-26 (1) excluding one or more factors;
18-27 (2) including one or more other factors; or
19-1 (3) using any other method calculated to effect a fair
19-2 and proper apportionment to this state.
19-3 SECTION 6. This Act takes effect January 1, 1994, and
19-4 applies to a report originally due on or after that date.
19-5 SECTION 7. The importance of this legislation and the
19-6 crowded condition of the calendars in both houses create an
19-7 emergency and an imperative public necessity that the
19-8 constitutional rule requiring bills to be read on three several
19-9 days in each house be suspended, and this rule is hereby suspended.