By Pitts                                              H.B. No. 1335
       74R4842 CBH-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the eligibility for a franchise tax exemption of a
    1-3  credit union that accepts a member who is not included in the
    1-4  credit union's definable community of interest.
    1-5        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-6        SECTION 1.  Section 171.077, Tax Code, is amended to read as
    1-7  follows:
    1-8        Sec. 171.077.  EXEMPTION--CREDIT UNION.  (a)  Except as
    1-9  provided by Subsection (b), a <A> credit union incorporated under
   1-10  the Texas Credit Union Act (Article 2461-1.01 et seq., Vernon's
   1-11  Texas Civil Statutes) is exempted from the franchise tax.
   1-12        (b)  A credit union is eligible for the exemption provided by
   1-13  Subsection (a) only if:
   1-14              (1)  the credit union's definable community of
   1-15  interest, as prescribed by the credit union's articles of
   1-16  incorporation or bylaws, is occupational and limited to a single
   1-17  employer; and
   1-18              (2)  the credit union does not accept a member who does
   1-19  not share that definable community of interest.
   1-20        SECTION 2.  This Act takes effect September 1, 1995, and
   1-21  applies to credit union membership that begins on or after that
   1-22  date.  A credit union membership that begins before the effective
   1-23  date of this Act is governed by the law in effect when that
   1-24  membership began, and that law is continued in effect for that
    2-1  purpose.
    2-2        SECTION 3.  The importance of this legislation and the
    2-3  crowded condition of the calendars in both houses create an
    2-4  emergency and an imperative public necessity that the
    2-5  constitutional rule requiring bills to be read on three several
    2-6  days in each house be suspended, and this rule is hereby suspended.