By: Turner S.B. No. 1187 A BILL TO BE ENTITLED AN ACT 1-1 relating to the apportionment of taxable capital and taxable earned 1-2 surplus to the state. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter C, Chapter 171.106, Tax Code, is 1-5 amended by adding Subsection (d) to read as follows: 1-6 (d) A corporation's taxable capital or earned surplus that 1-7 is derived, directly or indirectly, from the sale of management, 1-8 administration or investment services to an employee retirement 1-9 plan is apportioned to this state to determine the amount of the 1-10 tax imposed under Section 171.002 by multiplying the corporation's 1-11 total taxable capital or earned surplus from the sale of services 1-12 to an employee retirement plan company by a fraction, the numerator 1-13 of which is the average of the sum of beneficiaries domiciled in 1-14 Texas at the beginning of the year and the sum of beneficiaries 1-15 domiciled in Texas at the end of the year, and the denominator of 1-16 which is the average of the sum of all beneficiaries at the 1-17 beginning of the year and the sum of all beneficiaries at the end 1-18 of the year. The corporation shall make a separate computation to 1-19 allocate taxable capital and earned surplus. In this subsection, 1-20 "employee retirement plan" means a plan or other arrangement that 1-21 is qualified under Section 401(a) of the Internal Revenue Code or 1-22 satisfies the requirements of Section 403 of the Internal Revenue 1-23 Code or a government plan described in Section 414(d) of the 2-1 Internal Revenue Code, but does not include an individual 2-2 retirement account or individual retirement annuity within the 2-3 meaning of Section 408 of the Internal Revenue Code. 2-4 SECTION 2. This Act takes effect September 1, 1995. 2-5 SECTION 3. The importance of this legislation and the 2-6 crowded condition of the calendars in both houses create an 2-7 emergency and an imperative public necessity that the 2-8 constitutional rule requiring bills to be read on three several 2-9 days in each house be suspended, and this rule is hereby suspended.