Amend HB 1855 as follows:
      1.  On page 1, line 32, strike "and".
      2.  On page 1, line 35 and 36, strike "and computerized
control units" and substitute ", computerized control units,
compressors, and hydraulic units,".
      3.  On page 1, line 39, after "sale" and before the period,
insert the following:
      ;and
            (5)  machinery, equipment, and replacement parts or
accessories used or consumed in the actual manufacturing,
processing, or fabrication of tangible personal property for
ultimate sale if their use or consumption is necessary and
essential to a pollution control process".
      4.  Strike page 1, line 40, through page 1, line 59, and
substitute the following:
      (c)  The exemption does not include:
            (1)  <machinery, equipment, or replacement parts or
their accessories having a useful life when new in excess of six
months;
            (2)>  intraplant transportation equipment, including
intraplant transportation equipment used to move a product or raw
material in connection with the manufacturing process and
specifically including all piping and conveyor systems, provided
that piping that is a component part of a single item of
manufacturing equipment or pollution control equipment eligible for
the exemption under subsection (a)(2), (a)(4) or (a)(5) remains
eligible for the exemption;
            (2)  maintenance or janitorial supplies or equipment<,>
or other machinery, equipment, materials, or supplies that are used
incidentally in a manufacturing, processing, or fabrication
operation;
            (3)  hand tools; <or>
            (4)  office equipment or supplies, equipment or
supplies used in sales or distribution activities, research or
development of new products, or transportation activities, or other
tangible personal property not used in an actual manufacturing,
processing, or fabrication operation; or
            (5)  machinery and equipment or supplies used to
maintain or store tangible personal property.
      5.  On page 2, line 5, strike "(c)(2)" and substitute
"(c)(1)".
      6.  On page 2, line 6, strike "(c)(6)" and substitute
"(c)(5)".
      7.  On page 2, line 7, insert the following as new SECTIONS 2
and 3, and renumber the remaining SECTIONS accordingly:
      SECTION 2.  Section 151.318(n) and (q), Tax Code, are amended
to read as follows:
      (n)  A person engaged in overhauling, retrofitting, or
repairing jet turbine aircraft engines and their component parts is
entitled to an exemption from the  <a refund or a reduction in the
amount of> tax imposed by this chapter for the purchase of
machinery, equipment, or replacement parts or accessories with a
useful life in excess of six months, or supplies, including
aluminum oxide, nitric acid, and sodium cyanide, used in
electrochemical plating or a similar process that are used or
consumed in the overhauling, retrofitting, or repairing.  <The
amount of the refund or reduced amount of tax due is the same as
provided by Subsection (h) for property covered by Subsection (g).>
      (q)  For purposes of Subsection (b), "semiconductor
fabrication cleanrooms and equipment" means all tangible personal
property, without regard to whether the property is affixed to or
incorporated into realty, used in connection with the
manufacturing, processing, or fabrication in a cleanroom
environment of a semiconductor product, without regard to whether
the property is actually contained in the cleanroom environment.
The term includes integrated systems, fixtures, and piping, all
property necessary or adapted to reduce contamination or to control
airflow, temperature, humidity, chemical purity, or other
environmental conditions or manufacturing tolerances, and
production equipment and machinery,  The term does not include the
building or a permanent, nonremovable component of the building,
that houses the cleanroom environment.  The term includes moveable
cleanroom partitions and cleanroom lighting.  "Semiconductor
fabrication cleanrooms and equipment" are not "interplant
transportation equipment" or "used incidentally in a manufacturing,
processing, or fabrication operation" as those terms are used in
Subsection (c)(1) <(c)(2)>.
      SECTION 3.  Subsections (f)-(m) of Section 151.318, Tax Code,
are repealed.