Amend SB 861 as follows: Strike SECTIONS 7 and 15 and substitute the following: SECTION 7 Section 171.106, Tax Code, is amended to read as follows: (a) Except as provided by Subsections (c) and (d), a corporation's taxable capital is apportioned to this state to determine the amount of the tax imposed under Section 171.002(b)(1) by multiplying the corporation's taxable capital by a fraction, the numerator of which is the corporation's gross receipts from business done in this state, as determined under Section 171.103 or 171.1031, as applicable, and the denominator of which is the corporation's gross receipts from its entire business, as determined under Section 171.105. (b) Except as provided by Subsections (c) and (d), a corporation's taxable earned surplus is apportioned to this state to determine the amount of tax imposed under Section 171.002(b)(2) by multiplying the taxable earned surplus by a fraction, the numerator of which is the corporation's gross receipts from business done in this state, as determined under Section 171.1031 or 171.1032, as applicable, and the denominator of which is the corporation's gross receipts from its entire business, as determined under Section 171.1051. (c) A corporation's taxable capital or earned surplus that is derived, directly or indirectly, from the sale of management, distribution, or administration services to or on behalf of a regulated investment company, including a corporation that includes trustees or sponsors of employee benefit plans that have accounts in a regulated investment company, is apportioned to this state to determine the amount of the tax imposed under Section 171.002 by multiplying the corporation's total taxable capital or earned surplus from the sale of services to or on behalf of a regulated investment company by a fraction, the numerator of which is the average of the sum of shares owned at the beginning of the year and the sum of shares owned at the end of the year by the investment company shareholders who are commercially domiciled in this state or, if the shareholders are individuals, are residents of this state and the denominator of which is the average of the sum of shares owned at the beginning of the year and the sum of shares owned at the end of the year by all investment company shareholders. The corporation shall make a separate computation to allocate taxable capital and earned surplus. In this subsection, "regulated investment company" has the meaning assigned by Section 851 (a), Internal Revenue Code. (d) A corporation's taxable capital or taxable earned surplus that is derived, directly or indirectly, from the sale of management, administration, or investment services to an employee retirement plan is apportioned to this state to determine the amount of the tax imposed under Section 171.002 by multiplying the corporation's total taxable capital or earned surplus from the sale of services to an employee retirement plan company by a fraction, the numerator of which is the average of the sum of beneficiaries domiciled in Texas at the beginning of the year and the sum of beneficiaries domiciled in Texas at the end of the year, and the denominator of which is the average of the sum of all beneficiaries at the beginning of the year and the sum of all beneficiaries at the end of the year. The corporation shall make a separate computation to apportion taxable capital and earned surplus. In this Section, "employee retirement plan" means a plan or other arrangement that is qualified under Section 401 (a), Internal Revenue Code or satisfies the requirements of Section 403, Internal Revenue Code, or a government plan described in Section 414 (d), Internal Revenue Code. The term does not include an individual retirement account or individual retirement annuity within the meaning of Section 408, Internal Revenue Code. (e) On or before January 1, 1998, each entity registered with State Securities Board under Art. 581, V.A.T.C.S. that provides management, administration, or investment services to an employee retirement plan, must file a report with the comptroller containing such information as the comptroller deems necessary in order to determine the fiscal impact of subsection (d) of this section. The State Securities Board and Commissioner shall cooperate with the comptroller in obtaining the information. The State Securities Commissioner shall impose the penalties as are provided in V.A.T.C.S. Art. 581 against any entity that the comptroller certifies is delinquent in the filing of the report required by this section. (f) On or before September 1, 1998 the comptroller shall issue a report which evaluates the statewide fiscal impact of Section 171.106(d), Tax Code. If the comptroller determines that implementing Section 171.106(d) will not have a negative fiscal impact to this state, then Section 171.106(d) shall be effective for reports or returns originally due on or after January 1, 1999. If the comptroller determines that there will be a negative fiscal impact, then that subsection shall not be implemented. (g) If this Act and another Act of the 75th Legislature, Regular Session, 1997, make the same substantive change from the current law but differ in text, this Act prevails regardless of the relative dates of enactment. SECTION 15 (a)Except as provided by Subsections (b) and (c) of this section, this Act takes effect January 1, 1998, and applies to a report originally due on or after that date. (b) Section 171.212, Tax Code, as added by this Act, takes effect on the earliest date that it may take effect under Section 39, Article III, Texas Constitution. (c) Section 171.106(d), Tax Code, as added by this Act, takes effect for all reports originally due on or after the date the comptroller determines that the implementation of Section 171.106(d) will not have a negative fiscal impact on the state, but in no case earlier than January 1, 1999. If the comptroller determines that implementing Section 171.106(d), Tax Code will result in a negative fiscal impact, then that subsection has no effect.