By Telford H.B. No. 2732 75R7573 DAK-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the apportionment of certain taxable capital and 1-3 taxable earned surplus to the state. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 171.106, Tax Code, is amended by adding 1-6 Subsection (d) to read as follows: 1-7 (d) A corporation's taxable capital or earned surplus that 1-8 is derived, directly or indirectly, from the sale of management, 1-9 administration, or investment services to an employee retirement 1-10 plan is apportioned to this state to determine the amount of the 1-11 tax imposed under Section 171.002 by multiplying the corporation's 1-12 total taxable capital or earned surplus from the sale of services 1-13 to an employee retirement plan company by a fraction, the numerator 1-14 of which is the average of the sum of beneficiaries domiciled in 1-15 Texas at the beginning of the year and the sum of beneficiaries 1-16 domiciled in Texas at the end of the year, and the denominator of 1-17 which is the average of the sum of all beneficiaries at the 1-18 beginning of the year and the sum of all beneficiaries at the end 1-19 of the year. The corporation shall make a separate computation to 1-20 allocate taxable capital and earned surplus. In this subsection, 1-21 "employee retirement plan" means a plan or other arrangement that 1-22 is qualified under Section 401(a), Internal Revenue Code of 1986, 1-23 or satisfies the requirements of Section 403, Internal Revenue Code 1-24 of 1986, or a government plan described in Section 414(d), Internal 2-1 Revenue Code of 1986. The term does not include an individual 2-2 retirement account or individual retirement annuity within the 2-3 meaning of Section 408, Internal Revenue Code. 2-4 SECTION 2. This Act takes effect January 1, 1998, and 2-5 applies to a report originally due on or after that date. 2-6 SECTION 3. The importance of this legislation and the 2-7 crowded condition of the calendars in both houses create an 2-8 emergency and an imperative public necessity that the 2-9 constitutional rule requiring bills to be read on three several 2-10 days in each house be suspended, and this rule is hereby suspended.