By Holzheauser                                        H.R. No. 1274

         75R17361 DAK-D                           

                                 R E S O L U T I O N

 1-1           BE IT RESOLVED by the House of Representatives of the State

 1-2     of Texas, 75th Legislature, Regular Session, 1997, That House Rule

 1-3     13, Sections 9(a) and 9(c), be suspended in part as provided by

 1-4     House Rule 13, Section 9(f), to enable the conference committee

 1-5     appointed to resolve the differences on Senate Bill No. 862 to

 1-6     consider and take action on the following specific matter:

 1-7           House Rule 13, Sections 9(a)(4) and 9(c)(5), are suspended to

 1-8     permit the committee to add an appropritely numbered SECTION to the

 1-9     bill to read as follows:

1-10           SECTION __.  Section 151.317(c)(2), Tax Code, is amended to

1-11     read as follows:

1-12                 (2)  "Commercial use" means use by a person engaged in

1-13     selling, warehousing, or distributing a commodity or a professional

1-14     or personal service, but does not include:

1-15                       (A)  use by a person engaged in:

1-16                             (i)  processing tangible personal property

1-17     for sale as tangible personal property, other than preparation or

1-18     storage of food for immediate consumption;

1-19                             (ii)  exploring for, producing, or

1-20     transporting, a material extracted from the earth;

1-21                             (iii)  agriculture, including dairy or

1-22     poultry operations and pumping for farm or ranch irrigation;

1-23                             (iv)  electrical processes such as

1-24     electroplating, electrolysis, and cathodic protection; [or]

 2-1                             (v)  the off-wing processing, overhaul, or

 2-2     repair of a jet turbine engine or its parts for a certificated or

 2-3     licensed carrier of persons or property; or

 2-4                             (vi)  providing, under contracts with or on

 2-5     behalf of the United States government or foreign governments,

 2-6     defense or national security-related electronics, classified

 2-7     intelligence data processing and handling systems, or

 2-8     defense-related platform modifications or upgrades; or

 2-9                       (B)  a direct or indirect use, consumption, or

2-10     loss of electricity by an electric utility engaged in the purchase

2-11     of electricity for resale.

2-12           Explanation:  The conference committee requests this

2-13     suspension of limitations because of the need to assure that the

2-14     use of gas and electricity in contracted activities relating to

2-15     defense or national security-related electronics, classified

2-16     intelligence data processing and handling systems, or

2-17     defense-related platform modifications or upgrades is not subject

2-18     to unfair taxation.