By Armbrister                                          S.R. No. 942

         75R17360 DAK-D                           

                                 R E S O L U T I O N

 1-1           BE IT RESOLVED by the Senate of the State of Texas, 75th

 1-2     Legislature, Regular Session, 1997, That Senate Rules 12.03 and

 1-3     12.05 be suspended in part as provided by Senate Rule 12.08 to

 1-4     enable the conference committee appointed to resolve the

 1-5     differences on Senate Bill No. 862 to consider and take action on

 1-6     the following specific matter:

 1-7           Senate Rules 12.03(4) and 12.05(5) are suspended to permit

 1-8     the committee to add an appropriately numbered SECTION to the bill

 1-9     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.