Amend SB 441, on third reading, by inserting the following
appropriately numbered SECTION to read as follows and renumbering
subsequent SECTIONS accordingly:
      SECTION     . Subchapter H, Chapter 151, Tax Code, is amended
by adding Section 151.3185 to read as follows:
      Sec. 151.3185. TAXABLE ITEMS SOLD OR USED BY CERTAIN
AGRICULTURAL PROCESSORS. (a) In this section:
            (1)  "Agricultural processing" means an establishment
primarily engaged in activities described in categories 2011-2099,
2221, 2231, or 3111-3199 of the 1987 Standard Industrial
Classification Manual published by the federal Office of Management
and Budget.
            (2)  "Agricultural product" means an agricultural,
horticultural, viticultural, or vegetable product, bees, honey,
fish or other seafood, livestock, and poultry.
            (3)  "Economically distressed county" means a county
with above state average unemployment and below state average per
capita income.
            (4)  "Qualified agricultural processor" means an
agricultural processor who engages in the activity of agricultural
processing and meets the qualifications prescribed by Subsection
(c).
            (5)  "Rural county" means a county with a population of
less than 50,000.
      (b)  A taxable item purchased, leased, rented, stored, or
used by the agricultural processing business of a qualified
agricultural processor is exempted from the taxes imposed by this
chapter.
      (c)  An agricultural processor qualifies for the exemption
provided by this section only if the processor:
            (1)  establishes a new agricultural processing business
in a rural county or economically distressed county or expands an
existing agricultural processing business located in a rural county
or economically distressed county; and
            (2)  makes a capital investment of not less than:
                  (A)  $750,000 in establishing the business in the
location described by Subdivision (1); or
                  (B)  $100,000 in expanding the business in the
location described by Subdivision (1).
      (d)  A qualified agricultural processor may claim the
exemption provided by this section only until the second
anniversary of the date on which the processor begins constructing
or expanding a facility that is necessary or essential to the
agricultural processing business described by Subsection (c) or
enters into a lease for such a facility.
      (e)  A corporation must apply to the comptroller for the
exemption provided by this section. The burden of establishing
entitlement to the exemption is on the agricultural processor.