Amend SB 1689 as follows:
      1.  On page 1, line 34, between "surplus." and "A business"
insert the following:
"Except as otherwise provided in subsection (k),"
      2.  On page 1, line 39, insert the following new subsection
to Section 171.110, Tax Code:
      "(k)  For reports originally due on or after January 1, 2004,
a surviving corporation of a merger may claim the business loss of
the non-surviving corporation.  Such business losses may be carried
forward not more than five years following the merger or until the
losses are exhausted."
      3.  On page 1, line 42 between "2001" and "." insert the
following:
", except for subsection (k) as added by this act should take
effect for reports originally due on or after January 1, 2004"