By Davis of Harris                                    H.B. No. 1603
         77R6017 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to renaming the franchise tax the corporate income tax.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter A, Chapter 171, Tax Code, is amended
 1-5     by adding Section 171.0001 to read as follows:
 1-6           Sec. 171.0001.  CORPORATE INCOME TAX.  (a)  The tax imposed
 1-7     by this chapter is a corporate income tax.
 1-8           (b)  Every reference in this chapter and other law to
 1-9     "franchise tax" means "corporate income tax."
1-10           SECTION 2.  This Act takes effect immediately if it receives
1-11     a vote of two-thirds of all the members elected to each house, as
1-12     provided by Section 39, Article III, Texas Constitution.  If this
1-13     Act does not receive the vote necessary for immediate effect, this
1-14     Act takes effect September 1, 2001.