1-1                                   AN ACT
 1-2     relating to tax incentives for certain businesses located in
 1-3     enterprise zones, defense readjustment zones, or strategic
 1-4     investment areas.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6                                  ARTICLE 1
 1-7           SECTION 1.01. Section 2303.407, Government Code, is amended
 1-8     to read as follows:
 1-9           Sec. 2303.407.  ALLOCATION OF JOBS ELIGIBLE FOR TAX REFUND.
1-10     When the department designates a business as an enterprise project,
1-11     the department shall allocate to the project the maximum number of
1-12     new permanent jobs or retained jobs eligible to be included in a
1-13     computation of a tax refund for the project.  The number may not
1-14     exceed 250 [625] or a number equal to 110 percent of the number of
1-15     anticipated new permanent jobs or retained jobs specified in the
1-16     application for designation of the business as an enterprise
1-17     project under Section 2303.405, whichever is less.
1-18           SECTION 1.02. Section 2303.504, Government Code, is amended
1-19     to read as follows:
1-20           Sec. 2303.504.  STATE TAX REFUNDS AND CREDITS [DEDUCTION];
1-21     REPORT. (a)  Subject to Section 2303.516, an [An] enterprise
1-22     project is entitled to:
1-23                 (1)  a refund of state taxes under Section 151.429, Tax
1-24     Code; and
 2-1                 (2)  a franchise tax credit under Subchapter P or Q,
 2-2     Chapter 171 [deduction from taxable capital under Section
 2-3     171.1015], Tax Code.
 2-4           (b)  Subject to Section 2303.516, a [A] qualified business is
 2-5     entitled to a refund of state taxes under Sections 151.431 and
 2-6     171.501, Tax Code.
 2-7           (c)  Not later than the 60th day after the last day of each
 2-8     fiscal year, the comptroller shall report to the department the
 2-9     statewide total of the tax refunds and credits made under this
2-10     section during that fiscal year.
2-11           SECTION 1.03. Subchapter G, Chapter 2303, Government Code, is
2-12     amended by adding Section 2303.516 to read as follows:
2-13           Sec. 2303.516. (a)  The department may monitor a qualified
2-14     business or enterprise project to determine whether and to what
2-15     extent the business or project has followed through on any
2-16     commitments made by it or on its behalf  under this chapter.
2-17           (b)  The department may determine that the business or
2-18     project is not entitled to a refund or credit of state taxes under
2-19     Section 2303.504 if the department finds that:
2-20                 (1)  the business or project is not willing to
2-21     cooperate with the department in providing the department with the
2-22     information the department needs to make the determination under
2-23     Subsection (a); or
2-24                 (2)  the business or project has substantially failed
2-25     to follow through on any commitments made by it or on its behalf
2-26     under this chapter.
2-27           SECTION 1.04. Section 2310.404, Government Code, is amended
 3-1     to read as follows:
 3-2           Sec. 2310.404.  STATE TAX REFUNDS AND CREDITS [DEDUCTION];
 3-3     REPORT. (a)  Subject to Section 2310.413, a [A] defense
 3-4     readjustment project is eligible for:
 3-5                 (1)  a refund of state taxes under Section 151.4291,
 3-6     Tax Code;
 3-7                 (2)  a franchise tax credit under Subchapter P or Q,
 3-8     Chapter 171 [deduction from taxable capital under Section
 3-9     171.1016], Tax Code; and
3-10                 (3)  the exclusion of receipts from service performed
3-11     in a readjustment zone in the determination of gross receipts from
3-12     business done in this state under Sections 171.103 and 171.1032,
3-13     Tax Code.
3-14           (b)  Not later than the 60th day after the last day of each
3-15     fiscal year, the comptroller shall report to the department the
3-16     statewide total of the tax refunds or credits made under this
3-17     section during that fiscal year.
3-18           SECTION 1.05. Subchapter F, Chapter 2310, Government Code, is
3-19     amended by adding Section 2310.413 to read as follows:
3-20           Sec. 2310.413. (a)  The department may monitor a defense
3-21     readjustment project to determine whether and to what extent the
3-22     project has followed through on any commitments made by it or on
3-23     its behalf  under this chapter.
3-24           (b)  The department may determine that the defense
3-25     readjustment project is not eligible for state tax refunds and
3-26     credits under Section 2310.404 if the department finds that:
3-27                 (1)  the project is not willing to cooperate with the
 4-1     department in providing the department with the information the
 4-2     department needs to make the determination under Subsection (a); or
 4-3                 (2)  the project has substantially failed to follow
 4-4     through on its commitments made by it or on its behalf under this
 4-5     chapter.
 4-6           SECTION 1.06. Sections 151.429(a) and (b), Tax Code, are
 4-7     amended to read as follows:
 4-8           (a)  An enterprise project is eligible for a refund in the
 4-9     amount provided by this section of the taxes imposed by this
4-10     chapter on purchases of:
4-11                 (1)  equipment or machinery sold to an enterprise
4-12     project for use in an enterprise zone;
4-13                 (2)  building materials sold to an enterprise project
4-14     for use in remodeling, rehabilitating, or constructing a structure
4-15     in an enterprise zone;
4-16                 (3)  labor for remodeling, rehabilitating, or
4-17     constructing a structure by an enterprise project in an enterprise
4-18     zone; [and]
4-19                 (4)  electricity and natural gas purchased and consumed
4-20     in the normal course of business in the enterprise zone;
4-21                 (5)  tangible personal property purchased and consumed
4-22     in the normal course of business in the enterprise zone; and
4-23                 (6)  taxable services.
4-24           (b)  Subject to the limitations provided by Subsection (c) of
4-25     this section, an enterprise project qualifies for a refund of taxes
4-26     under this section of $5,000 [$2,000] for each new permanent job or
4-27     job that has been retained by the enterprise project for a
 5-1     qualified employee.
 5-2           SECTION 1.07.  Section 151.4291(a), Tax Code, is amended to
 5-3     read as follows:
 5-4           (a)  A defense readjustment project is eligible for a refund
 5-5     in the amount provided by this section of the taxes imposed by this
 5-6     chapter on purchases of:
 5-7                 (1)  equipment or machinery sold to a defense
 5-8     readjustment project for use in a readjustment zone;
 5-9                 (2)  building materials sold to a defense readjustment
5-10     project for use in remodeling, rehabilitating, or constructing a
5-11     structure in a readjustment zone;
5-12                 (3)  labor for remodeling, rehabilitating, or
5-13     constructing a structure by a defense readjustment project in a
5-14     readjustment zone; [and]
5-15                 (4)  electricity and natural gas purchased and consumed
5-16     in the normal course of business in the readjustment zone;
5-17                 (5)  tangible personal property purchased and consumed
5-18     in the normal course of business in the readjustment zone; and
5-19                 (6)  taxable services.
5-20           SECTION 1.08. Section 171.751, Tax Code, is amended by
5-21     amending Subdivision (9) and adding Subdivisions (13)-(16) to read
5-22     as follows:
5-23                 (9)  "Qualifying job" means a new permanent full-time
5-24     job that:
5-25                       (A)  is located in:
5-26                             (i)  a strategic investment area; [or]
5-27                             (ii)  a county within this state with a
 6-1     population of less than 50,000, if the job is created by a business
 6-2     primarily engaged in agricultural processing; or
 6-3                             (iii)  an enterprise zone or a readjustment
 6-4     zone, regardless of whether the job meets the qualifications
 6-5     prescribed by Paragraphs (B)-(F), if the job is created by a
 6-6     qualified business that has been designated as an enterprise
 6-7     project or defense readjustment project, respectively;
 6-8                       (B)  requires at least 1,600 hours of work a
 6-9     year;
6-10                       (C)  pays at least 110 percent of the county
6-11     average weekly wage for the county where the job is located;
6-12                       (D)  is covered by a group health benefit plan
6-13     for which the business pays at least 80 percent of the premiums or
6-14     other charges assessed under the plan for the employee;
6-15                       (E)  is not transferred from one area in this
6-16     state to another area in this state; and
6-17                       (F)  is not created to replace a previous
6-18     employee.
6-19                 (13)  "Defense readjustment project" means a person
6-20     designated by the Texas Department of Economic Development as a
6-21     defense readjustment project under Chapter 2310, Government Code,
6-22     on or after September 1, 2001.
6-23                 (14)  "Enterprise project" means a person designated by
6-24     the Texas Department of Economic Development as an enterprise
6-25     project under Chapter 2303, Government Code, on or after September
6-26     1, 2001.
6-27                 (15)  "Enterprise zone" has the meaning assigned that
 7-1     term by Section 2303.003, Government Code.
 7-2                 (16)  "Readjustment zone" has the meaning assigned that
 7-3     term by Section 2310.001, Government Code.
 7-4           SECTION 1.09. Section 171.752(b), Tax Code, is amended to
 7-5     read as follows:
 7-6           (b)  A corporation may claim a credit or take a carryforward
 7-7     credit without regard to whether the strategic investment area,
 7-8     enterprise zone, or readjustment zone in which it created the
 7-9     qualifying jobs subsequently loses its designation as a strategic
7-10     investment area, enterprise zone, or readjustment zone, if
7-11     applicable.
7-12           SECTION 1.10. Section 171.754, Tax Code, is amended to read
7-13     as follows:
7-14           Sec. 171.754.  LENGTH OF CREDIT. (a)  Except as provided by
7-15     Subsection (b), the [The] credit established shall be claimed in
7-16     five equal installments of one-fifth the credit amount over the
7-17     five consecutive reports beginning with the report based upon the
7-18     period during which the qualifying jobs were created.
7-19           (b)  Subject to Section 171.755, a corporation that has been
7-20     designated as an enterprise project or as a defense readjustment
7-21     project may claim the entire credit earned during an accounting
7-22     period against the taxes imposed for the corresponding reporting
7-23     period.
7-24           SECTION 1.11. Section 171.801, Tax Code, is amended by
7-25     amending Subdivision (2) and adding Subdivision (4) to read as
7-26     follows:
7-27                 (2)  "Qualified capital investment" means tangible
 8-1     personal property first placed in service in a strategic investment
 8-2     area, [or] first placed in service in a county with a population of
 8-3     less than 50,000 by a corporation primarily engaged in agricultural
 8-4     processing, or first placed in service in an enterprise zone or
 8-5     defense readjustment zone by a qualified business that has been
 8-6     designated as an enterprise project or readjustment project,
 8-7     respectively, and that is described in Section 1245(a), Internal
 8-8     Revenue Code, such as engines, machinery, tools, and implements
 8-9     used in a trade or business or held for investment and subject to
8-10     an allowance for depreciation, cost recovery under the accelerated
8-11     cost recovery system, or amortization.  The term does not include
8-12     real property or buildings and their structural components.
8-13     Property that is leased under a capitalized lease is considered a
8-14     "qualified capital investment," but property that is leased under
8-15     an operating lease is not considered a "qualified capital
8-16     investment."  Property expensed under Section 179, Internal Revenue
8-17     Code, is not considered a "qualified capital investment."
8-18                 (4)  "Defense readjustment project," "enterprise
8-19     project," "enterprise zone," and "readjustment zone" have the
8-20     meanings assigned by Section 171.751.
8-21           SECTION 1.12. Section 171.802(c), Tax Code, is amended to
8-22     read as follows:
8-23           (c)  A corporation may claim a credit or take a carryforward
8-24     credit without regard to whether the strategic investment area,
8-25     enterprise zone, or readjustment zone in which it made the
8-26     qualified capital investment subsequently loses its designation as
8-27     a strategic investment area, enterprise zone, or readjustment zone,
 9-1     if applicable.
 9-2           SECTION 1.13. Section 171.804, Tax Code, is amended to read
 9-3     as follows:
 9-4           Sec. 171.804.  LENGTH OF CREDIT. (a)  Except as provided by
 9-5     Subsection (b), the [The] credit established shall be claimed in
 9-6     five equal installments of one-fifth the credit amount over the
 9-7     five consecutive reports beginning with the report based upon the
 9-8     period during which the qualified capital investment was made.
 9-9           (b)  Subject to Section 171.805, a corporation that has been
9-10     designated as an enterprise project or as a defense readjustment
9-11     project may claim the entire credit earned during an accounting
9-12     period against the taxes imposed for the corresponding reporting
9-13     period.
9-14           SECTION 1.14. Section 171.721, Tax Code, is amended to read
9-15     as follows:
9-16           Sec. 171.721.  DEFINITIONS. In this subchapter:
9-17                 (1)  "Base amount," "basic research payment," and
9-18     "qualified research expense" have the meanings assigned those terms
9-19     by Section 41, Internal Revenue Code, except that all such payments
9-20     and expenses must be for research conducted within this state.
9-21                 (2)  "Strategic investment area" means an area that is
9-22     determined by the comptroller under Section 171.726 that is:
9-23                       (A)  a county within this state with above state
9-24     average unemployment and below state average per capita income;
9-25     [or]
9-26                       (B)  an area within this state that is a
9-27     federally designated urban enterprise community or an urban
 10-1    enhanced enterprise community; or
 10-2                      (C)  a county within this state that has a
 10-3    spaceport, as defined by Section 4D, Development Corporation Act of
 10-4    1979 (Article 5190.6, Vernon's Texas Civil Statutes), as added by
 10-5    Chapter 1537, Acts of the 76th Legislature, Regular Session, 1999,
 10-6    within its boundaries.
 10-7          SECTION 1.15.  Sections 171.1015, 171.1016, and 171.805(c),
 10-8    Tax Code, are repealed.
 10-9          SECTION 1.16. (a)  Except as provided by Subsection (b) of
10-10    this section, this article takes effect September 1, 2001.  The
10-11    changes in law made by this article apply only to an enterprise
10-12    project or defense readjustment project designated by the Texas
10-13    Department of Economic Development as such a project on or after
10-14    September 1, 2001.  An enterprise project or defense readjustment
10-15    project designated before that date is governed by the law in
10-16    effect on the date it was designated, and that law is continued in
10-17    effect for that purpose.
10-18          (b)  Sections 1.08-1.14 of this article take effect September
10-19    1, 2003, and apply to a report originally due on or after that
10-20    date. Notwithstanding any other law, an enterprise project or
10-21    defense readjustment project designated on or after September 1,
10-22    2001, may, beginning on the date the project is designated,
10-23    establish credits as provided by the changes in law made by
10-24    Sections 1.08-1.13 of this article but may only claim the credits
10-25    on reports originally due on or after September 1, 2003.
10-26          (c)  Subject to Section 151.429(f), Tax Code, an enterprise
10-27    project or defense readjustment project designated on or after
 11-1    September 1, 2001, may apply for a refund for which the project is
 11-2    entitled under Sections 151.429(a)(1)-(4), Tax Code, as provided by
 11-3    Section 151.429, Tax Code.  The comptroller may pay the refund as
 11-4    provided by Section 151.429, Tax Code, and other law.
 11-5          (d)  Subject to Section 151.429(f), Tax Code, an enterprise
 11-6    project or defense readjustment project designated on or after
 11-7    September 1, 2001, may accrue the right to a refund for which the
 11-8    project is entitled under Sections 151.429(a)(5) and (6), Tax Code,
 11-9    as added by this article, and may apply for that refund as provided
11-10    by Section 151.429, Tax Code.  However, the comptroller may not pay
11-11    a refund described by this subsection before September 1, 2003.
11-12    Notwithstanding any other law, for purposes of determining whether
11-13    interest accrues on a refund application submitted before September
11-14    1, 2003, the comptroller is considered to have made a final
11-15    decision on the application for the refund on September 1, 2003.
11-16          (e)  The change in law made by this article does not affect
11-17    taxes imposed before the effective date of this article, and the
11-18    former law is continued in effect for purposes of the liability for
11-19    and collection of those taxes.
11-20                                 ARTICLE 2
11-21          SECTION 2.01. Section 2303.407, Government Code, is amended
11-22    to read as follows:
11-23          Sec. 2303.407.  ALLOCATION OF JOBS ELIGIBLE FOR TAX REFUND.
11-24    When the department designates a business as an enterprise project,
11-25    the department shall allocate to the project the maximum number of
11-26    new permanent jobs or retained jobs eligible to be included in a
11-27    computation of a tax refund for the project.  The number may not
 12-1    exceed 625 or a number equal to 110 percent of the number of
 12-2    anticipated new permanent jobs or retained jobs specified in the
 12-3    application for designation of the business as an enterprise
 12-4    project under Section 2303.405, whichever is less.
 12-5          SECTION 2.02. Section 2303.504, Government Code, is amended
 12-6    to read as follows:
 12-7          Sec. 2303.504.  STATE TAX REFUNDS [AND DEDUCTION]; REPORT.
 12-8    (a)  Subject to Section 2303.516, an [An] enterprise project is
 12-9    entitled to[:]
12-10                [(1)]  a refund of state taxes under Section 151.429,
12-11    Tax Code[; and]
12-12                [(2)  a deduction from taxable capital under Section
12-13    171.1015, Tax Code].
12-14          (b)  Subject to Section 2303.516, a [A] qualified business is
12-15    entitled to a refund of state taxes under Sections 151.431 and
12-16    171.501, Tax Code.
12-17          (c)  Not later than the 60th day after the last day of each
12-18    fiscal year, the comptroller shall report to the department the
12-19    statewide total of the tax refunds made under this section during
12-20    that fiscal year.
12-21          SECTION 2.03. Section 2310.404, Government Code, is amended
12-22    to read as follows:
12-23          Sec. 2310.404.  STATE TAX REFUNDS [AND DEDUCTION]; REPORT.
12-24    (a)  Subject to Section 2310.413, a [A] defense readjustment
12-25    project is eligible for:
12-26                (1)  a refund of state taxes under Section 151.4291,
12-27    Tax Code; and
 13-1                (2)  [a deduction from taxable capital under Section
 13-2    171.1016, Tax Code; and]
 13-3                [(3)]  the exclusion of receipts from service performed
 13-4    in a readjustment zone in the determination of gross receipts from
 13-5    business done in this state under Sections 171.103 and 171.1032,
 13-6    Tax Code.
 13-7          (b)  Not later than the 60th day after the last day of each
 13-8    fiscal year, the comptroller shall report to the department the
 13-9    statewide total of the tax refunds made under this section during
13-10    that fiscal year.
13-11          SECTION 2.04. Sections 151.429(a) and (b), Tax Code, are
13-12    amended to read as follows:
13-13          (a)  An enterprise project is eligible for a refund in the
13-14    amount provided by this section of the taxes imposed by this
13-15    chapter on purchases of:
13-16                (1)  equipment or machinery sold to an enterprise
13-17    project for use in an enterprise zone;
13-18                (2)  building materials sold to an enterprise project
13-19    for use in remodeling, rehabilitating, or constructing a structure
13-20    in an enterprise zone;
13-21                (3)  labor for remodeling, rehabilitating, or
13-22    constructing a structure by an enterprise project in an enterprise
13-23    zone; and
13-24                (4)  electricity and natural gas purchased and consumed
13-25    in the normal course of business in the enterprise zone.
13-26          (b)  Subject to the limitations provided by Subsection (c) of
13-27    this section, an enterprise project qualifies for a refund of taxes
 14-1    under this section of $2,000 for each new permanent job or job that
 14-2    has been retained by the enterprise project for a qualified
 14-3    employee.
 14-4          SECTION 2.05. Section 151.4291(a), Tax Code, is amended to
 14-5    read as follows:
 14-6          (a)  A defense readjustment project is eligible for a refund
 14-7    in the amount provided by this section of the taxes imposed by this
 14-8    chapter on purchases of:
 14-9                (1)  equipment or machinery sold to a defense
14-10    readjustment project for use in a readjustment zone;
14-11                (2)  building materials sold to a defense readjustment
14-12    project for use in remodeling, rehabilitating, or constructing a
14-13    structure in a readjustment zone;
14-14                (3)  labor for remodeling, rehabilitating, or
14-15    constructing a structure by a defense readjustment project in a
14-16    readjustment zone; and
14-17                (4)  electricity and natural gas purchased and consumed
14-18    in the normal course of business in the readjustment zone.
14-19          SECTION 2.06. Section 171.751(9), Tax Code, is amended to
14-20    read as follows:
14-21                (9)  "Qualifying job" means a new permanent full-time
14-22    job that:
14-23                      (A)  is located in:
14-24                            (i)  a strategic investment area; or
14-25                            (ii)  a county within this state with a
14-26    population of less than 50,000, if the job is created by a business
14-27    primarily engaged in agricultural processing;
 15-1                      (B)  requires at least 1,600 hours of work a
 15-2    year;
 15-3                      (C)  pays at least 110 percent of the county
 15-4    average weekly wage for the county where the job is located;
 15-5                      (D)  is covered by a group health benefit plan
 15-6    for which the business pays at least 80 percent of the premiums or
 15-7    other charges assessed under the plan for the employee;
 15-8                      (E)  is not transferred from one area in this
 15-9    state to another area in this state; and
15-10                      (F)  is not created to replace a previous
15-11    employee.
15-12          SECTION 2.07. Section 171.752(b), Tax Code, is amended to
15-13    read as follows:
15-14          (b)  A corporation may claim a credit or take a carryforward
15-15    credit without regard to whether the strategic investment area in
15-16    which it created the qualifying jobs subsequently loses its
15-17    designation as a strategic investment area, if applicable.
15-18          SECTION 2.08. Section 171.754, Tax Code, is amended to read
15-19    as follows:
15-20          Sec. 171.754.  LENGTH OF CREDIT. The credit established shall
15-21    be claimed in five equal installments of one-fifth the credit
15-22    amount over the five consecutive reports beginning with the report
15-23    based upon the period during which the qualifying jobs were
15-24    created.
15-25          SECTION 2.09. Section 171.801(2), Tax Code, is amended to
15-26    read as follows:
15-27                (2)  "Qualified capital investment" means tangible
 16-1    personal property first placed in service in a strategic investment
 16-2    area, or first placed in service in a county with a population of
 16-3    less than 50,000 by a corporation primarily engaged in agricultural
 16-4    processing, and that is described in Section 1245(a), Internal
 16-5    Revenue Code, such as engines, machinery, tools, and implements
 16-6    used in a trade or business or held for investment and subject to
 16-7    an allowance for depreciation, cost recovery under the accelerated
 16-8    cost recovery system, or amortization.  The term does not include
 16-9    real property or buildings and their structural components.
16-10    Property that is leased under a capitalized lease is considered a
16-11    "qualified capital investment," but property that is leased under
16-12    an operating lease is not considered a "qualified capital
16-13    investment."  Property expensed under Section 179, Internal Revenue
16-14    Code, is not considered a "qualified capital investment."
16-15          SECTION 2.10. Section 171.802(c), Tax Code, is amended to
16-16    read as follows:
16-17          (c)  A corporation may claim a credit or take a carryforward
16-18    credit without regard to whether the strategic investment area in
16-19    which it made the qualified capital investment subsequently loses
16-20    its designation as a strategic investment area, if applicable.
16-21          SECTION 2.11. Section 171.804, Tax Code, is amended to read
16-22    as follows:
16-23          Sec. 171.804.  LENGTH OF CREDIT. The credit established shall
16-24    be claimed in five equal installments of one-fifth the credit
16-25    amount over the five consecutive reports beginning with the report
16-26    based upon the period during which the qualified capital investment
16-27    was made.
 17-1          SECTION 2.12. Section 171.721, Tax Code, is amended to read
 17-2    as follows:
 17-3          Sec. 171.721.  DEFINITIONS. In this subchapter:
 17-4                (1)  "Base amount," "basic research payment," and
 17-5    "qualified research expense" have the meanings assigned those terms
 17-6    by Section 41, Internal Revenue Code, except that all such payments
 17-7    and expenses must be for research conducted within this state.
 17-8                (2)  "Strategic investment area" means an area that is
 17-9    determined by the comptroller under Section 171.726 that is:
17-10                      (A)  a county within this state with above state
17-11    average unemployment and below state average per capita income; or
17-12                      (B)  an area within this state that is a
17-13    federally designated urban enterprise community or an urban
17-14    enhanced enterprise community.
17-15          SECTION 2.13. Sections 171.751(13)-(16), and Section
17-16    171.801(4), Tax Code, are repealed.
17-17          SECTION 2.14. (a)  Except as provided by Subsection (b) of
17-18    this section, this article takes effect September 1, 2005.
17-19          (b)  Sections 2.06-2.13 of this article take effect January
17-20    1, 2005, and apply to a report originally due on or after that
17-21    date.
17-22          (c)  The change in law made by this article does not affect
17-23    taxes imposed before the effective date of this article, and the
17-24    former law is continued in effect for purposes of the liability for
17-25    and collection of those taxes.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2686 was passed by the House on May
         4, 2001, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 2686 on May 25, 2001, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2686 was passed by the Senate, with
         amendments, on May 22, 2001, by a viva-voce vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor