By Oliveira                                           H.B. No. 3389
         77R7291 DAK-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to franchise tax credits for telecommunications
 1-3     corporations for job creation activities and capital investments.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 171.751, Tax Code, is amended by amending
 1-6     Subdivisions (8) and (12) and adding Subdivision (13) to read as
 1-7     follows:
 1-8                 (8)  "Qualified business" means an establishment
 1-9     primarily engaged in agricultural processing, central
1-10     administrative offices, distribution, data processing,
1-11     manufacturing, research and development, telecommunications, or
1-12     warehousing.
1-13                 (12)  "Telecommunications" means an establishment
1-14     primarily engaged in activities described in categories 51321,
1-15     51322, 51331, 513321, 513322, 51333, and 51334 of the 1997 North
1-16     American Industry Classification System.
1-17                 (13)  "Warehousing" means an establishment primarily
1-18     engaged in activities described in categories 4221-4226 of the 1987
1-19     Standard Industrial Classification Manual published by the federal
1-20     Office of Management and Budget.
1-21           SECTION 2. Section 171.801(1), Tax Code, is amended to read
1-22     as follows:
1-23                 (1)  "Agricultural processing," "central administrative
1-24     offices," "county average weekly wage," "data processing,"
 2-1     "distribution," "manufacturing," "qualified business," "research
 2-2     and development," "telecommunications," and "warehousing" have the
 2-3     meanings assigned those terms by Section 171.751.
 2-4           SECTION 3. This Act takes effect January 1, 2002, and applies
 2-5     only to a report originally due on or after that date.