Amend Floor Amendment No. 13 to CSHB 3 by deleting Subsection 

(2), lines 6 and 7, and inserting the following language:



PART D.  TRANSITIONAL PROVISIONS FOR PARTS A, B, AND C

	SECTION 2D.01.  (a)  Subject to other provisions of this 

section, Parts A, B, and C of this article apply to reports 

originally due on or after the effective date of those parts.

	(b)  For a corporation becoming subject to the franchise tax 

under this article:

		(1)  income or losses, and related gross receipts, 

occurring before January 1, 2005 2006, may not be considered for 

purposes of the earned surplus component, or for apportionment 

purposes for the taxable capital component;

		(2)  a corporation subject to the franchise tax on 

January 1, 2006 2007, for which January 1, 2006 2007, is not the 

beginning date, shall file an annual report due May 15, 2006 2007, 

based on the period:

			(A)  beginning on the later of:                                              

				(i)  January 1, 2005 2006; or                       

				(ii)  the date the corporation was organized 

in this state or, if a foreign corporation, the date it began doing 

business in this state; and

			(B)  ending on the date the corporation's last 

accounting period ends in 2005 2006 or, if none, on December 31, 

2005 2006; and

		(3)  a corporation subject to the earned surplus 

component of the franchise tax at any time after October 31, 2005 

2006, and before January 1, 2006 2007, but not subject to the earned 

surplus component on January 1, 2006 2007, shall file a final 

report computed on net taxable earned surplus, for the privilege of 

doing business at any time after October 31, 2005 2006, and before 

January 1, 2006 2007, based on the period:

			(A)  beginning on the later of:                                              

				(i)  January 1, 2005 2006; or                       

				(ii)  the date the corporation was organized 

in this state or, if a foreign corporation, the date it began doing 

business in this state; and

			(B)  ending on the date the corporation became no 

longer subject to the earned surplus component of the tax.

	SECTION 2D.02.  Parts A, B, and C of this article take 

effect, except as provided by those parts, November 1, 2005 2006, 

and apply to reports originally due on or after that date.