Floor Packet Page No. 24                                                    



	

Amend CSHB 3 on page 15, between lines 6 and 7, by inserting 

the following SECTION:

	SECTION 1A.  (a)  This section takes effect only if the 

constitutional amendment proposed by the 79th Legislature, 3rd 

Called Session, 2006, requiring that any increase in the rate of the 

franchise tax be approved by two-thirds of all the members elected 

to each house of the legislature, is approved by the voters.  If 

that amendment is not approved by the voters, this section has no 

effect.

	(b)  Subchapter A, Chapter 171, Tax Code, is amended by 

adding Section 171.003 to read as follows:

	Sec. 171.003.  INCREASE IN RATE REQUIRES TWO-THIRDS VOTE.  

(a)  An increase in a rate provided by Section 171.002(a) or (b) 

takes effect only if the legislation proposing the increase is 

passed by a record vote of two-thirds of all the members elected to 

each house of the legislature on final consideration of that 

legislation in each house.

	(b)  This section does not apply to a decrease in a rate 

provided by Section 171.002(a) or (b).  If a rate is decreased, this 

section applies to any subsequent increase in that rate.

	(c)  This section does not apply to any change in the tax 

imposed by this chapter in relation to:

		(1)  the manner in which the tax is computed, including 

the determination of margin and taxable margin and any allowable 

deductions or credits;

		(2)  the manner in which the tax is administered or 

enforced; or     

		(3)  the applicability of the tax to certain entities.