Amend Amendment No. 2 by striking the language after "ARTICLE 
1.  LEGISLATIVE FINDINGS" and inserting the following:
	SECTION 1.01.  FINDINGS.  The Legislature finds that:                          
	(1)  during the 79th Legislature, 3rd Called Session, 2006, 
the Legislature passed HB 3 to restructure the state's franchise tax 
to expand the tax to include newly taxed entities and change how the 
tax is calculated;
	(2)  the intent of this Act is to make corrections to HB 3 of 
the 3rd Called Special Session of the 79th Legislature;
	(3)  HB 3 was part of a package of legislation, along with HB 
1, HB 2, HB 4, and HB 5 of the 3rd Called Special Session of the 79th 
Legislature, known as the "tax reform plan;"
	(4)  HB 3, HB 4, and HB 5 created a new business tax, 
increased the used motor vehicle sales tax, and raised the tax on 
cigarettes, respectively;
	(5)  the new tax dollars generated by HB 3, HB 4, and HB 5 were 
directly dedicated, in accordance with HB 2, to a "Property Tax 
Relief Fund" to pay for reductions in property taxes required by the 
passage of HB 1;
	(6)  not a single dollar appropriated to the "Property Tax 
Relief Fund" was dedicated to provide a long term school finance 
solution, which means that not a single dollar raised by the tax 
bills will be used for the more than 4.3 million Texas students who 
attend classes in 1,037 independent school districts across the 
state of Texas;
	(7)  arguments were raised during the 3rd Called Special 
Session that the aforementioned legislation was inadequate to 
replace school property tax revenue and was not an even 
dollar-for-dollar tax swap, therefore requiring future 
Legislatures to spend from the state's general revenue fund in 
order to pay for the property tax cuts;
	(8)  the latest estimates by the Texas Comptroller of Public 
Accounts show that the state's new business tax could generate 
between $500 million and $900 million per fiscal year less than what 
was projected during the 3rd Called Special Session of the 79th 
Legislature;
	(9)  the property tax cuts appropriated by HB 1 in the 3rd 
Called Special Session created a $14.2 billion deficit in the 
Foundation School Fund, of which, according to the aforementioned 
estimates by the Comptroller, approximately $7.5 billion will be 
replaced by taxes collected in the "Property Tax Relief Fund," 
thereby requiring the future appropriation of general revenue 
dollars to cover the remaining $6.7 billion deficit that exists in 
the Foundation School Fund;
	(10)  appropriating $6.7 billion in general revenue to pay 
for the promised property tax cuts further depletes existing areas 
of state government that have been forced to endure drastic budget 
cuts since 2003;
	(11)  the general revenue dollars would be better spent to 
increase the state's investments in providing affordable health 
care to all Texans, improving our public schools, lowering college 
tuition and electricity rates for Texas families, and many of the 
other important priorities of Texas citizens.
	SECTION 1.02.  PURPOSE.  As a result of the findings made by 
the Legislature as stated in Section 1.01 of this article, the 
purposes of this Act are to:
	(1)  make changes to the revised franchise tax that improve 
the legislation passed during the 3rd Called Special Session of the 
79th Legislature; and
	(2)  ensure the tax dollars of Texas citizens are spent on 
all of Texans' priorities, and not just property tax cuts.