Amend CSHB 3928 (Senate committee printing) as follows:                      
	(1)  Strike SECTION 1 of the bill (page 1, lines 12-14).                       
	(2)  Strike SECTION 6 of the bill (page 4, lines 36-54) and 
substitute the following:
	SECTION 6.  Section 171.001, Tax Code, as effective January 
1, 2008, is amended by adding Subsection (c) to read as follows:
	(c)  The tax imposed under this section or Section 171.0011 
is not imposed on an entity if, during the period on which the 
report is based, the entity qualifies as a passive entity as defined 
by Section 171.0003.
	(3)  In SECTION 8 of the bill, strike Sections 171.002(a) and 
(b), Tax Code (page 4, line 69, through page 5, line 5), and 
substitute the following:
	(a)  Subject to Sections [Section] 171.003 and 171.1016 and 
except as provided by Subsection (b), the rate of the franchise tax 
is one percent [per year of privilege period] of taxable margin.
	(b)  Subject to Sections 171.003 and 171.1016, the [The] rate 
of the franchise tax is 0.5 percent [per year of privilege period] 
of taxable margin for those taxable entities primarily engaged in 
retail or wholesale trade.
	(4)  Insert an appropriately numbered SECTION to read as 
follows:            
	SECTION __.  Subchapter A, Chapter 171, Tax Code, is amended 
by adding Section 171.1016 to read as follows:
	Sec. 171.1016.  E-Z COMPUTATION AND RATE.  (a)  
Notwithstanding any other provision of this chapter, a taxable 
entity whose total revenue from its entire business is not more than 
$10 million may elect to pay the tax imposed under this chapter in 
the amount computed and at the rate provided by this section rather 
than in the amount computed and at the tax rate provided by Section 
171.002.
	(b)  The amount of the tax for which a taxable entity that 
elects to pay the tax as provided by this section is liable is 
computed by:
		(1)  determining the taxable entity's total revenue 
from its entire business, as determined under Section 171.1011;
		(2)  apportioning the amount computed under 
Subdivision (1) to this state, as provided by Section 171.106, to 
determine the taxable entity's apportioned total revenue; and
		(3)  multiplying the amount computed under Subdivision 
(2) by the rate of 0.575 percent.
	(c)  A taxable entity that elects to pay the tax as provided 
by this section may not take a credit, deduction, or other 
adjustment that is not specifically authorized by this section.
	(d)  Section 171.0021 applies to a taxable entity that elects 
to pay the tax as provided by this section.
	(e)  A reference in this chapter or other law to the rate of 
the franchise tax means, as appropriate, the rate under Section 
171.002 or, for a taxable entity that elects to pay the tax as 
provided by this section, the rate under this section.
	(5)  Strike SECTION 20 of the bill (page 12, lines 25-36) and 
substitute the following:
	SECTION 20.  Section 171.103, Tax Code, as effective January 
1, 2008, is amended by adding Subsections (c) and (d) to read as 
follows:
	(c)  A taxable entity that is a combined group shall include 
in a report filed under Section 171.201 or 171.202, for each member 
of the combined group that does not have nexus with this state for 
the purpose of taxation:
		(1)  the gross receipts computed under Subsection (a); 
and           
		(2)  the gross receipts computed under Subsection (a) 
that are subject to taxation in another state under a throwback law 
or regulation.
	(d)  The information required by Subsection (c) may be used 
for informational purposes only. A taxable entity with gross 
receipts from its entire business in the preceding taxable year of 
$10 million or more forfeits the right to transact business in this 
state if the taxable entity fails to report or materially 
underreports the information required by Subsection (c).
	(6)  Strike SECTION 38 of the bill (page 19, line 43, through 
page 20, line 9).
	(7)  Insert an appropriately numbered SECTION to read as 
follows:            
	SECTION __.  The taxation method provided by Section 171.002, 
Tax Code, as amended by this Act, and the taxation method provided 
by Section 171.1016, Tax Code, as added by this Act, are not 
severable, and neither provision would have been enacted without 
the other.  If the taxation method provided by Section 171.002, Tax 
Code, as amended by this Act, is held invalid, the taxation method 
provided by Section 171.1016, Tax Code, as added by this Act, is 
also invalid.
	(8)  Renumber the SECTIONS of the bill appropriately.