Mr. Speaker:

    The Business and Labor Committee recommends H.B. 162, AMENDMENTS RELATED TO FINANCIAL INSTITUTIONS, by Representative J. Alexander, be replaced and reports a favorable recommendation on 4th Sub. H.B. 162, AMENDMENTS RELATED TO FINANCIAL INSTITUTIONS with the following amendments:

1.    Page 30, Lines 906-911:    Delete lines 906-911 and insert:

        "(1) For purposes of this section, "competitive equity assessment" means an amount calculated for each fiscal year by subtracting the amount of federal income taxes paid by the credit union in that taxable year from the lesser of:
        (a) the amount calculated to be equal to what the credit union's federal income tax liability would be if the credit union were subject to federal income tax in the same manner as a state-chartered bank; or
        (b) the amount calculated by multiplying by 30% the amount equal to the federal taxable income the credit union would have if the credit union were subject to a federal income tax in the same manner as a state-chartered bank:
        (i) as determined on a separate return basis before intercompany eliminations as determined by the Internal Revenue Code; and
        (ii) after:
        (A) the net operating loss deduction; and
        (B) special deductions for dividends received."

2.    Page 43, Line 1313:    After "income tax" insert "in the same manner as a state-chartered bank"

    Respectfully,

    Katherine M. Bryson
    Committee Chair

Voting: 9-4-0
7 HB0162.HC1.wpd 2/5/03 10:09 am mcperry/MCP PO/RCN