Adopted

AMENDMENT NO 2 PROPOSED TO

House Bill No. 1585

BY: Representatives Watson, Brown

     AMEND by deleting lines 205 through 212 in their entirety.

     AMEND FURTHER by inserting the following language at the end of line 183:  "In addition, no gain or loss shall be recognized on any exchange of property if no gain or loss is recognized with regard to such exchange under Section 1031 of the Internal Revenue Code."

     AMEND FURTHER on line 274 by striking the word "The" and inserting the language "Except as otherwise provided, the"

     AMEND FURTHER by inserting the following language at the end of line 283:  "However, no gain shall be recognized on property that is compulsorily or involuntarily converted if no gain is recognized with regard to such property under Section 1033 of the Internal Revenue Code."

     AMEND FURTHER the title to conform.