By: Allen H.B. No. 1718
73R5700 DAK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to work programs for inmates and former inmates of a
1-3 county jail or state prison.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 171, Tax Code, is amended by adding
1-6 Subchapter L to read as follows:
1-7 SUBCHAPTER L. TAX CREDIT FOR WAGES PAID TO INMATES
1-8 OR FORMER INMATES
1-9 Sec. 171.651. DEFINITION. In this subchapter:
1-10 (1) "Inmate" means an inmate in a prison industries
1-11 program operated by the prison industries office of the
1-12 institutional division under Subchapter A, Chapter 497, Government
1-13 Code.
1-14 (2) "Institutional division" means the institutional
1-15 division of the Texas Department of Criminal Justice.
1-16 Sec. 171.652. CREDIT. A corporation that meets the
1-17 eligibility requirements under this subchapter is entitled to a
1-18 credit in the amount allowed by this subchapter against the tax
1-19 imposed under this chapter.
1-20 Sec. 171.653. CREDIT FOR WAGES PAID TO AN INMATE. (a) The
1-21 amount of the credit for wages paid by a corporation to an inmate
1-22 is equal to 10 percent of that portion of the wages paid that the
1-23 institutional division apportions to the state under Section
1-24 497.004(b)(3), Government Code, as reimbursement for the cost of
2-1 the inmate's confinement.
2-2 (b) A corporation is eligible for the credit under this
2-3 section only if it receives before the due date of its franchise
2-4 tax report for the privilege period for which the credit is claimed
2-5 a written certification from the institutional division stating the
2-6 amount of the wages that the corporation paid to an inmate during
2-7 the privilege period and the amount of those wages that the
2-8 institutional division apportioned to the state as reimbursement
2-9 for the cost of the inmate's confinement.
2-10 Sec. 171.654. CREDIT FOR WAGES PAID TO AN EMPLOYEE WHO WAS
2-11 AN INMATE. (a) The amount of the credit for wages paid by a
2-12 corporation to an employee who was employed by the corporation when
2-13 the employee was an inmate is equal to 10 percent of that portion
2-14 of the wages paid that, were the employee still an inmate, the
2-15 institutional division would apportion to the state under Section
2-16 497.004(b)(3), Government Code, as reimbursement for the cost of
2-17 the inmate's confinement.
2-18 (b) A corporation is eligible for the credit under this
2-19 section only if:
2-20 (1) the employee who was formerly an inmate has been
2-21 continuously employed by the corporation for at least one year
2-22 after the date that the employee was released from prison;
2-23 (2) the nature of the employment is substantially
2-24 similar to the employment the employee had with the corporation
2-25 when the employee was an inmate or the employment requires more
2-26 skills or provides greater opportunities for the employee;
2-27 (3) the corporation has provided the institutional
3-1 division a statement of the amount of wages paid the employee
3-2 during the accounting period on which the credit is computed; and
3-3 (4) the corporation receives before the due date of
3-4 its franchise tax report for the privilege period for which the
3-5 credit is claimed a written certification from the institutional
3-6 division stating the amount of the wages that, were the employee
3-7 still an inmate, the institutional division would have apportioned
3-8 to the state as reimbursement for the cost of the inmate's
3-9 confinement.
3-10 (c) A corporation may claim a credit under this section only
3-11 for wages paid an employee after the employee has been employed by
3-12 the corporation for more than one year after the date of the
3-13 employee's release from prison.
3-14 Sec. 171.655. LIMITATION. The credit claimed for each
3-15 privilege period may not exceed 50 percent of the amount of net
3-16 franchise tax due for the privilege period after any other
3-17 applicable tax credits.
3-18 Sec. 171.656. APPLICATION FOR CREDIT. (a) A corporation
3-19 must apply for a credit under this subchapter on or with the tax
3-20 report for the period for which the credit is claimed.
3-21 (b) The comptroller shall promulgate a form for the
3-22 application for the credit. A corporation must use this form in
3-23 applying for the credit.
3-24 Sec. 171.657. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
3-25 corporation may claim a credit under this subchapter for wages paid
3-26 during an accounting period only against the tax owed for the
3-27 corresponding privilege period.
4-1 SECTION 2. Subchapter A, Chapter 497, Government Code, is
4-2 amended by adding Section 497.009 to read as follows:
4-3 Sec. 497.009. CERTIFICATION FOR FRANCHISE TAX CREDIT. The
4-4 institutional division or the prison industries office on behalf of
4-5 the institutional division shall prepare and issue a certification
4-6 that a corporation requires to establish eligibility for the
4-7 franchise tax credit for wages paid to inmates or employees who
4-8 were inmates under Subchapter L, Chapter 171, Tax Code.
4-9 SECTION 3. Section 497.022, Government Code, is amended to
4-10 read as follows:
4-11 Sec. 497.022. Purpose. The purpose of this subchapter is
4-12 to:
4-13 (1) provide adequate, regular, and suitable employment
4-14 for the vocational training and rehabilitation of inmates,
4-15 consistent with proper penal purposes;
4-16 (2) use the labor of inmates for self-maintenance;
4-17 (3) reimburse the state for expenses caused by the
4-18 crimes of inmates and the cost of their confinement; <and>
4-19 (4) provide for the requisition and disbursement of
4-20 institutional division articles and products through established
4-21 state authorities to eliminate the possibility of private profits
4-22 from the distribution of those articles and products; and
4-23 (5) provide materials, products, or articles for sale
4-24 to a private person or for the use of the state or a political
4-25 subdivision of the state.
4-26 SECTION 4. Chapter 351, Local Government Code, is amended by
4-27 adding Subchapter I to read as follows:
5-1 SUBCHAPTER I. COUNTY JAIL INDUSTRIES PROGRAM
5-2 Sec. 351.201. COUNTY JAIL INDUSTRIES PROGRAM. (a) A
5-3 commissioners court may establish a county jail industries program.
5-4 (b) The purpose of a county jail industries program is to:
5-5 (1) provide adequate, regular, and suitable employment
5-6 for the vocational training of inmates;
5-7 (2) reimburse the county for expenses caused by the
5-8 crimes of inmates and the cost of their confinement; and
5-9 (3) provide for the distribution of articles and
5-10 products produced under this subchapter to offices of the county
5-11 and offices of political subdivisions located in whole or in part
5-12 in the county.
5-13 (c) A county jail industries program is under the control
5-14 and management of the sheriff.
5-15 Sec. 351.202. ADVISORY COMMITTEE. The commissioners court
5-16 shall appoint a nine-member advisory committee to assist the
5-17 sheriff in the management of the county jail industries program.
5-18 Members of the advisory committee serve at the will of the
5-19 commissioners court.
5-20 Sec. 351.203. RULES. The sheriff, with the assistance of
5-21 the advisory committee, shall adopt rules necessary for the
5-22 administration of this subchapter.
5-23 Sec. 351.204. PRIORITIES. The sheriff shall administer this
5-24 subchapter first to fulfill the needs of county offices for
5-25 articles and products produced under this subchapter and second to
5-26 fulfill the needs of offices of political subdivisions located in
5-27 whole or in part in the county for articles and products produced
6-1 under this subchapter.
6-2 Sec. 351.205. PRODUCTS; PRICES. The sheriff, with the
6-3 assistance of the advisory committee, shall determine the articles
6-4 and products to be produced under this subchapter and the sales
6-5 prices of those articles and products.
6-6 Sec. 351.206. SPECIFICATIONS. The sheriff, with the
6-7 assistance of the advisory committee, shall establish
6-8 specifications for articles and products produced under this
6-9 subchapter.
6-10 Sec. 351.207. INMATE LABOR; PAY. (a) The sheriff shall use
6-11 inmate labor in the county jail industries program.
6-12 (b) The sheriff may develop and administer, with the
6-13 assistance of the advisory committee, an incentive pay scale for
6-14 inmates confined in the county jail who participate in the county
6-15 jail industries program. The sheriff shall apportion pay earned by
6-16 an inmate under this subchapter to the following persons and
6-17 entities, in amounts determined at the discretion of the sheriff:
6-18 (1) persons to whom the inmate has been ordered by a
6-19 court to pay restitution;
6-20 (2) the inmate's family and dependents;
6-21 (3) the county, as reimbursement for the cost of the
6-22 inmate's confinement;
6-23 (4) the Compensation to Victims of Crime Fund created
6-24 by Section 14, Crime Victims Compensation Act (Article 8309-1,
6-25 Vernon's Texas Civil Statutes); and
6-26 (5) the inmate's trust fund.
6-27 Sec. 351.208. PROCEEDS. Proceeds received from the
7-1 operation of a county jail industries program shall be deposited in
7-2 the general revenue fund of the county.
7-3 SECTION 5. Article 43.09(a), Code of Criminal Procedure, is
7-4 amended to read as follows:
7-5 (a) When a defendant is convicted of a misdemeanor and his
7-6 punishment is assessed at a pecuniary fine, if he is unable to pay
7-7 the fine and costs adjudged against him, he may for such time as
7-8 will satisfy the judgment be put to work in the county jail
7-9 industries program, in the workhouse, or on the county farm, or
7-10 public improvements and maintenance projects of the county or a
7-11 political subdivision located in whole or in part in the county, as
7-12 provided in the succeeding Article; or if there be no such county
7-13 jail industries program, workhouse, farm, or improvements and
7-14 maintenance projects, he shall be imprisoned in jail for a
7-15 sufficient length of time to discharge the full amount of fine and
7-16 costs adjudged against him; rating such imprisonment at $50 for
7-17 each day and rating such labor at $50 for each day; provided,
7-18 however, that the defendant may pay the pecuniary fine assessed
7-19 against him at any time while he is serving at work in the county
7-20 jail industries program, in the workhouse, or on the county farm,
7-21 or on the public improvements and maintenance projects of the
7-22 county or a political subdivision located in whole or in part in
7-23 the county, or while he is serving his jail sentence, and in such
7-24 instances he shall be entitled to the credit he has earned under
7-25 this subsection during the time that he has served and he shall
7-26 only be required to pay his balance of the pecuniary fine assessed
7-27 against him. A defendant who performs labor under this article
8-1 during a day in which he is imprisoned is entitled to both the
8-2 credit for imprisonment and the credit for labor provided by this
8-3 article.
8-4 SECTION 6. Article 43.10(a), Code of Criminal Procedure, is
8-5 amended to read as follows:
8-6 (a) Where the punishment assessed in a conviction for
8-7 misdemeanor is confinement in jail for more than one day, or where
8-8 in such conviction the punishment is assessed only at a pecuniary
8-9 fine and the party so convicted is unable to pay the fine and costs
8-10 adjudged against him, or where the party convicted is required to
8-11 serve a period of confinement as a condition of probation, the
8-12 party convicted or required to serve the period of confinement
8-13 shall be required to work in the county jail industries program or
8-14 shall be required to do manual labor in accordance with the
8-15 provisions of this Article under the following rules and
8-16 regulations:
8-17 1. Each commissioners court may provide for the
8-18 erection of a workhouse and the establishment of a county farm in
8-19 connection therewith for the purpose of utilizing the labor of said
8-20 parties so convicted or required to serve a period of confinement;
8-21 2. Such farms and workhouses shall be under the
8-22 control and management of the sheriff, and the sheriff may adopt
8-23 such rules and regulations not inconsistent with the rules and
8-24 regulations of the <Texas> Commission on Jail Standards and with
8-25 the laws as the sheriff deems necessary;
8-26 3. Such overseers and guards may be employed by the
8-27 sheriff under the authority of the commissioners court as may be
9-1 necessary to prevent escapes and to enforce such labor, and they
9-2 shall be paid out of the county treasury such compensation as the
9-3 commissioners court may prescribe;
9-4 4. They shall be put to labor upon public works and
9-5 maintenance projects, including public works and maintenance
9-6 projects for a political subdivision located in whole or in part in
9-7 the county;
9-8 5. One who from age, disease, or other physical or
9-9 mental disability is unable to do manual labor shall not be
9-10 required to work. His inability to do manual labor may be
9-11 determined by a physician appointed for that purpose by the county
9-12 judge or the commissioners court, who shall be paid for such
9-13 service such compensation as said court may allow; and
9-14 6. For each day of manual labor, in addition to any
9-15 other credits allowed by law, a prisoner is entitled to have one
9-16 day deducted from each sentence or period of confinement he is
9-17 serving. The deduction authorized by this article, when combined
9-18 with the deduction required by Article 42.10 of this code<, Code of
9-19 Criminal Procedure,> may not exceed two-thirds (2/3) of the
9-20 sentence or period of confinement.
9-21 SECTION 7. A corporation may claim the credit under
9-22 Subchapter L, Chapter 171, Tax Code, as added by this Act, only for
9-23 any wages paid or incurred on or after the effective date of this
9-24 Act and only on a franchise tax report due under Chapter 171, Tax
9-25 Code, on or after January 1, 1994.
9-26 SECTION 8. The importance of this legislation and the
9-27 crowded condition of the calendars in both houses create an
10-1 emergency and an imperative public necessity that the
10-2 constitutional rule requiring bills to be read on three several
10-3 days in each house be suspended, and this rule is hereby suspended.