By Allen H.B. No. 2318
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to work programs for certain persons committed to the
1-3 Texas Youth Commission and to tax credits and abatements for
1-4 businesses participating in the programs.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 61, Human Resources Code, is amended by
1-7 adding Subchapter H to read as follows:
1-8 SUBCHAPTER H. INDUSTRIES PROGRAM
1-9 Sec. 61.121. PROGRAM; PURPOSES. (a) The commission may
1-10 establish and operate an industries program at any commission
1-11 facility.
1-12 (b) The purposes of the industries program are to:
1-13 (1) provide adequate employment and vocational
1-14 training for children; and
1-15 (2) develop and expand public and private commission
1-16 industries.
1-17 (c) The commission shall:
1-18 (1) use children as workers in the industries program
1-19 to the greatest extent feasible; and
1-20 (2) expand the industries program by pursuing
1-21 arrangements with business to use children as workers.
1-22 Sec. 61.122. ADVISORY COMMITTEE. (a) A commission
1-23 industries advisory committee is created consisting of nine members
1-24 appointed by the commission. An effort shall be made to include
2-1 representatives of industries appropriate for hiring young
2-2 offenders.
2-3 (b) Members serve staggered three-year terms, with the terms
2-4 of three members expiring February 1 of each odd-numbered year.
2-5 Sec. 61.123. PAY AND DISTRIBUTION OF PAY. (a) The
2-6 commission may develop and administer an incentive pay scale for
2-7 children who participate in the industries program.
2-8 (b) The commission shall apportion wages earned by a child
2-9 working under the industries program in amounts determined at the
2-10 discretion of the commission to:
2-11 (1) a person to whom the child has been ordered by a
2-12 court to pay restitution;
2-13 (2) the general revenue fund of the state, as
2-14 reimbursement for the cost of the child's confinement provided that
2-15 the industries program in which the child is participating is
2-16 Private Sector/Prison Industries certified by the Bureau of Justice
2-17 Assistance under 18 U.S.C. Section 1761;
2-18 (3) the compensation to victims of crime fund and the
2-19 compensation to victims of crime auxiliary fund created by Article
2-20 56.54, Code of Criminal Procedure; and
2-21 (4) a trust fund for the child.
2-22 Sec. 61.124. INDUSTRIES FUND. (a) A Texas Youth Commission
2-23 industries program fund is created in the state treasury.
2-24 (b) Proceeds from the operation of Private Sector/Prison
2-25 Industries certified industries programs shall be deposited in the
2-26 fund.
2-27 (c) Money from the fund may only be appropriated for use by
3-1 the commission for the administration of this subchapter.
3-2 (d) Sections 403.094 and 403.095, Government Code, do not
3-3 apply to the fund.
3-4 Sec. 61.125. CONTRACTS. The commission may contract with a
3-5 private person to conduct an industries program on or off premises
3-6 operated by the commission.
3-7 Sec. 61.126. GRANTS. (a) The commission may accept a grant
3-8 for the vocational rehabilitation of children.
3-9 (b) The commission shall maintain a record of the receipt
3-10 and disbursement of a grant.
3-11 Sec. 61.127. LEASE OF LAND. (a) The commission may lease
3-12 land owned by the commission to a private business to expand and
3-13 develop the industries program.
3-14 (b) The term of the lease may not exceed 50 years.
3-15 (c) The business must lease the land at fair market value.
3-16 (d) The business may construct a new facility on the land or
3-17 convert an existing facility.
3-18 Sec. 61.128. CERTIFICATION FOR FRANCHISE CREDIT. The
3-19 commission shall prepare and issue a certification that a
3-20 corporation requires to establish eligibility for the franchise tax
3-21 credit for wages paid as provided by Subchapter M, Chapter 171, Tax
3-22 Code.
3-23 Sec. 61.129. OPTIONAL AD VALOREM TAX ABATEMENT. (a) A
3-24 business contracting with the commission may enter into an ad
3-25 valorem tax abatement agreement under Subchapters B and C, Chapter
3-26 312, Tax Code, with the governing body of the municipality and
3-27 county in which the business is located.
4-1 (b) If an area in which businesses contracting with the
4-2 commission under this subchapter is designated as a reinvestment
4-3 zone under Chapter 312, Tax Code, the area satisfies Section
4-4 312.202(a)(6), Tax Code, in that the area would be reasonably
4-5 likely as a result of the designation to contribute to the
4-6 retention or expansion of primary employment or to attract major
4-7 investment in the zone that would be a benefit to the property and
4-8 that would contribute to the economic development of the entity
4-9 designating the area as a reinvestment zone.
4-10 SECTION 2. Chapter 171, Tax Code, is amended by adding
4-11 Subchapter M to read as follows:
4-12 SUBCHAPTER M. TAX CREDIT FOR WAGES PAID TO CERTAIN
4-13 CHILDREN COMMITTED TO TEXAS YOUTH COMMISSION
4-14 Sec. 171.681. DEFINITIONS. In this subchapter:
4-15 (1) "Commission" means Texas Youth Commission.
4-16 (2) "Eligible child" means a person in the industries
4-17 program of the Texas Youth Commission operated under Subchapter H,
4-18 Chapter 61, Human Resources Code.
4-19 Sec. 171.682. CREDIT. A corporation that meets the
4-20 eligibility requirements under this subchapter is entitled to a
4-21 credit in the amount allowed by this subchapter against the tax
4-22 imposed under this chapter.
4-23 Sec. 171.683. CREDIT FOR WAGES PAID TO ELIGIBLE CHILD. (a)
4-24 The amount of the credit for wages paid by a corporation to an
4-25 eligible child is equal to 10 percent of that portion of the wages
4-26 paid that the commission apportioned under Section 61.123(b), Human
4-27 Resources Code.
5-1 (b) A corporation is eligible for the credit under this
5-2 section only if it receives before the due date of its franchise
5-3 tax report for the privilege period for which the credit is claimed
5-4 a written certification from the commission stating the amount of
5-5 the wages that the corporation paid to an eligible child or to the
5-6 commission and the amount of those wages apportioned under Section
5-7 61.123(b), Human Resources Code, during:
5-8 (1) the privilege period; and
5-9 (2) not more than six months of the preceding
5-10 privilege period for wages for which a credit has not previously
5-11 been claimed.
5-12 (c) A corporation is eligible for the credit under this
5-13 section only if the eligible child to whom or for whose benefit it
5-14 pays wages has been continuously employed by the corporation for
5-15 not less than six months.
5-16 Sec. 171.684. CREDIT FOR WAGES PAID TO EMPLOYEE WHO WAS AN
5-17 ELIGIBLE CHILD. (a) The amount of the credit for wages paid by a
5-18 corporation to an employee who was first employed by the
5-19 corporation when the employee was an eligible child is equal to 10
5-20 percent of that portion of the wages paid that, were the employee
5-21 still an eligible child, the commission would apportion under
5-22 Section 61.123(b), Human Resources Code.
5-23 (b) A corporation is eligible for the credit under this
5-24 section only if:
5-25 (1) the employee who was formerly an eligible child
5-26 was continuously employed for not less than six months while an
5-27 eligible child and has been continuously employed by the
6-1 corporation for at least one year after the date that the employee
6-2 was released from commitment to the commission or released under
6-3 supervision by the commission;
6-4 (2) the nature of the employment is substantially
6-5 similar to the employment the employee had with the corporation
6-6 when the employee was an eligible child or the employment requires
6-7 more skills or provides greater opportunities for the employee;
6-8 (3) the corporation has provided the commission a
6-9 statement of the amount of wages paid the eligible child during the
6-10 accounting period on which the credit is computed; and
6-11 (4) the corporation receives before the due date of
6-12 its franchise tax report for the tax privilege period for which the
6-13 credit is claimed a written certification from the commission
6-14 stating the amount of the wages that, were the employee still an
6-15 eligible child, the commission would apportion under Section
6-16 61.123(b), Human Resources Code.
6-17 (c) A corporation may claim a credit under this section only
6-18 for:
6-19 (1) wages paid an employee after the employee has been
6-20 employed by the corporation for more than one year after the
6-21 earlier of the date of the employee's release from commitment to
6-22 the commission or release under supervision by the commission; and
6-23 (2) wages paid the employee for not longer than one
6-24 year.
6-25 Sec. 171.685. LIMITATION. The total credits claimed under
6-26 this subchapter for a privilege period may not exceed 50 percent of
6-27 the amount of net franchise tax due for the privilege period after
7-1 any other applicable tax credits.
7-2 Sec. 171.686. APPLICATION FOR CREDIT. (a) A corporation
7-3 must apply for a credit under this subchapter on or with the tax
7-4 report for the period for which the credit is claimed.
7-5 (b) The comptroller shall promulgate a form for the
7-6 application for the credit. A corporation must use this form in
7-7 applying for the credit.
7-8 Sec. 171.687. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
7-9 corporation may claim a credit under this subchapter for wages paid
7-10 during an accounting period only against the tax owed for the
7-11 corresponding privilege period.
7-12 SECTION 3. A corporation may claim the credit under
7-13 Subchapter M, Chapter 171, Tax Code, as added by this Act, only for
7-14 any wages paid or incurred on or after the effective date of this
7-15 Act and only a franchise tax report due under Chapter 171, Tax
7-16 Code, on or after January 1, 1996.
7-17 SECTION 4. The importance of this legislation and the
7-18 crowded condition of the calendars in both houses create an
7-19 emergency and an imperative public necessity that the
7-20 constitutional rule requiring bills to be read on three several
7-21 days in each house be suspended, and this rule is hereby suspended.