By Allen H.B. No. 2318
74R7698 DAK-D
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 OFFICE
1-9 Sec. 61.121. INDUSTRIES OFFICE; PURPOSE. (a) The
1-10 industries office is established in the commission.
1-11 (b) The purpose of the industries office is to establish an
1-12 industries program:
1-13 (1) to provide adequate employment and vocational
1-14 training for children; and
1-15 (2) to develop and expand public and private
1-16 commission industries.
1-17 Sec. 61.122. POWERS AND DUTIES OF EXECUTIVE DIRECTOR. (a)
1-18 The industries office is under the direction of the executive
1-19 director.
1-20 (b) The executive director may establish and operate a
1-21 commission industries program at any commission facility.
1-22 (c) The executive director shall:
1-23 (1) use children as workers in the industries program
1-24 to the greatest extent feasible; and
2-1 (2) expand the industries program by pursuing
2-2 arrangements with business to use children as workers.
2-3 Sec. 61.123. ADVISORY COMMITTEE. (a) A commission
2-4 industries advisory committee is created consisting of nine members
2-5 appointed by the commission.
2-6 (b) Members serve staggered three-year terms, with the terms
2-7 of three members expiring February 1 of each odd-numbered year.
2-8 Sec. 61.124. PAY AND DISTRIBUTION OF PAY. (a) The
2-9 commission may develop and administer an incentive pay scale for
2-10 children who participate in the industries program.
2-11 (b) The commission shall apportion wages earned by a child
2-12 working under the industries program in amounts determined at the
2-13 discretion of the commission to:
2-14 (1) a person to whom the child has been ordered by a
2-15 court to pay restitution;
2-16 (2) the compensation to victims of crime fund and the
2-17 compensation to victims of crime auxiliary fund created by Article
2-18 56.54, Code of Criminal Procedure; and
2-19 (3) a trust fund for the child.
2-20 Sec. 61.125. INDUSTRIES FUND. (a) A Texas Youth Commission
2-21 industries program fund is created in the state treasury.
2-22 (b) Proceeds from the operation of the industries program
2-23 shall be deposited in the fund.
2-24 (c) Money from the fund may only be appropriated for use by
2-25 the commission for the administration of this subchapter.
2-26 (d) Sections 403.094 and 403.095, Government Code, do not
2-27 apply to the fund.
3-1 Sec. 61.126. CONTRACTS. The industries office, with the
3-2 approval of the commission, may contract with a private person to
3-3 conduct an industries program on or off premises operated by the
3-4 commission.
3-5 Sec. 61.127. GRANTS. (a) The industries office may accept
3-6 a grant for the vocational rehabilitation of children.
3-7 (b) The office shall maintain a record of the receipt and
3-8 disbursement of a grant and shall annually report to the
3-9 commission on the administration of grant funds.
3-10 Sec. 61.128. LEASE OF LAND. (a) The commission may lease
3-11 land owned by the commission to a private business to expand and
3-12 develop the industries program.
3-13 (b) The term of the lease may not exceed 50 years.
3-14 (c) The business must lease the land at fair market value.
3-15 (d) The business may construct a new facility on the land or
3-16 convert an existing facility.
3-17 Sec. 61.129. CERTIFICATION FOR FRANCHISE CREDIT. The
3-18 industries office shall prepare and issue a certification that a
3-19 corporation requires to establish eligibility for the franchise tax
3-20 credit for wages paid as provided by Subchapter M, Chapter 171, Tax
3-21 Code.
3-22 Sec. 61.130. OPTIONAL AD VALOREM TAX ABATEMENT. (a) A
3-23 business contracting with the industries office may enter into an
3-24 ad valorem tax abatement agreement under Subchapters B and C,
3-25 Chapter 312, Tax Code, with the governing body of the municipality
3-26 and county in which the business is located.
3-27 (b) If an area in which businesses contracting with the
4-1 industries office under this subchapter is designated as a
4-2 reinvestment zone under Chapter 312, Tax Code, the area satisfies
4-3 Section 312.202(a)(6), Tax Code, in that the area would be
4-4 reasonably likely as a result of the designation to contribute to
4-5 the retention or expansion of primary employment or to attract
4-6 major investment in the zone that would be a benefit to the
4-7 property and that would contribute to the economic development of
4-8 the entity designating the area as a reinvestment zone.
4-9 Sec. 61.131. COMPLIANCE. The industries office may enter
4-10 into a contract with a private business under this subchapter only
4-11 if the contract specifies that the industries office and the
4-12 business will comply with the Private Sector/Prison Industry
4-13 Certification Program operated by the Bureau of Justice Assistance
4-14 and authorized by 42 U.S.C. Section 3701 et seq.
4-15 SECTION 2. Chapter 171, Tax Code, is amended by adding
4-16 Subchapter M to read as follows:
4-17 SUBCHAPTER M. TAX CREDIT FOR WAGES PAID TO CERTAIN
4-18 CHILDREN COMMITTED TO TEXAS YOUTH COMMISSION
4-19 Sec. 171.681. DEFINITIONS. In this subchapter:
4-20 (1) "Commission" means the Texas Youth Commission.
4-21 (2) "Eligible child" means a person in the industries
4-22 office program of the Texas Youth Commission operated under
4-23 Subchapter H, Chapter 61, Human Resources Code.
4-24 (3) "Industries office" means the commission
4-25 industries office created under Subchapter H, Chapter 61, Human
4-26 Resources Code.
4-27 Sec. 171.682. CREDIT. A corporation that meets the
5-1 eligibility requirements under this subchapter is entitled to a
5-2 credit in the amount allowed by this subchapter against the tax
5-3 imposed under this chapter.
5-4 Sec. 171.683. CREDIT FOR WAGES PAID TO ELIGIBLE CHILD. (a)
5-5 The amount of the credit for wages paid by a corporation to an
5-6 eligible child is equal to 10 percent of that portion of the wages
5-7 paid that the industries office apportioned under Section
5-8 61.124(b), Human Resources Code.
5-9 (b) A corporation is eligible for the credit under this
5-10 section only if it receives before the due date of its franchise
5-11 tax report for the privilege period for which the credit is claimed
5-12 a written certification from the industries office stating the
5-13 amount of the wages that the corporation paid to an eligible child
5-14 or to the commission and the amount of those wages apportioned
5-15 under Section 61.124(b), Human Resources Code, during:
5-16 (1) the privilege period; and
5-17 (2) not more than six months of the preceding
5-18 privilege period for wages for which a credit has not previously
5-19 been claimed.
5-20 (c) A corporation is eligible for the credit under this
5-21 section only if the eligible child to whom or for whose benefit it
5-22 pays wages has been continuously employed by the corporation for
5-23 not less than six months.
5-24 Sec. 171.684. CREDIT FOR WAGES PAID TO EMPLOYEE WHO WAS AN
5-25 ELIGIBLE CHILD. (a) The amount of the credit for wages paid by a
5-26 corporation to an employee who was first employed by the
5-27 corporation when the employee was an eligible child is equal to 10
6-1 percent of that portion of the wages paid that, were the employee
6-2 still an eligible child, the industries office would apportion
6-3 under Section 61.124(b), Human Resources Code.
6-4 (b) A corporation is eligible for the credit under this
6-5 section only if:
6-6 (1) the employee who was formerly an eligible child
6-7 was continuously employed for not less than six months while an
6-8 eligible child and has been continuously employed by the
6-9 corporation for at least one year after the date that the employee
6-10 was released from commitment to the commission or released under
6-11 supervision by the commission;
6-12 (2) the nature of the employment is substantially
6-13 similar to the employment the employee had with the corporation
6-14 when the employee was an eligible child or the employment requires
6-15 more skills or provides greater opportunities for the employee;
6-16 (3) the corporation has provided the industries office
6-17 a statement of the amount of wages paid the eligible child during
6-18 the accounting period on which the credit is computed; and
6-19 (4) the corporation receives before the due date of
6-20 its franchise tax report for the privilege period for which the
6-21 credit is claimed a written certification from the industries
6-22 office stating the amount of the wages that, were the employee
6-23 still an eligible child, the industries office would apportion
6-24 under Section 61.124(b), Human Resources Code.
6-25 (c) A corporation may claim a credit under this section only
6-26 for:
6-27 (1) wages paid an employee after the employee has been
7-1 employed by the corporation for more than one year after the
7-2 earlier of the date of the employee's release from commitment to
7-3 the commission or release under supervision by the commission; and
7-4 (2) wages paid the employee for not longer than one
7-5 year.
7-6 Sec. 171.685. LIMITATION. The total credits claimed under
7-7 this subchapter for a privilege period may not exceed 50 percent of
7-8 the amount of net franchise tax due for the privilege period after
7-9 any other applicable tax credits.
7-10 Sec. 171.686. APPLICATION FOR CREDIT. (a) A corporation
7-11 must apply for a credit under this subchapter on or with the tax
7-12 report for the period for which the credit is claimed.
7-13 (b) The comptroller shall promulgate a form for the
7-14 application for the credit. A corporation must use this form in
7-15 applying for the credit.
7-16 Sec. 171.687. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
7-17 corporation may claim a credit under this subchapter for wages paid
7-18 during an accounting period only against the tax owed for the
7-19 corresponding privilege period.
7-20 SECTION 3. A corporation may claim the credit under
7-21 Subchapter M, Chapter 171, Tax Code, as added by this Act, only for
7-22 any wages paid or incurred on or after the effective date of this
7-23 Act and only a franchise tax report due under Chapter 171, Tax
7-24 Code, on or after January 1, 1996.
7-25 SECTION 4. The importance of this legislation and the
7-26 crowded condition of the calendars in both houses create an
7-27 emergency and an imperative public necessity that the
8-1 constitutional rule requiring bills to be read on three several
8-2 days in each house be suspended, and this rule is hereby suspended.