By: Shapiro S.B. No. 852
A BILL TO BE ENTITLED
AN ACT
1-1 relating to work programs and training for children committed to
1-2 the Texas Youth Commission, franchise tax credits for participating
1-3 industries, and optional ad valorem tax abatement from cities and
1-4 counties for businesses providing training and employment for such
1-5 children.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Chapter 61, Human Resources Code, is amended by
1-8 the addition of Subchapter H to read as follows:
1-9 Sec. 61.101. PURPOSE; IMPLEMENTATION. (a) The purposes of
1-10 the commission industries program are to provide adequate
1-11 employment and vocational training and to develop and expand public
1-12 and private commission industries.
1-13 (b) To implement the purposes of the program, the executive
1-14 director of the commission may establish and operate a commission
1-15 industries program at each commission facility that the executive
1-16 director considers suitable for such a program.
1-17 Sec. 61.102. ADVISORY COMMITTEE. The commission industries
1-18 advisory committee is composed of nine members appointed by the
1-19 commission. Members of the advisory committee serve staggered
1-20 three-year terms with the terms of three members expiring February
1-21 1 of each odd-numbered year. An effort shall be made to include
1-22 representatives of industries appropriate for hiring young
1-23 offenders.
2-1 Sec. 61.103. ADMINISTRATION OF COMMISSION INDUSTRIES
2-2 PROGRAM. (a) The program may be financed through contributions
2-3 donated for this purpose by private businesses contracting with the
2-4 commission.
2-5 (b) The commission shall apportion wages earned by a child
2-6 working under this subchapter to the following persons and
2-7 entities, in amounts determined at the discretion of the
2-8 commission, in the following priority:
2-9 (1) persons to whom the child has been ordered by a
2-10 court or to whom the child has agreed to pay restitution;
2-11 (2) persons to whom the child has been ordered by a
2-12 court to pay child support; and
2-13 (3) the child's student account.
2-14 Sec. 61.104. PROCEEDS FROM COMMISSION INDUSTRIES. Proceeds
2-15 received from the operation of a commission industries program
2-16 shall be deposited in the commission industries revolving fund.
2-17 The proceeds may be used by the commission for the administration
2-18 of this subchapter.
2-19 Sec. 61.105. CONTRACTS. To encourage the development and
2-20 expansion of the commission industries program, the commission may
2-21 enter into necessary contracts related to the commission industries
2-22 program. The commission may enter into a contract with a private
2-23 business to conduct a program on or off property operated by the
2-24 commission.
2-25 Sec. 61.106. GRANTS. The commission may accept any grant
3-1 designated for vocational rehabilitation of youth. The commission
3-2 shall maintain records relating to the receipt and disbursement of
3-3 grant funds, and shall prepare an annual report to the presiding
3-4 officers of each house of the legislature on the administration of
3-5 grant funds.
3-6 Sec. 61.107. LEASE OF LAND. To further the expansion and
3-7 development of the commission industries program, the commission
3-8 may lease commission land to a private business. A lease under
3-9 this section may not exceed a term of 20 years. The business must
3-10 lease the land at fair market value and may construct or convert
3-11 plant facilities on the land.
3-12 Sec. 61.108. OPTIONAL AD VALOREM TAX ABATEMENT. (a) The
3-13 legislature finds that businesses entering into contracts with the
3-14 commission are reasonably likely to contribute to the retention or
3-15 expansion of primary employment or to attract major investment in
3-16 the area, which would be a benefit to the property in the area and
3-17 would contribute to the economic development of the area, as
3-18 required by Section 312.202(a)(6), Tax Code.
3-19 (b) Businesses entering into contracts with the commission
3-20 may enter into ad valorem tax abatement agreements pursuant to
3-21 Subchapters B and C, Chapter 312, Tax Code, if the governing bodies
3-22 of the municipalities and counties in which such businesses are
3-23 located agree to do so.
3-24 SECTION 2. Chapter 171, Tax Code, is amended by adding
3-25 Subchapter M to read as follows:
4-1 SUBCHAPTER M. TAX CREDIT FOR WAGES PAID TO CERTAIN
4-2 CHILDREN COMMITTED TO THE TEXAS YOUTH COMMISSION.
4-3 Sec. 171.681. DEFINITIONS. In this subchapter:
4-4 (1) "Commission" means the Texas Youth Commission.
4-5 (2) "Eligible child" means a person who:
4-6 (A) is committed to the commission under Title
4-7 3, Family Code, other than a commitment under Section 54.04(d)(3),
4-8 Family Code; and
4-9 (B) resides at a facility of the commission.
4-10 Sec. 171.682. CREDIT. A corporation that meets the
4-11 eligibility requirements under this subchapter is entitled to a
4-12 credit in the amount allowed by this subchapter against the tax
4-13 imposed under this chapter.
4-14 Sec. 171.683. CREDIT FOR WAGES PAID TO ELIGIBLE CHILD.
4-15 (a) The amount of the credit for wages paid by a corporation to an
4-16 eligible child is equal to 10 percent of the wages paid to the
4-17 child or to the commission for the benefit of the child.
4-18 (b) A corporation is eligible for the credit under this
4-19 section only if the corporation files, on or before the due date of
4-20 its franchise tax report for the privilege period for which the
4-21 credit is claimed, a written certification issued by the commission
4-22 stating the amount of the wages that the corporation paid to an
4-23 eligible child or to the commission for the benefit of the child
4-24 during:
4-25 (1) the privilege period; and
5-1 (2) not more than six months of the preceding
5-2 privilege period for wages for which a credit has not previously
5-3 been claimed.
5-4 (c) A corporation is eligible for the credit under this
5-5 section only if the eligible child to whom or for whose benefit it
5-6 pays wages has been continuously employed by the corporation for
5-7 not less than six months.
5-8 Sec. 171.684. CREDIT FOR WAGES PAID TO EMPLOYEE WHO WAS AN
5-9 ELIGIBLE CHILD. (a) The amount of the credit for wages paid by a
5-10 corporation to an employee who was first employed by the
5-11 corporation when the employee was an eligible child is equal to 10
5-12 percent of the wages paid the employee.
5-13 (b) A corporation is eligible for the credit under this
5-14 section only if:
5-15 (1) the employee who was formerly an eligible child
5-16 was continuously employed for not less than six months while an
5-17 eligible child and has been continuously employed by the
5-18 corporation for at least one year after the date that the employee
5-19 was released from commitment to the commission or released under
5-20 supervision by the commission; and
5-21 (2) the nature of the employment is substantially
5-22 similar to the employment the employee had with the corporation
5-23 when the employee was an eligible child or the employment requires
5-24 more skills or provides greater opportunities for the employee.
5-25 (c) A corporation may claim a credit under this section only
6-1 for:
6-2 (1) wages paid an employee after the employee has been
6-3 employed by the corporation for more than one year after the
6-4 earlier of the date of the employee's release from commitment to
6-5 the commission or release under supervision by the commission; and
6-6 (2) wages paid the employee for not longer than one
6-7 year.
6-8 Sec. 171.685. LIMITATION. The total credits claimed under
6-9 this subchapter for a privilege period may not exceed 50 percent of
6-10 the amount of net franchise tax due for the privilege period after
6-11 any other applicable tax credits.
6-12 Sec. 171.686. APPLICATION FOR CREDIT. (a) A corporation
6-13 must apply for a credit under this subchapter on or with the tax
6-14 report for the period for which the credit is claimed.
6-15 (b) The comptroller shall promulgate a form for the
6-16 application for the credit. A corporation must use this form in
6-17 applying for the credit.
6-18 Sec. 171.687. PERIOD FOR WHICH CREDIT MAY BE CLAIMED. A
6-19 corporation may claim a credit under this subchapter for wages paid
6-20 during an accounting period only against the tax owed for the
6-21 corresponding privilege period.
6-22 SECTION 3. SEVERABILITY. If any section, sentence, clause,
6-23 or part of this Act shall, for any reason, be held invalid, such
6-24 invalidity shall not affect the remaining portions of the Act, and
6-25 it is hereby declared to be the intention of this legislature to
7-1 have passed each section, sentence, clause, or part irrespective of
7-2 the fact that any other section, sentence, clause, or part may be
7-3 declared invalid.
7-4 SECTION 4. EFFECTIVE DATE. This Act takes effect on
7-5 September 1, 1995.
7-6 SECTION 5. EMERGENCY. The importance of this legislation
7-7 and the crowded condition of the calendars in both houses create an
7-8 emergency and an imperative public necessity that the
7-9 constitutional rule requiring bills to be read on three several
7-10 days in each house be suspended, and this rule is hereby suspended.