LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 3, 1995



 TO:     Honorable Allen Hightower, Chair       IN RE:  House Bill No. 2318
         Committee on Corrections                       By: Allen
         House of Representatives
         Austin, Texas






FROM: John Keel, Director

In response to your request for a Fiscal Note on House Bill No.
2318 (relating to work programs for certain persons committed to
the Texas Youth Commission and to tax credits and abatements for
businesses participating in the programs) this office has
determined the following:

The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.

The bill would create an Office of Industries, as well as an
advisory committee, within the Texas Youth Commission for the
purpose of providing employment and training for juveniles
committed to the commission.  The bill would create the new
Industries Fund in the state treasury for the operation of the
program.  The bill would also allow private firms contracting
with the Texas Youth Commission to enter into tax abatement
agreements with local governments and create franchise tax
credits for wages paid to committed juveniles under certain
conditions.


No significant fiscal implication to the State is anticipated.

The fiscal implication to units of local government cannot be
determined.


Source:   Comptroller of Public Accounts, Youth Commission
          LBB Staff: JK, RT, RR