By Raymond                                       H.B. No. 897

      75R2834 DAK-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the tax refund for wages paid to an employee receiving

 1-3     financial assistance.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 31.074, Human Resources Code, is amended

 1-6     to read as follows:

 1-7           Sec. 31.074.  ELIGIBILITY.  A person is eligible for the

 1-8     refund for wages paid or incurred by the person, during each

 1-9     calendar year for which the refund is claimed, only if:

1-10                 (1)  the wages paid or incurred by the person are for

1-11     services of an employee who is:

1-12                       (A)  a resident of this state;  and

1-13                       (B)  a recipient of financial assistance and

1-14     services in accordance with this chapter;

1-15                 (2)  the person satisfies the certification

1-16     requirements under Section 31.075; and

1-17                 (3)  the person provides and pays for the benefit of

1-18     the employee:

1-19                       (A)  coverage under a health benefit plan

1-20     provided by a health maintenance organization established under the

1-21     Texas Health Maintenance Organization Act (Chapter 20A, Vernon's

1-22     Texas Insurance Code) or another entity approved by the

1-23     commissioner of insurance; or

1-24                       (B)  at least 80 percent of the cost of major

 2-1     medical health insurance coverage that provides for:

 2-2                             (i) [(A)]  a maximum $300 deductible to the

 2-3     employee; and

 2-4                             (ii) [(B)]  payment by the insurance

 2-5     provider of at least 70 percent of insurance claims during the

 2-6     claim year in excess of the deductible.

 2-7           SECTION 2.  Subchapter D, Chapter 31, Human Resources Code,

 2-8     is amended by adding Section 31.077 to read as follows:

 2-9           Sec. 31.077.  MEMORANDUM OF UNDERSTANDING ON EDUCATION

2-10     CAMPAIGN FOR PRIVATE SECTOR.  (a)  The department, the comptroller,

2-11     and the Texas Workforce Commission shall adopt a joint memorandum

2-12     of understanding that:

2-13                 (1)  provides for the development of a comprehensive

2-14     education campaign to disseminate information about the tax refund

2-15     authorized under this subchapter to the private sector; and

2-16                 (2)  clearly states the role of each agency in

2-17     implementing the campaign.

2-18           (b)  Not later than the last month of each state fiscal year,

2-19     the department and the other agencies shall review and revise the

2-20     memorandum.

2-21           (c)  Each agency by rule shall adopt the memorandum of

2-22     understanding and all revisions to the memorandum.

2-23           SECTION 3.  (a)  The Texas Department of Human Services, the

2-24     comptroller, and the Texas Workforce Commission shall adopt the

2-25     memorandum of understanding required by Section 31.077, Human

2-26     Resources Code, as added by this Act, not later than November 30,

2-27     1997.

 3-1           (b)  An employee who, before the effective date of this Act,

 3-2     was not provided a qualifying benefit for the purpose of a refund

 3-3     for wages under Section 31.074, Human Resources Code, as that

 3-4     section prescribed immediately before the effective date of this

 3-5     Act, but who, on or after the effective date of this Act is

 3-6     provided a qualifying benefit under Section 31.074, Human Resources

 3-7     Code, as amended by this Act, is an employee for whom a refund of

 3-8     wages may be claimed for the purpose of Section 31.074, Human

 3-9     Resources Code, beginning with the date the employee was employed

3-10     by the person seeking the tax refund under Subchapter D, Chapter

3-11     31, Human Resources Code, if the employee becomes an employee for

3-12     whom a refund of wages may be claimed because of the change in law

3-13     made by this Act during the period beginning with the date the

3-14     employee begins work with the person seeking the tax refund under

3-15     Subchapter D, Chapter 31, Human Resources Code, and ending on the

3-16     first anniversary of that date.  This subsection does not authorize

3-17     a refund in an amount that exceeds the amount that would have been

3-18     authorized if the employee had been eligible before the effective

3-19     date of this Act.

3-20           SECTION 4.  The importance of this legislation and the

3-21     crowded condition of the calendars in both houses create an

3-22     emergency and an imperative public necessity that the

3-23     constitutional rule requiring bills to be read on three several

3-24     days in each house be suspended, and this rule is hereby suspended,

3-25     and that this Act take effect and be in force from and after its

3-26     passage, and it is so enacted.