By West S.B. No. 1425
76R6469 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to a tax credit for wages paid to certain employees who
1-3 are recipients of temporary assistance for needy families.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 301.102(a), Labor Code, is amended to
1-6 read as follows:
1-7 (a) The commission shall issue a tax refund voucher in the
1-8 amount allowed by Section 301.103 or 301.104 [this subchapter] and
1-9 subject to the restrictions imposed by this subchapter to a person
1-10 that meets the applicable eligibility requirements under this
1-11 subchapter.
1-12 SECTION 2. Subchapter H, Chapter 301, Labor Code, is amended
1-13 by amending Sections 301.103 and 301.104, and adding Section
1-14 301.1045 to read as follows:
1-15 Sec. 301.103. ELIGIBILITY AND AMOUNT OF REFUND IF INSURANCE
1-16 NOT PROVIDED[; LIMITATION]. (a) The amount of the refund allowed
1-17 under this section [subchapter] is equal to 10 [20] percent of the
1-18 total wages, up to a maximum of $10,000 in wages for each employee,
1-19 paid or incurred by a person for services rendered by an employee
1-20 of the person during the period beginning with the date the
1-21 employee begins work for the person and ending on the first
1-22 anniversary of that date.
1-23 (b) A person is eligible for a refund under this section for
1-24 wages paid or incurred by the person, during each calendar year for
2-1 which the refund is claimed, only if:
2-2 (1) the wages paid or incurred by the person are for
2-3 services of an employee who is:
2-4 (A) a resident of this state; and
2-5 (B) a recipient of financial assistance and
2-6 services in accordance with Chapter 31, Human Resources Code; and
2-7 (2) the person satisfies the certification
2-8 requirements under Section 301.105 [The refund claimed for a
2-9 calendar year may not exceed the amount of net tax paid by the
2-10 person to this state, after any other applicable tax credits, in
2-11 that calendar year].
2-12 Sec. 301.104. AMOUNT OF REFUND AND ELIGIBILITY IF INSURANCE
2-13 PROVIDED. (a) The amount of the refund allowed under this
2-14 section is equal to 20 percent of the total wages, up to a maximum
2-15 of $10,000 in wages for each employee, paid or incurred by a person
2-16 for services rendered by an employee of the person during the
2-17 period beginning with the date the employee begins work for the
2-18 person and ending on the first anniversary of that date.
2-19 (b) A person is eligible for a [the] refund under this
2-20 section for wages paid or incurred by the person, during each
2-21 calendar year for which the refund is claimed, only if:
2-22 (1) the wages paid or incurred by the person are for
2-23 services of an employee who is:
2-24 (A) a resident of this state; and
2-25 (B) a recipient of financial assistance and
2-26 services in accordance with Chapter 31, Human Resources Code;
2-27 (2) the person satisfies the certification
3-1 requirements under Section 301.105; and
3-2 (3) the person provides and pays for the benefit of
3-3 the employee a part of the cost of coverage under:
3-4 (A) a health plan provided by a health
3-5 maintenance organization established under the Texas Health
3-6 Maintenance Organization Act (Chapter 20A, Vernon's Texas Insurance
3-7 Code);
3-8 (B) a health benefit plan approved by the
3-9 commissioner of insurance; or
3-10 (C) a self-funded or self-insured employee
3-11 welfare benefit plan that provides health benefits and is
3-12 established in accordance with the Employee Retirement Income
3-13 Security Act of 1974 (29 U.S.C. 1001 et seq.).
3-14 Sec. 301.1045. LIMITATION. The total amount of refunds
3-15 claimed for a calendar year under this subchapter may not exceed
3-16 the amount of net tax paid by the person to this state, after any
3-17 other applicable tax credits, in that calendar year.
3-18 SECTION 3. Section 301.105, Labor Code, is amended to read
3-19 as follows:
3-20 Sec. 301.105. CERTIFICATION. A person is not eligible for a
3-21 [the] refund for wages paid or incurred by the person unless the
3-22 person has received a written certification from the commission
3-23 that the employee is a recipient of financial assistance and
3-24 services on or before the day the employee begins employment with
3-25 the person.
3-26 SECTION 4. Sections 301.106(b) and (c), Labor Code, are
3-27 amended to read as follows:
4-1 (b) The commission shall promulgate a form for the
4-2 application for a [the] tax refund voucher. A person must use this
4-3 form in applying for the refund.
4-4 (c) On issuance of a [the] tax refund voucher to the person
4-5 by the commission, the person may apply the voucher against a tax
4-6 paid by the person to this state only for the calendar year for
4-7 which the voucher is issued.
4-8 SECTION 5. Section 301.107(b), Labor Code, is amended to
4-9 read as follows:
4-10 (b) The Texas Department of Human Services shall provide to
4-11 the commission information as necessary to enable the commission
4-12 to determine whether a person is eligible for a [the] tax refund
4-13 authorized by this subchapter.
4-14 SECTION 6. The changes in law made by this Act to Subchapter
4-15 H, Chapter 301, Labor Code, take effect January 1, 2000. A person
4-16 may claim the refund under Section 301.103, Labor Code, as amended
4-17 by this Act, only for wages paid or incurred on or after the
4-18 effective date of this Act and only on a tax report due on or after
4-19 that date.
4-20 SECTION 7. The importance of this legislation and the
4-21 crowded condition of the calendars in both houses create an
4-22 emergency and an imperative public necessity that the
4-23 constitutional rule requiring bills to be read on three several
4-24 days in each house be suspended, and this rule is hereby suspended.