By West                                               S.B. No. 1453
         76R6696 CBH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to a franchise tax credit that allows a parent to
 1-3     volunteer at a child's school without loss of compensation.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 171, Tax Code, is amended by adding
 1-6     Subchapter N to read as follows:
 1-7          SUBCHAPTER N.  TAX CREDIT OF ALLOWING PARENT TO VOLUNTEER
 1-8                              AT PUBLIC SCHOOL
 1-9           Sec. 171.701.  DEFINITION.  In this section, "public school"
1-10     means a public elementary or secondary school, including an
1-11     open-enrollment charter  school, a home-rule school district
1-12     school, and a school with a campus or campus program charter.
1-13           Sec. 171.702.  CREDIT.  A corporation that meets the
1-14     eligibility requirements under this subchapter is entitled to a
1-15     credit in the amount allowed by this subchapter against the tax
1-16     imposed under this chapter.
1-17           Sec. 171.703.  CREDIT OF ALLOWING PARENT TO VOLUNTEER AT
1-18     PUBLIC SCHOOL.  (a)  A corporation may claim a credit under this
1-19     subchapter for wages paid or incurred by the corporation for an
1-20     employee who:
1-21                 (1)  performs during the workday volunteer services for
1-22     at least two days a semester at a public school attended by a child
1-23     of the employee;
1-24                 (2)  does not have accrued vacation leave, sick leave,
 2-1     or other leave that the employee can use for that time; and
 2-2                 (3)  the corporation allows to perform the volunteer
 2-3     services without loss of compensation.
 2-4           (b)  The amount of the credit is equal to 50 percent of the
 2-5     wages paid or incurred by the corporation for the employee for the
 2-6     days on which the employee performs the volunteer services
 2-7     described by Subsection (a).
 2-8           Sec. 171.704.  APPLICATION FOR CREDIT.  (a)  A corporation
 2-9     must apply for a credit under this subchapter on or with the tax
2-10     report for the period for which the credit is claimed.
2-11           (b)  The comptroller shall adopt a form for the application
2-12     for the credit.  A corporation must use this form in applying for
2-13     the credit.
2-14           Sec. 171.705.  PERIOD FOR WHICH CREDIT MAY BE CLAIMED.  (a)
2-15     A corporation may claim a credit under this subchapter for wages
2-16     paid or incurred during an accounting period only against the tax
2-17     owed for the corresponding reporting period.
2-18           (b)  A corporation may not claim a credit in an amount that
2-19     exceeds the amount of tax due for the report.
2-20           Sec. 171.706.  ASSIGNMENT PROHIBITED.  A corporation may not
2-21     convey, assign, or transfer the credit allowed under this
2-22     subchapter to another entity unless all of the assets of the
2-23     corporation are conveyed, assigned, or transferred in the same
2-24     transaction.
2-25           SECTION 2.  This Act takes effect January 1, 2000.  A
2-26     corporation may claim a credit under Subchapter N, Chapter 171, Tax
2-27     Code, as added by this Act, only for wages paid or incurred on or
 3-1     after that date.
 3-2           SECTION 3.  The importance of this legislation and the
 3-3     crowded condition of the calendars in both houses create an
 3-4     emergency and an imperative public necessity that the
 3-5     constitutional rule requiring bills to be read on three several
 3-6     days in each house be suspended, and this rule is hereby suspended.