78R4419 KEG-F

By:  Coleman                                                      H.B. No. 1557



A BILL TO BE ENTITLED

AN ACT

relating to the eligibility of certain employers for a state tax 
refund for certain wages paid or incurred.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 301.104, Labor Code, is amended to read 
as follows:      
	Sec. 301.104.  ELIGIBILITY.  A person is eligible for the 
refund for wages paid or incurred by the person, during each 
calendar year for which the refund is claimed, only if:
		(1)  the wages paid or incurred by the person are for 
services of an employee who is:
			(A)  a resident of this state; and                                           
			(B)  a recipient of:                                                         
				(i)  financial assistance and services in 
accordance with Chapter 31, Human Resources Code; or
				(ii)  medical assistance in accordance with 
Chapter 32, Human Resources Code;
		(2)  the person satisfies the certification 
requirements under Section 301.105; and
		(3)  on termination of the employee's transitional 
medical assistance benefits under Section 32.0255, Human Resources 
Code, the person provides and pays for the benefit of the employee a 
part of the cost of coverage under:
			(A)  a health plan provided by a health 
maintenance organization established under the Texas Health 
Maintenance Organization Act (Chapter 20A, Vernon's Texas 
Insurance Code);
			(B)  a health benefit plan approved by the 
commissioner of insurance;      
			(C)  a self-funded or self-insured employee 
welfare benefit plan that provides health benefits and is 
established in accordance with the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1001 et seq.); or
			(D)  a medical savings account authorized under 
the Health Insurance Portability and Accountability Act of 1996 (26 
U.S.C. Section 220).
	SECTION 2.  This Act takes effect September 1, 2003, and 
applies only to wages paid or incurred on or after that date.  Wages 
paid or incurred before that date are governed by the law in effect 
on the date the wages were paid or incurred, and that law is 
continued in effect for that purpose.