84R9913 ADM-D
  By: Seliger S.B. No. 1225
  relating to the retention and use of sales tax revenue collected by
  certain retailers to provide job training and placement services to
  certain persons.
         SECTION 1.  Subchapter I, Chapter 151, Tax Code, is amended
  by adding Section 151.433 to read as follows:
  AND PLACEMENT. (a)  In this section:
               (1)  "Qualifying organization" means a retailer
  certified by the comptroller under Subsection (b).
               (2)  "Workforce training community center" means a
  retailer that:
                     (A)  is exempt from the payment of federal income
  taxes under Section 501(a), Internal Revenue Code of 1986, by being
  listed as an exempt organization under Section 501(c)(3) of that
                     (B)  collects and remits to the comptroller sales
  taxes imposed on the sale of donated goods;
                     (C)  has a core mission of assisting persons with
  disabilities or other barriers to employment with job training and
  placement services and uses a majority of its revenue to provide
  those services;
                     (D)  is affiliated with a national or statewide
  organization; and
                     (E)  has annual sales of at least $1 million.
         (b)  A retailer may apply to the comptroller for
  certification as a qualifying organization under this section. If
  the comptroller determines that the applicant meets the
  requirements to be a workforce training community center, the
  comptroller shall certify the applicant as a qualifying
         (c)  Notwithstanding any other law, a qualifying
  organization is not required to remit to the comptroller and may
  retain 50 percent of the sales taxes imposed under this chapter and
  collected by the organization on sales during the period in which
  the qualifying organization holds a certification under Subsection
  (b). The qualifying organization must show the amount retained on a
  tax report required by this chapter in addition to the information
  required by Section 151.406.
         (d)  A qualifying organization shall continue to remit to the
  comptroller sales taxes imposed by a political subdivision of this
  state and collected on sales with respect to which the qualifying
  organization retains sales taxes as authorized by Subsection (c).
         (e)  The reimbursement authorized by Section 151.423 and the
  deduction authorized by Section 151.424 do not apply with respect
  to the amount of sales taxes retained as authorized by Subsection
         (f)  Except as provided by Subsection (g), a qualifying
  organization shall use money retained as authorized by Subsection
  (c) only to:
               (1)  provide a variety of job training and placement
  services to persons with two or more disabilities or other barriers
  to employment, including low educational attainment, a criminal
  record, homelessness, and veteran status;
               (2)  develop an individualized written training and
  employment plan for each person assisted to ensure appropriate and
  successful job placement; and
               (3)  monitor job retention for each person placed for
  the first 90 days of employment and provide additional services as
  needed to support job retention or acquisition of a different job.
         (g)  In its first year of certification, a qualifying
  organization may use money retained as authorized by Subsection (c)
  to improve its infrastructure and otherwise prepare to provide
  services described by Subsection (f). This subsection does not
  apply to the period after a qualifying organization's certification
  is renewed under Subsection (m).
         (h)  After the period described by Subsection (g), for every
  $10,000 in sales tax collections retained under this section a
  qualifying organization:
               (1)  shall provide job training and placement services
  to at least three persons, including services related to
  job-seeking skills and vocational skills training, job placement,
  job coaching, and post-employment support; and
               (2)  must successfully place an average of at least
  2.25 persons in jobs.
         (i)  Subject to Subsection (j), a retailer that is certified
  as a qualifying organization retains that certification until the
  third anniversary of the date of certification. At any time after
  the period described by Subsection (g) during the certification
  period, the comptroller may, and at the conclusion of the
  certification period the comptroller shall, require the qualifying
  organization to demonstrate, in a manner prescribed by the
  comptroller, that the qualifying organization:
               (1)  has not used any tax collections retained under
  this section for a purpose other than a purpose described by
  Subsection (f) after the first year of certification; and
               (2)  is successfully meeting or has successfully met,
  as applicable, the requirements described by Subsection (h).
         (j)  The comptroller, after written notice and a hearing, may
  revoke a certification issued to a retailer that fails to comply
  with this chapter or a rule adopted under this chapter. A retailer
  whose certification the comptroller proposes to revoke under this
  section is entitled to 20 days' written notice of the time and place
  of the hearing on the revocation. The notice must state the reason
  the comptroller is seeking to revoke the retailer's certification.
  At the hearing the retailer must show cause why the retailer's
  certification should not be revoked.
         (k)  The comptroller shall give written notice of the
  revocation of a certification under Subsection (j) to the retailer
  that was certified under this section. The notice may be sent by
  mail to the retailer's address as shown in the comptroller's
         (l)  The comptroller shall require an organization whose
  certification was revoked under Subsection (j) to remit an amount
  of tax collections retained under this section in the comptroller's
  discretion, but not to exceed $3,333 per person not successfully
  placed in a job in accordance with Subsection (h)(2).
         (m)  A retailer that is certified as a qualifying
  organization may apply to renew the certification. The comptroller
  may renew a retailer's certification only if the retailer has
  complied with all requirements during the applicant's
  certification period and with any other requirements for renewal as
  prescribed by rules adopted by the comptroller.
         SECTION 2.  The change in law made by this Act does not
  affect tax liability accruing before the effective date of this
  Act. That liability continues in effect as if this Act had not been
  enacted, and the former law is continued in effect for the
  collection of taxes due and for civil and criminal enforcement of
  the liability for those taxes.
         SECTION 3.  This Act takes effect September 1, 2015.