By: Watson, et al. S.B. No. 275
(In the Senate - Filed December 7, 2016; January 30, 2017,
read first time and referred to Committee on Finance;
April 4, 2017, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 9, Nays 5; April 4, 2017,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 275 By: Watson
A BILL TO BE ENTITLED
AN ACT
relating to the retention and use of sales tax revenue collected by
certain retailers to provide job training and placement services to
certain persons.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter I, Chapter 151, Tax Code, is amended
by adding Section 151.433 to read as follows:
Sec. 151.433. USE OF SALES TAX COLLECTIONS FOR JOB TRAINING
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
code;
(B) collects and remits to the comptroller sales
taxes imposed on the sale of donated goods;
(C) has experience in assisting persons with a
disability or other barriers to employment with job training and
placement services and uses a portion of its revenue to provide
those services; and
(D) 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
organization.
(c) Notwithstanding any other law, a qualifying
organization is not required to remit to the comptroller and may
retain:
(1) the lesser of 30 percent or $1 million of the sales
taxes imposed under this chapter and collected by the organization
on sales during its first year of certification as a qualifying
organization; and
(2) the lesser of 50 percent or $1 million of the sales
taxes imposed under this chapter and collected by the organization
on sales during each subsequent year of the remaining period in
which the qualifying organization holds that certification,
including a renewal certification.
(d) A qualifying organization must show the amount of sales
taxes retained as authorized by Subsection (c) on a tax report
required by this chapter in addition to the information required by
Section 151.406.
(e) 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).
(f) 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
(c).
(g) Except as provided by Subsection (h), 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 a disability or other barriers to
employment, including low educational attainment, a criminal
record, homelessness, and status as a veteran;
(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.
(h) 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 (g). This subsection does not
apply to the period after a qualifying organization's certification
is renewed under Subsection (n).
(i) After the period described by Subsection (h), 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.
(j) Subject to Subsection (k), 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 (h) 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 (g) after the first year of certification; and
(2) is successfully meeting or has successfully met,
as applicable, the requirements described by Subsection (i).
(k) 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.
(l) The comptroller shall give written notice of the
revocation of a certification under Subsection (k) 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
records.
(m) The comptroller shall require an organization whose
certification was revoked under Subsection (k) 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 (i)(2).
(n) 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.
(o) Notwithstanding Subsection (b), the comptroller may not
certify a retailer as a qualifying organization under that
subsection before September 1, 2019. The authorization to retain
sales taxes provided by Subsection (c) applies only to sales taxes
imposed under this chapter and collected by a qualifying
organization on or after September 1, 2019. This subsection
expires January 1, 2020.
SECTION 2. The change in law made by this Act does not
affect tax liability accruing before September 1, 2019. 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, 2018.
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