HB3232 - Relating to the strong families credit against certain taxes for entities that contribute to certain organizations.

  89R10422 SRA-D     By: Harris H.B. No. 3232       A BILL TO BE ENTITLED   AN ACT   relating to the strong families credit against certain taxes for   entities that contribute to certain organizations.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 201, Alcoholic Beverage Code, is amended   by adding Subchapter D to read as follows:   SUBCHAPTER D.   STRONG FAMILIES TAX CREDIT           Sec. 201.101.  DEFINITIONS.  In this subchapter:                 (1)     "Designated contribution," "eligible   organization," and "strong families credit" have the meanings   assigned by Section 171.801, Tax Code.                 (2)     "Taxpayer" means a person who pays a tax under this   chapter.           Sec.   201.102.     ELIGIBILITY.   A taxpayer that makes a   designated contribution that meets the requirements of Subchapter   P, Chapter 171, Tax Code, is entitled to apply for a strong families   credit in the amount and under the conditions provided by this   subchapter against taxes paid under this chapter.           Sec.   201.103.     AMOUNT OF CREDIT; LIMITATIONS.   (a)   Subject   to Subsections (b) and (c), the amount of a taxpayer's credit for a   state fiscal year is equal to the lesser of:                 (1)     the amount of designated contributions made to   eligible organizations during the state fiscal year; or                 (2)     the amount of taxes paid by the taxpayer under this   chapter during the state fiscal year.           (b)     The maximum amount of strong families credits that may   be awarded is the amount provided by Section 171.805(c), Tax Code.           (c)     The maximum amount of designated contributions a   taxpayer may make to all eligible organizations in a state fiscal   year is the amount provided by Section 171.805(b), Tax Code.           (d)     The comptroller shall allocate strong families credits   as provided by Section 171.805(d), Tax Code.           Sec.   201.104.     APPLICATION.   (a)   A taxpayer must apply to   claim a strong families credit against a tax imposed under this   chapter.           (b)     A taxpayer must apply for the credit in the manner   prescribed by the comptroller and include with the application any   information requested by the comptroller to determine whether the   taxpayer is eligible for the credit under this subchapter.           (c)     The comptroller may award a credit to a taxpayer who   applies for the credit under Subsection (a) if the taxpayer is   eligible for the credit and the credit is available under Section   171.805(c), Tax Code.           (d)     The comptroller shall notify a taxpayer in writing of   the comptroller's decision to grant or deny the application under   Subsection (a). If the comptroller denies a taxpayer's   application, the comptroller shall include in the notice of denial   the reasons for the comptroller's decision.           Sec.   201.105.     RULES.   The comptroller may adopt rules and   procedures necessary to implement, administer, and enforce this   subchapter.           Sec.   201.106.     EXPIRATION.   (a)   This subchapter expires   January 1, 2028.           (b)     The expiration of this subchapter does not affect   credits for which a taxpayer is eligible after the date this   subchapter expires based on designated contributions made before   that date.          SECTION 2.  Subtitle B, Title 3, Insurance Code, is amended   by adding Chapter 230 to read as follows:   CHAPTER 230. STRONG FAMILIES TAX CREDIT           Sec. 230.001.  DEFINITIONS. In this chapter:                 (1)     "Designated contribution," "eligible   organization," and "strong families credit" have the meanings   assigned by Section 171.801, Tax Code.                 (2)     "State insurance tax liability" means any tax   liability incurred by an entity under Chapters 221 through 226 or   Chapter 281.           Sec.   230.002.     ELIGIBILITY.   An entity that makes a   designated contribution that meets the requirements of Subchapter   P, Chapter 171, Tax Code, is entitled to apply for a strong families   credit in the amount and under the conditions provided by this   chapter against the entity's state insurance tax liability.           Sec.   230.003.     AMOUNT OF CREDIT; LIMITATION ON TOTAL   CREDITS. (a)   Subject to Subsections (b) and (c), the amount of an   entity's credit for a report is equal to the lesser of:                 (1)     the amount of designated contributions made to an   eligible organization during the year covered by the report; or                 (2)     the amount of the entity's state insurance tax   liability for the year covered by the report after applying all   other applicable credits.           (b)     The maximum amount of strong families credits that may   be awarded is the amount provided by Section 171.805(c), Tax Code.           (c)     The maximum amount of designated contributions an   entity may make to all eligible organizations in a state fiscal year   is the amount provided by Section 171.805(b), Tax Code.           (d)     The comptroller shall allocate strong families credits   as provided by Section 171.805(d), Tax Code.           Sec.   230.004.     APPLICATION FOR CREDIT. (a) An entity must   apply to claim a strong families credit under this chapter on or   with the report covering the year in which the designated   contribution was made.           (b)     An entity must apply for the credit in the manner   prescribed by the comptroller and include with the application any   information requested by the comptroller to determine whether the   entity is eligible for the credit under this chapter.           (c)     The comptroller may award a credit to an entity that   applies for the credit under Subsection (a) if the entity is   eligible for the credit and the credit is available under Section   171.805(c), Tax Code.           Sec.   230.005.     ASSIGNMENT PROHIBITED; EXCEPTION.   An entity   may not convey, assign, or transfer a strong families credit to   another entity unless substantially all of the assets of the entity   are conveyed, assigned, or transferred in the same transaction.           Sec.   230.006.     RULES.   The comptroller may adopt rules and   procedures necessary to implement, administer, and enforce this   chapter.           Sec.   230.007.     EXPIRATION.   (a)   This chapter expires   January 1, 2028.           (b)     The expiration of this chapter does not affect credits   for which an entity is eligible after the date this chapter expires   based on designated contributions made before that date.          SECTION 3.  Chapter 171, Tax Code, is amended by adding   Subchapter P to read as follows:   SUBCHAPTER P. STRONG FAMILIES TAX CREDIT           Sec. 171.801.  DEFINITIONS. In this subchapter:                 (1)     "At-risk family"   has the meaning assigned by   Section 137.002, Human Resources Code.                 (2)     "Commission"   means the Health and Human Services   Commission.                 (3)     "Designated contribution" means a monetary   contribution to an eligible organization that the contributor   designates at the time of contribution as being made for the purpose   of the strong families credit.                 (4)     "Eligible organization" means an organization   that is certified by the commission as an eligible organization   under this subchapter.                 (5)     "Strong families credit" means the tax credit   established under this subchapter that may be claimed under:                       (A)     Subchapter D, Chapter 201, Alcoholic   Beverage Code;                       (B)  Chapter 230, Insurance Code;                       (C)  this subchapter; or                       (D)  Chapter 203.           Sec.   171.802.     ELIGIBILITY FOR CREDIT.   A taxable entity   that makes a designated contribution that meets the requirements of   this subchapter is eligible to apply for a strong families credit in   the amount and under the conditions provided by this subchapter   against the tax imposed under this chapter.           Sec.   171.803.     QUALIFICATIONS FOR ELIGIBLE ORGANIZATION;   CERTIFICATION OF ELIGIBILITY.   (a)   An organization may apply to the   commission for certification as an eligible organization under this   subchapter if the organization:                 (1)     is exempt from federal income taxation under   Section 501(a), Internal Revenue Code of 1986, as an organization   described by Section 501(c)(3) of that code;                 (2)  is authorized to transact business in this state;                 (3)     has provided the following in this state for at   least three years preceding the organization's initial application   for certification as an eligible organization:                       (A)     comprehensive case management services for   at-risk families based on an assessment of family strengths and   needs, including assisting families in achieving self-sufficiency,   stability, and encouraging workforce participation; and                       (B)     services and resources to assist fathers in   learning and improving parenting skills and being more engaged in   their children's lives through in-school programs and online   resources;                 (4)     does not directly or indirectly provide abortion   services, or offer information related to abortion services; and                 (5)     has not received, either directly or indirectly   through a contractor, more than 50 percent of its total annual   revenue from this state or a political subdivision of this state in   the preceding state fiscal year.           (b)     Services and resources described by Subsection (a)(3)   must be implemented with a continuous quality improvement process   and evaluated based on outcomes.           (c)     An organization must reapply for certification as an   eligible organization each calendar year by submitting to the   commission a signed application form containing:                 (1)     a description of the qualifying services and   resources provided by the organization;                   (2)     the total num [Text truncated for display. 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