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A BILL TO BE ENTITLED
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AN ACT
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relating to the definition of qualified employee for purposes of |
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the enterprise zone program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2303.003(7), Government Code, is amended |
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to read as follows: |
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(7) "Qualified employee" means a person who: |
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(A) is a resident of this state; |
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(B) works for a qualified business; |
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(C) [(B)] receives wages from the qualified |
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business from which employment taxes are deducted; and |
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(D) [(C)] performs at least 50 percent of the |
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person's service for the business at the qualified business site, |
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or if the person engages in the transportation of goods or services, |
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the person reports to the qualified business site and resides |
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within 50 miles of the qualified business site. |
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SECTION 2. Subchapter F, Chapter 2303, Government Code, is |
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amended by adding Section 2303.499 to read as follows: |
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Sec. 2303.499. CERTAIN REQUIREMENTS WAIVED DURING COVID |
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RELIEF PERIOD. (a) In this section, "COVID relief period" means |
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the period beginning March 2, 2020, and ending December 31, 2021. |
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(b) Notwithstanding Section 2303.003(7)(D), the |
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requirement that an employee perform at least 50 percent of the |
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person's service for the business at the qualified business site to |
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be a "qualified employee" is waived for an enterprise project with a |
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designation period that includes all or a portion of the COVID |
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relief period, and the waiver under this subsection extends |
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throughout the job retention period for those employees. This |
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subsection applies only with respect to an employee who is a |
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resident of this state. |
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(c) This section expires December 31, 2030. |
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SECTION 3. Section 2303.499, Government Code, as added by |
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this Act, applies to any audit by the comptroller of whether an |
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enterprise project is eligible for a tax refund under Section |
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151.429, Tax Code, that is not finally completed before the |
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effective date of this Act. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |