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A BILL TO BE ENTITLED
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AN ACT
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relating to a requirement that a person provide or contribute to the |
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cost of child care for the person's employees in order to be |
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eligible to receive a limitation on the taxable value of the |
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person's property for school district maintenance and operations ad |
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valorem tax purposes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 403.612, Government Code, is amended by |
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amending Subsection (b) and adding Subsection (c-1) to read as |
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follows: |
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(b) An agreement entered into under this section between the |
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governor, a school district, and an applicant pertaining to an |
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eligible project shall: |
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(1) specify the project to which the agreement |
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applies; |
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(2) specify the term of the agreement, which must: |
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(A) begin on the date the agreement is entered |
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into; and |
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(B) end on December 31 of the third tax year |
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following the end of the incentive period; |
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(3) specify the construction and incentive periods for |
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the project; |
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(4) specify the manner for determining the taxable |
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value for school district maintenance and operations ad valorem tax |
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purposes during the incentive period under Section 403.605 for the |
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eligible property subject to the agreement; |
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(5) specify the applicable jobs and investment |
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requirements prescribed by Section 403.604 and require the |
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applicant to comply with those requirements; |
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(6) require that the average annual wage paid to all |
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persons employed by the applicant in connection with the project |
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used to calculate total jobs exceed 110 percent of the average |
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annual wage for all jobs in the applicable industry sector during |
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the most recent four quarters for which data is available, as |
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computed by the Texas Workforce Commission, with the applicant's |
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average annual wage being equal to the quotient of: |
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(A) the applicant's total wages paid, other than |
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wages paid for construction jobs, as reported under Section |
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403.616(c)(4); and |
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(B) the applicant's number of total jobs as |
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reported under Section 403.616(c)(3); |
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(7) require the applicant to pay a penalty prescribed |
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by Section 403.614 if the applicant fails to comply with an |
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applicable jobs or wage requirement; |
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(8) require the applicant to offer and contribute to a |
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group health benefit plan for each employee of the applicant who is |
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employed in a full-time job; |
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(8-a) subject to Subsection (c-1), require the |
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applicant to provide as a benefit of employment for each employee of |
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the applicant who is employed in a full-time job at the site of the |
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project: |
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(A) child care provided by a licensed child-care |
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center: |
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(i) that is operated on-site by the |
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applicant; or |
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(ii) with which the applicant enters into a |
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contract; or |
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(B) payment of not less than 50 percent of the |
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employee's costs for child care; |
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(9) require the applicant, at the time the applicant |
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executes the agreement, to execute a performance bond in an amount |
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the comptroller determines to be reasonable and necessary to |
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protect the interests of the state and the district and conditioned |
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on the applicant's compliance with the terms of the agreement; |
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(10) authorize the governor or the district to |
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terminate the agreement as provided by Subsection (d); and |
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(11) incorporate each relevant provision of this |
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subchapter. |
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(c-1) This subsection applies to a term described by |
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Subsection (b)(8-a). The agreement must require the applicant to |
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provide the benefit described by that subsection to eligible |
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employees beginning on January 1 of the tax year following the first |
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year that a report submitted by the applicant under Section 403.616 |
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shows that the number of required jobs created by the project at the |
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site of the project is 100 or more. |
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SECTION 2. The change in law made by this Act applies only |
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to an agreement limiting the taxable value of property entered into |
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under Subchapter T, Chapter 403, Government Code, as added by |
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Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular |
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Session, 2023, on or after the effective date of this Act. An |
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agreement limiting the taxable value of property entered into under |
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that subchapter before the effective date of this Act is governed by |
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the law in effect on the date the agreement was entered into, and |
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the former law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2025. |