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A BILL TO BE ENTITLED
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AN ACT
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relating to qualified manufacturing project zones. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The Legislature of the State of Texas finds that |
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a qualified manufacturing project, as defined in this Act, and the |
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enhancement of manufacturing workforce development serve the |
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public purposes of development and diversification of the |
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employment of this state, elimination of unemployment or |
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underemployment in this state, and development or expansion of |
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commerce in this state. |
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SECTION 2. Subtitle C, Title 12, Local Government Code, is |
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amended by adding Chapter 399 to read as follows: |
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CHAPTER 399. QUALIFIED MANUFACTURING PROJECT ZONES |
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Sec. 399.001. DEFINITION. In this chapter, "qualified |
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manufacturing project" means a proposed new or expanded facility |
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that, on the date of qualification under Section 399.002: |
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(1) is subject to an agreement entered into on or after |
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January 1, 2008, but before January 1, 2015, with a county, |
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municipality, or other taxing unit under Chapter 312, Tax Code, or |
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with a school district under Chapter 313, Tax Code, under which the |
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investment in the facility is at least $200 million; |
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(2) will be engaged in manufacturing, as that term is |
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defined by Section 151.318, Tax Code, the construction of which |
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begins on or after September 1, 2009; |
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(3) is forecasted to create at least 300 full-time |
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equivalent employment positions; and |
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(4) the owner of which is: |
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(A) considering at least one alternative site for |
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the facility that is not located in this state; or |
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(B) competing against similar projects located |
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outside this state for federal funds or financial support, |
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including loan guarantees, that would benefit the project. |
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Sec. 399.002. DATE OF QUALIFICATION. A proposed facility |
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becomes a qualified manufacturing project on the date the owner of |
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the facility files an election to become a qualified manufacturing |
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project with the comptroller. |
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Sec. 399.003. ECONOMIC IMPACT STUDY. (a) The owner of a |
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qualified manufacturing project must conduct an economic impact |
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study of the county in which the qualified manufacturing project is |
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located and submit the study to the comptroller for certification |
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not later than the 120th day after the date the owner files an |
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election for that designation under Section 399.002. |
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(b) The economic impact study must provide an estimate of: |
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(1) the general economic impact likely to occur in the |
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county as a result of the qualified manufacturing project; |
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(2) the anticipated amount of increase in the tax |
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receipts to this state from the taxes imposed under Chapter 151, Tax |
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Code, that: |
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(A) will occur in the county during the period |
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that the qualified manufacturing project zone is designated; and |
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(B) is directly attributable to the economic |
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impact from the design, construction, or operation of the qualified |
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manufacturing project; |
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(3) the projected number of full-time equivalent |
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employment positions likely to be available at the qualified |
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manufacturing project; and |
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(4) the investment projected to be made at the |
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qualified manufacturing project. |
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Sec. 399.004. COMPTROLLER CERTIFICATION OF ECONOMIC IMPACT |
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STUDY. (a) Not later than the 30th day after receiving the |
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economic impact study from an owner of a qualified manufacturing |
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project, the comptroller shall certify the study if the comptroller |
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determines that: |
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(1) the study accurately estimates the information |
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required by Sections 399.003(b)(2)-(4); or |
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(2) the study: |
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(A) was conducted by an independent third party; |
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(B) was conducted using generally accepted |
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economic impact forecasting methods; and |
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(C) contains the information required by Section |
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399.003(b). |
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(b) If the comptroller determines that the economic impact |
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study submitted by the owner of the qualified manufacturing project |
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does not accurately estimate the information required by Sections |
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399.003(b)(2)-(4) or that the study does not meet the requirements |
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of Subsection (a)(2), as applicable, the comptroller, not later |
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than the 30th day after the date of receiving the study, shall: |
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(1) submit a preliminary determination to the owner of |
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the qualified manufacturing project; and |
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(2) provide the owner of the qualified manufacturing |
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project with an opportunity to respond or submit a new or amended |
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economic impact study to the comptroller. |
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Sec. 399.005. QUALIFIED MANUFACTURING PROJECT ZONE. (a) |
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The owner of a qualified manufacturing project for which the |
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comptroller has certified an economic impact study in accordance |
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with Section 399.004 may apply to the comptroller for designation |
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of the county in which the project is located as a qualified |
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manufacturing project zone. The comptroller shall approve the |
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application on a determination that the qualified manufacturing |
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project is the first facility in the county to apply for the |
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designation. The designation takes effect on September 1 preceding |
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the date of approval of an application for designation of the county |
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as a qualified manufacturing project zone. |
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(b) Only one qualified manufacturing project that is in a |
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qualified manufacturing project zone may qualify for benefits under |
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this chapter at any one time. |
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(c) If more than one qualified manufacturing project |
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applies for zone designation from a single county within a calendar |
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month, the comptroller shall approve the qualified application with |
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the most investment in the proposed new or expanded facility, as |
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determined by the economic impact study certified under Section |
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399.004. |
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(d) A qualified manufacturing project zone designation |
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remains in effect until the expiration of any tax limitations, |
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credits, abatements, or other benefits under an agreement entered |
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into under Chapter 312 or 313, Tax Code, for the qualified |
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manufacturing project. |
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Sec. 399.006. ANNUAL CERTIFICATION. (a) To receive state |
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benefits under this chapter, the owner of a qualified manufacturing |
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project in a qualified manufacturing project zone must make the |
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following applicable annual certification to the comptroller, as of |
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the last day of the state fiscal year for each year of the zone's |
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designation: |
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(1) if the qualified manufacturing project zone |
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designation has been in effect for three years or less and the |
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qualified manufacturing project has not commenced commercial |
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operation, the owner must certify the forecast of at least 300 |
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full-time equivalent employment positions for the year that the |
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facility will begin commercial operation; |
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(2) if the qualified manufacturing project zone |
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designation has been in effect for more than three years and the |
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qualified manufacturing project has not started commercial |
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operation, the owner must certify: |
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(A) the creation of at least 300 full-time |
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equivalent employment positions; or |
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(B) all of the following: |
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(i) the expenditure of at least $1 billion |
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on the new or expanded facility has occurred; |
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(ii) the year in which the facility will |
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begin commercial operation; and |
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(iii) the forecast of at least 300 |
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full-time equivalent employment positions that will be created not |
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later than the eighth anniversary of the date of the zone's |
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designation; or |
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(3) if the qualified manufacturing project has started |
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commercial operation, the owner must certify the creation of at |
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least 300 full-time equivalent employment positions at the |
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facility. |
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(b) If the owner of a qualified manufacturing project fails |
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to make the applicable certification required under Subsection (a), |
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the owner forfeits the right to receive future benefits under this |
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chapter and shall pay to the applicable governmental body within 60 |
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calendar days the entire amount of all refunds previously received |
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under this chapter. |
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(c) For purposes of this section, "commercial operation," |
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with respect to a facility, means that the facility has begun to |
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operate for the facility's intended purpose. |
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Sec. 399.007. STATE BENEFITS. The owner of a qualified |
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manufacturing project in a qualified manufacturing project zone is |
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eligible for a refund of state sales and use taxes as provided by |
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Section 151.4292, Tax Code. |
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Sec. 399.008. COMPTROLLER DUTIES. The comptroller shall |
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adopt rules and forms necessary to perform the comptroller's duties |
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under this chapter. |
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SECTION 3. Subchapter I, Chapter 151, Tax Code, is amended |
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by adding Section 151.4292 to read as follows: |
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Sec. 151.4292. TAX REFUNDS FOR QUALIFIED MANUFACTURING |
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PROJECTS. (a) In this section: |
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(1) "Additional sales and use tax" means the total |
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amount of sales and use taxes collected under this chapter on |
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purchases of all taxable items purchased within a qualified |
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manufacturing project zone for each state fiscal year for the |
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duration of the qualified manufacturing project zone designation |
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less the sales tax base, not otherwise due as a rebate or refund |
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under any other applicable law. |
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(2) "Manufacturing workforce development" means, |
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solely for purposes of this section, any expenditures incurred in |
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the state by the owner, or a contractor or subcontractor of the |
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owner, of a qualified manufacturing project for recruiting or |
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training present, prospective, or potential employees not employed |
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in a "bona fide executive, administrative, or professional |
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capacity," as that phrase is used for purposes of establishing an |
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exemption to the overtime provisions of the federal Fair Labor |
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Standards Act of 1938 (29 U.S.C. Section 201 et seq.), excluding |
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operating staff, maintenance staff, and engineering staff, for jobs |
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in this state presently available or expected to be available for |
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the planning, designing, construction, fabrication, or operation |
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of a qualified manufacturing project, and the salaries, wages, and |
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benefits of those employees through the first two years of |
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commercial operation of the qualified manufacturing project. |
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(3) "Qualified manufacturing project" has the meaning |
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assigned that term by Section 399.001, Local Government Code. |
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(4) "Sales tax base" means the amount of the sales and |
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use taxes collected under this chapter on purchases of all taxable |
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items purchased within the boundaries of a qualified manufacturing |
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project zone for the state fiscal year ending before the date the |
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zone is designated. |
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(b) The owner of a qualified manufacturing project in a |
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qualified manufacturing project zone is entitled to receive a |
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payment of a refund of 50 percent of the additional sales and use |
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tax for the preceding state fiscal year provided the owner has made |
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the applicable employment certification to the comptroller |
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required under Section 399.006, Local Government Code. For the |
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duration of a qualified manufacturing project zone designation, but |
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not to exceed 10 years, the comptroller shall pay the refund not |
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later than the 60th day after the later of the date of receipt of the |
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employment certification or the last day of the state fiscal year. |
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(c) The total amount of refunds that a qualified |
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manufacturing project may receive over the course of the |
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designation of the county in which it is located as a qualified |
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manufacturing project zone may not exceed an amount equal to the |
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lesser of $50 million or five percent of the qualified |
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manufacturing project's investments in the facility under Chapter |
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399, Local Government Code. |
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(d) A refund received under this section shall be used to |
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pay for or to refund eligible expenses incurred before or after |
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designation of the county in which the project is located as a |
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qualified manufacturing project zone for manufacturing workforce |
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development for the project. |
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(e) If the owner of a qualified manufacturing project fails |
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to make the applicable certification required by Section 399.006, |
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Local Government Code, the owner forfeits the right to receive all |
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future benefits under this section and shall pay to the |
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comptroller, not later than the 60th calendar day after the date the |
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certification is due, the entire amount of all refunds previously |
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received under this section. |
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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, 2009. |