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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 and the enhancement of |
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manufacturing workforce development, as defined in this Act, serves |
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the public purposes of development and diversification of the |
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economy of this state, the elimination of unemployment or |
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underemployment in this state, and the 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 considering at least one |
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alternative site for the facility that is not located in this state |
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or is competing against similar projects located outside this state |
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for federal funds or financial support, including loan guarantees, |
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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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within 120 days of the date the owner files an election under |
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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 10 year |
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period that the qualified manufacturing project zone is designated; |
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and |
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(B) is directly attributable to the economic |
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impact from the design, construction, and/or operation of the |
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qualified 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 the study accurately estimates the information |
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required by Section 399.003(b)(2-4). |
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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 Section |
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399.003(b)(2-4), the comptroller not later than the 30th day after |
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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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(c) The comptroller shall certify the economic impact study |
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submitted by an owner if the study is conducted by an independent |
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third party engaged by the owner, utilizing generally accepted |
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economic impact forecasting methods. |
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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 may apply to the |
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comptroller for designation of the county in which the project is |
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located as a qualified manufacturing project zone. The comptroller |
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shall approve the application upon a determination that the |
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qualified manufacturing project is the first facility in the county |
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to apply for the designation. The designation takes effect on |
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September 1 preceding the date of approval of a request for |
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designation 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 request or |
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requests with the most investment in the proposed new or expanded |
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facility, as determined by the economic impact study certified |
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under Section 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 |
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benefits under this chapter, the owner of a qualified manufacturing |
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project must make one of the following annual certifications to the |
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comptroller, as of the last day of the state fiscal year for each |
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year the zone is designated: |
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(1) If the qualified manufacturing project zone has |
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been designated for three years or less and the qualified |
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manufacturing project has not begun commercial operation, the owner |
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must certify the forecast of at least 300 full-time equivalent |
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employment positions for the year that the facility will commence |
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commercial operation; |
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(2) If the qualified manufacturing project zone has |
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been designated for more than three years and the qualified |
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manufacturing project has not begun commercial operation, the owner |
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must certify |
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(i) the creation of at least 300 full-time |
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equivalent employment positions; or |
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(ii) the expenditure of $1 billion on the |
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new or expanded facility, the year that the facility will commence |
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commercial operation, and the forecast of at least 300 full-time |
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equivalent employment positions that shall be created no more than |
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eight years after the zone has been designated; or |
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(3) If the qualified manufacturing project has begun |
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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 fails to make one of the certifications |
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under Section 399.006(a), then the owner shall forfeit all future |
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benefits received under this chapter and shall pay to the |
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applicable governmental body within 60 calendar days the entire |
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amount of all refunds previously received under this chapter. |
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(c) For purposes of this section, "commercial operation" |
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means to have begun to operate for the intended purpose of the |
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facility. |
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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 151.429(h-1), Tax Code. |
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Sec. 399.008. LOCAL GOVERNMENT BENEFITS. (a) In this |
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section, "eligible taxable proceeds" means an amount, as determined |
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by a finding of the applicable governmental body, of taxable |
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proceeds generated, paid, or collected by a qualified manufacturing |
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project zone that are a direct or indirect result of the design, |
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construction, or operation of the qualified manufacturing project, |
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including hotel occupancy taxes, ad valorem taxes, sales and use |
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taxes, and mixed beverage taxes. |
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(b) For a period beginning on the date that a county in which |
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a qualified manufacturing project is located is designated as a |
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qualified manufacturing project zone under Section 399.005 and |
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ending on a date not later than the 10th anniversary of that date, a |
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governmental body, including a municipality, county, or political |
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subdivision, may agree to rebate, refund, or pay eligible taxable |
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proceeds to the owner of a qualified manufacturing project. |
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(c) A governmental body that makes an agreement under this |
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section shall make the rebate, refund, or payment directly to the |
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owner. |
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SECTION 3. Section 151.429(e), Tax Code, is amended by |
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adding Subdivisions (6), (7), (8), and (9) to read as follows: |
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(6) "Qualified manufacturing project" has the meaning |
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assigned that term by Section 399.001, Local Government Code. |
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(7) "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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(8) "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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(9) "Manufacturing workforce development" means any |
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expenditures incurred in the state by the owner, or a contractor or |
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subcontractor of the owner, of a qualified manufacturing project |
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for recruiting or training present, prospective, or potential |
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employees for jobs in this state presently available or expected to |
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be available for the planning, designing, construction, |
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fabrication, or operation of a qualified manufacturing project, and |
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the salaries, wages, and benefits of those employees through the |
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first two years of commercial operation of the qualified |
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manufacturing project. |
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SECTION 4. Section 151.429, Tax Code, is amended by adding |
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Subsection (h-1) to read as follows: |
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(h-1) (1) Notwithstanding any other provision of this |
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section, 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 certification to the comptroller required under |
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Section 399.006, Local Government Code. The comptroller shall pay |
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the refund within sixty days of the later of the receipt of the |
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employment certification or the end of the state fiscal year 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 total amount of refunds that a |
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qualified 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. A refund received under this section |
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shall be used to pay for or to refund eligible expenses incurred |
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before or after designation of the county in which the project is |
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located as a qualified manufacturing project zone for manufacturing |
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workforce development for the project. |
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(2) If the owner of a qualified manufacturing project |
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fails to make the applicable certification required by Section |
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399.006, Local Government Code, then the owner shall forfeit all |
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future benefits received under this section and shall pay to the |
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comptroller within 60 calendar days the entire amount of all |
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refunds previously received under this section. |
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SECTION 5. 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. |