| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
| |
|
|
relating to the enterprise zone program. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 2303.003(7), Government Code, is amended |
|
|
to read as follows: |
|
|
(7) "Qualified employee" means a person who: |
|
|
(A) works for a qualified business; and |
|
|
(B) either: |
|
|
(i) performs at least 50 percent of the |
|
|
person's service for the business at the qualified business site; |
|
|
or |
|
|
(ii) met the requirements under |
|
|
Subparagraph (i) immediately before being promoted to a different |
|
|
job with the qualified business. |
|
|
SECTION 2. Section 2303.402(a), Government Code, is amended |
|
|
to read as follows: |
|
|
(a) A person is a qualified business if the bank, for the |
|
|
purpose of state benefits under this chapter, or the nominating |
|
|
body of a project or activity of the person under this chapter, for |
|
|
the purpose of local incentives, certifies that: |
|
|
(1) the person is engaged in or has provided |
|
|
substantial commitment to initiate the active conduct of a trade or |
|
|
business in an enterprise zone, and at least 25 percent of the |
|
|
person's new permanent jobs [employees] in the enterprise zone |
|
|
eligible for enterprise zone program benefits are held by: |
|
|
(A) residents of any enterprise zone in this |
|
|
state; or |
|
|
(B) economically disadvantaged individuals; [or] |
|
|
(2) the person is engaged in or has provided |
|
|
substantial commitment to initiate the active conduct of a trade or |
|
|
business in an area of this state that does not qualify as an |
|
|
enterprise zone, and at least 35 percent of the person's new |
|
|
permanent jobs [employees] at the qualified business site eligible |
|
|
for enterprise zone program benefits are held by: |
|
|
(A) residents of any enterprise zone in this |
|
|
state; or |
|
|
(B) individuals who are economically |
|
|
disadvantaged; or |
|
|
(3) the person is engaged in or has provided |
|
|
substantial commitment to initiate the active conduct of a trade or |
|
|
business in an enterprise zone, and at least 10 percent of the |
|
|
person's retained jobs in the enterprise zone eligible for |
|
|
enterprise zone program benefits are held by residents of that |
|
|
enterprise zone. |
|
|
SECTION 3. Section 2303.403, Government Code, is amended to |
|
|
read as follows: |
|
|
Sec. 2303.403. PROHIBITION ON QUALIFIED BUSINESS |
|
|
CERTIFICATION; LIMIT ON ENTERPRISE PROJECT DESIGNATIONS. (a) If |
|
|
the bank determines that the governing body eligible to nominate an |
|
|
enterprise project is not complying with this chapter, the bank |
|
|
shall prohibit the certification of a qualified business until the |
|
|
bank determines that the governing body is complying with this |
|
|
chapter. |
|
|
(b) The bank may not designate more than 105 enterprise |
|
|
projects during any biennium. The bank may not designate the |
|
|
maximum number of project designations provided by this subsection |
|
|
in a single application round. Any designations remaining at the |
|
|
end of a biennium may be carried forward to the next biennium. |
|
|
SECTION 4. Section 2303.4052, Government Code, is amended |
|
|
to read as follows: |
|
|
Sec. 2303.4052. REQUIRED INFORMATION FROM NOMINATING BODY. |
|
|
Before nominating the project or activity of a qualified business |
|
|
for designation as an enterprise project, the nominating body must |
|
|
submit to the bank: |
|
|
(1) a certified copy of the ordinance or order, as |
|
|
appropriate, or reference to an ordinance or order as required |
|
|
by Section 2303.4051; |
|
|
(2) a certified copy of the minutes [transcript] of |
|
|
all public hearings conducted with respect to local incentives |
|
|
available to qualified businesses within the jurisdiction of the |
|
|
governmental entity nominating the project or activity, regardless |
|
|
of whether those businesses are located in an enterprise zone; |
|
|
(3) the name, title, address, telephone number, and |
|
|
electronic mail address of the nominating body's liaison designated |
|
|
under Section 2303.204; |
|
|
(4) if the business is seeking job retention benefits, |
|
|
documentation showing the number of employment positions at the |
|
|
qualified business site; and |
|
|
(5) any additional information the bank may require. |
|
|
SECTION 5. Sections 2303.406(b) and (g), Government Code, |
|
|
are amended to read as follows: |
|
|
(b) [This subsection does not apply to a qualified business
|
|
|
located in a federally designated zone, as described by Section
|
|
|
2303.101(2), which will receive priority designation in allocating
|
|
|
the number of enterprise projects allowed statewide per biennium as
|
|
|
provided by Section 2303.403.] The bank shall designate qualified |
|
|
businesses as enterprise projects on a competitive basis. The bank |
|
|
shall make its designation decisions using a weighted scale in |
|
|
which: |
|
|
(1) 40 percent of the evaluation depends on the |
|
|
economic distress of the block group or distressed county in which a |
|
|
proposed enterprise project is located; |
|
|
(2) 25 percent of the evaluation depends on the local |
|
|
effort to achieve development and revitalization of the block group |
|
|
or distressed county in which a proposed enterprise project is |
|
|
located; and |
|
|
(3) 35 percent of the evaluation depends on the |
|
|
evaluation criteria as determined by the bank, which must include: |
|
|
(A) with respect to a proposed enterprise project |
|
|
located in a block group, the level of cooperation and support the |
|
|
project applicant commits to the revitalization goals of all of the |
|
|
enterprise zone block groups within the jurisdiction of the |
|
|
nominating governmental entity; |
|
|
(B) with respect to a proposed enterprise project |
|
|
located in a distressed county, the level of cooperation and |
|
|
support the project applicant commits to the revitalization of the |
|
|
distressed county; and |
|
|
(C) the type and wage level of the jobs to be |
|
|
created or retained by the business. |
|
|
(g) The bank may lower the designation level of a proposed |
|
|
project or activity nominated for enterprise project designation or |
|
|
split a proposed project or activity nominated for that |
|
|
designation, based on the number of projected new permanent jobs or |
|
|
retained jobs,[:
|
|
|
[(1)] if there are fewer designations available than |
|
|
applications received[;] or |
|
|
[(2)] to further the economic interests of the state. |
|
|
If an enterprise project designation is split between two or more |
|
|
projects or activities, the bank may determine how to |
|
|
proportionally allocate state benefits among the projects or |
|
|
activities. |
|
|
SECTION 6. Section 2303.504, Government Code, is amended to |
|
|
read as follows: |
|
|
Sec. 2303.504. STATE TAX REFUNDS [AND CREDITS]; REPORT. |
|
|
(a) Subject to Section 2303.516, an enterprise project is entitled |
|
|
to[:
|
|
|
[(1)] a refund of state taxes under Section 151.429, |
|
|
Tax Code[; and
|
|
|
[(2)
a franchise tax credit under Subchapter Q-1,
|
|
|
Chapter 171, Tax Code]. |
|
|
(b) At the time of receipt of any tax benefit available as a |
|
|
result of participating in the enterprise zone program, including a |
|
|
state sales and use tax refund [or franchise tax credit], three |
|
|
percent of the amount of the tax benefit shall be transferred to the |
|
|
Texas economic development bank fund under Subchapter B, Chapter |
|
|
489, to defray the cost of administering this chapter. |
|
|
(c) Not later than the 60th day after the last day of each |
|
|
fiscal year, the comptroller shall report to the bank the statewide |
|
|
total of actual jobs created, actual jobs retained, and the tax |
|
|
refunds [and credits] made under this section during that fiscal |
|
|
year. |
|
|
SECTION 7. Section 2303.516(b), Government Code, is amended |
|
|
to read as follows: |
|
|
(b) The comptroller may determine that the business or |
|
|
project is not entitled to a refund [or credit] of state taxes under |
|
|
Section 2303.504 if the comptroller finds that: |
|
|
(1) the business or project is not willing to |
|
|
cooperate with the comptroller in providing the comptroller with |
|
|
the information the comptroller needs to determine the state |
|
|
benefits; or |
|
|
(2) the business or project has substantially failed |
|
|
to follow through on any commitments made by it or on its behalf |
|
|
under this chapter. |
|
|
SECTION 8. Sections 2303.109(b) and 2303.406(e), |
|
|
Government Code, are repealed. |
|
|
SECTION 9. The changes in law made by this Act to Section |
|
|
2303.402, Government Code, apply only to an application for a |
|
|
designation of an enterprise project under the enterprise zone |
|
|
program under Chapter 2303, Government Code, as amended by this |
|
|
Act, filed or pending on or after September 1, 2011. An application |
|
|
for designation of an enterprise project under the enterprise zone |
|
|
program granted before September 1, 2011, is governed by the law in |
|
|
effect on the date the application was granted, and the former law |
|
|
is continued in effect for that purpose. |
|
|
SECTION 10. This Act takes effect September 1, 2011. |
|
|
|
|
|
* * * * * |