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A BILL TO BE ENTITLED
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AN ACT
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relating to 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)] works for a qualified business[; and
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[(B)
performs at least 50 percent of the person's
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service for the business at the qualified business site]. |
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SECTION 2. Section 2303.402(a), Government Code, is amended |
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to read as follows: |
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(a) A person is a qualified business if the bank, for the |
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purpose of state benefits under this chapter, or the nominating |
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body of a project or activity of the person under this chapter, for |
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the purpose of local incentives, certifies that: |
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(1) the person is engaged in or has provided |
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substantial commitment to initiate the active conduct of a trade or |
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business in an enterprise zone, and at least 25 percent of the |
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person's new permanent jobs and retained jobs [employees] in the |
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enterprise zone eligible for enterprise zone program benefits are |
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held by: |
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(A) residents of any enterprise zone in this |
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state; or |
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(B) economically disadvantaged individuals; or |
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(2) the person is engaged in or has provided |
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substantial commitment to initiate the active conduct of a trade or |
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business in an area of this state that does not qualify as an |
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enterprise zone, and at least 35 percent of the person's new |
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permanent jobs and retained jobs [employees] at the qualified |
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business site eligible for enterprise zone program benefits are |
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held by: |
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(A) residents of any enterprise zone in this |
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state; or |
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(B) individuals who are economically |
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disadvantaged. |
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SECTION 3. Section 2303.403, Government Code, is amended to |
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read as follows: |
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Sec. 2303.403. PROHIBITION ON QUALIFIED BUSINESS |
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CERTIFICATION; LIMIT ON ENTERPRISE PROJECT DESIGNATIONS. (a) If |
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the bank determines that the governing body eligible to nominate an |
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enterprise project is not complying with this chapter, the bank |
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shall prohibit the certification of a qualified business until the |
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bank determines that the governing body is complying with this |
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chapter. |
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(b) The bank may not designate more than 105 enterprise |
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projects during any biennium. The bank may not designate more than |
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10 percent of the maximum allowed enterprise projects in each of the |
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application rounds during the biennium, except that the bank may |
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exceed the 10 percent limit during any application round to |
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designate an enterprise project of a qualified business considered |
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to be a state priority project by the office. Any designations |
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remaining at the end of a biennium may be carried forward to the |
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next biennium. |
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SECTION 4. Section 2303.405(b), Government Code, is amended |
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to read as follows: |
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(b) An application must contain an economic analysis of the |
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plans of the qualified business for expansion, revitalization, or |
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other activity with regard to the enterprise project, including: |
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(1) the number of employment positions in existence at |
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the qualified business site on the 91st day before the application |
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deadline; |
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(1-a) the number of new permanent jobs the enterprise |
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project commits to create during the designation period presented |
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in the form of a tabular listing of: |
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(A) the classification titles of those jobs; and |
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(B) the number of jobs and salary range for each |
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classification title; |
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(2) the number of permanent jobs the enterprise |
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project commits to retain during the designation period presented |
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in the form of a tabular listing of: |
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(A) the classification titles of the retained |
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jobs; and |
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(B) the number of retained jobs and salary range |
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for each classification title; |
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(3) the amount of investment to be made by the |
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enterprise project; |
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(4) a complete description of the projected schedule |
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for completion of the specific activity described by Section |
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2303.404(b) to be undertaken by the enterprise project; |
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(5) other information the bank requires; and |
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(6) a description of the local effort made by the |
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nominating body, the qualified business, and other affected |
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entities to develop and revitalize the jurisdiction of the |
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governmental entity nominating the project or activity[; and
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[(7)
if the nominating body is applying for a double or
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triple jumbo enterprise project, as defined by Section 2303.407, an
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indication of which level of designation is being sought]. |
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SECTION 5. Section 2303.4051(f), Government Code, is |
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amended to read as follows: |
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(f) If the nominating body has previously nominated a |
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project or activity for designation as an enterprise project, the |
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nominating body, instead of issuing a new ordinance or order under |
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this section for a nominated project or activity, may by resolution |
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make a reference to a previously issued ordinance or order that met |
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the requirements of this section if: |
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(1) the resolution nominates the project or activity |
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for designation as an enterprise project and states: |
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(A) whether the nominated project or activity is |
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located in an area designated as an enterprise zone; and |
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(B) [the level of enterprise project designation
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being sought; and
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[(C)] the ending date of the project's |
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designation period; |
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(2) the local incentives described in the previously |
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issued ordinance or order are the same on the date the resolution is |
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issued; and |
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(3) the local incentives to be made available to the |
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nominated project or activity are the same as those made available |
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to the project or activity that are the subject of the previously |
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issued ordinance or order. |
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SECTION 6. Section 2303.4052, Government Code, is amended |
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to read as follows: |
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Sec. 2303.4052. REQUIRED INFORMATION FROM NOMINATING BODY. |
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Before nominating the project or activity of a qualified business |
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for designation as an enterprise project, the nominating body must |
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submit to the bank: |
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(1) a certified copy of the ordinance or order, as |
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appropriate, or reference to an ordinance or order as required |
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by Section 2303.4051; |
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(2) a certified copy of the minutes [transcript] of |
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all public hearings conducted with respect to local incentives |
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available to qualified businesses within the jurisdiction of the |
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governmental entity nominating the project or activity, regardless |
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of whether those businesses are located in an enterprise zone; |
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(3) the name, title, address, telephone number, and |
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electronic mail address of the nominating body's liaison designated |
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under Section 2303.204; |
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(4) if the business is seeking job retention benefits, |
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documentation showing the number of employment positions [at the
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qualified business site]; and |
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(5) any additional information the bank may require. |
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SECTION 7. Sections 2303.406(b) and (g), Government Code, |
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are amended to read as follows: |
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(b) [This subsection does not apply to a qualified business
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located in a federally designated zone, as described by Section
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2303.101(2), which will receive priority designation in allocating
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the number of enterprise projects allowed statewide per biennium as
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provided by Section 2303.403.] The bank shall designate qualified |
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businesses as enterprise projects on a competitive basis, subject |
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to the limitations provided by Section 2303.403. The bank shall |
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make its designation decisions using a weighted scale in which: |
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(1) 40 percent of the evaluation depends on the |
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economic distress of the block group or distressed county in which a |
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proposed enterprise project is located; |
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(2) 25 percent of the evaluation depends on the local |
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effort to achieve development and revitalization of the block group |
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or distressed county in which a proposed enterprise project is |
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located; and |
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(3) 35 percent of the evaluation depends on the |
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evaluation criteria as determined by the bank, which must include: |
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(A) with respect to a proposed enterprise project |
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located in a block group, the level of cooperation and support the |
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project applicant commits to the revitalization goals of all of the |
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enterprise zone block groups within the jurisdiction of the |
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nominating governmental entity; |
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(B) with respect to a proposed enterprise project |
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located in a distressed county, the level of cooperation and |
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support the project applicant commits to the revitalization of the |
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distressed county; and |
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(C) the type and wage level of the jobs to be |
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created or retained by the business. |
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(g) The bank may split [lower the designation level of] a |
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proposed project or activity nominated for enterprise project |
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designation based on the number of projected new permanent jobs or |
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retained jobs[:
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[(1)] if there are fewer designations available than |
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applications received[;] or |
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[(2)] to further the economic interests of the state. |
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If an enterprise project designation is split between two or more |
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projects or activities, the bank may determine how to |
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proportionally allocate state benefits among the projects or |
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activities. |
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SECTION 8. Sections 2303.407(a) and (b), Government Code, |
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are amended to read as follows: |
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(a) The bank shall allocate to an enterprise project the |
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maximum number of new permanent jobs or retained jobs eligible |
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based on the amount of capital investment made in the project[, the
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project's designation level,] and the refund per job with a maximum |
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refund to be included in a computation of a tax refund for the |
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project. |
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(b) A capital investment in a project of: |
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(1) $40,000 to $399,999 will result in a refund of up |
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to $2,500 per job with a maximum refund of $25,000 for the creation |
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or retention of 10 jobs; |
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(2) $400,000 to $999,999 will result in a refund of up |
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to $2,500 per job with a maximum refund of $62,500 for the creation |
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or retention of 25 jobs; |
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(3) $1,000,000 to $4,999,999 will result in a refund |
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of up to $2,500 per job with a maximum refund of $312,500 for the |
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creation or retention of 125 jobs; or |
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(4) $5,000,000 or more [to $149,999,999] will result |
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in a refund of up to $2,500 per job with a maximum refund of |
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$1,250,000 for the creation or retention of 500 jobs[;
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[(5)
$150,000,000 to $249,999,999 will result in a
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refund of up to $5,000 per job with a maximum refund of $2,500,000
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for the creation or retention of 500 jobs if the bank designates the
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project as a double jumbo enterprise project; or
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[(6)
$250,000,000 or more will result in a refund of up
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to $7,500 per job with a maximum refund of $3,750,000 for the
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creation or retention of at least 500 jobs if the bank designates
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the project as a triple jumbo enterprise project]. |
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SECTION 9. Section 2303.504, Government Code, is amended to |
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read as follows: |
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Sec. 2303.504. STATE TAX REFUNDS [AND CREDITS]; REPORT. |
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(a) Subject to Section 2303.516, an enterprise project is entitled |
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to[:
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[(1)] a refund of state taxes under Section 151.429, |
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Tax Code[; and
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[(2)
a franchise tax credit under Subchapter Q-1,
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Chapter 171, Tax Code]. |
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(b) At the time of receipt of any tax benefit available as a |
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result of participating in the enterprise zone program, including a |
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state sales and use tax refund [or franchise tax credit], three |
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percent of the amount of the tax benefit shall be transferred to the |
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Texas economic development bank fund under Subchapter B, Chapter |
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489, to defray the cost of administering this chapter. |
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(c) Not later than the 60th day after the last day of each |
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fiscal year, the comptroller shall report to the bank the statewide |
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total of actual jobs created, actual jobs retained, and the tax |
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refunds [and credits] made under this section during that fiscal |
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year. |
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SECTION 10. Section 2303.516(b), Government Code, is |
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amended to read as follows: |
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(b) The comptroller may determine that the business or |
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project is not entitled to a refund [or credit] of state taxes under |
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Section 2303.504 if the comptroller finds that: |
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(1) the business or project is not willing to |
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cooperate with the comptroller in providing the comptroller with |
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the information the comptroller needs to determine the state |
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benefits; or |
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(2) the business or project has substantially failed |
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to follow through on any commitments made by it or on its behalf |
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under this chapter. |
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SECTION 11. Sections 151.429(b) and (c), Tax Code, are |
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amended to read as follows: |
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(b) Subject to the limitations provided by Subsection (c) of |
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this section, an enterprise project qualifies for a refund of taxes |
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under this section based on the amount of capital investment made at |
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the qualified business site[, the project's designation level,] and |
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the refund per job with a maximum refund to be included in a |
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computation of a tax refund for the project. A capital investment |
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at the qualified business site of: |
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(1) $40,000 to $399,999 will result in a refund of up |
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to $2,500 per job with a maximum refund of $25,000 for the creation |
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or retention of 10 jobs; |
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(2) $400,000 to $999,999 will result in a refund of up |
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to $2,500 per job with a maximum refund of $62,500 for the creation |
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or retention of 25 jobs; |
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(3) $1,000,000 to $4,999,999 will result in a refund |
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of up to $2,500 per job with a maximum refund of $312,500 for the |
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creation or retention of 125 jobs; or |
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(4) $5,000,000 or more [to $149,999,999] will result |
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in a refund of up to $2,500 per job with a maximum refund of |
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$1,250,000 for the creation or retention of 500 jobs[;
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[(5)
$150,000,000 to $249,999,999 will result in a
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refund of up to $5,000 per job with a maximum refund of $2,500,000
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for the creation or retention of 500 jobs if the Texas Economic
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Development Bank designates the project as a double jumbo
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enterprise project; or
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[(6)
$250,000,000 or more will result in a refund of up
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to $7,500 per job with a maximum refund of $3,750,000 for the
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creation or retention of at least 500 jobs if the Texas Economic
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Development Bank designates the project as a triple jumbo
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enterprise project]. |
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(c) The total amount of tax refund that an enterprise |
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project may apply for in a state fiscal year may not exceed |
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$250,000, at not more than $2,500 per job. [The total amount of tax
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refund that a double jumbo enterprise project may apply for in a
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state fiscal year may not exceed $500,000, at not more than $5,000
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per job.
The total amount of tax refund that a triple jumbo
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enterprise project may apply for in a state fiscal year may not
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exceed $750,000, at not more than $7,500 per job.] If an enterprise |
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project[, double jumbo enterprise project, or triple jumbo
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enterprise project] qualifies in a state fiscal year for a refund of |
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taxes in an amount in excess of the applicable limitation provided |
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by this subsection, it may apply for a refund of those taxes in a |
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subsequent year, subject to the applicable limitation for each |
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year. The total amount that may be refunded to[:
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[(1)] an enterprise project under this section may not |
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exceed the amount determined by multiplying $250,000 by the number |
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of state fiscal years during which the enterprise project created |
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or retained one or more jobs for qualified employees[;
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[(2)
a double jumbo enterprise project under this
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section may not exceed the amount determined by multiplying
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$500,000 by the number of state fiscal years during which the double
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jumbo enterprise project created or retained one or more jobs for
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qualified employees; or
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[(3)
a triple jumbo enterprise project under this
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section may not exceed the amount determined by multiplying
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$750,000 by the number of state fiscal years during which the triple
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jumbo enterprise project created or retained one or more jobs for
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qualified employees]. |
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SECTION 12. The following laws are repealed: |
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(1) Section 2303.109(b), Government Code; |
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(2) Sections 2303.406(e) and (f), Government Code; |
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(3) Sections 2303.407(c) and (d), Government Code; |
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(4) Sections 2303.4071(a), (c), and (d), Government |
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Code; and |
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(5) Sections 151.429(e)(5) and (i), Tax Code. |
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SECTION 13. The changes in law made by this Act to Section |
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2303.402, Government Code, apply only to an application for a |
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designation of an enterprise project under the enterprise zone |
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program under Chapter 2303, Government Code, as amended by this |
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Act, filed on or after the effective date of this Act. An |
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application for designation of an enterprise project under the |
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enterprise zone program filed before the effective date of this Act |
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is governed by the law in effect on the date the application was |
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filed, and the former law is continued in effect for that purpose. |
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SECTION 14. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2011. |