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A BILL TO BE ENTITLED
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AN ACT
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relating to certain requirements for a qualified business or |
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enterprise project under the enterprise zone program and to the |
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definition of qualified employee for purposes of the 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; |
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(B) receives wages from the qualified business |
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from which employment taxes are deducted; and |
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(C) performs at least 50 percent of the person's |
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service for the business at the qualified business site, performs |
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services for the business pursuant to a telecommute arrangement for |
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the qualified business site and resides in this state, or if the |
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person engages in the transportation of goods or services, the |
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person reports to the qualified business site and resides within 50 |
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miles of the qualified business site. |
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SECTION 2. Section 2303.401, Government Code, is amended to |
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read as follows: |
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Sec. 2303.401. DEFINITIONS. In this subchapter: |
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(1) "New permanent job" means any [a] new employment |
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position, regardless of job function, that: |
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(A) is created by a qualified business as |
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described by Section 2303.402 at the qualified business site not |
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earlier than the 90th day before the date the business's project or |
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activity is designated as an enterprise project under this chapter; |
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(B) will provide or has provided for the duration |
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of the project's designation period at least 1,820 hours of |
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employment a year to a qualified employee; and |
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(C) will exist or has existed at the qualified |
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business site for the longer of: |
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(i) the duration of the project's |
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designation period; or |
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(ii) three years after the date on which a |
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state benefit is received as authorized by this chapter. |
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(2) "Retained job" means any employment position, |
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regardless of job function, [a job] that: |
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(A) existed with a qualified business on the 91st |
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day before the date the business's project or activity is |
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designated as an enterprise project; |
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(B) has provided and will continue to provide |
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employment to a qualified employee of at least 1,820 hours |
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annually; and |
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(C) will be or has been an employment position |
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for the longer of: |
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(i) the duration of the project's |
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designation period; or |
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(ii) three years after the expiration date |
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of the claim period for receipt of a state benefit authorized by |
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this chapter. |
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SECTION 3. 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 in the enterprise zone are held by: |
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(A) residents of any enterprise zone in this |
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state; |
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(B) economically disadvantaged individuals; [or] |
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(C) veterans; [or] |
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(D) residents of an area in this state designated |
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as a qualified opportunity zone under Section 1400Z-1, Internal |
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Revenue Code of 1986; or |
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(E) individuals who are members of a minority |
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group as defined by Section 2306.6734(c); 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 at the qualified business site are held by: |
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(A) residents of any enterprise zone in this |
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state; |
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(B) individuals who are economically |
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disadvantaged; [or] |
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(C) veterans; |
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(D) residents of an area in this state designated |
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as a qualified opportunity zone under Section 1400Z-1, Internal |
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Revenue Code of 1986; or |
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(E) individuals who are members of a minority |
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group as defined by Section 2306.6734(c). |
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SECTION 4. Subchapter F, Chapter 2303, Government Code, is |
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amended by adding Section 2303.409 to read as follows: |
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Sec. 2303.409. TEMPORARY WAIVER OF EMPLOYMENT HOURS |
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REQUIREMENT. (a) Notwithstanding any other provision of law, the |
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minimum requirement of annual employment hours for a new permanent |
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job or a retained job as defined by Section 2303.401 is waived for |
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any annual certification or retention period that includes any |
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period beginning March 1, 2020, and ending December 31, 2021. |
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(b) This section expires December 31, 2022. |
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SECTION 5. Section 151.429, Tax Code, is amended by adding |
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Subsection (g-1) to read as follows: |
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(g-1) Notwithstanding Subsection (g), the level of |
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employment of qualified employees required to be maintained by an |
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enterprise project is waived for any annual period that includes |
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any period beginning March 1, 2020, and ending December 31, 2021. |
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This subsection expires December 31, 2022. |
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SECTION 6. (a) Except as provided by Subsection (b) of this |
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section, the changes in law made by this Act apply only to an |
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application for an enterprise project designation or for a refund |
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of state taxes as provided by the enterprise zone program |
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established under Chapter 2303, Government Code, as amended by this |
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Act, that is submitted on or after the effective date of this Act. |
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An application for an enterprise project designation or for a state |
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tax refund as provided by the enterprise zone program that is |
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submitted before the effective date of this Act is governed by the |
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law in effect on the date the application was submitted, and the |
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former law is continued in effect for that purpose. |
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(b) Section 2303.409, Government Code, as added by this Act, |
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and Section 151.429(g-1), Tax Code, as added by this Act, apply to |
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an enterprise project that is under audit or subject to audit by the |
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comptroller of public accounts on or after the effective date of |
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this Act. |
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SECTION 7. 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, 2021. |