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A BILL TO BE ENTITLED
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AN ACT
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relating to eligibility requirements to receive a grant from the |
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Texas Enterprise Fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 481.078(f-1), Government Code, is |
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amended to read as follows: |
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(f-1) A grant agreement must contain a provision: |
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(1) requiring the creation of a minimum number of jobs |
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in this state in accordance with Section 481.0785; [and] |
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(2) specifying the date by which the recipient intends |
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to create those jobs; and |
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(3) requiring the recipient to make a minimum |
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investment in the purposes for which the grant is intended in |
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accordance with Section 481.0785. |
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SECTION 2. Subchapter E, Chapter 481, Government Code, is |
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amended by adding Section 481.0785 to read as follows: |
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Sec. 481.0785. REQUIRED JOBS AND INVESTMENT. (a) In |
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addition to the eligibility requirements under Section 481.078, to |
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be eligible to enter into a grant agreement under that section, an |
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entity must agree to: |
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(1) if the grant awarded is to be used in a county with |
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a population of at least 750,000: |
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(A) create at least 75 jobs by the end of the |
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first year after the creation of the grant agreement and |
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demonstrate an average of at least that number of jobs during each |
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following year until the date the grant agreement expires; and |
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(B) make an investment in the purpose for which |
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the grant is awarded in an amount of at least $200 million by the end |
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of the first year after the creation of the grant agreement; |
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(2) if the grant awarded is to be used in a county with |
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a population of at least 250,000 but less than 750,000: |
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(A) create at least 50 jobs by the end of the |
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first year after the creation of the grant agreement and |
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demonstrate an average of at least that number of jobs during each |
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following year until the date the grant agreement expires; and |
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(B) make an investment in the purpose for which |
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the grant is awarded in an amount of at least $100 million by the end |
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of the first year after the creation of the grant agreement; |
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(3) if the grant awarded is to be used in a county with |
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a population of at least 100,000 but less than 250,000: |
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(A) create at least 35 jobs by the end of the |
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first year after the creation of the grant agreement and |
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demonstrate an average of at least that number of jobs during each |
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following year until the date the grant agreement expires; and |
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(B) make an investment in the purpose for which |
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the grant is awarded in an amount of at least $50 million by the end |
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of the first year after the creation of the grant agreement; or |
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(4) if the grant awarded is to be used in a county with |
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a population of less than 100,000: |
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(A) create at least 10 jobs by the end of the |
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first year after the creation of the grant agreement and |
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demonstrate an average of at least that number of jobs during each |
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following year until the date the grant agreement expires; and |
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(B) make an investment in the purpose for which |
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the grant is awarded in an amount of at least $20 million by the end |
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of the first year after the creation of the grant agreement. |
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(b) For purposes of Subsection (a), each job created in |
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connection with a grant agreement: |
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(1) must be a new permanent full-time job in this |
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state, other than a construction job, that requires a total of at |
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least 1,600 hours of work a year in connection with the purpose for |
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which the grant is awarded; |
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(2) must be: |
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(A) maintained in the usual course and scope of |
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the grant recipient's business, which may be performed by an |
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individual who is a trainee under the Texans Work program |
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established under Chapter 308, Labor Code; or |
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(B) performed by: |
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(i) an independent contractor, as that term |
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is defined by Section 406.121, Labor Code; and |
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(ii) the independent contractor's employees |
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at the site of the project; and |
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(3) may not be transferred by the grant recipient from |
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an existing facility or location in this state or otherwise created |
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to replace an existing job, unless the grant recipient fills the |
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vacancy caused by the transfer. |
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(c) For purposes of Subsection (a), a grant recipient may |
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demonstrate that the recipient has met the applicable minimum |
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investment requirement by any reasonable means that demonstrate |
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that investment made in the purposes for which the grant is awarded |
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is equal to or greater than the minimum investment requirement |
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applicable to that purpose. |
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(d) If grant money awarded is used in more than one county, |
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the jobs and investment requirements applicable to the grant |
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recipient under this section are determined using the jobs and |
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investment requirements applicable to the county with the smallest |
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population in which any part of the purposes for which the grant is |
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awarded is located. |
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(e) The governor may adopt rules necessary to interpret and |
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administer this section, including rules regarding: |
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(1) the manner for determining: |
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(A) which jobs and investment requirements |
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prescribed by Subsection (a) apply to the purposes for which a grant |
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is awarded; and |
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(B) the circumstances under which a trainee under |
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the Texans Work program established under Chapter 308, Labor Code, |
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may be considered a full-time employee for purposes of this |
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section; and |
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(2) the method by which a grant recipient must |
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demonstrate an average of at least the number of required jobs for |
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purposes of satisfying the jobs requirement prescribed by |
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Subsection (a). |
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SECTION 3. The change in law made by this Act applies only |
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to a grant agreement entered into on or after the effective date of |
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this Act. A grant agreement entered into before the effective date |
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of this Act is governed by the law in effect on the date the grant |
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agreement was entered into, and the former law is continued in |
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effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2025. |