Texas Senate Bill SB1387

Texas 2017 - 85th Regular

Caption

Relating to certain requirements for designation as a qualified business under the enterprise zone program.

Impact

The adjustments proposed in SB1387 are projected to have a significant influence on how businesses qualify for state-sponsored incentives under the enterprise zone program. By emphasizing the necessity for full-time positions with bona fide employee benefits, the bill endeavors to ensure that designated businesses contribute positively to the local workforce. The impact of this legislation could lead to improved job stability and retention, ultimately fostering a more robust economic environment in designated enterprise zones across Texas.

Summary

SB1387 aims to amend the requirements for businesses seeking designation as a qualified business under Texas's enterprise zone program. The bill specifies that a new permanent job is defined as a position created by a qualified business that offers full-time employment with benefits and must exist or have existed for a designated period. This change seeks to clarify the criteria for businesses to receive state benefits and enhance job creation by encouraging companies to offer substantive employment opportunities.

Contention

While the bill seeks to strengthen the enterprise zone program, discussions may arise regarding the potential challenges small businesses could face when trying to meet the enhanced criteria. There may be concerns surrounding the interpretation of 'full-time position' and the definition of 'benefits,' which could inadvertently limit access to the program for smaller enterprises that cannot afford to provide extensive employment packages. Critics might argue that this strict interpretation could undermine the original intent of the program, which was to stimulate growth in economically distressed areas.