Texas Senate Bill SB1841

Texas 2019 - 86th Regular

Caption

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

Impact

The legislation seeks to impact Texas state laws by refining the criteria that businesses must meet to be incentivized through the enterprise zone program. By establishing these stipulations, the bill aims to direct economic benefits specifically towards marginalized groups, encouraging more equitable job creation across the state. Consequently, the bill could enhance local economies by facilitating greater employment opportunities for those who traditionally face barriers in the job market.

Summary

Senate Bill 1841 aims to amend certain requirements for businesses hoping to qualify for designation under the enterprise zone program in Texas. This bill modifies the definitions of 'new permanent jobs' and 'retained jobs' to ensure clarity regarding the types of employment that must be created or retained by qualifying businesses. It specifies that at least 25% of new permanent jobs in an enterprise zone must be held by residents of that zone, economically disadvantaged individuals, veterans, or residents of federally designated opportunity zones. For businesses outside enterprise zones, this requirement increases to at least 35%.

Contention

Despite its intentions to boost economic growth and job creation, SB1841 may face scrutiny regarding its effectiveness and impact on businesses operating within or outside of designated enterprise zones. Critics may argue that the thresholds for job retention and creation could impose additional burdens on businesses, potentially discouraging them from applying for or participating in the program. The requirement to hire from specific demographics may also raise concerns about operational challenges for businesses striving to comply while addressing their workforce needs.