Texas 2009 - 81st Regular

Texas House Bill HB4525 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Parker, et al. (Senate Sponsor - Ellis) H.B. No. 4525
2	2	(In the Senate - Received from the House May 8, 2009;
3	3	May 8, 2009, read first time and referred to Committee on Economic
4	4	Development; May 26, 2009, reported adversely, with favorable
5	5	Committee Substitute by the following vote: Yeas 4, Nays 1;
6	6	May 26, 2009, sent to printer.)
7	7	COMMITTEE SUBSTITUTE FOR H.B. No. 4525 By: Eltife
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to qualified manufacturing project zones.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. The Legislature of the State of Texas finds that
15	15	a qualified manufacturing project, as defined in this Act, and the
16	16	enhancement of manufacturing workforce development serve the
17	17	public purposes of development and diversification of the
18	18	employment of this state, elimination of unemployment or
19	19	underemployment in this state, and development or expansion of
20	20	commerce in this state.
21	21	SECTION 2. Subtitle C, Title 12, Local Government Code, is
22	22	amended by adding Chapter 399 to read as follows:
23	23	CHAPTER 399. QUALIFIED MANUFACTURING PROJECT ZONES
24	24	Sec. 399.001. DEFINITIONS. In this chapter:
25	25	(1) "Qualified manufacturing project":
26	26	(A) means a proposed new or expanded facility
27	27	that, on the date of qualification under Section 399.002:
28	28	(i) is not subject to either an agreement
29	29	with a county or other taxing unit under Chapter 312, Tax Code, or
30	30	with a school district under Chapter 313, Tax Code, entered into on
31	31	or before the effective date of this Act; and
32	32	(ii) is subject to an agreement entered
33	33	into after the effective date of this Act, but before September 1,
34	34	2013, with a county or other taxing unit under Chapter 312, Tax
35	35	Code, or with a school district under Chapter 313, Tax Code, under
36	36	which the investment in the facility:
37	37	(a) is at least $200 million; or
38	38	(b) is at least $100 million if the
39	39	facility is related to:
40	40	(1) renewable energy generation,
41	41	including solar, wind, biomass, geothermal, tidal, or small
42	42	hydroelectric generation;
43	43	(2) advanced battery technology
44	44	or other advanced energy storage technology; or
45	45	(3) waste recycling;
46	46	(iii) will be engaged in manufacturing, as
47	47	that term is defined by Section 151.318, Tax Code, the construction
48	48	of which begins on or after September 1, 2009;
49	49	(iv) is forecasted to create at least 300
50	50	full-time equivalent employment positions; and
51	51	(v) the owner of which is:
52	52	(a) considering at least one
53	53	alternative site for the facility that is not located in this state;
54	54	or
55	55	(b) competing against similar
56	56	projects located outside this state for federal funds or financial
57	57	support, including loan guarantees, that would benefit the project;
58	58	and
59	59	(B) does not include a proposed new or expanded
60	60	facility that produces a stream of carbon dioxide if the facility
61	61	involves the generation of electricity or the creation of liquid
62	62	fuels outside of the existing fuel production infrastructure while
63	63	co-generating electricity, other than a facility that generates
64	64	electricity from biomass or biofuels, unless the facility captures
65	65	and sequesters, by geologic storage or other means, not less than 60
66	66	percent of the carbon dioxide from the facility's emissions stream.
67	67	(2) "Waste recycling" means the process of extracting
68	68	resources or value from waste by recovering or reusing the
69	69	materials, including the collection and reuse of everyday waste
70	70	materials.
71	71	Sec. 399.002. DATE OF QUALIFICATION. A proposed facility
72	72	becomes a qualified manufacturing project on the date the owner of
73	73	the facility files an election to become a qualified manufacturing
74	74	project with the comptroller.
75	75	Sec. 399.003. ECONOMIC IMPACT STUDY. (a) The owner of a
76	76	qualified manufacturing project must conduct an economic impact
77	77	study of the county in which the qualified manufacturing project is
78	78	located and submit the study to the comptroller for certification
79	79	not later than the 120th day after the date the owner files an
80	80	election for that designation under Section 399.002.
81	81	(b) The economic impact study must provide an estimate of:
82	82	(1) the general economic impact likely to occur in the
83	83	county as a result of the qualified manufacturing project;
84	84	(2) the anticipated amount of increase in the tax
85	85	receipts to this state from the taxes imposed under Chapter 151, Tax
86	86	Code, that:
87	87	(A) will occur in the county during the period
88	88	that the qualified manufacturing project zone is designated; and
89	89	(B) is directly attributable to the economic
90	90	impact from the design, construction, or operation of the qualified
91	91	manufacturing project;
92	92	(3) the projected number of full-time equivalent
93	93	employment positions likely to be available at the qualified
94	94	manufacturing project; and
95	95	(4) the investment projected to be made at the
96	96	qualified manufacturing project.
97	97	Sec. 399.004. COMPTROLLER CERTIFICATION OF ECONOMIC IMPACT
98	98	STUDY. (a) Not later than the 30th day after receiving the
99	99	economic impact study from an owner of a qualified manufacturing
100	100	project, the comptroller shall certify the study if the comptroller
101	101	determines that:
102	102	(1) the study accurately estimates the information
103	103	required by Sections 399.003(b)(2)-(4); or
104	104	(2) the study:
105	105	(A) was conducted by an independent third party;
106	106	(B) was conducted using generally accepted
107	107	economic impact forecasting methods to estimate the information
108	108	required by Section 399.003(b); and
109	109	(C) contains the information required by Section
110	110	399.003(b).
111	111	(b) If the comptroller determines that the economic impact
112	112	study submitted by the owner of the qualified manufacturing project
113	113	does not meet the requirements of Subsection (a)(1) or (2), as
114	114	applicable, the comptroller, not later than the 30th day after the
115	115	date of receiving the study, shall:
116	116	(1) submit a preliminary determination to the owner of
117	117	the qualified manufacturing project; and
118	118	(2) provide the owner of the qualified manufacturing
119	119	project with an opportunity to respond or submit a new or amended
120	120	economic impact study to the comptroller.
121	121	Sec. 399.005. QUALIFIED MANUFACTURING PROJECT ZONE. (a)
122	122	The owner of a qualified manufacturing project for which the
123	123	comptroller has certified an economic impact study in accordance
124	124	with Section 399.004 may apply to the comptroller for designation
125	125	of the county in which the project is located as a qualified
126	126	manufacturing project zone. Subject to Subsections (b) and (c),
127	127	the comptroller shall approve the application on a determination
128	128	that the qualified manufacturing project is the first facility in
129	129	the county to apply for the designation. The designation takes
130	130	effect on September 1 after the date of approval of an application
131	131	for designation of the county as a qualified manufacturing project
132	132	zone for the project.
133	133	(b) Only one qualified manufacturing project that is in a
134	134	qualified manufacturing project zone may qualify for benefits under
135	135	this chapter at any one time.
136	136	(c) If more than one qualified manufacturing project
137	137	applies for zone designation from a single county within a calendar
138	138	month, the comptroller shall approve the qualified application with
139	139	the most investment in the proposed new or expanded facility, as
140	140	determined by the economic impact study certified under Section
141	141	399.004.
142	142	(d) A qualified manufacturing project zone designation for
143	143	a qualified manufacturing project remains in effect until the
144	144	expiration of any tax limitations, credits, abatements, or other
145	145	benefits under an agreement entered into under Chapter 312 or 313,
146	146	Tax Code, for the qualified manufacturing project.
147	147	Sec. 399.006. ANNUAL CERTIFICATION. (a) To receive state
148	148	benefits under this chapter, the owner of a qualified manufacturing
149	149	project in a qualified manufacturing project zone must submit the
150	150	report required by Subsection (b) and make the following applicable
151	151	annual certification to the comptroller, as of the last day of the
152	152	state fiscal year for each year of the zone's designation:
153	153	(1) if the qualified manufacturing project zone
154	154	designation has been in effect for three years or less and the
155	155	qualified manufacturing project has not commenced commercial
156	156	operation, the owner must certify the forecast of at least 300
157	157	full-time equivalent employment positions for the year that the
158	158	facility will begin commercial operation;
159	159	(2) if the qualified manufacturing project zone
160	160	designation has been in effect for more than three years and the
161	161	qualified manufacturing project has not started commercial
162	162	operation, the owner must certify:
163	163	(A) the creation of at least 300 full-time
164	164	equivalent employment positions; or
165	165	(B) all of the following:
166	166	(i) the expenditure of at least $1 billion
167	167	on the new or expanded facility has occurred;
168	168	(ii) the year in which the facility will
169	169	begin commercial operation; and
170	170	(iii) the forecast of at least 300
171	171	full-time equivalent employment positions that will be created not
172	172	later than the eighth anniversary of the date of the zone's
173	173	designation; or
174	174	(3) if the qualified manufacturing project has started
175	175	commercial operation, the owner must certify the creation of at
176	176	least 300 full-time equivalent employment positions at the
177	177	facility.
178	178	(b) At the time the applicable certification required under
179	179	Subsection (a) is submitted, the owner of a qualified manufacturing
180	180	project shall also submit an annual report to the comptroller that
181	181	contains a summary of wages, salaries, and health care benefits
182	182	associated with the jobs created by the qualified manufacturing
183	183	project.
184	184	(c) If the owner of a qualified manufacturing project fails
185	185	to make the applicable certification required under Subsection (a)
186	186	and submit the report required by Subsection (b), the owner
187	187	forfeits the right to receive future state benefits under this
188	188	chapter and shall pay to the comptroller, not later than the 60th
189	189	calendar day after the date the certification is due, the entire
190	190	amount of all refunds previously received as provided by this
191	191	chapter.
192	192	(d) For purposes of this section, "commercial operation,"
193	193	with respect to a facility, means that the facility has begun to
194	194	operate for the facility's intended purpose.
195	195	Sec. 399.007. STATE BENEFITS. Subject to Section 399.006,
196	196	the owner of a qualified manufacturing project in a qualified
197	197	manufacturing project zone is eligible for a refund of state sales
198	198	and use taxes as provided by Section 151.4292, Tax Code.
199	199	Sec. 399.008. COMPTROLLER DUTIES. The comptroller shall
200	200	adopt rules and forms necessary to perform the comptroller's duties
201	201	under this chapter.
202	202	SECTION 3. Subchapter I, Chapter 151, Tax Code, is amended
203	203	by adding Section 151.4292 to read as follows:
204	204	Sec. 151.4292. TAX REFUNDS FOR QUALIFIED MANUFACTURING
205	205	PROJECTS. (a) In this section:
206	206	(1) "Additional sales and use tax" means the total
207	207	amount of sales and use taxes collected under this chapter on
208	208	purchases of all taxable items purchased within a qualified
209	209	manufacturing project zone for each state fiscal year for the
210	210	duration of the qualified manufacturing project zone designation
211	211	less the sales tax base, not otherwise due as a rebate or refund
212	212	under any other applicable law.
213	213	(2) "Manufacturing workforce development" means,
214	214	solely for purposes of this section, any expenditures incurred in
215	215	the state by the owner, or a contractor or subcontractor of the
216	216	owner, of a qualified manufacturing project for recruiting or
217	217	training present, prospective, or potential employees for jobs in
218	218	this state presently available or expected to be available for the
219	219	planning, designing, construction, fabrication, or operation of a
220	220	qualified manufacturing project, and the salaries, wages, and
221	221	benefits of those employees through the first two years of
222	222	commercial operation of the qualified manufacturing project. The
223	223	term:
224	224	(A) does not include any expenditures incurred
225	225	for recruiting or training, or the salaries, wages, and benefits of
226	226	persons employed in a "bona fide executive, administrative, or
227	227	professional capacity," as that phrase is used for purposes of
228	228	establishing an exemption to the overtime provisions of the federal
229	229	Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.);
230	230	and
231	231	(B) notwithstanding Paragraph (A), includes any
232	232	expenditures incurred for recruiting or training, or the salaries,
233	233	wages, and benefits of operating staff, maintenance staff, and
234	234	engineering staff.
235	235	(3) "Qualified manufacturing project" has the meaning
236	236	assigned that term by Section 399.001, Local Government Code.
237	237	(4) "Sales tax base" means the amount of the sales and
238	238	use taxes collected under this chapter on purchases of all taxable
239	239	items purchased within the boundaries of a qualified manufacturing
240	240	project zone for the state fiscal year ending before the date the
241	241	zone is designated.
242	242	(b) The owner of a qualified manufacturing project in a
243	243	qualified manufacturing project zone is entitled to receive a
244	244	payment of a refund of 50 percent of the additional sales and use
245	245	tax for the preceding state fiscal year provided the owner has made
246	246	the applicable employment certification to the comptroller
247	247	required under Section 399.006, Local Government Code, and submits
248	248	the report required under that section. A refund may not be made
249	249	under this subsection for any sales and use taxes paid before the
250	250	date an application for designation of a qualified manufacturing
251	251	project zone is approved for the project. For the duration of a
252	252	qualified manufacturing project zone designation for a qualified
253	253	manufacturing project, but not to exceed 10 years, the comptroller
254	254	shall pay the refund not later than the 60th day after the later of
255	255	the date of receipt of the employment certification or the last day
256	256	of the state fiscal year.
257	257	(c) The total amount of refunds that a qualified
258	258	manufacturing project may receive over the course of the
259	259	designation of the county in which it is located as a qualified
260	260	manufacturing project zone may not exceed an amount equal to the
261	261	lesser of $50 million or five percent of the qualified
262	262	manufacturing project's investments in the facility under Chapter
263	263	399, Local Government Code.
264	264	(d) Subject to Subsection (f), a refund received under this
265	265	section shall be used to pay for or to refund eligible expenses
266	266	incurred before or after designation of the county in which the
267	267	project is located as a qualified manufacturing project zone for
268	268	manufacturing workforce development for the project.
269	269	(e) If the owner of a qualified manufacturing project fails
270	270	to make the applicable certification and submit the report required
271	271	by Section 399.006, Local Government Code, the owner forfeits the
272	272	right to receive all future benefits under this section and shall
273	273	pay to the comptroller, not later than the 60th calendar day after
274	274	the date the certification is due, the entire amount of all refunds
275	275	previously received under this section.
276	276	(f) At least 10 percent of the amount received as a refund
277	277	under this section in each state fiscal year must be expended for
278	278	job skills training programs that serve persons who are unemployed
279	279	or whose incomes are at or below 200 percent of the federal poverty
280	280	level.
281	281	SECTION 4. This Act takes effect immediately if it receives
282	282	a vote of two-thirds of all the members elected to each house, as
283	283	provided by Section 39, Article III, Texas Constitution. If this
284	284	Act does not receive the vote necessary for immediate effect, this
285	285	Act takes effect September 1, 2009.
286	286	* * * * *