Texas 2013 - 83rd Regular

Texas House Bill HB3092 Compare Versions

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1	1	83R6410 CLG-F
2	2	By: Parker, et al. H.B. No. 3092
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to qualified manufacturing project zones and the creation
8	8	and funding of the Texas workforce investment program.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. The legislature finds that a qualified
11	11	manufacturing project, as defined by Section 399.001, Local
12	12	Government Code, as added by this Act, and the enhancement of
13	13	manufacturing workforce development serve the public purposes of:
14	14	(1) developing and diversifying employment in this
15	15	state;
16	16	(2) eliminating unemployment or underemployment in
17	17	this state; and
18	18	(3) developing and expanding commerce in this state.
19	19	SECTION 2. Subtitle C, Title 12, Local Government Code, is
20	20	amended by adding Chapter 399 to read as follows:
21	21	CHAPTER 399. QUALIFIED MANUFACTURING PROJECT ZONES
22	22	SUBCHAPTER A. GENERAL PROVISIONS
23	23	Sec. 399.001. DEFINITIONS. In this chapter:
24	24	(1) "Eligible manufacturing facility" means a
25	25	proposed new or expanded facility that, on the date of the
26	26	facility's designation as a qualified manufacturing project under
27	27	Section 399.051:
28	28	(A) is subject to an agreement entered into on or
29	29	after January 1, 2014, but before January 1, 2019, with a county,
30	30	municipality, or other taxing unit under Chapter 312, Tax Code, or
31	31	with a school district under Chapter 313, Tax Code, under which the
32	32	investment in the facility is at least $100 million;
33	33	(B) will be engaged in manufacturing, as that
34	34	term is defined by Section 151.318, Tax Code, the construction of
35	35	which begins on or after September 1, 2013;
36	36	(C) is forecasted to create at least 200 new
37	37	full-time jobs; and
38	38	(D) is owned by a person or entity that is:
39	39	(i) considering at least one alternative
40	40	site for the facility that is not located in this state; or
41	41	(ii) competing against similar projects
42	42	located outside this state for federal funds or financial support,
43	43	including loan guarantees, that would benefit the project.
44	44	(2) "New full-time job" means a newly created
45	45	permanent full-time job that:
46	46	(A) requires at least 1,600 hours of work a year;
47	47	(B) is not transferred from one area in this
48	48	state to another area in this state; and
49	49	(C) is not created to replace a previous
50	50	employee.
51	51	(3) "Qualified manufacturing project" means an
52	52	eligible manufacturing facility the owner of which has filed an
53	53	election under Section 399.051 to establish the facility's status
54	54	as a qualified manufacturing project.
55	55	SUBCHAPTER B. QUALIFIED MANUFACTURING PROJECT; DESIGNATION OF ZONE
56	56	Sec. 399.051. DESIGNATION OF ELIGIBLE MANUFACTURING
57	57	FACILITY AS QUALIFIED MANUFACTURING PROJECT; DATE OF
58	58	QUALIFICATION. An eligible manufacturing facility becomes a
59	59	qualified manufacturing project on the date the owner of the
60	60	facility files an election for automatic designation of the
61	61	facility as a qualified manufacturing project, without further
62	62	qualification, with the comptroller.
63	63	Sec. 399.052. ECONOMIC IMPACT STUDY. (a) Before applying
64	64	for designation of the applicable county as a qualified
65	65	manufacturing project zone under Section 399.054, the owner of a
66	66	qualified manufacturing project must conduct an economic impact
67	67	study of the county in which the project is located and submit the
68	68	study to the comptroller for certification not later than the 120th
69	69	day after the date the owner files an election to establish the
70	70	facility's status as a qualified manufacturing project under
71	71	Section 399.051.
72	72	(b) The economic impact study must provide an estimate of:
73	73	(1) the general economic impact likely to occur in the
74	74	county as a result of the qualified manufacturing project;
75	75	(2) the anticipated amount of increase in the tax
76	76	receipts to this state from the taxes imposed under Chapter 151, Tax
77	77	Code, that:
78	78	(A) will occur in the county during the period
79	79	the county is designated as a qualified manufacturing project zone;
80	80	and
81	81	(B) is directly attributable to the economic
82	82	impact from the design, construction, or operation of the qualified
83	83	manufacturing project;
84	84	(3) the projected number of new full-time jobs likely
85	85	to be available at the qualified manufacturing project; and
86	86	(4) the investment projected to be made at the
87	87	qualified manufacturing project.
88	88	Sec. 399.053. COMPTROLLER CERTIFICATION OF ECONOMIC IMPACT
89	89	STUDY. (a) Not later than the 30th day after receiving the
90	90	economic impact study from an owner of a qualified manufacturing
91	91	project, the comptroller shall certify the study if the comptroller
92	92	determines that the study accurately estimates the information
93	93	required by Sections 399.052(b)(2)-(4).
94	94	(b) If the comptroller determines that the economic impact
95	95	study does not accurately estimate the information required by
96	96	Sections 399.052(b)(2)-(4), the comptroller, not later than the
97	97	30th day after the date of receipt of the study, shall:
98	98	(1) notify the owner of the qualified manufacturing
99	99	project in writing of the comptroller's preliminary determination
100	100	and the basis for that determination; and
101	101	(2) provide the owner of the qualified manufacturing
102	102	project with an opportunity to respond or submit a new or amended
103	103	economic impact study to the comptroller.
104	104	(c) In evaluating a new or amended economic impact study
105	105	submitted by the owner of a qualified manufacturing project
106	106	following the comptroller's rejection of the owner's initial study,
107	107	the comptroller shall determine whether to accept or certify the
108	108	new or amended study not later than the 30th day after the date of
109	109	receipt of the new or amended study.
110	110	(d) If, not later than the 90th day after receiving notice
111	111	of the comptroller's rejection of the owner's initial economic
112	112	impact study, the owner of a qualified manufacturing project either
113	113	fails to receive the comptroller's certification of a new or
114	114	amended economic impact study the owner submitted within that
115	115	period or fails to submit a new or amended study to the comptroller,
116	116	the qualified manufacturing project loses its status as a qualified
117	117	manufacturing project at the end of the 90-day period.
118	118	Sec. 399.054. DESIGNATION OF QUALIFIED MANUFACTURING
119	119	PROJECT ZONE; APPLICATION. (a) The owner of a qualified
120	120	manufacturing project for which the comptroller has certified an
121	121	economic impact study in accordance with Section 399.053 may apply
122	122	to the comptroller for designation of the county in which the
123	123	project is located as a qualified manufacturing project zone. The
124	124	comptroller shall approve the application on a determination that
125	125	the qualified manufacturing project is the first facility in the
126	126	county to apply for the designation. The designation takes effect
127	127	on September 1 preceding the date of approval of an application for
128	128	designation of the county as a qualified manufacturing project
129	129	zone.
130	130	(b) Only one qualified manufacturing project that is in a
131	131	qualified manufacturing project zone may qualify for benefits under
132	132	this chapter at any one time.
133	133	(c) If the owner of more than one qualified manufacturing
134	134	project applies for zone designation from a single county within a
135	135	calendar month, the comptroller shall approve the qualified
136	136	application that the comptroller determines will have the greatest
137	137	economic impact on that county.
138	138	(d) A qualified manufacturing project zone designation
139	139	remains in effect until the expiration of any tax limitations,
140	140	credits, abatements, or other benefits under an agreement entered
141	141	into under Chapter 312 or 313, Tax Code, for the qualified
142	142	manufacturing project.
143	143	(e) The comptroller may charge an application fee in an
144	144	amount sufficient to cover the comptroller's costs in administering
145	145	this chapter.
146	146	Sec. 399.055. ANNUAL CERTIFICATION. (a) In this section,
147	147	"commercial operation," with respect to a facility, means that the
148	148	facility has started to operate for the facility's intended
149	149	purpose.
150	150	(b) To receive state benefits under this chapter, the owner
151	151	of a qualified manufacturing project in a qualified manufacturing
152	152	project zone must make the following applicable annual
153	153	certification to the comptroller, as of the last day of the state
154	154	fiscal year for each year of the zone's designation:
155	155	(1) if the qualified manufacturing project zone
156	156	designation has been in effect for three years or less and the
157	157	qualified manufacturing project has not started commercial
158	158	operation, the owner must certify the forecast of at least 200 new
159	159	full-time jobs for the year that the facility will begin commercial
160	160	operation;
161	161	(2) if the qualified manufacturing project zone
162	162	designation has been in effect for more than three years and the
163	163	qualified manufacturing project has not started commercial
164	164	operation, the owner must certify:
165	165	(A) the creation of at least 200 new full-time
166	166	jobs; or
167	167	(B) all of the following:
168	168	(i) the expenditure of at least $500
169	169	million on the new or expanded facility has occurred;
170	170	(ii) the year in which the facility will
171	171	begin commercial operation; and
172	172	(iii) the forecast of at least 200 new
173	173	full-time jobs that will be created not later than the eighth
174	174	anniversary of the date of the zone's designation; or
175	175	(3) if the qualified manufacturing project has started
176	176	commercial operation, the owner must certify the creation of at
177	177	least 200 new full-time jobs at the facility.
178	178	(c) If the owner of a qualified manufacturing project fails
179	179	to make the applicable certification required under Subsection (b):
180	180	(1) the owner forfeits the right to participate in the
181	181	Texas workforce investment program under Subchapter C;
182	182	(2) the owner shall pay to the applicable governmental
183	183	body within 60 calendar days the entire amount of all funds
184	184	previously remitted from the Texas workforce investment fund under
185	185	Subchapter C from any memorandum of understanding entered into by
186	186	the owner in connection with the project; and
187	187	(3) the qualified manufacturing project loses its
188	188	status as a qualified manufacturing project for purposes of this
189	189	chapter.
190	190	Sec. 399.056. STATE BENEFITS. The owner of a qualified
191	191	manufacturing project in a qualified manufacturing project zone is
192	192	eligible for participation in the Texas workforce investment
193	193	program as provided by Subchapter C.
194	194	Sec. 399.057. REPORT ON COMPLIANCE WITH JOB OR CAPITAL
195	195	INVESTMENT CERTIFICATION. (a) Before the beginning of each
196	196	regular session of the legislature, the comptroller shall submit to
197	197	the lieutenant governor, the speaker of the house of
198	198	representatives, and each other member of the legislature a report
199	199	assessing the progress of qualified manufacturing projects
200	200	receiving state benefits under this chapter. The report must be
201	201	based on data annually certified to the comptroller by each owner of
202	202	a qualified manufacturing project under this chapter and state for
203	203	each project:
204	204	(1) the number of new full-time jobs the owner of the
205	205	project committed to create;
206	206	(2) the number of new full-time jobs the owner of the
207	207	project created;
208	208	(3) the median wage of the new full-time jobs created;
209	209	(4) the amount of capital investment the owner of the
210	210	project committed to expend in the facility; and
211	211	(5) the amount of capital investment the owner
212	212	expended in the facility.
213	213	(b) The report may not include information that is made
214	214	confidential by law.
215	215	(c) The comptroller may require an owner of a qualified
216	216	manufacturing project to submit, on a form the comptroller
217	217	provides, information required to complete the report.
218	218	Sec. 399.058. COMPTROLLER DUTIES. The comptroller shall
219	219	adopt rules, forms, and fees necessary to perform the comptroller's
220	220	duties under this chapter.
221	221	SUBCHAPTER C. TEXAS WORKFORCE INVESTMENT FUND
222	222	Sec. 399.101. DEFINITIONS. In this subchapter:
223	223	(1) "Additional sales and use tax" means the total
224	224	amount of sales and use taxes collected under Chapter 151, Tax Code,
225	225	on purchases of all taxable items purchased within a qualified
226	226	manufacturing project zone for each state fiscal year for the
227	227	duration of the qualified manufacturing project zone designation
228	228	less the sales tax base, not otherwise due as a rebate or refund
229	229	under any other applicable law.
230	230	(2) "Fund" means the Texas workforce investment fund
231	231	established under Section 399.102.
232	232	(3) "Qualified educational participant" means any
233	233	public community college, public university, state licensed career
234	234	and vocational school, and public high school in good standing with
235	235	the state.
236	236	(4) "Sales tax base" means the amount of the sales and
237	237	use taxes collected under Chapter 151, Tax Code, on purchases of all
238	238	taxable items purchased within the boundaries of a qualified
239	239	manufacturing project zone for the state fiscal year ending before
240	240	the date the zone is designated.
241	241	Sec. 399.102. TEXAS WORKFORCE INVESTMENT FUND. (a) The
242	242	Texas workforce investment fund is a special fund in the state
243	243	treasury outside the general revenue fund to be administered by the
244	244	comptroller under this subchapter. Money in the fund may be used
245	245	for the workforce investment program established under Section
246	246	399.103 and for any other purpose of this subchapter.
247	247	(b) The fund consists of:
248	248	(1) the amounts deposited by the comptroller under
249	249	Section 399.104;
250	250	(2) refunds received by the comptroller under Section
251	251	399.107;
252	252	(3) interest earned on money credited to the fund; and
253	253	(4) money from gifts, grants, or donations to the
254	254	fund.
255	255	(c) Sections 403.095 and 404.071, Government Code, do not
256	256	apply to the fund.
257	257	Sec. 399.103. WORKFORCE INVESTMENT PROGRAM. (a) The
258	258	comptroller shall establish and implement the Texas workforce
259	259	investment program to remit money from the Texas workforce
260	260	investment fund to qualified educational participants to provide
261	261	job training and education for the current and future workforce
262	262	needs of qualified manufacturing projects participating in the
263	263	program.
264	264	(b) A qualified manufacturing project is eligible to
265	265	participate in the program to the extent that the fund has on hand
266	266	amounts deposited by the comptroller under Section 399.104 that are
267	267	directly attributable to the project.
268	268	(c) To receive funding under the program, a qualified
269	269	educational participant must enter into a memorandum of
270	270	understanding with the owner of a qualified manufacturing project
271	271	eligible to participate in the program. The memorandum of
272	272	understanding must outline specifically how money from the fund
273	273	will be used by the qualified educational participant to provide
274	274	the educational courses and workforce training needed by the
275	275	workforce of the qualified manufacturing project.
276	276	(d) The comptroller by rule shall adopt the form of the
277	277	memorandums of understanding entered into by owners of qualified
278	278	manufacturing projects and qualified educational participants
279	279	under this section.
280	280	Sec. 399.104. ALLOCATION OF TAXES. (a) Not later than
281	281	October 1 of each state fiscal year, the comptroller shall deposit
282	282	to the credit of the fund 25 percent of the additional sales and use
283	283	tax collected in the preceding state fiscal year that is directly
284	284	attributable, as determined by the comptroller in accordance with
285	285	procedures developed by the comptroller, to the economic activity
286	286	derived from the presence of each qualified manufacturing project,
287	287	if the owner of the project has made the applicable employment
288	288	certification to the comptroller required under Section 399.055.
289	289	(b) If the comptroller determines that none of the
290	290	additional sales and use tax for the preceding state fiscal year is
291	291	directly attributable to the economic activity derived from the
292	292	presence of the qualified manufacturing project, then no money that
293	293	is attributed to the qualified manufacturing project shall be
294	294	deposited into the fund and the comptroller shall notify the owner
295	295	of the project of the comptroller's determination and the basis for
296	296	that determination.
297	297	Sec. 399.105. PAYMENTS FROM FUND. (a) For the duration of
298	298	a qualified manufacturing project zone designation, but not to
299	299	exceed 10 years, the comptroller shall remit payments from the fund
300	300	to a qualified educational participant who enters into a memorandum
301	301	of understanding with the owner of a qualified manufacturing
302	302	project under Section 399.103.
303	303	(b) The amounts remitted from the fund on behalf of an
304	304	individual qualified manufacturing project may not exceed the
305	305	amount of additional sales and use tax deposited in the fund that is
306	306	directly attributable to the economic activity derived from the
307	307	project as determined by the comptroller under Section 399.104.
308	308	(c) The total amount of money deposited into the fund that
309	309	will be made available to a qualified manufacturing project for use
310	310	as prescribed under this subchapter may not exceed an amount equal
311	311	to the lesser of $50 million or five percent of the qualified
312	312	manufacturing project's investments in the facility under
313	313	Subchapter B.
314	314	Sec. 399.106. USE OF FUNDS. (a) After designation of the
315	315	county in which a qualified manufacturing project is located as a
316	316	qualified manufacturing project zone, money may be remitted from
317	317	the fund and used to pay for or to refund workforce training
318	318	expenses incurred by a qualified educational participant who has
319	319	entered into a memorandum of understanding with the owner of the
320	320	qualified manufacturing project.
321	321	(b) Money from the fund may not be allocated under this
322	322	subchapter for the training and workforce development of an
323	323	employee or future employee of a qualified manufacturing project
324	324	working in a "bona fide executive, administrative, or professional
325	325	capacity," as that phrase is used for purposes of establishing an
326	326	exemption to the overtime provisions of the federal Fair Labor
327	327	Standards Act of 1938 (29 U.S.C. Section 201 et seq.).
328	328	Sec. 399.107. MONITORING OF PROJECT. If the owner of a
329	329	qualified manufacturing project fails to make the applicable
330	330	certification required by Section 399.055 or if the comptroller
331	331	elects to audit the certification and determines that the qualified
332	332	manufacturing project has started commercial operation and failed
333	333	to meet the job creation requirement, the owner forfeits the right
334	334	to enter into memorandums of understanding with qualified
335	335	educational participants under this subchapter. The owner shall
336	336	pay to the comptroller the entire amount of all funds previously
337	337	allocated from the fund through memorandums of understanding
338	338	entered into by the owner under Section 399.103. Payment of a
339	339	refund under this section shall be made not later than the 60th day
340	340	after, as applicable, the date the certification is due or the date
341	341	the comptroller completes the audit.
342	342	Sec. 399.108. UNEXPENDED FUNDS; NOTICE. (a) For the
343	343	duration of a qualified manufacturing project zone's designation,
344	344	the comptroller periodically shall notify the owner of a qualified
345	345	manufacturing project in writing of any money in the fund
346	346	attributable to the project that currently remains unexpended but
347	347	may be spent by the owner by participating in the workforce
348	348	investment program.
349	349	(b) Any money in the fund that remains unexpended by a
350	350	project when its designation as a qualified manufacturing project
351	351	ends shall be deposited by the comptroller to the credit of the
352	352	general revenue fund.
353	353	SECTION 3. This Act takes effect September 1, 2013.