83R6410 CLG-F
By: Parker, et al. H.B. No. 3092
A BILL TO BE ENTITLED
AN ACT
relating to qualified manufacturing project zones and the creation
and funding of the Texas workforce investment program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The legislature finds that a qualified
manufacturing project, as defined by Section 399.001, Local
Government Code, as added by this Act, and the enhancement of
manufacturing workforce development serve the public purposes of:
(1) developing and diversifying employment in this
state;
(2) eliminating unemployment or underemployment in
this state; and
(3) developing and expanding commerce in this state.
SECTION 2. Subtitle C, Title 12, Local Government Code, is
amended by adding Chapter 399 to read as follows:
CHAPTER 399. QUALIFIED MANUFACTURING PROJECT ZONES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 399.001. DEFINITIONS. In this chapter:
(1) "Eligible manufacturing facility" means a
proposed new or expanded facility that, on the date of the
facility's designation as a qualified manufacturing project under
Section 399.051:
(A) is subject to an agreement entered into on or
after January 1, 2014, but before January 1, 2019, with a county,
municipality, or other taxing unit under Chapter 312, Tax Code, or
with a school district under Chapter 313, Tax Code, under which the
investment in the facility is at least $100 million;
(B) will be engaged in manufacturing, as that
term is defined by Section 151.318, Tax Code, the construction of
which begins on or after September 1, 2013;
(C) is forecasted to create at least 200 new
full-time jobs; and
(D) is owned by a person or entity that is:
(i) considering at least one alternative
site for the facility that is not located in this state; or
(ii) competing against similar projects
located outside this state for federal funds or financial support,
including loan guarantees, that would benefit the project.
(2) "New full-time job" means a newly created
permanent full-time job that:
(A) requires at least 1,600 hours of work a year;
(B) is not transferred from one area in this
state to another area in this state; and
(C) is not created to replace a previous
employee.
(3) "Qualified manufacturing project" means an
eligible manufacturing facility the owner of which has filed an
election under Section 399.051 to establish the facility's status
as a qualified manufacturing project.
SUBCHAPTER B. QUALIFIED MANUFACTURING PROJECT; DESIGNATION OF ZONE
Sec. 399.051. DESIGNATION OF ELIGIBLE MANUFACTURING
FACILITY AS QUALIFIED MANUFACTURING PROJECT; DATE OF
QUALIFICATION. An eligible manufacturing facility becomes a
qualified manufacturing project on the date the owner of the
facility files an election for automatic designation of the
facility as a qualified manufacturing project, without further
qualification, with the comptroller.
Sec. 399.052. ECONOMIC IMPACT STUDY. (a) Before applying
for designation of the applicable county as a qualified
manufacturing project zone under Section 399.054, the owner of a
qualified manufacturing project must conduct an economic impact
study of the county in which the project is located and submit the
study to the comptroller for certification not later than the 120th
day after the date the owner files an election to establish the
facility's status as a qualified manufacturing project under
Section 399.051.
(b) The economic impact study must provide an estimate of:
(1) the general economic impact likely to occur in the
county as a result of the qualified manufacturing project;
(2) the anticipated amount of increase in the tax
receipts to this state from the taxes imposed under Chapter 151, Tax
Code, that:
(A) will occur in the county during the period
the county is designated as a qualified manufacturing project zone;
and
(B) is directly attributable to the economic
impact from the design, construction, or operation of the qualified
manufacturing project;
(3) the projected number of new full-time jobs likely
to be available at the qualified manufacturing project; and
(4) the investment projected to be made at the
qualified manufacturing project.
Sec. 399.053. COMPTROLLER CERTIFICATION OF ECONOMIC IMPACT
STUDY. (a) Not later than the 30th day after receiving the
economic impact study from an owner of a qualified manufacturing
project, the comptroller shall certify the study if the comptroller
determines that the study accurately estimates the information
required by Sections 399.052(b)(2)-(4).
(b) If the comptroller determines that the economic impact
study does not accurately estimate the information required by
Sections 399.052(b)(2)-(4), the comptroller, not later than the
30th day after the date of receipt of the study, shall:
(1) notify the owner of the qualified manufacturing
project in writing of the comptroller's preliminary determination
and the basis for that determination; and
(2) provide the owner of the qualified manufacturing
project with an opportunity to respond or submit a new or amended
economic impact study to the comptroller.
(c) In evaluating a new or amended economic impact study
submitted by the owner of a qualified manufacturing project
following the comptroller's rejection of the owner's initial study,
the comptroller shall determine whether to accept or certify the
new or amended study not later than the 30th day after the date of
receipt of the new or amended study.
(d) If, not later than the 90th day after receiving notice
of the comptroller's rejection of the owner's initial economic
impact study, the owner of a qualified manufacturing project either
fails to receive the comptroller's certification of a new or
amended economic impact study the owner submitted within that
period or fails to submit a new or amended study to the comptroller,
the qualified manufacturing project loses its status as a qualified
manufacturing project at the end of the 90-day period.
Sec. 399.054. DESIGNATION OF QUALIFIED MANUFACTURING
PROJECT ZONE; APPLICATION. (a) The owner of a qualified
manufacturing project for which the comptroller has certified an
economic impact study in accordance with Section 399.053 may apply
to the comptroller for designation of the county in which the
project is located as a qualified manufacturing project zone. The
comptroller shall approve the application on a determination that
the qualified manufacturing project is the first facility in the
county to apply for the designation. The designation takes effect
on September 1 preceding the date of approval of an application for
designation of the county as a qualified manufacturing project
zone.
(b) Only one qualified manufacturing project that is in a
qualified manufacturing project zone may qualify for benefits under
this chapter at any one time.
(c) If the owner of more than one qualified manufacturing
project applies for zone designation from a single county within a
calendar month, the comptroller shall approve the qualified
application that the comptroller determines will have the greatest
economic impact on that county.
(d) A qualified manufacturing project zone designation
remains in effect until the expiration of any tax limitations,
credits, abatements, or other benefits under an agreement entered
into under Chapter 312 or 313, Tax Code, for the qualified
manufacturing project.
(e) The comptroller may charge an application fee in an
amount sufficient to cover the comptroller's costs in administering
this chapter.
Sec. 399.055. ANNUAL CERTIFICATION. (a) In this section,
"commercial operation," with respect to a facility, means that the
facility has started to operate for the facility's intended
purpose.
(b) To receive state benefits under this chapter, the owner
of a qualified manufacturing project in a qualified manufacturing
project zone must make the following applicable annual
certification to the comptroller, as of the last day of the state
fiscal year for each year of the zone's designation:
(1) if the qualified manufacturing project zone
designation has been in effect for three years or less and the
qualified manufacturing project has not started commercial
operation, the owner must certify the forecast of at least 200 new
full-time jobs for the year that the facility will begin commercial
operation;
(2) if the qualified manufacturing project zone
designation has been in effect for more than three years and the
qualified manufacturing project has not started commercial
operation, the owner must certify:
(A) the creation of at least 200 new full-time
jobs; or
(B) all of the following:
(i) the expenditure of at least $500
million on the new or expanded facility has occurred;
(ii) the year in which the facility will
begin commercial operation; and
(iii) the forecast of at least 200 new
full-time jobs that will be created not later than the eighth
anniversary of the date of the zone's designation; or
(3) if the qualified manufacturing project has started
commercial operation, the owner must certify the creation of at
least 200 new full-time jobs at the facility.
(c) If the owner of a qualified manufacturing project fails
to make the applicable certification required under Subsection (b):
(1) the owner forfeits the right to participate in the
Texas workforce investment program under Subchapter C;
(2) the owner shall pay to the applicable governmental
body within 60 calendar days the entire amount of all funds
previously remitted from the Texas workforce investment fund under
Subchapter C from any memorandum of understanding entered into by
the owner in connection with the project; and
(3) the qualified manufacturing project loses its
status as a qualified manufacturing project for purposes of this
chapter.
Sec. 399.056. STATE BENEFITS. The owner of a qualified
manufacturing project in a qualified manufacturing project zone is
eligible for participation in the Texas workforce investment
program as provided by Subchapter C.
Sec. 399.057. REPORT ON COMPLIANCE WITH JOB OR CAPITAL
INVESTMENT CERTIFICATION. (a) Before the beginning of each
regular session of the legislature, the comptroller shall submit to
the lieutenant governor, the speaker of the house of
representatives, and each other member of the legislature a report
assessing the progress of qualified manufacturing projects
receiving state benefits under this chapter. The report must be
based on data annually certified to the comptroller by each owner of
a qualified manufacturing project under this chapter and state for
each project:
(1) the number of new full-time jobs the owner of the
project committed to create;
(2) the number of new full-time jobs the owner of the
project created;
(3) the median wage of the new full-time jobs created;
(4) the amount of capital investment the owner of the
project committed to expend in the facility; and
(5) the amount of capital investment the owner
expended in the facility.
(b) The report may not include information that is made
confidential by law.
(c) The comptroller may require an owner of a qualified
manufacturing project to submit, on a form the comptroller
provides, information required to complete the report.
Sec. 399.058. COMPTROLLER DUTIES. The comptroller shall
adopt rules, forms, and fees necessary to perform the comptroller's
duties under this chapter.
SUBCHAPTER C. TEXAS WORKFORCE INVESTMENT FUND
Sec. 399.101. DEFINITIONS. In this subchapter:
(1) "Additional sales and use tax" means the total
amount of sales and use taxes collected under Chapter 151, Tax Code,
on purchases of all taxable items purchased within a qualified
manufacturing project zone for each state fiscal year for the
duration of the qualified manufacturing project zone designation
less the sales tax base, not otherwise due as a rebate or refund
under any other applicable law.
(2) "Fund" means the Texas workforce investment fund
established under Section 399.102.
(3) "Qualified educational participant" means any
public community college, public university, state licensed career
and vocational school, and public high school in good standing with
the state.
(4) "Sales tax base" means the amount of the sales and
use taxes collected under Chapter 151, Tax Code, on purchases of all
taxable items purchased within the boundaries of a qualified
manufacturing project zone for the state fiscal year ending before
the date the zone is designated.
Sec. 399.102. TEXAS WORKFORCE INVESTMENT FUND. (a) The
Texas workforce investment fund is a special fund in the state
treasury outside the general revenue fund to be administered by the
comptroller under this subchapter. Money in the fund may be used
for the workforce investment program established under Section
399.103 and for any other purpose of this subchapter.
(b) The fund consists of:
(1) the amounts deposited by the comptroller under
Section 399.104;
(2) refunds received by the comptroller under Section
399.107;
(3) interest earned on money credited to the fund; and
(4) money from gifts, grants, or donations to the
fund.
(c) Sections 403.095 and 404.071, Government Code, do not
apply to the fund.
Sec. 399.103. WORKFORCE INVESTMENT PROGRAM. (a) The
comptroller shall establish and implement the Texas workforce
investment program to remit money from the Texas workforce
investment fund to qualified educational participants to provide
job training and education for the current and future workforce
needs of qualified manufacturing projects participating in the
program.
(b) A qualified manufacturing project is eligible to
participate in the program to the extent that the fund has on hand
amounts deposited by the comptroller under Section 399.104 that are
directly attributable to the project.
(c) To receive funding under the program, a qualified
educational participant must enter into a memorandum of
understanding with the owner of a qualified manufacturing project
eligible to participate in the program. The memorandum of
understanding must outline specifically how money from the fund
will be used by the qualified educational participant to provide
the educational courses and workforce training needed by the
workforce of the qualified manufacturing project.
(d) The comptroller by rule shall adopt the form of the
memorandums of understanding entered into by owners of qualified
manufacturing projects and qualified educational participants
under this section.
Sec. 399.104. ALLOCATION OF TAXES. (a) Not later than
October 1 of each state fiscal year, the comptroller shall deposit
to the credit of the fund 25 percent of the additional sales and use
tax collected in the preceding state fiscal year that is directly
attributable, as determined by the comptroller in accordance with
procedures developed by the comptroller, to the economic activity
derived from the presence of each qualified manufacturing project,
if the owner of the project has made the applicable employment
certification to the comptroller required under Section 399.055.
(b) If the comptroller determines that none of the
additional sales and use tax for the preceding state fiscal year is
directly attributable to the economic activity derived from the
presence of the qualified manufacturing project, then no money that
is attributed to the qualified manufacturing project shall be
deposited into the fund and the comptroller shall notify the owner
of the project of the comptroller's determination and the basis for
that determination.
Sec. 399.105. PAYMENTS FROM FUND. (a) For the duration of
a qualified manufacturing project zone designation, but not to
exceed 10 years, the comptroller shall remit payments from the fund
to a qualified educational participant who enters into a memorandum
of understanding with the owner of a qualified manufacturing
project under Section 399.103.
(b) The amounts remitted from the fund on behalf of an
individual qualified manufacturing project may not exceed the
amount of additional sales and use tax deposited in the fund that is
directly attributable to the economic activity derived from the
project as determined by the comptroller under Section 399.104.
(c) The total amount of money deposited into the fund that
will be made available to a qualified manufacturing project for use
as prescribed under this subchapter may not exceed an amount equal
to the lesser of $50 million or five percent of the qualified
manufacturing project's investments in the facility under
Subchapter B.
Sec. 399.106. USE OF FUNDS. (a) After designation of the
county in which a qualified manufacturing project is located as a
qualified manufacturing project zone, money may be remitted from
the fund and used to pay for or to refund workforce training
expenses incurred by a qualified educational participant who has
entered into a memorandum of understanding with the owner of the
qualified manufacturing project.
(b) Money from the fund may not be allocated under this
subchapter for the training and workforce development of an
employee or future employee of a qualified manufacturing project
working in a "bona fide executive, administrative, or professional
capacity," as that phrase is used for purposes of establishing an
exemption to the overtime provisions of the federal Fair Labor
Standards Act of 1938 (29 U.S.C. Section 201 et seq.).
Sec. 399.107. MONITORING OF PROJECT. If the owner of a
qualified manufacturing project fails to make the applicable
certification required by Section 399.055 or if the comptroller
elects to audit the certification and determines that the qualified
manufacturing project has started commercial operation and failed
to meet the job creation requirement, the owner forfeits the right
to enter into memorandums of understanding with qualified
educational participants under this subchapter. The owner shall
pay to the comptroller the entire amount of all funds previously
allocated from the fund through memorandums of understanding
entered into by the owner under Section 399.103. Payment of a
refund under this section shall be made not later than the 60th day
after, as applicable, the date the certification is due or the date
the comptroller completes the audit.
Sec. 399.108. UNEXPENDED FUNDS; NOTICE. (a) For the
duration of a qualified manufacturing project zone's designation,
the comptroller periodically shall notify the owner of a qualified
manufacturing project in writing of any money in the fund
attributable to the project that currently remains unexpended but
may be spent by the owner by participating in the workforce
investment program.
(b) Any money in the fund that remains unexpended by a
project when its designation as a qualified manufacturing project
ends shall be deposited by the comptroller to the credit of the
general revenue fund.
SECTION 3. This Act takes effect September 1, 2013.