Texas 2013 - 83rd Regular

Texas Senate Bill SB1084 Compare Versions

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1	1	By: Hinojosa S.B. No. 1084
2	2	(Murphy)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the enterprise zone program.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 2303.003, Government Code, is amended by
10	10	amending Subdivision (7) and adding Subdivision (9) to read as
11	11	follows:
12	12	(7) "Qualified employee" means a person who:
13	13	(A) works for a qualified business; [and]
14	14	(B) receives wages from the qualified business
15	15	from which employment taxes are deducted; and
16	16	(C) performs at least 50 percent of the person's
17	17	service for the business at the qualified business site, or if the
18	18	person engages in the transportation of goods or services, the
19	19	person reports to the qualified business site and resides within 50
20	20	miles of the qualified business site.
21	21	(9) "Veteran" means a person who:
22	22	(A) has served in:
23	23	(i) the army, navy, air force, coast guard,
24	24	or marine corps of the United States;
25	25	(ii) the state military forces as defined
26	26	by Section 431.001; or
27	27	(iii) an auxiliary service of one of those
28	28	branches of the armed forces; and
29	29	(B) has been honorably discharged from the branch
30	30	of the service in which the person served.
31	31	SECTION 2. Section 2303.004, Government Code, is amended by
32	32	amending Subsection (b) and adding Subsection (c) to read as
33	33	follows:
34	34	(b) Notwithstanding Subsection (a), the governing body of a
35	35	county [with a population of one million or more] may nominate for
36	36	designation as an enterprise project a project or activity of a
37	37	qualified business that is located within the jurisdiction of a
38	38	municipality located in the county. [For purposes of this
39	39	subsection, a county during any biennium may not use in any one
40	40	municipality more than three of the maximum number of designations
41	41	the county is permitted under Section 2303.406(d)(2).]
42	42	(c) Before a county makes a nomination under Subsection (b),
43	43	the nominating county must enter into an interlocal agreement with
44	44	the municipality that has jurisdiction of the territory in which
45	45	the nominated project or activity will be located. The interlocal
46	46	agreement must specify that either the nominating county or the
47	47	municipality that has jurisdiction of the territory in which the
48	48	nominated project or activity will be located is the governmental
49	49	body having administration authority under Section 2303.201 and
50	50	that both the nominating county and municipality approve the
51	51	nomination. For purposes of this subsection, a county during any
52	52	biennium may use the maximum number of designations the county is
53	53	permitted under Section 2303.406(d) within the territory described
54	54	by this subsection.
55	55	SECTION 3. Section 2303.201, Government Code, is amended to
56	56	read as follows:
57	57	Sec. 2303.201. ADMINISTRATION BY GOVERNING BODY. (a) The
58	58	governing body of an enterprise zone is the governing body of the
59	59	municipality or county with jurisdiction over the area designated
60	60	as an enterprise zone, except as provided by Subsection (b).
61	61	(b) The governing body with administration authority over
62	62	an enterprise project nominated under Section 2303.004(c) is
63	63	determined under the terms of an interlocal agreement required by
64	64	that subsection.
65	65	SECTION 4. Subsection (a), Section 2303.402, Government
66	66	Code, is amended to read as follows:
67	67	(a) A person is a qualified business if the bank, for the
68	68	purpose of state benefits under this chapter, or the nominating
69	69	body of a project or activity of the person under this chapter, for
70	70	the purpose of local incentives, certifies that:
71	71	(1) the person is engaged in or has provided
72	72	substantial commitment to initiate the active conduct of a trade or
73	73	business in an enterprise zone, and at least 25 percent of the
74	74	person's new permanent jobs [employees] in the enterprise zone are
75	75	held by:
76	76	(A) residents of any enterprise zone in this
77	77	state; [or]
78	78	(B) economically disadvantaged individuals; or
79	79	(C) veterans; or
80	80	(2) the person is engaged in or has provided
81	81	substantial commitment to initiate the active conduct of a trade or
82	82	business in an area of this state that does not qualify as an
83	83	enterprise zone, and at least 35 percent of the person's new
84	84	permanent jobs [employees] at the qualified business site are held
85	85	by:
86	86	(A) residents of any enterprise zone in this
87	87	state; [or]
88	88	(B) individuals who are economically
89	89	disadvantaged; or
90	90	(C) veterans.
91	91	SECTION 5. Section 2303.4052, Government Code, is amended
92	92	to read as follows:
93	93	Sec. 2303.4052. REQUIRED INFORMATION FROM NOMINATING BODY.
94	94	Before nominating the project or activity of a qualified business
95	95	for designation as an enterprise project, the nominating body must
96	96	submit to the bank:
97	97	(1) a certified copy of the ordinance or order, as
98	98	appropriate, or reference to an ordinance or order as required by
99	99	Section 2303.4051;
100	100	(2) a certified copy of the minutes [transcript] of
101	101	all public hearings conducted with respect to local incentives
102	102	available to qualified businesses within the jurisdiction of the
103	103	governmental entity nominating the project or activity, regardless
104	104	of whether those businesses are located in an enterprise zone;
105	105	(3) the name, title, address, telephone number, and
106	106	electronic mail address of the nominating body's liaison designated
107	107	under Section 2303.204;
108	108	(4) if the business is seeking job retention benefits,
109	109	documentation showing the number of employment positions at the
110	110	qualified business site; [and]
111	111	(5) any interlocal agreement required under Section
112	112	2303.004(c) that states:
113	113	(A) which governing body has the administration
114	114	authority under Section 2303.201; and
115	115	(B) that both the county in which the project or
116	116	activity is located and the municipality in whose jurisdiction the
117	117	project or activity is located approve the nomination of the
118	118	project or activity; and
119	119	(6) any additional information the bank may require.
120	120	SECTION 6. Section 2303.406, Government Code, is amended by
121	121	amending Subsections (b) and (e) and adding Subsection (d-1) to
122	122	read as follows:
123	123	(b) [This subsection does not apply to a qualified business
124	124	located in a federally designated zone, as described by Section
125	125	2303.101(2), which will receive priority designation in allocating
126	126	the number of enterprise projects allowed statewide per biennium as
127	127	provided by Section 2303.403.] The bank shall designate qualified
128	128	businesses as enterprise projects on a competitive basis. The bank
129	129	shall make its designation decisions using a weighted scale in
130	130	which:
131	131	(1) 40 percent of the evaluation depends on the
132	132	economic distress of the block group or distressed county in which a
133	133	proposed enterprise project is located;
134	134	(2) 25 percent of the evaluation depends on the local
135	135	effort to achieve development and revitalization of the block group
136	136	or distressed county in which a proposed enterprise project is
137	137	located; and
138	138	(3) 35 percent of the evaluation depends on the
139	139	evaluation criteria as determined by the bank, which must include:
140	140	(A) with respect to a proposed enterprise project
141	141	located in a block group, the level of cooperation and support the
142	142	project applicant commits to the revitalization goals of all of the
143	143	enterprise zone block groups within the jurisdiction of the
144	144	nominating governmental entity;
145	145	(B) with respect to a proposed enterprise project
146	146	located in a distressed county, the level of cooperation and
147	147	support the project applicant commits to the revitalization of the
148	148	distressed county; and
149	149	(C) the type and wage level of the jobs to be
150	150	created or retained by the business.
151	151	(d-1) An enterprise project designation may be split into
152	152	two half designations. A half designation uses one-half of one of
153	153	the enterprise project designations allowed to a nominating body
154	154	under Subsection (d) and to the bank under Section 2303.403.
155	155	(e) The office may not[, during any biennium,] designate
156	156	multiple concurrent enterprise projects to a qualified business
157	157	located at a qualified business site.
158	158	SECTION 7. Section 2303.407, Government Code, is amended by
159	159	amending Subsections (b), (c), and (d) and adding Subsections (e)
160	160	and (f) to read as follows:
161	161	(b) A capital investment in a project of:
162	162	(1) $40,000 to $399,999 will result in a refund of up
163	163	to $2,500 per job with a maximum refund of $25,000 for the creation
164	164	or retention of 10 jobs;
165	165	(2) $400,000 to $999,999 will result in a refund of up
166	166	to $2,500 per job with a maximum refund of $62,500 for the creation
167	167	or retention of 25 jobs;
168	168	(3) $1,000,000 to $4,999,999 will result in a refund
169	169	of up to $2,500 per job with a maximum refund of $312,500 for the
170	170	creation or retention of 125 jobs;
171	171	(4) $5,000,000 or more [to $149,999,999] will result
172	172	in a refund of up to $2,500 per job with a maximum refund of
173	173	$1,250,000 for the creation or retention of 500 jobs, except as
174	174	provided by Subdivision (5) or (6);
175	175	(5) $150,000,000 to $249,999,999 will result in a
176	176	refund of up to $5,000 per new permanent job with a maximum refund
177	177	of $2,500,000 for the creation [or retention] of 500 new permanent
178	178	jobs if the bank designates the project as a double jumbo enterprise
179	179	project; or
180	180	(6) $250,000,000 or more will result in a refund of up
181	181	to $7,500 per new permanent job with a maximum refund of $3,750,000
182	182	for the creation [or retention] of at least 500 new permanent jobs
183	183	if the bank designates the project as a triple jumbo enterprise
184	184	project.
185	185	(c) An enterprise project for which a commitment for a
186	186	capital investment in the range amount and the creation [or
187	187	retention] of the number of new permanent jobs specified by
188	188	Subsection (b)(5) is made is considered a double jumbo enterprise
189	189	project if the project is so designated by the bank. The bank may
190	190	not designate a project as a double jumbo enterprise project after
191	191	the initial designation period approved by the bank under Section
192	192	2303.404(b).
193	193	(d) An enterprise project for which a commitment for a
194	194	capital investment in the range amount and the creation [or
195	195	retention] of the number of new permanent jobs specified by
196	196	Subsection (b)(6) is made is considered a triple jumbo enterprise
197	197	project if the project is so designated by the bank. The bank may
198	198	not designate a project as a triple jumbo enterprise project after
199	199	the initial designation period approved by the bank under Section
200	200	2303.404(b).
201	201	(e) A state-mandated or federally mandated capital
202	202	investment, including an investment in pollution abatement
203	203	equipment, does not qualify as a committed capital investment in an
204	204	enterprise project under this chapter.
205	205	(f) The maximum number of jobs that the bank may allocate to
206	206	an enterprise project split into two half designations as provided
207	207	by Section 2303.406(d-1) is 250.
208	208	SECTION 8. Section 2303.4071, Government Code, is amended
209	209	by amending Subsection (a) and adding Subsection (e) to read as
210	210	follows:
211	211	(a) In this section:
212	212	(1) "Double[, "double] jumbo enterprise project" and
213	213	"triple jumbo enterprise project" have the meanings assigned by
214	214	Section 2303.407.
215	215	(2) "Half enterprise project" means an enterprise
216	216	project split into two half designations as provided by Section
217	217	2303.406(d-1).
218	218	(e) A half enterprise project is eligible for a maximum
219	219	refund not to exceed $125,000 in each state fiscal year and is
220	220	subject to the capital investment and job allocation requirements
221	221	under Section 2303.407(b)(1), (2), or (3).
222	222	SECTION 9. Section 2303.504, Government Code, is amended to
223	223	read as follows:
224	224	Sec. 2303.504. STATE TAX REFUNDS [AND CREDITS]; REPORT.
225	225	(a) Subject to Section 2303.516, an enterprise project is entitled
226	226	to[:
227	227	[(1)] a refund of state taxes under Section 151.429,
228	228	Tax Code[; and
229	229	[(2) a franchise tax credit under Subchapter Q-1,
230	230	Chapter 171, Tax Code].
231	231	(b) At the time of receipt of any tax benefit available as a
232	232	result of participating in the enterprise zone program, including a
233	233	state sales and use tax refund [or franchise tax credit], three
234	234	percent of the amount of the tax benefit shall be transferred to the
235	235	Texas economic development bank fund under Subchapter B, Chapter
236	236	489, to defray the cost of administering this chapter.
237	237	(c) Not later than the 60th day after the last day of each
238	238	fiscal year, the comptroller shall report to the bank the statewide
239	239	total of actual jobs created, actual jobs retained, and the tax
240	240	refunds [and credits] made under this section during that fiscal
241	241	year.
242	242	SECTION 10. Subsection (b), Section 2303.516, Government
243	243	Code, is amended to read as follows:
244	244	(b) The comptroller may determine that the business or
245	245	project is not entitled to a refund [or credit] of state taxes under
246	246	Section 2303.504 if the comptroller finds that:
247	247	(1) the business or project is not willing to
248	248	cooperate with the comptroller in providing the comptroller with
249	249	the information the comptroller needs to determine the state
250	250	benefits; or
251	251	(2) the business or project has substantially failed
252	252	to follow through on any commitments made by it or on its behalf
253	253	under this chapter.
254	254	SECTION 11. Section 151.429, Tax Code, is amended by
255	255	amending Subsections (b) and (c) and adding Subsection (k) to read
256	256	as follows:
257	257	(b) Subject to the limitations provided by Subsection (c) of
258	258	this section, an enterprise project qualifies for a refund of taxes
259	259	under this section based on the amount of capital investment made at
260	260	the qualified business site, the project's designation level, and
261	261	the refund per job with a maximum refund to be included in a
262	262	computation of a tax refund for the project. A capital investment
263	263	at the qualified business site of:
264	264	(1) $40,000 to $399,999 will result in a refund of up
265	265	to $2,500 per job with a maximum refund of $25,000 for the creation
266	266	or retention of 10 jobs;
267	267	(2) $400,000 to $999,999 will result in a refund of up
268	268	to $2,500 per job with a maximum refund of $62,500 for the creation
269	269	or retention of 25 jobs;
270	270	(3) $1,000,000 to $4,999,999 will result in a refund
271	271	of up to $2,500 per job with a maximum refund of $312,500 for the
272	272	creation or retention of 125 jobs;
273	273	(4) $5,000,000 or more [to $149,999,999] will result
274	274	in a refund of up to $2,500 per job with a maximum refund of
275	275	$1,250,000 for the creation or retention of 500 jobs, except as
276	276	provided by Subdivision (5) or (6);
277	277	(5) $150,000,000 to $249,999,999 will result in a
278	278	refund of up to $5,000 per new permanent job with a maximum refund
279	279	of $2,500,000 for the creation [or retention] of 500 new permanent
280	280	jobs if the Texas Economic Development Bank designates the project
281	281	as a double jumbo enterprise project; or
282	282	(6) $250,000,000 or more will result in a refund of up
283	283	to $7,500 per new permanent job with a maximum refund of $3,750,000
284	284	for the creation [or retention] of at least 500 new permanent jobs
285	285	if the Texas Economic Development Bank designates the project as a
286	286	triple jumbo enterprise project.
287	287	(c) The total amount of tax refund that an enterprise
288	288	project may apply for in a state fiscal year may not exceed
289	289	$250,000, at not more than $2,500 per job. The total amount of tax
290	290	refund that a double jumbo enterprise project may apply for in a
291	291	state fiscal year may not exceed $500,000, at not more than $5,000
292	292	per new permanent job. The total amount of tax refund that a triple
293	293	jumbo enterprise project may apply for in a state fiscal year may
294	294	not exceed $750,000, at not more than $7,500 per new permanent job.
295	295	If an enterprise project, double jumbo enterprise project, or
296	296	triple jumbo enterprise project qualifies in a state fiscal year
297	297	for a refund of taxes in an amount in excess of the applicable
298	298	limitation provided by this subsection, it may apply for a refund of
299	299	those taxes in a subsequent year, subject to the applicable
300	300	limitation for each year. The total amount that may be refunded to:
301	301	(1) an enterprise project under this section may not
302	302	exceed the amount determined by multiplying $250,000 by the number
303	303	of state fiscal years during which the enterprise project created
304	304	or retained one or more jobs for qualified employees;
305	305	(2) a double jumbo enterprise project under this
306	306	section may not exceed the amount determined by multiplying
307	307	$500,000 by the number of state fiscal years during which the double
308	308	jumbo enterprise project created [or retained] one or more new
309	309	permanent jobs for qualified employees; or
310	310	(3) a triple jumbo enterprise project under this
311	311	section may not exceed the amount determined by multiplying
312	312	$750,000 by the number of state fiscal years during which the triple
313	313	jumbo enterprise project created [or retained] one or more new
314	314	permanent jobs for qualified employees.
315	315	(k) A half enterprise project is eligible for a maximum
316	316	refund not to exceed $125,000 in each state fiscal year and is
317	317	subject to the capital investment and job allocation requirements
318	318	under Subsection (b)(1), (2), or (3).
319	319	SECTION 12. Subsection (e), Section 151.429, Tax Code, is
320	320	amended by adding Subdivision (6) to read as follows:
321	321	(6) "Half enterprise project" means an enterprise
322	322	project split into two half designations as provided by Section
323	323	2303.406(d-1), Government Code.
324	324	SECTION 13. Subsection (b), Section 2303.109, Government
325	325	Code, is repealed.
326	326	SECTION 14. (a) The changes in law made by this Act to
327	327	Subsection (a), Section 2303.402, Government Code, apply only to an
328	328	application for a designation of an enterprise project under the
329	329	enterprise zone program under Chapter 2303, Government Code, as
330	330	amended by this Act, filed on or after the effective date of this
331	331	Act. An application for designation of an enterprise project under
332	332	the enterprise zone program filed before the effective date of this
333	333	Act is governed by the law in effect on the date the application was
334	334	filed, and the former law is continued in effect for that purpose.
335	335	(b) The changes in law made by this Act to Section 2303.407,
336	336	Government Code, and Section 151.429, Tax Code, apply only to an
337	337	enterprise project designation made on or after the effective date
338	338	of this Act. An enterprise project designation made before the
339	339	effective date of this Act is governed by the law in effect when the
340	340	designation was made, and the former law is continued in effect for
341	341	that purpose.
342	342	SECTION 15. This Act takes effect September 1, 2013.