Texas 2015 - 84th Regular

Texas Senate Bill SB100 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Hinojosa S.B. No. 100
2		-	(Murphy)
	1	+	S.B. No. 100
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to the enterprise zone program.
8	6		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	7		SECTION 1. Section 2303.003, Government Code, is amended by
10	8		amending Subdivision (7) and adding Subdivision (9) to read as
11	9		follows:
12	10		(7) "Qualified employee" means a person who:
13	11		(A) works for a qualified business;
14	12		(B) receives wages from the qualified business
15	13		from which employment taxes are deducted; and
16	14		(C) performs at least 50 percent of the person's
17	15		service for the business at the qualified business site, or if the
18	16		person engages in the transportation of goods or services, the
19	17		person reports to the qualified business site and resides within 50
20	18		miles of the qualified business site [unless the person's job
21	19		responsibility is to transport or deliver the enterprise project's
22	20		goods or services].
23	21		(9) "Veteran" means a person who:
24	22		(A) has served in:
25	23		(i) the army, navy, air force, coast guard,
26	24		or marine corps of the United States;
27	25		(ii) the state military forces as defined
28	26		by Section 431.001; or
29	27		(iii) an auxiliary service of one of those
30	28		branches of the armed forces; and
31	29		(B) has been honorably discharged from the branch
32	30		of the service in which the person served.
33	31		SECTION 2. Section 2303.004, Government Code, is amended by
34	32		amending Subsection (b) and adding Subsection (c) to read as
35	33		follows:
36	34		(b) Notwithstanding Subsection (a), the governing body of a
37	35		county [with a population of one million or more] may nominate for
38	36		designation as an enterprise project a project or activity of a
39	37		qualified business that is located within the jurisdiction of a
40	38		municipality located in the county. [For purposes of this
41	39		subsection, a county during any biennium may not use in any one
42	40		municipality more than three of the maximum number of designations
43	41		the county is permitted under Section 2303.406(d)(2).]
44	42		(c) Before a county makes a nomination under Subsection (b),
45	43		the nominating county must enter into an interlocal agreement with
46	44		the municipality that has jurisdiction of the territory in which
47	45		the nominated project or activity will be located. The interlocal
48	46		agreement must specify that either the nominating county or the
49	47		municipality that has jurisdiction of the territory in which the
50	48		nominated project or activity will be located is the governmental
51	49		body having administration authority under Section 2303.201 and
52	50		that both the nominating county and municipality approve the
53	51		nomination. For purposes of this subsection, a county during any
54	52		biennium may use the maximum number of designations the county is
55	53		permitted under Section 2303.406(d) within the territory described
56	54		by this subsection.
57	55		SECTION 3. Section 2303.201, Government Code, is amended to
58	56		read as follows:
59	57		Sec. 2303.201. ADMINISTRATION BY GOVERNING BODY. (a) The
60	58		governing body of an enterprise zone is the governing body of the
61	59		municipality or county with jurisdiction over the area designated
62	60		as an enterprise zone, except as provided by Subsection (b).
63	61		(b) The governing body with administration authority over
64	62		an enterprise project nominated under Section 2303.004(c) is
65	63		determined under the terms of an interlocal agreement required by
66	64		that subsection.
67	65		SECTION 4. Section 2303.402(a), Government Code, is amended
68	66		to read as follows:
69	67		(a) A person is a qualified business if the bank, for the
70	68		purpose of state benefits under this chapter, or the nominating
71	69		body of a project or activity of the person under this chapter, for
72	70		the purpose of local incentives, certifies that:
73	71		(1) the person is engaged in or has provided
74	72		substantial commitment to initiate the active conduct of a trade or
75	73		business in an enterprise zone, and at least 25 percent of the
76	74		person's new permanent jobs [employees] in the enterprise zone are
77	75		held by:
78	76		(A) residents of any enterprise zone in this
79	77		state; [or]
80	78		(B) economically disadvantaged individuals; or
81	79		(C) veterans; or
82	80		(2) the person is engaged in or has provided
83	81		substantial commitment to initiate the active conduct of a trade or
84	82		business in an area of this state that does not qualify as an
85	83		enterprise zone, and at least 35 percent of the person's new
86	84		permanent jobs [employees] at the qualified business site are held
87	85		by:
88	86		(A) residents of any enterprise zone in this
89	87		state; [or]
90	88		(B) individuals who are economically
91	89		disadvantaged; or
92	90		(C) veterans.
93	91		SECTION 5. Section 2303.4052, Government Code, is amended
94	92		to read as follows:
95	93		Sec. 2303.4052. REQUIRED INFORMATION FROM NOMINATING BODY.
96	94		Before nominating the project or activity of a qualified business
97	95		for designation as an enterprise project, the nominating body must
98	96		submit to the bank:
99	97		(1) a certified copy of the ordinance or order, as
100	98		appropriate, or reference to an ordinance or order as required
101	99		by Section 2303.4051;
102	100		(2) a certified copy of the minutes [transcript] of
103	101		all public hearings conducted with respect to local incentives
104	102		available to qualified businesses within the jurisdiction of the
105	103		governmental entity nominating the project or activity, regardless
106	104		of whether those businesses are located in an enterprise zone;
107	105		(3) the name, title, address, telephone number, and
108	106		electronic mail address of the nominating body's liaison designated
109	107		under Section 2303.204;
110	108		(4) if the business is seeking job retention benefits,
111	109		documentation showing the number of employment positions at the
112	110		qualified business site; [and]
113	111		(5) any interlocal agreement required under Section
114	112		2303.004(c) that states:
115	113		(A) which governing body has the administration
116	114		authority under Section 2303.201; and
117	115		(B) that both the county in which the project or
118	116		activity is located and the municipality in whose jurisdiction the
119	117		project or activity is located approve the nomination of the
120	118		project or activity; and
121	119		(6) any additional information the bank may require.
122	120		SECTION 6. Section 2303.406, Government Code, is amended by
123	121		amending Subsections (b) and (e) and adding Subsection (d-1) to
124	122		read as follows:
125	123		(b) [This subsection does not apply to a qualified business
126	124		located in a federally designated zone, as described by Section
127	125		2303.101(2), which will receive priority designation in allocating
128	126		the number of enterprise projects allowed statewide per biennium as
129	127		provided by Section 2303.403.] The bank shall designate qualified
130	128		businesses as enterprise projects on a competitive basis. The bank
131	129		shall make its designation decisions using a weighted scale in
132	130		which:
133	131		(1) 40 percent of the evaluation depends on the
134	132		economic distress of the block group or distressed county in which a
135	133		proposed enterprise project is located;
136	134		(2) 25 percent of the evaluation depends on the local
137	135		effort to achieve development and revitalization of the block group
138	136		or distressed county in which a proposed enterprise project is
139	137		located; and
140	138		(3) 35 percent of the evaluation depends on the
141	139		evaluation criteria as determined by the bank, which must include:
142	140		(A) with respect to a proposed enterprise project
143	141		located in a block group, the level of cooperation and support the
144	142		project applicant commits to the revitalization goals of all of the
145	143		enterprise zone block groups within the jurisdiction of the
146	144		nominating governmental entity;
147	145		(B) with respect to a proposed enterprise project
148	146		located in a distressed county, the level of cooperation and
149	147		support the project applicant commits to the revitalization of the
150	148		distressed county; and
151	149		(C) the type and wage level of the jobs to be
152	150		created or retained by the business.
153	151		(d-1) An enterprise project designation may be split into
154	152		two half designations. A half designation uses one-half of one of
155	153		the enterprise project designations allowed to a nominating body
156	154		under Subsection (d) and to the bank under Section 2303.403.
157	155		(e) The office may not[, during any biennium,] designate
158	156		multiple concurrent enterprise projects to a qualified business
159	157		located at a qualified business site.
160	158		SECTION 7. Section 2303.407, Government Code, is amended by
161	159		amending Subsections (b), (c), and (d) and adding Subsection (e) to
162	160		read as follows:
163	161		(b) A capital investment in a project of:
164	162		(1) $40,000 to $399,999 will result in a refund of up
165	163		to $2,500 per job with a maximum refund of $25,000 for the creation
166	164		or retention of 10 jobs;
167	165		(2) $400,000 to $999,999 will result in a refund of up
168	166		to $2,500 per job with a maximum refund of $62,500 for the creation
169	167		or retention of 25 jobs;
170	168		(3) $1,000,000 to $4,999,999 will result in a refund
171	169		of up to $2,500 per job with a maximum refund of $312,500 for the
172	170		creation or retention of 125 jobs;
173	171		(4) $5,000,000 or more [to $149,999,999] will result
174	172		in a refund of up to $2,500 per job with a maximum refund of
175	173		$1,250,000 for the creation or retention of 500 jobs, except as
176	174		provided by Subdivision (5) or (6);
177	175		(5) $150,000,000 to $249,999,999 will result in a
178	176		refund of up to $5,000 per new permanent job with a maximum refund
179	177		of $2,500,000 for the creation [or retention] of 500 new permanent
180	178		jobs if the bank designates the project as a double jumbo enterprise
181	179		project; or
182	180		(6) $250,000,000 or more will result in a refund of up
183	181		to $7,500 per new permanent job with a maximum refund of $3,750,000
184	182		for the creation [or retention] of at least 500 new permanent jobs
185	183		if the bank designates the project as a triple jumbo enterprise
186	184		project.
187	185		(c) An enterprise project for which a commitment for a
188	186		capital investment in the range amount and the creation [or
189	187		retention] of the number of new permanent jobs specified by
190	188		Subsection (b)(5) is made is considered a double jumbo enterprise
191	189		project if the project is so designated by the bank.
192	190		(d) An enterprise project for which a commitment for a
193	191		capital investment in the range amount and the creation [or
194	192		retention] of the number of new permanent jobs specified by
195	193		Subsection (b)(6) is made is considered a triple jumbo enterprise
196	194		project if the project is so designated by the bank.
197	195		(e) The maximum number of jobs that the bank may allocate to
198	196		an enterprise project split into two half designations as provided
199	197		by Section 2303.406(d-1) is 250.
200	198		SECTION 8. Section 2303.4071, Government Code, is amended
201	199		by amending Subsection (a) and adding Subsection (e) to read as
202	200		follows:
203	201		(a) In this section:
204	202		(1) "Double[, "double] jumbo enterprise project" and
205	203		"triple jumbo enterprise project" have the meanings assigned by
206	204		Section 2303.407.
207	205		(2) "Half enterprise project" means an enterprise
208	206		project split into two half designations as provided by Section
209	207		2303.406(d-1).
210	208		(e) A half enterprise project is eligible for a maximum
211	209		refund not to exceed $125,000 in each state fiscal year and is
212	210		subject to the capital investment and job allocation requirements
213	211		under Section 2303.407(b)(1), (2), or (3).
214	212		SECTION 9. Section 2303.504, Government Code, is amended to
215	213		read as follows:
216	214		Sec. 2303.504. STATE TAX REFUNDS [AND CREDITS]; REPORT.
217	215		(a) Subject to Section 2303.516, an enterprise project is entitled
218	216		to[:
219	217		[(1)] a refund of state taxes under Section 151.429,
220	218		Tax Code[; and
221	219		[(2) a franchise tax credit under Subchapter Q-1,
222	220		Chapter 171, Tax Code].
223	221		(b) At the time of receipt of any tax benefit available as a
224	222		result of participating in the enterprise zone program, including a
225	223		state sales and use tax refund [or franchise tax credit], three
226	224		percent of the amount of the tax benefit shall be transferred to the
227	225		Texas economic development bank fund under Subchapter B, Chapter
228	226		489, to defray the cost of administering this chapter.
229	227		(c) Not later than the 60th day after the last day of each
230	228		fiscal year, the comptroller shall report to the bank the statewide
231	229		total of actual jobs created, actual jobs retained, and the tax
232	230		refunds [and credits] made under this section during that fiscal
233	231		year.
234	232		SECTION 10. Section 2303.516(b), Government Code, is
235	233		amended to read as follows:
236	234		(b) The comptroller may determine that the business or
237	235		project is not entitled to a refund [or credit] of state taxes under
238	236		Section 2303.504 if the comptroller finds that:
239	237		(1) the business or project is not willing to
240	238		cooperate with the comptroller in providing the comptroller with
241	239		the information the comptroller needs to determine the state
242	240		benefits; or
243	241		(2) the business or project has substantially failed
244	242		to follow through on any commitments made by it or on its behalf
245	243		under this chapter.
246	244		SECTION 11. Section 151.429, Tax Code, is amended by
247	245		amending Subsections (b) and (c) and adding Subsection (k) to read
248	246		as follows:
249	247		(b) Subject to the limitations provided by Subsection (c) of
250	248		this section, an enterprise project qualifies for a refund of taxes
251	249		under this section based on the amount of capital investment made at
252	250		the qualified business site, the project's designation level, and
253	251		the refund per job with a maximum refund to be included in a
254	252		computation of a tax refund for the project. A capital investment
255	253		at the qualified business site of:
256	254		(1) $40,000 to $399,999 will result in a refund of up
257	255		to $2,500 per job with a maximum refund of $25,000 for the creation
258	256		or retention of 10 jobs;
259	257		(2) $400,000 to $999,999 will result in a refund of up
260	258		to $2,500 per job with a maximum refund of $62,500 for the creation
261	259		or retention of 25 jobs;
262	260		(3) $1,000,000 to $4,999,999 will result in a refund
263	261		of up to $2,500 per job with a maximum refund of $312,500 for the
264	262		creation or retention of 125 jobs;
265	263		(4) $5,000,000 or more [to $149,999,999] will result
266	264		in a refund of up to $2,500 per job with a maximum refund of
267	265		$1,250,000 for the creation or retention of 500 jobs, except as
268	266		provided by Subdivision (5) or (6);
269	267		(5) $150,000,000 to $249,999,999 will result in a
270	268		refund of up to $5,000 per new permanent job with a maximum refund
271	269		of $2,500,000 for the creation [or retention] of 500 new permanent
272	270		jobs if the Texas Economic Development Bank designates the project
273	271		as a double jumbo enterprise project; or
274	272		(6) $250,000,000 or more will result in a refund of up
275	273		to $7,500 per new permanent job with a maximum refund of $3,750,000
276	274		for the creation [or retention] of at least 500 new permanent jobs
277	275		if the Texas Economic Development Bank designates the project as a
278	276		triple jumbo enterprise project.
279	277		(c) The total amount of tax refund that an enterprise
280	278		project may apply for in a state fiscal year may not exceed
281	279		$250,000, at not more than $2,500 per job. The total amount of tax
282	280		refund that a double jumbo enterprise project may apply for in a
283	281		state fiscal year may not exceed $500,000, at not more than $5,000
284	282		per new permanent job. The total amount of tax refund that a triple
285	283		jumbo enterprise project may apply for in a state fiscal year may
286	284		not exceed $750,000, at not more than $7,500 per new permanent job.
287	285		If an enterprise project, double jumbo enterprise project, or
288	286		triple jumbo enterprise project qualifies in a state fiscal year
289	287		for a refund of taxes in an amount in excess of the applicable
290	288		limitation provided by this subsection, it may apply for a refund of
291	289		those taxes in a subsequent year, subject to the applicable
292	290		limitation for each year. The total amount that may be refunded to:
293	291		(1) an enterprise project under this section may not
294	292		exceed the amount determined by multiplying $250,000 by the number
295	293		of state fiscal years during which the enterprise project created
296	294		or retained one or more jobs for qualified employees;
297	295		(2) a double jumbo enterprise project under this
298	296		section may not exceed the amount determined by multiplying
299	297		$500,000 by the number of state fiscal years during which the double
300	298		jumbo enterprise project created [or retained] one or more new
301	299		permanent jobs for qualified employees; or
302	300		(3) a triple jumbo enterprise project under this
303	301		section may not exceed the amount determined by multiplying
304	302		$750,000 by the number of state fiscal years during which the triple
305	303		jumbo enterprise project created [or retained] one or more new
306	304		permanent jobs for qualified employees.
307	305		(k) A half enterprise project is eligible for a maximum
308	306		refund not to exceed $125,000 in each state fiscal year and is
309	307		subject to the capital investment and job allocation requirements
310	308		under Subsection (b)(1), (2), or (3).
311	309		SECTION 12. Section 151.429(e), Tax Code, is amended by
312	310		adding Subdivision (6) to read as follows:
313	311		(6) "Half enterprise project" means an enterprise
314	312		project split into two half designations as provided by Section
315	313		2303.406(d-1), Government Code.
316	314		SECTION 13. Section 2303.109(b), Government Code, is
317	315		repealed.
318	316		SECTION 14. (a) The changes in law made by this Act to
319	317		Section 2303.402(a), Government Code, apply only to an application
320	318		for a designation of an enterprise project under the enterprise
321	319		zone program under Chapter 2303, Government Code, as amended by
322	320		this Act, filed on or after the effective date of this Act. An
323	321		application for designation of an enterprise project under the
324	322		enterprise zone program filed before the effective date of this Act
325	323		is governed by the law in effect on the date the application was
326	324		filed, and the former law is continued in effect for that purpose.
327	325		(b) The changes in law made by this Act to Section 2303.407,
328	326		Government Code, and Section 151.429, Tax Code, apply only to an
329	327		enterprise project designation made on or after the effective date
330	328		of this Act. An enterprise project designation made before the
331	329		effective date of this Act is governed by the law in effect when the
332	330		designation was made, and the former law is continued in effect for
333	331		that purpose.
334	332		SECTION 15. This Act takes effect September 1, 2015.
	333	+	______________________________ ______________________________
	334	+	President of the Senate Speaker of the House
	335	+	I hereby certify that S.B. No. 100 passed the Senate on
	336	+	April 14, 2015, by the following vote: Yeas 31, Nays 0.
	337	+	______________________________
	338	+	Secretary of the Senate
	339	+	I hereby certify that S.B. No. 100 passed the House on
	340	+	May 24, 2015, by the following vote: Yeas 139, Nays 3, two
	341	+	present not voting.
	342	+	______________________________
	343	+	Chief Clerk of the House
	344	+	Approved:
	345	+	______________________________
	346	+	Date
	347	+	______________________________
	348	+	Governor