Texas 2017 - 85th Regular

Texas House Bill HB2998 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	85R19067 GRM-D
2	2	By: Blanco, Geren, Gutierrez, Sheffield H.B. No. 2998
3	3	Substitute the following for H.B. No. 2998:
4	4	By: Gutierrez C.S.H.B. No. 2998
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to defense economic readjustment zones.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 2310.001, Government Code, is amended by
12	12	amending Subdivision (7) and adding Subdivision (8) to read as
13	13	follows:
14	14	(7) "Readjustment zone" means a municipality or county
15	15	[an area] designated as a defense economic readjustment zone under
16	16	this chapter.
17	17	(8) "Veteran" has the meaning assigned by Section
18	18	2308.251.
19	19	SECTION 2. Section 2310.002, Government Code, is amended to
20	20	read as follows:
21	21	Sec. 2310.002. JURISDICTION OF MUNICIPALITY. (a) For the
22	22	purposes of this chapter, territory in the extraterritorial
23	23	jurisdiction of a municipality is considered to be in the
24	24	jurisdiction of the municipality.
25	25	(b) Notwithstanding Subsection (a), the governing body of a
26	26	county may apply to the bank for designation as a defense
27	27	readjustment project a project or activity of a qualified business
28	28	that is located within the jurisdiction of a municipality located
29	29	in the county.
30	30	(c) Before a county makes an application as provided by
31	31	Subsection (b), the applying county must enter into an interlocal
32	32	agreement with the municipality that has jurisdiction of the
33	33	territory in which the project or activity described by Subsection
34	34	(b) will be located. The interlocal agreement must specify that
35	35	either the applying county or the municipality that has
36	36	jurisdiction of the territory in which the project or activity
37	37	described by Subsection (b) will be located is the governmental
38	38	body having administration authority under Section 2310.201 and
39	39	that both the applying county and municipality approve the
40	40	application. For purposes of this subsection, a county during any
41	41	biennium may use the maximum number of designations the county is
42	42	permitted under Section 2310.306(e) within the territory described
43	43	by this subsection.
44	44	SECTION 3. Section 2310.051(b), Government Code, is amended
45	45	to read as follows:
46	46	(b) The bank shall establish criteria and procedures [for
47	47	designating a qualified area as a readjustment zone and] for
48	48	designating a defense readjustment project.
49	49	SECTION 4. Section 2310.052(b), Government Code, is amended
50	50	to read as follows:
51	51	(b) The bank must include the following information
52	52	regarding the defense readjustment zone program in the report
53	53	required by Section 489.107 [On or before December 1 of each year,
54	54	the office shall submit to the governor, the legislature, and the
55	55	Legislative Budget Board a report that]:
56	56	(1) an evaluation of [evaluates] the effectiveness of
57	57	the readjustment zone program;
58	58	(2) a description of [describes] the use of state and
59	59	local incentives under this chapter and their effect on revenue;
60	60	and
61	61	(3) suggestions for [suggests] legislation for the
62	62	program, as appropriate.
63	63	SECTION 5. Section 2310.101, Government Code, is amended to
64	64	read as follows:
65	65	Sec. 2310.101. [CRITERIA FOR] READJUSTMENT ZONE
66	66	DESIGNATION. (a) A municipality or county automatically qualifies
67	67	for designation [To be designated] as a readjustment zone if the
68	68	municipality or county is a defense-dependent community as
69	69	described by Section 2310.102 [an area must:
70	70	[(1) have a continuous boundary;
71	71	[(2) be at least one square mile but not larger than 20
72	72	square miles, excluding lakes, waterways, and transportation
73	73	arteries, of the municipality, county, or combination of
74	74	municipalities or counties nominating the area as a readjustment
75	75	zone;
76	76	[(3) be located in an adversely affected
77	77	defense-dependent community;
78	78	[(4) have at least 50 percent of its area located in an
79	79	existing or former United States Department of Defense facility;
80	80	and
81	81	[(5) be nominated as a readjustment zone by an
82	82	ordinance or order adopted by the nominating body].
83	83	(b) A municipality or county designated as [An area is not
84	84	prohibited from being included in] a readjustment zone under this
85	85	section is not prohibited from having an area of the municipality or
86	86	county [because the area is] also included in an enterprise zone
87	87	designated under Chapter 2303.
88	88	SECTION 6. Section 2310.102, Government Code, is amended to
89	89	read as follows:
90	90	Sec. 2310.102. [ADVERSELY AFFECTED] DEFENSE-DEPENDENT
91	91	COMMUNITY. A municipality or county is a [an adversely affected]
92	92	defense-dependent community if, as applicable, the municipality or
93	93	county is adjacent to or encompasses any part of a federally owned
94	94	or operated military installation, facility, or mission that is
95	95	functioning on June 1, 2003 [the bank determines that:
96	96	[(1) the municipality or county requires assistance
97	97	because of:
98	98	[(A) the proposed or actual establishment,
99	99	realignment, or closure of a defense facility;
100	100	[(B) the cancellation or termination of a United
101	101	States Department of Defense contract or the failure of the
102	102	department of defense to proceed with an approved major weapon
103	103	system program;
104	104	[(C) a publicly announced planned major
105	105	reduction in department of defense spending that would directly and
106	106	adversely affect the municipality or county; or
107	107	[(D) the closure or a significant reduction of
108	108	the operations of a defense facility as the result of a merger,
109	109	acquisition, or consolidation of a defense contractor operating the
110	110	facility; and
111	111	[(2) the municipality or county is expected to
112	112	experience, during the period between the beginning of the federal
113	113	fiscal year during which an event described by Subdivision (1) is
114	114	finally approved and the date that the event is to be substantially
115	115	completed, a direct loss of:
116	116	[(A) 2,500 or more defense worker jobs in any
117	117	area of the municipality or county that is located in an urbanized
118	118	area of a metropolitan statistical area;
119	119	[(B) 1,000 or more defense worker jobs in any
120	120	area of the municipality or county that is not located in an
121	121	urbanized area of a metropolitan statistical area; or
122	122	[(C) one percent of the civilian jobs in the
123	123	municipality or county].
124	124	SECTION 7. Section 2310.109, Government Code, is amended to
125	125	read as follows:
126	126	Sec. 2310.109. PERIOD OF DESIGNATION. A [An area may be
127	127	designated as a] readjustment zone [for a maximum of seven years.
128	128	A] designation remains in effect indefinitely so long as the
129	129	municipality or county, as applicable, continues to qualify for
130	130	designation as a readjustment zone under this chapter [until
131	131	September 1 of the final year of the designation].
132	132	SECTION 8. Section 2310.111(a), Government Code, is amended
133	133	to read as follows:
134	134	(a) The bank may remove the designation of an area
135	135	designated as a readjustment zone before September 1, 2017, if:
136	136	(1) the area no longer meets the criteria for
137	137	designation under this chapter, as this chapter existed on January
138	138	1, 2017, or by rule of the office adopted under this chapter before
139	139	September 1, 2017; or
140	140	(2) the bank determines that the governing body of the
141	141	readjustment zone has not complied with commitments made in the
142	142	ordinance or order nominating the area as a readjustment zone
143	143	before September 1, 2017.
144	144	SECTION 9. Section 2310.201, Government Code, is amended to
145	145	read as follows:
146	146	Sec. 2310.201. ADMINISTRATION BY GOVERNING BODY. (a) The
147	147	governing body of a readjustment zone is the governing body of the
148	148	municipality or county[, or the governing bodies of the combination
149	149	of municipalities or counties, that applied to have the area]
150	150	designated as a readjustment zone.
151	151	(b) The governing body with administration authority over a
152	152	defense readjustment project for which a designation is sought
153	153	under Section 2310.002(c) is determined under the terms of an
154	154	interlocal agreement required by that subsection.
155	155	SECTION 10. Section 2310.204(c), Government Code, is
156	156	amended to read as follows:
157	157	(c) The report must include for the year preceding the date
158	158	of the report:
159	159	(1) a list of local incentives for community
160	160	development available in the zone;
161	161	(2) the use of local incentives [for which the
162	162	governing body provided in the ordinance or order nominating the
163	163	readjustment zone] and the effect of those incentives on revenue;
164	164	(3) the number of businesses assisted, located, and
165	165	retained in the zone since its designation due to the existence of
166	166	the readjustment zone;
167	167	(4) a summary of all industrial revenue bonds issued
168	168	to finance projects located in the zone; and
169	169	(5) a description of all efforts made to attain
170	170	revitalization goals for the zone.
171	171	SECTION 11. Section 2310.301, Government Code, is amended
172	172	to read as follows:
173	173	Sec. 2310.301. DEFINITIONS [DEFINITION]. In this
174	174	subchapter:
175	175	(1) "New [, "new] permanent job" means a new
176	176	employment position created by a qualified business as described by
177	177	Section 2310.302 that:
178	178	(A) [(1)] has provided at least 1,820 hours of
179	179	employment a year to a qualified employee; and
180	180	(B) [(2)] is intended to exist during the period
181	181	that the qualified business is designated as a defense readjustment
182	182	project under Section 2310.306.
183	183	(2) "Retained job" means a job that:
184	184	(A) existed with a qualified business on the 91st
185	185	day before the date the business's project or activity is
186	186	designated as a defense readjustment project;
187	187	(B) has provided and will continue to provide
188	188	employment to a qualified employee of at least 1,820 hours
189	189	annually; and
190	190	(C) will be or has been an employment position
191	191	for the longer of:
192	192	(i) the duration of the project's
193	193	designation period; or
194	194	(ii) three years after the expiration date
195	195	of the claim period for receipt of a state benefit authorized by
196	196	this chapter.
197	197	SECTION 12. Section 2310.302(a), Government Code, is
198	198	amended to read as follows:
199	199	(a) A person is a qualified business if the bank, for the
200	200	purpose of state benefits under this chapter, or the governing body
201	201	of a readjustment zone, for the purpose of local benefits,
202	202	certifies that:
203	203	(1) the person is engaged in or has provided
204	204	substantial commitment to initiate the active conduct of a trade or
205	205	business in the readjustment zone; and
206	206	(2) at least 25 percent of the person's new employees
207	207	in the readjustment zone are:
208	208	(A) residents of the governing jurisdiction;
209	209	(B) economically disadvantaged individuals, as
210	210	defined by Section 2303.402(c); [or]
211	211	(C) dislocated defense workers; or
212	212	(D) veterans.
213	213	SECTION 13. Section 2310.303, Government Code, is amended
214	214	to read as follows:
215	215	Sec. 2310.303. PROHIBITION ON QUALIFIED BUSINESS
216	216	CERTIFICATION. If the bank determines that the governing body of a
217	217	readjustment zone is not complying with this chapter, the bank
218	218	shall prohibit the certification of a qualified business in the
219	219	zone until the bank determines that the governing body is complying
220	220	with this chapter. [The bank may not designate more than two defense
221	221	readjustment projects in a single readjustment zone.]
222	222	SECTION 14. Section 2310.305(b), Government Code, is
223	223	amended to read as follows:
224	224	(b) An application must:
225	225	(1) describe the procedures and efforts of the
226	226	governmental entity or entities [that applied to have the area
227	227	designated as a readjustment zone] to facilitate and encourage
228	228	participation by and negotiation among affected entities in the
229	229	zone in which the qualified business is located;
230	230	(2) contain an economic analysis of the plans of the
231	231	qualified business for expansion, revitalization, or other
232	232	activity in the readjustment zone, including:
233	233	(A) the number of anticipated new permanent jobs
234	234	the business will create during the designation period presented in
235	235	the form of a tabular listing of:
236	236	(i) the classification titles of those
237	237	jobs; and
238	238	(ii) the number of jobs and salary range for
239	239	each classification title;
240	240	(B) the anticipated number of permanent jobs the
241	241	business will retain during the designation period presented in the
242	242	form of a tabular listing of:
243	243	(i) the classification titles of those
244	244	jobs; and
245	245	(ii) the number of jobs and salary range for
246	246	each classification title;
247	247	(C) the amount of investment to be made in the
248	248	zone; [and]
249	249	(D) other information the bank requires;
250	250	(E) the number of employment positions in
251	251	existence at the qualified business site on the 91st day before the
252	252	application deadline; and
253	253	(F) if the application is for a double or triple
254	254	jumbo defense adjustment project, as defined by Section 2310.307,
255	255	an indication of which level of designation is being sought; and
256	256	(3) describe the local effort made by the governmental
257	257	entity or entities [that applied to have the area designated as a
258	258	readjustment zone], the administrative authority, if one exists,
259	259	the qualified business, and other affected entities to develop and
260	260	revitalize the zone.
261	261	SECTION 15. Section 2310.306, Government Code, is amended
262	262	by adding Subsection (e) to read as follows:
263	263	(e) The maximum number of defense readjustment projects
264	264	that the bank may designate for each readjustment zone during any
265	265	biennium is:
266	266	(1) six, if the readjustment zone is a municipality or
267	267	county with a population of less than 250,000; or
268	268	(2) nine, if the readjustment zone is a municipality
269	269	or county with a population of 250,000 or more.
270	270	SECTION 16. Section 2310.307, Government Code, is amended
271	271	to read as follows:
272	272	Sec. 2310.307. ALLOCATION OF JOBS ELIGIBLE FOR TAX REFUND.
273	273	(a) The [When the bank designates a business as a defense
274	274	readjustment project, the] bank shall allocate to a defense
275	275	readjustment [the] project the maximum number of new permanent jobs
276	276	or retained jobs eligible based on the amount of capital investment
277	277	made in the project, the project's designation level, and the
278	278	refund per job with a maximum refund to be included in a computation
279	279	of a tax refund for the project.
280	280	(b) A capital investment in a project of:
281	281	(1) $40,000 to $399,999 will result in a refund of up
282	282	to $2,500 per job with a maximum refund of $25,000 for the creation
283	283	or retention of 10 jobs;
284	284	(2) $400,000 to $999,999 will result in a refund of up
285	285	to $2,500 per job with a maximum refund of $62,500 for the creation
286	286	or retention of 25 jobs;
287	287	(3) $1,000,000 to $4,999,999 will result in a refund
288	288	of up to $2,500 per job with a maximum refund of $312,500 for the
289	289	creation or retention of 125 jobs;
290	290	(4) $5,000,000 or more will result in a refund of up to
291	291	$2,500 per job with a maximum refund of $1,250,000 for the creation
292	292	or retention of 500 jobs, except as provided by Subdivision (5) or
293	293	(6);
294	294	(5) $150,000,000 to $249,999,999 will result in a
295	295	refund of up to $5,000 per new permanent job with a maximum refund
296	296	of $2,500,000 for the creation of 500 new permanent jobs if the bank
297	297	designates the project as a double jumbo defense readjustment
298	298	project; or
299	299	(6) $250,000,000 or more will result in a refund of up
300	300	to $7,500 per new permanent job with a maximum refund of $3,750,000
301	301	for the creation of at least 500 new permanent jobs if the bank
302	302	designates the project as a triple jumbo defense readjustment
303	303	project.
304	304	(c) A defense readjustment project for which a commitment
305	305	for a capital investment in the range amount and the creation of the
306	306	number of new permanent jobs specified by Subsection (b)(5) is made
307	307	is considered a double jumbo defense readjustment project if the
308	308	project is so designated by the bank.
309	309	(d) A defense readjustment project for which a commitment
310	310	for a capital investment in the range amount and the creation of the
311	311	number of new permanent jobs specified by Subsection (b)(6) is made
312	312	is considered a triple jumbo defense readjustment project if the
313	313	project is so designated by the bank. [The number may not exceed
314	314	500 or a number equal to 110 percent of the number of anticipated
315	315	new permanent jobs or retained jobs specified in the application
316	316	for designation of the business as a defense readjustment project
317	317	under Section 2310.305, whichever is less.]
318	318	SECTION 17. Subchapter E, Chapter 2310, Government Code, is
319	319	amended by adding Section 2310.3071 to read as follows:
320	320	Sec. 2310.3071. MAXIMUM TAX REFUND. (a) In this section,
321	321	"double jumbo defense readjustment project" and "triple jumbo
322	322	defense readjustment project" have the meanings assigned by Section
323	323	2310.307.
324	324	(b) A defense readjustment project is eligible for a maximum
325	325	refund of $250,000 in each state fiscal year.
326	326	(c) A double jumbo defense readjustment project is eligible
327	327	for a maximum refund of $500,000 in each state fiscal year.
328	328	(d) A triple jumbo defense readjustment project is eligible
329	329	for a maximum refund of $750,000 in each state fiscal year.
330	330	SECTION 18. Section 2310.405(a), Government Code, is
331	331	amended to read as follows:
332	332	(a) To encourage economic [the] development in the
333	333	municipality [of areas designated as readjustment zones], the
334	334	governing body of a municipality designated as a readjustment zone
335	335	under this chapter, through a program, may refund its local sales
336	336	and use taxes paid by a qualified business on all taxable items
337	337	purchased for use at the qualified business site related to the
338	338	project or activity[:
339	339	[(1) the purchase, lease, or rental of equipment or
340	340	machinery for use in a readjustment zone;
341	341	[(2) the purchase of material for use in remodeling,
342	342	rehabilitating, or constructing a structure in a readjustment zone;
343	343	[(3) labor for remodeling, rehabilitating, or
344	344	constructing a structure in a readjustment zone; and
345	345	[(4) electricity and natural gas purchased and
346	346	consumed in the normal course of business in the readjustment
347	347	zone].
348	348	SECTION 19. Section 2310.409, Government Code, is amended
349	349	to read as follows:
350	350	Sec. 2310.409. OTHER LOCAL INCENTIVES. (a) The governing
351	351	body of a municipality or county that is the governing body of a
352	352	readjustment zone may:
353	353	(1) defer compliance in the zone with the subdivision
354	354	and development ordinances or rules, other than those relating to
355	355	streets and roads or sewer or water services, of the municipality or
356	356	county, as appropriate;
357	357	(2) [give priority to the zone for the receipt of:
358	358	[(A) community development block grant money;
359	359	[(B) industrial revenue bonds; or
360	360	[(C) funds received for job training;
361	361	[(3) adopt and implement a plan for police protection
362	362	in the zone;
363	363	[(4)] amend the zoning ordinances of the municipality
364	364	or county, as appropriate, to promote economic development in the
365	365	zone;
366	366	(3) [(5)] establish permitting preferences for
367	367	businesses in the zone;
368	368	(4) [(6)] establish simplified, accelerated, or other
369	369	special permit procedures for businesses in the zone;
370	370	(5) [(7)] waive development fees for projects in the
371	371	zone;
372	372	(6) [(8)] create a local readjustment zone fund for
373	373	funding bonds or other programs or activities to develop or
374	374	revitalize the zone;
375	375	(7) [(9)] for qualified businesses in the zone, reduce
376	376	rates charged by:
377	377	(A) a utility owned by the municipality or
378	378	county, as appropriate; or
379	379	(B) a cooperative corporation or utility owned by
380	380	private investors, subject to the requirements of Subsection (b);
381	381	(8) [(10)] in issuing housing finance bonds, give
382	382	priority to persons or projects in the zone;
383	383	(9) [(11)] in providing services, give priority to
384	384	local economic development, educational, job training, or
385	385	transportation programs that benefit the zone; or
386	386	(10) [(12)] sell real property owned by the
387	387	municipality or county, as appropriate, and located in the
388	388	readjustment zone in accordance with Section 2310.410.
389	389	(b) A reduction in utility rates under Subsection (a)(7)(B)
390	390	[(a)(9)(B)] is subject to the agreement of the affected utility and
391	391	the approval of the appropriate regulatory authority under Title 2,
392	392	Utilities Code. The rates may be reduced up to but not more than
393	393	five percent below the lowest rate allowable for that customer
394	394	class. In making its determination under this section, the
395	395	regulatory authority shall consider revitalization goals for the
396	396	readjustment zone. In setting the rates of the utility the
397	397	appropriate regulatory authority shall allow the utility to recover
398	398	the amount of the reduction.
399	399	SECTION 20. Section 151.4291, Tax Code, is amended by
400	400	amending Subsections (a), (b), (c), and (e) and adding Subsection
401	401	(i) to read as follows:
402	402	(a) A defense readjustment project is eligible for a refund
403	403	in the amount provided by this section of the taxes imposed by this
404	404	chapter on purchases of all taxable items purchased for use at the
405	405	qualified business site related to the project or activity[:
406	406	[(1) equipment or machinery sold to a defense
407	407	readjustment project for use in a readjustment zone;
408	408	[(2) building materials sold to a defense readjustment
409	409	project for use in remodeling, rehabilitating, or constructing a
410	410	structure in a readjustment zone;
411	411	[(3) labor for remodeling, rehabilitating, or
412	412	constructing a structure by a defense readjustment project in a
413	413	readjustment zone; and
414	414	[(4) electricity and natural gas purchased and
415	415	consumed in the normal course of business in the readjustment
416	416	zone].
417	417	(b) Subject to the limitations provided by Subsection (c)
418	418	[of this section], a defense readjustment project qualifies for a
419	419	refund of taxes under this section based on the amount of capital
420	420	investment made at the qualified business site, the project's
421	421	designation level, and the refund per job with a maximum refund to
422	422	be included in a computation of a tax refund for the project. A
423	423	capital investment at the qualified business site of:
424	424	(1) $40,000 to $399,999 will result in a refund of up
425	425	to $2,500 per job with a maximum refund of $25,000 for the creation
426	426	or retention of 10 jobs;
427	427	(2) $400,000 to $999,999 will result in a refund of up
428	428	to $2,500 per job with a maximum refund of $62,500 for the creation
429	429	or retention of 25 jobs;
430	430	(3) $1,000,000 to $4,999,999 will result in a refund
431	431	of up to $2,500 per job with a maximum refund of $312,500 for the
432	432	creation or retention of 125 jobs;
433	433	(4) $5,000,000 or more will result in a refund of up to
434	434	$2,500 per job with a maximum refund of $1,250,000 for the creation
435	435	or retention of 500 jobs, except as provided by Subdivision (5) or
436	436	(6);
437	437	(5) $150,000,000 to $249,999,999 will result in a
438	438	refund of up to $5,000 per new permanent job with a maximum refund
439	439	of $2,500,000 for the creation of 500 new permanent jobs if the
440	440	Texas Economic Development Bank designates the project as a double
441	441	jumbo defense readjustment project; or
442	442	(6) $250,000,000 or more will result in a refund of up
443	443	to $7,500 per new permanent job with a maximum refund of $3,750,000
444	444	for the creation of at least 500 new permanent jobs if the Texas
445	445	Economic Development Bank designates the project as a triple jumbo
446	446	defense readjustment project [of $2,500 for each new permanent job
447	447	or job that has been retained by the defense readjustment project
448	448	for a qualified employee].
449	449	(c) The total amount of tax refund that a defense
450	450	readjustment project may apply for in a state fiscal year may not
451	451	exceed $250,000, at not more than $2,500 per job. The total amount
452	452	of tax refund that a double jumbo defense readjustment project may
453	453	apply for in a state fiscal year may not exceed $500,000, at not
454	454	more than $5,000 per new permanent job. The total amount of tax
455	455	refund that a triple jumbo defense readjustment project may apply
456	456	for in a state fiscal year may not exceed $750,000, at not more than
457	457	$7,500 per new permanent job. If a defense readjustment project,
458	458	double jumbo defense readjustment project, or triple jumbo defense
459	459	readjustment project qualifies in a state fiscal year for a refund
460	460	of taxes in an amount in excess of the applicable limitation
461	461	provided by this subsection, it may apply for a refund of those
462	462	taxes in a subsequent year, subject to the applicable limitation
463	463	for each year. The total amount that may be refunded to:
464	464	(1) a defense readjustment project under this section
465	465	may not exceed the amount determined by multiplying $250,000 by the
466	466	number of state fiscal years during which the defense readjustment
467	467	project created or retained one or more jobs for qualified
468	468	employees;
469	469	(2) a double jumbo defense readjustment project under
470	470	this section may not exceed the amount determined by multiplying
471	471	$500,000 by the number of state fiscal years during which the double
472	472	jumbo defense readjustment project created one or more new
473	473	permanent jobs for qualified employees; or
474	474	(3) a triple jumbo defense readjustment project under
475	475	this section may not exceed the amount determined by multiplying
476	476	$750,000 by the number of state fiscal years during which the triple
477	477	jumbo defense readjustment project created one or more new
478	478	permanent jobs for qualified employees. [If a defense readjustment
479	479	project qualifies in a state fiscal year for a refund of taxes in an
480	480	amount in excess of the limitation provided by this subsection, it
481	481	may apply for a refund of those taxes in a subsequent year, subject
482	482	to the $250,000 limitation for each year. However, a defense
483	483	readjustment project may not apply for a refund under this section
484	484	after the end of the state fiscal year immediately following the
485	485	state fiscal year in which the defense readjustment project's
486	486	designation as a defense readjustment project expires or is
487	487	removed. The total amount that may be refunded to a defense
488	488	readjustment project under this section may not exceed the amount
489	489	determined by multiplying $250,000 by the number of state fiscal
490	490	years during which the defense readjustment project created one or
491	491	more jobs for qualified employees.]
492	492	(e) In this section:
493	493	(1) "Defense readjustment project" means a person
494	494	designated by the Texas Economic Development Bank as a defense
495	495	readjustment project under Chapter 2310, Government Code.
496	496	(2) "Readjustment zone" and "qualified employee" have
497	497	the meanings assigned to those terms by Section 2310.001,
498	498	Government Code.
499	499	(3) "New permanent job" means a new employment
500	500	position created by a qualified business as described by Section
501	501	2310.302, Government Code, that:
502	502	(A) has provided at least 1,820 hours of
503	503	employment a year to a qualified employee; and
504	504	(B) is intended to exist during the period that
505	505	the qualified business is designated as a defense readjustment
506	506	project under Chapter 2310, Government Code.
507	507	(4) "Retained job" has the meaning assigned by Section
508	508	2310.301, Government Code.
509	509	(5) "Double jumbo defense readjustment project" and
510	510	"triple jumbo defense readjustment project" have the meanings
511	511	assigned by Section 2310.307, Government Code.
512	512	(i) As provided by Subsection (c), a double jumbo defense
513	513	readjustment project is eligible for a maximum refund of $500,000
514	514	and a triple jumbo defense readjustment project is eligible for a
515	515	maximum refund of $750,000 in each state fiscal year.
516	516	SECTION 21. Sections 2310.001(4), 2310.053(d), 2310.103,
517	517	2310.104, 2310.105, 2310.106, 2310.107, 2310.108, 2310.110, and
518	518	2310.407, Government Code, are repealed.
519	519	SECTION 22. The changes in law made by this Act to Chapter
520	520	2310, Government Code, apply only to an application for a
521	521	designation of a project or activity under the defense economic
522	522	readjustment zone program under Chapter 2310, Government Code, as
523	523	amended by this Act, that is filed on or after the effective date of
524	524	this Act. An application for designation of a project or activity
525	525	under the defense economic readjustment zone program that is filed
526	526	before the effective date of this Act is governed by the law in
527	527	effect on the date the application was filed, and the former law is
528	528	continued in effect for that purpose.
529	529	SECTION 23. The changes in law made by this Act to Section
530	530	151.4291, Tax Code, apply only to an application for a tax refund
531	531	made on or after the effective date of this Act. An application for
532	532	a tax refund made before the effective date of this Act is governed
533	533	by the law in effect on the date the application was made, and the
534	534	former law is continued in effect for that purpose.
535	535	SECTION 24. This Act takes effect September 1, 2017.