Texas 2019 - 86th Regular

Texas House Bill HB390 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	86R17252 GRM-D
1	2		By: Blanco, Frullo, Lozano, Sheffield, H.B. No. 390
2	3		Nevárez
	4	+	Substitute the following for H.B. No. 390:
	5	+	By: Romero, Jr. C.S.H.B. No. 390
3	6
4	7
5	8		A BILL TO BE ENTITLED
6	9		AN ACT
7	10		relating to defense economic readjustment zones.
8	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	12		SECTION 1. Section 2310.001, Government Code, is amended by
10	13		amending Subdivision (7) and adding Subdivision (8) to read as
11	14		follows:
12	15		(7) "Readjustment zone" means a municipality or county
13	16		[an area] designated as a defense economic readjustment zone under
14	17		this chapter.
15	18		(8) "Veteran" has the meaning assigned by Section
16	19		2308.251.
17	20		SECTION 2. Section 2310.002, Government Code, is amended to
18	21		read as follows:
19	22		Sec. 2310.002. JURISDICTION OF MUNICIPALITY. (a) For the
20	23		purposes of this chapter, territory in the extraterritorial
21	24		jurisdiction of a municipality is considered to be in the
22	25		jurisdiction of the municipality.
23	26		(b) Notwithstanding Subsection (a), the governing body of a
24	27		county may apply to the bank for designation as a defense
25	28		readjustment project a project or activity of a qualified business
26	29		that is located within the jurisdiction of a municipality located
27	30		in the county.
28	31		(c) Before a county makes an application as provided by
29	32		Subsection (b), the applying county must enter into an interlocal
30	33		agreement with the municipality that has jurisdiction of the
31	34		territory in which the project or activity described by Subsection
32	35		(b) will be located. The interlocal agreement must specify that
33	36		either the applying county or the municipality that has
34	37		jurisdiction of the territory in which the project or activity
35	38		described by Subsection (b) will be located is the governmental
36	39		body having administration authority under Section 2310.201 and
37	40		that both the applying county and municipality approve the
38	41		application. For purposes of this subsection, a county during any
39	42		biennium may use the maximum number of designations the county is
40	43		permitted under Section 2310.306(e) within the territory described
41	44		by this subsection.
42	45		SECTION 3. Section 2310.051(b), Government Code, is amended
43	46		to read as follows:
44	47		(b) The bank shall establish criteria and procedures [for
45	48		designating a qualified area as a readjustment zone and] for
46	49		designating a defense readjustment project.
47	50		SECTION 4. Section 2310.052(b), Government Code, is amended
48	51		to read as follows:
49	52		(b) The bank must include the following information
50	53		regarding the defense readjustment zone program in the report
51	54		required by Section 489.107 [On or before December 1 of each year,
52	55		the office shall submit to the governor, the legislature, and the
53	56		Legislative Budget Board a report that]:
54	57		(1) an evaluation of [evaluates] the effectiveness of
55	58		the readjustment zone program;
56	59		(2) a description of [describes] the use of state and
57	60		local incentives under this chapter and their effect on revenue;
58	61		and
59	62		(3) suggestions for [suggests] legislation for the
60	63		program, as appropriate.
61	64		SECTION 5. Section 2310.101, Government Code, is amended to
62	65		read as follows:
63	66		Sec. 2310.101. [CRITERIA FOR] READJUSTMENT ZONE
64	67		DESIGNATION. (a) A municipality or county automatically qualifies
65	68		for designation [To be designated] as a readjustment zone if the
66	69		municipality or county is a defense-dependent community as
67	70		described by Section 2310.102 [an area must:
68	71		[(1) have a continuous boundary;
69	72		[(2) be at least one square mile but not larger than 20
70	73		square miles, excluding lakes, waterways, and transportation
71	74		arteries, of the municipality, county, or combination of
72	75		municipalities or counties nominating the area as a readjustment
73	76		zone;
74	77		[(3) be located in an adversely affected
75	78		defense-dependent community;
76	79		[(4) have at least 50 percent of its area located in an
77	80		existing or former United States Department of Defense facility;
78	81		and
79	82		[(5) be nominated as a readjustment zone by an
80	83		ordinance or order adopted by the nominating body].
81	84		(b) A municipality or county designated as [An area is not
82	85		prohibited from being included in] a readjustment zone under this
83	86		section is not prohibited from having an area of the municipality or
84	87		county [because the area is] also included in an enterprise zone
85	88		designated under Chapter 2303.
86	89		SECTION 6. Section 2310.102, Government Code, is amended to
87	90		read as follows:
88	91		Sec. 2310.102. [ADVERSELY AFFECTED] DEFENSE-DEPENDENT
89	92		COMMUNITY. A municipality or county is a [an adversely affected]
90	93		defense-dependent community if, as applicable, the municipality or
91	94		county encompasses any part of a federally owned or operated
92	95		military installation, facility, or mission that is functioning on
93	96		May 19, 1997 [the bank determines that:
94	97		[(1) the municipality or county requires assistance
95	98		because of:
96	99		[(A) the proposed or actual establishment,
97	100		realignment, or closure of a defense facility;
98	101		[(B) the cancellation or termination of a United
99	102		States Department of Defense contract or the failure of the
100	103		department of defense to proceed with an approved major weapon
101	104		system program;
102	105		[(C) a publicly announced planned major
103	106		reduction in department of defense spending that would directly and
104	107		adversely affect the municipality or county; or
105	108		[(D) the closure or a significant reduction of
106	109		the operations of a defense facility as the result of a merger,
107	110		acquisition, or consolidation of a defense contractor operating the
108	111		facility; and
109	112		[(2) the municipality or county is expected to
110	113		experience, during the period between the beginning of the federal
111	114		fiscal year during which an event described by Subdivision (1) is
112	115		finally approved and the date that the event is to be substantially
113	116		completed, a direct loss of:
114	117		[(A) 2,500 or more defense worker jobs in any
115	118		area of the municipality or county that is located in an urbanized
116	119		area of a metropolitan statistical area;
117	120		[(B) 1,000 or more defense worker jobs in any
118	121		area of the municipality or county that is not located in an
119	122		urbanized area of a metropolitan statistical area; or
120	123		[(C) one percent of the civilian jobs in the
121	124		municipality or county].
122	125		SECTION 7. Section 2310.109, Government Code, is amended to
123	126		read as follows:
124	127		Sec. 2310.109. PERIOD OF DESIGNATION. A [An area may be
125	128		designated as a] readjustment zone [for a maximum of seven years.
126	129		A] designation remains in effect indefinitely so long as the
127	130		municipality or county, as applicable, continues to qualify for
128	131		designation as a readjustment zone under this chapter [until
129	132		September 1 of the final year of the designation].
130	133		SECTION 8. Section 2310.111(a), Government Code, is amended
131	134		to read as follows:
132	135		(a) The bank may remove the designation of an area
133	136		designated as a readjustment zone before September 1, 2019, if:
134	137		(1) the area no longer meets the criteria for
135	138		designation under this chapter, as this chapter existed on January
136	139		1, 2019, or by rule of the office adopted under this chapter before
137	140		September 1, 2019; or
138	141		(2) the bank determines that the governing body of the
139	142		readjustment zone has not complied with commitments made in the
140	143		ordinance or order nominating the area as a readjustment zone
141	144		before September 1, 2019.
142	145		SECTION 9. Section 2310.201, Government Code, is amended to
143	146		read as follows:
144	147		Sec. 2310.201. ADMINISTRATION BY GOVERNING BODY. (a) The
145	148		governing body of a readjustment zone is the governing body of the
146	149		municipality or county[, or the governing bodies of the combination
147	150		of municipalities or counties, that applied to have the area]
148	151		designated as a readjustment zone.
149	152		(b) The governing body with administration authority over a
150	153		defense readjustment project for which a designation is sought
151	154		under Section 2310.002(c) is determined under the terms of an
152	155		interlocal agreement required by that subsection.
153	156		SECTION 10. Section 2310.204(c), Government Code, is
154	157		amended to read as follows:
155	158		(c) The report must include for the year preceding the date
156	159		of the report:
157	160		(1) a list of local incentives for community
158	161		development available in the zone;
159	162		(2) the use of local incentives [for which the
160	163		governing body provided in the ordinance or order nominating the
161	164		readjustment zone] and the effect of those incentives on revenue;
162	165		(3) the number of businesses assisted, located, and
163	166		retained in the zone since its designation due to the existence of
164	167		the readjustment zone;
165	168		(4) a summary of all industrial revenue bonds issued
166	169		to finance projects located in the zone; and
167	170		(5) a description of all efforts made to attain
168	171		revitalization goals for the zone.
169	172		SECTION 11. Section 2310.301, Government Code, is amended
170	173		to read as follows:
171	174		Sec. 2310.301. DEFINITIONS [DEFINITION]. In this
172	175		subchapter:
173	176		(1) "New [, "new] permanent job" means a new
174	177		employment position created by a qualified business as described by
175	178		Section 2310.302 that:
176	179		(A) [(1)] has provided at least 1,820 hours of
177	180		employment a year to a qualified employee; and
178	181		(B) [(2)] is intended to exist during the period
179	182		that the qualified business is designated as a defense readjustment
180	183		project under Section 2310.306.
181	184		(2) "Retained job" means a job that:
182	185		(A) existed with a qualified business on the 91st
183	186		day before the date the business's project or activity is
184	187		designated as a defense readjustment project;
185	188		(B) has provided and will continue to provide
186	189		employment to a qualified employee of at least 1,820 hours
187	190		annually; and
188	191		(C) will be or has been an employment position
189	192		for the longer of:
190	193		(i) the duration of the project's
191	194		designation period; or
192	195		(ii) three years after the expiration date
193	196		of the claim period for receipt of a state benefit authorized by
194	197		this chapter.
195	198		SECTION 12. Section 2310.302(a), Government Code, is
196	199		amended to read as follows:
197	200		(a) A person is a qualified business if the bank, for the
198	201		purpose of state benefits under this chapter, or the governing body
199	202		of a readjustment zone, for the purpose of local benefits,
200	203		certifies that:
201	204		(1) the person is engaged in or has provided
202	205		substantial commitment to initiate the active conduct of a trade or
203	206		business in the readjustment zone; and
204	207		(2) at least 25 percent of the person's new employees
205	208		in the readjustment zone are:
206	209		(A) residents of the governing jurisdiction;
207	210		(B) economically disadvantaged individuals, as
208	211		defined by Section 2303.402(c); [or]
209	212		(C) dislocated defense workers; or
210	213		(D) veterans.
211	214		SECTION 13. Section 2310.303, Government Code, is amended
212	215		to read as follows:
213	216		Sec. 2310.303. PROHIBITION ON QUALIFIED BUSINESS
214	217		CERTIFICATION. If the bank determines that the governing body of a
215	218		readjustment zone is not complying with this chapter, the bank
216	219		shall prohibit the certification of a qualified business in the
217	220		zone until the bank determines that the governing body is complying
218	221		with this chapter. [The bank may not designate more than two defense
219	222		readjustment projects in a single readjustment zone.]
220	223		SECTION 14. Section 2310.305(b), Government Code, is
221	224		amended to read as follows:
222	225		(b) An application must:
223	226		(1) describe the procedures and efforts of the
224	227		governmental entity or entities [that applied to have the area
225	228		designated as a readjustment zone] to facilitate and encourage
226	229		participation by and negotiation among affected entities in the
227	230		zone in which the qualified business is located;
228	231		(2) contain an economic analysis of the plans of the
229	232		qualified business for expansion, revitalization, or other
230	233		activity in the readjustment zone, including:
231	234		(A) the number of anticipated new permanent jobs
232	235		the business will create during the designation period presented in
233	236		the form of a tabular listing of:
234	237		(i) the classification titles of those
235	238		jobs; and
236	239		(ii) the number of jobs and salary range for
237	240		each classification title;
238	241		(B) the anticipated number of permanent jobs the
239	242		business will retain during the designation period presented in the
240	243		form of a tabular listing of:
241	244		(i) the classification titles of those
242	245		jobs; and
243	246		(ii) the number of jobs and salary range for
244	247		each classification title;
245	248		(C) the amount of investment to be made in the
246	249		zone; [and]
247	250		(D) other information the bank requires;
248	251		(E) the number of employment positions in
249	252		existence at the qualified business site on the 91st day before the
250	253		application deadline; and
251	254		(F) if the application is for a double or triple
252	255		jumbo defense adjustment project, as defined by Section 2310.307,
253	256		an indication of which level of designation is being sought; and
254	257		(3) describe the local effort made by the governmental
255	258		entity or entities [that applied to have the area designated as a
256	259		readjustment zone], the administrative authority, if one exists,
257	260		the qualified business, and other affected entities to develop and
258	261		revitalize the zone.
259	262		SECTION 15. Section 2310.306, Government Code, is amended
260		-	by amending Subsection (a) and adding Subsection (e) to read as
261		-	follows:
262		-	(a) The bank may designate a qualified business as a defense
263		-	readjustment project only if [the bank determines that]:
264		-	(1) the bank determines that the business is a
265		-	qualified business under Section 2310.302 that is located in or has
266		-	made a substantial commitment to locate in a defense readjustment
267		-	zone;
268		-	(2) the bank determines that the governing body of the
269		-	readjustment zone making the application has demonstrated that a
270		-	high level of cooperation exists among public, private, and
271		-	neighborhood entities in the zone; [and]
272		-	(3) the bank determines that the designation will
273		-	contribute significantly to the achievement of the plans of the
274		-	governing body making the application for development and
275		-	revitalization of the zone; and
276		-	(4) the comptroller determines that revenue to the
277		-	state from the project will be greater than the sales and use tax
278		-	refund to the qualified business under Section 151.4291, Tax Code.
	263	+	by adding Subsection (e) to read as follows:
279	264		(e) The maximum number of defense readjustment projects
280	265		that the bank may designate for each readjustment zone during any
281	266		biennium is:
282	267		(1) six, if the readjustment zone is a municipality or
283	268		county with a population of less than 250,000; or
284	269		(2) nine, if the readjustment zone is a municipality
285	270		or county with a population of 250,000 or more.
286	271		SECTION 16. Section 2310.307, Government Code, is amended
287	272		to read as follows:
288	273		Sec. 2310.307. ALLOCATION OF JOBS ELIGIBLE FOR TAX REFUND.
289	274		(a) The [When the bank designates a business as a defense
290	275		readjustment project, the] bank shall allocate to a defense
291	276		readjustment [the] project the maximum number of new permanent jobs
292	277		or retained jobs eligible based on the amount of capital investment
293	278		made in the project, the project's designation level, and the
294	279		refund per job with a maximum refund to be included in a computation
295	280		of a tax refund for the project.
296	281		(b) A capital investment in a project of:
297	282		(1) $40,000 to $399,999 will result in a refund of up
298	283		to $2,500 per job with a maximum refund of $25,000 for the creation
299	284		or retention of 10 jobs;
300	285		(2) $400,000 to $999,999 will result in a refund of up
301	286		to $2,500 per job with a maximum refund of $62,500 for the creation
302	287		or retention of 25 jobs;
303	288		(3) $1,000,000 to $4,999,999 will result in a refund
304	289		of up to $2,500 per job with a maximum refund of $312,500 for the
305	290		creation or retention of 125 jobs;
306	291		(4) $5,000,000 or more will result in a refund of up to
307	292		$2,500 per job with a maximum refund of $1,250,000 for the creation
308	293		or retention of 500 jobs, except as provided by Subdivision (5) or
309	294		(6);
310	295		(5) $150,000,000 to $249,999,999 will result in a
311	296		refund of up to $5,000 per new permanent job with a maximum refund
312	297		of $2,500,000 for the creation of 500 new permanent jobs if the bank
313	298		designates the project as a double jumbo defense readjustment
314	299		project; or
315	300		(6) $250,000,000 or more will result in a refund of up
316	301		to $7,500 per new permanent job with a maximum refund of $3,750,000
317	302		for the creation of at least 500 new permanent jobs if the bank
318	303		designates the project as a triple jumbo defense readjustment
319	304		project.
320	305		(c) A defense readjustment project for which a commitment
321	306		for a capital investment in the range amount and the creation of the
322	307		number of new permanent jobs specified by Subsection (b)(5) is made
323	308		is considered a "double jumbo defense readjustment project" if the
324	309		project is so designated by the bank.
325	310		(d) A defense readjustment project for which a commitment
326	311		for a capital investment in the range amount and the creation of the
327	312		number of new permanent jobs specified by Subsection (b)(6) is made
328	313		is considered a "triple jumbo defense readjustment project" if the
329	314		project is so designated by the bank. [The number may not exceed
330	315		500 or a number equal to 110 percent of the number of anticipated
331	316		new permanent jobs or retained jobs specified in the application
332	317		for designation of the business as a defense readjustment project
333	318		under Section 2310.305, whichever is less.]
334	319		SECTION 17. Subchapter E, Chapter 2310, Government Code, is
335	320		amended by adding Section 2310.3071 to read as follows:
336	321		Sec. 2310.3071. MAXIMUM TAX REFUND. (a) In this section,
337	322		"double jumbo defense readjustment project" and "triple jumbo
338	323		defense readjustment project" have the meanings assigned by Section
339	324		2310.307.
340	325		(b) A defense readjustment project is eligible for a maximum
341	326		refund of $250,000 in each state fiscal year.
342	327		(c) A double jumbo defense readjustment project is eligible
343	328		for a maximum refund of $500,000 in each state fiscal year.
344	329		(d) A triple jumbo defense readjustment project is eligible
345	330		for a maximum refund of $750,000 in each state fiscal year.
346	331		SECTION 18. Section 2310.405(a), Government Code, is
347	332		amended to read as follows:
348	333		(a) To encourage economic [the] development in the
349	334		municipality [of areas designated as readjustment zones], the
350	335		governing body of a municipality designated as a readjustment zone
351	336		under this chapter, through a program, may refund its local sales
352	337		and use taxes paid by a qualified business on all taxable items
353	338		purchased for use at the qualified business site related to the
354	339		project or activity[:
355	340		[(1) the purchase, lease, or rental of equipment or
356	341		machinery for use in a readjustment zone;
357	342		[(2) the purchase of material for use in remodeling,
358	343		rehabilitating, or constructing a structure in a readjustment zone;
359	344		[(3) labor for remodeling, rehabilitating, or
360	345		constructing a structure in a readjustment zone; and
361	346		[(4) electricity and natural gas purchased and
362	347		consumed in the normal course of business in the readjustment
363	348		zone].
364	349		SECTION 19. Section 2310.409, Government Code, is amended
365	350		to read as follows:
366	351		Sec. 2310.409. OTHER LOCAL INCENTIVES. (a) The governing
367	352		body of a municipality or county that is the governing body of a
368	353		readjustment zone may:
369	354		(1) defer compliance in the zone with the subdivision
370	355		and development ordinances or rules, other than those relating to
371	356		streets and roads or sewer or water services, of the municipality or
372	357		county, as appropriate;
373	358		(2) [give priority to the zone for the receipt of:
374	359		[(A) community development block grant money;
375	360		[(B) industrial revenue bonds; or
376	361		[(C) funds received for job training;
377	362		[(3) adopt and implement a plan for police protection
378	363		in the zone;
379	364		[(4)] amend the zoning ordinances of the municipality
380	365		or county, as appropriate, to promote economic development in the
381	366		zone;
382	367		(3) [(5)] establish permitting preferences for
383	368		businesses in the zone;
384	369		(4) [(6)] establish simplified, accelerated, or other
385	370		special permit procedures for businesses in the zone;
386	371		(5) [(7)] waive development fees for projects in the
387	372		zone;
388	373		(6) [(8)] create a local readjustment zone fund for
389	374		funding bonds or other programs or activities to develop or
390	375		revitalize the zone;
391	376		(7) [(9)] for qualified businesses in the zone, reduce
392	377		rates charged by:
393	378		(A) a utility owned by the municipality or
394	379		county, as appropriate; or
395	380		(B) a cooperative corporation or utility owned by
396	381		private investors, subject to the requirements of Subsection (b);
397	382		(8) [(10)] in issuing housing finance bonds, give
398	383		priority to persons or projects in the zone;
399	384		(9) [(11)] in providing services, give priority to
400	385		local economic development, educational, job training, or
401	386		transportation programs that benefit the zone; or
402	387		(10) [(12)] sell real property owned by the
403	388		municipality or county, as appropriate, and located in the
404	389		readjustment zone in accordance with Section 2310.410.
405	390		(b) A reduction in utility rates under Subsection (a)(7)(B)
406	391		[(a)(9)(B)] is subject to the agreement of the affected utility and
407	392		the approval of the appropriate regulatory authority under Title 2,
408	393		Utilities Code. The rates may be reduced up to but not more than
409	394		five percent below the lowest rate allowable for that customer
410	395		class. In making its determination under this section, the
411	396		regulatory authority shall consider revitalization goals for the
412	397		readjustment zone. In setting the rates of the utility the
413	398		appropriate regulatory authority shall allow the utility to recover
414	399		the amount of the reduction.
415	400		SECTION 20. Section 151.4291, Tax Code, is amended by
416	401		amending Subsections (a), (b), (c), and (e) and adding Subsection
417	402		(i) to read as follows:
418	403		(a) A defense readjustment project is eligible for a refund
419	404		in the amount provided by this section of the taxes imposed by this
420	405		chapter on purchases of all taxable items purchased for use at the
421	406		qualified business site related to the project or activity[:
422	407		[(1) equipment or machinery sold to a defense
423	408		readjustment project for use in a readjustment zone;
424	409		[(2) building materials sold to a defense readjustment
425	410		project for use in remodeling, rehabilitating, or constructing a
426	411		structure in a readjustment zone;
427	412		[(3) labor for remodeling, rehabilitating, or
428	413		constructing a structure by a defense readjustment project in a
429	414		readjustment zone; and
430	415		[(4) electricity and natural gas purchased and
431	416		consumed in the normal course of business in the readjustment
432	417		zone].
433	418		(b) Subject to the limitations provided by Subsection (c)
434	419		[of this section], a defense readjustment project qualifies for a
435	420		refund of taxes under this section based on the amount of capital
436	421		investment made at the qualified business site, the project's
437	422		designation level, and the refund per job with a maximum refund to
438	423		be included in a computation of a tax refund for the project. A
439	424		capital investment at the qualified business site of:
440	425		(1) $40,000 to $399,999 will result in a refund of up
441	426		to $2,500 per job with a maximum refund of $25,000 for the creation
442	427		or retention of 10 jobs;
443	428		(2) $400,000 to $999,999 will result in a refund of up
444	429		to $2,500 per job with a maximum refund of $62,500 for the creation
445	430		or retention of 25 jobs;
446	431		(3) $1,000,000 to $4,999,999 will result in a refund
447	432		of up to $2,500 per job with a maximum refund of $312,500 for the
448	433		creation or retention of 125 jobs;
449	434		(4) $5,000,000 or more will result in a refund of up to
450	435		$2,500 per job with a maximum refund of $1,250,000 for the creation
451	436		or retention of 500 jobs, except as provided by Subdivision (5) or
452	437		(6);
453	438		(5) $150,000,000 to $249,999,999 will result in a
454	439		refund of up to $5,000 per new permanent job with a maximum refund
455	440		of $2,500,000 for the creation of 500 new permanent jobs if the
456	441		Texas Economic Development Bank designates the project as a double
457	442		jumbo defense readjustment project; or
458	443		(6) $250,000,000 or more will result in a refund of up
459	444		to $7,500 per new permanent job with a maximum refund of $3,750,000
460	445		for the creation of at least 500 new permanent jobs if the Texas
461	446		Economic Development Bank designates the project as a triple jumbo
462	447		defense readjustment project [of $2,500 for each new permanent job
463	448		or job that has been retained by the defense readjustment project
464	449		for a qualified employee].
465	450		(c) The total amount of tax refund that a defense
466	451		readjustment project may apply for in a state fiscal year may not
467	452		exceed $250,000, at not more than $2,500 per job. The total amount
468	453		of tax refund that a double jumbo defense readjustment project may
469	454		apply for in a state fiscal year may not exceed $500,000, at not
470	455		more than $5,000 per new permanent job. The total amount of tax
471	456		refund that a triple jumbo defense readjustment project may apply
472	457		for in a state fiscal year may not exceed $750,000, at not more than
473	458		$7,500 per new permanent job. If a defense readjustment project,
474	459		double jumbo defense readjustment project, or triple jumbo defense
475	460		readjustment project qualifies in a state fiscal year for a refund
476	461		of taxes in an amount in excess of the applicable limitation
477	462		provided by this subsection, it may apply for a refund of those
478	463		taxes in a subsequent year, subject to the applicable limitation
479	464		for each year. The total amount that may be refunded to:
480	465		(1) a defense readjustment project under this section
481	466		may not exceed the amount determined by multiplying $250,000 by the
482	467		number of state fiscal years during which the defense readjustment
483	468		project created or retained one or more jobs for qualified
484	469		employees;
485	470		(2) a double jumbo defense readjustment project under
486	471		this section may not exceed the amount determined by multiplying
487	472		$500,000 by the number of state fiscal years during which the double
488	473		jumbo defense readjustment project created one or more new
489	474		permanent jobs for qualified employees; or
490	475		(3) a triple jumbo defense readjustment project under
491	476		this section may not exceed the amount determined by multiplying
492	477		$750,000 by the number of state fiscal years during which the triple
493	478		jumbo defense readjustment project created one or more new
494	479		permanent jobs for qualified employees. [If a defense readjustment
495	480		project qualifies in a state fiscal year for a refund of taxes in an
496	481		amount in excess of the limitation provided by this subsection, it
497	482		may apply for a refund of those taxes in a subsequent year, subject
498	483		to the $250,000 limitation for each year. However, a defense
499	484		readjustment project may not apply for a refund under this section
500	485		after the end of the state fiscal year immediately following the
501	486		state fiscal year in which the defense readjustment project's
502	487		designation as a defense readjustment project expires or is
503	488		removed. The total amount that may be refunded to a defense
504	489		readjustment project under this section may not exceed the amount
505	490		determined by multiplying $250,000 by the number of state fiscal
506	491		years during which the defense readjustment project created one or
507	492		more jobs for qualified employees.]
508	493		(e) In this section:
509	494		(1) "Defense readjustment project" means a person
510	495		designated by the Texas Economic Development Bank as a defense
511	496		readjustment project under Chapter 2310, Government Code.
512	497		(2) "Readjustment zone" and "qualified employee" have
513	498		the meanings assigned to those terms by Section 2310.001,
514	499		Government Code.
515	500		(3) "New permanent job" means a new employment
516	501		position created by a qualified business as described by Section
517	502		2310.302, Government Code, that:
518	503		(A) has provided at least 1,820 hours of
519	504		employment a year to a qualified employee; and
520	505		(B) is intended to exist during the period that
521	506		the qualified business is designated as a defense readjustment
522	507		project under Chapter 2310, Government Code.
523	508		(4) "Retained job" has the meaning assigned by Section
524	509		2310.301, Government Code.
525	510		(5) "Double jumbo defense readjustment project" and
526	511		"triple jumbo defense readjustment project" have the meanings
527	512		assigned by Section 2310.307, Government Code.
528	513		(i) As provided by Subsection (c), a double jumbo defense
529	514		readjustment project is eligible for a maximum refund of $500,000
530	515		and a triple jumbo defense readjustment project is eligible for a
531	516		maximum refund of $750,000 in each state fiscal year.
532	517		SECTION 21. Sections 2310.001(4), 2310.053(d), 2310.103,
533	518		2310.104, 2310.105, 2310.106, 2310.107, 2310.108, 2310.110, and
534	519		2310.407, Government Code, are repealed.
535	520		SECTION 22. The changes in law made by this Act to Chapter
536	521		2310, Government Code, apply only to an application for a
537	522		designation of a project or activity under the defense economic
538	523		readjustment zone program under Chapter 2310, Government Code, as
539	524		amended by this Act, that is filed on or after the effective date of
540	525		this Act. An application for designation of a project or activity
541	526		under the defense economic readjustment zone program that is filed
542	527		before the effective date of this Act is governed by the law in
543	528		effect on the date the application was filed, and the former law is
544	529		continued in effect for that purpose.
545	530		SECTION 23. The changes in law made by this Act to Section
546	531		151.4291, Tax Code, apply only to an application for a tax refund
547	532		made on or after the effective date of this Act. An application for
548	533		a tax refund made before the effective date of this Act is governed
549	534		by the law in effect on the date the application was made, and the
550	535		former law is continued in effect for that purpose.
551	536		SECTION 24. This Act takes effect September 1, 2019.