| 1 | 1 | | 86R5624 CLG-F |
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| 2 | 2 | | By: Hinojosa S.B. No. 1841 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to certain requirements for designation as a qualified |
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| 8 | 8 | | business under the enterprise zone program. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 2303.401, Government Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | Sec. 2303.401. DEFINITIONS. In this subchapter: |
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| 13 | 13 | | (1) "New permanent job" means any [a] new employment |
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| 14 | 14 | | position, regardless of title, that: |
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| 15 | 15 | | (A) is created by a qualified business as |
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| 16 | 16 | | described by Section 2303.402 at the qualified business site not |
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| 17 | 17 | | earlier than the 90th day before the date the business's project or |
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| 18 | 18 | | activity is designated as an enterprise project under this chapter; |
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| 19 | 19 | | (B) will provide or has provided for the duration |
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| 20 | 20 | | of the project's designation period at least 1,820 hours of |
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| 21 | 21 | | employment a year to a qualified employee; and |
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| 22 | 22 | | (C) will exist or has existed at the qualified |
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| 23 | 23 | | business site for [the longer of]: |
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| 24 | 24 | | (i) the duration of the project's |
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| 25 | 25 | | designation period; or |
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| 26 | 26 | | (ii) three years after the date on which a |
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| 27 | 27 | | state benefit is received as authorized by this chapter. |
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| 28 | 28 | | (2) "Retained job" means any employment position, |
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| 29 | 29 | | regardless of title, [a job] that: |
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| 30 | 30 | | (A) existed with a qualified business on the 91st |
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| 31 | 31 | | day before the date the business's project or activity is |
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| 32 | 32 | | designated as an enterprise project; |
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| 33 | 33 | | (B) has provided and will continue to provide |
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| 34 | 34 | | employment to a qualified employee of at least 1,820 hours |
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| 35 | 35 | | annually; and |
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| 36 | 36 | | (C) will be or has been an employment position |
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| 37 | 37 | | for [the longer of]: |
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| 38 | 38 | | (i) the duration of the project's |
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| 39 | 39 | | designation period; or |
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| 40 | 40 | | (ii) three years after the expiration date |
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| 41 | 41 | | of the claim period for receipt of a state benefit authorized by |
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| 42 | 42 | | this chapter. |
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| 43 | 43 | | SECTION 2. Section 2303.402(a), Government Code, is amended |
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| 44 | 44 | | to read as follows: |
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| 45 | 45 | | (a) A person is a qualified business if the bank, for the |
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| 46 | 46 | | purpose of state benefits under this chapter, or the nominating |
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| 47 | 47 | | body of a project or activity of the person under this chapter, for |
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| 48 | 48 | | the purpose of local incentives, certifies that: |
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| 49 | 49 | | (1) the person is engaged in or has provided |
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| 50 | 50 | | substantial commitment to initiate the active conduct of a trade or |
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| 51 | 51 | | business in an enterprise zone, and at least 25 percent of the |
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| 52 | 52 | | person's new permanent jobs in the enterprise zone are held by: |
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| 53 | 53 | | (A) residents of any enterprise zone in this |
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| 54 | 54 | | state; |
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| 55 | 55 | | (B) economically disadvantaged individuals; [or] |
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| 56 | 56 | | (C) veterans; or |
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| 57 | 57 | | (D) residents of any area in this state |
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| 58 | 58 | | designated by the federal government as an opportunity zone; or |
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| 59 | 59 | | (2) the person is engaged in or has provided |
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| 60 | 60 | | substantial commitment to initiate the active conduct of a trade or |
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| 61 | 61 | | business in an area of this state that does not qualify as an |
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| 62 | 62 | | enterprise zone, and at least 35 percent of the person's new |
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| 63 | 63 | | permanent jobs at the qualified business site are held by: |
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| 64 | 64 | | (A) residents of any enterprise zone in this |
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| 65 | 65 | | state; |
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| 66 | 66 | | (B) individuals who are economically |
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| 67 | 67 | | disadvantaged; [or] |
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| 68 | 68 | | (C) veterans; or |
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| 69 | 69 | | (D) residents of any area in this state |
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| 70 | 70 | | designated by the federal government as an opportunity zone. |
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| 71 | 71 | | SECTION 3. The changes in law made by this Act apply only to |
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| 72 | 72 | | an application for an enterprise project designation under the |
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| 73 | 73 | | enterprise zone program established under Chapter 2303, Government |
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| 74 | 74 | | Code, as amended by this Act, that is submitted on or after the |
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| 75 | 75 | | effective date of this Act. An application for an enterprise |
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| 76 | 76 | | project designation under the enterprise zone program that is |
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| 77 | 77 | | submitted before the effective date of this Act is governed by the |
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| 78 | 78 | | law in effect on the date the application was submitted, and the |
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| 79 | 79 | | former law is continued in effect for that purpose. |
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| 80 | 80 | | SECTION 4. This Act takes effect September 1, 2019. |
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