87R6229 SRA-F
By: Thierry H.B. No. 2964
A BILL TO BE ENTITLED
AN ACT
relating to certain requirements for a qualified business or
enterprise project under the enterprise zone program and to the
definition of qualified employee for purposes of the program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2303.003(7), Government Code, is amended
to read as follows:
(7) "Qualified employee" means a person who:
(A) works for a qualified business;
(B) receives wages from the qualified business
from which employment taxes are deducted; and
(C) performs at least 50 percent of the person's
service for the business at the qualified business site, performs
services for the business pursuant to a telecommute arrangement for
the qualified business site and resides in this state, or if the
person engages in the transportation of goods or services, the
person reports to the qualified business site and resides within 50
miles of the qualified business site.
SECTION 2. Section 2303.401, Government Code, is amended to
read as follows:
Sec. 2303.401. DEFINITIONS. In this subchapter:
(1) "New permanent job" means any [a] new employment
position, regardless of job function, that:
(A) is created by a qualified business as
described by Section 2303.402 at the qualified business site not
earlier than the 90th day before the date the business's project or
activity is designated as an enterprise project under this chapter;
(B) will provide or has provided for the duration
of the project's designation period at least 1,820 hours of
employment a year to a qualified employee; and
(C) will exist or has existed at the qualified
business site for the longer of:
(i) the duration of the project's
designation period; or
(ii) three years after the date on which a
state benefit is received as authorized by this chapter.
(2) "Retained job" means any employment position,
regardless of job function, [a job] that:
(A) existed with a qualified business on the 91st
day before the date the business's project or activity is
designated as an enterprise project;
(B) has provided and will continue to provide
employment to a qualified employee of at least 1,820 hours
annually; and
(C) will be or has been an employment position
for the longer of:
(i) the duration of the project's
designation period; or
(ii) three years after the expiration date
of the claim period for receipt of a state benefit authorized by
this chapter.
SECTION 3. Section 2303.402(a), Government Code, is amended
to read as follows:
(a) A person is a qualified business if the bank, for the
purpose of state benefits under this chapter, or the nominating
body of a project or activity of the person under this chapter, for
the purpose of local incentives, certifies that:
(1) the person is engaged in or has provided
substantial commitment to initiate the active conduct of a trade or
business in an enterprise zone, and at least 25 percent of the
person's new permanent jobs in the enterprise zone are held by:
(A) residents of any enterprise zone in this
state;
(B) economically disadvantaged individuals; [or]
(C) veterans; [or]
(D) residents of an area in this state designated
as a qualified opportunity zone under Section 1400Z-1, Internal
Revenue Code of 1986; or
(E) individuals who are members of a minority
group as defined by Section 2306.6734(c); or
(2) the person is engaged in or has provided
substantial commitment to initiate the active conduct of a trade or
business in an area of this state that does not qualify as an
enterprise zone, and at least 35 percent of the person's new
permanent jobs at the qualified business site are held by:
(A) residents of any enterprise zone in this
state;
(B) individuals who are economically
disadvantaged; [or]
(C) veterans;
(D) residents of an area in this state designated
as a qualified opportunity zone under Section 1400Z-1, Internal
Revenue Code of 1986; or
(E) individuals who are members of a minority
group as defined by Section 2306.6734(c).
SECTION 4. Subchapter F, Chapter 2303, Government Code, is
amended by adding Section 2303.409 to read as follows:
Sec. 2303.409. TEMPORARY WAIVER OF EMPLOYMENT HOURS
REQUIREMENT. (a) Notwithstanding any other provision of law, the
minimum requirement of annual employment hours for a new permanent
job or a retained job as defined by Section 2303.401 is waived for
any annual certification or retention period that includes any
period beginning March 1, 2020, and ending December 31, 2021.
(b) This section expires December 31, 2022.
SECTION 5. Section 151.429, Tax Code, is amended by adding
Subsection (g-1) to read as follows:
(g-1) Notwithstanding Subsection (g), the level of
employment of qualified employees required to be maintained by an
enterprise project is waived for any annual period that includes
any period beginning March 1, 2020, and ending December 31, 2021.
This subsection expires December 31, 2022.
SECTION 6. (a) Except as provided by Subsection (b) of this
section, the changes in law made by this Act apply only to an
application for an enterprise project designation or for a refund
of state taxes as provided by the enterprise zone program
established under Chapter 2303, Government Code, as amended by this
Act, that is submitted on or after the effective date of this Act.
An application for an enterprise project designation or for a state
tax refund as provided by the enterprise zone program that is
submitted before the effective date of this Act is governed by the
law in effect on the date the application was submitted, and the
former law is continued in effect for that purpose.
(b) Section 2303.409, Government Code, as added by this Act,
and Section 151.429(g-1), Tax Code, as added by this Act, apply to
an enterprise project that is under audit or subject to audit by the
comptroller of public accounts on or after the effective date of
this Act.
SECTION 7. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2021.