By: Hinojosa S.B. No. 1466
A BILL TO BE ENTITLED
AN ACT
relating to the enterprise zone program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2303.003, Government Code, is amended by
amending Subdivision (7) adding Subdivisions (8-a) and (8-b) 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
the person's service for the business pursuant to a qualified
telework arrangement for the qualified business site and resides
within 50 miles of the qualified business site, 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.
(8-a) "Qualified telework" means telework affiliated
with the qualified business site and performed by an employee who is
a resident of this state. The term does not include telework that
occurs out of this state. To be considered qualified telework, a
telework arrangement that requires more than 50 percent of work
time to be completed through telework must be attributed to
circumstances that do not allow the employee to work at least 50
percent of the time at the qualified business site.
(8-b) "Telework" means the performance of services
remotely through the use of email, Internet, and telephone from a
person's residence.
SECTION 2. 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.
(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; or
(D) residents of an area in this state designated
as a qualified opportunity zone under Section 1400Z-1, Internal
Revenue Code of 1986.
SECTION 3. Section 2303.406(h), Government Code, is amended
to read as follows:
(h) A state benefit may not be obtained under this chapter
or Chapter 151, Tax Code, for jobs moved to a qualified business
site from any other business site [from one jurisdiction in this
state to another jurisdiction] in this state.
SECTION 4. Section 2303.4072, Government Code, is amended
to read as follows:
Sec. 2303.4072. ENTERPRISE PROJECT CLAIM FOR STATE BENEFIT.
(a) Except as provided by Subsection (b), a [A] person must make a
claim to the comptroller for a state benefit as prescribed under
this chapter and Chapter 151, Tax Code, not later than 18 months
after the date on which the term of the enterprise project
designation expires as provided by Section 2303.404.
(b) If the enterprise project term designation expired on or
after March 1, 2020, and before March 2, 2021, the person must make
the claim to the comptroller under Subsection (a) not later than 20
months after the date the designation expired. This subsection
expires January 1, 2023.
SECTION 5. 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 certification or retention period that includes any period
beginning March 1, 2020, and ending December 31, 2022, if the
qualified business can show noncompliance was a result of the
COVID-19 pandemic.
(b) This section expires December 31, 2023.
SECTION 6. Section 151.429, Tax Code, is amended by
amending Subsection (g) and adding Subsection (g-1) to read as
follows:
(g) The refund provided by this section is conditioned on
the enterprise project maintaining [at least] the baseline [same]
level of employment of qualified employees as specified by the bank
through the project's expiration [existed at the time it qualified
for a refund for a period of three years from that] date. The
comptroller shall [annually] certify whether that level of
employment of qualified employees has been maintained. On
certifying that the baseline level of employment specified by the
bank [such a level] has not been maintained, the comptroller shall
assess that portion of the refund attributable to any such decrease
in employment, including penalty and interest from the date of the
refund.
(g-1) Notwithstanding Subsection (g), the level of
employment of qualified employees required to be maintained by an
enterprise project is waived for any period that includes any
period beginning March 1, 2020, and ending December 31, 2022, if the
qualified business shows that noncompliance with this requirement
was due to the COVID-19 pandemic. This subsection expires January
1, 2023.
SECTION 7. (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 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 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 a
claim for a state benefit made to the comptroller of public accounts
on or after the effective date of this Act.
SECTION 8. 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.