| 1 | 1 | | 88R21279 SRA-F |
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| 2 | 2 | | By: Button, Craddick, et al. H.B. No. 3374 |
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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 the definition of qualified employee for purposes of |
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| 8 | 8 | | 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 2303.003(7), Government Code, is amended |
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| 11 | 11 | | to read as follows: |
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| 12 | 12 | | (7) "Qualified employee" means a person who: |
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| 13 | 13 | | (A) is a resident of this state; |
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| 14 | 14 | | (B) works for a qualified business; |
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| 15 | 15 | | (C) [(B)] receives wages from the qualified |
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| 16 | 16 | | business from which employment taxes are deducted; and |
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| 17 | 17 | | (D) [(C)] performs at least 50 percent of the |
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| 18 | 18 | | person's service for the business at the qualified business site, |
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| 19 | 19 | | or if the person engages in the transportation of goods or services, |
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| 20 | 20 | | the person reports to the qualified business site and resides |
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| 21 | 21 | | within 50 miles of the qualified business site. |
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| 22 | 22 | | SECTION 2. Subchapter F, Chapter 2303, Government Code, is |
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| 23 | 23 | | amended by adding Section 2303.499 to read as follows: |
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| 24 | 24 | | Sec. 2303.499. CERTAIN REQUIREMENTS WAIVED DURING COVID |
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| 25 | 25 | | RELIEF PERIOD. (a) In this section, "COVID relief period" means |
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| 26 | 26 | | the period beginning March 2, 2020, and ending December 31, 2021. |
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| 27 | 27 | | (b) Notwithstanding Section 2303.003(7)(D), the |
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| 28 | 28 | | requirement that an employee perform at least 50 percent of the |
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| 29 | 29 | | person's service for the business at the qualified business site to |
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| 30 | 30 | | be a "qualified employee" is waived for an enterprise project with a |
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| 31 | 31 | | designation period that includes all or a portion of the COVID |
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| 32 | 32 | | relief period, and the waiver under this subsection extends |
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| 33 | 33 | | throughout the job retention period for those employees. This |
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| 34 | 34 | | subsection applies only with respect to an employee who is a |
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| 35 | 35 | | resident of this state. |
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| 36 | 36 | | (c) This section expires December 31, 2030. |
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| 37 | 37 | | SECTION 3. Section 2303.499, Government Code, as added by |
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| 38 | 38 | | this Act, applies to any audit by the comptroller of whether an |
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| 39 | 39 | | enterprise project is eligible for a tax refund under Section |
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| 40 | 40 | | 151.429, Tax Code, that is not finally completed before the |
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| 41 | 41 | | effective date of this Act. |
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| 42 | 42 | | SECTION 4. This Act takes effect immediately if it receives |
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| 43 | 43 | | a vote of two-thirds of all the members elected to each house, as |
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| 44 | 44 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 45 | 45 | | Act does not receive the vote necessary for immediate effect, this |
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| 46 | 46 | | Act takes effect September 1, 2023. |
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