Texas 2023 - 88th Regular

Texas Senate Bill SB1211 Compare Versions

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1	1	By: Blanco S.B. No. 1211
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to defense economic readjustment zones.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. This Act shall be known as the Texas Defense,
9	9	Aerospace, and Manufacturing Jobs Act.
10	10	SECTION 2. Section 2310.001, Government Code, is amended by
11	11	amending Subdivision (7) and adding Subdivision (8) to read as
12	12	follows:
13	13	(7) "Readjustment zone" means a municipality or county
14	14	[an area] designated as a defense economic readjustment zone under
15	15	this chapter.
16	16	(8) "Veteran" has the meaning assigned by Section
17	17	2308.251.
18	18	SECTION 3. Section 2310.002, Government Code, is amended to
19	19	read as follows:
20	20	Sec. 2310.002. JURISDICTION OF MUNICIPALITY OR COUNTY. (a)
21	21	For the purposes of this chapter, territory in the extraterritorial
22	22	jurisdiction of a municipality is considered to be in the
23	23	jurisdiction of the municipality.
24	24	(b) Notwithstanding Subsection (a):
25	25	(1) the governing body of a county may apply to the
26	26	bank for designation as a defense readjustment project a project or
27	27	activity of a qualified business that is located within the
28	28	jurisdiction of a municipality located in the county;
29	29	(2) the governing body of a municipality may apply to
30	30	the bank for designation as a defense readjustment project a
31	31	project or activity of a qualified business that is located within
32	32	the jurisdiction of the municipality; or
33	33	(3) the governing body of a county may apply to the
34	34	bank for designation as a defense readjustment project a project or
35	35	activity of a qualified business that is located in an
36	36	unincorporated area within the jurisdiction of the county.
37	37	(c) Before a county makes an application as provided by
38	38	Subsection (b)(1), the applying county must enter into an
39	39	interlocal agreement with the municipality that has jurisdiction of
40	40	the territory in which the project or activity described by
41	41	Subsection (b)(1) will be located. The interlocal agreement must
42	42	specify that either the applying county or the municipality that
43	43	has jurisdiction of the territory in which the project or activity
44	44	described by Subsection (b)(1) will be located is the governmental
45	45	body having administration authority under Section 2310.201 and
46	46	that both the applying county and municipality approve the
47	47	application. For purposes of this subsection, a county during any
48	48	biennium may use the maximum number of designations the county is
49	49	permitted under Section 2310.306(e) within the territory described
50	50	by this subsection.
51	51	SECTION 4. Section 2310.051(b), Government Code, is amended
52	52	to read as follows:
53	53	(b) The bank shall establish criteria and procedures [for
54	54	designating a qualified area as a readjustment zone and] for
55	55	designating a defense readjustment project.
56	56	SECTION 5. Section 2310.101, Government Code, is amended to
57	57	read as follows:
58	58	Sec. 2310.101. [CRITERIA FOR] READJUSTMENT ZONE
59	59	DESIGNATION. (a) A municipality or county automatically qualifies
60	60	for designation [To be designated] as a readjustment zone if the
61	61	municipality or county is a defense-dependent community as
62	62	described by Section 2310.102 or has established a spaceport
63	63	development corporation in the municipality or county [an area
64	64	must:
65	65	[(1) have a continuous boundary;
66	66	[(2) be at least one square mile but not larger than 20
67	67	square miles, excluding lakes, waterways, and transportation
68	68	arteries, of the municipality, county, or combination of
69	69	municipalities or counties nominating the area as a readjustment
70	70	zone;
71	71	[(3) be located in an adversely affected
72	72	defense-dependent community;
73	73	[(4) have at least 50 percent of its area located in an
74	74	existing or former United States Department of Defense facility;
75	75	and
76	76	[(5) be nominated as a readjustment zone by an
77	77	ordinance or order adopted by the nominating body].
78	78	(b) A municipality or county designated as [An area is not
79	79	prohibited from being included in] a readjustment zone under this
80	80	section is not prohibited from having an area of the municipality or
81	81	county [because the area is] also included in an enterprise zone
82	82	designated under Chapter 2303.
83	83	SECTION 6. Section 2310.102, Government Code, is amended to
84	84	read as follows:
85	85	Sec. 2310.102. [ADVERSELY AFFECTED] DEFENSE-DEPENDENT
86	86	COMMUNITY. A municipality or county is a [an adversely affected]
87	87	defense-dependent community if, as applicable, the municipality or
88	88	county encompasses any part of a federally owned or operated
89	89	military installation or mission that is functioning on or after
90	90	May 19, 1997 [the bank determines that:
91	91	[(1) the municipality or county requires assistance
92	92	because of:
93	93	[(A) the proposed or actual establishment,
94	94	realignment, or closure of a defense facility;
95	95	[(B) the cancellation or termination of a United
96	96	States Department of Defense contract or the failure of the
97	97	department of defense to proceed with an approved major weapon
98	98	system program;
99	99	[(C) a publicly announced planned major
100	100	reduction in department of defense spending that would directly and
101	101	adversely affect the municipality or county; or
102	102	[(D) the closure or a significant reduction of
103	103	the operations of a defense facility as the result of a merger,
104	104	acquisition, or consolidation of a defense contractor operating the
105	105	facility; and
106	106	[(2) the municipality or county is expected to
107	107	experience, during the period between the beginning of the federal
108	108	fiscal year during which an event described by Subdivision (1) is
109	109	finally approved and the date that the event is to be substantially
110	110	completed, a direct loss of:
111	111	[(A) 2,500 or more defense worker jobs in any
112	112	area of the municipality or county that is located in an urbanized
113	113	area of a metropolitan statistical area;
114	114	[(B) 1,000 or more defense worker jobs in any
115	115	area of the municipality or county that is not located in an
116	116	urbanized area of a metropolitan statistical area; or
117	117	[(C) one percent of the civilian jobs in the
118	118	municipality or county].
119	119	SECTION 7. Section 2310.109, Government Code, is amended to
120	120	read as follows:
121	121	Sec. 2310.109. PERIOD OF DESIGNATION. A [An area may be
122	122	designated as a] readjustment zone [for a maximum of seven years.
123	123	A] designation remains in effect indefinitely so long as the
124	124	municipality or county, as applicable, continues to qualify for
125	125	designation as a readjustment zone under this chapter [until
126	126	September 1 of the final year of the designation].
127	127	SECTION 8. Section 2310.111(a), Government Code, is amended
128	128	to read as follows:
129	129	(a) The bank may remove the designation of an area
130	130	designated as a readjustment zone before September 1, 2023, if:
131	131	(1) the area no longer meets the criteria for
132	132	designation under this chapter, as this chapter existed on January
133	133	1, 2023, or by rule of the office adopted under this chapter before
134	134	September 1, 2023; or
135	135	(2) the bank determines that the governing body of the
136	136	readjustment zone has not complied with commitments made in the
137	137	ordinance or order nominating the area as a readjustment zone
138	138	before September 1, 2023.
139	139	SECTION 9. Section 2310.201, Government Code, is amended to
140	140	read as follows:
141	141	Sec. 2310.201. ADMINISTRATION BY GOVERNING BODY. (a) The
142	142	governing body of a readjustment zone is the governing body of the
143	143	municipality or county[, or the governing bodies of the combination
144	144	of municipalities or counties, that applied to have the area]
145	145	designated as a readjustment zone.
146	146	(b) The governing body with administration authority over a
147	147	defense readjustment project for which a designation is sought
148	148	under Section 2310.002(b)(1) is determined under the terms of an
149	149	interlocal agreement required by Section 2310.002(c).
150	150	(c) The governing body with administrative authority over a
151	151	defense readjustment project for which a designation is sought
152	152	under Section 2310.002(b)(2) or (3) is the governing body of the
153	153	municipality or county, as applicable, applying to the bank for
154	154	that designation.
155	155	SECTION 10. Section 2310.204(c), Government Code, is
156	156	amended to read as follows:
157	157	(c) The report must include for the year preceding the date
158	158	of the report:
159	159	(1) a list of local incentives for community
160	160	development available in the zone;
161	161	(2) the use of local incentives [for which the
162	162	governing body provided in the ordinance or order nominating the
163	163	readjustment zone] and the effect of those incentives on revenue;
164	164	(3) the number of businesses assisted, located, and
165	165	retained in the zone since its designation due to the existence of
166	166	the readjustment zone;
167	167	(4) a summary of all industrial revenue bonds issued
168	168	to finance projects located in the zone; and
169	169	(5) a description of all efforts made to attain
170	170	revitalization goals for the zone.
171	171	SECTION 11. Section 2310.301, Government Code, is amended
172	172	to read as follows:
173	173	Sec. 2310.301. DEFINITIONS [DEFINITION]. In this
174	174	subchapter:
175	175	(1) "New[, "new] permanent job" means a new employment
176	176	position created by a qualified business as described by Section
177	177	2310.302 that:
178	178	(A) [(1)] has provided at least 1,820 hours of
179	179	employment a year to a qualified employee; and
180	180	(B) [(2)] is intended to exist during the period
181	181	that the qualified business is designated as a defense readjustment
182	182	project under Section 2310.306.
183	183	(2) "Retained job" means a job that:
184	184	(A) existed with a qualified business on the 91st
185	185	day before the date the business's project or activity is
186	186	designated as a defense readjustment project;
187	187	(B) has provided and will continue to provide
188	188	employment to a qualified employee of at least 1,820 hours a year;
189	189	and
190	190	(C) will be or has been an employment position
191	191	for the longer of:
192	192	(i) the duration of the project's
193	193	designation period; or
194	194	(ii) three years after the expiration date
195	195	of the claim period for receipt of a state benefit authorized by
196	196	this chapter.
197	197	SECTION 12. Section 2310.302(a), Government Code, is
198	198	amended to read as follows:
199	199	(a) A person is a qualified business if the bank, for the
200	200	purpose of state benefits under this chapter, or the governing body
201	201	of a readjustment zone, for the purpose of local benefits,
202	202	certifies that:
203	203	(1) the person is engaged in or has provided
204	204	substantial commitment to initiate the active conduct of a trade or
205	205	business in the readjustment zone; [and]
206	206	(2) at least 50 [25] percent of the person's [new]
207	207	employees in the readjustment zone are:
208	208	(A) residents of the governing jurisdiction;
209	209	(B) economically disadvantaged individuals, as
210	210	defined by Section 2303.402(c); [or]
211	211	(C) dislocated defense workers; or
212	212	(D) veterans; and
213	213	(3) the person:
214	214	(A) either:
215	215	(i) has a United States Department of
216	216	Defense contract; or
217	217	(ii) as determined by the Texas Military
218	218	Preparedness Commission:
219	219	(a) furthers the mission of the
220	220	readjustment zone's military installation; or
221	221	(b) adds military value to the
222	222	readjustment zone's military installation or community; or
223	223	(B) is related to the defense, aerospace, or
224	224	advanced manufacturing industry.
225	225	SECTION 13. Section 2310.303, Government Code, is amended
226	226	to read as follows:
227	227	Sec. 2310.303. PROHIBITION ON QUALIFIED BUSINESS
228	228	CERTIFICATION; LIMIT ON DEFENSE READJUSTMENT PROJECT DESIGNATIONS.
229	229	If the bank determines that the governing body of a readjustment
230	230	zone is not complying with this chapter, the bank shall prohibit the
231	231	certification of a qualified business in the zone until the bank
232	232	determines that the governing body is complying with this chapter.
233	233	The bank may not designate more than 21 [two] defense readjustment
234	234	projects during any biennium [in a single readjustment zone].
235	235	SECTION 14. Section 2310.305(b), Government Code, is
236	236	amended to read as follows:
237	237	(b) An application must:
238	238	(1) describe the procedures and efforts of the
239	239	governmental entity or entities [that applied to have the area
240	240	designated as a readjustment zone] to facilitate and encourage
241	241	participation by and negotiation among affected entities in the
242	242	zone in which the qualified business is located;
243	243	(2) contain an economic analysis of the plans of the
244	244	qualified business for expansion, revitalization, or other
245	245	activity in the readjustment zone, including:
246	246	(A) the number of anticipated new permanent jobs
247	247	the business will create during the designation period presented in
248	248	the form of a tabular listing of:
249	249	(i) the classification titles of those
250	250	jobs; and
251	251	(ii) the number of jobs and salary range for
252	252	each classification title;
253	253	(B) the anticipated number of permanent jobs the
254	254	business will retain during the designation period presented in the
255	255	form of a tabular listing of:
256	256	(i) the classification titles of those
257	257	jobs; and
258	258	(ii) the number of jobs and salary range for
259	259	each classification title;
260	260	(C) the amount of investment to be made in the
261	261	zone; [and]
262	262	(D) other information the bank requires;
263	263	(E) the number of employment positions in
264	264	existence at the qualified business site on the 91st day before the
265	265	application deadline; and
266	266	(F) if the application is for a double or triple
267	267	jumbo defense readjustment project, as defined by Section 2310.307,
268	268	an indication of which level of designation is being sought; and
269	269	(3) describe the local effort made by the governmental
270	270	entity or entities [that applied to have the area designated as a
271	271	readjustment zone], the administrative authority, if one exists,
272	272	the qualified business, and other affected entities to develop and
273	273	revitalize the zone.
274	274	SECTION 15. Section 2310.306, Government Code, is amended
275	275	by amending Subsection (a) and adding Subsections (d-1), (e), (f),
276	276	and (g) to read as follows:
277	277	(a) The bank may designate a qualified business as a defense
278	278	readjustment project only if [the bank determines that]:
279	279	(1) the bank determines that:
280	280	(A) the business is a qualified business under
281	281	Section 2310.302 that is located in or has made a substantial
282	282	commitment to locate in a defense readjustment zone;
283	283	(B) [(2)] the governing body of the readjustment
284	284	zone making the application has demonstrated that a high level of
285	285	cooperation exists among public, private, and neighborhood
286	286	entities in the zone; and
287	287	(C) [(3)] the designation will contribute
288	288	significantly to the achievement of the plans of the governing body
289	289	making the application for development and revitalization of the
290	290	zone; or
291	291	(2) if the qualified business is seeking job retention
292	292	benefits, the business has clearly demonstrated that:
293	293	(A) the permanent employees of the business will
294	294	be permanently laid off;
295	295	(B) the business will close down permanently;
296	296	(C) the business will relocate out of state;
297	297	(D) the business is able to employ individuals in
298	298	accordance with Section 2310.302; or
299	299	(E) the business facility has been legitimately
300	300	destroyed or substantially impaired because of fire, flood,
301	301	tornado, hurricane, or any other natural disaster and that at least
302	302	60 percent of the capital investment is being spent to repair
303	303	damages resulting from the disaster.
304	304	(d-1) The office may not designate multiple concurrent
305	305	defense readjustment projects to a qualified business located in a
306	306	readjustment zone.
307	307	(e) Subject to Subsection (f), the maximum number of defense
308	308	readjustment projects that the bank may designate for each
309	309	readjustment zone during any biennium is:
310	310	(1) one, if the readjustment zone is a municipality or
311	311	county with a population of less than 500,000; or
312	312	(2) three, if the readjustment zone is a municipality
313	313	or county with a population of 500,000 or more.
314	314	(f) The bank may only designate a maximum number of three
315	315	defense readjustment projects in one county during any biennium,
316	316	which includes a designated defense readjustment project in a
317	317	municipality in the county, regardless of whether the governing
318	318	body of the county or a municipality in the county applied for the
319	319	designation.
320	320	(g) An approved designation as a double jumbo defense
321	321	readjustment project, as defined by Section 2310.307, counts as two
322	322	project designations against both the bank for purposes of
323	323	Subsections (e) and (f) and the number of defense readjustment
324	324	project designations allowed statewide per biennium under Section
325	325	2310.303. An approved designation as a triple jumbo defense
326	326	readjustment project, as defined by Section 2310.307, counts as
327	327	three project designations against both the bank for purposes of
328	328	Subsections (e) and (f) and the number of defense readjustment
329	329	project designations allowed statewide per biennium under Section
330	330	2310.303.
331	331	SECTION 16. Section 2310.307, Government Code, is amended
332	332	to read as follows:
333	333	Sec. 2310.307. ALLOCATION OF JOBS ELIGIBLE FOR TAX REFUND.
334	334	(a) The [When the bank designates a business as a defense
335	335	readjustment project, the] bank shall allocate to a defense
336	336	readjustment [the] project the maximum number of new permanent jobs
337	337	or retained jobs eligible based on the amount of capital investment
338	338	made in the project, the project's designation level, and the
339	339	refund per job with a maximum refund to be included in a computation
340	340	of a tax refund for the project.
341	341	(b) A capital investment in a project of:
342	342	(1) $1,000,000 to $4,999,999.99 will result in a
343	343	refund of up to $2,500 per job with a maximum refund of $312,500 for
344	344	the creation or retention of 150 jobs;
345	345	(2) $5,000,000 or more will result in a refund of up to
346	346	$2,500 per job with a maximum refund of $1,250,000 for the creation
347	347	or retention of 500 jobs, except as provided by Subdivision (3) or
348	348	(4);
349	349	(3) $150,000,000 to $249,999,999.99 will result in a
350	350	refund of up to $5,000 per new permanent job with a maximum refund
351	351	of $2,500,000 for the creation of 500 new permanent jobs if the bank
352	352	designates the project as a double jumbo defense readjustment
353	353	project; or
354	354	(4) $250,000,000 or more will result in a refund of up
355	355	to $7,500 per new permanent job with a maximum refund of $3,750,000
356	356	for the creation of at least 500 new permanent jobs if the bank
357	357	designates the project as a triple jumbo defense readjustment
358	358	project.
359	359	(c) A defense readjustment project for which a commitment
360	360	for a capital investment in the range amount and the creation of the
361	361	number of new permanent jobs specified by Subsection (b)(3) is made
362	362	is considered a "double jumbo defense readjustment project" if the
363	363	project is so designated by the bank.
364	364	(d) A defense readjustment project for which a commitment
365	365	for a capital investment in the range amount and the creation of the
366	366	number of new permanent jobs specified by Subsection (b)(4) is made
367	367	is considered a "triple jumbo defense readjustment project" if the
368	368	project is so designated by the bank. [The number may not exceed 500
369	369	or a number equal to 110 percent of the number of anticipated new
370	370	permanent jobs or retained jobs specified in the application for
371	371	designation of the business as a defense readjustment project under
372	372	Section 2310.305, whichever is less.]
373	373	SECTION 17. Subchapter E, Chapter 2310, Government Code, is
374	374	amended by adding Section 2310.3071 to read as follows:
375	375	Sec. 2310.3071. MAXIMUM TAX REFUND. (a) In this section,
376	376	"double jumbo defense readjustment project" and "triple jumbo
377	377	defense readjustment project" have the meanings assigned by Section
378	378	2310.307.
379	379	(b) A defense readjustment project is eligible for a maximum
380	380	refund of $250,000 in each state fiscal year.
381	381	(c) A double jumbo defense readjustment project is eligible
382	382	for a maximum refund of $500,000 in each state fiscal year.
383	383	(d) A triple jumbo defense readjustment project is eligible
384	384	for a maximum refund of $750,000 in each state fiscal year.
385	385	SECTION 18. Section 2310.308, Government Code, is amended
386	386	to read as follows:
387	387	Sec. 2310.308. DURATION OF CERTAIN DESIGNATIONS. (a) The
388	388	bank's designation of a qualified business as a defense
389	389	readjustment project is effective until the fifth anniversary of
390	390	the date on which the designation is made regardless of whether the
391	391	readjustment zone in which the project is located expires before
392	392	the fifth anniversary of the project.
393	393	(b) The bank may not designate a qualified business as a
394	394	defense readjustment project for more than two consecutive
395	395	designation periods described by Subsection (a).
396	396	SECTION 19. Section 2310.405(a), Government Code, is
397	397	amended to read as follows:
398	398	(a) To encourage economic [the] development in the
399	399	municipality [of areas designated as readjustment zones], the
400	400	governing body of a municipality designated as a readjustment zone
401	401	under this chapter, through a program, may refund its local sales
402	402	and use taxes paid by a qualified business on all taxable items
403	403	purchased for use at the qualified business site related to the
404	404	project or activity[:
405	405	[(1) the purchase, lease, or rental of equipment or
406	406	machinery for use in a readjustment zone;
407	407	[(2) the purchase of material for use in remodeling,
408	408	rehabilitating, or constructing a structure in a readjustment zone;
409	409	[(3) labor for remodeling, rehabilitating, or
410	410	constructing a structure in a readjustment zone; and
411	411	[(4) electricity and natural gas purchased and
412	412	consumed in the normal course of business in the readjustment
413	413	zone].
414	414	SECTION 20. Section 2310.409, Government Code, is amended
415	415	to read as follows:
416	416	Sec. 2310.409. OTHER LOCAL INCENTIVES. (a) The governing
417	417	body of a municipality or county that is the governing body of a
418	418	readjustment zone may:
419	419	(1) defer compliance in the zone with the subdivision
420	420	and development ordinances or rules, other than those relating to
421	421	streets and roads or sewer or water services, of the municipality or
422	422	county, as appropriate;
423	423	(2) [give priority to the zone for the receipt of:
424	424	[(A) community development block grant money;
425	425	[(B) industrial revenue bonds; or
426	426	[(C) funds received for job training;
427	427	[(3) adopt and implement a plan for police protection
428	428	in the zone;
429	429	[(4)] amend the zoning ordinances of the municipality
430	430	or county, as appropriate, to promote economic development in the
431	431	zone;
432	432	(3) [(5)] establish permitting preferences for
433	433	businesses in the zone;
434	434	(4) [(6)] establish simplified, accelerated, or other
435	435	special permit procedures for businesses in the zone;
436	436	(5) [(7)] waive development fees for projects in the
437	437	zone;
438	438	(6) [(8)] create a local readjustment zone fund for
439	439	funding bonds or other programs or activities to develop or
440	440	revitalize the zone;
441	441	(7) [(9)] for qualified businesses in the zone, reduce
442	442	rates charged by:
443	443	(A) a utility owned by the municipality or
444	444	county, as appropriate; or
445	445	(B) a cooperative corporation or utility owned by
446	446	private investors, subject to the requirements of Subsection (b);
447	447	(8) [(10)] in issuing housing finance bonds, give
448	448	priority to persons or projects in the zone;
449	449	(9) [(11)] in providing services, give priority to
450	450	local economic development, educational, job training, or
451	451	transportation programs that benefit the zone; or
452	452	(10) [(12)] sell real property owned by the
453	453	municipality or county, as appropriate, and located in the
454	454	readjustment zone in accordance with Section 2310.410.
455	455	(b) A reduction in utility rates under Subsection (a)(7)(B)
456	456	[(a)(9)(B)] is subject to the agreement of the affected utility and
457	457	the approval of the appropriate regulatory authority under Title 2,
458	458	Utilities Code. The rates may be reduced up to but not more than
459	459	five percent below the lowest rate allowable for that customer
460	460	class. In making its determination under this section, the
461	461	regulatory authority shall consider revitalization goals for the
462	462	readjustment zone. In setting the rates of the utility the
463	463	appropriate regulatory authority shall allow the utility to recover
464	464	the amount of the reduction.
465	465	SECTION 21. Section 151.4291, Tax Code, is amended by
466	466	amending Subsections (a), (b), (c), and (e) and adding Subsection
467	467	(i) to read as follows:
468	468	(a) A defense readjustment project is eligible for a refund
469	469	in the amount provided by this section of the taxes imposed by this
470	470	chapter on purchases of all taxable items purchased for use at the
471	471	qualified business site related to the project or activity[:
472	472	[(1) equipment or machinery sold to a defense
473	473	readjustment project for use in a readjustment zone;
474	474	[(2) building materials sold to a defense readjustment
475	475	project for use in remodeling, rehabilitating, or constructing a
476	476	structure in a readjustment zone;
477	477	[(3) labor for remodeling, rehabilitating, or
478	478	constructing a structure by a defense readjustment project in a
479	479	readjustment zone; and
480	480	[(4) electricity and natural gas purchased and
481	481	consumed in the normal course of business in the readjustment
482	482	zone].
483	483	(b) Subject to the limitations provided by Subsection (c)
484	484	[of this section], a defense readjustment project qualifies for a
485	485	refund of taxes under this section based on the amount of capital
486	486	investment made at the qualified business site, the project's
487	487	designation level, and the refund per job with a maximum refund to
488	488	be included in a computation of a tax refund for the project. A
489	489	capital investment at the qualified business site of:
490	490	(1) $1,000,000 to $4,999,999.99 will result in a
491	491	refund of up to $2,500 per job with a maximum refund of $312,500 for
492	492	the creation or retention of 150 jobs;
493	493	(2) $5,000,000 or more will result in a refund of up to
494	494	$2,500 per job with a maximum refund of $1,250,000 for the creation
495	495	or retention of 500 jobs, except as provided by Subdivision (3) or
496	496	(4);
497	497	(3) $150,000,000 to $249,999,999.99 will result in a
498	498	refund of up to $5,000 per new permanent job with a maximum refund
499	499	of $2,500,000 for the creation of 500 new permanent jobs if the
500	500	Texas Economic Development Bank designates the project as a double
501	501	jumbo defense readjustment project; or
502	502	(4) $250,000,000 or more will result in a refund of up
503	503	to $7,500 per new permanent job with a maximum refund of $3,750,000
504	504	for the creation of at least 500 new permanent jobs if the Texas
505	505	Economic Development Bank designates the project as a triple jumbo
506	506	defense readjustment project [of $2,500 for each new permanent job
507	507	or job that has been retained by the defense readjustment project
508	508	for a qualified employee].
509	509	(c) The total amount of tax refund that a defense
510	510	readjustment project may apply for in a state fiscal year may not
511	511	exceed $250,000, at not more than $2,500 per job. The total amount
512	512	of tax refund that a double jumbo defense readjustment project may
513	513	apply for in a state fiscal year may not exceed $500,000, at not
514	514	more than $5,000 per new permanent job. The total amount of tax
515	515	refund that a triple jumbo defense readjustment project may apply
516	516	for in a state fiscal year may not exceed $750,000, at not more than
517	517	$7,500 per new permanent job. If a defense readjustment project,
518	518	double jumbo defense readjustment project, or triple jumbo defense
519	519	readjustment project qualifies in a state fiscal year for a refund
520	520	of taxes in an amount in excess of the applicable limitation
521	521	provided by this subsection, it may apply for a refund of those
522	522	taxes in a subsequent year, subject to the applicable limitation
523	523	for each year. The total amount that may be refunded to:
524	524	(1) a defense readjustment project under this section
525	525	may not exceed the amount determined by multiplying $250,000 by the
526	526	number of state fiscal years during which the defense readjustment
527	527	project created or retained one or more jobs for qualified
528	528	employees;
529	529	(2) a double jumbo defense readjustment project under
530	530	this section may not exceed the amount determined by multiplying
531	531	$500,000 by the number of state fiscal years during which the double
532	532	jumbo defense readjustment project created one or more new
533	533	permanent jobs for qualified employees; or
534	534	(3) a triple jumbo defense readjustment project under
535	535	this section may not exceed the amount determined by multiplying
536	536	$750,000 by the number of state fiscal years during which the triple
537	537	jumbo defense readjustment project created one or more new
538	538	permanent jobs for qualified employees. [If a defense readjustment
539	539	project qualifies in a state fiscal year for a refund of taxes in an
540	540	amount in excess of the limitation provided by this subsection, it
541	541	may apply for a refund of those taxes in a subsequent year, subject
542	542	to the $250,000 limitation for each year. However, a defense
543	543	readjustment project may not apply for a refund under this section
544	544	after the end of the state fiscal year immediately following the
545	545	state fiscal year in which the defense readjustment project's
546	546	designation as a defense readjustment project expires or is
547	547	removed. The total amount that may be refunded to a defense
548	548	readjustment project under this section may not exceed the amount
549	549	determined by multiplying $250,000 by the number of state fiscal
550	550	years during which the defense readjustment project created one or
551	551	more jobs for qualified employees.]
552	552	(e) In this section:
553	553	(1) "Defense readjustment project" means a person
554	554	designated by the Texas Economic Development Bank as a defense
555	555	readjustment project under Chapter 2310, Government Code.
556	556	(2) "Readjustment zone" and "qualified employee" have
557	557	the meanings assigned to those terms by Section 2310.001,
558	558	Government Code.
559	559	(3) "New permanent job" means a new employment
560	560	position created by a qualified business as described by Section
561	561	2310.302, Government Code, that:
562	562	(A) has provided at least 1,820 hours of
563	563	employment a year to a qualified employee; and
564	564	(B) is intended to exist during the period that
565	565	the qualified business is designated as a defense readjustment
566	566	project under Chapter 2310, Government Code.
567	567	(4) "Retained job" has the meaning assigned by Section
568	568	2310.301, Government Code.
569	569	(5) "Double jumbo defense readjustment project" and
570	570	"triple jumbo defense readjustment project" have the meanings
571	571	assigned by Section 2310.307, Government Code.
572	572	(i) As provided by Subsection (c), a double jumbo defense
573	573	readjustment project is eligible for a maximum refund of $500,000
574	574	and a triple jumbo defense readjustment project is eligible for a
575	575	maximum refund of $750,000 in each state fiscal year.
576	576	SECTION 22. The following provisions of the Government Code
577	577	are repealed:
578	578	(1) Section 2310.001(4);
579	579	(2) Section 2310.053(d);
580	580	(3) Section 2310.103;
581	581	(4) Section 2310.104;
582	582	(5) Section 2310.105;
583	583	(6) Section 2310.106;
584	584	(7) Section 2310.107;
585	585	(8) Section 2310.108;
586	586	(9) Section 2310.110; and
587	587	(10) Section 2310.407.
588	588	SECTION 23. The changes in law made by this Act to Chapter
589	589	2310, Government Code, apply only to an application for a
590	590	designation of a project or activity under the defense economic
591	591	readjustment zone program under Chapter 2310, Government Code, as
592	592	amended by this Act, that is filed on or after the effective date of
593	593	this Act. An application for designation of a project or activity
594	594	under the defense economic readjustment zone program that is filed
595	595	before the effective date of this Act is governed by the law in
596	596	effect on the date the application was filed, and the former law is
597	597	continued in effect for that purpose.
598	598	SECTION 24. The changes in law made by this Act to Section
599	599	151.4291, Tax Code, apply only to an application for a tax refund
600	600	made on or after the effective date of this Act. An application for
601	601	a tax refund made before the effective date of this Act is governed
602	602	by the law in effect on the date the application was made, and the
603	603	former law is continued in effect for that purpose.
604	604	SECTION 25. The comptroller of public accounts is required
605	605	to implement the changes in law made by this Act only if the
606	606	legislature appropriates money specifically for that purpose. If
607	607	the legislature does not appropriate money specifically for that
608	608	purpose, the comptroller may, but is not required to, implement
609	609	this Act using other appropriations available for that purpose.
610	610	SECTION 26. This Act takes effect September 1, 2023.