| 1 | 1 | | 88R7854 SRA-F |
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| 2 | 2 | | By: Birdwell S.B. No. 1688 |
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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 requirements for a qualified business participating in |
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| 8 | 8 | | the enterprise zone program during a certain period. |
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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. Subchapter F, Chapter 2303, Government Code, is |
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| 11 | 11 | | amended by adding Section 2303.499 to read as follows: |
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| 12 | 12 | | Sec. 2303.499. CERTAIN REQUIREMENTS WAIVED DURING COVID |
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| 13 | 13 | | RELIEF PERIOD. (a) In this section, "COVID relief period" means |
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| 14 | 14 | | the period beginning March 1, 2020, and ending December 31, 2021. |
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| 15 | 15 | | (b) Notwithstanding Section 2303.003(7)(C) or any other |
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| 16 | 16 | | law, the requirement that an employee perform at least 50 percent of |
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| 17 | 17 | | the person's service for the business at the qualified business |
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| 18 | 18 | | site to be a "qualified employee" is waived for an annual |
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| 19 | 19 | | certification or job retention period that includes the COVID |
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| 20 | 20 | | relief period. |
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| 21 | 21 | | (c) A qualified business in compliance with this chapter |
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| 22 | 22 | | before the COVID relief period that is eligible for a waiver under |
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| 23 | 23 | | Subsection (b) may elect to withdraw its project or activity from |
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| 24 | 24 | | designation as an enterprise project by December 31, 2023. A |
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| 25 | 25 | | qualified business that withdraws its enterprise project |
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| 26 | 26 | | designation under this subsection is considered eligible for any |
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| 27 | 27 | | refund of state taxes under Section 2303.504 approved for the COVID |
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| 28 | 28 | | relief period, notwithstanding the requirements for meeting the |
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| 29 | 29 | | definition of a new permanent job under Section 2303.401(1)(C) or a |
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| 30 | 30 | | retained job under Section 2303.401(2)(C). |
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| 31 | 31 | | (d) This section expires December 31, 2030. |
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| 32 | 32 | | SECTION 2. Section 151.429, Tax Code, is amended by adding |
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| 33 | 33 | | Subsection (g-1) to read as follows: |
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| 34 | 34 | | (g-1) The comptroller shall waive the requirements of |
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| 35 | 35 | | Subsection (g) for a qualified business that did not meet the |
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| 36 | 36 | | requirement that a qualified employee perform at least 50 percent |
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| 37 | 37 | | of the person's service for the business at the qualified business |
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| 38 | 38 | | site, as defined by Section 2303.003, at any time during the period |
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| 39 | 39 | | beginning March 1, 2020, and ending December 31, 2021. This |
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| 40 | 40 | | subsection expires December 31, 2030. |
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| 41 | 41 | | SECTION 3. Section 2303.499, Government Code, and Section |
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| 42 | 42 | | 151.429(g-1), Tax Code, as added by this Act, apply to any audit by |
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| 43 | 43 | | the comptroller of whether an enterprise project is eligible for a |
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| 44 | 44 | | tax refund under Section 151.429, Tax Code, that is not finally |
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| 45 | 45 | | completed before the effective date of this Act. |
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| 46 | 46 | | SECTION 4. This Act takes effect immediately if it receives |
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| 47 | 47 | | a vote of two-thirds of all the members elected to each house, as |
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| 48 | 48 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 49 | 49 | | Act does not receive the vote necessary for immediate effect, this |
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| 50 | 50 | | Act takes effect September 1, 2023. |
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