89R14121 TJB-F
By: Lujan H.B. No. 4022
A BILL TO BE ENTITLED
AN ACT
relating to the Texas Jobs, Energy, Technology, and Innovation Act.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 403.608(b), Government Code, as added by
Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular
Session, 2023, is amended to read as follows:
(b) An economic benefit statement must include the
following information for each year of the period that begins on the
date the applicant projects construction of the proposed project
that is the subject of the application will begin and ends on the
20th [25th] anniversary of the date the incentive period ends:
(1) an estimate of the number of total jobs that will
be created by the project;
(2) an estimate of the total amount of capital
investment that will be created by the project;
(3) an estimate of the increase in appraised value of
property that will be attributable to the project;
(4) an estimate of the amount of ad valorem taxes that
will be imposed by each taxing unit, including the applicable
school district, on the property used as part of the project;
(5) an estimate of the amount of state taxes that will
be paid in connection with the project; and
(6) an estimate of the associated economic benefits
that may reasonably be attributed to the project, including:
(A) the impact on the gross revenues and
employment levels of local businesses that provide goods or
services in connection with the project or to the applicant's
employees;
(B) the amount of state and local taxes that will
be generated as a result of the indirect economic impact of the
project, including all ad valorem taxes not otherwise estimated in
Subdivision (4) that will be imposed on property placed into
service as a result of the project;
(C) the development of complementary businesses
or industries that locate in this state as a direct consequence of
the project;
(D) the total impact of the project on the gross
domestic product of this state;
(E) the total impact of the project on personal
income in this state; and
(F) the total impact of the project on state and
local taxes.
SECTION 2. Section 403.609(b), Government Code, as added by
Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular
Session, 2023, is amended to read as follows:
(b) The comptroller may not recommend an application for
approval unless the comptroller finds that:
(1) the proposed project that is the subject of the
application is an eligible project;
(2) the proposed project is reasonably likely to
generate, before the 20th anniversary of the first day of the
construction period, state or local tax revenue, including ad
valorem tax revenue attributable to the effect of the project on the
economy of this state, in an amount sufficient to offset the school
district maintenance and operations ad valorem tax revenue lost as
a result of the agreement;
(3) for a proposed project other than an electric
generation facility described by Section 403.602(8)(A)(i)(b), the
agreement is a compelling factor in a competitive site selection
determination and that, in the absence of the agreement, the
applicant would not make the proposed investment in this state; and
(4) if the application indicates that the eligible
project is proposed to be located in a qualified opportunity zone,
the project is located in the zone.
SECTION 3. Section 403.611(c), Government Code, as added by
Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular
Session, 2023, is amended to read as follows:
(c) The governing body of the school district must provide
notice of the public hearing in the manner required by Chapter 551,
except that the district must provide the notice not later than the
15th day before the date of the hearing. The governing body must
send a copy of the notice to the comptroller at the time the notice
is provided. The notice must contain:
(1) the name of the applicant;
(2) the name and location of the existing or proposed
reinvestment zone or enterprise zone in which the eligible project
that is the subject of the application is proposed to be located;
(3) a general description of the proposed eligible
project; and
(4) the projected investment the applicant will make
in the project.
SECTION 4. Section 403.612(b), Government Code, as added by
Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular
Session, 2023, is amended to read as follows:
(b) An agreement entered into under this section between the
governor, a school district, and an applicant pertaining to an
eligible project shall:
(1) specify the project to which the agreement
applies;
(2) specify the term of the agreement, which must:
(A) begin on the date the agreement is entered
into; and
(B) end on December 31 of the third tax year
following the end of the incentive period;
(3) specify the construction and incentive periods for
the project;
(4) specify the manner for determining the taxable
value for school district maintenance and operations ad valorem tax
purposes during the incentive period under Section 403.605 for the
eligible property subject to the agreement;
(5) specify the applicable jobs and investment
requirements prescribed by Section 403.604 and require the
applicant to comply with those requirements;
(6) for a project other than an electric generation
facility described by Section 403.602(8)(A)(i)(b), require that
the average annual wage paid to all persons employed by the
applicant in required jobs in connection with the project be not
less than [used to calculate total jobs exceed] 110 percent of the
average annual wage for all jobs in the applicable industry sector
during the most recent four quarters for which data is available, as
computed by the Texas Workforce Commission, with the applicant's
average annual wage being equal to the quotient of:
(A) the applicant's total wages paid to all
persons holding required jobs[, other than wages paid for
construction jobs, as reported under Section 403.616(c)(4)]; and
(B) the applicant's number of required jobs
[total] jobs as certified [reported] under Section
403.616(c)(1)(A)(ii) [403.616(c)(3)];
(7) require the applicant to pay a penalty prescribed
by Section 403.614 if the applicant fails to comply with an
applicable jobs or wage requirement;
(8) require the applicant to offer and contribute to a
group health benefit plan for each employee of the applicant who is
employed in a full-time job;
(9) require the applicant, at the time the applicant
executes the agreement, to execute a performance bond in an amount
the comptroller determines to be reasonable and necessary to
protect the interests of the state and the district and conditioned
on the applicant's compliance with the terms of the agreement;
(10) authorize the governor or the district to
terminate the agreement as provided by Subsection (d); and
(11) incorporate each relevant provision of this
subchapter.
SECTION 5. Sections 403.622(a), (c), and (e), Government
Code, as added by Chapter 377 (H.B. 5), Acts of the 88th
Legislature, Regular Session, 2023, are amended to read as follows:
(a) Subject to Section 403.621, the comptroller shall post
on the comptroller's Internet website the following information
received by the comptroller:
(1) each notice of a public hearing required to be
provided under Section 403.611(c);
(2) each application submitted under this subchapter;
(3) [(2)] each map and economic benefit statement
required to be submitted with an application under this subchapter;
(4) [(3)] each amendment to an application made under
this subchapter;
(5) [(4)] each agreement entered into under this
subchapter; and
(6) [(5)] each biennial compliance report submitted
as required under this subchapter.
(c) The comptroller shall post the information described by
Subsection [Subsections] (a)(1)[, (2), and (3)] not later than the
10th business day after the date the public hearing that is the
subject of the notice described by that subdivision is held. The
comptroller shall post the information described by Subsections
(a)(2), (3), and (4) not later than the 10th business day after the
date the comptroller receives the agreement described by Subsection
(a)(5) to which the information relates.
(e) The comptroller shall notify the governor and the
applicable school district of the comptroller's posting of the
information described by Subsection (a)(6) [(a)(5)] on the
comptroller's Internet website.
SECTION 6. The changes in law made by this Act to Subchapter
T, Chapter 403, Government Code, as added by Chapter 377 (H.B. 5),
Acts of the 88th Legislature, Regular Session, 2023, apply only to
an agreement entered into under that subchapter pursuant to an
application submitted under that subchapter on or after the
effective date of this Act. An agreement entered into under that
subchapter pursuant to an application 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.
SECTION 7. This Act takes effect September 1, 2025.