Texas 2025 - 89th Regular

Texas House Bill HB4022 Compare Versions

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1	1	89R14121 TJB-F
2	2	By: Lujan H.B. No. 4022
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the Texas Jobs, Energy, Technology, and Innovation Act.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 403.608(b), Government Code, as added by
12	12	Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular
13	13	Session, 2023, is amended to read as follows:
14	14	(b) An economic benefit statement must include the
15	15	following information for each year of the period that begins on the
16	16	date the applicant projects construction of the proposed project
17	17	that is the subject of the application will begin and ends on the
18	18	20th [25th] anniversary of the date the incentive period ends:
19	19	(1) an estimate of the number of total jobs that will
20	20	be created by the project;
21	21	(2) an estimate of the total amount of capital
22	22	investment that will be created by the project;
23	23	(3) an estimate of the increase in appraised value of
24	24	property that will be attributable to the project;
25	25	(4) an estimate of the amount of ad valorem taxes that
26	26	will be imposed by each taxing unit, including the applicable
27	27	school district, on the property used as part of the project;
28	28	(5) an estimate of the amount of state taxes that will
29	29	be paid in connection with the project; and
30	30	(6) an estimate of the associated economic benefits
31	31	that may reasonably be attributed to the project, including:
32	32	(A) the impact on the gross revenues and
33	33	employment levels of local businesses that provide goods or
34	34	services in connection with the project or to the applicant's
35	35	employees;
36	36	(B) the amount of state and local taxes that will
37	37	be generated as a result of the indirect economic impact of the
38	38	project, including all ad valorem taxes not otherwise estimated in
39	39	Subdivision (4) that will be imposed on property placed into
40	40	service as a result of the project;
41	41	(C) the development of complementary businesses
42	42	or industries that locate in this state as a direct consequence of
43	43	the project;
44	44	(D) the total impact of the project on the gross
45	45	domestic product of this state;
46	46	(E) the total impact of the project on personal
47	47	income in this state; and
48	48	(F) the total impact of the project on state and
49	49	local taxes.
50	50	SECTION 2. Section 403.609(b), Government Code, as added by
51	51	Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular
52	52	Session, 2023, is amended to read as follows:
53	53	(b) The comptroller may not recommend an application for
54	54	approval unless the comptroller finds that:
55	55	(1) the proposed project that is the subject of the
56	56	application is an eligible project;
57	57	(2) the proposed project is reasonably likely to
58	58	generate, before the 20th anniversary of the first day of the
59	59	construction period, state or local tax revenue, including ad
60	60	valorem tax revenue attributable to the effect of the project on the
61	61	economy of this state, in an amount sufficient to offset the school
62	62	district maintenance and operations ad valorem tax revenue lost as
63	63	a result of the agreement;
64	64	(3) for a proposed project other than an electric
65	65	generation facility described by Section 403.602(8)(A)(i)(b), the
66	66	agreement is a compelling factor in a competitive site selection
67	67	determination and that, in the absence of the agreement, the
68	68	applicant would not make the proposed investment in this state; and
69	69	(4) if the application indicates that the eligible
70	70	project is proposed to be located in a qualified opportunity zone,
71	71	the project is located in the zone.
72	72	SECTION 3. Section 403.611(c), Government Code, as added by
73	73	Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular
74	74	Session, 2023, is amended to read as follows:
75	75	(c) The governing body of the school district must provide
76	76	notice of the public hearing in the manner required by Chapter 551,
77	77	except that the district must provide the notice not later than the
78	78	15th day before the date of the hearing. The governing body must
79	79	send a copy of the notice to the comptroller at the time the notice
80	80	is provided. The notice must contain:
81	81	(1) the name of the applicant;
82	82	(2) the name and location of the existing or proposed
83	83	reinvestment zone or enterprise zone in which the eligible project
84	84	that is the subject of the application is proposed to be located;
85	85	(3) a general description of the proposed eligible
86	86	project; and
87	87	(4) the projected investment the applicant will make
88	88	in the project.
89	89	SECTION 4. Section 403.612(b), Government Code, as added by
90	90	Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular
91	91	Session, 2023, is amended to read as follows:
92	92	(b) An agreement entered into under this section between the
93	93	governor, a school district, and an applicant pertaining to an
94	94	eligible project shall:
95	95	(1) specify the project to which the agreement
96	96	applies;
97	97	(2) specify the term of the agreement, which must:
98	98	(A) begin on the date the agreement is entered
99	99	into; and
100	100	(B) end on December 31 of the third tax year
101	101	following the end of the incentive period;
102	102	(3) specify the construction and incentive periods for
103	103	the project;
104	104	(4) specify the manner for determining the taxable
105	105	value for school district maintenance and operations ad valorem tax
106	106	purposes during the incentive period under Section 403.605 for the
107	107	eligible property subject to the agreement;
108	108	(5) specify the applicable jobs and investment
109	109	requirements prescribed by Section 403.604 and require the
110	110	applicant to comply with those requirements;
111	111	(6) for a project other than an electric generation
112	112	facility described by Section 403.602(8)(A)(i)(b), require that
113	113	the average annual wage paid to all persons employed by the
114	114	applicant in required jobs in connection with the project be not
115	115	less than [used to calculate total jobs exceed] 110 percent of the
116	116	average annual wage for all jobs in the applicable industry sector
117	117	during the most recent four quarters for which data is available, as
118	118	computed by the Texas Workforce Commission, with the applicant's
119	119	average annual wage being equal to the quotient of:
120	120	(A) the applicant's total wages paid to all
121	121	persons holding required jobs[, other than wages paid for
122	122	construction jobs, as reported under Section 403.616(c)(4)]; and
123	123	(B) the applicant's number of required jobs
124	124	[total] jobs as certified [reported] under Section
125	125	403.616(c)(1)(A)(ii) [403.616(c)(3)];
126	126	(7) require the applicant to pay a penalty prescribed
127	127	by Section 403.614 if the applicant fails to comply with an
128	128	applicable jobs or wage requirement;
129	129	(8) require the applicant to offer and contribute to a
130	130	group health benefit plan for each employee of the applicant who is
131	131	employed in a full-time job;
132	132	(9) require the applicant, at the time the applicant
133	133	executes the agreement, to execute a performance bond in an amount
134	134	the comptroller determines to be reasonable and necessary to
135	135	protect the interests of the state and the district and conditioned
136	136	on the applicant's compliance with the terms of the agreement;
137	137	(10) authorize the governor or the district to
138	138	terminate the agreement as provided by Subsection (d); and
139	139	(11) incorporate each relevant provision of this
140	140	subchapter.
141	141	SECTION 5. Sections 403.622(a), (c), and (e), Government
142	142	Code, as added by Chapter 377 (H.B. 5), Acts of the 88th
143	143	Legislature, Regular Session, 2023, are amended to read as follows:
144	144	(a) Subject to Section 403.621, the comptroller shall post
145	145	on the comptroller's Internet website the following information
146	146	received by the comptroller:
147	147	(1) each notice of a public hearing required to be
148	148	provided under Section 403.611(c);
149	149	(2) each application submitted under this subchapter;
150	150	(3) [(2)] each map and economic benefit statement
151	151	required to be submitted with an application under this subchapter;
152	152	(4) [(3)] each amendment to an application made under
153	153	this subchapter;
154	154	(5) [(4)] each agreement entered into under this
155	155	subchapter; and
156	156	(6) [(5)] each biennial compliance report submitted
157	157	as required under this subchapter.
158	158	(c) The comptroller shall post the information described by
159	159	Subsection [Subsections] (a)(1)[, (2), and (3)] not later than the
160	160	10th business day after the date the public hearing that is the
161	161	subject of the notice described by that subdivision is held. The
162	162	comptroller shall post the information described by Subsections
163	163	(a)(2), (3), and (4) not later than the 10th business day after the
164	164	date the comptroller receives the agreement described by Subsection
165	165	(a)(5) to which the information relates.
166	166	(e) The comptroller shall notify the governor and the
167	167	applicable school district of the comptroller's posting of the
168	168	information described by Subsection (a)(6) [(a)(5)] on the
169	169	comptroller's Internet website.
170	170	SECTION 6. The changes in law made by this Act to Subchapter
171	171	T, Chapter 403, Government Code, as added by Chapter 377 (H.B. 5),
172	172	Acts of the 88th Legislature, Regular Session, 2023, apply only to
173	173	an agreement entered into under that subchapter pursuant to an
174	174	application submitted under that subchapter on or after the
175	175	effective date of this Act. An agreement entered into under that
176	176	subchapter pursuant to an application submitted before the
177	177	effective date of this Act is governed by the law in effect on the
178	178	date the application was submitted, and the former law is continued
179	179	in effect for that purpose.
180	180	SECTION 7. This Act takes effect September 1, 2025.