Bill Text: TX SB1466 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the enterprise zone program.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-24 - Referred to Natural Resources & Economic Development [SB1466 Detail]
Download: Texas-2021-SB1466-Introduced.html
By: Hinojosa | S.B. No. 1466 | |
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relating to the enterprise zone program. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2303.003, Government Code, is amended by | ||
amending Subdivision (7) adding Subdivisions (8-a) and (8-b) to | ||
read as follows: | ||
(7) "Qualified employee" means a person who: | ||
(A) works for a qualified business; | ||
(B) receives wages from the qualified business | ||
from which employment taxes are deducted; and | ||
(C) performs at least 50 percent of the person's | ||
service for the business at the qualified business site, performs | ||
the person's service for the business pursuant to a qualified | ||
telework arrangement for the qualified business site and resides | ||
within 50 miles of the qualified business site, or if the person | ||
engages in the transportation of goods or services, the person | ||
reports to the qualified business site and resides within 50 miles | ||
of the qualified business site. | ||
(8-a) "Qualified telework" means telework affiliated | ||
with the qualified business site and performed by an employee who is | ||
a resident of this state. The term does not include telework that | ||
occurs out of this state. To be considered qualified telework, a | ||
telework arrangement that requires more than 50 percent of work | ||
time to be completed through telework must be attributed to | ||
circumstances that do not allow the employee to work at least 50 | ||
percent of the time at the qualified business site. | ||
(8-b) "Telework" means the performance of services | ||
remotely through the use of email, Internet, and telephone from a | ||
person's residence. | ||
SECTION 2. Section 2303.402(a), Government Code, is amended | ||
to read as follows: | ||
(a) A person is a qualified business if the bank, for the | ||
purpose of state benefits under this chapter, or the nominating | ||
body of a project or activity of the person under this chapter, for | ||
the purpose of local incentives, certifies that: | ||
(1) the person is engaged in or has provided | ||
substantial commitment to initiate the active conduct of a trade or | ||
business in an enterprise zone, and at least 25 percent of the | ||
person's new permanent jobs in the enterprise zone are held by: | ||
(A) residents of any enterprise zone in this | ||
state; | ||
(B) economically disadvantaged individuals; [ |
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(C) veterans; or | ||
(D) residents of an area in this state designated | ||
as a qualified opportunity zone under Section 1400Z-1, Internal | ||
Revenue Code of 1986. | ||
(2) the person is engaged in or has provided | ||
substantial commitment to initiate the active conduct of a trade or | ||
business in an area of this state that does not qualify as an | ||
enterprise zone, and at least 35 percent of the person's new | ||
permanent jobs at the qualified business site are held by: | ||
(A) residents of any enterprise zone in this | ||
state; | ||
(B) individuals who are economically | ||
disadvantaged; [ |
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(C) veterans; or | ||
(D) residents of an area in this state designated | ||
as a qualified opportunity zone under Section 1400Z-1, Internal | ||
Revenue Code of 1986. | ||
SECTION 3. Section 2303.406(h), Government Code, is amended | ||
to read as follows: | ||
(h) A state benefit may not be obtained under this chapter | ||
or Chapter 151, Tax Code, for jobs moved to a qualified business | ||
site from any other business site [ |
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SECTION 4. Section 2303.4072, Government Code, is amended | ||
to read as follows: | ||
Sec. 2303.4072. ENTERPRISE PROJECT CLAIM FOR STATE BENEFIT. | ||
(a) Except as provided by Subsection (b), a [ |
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claim to the comptroller for a state benefit as prescribed under | ||
this chapter and Chapter 151, Tax Code, not later than 18 months | ||
after the date on which the term of the enterprise project | ||
designation expires as provided by Section 2303.404. | ||
(b) If the enterprise project term designation expired on or | ||
after March 1, 2020, and before March 2, 2021, the person must make | ||
the claim to the comptroller under Subsection (a) not later than 20 | ||
months after the date the designation expired. This subsection | ||
expires January 1, 2023. | ||
SECTION 5. Subchapter F, Chapter 2303, Government Code, is | ||
amended by adding Section 2303.409 to read as follows: | ||
Sec. 2303.409. TEMPORARY WAIVER OF EMPLOYMENT HOURS | ||
REQUIREMENT. (a) Notwithstanding any other provision of law, the | ||
minimum requirement of annual employment hours for a new permanent | ||
job or a retained job as defined by Section 2303.401 is waived for | ||
any certification or retention period that includes any period | ||
beginning March 1, 2020, and ending December 31, 2022, if the | ||
qualified business can show noncompliance was a result of the | ||
COVID-19 pandemic. | ||
(b) This section expires December 31, 2023. | ||
SECTION 6. Section 151.429, Tax Code, is amended by | ||
amending Subsection (g) and adding Subsection (g-1) to read as | ||
follows: | ||
(g) The refund provided by this section is conditioned on | ||
the enterprise project maintaining [ |
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level of employment of qualified employees as specified by the bank | ||
through the project's expiration [ |
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comptroller shall [ |
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employment of qualified employees has been maintained. On | ||
certifying that the baseline level of employment specified by the | ||
bank [ |
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assess that portion of the refund attributable to any such decrease | ||
in employment, including penalty and interest from the date of the | ||
refund. | ||
(g-1) Notwithstanding Subsection (g), the level of | ||
employment of qualified employees required to be maintained by an | ||
enterprise project is waived for any period that includes any | ||
period beginning March 1, 2020, and ending December 31, 2022, if the | ||
qualified business shows that noncompliance with this requirement | ||
was due to the COVID-19 pandemic. This subsection expires January | ||
1, 2023. | ||
SECTION 7. (a) Except as provided by Subsection (b) of this | ||
section, the changes in law made by this Act apply only to an | ||
application for an enterprise project designation under Chapter | ||
2303, Government Code, as amended by this Act, that is submitted on | ||
or after the effective date of this Act. An application for an | ||
enterprise project designation that is 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. | ||
(b) Section 2303.409, Government Code, as added by this Act, | ||
and Section 151.429(g-1), Tax Code, as added by this Act, apply to a | ||
claim for a state benefit made to the comptroller of public accounts | ||
on or after the effective date of this Act. | ||
SECTION 8. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2021. |