By: Hinojosa	S.B. No. 1466

	A BILL TO BE ENTITLED
	AN ACT
	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; [or]
	(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; [or]
	(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 [from one jurisdiction in this
	state to another jurisdiction] in this state.
	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 [A] person must make a
	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 [at least] the baseline [same]
	level of employment of qualified employees as specified by the bank
	through the project's expiration [existed at the time it qualified
	for a refund for a period of three years from that] date. The
	comptroller shall [annually] certify whether that level of
	employment of qualified employees has been maintained. On
	certifying that the baseline level of employment specified by the
	bank [such a level] has not been maintained, the comptroller shall
	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.