Jobs Act Drops The Jobs Requirement For $750M Investors

The text as introduced · 943 words

89R13859 TJB-F

By: Guillen
H.B. No. 105

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 403.602, Government Code, as added by

Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular

Session, 2023, is amended by adding Subdivision (14-a) and amending

Subdivision (15) to read as follows:

(14-a) "Priority project" means an eligible project for

which an applicant agrees to make an investment in an amount of at

least $750 million by the end of the first tax year of the incentive

period prescribed by the agreement pertaining to the project.

(15) "Qualified opportunity zone" means an area

designated as such by the secretary of the United States Treasury as

of January 1, 2026 .

SECTION 2. Section 403.604(a), Government Code, as added by

Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular

Session, 2023, is amended to read as follows:

(a) A jobs and investment requirement prescribed by this

section does not apply to an eligible project that is :

(1) an electric generation facility described by

Section 403.602(8)(A)(i)(b) ; or

(2) a priority project .

SECTION 3. 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) or a

priority project, 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 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) 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 county average annual wage for

manufacturing [ all ] jobs in the county where the project is located

[ 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 [ 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. 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 6. This Act takes effect September 1, 2025.