Tepper Bill Sets Job And Investment Minimums For Enterprise Fund Grants

The text as introduced · 1,015 words

89R1370 MLH-D

By: Tepper
H.B. No. 1793

A BILL TO BE ENTITLED

AN ACT

relating to eligibility requirements to receive a grant from the

Texas Enterprise Fund.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 481.078(f-1), Government Code, is

amended to read as follows:

(f-1) A grant agreement must contain a provision:

(1) requiring the creation of a minimum number of jobs

in this state in accordance with Section 481.0785 ; [ and ]

(2) specifying the date by which the recipient intends

to create those jobs ; and

(3) requiring the recipient to make a minimum

investment in the purposes for which the grant is intended in

accordance with Section 481.0785 .

SECTION 2. Subchapter E, Chapter 481, Government Code, is

amended by adding Section 481.0785 to read as follows:

Sec. 481.0785. REQUIRED JOBS AND INVESTMENT. (a) In

addition to the eligibility requirements under Section 481.078, to

be eligible to enter into a grant agreement under that section, an

entity must agree to:

(1) if the grant awarded is to be used in a county with

a population of at least 750,000:

(A) create at least 75 jobs by the end of the

first year after the creation of the grant agreement and

demonstrate an average of at least that number of jobs during each

following year until the date the grant agreement expires; and

(B) make an investment in the purpose for which

the grant is awarded in an amount of at least $200 million by the end

of the first year after the creation of the grant agreement;

(2) if the grant awarded is to be used in a county with

a population of at least 250,000 but less than 750,000:

(A) create at least 50 jobs by the end of the

first year after the creation of the grant agreement and

demonstrate an average of at least that number of jobs during each

following year until the date the grant agreement expires; and

(B) make an investment in the purpose for which

the grant is awarded in an amount of at least $100 million by the end

of the first year after the creation of the grant agreement;

(3) if the grant awarded is to be used in a county with

a population of at least 100,000 but less than 250,000:

(A) create at least 35 jobs by the end of the

first year after the creation of the grant agreement and

demonstrate an average of at least that number of jobs during each

following year until the date the grant agreement expires; and

(B) make an investment in the purpose for which

the grant is awarded in an amount of at least $50 million by the end

of the first year after the creation of the grant agreement; or

(4) if the grant awarded is to be used in a county with

a population of less than 100,000:

(A) create at least 10 jobs by the end of the

first year after the creation of the grant agreement and

demonstrate an average of at least that number of jobs during each

following year until the date the grant agreement expires; and

(B) make an investment in the purpose for which

the grant is awarded in an amount of at least $20 million by the end

of the first year after the creation of the grant agreement.

(b) For purposes of Subsection (a), each job created in

connection with a grant agreement:

(1) must be a new permanent full-time job in this

state, other than a construction job, that requires a total of at

least 1,600 hours of work a year in connection with the purpose for

which the grant is awarded;

(2) must be:

(A) maintained in the usual course and scope of

the grant recipient's business, which may be performed by an

individual who is a trainee under the Texans Work program

established under Chapter 308, Labor Code; or

(B) performed by:

(i) an independent contractor, as that term

is defined by Section 406.121, Labor Code; and

(ii) the independent contractor's employees

at the site of the project; and

(3) may not be transferred by the grant recipient from

an existing facility or location in this state or otherwise created

to replace an existing job, unless the grant recipient fills the

vacancy caused by the transfer.

(c) For purposes of Subsection (a), a grant recipient may

demonstrate that the recipient has met the applicable minimum

investment requirement by any reasonable means that demonstrate

that investment made in the purposes for which the grant is awarded

is equal to or greater than the minimum investment requirement

applicable to that purpose.

(d) If grant money awarded is used in more than one county,

the jobs and investment requirements applicable to the grant

recipient under this section are determined using the jobs and

investment requirements applicable to the county with the smallest

population in which any part of the purposes for which the grant is

awarded is located.

(e) The governor may adopt rules necessary to interpret and

administer this section, including rules regarding:

(1) the manner for determining:

(A) which jobs and investment requirements

prescribed by Subsection (a) apply to the purposes for which a grant

is awarded; and

(B) the circumstances under which a trainee under

the Texans Work program established under Chapter 308, Labor Code,

may be considered a full-time employee for purposes of this

section; and

(2) the method by which a grant recipient must

demonstrate an average of at least the number of required jobs for

purposes of satisfying the jobs requirement prescribed by

Subsection (a).

SECTION 3. The change in law made by this Act applies only

to a grant agreement entered into on or after the effective date of

this Act. A grant agreement entered into before the effective date

of this Act is governed by the law in effect on the date the grant

agreement was entered into, and the former law is continued in

effect for that purpose.

SECTION 4. This Act takes effect September 1, 2025.