Lujan Bill Exempts Some Power Plants From 110% Wage Test

The text as introduced · 1,510 words

89R14121 TJB-F

By: Lujan
H.B. No. 4022

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 403.608(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 economic benefit statement must include the

following information for each year of the period that begins on the

date the applicant projects construction of the proposed project

that is the subject of the application will begin and ends on the

20th [ 25th ] anniversary of the date the incentive period ends:

(1) an estimate of the number of total jobs that will

be created by the project;

(2) an estimate of the total amount of capital

investment that will be created by the project;

(3) an estimate of the increase in appraised value of

property that will be attributable to the project;

(4) an estimate of the amount of ad valorem taxes that

will be imposed by each taxing unit, including the applicable

school district, on the property used as part of the project;

(5) an estimate of the amount of state taxes that will

be paid in connection with the project; and

(6) an estimate of the associated economic benefits

that may reasonably be attributed to the project, including:

(A) the impact on the gross revenues and

employment levels of local businesses that provide goods or

services in connection with the project or to the applicant's

employees;

(B) the amount of state and local taxes that will

be generated as a result of the indirect economic impact of the

project, including all ad valorem taxes not otherwise estimated in

Subdivision (4) that will be imposed on property placed into

service as a result of the project;

(C) the development of complementary businesses

or industries that locate in this state as a direct consequence of

the project;

(D) the total impact of the project on the gross

domestic product of this state;

(E) the total impact of the project on personal

income in this state; and

(F) the total impact of the project on state and

local taxes.

SECTION 2. 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), 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 3. Section 403.611(c), Government Code, as added by

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

Session, 2023, is amended to read as follows:

(c) The governing body of the school district must provide

notice of the public hearing in the manner required by Chapter 551,

except that the district must provide the notice not later than the

15th day before the date of the hearing. The governing body must

send a copy of the notice to the comptroller at the time the notice

is provided. The notice must contain:

(1) the name of the applicant;

(2) the name and location of the existing or proposed

reinvestment zone or enterprise zone in which the eligible project

that is the subject of the application is proposed to be located;

(3) a general description of the proposed eligible

project; and

(4) the projected investment the applicant will make

in the project.

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) for a project other than an electric generation

facility described by Section 403.602(8)(A)(i)(b), 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

average annual wage for all jobs in the 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 jobs

[ 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. Sections 403.622(a), (c), and (e), Government

Code, as added by Chapter 377 (H.B. 5), Acts of the 88th

Legislature, Regular Session, 2023, are amended to read as follows:

(a) Subject to Section 403.621, the comptroller shall post

on the comptroller's Internet website the following information

received by the comptroller:

(1) each notice of a public hearing required to be

provided under Section 403.611(c);

(2) each application submitted under this subchapter;

(3) [ (2) ] each map and economic benefit statement

required to be submitted with an application under this subchapter;

(4) [ (3) ] each amendment to an application made under

this subchapter;

(5) [ (4) ] each agreement entered into under this

subchapter; and

(6) [ (5) ] each biennial compliance report submitted

as required under this subchapter.

(c) The comptroller shall post the information described by

Subsection [ Subsections ] (a)(1)[ , (2), and (3) ] not later than the

10th business day after the date the public hearing that is the

subject of the notice described by that subdivision is held. The

comptroller shall post the information described by Subsections

(a)(2), (3), and (4) not later than the 10th business day after the

date the comptroller receives the agreement described by Subsection

(a)(5) to which the information relates .

(e) The comptroller shall notify the governor and the

applicable school district of the comptroller's posting of the

information described by Subsection (a)(6) [ (a)(5) ] on the

comptroller's Internet website.

SECTION 6. 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 7. This Act takes effect September 1, 2025.