HB 105 Introduced

Relating to the Texas Jobs, Energy, Technology, and Innovation Act. 

​ 
 

 

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. 

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