HB105 - Relating to the Texas Jobs, Energy, Technology, and Innovation Act.

  89R26179 TJB-F     By: Guillen, Hunter, Lujan, Gervin-Hawkins, H.B. No. 105       et al.     Substitute the following for H.B. No. 105:     By:  Button C.S.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) 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.          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 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 403.607, Government Code, as added by   Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular   Session, 2023, is amended by adding Subsection (a-1) to read as   follows:           (a-1)     The comptroller shall notify a school district when an   application applicable to the school district is received.          SECTION 4.  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 5.  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 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.