HB1793 - Relating to eligibility requirements to receive a grant from the Texas Enterprise Fund.

  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.