SB489 - Relating to a requirement that a person provide or contribute to the cost of child care for the person's employees in order to be eligible to receive a limitation on the taxable value of the person's property for school district maintenance and operations ad valorem tax purposes.

  89R1820 DRS-D     By: Miles, et al. S.B. No. 489       A BILL TO BE ENTITLED   AN ACT   relating to a requirement that a person provide or contribute to the   cost of child care for the person's employees in order to be   eligible to receive a limitation on the taxable value of the   person's property for school district maintenance and operations ad   valorem tax purposes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 403.612, Government Code, is amended by   amending Subsection (b) and adding Subsection (c-1) 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 connection with the project   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, other than   wages paid for construction jobs, as reported under Section   403.616(c)(4); and                      (B)  the applicant's number of total jobs as   reported under Section 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;                 (8-a)     subject to Subsection (c-1), require the   applicant to provide as a benefit of employment for each employee of   the applicant who is employed in a full-time job at the site of the   project:                       (A)     child care provided by a licensed child-care   center:                             (i)     that is operated on-site by the   applicant; or                             (ii)     with which the applicant enters into a   contract; or                       (B)     payment of not less than 50 percent of the   employee's costs for child care;                (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.           (c-1)     This subsection applies to a term described by   Subsection (b)(8-a). The agreement must require the applicant to   provide the benefit described by that subsection to eligible   employees beginning on January 1 of the tax year following the first   year that a report submitted by the applicant under Section 403.616   shows that the number of required jobs created by the project at the   site of the project is 100 or more.          SECTION 2.  The change in law made by this Act applies only   to an agreement limiting the taxable value of property entered into   under Subchapter T, Chapter 403, Government Code, as added by   Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular   Session, 2023, on or after the effective date of this Act. An   agreement limiting the taxable value of property entered into under   that subchapter before the effective date of this Act is governed by   the law in effect on the date the agreement was entered into, and   the former law is continued in effect for that purpose.          SECTION 3.  This Act takes effect September 1, 2025.