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HomeMy WebLinkAboutPR 20675: NOMINATING FLINT HILLS RESOURCES PORT ARTHUR, LLC FOR THE TEXAS ENTERPRISE ZONE PROGRAM City of ort rthui_ �rtr: www.PortArthurTx.gov INTEROFFICE MEMORANDUM Date: January 29, 2019 To: The Honorable Mayor and City Council Through: Harvey L. Robinson, Interim City Manager From: Ronald Burton, Assistant City Manager-Operations/Director of Development Services P�► RE: P.R. NO. 20675—Nominating Flint Hills Resources Port Arthur, LLC for the Texas Enterprise Zone Program Introduction: The intent of this Agenda Item is to seek a nomination from City Council for Flint Hills Resources Port Arthur, LLC to the Office of the Governor Economic Development Bank for designation as a qualified business and enterprise project under the Texas Enterprise Zone Program under the Texas Enterprise Zone Act, Chapter 2303, Texas Local Government Code. Background: The City of Port Arthur passed Ordinance No. 13-54 on November 26, 2013 electing to participate in the Texas Enterprise Zone Program, and the local incentives offered under this resolution are the same on this date as were outlined in said ordinance. Budget Impact: None Recommendation: It is recommended that City Council nominate Flint Hills Resources Port Arthur, LLC to the Office of the Governor Economic Development Bank for designation as a qualified business and enterprise project under the Texas Enterprise Zone Program under the Texas Enterprise Zone Act, Chapter 2303, Texas Local Government Code. "Remember,we are here to serve the Citizens of Port Arthur" P.O.Box 1089 X Port Arthur,Texas 77641-1089*409.983.8101 * FAX 409.982.6743 P.R.No.20675 0112912019-PDL Page 1 of 15 RESOLUTION NO. A RESOLUTION NOMINATING FLINT HILLS RESOURCES PORT ARTHUR, LLC TO THE OFFICE OF THE GOVERNOR ECONOMIC DEVELOPMENT AND TOURISM (OOGEDT) THROUGH THE ECONOMIC DEVELOPMENT BANK FOR DESIGNATION AS A QUALIFIED BUSINESS AND ENTERPRISE PROJECT UNDER THE TEXAS ENTERPRISE ZONE PROGRAM UNDER THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE WHEREAS, the City of Port Arthur (the "City') has previously passed Ordinance No. 13-54 electing to participate in the Texas Enterprise Zone Program, and the local incentives offered under this resolution are the same on this date as were outlined in Ordinance No. 13-54; and, WHEREAS, the Office of the Governor Economic Development and Tourism (OOGEDT) through the Economic Development Bank (the "Bank") will consider Flint Hills Resources Port Arthur, LLC as an enterprise project pursuant to a nomination and an application made by the City, as delineated in Exhibit "A"; and. WHEREAS, the City desires to pursue the creation of the proper economic and social environment in order to induce the investment of private resources in productive business enterprises located in the City and to provide employment to residents of enterprise zones and to other economically disadvantaged individuals; and, WHEREAS, pursuant to Chapter 2303, Subchapter F of the Texas Enterprise Zone Act, Texas Government Code (the "Act"), Flint Hills Resources Port Arthur, LLC has applied to the City for designation as a triple jumbo enterprise project; and, WHEREAS, the City finds that Flint Hills Resources Port Arthur, LLC meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds: 1. Flint Hills Resources Port Arthur, LLC is a "qualified business" under Section 2303.402 of the Act since it will be engaged in the active conduct of a trade or business at a qualified business site within the governing body's jurisdiction located outside of an enterprise zone and at least thirty-five percent (35.0%) of the business' new employees will be residents of an enterprise zone, economically disadvantaged individuals, or veterans; and P.R.No.20675 01129/2019-PDL Page 2 of 15 2. There has been and will continue to be a high level of cooperation between public, private, and neighborhood entities within the area; and 3. The designation of Flint Hills Resources Port Arthur, LLC as an enterprise project will contribute significantly to the achievement of the plans of the City for development and revitalization of the area. WHEREAS, the City finds that Flint Hills Resources Port Arthur, LLC meets the criteria for tax relief and other incentives adopted by the City and nominates Flint Hills Resources Port Arthur, LLC for enterprise project status on the grounds that it will be located at the qualified business site, will create a higher level of employment, economic activity and stability; and, WHEREAS, the City finds that it is in the best interest of the City to nominate Flint Hills Resources Port Arthur, LLC as an enterprise project pursuant to the Act; now therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT the findings of the City and its actions approving this resolution taken at the council meeting are hereby approved and adopted. THAT Flint Hills Resources Port Arthur, LLC is a "qualified business", as defined in Section 2303.402 of the Act, and meets the criteria for designation as an enterprise project, as set forth in Section 2303, Subchapter F of the Act. THAT the enterprise project shall take effect on the date of the designation of the enterprise project by 00GEDT and terminate five years from the date of designation. READ, ADOPTED AND APPROVED this day of January, A.D. 2019 at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following votes: AYES: MAYOR: COUNCILMEMBERS: P.R.No.20675 01/2912019-PDL Page 3 of 15 NOES: ATTEST: Derrick Ford Freeman, MAYOR Sherri Bellard, TRMC, CITY SECRETARY APPROVED AS TO FORM: /0/(el / Valecia"Val Tizen•OCITY ORNEY APPROVED FOR ADMINISTRATION: Harvey L. Robinson, INTERIM CITY MANAGER 41Avylk- Ronald "Ron" Burtorl,AIS STANT CITY MANAGER-OPERATIONS! DIRECTOR OF DEVELOPMENT SERVICES P.R.No.20675 0112912019-PDL Page 4 of 15 EXHIBIT "A" P.R.No.20675 01129/2019•PDL Page 5 of 15 SUBCHAPTER F. QUALIFIED BUSINESSES AND ENTERPRISE PROJECTS Sec. 2303.401. DEFINITIONS. In this subchapter: (1) "New permanent job" means a new employment position that: (A) is created by a qualified business as described by Section 2303.402 at the qualified business site not earlier than the 90th day before the date the business's project or activity is designated as an enterprise project under this chapter; (B) will provide or has provided for the duration of the project's designation period at least 1,820 hours of employment a year to a qualified employee; and (C) will exist or has existed at the qualified business site for the longer of: (i) the duration of the project's designation period; or (ii) three years after the date on which a state benefit is received as authorized by this chapter. (2) "Retained job" means a job that: (A) existed with a qualified business on the 91st day before the date the business's project or activity is designated as an enterprise project; (B) has provided and will continue to provide employment to a qualified employee of at least 1,820 hours annually; and (C) will be or has been an employment position for the longer of: (i) the duration of the project's designation period; or (ii) three years after the expiration date of the claim period for receipt of a state benefit authorized by this chapter. Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.52(a), eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 985, Sec. 6, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1121, Sec. 3, eff. Sept. 1, 1999; Acts 2003, 78th Leg., ch. 814, Sec. 3.09, eff. Sept. 1, 2003. Amended by: Acts 2007, 80th Leg., R.S., Ch. 1114 (H.B. 3694), Sec. 4, eff. June 15, 2007. Sec. 2303.402. QUALIFIED BUSINESS. (a) A person is a qualified business if the bank, for the purpose of state benefits under this chapter, or the nominating body of a project or activity of the person under this chapter, for the purpose of local incentives, certifies that: (1) the person is engaged in or has provided substantial commitment to initiate the active conduct of a trade or business in an enterprise zone, and at least 25 percent of the person's new permanent jobs in the enterprise zone are held by: (A) residents of any enterprise zone in this state; (B) economically disadvantaged individuals; or (C) veterans; or P.R.No.20675 0112912019-PDL Page 6 of 15 (2) the person is engaged in or has provided substantial commitment to initiate the active conduct of a trade or business in an area of this state that does not qualify as an enterprise zone, and at least 35 percent of the person's new permanent jobs at the qualified business site are held by: (A) residents of any enterprise zone in this state; (B) individuals who are economically disadvantaged; or (C) veterans. (b) Repealed by Acts 2003, 78th Leg., ch. 814, Sec. 6.01(6). (c) For the purposes of this section, an economically disadvantaged individual is an individual who: (1) was unemployed for at least three months before obtaining employment with the qualified business; (2) receives public assistance benefits, including welfare payments or food stamps, based on need and intended to alleviate poverty; (3) is a low-income individual, as defined by Section 101, Workforce Investment Act of 1998 (29 U.S.C. Section 2801(25)); (4) is an individual with a disability, as defined by 29 U.S.C. Section 705(20)(A); (5) is an inmate, as defined by Section 498.001; (6) is entering the workplace after being confined in a facility operated by or under contract with the Texas Department of Criminal Justice for the imprisonment of individuals convicted of felonies other than state jail felonies; (7) has been released by the Texas Juvenile Justice Department and is on parole, if state law provides for such a person to be on parole; (8) meets the current low income or moderate income limits developed under Section 8, United States Housing Act of 1937 (42 U.S.C. Section 1437f et seq.); or (9) was under the permanent managing conservatorship of the Department of Family and Protective Services on the day preceding the individual's 18th birthday. Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Renumbered from Government Code Sec. 2303.401 and amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.52(a) and Acts 1995, 74th Leg., ch, 985, Sec. 6, eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 814, Sec. 3.10, 6.01(6), eff. Sept. 1, 2003. Amended by: Acts 2007, 80th Leg., R.S., Ch. 1114 (H.B. 3694), Sec. 5, eff. June 15, 2007. Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969), Sec. 25.089, eff. September 1, 2009. Acts 2009, 81st Leg., R.S., Ch. 1116 (H.B. 1043), Sec. 2, eff. September 1, 2009. Acts 2015, 84th Leg., R.S., Ch. 591 (S.B. 100), Sec. 4, eff. September 1, 2015. Acts 2015, 84th Leg., R.S., Ch. 734 (H.B. 1549), Sec. 116, eff. September 1, 2015. P.R.No.20675 0112912019•PDL Page 7 of 15 Sec. 2303.403. PROHIBITION ON QUALIFIED BUSINESS CERTIFICATION; LIMIT ON ENTERPRISE PROJECT DESIGNATIONS. If the bank determines that the governing body eligible to nominate an enterprise project is not complying with this chapter, the bank shall prohibit the certification of a qualified business until the bank determines that the governing body is complying with this chapter. The bank may not designate more than 105 enterprise projects during any biennium. Any designations remaining at the end of a biennium may be carried forward to the next biennium. Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993. Renumbered from Government Code Sec. 2303.402 by Acts 1995, 74th Leg., ch. 76, Sec. 5.52(a), eff. Sept. 1, 1995, and Acts 1995, 74th Leg., ch. 985, Sec. 6, eff. Sept. 1, 1995. Amended by Acts 2001, 77th Leg., ch. 813, Sec. 1, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 814, Sec. 3.11, eff. Sept. 1, 2003. Amended by: Acts 2007, 80th Leg., R.S., Ch. 1114 (H.B. 3694), Sec. 6, eff. June 15, 2007. Sec. 2303.404. REQUEST FOR APPLICATION FOR ENTERPRISE PROJECT DESIGNATION. (a) A qualified business may request that the governing body of a municipality or county in which the qualified business is located apply to the bank for designation of a project or activity of the business as an enterprise project. (b) The enterprise project designation must be for: (1) an expansion or relocation from out-of-state, an expansion, renovation, or new construction, or other property to be undertaken by a qualified business; and (2) a predetermined designation period approved by the bank, with beginning and ending dates for each proposed project or activity. (c) The designation period for an enterprise project may not be for less than one year or more than five years from the date on which the designation is made. (d) If an enterprise project designation is for a franchise or subsidiary, separate books and records must be maintained for the business activity conducted at the qualified business site. Added by Acts 1995, 74th Leg., ch, 76, Sec. 5.52(a), eff. Sept. 1, 1995, and Acts 1995, 74th Leg., ch. 985, Sec. 6, eff. Sept. 1, 1995. Amended by Acts 2003, 78th Leg., ch. 814, Sec. 3.11, eff. Sept. 1, 2003. Amended by: Acts 2007, 80th Leg., R.S., Ch. 1114 (H.B. 3694), Sec. 7, eff. June 15, 2007. Sec. 2303.405. APPLICATION FOR ENTERPRISE PROJECT DESIGNATION. (a) If the governing body approves a request made under Section 2303.404, the governing body may apply to the bank for the designation of the project or activity of a qualified business as an enterprise project only after it submits to the bank the order or ordinance and other information that complies with the requirements of Sections 2303.4051 and 2303.4052. P.R.No.20675 01/2912019•PDL Page 8 of 15 (b) An application must contain an economic analysis of the plans of the qualified business for expansion, revitalization, or other activity with regard to the enterprise project, including: (1) the number of employment positions in existence at the qualified business site on the 91st day before the application deadline; (1-a) the number of new permanent jobs the enterprise project commits to create during the designation period presented in the form of a tabular listing of: (A) the classification titles of those jobs; and (B) the number of jobs and salary range for each classification title; (2) the number of permanent jobs the enterprise project commits to retain during the designation period presented in the form of a tabular listing of: (A) the classification titles of the retained jobs; and (B) the number of retained jobs and salary range for each classification title; (3) the amount of investment to be made by the enterprise project; (4) a complete description of the projected schedule for completion of the specific activity described by Section 2303.404(b) to be undertaken by the enterprise project; (5) other information the bank requires; (6) a description of the local effort made by the nominating body, the qualified business, and other affected entities to develop and revitalize the jurisdiction of the governmental entity nominating the project or activity; and (7) if the nominating body is applying for a double or triple jumbo enterprise project, as defined by Section 2303.407, an indication of which level of designation is being sought. (c) For the purposes of this section, local effort to develop and revitalize a municipality or county is: (1) the willingness of public entities in the municipality or county to provide services, incentives, and regulatory relief authorized by this chapter and to negotiate with the qualified business for which application is made and with other local groups or businesses to achieve the public purposes of this chapter; and (2) the effort of the qualified business and other affected entities to cooperate in achieving those public purposes. (d) Factors to be considered in evaluating the local effort of a public entity include: (1) tax abatement, deferral, refunds, or other tax incentives; (2) regulatory relief, including: (A) zoning changes or variances; (B) exemptions from unnecessary building code requirements, impact fees, or inspection fees; and (C) streamlined permitting; (3) enhanced municipal services, including: P.R.No.20675 01/2912019•PDL Page 9 of 15 (A) improved police and fire protection; (B) institution of community crime prevention programs; and (C) special public transportation routes or reduced fares; (4) improvements in community facilities, including: (A) capital improvements in water and sewer facilities; (B) road repair; and (C) creation or improvement of parks; (5) improvements to housing, including: (A) low-interest loans for housing rehabilitation, improvement, or new construction; and (B) transfer of abandoned housing to individuals or community groups; (6) business and industrial development services, including: (A) low-interest loans for business; (B) use of surplus school buildings or other underutilized publicly owned facilities as small business incubators; (C) provision of publicly owned land for development purposes, including residential, commercial, or industrial development; (D) creation of special one-stop permitting and problem resolution centers or ombudsmen; and (E) promotion and marketing services; and (7) job training and employment services, including: (A) retraining programs; (B) literacy and employment skills programs; (C) vocational education; and (D) customized job training. (e) Factors to be considered in evaluating the local effort of a private entity include: (1) the willingness to negotiate or cooperate in the achievement of the purposes of this chapter; (2) commitments to hire underskilled, inexperienced, disadvantaged, or displaced workers who reside in the enterprise zone; (3) commitments to hire minority workers and to contract with minority-owned businesses; (4) provision of technical and vocational job training for enterprise zone residents or economically disadvantaged employees; (5) provision of child care for employees; (6) commitments to implement and contribute to a tutoring or mentoring program for area students; P.R.No.20675 0112912019-PDL Page 10 of 15 (7) prevention or reduction of juvenile crime activity; and (8) the willingness to make contributions to the well-being of the community, such as job training, or the donation of land for parks or other public purposes. (f) A nominating body may submit an application for a project or activity that during the application process loses its eligibility for designation as an enterprise project solely because the project or activity is no longer located in an enterprise zone as described by Section 2303.101(1) if the bank receives the application not later than the 30th day after the date on which the bank makes the updated block group data used to make the eligibility determination available as required by Section 2303.051. Added by Acts 1995, 74th Leg., ch. 76, Sec. 5.52(a), eff. Sept. 1, 1995, and Acts 1995, 74th Leg., ch. 985, Sec. 6, eff. Sept. 1, 1995. Amended by Acts 2003, 78th Leg., ch. 814, Sec. 3.12, eff. Sept. 1, 2003. Amended by: Acts 2005, 79th Leg., Ch. 1243 (H.B. 1659), Sec. 5, eff. September 1, 2005. Acts 2007, 80th Leg., R.S., Ch. 1114 (H.B. 3694), Sec. 8, eff. June 15, 2007. Sec. 2303.4051. ORDINANCE OR ORDER FOR IDENTIFICATION OF LOCAL INCENTIVES. (a) In this section, "local incentive" means each tax incentive, grant, other financial incentive or benefit, or program to be provided by the governing body to qualified businesses participating in the enterprise zone program and any other local incentive listed in Section 2303.511. (b) Before nominating the project or activity of a qualified business for designation as an enterprise project, the governing body of the municipality or county in which the business is located, by ordinance or order, as appropriate, must identify and summarize briefly any local incentives available. (c) The ordinance or order must: (1) state whether the project or activity to be nominated as an enterprise project is located in an area designated as an enterprise zone under this chapter; (2) summarize briefly the local incentives, including tax incentives, that, at the election of the governing body, are or will be made available to the nominated project or activity of the qualified business; and (3) nominate a project or activity as an enterprise project. (d) Repealed by Acts 2007, 80th Leg., R.S., Ch. 1114, Sec. 21(1), eff. June 15, 2007. (e) An ordinance or order adopted under this section is not valid unless the nominating body holds a public hearing before adopting the ordinance or order. Notice of the hearing must be published in a newspaper having general circulation in the municipality not later than the seventh calendar day before the date of the hearing. The notice must contain: (1) the date, time, and location of the hearing; (2) the provisions for any tax or other incentives applicable to the enterprise zone program; P.R.No.20675 01129/2019•PDL Page 11 of 15 (3) the name of the qualified business whose project or activity is being nominated for enterprise project designation; and (4) the location of the qualified business site. (f) If the nominating body has previously nominated a project or activity for designation as an enterprise project, the nominating body, instead of issuing a new ordinance or order under this section for a nominated project or activity, may by resolution make a reference to a previously issued ordinance or order that met the requirements of this section if: (1) the resolution nominates the project or activity for designation as an enterprise project and states: (A) whether the nominated project or activity is located in an area designated as an enterprise zone; (B) the level of enterprise project designation being sought; and (C) the ending date of the project's designation period; (2) the local incentives described in the previously issued ordinance or order are the same on the date the resolution is issued; and (3) the local incentives to be made available to the nominated project or activity are the same as those made available to the project or activity that are the subject of the previously issued ordinance or order. (g) This section does not prohibit a municipality or county from extending additional incentives, including tax incentives, for qualified businesses in an enterprise zone by a separate order or ordinance. Added by Acts 2003, 78th Leg., ch. 814, Sec. 3.13, eff. Sept. 1, 2003. Amended by: Acts 2007, 80th Leg., R.S., Ch. 1114 (H.B. 3694), Sec. 9, eff. June 15, 2007. Acts 2007, 80th Leg., R.S., Ch. 1114 (H.B. 3694), Sec. 21(1), eff. June 15, 2007. Sec. 2303.4052. REQUIRED INFORMATION FROM NOMINATING BODY. Before nominating the project or activity of a qualified business for designation as an enterprise project, the nominating body must submit to the bank: (1) a certified copy of the ordinance or order, as appropriate, or reference to an ordinance or order as required by Section 2303.4051; (2) a certified copy of the minutes of all public hearings conducted with respect to local incentives available to qualified businesses within the jurisdiction of the governmental entity nominating the project or activity, regardless of whether those businesses are located in an enterprise zone; (3) the name, title, address, telephone number, and electronic mail address of the nominating body's liaison designated under Section 2303.204; (4) if the business is seeking job retention benefits, documentation showing the number of employment positions at the qualified business site; P.R.No.20675 0112912019-PDL Page 12 of 15 (5) any interlocal agreement required under Section 2303.004(c) that states: (A) which governing body has the administration authority under Section 2303.201; and (B) that both the county in which the project or activity is located and the municipality in whose jurisdiction the project or activity is located approve the nomination of the project or activity; and (6) any additional information the bank may require. Added by Acts 2003, 78th Leg., ch. 814, Sec. 3.13, eff. Sept. 1, 2003. Amended by: Acts 2007, 80th Leg., R.S., Ch. 1114 (H,B. 3694), Sec. 10, eff. June 15, 2007. Acts 2015, 84th Leg., R.S., Ch. 591 (S.B. 100), Sec. 5, eff. September 1, 2015. Sec. 2303.406. ENTERPRISE PROJECT DESIGNATION. (a) The bank may designate a project or activity of a business as an enterprise project only if the bank receives all of the information required by Section 2303.4052 and determines that: (1) the business is a qualified business under Section 2303.402 that is located in or has made a substantial commitment to locate in an enterprise zone or at a qualified business site; (2) the nominating body making the application has demonstrated that a high level of cooperation exists among public, private, and neighborhood entities within the jurisdiction of the governmental entity nominating the project or activity; (3) the designation will contribute significantly to the achievement of the plans of the nominating body making the application for development and revitalization of the area in which the enterprise project will be located; and (4) if the business is seeking job retention benefits, the business has clearly demonstrated that: (A) the permanent employees of the business will be permanently laid off; (B) the business will close down permanently; (C) the business will relocate out-of-state; (D) the business is able to employ individuals in accordance with Section 2303.402; or (E) the business facility has been legitimately destroyed or substantially impaired because of fire, flood, tornado, hurricane, or any other natural disaster and that at least 60 percent of the capital investment is being spent to repair damages resulting from the disaster. (b) The bank shall designate qualified businesses as enterprise projects on a competitive basis. The bank shall make its designation decisions using a weighted scale in which: (1) 40 percent of the evaluation depends on the economic distress of the block group or distressed county in which a proposed enterprise project is located; P.R.No.20675 0112912019-PDL Page 13 of 15 (2) 25 percent of the evaluation depends on the local effort to achieve development and revitalization of the block group or distressed county in which a proposed enterprise project is located; and (3) 35 percent of the evaluation depends on the evaluation criteria as determined by the bank, which must include: (A) with respect to a proposed enterprise project located in a block group, the level of cooperation and support the project applicant commits to the revitalization goals of all of the enterprise zone block groups within the jurisdiction of the nominating governmental entity; (B) with respect to a proposed enterprise project located in a distressed county, the level of cooperation and support the project applicant commits to the revitalization of the distressed county; and (C) the type and wage level of the jobs to be created or retained by the business. (c) The bank may remove an enterprise project designation if it determines that the business is not complying with a requirement for its designation. (d) The maximum number of enterprise projects that the bank may designate for each nominating body during any biennium is: (1) six, if the nominating body is the governing body of a municipality or county with a population of less than 250,000; or (2) nine, if the nominating body is the governing body of a municipality or county with a population of 250,000 or more. (d-1) An enterprise project designation may be split into two half designations. A half designation uses one-half of one of the enterprise project designations allowed to a nominating body under Subsection (d) and to the bank under Section 2303.403. (e) The office may not designate multiple concurrent enterprise projects to a qualified business located at a qualified business site. (f) An approved designation as a double jumbo enterprise project, as defined by Section 2303.407, counts as two project designations against both the nominating body for purposes of Subsection (d) and the number of enterprise project designations allowed statewide per biennium under Section 2303.403. An approved designation as a triple jumbo enterprise project, as defined by Section 2303.407, counts as three project designations against both the nominating body for purposes of Subsection (d) and the number of enterprise project designations allowed statewide per biennium under Section 2303.403. (g) The bank may lower the designation level of a proposed project or activity nominated for enterprise project designation: (1) if there are fewer designations available than applications received; or (2) to further the economic interests of the state. (h) A state benefit may not be obtained under this chapter or Chapter 151, Tax Code, for jobs moved from one jurisdiction in this state to another jurisdiction in this state. P.R.No.20675 0112912019•PDL Page 14 of 15 Added by Acts 1995, 74th Leg., ch. 76, Sec. 5.52(a), eff. Sept. 1, 1995, and Acts 1995, 74th Leg., ch. 985, Sec. 6, eff. Sept. 1, 1995. Amended by Acts 1999, 76th Leg., ch. 1121, Sec. 4, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 813, Sec. 2, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 209, Sec. 92, eff. Oct. 1, 2003; Acts 2003, 78th Leg., ch. 814, Sec. 3.14, eff. Sept. 1, 2003. Amended by: Acts 2005, 79th Leg., Ch. 1243 (H.B. 1659), Sec. 6, eff. September 1, 2005. Acts 2007, 80th Leg., R.S., Ch. 1114 (H.B. 3694), Sec. 11, eff. June 15, 2007. Acts 2007, 80th Leg., R.S., Ch. 1114 (H.B. 3694), Sec. 12, eff. June 15, 2007. Acts 2007, 80th Leg., R.S., Ch. 1114 (H.B. 3694), Sec. 21(2), eff. June 15, 2007. Acts 2009, 81st Leg., R.S., Ch. 256 (H.B. 271), Sec. 1, eff. September 1, 2009. Acts 2009, 81st Leg., R.S., Ch. 256 (H.B. 271), Sec. 2, eff, September 1, 2009. Acts 2015, 84th Leg., R.S., Ch. 591 (S.B. 100), Sec. 6, eff. September 1, 2015. Sec. 2303.407. ALLOCATION OF JOBS ELIGIBLE FOR TAX REFUND. (a) The bank shall allocate to an enterprise project the maximum number of new permanent jobs or retained jobs eligible based on the amount of capital investment made in the project, the project's designation level, and the refund per job with a maximum refund to be included in a computation of a tax refund for the project. (b) A capital investment in a project of: (1) $40,000 to $399,999 will result in a refund of up to $2,500 per job with a maximum refund of$25,000 for the creation or retention of 10 jobs; (2) $400,000 to $999,999 will result in a refund of up to $2,500 per job with a maximum refund of$62,500 for the creation or retention of 25 jobs; (3) $1,000,000 to $4,999,999 will result in a refund of up to $2,500 per job with a maximum refund of$312,500 for the creation or retention of 125 jobs; (4) $5,000,000 or more will result in a refund of up to $2,500 per job with a maximum refund of$1,250,000 for the creation or retention of 500 jobs, except as provided by Subdivision (5) or(6); (5) $150,000,000 to$249,999,999 will result in a refund of up to $5,000 per new permanent job with a maximum refund of$2,500,000 for the creation of 500 new permanent jobs if the bank designates the project as a double jumbo enterprise project; or (6) $250,000,000 or more will result in a refund of up to $7,500 per new permanent job with a maximum refund of$3,750,000 for the creation of at least 500 new permanent jobs if the bank designates the project as a triple jumbo enterprise project. (c) An enterprise project for which a commitment for a capital investment in the range amount and the creation of the number of new permanent jobs specified by Subsection (b)(5) is made is considered a double jumbo enterprise project if the project is so designated by the bank. P.R.No.20675 0112912019-PDL Page 15 of 15 (d) An enterprise project for which a commitment for a capital investment in the range amount and the creation of the number of new permanent jobs specified by Subsection (b)(6) is made is considered a triple jumbo enterprise project if the project is so designated by the bank. (e) The maximum number of jobs that the bank may allocate to an enterprise project split into two half designations as provided by Section 2303.406(d-1) is 250. Added by Acts 1995, 74th Leg., ch. 76, Sec. 5.52(a), eff, Sept. 1, 1995, and Acts 1995, 74th Leg., ch. 985, Sec. 6, eff. Sept. 1, 1995. Amended by Acts 2001, 77th Leg., ch. 1134, Sec. 1.01, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1134, Sec. 2.01, eff. Sept. 1, 2005; Acts 2003, 78th Leg., ch. 814, Sec. 3.16, eff. Sept. 1, 2003. Amended by: Acts 2007, 80th Leg., R.S., Ch. 1114 (H.B. 3694), Sec. 13, eff. June 15, 2007. Acts 2015, 84th Leg., R.S., Ch. 591 (S.B. 100), Sec. 7, eff. September 1, 2015.