Sec. 403.614.  PENALTY FOR FAILURE TO COMPLY WITH JOBS OR WAGE REQUIREMENT.  (a)  An applicant is liable to the state for a penalty in the amount computed under this subsection if the applicant fails to maintain at least the number of required jobs prescribed by the agreement to which the applicant is a party during the periods covered by two consecutive reports submitted by the applicant under Section 403.616.  The amount of the penalty is equal to two times the product of:
(1)  the difference between:
(A)  the number of required jobs prescribed by the agreement; and
(B)  the number of required jobs actually created as stated in the most recent report submitted by the applicant under Section 403.616; and
(2)  the average annual wage prescribed by the agreement during the most recent four quarters for which data is available, as computed by the Texas Workforce Commission.
(b)  An applicant is liable to the state for a penalty in the amount computed under this subsection if the applicant fails to meet the average annual wage requirement prescribed by the agreement to which the applicant is a party, if any, during the periods covered by two consecutive reports submitted by the applicant under Section 403.616.  The amount of the penalty is equal to two times the difference between:
(1)  the product of:
(A)  the actual average annual wage paid to all persons employed by the applicant in connection with the project that is the subject of the agreement as computed under Section 403.612(b)(6); and
(B)  the number of required jobs prescribed by the agreement; and
(2)  the product of:
(A)  the average annual wage prescribed by the agreement; and
(B)  the number of required jobs prescribed by the agreement.
(c)  Notwithstanding Subsections (a) and (b), the amount of a penalty imposed on an applicant under this section may not exceed the amount of the ad valorem tax benefit received by the applicant under the agreement that is the subject of the penalty.
(d)  An applicant on request of the comptroller shall provide to the comptroller a schedule of required jobs created as of the date of the request under an agreement to which the applicant is a party.
(e)  A determination by the comptroller that an applicant has failed to meet the jobs or wage requirement prescribed by an agreement to which the applicant is a party is a deficiency determination under Section 111.008, Tax Code.  A penalty imposed under this section is an amount the comptroller is required to collect, receive, administer, or enforce and is subject to the payment and redetermination requirements of Sections 111.0081 and 111.009, Tax Code.  A redetermination under Section 111.009, Tax Code, of a determination under this section is a contested case as defined by Section 2001.003 of this code.
(f)  The comptroller shall deposit a penalty collected under this section and any interest on the penalty to the credit of the foundation school fund.
Added by Acts 2023, 88th Leg., R.S., Ch. 377 (H.B. 5), Sec. 1, eff. January 1, 2024.