1. (a) A person is a qualified business if the bank, for the purpose of state benefits under this chapter, or the governing body of a readjustment zone, for the purpose of local benefits, certifies that:

   1. (1) the person is engaged in or has provided substantial commitment to initiate the active conduct of a trade or business in the readjustment zone; and

   2. (2) at least 25 percent of the person's new employees in the readjustment zone are:

      1. (A) residents of the governing jurisdiction;
      2. (B) economically disadvantaged individuals, as defined by Section 2303.402(c); or
      3. (C) dislocated defense workers.

2. (b) The governing body of a readjustment zone may certify a franchise or subsidiary of a new or existing business as a qualified business if the franchise or subsidiary:

   1. (1) is located entirely in the readjustment zone; and
   2. (2) maintains separate books and records of the business activity conducted in the zone.

Added by Acts 1997, 75th Leg., ch. 114, Sec. 1, eff. May 19, 1997.

Amended by Acts 2003, 78th Leg., ch. 814, Sec. 3.41, eff. Sept. 1, 2003.