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A BILL TO BE ENTITLED
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AN ACT
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relating to the Texas Economic Development Act; authorizing a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 313.002, 313.003, 313.004, and 313.007, |
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Tax Code, are amended to read as follows: |
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Sec. 313.002. FINDINGS. The legislature finds that: |
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(1) many states have enacted aggressive economic |
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development laws designed to attract large employers, create jobs, |
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and strengthen their economies; |
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(2) given Texas' relatively high ad valorem taxes, it |
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is difficult for the state to compete for new capital projects |
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without temporarily limiting ad valorem taxes imposed on new |
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capital investments [the State of Texas has slipped in its national
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ranking each year between 1993 and 2000 in terms of attracting major
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new manufacturing facilities to this state]; |
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(3) a significant portion of the Texas economy |
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continues to be based in [the] manufacturing and other |
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capital-intensive industries [industry], and their [the] continued |
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growth and overall health serve [of the manufacturing sector
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serves] the Texas economy well; |
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(4) without a vibrant, strong manufacturing sector, |
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other sectors of the economy, especially the state's service |
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sector, will also suffer adverse consequences; and |
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(5) the current ad valorem [property] tax system of |
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this state does not favor capital-intensive businesses such as |
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manufacturers. |
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Sec. 313.003. PURPOSES. The purposes of this chapter are |
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to: |
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(1) encourage large-scale capital investments in this |
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state[, especially in school districts that have an ad valorem tax
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base that is less than the statewide average ad valorem tax base of
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school districts in this state]; |
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(2) create new, high-paying jobs in this state; |
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(3) attract to this state [new,] large-scale |
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businesses that are exploring opportunities to locate in other |
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states or other countries; |
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(4) enable state and local government officials and |
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economic development professionals to compete with other states by |
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authorizing economic development incentives that are comparable to |
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[meet or exceed] incentives being offered to prospective employers |
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by other states and to provide state and local officials with an |
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effective means to attract large-scale investment; |
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(5) strengthen and improve the overall performance of |
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the economy of this state; |
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(6) expand and enlarge the ad valorem [property] tax |
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base of this state; and |
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(7) enhance this state's economic development efforts |
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by providing state and local officials [school districts] with an |
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effective [local] economic development tool [option]. |
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Sec. 313.004. LEGISLATIVE INTENT. It is the intent of the |
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legislature in enacting this chapter that: |
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(1) economic development decisions involving school |
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district taxes should occur at the local level with oversight by the |
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state and should be consistent with identifiable statewide economic |
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development goals; |
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(2) this chapter should not be construed or |
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interpreted to allow: |
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(A) property owners to pool investments to create |
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sufficiently large investments to qualify for an ad valorem tax |
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benefit [or financial benefit] provided by this chapter; |
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(B) an applicant for an ad valorem tax benefit |
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[or financial benefit] provided by this chapter to assert that jobs |
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will be eliminated if certain investments are not made if the |
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assertion is not true; or |
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(C) an entity not subject to the tax imposed by |
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Chapter 171 [a sole proprietorship, partnership, or limited
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liability partnership] to receive an ad valorem tax benefit [or
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financial benefit] provided by this chapter; [and] |
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(3) in implementing this chapter, school districts |
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should: |
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(A) strictly interpret the criteria and |
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selection guidelines provided by this chapter; and |
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(B) approve only those applications for an ad |
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valorem tax benefit [or financial benefit] provided by this chapter |
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that: |
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(i) enhance the local community; |
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(ii) improve the local public education |
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system; |
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(iii) create high-paying jobs; and |
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(iv) advance the economic development goals |
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of this state; and |
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(4) in implementing this chapter, the comptroller |
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should: |
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(A) strictly interpret the criteria and |
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selection guidelines provided by this chapter; and |
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(B) issue certificates for limitations on |
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appraised value only for those applications for an ad valorem tax |
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benefit provided by this chapter that: |
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(i) create high-paying jobs; |
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(ii) provide a net benefit to the state over |
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the long term; and |
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(iii) advance the economic development |
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goals of this state [as identified by the Texas Strategic Economic
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Development Planning Commission]. |
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Sec. 313.007. EXPIRATION. Subchapters B and [,] C [, and D] |
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expire December 31, 2024 [2014]. |
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SECTION 2. Sections 313.021(1), (2), and (3), Tax Code, are |
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amended to read as follows: |
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(1) "Qualified investment" means: |
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(A) tangible personal property that is first |
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placed in service in this state during the applicable qualifying |
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time period that begins on or after January 1, 2002, without regard |
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to whether the property is affixed to or incorporated into real |
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property, and that is described as Section 1245 property by Section |
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1245(a), Internal Revenue Code of 1986; |
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(B) tangible personal property that is first |
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placed in service in this state during the applicable qualifying |
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time period that begins on or after January 1, 2002, without regard |
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to whether the property is affixed to or incorporated into real |
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property, and that is used in connection with the manufacturing, |
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processing, or fabrication in a cleanroom environment of a |
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semiconductor product, without regard to whether the property is |
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actually located in the cleanroom environment, including: |
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(i) integrated systems, fixtures, and |
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piping; |
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(ii) all property necessary or adapted to |
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reduce contamination or to control airflow, temperature, humidity, |
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chemical purity, or other environmental conditions or |
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manufacturing tolerances; and |
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(iii) production equipment and machinery, |
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moveable cleanroom partitions, and cleanroom lighting; |
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(C) tangible personal property that is first |
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placed in service in this state during the applicable qualifying |
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time period that begins on or after January 1, 2002, without regard |
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to whether the property is affixed to or incorporated into real |
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property, and that is used in connection with the operation of a |
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nuclear electric power generation facility, including: |
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(i) property, including pressure vessels, |
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pumps, turbines, generators, and condensers, used to produce |
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nuclear electric power; and |
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(ii) property and systems necessary to |
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control radioactive contamination; |
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(D) tangible personal property that is first |
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placed in service in this state during the applicable qualifying |
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time period that begins on or after January 1, 2002, without regard |
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to whether the property is affixed to or incorporated into real |
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property, and that is used in connection with operating an |
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integrated gasification combined cycle electric generation |
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facility, including: |
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(i) property used to produce electric power |
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by means of a combined combustion turbine and steam turbine |
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application using synthetic gas or another product produced by the |
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gasification of coal or another carbon-based feedstock; or |
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(ii) property used in handling materials to |
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be used as feedstock for gasification or used in the gasification |
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process to produce synthetic gas or another carbon-based feedstock |
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for use in the production of electric power in the manner described |
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by Subparagraph (i); |
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(E) tangible personal property that is first |
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placed in service in this state during the applicable qualifying |
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time period that begins on or after January 1, 2010, without regard |
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to whether the property is affixed to or incorporated into real |
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property, and that is used in connection with operating an advanced |
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clean energy project, as defined by Section 382.003, Health and |
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Safety Code; [or] |
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(F) a building or a permanent, nonremovable |
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component of a building that is built or constructed during the |
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applicable qualifying time period that begins on or after January |
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1, 2002, and that houses tangible personal property described by |
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Paragraph (A), (B), (C), (D), or (E); or |
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(G) an existing building that, as part of a |
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discrete project that increases the value and productive capacity |
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of an existing property, is expanded. |
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(2) "Qualified property" means: |
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(A) land: |
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(i) that is located in an area designated as |
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a reinvestment zone under Chapter 311 or 312 or as an enterprise |
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zone under Chapter 2303, Government Code; |
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(ii) on which a person proposes to |
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construct a new building or erect or affix a new improvement that |
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does not exist before the date the person submits a complete |
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application [applies] for a limitation on appraised value under |
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this subchapter; |
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(iii) that is not subject to a tax abatement |
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agreement entered into by a school district under Chapter 312; and |
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(iv) on which, in connection with the new |
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building or new improvement described by Subparagraph (ii), the |
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owner or lessee of, or the holder of another possessory interest in, |
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the land proposes to: |
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(a) make a qualified investment in an |
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amount equal to at least the minimum amount required by Section |
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313.023; and |
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(b) create at least 25 new jobs; |
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(B) the new building or other new improvement |
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described by Paragraph (A)(ii); and |
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(C) tangible personal property that: |
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(i) is not subject to a tax abatement |
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agreement entered into by a school district under Chapter 312; and |
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(ii) except for new equipment described in |
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Section 151.318(q) or (q-1), is first placed in service in the new |
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building or in or on the new improvement described by Paragraph |
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(A)(ii), or on the land on which that new building or new |
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improvement is located, if the personal property is ancillary and |
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necessary to the business conducted in that new building or in or on |
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that new improvement. |
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(3) "Qualifying job" means a permanent full-time job |
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that: |
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(A) requires at least 1,600 hours of work a year; |
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(B) is not transferred from one area in this |
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state to another area in this state; |
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(C) is not created to replace a previous |
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employee; |
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(D) is covered by a group health benefit plan |
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that complies with the Patient Protection and Affordable Care Act |
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(Pub. L. No. 111-148) as amended by the Health Care and Education |
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Reconciliation Act of 2010 (Pub. L. No. 111-152) [for which the
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business offers to pay at least 80 percent of the premiums or other
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charges assessed for employee-only coverage under the plan,
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regardless of whether an employee may voluntarily waive the
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coverage]; and |
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(E) pays at least 110 percent of[:
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[(i)
the county average weekly wage for
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manufacturing jobs in the county where the job is located; or
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[(ii)] the county average weekly wage for |
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all jobs in the county where the job is located[, if the property
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owner creates more than 1,000 jobs in that county]. |
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SECTION 3. Sections 313.024(a), (b), and (d), Tax Code, are |
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amended to read as follows: |
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(a) This subchapter and Subchapter [Subchapters] C [and D] |
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apply only to property owned by an entity subject to the tax imposed |
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by [which] Chapter 171 [applies]. |
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(b) To be eligible for a limitation on appraised value under |
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this subchapter, the entity must use the property for [in
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connection with]: |
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(1) manufacturing; |
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(2) research and development; |
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(3) a clean coal project, as defined by Section 5.001, |
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Water Code; |
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(4) an advanced clean energy project, as defined by |
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Section 382.003, Health and Safety Code; |
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(5) renewable energy electric generation; |
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(6) electric power generation using integrated |
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gasification combined cycle technology; |
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(7) nuclear electric power generation; [or] |
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(8) a computer center primarily used in connection |
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with one or more activities described by Subdivisions (1) through |
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(7) conducted by the entity; or |
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(9) a Texas priority project. |
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(d) To be eligible for a limitation on appraised value under |
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this subchapter, [at least 80 percent of all] the new jobs created |
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by the property owner under this chapter must be qualifying jobs as |
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defined by Section 313.021(3). |
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SECTION 4. Section 313.024(e), Tax Code, is amended by |
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adding Subdivision (7) to read as follows: |
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(7) "Texas priority project" means a project on which |
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the applicant has committed to expend or allocate a qualified |
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investment of more than $1 billion. |
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SECTION 5. Sections 313.025(a-1), (b), (b-1), (c), (d), |
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(d-1), (e), (f-1), (g), and (i), Tax Code, are amended to read as |
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follows: |
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(a-1) Within seven days of the receipt of each document, the |
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school district shall submit to the comptroller a copy of the |
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application and the proposed agreement between the applicant and |
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the school district. If the applicant submits an economic analysis |
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of the proposed project [is submitted] to the school district, the |
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district shall submit a copy of the analysis to the comptroller. In |
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addition, the school district shall submit to the comptroller any |
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subsequent revision of or amendment to any of those documents |
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within seven days of its receipt. The comptroller shall publish |
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each document received from the school district under this |
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subsection on the comptroller's Internet website. If the school |
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district maintains a generally accessible Internet website, the |
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district shall provide on its website a link to the location of |
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those documents posted on the comptroller's website in compliance |
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with this subsection. This subsection does not require the |
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comptroller to post information that is confidential under Section |
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313.028. |
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(b) The governing body of a school district is not required |
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to consider an application for a limitation on appraised value |
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[that is filed with the governing body under Subsection (a)]. If |
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the governing body of the school district elects [does elect] to |
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consider an application, the governing body shall deliver a copy |
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[three copies] of the application to the comptroller and request |
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that the comptroller conduct [provide] an economic impact |
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evaluation of the investment proposed by the application. In |
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addition, the governing body may request that the comptroller |
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submit a recommendation as to whether the new jobs creation |
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requirement should be reduced or waived and, if reduced, the number |
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of new jobs that should be required to be created. The [to the
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school district.
Except as provided by Subsection (b-1), the] |
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comptroller shall conduct or contract with a third person to |
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conduct the economic impact evaluation, which shall be completed |
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and provided to the governing body of the school district, along |
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with the comptroller's certificate or written explanation under |
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Subsection (d)(1) and recommendation under Subsection (d)(2), if |
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requested, as soon as practicable but not later than the 90th day |
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after the date the comptroller receives the application. The |
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governing body shall provide to the comptroller or to a third person |
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contracted by the comptroller to conduct the economic impact |
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evaluation any requested information. A methodology to allow |
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comparisons of economic impact for different schedules of the |
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addition of qualified investment or qualified property may be |
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developed as part of the economic impact evaluation. The governing |
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body shall provide a copy of the economic impact evaluation to the |
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applicant on request. The comptroller may charge the applicant |
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[and collect] a fee sufficient to cover the costs of providing the |
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economic impact evaluation. The governing body of a school |
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district shall approve or disapprove an application not later than |
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the 150th [before the 151st] day after the date the application is |
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filed, unless the economic impact evaluation has not been received |
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or an extension is agreed to by the governing body and the |
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applicant. |
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(b-1) The comptroller shall promptly deliver a [indicate on
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one] copy of the application [the date the comptroller received the
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application and deliver that copy] to the Texas Education Agency. |
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The Texas Education Agency shall determine the effect that the |
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applicant's proposal will have on the number or size of the school |
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district's instructional facilities [, as required to be included
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in the economic impact evaluation by Section 313.026(a)(9),] and |
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submit a written report containing the agency's determination to |
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the school district [comptroller]. The governing body of the |
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school district shall provide any requested information to the |
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Texas Education Agency. Not later than the 45th day after the date |
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the Texas Education Agency receives [application indicates that the
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comptroller received] the application, the Texas Education Agency |
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shall make the required determination and submit the agency's |
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written report to the governing body of the school district |
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[comptroller.
A third person contracted by the comptroller to
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conduct an economic impact evaluation of an application is not
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required to make a determination that the Texas Education Agency is
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required to make and report to the comptroller under this
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subsection]. |
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(c) In determining whether to approve [grant] an |
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application, the governing body of the school district is entitled |
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to request and receive assistance from: |
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(1) the comptroller; |
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(2) the Texas [Department of] Economic Development and |
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Tourism Office; |
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(3) the Texas Workforce Investment Council; and |
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(4) the Texas Workforce Commission. |
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(d) Not later than the 90th [Before the 91st] day after the |
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date the comptroller receives the copy of the application, the |
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comptroller shall: |
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(1) issue a certificate for a limitation on appraised |
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value of the property and provide the certificate to the governing |
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body of the school district or provide the governing body a written |
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explanation of the comptroller's decision not to issue a |
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certificate; and |
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(2) if requested by the governing body of the school |
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district, submit [a recommendation] to the governing body a |
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recommendation [of the school district] as to whether the new jobs |
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creation requirement should be reduced or waived and, if reduced, |
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the number of new jobs that should be required to be created |
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[application should be approved or disapproved]. |
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(d-1) The governing body of a school district may not |
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approve an application unless [that] the comptroller submits to the |
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governing body a certificate for a limitation on appraised value of |
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the property [has recommended should be disapproved only if:
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[(1)
the governing body holds a public hearing the
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sole purpose of which is to consider the application and the
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comptroller's recommendation; and
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[(2)
at a subsequent meeting of the governing body
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held after the date of the public hearing, at least two-thirds of
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the members of the governing body vote to approve the application]. |
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(e) Before approving or disapproving an application under |
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this subchapter that the governing body of the school district |
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elects to consider, the governing body [of the school district] |
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must make a written finding as to each criterion listed in Section |
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313.026. The governing body shall deliver a copy of those findings |
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to the applicant. |
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(f-1) Notwithstanding any other provision of this chapter |
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[to the contrary, including Section 313.003(2) or 313.004(3)(A) or
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(B)(iii)], the governing body of a school district may waive or |
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reduce the new jobs creation requirement in Section |
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313.021(2)(A)(iv)(b) or 313.051(b) only [and approve an
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application] if the comptroller determines [governing body makes a
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finding] that the jobs creation requirement exceeds the industry |
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standard for the number of employees reasonably necessary for the |
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operation of the facility of the property owner that is described in |
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the application and recommends waiving or reducing the requirement. |
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(g) The Texas [Department of] Economic Development and |
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Tourism Office or its successor may recommend that a school |
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district approve an application [grant a person a limitation on
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appraised value] under this chapter. In determining whether to |
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approve [grant] an application, the governing body of the school |
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district shall consider any recommendation made by the Texas |
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[Department of] Economic Development and Tourism Office or its |
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successor. |
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(i) If the comptroller's determination under Subsection (h) |
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that the property does not meet the requirements of Section 313.024 |
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for eligibility for a limitation on appraised value under this |
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subchapter becomes final, the comptroller is not required to |
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provide an economic impact evaluation of the application or to |
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submit a certificate for a limitation on appraised value of the |
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property or a written explanation of the decision not to issue a |
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certificate [recommendation to the school district as to whether
|
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the application should be approved or disapproved], and the |
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governing body of the school district may not grant the |
|
application. |
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SECTION 6. Section 313.026, Tax Code, is amended to read as |
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follows: |
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Sec. 313.026. ECONOMIC IMPACT EVALUATION. (a) The |
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economic impact evaluation of the application must include the |
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following: |
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(1) the determination [recommendations] of the |
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comptroller as to whether to issue a certificate for a limitation on |
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appraised value of the property and, if requested, the |
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recommendation of the comptroller regarding waiver or reduction of |
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the new jobs creation requirement; |
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(2) the name of the school district; |
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(3) the name of the applicant; |
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(4) a description of the [general nature of the] |
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applicant's proposed investment, including the useful life of the |
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investment; |
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(5) the relationship between the applicant's industry |
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and the types of qualifying jobs to be created by the applicant to |
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the long-term economic growth plans of this state [as described in
|
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the strategic plan for economic development submitted by the Texas
|
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Strategic Economic Development Planning Commission under Section
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481.033, Government Code, as that section existed before February
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1, 1999]; |
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(6) the amount [relative level] of the applicant's |
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investment per qualifying job to be created by the applicant; |
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(7) the number of qualifying jobs to be created by the |
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applicant; |
|
(8) the wages, salaries, and benefits to be offered by |
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the applicant to qualifying job holders; |
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(9) the ability of the applicant to locate or relocate |
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in another state or another region of this state; |
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(10) the fiscal impact the project will have on this |
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state and individual local units of government, including: |
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(A) tax and other revenue gains, direct or |
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indirect, that would be realized during the qualifying time period, |
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the limitation period, and a period of time after the limitation |
|
period considered appropriate by the comptroller; and |
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(B) economic effects of the project, including |
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the impact on jobs and income, during the qualifying time period, |
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the limitation period, and a period of time after the limitation |
|
period considered appropriate by the comptroller; |
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(11) the economic condition of the region of the state |
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at the time the person's application is being considered; |
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(12) [the number of new facilities built or expanded
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in the region during the two years preceding the date of the
|
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application that were eligible to apply for a limitation on
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appraised value under this subchapter;
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[(13)
the effect of the applicant's proposal, if
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approved, on the number or size of the school district's
|
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instructional facilities, as defined by Section 46.001, Education
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Code;
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[(14)] the projected market value of the qualified |
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property of the applicant as determined by the comptroller; |
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(13) [(15)] the proposed limitation on appraised |
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value for the qualified property of the applicant; |
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(14) [(16)] the projected dollar amount of the taxes |
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that would be imposed on the qualified property, for each year of |
|
the agreement, if the property does not receive a limitation on |
|
appraised value with assumptions of the projected appreciation or |
|
depreciation of the investment and projected tax rates clearly |
|
stated; |
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(15) [(17)] the projected dollar amount of the taxes |
|
that would be imposed on the qualified property, for each tax year |
|
of the agreement, if the property receives a limitation on |
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appraised value with assumptions of the projected appreciation or |
|
depreciation of the investment clearly stated; |
|
(16) [(18)] the projected effect on the Foundation |
|
School Program of payments to the district for each year of the |
|
agreement, as determined by the school district and verified by the |
|
Texas Education Agency; |
|
(17) [(19)
the projected future tax credits if the
|
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applicant also applies for school tax credits under Section
|
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313.103; and
|
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[(20)] the total amount of taxes projected to be lost |
|
or gained by the district over the life of the agreement computed by |
|
subtracting the projected taxes stated in Subdivision (15) [(17)] |
|
from the projected taxes stated in Subdivision (14); and |
|
(18) the industry standard for the number of employees |
|
reasonably necessary for the operation of the facility described in |
|
the application, if the school district has requested a |
|
recommendation under Section 313.025(b) [(16)]. |
|
(b) Except as provided by Subsections (c) and (d), the [The] |
|
comptroller's determination and recommendation described by |
|
Subsection (a)(1) [recommendations] shall be based on the criteria |
|
listed in Subsections (a)(5)-(17) or (a)(5)-(18), as appropriate, |
|
[(a)(5)-(20)] and on any other information available to the |
|
comptroller, including information provided by the governing body |
|
of the school district [under Section 313.025(b)]. |
|
(c) The comptroller may not issue a certificate for a |
|
limitation on appraised value under this chapter for property |
|
described in an application unless the comptroller determines that: |
|
(1) the project proposed by the applicant is |
|
reasonably likely to generate, before the 25th anniversary of the |
|
beginning of the limitation period, tax revenue, including state |
|
tax revenue, school district maintenance and operations ad valorem |
|
tax revenue attributable to the project, and any other tax revenue |
|
attributable to the effect of the project on the economy of the |
|
state, in an amount sufficient to offset the school district |
|
maintenance and operations ad valorem tax revenue lost as a result |
|
of the agreement; and |
|
(2) the limitation on appraised value is a significant |
|
consideration by the applicant in determining whether to invest |
|
capital and construct the project in this state. |
|
(d) The comptroller shall state in writing the basis for the |
|
determinations made under Subsections (c)(1) and (2). |
|
(e) Notwithstanding Subsections (c) and (d), if the |
|
comptroller makes a qualitative determination that other |
|
considerations associated with the project result in a net positive |
|
benefit to the state, the comptroller may issue the certificate. |
|
SECTION 7. Section 313.0265(b), Tax Code, is amended to |
|
read as follows: |
|
(b) The comptroller shall designate the following as |
|
substantive: |
|
(1) each application requesting a limitation on |
|
appraised value; and |
|
(2) the economic impact evaluation made in connection |
|
with the application [; and
|
|
[(3)
each application requesting school tax credits
|
|
under Section 313.103]. |
|
SECTION 8. Sections 313.027(a), (f), (h), and (i), Tax |
|
Code, are amended to read as follows: |
|
(a) If the person's application is approved by the governing |
|
body of the school district, for each of the first 10 [eight] tax |
|
years that begin after the applicable qualifying time period, the |
|
appraised value for school district maintenance and operations ad |
|
valorem tax purposes of the person's qualified property as |
|
described in the agreement between the person and the district |
|
entered into under this section in the school district may not |
|
exceed the lesser of: |
|
(1) the market value of the property; or |
|
(2) subject to Subsection (b), the amount agreed to by |
|
the governing body of the school district. |
|
(f) In addition, the agreement: |
|
(1) must incorporate each relevant provision of this |
|
subchapter and, to the extent necessary, include provisions for the |
|
protection of future school district revenues through the |
|
adjustment of the minimum valuations, the payment of revenue |
|
offsets, and other mechanisms agreed to by the property owner and |
|
the school district; |
|
(2) may provide that the property owner will protect |
|
the school district in the event the district incurs extraordinary |
|
education-related expenses related to the project that are not |
|
directly funded in state aid formulas, including expenses for the |
|
purchase of portable classrooms and the hiring of additional |
|
personnel to accommodate a temporary increase in student enrollment |
|
attributable to the project; |
|
(3) must require the property owner to maintain a |
|
viable presence in the school district for at least three years |
|
after the date the limitation on appraised value of the owner's |
|
property expires; |
|
(4) must provide for the termination of the agreement, |
|
the recapture of ad valorem tax revenue lost as a result of the |
|
agreement if the owner of the property fails to comply with the |
|
terms of the agreement, and payment of a penalty or interest, or |
|
both, on that recaptured ad valorem tax revenue; |
|
(5) may specify any conditions the occurrence of which |
|
will require the district and the property owner to renegotiate all |
|
or any part of the agreement; [and] |
|
(6) must specify the ad valorem tax years covered by |
|
the agreement; and |
|
(7) must be in a form approved by the comptroller. |
|
(h) The agreement between the governing body of the school |
|
district and the applicant may provide for a deferral of the date on |
|
which the qualifying time period for the project is to commence or, |
|
subsequent to the date the agreement is entered into, be amended to |
|
provide for such a deferral. The agreement may not provide for the |
|
deferral of the date on which the qualifying time period is to |
|
commence to a date later than January 1 of the sixth tax year |
|
beginning after the date the application is approved. This |
|
subsection may not be construed to permit a qualifying time period |
|
that has commenced to continue for more than the number of years |
|
applicable to the project under Section 313.021(4). |
|
(i) A person and the school district may not enter into an |
|
agreement under which the person agrees to provide supplemental |
|
payments to a school district or to an entity that exists primarily |
|
to provide financial or material support to a school district in an |
|
amount that exceeds an amount equal to the greater of $100 per |
|
student per year in average daily attendance, as defined by Section |
|
42.005, Education Code, or $50,000 per year, or in a tax year other |
|
than a tax year in which the limitation on appraised value is in |
|
effect [for a period that exceeds the period beginning with the
|
|
period described by Section 313.021(4) and ending with the period
|
|
described by Section 313.104(2)(B) of this code]. This subsection |
|
applies only to an agreement entered into in anticipation of or in |
|
consideration for a school district's approval of an application |
|
for a limitation on appraised value under this subchapter. This |
|
subsection does not apply to a payment under [limit does not apply
|
|
to amounts described by] Subsection (f)(1) or (2) [of this
|
|
section]. |
|
SECTION 9. Section 313.0275, Tax Code, is amended by adding |
|
Subsection (d) to read as follows: |
|
(d) In the event of a casualty loss that prevents a person |
|
from complying with Subsection (a), the person may request and the |
|
comptroller may grant a waiver of the penalty imposed under |
|
Subsection (b). |
|
SECTION 10. Section 313.031, Tax Code, is amended to read as |
|
follows: |
|
Sec. 313.031. RULES AND FORMS; FEES. (a) The comptroller |
|
shall: |
|
(1) adopt rules and forms necessary for the |
|
implementation and administration of this chapter, including rules |
|
for determining whether a property owner's property qualifies as a |
|
qualified investment under Section 313.021(1); and |
|
(2) provide without charge one copy of the rules and |
|
forms to any school district and to any person who states that the |
|
person intends to apply for a limitation on appraised value under |
|
this subchapter [or a tax credit under Subchapter D]. |
|
(a-1) The comptroller by official action may establish |
|
reasonable nonrefundable fees to be paid by property owners who |
|
apply to a school district for a limitation on the value of the |
|
person's property under this subchapter. The amount of a fee must |
|
be reasonable and may not exceed the estimated cost to the |
|
comptroller of performing the comptroller's duties under this |
|
chapter. |
|
(b) The governing body of a school district by official |
|
action shall establish reasonable nonrefundable application fees |
|
to be paid by property owners who apply to the district for a |
|
limitation on the appraised value of the person's property under |
|
this subchapter. The amount of an application fee must be |
|
reasonable and may not exceed the estimated cost to the district of |
|
processing and acting on an application, including any cost to the |
|
school district associated with [the cost of] the economic impact |
|
evaluation required by Section [Sections] 313.025 [and 313.026]. |
|
SECTION 11. Section 313.032, Tax Code, is amended by |
|
amending Subsections (a) and (c) and adding Subsections (b-1) and |
|
(d) to read as follows: |
|
(a) Before the beginning of each regular session of the |
|
legislature, the comptroller shall submit to the lieutenant |
|
governor, the speaker of the house of representatives, and each |
|
other member of the legislature a report on the agreements entered |
|
into under this chapter that includes: |
|
(1) an assessment of the following with regard to the |
|
agreements entered into under this chapter, considered in the |
|
aggregate: |
|
(A) the total number of jobs created, direct and |
|
otherwise, in this state; |
|
(B) the total effect on personal income, direct |
|
and otherwise, in this state; |
|
(C) the total amount of investment in this state; |
|
(D) the total taxable value of property on the |
|
tax rolls in this state, including property for which the |
|
limitation period has expired; |
|
(E) the total value of property not on the tax |
|
rolls in this state as a result of agreements entered into under |
|
this chapter; and |
|
(F) the total fiscal effect on the state and |
|
local governments; and |
|
(2) an assessment of [assessing] the progress of each |
|
agreement made under this chapter that states[.
The report must be
|
|
based on data certified to the comptroller by each recipient of a
|
|
limitation on appraised value under this subchapter and state] for |
|
each agreement: |
|
(A) [(1)] the number of qualifying jobs each |
|
recipient of a limitation on appraised value committed to create; |
|
(B) [(2)] the number of qualifying jobs each |
|
recipient created; |
|
(C) [(3)] the total amount of wages and the |
|
median wage of the qualifying [new] jobs each recipient created; |
|
(D) [(4)] the amount of the qualified investment |
|
each recipient committed to spend or allocate for each project; |
|
(E) [(5)] the amount of the qualified investment |
|
each recipient spent or allocated for each project; |
|
(F) [(6)] the market value of the qualified |
|
property of each recipient as determined by the applicable chief |
|
appraiser, including property that is no longer eligible for a |
|
limitation on appraised value under the agreement; |
|
(G) [(7)] the limitation on appraised value for |
|
the qualified property of each recipient; |
|
(H) [(8)] the dollar amount of the taxes that |
|
would have been imposed on the qualified property if the property |
|
had not received a limitation on appraised value; and |
|
(I) [(9)] the dollar amount of the taxes imposed |
|
on the qualified property[;
|
|
[(10)
the number of new jobs created by each recipient
|
|
in each sector of the North American Industry Classification
|
|
System; and
|
|
[(11)
of the number of new jobs each recipient
|
|
created, the number of jobs created that provide health benefits
|
|
for employees]. |
|
(b-1) In preparing the portion of the report described by |
|
Subsection (a)(1), the comptroller may use standard economic |
|
estimation techniques, including economic multipliers. |
|
(c) The portion of the report described by Subsection (a)(2) |
|
must be based on data certified to the comptroller by each recipient |
|
or former recipient of a limitation on appraised value under this |
|
chapter. |
|
(d) The comptroller may require a recipient or former |
|
recipient of a limitation on appraised value under this chapter to |
|
submit, on a form the comptroller provides, information required to |
|
complete the report. |
|
SECTION 12. The heading to Subchapter C, Chapter 313, Tax |
|
Code, is amended to read as follows: |
|
SUBCHAPTER C. LIMITATION ON APPRAISED VALUE OF PROPERTY IN |
|
STRATEGIC INVESTMENT AREA OR CERTAIN RURAL SCHOOL DISTRICTS |
|
SECTION 13. Section 313.051, Tax Code, is amended to read as |
|
follows: |
|
Sec. 313.051. APPLICABILITY. (a) In this section, |
|
"strategic investment area" means an area the comptroller |
|
determines under Subsection (a-3) is: |
|
(1) a county within this state with unemployment above |
|
the state average and per capita income below the state average; |
|
(2) an area within this state that is a federally |
|
designated urban enterprise community or an urban enhanced |
|
enterprise community; or |
|
(3) a defense economic readjustment zone designated |
|
under Chapter 2310, Government Code. |
|
(a-1) This subchapter applies only to a school district that |
|
has territory in: |
|
(1) an area that qualifies [qualified] as a strategic |
|
investment area [under Subchapter O, Chapter 171, immediately
|
|
before that subchapter expired]; or |
|
(2) a county: |
|
(A) that has a population of less than 50,000; |
|
and |
|
(B) in which, from 2000 [1990] to 2010 [2000], |
|
according to the federal decennial census, the population: |
|
(i) remained the same; |
|
(ii) decreased; or |
|
(iii) increased, but at a rate of not more |
|
than the average rate of increase in the state during that period |
|
[three percent per annum]. |
|
(a-2) [(a-1)] Notwithstanding Subsection (a-1) [(a)], if on |
|
January 1, 2002, this subchapter applied to a school district in |
|
whose territory is located a federal nuclear facility, this |
|
subchapter continues to apply to the school district regardless of |
|
whether the school district ceased or ceases to be described by |
|
Subsection (a-1) [(a)] after that date. |
|
(a-3) Not later than September 1 of each year, the |
|
comptroller shall determine areas that qualify as a strategic |
|
investment area using the most recently completed full calendar |
|
year data available on that date and, not later than October 1, |
|
shall publish a list and map of the designated areas. A |
|
determination under this subsection is effective for the following |
|
tax year for purposes of this subchapter. |
|
(b) The governing body of a school district to which this |
|
subchapter applies may enter into an agreement in the same manner as |
|
a school district to which Subchapter B applies may do so under |
|
Subchapter B, subject to Sections 313.052-313.054. Except as |
|
otherwise provided by this subchapter, the provisions of Subchapter |
|
B apply to a school district to which this subchapter applies. For |
|
purposes of this subchapter, a property owner is required to create |
|
[only] at least 10 new jobs on the owner's qualified property. At |
|
least 80 percent of all the new jobs created must be qualifying jobs |
|
as defined by Section 313.021(3) [, except that, for a school
|
|
district described by Subsection (a)(2), each qualifying job must
|
|
pay at least 110 percent of the average weekly wage for
|
|
manufacturing jobs in the region designated for the regional
|
|
planning commission, council of governments, or similar regional
|
|
planning agency created under Chapter 391, Local Government Code,
|
|
in which the district is located]. |
|
SECTION 14. The heading to Subchapter E, Chapter 313, Tax |
|
Code, is amended to read as follows: |
|
SUBCHAPTER E. AVAILABILITY OF TAX CREDIT AFTER PROGRAM |
|
EXPIRES OR IS REPEALED |
|
SECTION 15. Section 313.171(b), Tax Code, is amended to |
|
read as follows: |
|
(b) The repeal [expiration] of Subchapter D does not affect |
|
a property owner's entitlement to a tax credit granted under |
|
Subchapter D if the property owner qualified for the tax credit |
|
before the repeal [expiration] of Subchapter D. |
|
SECTION 16. Section 42.2515(a), Education Code, is amended |
|
to read as follows: |
|
(a) For each school year, a school district, including a |
|
school district that is otherwise ineligible for state aid under |
|
this chapter, is entitled to state aid in an amount equal to the |
|
amount of all tax credits credited against ad valorem taxes of the |
|
district in that year under former Subchapter D, Chapter 313, Tax |
|
Code. |
|
SECTION 17. Section 42.302(e), Education Code, is amended |
|
to read as follows: |
|
(e) For purposes of this section, school district taxes for |
|
which credit is granted under former Subchapter D, Chapter 313, Tax |
|
Code, are considered taxes collected by the school district as if |
|
the taxes were paid when the credit for the taxes was granted. |
|
SECTION 18. The following provisions of the Tax Code are |
|
repealed: |
|
(1) Sections 313.008, 313.009, and 313.021(5); and |
|
(2) Subchapter D, Chapter 313. |
|
SECTION 19. Chapter 313, Tax Code, as amended by this Act, |
|
applies only to an application filed under that chapter on or after |
|
the effective date of this Act. An application filed under that |
|
chapter before the effective date of this Act is governed by the law |
|
in effect on the date the application was filed, and the former law |
|
is continued in effect for that purpose. |
|
SECTION 20. The comptroller shall make the initial |
|
determination under Section 313.051(a-3), Tax Code, as added by |
|
this Act, not later than September 1, 2014, and shall publish the |
|
initial list and map required by that subsection not later than |
|
October 1, 2014. |
|
SECTION 21. This Act takes effect January 1, 2014. |