83R24236 SMH-F
 
  By: Hilderbran, Murphy H.B. No. 3390
 
  Substitute the following for H.B. No. 3390:
 
  By:  Hilderbran C.S.H.B. No. 3390
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the Texas Economic Development Act; authorizing a fee.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 313.002, 313.003, 313.004, and 313.007,
  Tax Code, are amended to read as follows:
         Sec. 313.002.  FINDINGS. The legislature finds that:
               (1)  many states have enacted aggressive economic
  development laws designed to attract large employers, create jobs,
  and strengthen their economies;
               (2)  given Texas' relatively high ad valorem taxes, it
  is difficult for the state to compete for new capital projects
  without temporarily limiting ad valorem taxes imposed on new
  capital investments [the State of Texas has slipped in its national
  ranking each year between 1993 and 2000 in terms of attracting major
  new manufacturing facilities to this state];
               (3)  a significant portion of the Texas economy
  continues to be based in [the] manufacturing and other
  capital-intensive industries [industry], and their [the] continued
  growth and overall health serve [of the manufacturing sector
  serves] the Texas economy well;
               (4)  without a vibrant, strong manufacturing sector,
  other sectors of the economy, especially the state's service
  sector, will also suffer adverse consequences; and
               (5)  the current ad valorem [property] tax system of
  this state does not favor capital-intensive businesses such as
  manufacturers.
         Sec. 313.003.  PURPOSES. The purposes of this chapter are
  to:
               (1)  encourage large-scale capital investments in this
  state[, especially in school districts that have an ad valorem tax
  base that is less than the statewide average ad valorem tax base of
  school districts in this state];
               (2)  create new, high-paying jobs in this state;
               (3)  attract to this state [new,] large-scale
  businesses that are exploring opportunities to locate in other
  states or other countries;
               (4)  enable state and local government officials and
  economic development professionals to compete with other states by
  authorizing economic development incentives that are comparable to
  [meet or exceed] incentives being offered to prospective employers
  by other states and to provide state and local officials with an
  effective means to attract large-scale investment;
               (5)  strengthen and improve the overall performance of
  the economy of this state;
               (6)  expand and enlarge the ad valorem [property] tax
  base of this state; and
               (7)  enhance this state's economic development efforts
  by providing state and local officials [school districts] with an
  effective [local] economic development tool [option].
         Sec. 313.004.  LEGISLATIVE INTENT. It is the intent of the
  legislature in enacting this chapter that:
               (1)  economic development decisions involving school
  district taxes should occur at the local level with oversight by the
  state and should be consistent with identifiable statewide economic
  development goals;
               (2)  this chapter should not be construed or
  interpreted to allow:
                     (A)  property owners to pool investments to create
  sufficiently large investments to qualify for an ad valorem tax
  benefit [or financial benefit] provided by this chapter;
                     (B)  an applicant for an ad valorem tax benefit
  [or financial benefit] provided by this chapter to assert that jobs
  will be eliminated if certain investments are not made if the
  assertion is not true; or
                     (C)  an entity not subject to the tax imposed by
  Chapter 171 [a sole proprietorship, partnership, or limited
  liability partnership] to receive an ad valorem tax benefit [or
  financial benefit] provided by this chapter; [and]
               (3)  in implementing this chapter, school districts
  should:
                     (A)  strictly interpret the criteria and
  selection guidelines provided by this chapter; and
                     (B)  approve only those applications for an ad
  valorem tax benefit [or financial benefit] provided by this chapter
  that:
                           (i)  enhance the local community;
                           (ii)  improve the local public education
  system;
                           (iii)  create high-paying jobs; and
                           (iv)  advance the economic development goals
  of this state; and
               (4)  in implementing this chapter, the comptroller
  should:
                     (A)  strictly interpret the criteria and
  selection guidelines provided by this chapter; and
                     (B)  issue certificates for limitations on
  appraised value only for those applications for an ad valorem tax
  benefit provided by this chapter that:
                           (i)  create high-paying jobs;
                           (ii)  provide a net benefit to the state over
  the long term; and
                           (iii)  advance the economic development
  goals of this state [as identified by the Texas Strategic Economic
  Development Planning Commission].
         Sec. 313.007.  EXPIRATION. Subchapters B and [,] C [, and D]
  expire December 31, 2024 [2014].
         SECTION 2.  Sections 313.021(1), (2), and (3), Tax Code, are
  amended to read as follows:
               (1)  "Qualified investment" means:
                     (A)  tangible personal property that is first
  placed in service in this state during the applicable qualifying
  time period that begins on or after January 1, 2002, without regard
  to whether the property is affixed to or incorporated into real
  property, and that is described as Section 1245 property by Section
  1245(a), Internal Revenue Code of 1986;
                     (B)  tangible personal property that is first
  placed in service in this state during the applicable qualifying
  time period that begins on or after January 1, 2002, without regard
  to whether the property is affixed to or incorporated into real
  property, and that is used in connection with the manufacturing,
  processing, or fabrication in a cleanroom environment of a
  semiconductor product, without regard to whether the property is
  actually located in the cleanroom environment, including:
                           (i)  integrated systems, fixtures, and
  piping;
                           (ii)  all property necessary or adapted to
  reduce contamination or to control airflow, temperature, humidity,
  chemical purity, or other environmental conditions or
  manufacturing tolerances; and
                           (iii)  production equipment and machinery,
  moveable cleanroom partitions, and cleanroom lighting;
                     (C)  tangible personal property that is first
  placed in service in this state during the applicable qualifying
  time period that begins on or after January 1, 2002, without regard
  to whether the property is affixed to or incorporated into real
  property, and that is used in connection with the operation of a
  nuclear electric power generation facility, including:
                           (i)  property, including pressure vessels,
  pumps, turbines, generators, and condensers, used to produce
  nuclear electric power; and
                           (ii)  property and systems necessary to
  control radioactive contamination;
                     (D)  tangible personal property that is first
  placed in service in this state during the applicable qualifying
  time period that begins on or after January 1, 2002, without regard
  to whether the property is affixed to or incorporated into real
  property, and that is used in connection with operating an
  integrated gasification combined cycle electric generation
  facility, including:
                           (i)  property used to produce electric power
  by means of a combined combustion turbine and steam turbine
  application using synthetic gas or another product produced by the
  gasification of coal or another carbon-based feedstock; or
                           (ii)  property used in handling materials to
  be used as feedstock for gasification or used in the gasification
  process to produce synthetic gas or another carbon-based feedstock
  for use in the production of electric power in the manner described
  by Subparagraph (i);
                     (E)  tangible personal property that is first
  placed in service in this state during the applicable qualifying
  time period that begins on or after January 1, 2010, without regard
  to whether the property is affixed to or incorporated into real
  property, and that is used in connection with operating an advanced
  clean energy project, as defined by Section 382.003, Health and
  Safety Code; [or]
                     (F)  a building or a permanent, nonremovable
  component of a building that is built or constructed during the
  applicable qualifying time period that begins on or after January
  1, 2002, and that houses tangible personal property described by
  Paragraph (A), (B), (C), (D), or (E); or
                     (G)  an existing building that, as part of a
  discrete project that increases the value and productive capacity
  of an existing property, is expanded.
               (2)  "Qualified property" means:
                     (A)  land:
                           (i)  that is located in an area designated as
  a reinvestment zone under Chapter 311 or 312 or as an enterprise
  zone under Chapter 2303, Government Code;
                           (ii)  on which a person proposes to
  construct a new building or erect or affix a new improvement that
  does not exist before the date the person submits a complete
  application [applies] for a limitation on appraised value under
  this subchapter;
                           (iii)  that is not subject to a tax abatement
  agreement entered into by a school district under Chapter 312; and
                           (iv)  on which, in connection with the new
  building or new improvement described by Subparagraph (ii), the
  owner or lessee of, or the holder of another possessory interest in,
  the land proposes to:
                                 (a)  make a qualified investment in an
  amount equal to at least the minimum amount required by Section
  313.023; and
                                 (b)  create at least 25 new jobs;
                     (B)  the new building or other new improvement
  described by Paragraph (A)(ii); and
                     (C)  tangible personal property that:
                           (i)  is not subject to a tax abatement
  agreement entered into by a school district under Chapter 312; and
                           (ii)  except for new equipment described in
  Section 151.318(q) or (q-1), is first placed in service in the new
  building or in or on the new improvement described by Paragraph
  (A)(ii), or on the land on which that new building or new
  improvement is located, if the personal property is ancillary and
  necessary to the business conducted in that new building or in or on
  that new improvement.
               (3)  "Qualifying job" means a permanent full-time job
  that:
                     (A)  requires at least 1,600 hours of work a year;
                     (B)  is not transferred from one area in this
  state to another area in this state;
                     (C)  is not created to replace a previous
  employee;
                     (D)  is covered by a group health benefit plan
  that complies with the Patient Protection and Affordable Care Act
  (Pub. L. No. 111-148) as amended by the Health Care and Education
  Reconciliation Act of 2010 (Pub. L. No. 111-152) [for which the
  business offers to pay at least 80 percent of the premiums or other
  charges assessed for employee-only coverage under the plan,
  regardless of whether an employee may voluntarily waive the
  coverage]; and
                     (E)  pays at least 110 percent of[:
                           [(i)     the county average weekly wage for
  manufacturing jobs in the county where the job is located; or
                           [(ii)]  the county average weekly wage for
  all jobs in the county where the job is located[, if the property
  owner creates more than 1,000 jobs in that county].
         SECTION 3.  Sections 313.024(a), (b), and (d), Tax Code, are
  amended to read as follows:
         (a)  This subchapter and Subchapter [Subchapters] C [and D]
  apply only to property owned by an entity subject to the tax imposed
  by [which] Chapter 171 [applies].
         (b)  To be eligible for a limitation on appraised value under
  this subchapter, the entity must use the property for [in
  connection with]:
               (1)  manufacturing;
               (2)  research and development;
               (3)  a clean coal project, as defined by Section 5.001,
  Water Code;
               (4)  an advanced clean energy project, as defined by
  Section 382.003, Health and Safety Code;
               (5)  renewable energy electric generation;
               (6)  electric power generation using integrated
  gasification combined cycle technology;
               (7)  nuclear electric power generation; [or]
               (8)  a computer center primarily used in connection
  with one or more activities described by Subdivisions (1) through
  (7) conducted by the entity; or
               (9)  a Texas priority project.
         (d)  To be eligible for a limitation on appraised value under
  this subchapter, [at least 80 percent of all] the new jobs created
  by the property owner under this chapter must be qualifying jobs as
  defined by Section 313.021(3).
         SECTION 4.  Section 313.024(e), Tax Code, is amended by
  adding Subdivision (7) to read as follows:
               (7)  "Texas priority project" means a project on which
  the applicant has committed to expend or allocate a qualified
  investment of more than $1 billion.
         SECTION 5.  Sections 313.025(a-1), (b), (b-1), (c), (d),
  (d-1), (e), (f-1), (g), and (i), Tax Code, are amended to read as
  follows:
         (a-1)  Within seven days of the receipt of each document, the
  school district shall submit to the comptroller a copy of the
  application and the proposed agreement between the applicant and
  the school district.  If the applicant submits an economic analysis
  of the proposed project [is submitted] to the school district, the
  district shall submit a copy of the analysis to the comptroller.  In
  addition, the school district shall submit to the comptroller any
  subsequent revision of or amendment to any of those documents
  within seven days of its receipt.  The comptroller shall publish
  each document received from the school district under this
  subsection on the comptroller's Internet website.  If the school
  district maintains a generally accessible Internet website, the
  district shall provide on its website a link to the location of
  those documents posted on the comptroller's website in compliance
  with this subsection.  This subsection does not require the
  comptroller to post information that is confidential under Section
  313.028.
         (b)  The governing body of a school district is not required
  to consider an application for a limitation on appraised value
  [that is filed with the governing body under Subsection (a)].  If
  the governing body of the school district elects [does elect] to
  consider an application, the governing body shall deliver a copy
  [three copies] of the application to the comptroller and request
  that the comptroller conduct [provide] an economic impact
  evaluation of the investment proposed by the application. In
  addition, the governing body may request that the comptroller
  submit a recommendation as to whether the new jobs creation
  requirement should be reduced or waived and, if reduced, the number
  of new jobs that should be required to be created. The [to the
  school district.     Except as provided by Subsection (b-1), the]
  comptroller shall conduct or contract with a third person to
  conduct the economic impact evaluation, which shall be completed
  and provided to the governing body of the school district, along
  with the comptroller's certificate or written explanation under
  Subsection (d)(1) and recommendation under Subsection (d)(2), if
  requested, as soon as practicable but not later than the 90th day
  after the date the comptroller receives the application.  The
  governing body shall provide to the comptroller or to a third person
  contracted by the comptroller to conduct the economic impact
  evaluation any requested information.  A methodology to allow
  comparisons of economic impact for different schedules of the
  addition of qualified investment or qualified property may be
  developed as part of the economic impact evaluation.  The governing
  body shall provide a copy of the economic impact evaluation to the
  applicant on request.  The comptroller may charge the applicant
  [and collect] a fee sufficient to cover the costs of providing the
  economic impact evaluation.  The governing body of a school
  district shall approve or disapprove an application not later than
  the 150th [before the 151st] day after the date the application is
  filed, unless the economic impact evaluation has not been received
  or an extension is agreed to by the governing body and the
  applicant.
         (b-1)  The comptroller shall promptly deliver a [indicate on
  one] copy of the application [the date the comptroller received the
  application and deliver that copy] to the Texas Education Agency.  
  The Texas Education Agency shall determine the effect that the
  applicant's proposal will have on the number or size of the school
  district's instructional facilities [, as required to be included
  in the economic impact evaluation by Section 313.026(a)(9),] and
  submit a written report containing the agency's determination to
  the school district [comptroller].  The governing body of the
  school district shall provide any requested information to the
  Texas Education Agency.  Not later than the 45th day after the date
  the Texas Education Agency receives [application indicates that the
  comptroller received] the application, the Texas Education Agency
  shall make the required determination and submit the agency's
  written report to the governing body of the school district
  [comptroller.   A third person contracted by the comptroller to
  conduct an economic impact evaluation of an application is not
  required to make a determination that the Texas Education Agency is
  required to make and report to the comptroller under this
  subsection].
         (c)  In determining whether to approve [grant] an
  application, the governing body of the school district is entitled
  to request and receive assistance from:
               (1)  the comptroller;
               (2)  the Texas [Department of] Economic Development and
  Tourism Office;
               (3)  the Texas Workforce Investment Council; and
               (4)  the Texas Workforce Commission.
         (d)  Not later than the 90th [Before the 91st] day after the
  date the comptroller receives the copy of the application, the
  comptroller shall:
               (1)  issue a certificate for a limitation on appraised
  value of the property and provide the certificate to the governing
  body of the school district or provide the governing body a written
  explanation of the comptroller's decision not to issue a
  certificate; and
               (2)  if requested by the governing body of the school
  district, submit [a recommendation] to the governing body a
  recommendation [of the school district] as to whether the new jobs
  creation requirement should be reduced or waived and, if reduced,
  the number of new jobs that should be required to be created 
  [application should be approved or disapproved].
         (d-1)  The governing body of a school district may not
  approve an application unless [that] the comptroller submits to the
  governing body a certificate for a limitation on appraised value of
  the property [has recommended should be disapproved only if:
               [(1)     the governing body holds a public hearing the
  sole purpose of which is to consider the application and the
  comptroller's recommendation; and
               [(2)     at a subsequent meeting of the governing body
  held after the date of the public hearing, at least two-thirds of
  the members of the governing body vote to approve the application].
         (e)  Before approving or disapproving an application under
  this subchapter that the governing body of the school district
  elects to consider, the governing body [of the school district]
  must make a written finding as to each criterion listed in Section
  313.026. The governing body shall deliver a copy of those findings
  to the applicant.
         (f-1)  Notwithstanding any other provision of this chapter
  [to the contrary, including Section 313.003(2) or 313.004(3)(A) or
  (B)(iii)], the governing body of a school district may waive or
  reduce the new jobs creation requirement in Section
  313.021(2)(A)(iv)(b) or 313.051(b) only [and approve an
  application] if the comptroller determines [governing body makes a
  finding] that the jobs creation requirement exceeds the industry
  standard for the number of employees reasonably necessary for the
  operation of the facility of the property owner that is described in
  the application and recommends waiving or reducing the requirement.
         (g)  The Texas [Department of] Economic Development and
  Tourism Office or its successor may recommend that a school
  district approve an application [grant a person a limitation on
  appraised value] under this chapter. In determining whether to
  approve [grant] an application, the governing body of the school
  district shall consider any recommendation made by the Texas
  [Department of] Economic Development and Tourism Office or its
  successor.
         (i)  If the comptroller's determination under Subsection (h)
  that the property does not meet the requirements of Section 313.024
  for eligibility for a limitation on appraised value under this
  subchapter becomes final, the comptroller is not required to
  provide an economic impact evaluation of the application or to
  submit a certificate for a limitation on appraised value of the
  property or a written explanation of the decision not to issue a
  certificate [recommendation to the school district as to whether
  the application should be approved or disapproved], and the
  governing body of the school district may not grant the
  application.
         SECTION 6.  Section 313.026, Tax Code, is amended to read as
  follows:
         Sec. 313.026.  ECONOMIC IMPACT EVALUATION. (a) The
  economic impact evaluation of the application must include the
  following:
               (1)  the determination [recommendations] of the
  comptroller as to whether to issue a certificate for a limitation on
  appraised value of the property and, if requested, the
  recommendation of the comptroller regarding waiver or reduction of
  the new jobs creation requirement;
               (2)  the name of the school district;
               (3)  the name of the applicant;
               (4)  a description of the [general nature of the]
  applicant's proposed investment, including the useful life of the
  investment;
               (5)  the relationship between the applicant's industry
  and the types of qualifying jobs to be created by the applicant to
  the long-term economic growth plans of this state [as described in
  the strategic plan for economic development submitted by the Texas
  Strategic Economic Development Planning Commission under Section
  481.033, Government Code, as that section existed before February
  1, 1999];
               (6)  the amount [relative level] of the applicant's
  investment per qualifying job to be created by the applicant;
               (7)  the number of qualifying jobs to be created by the
  applicant;
               (8)  the wages, salaries, and benefits to be offered by
  the applicant to qualifying job holders;
               (9)  the ability of the applicant to locate or relocate
  in another state or another region of this state;
               (10)  the fiscal impact the project will have on this
  state and individual local units of government, including:
                     (A)  tax and other revenue gains, direct or
  indirect, that would be realized during the qualifying time period,
  the limitation period, and a period of time after the limitation
  period considered appropriate by the comptroller; and
                     (B)  economic effects of the project, including
  the impact on jobs and income, during the qualifying time period,
  the limitation period, and a period of time after the limitation
  period considered appropriate by the comptroller;
               (11)  the economic condition of the region of the state
  at the time the person's application is being considered;
               (12)  [the number of new facilities built or expanded
  in the region during the two years preceding the date of the
  application that were eligible to apply for a limitation on
  appraised value under this subchapter;
               [(13)     the effect of the applicant's proposal, if
  approved, on the number or size of the school district's
  instructional facilities, as defined by Section 46.001, Education
  Code;
               [(14)]  the projected market value of the qualified
  property of the applicant as determined by the comptroller;
               (13) [(15)]  the proposed limitation on appraised
  value for the qualified property of the applicant;
               (14) [(16)]  the projected dollar amount of the taxes
  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;
               (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
  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
  applicant also applies for school tax credits under Section
  313.103; and
               [(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.