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  H.B. No. 3676
 
 
 
 
AN ACT
  relating to the Texas Economic Development Act.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 313.007, Tax Code, is amended to read as
  follows:
         Sec. 313.007.  EXPIRATION.  Subchapters B, C, and D expire
  December 31, 2014 [2011].
         SECTION 2.  Section 313.021, Tax Code, is amended to read as
  follows:
         Sec. 313.021.  DEFINITIONS.  In this subchapter:
               (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); [or]
                     (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), [or] (D), or (E).
               (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 [owner] 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[,
  as defined by Section 481.151, Government Code,] 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.
               (4)  "Qualifying time period" means:
                     (A)  the period that begins on the date that a
  person's application for a limitation on appraised value under this
  subchapter is approved by the governing body of the school district
  and ends on December 31 of the second tax year that begins after
  that date [first two tax years that begin on or after the date a
  person's application for a limitation on appraised value under this
  subchapter is approved], except as provided by Paragraph (B) or (C)
  of this subdivision or Section 313.027(h); [or]
                     (B)  in connection with a nuclear electric power
  generation facility, the first seven tax years that begin on or
  after the third anniversary of the date the school district
  approves the property owner's application for a limitation on
  appraised value under this subchapter, unless a shorter time period
  is agreed to by the governing body of the school district and the
  property owner; or
                     (C)  in connection with an advanced clean energy
  project, as defined by Section 382.003, Health and Safety Code, the
  first five tax years that begin on or after the third anniversary of
  the date the school district approves the property owner's
  application for a limitation on appraised value under this
  subchapter, unless a shorter time period is agreed to by the
  governing body of the school district and the property owner.
               (5)  "County average weekly wage for manufacturing
  jobs" means:
                     (A)  the average weekly wage in a county for
  manufacturing jobs during the most recent four quarterly periods
  for which data is available at the time a person submits an
  application for a limitation on appraised value under this
  subchapter, as computed by the Texas Workforce Commission; or
                     (B)  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 county is
  located during the most recent four quarterly periods for which
  data is available at the time a person submits an application for a
  limitation on appraised value under this subchapter, as computed by
  the Texas Workforce Commission.
         SECTION 3.  Section 313.024(b), Tax Code, is amended to read
  as follows:
         (b)  To be eligible for a limitation on appraised value under
  this subchapter, the entity must use the property 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; [or]
               (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.
         SECTION 4.  Section 313.024(e), Tax Code, is amended by
  amending Subdivision (1) and adding Subdivisions (5) and (6) to
  read as follows:
               (1)  "Manufacturing" means an establishment primarily
  engaged in activities described in sectors 31-33 of the 2007 North
  American Industry Classification System [and "research and
  development" have the meanings assigned by Section 171.751].
               (5)  "Research and development" means an establishment
  primarily engaged in activities described in category 541710 of the
  2002 North American Industry Classification System.
               (6)  "Computer center" means an establishment
  primarily engaged in providing electronic data processing and
  information storage.
         SECTION 5.  Section 313.025, Tax Code, is amended by
  amending Subsections (a), (b), and (d) and adding Subsections
  (a-1), (d-1), (h), and (i) to read as follows:
         (a)  The owner or lessee of, or the holder of another
  possessory interest in, any qualified property described by Section
  313.021(2)(A), (B), or (C) may apply to the governing body of the
  school district in which the property is located for a limitation on
  the appraised value for school district maintenance and operations
  ad valorem tax purposes of the person's qualified property. An
  application must be made on the form prescribed by the comptroller
  and include the information required by the comptroller, and it
  must be accompanied by:
               (1)  the application fee established by the governing
  body of the school district;
               (2)  information sufficient to show that the real and
  personal property identified in the application as qualified
  property meets the applicable criteria established by Section
  313.021(2); and
               (3)  information relating to each applicable criterion
  listed in Section 313.026.
         (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 agreement between the applicant and the school
  district. If 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 does elect to consider an
  application, the governing body shall deliver three copies of the
  application to the comptroller and request that the comptroller
  provide an economic impact evaluation of the application to the
  school district.  Except as provided by Subsection (b-1), the
  comptroller shall conduct or contract with a third person to
  conduct the evaluation, which shall be completed and provided to
  the governing body of the school district as soon as practicable.  
  The governing body shall provide to the comptroller or third person
  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 evaluation to the applicant on request.  The
  comptroller may charge 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 before the 151st [121st] 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.
         (d)  Before the 91st [61st] day after the date the
  comptroller receives the copy of the application, the comptroller
  shall submit a recommendation to the governing body of the school
  district as to whether the application should be approved or
  disapproved.
         (d-1)  The governing body of a school district may approve an
  application that the comptroller 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.
         (h)  After receiving a copy of the application, the
  comptroller shall determine whether the property meets the
  requirements of Section 313.024 for eligibility for a limitation on
  appraised value under this subchapter. The comptroller shall
  notify the governing body of the school district of the
  comptroller's determination and provide the applicant an
  opportunity for a hearing before the determination becomes final.
  A hearing under this subsection is a contested case hearing and
  shall be conducted by the State Office of Administrative Hearings
  in the manner provided by Section 2003.101, Government Code. The
  applicant has the burden of proof on each issue in the hearing.  The
  applicant may seek judicial review of the comptroller's
  determination in a Travis County district court under the
  substantial evidence rule as provided by Subchapter G, Chapter
  2001, Government Code.
         (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 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.  Sections 313.026(a) and (b), Tax Code, are
  amended to read as follows:
         (a)  The economic impact evaluation of the application must
  include the following:
               (1)  the recommendations of the comptroller;
               (2)  the name of the school district;
               (3)  the name of the applicant;
               (4)  the general nature of the applicant's investment;
               (5) [(2)]  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) [(3)]  the 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) [(4)]  the wages, salaries, and benefits to be
  offered by the applicant to qualifying job holders;
               (9) [(5)]  the ability of the applicant to locate or
  relocate in another state or another region of this state;
               (10) [(6)]  the impact the project [added
  infrastructure] will have on this state and individual local units
  of government [the region], 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 [by the school
  district]; and
                     (B)  [subsequent] 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 [on the local and regional tax bases];
               (11) [(7)]  the economic condition of the region of the
  state at the time the person's application is being considered;
               (12) [(8)]  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; [and]
               (13) [(9)]  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;
               (15)  the proposed limitation on appraised value for
  the qualified property of the applicant;
               (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;
               (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;
               (18)  the projected effect on the Foundation School
  Program of payments to the district for each year of the agreement;
               (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 (17) from the
  projected taxes stated in Subdivision (16).
         (b)  The comptroller's recommendations shall be based on the
  criteria listed in Subsections (a)(5)-(20) [(a)(2)-(9)] 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).
         SECTION 7.  Subchapter B, Chapter 313, Tax Code, is amended
  by adding Section 313.0265 to read as follows:
         Sec. 313.0265.  DISCLOSURE OF APPRAISED VALUE LIMITATION
  INFORMATION. (a)  The comptroller shall post on the comptroller's
  Internet website each document or item of information the
  comptroller designates as substantive before the 15th day after the
  date the document or item of information was received or created.
  Each document or item of information must continue to be posted
  until the appraised value limitation expires.
         (b)  The comptroller shall designate the following as
  substantive:
               (1)  each application requesting a limitation on
  appraised value;
               (2)  the economic impact evaluation made in connection
  with the application; and
               (3)  each application requesting school tax credits
  under Section 313.103.
         (c)  If a school district maintains a generally accessible
  Internet website, the district shall maintain a link on its
  Internet website to the area of the comptroller's Internet website
  where information on each of the district's agreements to limit
  appraised value is maintained.
         SECTION 8.  Section 313.027, Tax Code, is amended by
  amending Subsection (f) and adding Subsections (h) and (i) to read
  as follows:
         (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) [(3)]  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) [(4)]  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) [(5)]  must specify the ad valorem tax years
  covered by the agreement.
         (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. 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 in an amount that exceeds an amount
  equal to $100 per student per year in average daily attendance, as
  defined by Section 42.005, Education Code, or 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 limit does not apply to amounts
  described by Subsection (f)(1) or (2) of this section.
         SECTION 9.  Subchapter B, Chapter 313, Tax Code, is amended
  by adding Section 313.0275 to read as follows:
         Sec. 313.0275.  RECAPTURE OF AD VALOREM TAX REVENUE LOST.  
  (a)  Notwithstanding any other provision of this chapter to the
  contrary, a person with whom a school district enters into an
  agreement under this subchapter must make the minimum amount of
  qualified investment during the qualifying time period and create
  the required number of qualifying jobs during each year of the
  agreement.
         (b)  If in any tax year a property owner fails to comply with
  Subsection (a), the property owner is liable to this state for a
  penalty equal to the amount computed by subtracting from the market
  value of the property for that tax year the value of the property as
  limited by the agreement and multiplying the difference by the
  maintenance and operations tax rate of the school district for that
  tax year.
         (c)  A penalty imposed under Subsection (b) becomes
  delinquent if not paid on or before February 1 of the following tax
  year.  Section 33.01 applies to the delinquent penalty in the manner
  that section applies to delinquent taxes.
         SECTION 10.  Section 313.028, Tax Code, is amended to read as
  follows:
         Sec. 313.028.  CERTAIN BUSINESS INFORMATION CONFIDENTIAL.  
  Information provided to a school district in connection with an
  application for a limitation on appraised value under this
  subchapter that describes the specific processes or business
  activities to be conducted or the specific tangible personal
  property to be located on real property covered by the application
  shall be segregated in the application from other information in
  the application and is confidential and not subject to public
  disclosure unless the governing body of the school district
  approves the application. Other information in the custody of a
  school district or the comptroller in connection with the
  application, including information related to the economic impact
  of a project or the essential elements of eligibility under this
  chapter, such as the nature and amount of the projected investment,
  employment, wages, and benefits, may not be considered confidential
  business information if the governing body of the school district
  agrees to consider the application. Information in the custody
  of a school district or the comptroller if the governing body
  approves the application is not confidential under this section.
         SECTION 11.  Section 313.051(a), Tax Code, is amended to
  read as follows:
         (a)  This subchapter applies only to a school district that
  has territory in:
               (1)  an area that qualified as a strategic investment
  area under Subchapter O, Chapter 171, immediately before that
  subchapter expired [, as defined by Section 171.721]; or
               (2)  a county:
                     (A)  that has a population of less than 50,000;
  and
                     (B)  [that is not partially or wholly located in a
  metropolitan statistical area; and
                     [(C)]  in which, from 1990 to 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 three percent per annum.
         SECTION 12.  Sections 313.103 and 313.104, Tax Code, are
  amended to read as follows:
         Sec. 313.103.  APPLICATION.  (a) An application for a tax
  credit under this subchapter must be made to the governing body of
  the school district to which the ad valorem taxes were paid. The
  application must be:
               (1)  made on the form prescribed for that purpose by the
  comptroller and verified by the applicant; and
               (2)  accompanied by:
                     (A)  a tax receipt from the collector of taxes for
  the school district showing full payment of school district ad
  valorem taxes on the qualified property for the applicable
  qualifying time period; and
                     (B)  any other document or information that the
  comptroller or the governing body considers necessary for a
  determination of the applicant's eligibility for the credit or the
  amount of the credit[; and
               [(3)     filed before September 1 of the year immediately
  following the applicable qualifying time period].
         (b)  An application for a tax credit under this subchapter or
  any information provided by the school district to the Texas
  Education Agency under Section 42.2515, Education Code, is not
  confidential.
         Sec. 313.104.  ACTION ON APPLICATION; GRANT OF CREDIT.  
  Before granting [the 90th day after the date] the application for a
  tax credit [is filed], the governing body of the school district
  shall:
               (1)  determine the person's eligibility for a tax
  credit under this subchapter;  and
               (2)  if the person's application is approved, by order
  or resolution direct the collector of taxes for the school
  district:
                     (A)  in the second and subsequent six tax years
  that begin after the date the application is approved, to credit
  against the taxes imposed on the qualified property by the district
  in that year an amount equal to one-seventh of the total amount of
  tax credit to which the person is entitled under Section 313.102,
  except that the amount of a credit granted in any of those tax years
  may not exceed 50 percent of the total amount of ad valorem school
  taxes imposed on the qualified property by the school district in
  that tax year; and
                     (B)  in the first three tax years that begin on or
  after the date the person's eligibility for the limitation under
  Subchapter B or C expires, to credit against the taxes imposed on
  the qualified property by the district an amount equal to the
  portion of the total amount of tax credit to which the person is
  entitled under Section 313.102 that was not credited against the
  person's taxes under Paragraph (A) in a tax year covered by
  Paragraph (A), except that the amount of a tax credit granted under
  this paragraph in any tax year may not exceed the total amount of ad
  valorem school taxes imposed on the qualified property by the
  school district in that tax year.
         SECTION 13.  Section 403.302, Government Code, is amended by
  amending Subsection (d) and adding Subsection (m) to read as
  follows:
         (d)  For the purposes of this section, "taxable value" means
  the market value of all taxable property less:
               (1)  the total dollar amount of any residence homestead
  exemptions lawfully granted under Section 11.13(b) or (c), Tax
  Code, in the year that is the subject of the study for each school
  district;
               (2)  one-half of the total dollar amount of any
  residence homestead exemptions granted under Section 11.13(n), Tax
  Code, in the year that is the subject of the study for each school
  district;
               (3)  the total dollar amount of any exemptions granted
  before May 31, 1993, within a reinvestment zone under agreements
  authorized by Chapter 312, Tax Code;
               (4)  subject to Subsection (e), the total dollar amount
  of any captured appraised value of property that:
                     (A)  is within a reinvestment zone created on or
  before May 31, 1999, or is proposed to be included within the
  boundaries of a reinvestment zone as the boundaries of the zone and
  the proposed portion of tax increment paid into the tax increment
  fund by a school district are described in a written notification
  provided by the municipality or the board of directors of the zone
  to the governing bodies of the other taxing units in the manner
  provided by Section 311.003(e), Tax Code, before May 31, 1999, and
  within the boundaries of the zone as those boundaries existed on
  September 1, 1999, including subsequent improvements to the
  property regardless of when made;
                     (B)  generates taxes paid into a tax increment
  fund created under Chapter 311, Tax Code, under a reinvestment zone
  financing plan approved under Section 311.011(d), Tax Code, on or
  before September 1, 1999; and
                     (C)  is eligible for tax increment financing under
  Chapter 311, Tax Code;
               (5)  for a school district for which a deduction from
  taxable value is made under Subdivision (4), an amount equal to the
  taxable value required to generate revenue when taxed at the school
  district's current tax rate in an amount that, when added to the
  taxes of the district paid into a tax increment fund as described by
  Subdivision (4)(B), is equal to the total amount of taxes the
  district would have paid into the tax increment fund if the district
  levied taxes at the rate the district levied in 2005;
               (6)  the total dollar amount of any captured appraised
  value of property that:
                     (A)  is within a reinvestment zone:
                           (i)  created on or before December 31, 2008,
  by a municipality with a population of less than 18,000; and
                           (ii)  the project plan for which includes
  the alteration, remodeling, repair, or reconstruction of a
  structure that is included on the National Register of Historic
  Places and requires that a portion of the tax increment of the zone
  be used for the improvement or construction of related facilities
  or for affordable housing;
                     (B)  generates school district taxes that are paid
  into a tax increment fund created under Chapter 311, Tax Code; and
                     (C)  is eligible for tax increment financing under
  Chapter 311, Tax Code;
               (7)  the total dollar amount of any exemptions granted
  under Section 11.251 or 11.253, Tax Code;
               (8)  the difference between the comptroller's estimate
  of the market value and the productivity value of land that
  qualifies for appraisal on the basis of its productive capacity,
  except that the productivity value estimated by the comptroller may
  not exceed the fair market value of the land;
               (9)  the portion of the appraised value of residence
  homesteads of individuals who receive a tax limitation under
  Section 11.26, Tax Code, on which school district taxes are not
  imposed in the year that is the subject of the study, calculated as
  if the residence homesteads were appraised at the full value
  required by law;
               (10)  a portion of the market value of property not
  otherwise fully taxable by the district at market value because of:
                     (A)  action required by statute or the
  constitution of this state that, if the tax rate adopted by the
  district is applied to it, produces an amount equal to the
  difference between the tax that the district would have imposed on
  the property if the property were fully taxable at market value and
  the tax that the district is actually authorized to impose on the
  property, if this subsection does not otherwise require that
  portion to be deducted; or
                     (B)  action taken by the district under Subchapter
  B or C, Chapter 313, Tax Code, before the expiration of the
  subchapter;
               (11)  the market value of all tangible personal
  property, other than manufactured homes, owned by a family or
  individual and not held or used for the production of income;
               (12)  the appraised value of property the collection of
  delinquent taxes on which is deferred under Section 33.06, Tax
  Code;
               (13)  the portion of the appraised value of property
  the collection of delinquent taxes on which is deferred under
  Section 33.065, Tax Code; and
               (14)  the amount by which the market value of a
  residence homestead to which Section 23.23, Tax Code, applies
  exceeds the appraised value of that property as calculated under
  that section.
         (m)  Subsection (d)(10) does not apply to property that was
  the subject of an application under Subchapter B or C, Chapter 313,
  Tax Code, made after May 1, 2009, that the comptroller recommended
  should be disapproved.
         SECTION 14.  Section 313.029, Tax Code, is repealed.
         SECTION 15.  Sections 313.021(1)(A), (2), and (5),
  313.024(e), and 313.025(a), Tax Code, as amended by this Act, are
  intended to clarify rather than change existing law.  The
  clarification made by Section 313.021(5), Tax Code, as amended by
  this Act, is necessary to allow the Texas Workforce Commission to
  implement that subdivision in conformance with the data collection
  requirements imposed by the federal government.
         SECTION 16.  The Legislative Budget Board shall conduct an
  effectiveness and efficiency review of the economic development
  program established under Chapter 313, Tax Code, and report the
  results of the review to the legislature not later than January 1,
  2011.
         SECTION 17.  (a)  Except as provided by Subsection (b) of
  this section:
               (1)  this Act takes effect immediately if it receives a
  vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution; and
               (2)  if this Act does not receive the vote necessary for
  immediate effect, this Act takes effect September 1, 2009.
         (b)  Sections 313.025(a-1), (h), and (i) and 313.0265, Tax
  Code, as added by this Act, take effect January 1, 2010.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3676 was passed by the House on May
  15, 2009, by the following vote:  Yeas 143, Nays 0, 1 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 3676 on May 29, 2009, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 3676 on May 31, 2009, by the following vote:  Yeas 146,
  Nays 0, 1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 3676 was passed by the Senate, with
  amendments, on May 27, 2009, by the following vote:  Yeas 25, Nays
  6; at the request of the House, the Senate appointed a conference
  committee to consider the differences between the two houses; and
  that the Senate adopted the conference committee report on H.B. No.
  3676 on May 31, 2009, by the following vote:  Yeas 26, Nays 5.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor