Bill Text: TX SB1647 | 2013-2014 | 83rd Legislature | Comm Sub


Bill Title: Relating to the Texas Economic Development Act.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2013-05-14 - Not again placed on intent calendar [SB1647 Detail]

Download: Texas-2013-SB1647-Comm_Sub.html
 
 
  By: Deuell  S.B. No. 1647
         (In the Senate - Filed March 8, 2013; March 20, 2013, read
  first time and referred to Committee on Economic Development;
  April 22, 2013, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 7, Nays 0; April 22, 2013,
  sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1647 By:  Hancock
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the Texas Economic Development Act.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 313.002 and 313.004, 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 some kind of temporary limit on 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; and
               (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 property tax system of this state
  does not favor capital-intensive businesses such as
  manufacturers].
         Sec. 313.004.  LEGISLATIVE INTENT. It is the intent of the
  legislature in enacting this chapter that:
               (1)  economic development decisions should occur at the
  local level and 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 franchise tax
  imposed by Chapter 171 because of its form of business [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 as identified by the Texas Strategic Economic
  Development Planning Commission or its successor.
         SECTION 2.  Section 313.021, Tax Code, is transferred to
  Subchapter A, Chapter 313, Tax Code, redesignated as Section
  313.0045, Tax Code, and amended to read as follows:
         Sec. 313.0045 [313.021].  DEFINITIONS. (a)  In this chapter
  [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);
                     (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 of an existing property,
  is renovated, expanded, or otherwise improved.
               (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 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), or a successor law
  [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 the lesser 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
  chapter [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, except as provided by Paragraph (B) or (C)
  of this subdivision or Section 313.014(h) [313.027(h)];
                     (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 chapter [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 chapter
  [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 chapter
  [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 chapter [subchapter], as
  computed by the Texas Workforce Commission.
               (6)  "Texas priority project" means a project
  designated by the governor:
                     (A)  on which the applicant has committed to
  expend or allocate a qualified investment of more than $1 billion;
  and
                     (B)  that the governor has certified in a letter
  provided to the applicant is in the best interest of the state
  economy.
         (b)  Unless this chapter defines a word or phrase used in
  this chapter, Section 1.04 or any other section of Title 1 or this
  title that defines the word or phrase or ascribes a meaning to the
  word or phrase applies to the word or phrase used in this chapter.
         SECTION 3.  Section 313.006(a), Tax Code, is amended to read
  as follows:
         (a)  In this section, "impact fee" means a charge or
  assessment imposed against a qualified property[, as defined by
  Section 313.021,] in order to generate revenue for funding or
  recouping the costs of capital improvements or facility expansions
  for water, wastewater, or storm water services or for roads
  necessitated by or attributable to property that receives a
  limitation on appraised value under this chapter.
         SECTION 4.  Section 313.007, Tax Code, is amended to read as
  follows:
         Sec. 313.007.  EXPIRATION. Subchapters A-1, B, and C[, and
  D] expire December 31, 2020 [2014].
         SECTION 5.  Chapter 313, Tax Code, is amended by adding
  Subchapter A-1, and a heading is added to that subchapter to read as
  follows:
  SUBCHAPTER A-1. ELIGIBILITY, APPLICATION, AND REPORTING
         SECTION 6.  Sections 313.024, 313.025, 313.026, 313.0265,
  313.027, 313.0275, 313.028, 313.030, 313.031, and 313.032, Tax
  Code, are transferred to Subchapter A-1, Chapter 313, Tax Code, as
  added by this Act, redesignated as Sections 313.011, 313.012,
  313.013, 313.0135, 313.014, 313.0145, 313.015, 313.016, 313.017,
  and 313.018, Tax Code, and amended to read as follows:
         Sec. 313.011 [313.024].  ELIGIBLE PROPERTY. (a)  This
  chapter applies [subchapter and Subchapters C and D apply] only to
  property owned by an entity to which Chapter 171 applies.
         (b)  To be eligible for a limitation on appraised value under
  this chapter [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;
               (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.
         (c)  For purposes of determining an applicant's eligibility
  for a limitation under this chapter [subchapter]:
               (1)  the land on which a building or component of a
  building described by Section 313.0045(a)(1)(E) [313.021(1)(E)] is
  located is not considered a qualified investment;
               (2)  property that is leased under a capitalized lease
  may be considered a qualified investment;
               (3)  property that is leased under an operating lease
  may not be considered a qualified investment; and
               (4)  property that is owned by a person other than the
  applicant and that is pooled or proposed to be pooled with property
  owned by the applicant may not be included in determining the amount
  of the applicant's qualifying investment.
         (d)  To be eligible for a limitation on appraised value under
  this chapter [subchapter], at least 80 percent of all the new jobs
  created by the property owner must be qualifying jobs [as defined by
  Section 313.021(3)].
         (e)  In this section:
               (1)  "Manufacturing" means an establishment primarily
  engaged in activities described in sectors 31-33 of the 2007 North
  American Industry Classification System.
               (2)  "Renewable energy electric generation" means an
  establishment primarily engaged in activities described in
  category 221119 of the 1997 North American Industry Classification
  System.
               (3)  "Integrated gasification combined cycle
  technology" means technology used to produce electricity in a
  combined combustion turbine and steam turbine application using
  synthetic gas or another product produced from the gasification of
  coal or another carbon-based feedstock, including related
  activities such as materials-handling and gasification of coal or
  another carbon-based feedstock.
               (4)  "Nuclear electric power generation" means
  activities described in category 221113 of the 2002 North American
  Industry Classification System.
               (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.
         Sec. 313.012 [313.025].  APPLICATION; ACTION ON
  APPLICATION. (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
  313.0045(a)(2) [313.021(2)]; and
               (3)  information relating to each applicable criterion
  listed in Section 313.013 [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 313.015 [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 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 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 313.013(a)(11)
  [313.026(a)(9)], and submit a written report containing the
  agency's determination to the 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 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
  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 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)  Before the 91st 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. The
  comptroller may recommend to the governing body of the school
  district that the application be approved only if the comptroller
  determines that 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-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.
         (e)  Before approving or disapproving an application under
  this chapter [subchapter] that the governing body elects to
  consider, the governing body of the school district must make a
  written finding as to each criterion listed in Section 313.013
  [313.026]. The governing body shall deliver a copy of those
  findings to the applicant.
         (f)  The governing body may approve an application only if
  the governing body finds that the information in the application is
  true and correct, finds that the applicant is eligible for the
  limitation on the appraised value of the person's qualified
  property, and determines that granting the application is in the
  best interest of the school district and this state.
         (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 the new
  jobs creation requirement in Section 313.0045(a)(2)(A)(iv)(b)
  [313.021(2)(A)(iv)(b)] or 313.051(b) and approve an application if
  the 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.
         (g)  The Texas [Department of] Economic Development and
  Tourism Office or its successor may recommend that a school
  district grant a person a limitation on appraised value under this
  chapter. In determining whether to 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.
         (h)  After receiving a copy of the application, the
  comptroller shall determine whether the property meets the
  requirements of Section 313.011 [313.024] for eligibility for a
  limitation on appraised value under this chapter [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 313.011
  [313.024] for eligibility for a limitation on appraised value under
  this chapter [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.
         Sec. 313.013 [313.026].  ECONOMIC IMPACT EVALUATION.
  (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)  a description of the general nature of the
  applicant's 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
  intended investment [per qualifying job to be created by the
  applicant];
               (6) [(7)]  the number of qualifying, construction, and
  operations jobs to be created by the applicant;
               (7) [(8)]  the wages, salaries, and benefits to be
  offered by the applicant to qualifying, construction, and
  operations job holders;
               (8) [(9)]  the ability of the applicant to locate or
  relocate in another state or another region of this state;
               (9) [(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 and
  otherwise [or indirect], that would be realized during the
  construction and operation of the facility, including [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, direct and otherwise, during the
  construction and operation of the facility, including [qualifying
  time period,] the limitation period[,] and a period of time after
  the limitation period considered appropriate by the comptroller;
               (10) [(11)]  the economic condition of the region of
  the state at the time the person's application is being considered;
               (11) [(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;
               (12) [(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; and
               (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) [(16)].
         (b)  The comptroller's recommendations shall be based on the
  criteria listed in Subsection (a) [Subsections (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 313.012(b) [313.025(b)].
         Sec. 313.0135 [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; and
               (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.
         Sec. 313.014 [313.027].  LIMITATION ON APPRAISED VALUE;
  AGREEMENT. (a)  If the person's application is approved by the
  governing body of the school district, [for each of the first 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 under Subchapter B or
  C, as applicable.
         (b)  The agreement must:
               (1)  provide that the limitation under Subsection (a)
  applies for a period of 10 years; and
               (2)  specify the beginning date of the limitation,
  which must be January 1 of the first tax year that begins after:
                     (A)  the application date;
                     (B)  the qualifying time period; or
                     (C)  the date commercial operations begin at the
  site of the project. [amount agreed to by the governing body of a
  school district under Subsection (a)(2) must be an amount in
  accordance with the following, according to the category
  established by Section 313.022 to which the school district
  belongs:
 
     CATEGORY    MINIMUM AMOUNT OF LIMITATION
 
     I    $100 million
 
     II    $80 million
 
     III    $60 million
 
     IV    $40 million
 
     V    $20 million]
         (c)  The limitation amounts prescribed under Subchapter B or
  C, as applicable, [listed in Subsection (b)] are minimum amounts. A
  school district, regardless of category, may agree to a greater
  amount than those amounts.
         (d)  The governing body of the school district and the
  property owner shall enter into a written agreement for the
  implementation of the limitation on appraised value under this
  chapter [subchapter] on the owner's qualified property.
         (e)  The agreement must describe with specificity the
  qualified investment that the person will make on or in connection
  with the person's qualified property that is subject to the
  limitation on appraised value under this chapter [subchapter].
  Other property of the person that is not specifically described in
  the agreement is not subject to the limitation unless the governing
  body of the school district, by official action, provides that the
  other property is subject to the limitation.
         (f)  In addition, the agreement:
               (1)  must incorporate each relevant provision of this
  chapter [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 five [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.
         (g)  When appraising a person's qualified property subject
  to a limitation on appraised value under this section, the chief
  appraiser shall determine the market value of the property and
  include both the market value and the appropriate value under
  Subsection (a) in the appraisal records.
         (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 fourth tax year that
  begins after the date the application is approved except that if the
  agreement is one of a series of agreements related to the same
  project, the agreement may provide for the deferral of the date on
  which the qualifying time period is to commence to a date not later
  than January 1 of the sixth tax year that begins 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 313.0045(a)(4) [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 any other entity on behalf of 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
  313.0045(a)(4) [313.021(4)] and ending December 31 of the third tax
  year after the date the person's eligibility for a limitation under
  this chapter expires [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].
         (j)  An agreement under this chapter must disclose any
  consideration promised in conjunction with the application and the
  limitation.
         Sec. 313.0145 [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 chapter [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.
         (d)  In the event of a casualty loss, a person with whom a
  school district enters into an agreement under this chapter may
  request and the school district may grant a waiver of the
  requirements of this section.
         Sec. 313.015 [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 chapter [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.
         Sec. 313.016 [313.030].  PROPERTY NOT ELIGIBLE FOR TAX
  ABATEMENT. Property subject to a limitation on appraised value in a
  tax year under this chapter [subchapter] is not eligible for tax
  abatement by a school district under Chapter 312 in that tax year.
         Sec. 313.017 [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 313.0045(a)(1) [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 chapter [subchapter or a tax credit under Subchapter D].
         (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 chapter [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 the cost of the
  economic impact evaluation required by Sections 313.012 [313.025]
  and 313.013 [313.026].
         Sec. 313.018 [313.032].  REPORT ON COMPLIANCE WITH
  AGREEMENTS. (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 effect, direct and otherwise, on the
  total amount of investment in this state;
                     (D)  the effect, direct and otherwise, on 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, direct and
  otherwise, 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 new qualifying jobs each
  recipient of a limitation on appraised value committed to create;
                     (B) [(2)]  the number of new qualifying jobs each
  recipient created;
                     (C) [(3)]  the total amount of wages [median wage]
  of the 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 for which the limitation period has
  expired;
                     (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)  The report may not include information that is
  confidential by law.
         (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
  of a limitation on appraised value under this chapter. The
  comptroller may require a recipient to submit, on a form the
  comptroller provides, information required to prepare [complete]
  the portion of the report described by that subdivision.
         SECTION 7.  The heading to Subchapter B, Chapter 313, Tax
  Code, is amended to read as follows:
  SUBCHAPTER B.  GENERAL LIMITATION ON APPRAISED VALUE OF CERTAIN
  PROPERTY USED TO CREATE JOBS
         SECTION 8.  Subsection (b), Section 313.022, Tax Code, is
  amended to read as follows:
         (b)  For purposes of determining the required minimum amount
  of a qualified investment under Section 313.0045(a)(2)(A)(iv)(a)
  [313.021(2)(A)(iv)(a)], and the minimum amount of a limitation on
  appraised value under this subchapter [Section 313.027(b)], school
  districts to which this subchapter applies are categorized
  according to the taxable value of property in the district for the
  preceding tax year determined under Subchapter M, Chapter 403,
  Government Code, as follows:
 
     CATEGORY TAXABLE VALUE OF PROPERTY
 
     I $10 billion or more
 
     II $1 billion or more but less than $10 billion
 
     III $500 million or more but less than $1 billion
 
     IV $100 million or more but less than $500 million
 
     V less than $100 million
         SECTION 9.  Section 313.023, Tax Code, is amended to read as
  follows:
         Sec. 313.023.  MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. For
  each category of school district established by Section 313.022,
  the minimum amount of a qualified investment under Section
  313.0045(a)(2)(A)(iv)(a) [313.021(2)(A)(iv)(a)] is as follows:
 
     CATEGORY   MINIMUM QUALIFIED INVESTMENT
 
     I   $100 million
 
     II   $80 million
 
     III   $60 million
 
     IV   $40 million
 
     V   $20 million
         SECTION 10.  Subchapter B, Chapter 313, Tax Code, is amended
  by adding Section 313.0235 to read as follows:
         Sec. 313.0235.  LIMITATION ON APPRAISED VALUE. For a school
  district to which this subchapter applies, the amount agreed to by
  the governing body of the school district must be an amount in
  accordance with the following, according to the category
  established by Section 313.022 to which the school district
  belongs:
 
     CATEGORY   MINIMUM AMOUNT OF LIMITATION
 
     I   $100 million
 
     II   $80 million
 
     III   $60 million
 
     IV   $40 million
 
     V   $20 million
         SECTION 11.  The heading to Subchapter C, Chapter 313, Tax
  Code, is amended to read as follows:
  SUBCHAPTER C.  LIMITATION ON APPRAISED VALUE OF PROPERTY IN CERTAIN
  [RURAL] SCHOOL DISTRICTS
         SECTION 12.  Subsections (a) and (b), Section 313.051, Tax
  Code, are amended to read as follows:
         (a)  This subchapter applies only to a school district that
  has territory in:
               (1)  an area located in:
                     (A)  a county with unemployment above the state
  average and per capita income below the state average;
                     (B)  a federally designated urban enterprise
  community or an urban enhanced enterprise community; or
                     (C)  a defense economic readjustment zone
  designated under Chapter 2310, Government Code [that 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, during the decade preceding [from
  1990 to 2000, according to] the most recent 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.
         (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
  A-1 [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 13.  Sections 313.052 and 313.053, Tax Code, are
  amended to read as follows:
         Sec. 313.052.  CATEGORIZATION OF SCHOOL DISTRICTS. For
  purposes of determining the required minimum amount of a qualified
  investment under Section 313.0045(a)(2)(A)(iv)(a)
  [313.021(2)(A)(iv)(a)] and the minimum amount of a limitation on
  appraised value under this subchapter, school districts to which
  this subchapter applies are categorized according to the taxable
  value of industrial property in the district for the preceding tax
  year determined under Subchapter M, Chapter 403, Government Code,
  as follows:
 
     CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY
 
     I $200 million or more
 
     II $90 million or more but less than $200 million
 
     III $1 million or more but less than $90 million
 
     IV $100,000 or more but less than $1 million
 
     V less than $100,000
         Sec. 313.053.  MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. For
  each category of school district established by Section 313.052,
  the minimum amount of a qualified investment under Section
  313.0045(a)(2)(A)(iv)(a) [313.021(2)(A)(iv)(a)] is as follows:
 
     CATEGORY MINIMUM QUALIFIED INVESTMENT
 
     I $30 million
 
     II $20 million
 
     III $10 million
 
     IV $5 million
 
     V $1 million
         SECTION 14.  Subsection (a), Section 313.054, Tax Code, is
  amended to read as follows:
         (a)  For a school district to which this subchapter applies,
  the amount agreed to by the governing body of the district [under
  Section 313.027(a)(2)] must be an amount in accordance with the
  following, according to the category established by Section 313.052
  to which the school district belongs:
 
     CATEGORY MINIMUM AMOUNT OF LIMITATION
 
     I $30 million
 
     II $20 million
 
     III $10 million
 
     IV $5 million
 
     V $1 million
         SECTION 15.  The heading to Subchapter E, Chapter 313, Tax
  Code, is amended to read as follows:
  SUBCHAPTER E.  EFFECT [AVAILABILITY] OF [TAX CREDIT AFTER] PROGRAM
  EXPIRATION OR REPEAL [EXPIRES]
         SECTION 16.  Section 313.171, Tax Code, is amended to read as
  follows:
         Sec. 313.171.  SAVING PROVISIONS. (a)  A limitation on
  appraised value approved under Subchapter A-1, B, or C before the
  expiration of that subchapter continues in effect according to that
  subchapter as that subchapter existed immediately before its
  expiration, and that law is continued in effect for purposes of the
  limitation on appraised value.
         (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 17.  Subsection (a), Section 42.2515, 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 18.  Subsection (e), Section 42.302, 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 19.  The following provisions of the Tax Code are
  repealed:
               (1)  Sections 313.005, 313.008, and 313.009; and
               (2)  Subchapter D, Chapter 313.
         SECTION 20.  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 21.  This Act takes effect January 1, 2014.
 
  * * * * *
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