Texas 2009 - 81st Regular

Texas House Bill HB1274 Compare Versions

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1	1	81R27266 JE-D
2	2	By: Kolkhorst H.B. No. 1274
3	3	Substitute the following for H.B. No. 1274:
4	4	By: Hartnett C.S.H.B. No. 1274
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the availability and reporting of certain information
10	10	regarding applications under the Texas Economic Development Act to
11	11	the public and the state.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 313.025, Tax Code, is amended by adding
14	14	Subsection (a-1) and amending Subsection (f) to read as follows:
15	15	(a-1) If the school district maintains a generally
16	16	accessible Internet website, the district shall post on that site
17	17	each application received under Subsection (a) and any information
18	18	in the possession of the district that relates to an application.
19	19	The application must be posted before the 15th day after the date
20	20	the application was received. Information relating to an
21	21	application must be posted before the 15th day after the date the
22	22	information was received or created by the district. This
23	23	subsection does not require a school district to post information
24	24	that is confidential business information under Section 313.028.
25	25	(f) The governing body may approve an application only if:
26	26	(1) the comptroller recommends approval of the
27	27	application in the economic impact evaluation provided under
28	28	Subsection (b);
29	29	(2) in the event that the school district maintains a
30	30	generally accessible Internet website, the district has posted on
31	31	that site, for at least 30 consecutive days, each document or item
32	32	of information designated by the comptroller under Sections
33	33	313.0265(d)(1), (2), and (4);
34	34	(3) the comptroller has posted on the comptroller's
35	35	Internet website, for at least 30 consecutive days, each document
36	36	or item of information designated by the comptroller under Sections
37	37	313.0265(d)(1), (2), and (4); and
38	38	(4) the governing body:
39	39	(A) finds that the information in the application
40	40	is true and correct;
41	41	(B) [,] finds that the applicant is eligible for
42	42	the limitation on the appraised value of the person's qualified
43	43	property; and
44	44	(C) [, and] determines that granting the
45	45	application is in the best interest of the school district and this
46	46	state.
47	47	SECTION 2. Sections 313.026(a) and (b), Tax Code, are
48	48	amended to read as follows:
49	49	(a) The economic impact evaluation of the application must
50	50	include the following:
51	51	(1) the recommendations of the comptroller;
52	52	(2) the name of the school district;
53	53	(3) the name of the applicant;
54	54	(4) the general nature of the applicant's investment;
55	55	(5) [(2)] the relationship between the applicant's
56	56	industry and the types of qualifying jobs to be created by the
57	57	applicant to the long-term economic growth plans of this state as
58	58	described in the strategic plan for economic development submitted
59	59	by the Texas Strategic Economic Development Planning Commission
60	60	under Section 481.033, Government Code, as that section existed
61	61	before February 1, 1999;
62	62	(6) [(3)] the relative level of the applicant's
63	63	investment per qualifying job to be created by the applicant;
64	64	(7) the number of qualifying jobs to be created by the
65	65	applicant;
66	66	(8) [(4)] the wages, salaries, and benefits to be
67	67	offered by the applicant to qualifying job holders;
68	68	(9) [(5)] the ability of the applicant to locate or
69	69	relocate in another state or another region of this state;
70	70	(10) [(6)] the impact the added infrastructure will
71	71	have on the region, including:
72	72	(A) revenue gains that would be realized by the
73	73	school district; and
74	74	(B) subsequent economic effects on the local and
75	75	regional tax bases;
76	76	(11) [(7)] the economic condition of the region of the
77	77	state at the time the person's application is being considered;
78	78	(12) [(8)] the number of new facilities built or
79	79	expanded in the region during the two years preceding the date of
80	80	the application that were eligible to apply for a limitation on
81	81	appraised value under this subchapter; [and]
82	82	(13) [(9)] the effect of the applicant's proposal, if
83	83	approved, on the number or size of the school district's
84	84	instructional facilities, as defined by Section 46.001, Education
85	85	Code;
86	86	(14) the projected market value of the qualified
87	87	property of the applicant as determined by the comptroller;
88	88	(15) the proposed limitation on appraised value for
89	89	the qualified property of the applicant;
90	90	(16) the projected dollar amount of the taxes that
91	91	would be imposed on the qualified property, for each year of the
92	92	agreement, if the property does not receive a limitation on
93	93	appraised value with assumptions of the projected appreciation or
94	94	depreciation of the investment and projected tax rates clearly
95	95	stated;
96	96	(17) the projected dollar amount of the taxes that
97	97	would be imposed on the qualified property, for each tax year of the
98	98	agreement, if the property receives a limitation on appraised value
99	99	with assumptions of the projected appreciation or depreciation of
100	100	the investment and projected tax rates clearly stated;
101	101	(18) the projected effect on Foundation School Program
102	102	payments to the district for each year of the agreement;
103	103	(19) the projected future tax credits if the applicant
104	104	also applies for school tax credits under Section 313.103; and
105	105	(20) the total amount of taxes projected to be lost or
106	106	gained by the district over the life of the agreement computed by
107	107	subtracting the projected taxes stated in Subdivision (17) from the
108	108	projected taxes stated in Subdivision (16).
109	109	(b) The comptroller's recommendations shall be based on the
110	110	criteria listed in Subsections (a)(2)-(20) [(a)(2)-(9)] and on any
111	111	other information available to the comptroller, including
112	112	information provided by the governing body of the school district
113	113	under Section 313.025(b).
114	114	SECTION 3. Subchapter B, Chapter 313, Tax Code, is amended
115	115	by adding Section 313.0265 to read as follows:
116	116	Sec. 313.0265. DISCLOSURE OF APPRAISED VALUE LIMITATION
117	117	INFORMATION. (a) If a school district maintains a generally
118	118	accessible Internet website, the district shall post each document
119	119	or item of information concerning appraised value limitations under
120	120	this subchapter and school tax credits under Subchapter D that the
121	121	comptroller designates as substantive before the 15th day after the
122	122	date the document or item of information was received or created.
123	123	(b) Each document or item of information posted under
124	124	Subsection (a) must continue to be posted until the appraised value
125	125	limitation expires or the school district no longer maintains the
126	126	website.
127	127	(c) The comptroller shall post on the comptroller's
128	128	Internet website each document or item of information the
129	129	comptroller designates as substantive before the 15th day after the
130	130	date the document or item of information was received or created.
131	131	Each document or item of information must continue to be posted
132	132	until the appraised value limitation expires. The posting must be
133	133	on a web page that is not more than three mouse clicks from the
134	134	comptroller's home page.
135	135	(d) The comptroller shall designate the following as
136	136	substantive:
137	137	(1) each application requesting a limitation on
138	138	appraised value;
139	139	(2) the economic impact evaluation made in connection
140	140	with the application;
141	141	(3) all information provided by the owner of the
142	142	property to the school district and the comptroller under Section
143	143	313.027(f)(3-c); and
144	144	(4) each application requesting school tax credits
145	145	under Section 313.103.
146	146	(e) The comptroller by rule shall determine the
147	147	requirements for districts to post on their Internet websites the
148	148	documents provided under Subsection (a) and shall provide a link on
149	149	the comptroller's website to all school districts' appraised value
150	150	limitation postings.
151	151	(f) The comptroller and the Texas Education Agency shall
152	152	annually certify that districts comply with the posting
153	153	requirements of Subsection (b).
154	154	SECTION 4. Section 313.027(f), Tax Code, is amended to read
155	155	as follows:
156	156	(f) In addition, the agreement:
157	157	(1) must incorporate each relevant provision of this
158	158	subchapter and, to the extent necessary, include provisions for the
159	159	protection of future school district revenues through the
160	160	adjustment of the minimum valuations, the payment of revenue
161	161	offsets, and other mechanisms agreed to by the property owner and
162	162	the school district;
163	163	(2) must require the property owner to maintain a
164	164	viable presence in the school district for at least three years
165	165	after the date the limitation on appraised value of the owner's
166	166	property expires;
167	167	(3) must provide for the termination of the agreement,
168	168	the recapture of ad valorem tax revenue lost as a result of the
169	169	agreement if the owner of the property fails to comply with the
170	170	terms of the agreement, and payment of a penalty or interest, or
171	171	both, on that recaptured ad valorem tax revenue;
172	172	(3-a) must specify explicit performance targets for
173	173	each year of the agreement, including:
174	174	(A) the amount of qualifying investment the owner
175	175	of the property commits to expend or allocate;
176	176	(B) the number of qualifying jobs the owner of
177	177	the property commits to create; and
178	178	(C) the average wage or salary to be offered by
179	179	the owner of the property to qualifying job holders;
180	180	(3-b) must require the owner of the property to
181	181	compensate the school district for failure to attain the
182	182	performance targets specified under Subdivisions (3-a)(B) and (C);
183	183	(3-c) must require the owner of the property to
184	184	provide the school district and the comptroller with an annual
185	185	progress report containing the information compiled during the
186	186	previous calendar year regarding the attainment of each of the
187	187	performance targets specified under Subdivisions (3-a)(B) and (C);
188	188	(3-d) must prohibit the school district from assigning
189	189	any payments or benefits received from or on behalf of the property
190	190	owner to any other party;
191	191	(4) may specify any conditions the occurrence of which
192	192	will require the district and the property owner to renegotiate all
193	193	or any part of the agreement; and
194	194	(5) must specify the ad valorem tax years covered by
195	195	the agreement.
196	196	SECTION 5. Subchapter B, Chapter 313, Tax Code, is amended
197	197	by adding Section 313.0275 to read as follows:
198	198	Sec. 313.0275. COMPUTATION OF RECAPTURE OF AD VALOREM TAX
199	199	REVENUE LOST. (a) The total amount of the recapture payment to
200	200	which a school district is entitled under this section in any year
201	201	is computed by:
202	202	(1) subtracting a number equal to the number of
203	203	persons holding a qualifying job in that year created by the owner
204	204	of the property from the number of qualifying jobs the owner of the
205	205	property committed to create under Section 313.027(f)(3-a)(B) in
206	206	that year or over the life of the agreement, as applicable; and
207	207	(2) multiplying the result by the average wage or
208	208	salary the owner of the property committed to offer to qualifying
209	209	job holders under Section 313.027(f)(3-a)(C).
210	210	(b) The total amount of the recapture payment in a calendar
211	211	year may not exceed an amount computed by dividing the amount
212	212	computed under Section 313.026(a)(20) by the number of years in the
213	213	life of the agreement.
214	214	SECTION 6. Section 313.028, Tax Code, is amended to read as
215	215	follows:
216	216	Sec. 313.028. CERTAIN BUSINESS INFORMATION CONFIDENTIAL.
217	217	Information provided to a school district in connection with an
218	218	application for a limitation on appraised value under this
219	219	subchapter that describes the specific processes or business
220	220	activities to be conducted or the specific tangible personal
221	221	property to be located on real property covered by the application
222	222	shall be segregated in the application from other information in
223	223	the application and is confidential and not subject to public
224	224	disclosure unless the governing body of the school district
225	225	approves the application. Other information in the custody of a
226	226	school district or the comptroller in connection with the
227	227	application, including information related to the economic impact
228	228	of a project or the essential elements of eligibility under this
229	229	chapter, such as the nature and amount of the projected investment,
230	230	employment, wages, and benefits, may not be considered confidential
231	231	business information if the governing body of the school district
232	232	agrees to consider the application. Information in the custody
233	233	of a school district or the comptroller if the governing body
234	234	approves the application is not confidential under this section.
235	235	SECTION 7. Section 313.103, Tax Code, is amended to read as
236	236	follows:
237	237	Sec. 313.103. APPLICATION. (a) An application for a tax
238	238	credit under this subchapter must be made to the governing body of
239	239	the school district to which the ad valorem taxes were paid. The
240	240	application must be:
241	241	(1) made on the form prescribed for that purpose by the
242	242	comptroller and verified by the applicant;
243	243	(2) accompanied by:
244	244	(A) a tax receipt from the collector of taxes for
245	245	the school district showing full payment of school district ad
246	246	valorem taxes on the qualified property for the applicable
247	247	qualifying time period; and
248	248	(B) any other document or information that the
249	249	comptroller or the governing body considers necessary for a
250	250	determination of the applicant's eligibility for the credit or the
251	251	amount of the credit; and
252	252	(3) filed before September 1 of the year immediately
253	253	following the applicable qualifying time period.
254	254	(b) An application for a tax credit under this subchapter or
255	255	any information provided by the school district to the Texas
256	256	Education Agency under Section 42.2515, Education Code, is not
257	257	confidential.
258	258	SECTION 8. Subchapter E, Chapter 42, Education Code, is
259	259	amended by adding Section 42.25151 to read as follows:
260	260	Sec. 42.25151. ADJUSTMENT FOR RECAPTURED TAXES LOST
261	261	ASSOCIATED WITH AGREEMENTS UNDER TEXAS ECONOMIC DEVELOPMENT ACT.
262	262	(a) In this section, "recapture payment" means a payment by an
263	263	owner of property to a school district as required by Section
264	264	313.027(f)(3-b), Tax Code.
265	265	(b) Notwithstanding Section 42.2516, the commissioner shall
266	266	for any school year:
267	267	(1) reduce the amounts due to a school district under
268	268	this chapter by an amount equal to all recapture payments received
269	269	during that school year by the district; or
270	270	(2) increase the amounts necessary for a school
271	271	district to comply with the requirements of Chapter 41 by an amount
272	272	equal to all recapture payments received during that school year by
273	273	the district.
274	274	(c) A school district shall report each recapture payment
275	275	through the Public Education Information Management System
276	276	(PEIMS).
277	277	(d) The commissioner, in consultation with the comptroller,
278	278	as appropriate, may adopt rules necessary to implement this
279	279	section.
280	280	SECTION 9. The change in law made by this Act applies only
281	281	to an application under Chapter 313, Tax Code, filed on or after the
282	282	effective date of this Act. An application under that chapter filed
283	283	before the effective date of this Act is governed by the law in
284	284	effect immediately before the effective date of this Act, and that
285	285	law is continued in effect for that purpose.
286	286	SECTION 10. This Act takes effect September 1, 2009.