Texas 2009 - 81st Regular

Texas House Bill HB3676 Compare Versions

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1	1	H.B. No. 3676
2	2
3	3
4	4	AN ACT
5	5	relating to the Texas Economic Development Act.
6	6	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	7	SECTION 1. Section 313.007, Tax Code, is amended to read as
8	8	follows:
9	9	Sec. 313.007. EXPIRATION. Subchapters B, C, and D expire
10	10	December 31, 2014 [2011].
11	11	SECTION 2. Section 313.021, Tax Code, is amended to read as
12	12	follows:
13	13	Sec. 313.021. DEFINITIONS. In this subchapter:
14	14	(1) "Qualified investment" means:
15	15	(A) tangible personal property that is first
16	16	placed in service in this state during the applicable qualifying
17	17	time period that begins on or after January 1, 2002, without regard
18	18	to whether the property is affixed to or incorporated into real
19	19	property, and that is described as Section 1245 property by Section
20	20	1245(a), Internal Revenue Code of 1986;
21	21	(B) tangible personal property that is first
22	22	placed in service in this state during the applicable qualifying
23	23	time period that begins on or after January 1, 2002, without regard
24	24	to whether the property is affixed to or incorporated into real
25	25	property, and that is used in connection with the manufacturing,
26	26	processing, or fabrication in a cleanroom environment of a
27	27	semiconductor product, without regard to whether the property is
28	28	actually located in the cleanroom environment, including:
29	29	(i) integrated systems, fixtures, and
30	30	piping;
31	31	(ii) all property necessary or adapted to
32	32	reduce contamination or to control airflow, temperature, humidity,
33	33	chemical purity, or other environmental conditions or
34	34	manufacturing tolerances; and
35	35	(iii) production equipment and machinery,
36	36	moveable cleanroom partitions, and cleanroom lighting;
37	37	(C) tangible personal property that is first
38	38	placed in service in this state during the applicable qualifying
39	39	time period that begins on or after January 1, 2002, without regard
40	40	to whether the property is affixed to or incorporated into real
41	41	property, and that is used in connection with the operation of a
42	42	nuclear electric power generation facility, including:
43	43	(i) property, including pressure vessels,
44	44	pumps, turbines, generators, and condensers, used to produce
45	45	nuclear electric power; and
46	46	(ii) property and systems necessary to
47	47	control radioactive contamination;
48	48	(D) tangible personal property that is first
49	49	placed in service in this state during the applicable qualifying
50	50	time period that begins on or after January 1, 2002, without regard
51	51	to whether the property is affixed to or incorporated into real
52	52	property, and that is used in connection with operating an
53	53	integrated gasification combined cycle electric generation
54	54	facility, including:
55	55	(i) property used to produce electric power
56	56	by means of a combined combustion turbine and steam turbine
57	57	application using synthetic gas or another product produced by the
58	58	gasification of coal or another carbon-based feedstock; or
59	59	(ii) property used in handling materials to
60	60	be used as feedstock for gasification or used in the gasification
61	61	process to produce synthetic gas or another carbon-based feedstock
62	62	for use in the production of electric power in the manner described
63	63	by Subparagraph (i); [or]
64	64	(E) tangible personal property that is first
65	65	placed in service in this state during the applicable qualifying
66	66	time period that begins on or after January 1, 2010, without regard
67	67	to whether the property is affixed to or incorporated into real
68	68	property, and that is used in connection with operating an advanced
69	69	clean energy project, as defined by Section 382.003, Health and
70	70	Safety Code; or
71	71	(F) a building or a permanent, nonremovable
72	72	component of a building that is built or constructed during the
73	73	applicable qualifying time period that begins on or after January
74	74	1, 2002, and that houses tangible personal property described by
75	75	Paragraph (A), (B), (C), [or] (D), or (E).
76	76	(2) "Qualified property" means:
77	77	(A) land:
78	78	(i) that is located in an area designated as
79	79	a reinvestment zone under Chapter 311 or 312 or as an enterprise
80	80	zone under Chapter 2303, Government Code;
81	81	(ii) on which a person proposes to
82	82	construct a new building or erect or affix a new improvement that
83	83	does not exist before the date the person [owner] applies for a
84	84	limitation on appraised value under this subchapter;
85	85	(iii) that is not subject to a tax abatement
86	86	agreement entered into by a school district under Chapter 312; and
87	87	(iv) on which, in connection with the new
88	88	building or new improvement described by Subparagraph (ii), the
89	89	owner or lessee of, or the holder of another possessory interest in,
90	90	the land proposes to:
91	91	(a) make a qualified investment in an
92	92	amount equal to at least the minimum amount required by Section
93	93	313.023; and
94	94	(b) create at least 25 new jobs;
95	95	(B) the new building or other new improvement
96	96	described by Paragraph (A)(ii); and
97	97	(C) tangible personal property that:
98	98	(i) is not subject to a tax abatement
99	99	agreement entered into by a school district under Chapter 312; and
100	100	(ii) except for new equipment described in
101	101	Section 151.318(q) or (q-1), is first placed in service in the new
102	102	building or in or on the new improvement described by Paragraph
103	103	(A)(ii), or on the land on which that new building or new
104	104	improvement is located, if the personal property is ancillary and
105	105	necessary to the business conducted in that new building or in or on
106	106	that new improvement.
107	107	(3) "Qualifying job" means a permanent full-time job
108	108	that:
109	109	(A) requires at least 1,600 hours of work a year;
110	110	(B) is not transferred from one area in this
111	111	state to another area in this state;
112	112	(C) is not created to replace a previous
113	113	employee;
114	114	(D) is covered by a group health benefit plan[,
115	115	as defined by Section 481.151, Government Code,] for which the
116	116	business offers to pay at least 80 percent of the premiums or other
117	117	charges assessed for employee-only coverage under the plan,
118	118	regardless of whether an employee may voluntarily waive the
119	119	coverage; and
120	120	(E) pays at least 110 percent of:
121	121	(i) the county average weekly wage for
122	122	manufacturing jobs in the county where the job is located; or
123	123	(ii) the county average weekly wage for all
124	124	jobs in the county where the job is located, if the property owner
125	125	creates more than 1,000 jobs in that county.
126	126	(4) "Qualifying time period" means:
127	127	(A) the period that begins on the date that a
128	128	person's application for a limitation on appraised value under this
129	129	subchapter is approved by the governing body of the school district
130	130	and ends on December 31 of the second tax year that begins after
131	131	that date [first two tax years that begin on or after the date a
132	132	person's application for a limitation on appraised value under this
133	133	subchapter is approved], except as provided by Paragraph (B) or (C)
134	134	of this subdivision or Section 313.027(h); [or]
135	135	(B) in connection with a nuclear electric power
136	136	generation facility, the first seven tax years that begin on or
137	137	after the third anniversary of the date the school district
138	138	approves the property owner's application for a limitation on
139	139	appraised value under this subchapter, unless a shorter time period
140	140	is agreed to by the governing body of the school district and the
141	141	property owner; or
142	142	(C) in connection with an advanced clean energy
143	143	project, as defined by Section 382.003, Health and Safety Code, the
144	144	first five tax years that begin on or after the third anniversary of
145	145	the date the school district approves the property owner's
146	146	application for a limitation on appraised value under this
147	147	subchapter, unless a shorter time period is agreed to by the
148	148	governing body of the school district and the property owner.
149	149	(5) "County average weekly wage for manufacturing
150	150	jobs" means:
151	151	(A) the average weekly wage in a county for
152	152	manufacturing jobs during the most recent four quarterly periods
153	153	for which data is available at the time a person submits an
154	154	application for a limitation on appraised value under this
155	155	subchapter, as computed by the Texas Workforce Commission; or
156	156	(B) the average weekly wage for manufacturing
157	157	jobs in the region designated for the regional planning commission,
158	158	council of governments, or similar regional planning agency created
159	159	under Chapter 391, Local Government Code, in which the county is
160	160	located during the most recent four quarterly periods for which
161	161	data is available at the time a person submits an application for a
162	162	limitation on appraised value under this subchapter, as computed by
163	163	the Texas Workforce Commission.
164	164	SECTION 3. Section 313.024(b), Tax Code, is amended to read
165	165	as follows:
166	166	(b) To be eligible for a limitation on appraised value under
167	167	this subchapter, the entity must use the property in connection
168	168	with:
169	169	(1) manufacturing;
170	170	(2) research and development;
171	171	(3) a clean coal project, as defined by Section 5.001,
172	172	Water Code;
173	173	(4) an advanced clean energy project, as defined by
174	174	Section 382.003, Health and Safety Code;
175	175	(5) renewable energy electric generation;
176	176	(6) electric power generation using integrated
177	177	gasification combined cycle technology; [or]
178	178	(7) nuclear electric power generation; or
179	179	(8) a computer center primarily used in connection
180	180	with one or more activities described by Subdivisions (1) through
181	181	(7) conducted by the entity.
182	182	SECTION 4. Section 313.024(e), Tax Code, is amended by
183	183	amending Subdivision (1) and adding Subdivisions (5) and (6) to
184	184	read as follows:
185	185	(1) "Manufacturing" means an establishment primarily
186	186	engaged in activities described in sectors 31-33 of the 2007 North
187	187	American Industry Classification System [and "research and
188	188	development" have the meanings assigned by Section 171.751].
189	189	(5) "Research and development" means an establishment
190	190	primarily engaged in activities described in category 541710 of the
191	191	2002 North American Industry Classification System.
192	192	(6) "Computer center" means an establishment
193	193	primarily engaged in providing electronic data processing and
194	194	information storage.
195	195	SECTION 5. Section 313.025, Tax Code, is amended by
196	196	amending Subsections (a), (b), and (d) and adding Subsections
197	197	(a-1), (d-1), (h), and (i) to read as follows:
198	198	(a) The owner or lessee of, or the holder of another
199	199	possessory interest in, any qualified property described by Section
200	200	313.021(2)(A), (B), or (C) may apply to the governing body of the
201	201	school district in which the property is located for a limitation on
202	202	the appraised value for school district maintenance and operations
203	203	ad valorem tax purposes of the person's qualified property. An
204	204	application must be made on the form prescribed by the comptroller
205	205	and include the information required by the comptroller, and it
206	206	must be accompanied by:
207	207	(1) the application fee established by the governing
208	208	body of the school district;
209	209	(2) information sufficient to show that the real and
210	210	personal property identified in the application as qualified
211	211	property meets the applicable criteria established by Section
212	212	313.021(2); and
213	213	(3) information relating to each applicable criterion
214	214	listed in Section 313.026.
215	215	(a-1) Within seven days of the receipt of each document, the
216	216	school district shall submit to the comptroller a copy of the
217	217	application and the agreement between the applicant and the school
218	218	district. If an economic analysis of the proposed project is
219	219	submitted to the school district, the district shall submit a copy
220	220	of the analysis to the comptroller. In addition, the school
221	221	district shall submit to the comptroller any subsequent revision of
222	222	or amendment to any of those documents within seven days of its
223	223	receipt. The comptroller shall publish each document received from
224	224	the school district under this subsection on the comptroller's
225	225	Internet website. If the school district maintains a generally
226	226	accessible Internet website, the district shall provide on its
227	227	website a link to the location of those documents posted on the
228	228	comptroller's website in compliance with this subsection. This
229	229	subsection does not require the comptroller to post information
230	230	that is confidential under Section 313.028.
231	231	(b) The governing body of a school district is not required
232	232	to consider an application for a limitation on appraised value that
233	233	is filed with the governing body under Subsection (a). If the
234	234	governing body of the school district does elect to consider an
235	235	application, the governing body shall deliver three copies of the
236	236	application to the comptroller and request that the comptroller
237	237	provide an economic impact evaluation of the application to the
238	238	school district. Except as provided by Subsection (b-1), the
239	239	comptroller shall conduct or contract with a third person to
240	240	conduct the evaluation, which shall be completed and provided to
241	241	the governing body of the school district as soon as practicable.
242	242	The governing body shall provide to the comptroller or third person
243	243	any requested information. A methodology to allow comparisons of
244	244	economic impact for different schedules of the addition of
245	245	qualified investment or qualified property may be developed as part
246	246	of the economic impact evaluation. The governing body shall
247	247	provide a copy of the evaluation to the applicant on request. The
248	248	comptroller may charge and collect a fee sufficient to cover the
249	249	costs of providing the economic impact evaluation. The governing
250	250	body of a school district shall approve or disapprove an
251	251	application before the 151st [121st] day after the date the
252	252	application is filed, unless the economic impact evaluation has not
253	253	been received or an extension is agreed to by the governing body and
254	254	the applicant.
255	255	(d) Before the 91st [61st] day after the date the
256	256	comptroller receives the copy of the application, the comptroller
257	257	shall submit a recommendation to the governing body of the school
258	258	district as to whether the application should be approved or
259	259	disapproved.
260	260	(d-1) The governing body of a school district may approve an
261	261	application that the comptroller has recommended should be
262	262	disapproved only if:
263	263	(1) the governing body holds a public hearing the sole
264	264	purpose of which is to consider the application and the
265	265	comptroller's recommendation; and
266	266	(2) at a subsequent meeting of the governing body held
267	267	after the date of the public hearing, at least two-thirds of the
268	268	members of the governing body vote to approve the application.
269	269	(h) After receiving a copy of the application, the
270	270	comptroller shall determine whether the property meets the
271	271	requirements of Section 313.024 for eligibility for a limitation on
272	272	appraised value under this subchapter. The comptroller shall
273	273	notify the governing body of the school district of the
274	274	comptroller's determination and provide the applicant an
275	275	opportunity for a hearing before the determination becomes final.
276	276	A hearing under this subsection is a contested case hearing and
277	277	shall be conducted by the State Office of Administrative Hearings
278	278	in the manner provided by Section 2003.101, Government Code. The
279	279	applicant has the burden of proof on each issue in the hearing. The
280	280	applicant may seek judicial review of the comptroller's
281	281	determination in a Travis County district court under the
282	282	substantial evidence rule as provided by Subchapter G, Chapter
283	283	2001, Government Code.
284	284	(i) If the comptroller's determination under Subsection (h)
285	285	that the property does not meet the requirements of Section 313.024
286	286	for eligibility for a limitation on appraised value under this
287	287	subchapter becomes final, the comptroller is not required to
288	288	provide an economic impact evaluation of the application or to
289	289	submit a recommendation to the school district as to whether the
290	290	application should be approved or disapproved, and the governing
291	291	body of the school district may not grant the application.
292	292	SECTION 6. Sections 313.026(a) and (b), Tax Code, are
293	293	amended to read as follows:
294	294	(a) The economic impact evaluation of the application must
295	295	include the following:
296	296	(1) the recommendations of the comptroller;
297	297	(2) the name of the school district;
298	298	(3) the name of the applicant;
299	299	(4) the general nature of the applicant's investment;
300	300	(5) [(2)] the relationship between the applicant's
301	301	industry and the types of qualifying jobs to be created by the
302	302	applicant to the long-term economic growth plans of this state as
303	303	described in the strategic plan for economic development submitted
304	304	by the Texas Strategic Economic Development Planning Commission
305	305	under Section 481.033, Government Code, as that section existed
306	306	before February 1, 1999;
307	307	(6) [(3)] the relative level of the applicant's
308	308	investment per qualifying job to be created by the applicant;
309	309	(7) the number of qualifying jobs to be created by the
310	310	applicant;
311	311	(8) [(4)] the wages, salaries, and benefits to be
312	312	offered by the applicant to qualifying job holders;
313	313	(9) [(5)] the ability of the applicant to locate or
314	314	relocate in another state or another region of this state;
315	315	(10) [(6)] the impact the project [added
316	316	infrastructure] will have on this state and individual local units
317	317	of government [the region], including:
318	318	(A) tax and other revenue gains, direct or
319	319	indirect, that would be realized during the qualifying time period,
320	320	the limitation period, and a period of time after the limitation
321	321	period considered appropriate by the comptroller [by the school
322	322	district]; and
323	323	(B) [subsequent] economic effects of the
324	324	project, including the impact on jobs and income, during the
325	325	qualifying time period, the limitation period, and a period of time
326	326	after the limitation period considered appropriate by the
327	327	comptroller [on the local and regional tax bases];
328	328	(11) [(7)] the economic condition of the region of the
329	329	state at the time the person's application is being considered;
330	330	(12) [(8)] the number of new facilities built or
331	331	expanded in the region during the two years preceding the date of
332	332	the application that were eligible to apply for a limitation on
333	333	appraised value under this subchapter; [and]
334	334	(13) [(9)] the effect of the applicant's proposal, if
335	335	approved, on the number or size of the school district's
336	336	instructional facilities, as defined by Section 46.001, Education
337	337	Code;
338	338	(14) the projected market value of the qualified
339	339	property of the applicant as determined by the comptroller;
340	340	(15) the proposed limitation on appraised value for
341	341	the qualified property of the applicant;
342	342	(16) the projected dollar amount of the taxes that
343	343	would be imposed on the qualified property, for each year of the
344	344	agreement, if the property does not receive a limitation on
345	345	appraised value with assumptions of the projected appreciation or
346	346	depreciation of the investment and projected tax rates clearly
347	347	stated;
348	348	(17) the projected dollar amount of the taxes that
349	349	would be imposed on the qualified property, for each tax year of the
350	350	agreement, if the property receives a limitation on appraised value
351	351	with assumptions of the projected appreciation or depreciation of
352	352	the investment clearly stated;
353	353	(18) the projected effect on the Foundation School
354	354	Program of payments to the district for each year of the agreement;
355	355	(19) the projected future tax credits if the applicant
356	356	also applies for school tax credits under Section 313.103; and
357	357	(20) the total amount of taxes projected to be lost or
358	358	gained by the district over the life of the agreement computed by
359	359	subtracting the projected taxes stated in Subdivision (17) from the
360	360	projected taxes stated in Subdivision (16).
361	361	(b) The comptroller's recommendations shall be based on the
362	362	criteria listed in Subsections (a)(5)-(20) [(a)(2)-(9)] and on any
363	363	other information available to the comptroller, including
364	364	information provided by the governing body of the school district
365	365	under Section 313.025(b).
366	366	SECTION 7. Subchapter B, Chapter 313, Tax Code, is amended
367	367	by adding Section 313.0265 to read as follows:
368	368	Sec. 313.0265. DISCLOSURE OF APPRAISED VALUE LIMITATION
369	369	INFORMATION. (a) The comptroller shall post on the comptroller's
370	370	Internet website each document or item of information the
371	371	comptroller designates as substantive before the 15th day after the
372	372	date the document or item of information was received or created.
373	373	Each document or item of information must continue to be posted
374	374	until the appraised value limitation expires.
375	375	(b) The comptroller shall designate the following as
376	376	substantive:
377	377	(1) each application requesting a limitation on
378	378	appraised value;
379	379	(2) the economic impact evaluation made in connection
380	380	with the application; and
381	381	(3) each application requesting school tax credits
382	382	under Section 313.103.
383	383	(c) If a school district maintains a generally accessible
384	384	Internet website, the district shall maintain a link on its
385	385	Internet website to the area of the comptroller's Internet website
386	386	where information on each of the district's agreements to limit
387	387	appraised value is maintained.
388	388	SECTION 8. Section 313.027, Tax Code, is amended by
389	389	amending Subsection (f) and adding Subsections (h) and (i) to read
390	390	as follows:
391	391	(f) In addition, the agreement:
392	392	(1) must incorporate each relevant provision of this
393	393	subchapter and, to the extent necessary, include provisions for the
394	394	protection of future school district revenues through the
395	395	adjustment of the minimum valuations, the payment of revenue
396	396	offsets, and other mechanisms agreed to by the property owner and
397	397	the school district;
398	398	(2) may provide that the property owner will protect
399	399	the school district in the event the district incurs extraordinary
400	400	education-related expenses related to the project that are not
401	401	directly funded in state aid formulas, including expenses for the
402	402	purchase of portable classrooms and the hiring of additional
403	403	personnel to accommodate a temporary increase in student enrollment
404	404	attributable to the project;
405	405	(3) must require the property owner to maintain a
406	406	viable presence in the school district for at least three years
407	407	after the date the limitation on appraised value of the owner's
408	408	property expires;
409	409	(4) [(3)] must provide for the termination of the
410	410	agreement, the recapture of ad valorem tax revenue lost as a result
411	411	of the agreement if the owner of the property fails to comply with
412	412	the terms of the agreement, and payment of a penalty or interest, or
413	413	both, on that recaptured ad valorem tax revenue;
414	414	(5) [(4)] may specify any conditions the occurrence of
415	415	which will require the district and the property owner to
416	416	renegotiate all or any part of the agreement; and
417	417	(6) [(5)] must specify the ad valorem tax years
418	418	covered by the agreement.
419	419	(h) The agreement between the governing body of the school
420	420	district and the applicant may provide for a deferral of the date on
421	421	which the qualifying time period for the project is to commence or,
422	422	subsequent to the date the agreement is entered into, be amended to
423	423	provide for such a deferral. This subsection may not be construed
424	424	to permit a qualifying time period that has commenced to continue
425	425	for more than the number of years applicable to the project under
426	426	Section 313.021(4).
427	427	(i) A person and the school district may not enter into an
428	428	agreement under which the person agrees to provide supplemental
429	429	payments to a school district in an amount that exceeds an amount
430	430	equal to $100 per student per year in average daily attendance, as
431	431	defined by Section 42.005, Education Code, or for a period that
432	432	exceeds the period beginning with the period described by Section
433	433	313.021(4) and ending with the period described by Section
434	434	313.104(2)(B) of this code. This limit does not apply to amounts
435	435	described by Subsection (f)(1) or (2) of this section.
436	436	SECTION 9. Subchapter B, Chapter 313, Tax Code, is amended
437	437	by adding Section 313.0275 to read as follows:
438	438	Sec. 313.0275. RECAPTURE OF AD VALOREM TAX REVENUE LOST.
439	439	(a) Notwithstanding any other provision of this chapter to the
440	440	contrary, a person with whom a school district enters into an
441	441	agreement under this subchapter must make the minimum amount of
442	442	qualified investment during the qualifying time period and create
443	443	the required number of qualifying jobs during each year of the
444	444	agreement.
445	445	(b) If in any tax year a property owner fails to comply with
446	446	Subsection (a), the property owner is liable to this state for a
447	447	penalty equal to the amount computed by subtracting from the market
448	448	value of the property for that tax year the value of the property as
449	449	limited by the agreement and multiplying the difference by the
450	450	maintenance and operations tax rate of the school district for that
451	451	tax year.
452	452	(c) A penalty imposed under Subsection (b) becomes
453	453	delinquent if not paid on or before February 1 of the following tax
454	454	year. Section 33.01 applies to the delinquent penalty in the manner
455	455	that section applies to delinquent taxes.
456	456	SECTION 10. Section 313.028, Tax Code, is amended to read as
457	457	follows:
458	458	Sec. 313.028. CERTAIN BUSINESS INFORMATION CONFIDENTIAL.
459	459	Information provided to a school district in connection with an
460	460	application for a limitation on appraised value under this
461	461	subchapter that describes the specific processes or business
462	462	activities to be conducted or the specific tangible personal
463	463	property to be located on real property covered by the application
464	464	shall be segregated in the application from other information in
465	465	the application and is confidential and not subject to public
466	466	disclosure unless the governing body of the school district
467	467	approves the application. Other information in the custody of a
468	468	school district or the comptroller in connection with the
469	469	application, including information related to the economic impact
470	470	of a project or the essential elements of eligibility under this
471	471	chapter, such as the nature and amount of the projected investment,
472	472	employment, wages, and benefits, may not be considered confidential
473	473	business information if the governing body of the school district
474	474	agrees to consider the application. Information in the custody
475	475	of a school district or the comptroller if the governing body
476	476	approves the application is not confidential under this section.
477	477	SECTION 11. Section 313.051(a), Tax Code, is amended to
478	478	read as follows:
479	479	(a) This subchapter applies only to a school district that
480	480	has territory in:
481	481	(1) an area that qualified as a strategic investment
482	482	area under Subchapter O, Chapter 171, immediately before that
483	483	subchapter expired [, as defined by Section 171.721]; or
484	484	(2) a county:
485	485	(A) that has a population of less than 50,000;
486	486	and
487	487	(B) [that is not partially or wholly located in a
488	488	metropolitan statistical area; and
489	489	[(C)] in which, from 1990 to 2000, according to
490	490	the federal decennial census, the population:
491	491	(i) remained the same;
492	492	(ii) decreased; or
493	493	(iii) increased, but at a rate of not more
494	494	than three percent per annum.
495	495	SECTION 12. Sections 313.103 and 313.104, Tax Code, are
496	496	amended to read as follows:
497	497	Sec. 313.103. APPLICATION. (a) An application for a tax
498	498	credit under this subchapter must be made to the governing body of
499	499	the school district to which the ad valorem taxes were paid. The
500	500	application must be:
501	501	(1) made on the form prescribed for that purpose by the
502	502	comptroller and verified by the applicant; and
503	503	(2) accompanied by:
504	504	(A) a tax receipt from the collector of taxes for
505	505	the school district showing full payment of school district ad
506	506	valorem taxes on the qualified property for the applicable
507	507	qualifying time period; and
508	508	(B) any other document or information that the
509	509	comptroller or the governing body considers necessary for a
510	510	determination of the applicant's eligibility for the credit or the
511	511	amount of the credit[; and
512	512	[(3) filed before September 1 of the year immediately
513	513	following the applicable qualifying time period].
514	514	(b) An application for a tax credit under this subchapter or
515	515	any information provided by the school district to the Texas
516	516	Education Agency under Section 42.2515, Education Code, is not
517	517	confidential.
518	518	Sec. 313.104. ACTION ON APPLICATION; GRANT OF CREDIT.
519	519	Before granting [the 90th day after the date] the application for a
520	520	tax credit [is filed], the governing body of the school district
521	521	shall:
522	522	(1) determine the person's eligibility for a tax
523	523	credit under this subchapter; and
524	524	(2) if the person's application is approved, by order
525	525	or resolution direct the collector of taxes for the school
526	526	district:
527	527	(A) in the second and subsequent six tax years
528	528	that begin after the date the application is approved, to credit
529	529	against the taxes imposed on the qualified property by the district
530	530	in that year an amount equal to one-seventh of the total amount of
531	531	tax credit to which the person is entitled under Section 313.102,
532	532	except that the amount of a credit granted in any of those tax years
533	533	may not exceed 50 percent of the total amount of ad valorem school
534	534	taxes imposed on the qualified property by the school district in
535	535	that tax year; and
536	536	(B) in the first three tax years that begin on or
537	537	after the date the person's eligibility for the limitation under
538	538	Subchapter B or C expires, to credit against the taxes imposed on
539	539	the qualified property by the district an amount equal to the
540	540	portion of the total amount of tax credit to which the person is
541	541	entitled under Section 313.102 that was not credited against the
542	542	person's taxes under Paragraph (A) in a tax year covered by
543	543	Paragraph (A), except that the amount of a tax credit granted under
544	544	this paragraph in any tax year may not exceed the total amount of ad
545	545	valorem school taxes imposed on the qualified property by the
546	546	school district in that tax year.
547	547	SECTION 13. Section 403.302, Government Code, is amended by
548	548	amending Subsection (d) and adding Subsection (m) to read as
549	549	follows:
550	550	(d) For the purposes of this section, "taxable value" means
551	551	the market value of all taxable property less:
552	552	(1) the total dollar amount of any residence homestead
553	553	exemptions lawfully granted under Section 11.13(b) or (c), Tax
554	554	Code, in the year that is the subject of the study for each school
555	555	district;
556	556	(2) one-half of the total dollar amount of any
557	557	residence homestead exemptions granted under Section 11.13(n), Tax
558	558	Code, in the year that is the subject of the study for each school
559	559	district;
560	560	(3) the total dollar amount of any exemptions granted
561	561	before May 31, 1993, within a reinvestment zone under agreements
562	562	authorized by Chapter 312, Tax Code;
563	563	(4) subject to Subsection (e), the total dollar amount
564	564	of any captured appraised value of property that:
565	565	(A) is within a reinvestment zone created on or
566	566	before May 31, 1999, or is proposed to be included within the
567	567	boundaries of a reinvestment zone as the boundaries of the zone and
568	568	the proposed portion of tax increment paid into the tax increment
569	569	fund by a school district are described in a written notification
570	570	provided by the municipality or the board of directors of the zone
571	571	to the governing bodies of the other taxing units in the manner
572	572	provided by Section 311.003(e), Tax Code, before May 31, 1999, and
573	573	within the boundaries of the zone as those boundaries existed on
574	574	September 1, 1999, including subsequent improvements to the
575	575	property regardless of when made;
576	576	(B) generates taxes paid into a tax increment
577	577	fund created under Chapter 311, Tax Code, under a reinvestment zone
578	578	financing plan approved under Section 311.011(d), Tax Code, on or
579	579	before September 1, 1999; and
580	580	(C) is eligible for tax increment financing under
581	581	Chapter 311, Tax Code;
582	582	(5) for a school district for which a deduction from
583	583	taxable value is made under Subdivision (4), an amount equal to the
584	584	taxable value required to generate revenue when taxed at the school
585	585	district's current tax rate in an amount that, when added to the
586	586	taxes of the district paid into a tax increment fund as described by
587	587	Subdivision (4)(B), is equal to the total amount of taxes the
588	588	district would have paid into the tax increment fund if the district
589	589	levied taxes at the rate the district levied in 2005;
590	590	(6) the total dollar amount of any captured appraised
591	591	value of property that:
592	592	(A) is within a reinvestment zone:
593	593	(i) created on or before December 31, 2008,
594	594	by a municipality with a population of less than 18,000; and
595	595	(ii) the project plan for which includes
596	596	the alteration, remodeling, repair, or reconstruction of a
597	597	structure that is included on the National Register of Historic
598	598	Places and requires that a portion of the tax increment of the zone
599	599	be used for the improvement or construction of related facilities
600	600	or for affordable housing;
601	601	(B) generates school district taxes that are paid
602	602	into a tax increment fund created under Chapter 311, Tax Code; and
603	603	(C) is eligible for tax increment financing under
604	604	Chapter 311, Tax Code;
605	605	(7) the total dollar amount of any exemptions granted
606	606	under Section 11.251 or 11.253, Tax Code;
607	607	(8) the difference between the comptroller's estimate
608	608	of the market value and the productivity value of land that
609	609	qualifies for appraisal on the basis of its productive capacity,
610	610	except that the productivity value estimated by the comptroller may
611	611	not exceed the fair market value of the land;
612	612	(9) the portion of the appraised value of residence
613	613	homesteads of individuals who receive a tax limitation under
614	614	Section 11.26, Tax Code, on which school district taxes are not
615	615	imposed in the year that is the subject of the study, calculated as
616	616	if the residence homesteads were appraised at the full value
617	617	required by law;
618	618	(10) a portion of the market value of property not
619	619	otherwise fully taxable by the district at market value because of:
620	620	(A) action required by statute or the
621	621	constitution of this state that, if the tax rate adopted by the
622	622	district is applied to it, produces an amount equal to the
623	623	difference between the tax that the district would have imposed on
624	624	the property if the property were fully taxable at market value and
625	625	the tax that the district is actually authorized to impose on the
626	626	property, if this subsection does not otherwise require that
627	627	portion to be deducted; or
628	628	(B) action taken by the district under Subchapter
629	629	B or C, Chapter 313, Tax Code, before the expiration of the
630	630	subchapter;
631	631	(11) the market value of all tangible personal
632	632	property, other than manufactured homes, owned by a family or
633	633	individual and not held or used for the production of income;
634	634	(12) the appraised value of property the collection of
635	635	delinquent taxes on which is deferred under Section 33.06, Tax
636	636	Code;
637	637	(13) the portion of the appraised value of property
638	638	the collection of delinquent taxes on which is deferred under
639	639	Section 33.065, Tax Code; and
640	640	(14) the amount by which the market value of a
641	641	residence homestead to which Section 23.23, Tax Code, applies
642	642	exceeds the appraised value of that property as calculated under
643	643	that section.
644	644	(m) Subsection (d)(10) does not apply to property that was
645	645	the subject of an application under Subchapter B or C, Chapter 313,
646	646	Tax Code, made after May 1, 2009, that the comptroller recommended
647	647	should be disapproved.
648	648	SECTION 14. Section 313.029, Tax Code, is repealed.
649	649	SECTION 15. Sections 313.021(1)(A), (2), and (5),
650	650	313.024(e), and 313.025(a), Tax Code, as amended by this Act, are
651	651	intended to clarify rather than change existing law. The
652	652	clarification made by Section 313.021(5), Tax Code, as amended by
653	653	this Act, is necessary to allow the Texas Workforce Commission to
654	654	implement that subdivision in conformance with the data collection
655	655	requirements imposed by the federal government.
656	656	SECTION 16. The Legislative Budget Board shall conduct an
657	657	effectiveness and efficiency review of the economic development
658	658	program established under Chapter 313, Tax Code, and report the
659	659	results of the review to the legislature not later than January 1,
660	660	2011.
661	661	SECTION 17. (a) Except as provided by Subsection (b) of
662	662	this section:
663	663	(1) this Act takes effect immediately if it receives a
664	664	vote of two-thirds of all the members elected to each house, as
665	665	provided by Section 39, Article III, Texas Constitution; and
666	666	(2) if this Act does not receive the vote necessary for
667	667	immediate effect, this Act takes effect September 1, 2009.
668	668	(b) Sections 313.025(a-1), (h), and (i) and 313.0265, Tax
669	669	Code, as added by this Act, take effect January 1, 2010.
670	670	______________________________ ______________________________
671	671	President of the Senate Speaker of the House
672	672	I certify that H.B. No. 3676 was passed by the House on May
673	673	15, 2009, by the following vote: Yeas 143, Nays 0, 1 present, not
674	674	voting; that the House refused to concur in Senate amendments to
675	675	H.B. No. 3676 on May 29, 2009, and requested the appointment of a
676	676	conference committee to consider the differences between the two
677	677	houses; and that the House adopted the conference committee report
678	678	on H.B. No. 3676 on May 31, 2009, by the following vote: Yeas 146,
679	679	Nays 0, 1 present, not voting.
680	680	______________________________
681	681	Chief Clerk of the House
682	682	I certify that H.B. No. 3676 was passed by the Senate, with
683	683	amendments, on May 27, 2009, by the following vote: Yeas 25, Nays
684	684	6; at the request of the House, the Senate appointed a conference
685	685	committee to consider the differences between the two houses; and
686	686	that the Senate adopted the conference committee report on H.B. No.
687	687	3676 on May 31, 2009, by the following vote: Yeas 26, Nays 5.
688	688	______________________________
689	689	Secretary of the Senate
690	690	APPROVED: __________________
691	691	Date
692	692	__________________
693	693	Governor