83R12661 T
By: Hilderbran H.B. No. 3390
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. Section 313.004, Tax Code, is amended to read as
follows:
Sec. 313.004. LEGISLATIVE INTENT. It is the intent of the
legislature in enacting this chapter that:
(1) economic development decisions involving school
district taxes should occur at the local level with oversight by the
state and be consistent with identifiable statewide economic
development goals;
(2) this chapter should not be construed or
interpreted to allow:
(A) property owners to pool investments to create
sufficiently large investments to qualify for an ad valorem tax
benefit or financial benefit provided by this chapter;
(B) an applicant for an ad valorem tax benefit or
financial benefit provided by this chapter to assert that jobs will
be eliminated if certain investments are not made if the assertion
is not true; or
(C) an entity not subject to the tax imposed by
Chapter 171 by virtue of its business structure [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 and
the comptroller 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].
SECTION 2. Section 313.007, Tax Code, is amended to read as
follows:
Sec. 313.007. EXPIRATION. Subchapters B, C, and D expire
December 31, 2020 [2014].
SECTION 3. Section 323.024, Tax Code, is amended by
amending Subsection (b) and adding Subsection (e)(7) to read as
follows:
(b) To be eligible for a limitation on appraised value under
this subchapter, the entity must use the property in connection
with:
(1) manufacturing;
(2) research and development;
(3) a clean coal project, as defined by Section 5.001,
Water Code;
(4) an advanced clean energy project, as defined by
Section 382.003, Health and Safety Code;
(5) renewable energy electric generation;
(6) electric power generation using integrated
gasification combined cycle technology;
(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 data center.
(e)(7) "Data center" means a facility composed of a single
building or a portion of a single building specifically constructed
or refurbished and actually used primarily to house servers and
related equipment and support staff for the processing, storage,
and distribution of data.
SECTION 4. Section 313.025, Tax Code, is amended by
amending Subsections (b), (b-1), (c), (d), and (f-1).
(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 an electronic copy or
three paper copies of the application to the comptroller and
request that the comptroller provide an economic impact evaluation
of the application to the school district. The [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, but not later than the 90th day after the
date the comptroller receives the application. The governing body
shall provide to the comptroller or a third person contracted by the
comptroller to conduct an economic impact evaluation any requested
information. A methodology to allow comparisons of economic impact
for different schedules of the addition of qualified investment or
qualified property may be developed as part of the economic impact
evaluation. The governing body shall provide a copy of the economic
impact evaluation to the applicant on request. The comptroller may
charge the applicant [and collect] a fee sufficient to cover the
costs of providing the economic impact evaluation. The governing
body of a school district shall approve or disapprove an
application not later than the 150th [before the 151st] day after
the date the application is filed, unless the economic impact
evaluation has not been received or an extension is agreed to by the
governing body and the applicant.
(b-1) The comptroller shall 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, if approved, will have on the number or size of the school
district's instructional facilities[, as required to be included in
the economic impact evaluation by Section 313.026[(a)(9)], and
submit a written report containing the agency's determination to
the school district [comptroller]. The governing body of the
school district shall provide any requested information to the
Texas Education Agency. Not later than the 45th day after the date
the 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 school
district [comptroller]. [A third person contracted by the
comptroller to conduct an economic impact evaluation of an
application is not required to make a determination that the Texas
Education Agency is required to make and report to the comptroller
under this subsection.]
(c) In determining whether to approve [grant] an
application, the governing body of the school district is entitled
to request and receive assistance from:
(1) the comptroller;
(2) the Texas [Department of] Economic Development and
Tourism Office;
(3) the Texas Workforce Investment Council; and
(4) the Texas Workforce Commission.
(d) Not later than the 90th [Before the 91st] day after the
date the comptroller receives [the copy of] the application, the
comptroller shall submit [a recommendation] to the governing body
of the school district a recommendation as to whether the
application should be approved or disapproved, and, if applicable,
a recommendation to waive or reduce the new jobs requirement.
(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 reduce or
waive the new jobs creation requirement in Section
313.021(2)(A)(iv)(b) or 313.051(b) and approve an application if
the comptroller:
(A) finds [governing body makes a finding] that
the jobs creation requirement exceeds the industry standard for the
number of employees reasonably necessary for the operation of the
facility of the property owner that is described in the
application; and
(B) recommends:
(i) reducing the number of new jobs
required; or
(ii) waiving the new jobs requirement.
SECTION 5. Section 313.026, Tax Code, is amended to read as
follows:
Sec. 313.026. ECONOMIC IMPACT EVALUATION. (a) The
economic impact evaluation of the application must include the
following:
(1) the 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 proposed investment;
(5) the relationship between the applicant's industry
and the types of qualifying jobs to be created by the applicant to
the long-term economic growth plans of this state [as described in
the strategic plan for economic development submitted by the Texas
Strategic Economic Development Planning Commission under Section
481.033, Government Code, as that section existed before February
1, 1999];
(6) the amount [relative level] of the applicant's
investment per qualifying job to be created by the applicant;
(7) the number of qualifying jobs to be created by the
applicant;
(8) the wages, salaries, and benefits to be offered by
the applicant to qualifying job holders;
(9) the ability of the applicant to locate or relocate
in another state or another region of this state;
(10) the impact the project will have on this state and
individual local units of government, including:
(A) tax and other revenue gains, direct or
indirect, that would be realized during the qualifying time period,
the limitation period, and a period of time after the limitation
period considered appropriate by the comptroller; and
(B) economic effects of the project, including
the impact on jobs and income, during the qualifying time period,
the limitation period, and a period of time after the limitation
period considered appropriate by the comptroller;
(11) the economic condition of the region of the state
at the time the person's application is being considered;
(12) [the number of new facilities built or expanded
in the region during the two years preceding the date of the
application that were eligible to apply for a limitation on
appraised value under this subchapter;
(13) the effect of the applicant's proposal, if
approved, on the number or size of the school district's
instructional facilities, as defined by Section 46.001, Education
Code;
(14)] the projected market value of the qualified
property of the applicant as determined by the comptroller;
(13) [(15)] the proposed limitation on appraised
value for the qualified property of the applicant;
(14) [(16)] the projected dollar amount of the taxes
that would be imposed on the qualified property, for each year of
the agreement, if the property does not receive a limitation on
appraised value with assumptions of the projected appreciation or
depreciation of the investment and projected tax rates clearly
stated;
(15) [(17)] the projected dollar amount of the taxes
that would be imposed on the qualified property, for each tax year
of the agreement, if the property receives a limitation on
appraised value with assumptions of the projected appreciation or
depreciation of the investment clearly stated;
(16) [(18)] the projected effect on the Foundation
School Program of payments to the district for each year of the
agreement;
(17) [(19)] the projected future tax credits if the
applicant also applies for school tax credits under Section
313.103; [and]
(18) [(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)]; and
(19) whether the jobs creation requirement exceeds the
industry standard for the number of employees reasonably necessary
for the operation of the facility described in the application.
(b) Except as provided by Subsection (c), the [The]
comptroller's recommendations shall be based on the criteria listed
in Subsections (a)(5)-(18) [(a)(5)-(20)] and on any other
information available to the comptroller, including information
provided by the governing body of the school district [under
Section 313.025(b)].
(c) The comptroller may not recommend approval of an
application if the comptroller determines that the net present
value of any projected additional state tax and fee revenue
generated as a direct or indirect result of the qualified
investment over the useful life of the qualified investment is not
likely to exceed the net present value of any projected increase in
payments to the school district under the Foundation School Program
resulting from the approval of the application [Expired].
SECTION 6. Section 313.027(i), Tax Code, is amended to read
as follows:
(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, including to a foundation or other
entity that exists to provide material or financial support to the
school district [in an amount that exceeds an amount equal to $100
per student per year in average daily attendance, as defined by
Section 42.005, Education Code], or for a period that exceeds the
period beginning with the period described by Section 313.021(4)
and ending with the period described by Section 313.104(2)(B) of
this code. This limit does not apply to amounts described by
Subsection (f)(1) or (2) of this section.
SECTION 7. Section 313.031(b), Tax Code, is amended to read
as follows:
(b) The governing body of a school district by official
action shall establish reasonable nonrefundable application fees
to be paid by property owners who apply to the district for a
limitation on the appraised value of the person's property under
this subchapter. The amount of an application fee must be
reasonable and may not exceed the estimated cost to the district of
processing and acting on an application, including any costs to the
school district associated with [the cost of] the economic impact
evaluation required by Sections 313.025 [and 313.026].
SECTION 8. Section 313.105(a), Tax Code, is amended to read
as follows:
(a) If the comptroller or [and] the governing body of a
school district determines [determine] that a person who received a
tax credit under this subchapter for any reason was not entitled to
the credit received or was entitled to a lesser amount of credit
than the amount of the credit received, an additional tax is imposed
on the qualified property equal to the full credit or the amount of
the credit to which the person was not entitled, as applicable, plus
interest at an annual rate of seven percent calculated from the date
the credit was issued.
SECTION 9. Sections 313.008 and 313.009, Tax Code, are
repealed.
SECTION 10. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2013.