Texas 2013 - 83rd Regular

Texas House Bill HB3390 Compare Versions

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1	1	By: Hilderbran, et al. (Senate Sponsor - Deuell) H.B. No. 3390
2	2	(In the Senate - Received from the House May 6, 2013;
3	3	May 7, 2013, read first time and referred to Committee on Economic
4	4	Development; May 14, 2013, reported adversely, with favorable
5	5	Committee Substitute by the following vote: Yeas 5, Nays 0;
6	6	May 14, 2013, sent to printer.)
7	7	COMMITTEE SUBSTITUTE FOR H.B. No. 3390 By: Deuell
8	8
9	9
10	10	A BILL TO BE ENTITLED
11	11	AN ACT
12	12	relating to the Texas Economic Development Act.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Sections 313.002 and 313.004, Tax Code, are
15	15	amended to read as follows:
16	16	Sec. 313.002. FINDINGS. The legislature finds that:
17	17	(1) many states have enacted aggressive economic
18	18	development laws designed to attract large employers, create jobs,
19	19	and strengthen their economies;
20	20	(2) given Texas' relatively high ad valorem taxes, it
21	21	is difficult for the state to compete for new capital projects
22	22	without some kind of temporary limit on ad valorem taxes imposed on
23	23	new capital investments [the State of Texas has slipped in its
24	24	national ranking each year between 1993 and 2000 in terms of
25	25	attracting major new manufacturing facilities to this state];
26	26	(3) a significant portion of the Texas economy
27	27	continues to be based in [the] manufacturing and other
28	28	capital-intensive industries [industry], and their [the] continued
29	29	growth and overall health serve [of the manufacturing sector
30	30	serves] the Texas economy well; and
31	31	(4) without a vibrant, strong manufacturing sector,
32	32	other sectors of the economy, especially the state's service
33	33	sector, will also suffer adverse consequences[; and
34	34	[(5) the current property tax system of this state
35	35	does not favor capital-intensive businesses such as
36	36	manufacturers].
37	37	Sec. 313.004. LEGISLATIVE INTENT. It is the intent of the
38	38	legislature in enacting this chapter that:
39	39	(1) economic development decisions should occur at the
40	40	local level and be consistent with identifiable statewide economic
41	41	development goals;
42	42	(2) this chapter should not be construed or
43	43	interpreted to allow:
44	44	(A) property owners to pool investments to create
45	45	sufficiently large investments to qualify for an ad valorem tax
46	46	benefit or financial benefit provided by this chapter;
47	47	(B) an applicant for an ad valorem tax benefit or
48	48	financial benefit provided by this chapter to assert that jobs will
49	49	be eliminated if certain investments are not made if the assertion
50	50	is not true; or
51	51	(C) an entity not subject to the franchise tax
52	52	imposed by Chapter 171 because of its form of business [a sole
53	53	proprietorship, partnership, or limited liability partnership] to
54	54	receive an ad valorem tax benefit or financial benefit provided by
55	55	this chapter; and
56	56	(3) in implementing this chapter, school districts
57	57	should:
58	58	(A) strictly interpret the criteria and
59	59	selection guidelines provided by this chapter; and
60	60	(B) approve only those applications for an ad
61	61	valorem tax benefit or financial benefit provided by this chapter
62	62	that:
63	63	(i) enhance the local community;
64	64	(ii) improve the local public education
65	65	system;
66	66	(iii) create high-paying jobs; and
67	67	(iv) advance the economic development goals
68	68	of this state as identified by the Texas Strategic Economic
69	69	Development Planning Commission or its successor.
70	70	SECTION 2. Section 313.021, Tax Code, is transferred to
71	71	Subchapter A, Chapter 313, Tax Code, redesignated as Section
72	72	313.0045, Tax Code, and amended to read as follows:
73	73	Sec. 313.0045 [313.021]. DEFINITIONS. (a) In this chapter
74	74	[subchapter]:
75	75	(1) "Qualified investment" means:
76	76	(A) tangible personal property that is first
77	77	placed in service in this state during the applicable qualifying
78	78	time period that begins on or after January 1, 2002, without regard
79	79	to whether the property is affixed to or incorporated into real
80	80	property, and that is described as Section 1245 property by Section
81	81	1245(a), Internal Revenue Code of 1986;
82	82	(B) tangible personal property that is first
83	83	placed in service in this state during the applicable qualifying
84	84	time period that begins on or after January 1, 2002, without regard
85	85	to whether the property is affixed to or incorporated into real
86	86	property, and that is used in connection with the manufacturing,
87	87	processing, or fabrication in a cleanroom environment of a
88	88	semiconductor product, without regard to whether the property is
89	89	actually located in the cleanroom environment, including:
90	90	(i) integrated systems, fixtures, and
91	91	piping;
92	92	(ii) all property necessary or adapted to
93	93	reduce contamination or to control airflow, temperature, humidity,
94	94	chemical purity, or other environmental conditions or
95	95	manufacturing tolerances; and
96	96	(iii) production equipment and machinery,
97	97	moveable cleanroom partitions, and cleanroom lighting;
98	98	(C) tangible personal property that is first
99	99	placed in service in this state during the applicable qualifying
100	100	time period that begins on or after January 1, 2002, without regard
101	101	to whether the property is affixed to or incorporated into real
102	102	property, and that is used in connection with the operation of a
103	103	nuclear electric power generation facility, including:
104	104	(i) property, including pressure vessels,
105	105	pumps, turbines, generators, and condensers, used to produce
106	106	nuclear electric power; and
107	107	(ii) property and systems necessary to
108	108	control radioactive contamination;
109	109	(D) tangible personal property that is first
110	110	placed in service in this state during the applicable qualifying
111	111	time period that begins on or after January 1, 2002, without regard
112	112	to whether the property is affixed to or incorporated into real
113	113	property, and that is used in connection with operating an
114	114	integrated gasification combined cycle electric generation
115	115	facility, including:
116	116	(i) property used to produce electric power
117	117	by means of a combined combustion turbine and steam turbine
118	118	application using synthetic gas or another product produced by the
119	119	gasification of coal or another carbon-based feedstock; or
120	120	(ii) property used in handling materials to
121	121	be used as feedstock for gasification or used in the gasification
122	122	process to produce synthetic gas or another carbon-based feedstock
123	123	for use in the production of electric power in the manner described
124	124	by Subparagraph (i);
125	125	(E) tangible personal property that is first
126	126	placed in service in this state during the applicable qualifying
127	127	time period [that begins on or after January 1, 2010], without
128	128	regard to whether the property is affixed to or incorporated into
129	129	real property, and that is used in connection with operating an
130	130	advanced clean energy project, as defined by Section 382.003,
131	131	Health and Safety Code; [or]
132	132	(F) a building or a permanent, nonremovable
133	133	component of a building that is built or constructed during the
134	134	applicable qualifying time period that begins on or after January
135	135	1, 2002, and that houses tangible personal property described by
136	136	Paragraph (A), (B), (C), (D), or (E); or
137	137	(G) an existing building that, as part of a
138	138	discrete project that increases the value of an existing property,
139	139	is renovated, expanded, or otherwise improved.
140	140	(2) "Qualified property" means:
141	141	(A) land:
142	142	(i) that is located in an area designated as
143	143	a reinvestment zone under Chapter 311 or 312 or as an enterprise
144	144	zone under Chapter 2303, Government Code;
145	145	(ii) on which a person proposes to
146	146	construct a new building or erect or affix a new improvement that
147	147	does not exist before the date the person applies for a limitation
148	148	on appraised value under this subchapter;
149	149	(iii) that is not subject to a tax abatement
150	150	agreement entered into by a school district under Chapter 312; and
151	151	(iv) on which, in connection with the new
152	152	building or new improvement described by Subparagraph (ii), the
153	153	owner or lessee of, or the holder of another possessory interest in,
154	154	the land proposes to:
155	155	(a) make a qualified investment in an
156	156	amount equal to at least the minimum amount required by Section
157	157	313.023; and
158	158	(b) create at least 25 new jobs;
159	159	(B) the new building or other new improvement
160	160	described by Paragraph (A)(ii); and
161	161	(C) tangible personal property that:
162	162	(i) is not subject to a tax abatement
163	163	agreement entered into by a school district under Chapter 312; and
164	164	(ii) except for new equipment described in
165	165	Section 151.318(q) or (q-1), is first placed in service in the new
166	166	building or in or on the new improvement described by Paragraph
167	167	(A)(ii), or on the land on which that new building or new
168	168	improvement is located, if the personal property is ancillary and
169	169	necessary to the business conducted in that new building or in or on
170	170	that new improvement.
171	171	(3) "Qualifying job" means a permanent full-time job
172	172	that:
173	173	(A) requires at least 1,600 hours of work a year;
174	174	(B) is not transferred from one area in this
175	175	state to another area in this state;
176	176	(C) is not created to replace a previous
177	177	employee;
178	178	(D) is covered by a group health benefit plan
179	179	that complies with the Patient Protection and Affordable Care Act
180	180	(Pub. L. No. 111-148) as amended by the Health Care and Education
181	181	Reconciliation Act of 2010 (Pub. L. No. 111-152), or a successor law
182	182	[for which the business offers to pay at least 80 percent of the
183	183	premiums or other charges assessed for employee-only coverage under
184	184	the plan, regardless of whether an employee may voluntarily waive
185	185	the coverage]; and
186	186	(E) pays at least 110 percent of the lesser of:
187	187	(i) the county average weekly wage for
188	188	manufacturing jobs in the county where the job is located; or
189	189	(ii) the county average weekly wage for all
190	190	jobs in the county where the job is located, if the property owner
191	191	creates more than 1,000 jobs in that county.
192	192	(4) "Qualifying time period" means:
193	193	(A) the period that begins on the date that a
194	194	person's application for a limitation on appraised value under this
195	195	chapter [subchapter] is approved by the governing body of the
196	196	school district and ends on December 31 of the second tax year that
197	197	begins after that date, except as provided by Paragraph (B) or (C)
198	198	of this subdivision or Section 313.014(h) [313.027(h)];
199	199	(B) in connection with a nuclear electric power
200	200	generation facility, the first seven tax years that begin on or
201	201	after the third anniversary of the date the school district
202	202	approves the property owner's application for a limitation on
203	203	appraised value under this chapter [subchapter], unless a shorter
204	204	time period is agreed to by the governing body of the school
205	205	district and the property owner; or
206	206	(C) in connection with an advanced clean energy
207	207	project, as defined by Section 382.003, Health and Safety Code, the
208	208	first five tax years that begin on or after the third anniversary of
209	209	the date the school district approves the property owner's
210	210	application for a limitation on appraised value under this chapter
211	211	[subchapter], unless a shorter time period is agreed to by the
212	212	governing body of the school district and the property owner.
213	213	(5) "County average weekly wage for manufacturing
214	214	jobs" means:
215	215	(A) the average weekly wage in a county for
216	216	manufacturing jobs during the most recent four quarterly periods
217	217	for which data is available at the time a person submits an
218	218	application for a limitation on appraised value under this chapter
219	219	[subchapter], as computed by the Texas Workforce Commission; or
220	220	(B) the average weekly wage for manufacturing
221	221	jobs in the region designated for the regional planning commission,
222	222	council of governments, or similar regional planning agency created
223	223	under Chapter 391, Local Government Code, in which the county is
224	224	located during the most recent four quarterly periods for which
225	225	data is available at the time a person submits an application for a
226	226	limitation on appraised value under this chapter [subchapter], as
227	227	computed by the Texas Workforce Commission.
228	228	(6) "Texas priority project" means a project
229	229	designated by the governor:
230	230	(A) on which the applicant has committed to
231	231	expend or allocate a qualified investment of more than $1 billion;
232	232	and
233	233	(B) that the governor has certified in a letter
234	234	provided to the applicant is in the best interest of the state
235	235	economy.
236	236	(b) Unless this chapter defines a word or phrase used in
237	237	this chapter, Section 1.04 or any other section of Title 1 or this
238	238	title that defines the word or phrase or ascribes a meaning to the
239	239	word or phrase applies to the word or phrase used in this chapter.
240	240	SECTION 3. Section 313.006(a), Tax Code, is amended to read
241	241	as follows:
242	242	(a) In this section, "impact fee" means a charge or
243	243	assessment imposed against a qualified property [, as defined by
244	244	Section 313.021,] in order to generate revenue for funding or
245	245	recouping the costs of capital improvements or facility expansions
246	246	for water, wastewater, or storm water services or for roads
247	247	necessitated by or attributable to property that receives a
248	248	limitation on appraised value under this chapter.
249	249	SECTION 4. Section 313.007, Tax Code, is amended to read as
250	250	follows:
251	251	Sec. 313.007. EXPIRATION. Subchapters A-1, B, and C [, and
252	252	D] expire December 31, 2020 [2014].
253	253	SECTION 5. Chapter 313, Tax Code, is amended by adding
254	254	Subchapter A-1, and a heading is added to that subchapter to read as
255	255	follows:
256	256	SUBCHAPTER A-1. ELIGIBILITY, APPLICATION, AND REPORTING
257	257	SECTION 6. Sections 313.024, 313.025, 313.026, 313.0265,
258	258	313.027, 313.0275, 313.028, 313.030, 313.031, and 313.032, Tax
259	259	Code, are transferred to Subchapter A-1, Chapter 313, Tax Code, as
260	260	added by this Act, redesignated as Sections 313.011, 313.012,
261	261	313.013, 313.0135, 313.014, 313.0145, 313.015, 313.016, 313.017,
262	262	and 313.018, Tax Code, and amended to read as follows:
263	263	Sec. 313.011 [313.024]. ELIGIBLE PROPERTY. (a) This
264	264	chapter applies [subchapter and Subchapters C and D apply] only to
265	265	property owned by an entity to which Chapter 171 applies.
266	266	(b) To be eligible for a limitation on appraised value under
267	267	this chapter [subchapter], the entity must use the property in
268	268	connection with:
269	269	(1) manufacturing;
270	270	(2) research and development;
271	271	(3) a clean coal project, as defined by Section 5.001,
272	272	Water Code;
273	273	(4) an advanced clean energy project, as defined by
274	274	Section 382.003, Health and Safety Code;
275	275	(5) renewable energy electric generation;
276	276	(6) electric power generation using integrated
277	277	gasification combined cycle technology;
278	278	(7) nuclear electric power generation; [or]
279	279	(8) a computer center primarily used in connection
280	280	with one or more activities described by Subdivisions (1) through
281	281	(7) conducted by the entity; or
282	282	(9) a Texas priority project.
283	283	(c) For purposes of determining an applicant's eligibility
284	284	for a limitation under this chapter [subchapter]:
285	285	(1) the land on which a building or component of a
286	286	building described by Section 313.0045(a)(1)(E) [313.021(1)(E)] is
287	287	located is not considered a qualified investment;
288	288	(2) property that is leased under a capitalized lease
289	289	may be considered a qualified investment;
290	290	(3) property that is leased under an operating lease
291	291	may not be considered a qualified investment; and
292	292	(4) property that is owned by a person other than the
293	293	applicant and that is pooled or proposed to be pooled with property
294	294	owned by the applicant may not be included in determining the amount
295	295	of the applicant's qualifying investment.
296	296	(d) To be eligible for a limitation on appraised value under
297	297	this chapter [subchapter], at least 80 percent of all the new jobs
298	298	created by the property owner must be qualifying jobs [as defined by
299	299	Section 313.021(3)].
300	300	(e) In this section:
301	301	(1) "Manufacturing" means an establishment primarily
302	302	engaged in activities described in sectors 31-33 of the 2007 North
303	303	American Industry Classification System.
304	304	(2) "Renewable energy electric generation" means an
305	305	establishment primarily engaged in activities described in
306	306	category 221119 of the 1997 North American Industry Classification
307	307	System.
308	308	(3) "Integrated gasification combined cycle
309	309	technology" means technology used to produce electricity in a
310	310	combined combustion turbine and steam turbine application using
311	311	synthetic gas or another product produced from the gasification of
312	312	coal or another carbon-based feedstock, including related
313	313	activities such as materials-handling and gasification of coal or
314	314	another carbon-based feedstock.
315	315	(4) "Nuclear electric power generation" means
316	316	activities described in category 221113 of the 2002 North American
317	317	Industry Classification System.
318	318	(5) "Research and development" means an establishment
319	319	primarily engaged in activities described in category 541710 of the
320	320	2002 North American Industry Classification System.
321	321	(6) "Computer center" means an establishment
322	322	primarily engaged in providing electronic data processing and
323	323	information storage.
324	324	Sec. 313.012 [313.025]. APPLICATION; ACTION ON
325	325	APPLICATION. (a) The owner or lessee of, or the holder of another
326	326	possessory interest in, any qualified property [described by
327	327	Section 313.021(2)(A), (B), or (C)] may apply to the governing body
328	328	of the school district in which the property is located for a
329	329	limitation on the appraised value for school district maintenance
330	330	and operations ad valorem tax purposes of the person's qualified
331	331	property. An application must be made on the form prescribed by
332	332	the comptroller and include the information required by the
333	333	comptroller, and it must be accompanied by:
334	334	(1) the application fee established by the governing
335	335	body of the school district;
336	336	(2) information sufficient to show that the real and
337	337	personal property identified in the application as qualified
338	338	property meets the applicable criteria established by Section
339	339	313.0045(a)(2) [313.021(2)]; and
340	340	(3) information relating to each applicable criterion
341	341	listed in Section 313.013 [313.026].
342	342	(a-1) Within seven days of the receipt of each document, the
343	343	school district shall submit to the comptroller a copy of the
344	344	application and the agreement between the applicant and the school
345	345	district. If an economic analysis of the proposed project is
346	346	submitted to the school district, the district shall submit a copy
347	347	of the analysis to the comptroller. In addition, the school
348	348	district shall submit to the comptroller any subsequent revision of
349	349	or amendment to any of those documents within seven days of its
350	350	receipt. The comptroller shall publish each document received from
351	351	the school district under this subsection on the comptroller's
352	352	Internet website. If the school district maintains a generally
353	353	accessible Internet website, the district shall provide on its
354	354	website a link to the location of those documents posted on the
355	355	comptroller's website in compliance with this subsection. This
356	356	subsection does not require the comptroller to post information
357	357	that is confidential under Section 313.015 [313.028].
358	358	(b) The governing body of a school district is not required
359	359	to consider an application for a limitation on appraised value that
360	360	is filed with the governing body under Subsection (a). If the
361	361	governing body of the school district does elect to consider an
362	362	application, the governing body shall deliver three copies of the
363	363	application to the comptroller and request that the comptroller
364	364	provide an economic impact evaluation of the application to the
365	365	school district. Except as provided by Subsection (b-1), the
366	366	comptroller shall conduct or contract with a third person to
367	367	conduct the evaluation, which shall be completed and provided to
368	368	the governing body of the school district as soon as practicable.
369	369	The governing body shall provide to the comptroller or third person
370	370	any requested information. A methodology to allow comparisons of
371	371	economic impact for different schedules of the addition of
372	372	qualified investment or qualified property may be developed as part
373	373	of the economic impact evaluation. The governing body shall
374	374	provide a copy of the evaluation to the applicant on request. The
375	375	comptroller may charge and collect a fee sufficient to cover the
376	376	costs of providing the economic impact evaluation. The governing
377	377	body of a school district shall approve or disapprove an
378	378	application before the 151st day after the date the application is
379	379	filed, unless the economic impact evaluation has not been received
380	380	or an extension is agreed to by the governing body and the
381	381	applicant.
382	382	(b-1) The comptroller shall indicate on one copy of the
383	383	application the date the comptroller received the application and
384	384	deliver that copy to the Texas Education Agency. The Texas
385	385	Education Agency shall determine the effect that the applicant's
386	386	proposal will have on the number or size of the school district's
387	387	instructional facilities, as required to be included in the
388	388	economic impact evaluation by Section 313.013(a)(11)
389	389	[313.026(a)(9)], and submit a written report containing the
390	390	agency's determination to the comptroller. The governing body of
391	391	the school district shall provide any requested information to the
392	392	Texas Education Agency. Not later than the 45th day after the date
393	393	the application indicates that the comptroller received the
394	394	application, the Texas Education Agency shall make the required
395	395	determination and submit the agency's written report to the
396	396	comptroller. A third person contracted by the comptroller to
397	397	conduct an economic impact evaluation of an application is not
398	398	required to make a determination that the Texas Education Agency is
399	399	required to make and report to the comptroller under this
400	400	subsection.
401	401	(c) In determining whether to grant an application, the
402	402	governing body of the school district is entitled to request and
403	403	receive assistance from:
404	404	(1) the comptroller;
405	405	(2) the Texas [Department of] Economic Development and
406	406	Tourism Office;
407	407	(3) the Texas Workforce Investment Council; and
408	408	(4) the Texas Workforce Commission.
409	409	(d) Before the 91st day after the date the comptroller
410	410	receives the copy of the application, the comptroller shall submit
411	411	a recommendation to the governing body of the school district as to
412	412	whether the application should be approved or disapproved. The
413	413	comptroller may recommend to the governing body of the school
414	414	district that the application be approved only if the comptroller
415	415	determines that the limitation on appraised value is a significant
416	416	consideration by the applicant in determining whether to invest
417	417	capital and construct the project in this state.
418	418	(d-1) The governing body of a school district may approve an
419	419	application that the comptroller has recommended should be
420	420	disapproved only if:
421	421	(1) the governing body holds a public hearing the sole
422	422	purpose of which is to consider the application and the
423	423	comptroller's recommendation; and
424	424	(2) at a subsequent meeting of the governing body held
425	425	after the date of the public hearing, at least two-thirds of the
426	426	members of the governing body vote to approve the application.
427	427	(e) Before approving or disapproving an application under
428	428	this chapter [subchapter] that the governing body elects to
429	429	consider, the governing body of the school district must make a
430	430	written finding as to each criterion listed in Section 313.013
431	431	[313.026]. The governing body shall deliver a copy of those
432	432	findings to the applicant.
433	433	(f) The governing body may approve an application only if
434	434	the governing body finds that the information in the application is
435	435	true and correct, finds that the applicant is eligible for the
436	436	limitation on the appraised value of the person's qualified
437	437	property, and determines that granting the application is in the
438	438	best interest of the school district and this state.
439	439	(f-1) Notwithstanding any other provision of this chapter
440	440	to the contrary, including Section 313.003(2) or 313.004(3)(A) or
441	441	(B)(iii), the governing body of a school district may waive the new
442	442	jobs creation requirement in Section 313.0045(a)(2)(A)(iv)(b)
443	443	[313.021(2)(A)(iv)(b)] or 313.051(b) and approve an application if
444	444	the governing body makes a finding that the jobs creation
445	445	requirement exceeds the industry standard for the number of
446	446	employees reasonably necessary for the operation of the facility of
447	447	the property owner that is described in the application.
448	448	(g) The Texas [Department of] Economic Development and
449	449	Tourism Office or its successor may recommend that a school
450	450	district grant a person a limitation on appraised value under this
451	451	chapter. In determining whether to grant an application, the
452	452	governing body of the school district shall consider any
453	453	recommendation made by the Texas [Department of] Economic
454	454	Development and Tourism Office or its successor.
455	455	(h) After receiving a copy of the application, the
456	456	comptroller shall determine whether the property meets the
457	457	requirements of Section 313.011 [313.024] for eligibility for a
458	458	limitation on appraised value under this chapter [subchapter]. The
459	459	comptroller shall notify the governing body of the school district
460	460	of the comptroller's determination and provide the applicant an
461	461	opportunity for a hearing before the determination becomes final.
462	462	A hearing under this subsection is a contested case hearing and
463	463	shall be conducted by the State Office of Administrative Hearings
464	464	in the manner provided by Section 2003.101, Government Code. The
465	465	applicant has the burden of proof on each issue in the hearing. The
466	466	applicant may seek judicial review of the comptroller's
467	467	determination in a Travis County district court under the
468	468	substantial evidence rule as provided by Subchapter G, Chapter
469	469	2001, Government Code.
470	470	(i) If the comptroller's determination under Subsection (h)
471	471	that the property does not meet the requirements of Section 313.011
472	472	[313.024] for eligibility for a limitation on appraised value under
473	473	this chapter [subchapter] becomes final, the comptroller is not
474	474	required to provide an economic impact evaluation of the
475	475	application or to submit a recommendation to the school district as
476	476	to whether the application should be approved or disapproved, and
477	477	the governing body of the school district may not grant the
478	478	application.
479	479	Sec. 313.013 [313.026]. ECONOMIC IMPACT EVALUATION. (a)
480	480	The economic impact evaluation of the application must include the
481	481	following:
482	482	(1) the recommendations of the comptroller;
483	483	(2) the name of the school district;
484	484	(3) the name of the applicant;
485	485	(4) a description of the general nature of the
486	486	applicant's investment;
487	487	(5) [the relationship between the applicant's industry
488	488	and the types of qualifying jobs to be created by the applicant to
489	489	the long-term economic growth plans of this state as described in
490	490	the strategic plan for economic development submitted by the Texas
491	491	Strategic Economic Development Planning Commission under Section
492	492	481.033, Government Code, as that section existed before February
493	493	1, 1999;
494	494	[(6)] the amount [relative level] of the applicant's
495	495	intended investment [per qualifying job to be created by the
496	496	applicant];
497	497	(6) [(7)] the number of qualifying, construction, and
498	498	operations jobs to be created by the applicant;
499	499	(7) [(8)] the wages, salaries, and benefits to be
500	500	offered by the applicant to qualifying, construction, and
501	501	operations job holders;
502	502	(8) [(9)] the ability of the applicant to locate or
503	503	relocate in another state or another region of this state;
504	504	(9) [(10)] the fiscal impact the project will have on
505	505	this state and individual local units of government, including:
506	506	(A) tax and other revenue gains, direct and
507	507	otherwise [or indirect], that would be realized during the
508	508	construction and operation of the facility, including [qualifying
509	509	time period,] the limitation period [,] and a period of time after
510	510	the limitation period considered appropriate by the comptroller;
511	511	and
512	512	(B) economic effects of the project, including
513	513	the impact on jobs and income, direct and otherwise, during the
514	514	construction and operation of the facility, including [qualifying
515	515	time period,] the limitation period [,] and a period of time after
516	516	the limitation period considered appropriate by the comptroller;
517	517	(10) [(11)] the economic condition of the region of
518	518	the state at the time the person's application is being considered;
519	519	(11) [(12) the number of new facilities built or
520	520	expanded in the region during the two years preceding the date of
521	521	the application that were eligible to apply for a limitation on
522	522	appraised value under this subchapter;
523	523	[(13)] the effect of the applicant's proposal, if
524	524	approved, on the number or size of the school district's
525	525	instructional facilities, as defined by Section 46.001, Education
526	526	Code;
527	527	(12) [(14)] the projected market value of the
528	528	qualified property of the applicant as determined by the
529	529	comptroller;
530	530	(13) [(15)] the proposed limitation on appraised
531	531	value for the qualified property of the applicant;
532	532	(14) [(16)] the projected dollar amount of the taxes
533	533	that would be imposed on the qualified property, for each year of
534	534	the agreement, if the property does not receive a limitation on
535	535	appraised value with assumptions of the projected appreciation or
536	536	depreciation of the investment and projected tax rates clearly
537	537	stated;
538	538	(15) [(17)] the projected dollar amount of the taxes
539	539	that would be imposed on the qualified property, for each tax year
540	540	of the agreement, if the property receives a limitation on
541	541	appraised value with assumptions of the projected appreciation or
542	542	depreciation of the investment clearly stated;
543	543	(16) [(18)] the projected effect on the Foundation
544	544	School Program of payments to the district for each year of the
545	545	agreement; and
546	546	(17) [(19) the projected future tax credits if the
547	547	applicant also applies for school tax credits under Section
548	548	313.103; and
549	549	[(20)] the total amount of taxes projected to be lost
550	550	or gained by the district over the life of the agreement computed by
551	551	subtracting the projected taxes stated in Subdivision (15) [(17)]
552	552	from the projected taxes stated in Subdivision (14) [(16)].
553	553	(b) The comptroller's recommendations shall be based on the
554	554	criteria listed in Subsection (a) [Subsections (a)(5)-(20)] and on
555	555	any other information available to the comptroller, including
556	556	information provided by the governing body of the school district
557	557	under Section 313.012(b) [313.025(b)].
558	558	Sec. 313.0135 [313.0265]. DISCLOSURE OF APPRAISED VALUE
559	559	LIMITATION INFORMATION. (a) The comptroller shall post on the
560	560	comptroller's Internet website each document or item of information
561	561	the comptroller designates as substantive before the 15th day after
562	562	the date the document or item of information was received or
563	563	created. Each document or item of information must continue to be
564	564	posted until the appraised value limitation expires.
565	565	(b) The comptroller shall designate the following as
566	566	substantive:
567	567	(1) each application requesting a limitation on
568	568	appraised value; and
569	569	(2) the economic impact evaluation made in connection
570	570	with the application [; and
571	571	[(3) each application requesting school tax credits
572	572	under Section 313.103].
573	573	(c) If a school district maintains a generally accessible
574	574	Internet website, the district shall maintain a link on its
575	575	Internet website to the area of the comptroller's Internet website
576	576	where information on each of the district's agreements to limit
577	577	appraised value is maintained.
578	578	Sec. 313.014 [313.027]. LIMITATION ON APPRAISED VALUE;
579	579	AGREEMENT. (a) If the person's application is approved by the
580	580	governing body of the school district, [for each of the first eight
581	581	tax years that begin after the applicable qualifying time period,]
582	582	the appraised value for school district maintenance and operations
583	583	ad valorem tax purposes of the person's qualified property as
584	584	described in the agreement between the person and the district
585	585	entered into under this section in the school district may not
586	586	exceed the lesser of:
587	587	(1) the market value of the property; or
588	588	(2) [subject to Subsection (b),] the amount agreed to
589	589	by the governing body of the school district under Subchapter B or
590	590	C, as applicable.
591	591	(b) The agreement must:
592	592	(1) provide that the limitation under Subsection (a)
593	593	applies for a period of 10 years; and
594	594	(2) specify the beginning date of the limitation,
595	595	which must be January 1 of the first tax year that begins after:
596	596	(A) the application date;
597	597	(B) the qualifying time period; or
598	598	(C) the date commercial operations begin at the
599	599	site of the project. [amount agreed to by the governing body of a
600	600	school district under Subsection (a)(2) must be an amount in
601	601	accordance with the following, according to the category
602	602	established by Section 313.022 to which the school district
603	603	belongs:
604	604	CATEGORY MINIMUM AMOUNT OF LIMITATION CATEGORY MINIMUM AMOUNT OF LIMITATION
605	605	CATEGORY MINIMUM AMOUNT OF LIMITATION
606	606	I $100 million I $100 million
607	607	I $100 million
608	608	II $80 million II $80 million
609	609	II $80 million
610	610	III $60 million III $60 million
611	611	III $60 million
612	612	IV $40 million IV $40 million
613	613	IV $40 million
614	614	V $20 million] V $20 million]
615	615	V $20 million]
616	616	(c) The limitation amounts prescribed under Subchapter B or
617	617	C, as applicable, [listed in Subsection (b)] are minimum amounts. A
618	618	school district, regardless of category, may agree to a greater
619	619	amount than those amounts.
620	620	(d) The governing body of the school district and the
621	621	property owner shall enter into a written agreement for the
622	622	implementation of the limitation on appraised value under this
623	623	chapter [subchapter] on the owner's qualified property.
624	624	(e) The agreement must describe with specificity the
625	625	qualified investment that the person will make on or in connection
626	626	with the person's qualified property that is subject to the
627	627	limitation on appraised value under this chapter [subchapter].
628	628	Other property of the person that is not specifically described in
629	629	the agreement is not subject to the limitation unless the governing
630	630	body of the school district, by official action, provides that the
631	631	other property is subject to the limitation.
632	632	(f) In addition, the agreement:
633	633	(1) must incorporate each relevant provision of this
634	634	chapter [subchapter] and, to the extent necessary, include
635	635	provisions for the protection of future school district revenues
636	636	through the adjustment of the minimum valuations, the payment of
637	637	revenue offsets, and other mechanisms agreed to by the property
638	638	owner and the school district;
639	639	(2) may provide that the property owner will protect
640	640	the school district in the event the district incurs extraordinary
641	641	education-related expenses related to the project that are not
642	642	directly funded in state aid formulas, including expenses for the
643	643	purchase of portable classrooms and the hiring of additional
644	644	personnel to accommodate a temporary increase in student enrollment
645	645	attributable to the project;
646	646	(3) must require the property owner to maintain a
647	647	viable presence in the school district for at least five [three]
648	648	years after the date the limitation on appraised value of the
649	649	owner's property expires;
650	650	(4) must provide for the termination of the agreement,
651	651	the recapture of ad valorem tax revenue lost as a result of the
652	652	agreement if the owner of the property fails to comply with the
653	653	terms of the agreement, and payment of a penalty or interest, or
654	654	both, on that recaptured ad valorem tax revenue;
655	655	(5) may specify any conditions the occurrence of which
656	656	will require the district and the property owner to renegotiate all
657	657	or any part of the agreement; and
658	658	(6) must specify the ad valorem tax years covered by
659	659	the agreement.
660	660	(g) When appraising a person's qualified property subject
661	661	to a limitation on appraised value under this section, the chief
662	662	appraiser shall determine the market value of the property and
663	663	include both the market value and the appropriate value under
664	664	Subsection (a) in the appraisal records.
665	665	(h) The agreement between the governing body of the school
666	666	district and the applicant may provide for a deferral of the date on
667	667	which the qualifying time period for the project is to commence or,
668	668	subsequent to the date the agreement is entered into, be amended to
669	669	provide for such a deferral. The agreement may not provide for the
670	670	deferral of the date on which the qualifying time period is to
671	671	commence to a date later than January 1 of the fourth tax year that
672	672	begins after the date the application is approved except that if the
673	673	agreement is one of a series of agreements related to the same
674	674	project, the agreement may provide for the deferral of the date on
675	675	which the qualifying time period is to commence to a date not later
676	676	than January 1 of the sixth tax year that begins after the date the
677	677	application is approved. This subsection may not be construed to
678	678	permit a qualifying time period that has commenced to continue for
679	679	more than the number of years applicable to the project under
680	680	Section 313.0045(a)(4) [313.021(4)].
681	681	(i) A person and the school district may not enter into an
682	682	agreement under which the person agrees to provide supplemental
683	683	payments to a school district or any other entity on behalf of a
684	684	school district in an amount that exceeds an amount equal to $100
685	685	per student per year in average daily attendance, as defined by
686	686	Section 42.005, Education Code, or for a period that exceeds the
687	687	period beginning with the period described by Section
688	688	313.0045(a)(4) [313.021(4)] and ending December 31 of the third tax
689	689	year after the date the person's eligibility for a limitation under
690	690	this chapter expires [with the period described by Section
691	691	313.104(2)(B) of this code]. This limit does not apply to amounts
692	692	described by Subsection (f)(1) or (2) [of this section].
693	693	(j) An agreement under this chapter must disclose any
694	694	consideration promised in conjunction with the application and the
695	695	limitation.
696	696	Sec. 313.0145 [313.0275]. RECAPTURE OF AD VALOREM TAX
697	697	REVENUE LOST. (a) Notwithstanding any other provision of this
698	698	chapter to the contrary, a person with whom a school district enters
699	699	into an agreement under this chapter [subchapter] must make the
700	700	minimum amount of qualified investment [during the qualifying time
701	701	period] and create the required number of qualifying jobs during
702	702	each year of the agreement.
703	703	(b) If in any tax year a property owner fails to comply with
704	704	Subsection (a), the property owner is liable to this state for a
705	705	penalty equal to the amount computed by subtracting from the market
706	706	value of the property for that tax year the value of the property as
707	707	limited by the agreement and multiplying the difference by the
708	708	maintenance and operations tax rate of the school district for that
709	709	tax year.
710	710	(c) A penalty imposed under Subsection (b) becomes
711	711	delinquent if not paid on or before February 1 of the following tax
712	712	year. Section 33.01 applies to the delinquent penalty in the manner
713	713	that section applies to delinquent taxes.
714	714	(d) In the event of a casualty loss, a person with whom a
715	715	school district enters into an agreement under this chapter may
716	716	request and the school district may grant a waiver of the
717	717	requirements of this section.
718	718	Sec. 313.015 [313.028]. CERTAIN BUSINESS INFORMATION
719	719	CONFIDENTIAL. Information provided to a school district in
720	720	connection with an application for a limitation on appraised value
721	721	under this chapter [subchapter] that describes the specific
722	722	processes or business activities to be conducted or the specific
723	723	tangible personal property to be located on real property covered
724	724	by the application shall be segregated in the application from
725	725	other information in the application and is confidential and not
726	726	subject to public disclosure unless the governing body of the
727	727	school district approves the application. Other information in the
728	728	custody of a school district or the comptroller in connection with
729	729	the application, including information related to the economic
730	730	impact of a project or the essential elements of eligibility under
731	731	this chapter, such as the nature and amount of the projected
732	732	investment, employment, wages, and benefits, may not be considered
733	733	confidential business information if the governing body of the
734	734	school district agrees to consider the application. Information in
735	735	the custody of a school district or the comptroller if the governing
736	736	body approves the application is not confidential under this
737	737	section.
738	738	Sec. 313.016 [313.030]. PROPERTY NOT ELIGIBLE FOR TAX
739	739	ABATEMENT. Property subject to a limitation on appraised value in a
740	740	tax year under this chapter [subchapter] is not eligible for tax
741	741	abatement by a school district under Chapter 312 in that tax year.
742	742	Sec. 313.017 [313.031]. RULES AND FORMS; FEES. (a) The
743	743	comptroller shall:
744	744	(1) adopt rules and forms necessary for the
745	745	implementation and administration of this chapter, including rules
746	746	for determining whether a property owner's property qualifies as a
747	747	qualified investment under Section 313.0045(a)(1) [313.021(1)];
748	748	and
749	749	(2) provide without charge one copy of the rules and
750	750	forms to any school district and to any person who states that the
751	751	person intends to apply for a limitation on appraised value under
752	752	this chapter [subchapter or a tax credit under Subchapter D].
753	753	(b) The governing body of a school district by official
754	754	action shall establish reasonable nonrefundable application fees
755	755	to be paid by property owners who apply to the district for a
756	756	limitation on the appraised value of the person's property under
757	757	this chapter [subchapter]. The amount of an application fee must be
758	758	reasonable and may not exceed the estimated cost to the district of
759	759	processing and acting on an application, including the cost of the
760	760	economic impact evaluation required by Sections 313.012 [313.025]
761	761	and 313.013 [313.026].
762	762	Sec. 313.018 [313.032]. REPORT ON COMPLIANCE WITH
763	763	AGREEMENTS. (a) Before the beginning of each regular session of
764	764	the legislature, the comptroller shall submit to the lieutenant
765	765	governor, the speaker of the house of representatives, and each
766	766	other member of the legislature a report on the agreements entered
767	767	into under this chapter that includes:
768	768	(1) an assessment of the following with regard to the
769	769	agreements entered into under this chapter, considered in the
770	770	aggregate:
771	771	(A) the total number of jobs created, direct and
772	772	otherwise, in this state;
773	773	(B) the total effect on personal income, direct
774	774	and otherwise, in this state;
775	775	(C) the effect, direct and otherwise, on the
776	776	total amount of investment in this state;
777	777	(D) the effect, direct and otherwise, on the
778	778	total taxable value of property on the tax rolls in this state,
779	779	including property for which the limitation period has expired;
780	780	(E) the total value of property not on the tax
781	781	rolls in this state as a result of agreements entered into under
782	782	this chapter; and
783	783	(F) the total fiscal effect, direct and
784	784	otherwise, on the state and local governments; and
785	785	(2) an assessment of [assessing] the progress of each
786	786	agreement made under this chapter that states[. The report must be
787	787	based on data certified to the comptroller by each recipient of a
788	788	limitation on appraised value under this subchapter and state] for
789	789	each agreement:
790	790	(A) [(1)] the number of new qualifying jobs each
791	791	recipient of a limitation on appraised value committed to create;
792	792	(B) [(2)] the number of new qualifying jobs each
793	793	recipient created;
794	794	(C) [(3)] the total amount of wages [median wage]
795	795	of the new jobs each recipient created;
796	796	(D) [(4)] the amount of the qualified investment
797	797	each recipient committed to spend or allocate for each project;
798	798	(E) [(5)] the amount of the [qualified]
799	799	investment each recipient spent or allocated for each project;
800	800	(F) [(6)] the market value of the qualified
801	801	property of each recipient as determined by the applicable chief
802	802	appraiser, including property for which the limitation period has
803	803	expired;
804	804	(G) [(7)] the limitation on appraised value for
805	805	the qualified property of each recipient;
806	806	(H) [(8)] the dollar amount of the taxes that
807	807	would have been imposed on the qualified property if the property
808	808	had not received a limitation on appraised value; and
809	809	(I) [(9)] the dollar amount of the taxes imposed
810	810	on the qualified property[;
811	811	[(10) the number of new jobs created by each recipient
812	812	in each sector of the North American Industry Classification
813	813	System; and
814	814	[(11) of the number of new jobs each recipient
815	815	created, the number of jobs created that provide health benefits
816	816	for employees].
817	817	(b) The report may not include information that is
818	818	confidential by law.
819	819	(b-1) In preparing the portion of the report described by
820	820	Subsection (a)(1), the comptroller may use standard economic
821	821	estimation techniques, including economic multipliers.
822	822	(c) The portion of the report described by Subsection (a)(2)
823	823	must be based on data certified to the comptroller by each recipient
824	824	of a limitation on appraised value under this chapter. The
825	825	comptroller may require a recipient to submit, on a form the
826	826	comptroller provides, information required to prepare [complete]
827	827	the portion of the report described by that subdivision.
828	828	SECTION 7. The heading to Subchapter B, Chapter 313, Tax
829	829	Code, is amended to read as follows:
830	830	SUBCHAPTER B. GENERAL LIMITATION ON APPRAISED VALUE OF CERTAIN
831	831	PROPERTY USED TO CREATE JOBS
832	832	SECTION 8. Section 313.022(b), Tax Code, is amended to read
833	833	as follows:
834	834	(b) For purposes of determining the required minimum amount
835	835	of a qualified investment under Section 313.0045(a)(2)(A)(iv)(a)
836	836	[313.021(2)(A)(iv)(a)], and the minimum amount of a limitation on
837	837	appraised value under this subchapter [Section 313.027(b)], school
838	838	districts to which this subchapter applies are categorized
839	839	according to the taxable value of property in the district for the
840	840	preceding tax year determined under Subchapter M, Chapter 403,
841	841	Government Code, as follows:
842	842	CATEGORY TAXABLE VALUE OF PROPERTY CATEGORY TAXABLE VALUE OF PROPERTY
843	843	CATEGORY TAXABLE VALUE OF PROPERTY
844	844	I $10 billion or more I $10 billion or more
845	845	I $10 billion or more
846	846	II $1 billion or more but less than $10 billion II $1 billion or more but less than $10 billion
847	847	II $1 billion or more but less than $10 billion
848	848	III $500 million or more but less than $1 billion III $500 million or more but less than $1 billion
849	849	III $500 million or more but less than $1 billion
850	850	IV $100 million or more but less than $500 million IV $100 million or more but less than $500 million
851	851	IV $100 million or more but less than $500 million
852	852	V less than $100 million V less than $100 million
853	853	V less than $100 million
854	854	SECTION 9. Section 313.023, Tax Code, is amended to read as
855	855	follows:
856	856	Sec. 313.023. MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. For
857	857	each category of school district established by Section 313.022,
858	858	the minimum amount of a qualified investment under Section
859	859	313.0045(a)(2)(A)(iv)(a) [313.021(2)(A)(iv)(a)] is as follows:
860	860	CATEGORY MINIMUM QUALIFIED INVESTMENT CATEGORY MINIMUM QUALIFIED INVESTMENT
861	861	CATEGORY MINIMUM QUALIFIED INVESTMENT
862	862	I $100 million I $100 million
863	863	I $100 million
864	864	II $80 million II $80 million
865	865	II $80 million
866	866	III $60 million III $60 million
867	867	III $60 million
868	868	IV $40 million IV $40 million
869	869	IV $40 million
870	870	V $20 million V $20 million
871	871	V $20 million
872	872	SECTION 10. Subchapter B, Chapter 313, Tax Code, is amended
873	873	by adding Section 313.0235 to read as follows:
874	874	Sec. 313.0235. LIMITATION ON APPRAISED VALUE. For a school
875	875	district to which this subchapter applies, the amount agreed to by
876	876	the governing body of the school district must be an amount in
877	877	accordance with the following, according to the category
878	878	established by Section 313.022 to which the school district
879	879	belongs:
880	880	CATEGORY MINIMUM AMOUNT OF LIMITATION CATEGORY MINIMUM AMOUNT OF LIMITATION
881	881	CATEGORY MINIMUM AMOUNT OF LIMITATION
882	882	I $100 million I $100 million
883	883	I $100 million
884	884	II $80 million II $80 million
885	885	II $80 million
886	886	III $60 million III $60 million
887	887	III $60 million
888	888	IV $40 million IV $40 million
889	889	IV $40 million
890	890	V $20 million V $20 million
891	891	V $20 million
892	892	SECTION 11. The heading to Subchapter C, Chapter 313, Tax
893	893	Code, is amended to read as follows:
894	894	SUBCHAPTER C. LIMITATION ON APPRAISED VALUE OF PROPERTY IN CERTAIN
895	895	[RURAL] SCHOOL DISTRICTS
896	896	SECTION 12. Sections 313.051(a) and (b), Tax Code, are
897	897	amended to read as follows:
898	898	(a) This subchapter applies only to a school district that
899	899	has territory in:
900	900	(1) an area located in:
901	901	(A) a county with unemployment above the state
902	902	average and per capita income below the state average;
903	903	(B) a federally designated urban enterprise
904	904	community or an urban enhanced enterprise community; or
905	905	(C) a defense economic readjustment zone
906	906	designated under Chapter 2310, Government Code [that qualified as a
907	907	strategic investment area under Subchapter O, Chapter 171,
908	908	immediately before that subchapter expired]; or
909	909	(2) a county:
910	910	(A) that has a population of less than 50,000;
911	911	and
912	912	(B) in which, during the decade preceding [from
913	913	1990 to 2000, according to] the most recent federal decennial
914	914	census, the population:
915	915	(i) remained the same;
916	916	(ii) decreased; or
917	917	(iii) increased, but at a rate of not more
918	918	than three percent per annum.
919	919	(b) [The governing body of a school district to which this
920	920	subchapter applies may enter into an agreement in the same manner as
921	921	a school district to which Subchapter B applies may do so under
922	922	Subchapter B, subject to Sections 313.052-313.054.] Except as
923	923	otherwise provided by this subchapter, the provisions of Subchapter
924	924	A-1 [B] apply to a school district to which this subchapter
925	925	applies. For purposes of this subchapter, a property owner is
926	926	required to create only at least 10 new jobs on the owner's
927	927	qualified property. At least 80 percent of all the new jobs created
928	928	must be qualifying jobs [as defined by Section 313.021(3)], except
929	929	that, for a school district described by Subsection (a)(2), each
930	930	qualifying job must pay at least 110 percent of the average weekly
931	931	wage for manufacturing jobs in the region designated for the
932	932	regional planning commission, council of governments, or similar
933	933	regional planning agency created under Chapter 391, Local
934	934	Government Code, in which the district is located.
935	935	SECTION 13. Sections 313.052 and 313.053, Tax Code, are
936	936	amended to read as follows:
937	937	Sec. 313.052. CATEGORIZATION OF SCHOOL DISTRICTS. For
938	938	purposes of determining the required minimum amount of a qualified
939	939	investment under Section 313.0045(a)(2)(A)(iv)(a)
940	940	[313.021(2)(A)(iv)(a)] and the minimum amount of a limitation on
941	941	appraised value under this subchapter, school districts to which
942	942	this subchapter applies are categorized according to the taxable
943	943	value of industrial property in the district for the preceding tax
944	944	year determined under Subchapter M, Chapter 403, Government Code,
945	945	as follows:
946	946	CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY
947	947	CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY
948	948	I $200 million or more I $200 million or more
949	949	I $200 million or more
950	950	II $90 million or more but less than $200 million II $90 million or more but less than $200 million
951	951	II $90 million or more but less than $200 million
952	952	III $1 million or more but less than $90 million III $1 million or more but less than $90 million
953	953	III $1 million or more but less than $90 million
954	954	IV $100,000 or more but less than $1 million IV $100,000 or more but less than $1 million
955	955	IV $100,000 or more but less than $1 million
956	956	V less than $100,000 V less than $100,000
957	957	V less than $100,000
958	958	Sec. 313.053. MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. For
959	959	each category of school district established by Section 313.052,
960	960	the minimum amount of a qualified investment under Section
961	961	313.0045(a)(2)(A)(iv)(a) [313.021(2)(A)(iv)(a)] is as follows:
962	962	CATEGORY MINIMUM QUALIFIED INVESTMENT CATEGORY MINIMUM QUALIFIED INVESTMENT
963	963	CATEGORY MINIMUM QUALIFIED INVESTMENT
964	964	I $30 million I $30 million
965	965	I $30 million
966	966	II $20 million II $20 million
967	967	II $20 million
968	968	III $10 million III $10 million
969	969	III $10 million
970	970	IV $5 million IV $5 million
971	971	IV $5 million
972	972	V $1 million V $1 million
973	973	V $1 million
974	974	SECTION 14. Section 313.054(a), Tax Code, is amended to
975	975	read as follows:
976	976	(a) For a school district to which this subchapter applies,
977	977	the amount agreed to by the governing body of the district [under
978	978	Section 313.027(a)(2)] must be an amount in accordance with the
979	979	following, according to the category established by Section 313.052
980	980	to which the school district belongs:
981	981	CATEGORY MINIMUM AMOUNT OF LIMITATION CATEGORY MINIMUM AMOUNT OF LIMITATION
982	982	CATEGORY MINIMUM AMOUNT OF LIMITATION
983	983	I $30 million I $30 million
984	984	I $30 million
985	985	II $20 million II $20 million
986	986	II $20 million
987	987	III $10 million III $10 million
988	988	III $10 million
989	989	IV $5 million IV $5 million
990	990	IV $5 million
991	991	V $1 million V $1 million
992	992	V $1 million
993	993	SECTION 15. The heading to Subchapter E, Chapter 313, Tax
994	994	Code, is amended to read as follows:
995	995	SUBCHAPTER E. EFFECT [AVAILABILITY] OF [TAX CREDIT AFTER] PROGRAM
996	996	EXPIRATION OR REPEAL [EXPIRES]
997	997	SECTION 16. Section 313.171, Tax Code, is amended to read as
998	998	follows:
999	999	Sec. 313.171. SAVING PROVISIONS. (a) A limitation on
1000	1000	appraised value approved under Subchapter A-1, B, or C before the
1001	1001	expiration of that subchapter continues in effect according to that
1002	1002	subchapter as that subchapter existed immediately before its
1003	1003	expiration, and that law is continued in effect for purposes of the
1004	1004	limitation on appraised value.
1005	1005	(b) The repeal [expiration] of Subchapter D does not affect
1006	1006	a property owner's entitlement to a tax credit granted under
1007	1007	Subchapter D if the property owner qualified for the tax credit
1008	1008	before the repeal [expiration] of Subchapter D.
1009	1009	SECTION 17. Section 42.2515(a), Education Code, is amended
1010	1010	to read as follows:
1011	1011	(a) For each school year, a school district, including a
1012	1012	school district that is otherwise ineligible for state aid under
1013	1013	this chapter, is entitled to state aid in an amount equal to the
1014	1014	amount of all tax credits credited against ad valorem taxes of the
1015	1015	district in that year under former Subchapter D, Chapter 313, Tax
1016	1016	Code.
1017	1017	SECTION 18. Section 42.302(e), Education Code, is amended
1018	1018	to read as follows:
1019	1019	(e) For purposes of this section, school district taxes for
1020	1020	which credit is granted under former Subchapter D, Chapter 313, Tax
1021	1021	Code, are considered taxes collected by the school district as if
1022	1022	the taxes were paid when the credit for the taxes was granted.
1023	1023	SECTION 19. The following provisions of the Tax Code are
1024	1024	repealed:
1025	1025	(1) Sections 313.005, 313.008, and 313.009; and
1026	1026	(2) Subchapter D, Chapter 313.
1027	1027	SECTION 20. Chapter 313, Tax Code, as amended by this Act,
1028	1028	applies only to an application filed under that chapter on or after
1029	1029	the effective date of this Act. An application filed under that
1030	1030	chapter before the effective date of this Act is governed by the law
1031	1031	in effect on the date the application was filed, and the former law
1032	1032	is continued in effect for that purpose.
1033	1033	SECTION 21. This Act takes effect January 1, 2014.
1034	1034	* * * * *
1035	1035
1036	1036	CATEGORY MINIMUM AMOUNT OF LIMITATION
1037	1037
1038	1038	I $100 million
1039	1039
1040	1040	II $80 million
1041	1041
1042	1042	III $60 million
1043	1043
1044	1044	IV $40 million
1045	1045
1046	1046	V $20 million]
1047	1047
1048	1048	CATEGORY TAXABLE VALUE OF PROPERTY
1049	1049
1050	1050	I $10 billion or more
1051	1051
1052	1052	II $1 billion or more but less than $10 billion
1053	1053
1054	1054	III $500 million or more but less than $1 billion
1055	1055
1056	1056	IV $100 million or more but less than $500 million
1057	1057
1058	1058	V less than $100 million
1059	1059
1060	1060	CATEGORY MINIMUM QUALIFIED INVESTMENT
1061	1061
1062	1062	I $100 million
1063	1063
1064	1064	II $80 million
1065	1065
1066	1066	III $60 million
1067	1067
1068	1068	IV $40 million
1069	1069
1070	1070	V $20 million
1071	1071
1072	1072	CATEGORY MINIMUM AMOUNT OF LIMITATION
1073	1073
1074	1074	I $100 million
1075	1075
1076	1076	II $80 million
1077	1077
1078	1078	III $60 million
1079	1079
1080	1080	IV $40 million
1081	1081
1082	1082	V $20 million
1083	1083
1084	1084	CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY
1085	1085
1086	1086	I $200 million or more
1087	1087
1088	1088	II $90 million or more but less than $200 million
1089	1089
1090	1090	III $1 million or more but less than $90 million
1091	1091
1092	1092	IV $100,000 or more but less than $1 million
1093	1093
1094	1094	V less than $100,000
1095	1095
1096	1096	CATEGORY MINIMUM QUALIFIED INVESTMENT
1097	1097
1098	1098	I $30 million
1099	1099
1100	1100	II $20 million
1101	1101
1102	1102	III $10 million
1103	1103
1104	1104	IV $5 million
1105	1105
1106	1106	V $1 million
1107	1107
1108	1108	CATEGORY MINIMUM AMOUNT OF LIMITATION
1109	1109
1110	1110	I $30 million
1111	1111
1112	1112	II $20 million
1113	1113
1114	1114	III $10 million
1115	1115
1116	1116	IV $5 million
1117	1117
1118	1118	V $1 million