Texas 2017 - 85th Regular

Texas Senate Bill SB1627 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: Estes S.B. No. 1627
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to consulting agreements, limitation on appraised value,
7	7	and supplemental payments under the Texas Economic Development Act.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subchapter A, Chapter 313, Tax Code, is amended
10	10	by adding Section 313.008 to read as follows:
11	11	Sec. 313.008. CERTAIN CONSULTING AGREEMENTS PROHIBITED.
12	12	(a) In this section, "compensation" has the meaning assigned by
13	13	Section 305.002, Government Code.
14	14	(b) A person may not for compensation act as a consultant on
15	15	behalf of a school district in relation to an application or
16	16	agreement for a limitation on appraised value authorized by this
17	17	chapter if the person is:
18	18	(1) an employee of the school district, including the
19	19	superintendent of the district;
20	20	(2) a member of the board of trustees of the school
21	21	district; or
22	22	(3) related to a person described by Subdivision (1)
23	23	or (2) in the first degree by consanguinity or affinity, as
24	24	determined under Chapter 573, Government Code.
25	25	SECTION 2. Section 313.022(b), Tax Code, is amended to read
26	26	as follows:
27	27	(b) For purposes of determining the required minimum amount
28	28	of a qualified investment under Section 313.021(2)(A)(iv)(a), [and
29	29	the minimum amount of a limitation on appraised value under Section
30	30	313.027(b),] school districts to which this subchapter applies are
31	31	categorized according to the taxable value of property in the
32	32	district for the preceding tax year determined under Subchapter M,
33	33	Chapter 403, Government Code, as follows:
34	34	CATEGORY TAXABLE VALUE OF PROPERTY CATEGORY TAXABLE VALUE OF PROPERTY
35	35	CATEGORY TAXABLE VALUE OF PROPERTY
36	36	I $10 billion or more I $10 billion or more
37	37	I $10 billion or more
38	38	II $1 billion or more but less than $10 billion II $1 billion or more but less than $10 billion
39	39	II $1 billion or more but less than $10 billion
40	40	III $500 million or more but less than $1 billion III $500 million or more but less than $1 billion
41	41	III $500 million or more but less than $1 billion
42	42	IV $100 million or more but less than $500 million IV $100 million or more but less than $500 million
43	43	IV $100 million or more but less than $500 million
44	44	V less than $100 million V less than $100 million
45	45	V less than $100 million
46	46	SECTION 3. Section 313.025(a), Tax Code, is amended to read
47	47	as follows:
48	48	(a) The owner or lessee of, or the holder of another
49	49	possessory interest in, any qualified property described by Section
50	50	313.021(2)(A), (B), or (C) may apply to the governing body of the
51	51	school district in which the property is located for a limitation on
52	52	the appraised value for school district maintenance and operations
53	53	ad valorem tax purposes of the person's qualified property. An
54	54	application must be made on the form prescribed by the comptroller
55	55	and include the information required by the comptroller, and [it]
56	56	must be accompanied by:
57	57	(1) [the application fee established by the governing
58	58	body of the school district;
59	59	[(2)] information sufficient to show that the real and
60	60	personal property identified in the application as qualified
61	61	property meets the applicable criteria established by Section
62	62	313.021(2); and
63	63	(2) [(3)] any information required by the comptroller
64	64	for the purposes of Section 313.026.
65	65	SECTION 4. Sections 313.027(b), (c), and (f), Tax Code, are
66	66	amended to read as follows:
67	67	(b) The amount agreed to by the governing body of a school
68	68	district under Subsection (a)(2) must be an amount that is:
69	69	(1) determined for each tax year in which the
70	70	limitation under Subsection (a) applies; and
71	71	(2) equal to at least 33.3 percent of the market value
72	72	of the person's qualified property for that tax year. [in
73	73	accordance with the following, according to the category
74	74	established by Section 313.022 to which the school district
75	75	belongs:
76	76	[CATEGORY MINIMUM AMOUNT OF LIMITATION [CATEGORY MINIMUM AMOUNT OF LIMITATION
77	77	[CATEGORY MINIMUM AMOUNT OF LIMITATION
78	78	[I $100 million [I $100 million
79	79	[I $100 million
80	80	[II $80 million [II $80 million
81	81	[II $80 million
82	82	[III $60 million [III $60 million
83	83	[III $60 million
84	84	[IV $40 million [IV $40 million
85	85	[IV $40 million
86	86	[V $20 million] [V $20 million]
87	87	[V $20 million]
88	88	(c) The limitation amounts determined under [listed in]
89	89	Subsection (b) are minimum amounts. A school district, regardless
90	90	of category, may agree to a greater amount than those amounts.
91	91	(f) In addition, the agreement:
92	92	(1) must incorporate each relevant provision of this
93	93	subchapter [and, to the extent necessary, include provisions for
94	94	the protection of future school district revenues through the
95	95	adjustment of the minimum valuations, the payment of revenue
96	96	offsets, and other mechanisms agreed to by the property owner and
97	97	the school district];
98	98	(2) may provide that the property owner will protect
99	99	the school district in the event the district, in accommodating a
100	100	temporary increase in student enrollment attributable to the
101	101	project, incurs the following extraordinary education-related
102	102	expenses:
103	103	(A) expenses related to [the project that are not
104	104	directly funded in state aid formulas, including expenses for] the
105	105	purchase of portable classrooms; or [and]
106	106	(B) expenses related to the hiring of additional
107	107	personnel [to accommodate a temporary increase in student
108	108	enrollment attributable to the project];
109	109	(3) must require the property owner to maintain a
110	110	viable presence in the school district for at least five years after
111	111	the date the limitation on appraised value of the owner's property
112	112	expires;
113	113	(4) must provide for the termination of the agreement,
114	114	the recapture of ad valorem tax revenue lost as a result of the
115	115	agreement if the owner of the property fails to comply with the
116	116	terms of the agreement, and payment of a penalty or interest, or
117	117	both, on that recaptured ad valorem tax revenue;
118	118	(5) may specify any conditions the occurrence of which
119	119	will require the district and the property owner to renegotiate all
120	120	or any part of the agreement;
121	121	(6) must specify the ad valorem tax years covered by
122	122	the agreement;
123	123	(7) must require the property owner to provide a
124	124	supplemental payment to the district or another entity on behalf of
125	125	the district in an amount equal to $25 per student per year in
126	126	average daily attendance, as defined by Section 42.005, Education
127	127	Code, for each ad valorem tax year covered by the agreement, except
128	128	that in a tax year, no district may collect in supplemental payments
129	129	from all property owners in the district an amount equal to more
130	130	than two percent of the district's budget; and
131	131	(8) [(7)] must be in a form approved by the
132	132	comptroller.
133	133	SECTION 5. The heading to Section 313.031, Tax Code, is
134	134	amended to read as follows:
135	135	Sec. 313.031. RULES AND FORMS[; FEES].
136	136	SECTION 6. Section 313.052, Tax Code, is amended to read as
137	137	follows:
138	138	Sec. 313.052. CATEGORIZATION OF SCHOOL DISTRICTS. For
139	139	purposes of determining the required minimum amount of a qualified
140	140	investment under Section 313.021(2)(A)(iv)(a) [and the minimum
141	141	amount of a limitation on appraised value under this subchapter],
142	142	school districts to which this subchapter applies are categorized
143	143	according to the taxable value of industrial property in the
144	144	district for the preceding tax year determined under Subchapter M,
145	145	Chapter 403, Government Code, as follows:
146	146	CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY
147	147	CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY
148	148	I $200 million or more I $200 million or more
149	149	I $200 million or more
150	150	II $90 million or more but less than $200 million II $90 million or more but less than $200 million
151	151	II $90 million or more but less than $200 million
152	152	III $1 million or more but less than $90 million III $1 million or more but less than $90 million
153	153	III $1 million or more but less than $90 million
154	154	IV $100,000 or more but less than $1 million IV $100,000 or more but less than $1 million
155	155	IV $100,000 or more but less than $1 million
156	156	V less than $100,000 V less than $100,000
157	157	V less than $100,000
158	158	SECTION 7. Section 313.054, Tax Code, is amended to read as
159	159	follows:
160	160	Sec. 313.054. LIMITATION ON APPRAISED VALUE. (a) For a
161	161	school district to which this subchapter applies, the amount agreed
162	162	to by the governing body of the district under Section
163	163	313.027(a)(2) must be an amount that is:
164	164	(1) determined for each tax year in which the
165	165	limitation under this subsection applies; and
166	166	(2) equal to at least 33.3 percent of the market value
167	167	of the person's qualified property for that tax year. [in
168	168	accordance with the following, according to the category
169	169	established by Section 313.052 to which the school district
170	170	belongs:
171	171	[CATEGORY MINIMUM AMOUNT OF LIMITATION [CATEGORY MINIMUM AMOUNT OF LIMITATION
172	172	[CATEGORY MINIMUM AMOUNT OF LIMITATION
173	173	[I $30 million [I $30 million
174	174	[I $30 million
175	175	[II $25 million [II $25 million
176	176	[II $25 million
177	177	[III $20 million [III $20 million
178	178	[III $20 million
179	179	[IV $15 million [IV $15 million
180	180	[IV $15 million
181	181	[V $10 million] [V $10 million]
182	182	[V $10 million]
183	183	(b) The limitation amounts determined under [listed in]
184	184	Subsection (a) are minimum amounts. A school district, regardless
185	185	of category, may agree to a greater amount than those amounts.
186	186	SECTION 8. Sections 313.027(i) and 313.031(b), Tax Code,
187	187	are repealed.
188	188	SECTION 9. The change in law made by this Act applies only
189	189	to an agreement entered into pursuant to an application filed under
190	190	Chapter 313, Tax Code, on or after the effective date of this Act.
191	191	An agreement entered into pursuant to an application filed under
192	192	that chapter before the effective date of this Act is governed by
193	193	the law in effect on the date the application was filed, and the
194	194	former law is continued in effect for that purpose.
195	195	SECTION 10. This Act takes effect September 1, 2017.
196	196
197	197	CATEGORY TAXABLE VALUE OF PROPERTY
198	198
199	199	I $10 billion or more
200	200
201	201	II $1 billion or more but less than $10 billion
202	202
203	203	III $500 million or more but less than $1 billion
204	204
205	205	IV $100 million or more but less than $500 million
206	206
207	207	V less than $100 million
208	208
209	209	[CATEGORY MINIMUM AMOUNT OF LIMITATION
210	210
211	211	[I $100 million
212	212
213	213	[II $80 million
214	214
215	215	[III $60 million
216	216
217	217	[IV $40 million
218	218
219	219	[V $20 million]
220	220
221	221	CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY
222	222
223	223	I $200 million or more
224	224
225	225	II $90 million or more but less than $200 million
226	226
227	227	III $1 million or more but less than $90 million
228	228
229	229	IV $100,000 or more but less than $1 million
230	230
231	231	V less than $100,000
232	232
233	233	[CATEGORY MINIMUM AMOUNT OF LIMITATION
234	234
235	235	[I $30 million
236	236
237	237	[II $25 million
238	238
239	239	[III $20 million
240	240
241	241	[IV $15 million
242	242
243	243	[V $10 million]