Texas 2021 - 87th Regular

Texas House Bill HB1556 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	87R24087 SMH-D
2		-	By: Murphy, Burrows, Moody, Shine H.B. No. 1556
3		-	Substitute the following for H.B. No. 1556:
4		-	By: Shine C.S.H.B. No. 1556
	1	+	87R7828 SMH/KJE-D
	2	+	By: Murphy H.B. No. 1556
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9		-	relating to the Texas Economic Development Act; requiring the
10		-	imposition of an authorized fee and changing the amounts of certain
11		-	fees.
	7	+	relating to the Texas Economic Development Act.
12	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13		-	SECTION 1. Section ~~313~~.~~007~~, Tax Code, is amended to read as
	9	+	SECTION 1. Section 23.03, Tax Code, is amended to read as
14	10		follows:
15		-	Sec. 313.007. EXPIRATION. Subchapters B and C expire
16		-	December 31, 2032 [2022].
17		-	SECTION 2. Sections 313.021(1) and (2), Tax Code, are
18		-	amended to read as follows:
	11	+	Sec. 23.03. COMPILATION OF LARGE PROPERTIES AND PROPERTIES
	12	+	SUBJECT TO EXEMPTION FROM AD VALOREM TAXATION [LIMITATION ON
	13	+	APPRAISED VALUE]. Each year the chief appraiser shall compile and
	14	+	send to the Texas [Department of] Economic Development and Tourism
	15	+	Office a list of properties in the appraisal district that in that
	16	+	tax year:
	17	+	(1) have a market value of $100 million or more; or
	18	+	(2) are subject to an exemption from ad valorem
	19	+	taxation [a limitation on appraised value] under Chapter 313.
	20	+	SECTION 2. Section 151.359(k), Tax Code, is amended to read
	21	+	as follows:
	22	+	(k) A data center is not eligible to receive an exemption
	23	+	under this section if the data center is subject to an agreement
	24	+	limiting the appraised value of the data center's property under
	25	+	Subchapter B [or C], Chapter 313, as that subchapter existed before
	26	+	September 1, 2021, or former Subchapter C, Chapter 313.
	27	+	SECTION 3. Section 151.3595(j), Tax Code, is amended to
	28	+	read as follows:
	29	+	(j) A data center is not eligible to receive an exemption
	30	+	under this section if the data center is subject to an agreement
	31	+	limiting the appraised value of the data center's property under
	32	+	Subchapter B [or C], Chapter 313, as that subchapter existed before
	33	+	September 1, 2021, or former Subchapter C, Chapter 313.
	34	+	SECTION 4. Section 171.602(f), Tax Code, is amended to read
	35	+	as follows:
	36	+	(f) The comptroller may not issue a credit under this
	37	+	section before the later of:
	38	+	(1) September 1, 2018; or
	39	+	(2) the expiration of an agreement under Chapter 313
	40	+	as that chapter existed before September 1, 2021, regarding the
	41	+	clean energy project for which the credit is issued.
	42	+	SECTION 5. Section 312.0025(a), Tax Code, is amended to
	43	+	read as follows:
	44	+	(a) Notwithstanding any other provision of this chapter to
	45	+	the contrary, the governing body of a school district, in the manner
	46	+	required for official action and for purposes of Subchapter B [or
	47	+	C], Chapter 313, may designate an area entirely within the
	48	+	territory of the school district as a reinvestment zone if the
	49	+	governing body finds that, as a result of the designation and the
	50	+	granting of an exemption from ad valorem taxation [a limitation on
	51	+	appraised value] under Subchapter B [or C], Chapter 313, for
	52	+	property located in the reinvestment zone, the designation is
	53	+	reasonably likely to:
	54	+	(1) contribute to the expansion of primary employment
	55	+	in the reinvestment zone; or
	56	+	(2) attract major investment in the reinvestment zone
	57	+	that would:
	58	+	(A) be a benefit to property in the reinvestment
	59	+	zone and to the school district; and
	60	+	(B) contribute to the economic development of the
	61	+	region of this state in which the school district is located.
	62	+	SECTION 6. Section 312.403(a), Tax Code, is amended to read
	63	+	as follows:
	64	+	(a) In this section, "nuclear electric power generation"
	65	+	means activities described in category 221113 of the 2002 North
	66	+	American Industry Classification System [has the meaning assigned
	67	+	by Section 313.024(e)].
	68	+	SECTION 7. Section 313.004, Tax Code, is amended to read as
	69	+	follows:
	70	+	Sec. 313.004. LEGISLATIVE INTENT. It is the intent of the
	71	+	legislature in enacting this chapter that:
	72	+	(1) economic development decisions involving school
	73	+	district taxes should occur at the local level with oversight by the
	74	+	state and should be consistent with identifiable statewide economic
	75	+	development goals;
	76	+	(2) this chapter should not be construed or
	77	+	interpreted to allow:
	78	+	(A) property owners to pool investments to create
	79	+	sufficiently large investments to qualify for an ad valorem tax
	80	+	benefit provided by this chapter;
	81	+	(B) an applicant for an ad valorem tax benefit
	82	+	provided by this chapter to assert that jobs will be eliminated if
	83	+	certain investments are not made if the assertion is not true; or
	84	+	(C) an entity not subject to the tax imposed by
	85	+	Chapter 171 to receive an ad valorem tax benefit provided by this
	86	+	chapter;
	87	+	(3) in implementing this chapter, school districts
	88	+	should:
	89	+	(A) strictly interpret the criteria and
	90	+	selection guidelines provided by this chapter; and
	91	+	(B) approve only those applications for an ad
	92	+	valorem tax benefit provided by this chapter that:
	93	+	(i) enhance the local community;
	94	+	(ii) improve the local public education
	95	+	system;
	96	+	(iii) create high-paying jobs; and
	97	+	(iv) advance the economic development goals
	98	+	of this state; and
	99	+	(4) in implementing this chapter, the comptroller
	100	+	should:
	101	+	(A) strictly interpret the criteria and
	102	+	selection guidelines provided by this chapter; and
	103	+	(B) issue certificates for exemptions from ad
	104	+	valorem taxation [limitations on appraised value] only for those
	105	+	applications for an ad valorem tax benefit provided by this chapter
	106	+	that:
	107	+	(i) create high-paying jobs;
	108	+	(ii) provide a net benefit to the state over
	109	+	the long term; and
	110	+	(iii) advance the economic development
	111	+	goals of this state.
	112	+	SECTION 8. Section 313.007, Tax Code, is amended to read as
	113	+	follows:
	114	+	Sec. 313.007. EXPIRATION. Subchapter [Subchapters] B
	115	+	expires [and C expire] December 31, 2032 [2022].
	116	+	SECTION 9. The heading to Subchapter B, Chapter 313, Tax
	117	+	Code, is amended to read as follows:
	118	+	SUBCHAPTER B. EXEMPTION FROM AD VALOREM TAXATION [LIMITATION ON
	119	+	APPRAISED VALUE] OF CERTAIN PROPERTY [USED TO CREATE JOBS]
	120	+	SECTION 10. Section 313.021, Tax Code, is amended by
	121	+	amending Subdivisions (1), (2), and (4) and adding Subdivision (6)
	122	+	to read as follows:
19	123		(1) "Qualified investment" means:
20	124		(A) tangible personal property that is first
21	125		placed in service in this state during the applicable qualifying
22	126		time period that begins on or after January 1, 2002, without regard
23	127		to whether the property is affixed to or incorporated into real
24	128		property, and that is described as Section 1245 property by Section
25	129		1245(a), Internal Revenue Code of 1986;
26	130		(B) tangible personal property that is first
27	131		placed in service in this state during the applicable qualifying
28	132		time period that begins on or after January 1, 2002, without regard
29	133		to whether the property is affixed to or incorporated into real
30	134		property, and that is used in connection with the manufacturing,
31	135		processing, or fabrication in a cleanroom environment of a
32	136		semiconductor product, without regard to whether the property is
33	137		actually located in the cleanroom environment, including:
34	138		(i) integrated systems, fixtures, and
35	139		piping;
36	140		(ii) all property necessary or adapted to
37	141		reduce contamination or to control airflow, temperature, humidity,
38	142		chemical purity, or other environmental conditions or
39	143		manufacturing tolerances; and
40	144		(iii) production equipment and machinery,
41	145		moveable cleanroom partitions, and cleanroom lighting;
42		-	(C) tangible personal property that is first
	146	+	(C) [tangible personal property that is first
43	147		placed in service in this state during the applicable qualifying
44	148		time period that begins on or after January 1, 2002, without regard
45	149		to whether the property is affixed to or incorporated into real
46	150		property, and that is used in connection with the operation of a
47	151		nuclear electric power generation facility, including:
48		-	(i) property, including pressure vessels,
	152	+	[(i) property, including pressure vessels,
49	153		pumps, turbines, generators, and condensers, used to produce
50	154		nuclear electric power; and
51		-	(ii) property and systems necessary to
	155	+	[(ii) property and systems necessary to
52	156		control radioactive contamination;
53		-	(D) tangible personal property that is first
	157	+	[(D) tangible personal property that is first
54	158		placed in service in this state during the applicable qualifying
55	159		time period that begins on or after January 1, 2002, without regard
56	160		to whether the property is affixed to or incorporated into real
57	161		property, and that is used in connection with operating an
58	162		integrated gasification combined cycle electric generation
59	163		facility, including:
60		-	(i) property used to produce electric ~~power~~
61		-	by means of a combined combustion turbine and steam turbine
	164	+	[(i) property used to produce electric
	165	+	power by means of a combined combustion turbine and steam turbine
62	166		application using synthetic gas or another product produced by the
63	167		gasification of coal or another carbon-based feedstock; or
64		-	(ii) property used in handling materials to
65		-	be used as feedstock for gasification or used in the gasification
	168	+	[(ii) property used in handling materials
	169	+	to be used as feedstock for gasification or used in the gasification
66	170		process to produce synthetic gas or another carbon-based feedstock
67	171		for use in the production of electric power in the manner described
68	172		by Subparagraph (i);
69		-	(E) tangible personal property that is first
	173	+	[(E) tangible personal property that is first
70	174		placed in service in this state during the applicable qualifying
71	175		time period that begins on or after January 1, 2010, without regard
72	176		to whether the property is affixed to or incorporated into real
73	177		property, and that is used in connection with operating an advanced
74	178		clean energy project, as defined by Section 382.003, Health and
75		-	Safety Code; [or]
76		-	(F) a building or a permanent, nonremovable
	179	+	Safety Code; or
	180	+	[(F)] a building or a permanent, nonremovable
77	181		component of a building that is built or constructed during the
78	182		applicable qualifying time period that begins on or after January
79	183		1, 2002, and that houses tangible personal property described by
80		-	Paragraph (A), (B)~~, (C), (D), or (E)~~; or
81		-	(G) a building or a permanent, nonremovable
	184	+	Paragraph (A) or[,] (B); or
	185	+	(D) a building or a permanent, nonremovable
82	186		component of a building that, as part of a discrete project that
83	187		increases the value of the building or component, is renovated,
84		-	expanded~~, modernized~~, or otherwise improved during the applicable
85		-	~~qualifying~~ time period that begins on or after January 1, ~~2023~~, and
86		-	~~that houses~~ tangible personal property described by Paragraph (A),
87		-	~~(B), (C),~~ (D), or (E).
	188	+	expanded, or otherwise improved during the applicable qualifying
	189	+	time period that begins on or after January 1, 2022, and that houses
	190	+	tangible personal property described by Paragraph (A) or (B)[, (C),
	191	+	(D), or (E)].
88	192		(2) "Qualified property" means:
89	193		(A) land:
90	194		(i) that is located in an area designated as
91	195		a reinvestment zone under Chapter 311 or 312 or as an enterprise
92	196		zone under Chapter 2303, Government Code;
93	197		(ii) on which a person proposes to:
94	198		(a) construct a new building or erect
95	199		or affix a new improvement that does not exist before the date the
96		-	person submits a complete application for a limitation on appraised
97		-	value under this subchapter; or
98		-	(b) renovate, expand, modernize, or
99		-	otherwise improve an existing building or improvement;
	200	+	person submits a complete application for an exemption from ad
	201	+	valorem taxation [a limitation on appraised value] under this
	202	+	subchapter; or
	203	+	(b) renovate, expand, or otherwise
	204	+	improve an existing building or improvement;
100	205		(iii) that is not subject to a tax abatement
101	206		agreement entered into by a school district under Chapter 312; and
102	207		(iv) on which, in connection with the [new]
103	208		building or [new] improvement described by Subparagraph (ii), the
104	209		owner or lessee of, or the holder of another possessory interest in,
105		-	the land proposes to:
106		-	(a) make a qualified investment in an
107		-	amount equal to at least the minimum amount required by Section
108		-	313.023; and
109		-	(b) create at least 25 new qualifying
110		-	jobs;
	210	+	the land proposes to[:
	211	+	[(a)] make a qualified investment in
	212	+	an amount equal to at least the minimum amount required by Section
	213	+	313.023[; and
	214	+	[(b) create at least 25 new qualifying
	215	+	jobs];
111	216		(B) the [new] building or other [new] improvement
112	217		described by Paragraph (A)(ii); and
113	218		(C) tangible personal property:
114	219		(i) that is not subject to a tax abatement
115	220		agreement entered into by a school district under Chapter 312;
116	221		(ii) for which a sales and use tax refund is
117	222		not claimed under Section 151.3186; and
118	223		(iii) except for new equipment described in
119	224		Section 151.318(q) or (q-1), that is first placed in service in the
120		-	new building, in the newly renovated, expanded, modernized, or
121		-	improved building, or in or on the new or newly renovated, expanded,
122		-	modernized, or improved improvement described by Paragraph
123		-	(A)(ii), or on the land on which that [new] building or [new]
124		-	improvement is located, if the personal property is ancillary and
125		-	necessary to the business conducted in that [new] building or in or
126		-	on that [new] improvement.
127		-	SECTION 3. Section 313.024(c), Tax Code, is amended to read
128		-	as follows:
	225	+	new building, in the newly renovated, expanded, or improved
	226	+	building, or in or on the new or newly renovated, expanded, or
	227	+	improved improvement described by Paragraph (A)(ii), or on the land
	228	+	on which that [new] building or [new] improvement is located, if the
	229	+	personal property is ancillary and necessary to the business
	230	+	conducted in that [new] building or in or on that [new] improvement.
	231	+	(4) "Qualifying time period" means[:
	232	+	[(A)] the period that begins on the date that a
	233	+	person's application for an exemption from ad valorem taxation [a
	234	+	limitation on appraised value] under this subchapter is approved by
	235	+	the governing body of the school district and ends on December 31 of
	236	+	the second tax year that begins after that date, except as provided
	237	+	by [Paragraph (B) or (C) of this subdivision or] Section
	238	+	313.027(h)[;
	239	+	[(B) in connection with a nuclear electric power
	240	+	generation facility, the first seven tax years that begin on or
	241	+	after the third anniversary of the date the school district
	242	+	approves the property owner's application for a limitation on
	243	+	appraised value under this subchapter, unless a shorter time period
	244	+	is agreed to by the governing body of the school district and the
	245	+	property owner; or
	246	+	[(C) in connection with an advanced clean energy
	247	+	project, as defined by Section 382.003, Health and Safety Code, the
	248	+	first five tax years that begin on or after the third anniversary of
	249	+	the date the school district approves the property owner's
	250	+	application for a limitation on appraised value under this
	251	+	subchapter, unless a shorter time period is agreed to by the
	252	+	governing body of the school district and the property owner].
	253	+	(6) "Wealth per student" has the meaning assigned by
	254	+	Section 48.273, Education Code.
	255	+	SECTION 11. Section 313.022, Tax Code, is amended to read as
	256	+	follows:
	257	+	Sec. 313.022. [APPLICABILITY;] CATEGORIZATION OF SCHOOL
	258	+	DISTRICTS. [(a) This subchapter applies to each school district in
	259	+	this state other than a school district to which Subchapter C
	260	+	applies.
	261	+	[(b)] For purposes of determining the required minimum
	262	+	amount of a qualified investment under Section 313.021(2)(A)(iv)
	263	+	[313.021(2)(A)(iv)(a), and the minimum amount of a limitation on
	264	+	appraised value under Section 313.027(b)], school districts [to
	265	+	which this subchapter applies] are categorized as follows:
	266	+	(1) Category I consists of school districts having a
	267	+	wealth per student of not more than the statewide average wealth per
	268	+	student; and
	269	+	(2) Category II consists of school districts having a
	270	+	wealth per student of more than the statewide average wealth per
	271	+	student. [according to the taxable value of property in the
	272	+	district for the preceding tax year determined under Subchapter M,
	273	+	Chapter 403, Government Code, as follows:
	274	+	[CATEGORY TAXABLE VALUE OF PROPERTY [CATEGORY TAXABLE VALUE OF PROPERTY
	275	+	[CATEGORY TAXABLE VALUE OF PROPERTY
	276	+	[I $10 billion or more [I $10 billion or more
	277	+	[I $10 billion or more
	278	+	[II $1 billion or more but less than $10 billion [II $1 billion or more but less than $10 billion
	279	+	[II $1 billion or more but less than $10 billion
	280	+	[III $500 million or more but less than $1 billion [III $500 million or more but less than $1 billion
	281	+	[III $500 million or more but less than $1 billion
	282	+	[IV $100 million or more but less than $500 million [IV $100 million or more but less than $500 million
	283	+	[IV $100 million or more but less than $500 million
	284	+	[V less than $100 million] [V less than $100 million]
	285	+	[V less than $100 million]
	286	+	SECTION 12. Section 313.023, Tax Code, is amended to read as
	287	+	follows:
	288	+	Sec. 313.023. MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. For
	289	+	each category of school district established by Section 313.022,
	290	+	the minimum amount of a qualified investment under Section
	291	+	313.021(2)(A)(iv) [313.021(2)(A)(iv)(a)] is as follows:
	292	+	CATEGORY MINIMUM QUALIFIED INVESTMENT CATEGORY MINIMUM QUALIFIED INVESTMENT
	293	+	CATEGORY MINIMUM QUALIFIED INVESTMENT
	294	+	I $10 [$100] million I $10 [$100] million
	295	+	I $10 [$100] million
	296	+	II $50 [$80] million II $50 [$80] million
	297	+	II $50 [$80] million
	298	+	[III $60 million [III $60 million
	299	+	[III $60 million
	300	+	[IV $40 million [IV $40 million
	301	+	[IV $40 million
	302	+	[V $20 million] [V $20 million]
	303	+	[V $20 million]
	304	+	SECTION 13. Sections 313.024(a), (b), (b-1), and (c), Tax
	305	+	Code, are amended to read as follows:
	306	+	(a) This subchapter applies [and Subchapter C apply] only to
	307	+	property owned by an entity subject to the tax imposed by Chapter
	308	+	171.
	309	+	(b) To be eligible for an exemption from ad valorem taxation
	310	+	[a limitation on appraised value] under this subchapter, the entity
	311	+	must use the property for:
	312	+	(1) manufacturing;
	313	+	(2) research and development;
	314	+	(3) [a clean coal project, as defined by Section
	315	+	5.001, Water Code;
	316	+	[(4) an advanced clean energy project, as defined by
	317	+	Section 382.003, Health and Safety Code;
	318	+	[(5)] renewable energy electric generation;
	319	+	(4) [(6) electric power generation using integrated
	320	+	gasification combined cycle technology;
	321	+	[(7) nuclear electric power generation;
	322	+	[(8) a computer center primarily used in connection
	323	+	with one or more activities described by Subdivisions (1) through
	324	+	(7) conducted by the entity; or
	325	+	[(9)] a Texas priority project; or
	326	+	(5) a battery energy storage facility within the scope
	327	+	of Subchapter E, Chapter 35, Utilities Code.
	328	+	(b-1) Notwithstanding any other provision of this
	329	+	subchapter, an owner of a parcel of land that is located wholly or
	330	+	partly in a reinvestment zone, a new building constructed on the
	331	+	parcel of land, a new improvement erected or affixed on the parcel
	332	+	of land, or tangible personal property placed in service in the
	333	+	building or improvement or on the parcel of land may not receive an
	334	+	exemption from ad valorem taxation [a limitation on appraised
	335	+	value] under this subchapter for the parcel of land, building,
	336	+	improvement, or tangible personal property under an agreement under
	337	+	this subchapter that is entered into on or after September 1, 2021
	338	+	[2017], if, on or after that date, a wind-powered energy device is
	339	+	installed or constructed on the same parcel of land at a location
	340	+	that is within 25 nautical miles of the boundaries of a military
	341	+	aviation facility located in this state. The prohibition provided
	342	+	by this subsection applies regardless of whether the wind-powered
	343	+	energy device is installed or constructed at a location that is in
	344	+	the reinvestment zone.
129	345		(c) For purposes of determining an applicant's eligibility
130		-	for a limitation under this subchapter:
	346	+	for an exemption from ad valorem taxation [a limitation] under this
	347	+	subchapter:
131	348		(1) the land on which a building or component of a
132		-	building described by Section 313.021(1)(F) or (G) [313.021(1)(E)]
	349	+	building described by Section 313.021(1)(C) or (D) [313.021(1)(E)]
133	350		is located is not considered a qualified investment;
134	351		(2) property that is leased under a capitalized lease
135	352		may be considered a qualified investment;
136	353		(3) property that is leased under an operating lease
137		-	may not be considered a qualified investment; [and]
	354	+	may not be considered a qualified investment; and
138	355		(4) property that is owned by a person other than the
139	356		applicant and that is pooled or proposed to be pooled with property
140	357		owned by the applicant may not be included in determining the amount
141		-	of the applicant's qualifying investment; and
142		-	(5) a building or component of a building that is
143		-	renovated, expanded, modernized, or otherwise improved as
144		-	described by Section 313.021(1)(G) is not considered a qualified
145		-	investment unless:
146		-	(A) the building or component would qualify as a
147		-	qualified investment if the building or component were to be built
148		-	or constructed during the applicable qualifying time period; and
149		-	(B) the agreement between the property owner and
150		-	the school district describes with specificity as required by
151		-	Section 313.027(e) the manner in which the building or component
152		-	will be renovated, expanded, modernized, or otherwise improved.
153		-	SECTION 4. Section 313.025, Tax Code, is amended by
154		-	amending Subsections (a), (a-1), and (b) and adding Subsection
155		-	(a-2) to read as follows:
	358	+	of the applicant's qualifying investment.
	359	+	SECTION 14. Section 313.025, Tax Code, is amended by
	360	+	amending Subsections (a), (a-1), (b), (d), (d-1), (f), (h), and (i)
	361	+	and adding Subsection (a-2) to read as follows:
156	362		(a) The owner or lessee of, or the holder of another
157	363		possessory interest in, any qualified property described by Section
158		-	313.021(2)(A), (B), or (C) may apply to the governing body of the
159		-	school district in which the property is located for a limitation on
160		-	the appraised value for school district maintenance and operations
161		-	ad valorem tax purposes of the person's qualified property. An
162		-	application must be made on the form prescribed by the comptroller
163		-	and [include the information required by the comptroller, and it
164		-	must] be accompanied by a [:
165		-	[(1) the application] fee in the amount of $60,000
166		-	payable to [established by the governing body of] the school
167		-	district[;
	364	+	313.021(2)(A), (B), or (C) may apply to the comptroller [governing
	365	+	body of the school district in which the property is located] for an
	366	+	exemption from ad valorem taxation of the person's qualified
	367	+	property by the school district in which the property is located as
	368	+	provided by Section 313.027 [a limitation on the appraised value
	369	+	for school district maintenance and operations ad valorem tax
	370	+	purposes of the person's qualified property]. An application must
	371	+	be made on the form prescribed by the comptroller, [and] include the
	372	+	information required by Subsection (a-1) [the comptroller], and [it
	373	+	must] be accompanied by an[:
	374	+	[(1) the] application fee of $50,000 [established by
	375	+	the governing body of the school district;
168	376		[(2) information sufficient to show that the real and
169	377		personal property identified in the application as qualified
170	378		property meets the applicable criteria established by Section
171	379		313.021(2); and
172	380		[(3) any information required by the comptroller for
173	381		the purposes of Section 313.026].
174	382		(a-1) The application form may require the applicant to
175	383		provide only the following information:
176	384		(1) the name and taxpayer identification number of the
177	385		applicant and each parent, subsidiary, or affiliate of the
178	386		applicant;
179	387		(2) contact information for the applicant;
180	388		(3) the name of the school district in which the
181	389		qualified property is located;
182	390		(4) a description of the project, including the
183	391		category of the applicable North American Industry Classification
184	392		System that describes the activities in which the applicant will
185	393		engage in connection with the project;
186		-	(5) the location of the project;
	394	+	(5) the location of the project; and
187	395		(6) for each ad valorem tax year covered by the
188		-	proposed agreement between the applicant and the school district:
189		-	(A) an estimate of the amount of the qualified
190		-	investment to be spent or allocated for the project;
191		-	(B) the number of qualifying jobs the applicant
192		-	commits to create and the total amount of wages that will be paid to
193		-	the persons holding those jobs;
194		-	(C) an estimate of the appraised value of the
195		-	project if the project were not subject to the proposed agreement;
196		-	(D) an estimate of the amount of ad valorem taxes
197		-	for maintenance and operations and for debt that would be imposed by
198		-	the school district on the project if the project were not subject
199		-	to the proposed agreement;
200		-	(E) an estimate of the appraised value of the
201		-	project for school district maintenance and operations ad valorem
202		-	tax purposes as determined in accordance with the proposed
203		-	agreement; and
204		-	(F) an estimate of the amount of ad valorem taxes
205		-	for maintenance and operations that will be imposed by the school
206		-	district on the project as determined in accordance with the
207		-	proposed agreement; and
208		-	(7) any information that the comptroller:
209		-	(A) requires for the purposes of Section 313.026;
210		-	or
211		-	(B) otherwise determines to be necessary to
212		-	determine the applicant's eligibility for a limitation on appraised
213		-	value.
	396	+	proposed agreement between the applicant and the school district,
	397	+	an estimate of:
	398	+	(A) the amount of the qualified investment to be
	399	+	spent or allocated for the project;
	400	+	(B) the number of construction jobs to be created
	401	+	at the project site and the total amount of wages that will be paid
	402	+	to the persons holding those jobs;
	403	+	(C) the number of operations jobs to be held by
	404	+	employees of the applicant that will be created at the project site
	405	+	and the total amount of wages that will be paid to the persons
	406	+	holding those jobs; and
	407	+	(D) the number of operations jobs to be held by
	408	+	independent contractors that will be created at the project site
	409	+	and the total amount of wages that will be paid to the persons
	410	+	holding those jobs.
214	411		(a-2) Within seven days of the receipt of each document, the
215		-	school district shall submit to the comptroller a copy of the
216		-	application and the proposed agreement between the applicant and
217		-	the school district. If the applicant submits an economic analysis
218		-	of the proposed project to the school district, the district shall
219		-	submit a copy of the analysis to the comptroller. In addition, the
220		-	school district shall submit to the comptroller any subsequent
221		-	revision of or amendment to any of those documents within seven days
222		-	of its receipt. The comptroller shall publish each document
223		-	received from the school district under this subsection on the
224		-	comptroller's Internet website. If the school district maintains a
225		-	generally accessible Internet website, the district shall provide
226		-	on its website a link to the location of those documents posted on
227		-	the comptroller's website in compliance with this subsection. This
228		-	subsection does not require the comptroller to post information
229		-	that is confidential under Section 313.028.
	412	+	comptroller [school district] shall submit to the governing body of
	413	+	the school district in which the property is located [comptroller]
	414	+	a copy of the application and the proposed agreement between the
	415	+	applicant and the school district. If the applicant submits an
	416	+	economic analysis of the proposed project to the comptroller
	417	+	[school district], the comptroller [district] shall submit a copy
	418	+	of the analysis to the school district [comptroller]. In addition,
	419	+	the comptroller [school district] shall submit to the school
	420	+	district [comptroller] any subsequent revision of or amendment to
	421	+	any of those documents within seven days of its receipt. The
	422	+	comptroller shall publish each document received [from the school
	423	+	district] under this subsection on the comptroller's Internet
	424	+	website. If the school district maintains a generally accessible
	425	+	Internet website, the district shall provide on its website a link
	426	+	to the location of those documents posted on the comptroller's
	427	+	website in compliance with this subsection. This subsection does
	428	+	not require the comptroller to post information that is
	429	+	confidential under Section 313.028.
230	430		(b) The governing body of a school district is not required
231		-	to consider an application for a limitation on appraised value. If
232		-	the governing body of the school district elects not to consider the
233		-	application, the governing body shall refund $10,000 of the payment
234		-	described by Subsection (a) to the applicant. If the governing body
	431	+	to consider an application for an exemption from ad valorem
	432	+	taxation [a limitation on appraised value]. If the governing body
235	433		of the school district elects to consider an application, the
236		-	governing body shall deliver a copy of the application and $10,000
237		-	of the payment described by Subsection (a) to the comptroller and
238		-	request that the comptroller conduct an economic impact evaluation
239		-	of the investment proposed by the application. The comptroller
240		-	shall conduct or contract with a third person to conduct the
241		-	economic impact evaluation, which shall be completed and provided
242		-	to the governing body of the school district, along with the
243		-	comptroller's certificate or written explanation under Subsection
244		-	(d), as soon as practicable but not later than the 90th day after
245		-	the date the comptroller receives the application. The governing
246		-	body shall provide to the comptroller or to a third person
247		-	contracted by the comptroller to conduct the economic impact
248		-	evaluation any requested information. A methodology to allow
249		-	comparisons of economic impact for different schedules of the
250		-	addition of qualified investment or qualified property may be
251		-	developed as part of the economic impact evaluation. The governing
252		-	body shall provide a copy of the economic impact evaluation to the
253		-	applicant on request. [The comptroller may charge the applicant a
254		-	fee sufficient to cover the costs of providing the economic impact
255		-	evaluation.] The governing body of a school district shall approve
256		-	or disapprove an application not later than the 150th day after the
257		-	date the application is filed, unless the economic impact
258		-	evaluation has not been received or an extension is agreed to by the
259		-	governing body and the applicant.
260		-	SECTION 5. Sections 313.027(a-1), (f), and (i), Tax Code,
261		-	are amended to read as follows:
	434	+	governing body shall [deliver a copy of the application to the
	435	+	comptroller and] request that the comptroller conduct an economic
	436	+	impact evaluation of the investment proposed by the application.
	437	+	The comptroller shall conduct or contract with a third person to
	438	+	conduct the economic impact evaluation, which shall be completed
	439	+	and provided to the governing body of the school district, along
	440	+	with the comptroller's certificate or written explanation under
	441	+	Subsection (d), as soon as practicable but not later than the 90th
	442	+	day after the date the comptroller receives the request from the
	443	+	school district [application]. The governing body shall provide to
	444	+	the comptroller or to a third person contracted by the comptroller
	445	+	to conduct the economic impact evaluation any requested
	446	+	information. A methodology to allow comparisons of economic impact
	447	+	for different schedules of the addition of qualified investment or
	448	+	qualified property may be developed as part of the economic impact
	449	+	evaluation. The governing body shall provide a copy of the economic
	450	+	impact evaluation to the applicant on request. [The comptroller
	451	+	may charge the applicant a fee sufficient to cover the costs of
	452	+	providing the economic impact evaluation.] The governing body of a
	453	+	school district shall approve or disapprove an application not
	454	+	later than the 150th day after the date the application is filed,
	455	+	unless the economic impact evaluation has not been received or an
	456	+	extension is agreed to by the governing body and the applicant.
	457	+	(d) Not later than the 90th day after the date the
	458	+	comptroller receives the request from the school district [copy of
	459	+	the application], the comptroller shall issue a certificate for an
	460	+	exemption from ad valorem taxation [a limitation on appraised
	461	+	value] of the property and provide the certificate to the governing
	462	+	body of the school district or provide the governing body a written
	463	+	explanation of the comptroller's decision not to issue a
	464	+	certificate.
	465	+	(d-1) The governing body of a school district may not
	466	+	approve an application unless the comptroller submits to the
	467	+	governing body a certificate for an exemption from ad valorem
	468	+	taxation [a limitation on appraised value] of the property.
	469	+	(f) The governing body may approve an application only if
	470	+	the governing body finds that the information in the application is
	471	+	true and correct, finds that the applicant is eligible for the
	472	+	exemption from ad valorem taxation [limitation on the appraised
	473	+	value] of the person's qualified property, and determines that
	474	+	granting the application is in the best interest of the school
	475	+	district and this state.
	476	+	(h) After receiving a request from the school district [copy
	477	+	of the application], the comptroller shall determine whether the
	478	+	property meets the requirements of Section 313.024 for eligibility
	479	+	for an exemption from ad valorem taxation [a limitation on
	480	+	appraised value] under this subchapter. The comptroller shall
	481	+	notify the governing body of the school district of the
	482	+	comptroller's determination and provide the applicant an
	483	+	opportunity for a hearing before the determination becomes final.
	484	+	A hearing under this subsection is a contested case hearing and
	485	+	shall be conducted by the State Office of Administrative Hearings
	486	+	in the manner provided by Section 2003.101, Government Code. The
	487	+	applicant has the burden of proof on each issue in the hearing. The
	488	+	applicant may seek judicial review of the comptroller's
	489	+	determination in a Travis County district court under the
	490	+	substantial evidence rule as provided by Subchapter G, Chapter
	491	+	2001, Government Code.
	492	+	(i) If the comptroller's determination under Subsection (h)
	493	+	that the property does not meet the requirements of Section 313.024
	494	+	for an exemption from ad valorem taxation [eligibility for a
	495	+	limitation on appraised value] under this subchapter becomes final,
	496	+	the comptroller is not required to provide an economic impact
	497	+	evaluation of the application or to submit a certificate for an
	498	+	exemption from ad valorem taxation [a limitation on appraised
	499	+	value] of the property or a written explanation of the decision not
	500	+	to issue a certificate, and the governing body of the school
	501	+	district may not grant the application.
	502	+	SECTION 15. Sections 313.026(a), (b), (c), and (d), Tax
	503	+	Code, are amended to read as follows:
	504	+	(a) The economic impact evaluation of the application must
	505	+	include any information the comptroller determines is necessary or
	506	+	helpful to:
	507	+	(1) the governing body of the school district in
	508	+	determining whether to approve the application under Section
	509	+	313.025; or
	510	+	(2) the comptroller in determining whether to issue a
	511	+	certificate for an exemption from ad valorem taxation [a limitation
	512	+	on appraised value] of the property under Section 313.025.
	513	+	(b) Except as provided by Subsections (c) and (d), the
	514	+	comptroller's determination whether to issue a certificate for an
	515	+	exemption from ad valorem taxation [a limitation on appraised
	516	+	value] under this chapter for property described in the application
	517	+	shall be based on the economic impact evaluation described by
	518	+	Subsection (a) and on any other information available to the
	519	+	comptroller, including information provided by the governing body
	520	+	of the school district.
	521	+	(c) The comptroller may not issue a certificate for an
	522	+	exemption from ad valorem taxation [a limitation on appraised
	523	+	value] under this chapter for property described in an application
	524	+	unless the comptroller determines that:
	525	+	(1) the project proposed by the applicant is
	526	+	reasonably likely to generate, before the 25th anniversary of the
	527	+	beginning of the exemption [limitation] period, tax revenue,
	528	+	including state tax revenue, school district maintenance and
	529	+	operations ad valorem tax revenue attributable to the project, and
	530	+	any other tax revenue attributable to the effect of the project on
	531	+	the economy of the state, in an amount sufficient to offset the
	532	+	school district maintenance and operations ad valorem tax revenue
	533	+	lost as a result of the agreement; [and]
	534	+	(2) the exemption [limitation on appraised value] is a
	535	+	determining factor in the applicant's decision to invest capital
	536	+	and construct the project in this state; and
	537	+	(3) the exemption will not financially harm the school
	538	+	district in which the property is located.
	539	+	(d) The comptroller shall state in writing the basis for the
	540	+	determinations made under Subsections (c)(1), [and] (2), and (3).
	541	+	SECTION 16. Section 313.0265, Tax Code, is amended to read
	542	+	as follows:
	543	+	Sec. 313.0265. DISCLOSURE OF EXEMPTION [APPRAISED VALUE
	544	+	LIMITATION] INFORMATION. (a) The comptroller shall post on the
	545	+	comptroller's Internet website each document or item of information
	546	+	the comptroller designates as substantive before the 15th day after
	547	+	the date the document or item of information was received or
	548	+	created. Each document or item of information must continue to be
	549	+	posted until the exemption from ad valorem taxation [appraised
	550	+	value limitation] expires.
	551	+	(b) The comptroller shall designate the following as
	552	+	substantive:
	553	+	(1) each application requesting an exemption from ad
	554	+	valorem taxation [a limitation on appraised value]; and
	555	+	(2) the economic impact evaluation made in connection
	556	+	with the application.
	557	+	(c) If a school district maintains a generally accessible
	558	+	Internet website, the district shall maintain a link on its
	559	+	Internet website to the area of the comptroller's Internet website
	560	+	where information on each of the district's agreements to exempt
	561	+	property from ad valorem taxation under this chapter [limit
	562	+	appraised value] is maintained.
	563	+	SECTION 17. The heading to Section 313.027, Tax Code, is
	564	+	amended to read as follows:
	565	+	Sec. 313.027. EXEMPTION OF PROPERTY FROM AD VALOREM
	566	+	TAXATION [LIMITATION ON APPRAISED VALUE]; AGREEMENT.
	567	+	SECTION 18. Sections 313.027(a), (a-1), (d), (e), (f), (i),
	568	+	and (j), Tax Code, are amended to read as follows:
	569	+	(a) If the person's application is approved by the governing
	570	+	body of the school district, the portion of the appraised value [for
	571	+	school district maintenance and operations ad valorem tax purposes]
	572	+	of the person's qualified property as described in the agreement
	573	+	between the person and the district entered into under this section
	574	+	in the school district that arises from the project is exempt from
	575	+	[may not exceed the lesser of]:
	576	+	(1) the district's tier one maintenance and operations
	577	+	tax rate described by Section 45.0032(a), Education Code [market
	578	+	value of the property]; and [or]
	579	+	(2) the portion of the district's enrichment tax rate
	580	+	described by Section 45.0032(b)(2), Education Code [subject to
	581	+	Subsection (b), the amount agreed to by the governing body of the
	582	+	school district].
262	583		(a-1) The agreement must:
263		-	(1) provide that the limitation under Subsection (a)
264		-	applies for a period of 10 years; and
265		-	(2) specify the beginning date of the limitation,
266		-	which must be January 1 of the first tax year that begins after:
	584	+	(1) specify the period for which [provide that] the
	585	+	exemption from ad valorem taxation [limitation] under Subsection
	586	+	(a) applies, which may not exceed [for a period of] 10 years; and
	587	+	(2) specify the beginning date of the exemption
	588	+	[limitation], which must be January 1 of the first tax year that
	589	+	begins after:
267	590		(A) the application date;
268	591		(B) the qualifying time period; or
269	592		(C) the following applicable date:
270	593		(i) in the case of a project involving the
271	594		construction of a new building or the erection or affixing of a new
272	595		improvement, the date commercial operations begin at the site of
273	596		the project; or
274	597		(ii) in the case of a project involving the
275		-	renovation, expansion, modernization, or other improvement of an
276		-	existing building or improvement, the date the renovation,
277		-	expansion, modernization, or other improvement is completed.
	598	+	renovation, expansion, or other improvement of an existing building
	599	+	or improvement, the date the renovation, expansion, or other
	600	+	improvement is completed.
	601	+	(d) The governing body of the school district and the
	602	+	property owner shall enter into a written agreement for the
	603	+	implementation of the exemption from ad valorem taxation
	604	+	[limitation on appraised value] under this subchapter of [on] the
	605	+	owner's qualified property.
	606	+	(e) The agreement must describe with specificity the
	607	+	qualified investment that the person will make on or in connection
	608	+	with the person's qualified property that is subject to the
	609	+	exemption from ad valorem taxation [limitation on appraised value]
	610	+	under this subchapter. Other property of the person that is not
	611	+	specifically described in the agreement is not subject to the
	612	+	exemption [limitation] unless the governing body of the school
	613	+	district, by official action, provides that the other property is
	614	+	subject to the exemption [limitation].
278	615		(f) In addition, the agreement:
279	616		(1) must incorporate each relevant provision of this
280	617		subchapter [and, to the extent necessary, include provisions for
281	618		the protection of future school district revenues through the
282	619		adjustment of the minimum valuations, the payment of revenue
283	620		offsets, and other mechanisms agreed to by the property owner and
284	621		the school district];
285		-	(2) must require the property owner to provide a
286		-	stabilization payment to the school district in each tax year
287		-	during the period for which the limitation under Subsection (a)
288		-	applies in an amount equal to a portion, not to exceed 38 percent,
289		-	as specified by the agreement of the amount computed by subtracting
290		-	from the market value of the person's qualified property as
291		-	described in the agreement for that tax year the value of the
292		-	property as limited by the agreement and multiplying the difference
293		-	by the maintenance and operations tax rate of the school district
294		-	for that tax year [may provide that the property owner will protect
	622	+	(2) may provide that the property owner will protect
295	623		the school district in the event the district incurs extraordinary
296	624		education-related expenses related to the project that are not
297	625		directly funded in state aid formulas, including expenses for the
298	626		purchase of portable classrooms and the hiring of additional
299	627		personnel to accommodate a temporary increase in student enrollment
300		-	attributable to the project];
	628	+	attributable to the project;
301	629		(3) must require the property owner to maintain a
302	630		viable presence in the school district for at least five years after
303		-	the date the limitation on ~~appraised value of the owner's property~~
304		-	expires;
	631	+	the date the exemption from ad valorem taxation [limitation on
	632	+	appraised value] of the owner's property expires;
305	633		(4) must provide for the termination of the agreement,
306	634		the recapture of ad valorem tax revenue lost as a result of the
307	635		agreement if the owner of the property fails to comply with the
308	636		terms of the agreement, and payment of a penalty or interest, or
309	637		both, on that recaptured ad valorem tax revenue;
310	638		(5) may specify any conditions the occurrence of which
311	639		will require the district and the property owner to renegotiate all
312	640		or any part of the agreement;
313	641		(6) must specify the ad valorem tax years covered by
314	642		the agreement; and
315	643		(7) must be in a form approved by the comptroller.
316	644		(i) A person and the school district may not enter into an
317		-	agreement pursuant to an application filed on or after January 1,
318		-	2023, under which the person agrees to provide supplemental
	645	+	agreement under which the person agrees to provide supplemental
319	646		payments to a school district or any other entity on behalf of a
320		-	school district. A stabilization payment as described by
321		-	Subsection (f)(2) is not considered to be a supplemental payment
322		-	for purposes of an agreement entered into by a person and a school
323		-	district pursuant to an application filed before January 1, 2023,
324		-	under which the person agrees to provide supplemental payments to
325		-	the school district or another entity on behalf of the school
326		-	district [in an amount that exceeds an amount equal to the greater
327		-	of $100 per student per year in average daily attendance, as defined
328		-	by Section 48.005, Education Code, or $50,000 per year, or for a
329		-	period that exceeds the period beginning with the period described
330		-	by Section 313.021(4) and ending December 31 of the third tax year
331		-	after the date the person's eligibility for a limitation under this
332		-	chapter expires. This limit does not apply to amounts described by
333		-	Subsection (f)(1) or (2)].
334		-	SECTION 6. Section 313.0276(e), Tax Code, is amended to
	647	+	school district [in an amount that exceeds an amount equal to the
	648	+	greater of $100 per student per year in average daily attendance, as
	649	+	defined by Section 48.005, Education Code, or $50,000 per year, or
	650	+	for a period that exceeds the period beginning with the period
	651	+	described by Section 313.021(4) and ending December 31 of the third
	652	+	tax year after the date the person's eligibility for a limitation
	653	+	under this chapter expires]. This subsection [limit] does not:
	654	+	(1) apply to payments provided under [amounts
	655	+	described by] Subsection (f)(2); or
	656	+	(2) prohibit a person from voluntarily providing
	657	+	supplemental payments to the school district or another entity on
	658	+	behalf of the district [(f)(1) or (2)].
	659	+	(j) An agreement under this chapter must disclose any
	660	+	consideration promised in conjunction with the application and the
	661	+	exemption from ad valorem taxation and stipulate that all
	662	+	obligations of the parties to the agreement are stated in the
	663	+	agreement. Any separate agreement between the parties that imposes
	664	+	any additional obligation on either party is void [limitation].
	665	+	SECTION 19. Section 313.0275(b), Tax Code, is amended to
335	666		read as follows:
336		-	(e) Notwithstanding Subsections (c) and (d), a penalty
337		-	imposed under this section may not exceed an amount equal to the
338		-	difference between the amount of the ad valorem tax benefit
339		-	received by the person under the agreement in the preceding year and
340		-	the amount of any stabilization [supplemental] payments as
341		-	described by Section 313.027(f)(2) made to the school district in
342		-	that year.
343		-	SECTION 7. The heading to Section 313.031, Tax Code, is
344		-	amended to read as follows:
345		-	Sec. 313.031. RULES AND FORMS[; FEES].
346		-	SECTION 8. Section 313.031, Tax Code, is amended by adding
347		-	Subsection (a-1) to read as follows:
348		-	(a-1) The comptroller shall adopt a single annual reporting
349		-	form to be used by a recipient or former recipient of a limitation
350		-	on appraised value under this chapter for the purpose of submitting
351		-	information necessary for the comptroller to complete the reports
352		-	required by this chapter. A recipient or former recipient shall
353		-	submit the form to the applicable school district at the same time
354		-	the recipient or former recipient submits the form to the
355		-	comptroller. This subsection does not apply to the form described
356		-	by Section 313.033.
357		-	SECTION 9. Section 313.032(a), Tax Code, is amended to read
358		-	as follows:
	667	+	(b) If in any tax year a property owner fails to comply with
	668	+	Subsection (a), the property owner is liable to this state for a
	669	+	penalty equal to the amount computed by multiplying the amount of
	670	+	the exemption from ad valorem taxation under this subchapter
	671	+	[subtracting from the market value] of the property for that tax
	672	+	year by the sum of the school district's tier one maintenance and
	673	+	operations tax rate described by Section 45.0032(a), Education
	674	+	Code, and the portion of the district's enrichment tax rate
	675	+	described by Section 45.0032(b)(2) of that code [the value of the
	676	+	property as limited by the agreement and multiplying the difference
	677	+	by the maintenance and operations tax rate of the school district]
	678	+	for that tax year.
	679	+	SECTION 20. Subchapter B, Chapter 313, Tax Code, is amended
	680	+	by adding Section 313.0277 to read as follows:
	681	+	Sec. 313.0277. PAYMENT TO STATE BASED ON DIFFERENCE BETWEEN
	682	+	AD VALOREM TAX BENEFIT RECEIVED AND WAGES AND OTHER COMPENSATION
	683	+	PAID. (a) A person with whom a school district enters into an
	684	+	agreement under this subchapter is liable to this state for an
	685	+	amount equal to the difference between:
	686	+	(1) the product of:
	687	+	(A) 10 percent of the amount of the exemption
	688	+	from ad valorem taxation under this subchapter of the property
	689	+	subject to the agreement for the current tax year; and
	690	+	(B) the sum of the school district's tier one
	691	+	maintenance and operations tax rate described by Section
	692	+	45.0032(a), Education Code, and the portion of the district's
	693	+	enrichment tax rate described by Section 45.0032(b)(2) of that code
	694	+	for the current tax year; and
	695	+	(2) the sum of:
	696	+	(A) the total amount of wages paid during the
	697	+	current tax year to employees of the person holding jobs created at
	698	+	the site of the project covered by the agreement; and
	699	+	(B) 50 percent of the total amount of nonemployee
	700	+	compensation paid during the current tax year to independent
	701	+	contractors for construction or other work performed at the site of
	702	+	the project covered by the agreement as reported on Internal
	703	+	Revenue Service Form 1099-MISC or any subsequent form with a
	704	+	different number or designation that substantially provides the
	705	+	same information.
	706	+	(b) An amount imposed under Subsection (a) becomes
	707	+	delinquent if not paid on or before February 1 of the following tax
	708	+	year. Section 33.01 applies to the delinquent amount in the manner
	709	+	that section applies to delinquent taxes.
	710	+	(c) The comptroller shall deposit an amount collected under
	711	+	this section, including any interest and penalty applicable to the
	712	+	amount, to the credit of the foundation school fund. Money
	713	+	deposited under this subsection may be used only to supplement the
	714	+	funds allocated to school districts under Section 48.106, Education
	715	+	Code.
	716	+	SECTION 21. Section 313.028, Tax Code, is amended to read as
	717	+	follows:
	718	+	Sec. 313.028. CERTAIN BUSINESS INFORMATION CONFIDENTIAL.
	719	+	Information provided to a school district or the comptroller in
	720	+	connection with an application for an exemption from ad valorem
	721	+	taxation [a limitation on appraised value] under this subchapter
	722	+	that describes the specific processes or business activities to be
	723	+	conducted or the specific tangible personal property to be located
	724	+	on real property covered by the application shall be segregated in
	725	+	the application from other information in the application and is
	726	+	confidential and not subject to public disclosure unless the
	727	+	governing body of the school district approves the application.
	728	+	Other information in the custody of a school district or the
	729	+	comptroller in connection with the application, including
	730	+	information related to the economic impact of a project or the
	731	+	essential elements of eligibility under this chapter, such as the
	732	+	nature and amount of the projected investment, employment, wages,
	733	+	and benefits, may not be considered confidential business
	734	+	information if the governing body of the school district agrees to
	735	+	consider the application. Information in the custody of a school
	736	+	district or the comptroller if the governing body approves the
	737	+	application is not confidential under this section.
	738	+	SECTION 22. Section 313.030, Tax Code, is amended to read as
	739	+	follows:
	740	+	Sec. 313.030. PROPERTY NOT ELIGIBLE FOR TAX ABATEMENT.
	741	+	Property subject to an exemption from ad valorem taxation [a
	742	+	limitation on appraised value] in a tax year under this subchapter
	743	+	is not eligible for tax abatement by a school district under Chapter
	744	+	312 in that tax year.
	745	+	SECTION 23. Section 313.031, Tax Code, is amended to read as
	746	+	follows:
	747	+	Sec. 313.031. RULES AND FORMS[; FEES]. [(a)] The
	748	+	comptroller shall:
	749	+	(1) adopt rules and forms necessary for the
	750	+	implementation and administration of this chapter, including rules
	751	+	for determining whether a property owner's property qualifies as a
	752	+	qualified investment under Section 313.021(1); and
	753	+	(2) provide without charge one copy of the rules and
	754	+	forms to any school district and to any person who states that the
	755	+	person intends to apply for an exemption from ad valorem taxation [a
	756	+	limitation on appraised value] under this subchapter.
	757	+	[(b) The governing body of a school district by official
	758	+	action shall establish reasonable nonrefundable application fees
	759	+	to be paid by property owners who apply to the district for a
	760	+	limitation on the appraised value of the person's property under
	761	+	this subchapter. The amount of an application fee must be
	762	+	reasonable and may not exceed the estimated cost to the district of
	763	+	processing and acting on an application, including any cost to the
	764	+	school district associated with the economic impact evaluation
	765	+	required by Section 313.025.]
	766	+	SECTION 24. Sections 313.032(a), (c), and (d), Tax Code,
	767	+	are amended to read as follows:
359	768		(a) Before the beginning of each regular session of the
360	769		legislature, the comptroller shall submit to the lieutenant
361	770		governor, the speaker of the house of representatives, and each
362	771		other member of the legislature a report on the agreements entered
363	772		into under this chapter that includes:
364		-	(1) an assessment of the following with regard to the
365		-	agreements entered into under this chapter, considered in the
366		-	aggregate, from the year in which each agreement was entered into to
367		-	the most recent year for which actual data is available:
368		-	(A) the total number of qualifying jobs created[,
369		-	direct and otherwise,] in this state;
370		-	(B) [the total effect on personal income, direct
	773	+	(1) an assessment of the information described by
	774	+	Subdivision (2) [following] with regard to the agreements entered
	775	+	into under this chapter, considered in the aggregate[:
	776	+	[(A) the total number of jobs created, direct and
	777	+	otherwise, in this state;
	778	+	[(B) the total effect on personal income, direct
371	779		and otherwise, in this state;
372		-	[(C)] the total amount of qualified investment in
373		-	this state;
374		-	(C) [(D)] the total taxable value for purposes of
375		-	school district ad valorem taxes for maintenance and operations and
376		-	for debt of property on the tax rolls in this state, including
377		-	property for which the limitation period has expired, and the total
378		-	amount of school district ad valorem taxes for maintenance and
379		-	operations and for debt imposed on that property;
380		-	(D) [(E)] the total value of property not on the
381		-	tax rolls in this state as a result of agreements entered into under
382		-	this chapter and the total amount of school district maintenance
383		-	and operations ad valorem taxes that would have been imposed on that
384		-	value if that value were on the tax rolls; and
385		-	(E) the total amount of stabilization payments as
386		-	described by Section 313.027(f)(2) made to school districts
387		-	[(F) the total fiscal effect on the state and local governments];
388		-	and
	780	+	[(C) the total amount of investment in this
	781	+	state;
	782	+	[(D) the total taxable value of property on the
	783	+	tax rolls in this state, including property for which the
	784	+	limitation period has expired;
	785	+	[(E) the total value of property not on the tax
	786	+	rolls in this state as a result of agreements entered into under
	787	+	this chapter; and
	788	+	[(F) the total fiscal effect on the state and
	789	+	local governments]; and
389	790		(2) an assessment of the progress of each agreement
390		-	made under this chapter that states for each agreement from the year
391		-	in which the agreement was entered into to the most recent year for
392		-	which actual data has been certified:
393		-	(A) the number of qualifying jobs each recipient
394		-	of a limitation on appraised value committed to create;
395		-	(B) the number of qualifying jobs each recipient
396		-	created;
397		-	(C) the total amount of wages [and the median
398		-	wage] of the new qualifying jobs each recipient created;
399		-	(D) the amount of the qualified investment each
	791	+	made under this chapter that states for each agreement:
	792	+	(A) the number of [qualifying] jobs each
	793	+	recipient of an exemption from ad valorem taxation created at the
	794	+	project site by the following categories:
	795	+	(i) construction jobs;
	796	+	(ii) operations jobs held by employees of
	797	+	the recipient; and
	798	+	(iii) operations jobs held by independent
	799	+	contractors [a limitation on appraised value committed to create];
	800	+	(B) the total amount of wages paid by [number of
	801	+	qualifying jobs] each recipient to persons holding jobs described
	802	+	by Paragraph (A), by category listed in that paragraph [created];
	803	+	(C) [the total amount of wages and the median
	804	+	wage of the new qualifying jobs each recipient created;
	805	+	[(D)] the amount of the qualified investment each
400	806		recipient committed to spend or allocate for each project;
401		-	(E) the amount of the qualified investment each
402		-	recipient spent or allocated for each project;
403		-	(F) the market value of the qualified property of
404		-	each recipient as determined by the applicable chief appraiser,
405		-	including property that is no longer eligible for a limitation on
406		-	appraised value under the agreement;
407		-	(G) the limitation on appraised value for the
	807	+	(D) [(E)] the amount of the qualified investment
	808	+	each recipient spent or allocated for each project;
	809	+	(E) the total market value of all of the property
	810	+	related to the project covered by the agreement as determined by the
	811	+	applicable chief appraiser, regardless of whether the property is
	812	+	qualified property;
	813	+	(F) the market value of the portion of the
	814	+	qualified property of each recipient as determined by the
	815	+	applicable chief appraiser that is currently eligible for an
	816	+	exemption from ad valorem taxation[, including property that is no
	817	+	longer eligible for a limitation on appraised value] under the
	818	+	agreement;
	819	+	(G) [the limitation on appraised value for the
408	820		qualified property of each recipient;
409		-	(H) the dollar amount of the school district ad
410		-	valorem taxes for maintenance and operations and for debt that
411		-	would have been imposed on the qualified property if the property
412		-	had not received a limitation on appraised value; [and]
413		-	(I) the dollar amount of the school district ad
414		-	valorem taxes for maintenance and operations and for debt imposed
415		-	on the qualified property; and
416		-	(J) the amount of stabilization payments as
417		-	described by Section 313.027(f)(2) each recipient made to the
418		-	applicable school district.
419		-	SECTION 10. Section 48.256(d), Education Code, is amended
	821	+	[(H)] the dollar amount of the taxes that would
	822	+	have been imposed on the [qualified] property related to the
	823	+	project, regardless of whether the property is qualified property,
	824	+	if the qualified property had not received an exemption from ad
	825	+	valorem taxation [a limitation on appraised value]; [and]
	826	+	(H) [(I)] the dollar amount of the taxes imposed
	827	+	on the [qualified] property related to the project, regardless of
	828	+	whether the property is qualified property; and
	829	+	(I) the difference between the amount described
	830	+	by Paragraph (G) and the amount described by Paragraph (H).
	831	+	(c) The portion of the report described by Subsection (a)(2)
	832	+	must be based on data certified to the comptroller by each recipient
	833	+	or former recipient of an exemption from ad valorem taxation [a
	834	+	limitation on appraised value] under this chapter. The comptroller
	835	+	shall verify a random sample of the data submitted under this
	836	+	section using information from the Texas Workforce Commission, the
	837	+	chief appraiser of the applicable appraisal district, or other
	838	+	sources the comptroller considers reliable. The random sample used
	839	+	to verify data under this section must constitute not less than 33
	840	+	percent of the data used by the comptroller to prepare the report.
	841	+	Information provided under this section that contains personal
	842	+	identifying information of an individual is confidential and not
	843	+	subject to disclosure under Chapter 552, Government Code, or
	844	+	Chapter 111, Tax Code.
	845	+	(d) The comptroller may require a recipient or former
	846	+	recipient of an exemption from ad valorem taxation [a limitation on
	847	+	appraised value] under this chapter to submit, on a form the
	848	+	comptroller provides, information required to complete the report.
	849	+	SECTION 25. Section 313.033, Tax Code, is amended to read as
	850	+	follows:
	851	+	Sec. 313.033. ANNUAL REPORT BY RECIPIENT OF EXEMPTION [ON
	852	+	COMPLIANCE WITH JOB-CREATION REQUIREMENTS]. Each recipient of an
	853	+	exemption from ad valorem taxation [a limitation on appraised
	854	+	value] under this chapter shall submit to the comptroller an annual
	855	+	report on a form provided by the comptroller that provides the
	856	+	following information with regard to each agreement entered into by
	857	+	the recipient under this chapter:
	858	+	(1) the number of jobs the recipient created at the
	859	+	project site by the following categories:
	860	+	(A) construction jobs;
	861	+	(B) operations jobs held by employees of the
	862	+	recipient; and
	863	+	(C) operations jobs held by independent
	864	+	contractors;
	865	+	(2) the total amount of wages paid by the recipient to
	866	+	persons holding jobs described by Subdivision (1), by category
	867	+	listed in that subdivision;
	868	+	(3) the amount of the qualified investment the
	869	+	recipient committed to spend or allocate for the project;
	870	+	(4) the amount of the qualified investment the
	871	+	recipient spent or allocated for the project;
	872	+	(5) the total market value of all of the property
	873	+	related to the project covered by the agreement as determined by the
	874	+	applicable chief appraiser, regardless of whether the property is
	875	+	qualified property;
	876	+	(6) the market value of the portion of the qualified
	877	+	property of the recipient as determined by the applicable chief
	878	+	appraiser that is currently eligible for an exemption from ad
	879	+	valorem taxation under the agreement;
	880	+	(7) the dollar amount of the taxes that would have been
	881	+	imposed on the property related to the project, regardless of
	882	+	whether the property is qualified property, if the qualified
	883	+	property had not received an exemption from ad valorem taxation;
	884	+	(8) the dollar amount of the taxes imposed on the
	885	+	property related to the project, regardless of whether the property
	886	+	is qualified property; and
	887	+	(9) the difference between the amount described by
	888	+	Subdivision (7) and the amount described by Subdivision (8)
	889	+	[sufficient to document the number of qualifying jobs created].
	890	+	SECTION 26. Section 313.171, Tax Code, is amended by
	891	+	amending Subsection (a) and adding Subsection (a-1) to read as
	892	+	follows:
	893	+	(a) An exemption from ad valorem taxation [A limitation on
	894	+	appraised value] approved under Subchapter B [or C] before the
	895	+	expiration of that subchapter continues in effect according to that
	896	+	subchapter as that subchapter existed immediately before its
	897	+	expiration, and that law is continued in effect for purposes of the
	898	+	exemption [limitation on appraised value].
	899	+	(a-1) A limitation on appraised value approved under
	900	+	Subchapter C before the repeal of that subchapter continues in
	901	+	effect according to that subchapter as that subchapter existed
	902	+	immediately before its repeal, and that law is continued in effect
	903	+	for purposes of the limitation on appraised value.
	904	+	SECTION 27. Section 48.202(b), Education Code, is amended
420	905		to read as follows:
	906	+	(b) In computing the district enrichment tax rate of a
	907	+	school district, the total amount of maintenance and operations
	908	+	taxes collected by the school district does not include the amount
	909	+	of:
	910	+	(1) the district's local fund assignment under Section
	911	+	48.256; [or]
	912	+	(2) taxes paid into a tax increment fund under Chapter
	913	+	311, Tax Code; or
	914	+	(3) taxes attributable to the application of the
	915	+	portion of the district's enrichment tax rate described by Section
	916	+	45.0032(b)(1) of this code to the portion of the appraised value of
	917	+	property that is otherwise exempt from ad valorem taxation under
	918	+	Subchapter B, Chapter 313, Tax Code.
	919	+	SECTION 28. Section 48.2551(a), Education Code, is amended
	920	+	to read as follows:
	921	+	(a) In this section:
	922	+	(1) "DPV" has the meaning assigned by Section 48.256;
	923	+	(2) "E" is the expiration of the exclusion of
	924	+	appraised property value for the preceding tax year that is
	925	+	recognized as taxable property value for the current tax year,
	926	+	which is the sum of the following:
	927	+	(A) property value that is no longer subject to
	928	+	an exemption from ad valorem taxation [a limitation on appraised
	929	+	value] under Chapter 313, Tax Code; and
	930	+	(B) property value under Section 311.013(n), Tax
	931	+	Code, that is no longer excluded from the calculation of "DPV" from
	932	+	the preceding year because of refinancing or renewal after
	933	+	September 1, 2019;
	934	+	(3) "MCR" is the district's maximum compressed rate,
	935	+	which is the tax rate for the current tax year per $100 of valuation
	936	+	of taxable property at which the district must levy a maintenance
	937	+	and operations tax to receive the full amount of the tier one
	938	+	allotment to which the district is entitled under this chapter;
	939	+	(4) "PYDPV" is the district's value of "DPV" for the
	940	+	preceding tax year; and
	941	+	(5) "PYMCR" is the district's value of "MCR" for the
	942	+	preceding tax year.
	943	+	SECTION 29. Sections 48.256(d) and (e), Education Code, are
	944	+	amended to read as follows:
421	945		(d) This subsection applies to a school district in which
422	946		the board of trustees entered into a written agreement with a
423	947		property owner under Section 313.027, Tax Code, for the
424		-	implementation of a limitation on appraised value under Subchapter
425		-	B or C, Chapter 313, Tax Code. For purposes of determining "DPV"
426		-	under Subsection (a) for a school district to which this subsection
	948	+	implementation of an exemption from ad valorem taxation [a
	949	+	limitation on appraised value] under Subchapter B [or C], Chapter
	950	+	313, Tax Code, a limitation on appraised value under Subchapter B,
	951	+	Chapter 313, Tax Code, as that subchapter existed before September
	952	+	1, 2021, or a limitation on appraised value under former Subchapter
	953	+	C, Chapter 313, Tax Code. For purposes of determining "DPV" under
	954	+	Subsection (a) for a school district to which this subsection
427	955		applies, the commissioner shall exclude a portion of the market
428	956		value of property not otherwise fully taxable by the district under
429		-	Subchapter B or C, Chapter 313, Tax Code, before the expiration of
430		-	the subchapter. The comptroller shall provide information to the
431		-	agency necessary for this subsection. A revenue protection payment
432		-	described by Section 313.027(f)(1), Tax Code, as that subdivision
433		-	existed before January 1, 2023, required as part of an agreement for
434		-	a limitation on appraised value shall be based on the district's
435		-	taxable value of property for the preceding tax year.
436		-	SECTION 11. The following provisions of the Tax Code are
	957	+	Subchapter B [or C], Chapter 313, Tax Code, before the expiration of
	958	+	the subchapter or former Subchapter C, Chapter 313, Tax Code,
	959	+	before the repeal of that subchapter. The comptroller shall
	960	+	provide information to the agency necessary for this subsection.
	961	+	[A revenue protection payment required as part of an agreement for a
	962	+	limitation on appraised value shall be based on the district's
	963	+	taxable value of property for the preceding tax year.]
	964	+	(e) Subsection (d) does not apply to property that was the
	965	+	subject of an application under Subchapter B or former Subchapter
	966	+	C, Chapter 313, Tax Code, made after May 1, 2009, that the
	967	+	comptroller recommended should be disapproved.
	968	+	SECTION 30. Section 2303.507, Government Code, is amended
	969	+	to read as follows:
	970	+	Sec. 2303.507. TAX INCREMENT FINANCING AND ABATEMENT;
	971	+	EXEMPTIONS FROM AD VALOREM TAXATION [LIMITATIONS ON APPRAISED
	972	+	VALUE]. Designation of an area as an enterprise zone is also
	973	+	designation of the area as a reinvestment zone for:
	974	+	(1) tax increment financing under Chapter 311, Tax
	975	+	Code;
	976	+	(2) tax abatement under Chapter 312, Tax Code; and
	977	+	(3) exemptions from ad valorem taxation [limitations
	978	+	on appraised value] under Chapter 313, Tax Code.
	979	+	SECTION 31. The following provisions of the Tax Code are
437	980		repealed:
438		-	(1) Section 313.031(b); and
439		-	(2) Section 313.032(b-1).
440		-	SECTION 12. (a) The changes in law made by this Act apply
441		-	only to an agreement entered into under Chapter 313, Tax Code,
442		-	pursuant to an application filed under that chapter on or after the
443		-	effective date of this Act. An agreement entered into under that
444		-	chapter pursuant to an application filed before the effective date
445		-	of this Act is governed by the law in effect on the date the
446		-	application was filed, and the former law is continued in effect for
447		-	that purpose.
448		-	(b) The change in law made by this Act to Section 48.256(d),
449		-	Education Code, applies beginning with the 2023-2024 school year.
450		-	SECTION 13. This Act takes effect January 1, 2023.
	981	+	(1) Section 313.006;
	982	+	(2) Section 313.009;
	983	+	(3) Sections 313.021(3) and (5);
	984	+	(4) Sections 313.024(d) and (d-2);
	985	+	(5) Sections 313.024(e)(3), (4), and (6);
	986	+	(6) Section 313.025(f-1);
	987	+	(7) Sections 313.027(b), (c), and (g);
	988	+	(8) Section 313.0276;
	989	+	(9) Section 313.032(b-1); and
	990	+	(10) Subchapter C, Chapter 313.
	991	+	SECTION 32. Chapter 313, Tax Code, as amended by this Act,
	992	+	applies only to an application filed under that chapter on or after
	993	+	the effective date of this Act. An application filed under that
	994	+	chapter before the effective date of this Act is governed by the law
	995	+	in effect on the date the application was filed, and the former law
	996	+	is continued in effect for that purpose.
	997	+	SECTION 33. This Act takes effect September 1, 2021.
	998	+
	999	+	[CATEGORY TAXABLE VALUE OF PROPERTY
	1000	+
	1001	+	[I $10 billion or more
	1002	+
	1003	+	[II $1 billion or more but less than $10 billion
	1004	+
	1005	+	[III $500 million or more but less than $1 billion
	1006	+
	1007	+	[IV $100 million or more but less than $500 million
	1008	+
	1009	+	[V less than $100 million]
	1010	+
	1011	+	CATEGORY MINIMUM QUALIFIED INVESTMENT
	1012	+
	1013	+	I $10 [$100] million
	1014	+
	1015	+	II $50 [$80] million
	1016	+
	1017	+	[III $60 million
	1018	+
	1019	+	[IV $40 million
	1020	+
	1021	+	[V $20 million]