Texas 2023 - 88th Regular

Texas House Bill HB5 Compare Versions

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Version 2 (New)

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1	1	H.B. No. 5
2	2
3	3
4	4	AN ACT
5	5	relating to agreements authorizing a limitation on taxable value of
6	6	certain property to provide for the creation of jobs and the
7	7	generation of state and local tax revenue; authorizing fees;
8	8	authorizing penalties.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 403, Government Code, is amended by
11	11	adding Subchapter T to read as follows:
12	12	SUBCHAPTER T. TEXAS JOBS, ENERGY, TECHNOLOGY, AND INNOVATION ACT
13	13	Sec. 403.601. PURPOSES. The purposes of this subchapter
14	14	are to:
15	15	(1) create new, high-paying permanent jobs and
16	16	construction jobs in this state;
17	17	(2) encourage financially positive economic
18	18	development in this state;
19	19	(3) provide a temporary competitive economic
20	20	incentive for attracting certain large-scale economic development
21	21	projects to this state that, in the absence of this subchapter,
22	22	would likely locate in another state or nation;
23	23	(4) encourage energy and water infrastructure
24	24	development, including new and expanded dispatchable electric
25	25	generation facilities;
26	26	(5) make this state a national and international
27	27	leader in new and innovative technologies;
28	28	(6) encourage the establishment of certain advanced
29	29	manufacturing industry sectors critical to national defense and
30	30	health care;
31	31	(7) create new wealth, raise personal income, and
32	32	foster long-term expansion of state and local tax bases;
33	33	(8) provide growing and sustainable economic
34	34	opportunity for the residents of this state; and
35	35	(9) incentivize the preceding objectives in a
36	36	balanced, transparent, and accountable manner.
37	37	Sec. 403.602. DEFINITIONS. In this subchapter:
38	38	(1) "Additional job" means a full-time job in
39	39	connection with an eligible project that is not a required job for
40	40	the same project.
41	41	(2) "Agreement" means an agreement entered into under
42	42	Section 403.612.
43	43	(3) "Applicant" means a person that applies for, or
44	44	enters into an agreement providing for, a limitation on the taxable
45	45	value of eligible property used as part of an eligible project,
46	46	including the person's assignees or successors-in-interest.
47	47	(4) "Appraised value," "tax year," and "taxing unit"
48	48	have the meanings assigned by Section 1.04, Tax Code.
49	49	(5) "Construction completion date" means the date on
50	50	which an eligible project is first capable of being used for the
51	51	purposes for which it is constructed.
52	52	(6) "Construction job" means an otherwise full-time
53	53	job that is temporary in nature and is performed before the start of
54	54	the incentive period applicable to an eligible project to perform
55	55	construction, maintenance, remodeling, or repair work for an
56	56	applicant in connection with the project.
57	57	(7) "Construction period" means the period prescribed
58	58	by an agreement as the construction period of the eligible project
59	59	that is the subject of the agreement.
60	60	(8) "Eligible project":
61	61	(A) means a project:
62	62	(i) to construct or expand a new or existing
63	63	facility that is:
64	64	(a) a manufacturing facility;
65	65	(b) a facility related to the
66	66	provision of utility services, including an electric generation
67	67	facility that is considered to be dispatchable because the
68	68	facility's output can be controlled primarily by forces under human
69	69	control;
70	70	(c) a facility related to the
71	71	development of natural resources; or
72	72	(d) a facility engaged in the
73	73	research, development, or manufacture of high-tech equipment or
74	74	technology; or
75	75	(ii) to construct or expand critical
76	76	infrastructure; and
77	77	(B) does not include a project to construct or
78	78	expand a new or existing:
79	79	(i) nondispatchable electric generation
80	80	facility; or
81	81	(ii) electric energy storage facility.
82	82	(9) "Eligible property" means property that is used as
83	83	part of an eligible project that is wholly owned by an applicant or
84	84	leased by an applicant under a capitalized lease and consists of:
85	85	(A) a new building or expansion of an existing
86	86	building, including a permanent, nonremovable component of a
87	87	building, that is:
88	88	(i) constructed after the date the
89	89	agreement pertaining to the project is entered into; and
90	90	(ii) located in an area designated as a
91	91	reinvestment zone under Chapter 311 or 312, Tax Code, or as an
92	92	enterprise zone under Chapter 2303 of this code, at the time the
93	93	agreement pertaining to the project is entered into; or
94	94	(B) tangible personal property, other than
95	95	inventory, first located in the zone described by Paragraph (A)(ii)
96	96	after the date the agreement pertaining to the project is entered
97	97	into.
98	98	(10) "Full-time job" means a permanent full-time job
99	99	that requires a total of at least 1,600 hours of work a year in
100	100	connection with an eligible project. The term does not include a
101	101	construction job.
102	102	(11) "Incentive period" for an eligible project means
103	103	the period prescribed by the agreement pertaining to the project
104	104	during which the eligible property used as part of the project is
105	105	subject to a limitation on taxable value.
106	106	(12) "Independent contractor" has the meaning
107	107	assigned by Section 406.121, Labor Code.
108	108	(13) "Investment" means the costs incurred by an
109	109	applicant to acquire or construct eligible property composing an
110	110	eligible project, other than the cost of land or inventory.
111	111	(14) "Oversight committee" means the Jobs, Energy,
112	112	Technology, and Innovation Act Oversight Committee established
113	113	under Section 403.618.
114	114	(15) "Qualified opportunity zone" means an area
115	115	designated as such by the secretary of the United States Treasury.
116	116	(16) "Required job" means a job that an applicant
117	117	commits to create or demonstrate in connection with an eligible
118	118	project as prescribed by Section 403.604.
119	119	(17) "Total jobs" means the sum of required jobs and
120	120	additional jobs in connection with an eligible project.
121	121	Sec. 403.603. EXPIRATION. This subchapter expires December
122	122	31, 2033.
123	123	Sec. 403.604. REQUIRED JOBS AND INVESTMENT. (a) A jobs
124	124	requirement prescribed by this section does not apply to an
125	125	eligible project that is an electric generation facility described
126	126	by Section 403.602(8)(A)(i)(b).
127	127	(b) To be eligible to enter into an agreement, an applicant
128	128	for a limitation on taxable value of eligible property to be used
129	129	for a proposed eligible project must agree to:
130	130	(1) if the project is to be located in a county with a
131	131	population of at least 750,000:
132	132	(A) create at least 75 required jobs by the end of
133	133	the first tax year of the incentive period prescribed by the
134	134	agreement and demonstrate an average of at least that number of jobs
135	135	during each following tax year until the date the agreement
136	136	expires; and
137	137	(B) make an investment in the project in an
138	138	amount of at least $200 million by the end of the first tax year of
139	139	the incentive period prescribed by the agreement;
140	140	(2) if the project is to be located in a county with a
141	141	population of at least 250,000 but less than 750,000:
142	142	(A) create at least 50 required jobs by the end of
143	143	the first tax year of the incentive period prescribed by the
144	144	agreement and demonstrate an average of at least that number of jobs
145	145	during each following tax year until the date the agreement
146	146	expires; and
147	147	(B) make an investment in the project in an
148	148	amount of at least $100 million by the end of the first tax year of
149	149	the incentive period prescribed by the agreement;
150	150	(3) if the project is to be located in a county with a
151	151	population of at least 100,000 but less than 250,000:
152	152	(A) create at least 35 required jobs by the end of
153	153	the first tax year of the incentive period prescribed by the
154	154	agreement and demonstrate an average of at least that number of jobs
155	155	during each following tax year until the date the agreement
156	156	expires; and
157	157	(B) make an investment in the project in an
158	158	amount of at least $50 million by the end of the first tax year of
159	159	the incentive period prescribed by the agreement; or
160	160	(4) if the project is to be located in a county with a
161	161	population of less than 100,000:
162	162	(A) create at least 10 required jobs by the end of
163	163	the first tax year of the incentive period prescribed by the
164	164	agreement and demonstrate an average of at least that number of jobs
165	165	during each following tax year until the date the agreement
166	166	expires; and
167	167	(B) make an investment in the project in an
168	168	amount of at least $20 million by the end of the first tax year of
169	169	the incentive period prescribed by the agreement.
170	170	(c) For purposes of Subsection (b), each required job
171	171	created in connection with an eligible project:
172	172	(1) must be a new full-time job in this state:
173	173	(A) maintained in the usual course and scope of
174	174	the applicant's business, which may be performed by an individual
175	175	who is a trainee under the Texans Work program established under
176	176	Chapter 308, Labor Code; or
177	177	(B) performed by an independent contractor and
178	178	the independent contractor's employees at the site of the project;
179	179	and
180	180	(2) may not be transferred by the applicant from an
181	181	existing facility or location in this state or otherwise created to
182	182	replace an existing job, unless the applicant fills the vacancy
183	183	caused by the transfer.
184	184	(d) For purposes of Subsection (b), an applicant may
185	185	demonstrate that the applicant has met the applicable minimum
186	186	investment requirement by any reasonable means. The applicant is
187	187	considered to have met the applicable minimum investment
188	188	requirement if the most recent appraisal roll for the county used to
189	189	determine the minimum investment requirement under this section
190	190	indicates that the appraised value of the eligible property
191	191	composing the project as of January 1 of the second tax year of the
192	192	incentive period prescribed by the agreement is equal to or greater
193	193	than the minimum investment requirement applicable to the project.
194	194	(e) If an eligible project is located in more than one
195	195	county, the jobs and investment requirement applicable to the
196	196	project is determined using the jobs and investment requirement
197	197	applicable to the county with the smallest population in which any
198	198	part of the project is located.
199	199	(f) The comptroller may adopt rules necessary to interpret
200	200	and administer this section, including rules regarding:
201	201	(1) the manner for determining:
202	202	(A) which jobs and investment requirements
203	203	prescribed by Subsection (b) apply to an eligible project; and
204	204	(B) the circumstances under which a trainee under
205	205	the Texans Work program established under Chapter 308, Labor Code,
206	206	may be considered a full-time employee for purposes of this
207	207	section; and
208	208	(2) the method by which an applicant must demonstrate
209	209	an average of at least the number of required jobs for purposes of
210	210	satisfying the jobs requirement prescribed by Subsection (b).
211	211	Sec. 403.605. TAXABLE VALUE OF ELIGIBLE PROPERTY. (a) The
212	212	taxable value for school district maintenance and operations ad
213	213	valorem tax purposes of eligible property subject to an agreement
214	214	for each tax year of the incentive period prescribed by the
215	215	agreement is equal to:
216	216	(1) 50 percent of the market value of the property for
217	217	that tax year; or
218	218	(2) if the property is located in a qualified
219	219	opportunity zone, 25 percent of the market value of the property for
220	220	that tax year.
221	221	(b) The taxable value of eligible property for school
222	222	district maintenance and operations ad valorem tax purposes is zero
223	223	for each tax year beginning with the tax year following the year in
224	224	which the agreement pertaining to the property is entered into and
225	225	ending December 31 of the tax year that includes the construction
226	226	completion date for the applicable eligible project.
227	227	(c) The chief appraiser for the appraisal district in which
228	228	eligible property is located shall determine the market value and
229	229	appraised value of the property and include the market value,
230	230	appraised value, and taxable value of the property as determined
231	231	under this section in the appraisal records for the appraisal
232	232	district.
233	233	(d) The chief appraiser for the appraisal district in which
234	234	eligible property subject to an agreement is located may not use an
235	235	estimated value included in the application to which the agreement
236	236	pertains to determine the market value of the property.
237	237	Sec. 403.606. CERTAIN PERSONS INELIGIBLE. A person is not
238	238	eligible to submit an application to the comptroller or enter into
239	239	an agreement under this subchapter if the person is a company that
240	240	is listed as ineligible to receive a state contract or investment
241	241	under Chapter 808, 809, 2270, 2271, or 2274, as added by Chapters
242	242	529 (S.B. 13), 530 (S.B. 19), and 975 (S.B. 2116), Acts of the 87th
243	243	Legislature, Regular Session, 2021.
244	244	Sec. 403.607. APPLICATION. (a) A person who proposes to
245	245	construct an eligible project in a school district for which the
246	246	person seeks a limitation on the taxable value for maintenance and
247	247	operations ad valorem tax purposes of the district of the eligible
248	248	property used as part of the proposed project must submit an
249	249	application to the comptroller.
250	250	(b) A person submitting an application under Subsection (a)
251	251	must use the form prescribed by the comptroller. The form must
252	252	contain the following information:
253	253	(1) the applicant's name, address, and Texas taxpayer
254	254	identification number and the contact information for the
255	255	applicant's authorized representative;
256	256	(2) the applicant's form of business and, if
257	257	applicable, the name, address, and Texas taxpayer identification
258	258	number of the applicant's parent entity;
259	259	(3) the applicable school district's name and address
260	260	and the contact information for the district's authorized
261	261	representative;
262	262	(4) the legal description of the property on which the
263	263	project is proposed to be located and, if applicable, the address of
264	264	the proposed project;
265	265	(5) each county in which the project is proposed to be
266	266	located and the population of each of those counties;
267	267	(6) the applicable number of required jobs prescribed
268	268	by Section 403.604 for the proposed project;
269	269	(7) a list of each taxing unit in which the project is
270	270	proposed to be located;
271	271	(8) a brief description of the proposed project;
272	272	(9) any grant or loan of public money or other tax
273	273	incentive, if applicable, that the applicant is receiving or
274	274	expects to receive for the project;
275	275	(10) a brief description of the eligible property to
276	276	be used as part of the proposed project;
277	277	(11) a projected timeline for construction and
278	278	completion of the proposed project, including the projected dates
279	279	on which construction will begin, construction will be completed,
280	280	and commercial operations will start;
281	281	(12) the proposed incentive period;
282	282	(13) the name and location of the existing or proposed
283	283	reinvestment zone or enterprise zone in which the proposed project
284	284	will be located;
285	285	(14) whether the project is proposed to be located in a
286	286	qualified opportunity zone;
287	287	(15) a statement indicating whether the applicant
288	288	considered locating the proposed project in a qualified opportunity
289	289	zone;
290	290	(16) a brief summary of the projected economic
291	291	benefits of the proposed project; and
292	292	(17) the applicant's signature and certification of
293	293	the accuracy of the information included in the application.
294	294	(c) The form prescribed by Subsection (b) must allow the
295	295	applicant to segregate confidential information described by
296	296	Section 403.621(a) from other information in the application.
297	297	(d) An applicant must include with an application the
298	298	following:
299	299	(1) an application fee payable to the comptroller in
300	300	an amount determined by the comptroller not to exceed an amount
301	301	sufficient to cover the costs associated with the comptroller's
302	302	evaluation of the application;
303	303	(2) an application fee payable to the school district
304	304	in an amount determined by the comptroller not to exceed $30,000 to
305	305	cover the costs associated with the district's evaluation of the
306	306	application, including the cost of processing the application,
307	307	retaining professional services, and, if applicable, creating a
308	308	reinvestment zone or enterprise zone;
309	309	(3) a map showing the site of the proposed project;
310	310	(4) the economic benefit statement prepared under
311	311	Section 403.608 in connection with the proposed project; and
312	312	(5) a sworn affidavit stating that the applicant is
313	313	not ineligible under Section 403.606 to submit the application.
314	314	(e) The comptroller may request that an applicant provide
315	315	any additional information the comptroller reasonably determines
316	316	is necessary to complete the comptroller's evaluation of the
317	317	application. The comptroller may require an applicant to submit
318	318	the additional information by a certain date and may extend that
319	319	deadline on a showing of good cause. The comptroller is not
320	320	required to take any further action on an application until it is
321	321	complete.
322	322	(f) The comptroller shall notify an applicant and the
323	323	applicable school district when the applicant's application is
324	324	administratively complete.
325	325	Sec. 403.608. ECONOMIC BENEFIT STATEMENT. (a) An
326	326	applicant shall submit an economic benefit statement with the
327	327	applicant's application.
328	328	(b) An economic benefit statement must include the
329	329	following information for each year of the period that begins on the
330	330	date the applicant projects construction of the proposed project
331	331	that is the subject of the application will begin and ends on the
332	332	25th anniversary of the date the incentive period ends:
333	333	(1) an estimate of the number of total jobs that will
334	334	be created by the project;
335	335	(2) an estimate of the total amount of capital
336	336	investment that will be created by the project;
337	337	(3) an estimate of the increase in appraised value of
338	338	property that will be attributable to the project;
339	339	(4) an estimate of the amount of ad valorem taxes that
340	340	will be imposed by each taxing unit, including the applicable
341	341	school district, on the property used as part of the project;
342	342	(5) an estimate of the amount of state taxes that will
343	343	be paid in connection with the project; and
344	344	(6) an estimate of the associated economic benefits
345	345	that may reasonably be attributed to the project, including:
346	346	(A) the impact on the gross revenues and
347	347	employment levels of local businesses that provide goods or
348	348	services in connection with the project or to the applicant's
349	349	employees;
350	350	(B) the amount of state and local taxes that will
351	351	be generated as a result of the indirect economic impact of the
352	352	project, including all ad valorem taxes not otherwise estimated in
353	353	Subdivision (4) that will be imposed on property placed into
354	354	service as a result of the project;
355	355	(C) the development of complementary businesses
356	356	or industries that locate in this state as a direct consequence of
357	357	the project;
358	358	(D) the total impact of the project on the gross
359	359	domestic product of this state;
360	360	(E) the total impact of the project on personal
361	361	income in this state; and
362	362	(F) the total impact of the project on state and
363	363	local taxes.
364	364	(c) An applicant may use standard economic estimation
365	365	techniques, including economic multipliers, to create an economic
366	366	benefit statement. An applicant must base each estimate required
367	367	by Subsection (b) on reasonable projections of the economic and
368	368	labor conditions of this state for the period for which the estimate
369	369	is made.
370	370	(d) The comptroller shall establish criteria for the
371	371	methodology to be used by an applicant to create an economic benefit
372	372	statement.
373	373	(e) The comptroller may require an applicant to supplement
374	374	or modify an economic benefit statement to ensure the accuracy of
375	375	the estimates required to be included in the statement under
376	376	Subsection (b).
377	377	Sec. 403.609. COMPTROLLER ACTION ON APPLICATION. (a) The
378	378	comptroller shall determine whether to recommend or not recommend
379	379	for approval an application submitted to the comptroller under
380	380	Section 403.607. The comptroller shall recommend an application
381	381	for approval if the comptroller makes the findings prescribed by
382	382	Subsection (b). The comptroller may not recommend an application
383	383	for approval if the comptroller is unable to make the findings
384	384	prescribed by that subsection.
385	385	(b) The comptroller may not recommend an application for
386	386	approval unless the comptroller finds that:
387	387	(1) the proposed project that is the subject of the
388	388	application is an eligible project;
389	389	(2) the proposed project is reasonably likely to
390	390	generate, before the 20th anniversary of the first day of the
391	391	construction period, state or local tax revenue, including ad
392	392	valorem tax revenue attributable to the effect of the project on the
393	393	economy of this state, in an amount sufficient to offset the school
394	394	district maintenance and operations ad valorem tax revenue lost as
395	395	a result of the agreement;
396	396	(3) the agreement is a compelling factor in a
397	397	competitive site selection determination and that, in the absence
398	398	of the agreement, the applicant would not make the proposed
399	399	investment in this state; and
400	400	(4) if the application indicates that the eligible
401	401	project is proposed to be located in a qualified opportunity zone,
402	402	the project is located in the zone.
403	403	(c) In making the finding required by Subsection (b)(3), the
404	404	comptroller shall consider factors related to the selection of the
405	405	proposed site for the project, including the workforce, the
406	406	regulatory environment, infrastructure, transportation, market
407	407	conditions, investment alternatives, and any specific incentive
408	408	information provided by the applicant related to other potential
409	409	sites.
410	410	(d) Not later than the 60th day after the date the
411	411	comptroller determines that an application is complete, the
412	412	comptroller shall take the action required by Subsection (a)
413	413	regarding the application and provide written notice of the action
414	414	to the governor, the school district in which the project is
415	415	proposed to be located, and the applicant.
416	416	(e) The comptroller shall send to the governor and the
417	417	applicable school district with the notice required by Subsection
418	418	(d) regarding an application recommended by the comptroller under
419	419	Subsection (a) a copy of the application and each document and item
420	420	of information the comptroller relied on to recommend the
421	421	application.
422	422	Sec. 403.610. GOVERNOR ACTION ON APPLICATION. (a) The
423	423	governor shall, not later than the 30th day after the date the
424	424	governor receives an application sent to the governor by the
425	425	comptroller under Section 403.609, consider the application and by
426	426	official action determine whether the governor is agreeable to
427	427	entering into the agreement that is the subject of the application.
428	428	(b) The governor shall provide written notice of the
429	429	governor's determination under Subsection (a) to the comptroller,
430	430	the applicable school district, the oversight committee, and the
431	431	applicant not later than the seventh day after the date the governor
432	432	makes the determination under that subsection.
433	433	Sec. 403.611. SCHOOL DISTRICT ACTION ON APPLICATION. (a)
434	434	The governing body of a school district shall, not later than the
435	435	30th day after the date the district receives an application sent to
436	436	the district by the comptroller under Section 403.609, consider the
437	437	application and by official action determine whether the district
438	438	is agreeable to entering into the agreement that is the subject of
439	439	the application.
440	440	(b) The governing body of the school district shall hold a
441	441	public hearing on the application during the period described by
442	442	Subsection (a).
443	443	(c) The governing body of the school district must provide
444	444	notice of the public hearing in the manner required by Chapter 551,
445	445	except that the district must provide the notice not later than the
446	446	15th day before the date of the hearing. The notice must contain:
447	447	(1) the name of the applicant;
448	448	(2) the name and location of the existing or proposed
449	449	reinvestment zone or enterprise zone in which the eligible project
450	450	that is the subject of the application is proposed to be located;
451	451	(3) a general description of the proposed eligible
452	452	project; and
453	453	(4) the projected investment the applicant will make
454	454	in the project.
455	455	(d) The governing body of the school district shall provide
456	456	written notice of the district's determination under Subsection (a)
457	457	to the comptroller, the governor, and the applicant.
458	458	Sec. 403.612. AGREEMENT. (a) The governor, the governing
459	459	body of a school district, and an applicant may enter into an
460	460	agreement to limit the taxable value for maintenance and operations
461	461	ad valorem tax purposes of the district of the eligible property
462	462	used as part of an eligible project that is the subject of an
463	463	application for which both the governor and the governing body of
464	464	the district have made a favorable determination under Sections
465	465	403.610(a) and 403.611(a), respectively.
466	466	(b) An agreement entered into under this section between the
467	467	governor, a school district, and an applicant pertaining to an
468	468	eligible project shall:
469	469	(1) specify the project to which the agreement
470	470	applies;
471	471	(2) specify the term of the agreement, which must:
472	472	(A) begin on the date the agreement is entered
473	473	into; and
474	474	(B) end on December 31 of the third tax year
475	475	following the end of the incentive period;
476	476	(3) specify the construction and incentive periods for
477	477	the project;
478	478	(4) specify the manner for determining the taxable
479	479	value for school district maintenance and operations ad valorem tax
480	480	purposes during the incentive period under Section 403.605 for the
481	481	eligible property subject to the agreement;
482	482	(5) specify the applicable jobs and investment
483	483	requirements prescribed by Section 403.604 and require the
484	484	applicant to comply with those requirements;
485	485	(6) require that the average annual wage paid to all
486	486	persons employed by the applicant in connection with the project
487	487	used to calculate total jobs exceed 110 percent of the average
488	488	annual wage for all jobs in the applicable industry sector during
489	489	the most recent four quarters for which data is available, as
490	490	computed by the Texas Workforce Commission, with the applicant's
491	491	average annual wage being equal to the quotient of:
492	492	(A) the applicant's total wages paid, other than
493	493	wages paid for construction jobs, as reported under Section
494	494	403.616(c)(4); and
495	495	(B) the applicant's number of total jobs as
496	496	reported under Section 403.616(c)(3);
497	497	(7) require the applicant to pay a penalty prescribed
498	498	by Section 403.614 if the applicant fails to comply with an
499	499	applicable jobs or wage requirement;
500	500	(8) require the applicant to offer and contribute to a
501	501	group health benefit plan for each employee of the applicant who is
502	502	employed in a full-time job;
503	503	(9) require the applicant, at the time the applicant
504	504	executes the agreement, to execute a performance bond in an amount
505	505	the comptroller determines to be reasonable and necessary to
506	506	protect the interests of the state and the district and conditioned
507	507	on the applicant's compliance with the terms of the agreement;
508	508	(10) authorize the governor or the district to
509	509	terminate the agreement as provided by Subsection (d); and
510	510	(11) incorporate each relevant provision of this
511	511	subchapter.
512	512	(c) An agreement entered into under this section between the
513	513	governor, a school district, and an applicant pertaining to an
514	514	eligible project must include a provision that states that the
515	515	applicant is prohibited from making a payment to the district
516	516	related to the agreement.
517	517	(d) This subsection applies to a term described by
518	518	Subsection (b)(10). The agreement must provide that:
519	519	(1) the governor or the school district is authorized
520	520	to terminate the agreement if the applicant fails to comply with an
521	521	applicable jobs or wage requirement of the agreement;
522	522	(2) the governor or the district may not terminate the
523	523	agreement until the party provides written notice to the applicant
524	524	of the proposed termination;
525	525	(3) the governor or the district must provide the
526	526	applicant a 180-day period to cure and dispute the alleged failure,
527	527	including through judicial action; and
528	528	(4) in the event the agreement is terminated, the
529	529	state shall recover from the applicant a penalty in an amount equal
530	530	to all lost ad valorem tax revenue from the project and interest on
531	531	that amount calculated as provided by Section 111.060, Tax Code.
532	532	(e) An agreement terminated under Subsection (d) is void,
533	533	and all remaining obligations and benefits under the agreement and
534	534	this subchapter terminate on the date the agreement is terminated.
535	535	(f) The parties to an agreement may modify the terms of the
536	536	agreement that do not materially modify the jobs or investment
537	537	requirements prescribed by the agreement.
538	538	(g) An agreement must be submitted to the comptroller not
539	539	later than the seventh day after the date the agreement is entered
540	540	into. A copy of the economic benefit statement applicable to the
541	541	project that is the subject of the agreement must be attached to the
542	542	agreement.
543	543	(h) The comptroller shall deposit a penalty collected under
544	544	Subsection (d)(4) and any interest on the penalty to the credit of
545	545	the foundation school fund.
546	546	Sec. 403.613. INCENTIVE PERIOD. (a) An incentive period
547	547	pertaining to an eligible project is a period of 10 consecutive tax
548	548	years specified in the agreement pertaining to the project.
549	549	(b) An incentive period may not begin:
550	550	(1) earlier than January 1 of the first tax year
551	551	following the construction completion date; or
552	552	(2) later than January 1 of the first tax year
553	553	following the 10th anniversary of the date the agreement is entered
554	554	into.
555	555	(c) Subject to Subsection (b), the beginning date of an
556	556	incentive period specified in an agreement pertaining to an
557	557	eligible project may be deferred if the applicant projects that the
558	558	applicant will not satisfy the minimum investment requirement
559	559	applicable to the project by the end of the first tax year of the
560	560	incentive period. The incentive period may be deferred until
561	561	January 1 of the second tax year following the construction
562	562	completion date. The deferral of an incentive period under this
563	563	subsection does not affect the date on which the incentive period
564	564	ends as prescribed by the agreement. An applicant that is a party
565	565	to an agreement for which the beginning date of the incentive period
566	566	is deferred as authorized by this subsection must provide notice of
567	567	the deferral to the comptroller. The notice must include the reason
568	568	for the deferral.
569	569	(d) Subject to Subsection (b), an applicant may propose to
570	570	modify the beginning and ending dates of the incentive period as
571	571	provided by this subsection. The applicant shall provide notice of
572	572	the proposed modification to the comptroller, the governor, and the
573	573	school district not later than the 90th day before the first day of
574	574	the incentive period specified in Section 403.612(b)(3) or as
575	575	proposed to be modified, whichever is earlier. The applicant shall
576	576	revise the most recent economic benefit statement as necessary to
577	577	reflect the proposed change to the incentive period. The applicant
578	578	must include the revised economic benefit statement with the notice
579	579	provided to the comptroller, the governor, and the district under
580	580	this subsection. The comptroller shall make the finding required
581	581	by Section 403.609(b)(2) regarding the project as proposed to be
582	582	modified or determine that the finding cannot be made. The
583	583	comptroller shall notify the governor, the district, and the
584	584	applicant of the comptroller's finding or determination not later
585	585	than the 60th day after the date the comptroller receives notice
586	586	from the applicant of the proposed modification. The incentive
587	587	period for the project may not be modified if the comptroller
588	588	determines that the finding required by Section 403.609(b)(2)
589	589	regarding the project as proposed to be modified cannot be made or
590	590	if the governor or the district objects to the proposed
591	591	modification.
592	592	Sec. 403.614. PENALTY FOR FAILURE TO COMPLY WITH JOBS OR
593	593	WAGE REQUIREMENT. (a) An applicant is liable to the state for a
594	594	penalty in the amount computed under this subsection if the
595	595	applicant fails to maintain at least the number of required jobs
596	596	prescribed by the agreement to which the applicant is a party during
597	597	the periods covered by two consecutive reports submitted by the
598	598	applicant under Section 403.616. The amount of the penalty is equal
599	599	to two times the product of:
600	600	(1) the difference between:
601	601	(A) the number of required jobs prescribed by the
602	602	agreement; and
603	603	(B) the number of required jobs actually created
604	604	as stated in the most recent report submitted by the applicant under
605	605	Section 403.616; and
606	606	(2) the average annual wage prescribed by the
607	607	agreement during the most recent four quarters for which data is
608	608	available, as computed by the Texas Workforce Commission.
609	609	(b) An applicant is liable to the state for a penalty in the
610	610	amount computed under this subsection if the applicant fails to
611	611	meet the average annual wage requirement prescribed by the
612	612	agreement to which the applicant is a party, if any, during the
613	613	periods covered by two consecutive reports submitted by the
614	614	applicant under Section 403.616. The amount of the penalty is equal
615	615	to two times the difference between:
616	616	(1) the product of:
617	617	(A) the actual average annual wage paid to all
618	618	persons employed by the applicant in connection with the project
619	619	that is the subject of the agreement as computed under Section
620	620	403.612(b)(6); and
621	621	(B) the number of required jobs prescribed by the
622	622	agreement; and
623	623	(2) the product of:
624	624	(A) the average annual wage prescribed by the
625	625	agreement; and
626	626	(B) the number of required jobs prescribed by the
627	627	agreement.
628	628	(c) Notwithstanding Subsections (a) and (b), the amount of a
629	629	penalty imposed on an applicant under this section may not exceed
630	630	the amount of the ad valorem tax benefit received by the applicant
631	631	under the agreement that is the subject of the penalty.
632	632	(d) An applicant on request of the comptroller shall provide
633	633	to the comptroller a schedule of required jobs created as of the
634	634	date of the request under an agreement to which the applicant is a
635	635	party.
636	636	(e) A determination by the comptroller that an applicant has
637	637	failed to meet the jobs or wage requirement prescribed by an
638	638	agreement to which the applicant is a party is a deficiency
639	639	determination under Section 111.008, Tax Code. A penalty imposed
640	640	under this section is an amount the comptroller is required to
641	641	collect, receive, administer, or enforce and is subject to the
642	642	payment and redetermination requirements of Sections 111.0081 and
643	643	111.009, Tax Code. A redetermination under Section 111.009, Tax
644	644	Code, of a determination under this section is a contested case as
645	645	defined by Section 2001.003 of this code.
646	646	(f) The comptroller shall deposit a penalty collected under
647	647	this section and any interest on the penalty to the credit of the
648	648	foundation school fund.
649	649	Sec. 403.615. AUDIT OF AGREEMENTS BY STATE AUDITOR. (a)
650	650	Each year the state auditor shall select and review at least 10
651	651	percent of the agreements in effect in that year to determine
652	652	whether:
653	653	(1) each agreement accomplishes the purposes of this
654	654	subchapter as expressed in Section 403.601; and
655	655	(2) the terms of each agreement were executed in
656	656	compliance with the terms of this subchapter.
657	657	(b) In determining which agreements to review under
658	658	Subsection (a), the state auditor may consider any risk of
659	659	noncompliance identified in the biennial compliance report
660	660	regarding an agreement submitted to the comptroller under Section
661	661	403.616.
662	662	(c) As part of the review, the state auditor shall make
663	663	recommendations relating to increasing the efficiency and
664	664	effectiveness of the administration of this subchapter. The state
665	665	auditor shall submit the recommendations to the governor,
666	666	comptroller, lieutenant governor, speaker of the house of
667	667	representatives, and oversight committee not later than December 15
668	668	of each year.
669	669	Sec. 403.616. BIENNIAL COMPLIANCE REPORT BY APPLICANT. (a)
670	670	An applicant that is a party to an agreement shall submit a report
671	671	to the comptroller as required by this section using the form
672	672	adopted by the comptroller.
673	673	(b) An applicant must submit a report required by this
674	674	section to the comptroller not later than June 1 of each
675	675	even-numbered year during the term of the agreement that is the
676	676	subject of the report.
677	677	(c) A report required by this section must include the
678	678	following documents and information applicable to the agreement
679	679	that is the subject of the report:
680	680	(1) a certification by the applicant that is a party to
681	681	the agreement that the applicant has met the jobs and investment
682	682	requirements prescribed by the agreement, which must include:
683	683	(A) a sworn affidavit stating:
684	684	(i) the number of required jobs prescribed
685	685	by the agreement; and
686	686	(ii) the number of required jobs actually
687	687	created under the agreement as of December 31 of the preceding two
688	688	years; and
689	689	(B) if applicable, payroll records maintained
690	690	for purposes of 40 T.A.C. Chapter 815;
691	691	(2) the number assigned to the application by the
692	692	comptroller for the agreement, name of the applicant, name of the
693	693	school district, and name of and contact information for the
694	694	applicant's representative;
695	695	(3) the number of total jobs created by the project in
696	696	each of the preceding two years;
697	697	(4) the total wages paid for total jobs, not including
698	698	wages paid for construction jobs, in each of the preceding two
699	699	years;
700	700	(5) the number of construction jobs created by the
701	701	project;
702	702	(6) the total amount of the applicant's investment,
703	703	including any additional amount invested by the applicant after the
704	704	incentive period begins;
705	705	(7) the appraised value of all property composing the
706	706	project for each previous tax year of the agreement;
707	707	(8) the taxable value of all property composing the
708	708	project for each previous tax year of the agreement;
709	709	(9) the amount of school district maintenance and
710	710	operations ad valorem taxes imposed on the property composing the
711	711	project and paid by the applicant for each previous tax year of the
712	712	agreement;
713	713	(10) the amount of school district interest and
714	714	sinking fund ad valorem taxes imposed on the property composing the
715	715	project and paid by the applicant for each previous tax year of the
716	716	agreement;
717	717	(11) the amount of school district ad valorem taxes
718	718	that would have been imposed on the property composing the project
719	719	and paid by the applicant in the absence of the agreement for each
720	720	previous tax year of the agreement; and
721	721	(12) the amount of ad valorem taxes imposed on the
722	722	property composing the project by each taxing unit other than the
723	723	school district and paid by the applicant for each previous tax year
724	724	of the agreement, stated by taxing unit.
725	725	(d) This subsection applies only to a report required to be
726	726	submitted under this section by an applicant for the period that
727	727	includes the first year of the incentive period as prescribed by the
728	728	agreement that is the subject of the report or as deferred. In
729	729	addition to the documents and information described by Subsection
730	730	(c), the applicant must include with the certification required by
731	731	Subsection (c)(1):
732	732	(1) a list of the property tax account numbers
733	733	assigned to the property composing the project;
734	734	(2) the current total appraised value of the property
735	735	composing the project; and
736	736	(3) if applicable, a statement that the incentive
737	737	period was deferred because the applicant did not meet the minimum
738	738	investment requirement prescribed by the agreement before the date
739	739	specified in the agreement.
740	740	Sec. 403.617. BIENNIAL REPORT TO LEGISLATURE. (a) The
741	741	comptroller shall submit to the lieutenant governor, the speaker of
742	742	the house of representatives, and each other member of the
743	743	legislature a report on the agreements entered into under this
744	744	subchapter. The comptroller must submit the report not later than
745	745	December 1 of each even-numbered year.
746	746	(b) The report must include:
747	747	(1) an assessment of the following with regard to the
748	748	agreements entered into under this subchapter, considered in the
749	749	aggregate:
750	750	(A) the total number of jobs created in this
751	751	state;
752	752	(B) the total effect on personal income in this
753	753	state;
754	754	(C) the total amount of investment in this state;
755	755	(D) the total taxable value of property on the
756	756	tax rolls in this state resulting from the agreements, including
757	757	property subject to an agreement that has expired;
758	758	(E) the total value of property subject to
759	759	agreements that have not expired; and
760	760	(F) the total fiscal effect resulting from the
761	761	agreements on this state and on local governments in this state; and
762	762	(2) an assessment of each agreement entered into under
763	763	this subchapter that states for each agreement:
764	764	(A) the number of required jobs prescribed by the
765	765	agreement;
766	766	(B) the number of jobs actually created under the
767	767	agreement, including:
768	768	(i) each job described by Section
769	769	403.604(c)(1)(A);
770	770	(ii) each job described by Section
771	771	403.604(c)(1)(B); and
772	772	(iii) any additional jobs created or
773	773	maintained in connection with the project that is the subject of the
774	774	agreement, if reported by the applicant;
775	775	(C) the number of total jobs created under the
776	776	agreement, if the term of the agreement has expired;
777	777	(D) the amount of the investment specified by the
778	778	agreement;
779	779	(E) the amount of the actual investment made for
780	780	the applicable project before the expiration of the agreement;
781	781	(F) the difference between the amount of ad
782	782	valorem taxes that would have been imposed on the property
783	783	composing the applicable project in the absence of the agreement
784	784	and the amount of ad valorem taxes actually imposed on that property
785	785	during the term of the agreement; and
786	786	(G) the total amount of state and local tax
787	787	revenue attributable to the applicable project during the term of
788	788	the agreement.
789	789	(c) The comptroller may not include in the report
790	790	information that is confidential under law.
791	791	(d) The comptroller may use standard economic estimation
792	792	techniques, including economic multipliers, to prepare the portion
793	793	of the report described by Subsection (b)(1).
794	794	(e) The comptroller may require an applicant to submit
795	795	information required to complete the report on a form prescribed by
796	796	the comptroller.
797	797	Sec. 403.618. JOBS, ENERGY, TECHNOLOGY, AND INNOVATION ACT
798	798	OVERSIGHT COMMITTEE; REPORT. (a) The Jobs, Energy, Technology,
799	799	and Innovation Act Oversight Committee is composed of the following
800	800	seven members:
801	801	(1) three members of the house of representatives
802	802	appointed by the speaker of the house of representatives;
803	803	(2) three members of the senate appointed by the
804	804	lieutenant governor; and
805	805	(3) one member who serves as the chair of the committee
806	806	and who:
807	807	(A) is a member of the house of representatives
808	808	appointed by the speaker of the house of representatives who serves
809	809	only in odd-numbered years; and
810	810	(B) is a member of the senate appointed by the
811	811	lieutenant governor who serves only in even-numbered years.
812	812	(b) At least one member appointed by the speaker of the
813	813	house of representatives and at least one member appointed by the
814	814	lieutenant governor under Subsection (a) must represent a district
815	815	that includes a county with a population of 100,000 or less.
816	816	(c) If a vacancy occurs in the membership of the oversight
817	817	committee, the appropriate appointing authority shall appoint a
818	818	person to fill the vacancy.
819	819	(d) A member of the oversight committee serves at the
820	820	pleasure of the appropriate appointing authority.
821	821	(e) The oversight committee may recommend in a written
822	822	report to the legislature those types of projects that the
823	823	committee determines by majority vote should be statutorily added
824	824	to or removed from the definition of "eligible project" provided by
825	825	Section 403.602.
826	826	Sec. 403.619. CONFLICT OF INTEREST. A person may not,
827	827	directly or indirectly, represent, advise, or provide a service to
828	828	both an applicant and a school district in connection with the same
829	829	application submitted or agreement entered into under this
830	830	subchapter.
831	831	Sec. 403.620. CERTAIN BENEFITS RELATED TO AGREEMENTS
832	832	PROHIBITED; ATTORNEY GENERAL ENFORCEMENT. (a) An employee or
833	833	representative of a school district, a member of the governing body
834	834	of the district, or any other person may not intentionally or
835	835	knowingly solicit, accept, agree to accept, or require any payment
836	836	of money or transfer of property or other thing of value, directly
837	837	or indirectly, to the district, an employee or representative of
838	838	the district, a member of the governing body of the district, or any
839	839	other person in recognition of, anticipation of, or consideration
840	840	for approval of an agreement unless authorized by this subchapter.
841	841	(b) An applicant, an employee or representative of the
842	842	applicant, or any other person may not intentionally or knowingly
843	843	offer, confer, agree to confer, or make a payment of money or
844	844	transfer of property or other thing of value, directly or
845	845	indirectly, to the governor or the school district, an employee or
846	846	representative of the governor or the district, a member of the
847	847	governing body of the district, or any other person in recognition
848	848	of, anticipation of, or consideration for approval of an agreement
849	849	unless authorized by this subchapter.
850	850	(c) If the attorney general receives a written complaint
851	851	from a party to an agreement of a violation of this section, the
852	852	attorney general may bring an action to enforce this section to
853	853	restrain or enjoin a person from continuing or repeating the
854	854	violation. Venue for an action brought under this subsection is in
855	855	a district court in Travis County.
856	856	Sec. 403.621. CONFIDENTIALITY OF CERTAIN BUSINESS
857	857	INFORMATION. (a) Information provided to the comptroller, the
858	858	governor, or a school district by an applicant under this
859	859	subchapter that is a trade secret, as defined by Section 134A.002,
860	860	Civil Practice and Remedies Code, is confidential and not subject
861	861	to disclosure under Chapter 552.
862	862	(b) Payroll records reported under Section 403.616(c)(1)(A)
863	863	or (B) by an applicant to the comptroller are confidential and not
864	864	subject to disclosure under Chapter 552.
865	865	Sec. 403.622. INTERNET POSTING OF INFORMATION. (a)
866	866	Subject to Section 403.621, the comptroller shall post on the
867	867	comptroller's Internet website the following information received
868	868	by the comptroller:
869	869	(1) each application submitted under this subchapter;
870	870	(2) each map and economic benefit statement required
871	871	to be submitted with an application under this subchapter;
872	872	(3) each amendment to an application made under this
873	873	subchapter;
874	874	(4) each agreement entered into under this subchapter;
875	875	and
876	876	(5) each biennial compliance report submitted as
877	877	required under this subchapter.
878	878	(b) Except as provided by Subsection (c), the comptroller
879	879	shall post the information described by Subsection (a) as soon as
880	880	practicable after the date the comptroller receives the
881	881	information.
882	882	(c) The comptroller shall post the information described by
883	883	Subsections (a)(1), (2), and (3) not later than the 10th business
884	884	day after the date the comptroller receives the information.
885	885	(d) The comptroller shall continue to post the information
886	886	required by this section until the date the agreement to which the
887	887	information relates expires.
888	888	(e) The comptroller shall notify the governor and the
889	889	applicable school district of the comptroller's posting of the
890	890	information described by Subsection (a)(5) on the comptroller's
891	891	Internet website.
892	892	Sec. 403.623. RULES AND FORMS. (a) The comptroller shall
893	893	adopt rules necessary to implement and administer this subchapter,
894	894	including rules for:
895	895	(1) determining whether an applicant meets the jobs
896	896	and investment requirements prescribed by Section 403.604; and
897	897	(2) authorizing an applicant or school district to
898	898	submit any form or information required by this subchapter
899	899	electronically.
900	900	(b) The comptroller shall adopt forms necessary to
901	901	implement and administer this subchapter, including the forms to be
902	902	used by an applicant under Sections 403.607 and 403.616.
903	903	(c) The comptroller shall provide without charge one copy of
904	904	the rules and forms adopted under this section to any person that
905	905	states that the person intends to submit an application to the
906	906	comptroller under this subchapter to limit the taxable value of
907	907	eligible property used as part of an eligible project.
908	908	SECTION 2. Section 48.2551(a), Education Code, is amended
909	909	to read as follows:
910	910	(a) In this section:
911	911	(1) "DPV" is the taxable value of property in the
912	912	school district, as determined by the agency by rule, using locally
913	913	determined property values adjusted in accordance with Section
914	914	403.302(d), Government Code;
915	915	(2) "E" is the expiration of the exclusion of
916	916	appraised property value for the preceding tax year that is
917	917	recognized as taxable property value for the current tax year,
918	918	which is the sum of the following:
919	919	(A) property value that is no longer subject to a
920	920	limitation on appraised value under former Subchapter B or C,
921	921	Chapter 313, Tax Code, or a limitation on taxable value under
922	922	Subchapter T, Chapter 403, Government Code; and
923	923	(B) property value under Section 311.013(n), Tax
924	924	Code, that is no longer excluded from the calculation of "DPV" from
925	925	the preceding year because of refinancing or renewal after
926	926	September 1, 2019;
927	927	(3) "MCR" is the district's maximum compressed rate,
928	928	which is the tax rate for the current tax year per $100 of valuation
929	929	of taxable property at which the district must levy a maintenance
930	930	and operations tax to receive the full amount of the tier one
931	931	allotment to which the district is entitled under this chapter;
932	932	(4) "PYDPV" is the district's value of "DPV" for the
933	933	preceding tax year; and
934	934	(5) "PYMCR" is the district's value of "MCR" for the
935	935	preceding tax year.
936	936	SECTION 3. Section 48.256, Education Code, is amended by
937	937	amending Subsections (d) and (e) and adding Subsection (d-1) to
938	938	read as follows:
939	939	(d) This subsection applies to a school district in which
940	940	the board of trustees entered into a written agreement with a
941	941	property owner [under Section 313.027, Tax Code,] for the
942	942	implementation of a limitation on taxable [appraised] value under
943	943	Subchapter T, Chapter 403, Government [B or C, Chapter 313, Tax]
944	944	Code. For purposes of determining "DPV" under Subsection (a) for a
945	945	school district to which this subsection applies, the commissioner
946	946	shall exclude a portion of the market value of property not
947	947	otherwise fully taxable by the district under Subchapter T, Chapter
948	948	403, Government [B or C, Chapter 313, Tax] Code[, before the
949	949	expiration of the subchapter]. The comptroller shall provide
950	950	information to the agency necessary for this subsection.
951	951	(d-1) Subsection (d) applies to an agreement for the
952	952	implementation of a limitation on appraised value under former
953	953	Subchapter B or C, Chapter 313, Tax Code, that was in effect on
954	954	January 1, 2023, in the same manner as that subsection applies to an
955	955	agreement described by that subsection. If the agreement for the
956	956	limitation on appraised value requires a [A] revenue protection
957	957	payment to the school district, the payment [required as part of an
958	958	agreement for a limitation on appraised value] shall be based on the
959	959	district's taxable value of property for the preceding tax year.
960	960	(e) Subsection (d-1) [(d)] does not apply to property that
961	961	was the subject of an application under former Subchapter B or C,
962	962	Chapter 313, Tax Code, made after May 1, 2009, that the comptroller
963	963	recommended should be disapproved.
964	964	SECTION 4. Section 2303.507, Government Code, is amended to
965	965	read as follows:
966	966	Sec. 2303.507. TAX INCREMENT FINANCING AND
967	967	ABATEMENT; LIMITATIONS ON APPRAISED AND TAXABLE
968	968	VALUE. Designation of an area as an enterprise zone is also
969	969	designation of the area as a reinvestment zone for:
970	970	(1) tax increment financing under Chapter 311, Tax
971	971	Code;
972	972	(2) tax abatement under Chapter 312, Tax Code; [and]
973	973	(3) limitations on appraised value under former
974	974	Subchapter B or C, Chapter 313, Tax Code; and
975	975	(4) limitations on taxable value under Subchapter T,
976	976	Chapter 403, of this code.
977	977	SECTION 5. Section 23.03, Tax Code, is amended to read as
978	978	follows:
979	979	Sec. 23.03. COMPILATION OF LARGE PROPERTIES AND PROPERTIES
980	980	SUBJECT TO LIMITATION ON APPRAISED OR TAXABLE VALUE. Each year the
981	981	chief appraiser shall compile and send to the Texas [Department of]
982	982	Economic Development and Tourism Office a list of properties in the
983	983	appraisal district that in that tax year:
984	984	(1) have a market value of $100 million or more; [or]
985	985	(2) are subject to a limitation on appraised value
986	986	under former Subchapter B or C, Chapter 313; or
987	987	(3) are subject to a limitation on taxable value under
988	988	Subchapter T, Chapter 403, Government Code.
989	989	SECTION 6. Section 26.012(6), Tax Code, is amended to read
990	990	as follows:
991	991	(6) "Current total value" means the total taxable
992	992	value of property listed on the appraisal roll for the current year,
993	993	including all appraisal roll supplements and corrections as of the
994	994	date of the calculation, less the taxable value of property
995	995	exempted for the current tax year for the first time under Section
996	996	11.31 or 11.315, except that:
997	997	(A) the current total value for a school district
998	998	excludes:
999	999	(i) the total value of homesteads that
1000	1000	qualify for a tax limitation as provided by Section 11.26; [and]
1001	1001	(ii) new property value of property that is
1002	1002	subject to an agreement entered into under former Subchapter B or C,
1003	1003	Chapter 313; and
1004	1004	(iii) new property value of property that
1005	1005	is subject to an agreement entered into under Subchapter T, Chapter
1006	1006	403, Government Code; and
1007	1007	(B) the current total value for a county,
1008	1008	municipality, or junior college district excludes the total value
1009	1009	of homesteads that qualify for a tax limitation provided by Section
1010	1010	11.261.
1011	1011	SECTION 7. Section 171.602(f), Tax Code, is amended to read
1012	1012	as follows:
1013	1013	(f) The comptroller may not issue a credit under this
1014	1014	section before the later of:
1015	1015	(1) [September 1, 2018; or
1016	1016	[(2)] the expiration of an agreement under former
1017	1017	Subchapter B or C, Chapter 313, regarding the clean energy project
1018	1018	for which the credit is issued; or
1019	1019	(2) the expiration of an agreement under Subchapter T,
1020	1020	Chapter 403, Government Code, regarding the clean energy project
1021	1021	for which the credit is issued.
1022	1022	SECTION 8. Section 312.0025(a), Tax Code, is amended to
1023	1023	read as follows:
1024	1024	(a) Notwithstanding any other provision of this chapter to
1025	1025	the contrary, the governing body of a school district, in the manner
1026	1026	required for official action and for purposes of former Subchapter
1027	1027	B or C, Chapter 313, of this code or Subchapter T, Chapter 403,
1028	1028	Government Code, may designate an area entirely within the
1029	1029	territory of the school district as a reinvestment zone if the
1030	1030	governing body finds that, as a result of the designation and the
1031	1031	granting of a limitation on appraised value under former Subchapter
1032	1032	B or C, Chapter 313, of this code or the granting of a limitation on
1033	1033	taxable value under Subchapter T, Chapter 403, Government Code, for
1034	1034	property located in the reinvestment zone, the designation is
1035	1035	reasonably likely to:
1036	1036	(1) contribute to the expansion of primary employment
1037	1037	in the reinvestment zone; or
1038	1038	(2) attract major investment in the reinvestment zone
1039	1039	that would:
1040	1040	(A) be a benefit to property in the reinvestment
1041	1041	zone and to the school district; and
1042	1042	(B) contribute to the economic development of the
1043	1043	region of this state in which the school district is located.
1044	1044	SECTION 9. The lieutenant governor and the speaker of the
1045	1045	house of representatives shall appoint the initial members of the
1046	1046	Jobs, Energy, Technology, and Innovation Act Oversight Committee
1047	1047	under Sections 403.618(a)(1), (2), and (3)(B), Government Code, as
1048	1048	added by this Act, as soon as practicable after the effective date
1049	1049	of this Act.
1050	1050	SECTION 10. The comptroller of public accounts shall adopt
1051	1051	rules and develop and make available the forms and materials as
1052	1052	required under Section 403.623, Government Code, as added by this
1053	1053	Act, as soon as practicable after the effective date of this
1054	1054	section.
1055	1055	SECTION 11. (a) Except as provided by Subsection (b) of
1056	1056	this section, this Act takes effect January 1, 2024.
1057	1057	(b) Section 10 of this Act takes effect September 1, 2023.
1058	1058	______________________________ ______________________________
1059	1059	President of the Senate Speaker of the House
1060	1060	I certify that H.B. No. 5 was passed by the House on May 5,
1061	1061	2023, by the following vote: Yeas 120, Nays 24, 1 present, not
1062	1062	voting; that the House refused to concur in Senate amendments to
1063	1063	H.B. No. 5 on May 26, 2023, and requested the appointment of a
1064	1064	conference committee to consider the differences between the two
1065	1065	houses; and that the House adopted the conference committee report
1066	1066	on H.B. No. 5 on May 28, 2023, by the following vote: Yeas 100,
1067	1067	Nays 36, 1 present, not voting.
1068	1068	______________________________
1069	1069	Chief Clerk of the House
1070	1070	I certify that H.B. No. 5 was passed by the Senate, with
1071	1071	amendments, on May 24, 2023, by the following vote: Yeas 27, Nays
1072	1072	4; at the request of the House, the Senate appointed a conference
1073	1073	committee to consider the differences between the two houses; and
1074	1074	that the Senate adopted the conference committee report on H.B. No.
1075	1075	5 on May 28, 2023, by the following vote: Yeas 26, Nays 5.
1076	1076	______________________________
1077	1077	Secretary of the Senate
1078	1078	APPROVED: __________________
1079	1079	Date
1080	1080	__________________
1081	1081	Governor