| 1 | 1 | | By: King S.B. No. 2322 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | A BILL TO BE ENTITLED |
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| 7 | 7 | | AN ACT |
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| 8 | 8 | | relating to the applicability of the compelling factor test within |
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| 9 | 9 | | the Texas Jobs, Energy, Technology, and Innovation Act. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 403.609(b), Government Code, is amended |
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| 12 | 12 | | to read as follows: |
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| 13 | 13 | | Sec. 403.609. COMPTROLLER ACTION ON APPLICATION. (a) The |
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| 14 | 14 | | comptroller shall determine whether to recommend or not recommend |
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| 15 | 15 | | for approval an application submitted to the comptroller under |
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| 16 | 16 | | Section 403.607. The comptroller shall recommend an application |
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| 17 | 17 | | for approval if the comptroller makes the findings prescribed by |
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| 18 | 18 | | Subsection (b). The comptroller may not recommend an application |
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| 19 | 19 | | for approval if the comptroller is unable to make the findings |
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| 20 | 20 | | prescribed by that subsection. |
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| 21 | 21 | | (b) The comptroller may not recommend an application for |
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| 22 | 22 | | approval unless the comptroller finds that: |
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| 23 | 23 | | (1) the proposed project that is the subject of the |
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| 24 | 24 | | application is an eligible project; |
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| 25 | 25 | | (2) the proposed project is reasonably likely to |
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| 26 | 26 | | generate, before the 20th anniversary of the first day of the |
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| 27 | 27 | | construction period, state or local tax revenue, including ad |
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| 28 | 28 | | valorem tax revenue attributable to the effect of the project on the |
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| 29 | 29 | | economy of this state, in an amount sufficient to offset the school |
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| 30 | 30 | | district maintenance and operations ad valorem tax revenue lost as |
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| 31 | 31 | | a result of the agreement; |
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| 32 | 32 | | (3) for a project described by Section |
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| 33 | 33 | | 403.602(8)(A)(i)(a), (c), (d) or (ii), the agreement is a |
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| 34 | 34 | | compelling factor in a competitive site selection determination and |
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| 35 | 35 | | that, in the absence of the agreement, the applicant would not make |
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| 36 | 36 | | the proposed investment in this state; and |
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| 37 | 37 | | (4) if the application indicates that the eligible |
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| 38 | 38 | | project is proposed to be located in a qualified opportunity zone, |
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| 39 | 39 | | the project is located in the zone. |
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| 40 | 40 | | (c) In making the finding required by Subsection (b)(3), the |
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| 41 | 41 | | comptroller shall consider factors related to the selection of the |
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| 42 | 42 | | proposed site for the project, including the workforce, the |
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| 43 | 43 | | regulatory environment, infrastructure, transportation, market |
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| 44 | 44 | | conditions, investment alternatives, and any specific incentive |
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| 45 | 45 | | information provided by the applicant related to other potential |
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| 46 | 46 | | sites. |
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| 47 | 47 | | (d) Not later than the 60th day after the date the |
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| 48 | 48 | | comptroller determines that an application is complete, the |
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| 49 | 49 | | comptroller shall take the action required by Subsection (a) |
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| 50 | 50 | | regarding the application and provide written notice of the action |
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| 51 | 51 | | to the governor, the school district in which the project is |
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| 52 | 52 | | proposed to be located, and the applicant. |
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| 53 | 53 | | (e) The comptroller shall send to the governor and the |
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| 54 | 54 | | applicable school district with the notice required by Subsection |
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| 55 | 55 | | (d) regarding an application recommended by the comptroller under |
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| 56 | 56 | | Subsection (a) a copy of the application and each document and item |
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| 57 | 57 | | of information the comptroller relied on to recommend the |
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| 58 | 58 | | application. |
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| 59 | 59 | | SECTION 2. This Act takes effect September 1, 2025. |
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