SRC-AAA S.B. 1409 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1409
By: Sibley
Economic Development
3-26-97
As Filed


DIGEST 

Currently, school district property taxes constitute approximately 60
percent of the taxes paid by a business.  Heavy school property taxes
undermine the state's ability to attract and retain capitalintensive
businesses.  This bill creates the Invest Texas Program to provide school
property tax incentives to certain  capital-intensive companies that meet
specific wage and payroll requirements. 

PURPOSE

As proposed, S.B. 1409 creates the Invest Texas Program to provide school
property tax incentives to certain  capital-intensive companies that meet
specific wage and payroll requirements. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the comptroller in SECTION 2 (Section
313.018, Tax Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 312.005(a), Tax Code, to delete Subdivision (3)
regarding certain information to be included in a report from a taxing
unit.  Makes nonsubstantive changes. 

SECTION 2. Amends the Tax Code, by adding Chapter 313, as follows:

CHAPTER 313. THE INVEST TEXAS ACT

Sec. 313.001. SHORT TITLE:  Invest Texas Act.

Sec. 313.002. DEFINITIONS. Defines "affiliate," "control," "deferred
maintenance," "existing facility," "existing value," "expand,"
"modernize," "new facility," "project," "property owner," and "school
district." 

Sec. 313.003. EXEMPTIONS.  Authorizes an owner of  taxable real property
located in a school district to enter into a contract with the governing
body of the school district, for a certain amount and time.  Provides that
the existing value is not eligible for a tax exemption under this chapter. 

Sec. 313.004. AUTHORITY TO ENTER INTO A CONTRACT.  Sets forth conditions
under which an owner of taxable real property located in a school district
may enter into a contract with the  governing body of the school district. 

Sec. 313.005. AUTHORIZATION OF COMPTROLLER.  Requires a property owner to
receive authorization to enter into a contract under this chapter.  Sets
forth the requirements for the application.  Creates the Invest Texas
Account.  Sets forth the comptroller's duties under this chapter. 

Sec. 313.006. CONFIDENTIALITY OF PROPRIETARY INFORMATION.  Sets forth
certain information to be kept confidential. 

 Sec. 313.007. MANDATORY CONTRACT PROVISIONS.  Sets forth mandatory
contract provisions for a contract under this chapter.  Defines "family
wage job." 

Sec. 313.008. OPTIONAL CONTRACT PROVISIONS. Sets forth optional contract
provisions for a contract under this chapter.   
 
Sec. 313.009.  DETERMINATION BY SCHOOL DISTRICT OF PROPERTY OWNER'S
COMPLIANCE WITH CONTRACT.  Sets forth requirements for determining whether
a property owner is complying with a contract under this chapter. 

Sec. 313.010. ACTION BY SCHOOL DISTRICT ON NONCOMPLIANCE. Requires the
school district to take certain actions for noncompliance by a property
owner. 

Sec. 313.011. DETERMINATION BY COMPTROLLER OF PROPERTY OWNER'S COMPLIANCE
WITH CONTRACT.  Sets forth requirements and procedures for the comptroller
to determine whether a property owner is complying with a contract under
this chapter.  Provides that a determination by the comptroller under this
section does not affect the rights of the property owner under the
contract. 

Sec. 313.012. NOTICE OF CONTRACT.  Sets forth requirements of notice of a
contract. 

Sec. 313.013. LIMITATIONS ON CONTRACT.  Sets forth limitations of a
contract under this chapter. 

Sec. 313.014.  MODIFICATION OR TERMINATION OF CONTRACT.  Sets forth
requirements for modification or termination of a contract under this
chapter.  

Sec. 313.015. COORDINATION WITH CHAPTER 312, TAX CODE.  Sets forth
requirements for a property owner to enter into a contract under this
chapter, if the property owner is subject to a school tax abatement
agreement under Chapter 312, Tax Code. 

Sec. 313.016. EVALUATION AND ANNUAL REPORT.  Requires the comptroller on
or before November 1 of each even-numbered year to prepare and deliver a
report on certain items.  Authorizes the comptroller to prescribe the form
for information gathering. 

Sec. 313.017. PROMOTION AND MARKETING OF INVEST TEXAS PROGRAM. Requires
the comptroller and the Texas Department of Commerce to jointly promote
the program created under this chapter. 

Sec. 313.018. RULES AND FORMS.  Requires the comptroller to adopt rules
and forms for the administration of this chapter and sets forth the
requirements of the rules. 

Sec. 313.019. EXPIRATION DATE.  Provides that this chapter expires
September 1, 2001, if not continued in effect. 

SECTION 3. Amends Section 41.009(b), Education Code, to make a conforming
change. 

SECTION 4. Amends Section 403.302(d), Government Code, to make a
conforming change. 

SECTION 5.   Repealer: Chapter 111F, Tax Code (Tax refund for economic
development). 

SECTION 6 Makes application of this Act prospective.

SECTION 7. Effective date: September 1, 1997.

SECTION 8. Emergency clause.