79R1806 SMH-D
By: Deshotel H.B. No. 289
A BILL TO BE ENTITLED
AN ACT
relating to a requirement that jobs created as a condition for
receipt of an ad valorem tax abatement or a limitation on the
appraised value of property for ad valorem tax purposes be filled by
local residents.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 312.005(a), Tax Code, is amended to read
as follows:
(a) The comptroller shall maintain a central registry of
reinvestment zones designated under this chapter and of ad valorem
tax abatement agreements executed under this chapter. The chief
appraiser of each appraisal district that appraises property for a
taxing unit that has designated a reinvestment zone or executed a
tax abatement agreement under this chapter shall deliver to the
comptroller before July 1 of the year following the year in which
the zone is designated or the agreement is executed a report
providing the following information:
(1) for a reinvestment zone, a general description of
the zone, including its size, the types of property located in it,
its duration, and the guidelines and criteria established for the
reinvestment zone under Section 312.002, including subsequent
amendments and modifications of the guidelines or criteria;
(2) a copy of each tax abatement agreement to which a
taxing unit that participates in the appraisal district is a party
and a statement of whether the agreement is subject to Section
312.212 or 312.402(g); and
(3) any other information required by the comptroller
to administer this section and Subchapter F, Chapter 111.
SECTION 2. Subchapter B, Chapter 312, Tax Code, is amended
by adding Section 312.212 to read as follows:
Sec. 312.212. EMPLOYMENT OF COUNTY RESIDENTS. (a) If a tax
abatement agreement entered into on or after September 1, 2005,
requires a property owner to create a specified number of new jobs,
the owner:
(1) must:
(A) attempt to fill the jobs to be created by
employing residents of the county in which the reinvestment zone is
located; and
(B) request and is entitled to receive employment
assistance services offered by the Texas Workforce Commission in
locating residents of the county in which the reinvestment zone is
located to fill the jobs to be created; and
(2) may not employ a person who is not a resident of
the county in which the reinvestment zone is located to fill a job
to be created unless the owner is unable with the assistance of the
commission to locate a resident of that county to fill that job.
(b) Subsection (a) applies to the employment of the persons
to initially fill the jobs to be created under a tax abatement
agreement as well as to the employment during the term of the
agreement of any persons to subsequently fill those jobs.
(c) Not later than May 1 of each year, the comptroller shall
conduct an audit to determine whether a property owner who is a
party to a tax abatement agreement described by Subsection (a) is in
compliance with that subsection and shall report the results of the
audit in writing to the owner and to the governing body of the
taxing unit that is a party to the agreement. The owner shall
reimburse the comptroller for the costs incurred by the comptroller
in conducting the audit and making the report of the audit. The
owner or the taxing unit may protest the comptroller's findings in
the audit. If the owner or the taxing unit protests the
comptroller's findings, the comptroller shall give notice and hold
a hearing at which the owner and the taxing unit may present
evidence and oral argument. The comptroller has the burden to prove
the accuracy of the audit. Following the hearing, the comptroller
shall notify the owner and the taxing unit of the comptroller's
decision on the protest. The comptroller shall adopt procedural
rules to implement this subsection. Judicial review of the
decision on the protest is instituted by filing a petition as
provided by Subchapter G, Chapter 2001, Government Code, and is
under the substantial evidence rule.
(d) If the comptroller determines in an audit under
Subsection (c) that a property owner is not in compliance with
Subsection (a), the taxing unit that is a party to the agreement may
terminate the agreement and bring an action to recapture all or a
portion of the property tax revenue lost in the preceding tax year
as a result of the agreement.
SECTION 3. Section 312.402, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) Section 312.212 applies to an agreement made by a county
or other taxing unit under this section in the same manner as it
applies to an agreement made by a municipality or other taxing unit
under Subchapter B.
SECTION 4. Subchapter B, Chapter 313, Tax Code, is amended
by adding Section 313.032 to read as follows:
Sec. 313.032. EMPLOYMENT OF COUNTY RESIDENTS. (a) The
owner of qualified property that is subject to an agreement entered
into on or after September 1, 2005, implementing a limitation on
appraised value under this subchapter:
(1) must:
(A) attempt to fill the jobs to be created on the
property by employing residents of the county in which the property
is located; and
(B) request and is entitled to receive employment
assistance services offered by the Texas Workforce Commission in
locating residents of the county in which the property is located to
fill the jobs to be created; and
(2) may not employ a person who is not a resident of
the county in which the property is located to fill a job to be
created unless the owner is unable with the assistance of the
commission to locate a resident of that county to fill that job.
(b) Subsection (a) applies to the employment of the persons
to initially fill the jobs to be created under an agreement
implementing a limitation on appraised value under this subchapter
as well as to the employment during the term of the agreement of any
persons to subsequently fill those jobs.
(c) Not later than May 1 of each year, the comptroller shall
conduct an audit to determine whether a property owner who is a
party to an agreement implementing a limitation on appraised value
under this subchapter is in compliance with Subsection (a) and
shall report the results of the audit in writing to the owner and to
the governing body of the school district that is a party to the
agreement. The owner shall reimburse the comptroller for the costs
incurred by the comptroller in conducting the audit and making the
report of the audit. The owner or the school district may protest
the comptroller's findings in the audit. If the owner or the school
district protests the comptroller's findings, the comptroller
shall give notice and hold a hearing at which the owner and the
school district may present evidence and oral argument. The
comptroller has the burden to prove the accuracy of the audit.
Following the hearing, the comptroller shall notify the owner and
the school district of the comptroller's decision on the protest.
The comptroller shall adopt procedural rules to implement this
subsection. Judicial review of the decision on the protest is
instituted by filing a petition as provided by Subchapter G,
Chapter 2001, Government Code, and is under the substantial
evidence rule. The comptroller shall prescribe procedures that
require school districts to provide the comptroller with a copy of
each agreement implementing a limitation on appraised value under
this subchapter and other information the comptroller requires to
conduct audits under this subsection.
(d) If the comptroller determines in an audit under
Subsection (c) that a property owner is not in compliance with
Subsection (a), the school district that is a party to the agreement
may terminate the agreement and bring an action to recapture the ad
valorem tax revenue lost in the preceding tax year as a result of
the agreement.
SECTION 5. This Act takes effect September 1, 2005.