79R12680 SMH-D


By:  Swinford                                                     H.B. No. 2675

Substitute the following for H.B. No. 2675:                                   

By:  Edwards                                                  C.S.H.B. No. 2675



A BILL TO BE ENTITLED

AN ACT

relating to eligibility for the limitation on appraised value of 
property for school district maintenance and operations ad valorem 
tax purposes under the Texas Economic Development Act.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 313.024(a) and (b), Tax Code, are 
amended to read as follows:
	(a)  This subchapter and Subchapters C and D apply only to 
property owned by an entity [a corporation or limited liability 
company] to which Chapter 171 [Section 171.001] applies.
	(b)  To be eligible for a limitation on appraised value under 
this subchapter, the entity [corporation or limited liability 
company] must use the property in connection with:
		(1)  manufacturing;                                                           
		(2)  research and development; or                                             
		(3)  renewable energy electric generation.                                    
	SECTION 2.  Section 313.051, Tax Code, is amended by 
amending Subsections (a) and (b) and adding Subsection (a-1) to 
read as follows:
	(a)  This subchapter applies only to a school district that 
has territory in:
		(1)  a strategic investment area, as defined by Section 
171.721; [, Tax Code,] or
		(2)  [in] a county:                                   
			(A) [(1)]  that has a population of less than 
50,000;
			(B) [(2)]  that is not partially or wholly located 
in a metropolitan statistical area; and
			(C) [(3)]  in which, from 1990 to 2000, according 
to the federal decennial census, the population:
				(i) [(A)]  remained the same;                       
				(ii) [(B)]  decreased; or                           
				(iii) [(C)]  increased, but at a rate of not 
more than three percent per annum.
	(a-1)  Notwithstanding Subsection (a), if on January 1, 
2002, this subchapter applied to a school district in whose 
territory is located a federal nuclear facility, this subchapter 
continues to apply to the school district regardless of whether the 
school district ceased or ceases to be described by Subsection (a) 
after that date.
	(b)  The governing body of a school district to which this 
subchapter applies may enter into an agreement in the same manner as 
a school district to which Subchapter B applies may do so under 
Subchapter B, subject to Sections 313.052-313.054.  Except as 
otherwise provided by this subchapter, the provisions of Subchapter 
B apply to a school district to which this subchapter applies.  For 
purposes of this subchapter, a property owner is required to create 
only at least 10 new jobs on the owner's qualified property.  At 
least 80 percent of all the new jobs created must be qualifying jobs 
as defined by Section 313.021(3), except that, for a school 
district described by Subsection (a)(2) of this section, each 
qualifying job must pay at least 110 percent of the average weekly 
wage for manufacturing jobs in the region designated for the 
regional planning commission, council of governments, or similar 
regional planning agency created under Chapter 391, Local 
Government Code, in which the district is located.
	SECTION 3.  Section 313.051(b), Tax Code, as amended by this 
Act, applies only to a limitation on the appraised value for school 
district maintenance and operations ad valorem tax purposes for 
which the owner files an application on or after the effective date 
of this Act.  A limitation on the appraised value for school 
district maintenance and operations ad valorem tax purposes for 
which the owner files an application before the effective date of 
this Act is governed by the law as it existed immediately before the 
effective date of this Act, and that law is continued in effect for 
that purpose.
	SECTION 4.  This Act takes effect September 1, 2005.