81R6272 JE-D

By: Kolkhorst H.B. No. 1274

A BILL TO BE ENTITLED

AN ACT

relating to the availability and reporting of certain information regarding applications under the Texas Economic Development Act to the public and the state.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 313.025, Tax Code, is amended by adding Subsection (a-1) and amending Subsection (f) to read as follows:

(a-1) If the school district maintains a generally accessible Internet website, the district shall post on that site each application received under Subsection (a) and any information in the possession of the district that relates to an application. The application must be posted before the 15th day after the date the application was received. Information relating to an application must be posted before the 15th day after the date the information was received or created by the district. This subsection does not require a school district to post information that is confidential business information under Section 313.028.

(f) The governing body may approve an application only if:

(1) the comptroller recommends approval of the application in the economic impact evaluation provided under Subsection (b);

(2) in the event that the school district maintains a generally accessible Internet website, the district has posted on that site, for at least 30 consecutive days, each document or item of information designated by the comptroller under Sections 313.0265(d)(1), (2), and (4);

(3) the comptroller has posted on the comptroller's Internet website, for at least 30 consecutive days, each document or item of information designated by the comptroller under Sections 313.0265(d)(1), (2), and (4); and

(4) the governing body:

(A) finds that the information in the application is true and correct;

(B) [,] finds that the applicant is eligible for the limitation on the appraised value of the person's qualified property; and

(C) [, and] determines that granting the application is in the best interest of the school district and this state.

SECTION 2. Sections 313.026(a) and (b), Tax Code, are amended to read as follows:

(a) The economic impact evaluation of the application must include the following:

(1) the recommendations of the comptroller;

(2) the name of the school district;

(3) the name of the applicant;

(4) the general nature of the applicant's investment;

(5) [(2)] the relationship between the applicant's industry and the types of qualifying jobs to be created by the applicant to the long-term economic growth plans of this state as described in the strategic plan for economic development submitted by the Texas Strategic Economic Development Planning Commission under Section 481.033, Government Code, as that section existed before February 1, 1999;

(6) [(3)] the relative level of the applicant's investment per qualifying job to be created by the applicant;

(7) the number of qualifying jobs to be created by the applicant;

(8) [(4)] the wages, salaries, and benefits to be offered by the applicant to qualifying job holders;

(9) [(5)] the ability of the applicant to locate or relocate in another state or another region of this state;

(10) [(6)] the impact the added infrastructure will have on the region, including:

(A) revenue gains that would be realized by the school district; and

(B) subsequent economic effects on the local and regional tax bases;

(11) [(7)] the economic condition of the region of the state at the time the person's application is being considered;

(12) [(8)] the number of new facilities built or expanded in the region during the two years preceding the date of the application that were eligible to apply for a limitation on appraised value under this subchapter; [and]

(13) [(9)] the effect of the applicant's proposal, if approved, on the number or size of the school district's instructional facilities, as defined by Section 46.001, Education Code;

(14) the projected market value of the qualified property of the applicant as determined by the comptroller;

(15) the proposed limitation on appraised value for the qualified property of the applicant;

(16) the projected dollar amount of the taxes that would be imposed on the qualified property, for each year of the agreement, if the property does not receive a limitation on appraised value with assumptions of the projected appreciation or depreciation of the investment and projected tax rates clearly stated;

(17) the projected dollar amount of the taxes that would be imposed on the qualified property, for each tax year of the agreement, if the property receives a limitation on appraised value with assumptions of the projected appreciation or depreciation of the investment and projected tax rates clearly stated;

(18) the projected effect on Foundation School Program payments to the district for each year of the agreement;

(19) the projected future tax credits if the applicant also applies for school tax credits under Section 313.103; and

(20) the total amount of taxes projected to be lost or gained by the district over the life of the agreement computed by subtracting the projected taxes stated in Subdivision (17) from the projected taxes stated in Subdivision (16).

(b) The comptroller's recommendations shall be based on the criteria listed in Subsections (a)(2)-(20) [(a)(2)-(9)] and on any other information available to the comptroller, including information provided by the governing body of the school district under Section 313.025(b).

SECTION 3. Subchapter B, Chapter 313, Tax Code, is amended by adding Section 313.0265 to read as follows:

Sec. 313.0265. DISCLOSURE OF APPRAISED VALUE LIMITATION INFORMATION. (a) If a school district maintains a generally accessible Internet website, the district shall post each document or item of information concerning appraised value limitations under this subchapter and school tax credits under Subchapter D that the comptroller designates as substantive before the 15th day after the date the document or item of information was received or created.

(b) Each document or item of information posted under Subsection (a) must continue to be posted until the appraised value limitation expires or the school district no longer maintains the website.

(c) The comptroller shall post on the comptroller's Internet website each document or item of information the comptroller designates as substantive before the 15th day after the date the document or item of information was received or created. Each document or item of information must continue to be posted until the appraised value limitation expires. The posting must be on a web page that is not more than three mouse clicks from the comptroller's home page.

(d) The comptroller shall designate the following as substantive:

(1) each application requesting a limitation on appraised value;

(2) the economic impact evaluation made in connection with the application;

(3) all information provided by the owner of the property to the school district and the comptroller under Section 313.027(f)(3-c); and

(4) each application requesting school tax credits under Section 313.103.

(e) The comptroller by rule shall determine the requirements for districts to post on their Internet websites the documents provided under Subsection (a) and shall provide a link on the comptroller's website to all school districts' appraised value limitation postings.

(f) The comptroller and the Texas Education Agency shall annually certify that districts comply with the posting requirements of Subsection (b).

SECTION 4. Section 313.027(f), Tax Code, is amended to read as follows:

(f) In addition, the agreement:

(1) must incorporate each relevant provision of this subchapter and, to the extent necessary, include provisions for the protection of future school district revenues through the adjustment of the minimum valuations, the payment of revenue offsets, and other mechanisms agreed to by the property owner and the school district;

(2) must require the property owner to maintain a viable presence in the school district for at least three years after the date the limitation on appraised value of the owner's property expires;

(3) must provide for the termination of the agreement, the recapture of ad valorem tax revenue lost as a result of the agreement if the owner of the property fails to comply with the terms of the agreement, and payment of a penalty or interest, or both, on that recaptured ad valorem tax revenue;

(3-a) must specify explicit performance targets for each year of the agreement, including:

(A) the amount of qualifying investment the owner of the property commits to expend or allocate;

(B) the number of qualifying jobs the owner of the property commits to create; and

(C) the average wage or salary to be offered by the owner of the property to qualifying job holders;

(3-b) must require the owner of the property to compensate the school district for failure to attain the performance targets specified under Subdivisions (3-a)(B) and (C);

(3-c) must require the owner of the property to provide the school district and the comptroller with an annual progress report containing the information compiled during the previous calendar year regarding the attainment of each of the performance targets specified under Subdivisions (3-a)(B) and (C);

(3-d) must prohibit the school district from assigning any payments or benefits received from or on behalf of the property owner to any other party;

(4) may specify any conditions the occurrence of which will require the district and the property owner to renegotiate all or any part of the agreement; and

(5) must specify the ad valorem tax years covered by the agreement.

SECTION 5. Subchapter B, Chapter 313, Tax Code, is amended by adding Section 313.0275 to read as follows:

Sec. 313.0275. COMPUTATION OF RECAPTURE OF AD VALOREM TAX REVENUE LOST. (a) The total amount of the recapture payment to which a school district is entitled under this section in any year is computed by:

(1) subtracting a number equal to the number of persons holding a qualifying job in that year created by the owner of the property from the number of qualifying jobs the owner of the property committed to create under Section 313.027(f)(3-a)(B) in that year or over the life of the agreement, as applicable; and

(2) multiplying the result by the average wage or salary the owner of the property committed to offer to qualifying job holders under Section 313.027(f)(3-a)(C).

(b) The total amount of the recapture payment in a calendar year may not exceed an amount computed by dividing the amount computed under Section 313.026(a)(20) by the number of years in the life of the agreement.

SECTION 6. Section 313.028, Tax Code, is amended to read as follows:

Sec. 313.028. CERTAIN BUSINESS INFORMATION CONFIDENTIAL. Information provided to a school district in connection with an application for a limitation on appraised value under this subchapter that describes the specific processes or business activities to be conducted or the specific tangible personal property to be located on real property covered by the application shall be segregated in the application from other information in the application and is confidential and not subject to public disclosure unless the governing body of the school district approves the application. Other information in the custody of a school district or the comptroller in connection with the application, including information related to the economic impact of a project or the essential elements of eligibility under this chapter, such as the nature and amount of the projected investment, employment, wages, and benefits, may not be considered confidential business information if the governing body of the school district agrees to consider the application. Information in the custody of a school district or the comptroller if the governing body approves the application is not confidential under this section.

SECTION 7. Section 313.103, Tax Code, is amended to read as follows:

Sec. 313.103. APPLICATION. (a) An application for a tax credit under this subchapter must be made to the governing body of the school district to which the ad valorem taxes were paid. The application must be:

(1) made on the form prescribed for that purpose by the comptroller and verified by the applicant;

(2) accompanied by:

(A) a tax receipt from the collector of taxes for the school district showing full payment of school district ad valorem taxes on the qualified property for the applicable qualifying time period; and

(B) any other document or information that the comptroller or the governing body considers necessary for a determination of the applicant's eligibility for the credit or the amount of the credit; and

(3) filed before September 1 of the year immediately following the applicable qualifying time period.

(b) An application for a tax credit under this subchapter or any information provided by the school district to the Texas Education Agency under Section 42.2515, Education Code, is not confidential.

SECTION 8. Section 42.2515, Education Code, is amended by amending Subsection (a) and adding Subsections (c) and (d) to read as follows:

(a) Subject to Subsection (c), for [For] each school year, a school district, including a school district that is otherwise ineligible for state aid under this chapter, is entitled to state aid in an amount equal to the amount of all tax credits credited against ad valorem taxes of the district in that year under Subchapter D, Chapter 313, Tax Code.

(c) In determining the amount of the tax credits credited against ad valorem taxes of a school district under Subsection (a) in a school year, the commissioner may not take into account any tax credit granted to a person if the district does not comply with the posting requirements of Section 313.0265(b), Tax Code.

(d) A determination by the commissioner under this section is final and may not be appealed.

SECTION 9. Subchapter E, Chapter 42, Education Code, is amended by adding Section 42.25151 to read as follows:

Sec. 42.25151. ADJUSTMENT FOR RECAPTURED TAXES LOST ASSOCIATED WITH AGREEMENTS UNDER TEXAS ECONOMIC DEVELOPMENT ACT. (a) In this section, "recapture payment" means a payment by an owner of property to a school district as required by Section 313.027(f)(3-b), Tax Code.

(b) Notwithstanding Section 42.2516, the commissioner shall for any school year:

(1) reduce the amounts due to a school district under this chapter by an amount equal to all recapture payments received during that school year by the district; or

(2) increase the amounts necessary for a school district to comply with the requirements of Chapter 41 by an amount equal to all recapture payments received during that school year by the district.

(c) A school district shall report each recapture payment through the Public Education Information Management System (PEIMS).

(d) The commissioner, in consultation with the comptroller, as appropriate, may adopt rules necessary to implement this section.

SECTION 10. The change in law made by this Act applies only to an application under Chapter 313, Tax Code, filed on or after the effective date of this Act. An application under that chapter filed before the effective date of this Act is governed by the law in effect immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 11. This Act takes effect September 1, 2009.