By: Hilderbran	H.B. No. 269

	A BILL TO BE ENTITLED
	AN ACT
	relating to the Texas Economic Development Act.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 313.004, Tax Code, is amended to read as
	follows:
	Sec. 313.004.  LEGISLATIVE INTENT. It is the intent of the
	legislature in enacting this chapter that:
	(1)  economic development decisions should occur at the
	state [local] level with local approval and be consistent with
	identifiable statewide economic development goals;
	(2)  this chapter should not be construed or
	interpreted to allow:
	(A)  property owners to pool investments to create
	sufficiently large investments to qualify for an ad valorem tax
	benefit or financial benefit provided by this chapter;
	(B)  an applicant for an ad valorem tax benefit or
	financial benefit provided by this chapter to assert that jobs will
	be eliminated if certain investments are not made if the assertion
	is not true; or
	(C)  a sole proprietorship, partnership, or
	limited liability partnership to receive an ad valorem tax benefit
	or financial benefit provided by this chapter; and
	(3)  in implementing this chapter, the comptroller
	[school districts] should:
	(A)  strictly interpret the criteria and
	selection guidelines provided by this chapter; and
	(B)  approve only those applications for an ad
	valorem tax benefit or financial benefit provided by this chapter
	that:
	(i)  enhance the local community;
	(ii)  improve the local public education
	system;
	(iii)  create high-paying jobs; and
	(iv)  advance the economic development goals
	of this state as identified by the Texas Strategic Economic
	Development Planning Commission.
	SECTION 2.  Sections 313.021(2) and (4), Tax Code, are
	amended to read as follows:
	(2)  "Qualified property" means:
	(A)  land:
	(i)  that is located in an area designated as
	a reinvestment zone under Chapter 311 or 312 or as an enterprise
	zone under Chapter 2303, Government Code;
	(ii)  on which a person proposes to
	construct a new building or erect or affix a new improvement that
	does not exist before the date the person applies for a limitation
	on appraised value under this subchapter;
	(iii)  that is not subject to a tax abatement
	agreement entered into by a school district under Chapter 312; and
	(iv)  on which, in connection with the new
	building or new improvement described by Subparagraph (ii), the
	owner or lessee of, or the holder of another possessory interest in,
	the land proposes to:
	(a)  make a qualified investment in an
	amount equal to at least the minimum amount required by Section
	313.023; and
	(b)  create at least:
	(1)  100 new jobs, in the case of
	property used in connection with manufacturing, research and
	development, or nuclear electric power generation;
	(2)  25 new jobs, in the case of
	property used in connection with renewable energy electric
	generation; or
	(3)  25 new jobs, in the case of
	property used in connection with another activity;
	(B)  the new building or other new improvement
	described by Paragraph (A)(ii); and
	(C)  tangible personal property that:
	(i)  is not subject to a tax abatement
	agreement entered into by a school district under Chapter 312; and
	(ii)  except for new equipment described in
	Section 151.318(q) or (q-1), is first placed in service in the new
	building or in or on the new improvement described by Paragraph
	(A)(ii), or on the land on which that new building or new
	improvement is located, if the personal property is ancillary and
	necessary to the business conducted in that new building or in or on
	that new improvement.
	(4)  "Qualifying time period" means:
	(A)  the period that begins on the date that a
	person's application for a limitation on appraised value under this
	subchapter is approved by the comptroller [governing body of the
	school district] and ends on December 31 of the second tax year that
	begins after that date, except as provided by Paragraph (B) or (C)
	of this subdivision or Section 313.027(h);
	(B)  in connection with a nuclear electric power
	generation facility, the first seven tax years that begin on or
	after the third anniversary of the date the comptroller [school
	district] approves the property owner's application for a
	limitation on appraised value under this subchapter, unless a
	shorter time period is agreed to by the comptroller [governing body
	of the school district] and the property owner; or
	(C)  in connection with an advanced clean energy
	project, as defined by Section 382.003, Health and Safety Code, the
	first five tax years that begin on or after the third anniversary of
	the date the comptroller [school district] approves the property
	owner's application for a limitation on appraised value under this
	subchapter, unless a shorter time period is agreed to by the
	comptroller [governing body of the school district] and the
	property owner.
	SECTION 3.  Section 313.023, Tax Code, is amended to read as
	follows:
	Sec. 313.023.  MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. (a)
	Except as provided by Subsection (b), for [For] each category of
	school district established by Section 313.022, the minimum amount
	of a qualified investment under Section 313.021(2)(A)(iv)(a) is as
	follows:
	CATEGORY MINIMUM QUALIFIED INVESTMENT
	I $100 million
	II $80 million
	III $60 million
	IV $40 million
	V $20 million
	(b)  For each category of school district established by
	Section 313.022, the minimum amount of a qualified investment under
	Section 313.021(2)(A)(iv)(a) in the case of property used in
	connection with renewable energy electric generation is as follows:
	CATEGORY MINIMUM QUALIFIED INVESTMENT
	I $100 million
	II $80 million
	III $60 million
	IV $40 million
	V $20 million
	SECTION 4.  Section 313.025, Tax Code, is amended by
	amending Subsections (a), (a-1), (b), (b-1), (c), (d), (d-1), (e),
	(f), (f-1), (g), and (i) and adding Subsections (j) and (k) to read
	as follows:
	(a)  The owner or lessee of, or the holder of another
	possessory interest in, any qualified property described by Section
	313.021(2)(A), (B), or (C) may apply to the comptroller [governing
	body of the school district in which the property is located] for a
	limitation on the appraised value for school district maintenance
	and operations ad valorem tax purposes of the person's qualified
	property.  An application must be made on the form prescribed by the
	comptroller and include the information required by the
	comptroller, and it must be accompanied by:
	(1)  the application fee established by the comptroller
	[governing body of the school district];
	(2)  information sufficient to show that the real and
	personal property identified in the application as qualified
	property meets the applicable criteria established by Section
	313.021(2); and
	(3)  information relating to each applicable criterion
	listed in Section 313.026.
	(a-1)  Within seven days of the receipt of each document, the
	comptroller [school district] shall submit to the governing body of
	the school district in which the property is located [comptroller]
	a copy of the application and any proposed [the] agreement between
	the applicant and the comptroller [school district].  If an
	economic analysis of the proposed project is submitted to the
	comptroller [school district], the comptroller [district] shall
	submit a copy of the analysis to the school district [comptroller].
	In addition, the comptroller [school district] shall submit to the
	school district [comptroller] any subsequent revision of or
	amendment to any of those documents within seven days of its
	receipt.  The comptroller shall publish each document received
	[from the school district] under this subsection on the
	comptroller's Internet website.  If the school district maintains a
	generally accessible Internet website, the district shall provide
	on its website a link to the location of those documents posted on
	the comptroller's website in compliance with this subsection.  This
	subsection does not require the comptroller to post information
	that is confidential under Section 313.028.
	(b)  [The governing body of a school district is not required
	to consider an application for a limitation on appraised value that
	is filed with the governing body under Subsection (a).   If the
	governing body of the school district does elect to consider an
	application, the governing body shall deliver three copies of the
	application to the comptroller and request that the comptroller
	provide an economic impact evaluation of the application to the
	school district.]  Except as provided by Subsection (b-1), the
	comptroller shall conduct or contract with a third person to
	conduct an economic impact [the] evaluation of the application,
	which shall be completed and provided to the governing body of the
	school district as soon as practicable.  The governing body shall
	provide to the comptroller or third person any requested
	information.  A methodology to allow comparisons of economic impact
	for different schedules of the addition of qualified investment or
	qualified property may be developed as part of the economic impact
	evaluation.  The comptroller [governing body] shall provide a copy
	of the evaluation to the applicant on request.  [The comptroller may
	charge and collect a fee sufficient to cover the costs of providing
	the economic impact evaluation.]  The comptroller [governing body
	of a school district] shall approve or disapprove an application
	before the 151st day after the date the application is filed, unless
	the recommendation of the governing body [economic impact
	evaluation] has not been received or an extension is agreed to by
	the comptroller [governing body] and the applicant.
	(b-1)  The comptroller shall indicate on a [one] copy of the
	application the date the comptroller received the application and
	deliver that copy to the Texas Education Agency.  The Texas
	Education Agency shall determine the effect that the applicant's
	proposal will have on the number or size of the school district's
	instructional facilities, as required to be included in the
	economic impact evaluation by Section 313.026(a)(12)
	[313.026(a)(9)], and submit a written report containing the
	agency's determination to the comptroller.  The governing body of
	the school district shall provide any requested information to the
	Texas Education Agency.  Not later than the 45th day after the date
	the application indicates that the comptroller received the
	application, the Texas Education Agency shall make the required
	determination and submit the agency's written report to the
	comptroller.  A third person contracted by the comptroller to
	conduct an economic impact evaluation of an application is not
	required to make a determination that the Texas Education Agency is
	required to make and report to the comptroller under this
	subsection.
	(c)  In determining whether to grant an application, the
	comptroller [governing body of the school district] is entitled to
	request and receive assistance from:
	(1)  the governing body of the school district
	[comptroller];
	(2)  the Texas [Department of] Economic Development and
	Tourism Office;
	(3)  the Texas Workforce Investment Council; and
	(4)  the Texas Workforce Commission.
	(d)  Before the 46th day [91st day] after the date the school
	district [comptroller] receives the economic impact evaluation
	[copy of the application], the governing body of the district
	[comptroller] shall submit a recommendation to the comptroller
	[governing body of the school district] as to whether the
	application should be approved or disapproved.
	(d-1)  The comptroller [governing body of a school district]
	may approve an application [that the comptroller has recommended
	should be disapproved] only if[:
	[(1)]  the governing body of the school district
	recommends that the application be approved [holds a public hearing
	the sole purpose of which is to consider the application and the
	comptroller's recommendation; and
	[(2)     at a subsequent meeting of the governing body
	held after the date of the public hearing, at least two-thirds of
	the members of the governing body vote to approve the application].
	(e)  Before approving or disapproving an application under
	this subchapter [that the governing body elects to consider], the
	comptroller [governing body of the school district] must make a
	written finding as to each criterion listed in Section 313.026. The
	comptroller [governing body] shall deliver a copy of those findings
	to the school district and the applicant.
	(f)  The comptroller [governing body] may approve an
	application only if the comptroller [governing body] finds that the
	information in the application is true and correct, finds under
	Subsection (h) that the applicant is eligible for the limitation on
	the appraised value of the person's qualified property, and
	determines that granting the application is in the best interest of
	the school district and this state.
	(f-1)  Notwithstanding any other provision of this chapter
	to the contrary, including Section 313.003(2) or 313.004(3)(A) or
	(B)(iii), the comptroller [governing body of a school district] may
	waive the new jobs creation requirement in Section
	313.021(2)(A)(iv)(b) or 313.051(b) and approve an application if
	the comptroller [governing body] makes a finding that the jobs
	creation requirement exceeds the industry standard for the number
	of employees reasonably necessary for the operation of the facility
	of the property owner that is described in the application.
	(g)  The Texas [Department of] Economic Development and
	Tourism Office or its successor may recommend that the comptroller
	[a school district] grant a person a limitation on appraised value
	under this chapter. In determining whether to grant an
	application, the comptroller [governing body of the school
	district] shall consider any recommendation made by the Texas
	[Department of] Economic Development and Tourism Office or its
	successor.
	(i)  If the comptroller's determination under Subsection (h)
	that the property does not meet the requirements of Section 313.024
	for eligibility for a limitation on appraised value under this
	subchapter becomes final, the comptroller is not required to
	conduct [provide] an economic impact evaluation of the application,
	the governing body of the school district is not required [or] to
	submit a recommendation to the comptroller [school district] as to
	whether the application should be approved or disapproved, and the
	comptroller [governing body of the school district] may not grant
	the application.
	(j)  Unless Subsection (i) applies, if the governing body of
	the school district submits a recommendation to the comptroller
	that the comptroller approve the application and the comptroller
	disapproves the application, the governing body of the school
	district may approve the application if:
	(1)  the property owner requests that the governing
	body approve the application;
	(2)  the governing body holds a public hearing the sole
	purpose of which is to consider the application and the
	comptroller's disapproval of the application; and
	(3)  at a subsequent meeting of the governing body held
	after the date of the public hearing, at least two-thirds of the
	members of the governing body vote to approve the application.
	(k)  If the governing body of the school district approves
	the application under Subsection (j), the governing body of the
	school district and the property owner shall enter into a written
	agreement for the implementation of a limitation on appraised value
	for school district maintenance and operations ad valorem tax
	purposes of the owner's qualified property. The provisions of this
	subchapter governing an agreement between the comptroller and the
	property owner apply to an agreement between the governing body of
	the school district and the property owner.
	SECTION 5.  Section 313.026, Tax Code, is amended to read as
	follows:
	Sec. 313.026.  ECONOMIC IMPACT EVALUATION. (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;
	(2) [(3)]  the name of the applicant;
	(3) [(4)]  the general nature of the applicant's
	investment;
	(4) [(5)]  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;
	(5) an evaluation of [(6)]  the relative level of the
	applicant's investment per qualifying job to be created by the
	applicant;
	(6)  an evaluation of [(7)]  the number of qualifying
	jobs to be created by the applicant;
	(7)  an evaluation of [(8)]  the wages, salaries, and
	benefits to be offered by the applicant to qualifying job holders;
	(8)  an evaluation of [(9)]  the ability of the
	applicant to locate or relocate in another state or another region
	of this state;
	(9)  an evaluation of [(10)]  the impact the project
	will have on this state and individual local units of government,
	including:
	(A)  tax and other revenue gains, direct or
	indirect, that would be realized during the qualifying time period,
	the limitation period, and a period of time after the limitation
	period considered appropriate by the comptroller; and
	(B)  economic effects of the project, including
	the impact on jobs and income, during the qualifying time period,
	the limitation period, and a period of time after the limitation
	period considered appropriate by the comptroller;
	(10) [(11)]  the economic condition of the region of
	the state at the time the person's application is being considered
	and the impact of the project on the region;
	(11) [(12)]  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;
	(12) [(13)]  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;
	(13) [(14)]  the projected market value of the
	qualified property of the applicant as determined by the
	comptroller;
	(14) [(15)]  the proposed limitation on appraised
	value for the qualified property of the applicant;
	(15) [(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;
	(16) [(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 clearly stated;
	(17) [(18)]  the projected effect on the Foundation
	School Program of payments to the district for each year of the
	agreement;
	(18) [(19)]  the projected future tax credits if the
	applicant also applies for school tax credits under Section
	313.103; and
	(19) [(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
	(16) [(17)] from the projected taxes stated in Subdivision (15)
	[(16)].
	(b)  The comptroller's determination [recommendations]
	shall be based on the criteria listed in Subsections (a)(4)-(19)
	[(a)(5)-(20)] 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 6.  Section 313.0265(c), Tax Code, is amended to
	read as follows:
	(c)  If a school district maintains a generally accessible
	Internet website, the district shall maintain a link on its
	Internet website to the area of the comptroller's Internet website
	where information on each of the [district's] agreements to limit
	appraised value entered into by the comptroller on behalf of the
	district is maintained.
	SECTION 7.  Section 313.027, Tax Code, is amended by
	amending Subsections (a), (b), (c), (d), (e), (f), (h), and (i) and
	adding Subsection (b-1) to read as follows:
	(a)  If the person's application is approved by the
	comptroller [governing body of the school district], for each of
	the first eight tax years that begin after the applicable
	qualifying time period, the appraised value for school district
	maintenance and operations ad valorem tax purposes of the person's
	qualified property as described in the agreement between the person
	and the comptroller [district] entered into under this section in
	the school district may not exceed the lesser of:
	(1)  the market value of the property; or
	(2)  subject to Subsection (b), the amount agreed to by
	the comptroller [governing body of the school district].
	(b)  Except as provided by Subsection (b-1), the [The] amount
	agreed to by the comptroller [governing body of a school district]
	under Subsection (a)(2) must be an amount in accordance with the
	following, according to the category established by Section 313.022
	to which the school district belongs:
	CATEGORY MINIMUM AMOUNT OF LIMITATION
	I $100 million
	II $80 million
	III $60 million
	IV $40 million
	V $20 million
	(b-1)  In the case of property used in connection with
	renewable energy electric generation, the amount agreed to by the
	comptroller under Subsection (a)(2) must be an amount in accordance
	with the following, according to the category established by
	Section 313.022 to which the school district belongs:
	CATEGORY MINIMUM AMOUNT OF LIMITATION
	I $100 million
	II $80 million
	III $60 million
	IV $40 million
	V $20 million
	(c)  The limitation amounts listed in Subsections
	[Subsection] (b) and (b-1) are minimum amounts. The comptroller [A
	school district], regardless of the category of the school
	district, may agree to a greater amount than those amounts.
	(d)  The comptroller [governing body of the school district]
	and the property owner shall enter into a written agreement for the
	implementation of the limitation on appraised value under this
	subchapter on the owner's qualified property.  The agreement and
	any amendment to the agreement must be approved by the governing
	body of the school district.
	(e)  The agreement must describe with specificity the
	qualified investment that the person will make on or in connection
	with the person's qualified property that is subject to the
	limitation on appraised value under this subchapter. Other
	property of the person that is not specifically described in the
	agreement is not subject to the limitation unless the comptroller
	[governing body of the school district], by official action,
	provides that the other property is subject to the limitation.
	(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 comptroller [school district];
	(2)  may provide that the property owner will protect
	the school district in the event the district incurs extraordinary
	education-related expenses related to the project that are not
	directly funded in state aid formulas, including expenses for the
	purchase of portable classrooms and the hiring of additional
	personnel to accommodate a temporary increase in student enrollment
	attributable to the project;
	(3)  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;
	(4)  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;
	(5)  may specify any conditions the occurrence of which
	will require the comptroller [district] and the property owner to
	renegotiate all or any part of the agreement; [and]
	(6)  must specify the ad valorem tax years covered by
	the agreement; and
	(7)  must specify the number of qualifying jobs
	required to be created during each year of the agreement.
	(h)  The agreement between the comptroller [governing body
	of the school district] and the applicant may provide for a deferral
	of the date on which the qualifying time period for the project is
	to commence or, subsequent to the date the agreement is entered
	into, be amended to provide for such a deferral.  This subsection
	may not be construed to permit a qualifying time period that has
	commenced to continue for more than the number of years applicable
	to the project under Section 313.021(4).
	(i)  A person and the comptroller [school district] may not
	enter into an agreement under which the person agrees to provide
	supplemental payments to a school district in an amount that
	exceeds an amount equal to $100 per student per year in average
	daily attendance, as defined by Section 42.005, Education Code, or
	for a period that exceeds the period beginning with the period
	described by Section 313.021(4) and ending with the period
	described by Section 313.104(2)(B) of this code.  This limit does
	not apply to amounts described by Subsection (f)(1) or (2) of this
	section.
	SECTION 8.  Section 313.0275(a), Tax Code, is amended to
	read as follows:
	(a)  Notwithstanding any other provision of this chapter to
	the contrary, a person with whom the comptroller [a school
	district] enters into an agreement under this subchapter must make
	the minimum amount of qualified investment during the qualifying
	time period and create the required number of qualifying jobs
	during each year of the agreement.
	SECTION 9.  Section 313.028, Tax Code, is amended to read as
	follows:
	Sec. 313.028.  CERTAIN BUSINESS INFORMATION CONFIDENTIAL.
	Information provided to a school district or the comptroller 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 comptroller [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 comptroller [governing
	body of the school district] agrees to consider the application.
	Information in the custody of a school district or the comptroller
	if the comptroller [governing body] approves the application is not
	confidential under this section.
	SECTION 10.  Section 313.031(b), Tax Code, is amended to
	read as follows:
	(b)  The comptroller [governing body of a school district] by
	official action shall establish reasonable nonrefundable
	application fees to be paid by property owners who apply to the
	comptroller [district] for a limitation on the appraised value of
	the person's property under this subchapter. The amount of an
	application fee must be reasonable and may not exceed the estimated
	cost to the comptroller [district] of processing and acting on an
	application, including the cost of the economic impact evaluation
	required by Sections 313.025 and 313.026.
	SECTION 11.  Section 313.051(b), Tax Code, is amended to
	read as follows:
	(b)  The comptroller [governing body of a school district to
	which this subchapter applies] may enter into an agreement on
	behalf of a school district to which this subchapter applies in the
	same manner as the comptroller may enter into an agreement on behalf
	of 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 100 new jobs on the owner's qualified property if the
	property is used in connection with manufacturing, research and
	development, or nuclear electric power generation, 25 new jobs on
	the owner's qualified property if the property is used in
	connection with renewable energy electric generation, or 25 [10]
	new jobs on the owner's qualified property if the property is used
	in connection with another activity.  At least 80 percent of all the
	new jobs created by the property owner must be qualifying jobs as
	defined by Section 313.021(3), except that, for a school district
	described by Subsection (a)(2), 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 12.  Section 313.053, Tax Code, is amended to read as
	follows:
	Sec. 313.053.  MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. (a)
	Except as provided by Subsection (b), for [For] each category of
	school district established by Section 313.052, the minimum amount
	of a qualified investment under Section 313.021(2)(A)(iv)(a) is as
	follows:
	CATEGORY MINIMUM QUALIFIED INVESTMENT
	I $30 million
	II $20 million
	III $10 million
	IV $5 million
	V $1 million
	(b)  For each category of school district established by
	Section 313.052, the minimum amount of a qualified investment under
	Section 313.021(2)(A)(iv)(a) in the case of property used in
	connection with renewable energy electric generation is as follows:
	CATEGORY MINIMUM QUALIFIED INVESTMENT
	I $30 million
	II $20 million
	III $10 million
	IV $5 million
	V $1 million
	SECTION 13.  Section 313.054, Tax Code, is amended to read as
	follows:
	Sec. 313.054.  LIMITATION ON APPRAISED VALUE. (a) Except as
	provided by Subsection (a-1), for [For] a school district to which
	this subchapter applies, the amount agreed to by the comptroller
	[governing body of the district] under Section 313.027(a)(2) must
	be an amount in accordance with the following, according to the
	category established by Section 313.052 to which the school
	district belongs:
	CATEGORY MINIMUM AMOUNT OF LIMITATION
	I $30 million
	II $20 million
	III $10 million
	IV $5 million
	V $1 million
	(a-1)  In the case of property used in connection with
	renewable energy electric generation, for a school district to
	which this subchapter applies, the amount agreed to by the
	comptroller under Section 313.027(a)(2) must be an amount in
	accordance with the following, according to the category
	established by Section 313.052 to which the school district
	belongs:
	CATEGORY MINIMUM AMOUNT OF LIMITATION
	I $30 million
	II $20 million
	III $10 million
	IV $5 million
	V $1 million
	(b)  The limitation amounts listed in Subsections
	[Subsection] (a) and (a-1) are minimum amounts. The comptroller [A
	school district], regardless of the category of the school
	district, may agree to a greater amount than those amounts.
	SECTION 14.  Section 313.102(a), Tax Code, is amended to
	read as follows:
	(a)  In addition to the limitation on the appraised value of
	the person's qualified property under Subchapter B or C, a person is
	entitled to a tax credit from the school district on behalf of which
	the comptroller [that] approved the limitation in an amount equal
	to the amount of ad valorem taxes paid to that school district that
	were imposed on the portion of the appraised value of the qualified
	property that exceeds the amount of the limitation agreed to by the
	comptroller [governing body of the school district] under Section
	313.027(a)(2) in each year in the applicable qualifying time
	period.
	SECTION 15.  Section 403.302(d), Government Code, as amended
	by Chapters 1186 (H.B. 3676) and 1328 (H.B. 3646), Acts of the 81st
	Legislature, Regular Session, 2009, is reenacted and amended to
	read as follows:
	(d)  For the purposes of this section, "taxable value" means
	the market value of all taxable property less:
	(1)  the total dollar amount of any residence homestead
	exemptions lawfully granted under Section 11.13(b) or (c), Tax
	Code, in the year that is the subject of the study for each school
	district;
	(2)  one-half of the total dollar amount of any
	residence homestead exemptions granted under Section 11.13(n), Tax
	Code, in the year that is the subject of the study for each school
	district;
	(3)  the total dollar amount of any exemptions granted
	before May 31, 1993, within a reinvestment zone under agreements
	authorized by Chapter 312, Tax Code;
	(4)  subject to Subsection (e), the total dollar amount
	of any captured appraised value of property that:
	(A)  is within a reinvestment zone created on or
	before May 31, 1999, or is proposed to be included within the
	boundaries of a reinvestment zone as the boundaries of the zone and
	the proposed portion of tax increment paid into the tax increment
	fund by a school district are described in a written notification
	provided by the municipality or the board of directors of the zone
	to the governing bodies of the other taxing units in the manner
	provided by Section 311.003(e), Tax Code, before May 31, 1999, and
	within the boundaries of the zone as those boundaries existed on
	September 1, 1999, including subsequent improvements to the
	property regardless of when made;
	(B)  generates taxes paid into a tax increment
	fund created under Chapter 311, Tax Code, under a reinvestment zone
	financing plan approved under Section 311.011(d), Tax Code, on or
	before September 1, 1999; and
	(C)  is eligible for tax increment financing under
	Chapter 311, Tax Code;
	(5)  the total dollar amount of any captured appraised
	value of property that:
	(A)  is within a reinvestment zone:
	(i)  created on or before December 31, 2008,
	by a municipality with a population of less than 18,000; and
	(ii)  the project plan for which includes
	the alteration, remodeling, repair, or reconstruction of a
	structure that is included on the National Register of Historic
	Places and requires that a portion of the tax increment of the zone
	be used for the improvement or construction of related facilities
	or for affordable housing;
	(B)  generates school district taxes that are paid
	into a tax increment fund created under Chapter 311, Tax Code; and
	(C)  is eligible for tax increment financing under
	Chapter 311, Tax Code;
	(6)  the total dollar amount of any exemptions granted
	under Section 11.251 or 11.253, Tax Code;
	(7)  the difference between the comptroller's estimate
	of the market value and the productivity value of land that
	qualifies for appraisal on the basis of its productive capacity,
	except that the productivity value estimated by the comptroller may
	not exceed the fair market value of the land;
	(8)  the portion of the appraised value of residence
	homesteads of individuals who receive a tax limitation under
	Section 11.26, Tax Code, on which school district taxes are not
	imposed in the year that is the subject of the study, calculated as
	if the residence homesteads were appraised at the full value
	required by law;
	(9)  a portion of the market value of property not
	otherwise fully taxable by the district at market value because of:
	(A)  action required by statute or the
	constitution of this state that, if the tax rate adopted by the
	district is applied to it, produces an amount equal to the
	difference between the tax that the district would have imposed on
	the property if the property were fully taxable at market value and
	the tax that the district is actually authorized to impose on the
	property, if this subsection does not otherwise require that
	portion to be deducted; or
	(B)  action taken by the district or by the
	comptroller on behalf of the district under Subchapter B or C,
	Chapter 313, Tax Code, before the expiration of the subchapter;
	(10)  the market value of all tangible personal
	property, other than manufactured homes, owned by a family or
	individual and not held or used for the production of income;
	(11)  the appraised value of property the collection of
	delinquent taxes on which is deferred under Section 33.06, Tax
	Code;
	(12)  the portion of the appraised value of property
	the collection of delinquent taxes on which is deferred under
	Section 33.065, Tax Code; and
	(13)  the amount by which the market value of a
	residence homestead to which Section 23.23, Tax Code, applies
	exceeds the appraised value of that property as calculated under
	that section.
	SECTION 16.  Section 403.302(m), Government Code, as added
	by Chapter 1186 (H.B. 3676), Acts of the 81st Legislature, Regular
	Session, 2009, is amended to conform to Section 80, Chapter 1328
	(H.B. 3646), Acts of the 81st Legislature, Regular Session, 2009:
	(m)  Subsection (d)(9) [(d)(10)] does not apply to property
	that was the subject of an application under Subchapter B or C,
	Chapter 313, Tax Code, made after May 1, 2009,  that the comptroller
	recommended should be disapproved.
	SECTION 17.  To the extent of any conflict, this Act prevails
	over another Act of the 82nd Legislature, Regular Session, 2011,
	relating to nonsubstantive additions to and corrections in enacted
	codes.
	SECTION 18.  Section 313.007.  Tax Code, is amended to read
	as follows:
	Section, 313.007.  EXPIRATION.  Subchapters B, C, and D
	expire December 31, 2022 [2014].
	SECTION 19.  Chapter 313, Tax Code, as amended by this Act,
	applies only to an application filed under that chapter on or after
	the effective date of this Act. An application filed under that
	chapter before the effective date of this Act is governed by the law
	in effect on the date the application was filed, and the former law
	is continued in effect for that purpose.
	SECTION 20.  This Act takes effect September 1, 2011.