By: Deuell	S.B. No. 1647

	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 313.002, Tax Code, is amended to read as
	follows:
	Sec. 313.002.  FINDINGS. The legislature finds that:
	(1)  many states have enacted aggressive economic
	development laws designed to attract large employers, create jobs,
	and strengthen their economies;
	(2)  given Texas' relatively high property taxes, it is
	difficult for the state to compete for new capital projects without
	some type of temporary limits on property taxes levied on new
	investment [the State of Texas has slipped in its national ranking
	each year between 1993 and 2000 in terms of attracting major new
	manufacturing facilities to this state];
	(3)  a significant portion of the Texas economy
	continues to be based in [the] manufacturing and other
	capital-intensive industries [industry], and their [the] continued
	growth and overall health [of the manufacturing sector] serves the
	Texas economy well; and
	(4)  without a vibrant, strong manufacturing sector,
	other sectors of the economy, especially the state's service
	sector, will also suffer adverse consequences[; and
	[(5)     the current property tax system of this state
	does not favor capital-intensive businesses such as
	manufacturers].
	SECTION 2.  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
	local level 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)  an entity not subject to the franchise tax
	imposed under Chapter 171 by virtue of its form of business [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, 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 or its successor.
	SECTION 3.  Section 313.021, Tax Code, is transferred to
	Subchapter A, Chapter 313, Tax Code, redesignated as Section
	313.0045, Tax Code, and amended to read as follows:
	Sec. 313.0045  [313.021]. DEFINITIONS. (a)  In this
	chapter [subchapter]:
	(1)  "Qualified investment" means:
	(A)  tangible personal property that is first
	placed in service in this state during the applicable qualifying
	time period that begins on or after January 1, 2002, without regard
	to whether the property is affixed to or incorporated into real
	property, and that is described as Section 1245 property by Section
	1245(a), Internal Revenue Code of 1986;
	(B)  tangible personal property that is first
	placed in service in this state during the applicable qualifying
	time period that begins on or after January 1, 2002, without regard
	to whether the property is affixed to or incorporated into real
	property, and that is used in connection with the manufacturing,
	processing, or fabrication in a cleanroom environment of a
	semiconductor product, without regard to whether the property is
	actually located in the cleanroom environment, including:
	(i)  integrated systems, fixtures, and
	piping;
	(ii)  all property necessary or adapted to
	reduce contamination or to control airflow, temperature, humidity,
	chemical purity, or other environmental conditions or
	manufacturing tolerances; and
	(iii)  production equipment and machinery,
	moveable cleanroom partitions, and cleanroom lighting;
	(C)  tangible personal property that is first
	placed in service in this state during the applicable qualifying
	time period that begins on or after January 1, 2002, without regard
	to whether the property is affixed to or incorporated into real
	property, and that is used in connection with the operation of a
	nuclear electric power generation facility, including:
	(i)  property, including pressure vessels,
	pumps, turbines, generators, and condensers, used to produce
	nuclear electric power; and
	(ii)  property and systems necessary to
	control radioactive contamination;
	(D)  tangible personal property that is first
	placed in service in this state during the applicable qualifying
	time period that begins on or after January 1, 2002, without regard
	to whether the property is affixed to or incorporated into real
	property, and that is used in connection with operating an
	integrated gasification combined cycle electric generation
	facility, including:
	(i)  property used to produce electric power
	by means of a combined combustion turbine and steam turbine
	application using synthetic gas or another product produced by the
	gasification of coal or another carbon-based feedstock; or
	(ii)  property used in handling materials to
	be used as feedstock for gasification or used in the gasification
	process to produce synthetic gas or another carbon-based feedstock
	for use in the production of electric power in the manner described
	by Subparagraph (i);
	(E)  tangible personal property that is first
	placed in service in this state during the applicable qualifying
	time period [that begins on or after January 1, 2010], without
	regard to whether the property is affixed to or incorporated into
	real property, and that is used in connection with operating an
	advanced clean energy project, as defined by Section 382.003,
	Health and Safety Code; [or]
	(F)  a building or a permanent, nonremovable
	component of a building that is built or constructed during the
	applicable qualifying time period that begins on or after January
	1, 2002, and that houses tangible personal property described by
	Paragraph (A), (B), (C), (D), or (E); or
	(G)  a renovation, expansion, or other
	improvement to an existing building as part of a discrete project
	that increases the value of an existing property.
	(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 25 new jobs;
	(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.
	(3)  "Qualifying job" means a permanent full-time job
	that:
	(A)  requires at least 1,600 hours of work a year;
	(B)  is not transferred from one area in this
	state to another area in this state;
	(C)  is not created to replace a previous
	employee;
	(D)  complies with the Patient Protection and
	Affordable Care Act (Pub. L. No. 111-148) or a successor law [is
	covered by a group health benefit plan for which the business offers
	to pay at least 80 percent of the premiums or other charges assessed
	for employee-only coverage under the plan, regardless of whether an
	employee may voluntarily waive the coverage]; and
	(E)  pays at least 110 percent of the lessor of:
	(i)  the county average weekly wage for
	manufacturing jobs in the county where the job is located; or
	(ii)  the county average weekly wage for all
	jobs in the county where the job is located, if the property owner
	creates more than 1,000 jobs in that county.
	(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
	chapter [subchapter] is approved by the 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 313.014(h) [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 school district
	approves the property owner's application for a limitation on
	appraised value under this chapter [subchapter], unless a shorter
	time period is agreed to by the 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 school district approves the property owner's
	application for a limitation on appraised value under this chapter
	[subchapter], unless a shorter time period is agreed to by the
	governing body of the school district and the property owner.
	(5)  "County average weekly wage for manufacturing
	jobs" means:
	(A)  the average weekly wage in a county for
	manufacturing jobs during the most recent four quarterly periods
	for which data is available at the time a person submits an
	application for a limitation on appraised value under this chapter
	[subchapter], as computed by the Texas Workforce Commission; or
	(B)  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 county is
	located during the most recent four quarterly periods for which
	data is available at the time a person submits an application for a
	limitation on appraised value under this chapter [subchapter], as
	computed by the Texas Workforce Commission.
	(6)  "Texas priority project" means a project
	designated by the governor:
	(A)  that has a qualified investment in excess of
	$1 billion;
	(B)  that the governor determines is in the best
	interest of the state economy; and
	(C)  for which the governor certifies the
	designation in writing to the entity applying for a limitation
	under this chapter.
	(b)  Unless this chapter defines a word or phrase used in
	this chapter, Section 1.04 or any other section of Title 1 or this
	title that defines the word or phrase or ascribes a meaning to the
	word or phrase applies to the word or phrase used in this chapter.
	SECTION 4.  Subsection (a), Section 313.006, Tax Code, is
	amended to read as follows:
	(a)  In this section, "impact fee" means a charge or
	assessment imposed against a qualified property[, as defined by
	Section 313.021,] in order to generate revenue for funding or
	recouping the costs of capital improvements or facility expansions
	for water, wastewater, or storm water services or for roads
	necessitated by or attributable to property that receives a
	limitation on appraised value under this chapter.
	SECTION 5.  Section 313.007, Tax Code, is amended to read as
	follows:
	Sec. 313.007.  EXPIRATION. Subchapters (A-1), B, and C[,
	and D] expire December 31, 2024 [2014].
	SECTION 6.  Chapter 313, Tax Code, is amended by adding
	Subchapter A-1, and a heading is added to that subchapter to read as
	follows:
	SUBCHAPTER A-1.  ELIGIBILITY; APPLICATION AND REPORTING
	SECTION 7.  Sections 313.024, 313.025, 313.026, 313.0265,
	313.027, 313.0275, 313.028, 313.030, 313.031, and 313.032, Tax
	Code, are transferred to Subchapter A-1, Chapter 313, Tax Code, as
	added by this Act, and redesignated as Sections 313.011, 313.012,
	313.013, 313.0135, 313.014, 313.0145, 313.015, 313.016, 313.017,
	and 313.018, Tax Code, respectively, and amended to read as
	follows:
	Sec. 313.011  [313.024]. ELIGIBLE PROPERTY. (a)  This
	chapter applies [subchapter and Subchapters C and D apply] only to
	property owned by an entity to which Chapter 171 applies.
	(b)  To be eligible for a limitation on appraised value under
	this chapter [subchapter], the entity must use the property in
	connection with:
	(1)  manufacturing;
	(2)  research and development;
	(3)  a clean coal project, as defined by Section 5.001,
	Water Code;
	(4)  an advanced clean energy project, as defined by
	Section 382.003, Health and Safety Code;
	(5)  renewable energy electric generation;
	(6)  electric power generation using integrated
	gasification combined cycle technology;
	(7)  nuclear electric power generation; [or]
	(8)  a computer center primarily used in connection
	with one or more activities described by Subdivisions (1) through
	(7) conducted by the entity; or
	(9)  a Texas priority project.
	(c)  For purposes of determining an applicant's eligibility
	for a limitation under this chapter [subchapter]:
	(1)  the land on which a building or component of a
	building described by Section 313.0045(a)(1)(E) [313.021(1)(E)] is
	located is not considered a qualified investment;
	(2)  property that is leased under a capitalized lease
	may be considered a qualified investment;
	(3)  property that is leased under an operating lease
	may not be considered a qualified investment; and
	(4)  property that is owned by a person other than the
	applicant and that is pooled or proposed to be pooled with property
	owned by the applicant may not be included in determining the amount
	of the applicant's qualifying investment.
	(d)  To be eligible for a limitation on appraised value under
	this chapter [subchapter], 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)].
	(e)  In this section:
	(1)  "Manufacturing" means an establishment primarily
	engaged in activities described in sectors 31-33 of the 2007 North
	American Industry Classification System.
	(2)  "Renewable energy electric generation" means an
	establishment primarily engaged in activities described in
	category 221119 of the 1997 North American Industry Classification
	System.
	(3)  "Integrated gasification combined cycle
	technology" means technology used to produce electricity in a
	combined combustion turbine and steam turbine application using
	synthetic gas or another product produced from the gasification of
	coal or another carbon-based feedstock, including related
	activities such as materials-handling and gasification of coal or
	another carbon-based feedstock.
	(4)  "Nuclear electric power generation" means
	activities described in category 221113 of the 2002 North American
	Industry Classification System.
	(5)  "Research and development" means an establishment
	primarily engaged in activities described in category 541710 of the
	2002 North American Industry Classification System.
	(6)  "Computer center" means an establishment
	primarily engaged in providing electronic data processing and
	information storage.
	Sec. 313.012  [313.025]. APPLICATION; ACTION ON
	APPLICATION. (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 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 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
	313.0045(a)(2) [313.021(2)]; and
	(3)  information relating to each applicable criterion
	listed in Section 313.013 [313.026].
	(a-1)  Within seven days of the receipt of each document, the
	school district shall submit to the comptroller a copy of the
	application and the agreement between the applicant and the school
	district. If an economic analysis of the proposed project is
	submitted to the school district, the district shall submit a copy
	of the analysis to the comptroller. In addition, the school
	district shall submit to the 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 313.015 [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 the evaluation, 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 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 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 economic impact evaluation has not been received
	or an extension is agreed to by the governing body and the
	applicant.
	(b-1)  The comptroller shall indicate on one copy of the
	application the date the comptroller received the application and
	deliver a [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 313.013(a)(11)
	[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
	governing body of the school district is entitled to request and
	receive assistance from:
	(1)  the comptroller;
	(2)  the Texas Department of Economic Development;
	(3)  the Texas Workforce Investment Council; and
	(4)  the Texas Workforce Commission.
	(d)  Before the 91st day after the date the comptroller
	receives the copy of the application, the comptroller shall submit
	a recommendation to the governing body of the school district as to
	whether the application should be approved or disapproved.
	(d-1)  The governing body of a school district may approve an
	application that the comptroller has recommended should be
	disapproved only if:
	(1)  the governing body 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 chapter [subchapter] that the governing body elects to
	consider, the governing body of the school district must make a
	written finding as to each criterion listed in Section 313.013
	[313.026]. The governing body shall deliver a copy of those
	findings to the applicant.
	(f)  The governing body may approve an application only if
	the governing body finds that the information in the application is
	true and correct, finds 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 governing body of a school district may waive the new
	jobs creation requirement in Section 313.0045(a)(2)(A)(iv)(b)
	[313.021(2)(A)(iv)(b)] or 313.051(b) and approve an application if
	the 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 or its
	successor may recommend that a school district grant a person a
	limitation on appraised value under this chapter. In determining
	whether to grant an application, the governing body of the school
	district shall consider any recommendation made by the Texas
	Department of Economic Development or its successor.
	(h)  After receiving a copy of the application, the
	comptroller shall determine whether the property meets the
	requirements of Section 313.011 [313.024] for eligibility for a
	limitation on appraised value under this chapter [subchapter]. The
	comptroller shall notify the governing body of the school district
	of the comptroller's determination and provide the applicant an
	opportunity for a hearing before the determination becomes final.
	A hearing under this subsection is a contested case hearing and
	shall be conducted by the State Office of Administrative Hearings
	in the manner provided by Section 2003.101, Government Code. The
	applicant has the burden of proof on each issue in the hearing. The
	applicant may seek judicial review of the comptroller's
	determination in a Travis County district court under the
	substantial evidence rule as provided by Subchapter G, Chapter
	2001, Government Code.
	(i)  If the comptroller's determination under Subsection (h)
	that the property does not meet the requirements of Section 313.011
	[313.024] for eligibility for a limitation on appraised value under
	this chapter [subchapter] becomes final, the comptroller is not
	required to provide an economic impact evaluation of the
	application or to submit a recommendation to the school district as
	to whether the application should be approved or disapproved, and
	the governing body of the school district may not grant the
	application.
	Sec. 313.013  [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;
	(3)  the name of the applicant;
	(4)  a description of the general nature of the
	applicant's investment;
	(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;
	[(6)]  the amount [relative level] of the applicant's
	intended investment [per qualifying job to be created by the
	applicant];
	(6) [(7)]  the number of qualifying, construction, and
	operations jobs to be created by the applicant;
	(7) [(8)]  the wages, salaries, and benefits to be
	offered by the applicant to qualifying, construction, and
	operations job holders;
	(8) [(9)]  the ability of the applicant to locate or
	relocate in another state or another region of this state;
	(9) [(10)]  the fiscal impact the project will have on
	this state and individual local units of government, including:
	(A)  tax and other revenue gains, direct and
	otherwise [or indirect], that would be realized during the
	construction and operation of the facility, including [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, direct and otherwise, during the
	construction and operation of the facility, including [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;
	(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;
	[(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; and
	(12)  [(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 clearly stated;
	[(18)]  the projected effect on the Foundation School
	Program of 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 Subsection (a) [Subsections (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 313.012(b) [313.025(b)].
	Sec. 313.0135  [313.0265]. DISCLOSURE OF APPRAISED VALUE
	LIMITATION INFORMATION. (a)  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.
	(b)  The comptroller shall designate the following as
	substantive:
	(1)  each application requesting a limitation on
	appraised value; and
	(2)  the economic impact evaluation made in connection
	with the application[; and
	[(3)     each application requesting school tax credits
	under Section 313.103].
	(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 is maintained.
	Sec. 313.014  [313.027]. LIMITATION ON APPRAISED VALUE;
	AGREEMENT. (a)  If the person's application is approved by the
	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 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 governing body of the school district under Subchapter B or
	C, as applicable.
	(b)  The agreement must provide that the limitation under
	Subsection (a) shall apply for a period of 10 years. The agreement
	must specify the beginning date of the limitation, which must be the
	first tax year beginning after either:
	(1)  the application date;
	(2)  the qualifying time period; or
	(3)  the date commercial operations begin at the
	project site. [The amount agreed to by the 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]
	(c)  The limitation amounts prescribed under Subchapter B or
	C, as applicable, [listed in Subsection (b)] are minimum amounts. A
	school district, regardless of category, may agree to a greater
	amount than those amounts.
	(d)  The 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
	chapter [subchapter] on the owner's qualified property.
	(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 chapter [subchapter].
	Other property of the person that is not specifically described in
	the agreement is not subject to the limitation unless the 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
	chapter [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)  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 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.
	(g)  When appraising a person's qualified property subject
	to a limitation on appraised value under this section, the chief
	appraiser shall determine the market value of the property and
	include both the market value and the appropriate value under
	Subsection (a) in the appraisal records.
	(h)  The agreement between the 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.  However, such limitation may take
	effect no later than the fourth tax year beginning after the date
	the application is approved. 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 313.0045(a)(4) [313.021(4)].
	(i)  A person and the school district may not enter into an
	agreement under which the person agrees to provide supplemental
	payments to a school district, or any other entity on behalf of the
	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
	313.0045(a)(4) [313.021(4)] and ending three tax years after the
	date the person's eligibility for the limitation under this chapter
	expires [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].
	(j)  An agreement under this chapter must disclose any
	consideration promised in conjunction with the application and the
	limitation.
	Sec. 313.0145  [313.0275]. RECAPTURE OF AD VALOREM TAX
	REVENUE LOST. (a)  Notwithstanding any other provision of this
	chapter to the contrary, a person with whom a school district enters
	into an agreement under this chapter [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.
	(b)  If in any tax year a property owner fails to comply with
	Subsection (a), the property owner is liable to this state for a
	penalty equal to the amount computed by subtracting from the market
	value of the property for that tax year the value of the property as
	limited by the agreement and multiplying the difference by the
	maintenance and operations tax rate of the school district for that
	tax year.
	(c)  A penalty imposed under Subsection (b) becomes
	delinquent if not paid on or before February 1 of the following tax
	year. Section 33.01 applies to the delinquent penalty in the manner
	that section applies to delinquent taxes.
	(d)  In the event of a casualty loss, the applicant may
	request and the school district may grant a waiver of the
	requirements of this section.
	Sec. 313.015  [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 chapter [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.
	Sec. 313.016  [313.030]. PROPERTY NOT ELIGIBLE FOR TAX
	ABATEMENT. Property subject to a limitation on appraised value in a
	tax year under this chapter [subchapter] is not eligible for tax
	abatement by a school district under Chapter 312 in that tax year.
	Sec. 313.017  [313.031]. RULES AND FORMS; FEES. (a)  The
	comptroller shall:
	(1)  adopt rules and forms necessary for the
	implementation and administration of this chapter, including rules
	for determining whether a property owner's property qualifies as a
	qualified investment under Section 313.0045(a)(1) [313.021(1)];
	and
	(2)  provide without charge one copy of the rules and
	forms to any school district and to any person who states that the
	person intends to apply for a limitation on appraised value under
	this chapter [subchapter or a tax credit under Subchapter D].
	(b)  The 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 district for a
	limitation on the appraised value of the person's property under
	this chapter [subchapter].  The amount of an application fee must be
	reasonable and may not exceed the estimated cost to the district of
	processing and acting on an application, including the cost of the
	economic impact evaluation required by Sections 313.012 [313.025]
	and 313.013 [313.026].
	Sec. 313.018  [313.032]. REPORT ON COMPLIANCE WITH
	AGREEMENTS. (a)  Before the beginning of each regular session of
	the legislature, the comptroller shall submit to the lieutenant
	governor, the speaker of the house of representatives, and each
	other member of the legislature a report on agreements made under
	this chapter. The report must include:
	(1)  an assessment of the combination of all agreements
	under the program, including:
	(A)  the total number of jobs created, direct and
	otherwise, in Texas;
	(B)  the total impact on personal income, direct
	and otherwise, in Texas;
	(C)  the total amount of investment, direct and
	otherwise, in Texas;
	(D)  the total amount of taxable value on the tax
	rolls, direct and otherwise, in Texas, including properties for
	which the limitation period has expired;
	(E)  the total amount of value not on the tax rolls
	as a result of a limitation agreement; and
	(F)  the total fiscal effects, direct and
	otherwise, on state and local units of government in Texas; and
	(2)  an assessment of [assessing] the progress of each
	agreement made under this chapter. The report must be based on data
	certified to the comptroller by each recipient of a limitation on
	appraised value under this chapter [subchapter] and state for each
	agreement:
	(A) [(1)]  the number of new qualifying jobs each
	recipient of a limitation on appraised value committed to create;
	(B) [(2)]  the number of new qualifying jobs each
	recipient created;
	(C) [(3)]  the total amount of wages [median wage]
	of the new jobs each recipient created;
	(D) [(4)]  the amount of the qualified investment
	each recipient committed to spend or allocate for each project;
	(E) [(5)]  the amount of the [qualified]
	investment each recipient spent or allocated for each project;
	(F) [(6)]  the market value of the qualified
	property of each recipient as determined by the applicable chief
	appraiser, including that of property for which the agreement has
	expired;
	(G) [(7)]  the limitation on appraised value for
	the qualified property of each recipient; and
	(H)  [(8)     the dollar amount of the taxes that
	would have been imposed on the qualified property if the property
	had not received a limitation on appraised value;
	[(9)]  the dollar amount of the taxes imposed on the
	qualified property[;
	[(10)     the number of new jobs created by each recipient
	in each sector of the North American Industry Classification
	System; and
	[(11)     of the number of new jobs each recipient
	created, the number of jobs created that provide health benefits
	for employees].
	(b)  The report may not include information that is
	confidential by law.
	(c)  In preparing the assessment required under Subsection
	(a)(1), the comptroller may use standard economic estimation
	techniques, including economic multipliers.
	(d)  The comptroller may require a recipient to submit, on a
	form the comptroller provides, information required to prepare
	[complete] the assessment required under Subsection (a)(2)
	[report].
	SECTION 8.  The heading to Subchapter B, Chapter 313, Tax
	Code, is amended to read as follows:
	SUBCHAPTER B.  GENERAL LIMITATION ON APPRAISED VALUE OF CERTAIN
	PROPERTY USED TO CREATE JOBS
	SECTION 9.  Subsection (b), Section 313.022, Tax Code, is
	amended to read as follows:
	(b)  For purposes of determining the required minimum amount
	of a qualified investment under Section 313.0045(a)(2)(A)(iv)(a)
	[313.021(2)(A)(iv)(a),] and the minimum amount of a limitation on
	appraised value under this subchapter [Section 313.027(b)], school
	districts to which this subchapter applies are categorized
	according to the taxable value of property in the district for the
	preceding tax year determined under Subchapter M, Chapter 403,
	Government Code, as follows:
	CATEGORY TAXABLE VALUE OF PROPERTY
	I $10 billion or more
	II $1 billion or more but less than $10 billion
	III $500 million or more but less than $1 billion
	IV $100 million or more but less than $500 million
	V less than $100 million
	SECTION 10.  Section 313.023, Tax Code, is amended to read as
	follows:
	Sec. 313.023.  MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. For
	each category of school district established by Section 313.022,
	the minimum amount of a qualified investment under Section
	313.0045(a)(2)(A)(iv)(a) [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
	SECTION 11.  Subchapter B, Chapter 313, Tax Code, is amended
	by adding Section 313.0235 to read as follows:
	Sec. 313.0235.  LIMITATION ON APPRAISED VALUE. For a school
	district to which this subchapter applies, the amount agreed to by
	the governing body of the district 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
	SECTION 12.  The heading to Subchapter C, Chapter 313, Tax
	Code, is amended to read as follows:
	SUBCHAPTER C.  LIMITATION ON APPRAISED VALUE OF PROPERTY IN
	CERTAIN [RURAL] SCHOOL DISTRICTS
	SECTION 13.  Subsections (a) and (b), Section 313.051, Tax
	Code, are amended to read as follows:
	(a)  This subchapter applies only to a school district that
	has territory in:
	(1)  an area determined by the comptroller to be in:
	(A)  a county that has above state average
	unemployment and below state average per capita income;
	(B)  a federally designated urban enterprise
	community or urban enhanced enterprise community; or
	(C)  a defense economic readjustment zone
	designated under Chapter 2310, Government Code [that qualified as a
	strategic investment area under Subchapter O, Chapter 171,
	immediately before that subchapter expired]; or
	(2)  a county:
	(A)  that has a population of less than 50,000;
	and
	(B)  in which, during the decade preceding [from
	1990 to 2000, according to] the most recent federal decennial
	census, the population:
	(i)  remained the same;
	(ii)  decreased; or
	(iii)  increased, but at a rate of not more
	than three percent per annum.
	(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
	A-1 [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), 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 14.  Sections 313.052 and 313.053, Tax Code, are
	amended to read as follows:
	Sec. 313.052.  CATEGORIZATION OF SCHOOL DISTRICTS. For
	purposes of determining the required minimum amount of a qualified
	investment under Section 313.0045(a)(2)(A)(iv)(a)
	[313.021(2)(A)(iv)(a)] and the minimum amount of a limitation on
	appraised value under this subchapter, school districts to which
	this subchapter applies are categorized according to the taxable
	value of industrial property in the district for the preceding tax
	year determined under Subchapter M, Chapter 403, Government Code,
	as follows:
	CATEGORY TAXABLE VALUE OF INDUSTRIAL PROPERTY
	I $200 million or more
	II $90 million or more but less than $200 million
	III $1 million or more but less than $90 million
	IV $100,000 or more but less than $1 million
	V less than $100,000
	Sec. 313.053.  MINIMUM AMOUNTS OF QUALIFIED INVESTMENT. For
	each category of school district established by Section 313.052,
	the minimum amount of a qualified investment under Section
	313.0045(a)(2)(A)(iv)(a) [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
	SECTION 15.  Subsection (a), Section 313.054, Tax Code, is
	amended to read as follows:
	(a)  For a school district to which this subchapter applies,
	the amount agreed to by the 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
	SECTION 16.  The heading to Subchapter E, Chapter 313, Tax
	Code, is amended to read as follows:
	SUBCHAPTER E.  EFFECT [AVAILABILITY] OF [TAX CREDIT AFTER] PROGRAM
	EXPIRATION [EXPIRES]
	SECTION 17.  Section 313.171, Tax Code, is amended to read as
	follows:
	Sec. 313.171.  SAVING PROVISION [PROVISIONS]. [(a)]  A
	limitation on appraised value approved under Subchapter A-1, B, or
	C before the expiration of that subchapter continues in effect
	according to that subchapter as that subchapter existed immediately
	before its expiration, and that law is continued in effect for
	purposes of the limitation on appraised value.
	[(b)     The expiration of Subchapter D does not affect a
	property owner's entitlement to a tax credit granted under
	Subchapter D if the property owner qualified for the tax credit
	before the expiration of Subchapter D.]
	SECTION 18.  The following provisions of the Tax Code are
	repealed:
	(1)  Sections 313.005, 313.008, and 313.009; and
	(2)  Subchapter D, Chapter 313.
	SECTION 19.  To the extent of any conflict, this Act prevails
	over another Act of the 83rd Legislature, Regular Session, 2013,
	relating to nonsubstantive additions to and corrections in enacted
	codes.
	SECTION 20.  (a)  Except as provided by Subsection (b) of
	this section, Chapter 313, Tax Code, as amended by this Act, applies
	only to an agreement entered into under that chapter on or after the
	effective date of this Act. An agreement entered into under that
	chapter before the effective date of this Act is governed by the law
	in effect on the date the agreement was entered into, and the former
	law is continued in effect for that purpose.
	(b)  The repeal by this Act of Subchapter D, Chapter 313, Tax
	Code, does not apply to a tax credit granted based on an application
	for a tax credit submitted before the effective date of this Act. A
	tax credit granted based on an application submitted 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 21.  This Act takes effect immediately if it
	receives a vote of two-thirds of all the members elected to each
	house, as provided by Section 39, Article III, Texas Constitution.
	If this Act does not receive the vote necessary for immediate
	effect, this Act takes effect September 1, 2013.