AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Section 313.032, Tax Code, requires the comptroller of public accounts of the State of Texas (comptroller) to submit to the legislature a report on agreements made under the Texas Economic Development Act. Among other requirements, the report must include an assessment of the progress of each agreement, the number of qualifying jobs the recipient committed to create, and the number of jobs actually created. Under current law, there is no requirement that employment data in the compliance report be verified by the comptroller through a third party before it is presented to the legislature. Though the comptroller must certify the report, it is unclear if the data provided is required to be accurately verified by an independent, third-party source. 

 

S.B. 829 amends the Tax Code to require the comptroller to verify submitted data with the Texas Workforce Commission, the chief appraiser of the district, or another reliable source.

 

This bill ensures that companies that benefit from property tax abatement are providing accurate data and creating an economic benefit for the state. By using a third party to verify the data submitted to the comptroller, the legislature will have more knowledge on how economic development funds are being spent.

 

As proposed, S.B. 829 amends current law relating to the verification of information provided to the comptroller and contained in reports on compliance with agreements under the Texas Economic Development Act.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Section 313.032(c), Tax Code, as follows:

 

(c) Requires the portion of the report described by Subsection (a)(2) (relating to an assessment of the progress of compliance agreements) to be based on data certified to the comptroller of public accounts of the State of Texas (comptroller) by each recipient or former recipient of a limitation on appraised value under this chapter. Requires the comptroller to verify the data using information from the Texas Workforce Commission, the chief appraiser of the applicable appraisal district, or other sources the comptroller considers reliable.

 

SECTION 2. Effective date: September 1, 2015.