84R17582 SMH-D

By: Springer H.B. No. 1987

Substitute the following for H.B. No. 1987:

By: Darby C.S.H.B. No. 1987

A BILL TO BE ENTITLED

AN ACT

relating to the authority of the governing body of a school district to waive or reduce the new jobs creation requirement under the Texas Economic Development Act.

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

SECTION 1. Sections 313.025(b), (d), and (f-1), Tax Code, are amended to read as follows:

(b) The governing body of a school district is not required to consider an application for a limitation on appraised value. If the governing body of the school district elects to consider an application, the governing body shall deliver a copy of the application to the comptroller and request that the comptroller conduct an economic impact evaluation of the investment proposed by the application. The comptroller shall conduct or contract with a third person to conduct the economic impact evaluation, which shall be completed and provided to the governing body of the school district, along with the comptroller's certificate or written explanation under Subsection (d), as soon as practicable but not later than the 60th [90th] day after the date the comptroller receives the application. The governing body shall provide to the comptroller or to a third person contracted by the comptroller to conduct the economic impact evaluation 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 economic impact evaluation to the applicant on request. The comptroller may charge the applicant 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 not later than the 150th day after the date the application is filed, unless the economic impact evaluation has not been received, the recommendation of the Texas Economic Development and Tourism Office or its successor under Subsection (f-1), if applicable, has not been received, or an extension is agreed to by the governing body and the applicant.

(d) Not later than the 60th [90th] day after the date the comptroller receives the copy of the application, the comptroller shall issue a certificate for a limitation on appraised value of the property and provide the certificate to the governing body of the school district or provide the governing body a written explanation of the comptroller's decision not to issue a certificate.

(f-1) The governing body of a school district may request that the Texas Economic Development and Tourism Office or its successor submit a recommendation as to whether the new jobs creation requirement in Section 313.021(2)(A)(iv)(b) or 313.051(b) should be reduced or waived and, if reduced, the number of new jobs that should be required to be created. If the governing body elects to request that the office or its successor submit such a recommendation, the governing body shall deliver a copy of the application to the office or its successor and shall notify the comptroller of the governing body's election. The comptroller shall provide a copy of the economic impact evaluation to the office or its successor. The recommendation of the office or its successor shall be based on the economic impact evaluation and on any other information available to the office or its successor, including information provided by the governing body. The office or its successor shall submit its recommendation to the governing body as soon as practicable after receipt of the copy of the economic impact evaluation but not later than the 30th day after the date the office or its successor receives the copy of the economic impact evaluation. The office or its successor may recommend waiving or reducing [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 only [in Section 313.021(2)(A)(iv)(b) or 313.051(b) and approve an application] if the office or its successor determines [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. Notwithstanding any other provision of this chapter, the governing body may waive or reduce the new jobs creation requirement, but only if the office or its successor recommends waiving or reducing the requirement and only to the extent recommended by the office or its successor.

SECTION 2. Section 313.026(a), Tax Code, is amended to read as follows:

(a) The economic impact evaluation of the application must include any information the comptroller determines is necessary or helpful to:

(1) the governing body of the school district in determining whether to approve the application under Section 313.025; [or]

(2) the comptroller in determining whether to issue a certificate for a limitation on appraised value of the property under Section 313.025; or

(3) the Texas Economic Development and Tourism Office or its successor in determining whether to recommend under Section 313.025 that the new jobs creation requirement be waived or reduced, if such a recommendation is requested.

SECTION 3. 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 4. This Act takes effect January 1, 2016.