By: Hunter, Meyer, Burrows, Shine, Longoria, H.B. No. 5
      et al.
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to agreements authorizing a limitation on taxable value on
  certain property to provide for the creation of jobs and the
  generation of state and local tax revenue; authorizing fees;
  authorizing a penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 403, Government Code, is amended by
  adding Subchapter T to read as follows:
  SUBCHAPTER T. AGREEMENTS TO CREATE JOBS AND GENERATE STATE AND
  LOCAL TAX REVENUE
         Sec. 403.601.  PURPOSES. The purposes of this subchapter
  are to:
               (1)  create new, high-paying permanent jobs and
  construction jobs in this state;
               (2)  encourage financially positive economic
  development in this state;
               (3)  provide a temporary competitive economic
  incentive for attracting large-scale manufacturing projects to
  this state that, in the absence of this subchapter, would likely
  locate in another state or nation;
               (4)  strengthen the security and resource independence
  of this state and nation by encouraging energy and water
  infrastructure development, new and expanded electric power
  generation, and electric grid reliability projects;
               (5)  promote the relocation of offshore manufacturing
  facilities to this state;
               (6)  make this state a national and international
  leader in new and innovative technologies;
               (7)  encourage the establishment of advanced
  manufacturing industry sectors critical to national defense and
  health care;
               (8)  create new wealth, raise personal income, and
  foster long-term expansion of state and local tax bases;
               (9)  provide growing and sustainable economic
  opportunity for the residents of this state;
               (10)  incentivize the preceding objectives in a
  balanced, transparent, and accountable manner; and
               (11)  promote the creation of a qualified workforce by
  providing and developing apprenticeship training programs and
  workplace-based education in partnership with school districts.
         Sec. 403.602.  DEFINITIONS. In this subchapter:
               (1)  "Additional job" means a full-time job in
  connection with an eligible project that is not a required job for
  the same project.
               (2)  "Agreement" means an agreement entered into under
  Section 403.612. 
               (3)  "Applicant" means a person that applies for, or
  enters into an agreement providing for, a limitation on the taxable
  value of eligible property used as part of an eligible project,
  including the person's assignees or successors-in-interest.
               (4)  "Appraised value," "tax year," and "taxing unit"
  have the meanings assigned by Section 1.04, Tax Code.
               (5)  "Construction completion date" means the date on
  which an eligible project is first capable of being used for the
  purposes for which it is constructed.
               (6)  "Construction job" means an otherwise full-time
  job that is temporary in nature and is performed before the start of
  the incentive period applicable to an eligible project to perform
  construction, maintenance, remodeling, or repair work for an
  applicant in connection with the project. 
               (7)  "Construction period" means the period prescribed
  by an agreement as the construction period of the eligible project
  that is the subject of the agreement.
               (8)  "County average annual wage for manufacturing
  jobs" means:
                     (A)  the average annual 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 taxable value under this
  subchapter, as computed by the Texas Workforce Commission; or
                     (B)  the average annual 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 taxable value under this subchapter, as computed by
  the Texas Workforce Commission.
               (9)  "Eligible project" means a project that:
                     (A)  is a national or state security project or
  supply chain infrastructure project;
                     (B)  is a manufacturing project; or
                     (C)  requires an investment in a school district
  in this state of more than $1 billion.
               (10)  "Eligible property" means property, other than
  property used for intermittent power generation to supply
  electricity to the power grid, that is used as part of an eligible
  project that is wholly owned by an applicant or leased by an
  applicant under a capitalized lease and consists of:
                     (A)  a new building or expansion of an existing
  building, including a permanent, nonremovable component of a
  building, that is:
                           (i)  constructed after the date the
  agreement pertaining to the project is entered into; and
                           (ii)  located in an area designated as a
  reinvestment zone under Chapter 311 or 312, Tax Code, or as an
  enterprise zone under Chapter 2303 of this code, at the time the
  agreement pertaining to the project is entered into; or
                     (B)  tangible personal property, other than
  inventory, first located in the zone described by Paragraph (A)(ii)
  after the date the agreement pertaining to the project is entered
  into.
               (11)  "Full-time job" means a permanent full-time job
  that requires a total of at least 1,600 hours of work a year in
  connection with an eligible project.
               (12)  "Grid reliability project" means a project:
                     (A)  that generates base load or dispatchable
  electricity for the power grid, including from thermal sources, or
  that provides stored energy to the power grid from batteries,
  regardless of power source;
                     (B)  that increases the output capacity or
  reliability of an existing dispatchable electric power generation
  facility or that replaces dispatchable electric power generation
  assets to extend the useful life of the facility, including
  equipment that enables the use of multiple fuels;
                     (C)  that creates or expands the capability to
  store fuel used by an electric power generation facility,
  regardless of whether the fuel is stored at the facility site;
                     (D)  to produce hydrogen fuel or feed stock;
                     (E)  that is a natural gas terminal or storage
  facility; or
                     (F)  that is a gas processing plant, including a
  plant used in the processing, treatment, or fractionation of
  natural gas.
               (13)  "Incentive period" for an eligible project means
  the period prescribed by the agreement pertaining to the project
  during which the eligible property used as part of the project is
  subject to a limitation on taxable value.
               (14)  "Independent contractor" has the meaning
  assigned by Section 406.121, Labor Code.
               (15)  "Investment" means the costs incurred by an
  applicant to acquire or construct eligible property composing an
  eligible project, other than the cost of land or inventory.
               (16)  "Manufacturing project" means a project
  primarily engaged in activities described by Sectors 31-33 of the
  2022 North American Industry Classification System, including
  semiconductor fabrication cleanrooms and equipment as defined by
  Section 151.318(q), Tax Code. 
               (17)  "Metropolitan statistical area" means an area so
  designated by the United States Office of Management and Budget.
               (18)  "National or state security project or supply
  chain infrastructure project" means:
                     (A)  a grid reliability project; or
                     (B)  a seawater or brackish groundwater
  desalination project.
               (19)  "Required job" means a job that an applicant
  commits to create or demonstrate in connection with an eligible
  project as prescribed by Section 403.604.
               (20)  "Total jobs" means the sum of required jobs and
  additional jobs in connection with an eligible project.
         Sec. 403.603.  EXPIRATION.  This subchapter expires December
  31, 2033.
         Sec. 403.604.  REQUIRED JOBS AND INVESTMENT.  (a)  This
  section does not apply to a national or state security project or
  supply chain infrastructure project.
         (b)  To be eligible to enter into an agreement, an applicant
  for a limitation on taxable value of eligible property to be used
  for a proposed eligible project must agree to:
               (1)  if the project is to be located in a school
  district with a taxable value of property of $10 billion or more for
  the tax year preceding the year in which the applicant submits the
  application as determined under Subchapter M:
                     (A)  create at least 50 required jobs by the end of
  the first tax year of the incentive period prescribed by the
  agreement and demonstrate an average of at least that number of jobs
  during each following tax year until the date the agreement
  expires; and
                     (B)  make an investment in the project in an
  amount of at least $100 million before the incentive period begins;
               (2)  if the project is to be located in a school
  district with a taxable value of property of at least $1 billion but
  less than $10 billion for the tax year preceding the year in which
  the applicant submits the application as determined under
  Subchapter M:
                     (A)  create at least 40 required jobs by the end of
  the first tax year of the incentive period prescribed by the
  agreement and demonstrate an average of at least that number of jobs
  during each following tax year until the date the agreement
  expires; and
                     (B)  make an investment in the project in an
  amount of at least $80 million before the incentive period begins;
               (3)  if the project is to be located in a school
  district with a taxable value of property of at least $500 million
  but less than $1 billion for the tax year preceding the year in
  which the applicant submits the application as determined under
  Subchapter M:
                     (A)  create at least 25 required jobs by the end of
  the first tax year of the incentive period prescribed by the
  agreement and demonstrate an average of at least that number of jobs
  during each following tax year until the date the agreement
  expires; and
                     (B)  make an investment in the project in an
  amount of at least $50 million before the incentive period begins;
               (4)  if the project is to be located in a school
  district with a taxable value of property of at least $100 million
  but less than $500 million for the tax year preceding the year in
  which the applicant submits the application as determined under
  Subchapter M:
                     (A)  create at least 10 required jobs by the end of
  the first tax year of the incentive period prescribed by the
  agreement and demonstrate an average of at least that number of jobs
  during each following tax year until the date the agreement
  expires; and
                     (B)  make an investment in the project in an
  amount of at least $25 million before the incentive period begins;
  or
               (5)  if the project is to be located in a school
  district with a taxable value of property of less than $100 million
  for the tax year preceding the year in which the applicant submits
  the application as determined under Subchapter M or in a school
  district that is not located in a metropolitan statistical area:
                     (A)  create at least five required jobs by the end
  of the first tax year of the incentive period prescribed by the
  agreement and demonstrate an average of at least that number of jobs
  during each following tax year until the date the agreement
  expires; and
                     (B)  make an investment in the project in an
  amount of at least $10 million before the incentive period begins.
         (c)  For purposes of Subsection (b), each required job
  created in connection with an eligible project:
               (1)  must be a new full-time job in this state:
                     (A)  maintained in the usual course and scope of
  the applicant's business, which may be performed by an individual
  who is a trainee under the Texans Work program established under
  Chapter 308, Labor Code; or
                     (B)  performed by an independent contractor and
  the independent contractor's employees at the site of the project;
  and
               (2)  may not be transferred by the applicant from an
  existing facility or location in this state or otherwise created to
  replace an existing job, unless the applicant fills the vacancy
  caused by the transfer.
         (d)  For purposes of Subsection (b), an applicant may count
  as a required job one construction job credit. An applicant is
  entitled to one construction job credit in connection with an
  eligible project for every 10 construction jobs created in
  connection with the project before the date the incentive period
  for the project begins. An applicant may elect to determine the
  number of construction jobs for purposes of this subsection as the
  quotient of:
               (1)  the total amount paid by the applicant for labor in
  connection with construction of the project before the incentive
  period for the project begins, as evidenced by:
                     (A)  separated charges for labor services on
  contractor invoices; or 
                     (B)  other documentation from contractors of the
  cost of labor performed under lump-sum contracts; and
               (2)  the average annual wage for all jobs in the county
  in which the project is primarily located during the most recent
  four quarters for which data is available, as computed by the Texas
  Workforce Commission.
         (e)  For purposes of calculating the applicable number of
  required jobs under Subsection (b) in connection with an eligible
  project, an applicant may aggregate the number of hours worked by
  one or more individuals who work fewer than 1,600 hours a year in
  connection with the project if the number of hours worked by each of
  those individuals combined meets or exceeds 1,600 hours of work a
  year.
         (f)  For purposes of Subsection (b), an applicant may
  demonstrate that the applicant has met the applicable minimum
  investment requirement by any reasonable means. The applicant is
  considered to have met the applicable minimum investment
  requirement if the most recent appraisal roll for the county in
  which the eligible property is located indicates that the appraised
  value of the property composing the project as of January 1 of the
  first year of the incentive period is equal to or greater than the
  minimum investment requirement applicable to the project.
         (g)  In addition to the requirements of Subsection (b), an
  applicant for a limitation on taxable value of eligible property to
  be used for a proposed eligible project may:
               (1)  enter into an agreement with a school district in
  which the project is to be located to provide an apprenticeship and
  training program or other workplace-based education program,
  including as part of the district's foundation trade diploma
  program, if such a program is available at the district, to serve as
  an entry point to the jobs required to be created under this
  section; and
               (2)  invest not less than 25 percent of the amount the
  applicant is required to invest for a project under this section in
  a program described by Subdivision (1).
         Sec. 403.605.  TAXABLE VALUE OF ELIGIBLE PROPERTY. (a)
  Except as provided by Subsection (b), the taxable value for school
  district maintenance and operations ad valorem tax purposes of
  eligible property subject to an agreement for each tax year of the
  incentive period prescribed by the agreement is equal to:
               (1)  $100 million, if the project subject to the
  agreement is located in a school district with a taxable value of
  property of $10 billion or more for the tax year preceding the year
  in which the applicant submitted the application to which the
  agreement pertains as determined under Subchapter M; 
               (2)  $75 million, if the project subject to the
  agreement is located in a school district with a taxable value of
  property of at least $1 billion but less than $10 billion for the
  tax year preceding the year in which the applicant submitted the
  application to which the agreement pertains as determined under
  Subchapter M;
               (3)  $50 million, if the project subject to the
  agreement is located in a school district with a taxable value of
  property of at least $500 million but less than $1 billion for the
  tax year preceding the year in which the applicant submitted the
  application to which the agreement pertains as determined under
  Subchapter M;
               (4)  $25 million, if the project subject to the
  agreement is located in a school district with a taxable value of
  property of at least $100 million but less than $500 million for the
  tax year preceding the year in which the applicant submitted the
  application to which the agreement pertains as determined under
  Subchapter M; or
               (5)  $5 million, if the project subject to the
  agreement is located in a school district with a taxable value of
  property of less than $100 million for the tax year preceding the
  year in which the applicant submitted the application to which the
  agreement pertains as determined under Subchapter M.
         (b)  The taxable value of eligible property for school
  district maintenance and operations ad valorem tax purposes for a
  tax year during the incentive period is the appraised value of the
  property for that tax year if that value is less than the value of
  the property as determined under Subsection (a).
         (c)  The taxable value of eligible property for school
  district maintenance and operations ad valorem tax purposes is zero
  for each tax year beginning with the tax year following the year in
  which the agreement pertaining to the property is entered into and
  ending December 31 of the tax year that includes the construction
  completion date for the applicable eligible project.
         (d)  The chief appraiser for the appraisal district in which
  eligible property is located shall determine the market value and
  appraised value of the property and include the market value,
  appraised value, and taxable value of the property as determined
  under this section in the appraisal records for the appraisal
  district.
         (e)  The chief appraiser for the appraisal district in which
  eligible property subject to an agreement is located may not use an
  estimated value included in the application to which the agreement
  pertains to determine the market value of the property.
         Sec. 403.606.  APPLICATION. (a) A person who proposes to
  construct an eligible project in a school district may apply to the
  governing body of the district to limit the taxable value for
  maintenance and operations ad valorem tax purposes of the district
  of the eligible property used as part of the proposed project.
         (b)  A person submitting an application under Subsection (a)
  must use the form prescribed by the comptroller. The form must
  contain the following information: 
               (1)  the applicant's name, address, and Texas taxpayer
  identification number and the contact information for the
  applicant's authorized representative;
               (2)  the applicant's form of business and, if
  applicable, the name, address, and Texas taxpayer identification
  number of the applicant's parent entity;
               (3)  the applicable school district's name and address
  and the contact information for the district's authorized
  representative;
               (4)  the legal description of the property on which the
  project is proposed to be located and, if applicable, the address of
  the proposed project;
               (5)  the applicable number of required jobs prescribed
  by Section 403.604 for the proposed project;
               (6)  a list of each taxing unit in which the project is
  proposed to be located;
               (7)  a brief description of the proposed project,
  including the classification of the project as designated by the
  North American Industry Classification System;
               (8)  a brief description of the eligible property to be
  used as part of the proposed project;
               (9)  a projected timeline for construction and
  completion of the proposed project, including the projected dates
  on which construction will begin, construction will be completed,
  and commercial operations will start;
               (10)  the proposed incentive period; 
               (11)  the name and location of the existing or proposed
  reinvestment zone or enterprise zone in which the proposed project
  will be located;
               (12)  a brief summary of the projected economic
  benefits of the proposed project; and
               (13)  the applicant's signature and certification of
  the accuracy of the information included in the application.
         (c)  The form prescribed by Subsection (b) must allow the
  applicant to segregate confidential information described by
  Section 403.622(a) from other information in the application.
         (d)  An applicant must include with an application the
  following:
               (1)  an application fee payable to the school district
  in an amount determined by the district not to exceed $60,000 for an
  initial application, inclusive of the costs of processing the
  application, retaining professional services, preparing the school
  finance impact report required by Section 403.608, and, if
  applicable, creating a reinvestment zone or enterprise zone;
               (2)  a map showing the site of the proposed project; and
               (3)  the economic benefit statement prepared under
  Section 403.607 in connection with the proposed project.
         (e)  A school district that receives an application under
  this section shall forward the application to the comptroller not
  later than the seventh day after the date the district receives the
  application.
         (f)  The comptroller may request that an applicant provide
  any additional information the comptroller reasonably determines
  is necessary to complete the comptroller's evaluation of the
  application. The comptroller may require an applicant to submit
  the additional information by a certain date and may extend that
  deadline on a showing of good cause. The comptroller is not
  required to take any further action on an application until it is
  complete.
         (g)  The comptroller shall notify an applicant and the
  pertinent school district when the applicant's application is
  administratively complete.
         Sec. 403.607.  ECONOMIC BENEFIT STATEMENT. (a) An
  applicant shall submit an economic benefit statement with the
  applicant's application.
         (b)  An economic benefit statement must include the
  following information for each year of the period that begins on the
  date the applicant projects construction of the proposed project
  that is the subject of the application will begin and ends on the
  25th anniversary of the date the incentive period ends:
               (1)  an estimate of the number of total jobs that will
  be created by the project;
               (2)  an estimate of the total amount of capital
  investment that will be created by the project;
               (3)  an estimate of the increase in appraised value of
  property that will be attributable to the project;
               (4)  an estimate of the amount of ad valorem taxes that
  will be imposed by each taxing unit other than the school district
  on the property used as part of the project;
               (5)  an estimate of the amount of state taxes that will
  be paid in connection with the project; and
               (6)  an estimate of the associated economic benefits
  that may reasonably be attributed to the project, including: 
                     (A)  the impact on the gross revenues and
  employment levels of local businesses that provide goods or
  services in connection with the project or to the applicant's
  employees;
                     (B)  the amount of state and local taxes that will
  be generated as a result of the indirect economic impact of the
  project, including all ad valorem taxes not otherwise estimated in
  Subdivision (4) that will be imposed on property placed into
  service as a result of the project;
                     (C)  the development of complementary businesses
  or industries that locate in this state as a direct consequence of
  the project;
                     (D)  the total impact of the project on the gross
  domestic product of this state;
                     (E)  the total impact of the project on personal
  income in this state; and
                     (F)  the total impact of the project on state and
  local taxes.
         (c)  An applicant may use standard economic estimation
  techniques, including economic multipliers, to create an economic
  benefit statement.
         (d)  The comptroller shall establish criteria for the
  methodology to be used by an applicant to create an economic benefit
  statement.
         (e)  The comptroller may require an applicant to supplement
  or modify an economic benefit statement to ensure the accuracy of
  the estimates required to be included in the statement under
  Subsection (b).
         Sec. 403.608.  SCHOOL FINANCE IMPACT REPORT. (a) A school
  district that receives an application under this subchapter shall
  promptly prepare a school finance impact report for the proposed
  project that is the subject of the application and submit a copy of
  the report to the comptroller and the applicant.
         (b)  A school finance impact report must detail the projected
  tax and revenue consequences for the school district of the
  proposed project for each year of the 25-year period beginning on
  the date the application is received by the district.
         (c)  A school finance impact report must include an estimate
  of the amount of ad valorem taxes imposed by the school district
  during the period described by Subsection (b) on the property used
  as part of the proposed project, together with all related property
  owned by the applicant or leased by the applicant under a
  capitalized lease and placed in service as a direct result of the
  project:
               (1)  for maintenance and operations purposes; and
               (2)  for interest and sinking fund purposes.
         (d)  A school finance impact report must include, for each
  year the agreement is proposed to be in effect, a calculation of any
  anticipated loss of funding, not including facilities funding, to
  the school district as a result of the agreement. The district shall
  make the calculations under this subsection in accordance with the
  law, including the constitution, Chapters 48 and 49, Education
  Code, and this chapter, rules, and judicial decisions governing
  school districts and the public school finance system in effect at
  the time the application is submitted.
         (e)  A school district that enters into an agreement shall
  update the school finance impact report applicable to the project
  that is the subject of the agreement not later than March 1 of the
  first year of the incentive period specified in the agreement. The
  district must submit a copy of the updated report to the comptroller
  and the applicant.
         Sec. 403.609.  COMPTROLLER DETERMINATION REGARDING
  APPLICATION. (a) The comptroller shall determine whether to
  recommend that a school district approve an application submitted
  to the district under this subchapter.
         (b)  The comptroller shall notify an applicant and a school
  district of the comptroller's determination under Subsection (a)
  regarding an application submitted to the district by the applicant
  not later than the 60th day after the date the comptroller
  determines the application is complete.
         (c)  The comptroller shall recommend that a school district
  approve an application submitted to the district if the comptroller
  finds that: 
               (1)  the proposed project that is the subject of the
  application is an eligible project;
               (2)  the proposed project is reasonably likely to
  generate, before the 25th anniversary of the last day of the
  incentive period, state or local tax revenue, including ad valorem
  tax revenue attributable to the effect of the project on the economy
  of this state, in an amount sufficient to offset the school district
  maintenance and operations ad valorem tax revenue lost as a result
  of the agreement; and 
               (3)  the agreement is a determining factor in the
  applicant's decision to make the investment and locate the project
  in this state.
         (d)  Subsection (c)(3) does not apply to an application if
  the proposed project that is the subject of the application is a
  grid reliability project.
         Sec. 403.610.  HEARING. (a) An applicant is entitled to a
  hearing if the comptroller determines not to recommend that the
  applicable school district approve an application submitted by the
  applicant to the district.
         (b)  A hearing under this section is a contested case hearing
  and shall be conducted by the State Office of Administrative
  Hearings in the manner provided by Section 2003.101. 
         (c)  To receive a hearing under this section, an applicant
  must file a notice of appeal with the comptroller not later than the
  30th day after the date the comptroller notifies the applicant of
  the comptroller's determination under Section 403.609. The
  comptroller's determination becomes final if the applicant does not
  file the notice of appeal as provided by this subsection. 
         (d)  An 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.
         Sec. 403.611.  SCHOOL DISTRICT ACTION ON APPLICATION. (a)
  The governing body of a school district shall approve or disapprove
  an application submitted to the district under this subchapter that
  the comptroller recommends be approved by the district. The
  governing body may approve an application only if the comptroller
  recommends the application be approved. The governing body shall
  approve or disapprove the application not later than the 35th day
  after the date the comptroller notifies the district of the
  comptroller's determination under Section 403.609. The governing
  body may extend the deadline prescribed by this subsection on
  written request of the applicant.
         (b)  If the governing body of the school district and the
  applicant agree on an amendment to the application, the amended
  application must be submitted to the comptroller for a
  redetermination regarding the application.  The comptroller shall
  notify the applicant and school district of the comptroller's
  redetermination regarding the application not later than the 30th
  day after the date the comptroller receives the amended
  application.
         (c)  The presiding officer of the governing body of a school
  district shall notify the applicant and the comptroller of the
  governing body's approval or disapproval of an application not
  later than the seventh day after the date the governing body
  approves or disapproves the application.
         (d)  Except for a payment authorized by this subchapter, an
  employee or representative of a school district, a member of the
  governing body of the district, or any other person may not
  intentionally or knowingly solicit, accept, agree to accept, or
  require any payment of money or transfer of property or other thing
  of value, directly or indirectly, to the district, an employee or
  representative of the district, a member of the governing body of
  the district, or any other person in recognition of, anticipation
  of, or consideration for approval of an application under this
  section.
         (e)  Except for a payment authorized by this subchapter, an
  applicant, an employee or representative of the applicant, or any
  other person may not intentionally or knowingly offer, confer,
  agree to confer, or make a payment of money or transfer of property
  or other thing of value, directly or indirectly, to the school
  district, an employee or representative of the district, a member
  of the governing body of the district, or any other person in
  recognition of, anticipation of, or consideration for approval of
  an application under this section.
         Sec. 403.612.  AGREEMENT. (a) The governing body of a
  school district that approves an application under Section 403.611
  shall enter into an agreement with the applicant that submitted the
  application.
         (b)  An agreement entered into under this section between an
  applicant and a school district for an eligible project shall:
               (1)  specify the project to which the agreement
  applies;
               (2)  specify the term of the agreement, which must:
                     (A)  begin on the date the agreement is entered
  into; and
                     (B)  end on December 31 of the third tax year
  following the end of the incentive period;
               (3)  specify the incentive period for the project;
               (4)  specify the manner for determining the taxable
  value for school district maintenance and operations ad valorem tax
  purposes during the incentive period under Section 403.605 for the
  eligible property subject to the agreement;
               (5)  specify the applicable jobs and investment
  requirements prescribed by Section 403.604 and require the
  applicant to comply with those requirements;
               (6)  if the applicant is subject to the jobs
  requirement prescribed by Section 403.604, require that the average
  annual wage paid to all persons employed by the applicant in
  connection with the project used to calculate total jobs, other
  than a required job derived from a construction job credit, exceed
  110 percent of the county average annual wage for manufacturing
  jobs in the county where the job is located, with the applicant's
  average annual wage being equal to the quotient of:
                     (A)  the applicant's total wages paid, other than
  wages paid for construction jobs, as reported under Section
  403.617(c)(4); and
                     (B)  the applicant's number of total jobs, other
  than a required job derived from a construction job credit, as
  reported under Section 403.617(c)(3);
               (7)  require the applicant to offer and contribute to a
  group health benefit plan for each employee who performs a required
  job;
               (8)  require the applicant to pay a penalty prescribed
  by Section 403.615 if the applicant fails to comply with an
  applicable jobs or wage requirement;
               (9)  authorize the district to terminate the agreement
  if the applicant fails to meet a material requirement of the
  agreement as provided by Subsection (e); and
               (10)  incorporate each relevant provision of this
  subchapter.
         (c)  An agreement entered into under this section between an
  applicant and a school district pertaining to an eligible project
  may:
               (1)  require the applicant to:
                     (A)  either:
                           (i)  share a percentage of the applicant's
  tax revenue savings with the district, as computed under Section
  403.614; or
                           (ii)  pay the district an amount specified
  in the agreement, which may not be less than $75,000 for each tax
  year during the incentive period; and
                     (B)  if the agreement requires the applicant to
  share a percentage of the applicant's tax revenue savings under
  Paragraph (A)(i), specify the tax savings percentages required to
  compute the applicable tax sharing amount under Section 403.614;
               (2)  require the applicant to make an indemnity payment
  to the district as provided by Subsection (f);
               (3)  authorize the applicant to terminate the agreement
  as an alternative to making an indemnity payment to the district as
  provided by Subsection (f); and
               (4)  authorize the district to terminate the agreement
  as provided by Subsection (h).
         (d)  An agreement entered into under this section between an
  applicant and a school district pertaining to an eligible project
  may not require the applicant to make a payment to the district
  other than a payment prescribed by this subchapter.
         (e)  This subsection applies to a term described by
  Subsection (b)(9). The agreement must provide that the school
  district:
               (1)  is authorized to terminate the agreement if the
  applicant fails to meet a material requirement of the agreement,
  other than a requirement described by Section 403.614;
               (2)  may not terminate the agreement until the district
  provides written notice to the applicant of the proposed
  termination;
               (3)  must provide the applicant the opportunity to cure
  and dispute the alleged failure, including through judicial action;
  and
               (4)  is entitled to recover all lost ad valorem tax
  revenue from the project and interest on that amount calculated as
  provided by Section 111.060, Tax Code.
         (f)  This subsection applies only if an agreement includes a
  term described by Subsection (c)(2). In this subsection, a
  material change is a change that results in an indemnity payment
  calculated under this subsection for a tax year that is at least 10
  percent of the amount of any anticipated loss of funding calculated
  for that tax year as specified in the updated school finance impact
  report required by Section 403.608(e). The agreement must require
  the applicant to make an indemnity payment to the school district
  for a tax year during the incentive period in which the district's
  revenue is reduced as a direct result of the enactment of
  legislation or a final judicial determination that results in a
  substantial change that affects the Foundation School Program, not
  including facilities funding, and directly affects an agreement
  resulting in a material change. The amount of the indemnity payment
  is equal to the difference between the amount of revenue the
  district would have received in that tax year had the legislation
  not been enacted, the constitution not been amended, or the final
  judicial determination not been made and the amount of revenue
  actually received by the district in that tax year. The agreement
  must provide that, as an alternative to making the indemnity
  payment, the applicant may elect to terminate the agreement by
  notifying the district in writing of the termination. An agreement
  terminated under this subsection is void, and all remaining
  obligations and benefits under the agreement and this subchapter
  terminate on the date the agreement is terminated. The agreement
  may not require the applicant to pay back any benefit the applicant
  received under the agreement before the date the agreement is
  terminated under this subsection.
         (g)  For purposes of Subsection (f), the Texas Education
  Agency shall determine whether a law enacted by the legislature or a
  final judicial determination results in a substantial change that
  affects the Foundation School Program, not including facilities
  funding, and directly affects an agreement resulting in a material
  change.  If the agency makes a determination under this subsection
  related to an agreement, the agency shall establish the method the
  applicable school district must use to calculate the indemnity
  payment and certify the calculation made by the district.
         (h)  This subsection applies only if an agreement includes a
  term described by Subsection (c)(4). The agreement may authorize
  the school district to terminate the agreement under the
  circumstances described by Subsection (f) if the district
  determines that the indemnity payment made by the applicant would
  not fully reimburse the district as required by that subsection.
  The district must notify the applicant in writing of the
  termination. An agreement terminated under this subsection is
  void, and all remaining obligations and benefits under the
  agreement and this subchapter terminate on the date the agreement
  is terminated. The agreement may not require the applicant to pay
  back any benefit the applicant received under the agreement before
  the date the agreement is terminated under this subsection.
         (i)  An applicant and a school district may modify the terms
  of an agreement that do not materially modify the jobs or investment
  requirements prescribed by the agreement.  The district may impose
  a fee of $15,000 for an amendment to an agreement.
         (j)  The school district shall append the economic benefit
  statement applicable to the project that is the subject of the
  agreement to the agreement.
         (k)  The school district shall submit each agreement entered
  into by the district to the comptroller not later than the seventh
  day after the date the agreement is entered into.
         Sec. 403.613.  INCENTIVE PERIOD. (a) An incentive period
  pertaining to an eligible project is the period specified in the
  agreement for the project, which must be a period of 10 consecutive
  tax years.
         (b)  An incentive period may not begin:
               (1)  earlier than January 1 of the first tax year
  following the construction completion date; or
               (2)  later than January 1 of the first tax year
  following the 10th anniversary of the date the agreement is entered
  into.
         (c)  Subject to Subsection (b), the beginning date of an
  incentive period specified in an agreement pertaining to an
  eligible project is deferred if the applicant does not satisfy the
  minimum investment requirement applicable to the project on or
  before the date the incentive period is specified to begin under the
  agreement. The incentive period is deferred until January 1 of the
  year following the year in which the applicant satisfies the
  investment requirement pertaining to the project. The deferral of
  an incentive period under this subsection does not affect the date
  on which the incentive period ends as prescribed by the agreement.
         (d)  Subject to Subsection (b), an applicant may propose to
  modify the beginning and ending dates of the incentive period as
  provided by this subsection. The applicant shall provide notice of
  the proposed modification to the comptroller and the school
  district not later than the 90th day before the first day of the
  incentive period specified in Section 403.612(b)(3) or as proposed
  to be modified, whichever is earlier. The applicant shall revise
  the most recent economic benefit statement as necessary to reflect
  the proposed change to the incentive period. The applicant must
  include the revised economic benefit statement with the notice
  provided to the comptroller and the district under this subsection.
  The comptroller shall make the finding required by Section
  403.609(c)(2) regarding the project as proposed to be modified or
  determine that the finding cannot be made. The comptroller shall
  notify the applicant and the district of the comptroller's finding
  or determination not later than the 60th day after the date the
  comptroller receives notice from the applicant of the proposed
  modification. The applicant may appeal the comptroller's
  determination in the manner provided by Section 403.610. The
  incentive period for the project may not be modified if the
  comptroller determines that the finding required by Section
  403.609(c)(2) regarding the project as proposed to be modified
  cannot be made or, if the determination is appealed, the applicant
  is not successful on appeal before the beginning of the original or
  modified incentive period, whichever is earlier.
         Sec. 403.614.  COMPUTATION OF TAX SHARING AMOUNT. (a)  An
  applicant's tax revenue savings for eligible property that is
  subject to an agreement between the applicant and a school district
  is:
               (1)  for a tax year during the period prescribed by
  Section 403.605(c), an amount equal to the product of:
                     (A)  the amount computed by dividing the appraised
  value of the property for that tax year by 100; and
                     (B)  the maintenance and operations ad valorem tax
  rate adopted by the district for that tax year; and
               (2)  for a tax year during the incentive period
  prescribed by the agreement, an amount equal to the product of:
                     (A)  the amount computed by:
                           (i)  subtracting the taxable value of the
  property as determined under Section 403.612(b)(4) from the
  appraised value of the property for that tax year; and
                           (ii)  dividing the amount computed under
  Paragraph (A) by 100; and
                     (B)  the maintenance and operations ad valorem tax
  rate adopted by the district for that tax year.
         (b)  An applicant's tax sharing amount for a tax year during
  the period described by Subsection (a)(1) is equal to 20 percent of
  the applicant's tax revenue savings as computed under that
  subdivision for that tax year.
         (c)  An applicant's tax sharing amount for a tax year during
  the period described by Subsection (a)(2) in which the applicant's
  tax revenue savings as computed under that subdivision is:
               (1)  $3 million or less is the amount equal to the
  product of the amount computed under Subsection (a)(2) and the
  applicable tax savings percentage specified in the agreement
  between the applicant and the school district, which may not exceed
  30 percent;
               (2)  more than $3 million but less than $7 million is
  the amount equal to the sum of the following amounts:
                     (A)  the product of:
                           (i)  $3 million; and
                           (ii)  the applicable tax savings percentage
  specified in the agreement, which may not exceed 30 percent; and
                     (B)  the product of:
                           (i)  the difference between the amount
  computed under Subsection (a)(2) and $3 million; and
                           (ii)  the applicable tax savings percentage
  specified in the agreement, which may not exceed 20 percent; and
               (3)  $7 million or more is the amount equal to the sum
  of the following amounts:
                     (A)  the product of:
                           (i)  $3 million; and
                           (ii)  the applicable tax savings percentage
  specified in the agreement, which may not exceed 30 percent;
                     (B)  the product of:
                           (i)  $4 million; and
                           (ii)  the applicable tax savings percentage
  specified in the agreement, which may not exceed 20 percent; and
                     (C)  the product of:
                           (i)  the difference between the amount
  computed under Subsection (a)(2) and $7 million; and
                           (ii)  the applicable tax savings percentage
  specified in the agreement, which may not exceed 10 percent.
         Sec. 403.615.  FAILURE TO COMPLY WITH JOBS OR WAGE
  REQUIREMENT. (a) An applicant is liable to the state for a penalty
  in the amount computed under this subsection if the applicant fails
  to maintain at least the number of required jobs prescribed by the
  agreement to which the applicant is a party during the periods
  covered by two consecutive reports submitted by the applicant under
  Section 403.617. The amount of the penalty is equal to 2.5 times
  the product of:
               (1)  the difference between:
                     (A)  the number of required jobs prescribed by the
  agreement; and
                     (B)  the number of required jobs actually created
  as stated in the most recent report submitted by the applicant under
  Section 403.617; and
               (2)  the average annual wage prescribed by the
  agreement during the most recent four quarters for which data is
  available, as computed by the Texas Workforce Commission.
         (b)  An applicant is liable to the state for a penalty in the
  amount computed under this subsection if the applicant fails to
  meet the average annual wage requirement prescribed by the
  agreement to which the applicant is a party, if any, during the
  periods covered by two consecutive reports submitted by the
  applicant under Section 403.617. The amount of the penalty is equal
  to 2.5 times the difference between:
               (1)  the product of:
                     (A)  the actual average annual wage paid to all
  persons employed by the applicant in connection with the project
  that is the subject of the agreement as computed under Section
  403.612(b)(6); and
                     (B)  the number of required jobs prescribed by the
  agreement; and
               (2)  the product of:
                     (A)  the average annual wage prescribed by the
  agreement; and
                     (B)  the number of required jobs prescribed by the
  agreement.
         (c)  Notwithstanding Subsections (a) and (b), the amount of a
  penalty imposed on an applicant under this section may not exceed
  the amount of the ad valorem tax benefit received by the applicant
  under the agreement that is the subject of the penalty.
         (d)  An applicant on request of the comptroller shall provide
  to the comptroller a schedule of required jobs created as of the
  date of the request under an agreement to which the applicant is a
  party.
         (e)  A determination by the comptroller that an applicant has
  failed to meet the jobs or wage requirement prescribed by an
  agreement to which the applicant is a party is a deficiency
  determination under Section 111.008, Tax Code. A penalty imposed
  under this section is an amount the comptroller is required to
  collect, receive, administer, or enforce, and is subject to the
  payment and redetermination requirements of Sections 111.0081 and
  111.009, Tax Code. A redetermination under Section 111.009, Tax
  Code, of a determination under this section is a contested case as
  defined by Section 2001.003 of this code.
         (f)  An applicant may challenge under Subchapters A and B,
  Chapter 112, Tax Code, a determination under this section that
  imposes a penalty on the applicant if the applicant contends that
  the amount of the penalty is unlawful or that the comptroller may
  not legally demand or collect the amount.
         (g)  The comptroller shall deposit the amount collected
  under this section, including any interest applicable to the
  amount, to the credit of the foundation school fund.
         Sec. 403.616.  AUDIT OF AGREEMENTS BY STATE AUDITOR. (a)
  Each year the state auditor shall select and review at least three
  major agreements to determine whether:
               (1)  each agreement accomplishes the purposes of this
  subchapter as expressed in Section 403.601; and
               (2)  the terms of each agreement were executed in
  compliance with the terms of this subchapter.
         (b)  As part of the review, the state auditor shall make
  recommendations relating to increasing the efficiency and
  effectiveness of the administration of this subchapter.
         Sec. 403.617.  ANNUAL COMPLIANCE REPORT BY APPLICANT. (a)
  An applicant that is a party to an agreement shall submit a report
  to the comptroller as required by this section using the form
  adopted by the comptroller.
         (b)  An applicant must submit a report required by this
  section to the comptroller not later than June 1 of each year during
  the term of the agreement that is the subject of the report.
         (c)  A report required by this section must include the
  following documents and information applicable to the agreement
  that is the subject of the report:
               (1)  a certification by the applicant that is a party to
  the agreement that the applicant has met the jobs and investment
  requirements prescribed by the agreement, which must include:
                     (A)  a sworn affidavit stating:
                           (i)  the number of required jobs prescribed
  by the agreement;
                           (ii)  the number of total jobs created under
  the agreement as of December 31 of the preceding year, including the
  number of total jobs for each category of required jobs; and
                           (iii)  the name and contact information of
  each person who employs a person described by Subparagraph (ii),
  other than the applicant or the applicant's affiliates;
                     (B)  if applicable, payroll records maintained
  for purposes of 40 T.A.C. Chapter 815; and
                     (C)  if applicable, evidence of the number of
  construction jobs created and construction job credits counted by
  the applicant as a required job;
               (2)  the number assigned to the application by the
  comptroller for the agreement, name of the applicant, name of the
  school district, and name of and contact information for the
  applicant's representative;
               (3)  the number of total jobs, not including
  construction job credits counted by the applicant as a required
  job, created by the project in the preceding year;
               (4)  the total wages paid for total jobs, not including
  wages paid for construction jobs, in the preceding year;
               (5)  the number of construction jobs created as
  determined under Section 403.604(d);
               (6)  the total amount of the applicant's investment,
  including any additional amount invested by the applicant after the
  incentive period begins;
               (7)  the appraised value of all property composing the
  project for each previous tax year of the agreement;
               (8)  the taxable value of all property composing the
  project for each previous tax year of the agreement;
               (9)  the amount of school district maintenance and
  operations ad valorem taxes imposed on the property composing the
  project and paid by the applicant for each previous tax year of the
  agreement;
               (10)  the amount of school district interest and
  sinking fund ad valorem taxes imposed on the property composing the
  project and paid by the applicant for each previous tax year of the
  agreement;
               (11)  the amount of school district ad valorem taxes
  that would have been imposed on the property composing the project
  and paid by the applicant in the absence of the agreement for each
  previous tax year of the agreement;
               (12)  the amount of payments made by the applicant to
  the school district as prescribed by the agreement for each
  previous tax year of the agreement, listed by type of payment; and
               (13)  the amount of ad valorem taxes imposed on the
  property composing the project by each taxing unit other than the
  school district and paid by the applicant for each previous tax year
  of the agreement, stated by taxing unit.
         (d)  This subsection applies only to a report required to be
  submitted under this section by an applicant for the period that
  includes the first year of the incentive period as prescribed by the
  agreement that is the subject of the report or as deferred. In
  addition to the documents and information described by Subsection
  (c), the applicant must include with the certification required by
  Subsection (c)(1):
               (1)  a list of the property tax account numbers
  assigned to the property composing the project;
               (2)  the current total appraised value of the property
  composing the project; and
               (3)  if applicable, a statement that the incentive
  period was deferred because the applicant did not meet the minimum
  investment requirement prescribed by the agreement before the date
  specified in the agreement.
         Sec. 403.618.  SCHOOL DISTRICT REPORT. (a) A school
  district that is a party to an agreement must submit a report to the
  comptroller as prescribed by this section.
         (b)  A school district must submit the report not later than
  June 1 of each even-numbered year:
               (1)  beginning in the first even-numbered year
  following the year in which the governing body of the district
  approves the application for the project that is the subject of the
  agreement; and
               (2)  ending in the last even-numbered year before the
  third anniversary of the expiration of the incentive period
  prescribed by the agreement.
         (c)  The report must include:
               (1)  the total amount received from the applicant under
  the agreement for each previous year;
               (2)  the total amount of any other direct or indirect
  benefit received from the applicant for each previous year,
  including an in-kind contribution; and
               (3)  the purposes for which the payments and benefits
  were used by the school district.
         Sec. 403.619.  BIENNIAL REPORT TO LEGISLATURE. (a) 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 the agreements entered into under this
  subchapter. The comptroller must submit the report not later than
  December 1 of each even-numbered year.
         (b)  The report must include:
               (1)  an assessment of the following with regard to the
  agreements entered into under this subchapter, considered in the
  aggregate:
                     (A)  the total number of jobs created in this
  state;
                     (B)  the total effect on personal income in this
  state;
                     (C)  the total amount of investment in this state;
                     (D)  the total taxable value of property on the
  tax rolls in this state resulting from the agreements, including
  property subject to an agreement that has expired;
                     (E)  the total value of property subject to
  agreements that have not expired; and
                     (F)  the total fiscal effect resulting from the
  agreements on this state and on local governments in this state; and
               (2)  an assessment of each agreement entered into under
  this subchapter that states for each agreement:
                     (A)  the number of required jobs prescribed by the
  agreement;
                     (B)  the number of jobs actually created under the
  agreement, including:
                           (i)  each job described by Section
  403.604(c)(1)(A);
                           (ii)  each job described by Section
  403.604(c)(1)(B);
                           (iii)  each construction job credit
  described by Section 403.604(d) counted by an applicant as a
  required job; and
                           (iv)  any additional jobs created or
  maintained in connection with the project that is the subject of the
  agreement, if reported by the applicant;
                     (C)  the number of total jobs created under the
  agreement, if the term of the agreement has expired;
                     (D)  the amount of the investment specified by the
  agreement;
                     (E)  the amount of the actual investment made for
  the applicable project before the expiration of the agreement;
                     (F)  the difference between the amount of ad
  valorem taxes that would have been imposed on the property
  composing the applicable project in the absence of the agreement
  and the amount of ad valorem taxes actually imposed on that property
  during the term of the agreement;
                     (G)  the total amount of state and local tax
  revenue attributable to the applicable project during the term of
  the agreement;
                     (H)  the total amount received by the school
  district from the applicant under the agreement for each previous
  year;
                     (I)  the total amount of any other direct or
  indirect benefit received by the district from the applicant for
  each previous year, including an in-kind contribution; and
                     (J)  the purposes for which the payments and
  benefits described by Paragraphs (H) and (I) were used by the
  district.
         (c)  The comptroller may not include in the report
  information that is confidential under law.
         (d)  The comptroller may use standard economic estimation
  techniques, including economic multipliers, to prepare the portion
  of the report described by Subsection (b)(1).
         (e)  The comptroller may require an applicant to submit
  information required to complete the report on a form prescribed by
  the comptroller.
         Sec. 403.620.  CONFLICT OF INTEREST. A person may not,
  directly or indirectly, represent, advise, or provide a service to
  both an applicant and a school district in connection with the same
  application submitted or agreement entered into under this
  subchapter.
         Sec. 403.621.  TREATMENT OF PAYMENTS TO SCHOOL DISTRICTS. A
  payment by an applicant to a school district under this subchapter
  other than a payment of ad valorem taxes imposed by the district may
  not be treated as tax revenue collected by the district for any
  purpose under Chapter 48 or 49, Education Code.
         Sec. 403.622.  CONFIDENTIALITY OF CERTAIN BUSINESS
  INFORMATION. (a) Information provided to a school district or the
  comptroller by an applicant under this subchapter that is a trade
  secret, as defined by Section 134A.002, Civil Practice and Remedies
  Code, is confidential and not subject to disclosure under Chapter
  552.
         (b)  Payroll records reported under Section 403.617(c)(1)(A)
  or (B) by an applicant to the comptroller are confidential and not
  subject to disclosure under Chapter 552.
         Sec. 403.623.  INTERNET POSTING OF INFORMATION. (a)
  Subject to Section 403.622, the comptroller shall post on the
  comptroller's Internet website the following information received
  by the comptroller:
               (1)  each application submitted under this subchapter;
               (2)  each map and economic benefit statement required
  to be submitted with an application under this subchapter;
               (3)  each amendment to an application made under this
  subchapter;
               (4)  each agreement entered into under this subchapter;
  and
               (5)  each biennial compliance report submitted as
  required under this subchapter.
         (b)  Except as provided by Subsection (c), the comptroller
  shall post the information described by Subsection (a) as soon as
  practicable after the date the comptroller receives the
  information.
         (c)  The comptroller shall post the information described by
  Subsections (a)(1), (2), and (3) not later then the 10th business
  day after the date the comptroller receives the information.
         (d)  The comptroller shall continue to post the information
  required by this section until the date the agreement to which the
  information relates expires.
         Sec. 403.624.  RULES AND FORMS. (a) The comptroller shall
  adopt rules necessary to implement and administer this subchapter,
  including rules for:
               (1)  determining whether an applicant meets the jobs
  and investment requirements prescribed by Section 403.604; and
               (2)  authorizing an applicant or school district to
  submit any form or information required by this subchapter
  electronically.
         (b)  The comptroller shall adopt forms necessary to
  implement and administer this subchapter, including the forms to be
  used by:
               (1)  an applicant under Section 403.606;
               (2)  an applicant under Section 403.617; and
               (3)  a school district under Section 403.618.
         (c)  The comptroller shall provide without charge one copy of
  the rules and forms adopted under this section to any person who
  states that the person intends to submit an application to a school
  district under this subchapter to limit the taxable value of
  eligible property used as part of an eligible project.
         SECTION 2.  Section 48.2551(a), Education Code, is amended
  to read as follows:
         (a)  In this section:
               (1)  "DPV" is the taxable value of property in the
  school district, as determined by the agency by rule, using locally
  determined property values adjusted in accordance with Section
  403.302(d), Government Code;
               (2)  "E" is the expiration of the exclusion of
  appraised property value for the preceding tax year that is
  recognized as taxable property value for the current tax year,
  which is the sum of the following:
                     (A)  property value that is no longer subject to a
  limitation on appraised value under former Subchapter B or C,
  Chapter 313, Tax Code, or a limitation on taxable value under
  Subchapter T, Chapter 403, Government Code; and
                     (B)  property value under Section 311.013(n), Tax
  Code, that is no longer excluded from the calculation of "DPV" from
  the preceding year because of refinancing or renewal after
  September 1, 2019;
               (3)  "MCR" is the district's maximum compressed rate,
  which is the tax rate for the current tax year per $100 of valuation
  of taxable property at which the district must levy a maintenance
  and operations tax to receive the full amount of the tier one
  allotment to which the district is entitled under this chapter;
               (4)  "PYDPV" is the district's value of "DPV" for the
  preceding tax year; and
               (5)  "PYMCR" is the district's value of "MCR" for the
  preceding tax year.
         SECTION 3.  Section 48.256, Education Code, is amended by
  amending Subsections (d) and (e) and adding Subsection (d-1) to
  read as follows:
         (d)  This subsection applies to a school district in which
  the board of trustees entered into a written agreement with a
  property owner [under Section 313.027, Tax Code,] for the
  implementation of a limitation on taxable [appraised] value under
  Subchapter T, Chapter 403, Government [B or C, Chapter 313, Tax]
  Code. For purposes of determining "DPV" under Subsection (a) for a
  school district to which this subsection applies, the commissioner
  shall exclude a portion of the market value of property not
  otherwise fully taxable by the district under Subchapter T, Chapter
  403, Government [B or C, Chapter 313, Tax] Code[, before the
  expiration of the subchapter]. The comptroller shall provide
  information to the agency necessary for this subsection.
         (d-1)  Subsection (d) applies to an agreement for the
  implementation of a limitation on appraised value under former
  Subchapter B or C, Chapter 313, Tax Code, that was in effect on
  January 1, 2023, in the same manner as that subsection applies to an
  agreement described by that subsection. If the agreement for the
  limitation on appraised value requires a [A] revenue protection
  payment to the school district, the payment [required as part of an
  agreement for a limitation on appraised value] shall be based on the
  district's taxable value of property for the preceding tax year.
         (e)  Subsection (d-1) [(d)] does not apply to property that
  was the subject of an application under former Subchapter B or C,
  Chapter 313, Tax Code, made after May 1, 2009, that the comptroller
  recommended should be disapproved.
         SECTION 4.  Section 2303.507, Government Code, is amended to
  read as follows:
         Sec. 2303.507.  TAX INCREMENT FINANCING AND
  ABATEMENT;  LIMITATIONS ON APPRAISED AND TAXABLE
  VALUE.  Designation of an area as an enterprise zone is also
  designation of the area as a reinvestment zone for:
               (1)  tax increment financing under Chapter 311, Tax
  Code;
               (2)  tax abatement under Chapter 312, Tax Code; [and]
               (3)  limitations on appraised value under former
  Subchapter B or C, Chapter 313, Tax Code; and
               (4)  limitations on taxable value under Subchapter T,
  Chapter 403, of this code.
         SECTION 5.  Section 23.03, Tax Code, is amended to read as
  follows:
         Sec. 23.03.  COMPILATION OF LARGE PROPERTIES AND PROPERTIES
  SUBJECT TO LIMITATION ON APPRAISED OR TAXABLE VALUE. Each year the
  chief appraiser shall compile and send to the Texas [Department of]
  Economic Development and Tourism Office a list of properties in the
  appraisal district that in that tax year:
               (1)  have a market value of $100 million or more; [or]
               (2)  are subject to a limitation on appraised value
  under former Subchapter B or C, Chapter 313; or
               (3)  are subject to a limitation on taxable value under
  Subchapter T, Chapter 403, Government Code.
         SECTION 6.  Section 26.012(6), Tax Code, is amended to read
  as follows:
               (6)  "Current total value" means the total taxable
  value of property listed on the appraisal roll for the current year,
  including all appraisal roll supplements and corrections as of the
  date of the calculation, less the taxable value of property
  exempted for the current tax year for the first time under Section
  11.31 or 11.315, except that:
                     (A)  the current total value for a school district
  excludes:
                           (i)  the total value of homesteads that
  qualify for a tax limitation as provided by Section 11.26; [and]
                           (ii)  new property value of property that is
  subject to an agreement entered into under former Subchapter B or C,
  Chapter 313; and
                           (iii)  new property value of property that
  is subject to an agreement entered into under Subchapter T, Chapter
  403, Government Code; and
                     (B)  the current total value for a county,
  municipality, or junior college district excludes the total value
  of homesteads that qualify for a tax limitation provided by Section
  11.261.
         SECTION 7.  Section 171.602(f), Tax Code, is amended to read
  as follows:
         (f)  The comptroller may not issue a credit under this
  section before the later of:
               (1)  [September 1, 2018; or
               [(2)]  the expiration of an agreement under former
  Subchapter B or C, Chapter 313, regarding the clean energy project
  for which the credit is issued; or
               (2)  the expiration of an agreement under Subchapter T,
  Chapter 403, Government Code, regarding the clean energy project
  for which the credit is issued.
         SECTION 8.  Section 312.0025(a), Tax Code, is amended to
  read as follows:
         (a)  Notwithstanding any other provision of this chapter to
  the contrary, the governing body of a school district, in the manner
  required for official action and for purposes of former Subchapter
  B or C, Chapter 313, of this code or Subchapter T, Chapter 403,
  Government Code, may designate an area entirely within the
  territory of the school district as a reinvestment zone if the
  governing body finds that, as a result of the designation and the
  granting of a limitation on appraised value under former Subchapter
  B or C, Chapter 313, of this code or the granting of a limitation on
  taxable value under Subchapter T, Chapter 403, Government Code, for
  property located in the reinvestment zone, the designation is
  reasonably likely to:
               (1)  contribute to the expansion of primary employment
  in the reinvestment zone; or
               (2)  attract major investment in the reinvestment zone
  that would:
                     (A)  be a benefit to property in the reinvestment
  zone and to the school district; and
                     (B)  contribute to the economic development of the
  region of this state in which the school district is located.
         SECTION 9.  It is the intent of the legislature that the
  amendment made by this Act to Section 48.2551, Education Code,
  ensures that school district maintenance and operations ad valorem
  tax revenue generated by the increase in taxable value of property
  following the expiration of an agreement for a limitation on
  taxable value of the property under Subchapter T, Chapter 403,
  Government Code, as added by this Act, is considered in the
  computation of the maximum compressed rate under Section 48.2551,
  Education Code, and voter-approval tax rate under Section 26.08,
  Tax Code, of the school district that is a party to the expired
  agreement.
         SECTION 10.  This Act takes effect March 1, 2024.