By: Hunter H.B. No. 5
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to agreements to create jobs and to generate state and
  local tax revenue for this state.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 403, Government Code, is amended by
  adding Subchapter S to read as follows:
  Subchapter S. AGREEMENTS TO CREATE JOBS AND TO GENERATE STATE AND
  LOCAL REVENUE
         Sec. 403.6005.  PURPOSES. The purposes of this subchapter
  are to:
               (1)  create new, high-paying permanent jobs and
  construction jobs in this state;
               (2)  encourage financially beneficial economic
  development in this state;
               (3)  provide a temporary and limited competitive
  economic incentive for attracting to this state large-scale
  manufacturing projects 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 infrastructure development;
               (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
  security;
               (8)  create new wealth, raise personal income, and
  foster long-term expansion of state and local tax bases; and
               (9)  provide growing and sustainable economic
  opportunity for the citizens of this state.
         Sec. 403.601.  DEFINITIONS. In this subchapter:
               (1)  "Agreement" means a written agreement between the
  owner of a new investment project and a school district in this
  state.
               (2)  "New investment project" means the construction
  and operation of new improvements to realty or placement into
  service in this state new tangible personal property that did not
  exist on the date of the agreement.
               (3)  "Qualified industry" means:
                     (A)  manufacturing;
                     (B)  critical infrastructure; or
                     (C)  national and state security and critical
  domestic supply chain support.
         Sec. 403.602.  APPLICATION. (a) A person may apply to the
  school district for approval of an agreement under this subchapter.
  An application must be made on a form prescribed by the comptroller
  and contain the following information:
               (1)  the applicant's name, address, Texas taxpayer
  identification number, and contact information of an 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 school district's name and address, the county
  in which the district is located or the county in which the project
  is located if the district is in more than one county, and the
  contact information of the district's authorized representative;
               (4)  the address of the project or proposed facility,
  if different from the applicant's address;
               (5)  a brief description of the project, including the
  classification of the project as designated by the North American
  Industry Classification System as of the date of the application;
               (6)  a brief description of the eligible property for
  which the applicant is seeking an agreement;
               (7)  the estimated dates of commencement of
  construction, completion of construction, and commencement of
  commercial operations of the project;
               (8)  the name and location of the reinvestment zone or
  enterprise zone in which the project is located;
               (9)  a brief summary of the economic benefits of the
  project; and
               (10)  the applicant's signature and certification.
         (b)  The application must be accompanied by an application
  fee payable to the school district.
         (c)  The school district shall forward the application to the
  comptroller within 30 days of receipt from the applicant.
         (d)  Subject to the confidentiality requirements of Section
  403.616, the comptroller shall publish the application and the
  information described by Subsections (b)(2)-(5), and any
  subsequent revisions of the application or the information on the
  comptroller's Internet website.
         Sec. 403.603.  ECONOMIC BENEFIT STATEMENT. (a) The
  applicant shall submit with the application an economic benefit
  statement containing estimates of the economic and fiscal impacts
  on the school district and the state for the 25-year period
  commencing on the date on which the applicant estimates
  construction of the project will commence.
         (b)  The comptroller shall establish criteria for the
  methodology of the economic benefit statement submitted by the
  applicant and may require the applicant to supplement or modify the
  statement to ensure the accuracy of the estimates listed in
  Subsection (a).
         Sec. 403.604.  COMPTROLLER RECOMMENDATION OF APPLICATION.
  (a) The comptroller shall recommend an application for approval by
  the school district if the comptroller finds that the project
  provides a net economic or financial benefit to the state.
         (b)  If the comptroller finds that the project does not meet
  the criteria established by Subsection (a), the comptroller shall
  not recommend the application for approval.
         Sec. 403.605.  SCHOOL DISTRICT APPROVAL. (a) Within days of
  receiving a recommendation to approve an application from the
  comptroller under Section 403.604, the school district shall either
  approve or disapprove of the agreement.
         Sec. 403.606.  REPORTS BY APPLICANT. The comptroller shall
  promulgate an online reporting form for applicants to submit to the
  agency by April 1 of each even-numbered year that reports the
  following information for each year since the application was
  approved and for three years after the limitation has expired:
               (1)  the application number, name of the applicant,
  name of the school district which levies ad valorem taxes on the
  project, and name and contact information for the applicant's
  representative;
               (2)  the parcel number of the property subject to the
  agreement;
               (3)  the total number of jobs created by the project;
               (4)  the total wages paid;
               (5)  the total amount of the investment;
               (6)  the appraised value of all property associated
  with the project, including property subject to the agreement and
  any other real or tangible personal property owned by the applicant
  as part of the project;
               (7)  the taxable value of all property associated with
  the project, including property subject to the agreement and any
  other real or tangible personal property owned by the applicant as
  part of the project, for school district maintenance and operations
  ad valorem tax purposes;
               (8)  the total amount of school district maintenance
  and operations ad valorem taxes paid by the applicant;
               (9)  the total amount of school district interest and
  sinking fund ad valorem taxes paid by the applicant;
               (10)  the total amount for school district ad valorem
  taxes the applicant would have paid in the absence of an agreement;
               (11)  the total amount of payments other than ad
  valorem taxes made by the applicant to the school district.
         Sec. 403.607.  REPORTS BY SCHOOL DISTRICT. (a) A school
  district that levies ad valorem taxes on the project shall submit at
  its own expense to the comptroller a report not later than April 1
  of each even-numbered year since the application was approved and
  for three years after the limitation has expired.
         (b)  The report shall include:
               (1)  the total amount of payments other than ad valorem
  taxes received from the applicant;
               (2)  the total amount of any other direct or indirect
  benefits received from the applicant such as in-kind contributions
  or other financial benefits; and
               (3)  the purposes for which the payments and benefits
  were used by the school district.
         (c)  The comptroller shall promulgate a form to be used by
  the school district for purposes of this section.
         Sec. 403.608.  DISTRIBUTION OF SAVINGS FROM THE AGREEMENT.
  (a) If an application is approved under this subchapter, the
  applicant shall not later than January 31 of each year of the term
  of the agreement and as provided by rule:
               (1)  retain the greater percentage of any tax savings
  resulting from the agreement; and
               (2)  remit the lesser percentage of any tax savings
  resulting from the agreement to the comptroller.
         (b)  The comptroller shall distribute the funds received
  under Subsection (a) as provided by rule as follows:
               (1)  the greater percentage of the funds received are
  payable to the school district that levies ad valorem taxes on the
  project, to be used solely for direct instructional purposes; and
               (2)  the lesser percentage of the funds received shall
  be deposited to the credit of the general revenue fund for
  distribution as specified by a general appropriations act.
         (c)  The applicant shall annually calculate the tax savings
  from the agreement by multiplying the school district maintenance
  and operations ad valorem tax rate by the difference between the
  taxable value in the absence of the agreement and the taxable value
  as specified by the agreement, as shown on the tax bill received by
  the applicant from the school district.
         Sec. 403.609.  RULES AND FORMS. The comptroller shall adopt
  rules and forms necessary for the implementation and administration
  of this subchapter.
         SECTION 2.  This Act takes effect September 1, 2023.