BILL ANALYSIS

Senate Research Center	C.S.S.B. 2322
89R22981 TJB-F	By: King
	Economic Development
	4/8/2025
	Committee Report (Substituted)

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Chapter 403 lays out the Texas Job, Energy, Technology and Innovation (JETI) program established by the 88th Legislature. JETI is a school district maintenance and operations (M&O) appraised tax value limitation program, based on qualifying job creation and capital investment. The JETI program is designed to be a competitive site selection tool communities can leverage to attract businesses to relocate and expand within the state of Texas. Dispatchable electric generation facilities are eligible for this program, as a means of encouraging generation facilities to expand and produce more energy, improving the strength of the Texas grid.

Part of the application criteria is that site selection remain competitive throughout the entire application process, requiring companies to produce proof of the competition within the evaluation of sites. In Texas, competitive site selection is defined as a company exploring location options within Texas and another state or country. Companies are often expected to show the incentives that the other state/country has offered as proof of this competition. Applicants must pass the compelling factor test, where the agreement is a compelling factor in the site selection determination and that, in the absence of the agreement, the applicant would not make the proposed investment in this state. 

Electric generation facilities are often not competitive site selection situations. ERCOT indicates where generation facilities are allowed to be interconnected, leaving the generation companies without the option of alternative sites. This does not allow these electric generation facilities the option to use this program as intended.

S.B. 2322 amends Section 403.609(b) to exclude energy generation facilities from the compelling factor test, expanding this use of the program to this facilities as intended.

(Original Author's/Sponsor's Statement of Intent)

C.S.S.B. 2322 amends current law relating to the findings required to be made by the comptroller of public accounts in order to recommend for approval an application for a limitation on the taxable value of eligible property for school district maintenance and operations ad valorem tax purposes under the Texas Jobs, Energy, Technology, and Innovation 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 403.609(b), Government Code, as added by Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular Session, 2023, as follows:

(b) Prohibits the Comptroller of Public Accounts of the State of Texas (comptroller) from recommending an application for approval unless the comptroller finds that certain criteria are met, including that, for a proposed project other than a facility described by Section 403.602(8)(A)(i)(b) (relating to a facility related to the provision of utility services), the agreement is a compelling factor in a competitive site selection determination and that, in the absence of the agreement, the applicant would not make the proposed investment in this state.

SECTION 2. Makes application of this Act prospective.

SECTION 3. Effective date: September 1, 2025.