By: Price	H.B. No. 2722

	A BILL TO BE ENTITLED
	AN ACT
	relating to the Texas Economic Development Act.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 42.2515(a), Education Code, is amended
	to read as follows:
	(a)  For each school year, a school district, including a
	school district that is otherwise ineligible for state aid under
	this chapter, is entitled to state aid in an amount equal to the
	amount of all tax credits credited against ad valorem taxes of the
	district in that year under former Subchapter D, Chapter 313, Tax
	Code.
	SECTION 2.  Section 42.302(e), Education Code, is amended to
	read as follows:
	(e)  For purposes of this section, school district taxes for
	which credit is granted under former Subchapter D, Chapter 313, Tax
	Code, are considered taxes collected by the school district as if
	the taxes were paid when the credit for the taxes was granted.
	SECTION 3.  Section 313.007, Tax Code, is amended to read as
	follows:
	Sec. 313.007.  EXPIRATION.  Subchapters B and [,] C[, and D]
	expire December 31, 2019 [2014].
	SECTION 4.  Section 313.024(a), Tax Code, is amended to read
	as follows:
	(a)  This subchapter and Subchapter [Subchapters] C [and D]
	apply only to property owned by an entity to which Chapter 171
	applies.
	SECTION 5.  Section 313.026, Tax Code, is amended to read as
	follows:
	Sec. 313.026.  ECONOMIC IMPACT EVALUATION.  (a)  The
	economic impact evaluation of the application must include the
	following:
	(1)  the recommendations of the comptroller;
	(2)  the name of the school district;
	(3)  the name of the applicant;
	(4)  the general nature of the applicant's investment;
	(5)  the relationship between the applicant's industry
	and the types of qualifying jobs to be created by the applicant to
	the long-term economic growth plans of this state as described in
	the strategic plan for economic development submitted by the Texas
	Strategic Economic Development Planning Commission under Section
	481.033, Government Code, as that section existed before February
	1, 1999;
	(6)  the relative level of the applicant's investment
	per qualifying job to be created by the applicant;
	(7)  the number of qualifying jobs to be created by the
	applicant;
	(8)  the wages, salaries, and benefits to be offered by
	the applicant to qualifying job holders;
	(9)  the ability of the applicant to locate or relocate
	in another state or another region of this state;
	(10)  the impact the project will have on this state and
	individual local units of government, including:
	(A)  tax and other revenue gains, direct or
	indirect, that would be realized during the qualifying time period,
	the limitation period, and a period of time after the limitation
	period considered appropriate by the comptroller; and
	(B)  economic effects of the project, including
	the impact on jobs and income, during the qualifying time period,
	the limitation period, and a period of time after the limitation
	period considered appropriate by the comptroller;
	(11)  the economic condition of the region of the state
	at the time the person's application is being considered;
	(12)  the number of new facilities built or expanded in
	the region during the two years preceding the date of the
	application that were eligible to apply for a limitation on
	appraised value under this subchapter;
	(13)  the effect of the applicant's proposal, if
	approved, on the number or size of the school district's
	instructional facilities, as defined by Section 46.001, Education
	Code;
	(14)  the projected market value of the qualified
	property of the applicant as determined by the comptroller;
	(15)  the proposed limitation on appraised value for
	the qualified property of the applicant;
	(16)  the projected dollar amount of the taxes that
	would be imposed on the qualified property, for each year of the
	agreement, if the property does not receive a limitation on
	appraised value with assumptions of the projected appreciation or
	depreciation of the investment and projected tax rates clearly
	stated;
	(17)  the projected dollar amount of the taxes that
	would be imposed on the qualified property, for each tax year of the
	agreement, if the property receives a limitation on appraised value
	with assumptions of the projected appreciation or depreciation of
	the investment clearly stated;
	(18)  the projected effect on the Foundation School
	Program of payments to the district for each year of the agreement;
	and
	(19)  [the projected future tax credits if the
	applicant also applies for school tax credits under Section
	313.103; and
	[(20)]  the total amount of taxes projected to be lost
	or gained by the district over the life of the agreement computed by
	subtracting the projected taxes stated in Subdivision (17) from the
	projected taxes stated in Subdivision (16).
	(b)  The comptroller's recommendations shall be based on the
	criteria listed in Subsections (a)(5)-(19) [(a)(5)-(20)] and on any
	other information available to the comptroller, including
	information provided by the governing body of the school district
	under Section 313.025(b).
	SECTION 6.  Section 313.0265(b), Tax Code, is amended to
	read as follows:
	(b)  The comptroller shall designate the following as
	substantive:
	(1)  each application requesting a limitation on
	appraised value; and
	(2)  the economic impact evaluation made in connection
	with the application[; and
	[(3)       each application requesting school tax credits
	under Section 313.103].
	SECTION 7.  Sections 313.027(a) and (i), Tax Code, are
	amended to read as follows:
	(a)  If the person's application is approved by the governing
	body of the school district, for each of the first nine [eight] tax
	years that begin after the applicable qualifying time period, the
	appraised value for school district maintenance and operations ad
	valorem tax purposes of the person's qualified property as
	described in the agreement between the person and the district
	entered into under this section in the school district may not
	exceed the lesser of:
	(1)  the market value of the property; or
	(2)  subject to Subsection (b), the amount agreed to by
	the governing body of the school district.
	(i)  A person and the school district may not enter into an
	agreement under which the person agrees to provide supplemental
	payments to a school district in an amount that exceeds an amount
	equal to $100 per student per year in average daily attendance, as
	defined by Section 42.005, Education Code, or for a period that
	exceeds the period beginning with the period described by Section
	313.021(4) and ending on the third anniversary of the date the
	person's eligibility for the limitation under this subchapter or
	Subchapter C expires [with the period described by Section
	313.104(2)(B) of this code]. This limit does not apply to amounts
	described by Subsection (f)(1) or (2) of this section.
	SECTION 8.  Section 313.031(a), Tax Code, is amended to read
	as follows:
	(a)  The comptroller shall:
	(1)  adopt rules and forms necessary for the
	implementation and administration of this chapter, including rules
	for determining whether a property owner's property qualifies as a
	qualified investment under Section 313.021(1); and
	(2)  provide without charge one copy of the rules and
	forms to any school district and to any person who states that the
	person intends to apply for a limitation on appraised value under
	this subchapter [or a tax credit under Subchapter D].
	SECTION 9.  The heading to Subchapter E, Chapter 313, Tax
	Code, is amended to read as follows:
	SUBCHAPTER E. LIMITATION ON APPRAISED VALUE [AVAILABILITY OF TAX
	CREDIT] AFTER PROGRAM EXPIRES
	SECTION 10.  Section 313.171(b), Tax Code, is amended to
	read as follows:
	(b)  The repeal [expiration] of Subchapter D does not affect
	a property owner's entitlement to a tax credit granted under
	Subchapter D if the property owner qualified for the tax credit
	before the repeal [expiration] of Subchapter D.
	SECTION 11.  Subchapter D, Chapter 313, Tax Code, is
	repealed.
	SECTION 12.  This Act applies only to an agreement entered
	into on or after the effective date of this Act. An agreement
	entered into 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 13.  This Act takes effect September 1, 2013.