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�	H.B.�No.�3676

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�	AN ACT
�	relating to the Texas Economic Development Act.
�	�������BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
�	�������SECTION�1.��Section 313.007, Tax Code, is amended to read as
�	follows:
�	�������Sec.�313.007.��EXPIRATION.��Subchapters B, C, and D expire
�	December 31, 2014 [2011].
�	�������SECTION�2.��Section 313.021, Tax Code, is amended to read as
�	follows:
�	�������Sec.�313.021.��DEFINITIONS. �In this subchapter:
�	�������������(1)��"Qualified investment" means:
�	�������������������(A)��tangible personal property that is first
�	placed in service in this state during the applicable qualifying
�	time period that begins on or after January 1, 2002, without regard
�	to whether the property is affixed to or incorporated into real
�	property, and that is described as Section 1245 property by Section
�	1245(a), Internal Revenue Code of 1986;
�	�������������������(B)��tangible personal property that is first
�	placed in service in this state during the applicable qualifying
�	time period that begins on or after January 1, 2002, without regard
�	to whether the property is affixed to or incorporated into real
�	property, and that is used in connection with the manufacturing,
�	processing, or fabrication in a cleanroom environment of a
�	semiconductor product, without regard to whether the property is
�	actually located in the cleanroom environment, including:
�	�������������������������(i)��integrated systems, fixtures, and
�	piping;
�	�������������������������(ii)��all property necessary or adapted to
�	reduce contamination or to control airflow, temperature, humidity,
�	chemical purity, or other environmental conditions or
�	manufacturing tolerances; and
�	�������������������������(iii)��production equipment and machinery,
�	moveable cleanroom partitions, and cleanroom lighting;
�	�������������������(C)��tangible personal property that is first
�	placed in service in this state during the applicable qualifying
�	time period that begins on or after January 1, 2002, without regard
�	to whether the property is affixed to or incorporated into real
�	property, and that is used in connection with the operation of a
�	nuclear electric power generation facility, including:
�	�������������������������(i)��property, including pressure vessels,
�	pumps, turbines, generators, and condensers, used to produce
�	nuclear electric power; and
�	�������������������������(ii)��property and systems necessary to
�	control radioactive contamination;
�	�������������������(D)��tangible personal property that is first
�	placed in service in this state during the applicable qualifying
�	time period that begins on or after January 1, 2002, without regard
�	to whether the property is affixed to or incorporated into real
�	property, and that is used in connection with operating an
�	integrated gasification combined cycle electric generation
�	facility, including:
�	�������������������������(i)��property used to produce electric power
�	by means of a combined combustion turbine and steam turbine
�	application using synthetic gas or another product produced by the
�	gasification of coal or another carbon-based feedstock; or
�	�������������������������(ii)��property used in handling materials to
�	be used as feedstock for gasification or used in the gasification
�	process to produce synthetic gas or another carbon-based feedstock
�	for use in the production of electric power in the manner described
�	by Subparagraph (i); [or]
�	�������������������(E)��tangible personal property that is first
�	placed in service in this state during the applicable qualifying
�	time period that begins on or after January 1, 2010, without regard
�	to whether the property is affixed to or incorporated into real
�	property, and that is used in connection with operating an advanced
�	clean energy project, as defined by Section 382.003, Health and
�	Safety Code; or
�	�������������������(F)��a building or a permanent, nonremovable
�	component of a building that is built or constructed during the
�	applicable qualifying time period that begins on or after January
�	1, 2002, and that houses tangible personal property described by
�	Paragraph (A), (B), (C), [or] (D), or (E).
�	�������������(2)��"Qualified property" means:
�	�������������������(A)��land:
�	�������������������������(i)��that is located in an area designated as
�	a reinvestment zone under Chapter 311 or 312 or as an enterprise
�	zone under Chapter 2303, Government Code;
�	�������������������������(ii)��on which a person proposes to
�	construct a new building or erect or affix a new improvement that
�	does not exist before the date the person [owner] applies for a
�	limitation on appraised value under this subchapter;
�	�������������������������(iii)��that is not subject to a tax abatement
�	agreement entered into by a school district under Chapter 312; and
�	�������������������������(iv)��on which, in connection with the new
�	building or new improvement described by Subparagraph (ii), the
�	owner or lessee of, or the holder of another possessory interest in,
�	the land proposes to:
�	�������������������������������(a)��make a qualified investment in an
�	amount equal to at least the minimum amount required by Section
�	313.023; and
�	�������������������������������(b)��create at least 25 new jobs;
�	�������������������(B)��the new building or other new improvement
�	described by Paragraph (A)(ii); and
�	�������������������(C)��tangible personal property that:
�	�������������������������(i)��is not subject to a tax abatement
�	agreement entered into by a school district under Chapter 312; and
�	�������������������������(ii)��except for new equipment described in
�	Section 151.318(q) or (q-1), is first placed in service in the new
�	building or in or on the new improvement described by Paragraph
�	(A)(ii), or on the land on which that new building or new
�	improvement is located, if the personal property is ancillary and
�	necessary to the business conducted in that new building or in or on
�	that new improvement.
�	�������������(3)��"Qualifying job" means a permanent full-time job
�	that:
�	�������������������(A)��requires at least 1,600 hours of work a year;
�	�������������������(B)��is not transferred from one area in this
�	state to another area in this state;
�	�������������������(C)��is not created to replace a previous
�	employee;
�	�������������������(D)��is covered by a group health benefit plan[,
�	as defined by Section 481.151, Government Code,] for which the
�	business offers to pay at least 80 percent of the premiums or other
�	charges assessed for employee-only coverage under the plan,
�	regardless of whether an employee may voluntarily waive the
�	coverage; and
�	�������������������(E)��pays at least 110 percent of:
�	�������������������������(i)��the county average weekly wage for
�	manufacturing jobs in the county where the job is located; or
�	�������������������������(ii)��the county average weekly wage for all
�	jobs in the county where the job is located, if the property owner
�	creates more than 1,000 jobs in that county.
�	�������������(4)��"Qualifying time period" means:
�	�������������������(A)��the period that begins on the date that a
�	person's application for a limitation on appraised value under this
�	subchapter is approved by the governing body of the school district
�	and ends on December 31 of the second tax year that begins after
�	that date [first two tax years that begin on or after the date a
�	person's application for a limitation on appraised value under this
�	subchapter is approved], except as provided by Paragraph (B) or (C)
�	of this subdivision or Section 313.027(h); [or]
�	�������������������(B)��in connection with a nuclear electric power
�	generation facility, the first seven tax years that begin on or
�	after the third anniversary of the date the school district
�	approves the property owner's application for a limitation on
�	appraised value under this subchapter, unless a shorter time period
�	is agreed to by the governing body of the school district and the
�	property owner; or
�	�������������������(C)��in connection with an advanced clean energy
�	project, as defined by Section 382.003, Health and Safety Code, the
�	first five tax years that begin on or after the third anniversary of
�	the date the school district approves the property owner's
�	application for a limitation on appraised value under this
�	subchapter, unless a shorter time period is agreed to by the
�	governing body of the school district and the property owner.
�	�������������(5)��"County average weekly wage for manufacturing
�	jobs" means:
�	�������������������(A)��the average weekly 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 appraised value under this
�	subchapter, as computed by the Texas Workforce Commission; or
�	�������������������(B)��the average weekly 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 appraised value under this subchapter, as computed by
�	the Texas Workforce Commission.
�	�������SECTION�3.��Section 313.024(b), Tax Code, is amended to read
�	as follows:
�	�������(b)��To be eligible for a limitation on appraised value under
�	this subchapter, the entity must use the property in connection
�	with:
�	�������������(1)��manufacturing;
�	�������������(2)��research and development;
�	�������������(3)��a clean coal project, as defined by Section 5.001,
�	Water Code;
�	�������������(4)��an advanced clean energy project, as defined by
�	Section 382.003, Health and Safety Code;
�	�������������(5)��renewable energy electric generation;
�	�������������(6)��electric power generation using integrated
�	gasification combined cycle technology; [or]
�	�������������(7)��nuclear electric power generation; or
�	�������������(8)��a computer center primarily used in connection
�	with one or more activities described by Subdivisions (1) through
�	(7) conducted by the entity.
�	�������SECTION�4.��Section 313.024(e), Tax Code, is amended by
�	amending Subdivision (1) and adding Subdivisions (5) and (6) to
�	read as follows:
�	�������������(1)��"Manufacturing" means an establishment primarily
�	engaged in activities described in sectors 31-33 of the 2007 North
�	American Industry Classification System [and "research and
�	development" have the meanings assigned by Section 171.751].
�	�������������(5)��"Research and development" means an establishment
�	primarily engaged in activities described in category 541710 of the
�	2002 North American Industry Classification System.
�	�������������(6)��"Computer center" means an establishment
�	primarily engaged in providing electronic data processing and
�	information storage.
�	�������SECTION�5.��Section 313.025, Tax Code, is amended by
�	amending Subsections (a), (b), and (d) and adding Subsections
�	(a-1), (d-1), (h), and (i) to read as follows:
�	�������(a)��The owner or lessee of, or the holder of another
�	possessory interest in, any qualified property described by Section
�	313.021(2)(A), (B), or (C) may apply to the governing body of the
�	school district in which the property is located for a limitation on
�	the appraised value for school district maintenance and operations
�	ad valorem tax purposes of the person's qualified property. An
�	application must be made on the form prescribed by the comptroller
�	and include the information required by the comptroller, and it
�	must be accompanied by:
�	�������������(1)��the application fee established by the governing
�	body of the school district;
�	�������������(2)��information sufficient to show that the real and
�	personal property identified in the application as qualified
�	property meets the applicable criteria established by Section
�	313.021(2); and
�	�������������(3)��information relating to each applicable criterion
�	listed in Section 313.026.
�	�������(a-1)��Within seven days of the receipt of each document, the
�	school district shall submit to the comptroller a copy of the
�	application and the agreement between the applicant and the school
�	district. If an economic analysis of the proposed project is
�	submitted to the school district, the district shall submit a copy
�	of the analysis to the comptroller. In addition, the school
�	district shall submit to the comptroller any subsequent revision of
�	or amendment to any of those documents within seven days of its
�	receipt. The comptroller shall publish each document received from
�	the school district under this subsection on the comptroller's
�	Internet website. If the school district maintains a generally
�	accessible Internet website, the district shall provide on its
�	website a link to the location of those documents posted on the
�	comptroller's website in compliance with this subsection. This
�	subsection does not require the comptroller to post information
�	that is confidential under Section 313.028.
�	�������(b)��The governing body of a school district is not required
�	to consider an application for a limitation on appraised value that
�	is filed with the governing body under Subsection (a). �If the
�	governing body of the school district does elect to consider an
�	application, the governing body shall deliver three copies of the
�	application to the comptroller and request that the comptroller
�	provide an economic impact evaluation of the application to the
�	school district. �Except as provided by Subsection (b-1), the
�	comptroller shall conduct or contract with a third person to
�	conduct the evaluation, which shall be completed and provided to
�	the governing body of the school district as soon as practicable. �
�	The governing body shall provide to the comptroller or third person
�	any requested information. �A methodology to allow comparisons of
�	economic impact for different schedules of the addition of
�	qualified investment or qualified property may be developed as part
�	of the economic impact evaluation. �The governing body shall
�	provide a copy of the evaluation to the applicant on request. �The
�	comptroller may charge and collect a fee sufficient to cover the
�	costs of providing the economic impact evaluation. �The governing
�	body of a school district shall approve or disapprove an
�	application before the 151st [121st] day after the date the
�	application is filed, unless the economic impact evaluation has not
�	been received or an extension is agreed to by the governing body and
�	the applicant.
�	�������(d)��Before the 91st [61st] day after the date the
�	comptroller receives the copy of the application, the comptroller
�	shall submit a recommendation to the governing body of the school
�	district as to whether the application should be approved or
�	disapproved.
�	�������(d-1)��The governing body of a school district may approve an
�	application that the comptroller has recommended should be
�	disapproved only if:
�	�������������(1)��the governing body holds a public hearing the sole
�	purpose of which is to consider the application and the
�	comptroller's recommendation; and
�	�������������(2)��at a subsequent meeting of the governing body held
�	after the date of the public hearing, at least two-thirds of the
�	members of the governing body vote to approve the application.
�	�������(h)��After receiving a copy of the application, the
�	comptroller shall determine whether the property meets the
�	requirements of Section 313.024 for eligibility for a limitation on
�	appraised value under this subchapter. The comptroller shall
�	notify the governing body of the school district of the
�	comptroller's determination and provide the applicant an
�	opportunity for a hearing before the determination becomes final.
�	A hearing under this subsection is a contested case hearing and
�	shall be conducted by the State Office of Administrative Hearings
�	in the manner provided by Section 2003.101, Government Code. The
�	applicant has the burden of proof on each issue in the hearing. �The
�	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, Government Code.
�	�������(i)��If the comptroller's determination under Subsection (h)
�	that the property does not meet the requirements of Section 313.024
�	for eligibility for a limitation on appraised value under this
�	subchapter becomes final, the comptroller is not required to
�	provide an economic impact evaluation of the application or to
�	submit a recommendation to the school district as to whether the
�	application should be approved or disapproved, and the governing
�	body of the school district may not grant the application.
�	�������SECTION�6.��Sections 313.026(a) and (b), Tax Code, are
�	amended to read as follows:
�	�������(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)�[(2)]��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)�[(3)]��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)�[(4)]��the wages, salaries, and benefits to be
�	offered by the applicant to qualifying job holders;
�	�������������(9)�[(5)]��the ability of the applicant to locate or
�	relocate in another state or another region of this state;
�	�������������(10)�[(6)]��the impact the project [added
�	infrastructure] will have on this state and individual local units
�	of government [the region], 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 [by the school
�	district]; and
�	�������������������(B)��[subsequent] 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 [on the local and regional tax bases];
�	�������������(11)�[(7)]��the economic condition of the region of the
�	state at the time the person's application is being considered;
�	�������������(12)�[(8)]��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; [and]
�	�������������(13)�[(9)]��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;
�	�������������(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)-(20) [(a)(2)-(9)] 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�7.��Subchapter B, Chapter 313, Tax Code, is amended
�	by adding Section 313.0265 to read as follows:
�	�������Sec.�313.0265.��DISCLOSURE OF APPRAISED VALUE LIMITATION
�	INFORMATION. (a) �The comptroller shall post on the comptroller's
�	Internet website each document or item of information the
�	comptroller designates as substantive before the 15th day after the
�	date the document or item of information was received or created.
�	Each document or item of information must continue to be posted
�	until the appraised value limitation expires.
�	�������(b)��The comptroller shall designate the following as
�	substantive:
�	�������������(1)��each application requesting a limitation on
�	appraised value;
�	�������������(2)��the economic impact evaluation made in connection
�	with the application; and
�	�������������(3)��each application requesting school tax credits
�	under Section 313.103.
�	�������(c)��If a school district maintains a generally accessible
�	Internet website, the district shall maintain a link on its
�	Internet website to the area of the comptroller's Internet website
�	where information on each of the district's agreements to limit
�	appraised value is maintained.
�	�������SECTION�8.��Section 313.027, Tax Code, is amended by
�	amending Subsection (f) and adding Subsections (h) and (i) to read
�	as follows:
�	�������(f)��In addition, the agreement:
�	�������������(1)��must incorporate each relevant provision of this
�	subchapter and, to the extent necessary, include provisions for the
�	protection of future school district revenues through the
�	adjustment of the minimum valuations, the payment of revenue
�	offsets, and other mechanisms agreed to by the property owner and
�	the school district;
�	�������������(2)��may provide that the property owner will protect
�	the school district in the event the district incurs extraordinary
�	education-related expenses related to the project that are not
�	directly funded in state aid formulas, including expenses for the
�	purchase of portable classrooms and the hiring of additional
�	personnel to accommodate a temporary increase in student enrollment
�	attributable to the project;
�	�������������(3)��must require the property owner to maintain a
�	viable presence in the school district for at least three years
�	after the date the limitation on appraised value of the owner's
�	property expires;
�	�������������(4)�[(3)]��must provide for the termination of the
�	agreement, the recapture of ad valorem tax revenue lost as a result
�	of the agreement if the owner of the property fails to comply with
�	the terms of the agreement, and payment of a penalty or interest, or
�	both, on that recaptured ad valorem tax revenue;
�	�������������(5)�[(4)]��may specify any conditions the occurrence of
�	which will require the district and the property owner to
�	renegotiate all or any part of the agreement; and
�	�������������(6)�[(5)]��must specify the ad valorem tax years
�	covered by the agreement.
�	�������(h)��The agreement between the governing body of the school
�	district and the applicant may provide for a deferral of the date on
�	which the qualifying time period for the project is to commence or,
�	subsequent to the date the agreement is entered into, be amended to
�	provide for such a deferral. This subsection may not be construed
�	to permit a qualifying time period that has commenced to continue
�	for more than the number of years applicable to the project under
�	Section 313.021(4).
�	�������(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 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�9.��Subchapter B, Chapter 313, Tax Code, is amended
�	by adding Section 313.0275 to read as follows:
�	�������Sec.�313.0275.��RECAPTURE OF AD VALOREM TAX REVENUE LOST. �
�	(a) �Notwithstanding any other provision of this chapter to the
�	contrary, a person with whom a school district enters into an
�	agreement under this subchapter must make the minimum amount of
�	qualified investment during the qualifying time period and create
�	the required number of qualifying jobs during each year of the
�	agreement.
�	�������(b)��If in any tax year a property owner fails to comply with
�	Subsection (a), the property owner is liable to this state for a
�	penalty equal to the amount computed by subtracting from the market
�	value of the property for that tax year the value of the property as
�	limited by the agreement and multiplying the difference by the
�	maintenance and operations tax rate of the school district for that
�	tax year.
�	�������(c)��A penalty imposed under Subsection (b) becomes
�	delinquent if not paid on or before February 1 of the following tax
�	year. �Section 33.01 applies to the delinquent penalty in the manner
�	that section applies to delinquent taxes.
�	�������SECTION�10.��Section 313.028, Tax Code, is amended to read as
�	follows:
�	�������Sec.�313.028.��CERTAIN BUSINESS INFORMATION CONFIDENTIAL. �
�	Information provided to a school district in connection with an
�	application for a limitation on appraised value under this
�	subchapter that describes the specific processes or business
�	activities to be conducted or the specific tangible personal
�	property to be located on real property covered by the application
�	shall be segregated in the application from other information in
�	the application and is confidential and not subject to public
�	disclosure unless the governing body of the school district
�	approves the application. Other information in the custody of a
�	school district or the comptroller in connection with the
�	application, including information related to the economic impact
�	of a project or the essential elements of eligibility under this
�	chapter, such as the nature and amount of the projected investment,
�	employment, wages, and benefits, may not be considered confidential
�	business information if the governing body of the school district
�	agrees to consider the application.�Information in the custody
�	of a school district or the comptroller if the governing body
�	approves the application is not confidential under this section.
�	�������SECTION�11.��Section 313.051(a), Tax Code, is amended to
�	read as follows:
�	�������(a)��This subchapter applies only to a school district that
�	has territory in:
�	�������������(1)��an area that qualified as a strategic investment
�	area under Subchapter O, Chapter 171, immediately before that
�	subchapter expired [, as defined by Section 171.721]; or
�	�������������(2)��a county:
�	�������������������(A)��that has a population of less than 50,000;
�	and
�	�������������������(B)��[that is not partially or wholly located in a
�	metropolitan statistical area; and
�	�������������������[(C)]��in which, from 1990 to 2000, according to
�	the federal decennial census, the population:
�	�������������������������(i)��remained the same;
�	�������������������������(ii)��decreased; or
�	�������������������������(iii)��increased, but at a rate of not more
�	than three percent per annum.
�	�������SECTION�12.��Sections 313.103 and 313.104, Tax Code, are
�	amended to read as follows:
�	�������Sec.�313.103.��APPLICATION. �(a) An application for a tax
�	credit under this subchapter must be made to the governing body of
�	the school district to which the ad valorem taxes were paid. The
�	application must be:
�	�������������(1)��made on the form prescribed for that purpose by the
�	comptroller and verified by the applicant; and
�	�������������(2)��accompanied by:
�	�������������������(A)��a tax receipt from the collector of taxes for
�	the school district showing full payment of school district ad
�	valorem taxes on the qualified property for the applicable
�	qualifying time period; and
�	�������������������(B)��any other document or information that the
�	comptroller or the governing body considers necessary for a
�	determination of the applicant's eligibility for the credit or the
�	amount of the credit[; and
�	�������������[(3) � � filed before September 1 of the year immediately
�	following the applicable qualifying time period].
�	�������(b)��An application for a tax credit under this subchapter or
�	any information provided by the school district to the Texas
�	Education Agency under Section 42.2515, Education Code, is not
�	confidential.
�	�������Sec.�313.104.��ACTION ON APPLICATION; GRANT OF CREDIT. �
�	Before granting�[the 90th day after the date] the application for a
�	tax credit [is filed], the governing body of the school district
�	shall:
�	�������������(1)��determine the person's eligibility for a tax
�	credit under this subchapter;��and
�	�������������(2)��if the person's application is approved, by order
�	or resolution direct the collector of taxes for the school
�	district:
�	�������������������(A)��in the second and subsequent six tax years
�	that begin after the date the application is approved, to credit
�	against the taxes imposed on the qualified property by the district
�	in that year an amount equal to one-seventh of the total amount of
�	tax credit to which the person is entitled under Section 313.102,
�	except that the amount of a credit granted in any of those tax years
�	may not exceed 50 percent of the total amount of ad valorem school
�	taxes imposed on the qualified property by the school district in
�	that tax year; and
�	�������������������(B)��in the first three tax years that begin on or
�	after the date the person's eligibility for the limitation under
�	Subchapter B or C expires, to credit against the taxes imposed on
�	the qualified property by the district an amount equal to the
�	portion of the total amount of tax credit to which the person is
�	entitled under Section 313.102 that was not credited against the
�	person's taxes under Paragraph (A) in a tax year covered by
�	Paragraph (A), except that the amount of a tax credit granted under
�	this paragraph in any tax year may not exceed the total amount of ad
�	valorem school taxes imposed on the qualified property by the
�	school district in that tax year.
�	�������SECTION�13.��Section 403.302, Government Code, is amended by
�	amending Subsection (d) and adding Subsection (m) to read as
�	follows:
�	�������(d)��For the purposes of this section, "taxable value" means
�	the market value of all taxable property less:
�	�������������(1)��the total dollar amount of any residence homestead
�	exemptions lawfully granted under Section 11.13(b) or (c), Tax
�	Code, in the year that is the subject of the study for each school
�	district;
�	�������������(2)��one-half of the total dollar amount of any
�	residence homestead exemptions granted under Section 11.13(n), Tax
�	Code, in the year that is the subject of the study for each school
�	district;
�	�������������(3)��the total dollar amount of any exemptions granted
�	before May 31, 1993, within a reinvestment zone under agreements
�	authorized by Chapter 312, Tax Code;
�	�������������(4)��subject to Subsection (e), the total dollar amount
�	of any captured appraised value of property that:
�	�������������������(A)��is within a reinvestment zone created on or
�	before May 31, 1999, or is proposed to be included within the
�	boundaries of a reinvestment zone as the boundaries of the zone and
�	the proposed portion of tax increment paid into the tax increment
�	fund by a school district are described in a written notification
�	provided by the municipality or the board of directors of the zone
�	to the governing bodies of the other taxing units in the manner
�	provided by Section 311.003(e), Tax Code, before May 31, 1999, and
�	within the boundaries of the zone as those boundaries existed on
�	September 1, 1999, including subsequent improvements to the
�	property regardless of when made;
�	�������������������(B)��generates taxes paid into a tax increment
�	fund created under Chapter 311, Tax Code, under a reinvestment zone
�	financing plan approved under Section 311.011(d), Tax Code, on or
�	before September 1, 1999; and
�	�������������������(C)��is eligible for tax increment financing under
�	Chapter 311, Tax Code;
�	�������������(5)��for a school district for which a deduction from
�	taxable value is made under Subdivision (4), an amount equal to the
�	taxable value required to generate revenue when taxed at the school
�	district's current tax rate in an amount that, when added to the
�	taxes of the district paid into a tax increment fund as described by
�	Subdivision (4)(B), is equal to the total amount of taxes the
�	district would have paid into the tax increment fund if the district
�	levied taxes at the rate the district levied in 2005;
�	�������������(6)��the total dollar amount of any captured appraised
�	value of property that:
�	�������������������(A)��is within a reinvestment zone:
�	�������������������������(i)��created on or before December 31, 2008,
�	by a municipality with a population of less than 18,000; and
�	�������������������������(ii)��the project plan for which includes
�	the alteration, remodeling, repair, or reconstruction of a
�	structure that is included on the National Register of Historic
�	Places and requires that a portion of the tax increment of the zone
�	be used for the improvement or construction of related facilities
�	or for affordable housing;
�	�������������������(B)��generates school district taxes that are paid
�	into a tax increment fund created under Chapter 311, Tax Code; and
�	�������������������(C)��is eligible for tax increment financing under
�	Chapter 311, Tax Code;
�	�������������(7)��the total dollar amount of any exemptions granted
�	under Section 11.251 or 11.253, Tax Code;
�	�������������(8)��the difference between the comptroller's estimate
�	of the market value and the productivity value of land that
�	qualifies for appraisal on the basis of its productive capacity,
�	except that the productivity value estimated by the comptroller may
�	not exceed the fair market value of the land;
�	�������������(9)��the portion of the appraised value of residence
�	homesteads of individuals who receive a tax limitation under
�	Section 11.26, Tax Code, on which school district taxes are not
�	imposed in the year that is the subject of the study, calculated as
�	if the residence homesteads were appraised at the full value
�	required by law;
�	�������������(10)��a portion of the market value of property not
�	otherwise fully taxable by the district at market value because of:
�	�������������������(A)��action required by statute or the
�	constitution of this state that, if the tax rate adopted by the
�	district is applied to it, produces an amount equal to the
�	difference between the tax that the district would have imposed on
�	the property if the property were fully taxable at market value and
�	the tax that the district is actually authorized to impose on the
�	property, if this subsection does not otherwise require that
�	portion to be deducted; or
�	�������������������(B)��action taken by the district under Subchapter
�	B or C, Chapter 313, Tax Code, before the expiration of the
�	subchapter;
�	�������������(11)��the market value of all tangible personal
�	property, other than manufactured homes, owned by a family or
�	individual and not held or used for the production of income;
�	�������������(12)��the appraised value of property the collection of
�	delinquent taxes on which is deferred under Section 33.06, Tax
�	Code;
�	�������������(13)��the portion of the appraised value of property
�	the collection of delinquent taxes on which is deferred under
�	Section 33.065, Tax Code; and
�	�������������(14)��the amount by which the market value of a
�	residence homestead to which Section 23.23, Tax Code, applies
�	exceeds the appraised value of that property as calculated under
�	that section.
�	�������(m)��Subsection (d)(10) does not apply to property that was
�	the subject of an application under Subchapter B or C, Chapter 313,
�	Tax Code, made after May 1, 2009, that the comptroller recommended
�	should be disapproved.
�	�������SECTION�14.��Section 313.029, Tax Code, is repealed.
�	�������SECTION�15.��Sections 313.021(1)(A), (2), and (5),
�	313.024(e), and 313.025(a), Tax Code, as amended by this Act, are
�	intended to clarify rather than change existing law. �The
�	clarification made by Section 313.021(5), Tax Code, as amended by
�	this Act, is necessary to allow the Texas Workforce Commission to
�	implement that subdivision in conformance with the data collection
�	requirements imposed by the federal government.
�	�������SECTION�16.��The Legislative Budget Board shall conduct an
�	effectiveness and efficiency review of the economic development
�	program established under Chapter 313, Tax Code, and report the
�	results of the review to the legislature not later than January 1,
�	2011.
�	�������SECTION�17.��(a) �Except as provided by Subsection (b) of
�	this section:
�	�������������(1)��this Act takes effect immediately if it receives a
�	vote of two-thirds of all the members elected to each house, as
�	provided by Section 39, Article III, Texas Constitution; and
�	�������������(2)��if this Act does not receive the vote necessary for
�	immediate effect, this Act takes effect September 1, 2009.
�	�������(b)��Sections 313.025(a-1), (h), and (i) and 313.0265, Tax
�	Code, as added by this Act, take effect January 1, 2010.
�
�
�	______________________________	______________________________
�	���President of the Senate	Speaker of the House�����
�
�
�	�������I certify that H.B. No. 3676 was passed by the House on May
�	15, 2009, by the following vote:��Yeas 143, Nays 0, 1 present, not
�	voting; that the House refused to concur in Senate amendments to
�	H.B. No. 3676 on May 29, 2009, and requested the appointment of a
�	conference committee to consider the differences between the two
�	houses; and that the House adopted the conference committee report
�	on H.B. No. 3676 on May 31, 2009, by the following vote:��Yeas 146,
�	Nays 0, 1 present, not voting.
�
�	______________________________
�	Chief Clerk of the House���
�
�	�������I certify that H.B. No. 3676 was passed by the Senate, with
�	amendments, on May 27, 2009, by the following vote:��Yeas 25, Nays
�	6; at the request of the House, the Senate appointed a conference
�	committee to consider the differences between the two houses; and
�	that the Senate adopted the conference committee report on H.B. No.
�	3676 on May 31, 2009, by the following vote:��Yeas 26, Nays 5.
�
�	______________________________
�	Secretary of the Senate���
�	APPROVED: __________________
�	����������������Date�������
�	�
�	�������� __________________
�	��������������Governor�������