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.