H.B. No. 5         AN ACT   relating to agreements authorizing a limitation on taxable value of   certain property to provide for the creation of jobs and the   generation of state and local tax revenue; authorizing fees;   authorizing penalties.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 403, Government Code, is amended by   adding Subchapter T to read as follows:   SUBCHAPTER T. TEXAS JOBS, ENERGY, TECHNOLOGY, AND INNOVATION ACT          Sec. 403.601.  PURPOSES. The purposes of this subchapter   are to:                (1)  create new, high-paying permanent jobs and   construction jobs in this state;                (2)  encourage financially positive economic   development in this state;                (3)  provide a temporary competitive economic   incentive for attracting certain large-scale economic development   projects to this state that, in the absence of this subchapter,   would likely locate in another state or nation;                (4)  encourage energy and water infrastructure   development, including new and expanded dispatchable electric   generation facilities;                (5)  make this state a national and international   leader in new and innovative technologies;                (6)  encourage the establishment of certain advanced   manufacturing industry sectors critical to national defense and   health care;                (7)  create new wealth, raise personal income, and   foster long-term expansion of state and local tax bases;                (8)  provide growing and sustainable economic   opportunity for the residents of this state; and                (9)  incentivize the preceding objectives in a   balanced, transparent, and accountable manner.          Sec. 403.602.  DEFINITIONS. In this subchapter:                (1)  "Additional job" means a full-time job in   connection with an eligible project that is not a required job for   the same project.                (2)  "Agreement" means an agreement entered into under   Section 403.612.                (3)  "Applicant" means a person that applies for, or   enters into an agreement providing for, a limitation on the taxable   value of eligible property used as part of an eligible project,   including the person's assignees or successors-in-interest.                (4)  "Appraised value," "tax year," and "taxing unit"   have the meanings assigned by Section 1.04, Tax Code.                (5)  "Construction completion date" means the date on   which an eligible project is first capable of being used for the   purposes for which it is constructed.                (6)  "Construction job" means an otherwise full-time   job that is temporary in nature and is performed before the start of   the incentive period applicable to an eligible project to perform   construction, maintenance, remodeling, or repair work for an   applicant in connection with the project.                (7)  "Construction period" means the period prescribed   by an agreement as the construction period of the eligible project   that is the subject of the agreement.                (8)  "Eligible project":                      (A)  means a project:                            (i)  to construct or expand a new or existing   facility that is:                                  (a)  a manufacturing facility;                                  (b)  a facility related to the   provision of utility services, including an electric generation   facility that is considered to be dispatchable because the   facility's output can be controlled primarily by forces under human   control;                                  (c)  a facility related to the   development of natural resources; or                                  (d)  a facility engaged in the   research, development, or manufacture of high-tech equipment or   technology; or                            (ii)  to construct or expand critical   infrastructure; and                      (B)  does not include a project to construct or   expand a new or existing:                            (i)  nondispatchable electric generation   facility; or                            (ii)  electric energy storage facility.                (9)  "Eligible property" means property that is used as   part of an eligible project that is wholly owned by an applicant or   leased by an applicant under a capitalized lease and consists of:                      (A)  a new building or expansion of an existing   building, including a permanent, nonremovable component of a   building, that is:                            (i)  constructed after the date the   agreement pertaining to the project is entered into; and                            (ii)  located in an area designated as a   reinvestment zone under Chapter 311 or 312, Tax Code, or as an   enterprise zone under Chapter 2303 of this code, at the time the   agreement pertaining to the project is entered into; or                      (B)  tangible personal property, other than   inventory, first located in the zone described by Paragraph (A)(ii)   after the date the agreement pertaining to the project is entered   into.                (10)  "Full-time job" means a permanent full-time job   that requires a total of at least 1,600 hours of work a year in   connection with an eligible project.  The term does not include a   construction job.                (11)  "Incentive period" for an eligible project means   the period prescribed by the agreement pertaining to the project   during which the eligible property used as part of the project is   subject to a limitation on taxable value.                (12)  "Independent contractor" has the meaning   assigned by Section 406.121, Labor Code.                (13)  "Investment" means the costs incurred by an   applicant to acquire or construct eligible property composing an   eligible project, other than the cost of land or inventory.                (14)  "Oversight committee" means the Jobs, Energy,   Technology, and Innovation Act Oversight Committee established   under Section 403.618.                (15)  "Qualified opportunity zone" means an area   designated as such by the secretary of the United States Treasury.                (16)  "Required job" means a job that an applicant   commits to create or demonstrate in connection with an eligible   project as prescribed by Section 403.604.                (17)  "Total jobs" means the sum of required jobs and   additional jobs in connection with an eligible project.          Sec. 403.603.  EXPIRATION.  This subchapter expires December   31, 2033.          Sec. 403.604.  REQUIRED JOBS AND INVESTMENT.  (a)  A jobs   requirement prescribed by this section does not apply to an   eligible project that is an electric generation facility described   by Section 403.602(8)(A)(i)(b).          (b)  To be eligible to enter into an agreement, an applicant   for a limitation on taxable value of eligible property to be used   for a proposed eligible project must agree to:                (1)  if the project is to be located in a county with a   population of at least 750,000:                      (A)  create at least 75 required jobs by the end of   the first tax year of the incentive period prescribed by the   agreement and demonstrate an average of at least that number of jobs   during each following tax year until the date the agreement   expires; and                      (B)  make an investment in the project in an   amount of at least $200 million by the end of the first tax year of   the incentive period prescribed by the agreement;                (2)  if the project is to be located in a county with a   population of at least 250,000 but less than 750,000:                      (A)  create at least 50 required jobs by the end of   the first tax year of the incentive period prescribed by the   agreement and demonstrate an average of at least that number of jobs   during each following tax year until the date the agreement   expires; and                      (B)  make an investment in the project in an   amount of at least $100 million by the end of the first tax year of   the incentive period prescribed by the agreement;                (3)  if the project is to be located in a county with a   population of at least 100,000 but less than 250,000:                      (A)  create at least 35 required jobs by the end of   the first tax year of the incentive period prescribed by the   agreement and demonstrate an average of at least that number of jobs   during each following tax year until the date the agreement   expires; and                      (B)  make an investment in the project in an   amount of at least $50 million by the end of the first tax year of   the incentive period prescribed by the agreement; or                (4)  if the project is to be located in a county with a   population of less than 100,000:                      (A)  create at least 10 required jobs by the end of   the first tax year of the incentive period prescribed by the   agreement and demonstrate an average of at least that number of jobs   during each following tax year until the date the agreement   expires; and                      (B)  make an investment in the project in an   amount of at least $20 million by the end of the first tax year of   the incentive period prescribed by the agreement.          (c)  For purposes of Subsection (b), each required job   created in connection with an eligible project:                (1)  must be a new full-time job in this state:                      (A)  maintained in the usual course and scope of   the applicant's business, which may be performed by an individual   who is a trainee under the Texans Work program established under   Chapter 308, Labor Code; or                      (B)  performed by an independent contractor and   the independent contractor's employees at the site of the project;   and                (2)  may not be transferred by the applicant from an   existing facility or location in this state or otherwise created to   replace an existing job, unless the applicant fills the vacancy   caused by the transfer.          (d)  For purposes of Subsection (b), an applicant may   demonstrate that the applicant has met the applicable minimum   investment requirement by any reasonable means. The applicant is   considered to have met the applicable minimum investment   requirement if the most recent appraisal roll for the county used to   determine the minimum investment requirement under this section   indicates that the appraised value of the eligible property   composing the project as of January 1 of the second tax year of the   incentive period prescribed by the agreement is equal to or greater   than the minimum investment requirement applicable to the project.          (e)  If an eligible project is located in more than one   county, the jobs and investment requirement applicable to the   project is determined using the jobs and investment requirement   applicable to the county with the smallest population in which any   part of the project is located.          (f)  The comptroller may adopt rules necessary to interpret   and administer this section, including rules regarding:                (1)  the manner for determining:                      (A)  which jobs and investment requirements   prescribed by Subsection (b) apply to an eligible project; and                      (B)  the circumstances under which a trainee under   the Texans Work program established under Chapter 308, Labor Code,   may be considered a full-time employee for purposes of this   section; and                (2)  the method by which an applicant must demonstrate   an average of at least the number of required jobs for purposes of   satisfying the jobs requirement prescribed by Subsection (b).          Sec. 403.605.  TAXABLE VALUE OF ELIGIBLE PROPERTY. (a)  The   taxable value for school district maintenance and operations ad   valorem tax purposes of eligible property subject to an agreement   for each tax year of the incentive period prescribed by the   agreement is equal to:                (1)  50 percent of the market value of the property for   that tax year; or                (2)  if the property is located in a qualified   opportunity zone, 25 percent of the market value of the property for   that tax year.          (b)  The taxable value of eligible property for school   district maintenance and operations ad valorem tax purposes is zero   for each tax year beginning with the tax year following the year in   which the agreement pertaining to the property is entered into and   ending December 31 of the tax year that includes the construction   completion date for the applicable eligible project.          (c)  The chief appraiser for the appraisal district in which   eligible property is located shall determine the market value and   appraised value of the property and include the market value,   appraised value, and taxable value of the property as determined   under this section in the appraisal records for the appraisal   district.          (d)  The chief appraiser for the appraisal district in which   eligible property subject to an agreement is located may not use an   estimated value included in the application to which the agreement   pertains to determine the market value of the property.          Sec. 403.606.  CERTAIN PERSONS INELIGIBLE. A person is not   eligible to submit an application to the comptroller or enter into   an agreement under this subchapter if the person is a company that   is listed as ineligible to receive a state contract or investment   under Chapter 808, 809, 2270, 2271, or 2274, as added by Chapters   529 (S.B. 13), 530 (S.B. 19), and 975 (S.B. 2116), Acts of the 87th   Legislature, Regular Session, 2021.          Sec. 403.607.  APPLICATION. (a) A person who proposes to   construct an eligible project in a school district for which the   person seeks a limitation on the taxable value for maintenance and   operations ad valorem tax purposes of the district of the eligible   property used as part of the proposed project must submit an   application to the comptroller.          (b)  A person submitting an application under Subsection (a)   must use the form prescribed by the comptroller. The form must   contain the following information:                (1)  the applicant's name, address, and Texas taxpayer   identification number and the contact information for the   applicant's 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 applicable school district's name and address   and the contact information for the district's authorized   representative;                (4)  the legal description of the property on which the   project is proposed to be located and, if applicable, the address of   the proposed project;                (5)  each county in which the project is proposed to be   located and the population of each of those counties;                (6)  the applicable number of required jobs prescribed   by Section 403.604 for the proposed project;                (7)  a list of each taxing unit in which the project is   proposed to be located;                (8)  a brief description of the proposed project;                (9)  any grant or loan of public money or other tax   incentive, if applicable, that the applicant is receiving or   expects to receive for the project;                (10)  a brief description of the eligible property to   be used as part of the proposed project;                (11)  a projected timeline for construction and   completion of the proposed project, including the projected dates   on which construction will begin, construction will be completed,   and commercial operations will start;                (12)  the proposed incentive period;                (13)  the name and location of the existing or proposed   reinvestment zone or enterprise zone in which the proposed project   will be located;                (14)  whether the project is proposed to be located in a   qualified opportunity zone;                (15)  a statement indicating whether the applicant   considered locating the proposed project in a qualified opportunity   zone;                (16)  a brief summary of the projected economic   benefits of the proposed project; and                (17)  the applicant's signature and certification of   the accuracy of the information included in the application.          (c)  The form prescribed by Subsection (b) must allow the   applicant to segregate confidential information described by   Section 403.621(a) from other information in the application.          (d)  An applicant must include with an application the   following:                (1)  an application fee payable to the comptroller in   an amount determined by the comptroller not to exceed an amount   sufficient to cover the costs associated with the comptroller's   evaluation of the application;                (2)  an application fee payable to the school district   in an amount determined by the comptroller not to exceed $30,000 to   cover the costs associated with the district's evaluation of the   application, including the cost of processing the application,   retaining professional services, and, if applicable, creating a   reinvestment zone or enterprise zone;                (3)  a map showing the site of the proposed project;                (4)  the economic benefit statement prepared under   Section 403.608 in connection with the proposed project; and                (5)  a sworn affidavit stating that the applicant is   not ineligible under Section 403.606 to submit the application.          (e)  The comptroller may request that an applicant provide   any additional information the comptroller reasonably determines   is necessary to complete the comptroller's evaluation of the   application. The comptroller may require an applicant to submit   the additional information by a certain date and may extend that   deadline on a showing of good cause. The comptroller is not   required to take any further action on an application until it is   complete.          (f)  The comptroller shall notify an applicant and the   applicable school district when the applicant's application is   administratively complete.          Sec. 403.608.  ECONOMIC BENEFIT STATEMENT. (a) An   applicant shall submit an economic benefit statement with the   applicant's application.          (b)  An economic benefit statement must include the   following information for each year of the period that begins on the   date the applicant projects construction of the proposed project   that is the subject of the application will begin and ends on the   25th anniversary of the date the incentive period ends:                (1)  an estimate of the number of total jobs that will   be created by the project;                (2)  an estimate of the total amount of capital   investment that will be created by the project;                (3)  an estimate of the increase in appraised value of   property that will be attributable to the project;                (4)  an estimate of the amount of ad valorem taxes that   will be imposed by each taxing unit, including the applicable   school district, on the property used as part of the project;                (5)  an estimate of the amount of state taxes that will   be paid in connection with the project; and                (6)  an estimate of the associated economic benefits   that may reasonably be attributed to the project, including:                       (A)  the impact on the gross revenues and   employment levels of local businesses that provide goods or   services in connection with the project or to the applicant's   employees;                      (B)  the amount of state and local taxes that will   be generated as a result of the indirect economic impact of the   project, including all ad valorem taxes not otherwise estimated in   Subdivision (4) that will be imposed on property placed into   service as a result of the project;                      (C)  the development of complementary businesses   or industries that locate in this state as a direct consequence of   the project;                      (D)  the total impact of the project on the gross   domestic product of this state;                      (E)  the total impact of the project on personal   income in this state; and                      (F)  the total impact of the project on state and   local taxes.          (c)  An applicant may use standard economic estimation   techniques, including economic multipliers, to create an economic   benefit statement.  An applicant must base each estimate required   by Subsection (b) on reasonable projections of the economic and   labor conditions of this state for the period for which the estimate   is made.          (d)  The comptroller shall establish criteria for the   methodology to be used by an applicant to create an economic benefit   statement.          (e)  The comptroller may require an applicant to supplement   or modify an economic benefit statement to ensure the accuracy of   the estimates required to be included in the statement under   Subsection (b).          Sec. 403.609.  COMPTROLLER ACTION ON APPLICATION. (a) The   comptroller shall determine whether to recommend or not recommend   for approval an application submitted to the comptroller under   Section 403.607. The comptroller shall recommend an application   for approval if the comptroller makes the findings prescribed by   Subsection (b). The comptroller may not recommend an application   for approval if the comptroller is unable to make the findings   prescribed by that subsection.          (b)  The comptroller may not recommend an application for   approval unless the comptroller finds that:                (1)  the proposed project that is the subject of the   application is an eligible project;                (2)  the proposed project is reasonably likely to   generate, before the 20th anniversary of the first day of the   construction period, state or local tax revenue, including ad   valorem tax revenue attributable to the effect of the project on the   economy of this state, in an amount sufficient to offset the school   district maintenance and operations ad valorem tax revenue lost as   a result of the agreement;                (3)  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; and                (4)  if the application indicates that the eligible   project is proposed to be located in a qualified opportunity zone,   the project is located in the zone.          (c)  In making the finding required by Subsection (b)(3), the   comptroller shall consider factors related to the selection of the   proposed site for the project, including the workforce, the   regulatory environment, infrastructure, transportation, market   conditions, investment alternatives, and any specific incentive   information provided by the applicant related to other potential   sites.          (d)  Not later than the 60th day after the date the   comptroller determines that an application is complete, the   comptroller shall take the action required by Subsection (a)   regarding the application and provide written notice of the action   to the governor, the school district in which the project is   proposed to be located, and the applicant.          (e)  The comptroller shall send to the governor and the   applicable school district with the notice required by Subsection   (d) regarding an application recommended by the comptroller under   Subsection (a) a copy of the application and each document and item   of information the comptroller relied on to recommend the   application.          Sec. 403.610.  GOVERNOR ACTION ON APPLICATION. (a) The   governor shall, not later than the 30th day after the date the   governor receives an application sent to the governor by the   comptroller under Section 403.609, consider the application and by   official action determine whether the governor is agreeable to   entering into the agreement that is the subject of the application.          (b)  The governor shall provide written notice of the   governor's determination under Subsection (a) to the comptroller,   the applicable school district, the oversight committee, and the   applicant not later than the seventh day after the date the governor   makes the determination under that subsection.          Sec. 403.611.  SCHOOL DISTRICT ACTION ON APPLICATION. (a)   The governing body of a school district shall, not later than the   30th day after the date the district receives an application sent to   the district by the comptroller under Section 403.609, consider the   application and by official action determine whether the district   is agreeable to entering into the agreement that is the subject of   the application.          (b)  The governing body of the school district shall hold a   public hearing on the application during the period described by   Subsection (a).          (c)  The governing body of the school district must provide   notice of the public hearing in the manner required by Chapter 551,   except that the district must provide the notice not later than the   15th day before the date of the hearing.  The notice must contain:                (1)  the name of the applicant;                (2)  the name and location of the existing or proposed   reinvestment zone or enterprise zone in which the eligible project   that is the subject of the application is proposed to be located;                (3)  a general description of the proposed eligible   project; and                (4)  the projected investment the applicant will make   in the project.          (d)  The governing body of the school district shall provide   written notice of the district's determination under Subsection (a)   to the comptroller, the governor, and the applicant.          Sec. 403.612.  AGREEMENT. (a) The governor, the governing   body of a school district, and an applicant may enter into an   agreement to limit the taxable value for maintenance and operations   ad valorem tax purposes of the district of the eligible property   used as part of an eligible project that is the subject of an   application for which both the governor and the governing body of   the district have made a favorable determination under Sections   403.610(a) and 403.611(a), respectively.          (b)  An agreement entered into under this section between the   governor, a school district, and an applicant pertaining to an   eligible project shall:                (1)  specify the project to which the agreement   applies;                (2)  specify the term of the agreement, which must:                      (A)  begin on the date the agreement is entered   into; and                      (B)  end on December 31 of the third tax year   following the end of the incentive period;                (3)  specify the construction and incentive periods for   the project;                (4)  specify the manner for determining the taxable   value for school district maintenance and operations ad valorem tax   purposes during the incentive period under Section 403.605 for the   eligible property subject to the agreement;                (5)  specify the applicable jobs and investment   requirements prescribed by Section 403.604 and require the   applicant to comply with those requirements;                (6)  require that the average annual wage paid to all   persons employed by the applicant in connection with the project   used to calculate total jobs exceed 110 percent of the average   annual wage for all jobs in the applicable industry sector during   the most recent four quarters for which data is available, as   computed by the Texas Workforce Commission, with the applicant's   average annual wage being equal to the quotient of:                      (A)  the applicant's total wages paid, other than   wages paid for construction jobs, as reported under Section   403.616(c)(4); and                      (B)  the applicant's number of total jobs as   reported under Section 403.616(c)(3);                (7)  require the applicant to pay a penalty prescribed   by Section 403.614 if the applicant fails to comply with an   applicable jobs or wage requirement;                (8)  require the applicant to offer and contribute to a   group health benefit plan for each employee of the applicant who is   employed in a full-time job;                (9)  require the applicant, at the time the applicant   executes the agreement, to execute a performance bond in an amount   the comptroller determines to be reasonable and necessary to   protect the interests of the state and the district and conditioned   on the applicant's compliance with the terms of the agreement;                (10)  authorize the governor or the district to   terminate the agreement as provided by Subsection (d); and                (11)  incorporate each relevant provision of this   subchapter.          (c)  An agreement entered into under this section between the   governor, a school district, and an applicant pertaining to an   eligible project must include a provision that states that the   applicant is prohibited from making a payment to the district   related to the agreement.          (d)  This subsection applies to a term described by   Subsection (b)(10). The agreement must provide that:                (1)  the governor or the school district is authorized   to terminate the agreement if the applicant fails to comply with an   applicable jobs or wage requirement of the agreement;                (2)  the governor or the district may not terminate the   agreement until the party provides written notice to the applicant   of the proposed termination;                (3)  the governor or the district must provide the   applicant a 180-day period to cure and dispute the alleged failure,   including through judicial action; and                (4)  in the event the agreement is terminated, the   state shall recover from the applicant a penalty in an amount equal   to all lost ad valorem tax revenue from the project and interest on   that amount calculated as provided by Section 111.060, Tax Code.          (e)  An agreement terminated under Subsection (d) is void,   and all remaining obligations and benefits under the agreement and   this subchapter terminate on the date the agreement is terminated.          (f)  The parties to an agreement may modify the terms of the   agreement that do not materially modify the jobs or investment   requirements prescribed by the agreement.          (g)  An agreement must be submitted to the comptroller not   later than the seventh day after the date the agreement is entered   into. A copy of the economic benefit statement applicable to the   project that is the subject of the agreement must be attached to the   agreement.          (h)  The comptroller shall deposit a penalty collected under   Subsection (d)(4) and any interest on the penalty to the credit of   the foundation school fund.          Sec. 403.613.  INCENTIVE PERIOD. (a) An incentive period   pertaining to an eligible project is a period of 10 consecutive tax   years specified in the agreement pertaining to the project.          (b)  An incentive period may not begin:                (1)  earlier than January 1 of the first tax year   following the construction completion date; or                (2)  later than January 1 of the first tax year   following the 10th anniversary of the date the agreement is entered   into.          (c)  Subject to Subsection (b), the beginning date of an   incentive period specified in an agreement pertaining to an   eligible project may be deferred if the applicant projects that the   applicant will not satisfy the minimum investment requirement   applicable to the project by the end of the first tax year of the   incentive period. The incentive period may be deferred until   January 1 of the second tax year following the construction   completion date. The deferral of an incentive period under this   subsection does not affect the date on which the incentive period   ends as prescribed by the agreement.  An applicant that is a party   to an agreement for which the beginning date of the incentive period   is deferred as authorized by this subsection must provide notice of   the deferral to the comptroller.  The notice must include the reason   for the deferral.          (d)  Subject to Subsection (b), an applicant may propose to   modify the beginning and ending dates of the incentive period as   provided by this subsection. The applicant shall provide notice of   the proposed modification to the comptroller, the governor, and the   school district not later than the 90th day before the first day of   the incentive period specified in Section 403.612(b)(3) or as   proposed to be modified, whichever is earlier. The applicant shall   revise the most recent economic benefit statement as necessary to   reflect the proposed change to the incentive period. The applicant   must include the revised economic benefit statement with the notice   provided to the comptroller, the governor, and the district under   this subsection. The comptroller shall make the finding required   by Section 403.609(b)(2) regarding the project as proposed to be   modified or determine that the finding cannot be made. The   comptroller shall notify the governor, the district, and the   applicant of the comptroller's finding or determination not later   than the 60th day after the date the comptroller receives notice   from the applicant of the proposed modification. The incentive   period for the project may not be modified if the comptroller   determines that the finding required by Section 403.609(b)(2)   regarding the project as proposed to be modified cannot be made or   if the governor or the district objects to the proposed   modification.          Sec. 403.614.  PENALTY FOR FAILURE TO COMPLY WITH JOBS OR   WAGE REQUIREMENT. (a) An applicant is liable to the state for a   penalty in the amount computed under this subsection if the   applicant fails to maintain at least the number of required jobs   prescribed by the agreement to which the applicant is a party during   the periods covered by two consecutive reports submitted by the   applicant under Section 403.616. The amount of the penalty is equal   to two times the product of:                (1)  the difference between:                      (A)  the number of required jobs prescribed by the   agreement; and                      (B)  the number of required jobs actually created   as stated in the most recent report submitted by the applicant under   Section 403.616; and                (2)  the average annual wage prescribed by the   agreement during the most recent four quarters for which data is   available, as computed by the Texas Workforce Commission.          (b)  An applicant is liable to the state for a penalty in the   amount computed under this subsection if the applicant fails to   meet the average annual wage requirement prescribed by the   agreement to which the applicant is a party, if any, during the   periods covered by two consecutive reports submitted by the   applicant under Section 403.616. The amount of the penalty is equal   to two times the difference between:                (1)  the product of:                      (A)  the actual average annual wage paid to all   persons employed by the applicant in connection with the project   that is the subject of the agreement as computed under Section   403.612(b)(6); and                      (B)  the number of required jobs prescribed by the   agreement; and                (2)  the product of:                      (A)  the average annual wage prescribed by the   agreement; and                      (B)  the number of required jobs prescribed by the   agreement.          (c)  Notwithstanding Subsections (a) and (b), the amount of a   penalty imposed on an applicant under this section may not exceed   the amount of the ad valorem tax benefit received by the applicant   under the agreement that is the subject of the penalty.          (d)  An applicant on request of the comptroller shall provide   to the comptroller a schedule of required jobs created as of the   date of the request under an agreement to which the applicant is a   party.          (e)  A determination by the comptroller that an applicant has   failed to meet the jobs or wage requirement prescribed by an   agreement to which the applicant is a party is a deficiency   determination under Section 111.008, Tax Code. A penalty imposed   under this section is an amount the comptroller is required to   collect, receive, administer, or enforce and is subject to the   payment and redetermination requirements of Sections 111.0081 and   111.009, Tax Code. A redetermination under Section 111.009, Tax   Code, of a determination under this section is a contested case as   defined by Section 2001.003 of this code.          (f)  The comptroller shall deposit a penalty collected under   this section and any interest on the penalty to the credit of the   foundation school fund.          Sec. 403.615.  AUDIT OF AGREEMENTS BY STATE AUDITOR. (a)   Each year the state auditor shall select and review at least 10   percent of the agreements in effect in that year to determine   whether:                (1)  each agreement accomplishes the purposes of this   subchapter as expressed in Section 403.601; and                (2)  the terms of each agreement were executed in   compliance with the terms of this subchapter.          (b)  In determining which agreements to review under   Subsection (a), the state auditor may consider any risk of   noncompliance identified in the biennial compliance report   regarding an agreement submitted to the comptroller under Section   403.616.          (c)  As part of the review, the state auditor shall make   recommendations relating to increasing the efficiency and   effectiveness of the administration of this subchapter. The state   auditor shall submit the recommendations to the governor,   comptroller, lieutenant governor, speaker of the house of   representatives, and oversight committee not later than December 15   of each year.          Sec. 403.616.  BIENNIAL COMPLIANCE REPORT BY APPLICANT. (a)   An applicant that is a party to an agreement shall submit a report   to the comptroller as required by this section using the form   adopted by the comptroller.          (b)  An applicant must submit a report required by this   section to the comptroller not later than June 1 of each   even-numbered year during the term of the agreement that is the   subject of the report.          (c)  A report required by this section must include the   following documents and information applicable to the agreement   that is the subject of the report:                (1)  a certification by the applicant that is a party to   the agreement that the applicant has met the jobs and investment   requirements prescribed by the agreement, which must include:                      (A)  a sworn affidavit stating:                            (i)  the number of required jobs prescribed   by the agreement; and                            (ii)  the number of required jobs actually   created under the agreement as of December 31 of the preceding two   years; and                      (B)  if applicable, payroll records maintained   for purposes of 40 T.A.C. Chapter 815;                (2)  the number assigned to the application by the   comptroller for the agreement, name of the applicant, name of the   school district, and name of and contact information for the   applicant's representative;                (3)  the number of total jobs created by the project in   each of the preceding two years;                (4)  the total wages paid for total jobs, not including   wages paid for construction jobs, in each of the preceding two   years;                (5)  the number of construction jobs created by the   project;                (6)  the total amount of the applicant's investment,   including any additional amount invested by the applicant after the   incentive period begins;                (7)  the appraised value of all property composing the   project for each previous tax year of the agreement;                (8)  the taxable value of all property composing the   project for each previous tax year of the agreement;                (9)  the amount of school district maintenance and   operations ad valorem taxes imposed on the property composing the   project and paid by the applicant for each previous tax year of the   agreement;                (10)  the amount of school district interest and   sinking fund ad valorem taxes imposed on the property composing the   project and paid by the applicant for each previous tax year of the   agreement;                (11)  the amount of school district ad valorem taxes   that would have been imposed on the property composing the project   and paid by the applicant in the absence of the agreement for each   previous tax year of the agreement; and                (12)  the amount of ad valorem taxes imposed on the   property composing the project by each taxing unit other than the   school district and paid by the applicant for each previous tax year   of the agreement, stated by taxing unit.          (d)  This subsection applies only to a report required to be   submitted under this section by an applicant for the period that   includes the first year of the incentive period as prescribed by the   agreement that is the subject of the report or as deferred. In   addition to the documents and information described by Subsection   (c), the applicant must include with the certification required by   Subsection (c)(1):                (1)  a list of the property tax account numbers   assigned to the property composing the project;                (2)  the current total appraised value of the property   composing the project; and                (3)  if applicable, a statement that the incentive   period was deferred because the applicant did not meet the minimum   investment requirement prescribed by the agreement before the date   specified in the agreement.          Sec. 403.617.  BIENNIAL REPORT TO LEGISLATURE. (a) The   comptroller shall submit to the lieutenant governor, the speaker of   the house of representatives, and each other member of the   legislature a report on the agreements entered into under this   subchapter. The comptroller must submit the report not later than   December 1 of each even-numbered year.          (b)  The report must include:                (1)  an assessment of the following with regard to the   agreements entered into under this subchapter, considered in the   aggregate:                      (A)  the total number of jobs created in this   state;                      (B)  the total effect on personal income in this   state;                      (C)  the total amount of investment in this state;                      (D)  the total taxable value of property on the   tax rolls in this state resulting from the agreements, including   property subject to an agreement that has expired;                      (E)  the total value of property subject to   agreements that have not expired; and                      (F)  the total fiscal effect resulting from the   agreements on this state and on local governments in this state; and                (2)  an assessment of each agreement entered into under   this subchapter that states for each agreement:                      (A)  the number of required jobs prescribed by the   agreement;                      (B)  the number of jobs actually created under the   agreement, including:                            (i)  each job described by Section   403.604(c)(1)(A);                            (ii)  each job described by Section   403.604(c)(1)(B); and                            (iii)  any additional jobs created or   maintained in connection with the project that is the subject of the   agreement, if reported by the applicant;                      (C)  the number of total jobs created under the   agreement, if the term of the agreement has expired;                      (D)  the amount of the investment specified by the   agreement;                      (E)  the amount of the actual investment made for   the applicable project before the expiration of the agreement;                      (F)  the difference between the amount of ad   valorem taxes that would have been imposed on the property   composing the applicable project in the absence of the agreement   and the amount of ad valorem taxes actually imposed on that property   during the term of the agreement; and                      (G)  the total amount of state and local tax   revenue attributable to the applicable project during the term of   the agreement.          (c)  The comptroller may not include in the report   information that is confidential under law.          (d)  The comptroller may use standard economic estimation   techniques, including economic multipliers, to prepare the portion   of the report described by Subsection (b)(1).          (e)  The comptroller may require an applicant to submit   information required to complete the report on a form prescribed by   the comptroller.          Sec. 403.618.  JOBS, ENERGY, TECHNOLOGY, AND INNOVATION ACT   OVERSIGHT COMMITTEE; REPORT. (a) The Jobs, Energy, Technology,   and Innovation Act Oversight Committee is composed of the following   seven members:                (1)  three members of the house of representatives   appointed by the speaker of the house of representatives;                (2)  three members of the senate appointed by the   lieutenant governor; and                (3)  one member who serves as the chair of the committee   and who:                      (A)  is a member of the house of representatives   appointed by the speaker of the house of representatives who serves   only in odd-numbered years; and                      (B)  is a member of the senate appointed by the   lieutenant governor who serves only in even-numbered years.          (b)  At least one member appointed by the speaker of the   house of representatives and at least one member appointed by the   lieutenant governor under Subsection (a) must represent a district   that includes a county with a population of 100,000 or less.          (c)  If a vacancy occurs in the membership of the oversight   committee, the appropriate appointing authority shall appoint a   person to fill the vacancy.          (d)  A member of the oversight committee serves at the   pleasure of the appropriate appointing authority.          (e)  The oversight committee may recommend in a written   report to the legislature those types of projects that the   committee determines by majority vote should be statutorily added   to or removed from the definition of "eligible project" provided by   Section 403.602.          Sec. 403.619.  CONFLICT OF INTEREST. A person may not,   directly or indirectly, represent, advise, or provide a service to   both an applicant and a school district in connection with the same   application submitted or agreement entered into under this   subchapter.          Sec. 403.620.  CERTAIN BENEFITS RELATED TO AGREEMENTS   PROHIBITED; ATTORNEY GENERAL ENFORCEMENT. (a) An employee or   representative of a school district, a member of the governing body   of the district, or any other person may not intentionally or   knowingly solicit, accept, agree to accept, or require any payment   of money or transfer of property or other thing of value, directly   or indirectly, to the district, an employee or representative of   the district, a member of the governing body of the district, or any   other person in recognition of, anticipation of, or consideration   for approval of an agreement unless authorized by this subchapter.          (b)  An applicant, an employee or representative of the   applicant, or any other person may not intentionally or knowingly   offer, confer, agree to confer, or make a payment of money or   transfer of property or other thing of value, directly or   indirectly, to the governor or the school district, an employee or   representative of the governor or the district, a member of the   governing body of the district, or any other person in recognition   of, anticipation of, or consideration for approval of an agreement   unless authorized by this subchapter.          (c)  If the attorney general receives a written complaint   from a party to an agreement of a violation of this section, the   attorney general may bring an action to enforce this section to   restrain or enjoin a person from continuing or repeating the   violation. Venue for an action brought under this subsection is in   a district court in Travis County.          Sec. 403.621.  CONFIDENTIALITY OF CERTAIN BUSINESS   INFORMATION. (a) Information provided to the comptroller, the   governor, or a school district by an applicant under this   subchapter that is a trade secret, as defined by Section 134A.002,   Civil Practice and Remedies Code, is confidential and not subject   to disclosure under Chapter 552.          (b)  Payroll records reported under Section 403.616(c)(1)(A)   or (B) by an applicant to the comptroller are confidential and not   subject to disclosure under Chapter 552.          Sec. 403.622.  INTERNET POSTING OF INFORMATION. (a)   Subject to Section 403.621, the comptroller shall post on the   comptroller's Internet website the following information received   by the comptroller:                (1)  each application submitted under this subchapter;                (2)  each map and economic benefit statement required   to be submitted with an application under this subchapter;                (3)  each amendment to an application made under this   subchapter;                (4)  each agreement entered into under this subchapter;   and                (5)  each biennial compliance report submitted as   required under this subchapter.          (b)  Except as provided by Subsection (c), the comptroller   shall post the information described by Subsection (a) as soon as   practicable after the date the comptroller receives the   information.          (c)  The comptroller shall post the information described by   Subsections (a)(1), (2), and (3) not later than the 10th business   day after the date the comptroller receives the information.          (d)  The comptroller shall continue to post the information   required by this section until the date the agreement to which the   information relates expires.          (e)  The comptroller shall notify the governor and the   applicable school district of the comptroller's posting of the   information described by Subsection (a)(5) on the comptroller's   Internet website.          Sec. 403.623.  RULES AND FORMS. (a) The comptroller shall   adopt rules necessary to implement and administer this subchapter,   including rules for:                (1)  determining whether an applicant meets the jobs   and investment requirements prescribed by Section 403.604; and                (2)  authorizing an applicant or school district to   submit any form or information required by this subchapter   electronically.          (b)  The comptroller shall adopt forms necessary to   implement and administer this subchapter, including the forms to be   used by an applicant under Sections 403.607 and 403.616.          (c)  The comptroller shall provide without charge one copy of   the rules and forms adopted under this section to any person that   states that the person intends to submit an application to the   comptroller under this subchapter to limit the taxable value of   eligible property used as part of an eligible project.          SECTION 2.  Section 48.2551(a), Education Code, is amended   to read as follows:          (a)  In this section:                (1)  "DPV" is the taxable value of property in the   school district, as determined by the agency by rule, using locally   determined property values adjusted in accordance with Section   403.302(d), Government Code;                (2)  "E" is the expiration of the exclusion of   appraised property value for the preceding tax year that is   recognized as taxable property value for the current tax year,   which is the sum of the following:                      (A)  property value that is no longer subject to a   limitation on appraised value under former Subchapter B or C,   Chapter 313, Tax Code, or a limitation on taxable value under   Subchapter T, Chapter 403, Government Code; and                      (B)  property value under Section 311.013(n), Tax   Code, that is no longer excluded from the calculation of "DPV" from   the preceding year because of refinancing or renewal after   September 1, 2019;                (3)  "MCR" is the district's maximum compressed rate,   which is the tax rate for the current tax year per $100 of valuation   of taxable property at which the district must levy a maintenance   and operations tax to receive the full amount of the tier one   allotment to which the district is entitled under this chapter;                (4)  "PYDPV" is the district's value of "DPV" for the   preceding tax year; and                (5)  "PYMCR" is the district's value of "MCR" for the   preceding tax year.          SECTION 3.  Section 48.256, Education Code, is amended by   amending Subsections (d) and (e) and adding Subsection (d-1) to   read as follows:          (d)  This subsection applies to a school district in which   the board of trustees entered into a written agreement with a   property owner [under Section 313.027, Tax Code,] for the   implementation of a limitation on taxable [appraised] value under   Subchapter T, Chapter 403, Government [B or C, Chapter 313, Tax]   Code. For purposes of determining "DPV" under Subsection (a) for a   school district to which this subsection applies, the commissioner   shall exclude a portion of the market value of property not   otherwise fully taxable by the district under Subchapter T, Chapter   403, Government [B or C, Chapter 313, Tax] Code[, before the   expiration of the subchapter]. The comptroller shall provide   information to the agency necessary for this subsection.          (d-1)  Subsection (d) applies to an agreement for the   implementation of a limitation on appraised value under former   Subchapter B or C, Chapter 313, Tax Code, that was in effect on   January 1, 2023, in the same manner as that subsection applies to an   agreement described by that subsection. If the agreement for the   limitation on appraised value requires a [A] revenue protection   payment to the school district, the payment [required as part of an   agreement for a limitation on appraised value] shall be based on the   district's taxable value of property for the preceding tax year.          (e)  Subsection (d-1) [(d)] does not apply to property that   was the subject of an application under former Subchapter B or C,   Chapter 313, Tax Code, made after May 1, 2009, that the comptroller   recommended should be disapproved.          SECTION 4.  Section 2303.507, Government Code, is amended to   read as follows:          Sec. 2303.507.  TAX INCREMENT FINANCING AND   ABATEMENT;  LIMITATIONS ON APPRAISED AND TAXABLE   VALUE.  Designation of an area as an enterprise zone is also   designation of the area as a reinvestment zone for:                (1)  tax increment financing under Chapter 311, Tax   Code;                (2)  tax abatement under Chapter 312, Tax Code; [and]                (3)  limitations on appraised value under former   Subchapter B or C, Chapter 313, Tax Code; and                (4)  limitations on taxable value under Subchapter T,   Chapter 403, of this code.          SECTION 5.  Section 23.03, Tax Code, is amended to read as   follows:          Sec. 23.03.  COMPILATION OF LARGE PROPERTIES AND PROPERTIES   SUBJECT TO LIMITATION ON APPRAISED OR TAXABLE VALUE. Each year the   chief appraiser shall compile and send to the Texas [Department of]   Economic Development and Tourism Office a list of properties in the   appraisal district that in that tax year:                (1)  have a market value of $100 million or more; [or]                (2)  are subject to a limitation on appraised value   under former Subchapter B or C, Chapter 313; or                (3)  are subject to a limitation on taxable value under   Subchapter T, Chapter 403, Government Code.          SECTION 6.  Section 26.012(6), Tax Code, is amended to read   as follows:                (6)  "Current total value" means the total taxable   value of property listed on the appraisal roll for the current year,   including all appraisal roll supplements and corrections as of the   date of the calculation, less the taxable value of property   exempted for the current tax year for the first time under Section   11.31 or 11.315, except that:                      (A)  the current total value for a school district   excludes:                            (i)  the total value of homesteads that   qualify for a tax limitation as provided by Section 11.26; [and]                            (ii)  new property value of property that is   subject to an agreement entered into under former Subchapter B or C,   Chapter 313; and                            (iii)  new property value of property that   is subject to an agreement entered into under Subchapter T, Chapter   403, Government Code; and                      (B)  the current total value for a county,   municipality, or junior college district excludes the total value   of homesteads that qualify for a tax limitation provided by Section   11.261.          SECTION 7.  Section 171.602(f), Tax Code, is amended to read   as follows:          (f)  The comptroller may not issue a credit under this   section before the later of:                (1)  [September 1, 2018; or                [(2)]  the expiration of an agreement under former   Subchapter B or C, Chapter 313, regarding the clean energy project   for which the credit is issued; or                (2)  the expiration of an agreement under Subchapter T,   Chapter 403, Government Code, regarding the clean energy project   for which the credit is issued.          SECTION 8.  Section 312.0025(a), Tax Code, is amended to   read as follows:          (a)  Notwithstanding any other provision of this chapter to   the contrary, the governing body of a school district, in the manner   required for official action and for purposes of former Subchapter   B or C, Chapter 313, of this code or Subchapter T, Chapter 403,   Government Code, may designate an area entirely within the   territory of the school district as a reinvestment zone if the   governing body finds that, as a result of the designation and the   granting of a limitation on appraised value under former Subchapter   B or C, Chapter 313, of this code or the granting of a limitation on   taxable value under Subchapter T, Chapter 403, Government Code, for   property located in the reinvestment zone, the designation is   reasonably likely to:                (1)  contribute to the expansion of primary employment   in the reinvestment zone; or                (2)  attract major investment in the reinvestment zone   that would:                      (A)  be a benefit to property in the reinvestment   zone and to the school district; and                      (B)  contribute to the economic development of the   region of this state in which the school district is located.          SECTION 9.  The lieutenant governor and the speaker of the   house of representatives shall appoint the initial members of the   Jobs, Energy, Technology, and Innovation Act Oversight Committee   under Sections 403.618(a)(1), (2), and (3)(B), Government Code, as   added by this Act, as soon as practicable after the effective date   of this Act.          SECTION 10.  The comptroller of public accounts shall adopt   rules and develop and make available the forms and materials as   required under Section 403.623, Government Code, as added by this   Act, as soon as practicable after the effective date of this   section.          SECTION 11.  (a) Except as provided by Subsection (b) of   this section, this Act takes effect January 1, 2024.          (b)  Section 10 of this Act takes effect September 1, 2023.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 5 was passed by the House on May 5,   2023, by the following vote:  Yeas 120, Nays 24, 1 present, not   voting; that the House refused to concur in Senate amendments to   H.B. No. 5 on May 26, 2023, 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. 5 on May 28, 2023, by the following vote:  Yeas 100,   Nays 36, 1 present, not voting.     ______________________________   Chief Clerk of the House               I certify that H.B. No. 5 was passed by the Senate, with   amendments, on May 24, 2023, by the following vote:  Yeas 27, Nays   4; 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.   5 on May 28, 2023, by the following vote:  Yeas 26, Nays 5.     ______________________________   Secretary of the Senate      APPROVED: __________________                   Date                       __________________                 Governor