HB1623 - Relating to the eligibility of certain foreign individuals or entities for a limitation on the taxable value of property for school district maintenance and operations ad valorem tax purposes under the Texas Jobs, Energy, Technology, and Innovation Act.

      By: Louderback H.B. No. 1623       A BILL TO BE ENTITLED   AN ACT   relating to the eligibility of certain foreign individuals or   entities for a limitation on the taxable value of property for   school district maintenance and operations ad valorem tax purposes   under the Texas Jobs, Energy, Technology, and Innovation Act.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 403.602, Government Code, as added by   Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular   Session, 2023, is amended by adding Subdivisions (7-a) and (10-a)   to read as follows:                 (7-a)     "Designated country" means a country identified   by the United States Director of National Intelligence as a country   that poses a risk to the national security of the United States in   each of the three most recent Annual Threat Assessments of the U.S.   Intelligence Community issued pursuant to Section 108B, National   Security Act of 1947 (50 U.S.C. Section 3043b).                 (10-a)     "Governing authority," "governing person," and   "organization" have the meanings assigned by Section 1.002,   Business Organizations Code.          SECTION 2.  Section 403.606, Government Code, as added by   Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular   Session, 2023, is amended to read as follows:          Sec. 403.606.  CERTAIN PERSONS INELIGIBLE. (a) For   purposes of this section, an organization is under the control of an   individual or another organization if the controlling individual or   organization owns at least 50 percent of the voting ownership   interest of the controlled organization necessary to elect a   governing person or governing authority of that organization.           (b)   A person is not eligible to submit an application to the   comptroller or enter into an agreement under this subchapter if :                 (1)   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, 2275, or 2276; or                 (2)  the person is:                       (A)     a governmental entity of a designated   country;                       (B)  an organization that is:                             (i)  headquartered in a designated country;                             (ii)     directly or indirectly under the   control of the government of a designated country; or                             (iii)     owned by or under the control of one   or more individuals who are citizens of a designated country;                       (C)     an organization that is owned by or under the   control of an organization described by Paragraph (B); or                       (D)     an individual who is a citizen of a   designated country [ 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 ].          SECTION 3.  Section 403.607(e), Government Code, as added by   Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular   Session, 2023, is amended to read as follows:          (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 , including information necessary to determine whether   the applicant is eligible under Section 403.606 to submit 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.          SECTION 4.  Section 403.609(b), Government Code, as added by   Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular   Session, 2023, is amended to read as follows:          (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 ; and                 (5)     the content of the sworn affidavit submitted by   the applicant with the application under Section 403.607(d)(5) is   true and correct and the applicant is eligible under Section   403.606 to submit the application .          SECTION 5.  Section 403.612, Government Code, as added by   Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular   Session, 2023, is amended by amending Subsections (b) and (e) and   adding Subsection (d-1) to read as follows:          (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;                 (9-a)     require the applicant to agree that, during the   term of the agreement, the applicant will not:                       (A)     be acquired by or transfer an ownership   interest in the applicant to a person ineligible under Section   403.606(b)(2) to submit an application or enter into an agreement;   or                       (B)     transfer an ownership interest in the   eligible project that is the subject of the agreement to a person   ineligible under Section 403.606(b)(2) to submit an application or   enter into an agreement;                (10)  authorize the governor or the district to   terminate the agreement as provided by Subsection (d);                 (10-a)     authorize the attorney general to bring an   action to terminate the agreement as provided by Subsection (d-1);   and                (11)  incorporate each relevant provision of this   subchapter.           (d-1)     This subsection applies to a term described by   Subsection (b)(10-a). The agreement must provide that, if the   attorney general is made aware or independently learns of a   violation of Subsection (b)(9-a) by an applicant, the attorney   general may bring an action to terminate the agreement. The   attorney general may bring an action under this subsection in a   district court in Travis County or a district court in the county in   which a majority of the eligible project that is the subject of the   agreement is located. The comptroller shall promptly notify the   attorney general if the comptroller is made aware or independently   learns of a violation of Subsection (b)(9-a) by an applicant.          (e)  An agreement terminated under Subsection (d) or (d-1) is   void, and all remaining obligations and benefits under the   agreement and this subchapter terminate on the date the agreement   is terminated.          SECTION 6.  Section 403.615(a), Government Code, as added by   Chapter 377 (H.B. 5), Acts of the 88th Legislature, Regular   Session, 2023, is amended to read as follows:          (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            & [Text truncated for display. Full text available on Congress.gov.]