Part 1. COMPTROLLER OF PUBLIC ACCOUNTS
Chapter 5. FUNDS MANAGEMENT (FISCAL AFFAIRS)
Subchapter O. UNIFORM STATEWIDE ACCOUNTING SYSTEM
The Comptroller of Public Accounts (Comptroller) adopts new §5.210, providing for the administration, maintenance, modification, and operation of the Uniform Statewide Accounting System, without changes to the proposed text as published in the November 9, 2007, issue of the Texas Register (32 TexReg 8095).
Government Code, Chapter 2101, Subchapter C, §2101.031, established the Uniform Statewide Accounting Project in the Comptroller's office and included all components of the uniform statewide accounting system established by the legislature. The Comptroller has developed and promulgated the following components of the Uniform Statewide Accounting System: the Human Resources Information System for higher education, the Statewide Property Accounting System, the Standardized Payroll/Personnel Reporting System, the Texas Identification Number System, and the Uniform Statewide Payroll/Personnel System. House Bill 3106, 80th Legislature, 2007, requires enterprise resource planning to be added to and in conjunction with the Uniform Statewide Accounting System and gives authority to the Comptroller to administer and govern enterprise resource planning as a part of the Comptroller's authority regarding the Uniform Statewide Accounting System as contained in Government Code, Chapter 2101. House Bill 3106 makes certain amendments to Government Code, Chapter 2101, allowing the Comptroller to require state agencies to include enterprise resource planning in conjunction with the Uniform Statewide Accounting System and any individual enterprise resource planning systems used by such state agencies so that they are compatible with the Uniform Statewide Accounting System and, if not, to direct agencies to modify, delay, stop, or replace any such non-compatible systems.
No comments were received regarding adoption of the new section.
The new section is adopted under Government Code, Chapter 2101, which authorizes the Comptroller to adopt rules to efficiently and effectively administer these provisions.
The new section implements Government Code, §2101.035.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on December 19, 2007.
TRD-200706448
Martin Cherry
General Counsel
Comptroller of Public Accounts
Effective date: January 8, 2008
Proposal publication date: November 9, 2007
For further information, please call: (512) 475-0387
The Comptroller of Public Accounts (Comptroller) adopts new §5.300, concerning monitoring and implementation of enterprise resource planning systems, with changes to the proposed text as published in the November 9, 2007, issue of the Texas Register (32 TexReg 8096).
House Bill 3106, 80th Texas Legislature, 2007, provides for enterprise resource planning to be included in the Uniform Statewide Accounting System and gives authority to the Comptroller to administer and manage enterprise resource planning in Government Code, Chapter 2101. House Bill 3106 makes certain amendments to Government Code, Chapter 2101, allowing the Comptroller to require state agencies to adopt standards for the implementation and modification of state agency enterprise resource planning in individual enterprise resource planning systems so that those individual internal accounting/payroll systems are compatible with the Uniform Statewide Accounting System and to direct state agencies to modify, delay, or stop implementation of non-compatible systems.
The new rule as adopted is changed to correct reference to the formal title of the state accounting system and to correct a grammatical error.
No comments were received regarding adoption of the new section.
The new section is adopted under Government Code, Chapter 2101, which authorizes the Comptroller to adopt rules to efficiently and effectively administer these provisions.
The new sections implement Government Code, §§2101.001, 2101.031, 2101.036, and 2101.037(a).
§5.300.Monitoring and Implementation of Enterprise Resource Planning Systems.
(a) The purpose of this section is to provide a procedure for the comptroller to monitor compatibility of individual accounting and payroll systems for compliance with the Uniform Statewide Accounting System including enterprise resource planning components and compliance.
(b) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
(1) "State agency" means a department, commission, board, office, council, authority, or other agency in the executive or judicial branch of state government that is created by the constitution or a statute of this state, including a university system or institution of higher education as defined by Education Code, §61.003, other than a public junior college or community college.
(2) "State funds" means funds of the state held by state agencies regardless of whether or not such funds are inside or outside of the State Treasury.
(3) "Enterprise resource planning" means and includes the administration of a state agency's general ledger, accounts payable, accounts receivable, budgeting, inventory, asset management, billing, payroll, projects, grants: administration of human resources, including administration of performance measures, time spent on tasks, and other personnel and labor issues; and administration of procurement.
(4) "Uniform Statewide Accounting Project" has the meaning assigned by Government Code, Chapter 2101, and includes the components of the Uniform Statewide Accounting System as previously promulgated and adopted by the comptroller.
(5) "Project director" means the person appointed by the comptroller pursuant to Government Code, Chapter 2101, to administer the Uniform Statewide Accounting Project.
(6) "Implementation" means the upgrade of software versions or the addition of new modules or functionality to software or systems
(7) "System" means an internal enterprise resource planning, accounting or payroll system used by a state agency.
(c) In order to ensure the Uniform Statewide Accounting Project includes enterprise resource planning the comptroller shall engage in the procedures that follow in this subsection.
(1) Each state agency implementing individual systems shall submit information to the project director describing and detailing the project so as to allow the project manager to coordinate and consult with the submitting agency.
(2) After reviewing the information provided in paragraph (1) of this subsection, the project director may reasonably request the submitting state agency to provide additional information describing and detailing the project to allow the project director to fully understand the project and to aid in coordination and consultation on the project.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on December 19, 2007.
TRD-200706449
Martin Cherry
General Counsel
Comptroller of Public Accounts
Effective date: January 8, 2008
Proposal publication date: November 9, 2007
For further information, please call: (512) 475-0387
The Comptroller of Public Accounts (Comptroller) adopts new §5.301, concerning the enterprise resource planning advisory council, without changes to the proposed text as published in the November 9, 2007, issue of the Texas Register (32 TexReg 8097).
House Bill 3106, 80th Texas Legislature, 2007, provides for the creation by the Comptroller of an enterprise resource planning council to advise the Comptroller regarding the development of a plan for enterprise resource planning and assisting the Comptroller in reporting to the legislature on the status of enterprise resource planning prior to the beginning of each legislative session. House Bill 3106 makes certain amendments to Government Code, Chapter 2101 by the addition of §2101.040 requiring the Comptroller to create the council to implement the legislative mandate on enterprise resource planning.
We received one comment from a state agency. Following is a summary of the comment received and the response.
The Texas Department of Transportation objected to the composition of the Enterprise Resource Planning Advisory Council because there is not enough representation of large state agencies such as Texas Department of Transportation which thereby prevents Texas Department of Transportation from being a part of the planning process and addressing its special needs. The language objected to is consistent with Government Code, §2101.040, that requires the Enterprise Resource Planning Advisory Council be established and specifies which large state agencies must be members. Since this rule may not exceed the statutory authority, the Comptroller is unable to alter the composition of the Enterprise Resource Planning Advisory Council to include other large state agencies. Notwithstanding the composition of the Enterprise Resource Planning Advisory Council, the Council will consider any and all input from interested and affected state agencies. Notices of all meetings of the Enterprise Resource Planning Advisory Council will be published in the Texas Register, and all meetings will be open to all who choose to attend. Therefore, the Comptroller declined to make any change.
The new section is adopted under Government Code, Chapter 2101, which authorizes the Comptroller to adopt rules to efficiently and effectively administer these provisions.
The adopted new section implements Government Code, §2101.040.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on December 19, 2007.
TRD-200706450
Martin Cherry
General Counsel
Comptroller of Public Accounts
Effective date: January 8, 2008
Proposal publication date: November 9, 2007
For further information, please call: (512) 475-0387
Subchapter A. PRACTICE AND PROCEDURE
The Comptroller of Public Accounts adopts the repeal of §9.107, concerning appraised value limitation and tax credit for certain qualified property, without changes to the proposal as published in the November 9, 2007, issue of the Texas Register (32 TexReg 8098).
A new set of rules, proposed for adoption under new Subchapter F, Limitation on Appraised Value and Tax Credits on Certain Qualified Property, will take its place.
No comments were received regarding adoption of the repeal.
The adoption implements Tax Code, §313.031, which requires the comptroller to adopt forms and rules for the implementation and administration of Tax Code, Chapter 313.
The section implements Tax Code, Chapter 313.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on December 20, 2007.
TRD-200706546
Martin Cherry
General Counsel
Comptroller of Public Accounts
Effective date: January 9, 2008
Proposal publication date: November 9, 2007
For further information, please call: (512) 475-0387
The Comptroller of Public Accounts adopts new §§9.1051 - 9.1058, concerning the limitation on appraised value and tax credits on certain qualified property created by Tax Code, Chapter 313, with changes to the proposed text as published in the November 9, 2007, issue of the Texas Register (32 TexReg 8102).
The new sections will be under new Subchapter F, Limitation on Appraised Value and Tax Credits on Certain Qualified Property. The new sections are being adopted to replace the current §9.107, which is being repealed. The new sections implement House Bill 2994, House Bill 1470, House Bill 3732, House Bill 3430, and House Bill 3693, 80th Legislature, 2007, to clarify issues related to application and qualification, and to adopt by reference application forms for the limitation on appraised value and the tax credits.
Section 9.1051 defines certain terms used in new Subchapter F, such as qualified property, application review period, and applicant. New §9.1052 adopts by reference forms entitled Application for Appraised Value Limitation on Qualified Property (Form 50-296) and Application for Tax Credit on Qualified Property (Form 50-300) by reference. Section 9.1053 concerns requirements and restrictions, governs extension of the application review period, provision of supplemental and amended information, and sets forth requirements for the primary activity of a project and the applicant's use of the property. Section 9.1054 governs the applicant and action on applications, including provisions setting forth the application date for certain qualifying time periods, the minimum standards for completion, the actions the governing body must take upon receiving an application, requiring specific information on the application, specifying the types of information that may be amended and types of information that may be supplemented, and addressing the time period in which the comptroller must issue a recommendation when an application is amended. Section 9.1055 sets forth requirements for the written agreement between the school district and the taxpayer to limit the appraised value of certain property, including provisions requiring the school district to send the comptroller and appraisal districts a copy of the agreement, setting out provisions that may be included in the agreement and provisions that must be contained in the agreement, requiring the reporting of additions of property to the agreement to the comptroller and appraisal districts, setting out the requirements for an agreement to add property, and prohibiting amendment of the agreement to extend the qualifying time period. Section 9.1056 concerns the tax credit to which an applicant may be entitled and states how the credit is to be calculated. Section 9.1057 concerns the comptroller's duties under Tax Code, Chapter 313, including provisions permitting the comptroller to require certain information from the school district, setting forth the time period in which the information must be provided, requiring applicants to promptly submit certain information required to complete a biennial report assessing the progress of each agreement; addresses the calculation of the 60-day time period for issuing the comptroller's recommendation; stating that the comptroller will promptly notify the applicant and school district if an application is incomplete; governing the submission of certain information requested by the comptroller, and providing that information not submitted in a timely manner may not be considered in the comptroller's recommendation or economic impact evaluation. Section 9.1058 includes miscellaneous provisions, including provisions requiring recipients of the limitation to notify certain parties of certain changes and the chief appraiser to maintain a list of property subject to the limitation stating that certain changes in district characteristics do not affect certain terms in the agreement, and that the comptroller may promulgate guidelines to further implement Tax Code, Chapter 313.
Comments submitted by Mr. James Wester recommended that §9.1053(d) include a reference to the comptroller. The agency agreed and made the change. The commenter suggested that §9.1054(b)(1)(F) require applicants intending to request a job waiver to submit, with the application, supporting documentation justifying the waiver of minimum job requirements. The agency agreed and the change was made. The commenter suggested that §9.1054(h) and (j) be revised to provide the school district with more time to act after receiving the comptroller's recommendation. The agency disagreed and did not make the change because the provision is intended to encourage applicants to file complete applications. The commenter suggested inclusion of a notice to the applicant and the school district that the application is complete. The agency disagreed and did not make the change. An applicant has filed a complete application if the applicant has not received a notice that the application is incomplete, however, the agency addressed the commenter's concern by adding a provision requiring prompt notification to an applicant that the application is not complete.
Mr. Michael Chrobak, Governor's Office of Economic Development and Tourism, commented that §9.1051 should define the terms "qualified investment" and "appraised value." The agency agreed and revised the rule accordingly. The commenter recommended that §9.1054(e) include the estimated appraised value of rendered property arising from the value of the proposed investment. The agency disagreed because the specific change was unnecessary, but clarified the information that is being requested on the form. The commenter suggested revising §9.1054(f) to replace the reference to September 3 with a generic term. The agency disagreed because the specific date provides the public with more information about the application process. The commenter recommended clarification of §9.1055(d). The agency agreed and made the change.
Mr. Dick Lavine, Center for Public Policy Priorities, requested the inclusion of information on health benefits when referencing wages and employment. The agency agreed and changed the application form and schedule "C" accordingly. The commenter suggested that §9.1055 require the agreement to include a requirement that the applicant's jobs meet the statutory definition of a "qualifying job," specifically coverage by a group health benefit plan and wages equal to at least 110% of the county average weekly wage for manufacturing jobs in the county, throughout the life of the agreement. The agency declined to make the change because the law regarding this issue is not clear and the parties may choose to include in the agreement a provision requiring continuing compliance with the definition of a qualifying job. The commenter recommended amending §9.1055(d) to require the applicant to seek a recommendation from the agency before adding property to an agreement. The agency declined to make the change because the law does not impose this requirement on property added to the agreement. The commenter suggested adding a provision requiring the applicant to submit information that is sufficiently detailed to enable evaluation of continuing compliance with Chapter 313. The agency declined to make the change because the agency is not proposing to adopt the report form that applicants must complete for the biennial report to the Legislature assessing the progress of Chapter 313 agreements. The commenter requested the deletion of language in §9.1058(d) concerning leaseholds and that the limitation application form be changed accordingly. Subsection (d) was deleted because the law regarding this matter is not clear, and therefore, the form need not be amended. The commenter recommended clarification of question six on the limitation application form by clearly stating that qualifying jobs are those that pay at least 110% of the county average weekly wage for manufacturing jobs in the county where the job is located. The agency agreed and made the requested change. The commenter suggested revising the limitation application form, question eight, to ask for information verifying that the applicant's qualifying jobs provide health benefits that meet the minimum statutory requirements. The agency agreed and added clarifying language to the application form. The commenter suggested that the limitation and tax credit application forms require applicants to update the schedules as necessary when reporting an amendment to the agreement. The agency agreed, but the change was not necessary because each of the schedules included with the application forms state that applicants are required to submit updated schedules in this circumstance. The agency, however, addressed the comment by improving the visibility of the language on the form that requires updated schedules. The commenter recommended adding the definition of a qualifying job and a request for the total number of permanent full-time new jobs created by the applicant to schedule "C" of the application form. The agency agreed and made the change. The commenter suggested that the same schedule be revised to reflect the statutory requirement that qualifying jobs pay wages that are 110% of the county average wage. The agency agreed and made the change. The commenter suggested adding to the same schedule a request for the number of jobs that provide the health benefits required by Tax Code, §313.021(3)(D). The agency agreed and addressed the comment by adding a citation to Tax Code, §313.021(3). The commenter suggested that the agency gather information from each school district concerning its taxable property value per weighted student in average daily attendance. The agency declined to make the change because this information is available from the Texas Education Agency. The commenter recommended that the agency gather information from each school district concerning financial arrangements between the district and the applicant that provide revenue or in-kind resources because, according to the commenter, the law requires school districts to approve only applications that improve the local public education system. The agency declined to make the change because the agency has not proposed rules or promulgated a form concerning the collection of information for the biennial report to the legislature assessing the progress of each Chapter 313 project.
Moak, Casey & Associates, Mr. Kevin O'Hanlon of O'Hanlon, McCollom & Demerath, and Ms. Debbie Cartwright of Bexar Appraisal District commented that the requirement in §9.1053(a) that an extension of the deadline be granted before the deadline has passed should be deleted. The agency declined to make the change because a deadline that has passed cannot be extended. Deleting the requirement would effectively render the statutory 120 day application review period meaningless. The commenters requested adding the school district to §9.1054(b). The agency agreed and made the change.
Moak, Casey & Associates and Mr. Kevin O'Hanlon of O'Hanlon, McCollom & Demerath commented that §9.1054(f) should be changed to state that the application must be filed, "on or before" September 3, rather than "before" that date, as the subsection currently states. The agency declined to make the change because the deadline would be incorrectly stated. The commenters recommended deleting or, alternatively, replacing the requirement in §9.1053(e) that the applicant use eligible property in the applicant's primary activity with definitions of "placed in the stream of commerce" and "used in connection with," contending that the subsection too narrowly interprets the phrase "used in connection with." The agency disagreed and did not make the change because the agency interprets "in connection with" to mean the property of the person who is engaged in the primary activity but that is not used in the conduct of the primary activity, such as property used for administrative purposes and other support functions that are "connected with" the primary activities listed under Tax Code, §313.024. The commenters suggested that §9.1054(b)(1)(C) be amended to insert the term, "projected" before the word, "employment." The agency agreed and made the change. The commenters suggested that references to the application fee in §9.1054(b)(3) and (d)(1) be deleted because payment of the application fee is purely a local matter. The agency declined to make the change because the application fee is specifically required by Tax Code, §313.025(a)(1). The commenters recommended that §9.1054(g), (h), and (k) be amended to delete "governing body" and require that the school district take the indicated action. The agency agreed with a portion of the comment. In subsections (g) and (k), "governing body" was replaced by "school district." The phrase "by official action" was deleted from subsection (h), however, "governing body" was not deleted because Tax Code, §313.025(b) requires the "governing body of the school district" to extend the application review period. The commenters requested the deletion of §9.1055 in its entirety. The commenters contend that the agreement is subject only to the discretion of the parties, so the comptroller does not have authority to prescribe any conditions not currently required by state law. The agency disagreed and did not make the change. The agreement is within the scope of the agency's rulemaking authority. Tax Code, §313.031(a)(1), requires the comptroller to, "adopt rules and forms necessary for the implementation and administration" of Tax Code, Chapter 313. Tax Code, §313.027 is entitled Limitation on Appraised Value, Agreement, and all of the provisions in that section, except one, pertain to the agreement. The commenters suggested, alternatively, that §9.1055(c) be changed to read that the "agreement must contain, but is not limited to, the following provisions," instead of "the agreement shall contain the following." The agency agreed and made the change. The commenters stated that §9.1055(d)(1) and (2) should be deleted because the subdivisions are outside the agency's rulemaking authority. The agency disagreed that it does not have authority to adopt rules concerning the agreement because Tax Code, §313.031(a)(1), requires the comptroller to, "adopt rules and forms necessary for the implementation and administration" of Tax Code, Chapter 313. Tax Code, §313.027 concerns the agreement, so the provisions are within the agency's rulemaking authority. The language has, however, been narrowed to require that property added to the agreement meet only the eligibility requirements of Tax Code, Chapter 313. Tax Code, §313.004(3)(A) expresses the legislature's intent that school districts strictly interpret "the criteria and selection guidelines" of Chapter 313. If ineligible property may be added to the agreement after the original limitation has been granted, applicants could be permitted to add types of property to the agreement that are outside the scope of Tax Code, Chapter 313. Commenter's interpretation is impermissibly broad. The agency disagreed that it does not have authority to require information concerning property added to the agreement and did not make the requested change. House Bill 3430, House Bill 3693, and House Bill 2994, 80th Legislature, 2007, read together, require the comptroller to assess the progress of each Chapter 313 project. The progress of the project cannot be assessed without information concerning property added to the agreement; therefore, the provision is within the agency's rulemaking authority, which is provided by Tax Code, §313.031(a)(1). The commenters suggested that §9.1057(b) be changed to provide for a primary time period of 20 working days and an extension of 10 working days. The agency agreed and made the change. The commenters requested a provision stating that the school district may submit additional information about the impact of the limitation on school facilities or school finance and would require the agency to transmit the economic analysis in written and electronic form as soon as practicable. The agency agreed and made the suggested change, however, a provision was added stating that comptroller may consider the information in the development of the recommendation and economic analysis. The commenters stated that reports by the appraisal district should be incorporated into (the) self-report process. The agency declined to make the change because the provision does not prevent the agency from integrating the appraisal district report into the self-report process. The commenters suggested that schedule "C" should not require applicants to project wage increases necessary to keep up with the 110% requirement for 10 years. The agency did not make the change because the schedule does not require this projection.
Ms. Debbie Cartwright of Bexar County Appraisal District agreed with the portions of the rules that require school districts to send the appraisal district copies of the applications, schedules, and other supporting information, that copies of the limitation agreement be submitted to the appraisal districts, and agreed that the comptroller should receive information concerning the type, value, and identification of property subject to value limitations. The commenter requested that §9.1054(b) be changed to state that school districts are not required to consider an incomplete application. The agency agreed and made the change. The commenter stated that a provision should be added to §9.1057 requiring that the information submitted to the comptroller for the biennial report to the legislature assessing the progress of Chapter 313 projects be sent to the school districts and appraisal districts. The agency declined to make the change because an appraisal district that needs the information may request this information through a public information request. The commenter suggested that §9.1057(b) be revised by replacing the 14-day extension for providing additional information with a provision stating that amount of time is determined on a case-by-case basis. The agency agreed that the time period should be extended and made the change, but determined that it is administratively impracticable to determine the time period on a case-by-case basis. The commenter recommended permitting school districts and appraisal districts to provide input regarding applications and the economic impact evaluation. The agency agreed and revised the rule to provide that information may be submitted and that the agency may, but is not required to, consider it. The commenter requested that school districts and appraisal districts be permitted to provide input to the agency on the application. The agency agreed and made the change. The commenter requested deletion of the requirement on the limitation application form for attachment of a surveyor's certification. The agency revised the application to permit submission of alternate types of evidence of the reinvestment zone boundaries.
Gary Fusfield from Jack County, Texas commented that a multi-million-dollar "retroactive" Tax Abatement agreement that he alleges was adopted may conflict with these proposed rules. The comment did not request a change; therefore a change was not made.
The new sections are adopted under Tax Code, §313.031, which requires the comptroller to adopt forms and rules for the implementation and administration of Tax Code, Chapter 313.
The new sections implement Tax Code, Chapter 313.
§9.1051.Definitions.
Definitions. The following phrases, words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
(1) Agreement--the written agreement between the governing body of a school district and the property owner to implement a limitation on the appraised value of qualified property, required by Tax Code, §313.027(d).
(2) Applicant--a person or an "affiliated group," as defined in Tax Code, §171.0001, who has applied for a limitation of appraised value on qualified property as provided by Tax Code, Chapter 313, and is subject to Tax Code, Chapter 171.
(3) Application--the Application for Appraised Value Limitation on Qualified Property, adopted by reference in §9.1052 of this title (relating to Forms).
(4) Application review period--the period of time during which the governing body of a school district is required to consider and approve or disapprove an Application for Appraised Value Limitation on Qualified Property. The application review period begins on the day an Application for Appraised Value Limitation on Qualified Property is filed with a school district and ends on the 120th day after the date on which the application is filed.
(5) Appraised Value--the value of property as defined by Tax Code, §1.04 (8).
(6) Qualified investment--property that meets the requirements of Tax Code, §313.021(1)
(7) Qualified property--property that meets the requirements of Tax Code, §313.021(2), and that is used either as an integral part, or as a necessary auxiliary part, in manufacturing, research and development, a clean coal project, an advanced clean energy project, renewable energy electric generation, electric power generation using integrated gasification combined cycle technology, or nuclear electric power generation.
(8) Tax credit settle-up--the process by which tax credit amounts earned by a Chapter 313 recipient which are not paid during the value limitation period are paid following the expiration of the value limitation.
§9.1052.Forms.
(a) The comptroller adopts by reference the following forms:
(1) Application for Appraised Value Limitation on Qualified Property (Form 50-296); and
(2) Application for Tax Credit on Qualified Property (Form 50-300).
(b) Copies of the forms are available for inspection at the office of the Texas Register or may be obtained from the Comptroller of Public Accounts, P.O. Box 13528, Austin, Texas 78711-3528. The forms may be viewed or downloaded from the comptroller's web site, at http://www.window.state.tx.us/taxinfo/taxforms/02-forms.html. Copies may also be requested by calling our toll-free number, (800) 252-9121.
(c) In special circumstances, a school district may obtain prior approval in writing from the comptroller to use an application form that requires additional information, or sets out the required information in different language or sequence than that which this section requires.
§9.1053.Requirements and Restrictions.
(a) Extension of the Application Review Period. If the governing body of a school district with which an owner has filed an application finds that the application review period is insufficient to permit adequate consideration of the application, before the end of the application review period the governing body may extend the application review period for a specified time period.
(b) An extension of the application review period does not extend a time period established by this title.
(c) The school district shall immediately report each extension to the comptroller and each appraisal district that appraises property subject to the extension.
(d) All supplemental and amended information provided to the school district and comptroller shall be in the same format, style, and presentation used in the application and attached documentation.
(e) In addition to meeting each eligibility and qualification requirement set out in this title and Tax Code, Chapter 313, the primary activity of an applicant's project must meet the eligibility criteria provided by Tax Code, §313.024(b)(1) - (7) and the applicant must use the property in connection with an eligible activity described by Tax Code, §313.024(b)(1) - (7).
§9.1054.Application, Action on Application.
(a) Application Date. An application may be filed at any time. An applicant who intends the qualifying time period to begin on January 1 of the year following the year the application is filed, however, must file the application and all required accompanying documentation before September 3 of the year preceding the year in which the applicant proposes the qualifying time period to begin.
(b) Neither the school district nor the comptroller are required to consider applications that do not meet minimum requirements. Minimum requirements include:
(1) each question, schedule, and request for information concerning the following items is answered in detail and conforms to reasonable standards for application form and content set by the comptroller:
(A) dollar value of investment;
(B) proposed wages and benefits;
(C) projected employment;
(D) a property description;
(E) qualifying time period;
(F) notification of intent to request a waiver of minimum job requirements and documentation of industry standards sufficient to support the waiver, if granted; and
(G) other items of relevant information as required by the comptroller.
(2) it is signed by the applicant or the applicant's authorized agent; and
(3) it is accompanied by the application fee established by the governing body of the school district.
(c) Each document required by the application must be submitted during the required time frame.
(d) Immediately upon electing to consider the application the school district shall:
(1) forward to the comptroller the application, including the required schedules; the documentation that accompanied the application and proof of payment of the application fee; and
(2) forward to each appraisal district that appraises property subject to the application one copy of the application, schedules, and attached documentation.
(e) The applicant shall describe with specificity the qualified investment and qualified property that the applicant proposes to build or install, including sound, good faith estimates of the cost and value of proposed investment. The information must be sufficient to show that the real and personal property identified in the application as qualified property meets the criteria established by Tax Code, §313.021(2) and that the minimum required qualified investment amount is made during the qualifying time period.
(f) If the application is filed before September 3 and is approved during that tax year, the qualifying time period begins on January 1 of the following tax year. If the governing body extends the application review period, the qualifying time period specified in the application begins on January 1 of the first tax year following the approval of the application.
(g) Amended application--a school district may at any time during the application review process permit an applicant to amend the application to provide changes in investment, wage, employment, a property description, or a qualifying time period to replace that submitted on the original application.
(h) If the school district's governing body permits an applicant to amend the application at any time after the 60th day of the application review period, the governing body shall extend the application review period by a number of days equal to the difference between 60 and the number of days of the application review period that had passed when the application was received. For example, if the application was amended on the 85th day of the application review period, the governing body is required to extend the application review period for 25 additional days.
(i) The school district shall immediately send each amended application and each item of attached documentation to the comptroller. As soon as practicable after receiving an amended application, the school district shall send the amended application and attached documentation to each appraisal district that appraises property proposed to be subject to a limitation on appraised value.
(j) For purposes of the comptroller's recommendation only, an amended application is considered a new application and the 60-day time period within which the recommendation must be issued will be calculated in the manner provided by §9.1057(d) of this title (relating to Recommendation, Evaluation, and Reports by Comptroller).
(k) Supplementing the application--a school district may permit an applicant to supplement the original application with certain information that was unavailable prior to the filing date and that will be used to verify that the property meets the requirements of Tax Code, Chapter 313. Changes in information concerning the proposed investment, property description, wages, employment, or a change in the qualifying time period may not be provided as supplemental information. Changes in the proposed investment, property description, wages, employment information, and the qualifying time period shall be submitted through an amended application. For example, an application may be supplemented to provide reinvestment zone descriptions, maps and reinvestment zone guidelines and criteria that were not available before the application was filed, while a change in the qualifying time period must be submitted on an amended application.
(l) The school district shall immediately forward to the comptroller and each appraisal district in which property that is subject to the limitation will be located all supplemental information that the district receives.
(m) An application that was filed before January 1, 2008, is not subject to subsection (h) of this section until July 1, 2008. This subsection expires on July 2, 2008.
§9.1055.Agreement to Limit Appraised Value.
(a) As soon as practicable after execution of the agreement with the property owners, the school district must submit to the comptroller and to all appraisal districts that appraise property described in the agreement a copy of the agreement between the school district and the property owner for the appraised value limitation required by Tax Code, §313.027 and all accompanying documents and exhibits.
(b) The agreement may include authorization for the company to replace property specified in the original agreement, provided that the company reports investment, value, and employment information related to replacement property added to the agreement to the school board, the comptroller, and to each appraisal district with the same format, style, and presentation used for the original application.
(c) The agreement shall contain, but is not limited to, the following minimum provisions:
(1) a requirement that the recipient meet minimum eligibility requirements throughout the value limitation and tax credit settle-up periods. Minimum eligibility requirements shall meet or exceed the Tax Code, Chapter 313 requirements for qualified investment and Tax Code, §313.021(3) and §313.024(d) requirements for employment;
(2) the Texas Taxpayer Identification Number assigned by the comptroller to the company entering into the agreement or the Texas Taxpayer Identification Number of its reporting entity. The number included in the agreement shall match the number listed on the application; and
(3) a provision that states the amount of the limitation is based on the limitation amount for the category that applies to the school district on the effective date of the agreement, as set out by Tax Code, §313.022(b) or §313.052.
(d) By official action of the governing body of the school district, the agreement may be amended to include, in the appraised value limitation, qualified property that was not specified in the original agreement, provided that the company reports to the school board, the comptroller, and to each appraisal district, in the same format, style, and presentation as the original application, all relevant investment, value, and employment information that is related to the additional property. An agreement amended as permitted by this title shall:
(1) require that all property added by amendment be eligible property as defined by Tax Code, §313.024;
(2) clearly distinguish the property, investment, and employment information added by amendment from the property, investment, and employment information in the original agreement; and
(3) define minimum eligibility requirements for the recipient of limited value.
(e) An agreement may not be amended to extend the value limitation time period.
§9.1056.Tax Credit.
An applicant is entitled to a credit for part of the maintenance and operations property taxes that were paid to a school district for each tax year during the qualifying time period in an amount that is equal to the difference between the amount of maintenance and operations tax that was actually paid on the qualified property and the amount of maintenance and operations tax that would have been paid based on the appraised value limitation to which the school district agreed, provided that the applicant meets the requirements of Tax Code, Chapter 313, Subchapter D.
§9.1057.Recommendation, Evaluation, and Reports by Comptroller.
(a) Recipients of property value limitations shall promptly submit to the comptroller information that is required to complete the comptroller's biennial report assessing the progress of each agreement. The comptroller will promulgate a form on which the required information shall be submitted.
(b) At any time during the application review period, the comptroller may request information from the school district or applicant that is reasonably necessary to complete the recommendation or economic impact evaluation. This information may include, but is not limited to, information from the school district that is related to the estimated effect of tax base changes on a district's state aid through the Foundation School Program and information related to local school facilities' needs. The school district or applicant shall provide the requested information to the comptroller within 20 working days of the date of the request. On request of the school district or the applicant, the comptroller may extend the deadline for providing additional information for a period of not more than 10 working days. The school district and the appraisal district may submit additional information concerning school facilities or the school finance impact on school district operations during the term of the agreement. The comptroller may include this information in its analysis. The comptroller shall transmit the results of economic analyses as soon as practicable to the district in written or electronic form before the 61st day after the date the comptroller gets the application.
(c) For purposes of the recommendation required by Tax Code, §313.025(d), the 60-day period within which a recommendation must be submitted begins on the day the comptroller receives a substantially complete application and other documentation, forwarded pursuant to §9.1054 of this title (relating to Application, Action on Application).
(d) If one or more of the application schedules or the qualifying time period is amended, the comptroller will consider the application as a new application only for purposes of issuing the recommendation required by Tax Code, §313.025(d). If the comptroller receives an application amended in this manner any time after the 60th day of the application review period, the time period for submitting the recommendation is extended by a number of days that equals the sum of the remaining days in the application review period plus the difference between 60 and the number of days of the application review period that had passed when the amended application was filed with the school district. The extended time period provided by this subsection shall match the number of days for which the application review period was extended as required by §9.1054(h) of this title.
(e) As soon as practicable after receipt, the comptroller will review each forwarded application to determine if the application and accompanying documentation is complete. If the review determines that an application is not substantially complete or is missing documentation that is material to the comptroller's recommendation or economic evaluation, the comptroller will promptly notify the school district and applicant.
(f) Supplemental application information, amended application information, and additional information requested by the comptroller shall be promptly forwarded to the comptroller. Additional information concerning investment, property value, property description, employment, and the qualifying time period that is not provided to the comptroller in a timely manner may not be included in the comptroller's recommendation, economic impact evaluation, or report. Supplemental information shall be in the same format, style, and presentation as the application.
(g) An amended application and all attached documentation shall immediately be forwarded to the comptroller in the manner specified in §9.1055(d) of this title (relating to Agreement to Limit Appraised Value).
(h) The comptroller may not consider an application more than one year after the application's filing date unless the comptroller agrees to do so in writing.
§9.1058.Miscellaneous Provisions.
(a) A recipient of limited value under Tax Code, Chapter 313 shall notify immediately the comptroller, school district, and appraisal district in writing of any change in address or other contract information for the owner of the property subject to the limitation agreement for the purposes of Tax Code, §313.032. An assignee's or its reporting entity's Texas Taxpayer Identification Number shall be included in the notification.
(b) Property list by chief appraiser. Before October 1 of each year, the chief appraiser shall compile and send to the comptroller a list of properties that are subject to a limitation on appraised value under Tax Code, Chapter 313. The comptroller may promulgate a form to facilitate the annual collection of this information from appraisal districts. The market value of each property on the list shall include separately listed taxable real and personal property owned by a person at one site. The list shall include, at a minimum, the appraisal district name, the name of any other appraisal district that appraises the property, the appraisal district number that the comptroller has assigned, the name of each school district that taxes the property, each school district number that the education agency has assigned, each account number that the appraisal district has assigned, each taxpayer name, the market value of the taxable real and personal property that the taxpayer owns at that site, any value exempted due to pollution control or other exemption, the taxable value of the taxable real and personal property that the taxpayer owns at that site, the tax year to which the listed information pertains, and the name and telephone number of a person at the appraisal district who is responsible for the information that is contained in the list.
(c) Changes in property values, population data, or strategic investment area designations that occur after an agreement is executed do not affect the job requirements or value limitation in the agreement.
(d) The comptroller may promulgate guidelines for the administration of Tax Code, Chapter 313.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on December 20, 2007.
TRD-200706547
Martin Cherry
General Counsel
Comptroller of Public Accounts
Effective date: January 9, 2008
Proposal publication date: November 9, 2007
For further information, please call: (512) 475-0387