CCGB(LOCAL) - AD VALOREM TAXES: ECONOMIC DEVELOPMENT
Texas Economic Development Act
These provisions outline the District's procedures for accepting, reviewing, and considering applications and amendments to applications, and, when necessary, enforcing agreements under the Texas Economic Development Act (the Act), as set forth in Tax Code Chapter 313. [See CCGB(LEGAL)]
In addition to the definitions set out in CCGB(LEGAL), the following definitions apply in this policy:
"Application review period" means the period during which the Board will consider and act on an application. The application review period begins on the application review start date and ends on the 151st day thereafter, unless the application review period is extended by Board action prior to the expiration date.
"Appraisal district" means each county appraisal district that appraises property that is the subject of an application.
Filing an Application
In the form and formats required by the comptroller, an applicant shall file with the Superintendent the original and copies of the completed application along with a searchable electronic copy certified to contain information identical to the original hard copy. [See CCGB(LEGAL) at Required Contents and Format]
The Superintendent shall hold any incomplete applications or applications submitted without the full application fee until the application is properly completed and the application fee is paid. The Superintendent's determination of whether an application is complete shall be final.
Confidentiality of Applicant Information
If the Board decides to consider an application, information provided in connection with an application will not be considered confidential except as allowed by law. [See CCGB(LEGAL) at Confidential Business Information]
Amending an Application
An applicant may seek to amend an application at any time prior to the comptroller issuing an economic impact analysis. If an amended application is filed within 60 days of the end of the application review period, the application review period shall be extended automatically to the 61st day after the date on which the last amended application is filed, unless the Board takes action to extend the application review period otherwise.
The Superintendent shall review and forward to the comptroller any amended application or supplemental information on receipt.
Application Fee Schedule
The Board has established the following fee schedule:
- $75,000 for projects valued at less than $500 million total anticipated investment.
- $100,000 for projects valued from $500 million to less than $1 billion total anticipated investment.
- $150,000 for projects valued at or above $1 billion total anticipated investment.
The application fee is nonrefundable unless the application is rejected after an initial Board review, as defined in this policy, or if the actual costs incurred in the review process are exceeded by the anticipated costs as established in this policy.
The application fee does not include any amount charged to the applicant by the comptroller's office for its economic impact study.
Application Amendment Fee
In the event that an applicant or agreement holder seeks to amend an application or an agreement at any time after the comptroller has issued an economic impact analysis on the application pursuant to 34 Administrative Code 9.1055(d), an application amendment fee of no less than $25,000 and no greater than $65,000 shall be charged. The amendment fee shall consider the nature of the amendment and the actual time and expense required to evaluate, review, and process that amendment.
Agreement Assignment Fee
In the event that an applicant or agreement holder seeks to assign an agreement to another entity at any time, an agreement assignment fee of $5,000 shall be charged.
Processing an Application
Before Initial Board Review
Upon receipt of an application and application fee, the Superintendent shall:
- Send the applicant written confirmation of receipt of the application and application fee.
- Review the application and, as necessary, require the applicant to submit additional and/or supplementary information, including all required schedules.
- Within seven days of receipt of a completed application, submit the application to the comptroller, together with any economic analysis of the proposed project submitted by the applicant.
- Obtain necessary conflict of interest disclosures. [See BBFA(LEGAL)]
Initial Board Review
As soon as practical after an application is filed, the Board shall conduct an initial review of the application during which the Board may consider the Superintendent's recommendation and written or oral presentations concerning the application.
If, after the initial review, the Board determines that the application is not in the best interests of the District, the Board shall reject the application and return to the applicant the application fee, less any necessary and reasonable costs of the initial review.
After Initial Board Review
If the Board elects to consider the completed application, the Superintendent shall:
- Deposit the application fee and provide required written notice to the applicant and comptroller, with a copy to the appraisal district, that the District has received and will consider the completed application;
- Deliver to the comptroller a copy of the application and required material along with a request for an economic impact evaluation;
- Accept on behalf of the Board any amendments or supplements submitted by the applicant, and transmit copies to the comptroller within seven days of receipt;
- Direct appropriate District personnel to create a link from the District's website to the location on the comptroller's website where copies of applications are posted;
- Within the time allowed by law, provide all required supplemental information necessary to assist the comptroller and the Texas Education Agency (TEA) with the required analyses;
- On receipt, provide the applicant and District consultants with a copy of the economic impact evaluation and the school facilities impact analysis;
- Work with the applicant and District consultants to provide the District and the comptroller with copies of the proposed agreement in a timely manner [see CCGB(LEGAL) at Continued Eligibility];
- Take all action necessary or required to process the application;
- Not later than 151 days after the application review start date, present to the Board an agreement for final approval or a request for extension of the application review period;
- If an extension of the application review period is requested, report each such request to the comptroller within seven days of the decision to grant the extension; and
- After Board action on the application, if any, transmit all necessary and required information to the comptroller, the applicant, and the appraisal district.
On retention by the Board, District consultants, including legal counsel, shall review the application to ensure it includes all required information. District consultants shall also begin an analysis of the application, consider any legal implications of the application, draft and negotiate an appropriate revenue protection agreement, and evaluate the analyses from the comptroller and TEA on receipt.
District consultants shall be paid for services from the application fee and shall complete their analyses in time to assist the Board, as appropriate, in its initial review or final determination on the application.
Board Action on Application
Completed applications may be considered for approval by the Board only after completion of the economic impact evaluation and the school facilities impact analysis and receipt of the comptroller's certification, as required by the Act.
The Board's final determination on an application shall be made after a public hearing at which the Superintendent, District consultants, the applicant, and members of the public may provide input and information concerning the proposed application. The comptroller's certification shall be disclosed at the public hearing.
The public hearing shall be held at a time that allows the Board to approve or disapprove an application before the expiration of the application review period, unless the deadline has been extended.
Findings of Fact
After the public hearing, the Board shall make specific written findings as required by law. [See CCGB(LEGAL) at Approval]
Adoption of Agreement
After considering the comptroller's certification, the economic impact evaluation, the school facilities impact analysis, information from District consultants, and any other relevant information, the Board may approve the application and enter into an agreement that complies with all legal requirements. [See CCGB(LEGAL) at Agreement] The Board shall also consider and adopt an agreement with the applicant to provide protection from or compensation for any financial risks undertaken by the District in accepting the application.
Waiver of Jobs Requirement
The Board may waive the new jobs creation requirement in accordance with the law. [See CCGB(LEGAL) at Waiver of New Jobs Creation Requirement] If an applicant makes a waiver request subsequent to the original application, the Board may charge the applicant a fee to cover the costs of any consultant required by the Board in making the requisite finding.
Superintendent Responsibilities After Agreement
During the term of any agreement, the Superintendent shall ensure that all reporting requirements are met in a timely manner by the District and the applicant. The Superintendent is authorized to delegate this function to District consultants.
Statements Regarding Conflicts of Interest
Each Board member and any District employee who is a local government official under Local Government Code Chapter 176 shall submit a conflict of interest statement confirming or denying the existence of a conflict of interest or a substantial business interest in each project that is the subject of an application, agreement, or amendment to an agreement with the District. Within 60 days after each Board election or the appointment of a Board member, each new Board member shall complete a statement. The completed statements shall be retained by the District with each affected application or agreement. If a conflict or substantial interest exists, the appropriate disclosure forms shall be completed and filed as required by law. [See BBFA(LEGAL)]