The Comptroller of Public Accounts adopts amendments to §9.1051, concerning definitions, §9.1052. concerning forms, §9.1053, concerning entity requesting agreement to limit appraised value, §9.1055, concerning comptroller application review and agreement to limit appraised value, and §9.1058, concerning miscellaneous provisions, without changes to the proposed text as published in the November 29, 2019, issue of the Texas Register (44 TexReg 7356). The rules will not be republished.

The amendments to §9.1051 amend the definition of substantive document in paragraph (19) to clarify that employee names and personal identifying information will not be treated as substantive documents that will be required to be posted on the comptroller's website; and update the definitions of average weekly wage for manufacturing jobs in paragraph (21), average weekly wage for non-qualifying jobs in paragraph (22) and unemployment in paragraph (29) to remove references to webpage links that are no longer correct.

The changes to §9.1052 only changes Form 50-296A, Application for Appraised Value Limitation on Qualified Property and Form 50-826, Texas Economic Development Act Agreement and otherwise do not change the rule itself. Copies of Form 50-296A and Form 50-826 are available on the comptroller's website at https://comptroller.texas.gov/economy/local/ch313/forms.php. The revised Form 50-296A clarifies that only non-confidential application materials will be published on the comptroller website, requests additional information about the identity of the parent company and reporting entity for Texas franchise tax purposes, requests the applicant to identify the estimated beginning date of the limitation period under Tax Code, §313.027(a-1)(2), and identify all other state and local incentives applicable to the project. The revised Form 50-826 amends the definition of Force Majeure, changes Article VII, Annual Limitation of Payments by Applicant, to permit the district and applicant to negotiate the applicable terms, updates the reference to Exhibit 4 in the agreement for the description of the applicant's Qualified Property, amends Section 8.5.A to extend from 48 hours to 96 hours the time required for written notice by the school district to inspect the applicant's Qualified Property and amends Section 10.12 to require the applicant to provide notice to the comptroller's office of any actual or anticipated change in ownership of the applicant and of any legal or administrative investigations or proceedings initiated against the Applicant related to the project.

The amendments to §9.1053 update subsection (a)(1)(A) and (2)(B)(i) to remove the reference to Schedule D in the application because Schedule D no longer exists; amend subsection (f)(2) to change the deadline to provide the proposed agreement to the school district and comptroller from 20 days to 30 days prior to the meeting at which the governing body of the school district is scheduled to consider the application; and add subsection (f)(9) to require applicants to provide the comptroller with estimates of the gross tax benefit that would result from the limitation on appraised value on the qualified property within 30 days after filing a completed application with the school district to assist the comptroller in evaluating the applications.

The amendment to §9.1055 amends subsection (e) to extend from 10 business days to 20 business days the time the comptroller has to review a proposed 313 agreement and provide written notification to the school district after completing its review. The amendment also rewords subsection (e)(2) to enhance readability.

The amendment to §9.1058 amends subsection (f) to clarify that all agreements in a series under Tax Code, §313.027(h) must be submitted concurrently at application and the application must clearly state the agreement will be part of a series and set forth the other agreements that are intended to be included as part of the series of agreements.

No comments were received regarding adoption of the amendments.

The amendments are adopted under Tax Code, §313.031, which authorizes the comptroller to adopt rules necessary for the implementation and administration of Tax Code, Chapter 313.

The amendments implement Tax Code, Chapter 313.