(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 § 403.605 for the eligible property subject to the agreement;
(5) specify the applicable jobs and investment requirements prescribed by § 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 § 403.616(c)(4); and
(B) the applicant’s number of total jobs as reported under § 403.616(c)(3);
(7) require the applicant to pay a penalty prescribed by § 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 § 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.