1. (a) The priority 5 carryforward classification applies to an issuer that:

   1. (1) was created to act on behalf of this state or one or more political subdivisions of this state; and

   2. (2) is applying for carryforward for a project:

      1. (A) for which there has been an inducement resolution or other comparable preliminary approval; and

      2. (B) with respect to which:

         1. (i) a binding contract to incur significant expenditures for construction, reconstruction, or rehabilitation was entered into before submission of the application;
         2. (ii) significant expenditures for construction, reconstruction, or rehabilitation were readily identifiable with and necessary to carry out a binding contract for the supply of property or services or the sale of output; or
         3. (iii) significant expenditures were paid or incurred before submission of the application.

2. (b) In this section, "significant expenditures" means expenditures that are greater than the lesser of:

   1. (1) $1 million; or
   2. (2) 10 percent of the reasonably anticipated cost of the project.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.