79(R) HB 485 - House Committee Report version


                                                                                
79R4325 KEG-D


By:  Chavez                                                       H.B. No. 485

Substitute the following for H.B. No. 485:                                    

By:  Castro                                                   C.S.H.B. No. 485



A BILL TO BE ENTITLED

AN ACT

relating to restrictions on the use of state funds to provide jobs 
for workers outside the United States.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subtitle F, Title 10, Government Code, is 
amended by adding Chapter 2264 to read as follows:

CHAPTER 2264.  RESTRICTIONS ON THE USE OF STATE FUNDS

TO PROVIDE JOBS FOR WORKERS OUTSIDE THE UNITED STATES

SUBCHAPTER A. GENERAL PROVISIONS
	Sec. 2264.001.  DEFINITIONS.  In this chapter:                          
		(1)  "Development assistance" means a public program or 
public benefit or assistance of any type that is designed to 
stimulate the economic development of a corporation, industry, or 
sector of the state's economy, including a geographic area of the 
state.  The term includes bonds, training grants, loans, loan 
guarantees, benefits relating to an enterprise or empowerment zone, 
tax increment financing, fee waivers, land price subsidies, 
infrastructure development and improvements designed to 
principally benefit a single business or defined group of 
businesses, matching funds, tax abatements, or any type of tax 
credit, tax discount, or tax exemption.  The term does not include 
tax abatements, credits, discounts, or exemptions specifically 
authorized by the Texas Constitution.
		(2)  "Public agency" means this state or an agency, 
instrumentality, or political subdivision of this state, including 
a county, a municipality, a public school district, or a 
special-purpose district or authority.

[Sections 2264.002-2264.050 reserved for expansion]

SUBCHAPTER B.  RESTRICTIONS ON SERVICE CONTRACTS THAT PROVIDE

JOBS TO WORKERS OUTSIDE THE UNITED STATES
	Sec. 2264.051.  APPLICABILITY.  This subchapter applies only 
in relation to a contract:
		(1)  that is primarily a contract for services; and                    
		(2)  for which any part of the contract price will be 
paid with money derived directly or indirectly from the state 
treasury.
	Sec. 2264.052.  PROHIBITION ON CERTAIN SERVICE CONTRACTS.  A 
public agency may not award a contract to a contractor if the 
contractor or any of its subcontractors propose to perform work 
under the contract in a country other than the United States.
	Sec. 2264.053.  STATEMENT REQUIRED IN BIDS AND PROPOSALS.  A 
contractor that submits a bid, proposal, or other offer to a public 
agency for a contract must include in the bid, proposal, or other 
offer a statement certifying that the work required by the 
contract, including work performed by subcontractors, will be 
performed in the United States.
	Sec. 2264.054.  PROVISION IN SERVICE CONTRACTS.  A public 
agency that enters into a contract must include in the contract a 
provision stating that, in the event a contractor or subcontractor 
performs any part of the work under the contract in a country other 
than the United States, the contract will be terminated and the 
contractor is liable to repay the public agency an amount equal to 
the amount paid by the public agency for the percentage of work that 
was performed in a country other than the United States.

[Sections 2264.055-2264.100 reserved for expansion]

SUBCHAPTER C.  RESTRICTIONS ON USE OF DEVELOPMENT ASSISTANCE TO 
PROVIDE JOBS TO WORKERS OUTSIDE THE UNITED STATES
	Sec. 2264.101.  LIMITATION ON DEVELOPMENT ASSISTANCE.  A 
public agency may not provide development assistance to an entity 
that proposes to use the assistance to create employment in a 
country other than the United States.
	Sec. 2264.102.  STATEMENT REQUIRED IN APPLICATIONS FOR 
DEVELOPMENT ASSISTANCE.  An entity that submits an application to a 
public agency for development assistance must include in the 
application a statement certifying that the employment created by 
the assistance will be created in the United States.
	Sec. 2264.103.  CONDITION ON RECEIPT OF DEVELOPMENT 
ASSISTANCE.  (a)  A public agency that provides development 
assistance must inform each proposed recipient, in writing, that in 
the event the recipient uses the assistance to create employment in 
a country other than the United States, the assistance will be 
terminated and the recipient is liable to pay the public agency an 
amount equal to the portion of the dollar value of the assistance 
used to create employment in a country other than the United States.
	(b)  The recipient must agree to this condition to receive 
the development assistance.

[Sections 2264.104-2264.150 reserved for expansion]


SUBCHAPTER D.  PENALTIES AND ENFORCEMENT
	Sec. 2264.151.  BARRING FROM FUTURE CONTRACTS OR DEVELOPMENT 
ASSISTANCE.  (a)  A contractor or other entity that has a contract 
terminated under Subchapter B may not be awarded a contract to which 
Subchapter B applies before the fifth anniversary of the date on 
which the public agency terminated the contract.
	(b)  A recipient of development assistance that has a form of 
development assistance terminated by a public agency because the 
agency determined that the recipient used the assistance to create 
employment in a country other than the United States may not be 
awarded any form of development assistance before the fifth 
anniversary of the date on which the agency terminated the 
assistance.
	Sec. 2264.152.  RECOVERY.  (a)  The public agency, or the 
attorney general at the request of a public agency that is a state 
agency, may bring a civil action to recover any amounts owed to the 
agency under this chapter.
	(b)  The public agency or attorney general, as applicable, 
may recover court costs and reasonable attorney's fees incurred in 
an action brought under Subsection (a).
	SECTION 2.  (a) The changes in law made by this Act to public 
contracting procedures apply only to a contract for which a public 
agency first advertises or otherwise solicits bids, proposals, 
offers, or qualifications, as applicable, on or after September 1, 
2005.
	(b)  A contract for which a public agency first advertised or 
otherwise solicited bids, proposals, offers, or qualifications, as 
applicable, before September 1, 2005, is governed by the law as it 
existed immediately before the effective date of this Act, and that 
law is continued in effect for that purpose.
	SECTION 3.  (a)  The changes in law made by this Act relating 
to the provision of development assistance by a public agency apply 
only to development assistance provided in response to an 
application for the assistance that a public agency receives on or 
after September 1, 2005.
	(b)  Development assistance provided in response to an 
application for the assistance that a public agency receives before 
September 1, 2005, is governed by the law as it existed immediately 
before that date, and the prior law is continued in effect for that 
purpose.
	SECTION 4.  This Act takes effect September 1, 2005.