C.S.H.B. 1196

                                                                                                                                     By: Kolkhorst

                                                                                                                      Economic Development

                                                                                                        Committee Report (Substituted)






Many Texans are concerned about the impact of illegal immigration and the associated dangers related to the illegal smuggling of humans.  The purpose of C.S.H.B. 1196 is to ensure that public funds are not used to encourage illegal immigration into the state by prohibiting any taxpayer-subsidized job-creation grant or tax-abatement being given to any business entity in Texas that is found to be in violation of federal immigration law.   




It is the opinion of the committee that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. 




SECTION 1.  Amends Subtitle F, Title 10, Government Code, by adding Chapter 2264, as follows:


            Section. 2264.001.  States the definition of "economic development corporation, "public   agency, "public subsidy," and "unauthorized alien."


            Reserves Sections 2264.002-2264.050 for expansion.


            Section 2264.051.  Establishes that a public agency, state or local taxing jurisdiction, or     economic development corporation (granting entity) shall require businesses applying for       public subsidies to include, in applications, a statement certifying that the business does    not and will not employ an unauthorized alien.


            Section 2264.052.  Requires the authorized statement required by Section 2264.051 to      contain language that informs the business that if, after receiving a public subsidy, the           business is convicted of violating 8 U.S.C. Section 1324a, the business will be required to          repay the granting entity the amount of the subsidy given plus interest within 120 days    after the granting entity sends notice of the violation. 


            Section 2264.053.  States that prior to the granting of any monies, the granting entity        must agree in writing with the business to terms of repayment, should a violation occur. 


            Reserves Sections 2264.054-2264.100 for expansion.


            Section 2264.101.  Provides that a granting entity, or the attorney general, is given            the ability to file a civil action to recover the amounts owed, including court costs and             reasonable attorney's fees, to the granting entity.  A business is not liable for a violation if        a subsidiary, affiliate, or franchisee of the business is found in violation of the chapter.


SECTION 2.  Provides transition language applying provisions of this Act to infractions incurred on or after September 1, 2007.


SECTION 3.  States the effective date for this Act.




September 1, 2007.




C.S.H.B. 1196 modifies the original by removing the requirement that a business that submits an application for a public subsidy include in the application a statement certifying that the business or a subsidiary, branch division, affiliate or department of the business does not and will not contract with a person who employs an unauthorized alien.  The substitute removes language from the original that holds a business in violation of this bill if an affiliate or subsidiary, or a person with whom the business, subsidiary, branch, division, affiliate, or department of the business contracts with, is convicted of violating 8 U.S.C. Section 1324a or is found to have employed a person convicted of violating 8 U.S.C. Section 1324c.  The substitute also adds a provision that a business is not liable for a violation by a subsidiary, affiliate, or a franchisee of the business.