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A BILL TO BE ENTITLED
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AN ACT
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relating to limitations on certain hiring practices relating to |
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certain nonpermanent residents by certain companies that receive |
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governmental contracts or financial benefits; authorizing civil |
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penalties. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle F, Title 10, Government Code, is |
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amended by adding Chapter 2278 to read as follows: |
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CHAPTER 2278. CERTAIN LIMITATIONS ON HIRING PRACTICES REGARDING |
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CERTAIN NONPERMANENT RESIDENTS |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 2278.001. DEFINITIONS. In this chapter: |
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(1) "Company" has the meaning assigned by Section |
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808.001. |
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(2) "Governmental entity" has the meaning assigned by |
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Section 2251.001. |
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(3) "Listed financial benefit" means a financial |
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benefit listed by rule adopted under Section 2278.051(2). |
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(4) "Nonpermanent resident" means an individual who is |
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a nonpermanent resident of the United States who holds an unexpired |
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visa issued by the federal government in Category F (student), H-1B |
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(temporary worker in a specialty occupation), or O (foreign |
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national with extraordinary ability in sciences, arts, education, |
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business, or athletics). |
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(5) "Tax preference" means a credit, discount, |
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exclusion, exemption, refund, special valuation, special |
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accounting treatment, special rate, or special method of reporting |
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authorized by state law that relates to a state or local tax imposed |
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in this state. |
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SUBCHAPTER B. LIMITATION ON CERTAIN HIRING PRACTICES |
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Sec. 2278.051. LISTED FINANCIAL BENEFITS. The comptroller |
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shall: |
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(1) identify each financial benefit, other than a |
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contract, offered by a governmental entity to a company that is |
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organized or doing business in this state, including a grant, |
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low-interest loan, tax preference, or other financial incentive; |
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and |
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(2) by rule adopt a list of each financial benefit |
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identified under Subdivision (1). |
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Sec. 2278.052. LIMITATION ON CERTAIN HIRING PRACTICES. A |
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company that receives a listed financial benefit may not hire a |
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nonpermanent resident if hiring the nonpermanent resident would |
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result in more than five percent of the total amount of the |
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company's employees being nonpermanent residents. |
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Sec. 2278.053. PROVISION REQUIRED IN CONTRACT. A |
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governmental entity and a company may not enter into a contract for |
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goods or services unless the contract contains a written |
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verification from the company that: |
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(1) not more than five percent of the total amount of |
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the company's employees are nonpermanent residents; and |
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(2) during the term of the contract, the company will |
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not hire a nonpermanent resident if hiring the nonpermanent |
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resident will result in more than five percent of the total amount |
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of the company's employees being nonpermanent residents. |
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SUBCHAPTER C. ENFORCEMENT |
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Sec. 2278.101. CIVIL PENALTY FOR VIOLATION BY COMPANY. (a) |
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A company that violates Section 2278.052 or enters into a contract |
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that violates Section 2278.053 is liable to this state for a civil |
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penalty in the amount of $5,000 for each violation. Each day a |
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violation of Section 2278.052 continues is considered a separate |
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violation for purposes of this subsection. |
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(b) A resident of this state may file a complaint with the |
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attorney general alleging that a company is in violation of Section |
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2278.052 or has violated a provision required to be included in a |
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contract with a governmental entity under Section 2278.053. The |
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resident must include with the complaint a signed statement |
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describing the violation. |
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(c) If, based on an investigation, the attorney general |
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determines the company has violated Section 2278.052 or has |
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violated a provision required to be included in a contract with a |
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governmental entity under Section 2278.053, the attorney general |
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shall provide the company with a written notice that: |
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(1) describes the violation; |
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(2) states the amount of the proposed civil penalty |
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for the violation; and |
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(3) requires the company to cure the violation on or |
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before the seventh day after the date the notice is received to |
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avoid the civil penalty. |
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(d) If a company does not cure the violation on or before the |
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seventh day after the date notice under Subsection (c) is received, |
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the attorney general may sue to collect the civil penalty. |
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(e) The attorney general may recover reasonable expenses |
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incurred in obtaining relief under this section, including court |
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costs, reasonable attorney's fees, investigative costs, witness |
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fees, and deposition costs. |
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Sec. 2278.102. LIABILITY TO GOVERNMENTAL ENTITY; |
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ADDITIONAL CIVIL PENALTY. (a) In addition to any other remedy |
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provided by this chapter, a company that violates Section 2278.052 |
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and does not cure the violation in the manner provided by Section |
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2278.101 is liable to a governmental entity from which the company |
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received a listed financial benefit for a civil penalty in an amount |
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equal to twice the amount of all listed financial benefits the |
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company received from the governmental entity. |
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(b) In addition to any other remedy provided by this |
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chapter, a company that violates a provision required to be |
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included in a contract with a governmental entity under Section |
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2278.053 and does not cure the violation in the manner provided by |
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Section 2278.101 is liable to the governmental entity for a civil |
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penalty in an amount equal to twice the amount of the contract. |
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(c) The attorney general or a district attorney or county |
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attorney, as appropriate, may bring an action to recover a civil |
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penalty imposed under this section. The attorney general, district |
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attorney, or county attorney may recover reasonable attorney's fees |
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and court costs in bringing an action under this section. |
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Sec. 2278.103. REPORTING. A company shall annually submit |
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to the comptroller, in a form and manner determined by the |
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comptroller, a report detailing the percentage amount of the |
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company's employees that are nonpermanent residents. |
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SECTION 2. The comptroller of public accounts shall adopt |
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the list described by Section 2278.051, Government Code, as added |
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by this Act, not later than January 1, 2026. |
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SECTION 3. Section 2278.053, Government Code, as added by |
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this Act, applies only to a contract for which a governmental entity |
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first advertises or otherwise solicits bids, proposals, offers, or |
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qualifications or makes a similar solicitation on or after the |
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effective date of this Act. A contract for which a governmental |
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entity first advertises or otherwise solicits bids, proposals, |
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offers, or qualifications or makes a similar solicitation before |
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that date is governed by the law in effect on the date the |
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advertisement or solicitation is made, and the former law is |
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continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2025. |