Texas House Bill HB2300

Texas 2009 - 81st Regular

Caption

Relating to restrictions on the use of state funds to benefit private entities that outsource jobs to foreign countries.

Impact

If enacted, HB2300 would significantly alter how state funds are managed in relation to private enterprises engaged in outsourcing. By imposing restrictions on state investments, the bill seeks to incentivize companies to maintain and create jobs within the U.S., thus aligning state financial resources with state employment interests. This could lead to a decrease in state financial support for companies whose business practices include outsourcing, potentially impacting their operational funding and long-term viability.

Summary

House Bill 2300 aims to restrict the use of state funds and tax benefits for private entities that outsource jobs to foreign countries. The bill amends the Government Code by adding Chapter 2267, which explicitly prohibits state governmental entities from investing in domestic private entities that have outsourced jobs abroad, if such actions lead to the elimination or failure to create similar jobs in the United States. The core goal of this legislation is to encourage domestic job creation and protect Texas workers from job losses due to outsourcing.

Contention

Debate surrounding HB2300 centers around the implications for private businesses and the state's role in regulating their employment practices. Proponents of the bill argue that it is necessary to safeguard American jobs and prevent state funds from supporting practices that lead to job loss domestically. Conversely, critics may argue that the bill could limit the competitive edge of Texas businesses in a global economy and deter foreign investment in the state. The tension between encouraging domestic job creation and supporting business flexibility is likely to be a point of contention in the discussion of this bill.