82R5775 JE-F
By: Davis of Dallas H.B. No. 2105
A BILL TO BE ENTITLED
AN ACT
relating to employment restrictions on persons awarded certain
government contracts or public subsidies; providing a civil
penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The legislature finds that:
(1) public agencies procure services in part through
contracts with vendors;
(2) increasingly, vendors carry out, subcontract, or
otherwise procure these services from a location outside the United
States;
(3) international outsourcing exacerbates
unemployment and workforce dislocation and deprives Texas
residents of job opportunities, including industries and jobs this
state has expended public subsidies to attract;
(4) international outsourcing erodes state and local
revenues by drawing jobs and income away from the state; and
(5) international outsourcing may provide less
privacy protection for state residents whose personal information
may, in the course of service delivery, be transmitted to locations
outside the United States.
SECTION 2. Subtitle F, Title 10, Government Code, is
amended by adding Chapter 2267 to read as follows:
CHAPTER 2267. REQUIREMENTS FOR CERTAIN CONTRACTS AND PUBLIC
SUBSIDIES; OUTSOURCING PROHIBITIONS
Sec. 2267.001. DEFINITIONS. In this chapter:
(1) "Public agency" means the state or an agency,
instrumentality, or political subdivision of this state, including
a county, municipality, public school district, or special-purpose
district or authority.
(2) "Public subsidy" 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 or to create or retain jobs in this state. The term
includes grants, loans, loan guarantees, benefits relating to an
enterprise or empowerment zone, fee waivers, land price subsidies,
infrastructure development and improvements designed to
principally benefit a single business or defined group of
businesses, matching funds, tax refunds, tax rebates, or tax
abatements.
Sec. 2267.002. CONDITION FOR CONTRACT OR PUBLIC SUBSIDY.
(a) Except as provided by Section 2267.005(a), a public agency may
not award a contract to a vendor, bidder, contractor, or
subcontractor that will perform the work related to the contract
with workers located outside the United States.
(b) Except as provided by Section 2267.005(b), a public
agency may not award or provide a public subsidy to an applicant
that will perform any work related to the subsidy with workers
located outside the United States.
Sec. 2267.003. ELIGIBILITY FOR CONTRACTS AND PUBLIC
SUBSIDIES. (a) In addition to any other eligibility requirements a
vendor, bidder, contractor, or subcontractor must satisfy before
submitting a bid or contract with a public agency, the vendor,
bidder, contractor, or subcontractor must agree in writing to:
(1) perform the services covered by the bid or
contract with workers located in the United States; and
(2) repay the public agency the amount paid to workers
outside of the United States to perform work under the contract in
violation of Section 2267.004(a).
(b) In addition to any other eligibility requirements a
public subsidy applicant must satisfy before receiving a public
subsidy, the applicant must agree in writing to:
(1) perform any services covered by the subsidy with
workers located in the United States; and
(2) repay the public agency the amount of the subsidy
used to pay workers outside of the United States in violation of
Section 2267.004(b).
Sec. 2267.004. OUTSOURCING PROHIBITED. (a) Except as
provided by Section 2267.005(a), the vendor, contractor, or
subcontractor may not employ workers located outside the United
States to perform services under a contract with a public agency.
(b) Except as provided by Section 2267.005(b), a recipient
of a public subsidy may not employ workers located outside the
United States with funds from a public subsidy.
Sec. 2267.005. WAIVERS. (a) A public agency may waive the
requirements of Section 2267.002(a), 2267.003(a), or 2267.004(a)
for a period not to exceed six months for a contract or a bid for a
contract if:
(1) the agency submits a written finding to the state
auditor's office that:
(A) the agency determines a contract is necessary
to respond to an emergency because:
(i) the agency's ability to provide
essential services would be adversely affected if the contract is
not performed;
(ii) public health and safety is threatened
if the contract is not performed; and
(iii) a vendor, bidder, contractor, or
subcontractor that can perform the work related to the contract
with workers located in the United States is not immediately
available to perform the services; or
(B) the agency determines that:
(i) the work related to the contract is
mandatory; and
(ii) workers located in the United States
cannot adequately perform the unique work related to the contract;
and
(2) the state auditor's office determines the finding
submitted under Subdivision (1) to be valid.
(b) A public agency may waive the requirements of Section
2267.002(b), 2267.003(b), or 2267.004(b) for a period not to exceed
six months for a public subsidy if:
(1) the agency submits a written finding to the state
auditor's office that:
(A) the agency determines a public subsidy is
necessary to respond to an emergency because:
(i) the agency's ability to provide
essential services would be adversely affected if the public
subsidy is not awarded; and
(ii) workers located in the United States
are not immediately available to perform the work related to the
subsidy; or
(B) the agency determines that:
(i) the work related to the public subsidy
is mandatory; and
(ii) workers located in the United States
cannot adequately perform the unique work related to the public
subsidy; and
(2) the state auditor's office determines the finding
submitted under Subdivision (1) to be valid.
Sec. 2267.006. TERMINATION OF CONTRACT; REPAYMENT OF
SUBSIDY. (a) If a vendor, contractor, or subcontractor violates
Section 2267.004(a):
(1) the vendor, contractor, or subcontractor shall
repay to the public agency that is a party to the contract the
amount used to pay workers outside of the United States to perform
services under the contract; and
(2) the public agency that is a party to the contract:
(A) shall terminate the contract for
noncompliance; and
(B) may not enter into a contract with the
vendor, contractor, or subcontractor before the fifth anniversary
after the date of termination of the contract.
(b) If a public subsidy recipient violates Section
2267.004(b):
(1) the recipient shall repay the public agency that
awarded the subsidy the amount of the subsidy used to pay workers
outside of the United States; and
(2) the public agency that awarded the public subsidy
may not award a public subsidy to the recipient before the fifth
anniversary after the date the recipient repays the subsidy.
Sec. 2267.007. ATTORNEY'S FEES AND COSTS. A public agency
may bring a civil action to recover damages in a district court. If
the public agency prevails in the civil action, the court shall
award reasonable attorney's fees and costs to the agency.
SECTION 3. Chapter 2267, Government Code, as added by this
Act, applies only to a bid for a contract submitted or an
application for a public subsidy filed on or after the effective
date of this Act. A bid for a contract submitted or an application
filed before the effective date of this Act is governed by the law
in effect on the date the bid was submitted or the application was
filed, and that law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2011.