| 1 | 1 | | 84R3066 AAF-F |
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| 2 | 2 | | By: Davis of Dallas H.B. No. 1001 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to restrictions on tax and fee benefits for certain |
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| 8 | 8 | | private entities that outsource jobs to foreign countries; changing |
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| 9 | 9 | | taxes and fees. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subtitle F, Title 10, Government Code, is |
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| 12 | 12 | | amended by adding Chapter 2270 to read as follows: |
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| 13 | 13 | | CHAPTER 2270. RESTRICTIONS ON TAX AND FEE BENEFITS TO ENTITIES THAT |
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| 14 | 14 | | OUTSOURCE JOBS TO FOREIGN COUNTRIES |
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| 15 | 15 | | Sec. 2270.001. DEFINITIONS. In this chapter: |
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| 16 | 16 | | (1) "Domestic" means created or organized in the |
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| 17 | 17 | | United States or under the laws of the United States or any state. |
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| 18 | 18 | | (2) "State agency" means a department, board, |
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| 19 | 19 | | commission, or other agency in the executive branch of state |
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| 20 | 20 | | government. The term does not include an institution of higher |
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| 21 | 21 | | education as defined by Section 61.003, Education Code. |
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| 22 | 22 | | Sec. 2270.002. APPLICABILITY OF CHAPTER. This chapter does |
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| 23 | 23 | | not apply to a credit, exemption, or discount for which the Texas |
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| 24 | 24 | | Constitution specifically prescribes the eligibility requirements. |
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| 25 | 25 | | Sec. 2270.003. INELIGIBILITY OF CERTAIN ENTITIES FOR TAX |
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| 26 | 26 | | AND FEE BENEFITS. Notwithstanding other law, a domestic private |
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| 27 | 27 | | entity is not eligible for a credit, exemption, or discount in |
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| 28 | 28 | | relation to a tax or fee imposed by the state if the entity, at any |
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| 29 | 29 | | time during the previous two years, created employment suitable for |
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| 30 | 30 | | performance in the United States in a country other than the United |
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| 31 | 31 | | States and, as a result, eliminated or failed to create similar |
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| 32 | 32 | | employment in the United States. |
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| 33 | 33 | | Sec. 2270.004. DENIAL OF BENEFITS. (a) A state agency |
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| 34 | 34 | | responsible for the issuance of a credit, exemption, or discount in |
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| 35 | 35 | | relation to a tax or fee imposed by the state shall adopt rules in |
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| 36 | 36 | | accordance with Subchapter B, Chapter 2001, relating to the manner |
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| 37 | 37 | | in which: |
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| 38 | 38 | | (1) the agency will determine whether to deny the |
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| 39 | 39 | | benefit under Section 2270.003 or 2270.005; and |
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| 40 | 40 | | (2) a person may ask the agency to reconsider the |
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| 41 | 41 | | denial. |
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| 42 | 42 | | (b) The rules adopted by a state agency shall require that |
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| 43 | 43 | | as soon as practicable after making the decision to deny a credit, |
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| 44 | 44 | | exemption, or discount to a domestic private entity that is |
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| 45 | 45 | | ineligible for the benefit under Section 2270.003 or 2270.005 but |
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| 46 | 46 | | is otherwise eligible for the benefit, the state agency shall |
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| 47 | 47 | | provide the domestic private entity with notice of and the factual |
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| 48 | 48 | | basis for the denial and a description of the procedures available |
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| 49 | 49 | | to request a reconsideration and to contest the factual or legal |
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| 50 | 50 | | basis for the denial. |
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| 51 | 51 | | Sec. 2270.005. REPORTING. (a) In addition to the standard |
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| 52 | 52 | | imposed by Section 2270.003, a domestic private entity that applies |
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| 53 | 53 | | for a credit, exemption, or discount in relation to a tax or fee |
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| 54 | 54 | | imposed by the state is not eligible for the credit, exemption, or |
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| 55 | 55 | | discount unless, during the six-month period before applying for |
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| 56 | 56 | | the credit, exemption, or discount, the entity reports to the Texas |
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| 57 | 57 | | Workforce Commission on the number of jobs the entity created in |
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| 58 | 58 | | this state and the number of jobs suitable for performance in the |
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| 59 | 59 | | United States that the entity created in a country other than the |
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| 60 | 60 | | United States during the 12-month period before the date of the |
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| 61 | 61 | | report. |
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| 62 | 62 | | (b) Not later than December 31 of each year, the Texas |
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| 63 | 63 | | Workforce Commission shall, based on information obtained from the |
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| 64 | 64 | | reports under Subsection (a), report to the governor, the |
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| 65 | 65 | | lieutenant governor, and the speaker of the house of |
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| 66 | 66 | | representatives the domestic private entities that are not eligible |
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| 67 | 67 | | for a credit, exemption, or discount under Section 2270.003. |
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| 68 | 68 | | SECTION 2. Chapter 2270, Government Code, as added by this |
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| 69 | 69 | | Act, applies only to a credit, exemption, or discount provided or |
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| 70 | 70 | | denied on or after September 1, 2016, in relation to a tax or fee |
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| 71 | 71 | | imposed by the state. |
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| 72 | 72 | | SECTION 3. This Act takes effect September 1, 2015. |
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