By: Paxton S.B. No. 2484
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting contracts or other agreements involving the
receipt of certain tax incentives by certain foreign-owned
companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 10, Government Code, is
amended by adding Chapter 2278 to read as follows:
CHAPTER 2278. PROHIBITION ON CONTRACTS INVOLVING RECEIPT OF TAX
INCENTIVES BY CERTAIN FOREIGN-OWNED COMPANIES
Sec. 2278.001. DEFINITIONS. In this chapter:
(1) "Company" means a sole proprietorship,
organization, association, corporation, partnership, joint
venture, limited partnership, limited liability partnership, or
limited liability company, including a wholly owned subsidiary,
majority-owned subsidiary, parent company, or affiliate of those
entities or business associations, that exists to make a profit.
(2) "Governmental entity" means a state agency or
political subdivision of this state.
(3) "Tax incentive" has the meaning assigned by
Section 490G.001.
Sec. 2278.002. PROHIBITED CONTRACTS. (a) A governmental
entity may not enter into a contract or other agreement relating to
tax incentives in this state with a company if:
(1) under the contract or other agreement, the company
would receive or be granted tax incentives from the governmental
entity; and
(2) the governmental entity knows that the company is:
(A) owned by or the majority of stock or other
ownership interest of the company is held or controlled by a company
or other entity, including a governmental entity, that is directly
controlled by the government of China, Iran, North Korea, or
Russia; or
(B) headquartered in China, Iran, North Korea, or
Russia.
(b) The prohibition described by Subsection (a) applies
regardless of whether:
(1) the company's or its parent company's securities
are publicly traded; or
(2) the company or its parent company is listed on a
public stock exchange as a Chinese, Iranian, North Korean, or
Russian company.
Sec. 2278.003. ASSISTANCE BY ECONOMIC INCENTIVE OVERSIGHT
BOARD. On request, the Economic Incentive Oversight Board
established under Chapter 490G shall, not later than the 60th
business day after the request, provide a governmental entity with
information to identify companies that may be prohibited from
contracting with a governmental entity under Section 2278.002.
SECTION 2. The change in law made by this Act applies only
to a contract entered into on or after the effective date of this
Act. A contract entered into before the effective date of this Act
is governed by the law in effect on the date the contract was
entered into, and the former law is continued in effect for that
purpose.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.