Texas 2025 - 89th Regular

Texas House Bill HB4921 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1		By: Y. Davis of Dallas H.B. No. 4921
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to restrictions on the use of state funds to benefit
7	9		private entities that outsource jobs to foreign countries.
8	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	11		SECTION 1. Subtitle F, Title 10, Government Code, is
10	12		amended by adding Chapter 2278 to read as follows:
11	13		CHAPTER 2278. RESTRICTING STATE INVESTMENT IN AND PROVISION OF TAX
12	14		BENEFITS TO ENTITIES THAT OUTSOURCE JOBS TO FOREIGN COUNTRIES
13	15		SUBCHAPTER A. GENERAL PROVISIONS
14	16		Sec. 2278.001. DEFINITION. In this chapter, "domestic"
15	17		means created or organized in the United States or under the laws of
16	18		the United States or any state.
17	19		[Sections 2278.002-2278.050 reserved for expansion]
18	20		SUBCHAPTER B. RESTRICTIONS ON INVESTMENTS
19	21		Sec. 2278.051. APPLICABILITY OF SUBCHAPTER. (a) This
20	22		subchapter applies in connection with the management or investment
21	23		of state funds managed or invested:
22	24		(1) under the Texas Constitution or other law,
23	25		including Chapters 404 and 2256; and
24	26		(2) by or for:
25	27		(A) a public retirement system as defined by
26	28		Section 802.001 that provides service retirement, disability
27	29		retirement, or death benefits for officers or employees of the
28	30		state;
29	31		(B) an institution of higher education as defined
30	32		by Section 61.003, Education Code; or
31	33		(C) another entity that is part of state
32	34		government and that manages or invests state funds or for which
33	35		state funds are managed or invested.
34	36		(b) This subchapter applies in connection with the management or
35	37		investment of state funds without regard to whether the funds are
36	38		held in the state treasury.
37	39		(c) This subchapter does not apply to the extent that an
38	40		investment standard prescribed by the Texas Constitution prohibits
39	41		the legislature from restricting the investment discretion of an
40	42		entity responsible for the management or investment of a fund.
41	43		Sec. 2278.052. PROHIBITION ON CERTAIN INVESTMENTS. A state
42	44		governmental entity may not invest state funds in or purchase
43	45		obligations of a domestic private entity that, at any time during
44	46		the previous two years, created employment suitable for performance
45	47		in the United States in a country other than the United States and,
46	48		as a result, eliminated or failed to create similar employment in
47	49		the United States.
48	50		[Sections 2264.053-2264.100 reserved for expansion]
49	51		SUBCHAPTER C. RESTRICTIONS ON ELIGIBILITY FOR TAX AND FEE BENEFITS
50	52		Sec. 2278.101. DEFINITION. In this subchapter, "state
51	53		agency" means a department, board, commission, or other agency in
52	54		the executive branch of state government. The term does not include
53	55		an institution of higher education as defined by Section 61.003,
54	56		Education Code.
55	57		Sec. 2278.102. APPLICABILITY OF SUBCHAPTER. This
56	58		subchapter does not apply to a credit, exemption, or discount for
57	59		which the Texas Constitution specifically prescribes the
58	60		eligibility requirements.
59	61		Sec. 2278.103. INELIGIBILITY OF CERTAIN ENTITIES FOR TAX
60	62		AND FEE BENEFITS. Notwithstanding other law, a domestic private
61	63		entity is not eligible for a credit, exemption, or discount in
62	64		relation to a tax or fee imposed by the state if the entity, at any
63	65		time during the previous two years, created employment suitable for
64	66		performance in the United States in a country other than the United
65	67		States and, as a result, eliminated or failed to create similar
66	68		employment in the United States.
67	69		Sec. 2278.104. DENIAL OF BENEFITS. (a) A state agency
68	70		responsible for the issuance of a credit, exemption, or discount in
69	71		relation to a tax or fee imposed by the state shall adopt rules in
70	72		accordance with Subchapter B, Chapter 2001, relating to the manner
71	73		in which:
72	74		(1) the agency will determine whether to deny the
73	75		benefit under Section 2264.103; and
74	76		(2) a person may ask the agency to reconsider the
75	77		denial.
76	78		(b) The rules adopted by a state agency shall require that as soon
77	79		as practicable after making the decision to deny a credit,
78	80		exemption, or discount to a domestic private entity that is
79	81		ineligible for the benefit under Section 2264.103 but is otherwise
80	82		eligible for the benefit, the state agency shall provide the
81	83		domestic private entity with notice of and the factual basis for the
82	84		denial and a description of the procedures available to request a
83	85		reconsideration and to contest the factual or legal basis for the
84	86		denial.
85	87		SECTION 2. Chapter 2278, Government Code, as added by this
86	88		Act, applies only to:
87	89		(1) an investment made by a state governmental entity on or
88	90		after September 1, 2026; and
89	91		(2) a credit, exemption, or discount provided or denied on
90	92		or after September 1, 2026, in relation to a tax or fee imposed by
91	93		the state.
92	94		SECTION 3. This Act takes effect September 1, 2025.