HB4921 - Relating to restrictions on the use of state funds to benefit private entities that outsource jobs to foreign countries.

      By: Y. Davis of Dallas H.B. No. 4921       A BILL TO BE ENTITLED   AN ACT   relating to restrictions on the use of state funds to benefit   private entities that outsource jobs to foreign countries.          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. RESTRICTING STATE INVESTMENT IN AND PROVISION OF TAX   BENEFITS TO ENTITIES THAT OUTSOURCE JOBS TO FOREIGN COUNTRIES   SUBCHAPTER A. GENERAL PROVISIONS           Sec.   2278.001.     DEFINITION. In this chapter, "domestic"   means created or organized in the United States or under the laws of   the United States or any state.   [Sections 2278.002-2278.050 reserved for expansion]   SUBCHAPTER B. RESTRICTIONS ON INVESTMENTS           Sec.   2278.051.     APPLICABILITY OF SUBCHAPTER. (a) This   subchapter applies in connection with the management or investment   of state funds managed or invested:                 (1)     under the Texas Constitution or other law,   including Chapters 404 and 2256; and                 (2)  by or for:                       (A)     a public retirement system as defined by   Section 802.001 that provides service retirement, disability   retirement, or death benefits for officers or employees of the   state;                       (B)     an institution of higher education as defined   by Section 61.003, Education Code; or                       (C)     another entity that is part of state   government and that manages or invests state funds or for which   state funds are managed or invested.   (b)     This subchapter applies in connection with the management or   investment of state funds without regard to whether the funds are   held in the state treasury.   (c)     This subchapter does not apply to the extent that an   investment standard prescribed by the Texas Constitution prohibits   the legislature from restricting the investment discretion of an   entity responsible for the management or investment of a fund.           Sec.   2278.052.     PROHIBITION ON CERTAIN INVESTMENTS. A state   governmental entity may not invest state funds in or purchase   obligations of a domestic private entity that, at any time during   the previous two years, created employment suitable for performance   in the United States in a country other than the United States and,   as a result, eliminated or failed to create similar employment in   the United States.   [Sections 2264.053-2264.100 reserved for expansion]   SUBCHAPTER C. RESTRICTIONS ON ELIGIBILITY FOR TAX AND FEE BENEFITS           Sec.   2278.101.     DEFINITION. In this subchapter, "state   agency" means a department, board, commission, or other agency in   the executive branch of state government. The term does not include   an institution of higher education as defined by Section 61.003,   Education Code.           Sec.   2278.102.     APPLICABILITY OF SUBCHAPTER. This   subchapter does not apply to a credit, exemption, or discount for   which the Texas Constitution specifically prescribes the   eligibility requirements.           Sec.   2278.103.     INELIGIBILITY OF CERTAIN ENTITIES FOR TAX   AND FEE BENEFITS. Notwithstanding other law, a domestic private   entity is not eligible for a credit, exemption, or discount in   relation to a tax or fee imposed by the state if the entity, at any   time during the previous two years, created employment suitable for   performance in the United States in a country other than the United   States and, as a result, eliminated or failed to create similar   employment in the United States.           Sec.   2278.104.     DENIAL OF BENEFITS. (a) A state agency   responsible for the issuance of a credit, exemption, or discount in   relation to a tax or fee imposed by the state shall adopt rules in   accordance with Subchapter B, Chapter 2001, relating to the manner   in which:                 (1)     the agency will determine whether to deny the   benefit under Section 2264.103; and                 (2)     a person may ask the agency to reconsider the   denial.   (b)     The rules adopted by a state agency shall require that as soon   as practicable after making the decision to deny a credit,   exemption, or discount to a domestic private entity that is   ineligible for the benefit under Section 2264.103 but is otherwise   eligible for the benefit, the state agency shall provide the   domestic private entity with notice of and the factual basis for the   denial and a description of the procedures available to request a   reconsideration and to contest the factual or legal basis for the   denial.          SECTION 2.  Chapter 2278, Government Code, as added by this   Act, applies only to:          (1)  an investment made by a state governmental entity on or   after September 1, 2026; and          (2)  a credit, exemption, or discount provided or denied on   or after September 1, 2026, in relation to a tax or fee imposed by   the state.          SECTION 3.  This Act takes effect September 1, 2025.