89R15436 CJD-D     By: Tinderholt H.B. No. 4935       A BILL TO BE ENTITLED   AN ACT   relating to limitations on certain hiring practices relating to   certain nonpermanent residents by certain companies that receive   governmental contracts or financial benefits; authorizing civil   penalties.          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.  CERTAIN LIMITATIONS ON HIRING PRACTICES REGARDING   CERTAIN NONPERMANENT RESIDENTS   SUBCHAPTER A.  GENERAL PROVISIONS          Sec. 2278.001.  DEFINITIONS. In this chapter:                (1)  "Company" has the meaning assigned by Section   808.001.                (2)  "Governmental entity" has the meaning assigned by   Section 2251.001.                (3)  "Listed financial benefit" means a financial   benefit listed by rule adopted under Section 2278.051(2).                (4)  "Nonpermanent resident" means an individual who is   a nonpermanent resident of the United States who holds an unexpired   visa issued by the federal government in Category F (student), H-1B   (temporary worker in a specialty occupation), or O (foreign   national with extraordinary ability in sciences, arts, education,   business, or athletics).                (5)  "Tax preference" means a credit, discount,   exclusion, exemption, refund, special valuation, special   accounting treatment, special rate, or special method of reporting   authorized by state law that relates to a state or local tax imposed   in this state.   SUBCHAPTER B.  LIMITATION ON CERTAIN HIRING PRACTICES          Sec. 2278.051.  LISTED FINANCIAL BENEFITS. The comptroller   shall:                (1)  identify each financial benefit, other than a   contract, offered by a governmental entity to a company that is   organized or doing business in this state, including a grant,   low-interest loan, tax preference, or other financial incentive;   and                (2)  by rule adopt a list of each financial benefit   identified under Subdivision (1).          Sec. 2278.052.  LIMITATION ON CERTAIN HIRING PRACTICES. A   company that receives a listed financial benefit may not hire a   nonpermanent resident if hiring the nonpermanent resident would   result in more than five percent of the total amount of the   company's employees being nonpermanent residents.          Sec. 2278.053.  PROVISION REQUIRED IN CONTRACT.  A   governmental entity and a company may not enter into a contract for   goods or services unless the contract contains a written   verification from the company that:                (1)  not more than five percent of the total amount of   the company's employees are nonpermanent residents; and                (2)  during the term of the contract, the company will   not hire a nonpermanent resident if hiring the nonpermanent   resident will result in more than five percent of the total amount   of the company's employees being nonpermanent residents.   SUBCHAPTER C.  ENFORCEMENT          Sec. 2278.101.  CIVIL PENALTY FOR VIOLATION BY COMPANY. (a)   A company that violates Section 2278.052 or enters into a contract   that violates Section 2278.053 is liable to this state for a civil   penalty in the amount of $5,000 for each violation. Each day a   violation of Section 2278.052 continues is considered a separate   violation for purposes of this subsection.          (b)  A resident of this state may file a complaint with the   attorney general alleging that a company is in violation of Section   2278.052 or has violated a provision required to be included in a   contract with a governmental entity under Section 2278.053. The   resident must include with the complaint a signed statement   describing the violation.          (c)  If, based on an investigation, the attorney general   determines the company has violated Section 2278.052 or has   violated a provision required to be included in a contract with a   governmental entity under Section 2278.053, the attorney general   shall provide the company with a written notice that:                (1)  describes the violation;                (2)  states the amount of the proposed civil penalty   for the violation; and                (3)  requires the company to cure the violation on or   before the seventh day after the date the notice is received to   avoid the civil penalty.          (d)  If a company does not cure the violation on or before the   seventh day after the date notice under Subsection (c) is received,   the attorney general may sue to collect the civil penalty.          (e)  The attorney general may recover reasonable expenses   incurred in obtaining relief under this section, including court   costs, reasonable attorney's fees, investigative costs, witness   fees, and deposition costs.          Sec. 2278.102.  LIABILITY TO GOVERNMENTAL ENTITY;   ADDITIONAL CIVIL PENALTY.  (a)  In addition to any other remedy   provided by this chapter, a company that violates Section 2278.052   and does not cure the violation in the manner provided by Section   2278.101 is liable to a governmental entity from which the company   received a listed financial benefit for a civil penalty in an amount   equal to twice the amount of all listed financial benefits the   company received from the governmental entity.          (b)  In addition to any other remedy provided by this   chapter, a company that violates a provision required to be   included in a contract with a governmental entity under Section   2278.053 and does not cure the violation in the manner provided by   Section 2278.101 is liable to the governmental entity for a civil   penalty in an amount equal to twice the amount of the contract.          (c)  The attorney general or a district attorney or county   attorney, as appropriate, may bring an action to recover a civil   penalty imposed under this section.  The attorney general, district   attorney, or county attorney may recover reasonable attorney's fees   and court costs in bringing an action under this section.          Sec. 2278.103.  REPORTING. A company shall annually submit   to the comptroller, in a form and manner determined by the   comptroller, a report detailing the percentage amount of the   company's employees that are nonpermanent residents.          SECTION 2.  The comptroller of public accounts shall adopt   the list described by Section 2278.051, Government Code, as added   by this Act, not later than January 1, 2026.          SECTION 3.  Section 2278.053, Government Code, as added by   this Act, applies only to a contract for which a governmental entity   first advertises or otherwise solicits bids, proposals, offers, or   qualifications or makes a similar solicitation on or after the   effective date of this Act.  A contract for which a governmental   entity first advertises or otherwise solicits bids, proposals,   offers, or qualifications or makes a similar solicitation before   that date is governed by the law in effect on the date the   advertisement or solicitation is made, and the former law is   continued in effect for that purpose.          SECTION 4.  This Act takes effect September 1, 2025.