Tinderholt Bill Caps Visa Workers At 5% Of Staff

The text as introduced · 1,041 words

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.