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A BILL TO BE ENTITLED
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AN ACT
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relating to employment restrictions on persons awarded certain |
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government contracts or public subsidies; providing a civil |
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penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The legislature finds that: |
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(1) public agencies procure services in part through |
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contracts with vendors; |
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(2) increasingly, vendors carry out, subcontract, or |
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otherwise procure these services from a location outside the United |
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States; |
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(3) international outsourcing exacerbates |
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unemployment and workforce dislocation and deprives Texas |
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residents of job opportunities, including industries and jobs this |
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state has expended public subsidies to attract; |
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(4) international outsourcing erodes state and local |
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revenues by drawing jobs and income away from the state; and |
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(5) international outsourcing may provide less |
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privacy protection for state residents whose personal information |
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may, in the course of service delivery, be transmitted to locations |
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outside the United States. |
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SECTION 2. Subtitle F, Title 10, Government Code, is |
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amended by adding Chapter 2267 to read as follows: |
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CHAPTER 2267. REQUIREMENTS FOR CERTAIN CONTRACTS AND PUBLIC |
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SUBSIDIES; OUTSOURCING PROHIBITIONS |
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Sec. 2267.001. DEFINITIONS. In this chapter: |
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(1) "Public agency" means the state or an agency, |
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instrumentality, or political subdivision of this state, including |
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a county, municipality, public school district, or special-purpose |
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district or authority. |
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(2) "Public subsidy" means a public program or public |
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benefit or assistance of any type that is designed to stimulate the |
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economic development of a corporation, industry, or sector of the |
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state's economy or to create or retain jobs in this state. The term |
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includes grants, loans, loan guarantees, benefits relating to an |
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enterprise or empowerment zone, fee waivers, land price subsidies, |
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infrastructure development and improvements designed to |
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principally benefit a single business or defined group of |
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businesses, matching funds, tax refunds, tax rebates, or tax |
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abatements. |
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Sec. 2267.002. CONDITION FOR CONTRACT OR PUBLIC SUBSIDY. |
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(a) Except as provided by Section 2267.005(a), a public agency may |
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not award a contract to a vendor, bidder, contractor, or |
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subcontractor that will perform the work related to the contract |
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with workers located outside the United States. |
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(b) Except as provided by Section 2267.005(b), a public |
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agency may not award or provide a public subsidy to an applicant |
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that will perform any work related to the subsidy with workers |
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located outside the United States. |
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Sec. 2267.003. ELIGIBILITY FOR CONTRACTS AND PUBLIC |
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SUBSIDIES. (a) In addition to any other eligibility requirements a |
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vendor, bidder, contractor, or subcontractor must satisfy before |
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submitting a bid or contract with a public agency, the vendor, |
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bidder, contractor, or subcontractor must agree in writing to: |
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(1) perform the services covered by the bid or |
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contract with workers located in the United States; and |
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(2) repay the public agency the amount paid to workers |
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outside of the United States to perform work under the contract in |
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violation of Section 2267.004(a). |
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(b) In addition to any other eligibility requirements a |
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public subsidy applicant must satisfy before receiving a public |
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subsidy, the applicant must agree in writing to: |
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(1) perform any services covered by the subsidy with |
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workers located in the United States; and |
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(2) repay the public agency the amount of the subsidy |
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used to pay workers outside of the United States in violation of |
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Section 2267.004(b). |
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Sec. 2267.004. OUTSOURCING PROHIBITED. (a) Except as |
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provided by Section 2267.005(a), the vendor, contractor, or |
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subcontractor may not employ workers located outside the United |
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States to perform services under a contract with a public agency. |
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(b) Except as provided by Section 2267.005(b), a recipient |
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of a public subsidy may not employ workers located outside the |
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United States with funds from a public subsidy. |
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Sec. 2267.005. WAIVERS. (a) A public agency may waive the |
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requirements of Section 2267.002(a), 2267.003(a), or 2267.004(a) |
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for a period not to exceed six months for a contract or a bid for a |
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contract if: |
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(1) the agency submits a written finding to the state |
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auditor's office that: |
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(A) the agency determines a contract is necessary |
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to respond to an emergency because: |
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(i) the agency's ability to provide |
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essential services would be adversely affected if the contract is |
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not performed; |
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(ii) public health and safety is threatened |
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if the contract is not performed; and |
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(iii) a vendor, bidder, contractor, or |
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subcontractor that can perform the work related to the contract |
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with workers located in the United States is not immediately |
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available to perform the services; or |
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(B) the agency determines that: |
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(i) the work related to the contract is |
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mandatory; and |
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(ii) workers located in the United States |
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cannot adequately perform the unique work related to the contract; |
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and |
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(2) the state auditor's office determines the finding |
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submitted under Subdivision (1) to be valid. |
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(b) A public agency may waive the requirements of Section |
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2267.002(b), 2267.003(b), or 2267.004(b) for a period not to exceed |
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six months for a public subsidy if: |
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(1) the agency submits a written finding to the state |
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auditor's office that: |
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(A) the agency determines a public subsidy is |
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necessary to respond to an emergency because: |
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(i) the agency's ability to provide |
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essential services would be adversely affected if the public |
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subsidy is not awarded; and |
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(ii) workers located in the United States |
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are not immediately available to perform the work related to the |
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subsidy; or |
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(B) the agency determines that: |
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(i) the work related to the public subsidy |
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is mandatory; and |
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(ii) workers located in the United States |
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cannot adequately perform the unique work related to the public |
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subsidy; and |
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(2) the state auditor's office determines the finding |
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submitted under Subdivision (1) to be valid. |
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Sec. 2267.006. TERMINATION OF CONTRACT; REPAYMENT OF |
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SUBSIDY. (a) If a vendor, contractor, or subcontractor violates |
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Section 2267.004(a): |
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(1) the vendor, contractor, or subcontractor shall |
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repay to the public agency that is a party to the contract the |
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amount used to pay workers outside of the United States to perform |
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services under the contract; and |
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(2) the public agency that is a party to the contract: |
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(A) shall terminate the contract for |
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noncompliance; and |
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(B) may not enter into a contract with the |
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vendor, contractor, or subcontractor before the fifth anniversary |
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after the date of termination of the contract. |
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(b) If a public subsidy recipient violates Section |
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2267.004(b): |
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(1) the recipient shall repay the public agency that |
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awarded the subsidy the amount of the subsidy used to pay workers |
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outside of the United States; and |
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(2) the public agency that awarded the public subsidy |
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may not award a public subsidy to the recipient before the fifth |
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anniversary after the date the recipient repays the subsidy. |
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Sec. 2267.007. ATTORNEY'S FEES AND COSTS. A public agency |
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may bring a civil action to recover damages in a district court. If |
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the public agency prevails in the civil action, the court shall |
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award reasonable attorney's fees and costs to the agency. |
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SECTION 3. Chapter 2267, Government Code, as added by this |
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Act, applies only to a bid for a contract submitted or an |
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application for a public subsidy filed on or after the effective |
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date of this Act. A bid for a contract submitted or an application |
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filed before the effective date of this Act is governed by the law |
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in effect on the date the bid was submitted or the application was |
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filed, and that law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2011. |