H.B. No. 1196
 
 
 
 
AN ACT
  relating to restrictions on the use of certain public subsidies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle F, Title 10, Government Code, is
  amended by adding Chapter 2264 to read as follows:
  CHAPTER 2264. RESTRICTIONS ON USE OF CERTAIN PUBLIC
  SUBSIDIES
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 2264.001.  DEFINITIONS. In this chapter:
               (1)  "Economic development corporation" means a
  development corporation organized under the Development
  Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
  Statutes).
               (2)  "Public agency" means the state or an agency,
  instrumentality, or political subdivision of this state, including
  a county, a municipality, a public school district, or a
  special-purpose district or authority.
               (3)  "Public subsidy" means a public program or public
  benefit or assistance of any type that is designed to stimulate the
  economic development of a corporation, industry, or sector of the
  state's economy or to create or retain jobs in this state. The term
  includes grants, loans, loan guarantees, benefits relating to an
  enterprise or empowerment zone, fee waivers, land price subsidies,
  infrastructure development and improvements designed to
  principally benefit a single business or defined group of
  businesses, matching funds, tax refunds, tax rebates, or tax
  abatements.
               (4)  "Undocumented worker" means an individual who, at
  the time of employment, is not:
                     (A)  lawfully admitted for permanent residence to
  the United States; or
                     (B)  authorized under law to be employed in that
  manner in the United States.
  [Sections 2264.002-2264.050 reserved for expansion]
  SUBCHAPTER B. RESTRICTIONS ON USE OF CERTAIN
  PUBLIC SUBSIDIES TO EMPLOY UNDOCUMENTED WORKERS
         Sec. 2264.051.  STATEMENT REQUIRED IN APPLICATION FOR PUBLIC
  SUBSIDIES. A public agency, state or local taxing jurisdiction, or
  economic development corporation shall require a business that
  submits an application to receive a public subsidy to include in the
  application a statement certifying that the business, or a branch,
  division, or department of the business, does not and will not
  knowingly employ an undocumented worker.
         Sec. 2264.052.  CONDITION ON RECEIPT OF PUBLIC SUBSIDIES.
  The statement required by Section 2264.051 must state that if,
  after receiving a public subsidy, the business, or a branch,
  division, or department of the business, is convicted of a
  violation under 8 U.S.C. Section 1324a(f), the business shall repay
  the amount of the public subsidy with interest, at the rate and
  according to the other terms provided by an agreement under Section
  2264.053, not later than the 120th day after the date the public
  agency, state or local taxing jurisdiction, or economic development
  corporation notifies the business of the violation.
         Sec. 2264.053.  AGREEMENT REGARDING REPAYMENT OF INTEREST.
  A public agency, state or local taxing jurisdiction, or economic
  development corporation, before awarding a public subsidy to a
  business, shall enter into a written agreement with the business
  specifying the rate and terms of the payment of interest if the
  business is required to repay the public subsidy.
  [Sections 2264.054-2264.100 reserved for expansion]
  SUBCHAPTER C. ENFORCEMENT
         Sec. 2264.101.  RECOVERY. (a) A public agency, local taxing
  jurisdiction, or economic development corporation, or the attorney
  general on behalf of the state or a state agency, may bring a civil
  action to recover any amounts owed to the public agency, state or
  local taxing jurisdiction, or economic development corporation
  under this chapter.
         (b)  The public agency, local taxing jurisdiction, economic
  development corporation, or attorney general, as applicable, shall
  recover court costs and reasonable attorney's fees incurred in an
  action brought under Subsection (a).
         (c)  A business is not liable for a violation of this chapter
  by a subsidiary, affiliate, or franchisee of the business, or by a
  person with whom the business contracts.
         SECTION 2.  The change in law made by this Act applies only
  to a public subsidy provided by an economic development
  corporation, a taxing jurisdiction, or a public agency in response
  to an application for the subsidy that is received on or after the
  effective date of this Act. A public subsidy provided in response
  to an application received before the effective date of this Act is
  governed by the law as it existed on the date the application was
  received, and the prior law is continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1196 was passed by the House on April
  25, 2007, by the following vote:  Yeas 135, Nays 4, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 1196 on May 25, 2007, by the following vote:  Yeas 137, Nays 0,
  1 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1196 was passed by the Senate, with
  amendments, on May 23, 2007, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor