| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to restrictions on tax and fee benefits for certain |
|
|
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 2270 to read as follows: |
|
|
CHAPTER 2270. RESTRICTIONS ON TAX AND FEE BENEFITS TO ENTITIES THAT |
|
|
OUTSOURCE JOBS TO FOREIGN COUNTRIES |
|
|
Sec. 2270.001. DEFINITIONS. In this chapter: |
|
|
(1) "Domestic" means created or organized in the |
|
|
United States or under the laws of the United States or any state. |
|
|
(2) "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. 2270.002. APPLICABILITY OF CHAPTER. This chapter does |
|
|
not apply to a credit, exemption, or discount for which the Texas |
|
|
Constitution specifically prescribes the eligibility requirements. |
|
|
Sec. 2270.003. 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 this 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. 2270.004. 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 this state shall adopt rules |
|
|
relating to the manner in which: |
|
|
(1) the agency will determine whether to deny the |
|
|
benefit under Section 2270.003 or 2270.005; 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 2270.003 or 2270.005 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. |
|
|
Sec. 2270.005. REPORTING. (a) In addition to the standard |
|
|
imposed by Section 2270.003, a domestic private entity that applies |
|
|
for a credit, exemption, or discount in relation to a tax or fee |
|
|
imposed by this state is not eligible for the credit, exemption, or |
|
|
discount unless, during the six-month period before applying for |
|
|
the credit, exemption, or discount, the entity reports to the Texas |
|
|
Workforce Commission on the number of jobs the entity created in |
|
|
this state and the number of jobs suitable for performance in the |
|
|
United States that the entity created in a country other than the |
|
|
United States during the 12-month period before the date of the |
|
|
report. |
|
|
(b) Not later than December 31 of each year, the Texas |
|
|
Workforce Commission shall, based on information obtained from the |
|
|
reports under Subsection (a), report to the governor, the |
|
|
lieutenant governor, and the speaker of the house of |
|
|
representatives the domestic private entities that are not eligible |
|
|
for a credit, exemption, or discount under Section 2270.003. |
|
|
SECTION 2. Chapter 2270, Government Code, as added by this |
|
|
Act, applies only to a credit, exemption, or discount provided or |
|
|
denied on or after September 1, 2018, in relation to a tax or fee |
|
|
imposed by this state. |
|
|
SECTION 3. This Act takes effect September 1, 2017. |