HB 4935

relating to limitations on certain hiring practices relating to
certain nonpermanent residents by certain companies that receive
governmental contracts or financial benefits; authorizing civil
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
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 2278.001.  DEFINITIONS.  In this chapter:
(1)  "Company" has the meaning assigned by Section
(2)  "Governmental entity" has the meaning assigned by
(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,
(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
SUBCHAPTER B.  LIMITATION ON CERTAIN HIRING PRACTICES
Sec. 2278.051.  LISTED FINANCIAL BENEFITS.  The comptroller
(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;
(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.
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
(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:
(2)  states the amount of the proposed civil penalty
(3)  requires the company to cure the violation on or
before the seventh day after the date the notice is received to
(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
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.