Bill Text: TX SB2484 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to prohibiting contracts or other agreements involving the receipt of certain tax incentives by certain foreign-owned companies.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-23 - Referred to Natural Resources & Economic Development [SB2484 Detail]
Download: Texas-2023-SB2484-Introduced.html
| By: Paxton | S.B. No. 2484 | |
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| relating to prohibiting contracts or other agreements involving the | ||
| receipt of certain tax incentives by certain foreign-owned | ||
| companies. | ||
| 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. PROHIBITION ON CONTRACTS INVOLVING RECEIPT OF TAX | ||
| INCENTIVES BY CERTAIN FOREIGN-OWNED COMPANIES | ||
| Sec. 2278.001. DEFINITIONS. In this chapter: | ||
| (1) "Company" means a sole proprietorship, | ||
| organization, association, corporation, partnership, joint | ||
| venture, limited partnership, limited liability partnership, or | ||
| limited liability company, including a wholly owned subsidiary, | ||
| majority-owned subsidiary, parent company, or affiliate of those | ||
| entities or business associations, that exists to make a profit. | ||
| (2) "Governmental entity" means a state agency or | ||
| political subdivision of this state. | ||
| (3) "Tax incentive" has the meaning assigned by | ||
| Section 490G.001. | ||
| Sec. 2278.002. PROHIBITED CONTRACTS. (a) A governmental | ||
| entity may not enter into a contract or other agreement relating to | ||
| tax incentives in this state with a company if: | ||
| (1) under the contract or other agreement, the company | ||
| would receive or be granted tax incentives from the governmental | ||
| entity; and | ||
| (2) the governmental entity knows that the company is: | ||
| (A) owned by or the majority of stock or other | ||
| ownership interest of the company is held or controlled by a company | ||
| or other entity, including a governmental entity, that is directly | ||
| controlled by the government of China, Iran, North Korea, or | ||
| Russia; or | ||
| (B) headquartered in China, Iran, North Korea, or | ||
| Russia. | ||
| (b) The prohibition described by Subsection (a) applies | ||
| regardless of whether: | ||
| (1) the company's or its parent company's securities | ||
| are publicly traded; or | ||
| (2) the company or its parent company is listed on a | ||
| public stock exchange as a Chinese, Iranian, North Korean, or | ||
| Russian company. | ||
| Sec. 2278.003. ASSISTANCE BY ECONOMIC INCENTIVE OVERSIGHT | ||
| BOARD. On request, the Economic Incentive Oversight Board | ||
| established under Chapter 490G shall, not later than the 60th | ||
| business day after the request, provide a governmental entity with | ||
| information to identify companies that may be prohibited from | ||
| contracting with a governmental entity under Section 2278.002. | ||
| SECTION 2. The change in law made by this Act applies only | ||
| to a contract entered into on or after the effective date of this | ||
| Act. A contract entered into before the effective date of this Act | ||
| is governed by the law in effect on the date the contract was | ||
| entered into, and the former law is continued in effect for that | ||
| purpose. | ||
| SECTION 3. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2023. | ||
