RESTRICTIONS ON USE OF CERTAIN PUBLIC SUBSIDIES

Tex. GOV'T Code ch. 2264

in effect

Tex. GOV'T Code § 2264.001. DEFINITIONS.

In this chapter: (1) "Economic development corporation" means a development corporation organized under Subtitle C1, Title 12, Local Government Code. (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. Added by Acts 2007, 80th Leg., R.S., Ch. 853 (H.B. 1196 ), Sec. 1, eff. September 1, 2007. Acts 2009, 81st Leg., R.S., Ch. 87 (S.B. 1969 ), Sec. 11.023, eff. September 1, 2009. SUBCHAPTER B. RESTRICTIONS ON USE OF CERTAIN PUBLIC SUBSIDIES TO EMPLOY UNDOCUMENTED WORKERS

Tex. GOV'T Code § 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. Added by Acts 2007, 80th Leg., R.S., Ch. 853 (H.B. 1196 ), Sec. 1, eff. September 1, 2007.

Tex. GOV'T Code § 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. Added by Acts 2007, 80th Leg., R.S., Ch. 853 (H.B. 1196 ), Sec. 1, eff. September 1, 2007.

Tex. GOV'T Code § 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. Added by Acts 2007, 80th Leg., R.S., Ch. 853 (H.B. 1196 ), Sec. 1, eff. September 1, 2007. SUBCHAPTER C. ENFORCEMENT

Tex. GOV'T Code § 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. Added by Acts 2007, 80th Leg., R.S., Ch. 853 (H.B. 1196 ), Sec. 1, eff. September 1, 2007.

Source: TX Statutes (Official Site)URL: https://statutes.capitol.texas.gov/Fetched: 6/29/2026