House Bill No. 4935 introduces new regulations regarding hiring practices for companies that receive governmental contracts or financial benefits in Texas. It establishes Chapter 2278 in the Government Code, which includes definitions and provisions related to "nonpermanent residents," defined as individuals holding specific types of visas. The bill prohibits companies that receive listed financial benefits from hiring nonpermanent residents if such hiring would result in more than five percent of their total employees being nonpermanent residents. Additionally, contracts between governmental entities and companies must include verification that the hiring practices comply with this limitation.

The bill also outlines enforcement mechanisms, including civil penalties for violations. Companies that breach the hiring limitations or contract provisions may face a civil penalty of $5,000 for each violation, with each day of non-compliance considered a separate violation. Furthermore, if a company fails to rectify a violation after being notified, they may be liable for penalties equal to twice the amount of the financial benefits received or the contract amount. The comptroller is tasked with adopting a list of financial benefits by January 1, 2026, and the act is set to take effect on September 1, 2025.

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