The state will harshly penalize companies that outsource; won't allow state investments in those companies
(read today's Austin American-Statesman on this bill)
Well, if HB 817 passes. It's been filed by Yvonne Davis (D-Dallas) in an attempt to curb state involvement in companies that outsource jobs to overseas countries. The specific language:
A state governmental entity may not invest state funds in or purchase obligations of a domestic private entity (any private U.S. company) that, 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.
This would also repeal provisions for tax abatements and other benefits that apply to private companies if they outsource jobs. We're talking big buckeroos here.
This bill is interesting because so many companies get money from the state through the corporate slush fund, the Texas Enterprise Fund. But what's also interesting is the effects this bill would have on other lesser-known-but-still-important state funds, like the Teacher Retirement System of Texas, the Texas Growth Fund, and those managed by the University of Texas Investment Management Company - all of which have stirred some controversy in the past year. Combined, these funds are worth billions and billions of dollars and invest several million dollars in hundreds of companies.
So, in a nutshell, I doubt this bill is going anywhere as unfortunate as that is. If it wasn't as far-reaching, it might stand some sort of chance since outsourcing jobs shouldn't be ignored by lawmakers. But wait, no, we're in Texas. Nevermind.