HomeMy WebLinkAboutPR 14775: EDC/USE OF UNDOCUMENTED WORKERSinteroffice
MEMORANDUM
To: Mayor, City Council, and City Manager C
From: Valecia R. Tizeno, First Assistant City Attorne
Date: June 13, 2008
Subject: P. R. No. 14775; Council Meeting June 17, 2008
Attached is P. R. No. 14775 as it pertains to the City of Port
Arthur Section 4A Economic Development Corporation and restrictions
as to the use of undocumented workers.
VRT:gt
Attachment
z.pr14775_memo
P. R. No. 14775
06/10/08 gt
RESOLIITION N0.
A RESOLIITION AS IT PERTAINS TO THE CITY OF
PORT ARTHIIR SECTION 4A ECONOMIC DEVELOPMENT
CORPORATION AND RESTRICTIONS AS TO THE IISE OF
IINDOCIIMENTED WORKERS
WHEREAS, Germer Gertz has issued the letter attached as
~;
Exhibit "A" as it pertains to restrictions on employment of
undocumented workers; and
WHEREAS, the City Council approves the supplements in
substantially the same form as attached hereto as Exhibit "B" to be
signed by the Incentive recipients.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COIINCIL OF THE. CITY
OF PORT ARTHIIR:
Section 1. That the facts and opinions in the preamble are
true and correct.
Section 2. That the supplements are herein approved in
substantially the same form as Exhibit `B" as to address the
requirements of Chapter 2264 of the Government Code.
Section 3. That a copy of the caption of this Resolution
be spread upon the Minutes of the Corporation.
READ, ADOPTED AND APPROVED on this day of
A.D., 2008, at a Meeting of the City Council of
the City of Port Arthur, by the following voter AYES:
z.pr14775
Mayor
NOES:
Mayor
ATTEST:
TERRI HANKS, ACTING CITY SECRETARY
APPROVED AS TO/FORM:
CITY ATTO Y ~~~
APPROVED:
CEO OF EDC
z.pz14775
EXHIBIT ~~A"
GERME~ERTZ ~.L.~
June 5,.2008
Mr. Floyd Batiste
City of Port Arthur EDC
P.O. Box 3934
Port Arthur, Texas 77642
AUSTIN BEAUMONT HOUSTON
www.germer.com
GUY N. GOODSON
Partner
Direct Dial: (409) 654-6730
ggoodsonC~4g ermer.com
Re: City of Port Arthur Section 4A Economic Development Corporation (the "PAEDC") -
Condition on Receipt of Public Subsidies
Deaz Floyd:
Please find attached recently enacted Chapter 2264 of the Texas Government Code
entitled: Chapter 2264. Restrictions on Use of Certain Public Subsidies. The intent of this new
chapter is to help address the issue of employment of "undocumented workers". As you will see
from the attached, an economic development corporation shall require any 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 any undocumented worker. .This also must include a statement that after
receiving the subsidy, the business shall be subject to repaying the amount of the public subsidy
with interest, at a rate otherwise specified within the 120'" day after the date an economic
development corporation notifies the business of a violation. The recipient and the PAEDC must
place in their agreement a statement that the business will make the repayment if required to do
so after discovery of a violation. This became effective September 1, 2007.
As you are aware, we came back involved with the PAEDC later in the fall; however,
based upon my discussions with Brenda Vaughn of your office, it appears that the incentives that
would be impacted by this would be Lamar State College-Port Arthur, Team Fabricators, LLC,
Orbital Insulation Corp., Digital Workforce Academy, Camellia PL1za, L.P. and the pending
project with ENGlobal.
I would propose that you ask the fast four entities to execute a First Supplement to the
Economic Incentive Contract and Loan Agreement between each of them and the PAEDC. I
have included a draft for your consideration.
P.O.80X 4915 • flEAUMONT, TX 77704 • PHONE 409b54.6700 • FAX :409.835.2115'
Yours very truly,
GERMER GERTZ, L.L.P.
By. /voo[~7.w~,
Guy N. Goodson
GNGJmgm
Attachment
GENERAL GOVERNIYIENf f§ 2264:001
1r-tie I6 '
CHAPTER 2264. RESTRICTIONS.ON USE'OF. CERTAIN PUBLIC SUBSIDIES
6UBCEAPTER A GENERAI: yHGV16IQN$ .:8ectioa";'~ . ~ rt ~ Pub9c ~'~'.
Section - ~ 2264062'; Condttlon oa~ Reeeip"
y$64.001. DefmiESoag. ~ dt
[SeeEiona 2264.00E mp~n56 ~ mse;vrd for ez-.. .
~91JB.CIiAPThA B. RESl'RICTIUNS AN UBE..
Op CERTAIN PUBLIC SUBSIDIES TO ~M-
' PLOY UNIIOCUMENTEO WORgE33 .
E264.OSL. Statement Required fa APPlicetlon for...
" ]'ublie Sulaidies - - '
es.
2264.3. _AgceemeAt ,R?garding ReP&YatF?~ Pf
. ~ `Interest
LSerltons E264.054'm P184.100 ~ reserved for ex-
.... • ~ pasrioal ~ • •. " . .
'SUBCHAPTER C. ' ENFORCEId$NT
2260.101. Aeosvery. ~~ ~ ~~
~_'. Chapter SSB4,._Restrictioas :om Uae of Certain Pubiie~$ubsidies, rrmsiitiag~pf~,..
. §§ 84G4001 m 886101, .tuns added bi/ Ada £00,,9, eh B6y, § 2:. . .
FotanoUterLyunptan'8864Requirer3Fu6iicaiiona'ndftep'ard?a~9.b'y~Gooerra~aentaS
'Entitie4. ~??~ of § E864.007,; added 6y Acts 8007, .80th Leg. ch 889e § $; ~ ¢nzl ,.
for Chapter 2864 Financial Ancuuvding and Reporting, ovnsistin9 al §§ 2864001 to
'8884107, added by Acts 8007, 80th Leg.. e!s 1284, § $ sea §§ 8864001 el seq, post..
(1) "Economic development corporation' means's development corporation organized'
under the Development. Corporation Act oP 1979 (Article 6190.6, Vernon's Teaae'Civfl
Statutes). ~ .
(2) "Public agency" means the state o~~an agency instrumentality. or politicalsubdivision
of this state, including a county, a municipality, a public school district, ar.aspotial-Purpose
district or anihority. ~ ~ ~ ~ '
(3) "Pub}k:sabsidy" means a public pzogram•or public benefit or assCvfanee of any.type
dint is deigned m stimulate rite economic development of a tvlporafian, industry, o'r sector
of the state's economy of m create or retain Sobs In thfe state. The term includes Scants,
loans. loan guarm~tees, bene6m~ relating m an enterprise or empdwerment zone, tee
waivers, land prlce'snbeidiea; inIrastructm'e development"and improvements designed-m
principally benefit a single business ar defined~group of businesses, matching fonds, tax,
refunds, tax rebates, or tax nbatemenm. ~. .
(4) ."Undocumented worker" means an indfvidaal who, at the "brae of employment, is amt:
(A) lawfully admitted for permanent residence m Uye United States; or
(B) aatlidrized ender [aw m be employed in flat manner ut the United States.
Added by Aets 2007, SOth Leg., ch. 953. 4 1, eft. Sept 1, 2007. ..
Histociral and Statutory Notes ~ - ..
ZW'7 L~mfion sabsidY.thet is recel7ed on or after the effective
SreGon 2 of Acts 2007. 80th Leg.: cb. 953 pro- .dam of this Act . A: Peb~~ subsdY Provided m
vides: ~ napoase m en appllcatian rsmlved before tae eb
°1$e~ rLauge in Iaw made by Hde Act epPltes fectise date of Uds Ad to governed by.tfie liw n A
an(y m a publle sohs[dy pzavrded 4Y ~ ~oao~u edamd on t]~e dam me appllmTtan was received.
development corporation, a taiddgi~~a. or a .odd the P+~' >~' is mat;nned iu' effect for ~ that
pabite agency in rraponse m en application for the . purpose"
I87
SUBCHAPTER ~. 'GENERAL PROVISIONS'""
§ 5264.001. Definitions
Ia this"chapter ~ ~ .. ~ .
,~~ X2264.001 ~ GENERAL GOVERN]YYTENN'P
Title 10
^~ _ [Sections 2264.002 to 2264.050 . reserved for .expansion]
gUBCHAPTER B. RES'fRIC7'IONS ON USE OF.CERTAIN PU$LIC
... ~ SUBSIDIES TO:EMPI:OY`UNDOCUtdENTED R'ORKERS
§ 2264.051.. Statnliterit.Ttegiiired iti iYpPU~tioli for Public Subsidies
.A.ptiblle,agency,"state mc.l°.ca{,fa~Byarisdictioa, or ~ecgnomfc development coxpo;ation
shall'require a'hutinesg that'submits m appikahon W recei've'"a pub6c'sabsidy fA include in
the appGcativn a statement cerLifjring that the business, or a'bi'snch,`divieon, or department
of the bneiness; does not and wig not'lmowingb employ ea undgdmteated worker.. .
Added 69 Gets 2007, 80th Leg•~ d~. 869, $ 1, e9.6epf-Y. 2007..
..§ 2264A52. Condition an $eceipt of"Public Subsidies ~ '
.The statement required by~ 9ectian 2264.051 must" state tltat'if, after receiving a public.
sabsdy;. the busbmess, or a branch; division, or department oP the bwsiaess, is convicted of a .
violation tinder 8 USC. Section 1824a(ti7, the bnainess al>sti repay the amount of the public
'suhvdy wlth interest, et the rate and accetding to the other terms Provided by an agreement ~.
under Sedioa 2264.053, dot later than the 120th day aRer' Ehe date the public agency. state or
local'tawg jurisdiction, or economic developffient corporation notifies the baseness of the'
violation.
Added by Acts2007.80dt Leg, eh 853, 4 1. e!E Sept 1, 2007. .~'
§2264.053. "Agreement Regarding ]depayment of Interest ~ •,,
ApnbSe agency, state or 1acaL taring jurisdiction, or economic development corporation,'
before awarding a public subsidy W a business, shall enter into a written agreement with the:
business spetaf}dng the rate and terms of the Payment of brteres£ff the business is required
' to repay the pub&c subsidy. ~ . .
Added 69 Ails 200_,7 BOlh Leg, eb.869, 4 1, e8: 6ept 1,2007.
- ~ (Sections 7264.064 to' 2264.100 reserved for rxpansioal -
SUBCHAPTER C. ENFORCEMENT
§ 2264.10E Recovers
(a) A.Pub]ic agency, local taring jursdidion, or econo ma a~Pm a~ arar~tito iecm
attorney genera[ oa behalf of the state dr a state ages Y, Y - g
any amotmts owed to the public agency,' state ar ]oml'taxmg lmisdietion, or econm
development corporatloa'under this chapter. . .
(b) The public agenay, ]oral 'taring jarisdidion; ~ecenamic development corporation,
attorney general,. as applieabler shag recover lrourt costs- and reasonable attorney's L
inctaredm an acnon brought under' Snbseetian (s). b a subsidiary, affiliate;.
(c) A business.is not liable fa exsouwithwhom ebc~e~evscsntracta. .
franchisee of the business, or by P
Added by Acts 2067, 80th Leg., ch. ~` ~ $ 1, eB.3ept 1, 2007.
CHAPTER 2264HY GOVERNMENTAL lENTiTIES R.EPOR'CQ~G
Section ~~~~
Y264A01 8ecmding and 8eporang
Water, and Natural Gan Coasamp- .
. ruin.
. ~ Chapter f.E64,. Ragh{red i'vbdication ofd Relmrtv+9 by Goverta7nental Fmtitie~
eorzsis4ing 4f § (864.001, .wan added bP Acts £007, 80th Leg., cle 999, S 8.
For ~anathsr Ehapter 8284, Rbatrictiona on Uae of. Cs7Win Pttblie. Subsidie
consisting of 9$ 8864-001 to 8864.101, ~odded by Acts 8007, 80th Leg., ch. 8b3 3 1, d
188 '
EXHIBIT ~~B"
WILL BE PRESENTED
AT THE COUNCIL MEETING