Louisiana 2022 2022 Regular Session

Louisiana Senate Bill SB472 Comm Sub / Analysis

                    The original instrument was prepared by LG Sullivan. The following digest, which
does not constitute a part of the legislative instrument, was prepared by Alan Miller.
DIGEST
SB 472 Engrossed	2022 Regular Session	Milligan
Proposed law creates the "Transparency in Ownership of Critical Infrastructure Law".
Proposed law defines the following terms:
(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)"Critical infrastructure" means a communication infrastructure system, cybersecurity system,
electric grid, hazardous waste treatment system, or water treatment facility.
(3)"Cybersecurity" means the measures taken to protect a computer, computer network,
computer system, or other technology infrastructure against unauthorized use or access.
(4)"Designated country" means a country designated by the governor as a threat to critical
infrastructure pursuant to proposed law.
(5)"Governmental entity" means a state agency or political subdivision of this state.
Proposed law prohibits a governmental entity from entering into a contract or other agreement
relating to critical infrastructure in this state with a company if, under the contract or other
agreement, the company would be granted direct or remote access to or control of critical
infrastructure in this state, excluding access specifically allowed by the governmental entity for
product warranty and support purposes under any of the following circumstances:
(1)The governmental entity knows that the company is owned by or the majority of stock or
other ownership interest of the company is held or controlled by individuals who are citizens
of China, Iran, North Korea, Russia, or a designated country.
(2)The governmental entity knows that the company or other entity, including a governmental
entity, is owned or controlled by citizens of or is directly controlled by the government of
China, Iran, North Korea, Russia, or a designated country.
(3)The governmental entity knows that the company or other entity is headquartered in China,
Iran, North Korea, Russia, or a designated country.
Proposed law applies regardless of whether the company's or its parent company's securities are publicly traded or the company or its parent company is listed on a public stock exchange as a
Chinese, Iranian, North Korean, or Russian company or a company of a designated country.
Proposed law authorizes the governor, after consultation with the director of the Governor's Office
of Homeland Security and Emergency Preparedness (GOHSEP), to designate a country as a threat
to critical infrastructure for purposes of proposed law.
Proposed law requires the governor to consult the Senate and House select committees on homeland
security, to assess a threat to critical infrastructure for purposes of making a designation under
proposed law.
(Adds R.S. 51:3051-3054)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Judiciary B to the original bill
1. Narrows the scope of the definition of "critical infrastructure".
2. Removes provisions relative to reporting requirements.
3. Adds provisions prohibiting contracts or agreements relating to critical infrastructure
with companies owned by individuals who are citizens of designated countries
determined to be a threat to critical infrastructure.
4. Designates China, Iran, North Korea, and Russia as countries that are a threat to
critical infrastructure.
5. Allows the governor to add countries deemed to be a threat to critical infrastructure
after consultation with the director of GOHSEP. 
6. Requires the governor to consult with the Senate and House committees on homeland
security to assess threats to critical infrastructure.