Relating to prohibiting contracts or other agreements with certain foreign-owned companies in connection with critical infrastructure in this state and the use of certain technology purchased or leased from those companies.
Impact
The implications of SB1847 extend to existing contracts and agreements for critical infrastructure services. While the prohibitions apply only to agreements entered into after the bill's effective date, which is set for September 1, 2025, entities involved with critical infrastructure will be required to evaluate their current vendors and suppliers to align with the new regulations. The bill marks a significant shift in how the state approaches security threats posed by foreign entities, particularly in sectors deemed critical to public safety and welfare.
Summary
SB1847 aims to prohibit contracts or agreements with certain foreign-owned companies in relation to critical infrastructure within Texas. The bill specifically addresses communication infrastructure, cybersecurity, electric grids, and other essential services, addressing concerns of national security in light of foreign adversaries. The legislation seeks to ensure that the technologies employed in critical domains of state infrastructure are sourced from companies that do not pose a significant threat to the state’s security interests.
Contention
There may be substantial discourse surrounding the measures proposed by SB1847. Advocates argue that the legislation is a necessary response to increasing concerns regarding cybersecurity and the potential for foreign meddling in critical systems. Opponents may raise concerns about the broad applicability of the bill, suggesting it could unfairly impact legitimate foreign businesses or restrict competition in technology procurement. The bill's language focusing on 'foreign adversaries' might lead to debates regarding the interpretation and impact of such designations under federal law.
Texas Constitutional Statutes Affected
Government Code
Chapter 2275. Prohibition On Contracts With Certain Foreign-owned Companies In Connection With Critical Infrastructure
Relating to exceptions to prohibited contracts or other agreements with certain foreign-owned companies in connection with critical infrastructure in this state.
Relating to state contracts with Chinese companies and investments in Chinese companies and certain companies doing business with China; authorizing a civil penalty.
Relating to the barring of certain vendors from participation in contracts with the state or a political subdivision and to prohibiting the use of technologies manufactured or sold by certain of those vendors.