Texas 2021 - 87th Regular

Texas House Bill HB4359 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: Parker H.B. No. 4359
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to prohibiting contracts or other agreements with certain
7	7	foreign-owned companies in connection with critical infrastructure
8	8	in this state.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. This Act may be cited as the Lone Star
11	11	Infrastructure Protection Act.
12	12	SECTION 2. Subtitle C, Title 5, Business & Commerce Code, is
13	13	amended by adding Chapter 113 to read as follows:
14	14	CHAPTER 113. PROHIBITION ON AGREEMENTS WITH CERTAIN FOREIGN-OWNED
15	15	COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE
16	16	Sec. 113.001. DEFINITIONS. In this chapter:
17	17	(1) "Company" means a for-profit sole proprietorship,
18	18	organization, association, corporation, partnership, joint
19	19	venture, limited partnership, limited liability partnership, or
20	20	limited liability company, including a wholly owned subsidiary,
21	21	majority-owned subsidiary, parent company, or affiliate of those
22	22	entities or business associations that exists to make a profit.
23	23	(2) "Critical infrastructure" means a communication
24	24	infrastructure system, cybersecurity system, electric grid,
25	25	hazardous waste treatment system, or water treatment facility.
26	26	(3) "Cybersecurity" means the measures taken to
27	27	protect a computer, computer network, computer system, or other
28	28	technology infrastructure against unauthorized use or access.
29	29	Sec. 113.002. DESIGNATION OF THREAT TO CRITICAL
30	30	INFRASTRUCTURE. (a) The governor may designate a country as a
31	31	threat to critical infrastructure with the consultation of the
32	32	public safety director of the Department of Public Safety.
33	33	(b) The governor may consult the Homeland Security Council,
34	34	as described by Chapter 421, Government Code, to assess a threat to
35	35	critical infrastructure under this section.
36	36	Sec. 113.003. PROHIBITED ACCESS TO CRITICAL
37	37	INFRASTRUCTURE. (a) A business entity may not enter into an
38	38	agreement relating to critical infrastructure in this state with a
39	39	company:
40	40	(1) if, under the agreement, the company would be able
41	41	to directly or remotely access or control critical infrastructure
42	42	in this state; and
43	43	(2) if the company is:
44	44	(A) owned by or the majority of stock or other
45	45	ownership interest of the company is held or controlled by:
46	46	(i) individuals who are citizens of China,
47	47	Iran, North Korea, Russia, or a country designated under Section
48	48	113.002; or
49	49	(ii) a company or other entity, including a
50	50	governmental entity, that is owned or controlled by citizens of or
51	51	is directly controlled by the government of China, Iran, North
52	52	Korea, Russia, or a country designated under Section 113.002; or
53	53	(B) headquartered in China, Iran, North Korea,
54	54	Russia, or a country designated under Section 113.002.
55	55	(b) The prohibition described by Subsection (a) applies
56	56	regardless of whether:
57	57	(1) the company's or its parent company's securities
58	58	are publicly traded; or
59	59	(2) the company or its parent company is listed as a
60	60	Chinese, Iranian, North Korean, or Russian company on a public
61	61	stock exchange.
62	62	SECTION 3. Subtitle F, Title 10, Government Code, is
63	63	amended by adding Chapter 2274 to read as follows:
64	64	CHAPTER 2274. PROHIBITION ON CONTRACTS WITH CERTAIN FOREIGN-OWNED
65	65	COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE
66	66	Sec. 2274.0101. DEFINITIONS. In this chapter:
67	67	(1) "Company" means a for-profit sole proprietorship,
68	68	organization, association, corporation, partnership, joint
69	69	venture, limited partnership, limited liability partnership, or
70	70	limited liability company, including a wholly owned subsidiary,
71	71	majority-owned subsidiary, parent company, or affiliate of those
72	72	entities or business associations that exists to make a profit.
73	73	(2) "Critical infrastructure" means a communication
74	74	infrastructure system, cybersecurity system, electric grid,
75	75	hazardous waste treatment system, or water treatment facility.
76	76	(3) "Cybersecurity" means the measures taken to
77	77	protect a computer, computer network, computer system, or other
78	78	technology infrastructure against unauthorized use or access.
79	79	(4) "Governmental entity" means a state agency or
80	80	political subdivision of this state.
81	81	Sec. 2274.0102. PROHIBITED CONTRACTS. (a) A governmental
82	82	entity may not enter into a contract or other agreement relating to
83	83	critical infrastructure in this state with a company that is:
84	84	(1) owned by or the majority of stock or other
85	85	ownership interest of the company is held or controlled by:
86	86	(A) individuals who are citizens of China, Iran,
87	87	North Korea, Russia, or a country designated under Section 113.002;
88	88	or
89	89	(B) a company or other entity, including a
90	90	governmental entity, that is owned or controlled by citizens of or
91	91	is directly controlled by the government of China, Iran, North
92	92	Korea, Russia, or a country designated under Section 113.002; or
93	93	(2) headquartered in China, Iran, North Korea, Russia,
94	94	or a country designated under Section 113.002.
95	95	(b) The prohibition described by Subsection (a) applies
96	96	regardless of whether:
97	97	(1) the company's or its parent company's securities
98	98	are publicly traded; or
99	99	(2) the company or its parent company is listed as a
100	100	Chinese, Iranian, North Korean, or Russian company on a public
101	101	stock exchange.
102	102	SECTION 4. Chapter 113, Business & Commerce Code, as added
103	103	by this Act, and Chapter 2274, Government Code, as added by this
104	104	Act, apply to a contract or agreement entered into on or after the
105	105	effective date of this Act.
106	106	SECTION 5. This Act takes effect September 1, 2021.