By: Parker H.B. No. 4359
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting contracts or other agreements with certain
foreign-owned companies in connection with critical infrastructure
in this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act may be cited as the Lone Star
Infrastructure Protection Act.
SECTION 2. Subtitle C, Title 5, Business & Commerce Code, is
amended by adding Chapter 113 to read as follows:
CHAPTER 113. PROHIBITION ON AGREEMENTS WITH CERTAIN FOREIGN-OWNED
COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE
Sec. 113.001. DEFINITIONS. In this chapter:
(1) "Company" means a for-profit 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.
Sec. 113.002. DESIGNATION OF THREAT TO CRITICAL
INFRASTRUCTURE. (a) The governor may designate a country as a
threat to critical infrastructure with the consultation of the
public safety director of the Department of Public Safety.
(b) The governor may consult the Homeland Security Council,
as described by Chapter 421, Government Code, to assess a threat to
critical infrastructure under this section.
Sec. 113.003. PROHIBITED ACCESS TO CRITICAL
INFRASTRUCTURE. (a) A business entity may not enter into an
agreement relating to critical infrastructure in this state with a
company:
(1) if, under the agreement, the company would be able
to directly or remotely access or control critical infrastructure
in this state; and
(2) if the company is:
(A) owned by or the majority of stock or other
ownership interest of the company is held or controlled by:
(i) individuals who are citizens of China,
Iran, North Korea, Russia, or a country designated under Section
113.002; or
(ii) a company or other entity, including a
governmental entity, that is owned or controlled by citizens of or
is directly controlled by the government of China, Iran, North
Korea, Russia, or a country designated under Section 113.002; or
(B) headquartered in China, Iran, North Korea,
Russia, or a country designated under Section 113.002.
(b) The prohibition described by Subsection (a) applies
regardless of whether:
(1) the company's or its parent company's securities
are publicly traded; or
(2) the company or its parent company is listed as a
Chinese, Iranian, North Korean, or Russian company on a public
stock exchange.
SECTION 3. Subtitle F, Title 10, Government Code, is
amended by adding Chapter 2274 to read as follows:
CHAPTER 2274. PROHIBITION ON CONTRACTS WITH CERTAIN FOREIGN-OWNED
COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE
Sec. 2274.0101. DEFINITIONS. In this chapter:
(1) "Company" means a for-profit 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) "Governmental entity" means a state agency or
political subdivision of this state.
Sec. 2274.0102. PROHIBITED CONTRACTS. (a) A governmental
entity may not enter into a contract or other agreement relating to
critical infrastructure in this state with a company that is:
(1) owned by or the majority of stock or other
ownership interest of the company is held or controlled by:
(A) individuals who are citizens of China, Iran,
North Korea, Russia, or a country designated under Section 113.002;
or
(B) a company or other entity, including a
governmental entity, that is owned or controlled by citizens of or
is directly controlled by the government of China, Iran, North
Korea, Russia, or a country designated under Section 113.002; or
(2) headquartered in China, Iran, North Korea, Russia,
or a country designated under Section 113.002.
(b) The prohibition described by Subsection (a) applies
regardless of whether:
(1) the company's or its parent company's securities
are publicly traded; or
(2) the company or its parent company is listed as a
Chinese, Iranian, North Korean, or Russian company on a public
stock exchange.
SECTION 4. Chapter 113, Business & Commerce Code, as added
by this Act, and Chapter 2274, Government Code, as added by this
Act, apply to a contract or agreement entered into on or after the
effective date of this Act.
SECTION 5. This Act takes effect September 1, 2021.