87R26997 MWC-F
By: Campbell, et al. S.B. No. 2116
(Parker)
Substitute the following for S.B. No. 2116: No.
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 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 under Section
113.003.
Sec. 113.002. 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
granted direct or remote access to or control of critical
infrastructure in this state, excluding access specifically
allowed by the business entity for product warranty and support
purposes; and
(2) if the business entity knows that 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 designated country; 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 designated country; or
(B) headquartered in China, Iran, North Korea,
Russia, or a designated country.
(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 on a
public stock exchange as:
(A) a Chinese, Iranian, North Korean, or Russian
company; or
(B) a company of a designated country.
Sec. 113.003. DESIGNATION OF COUNTRY AS THREAT TO CRITICAL
INFRASTRUCTURE. (a) The governor, after consultation with the
public safety director of the Department of Public Safety, may
designate a country as a threat to critical infrastructure for
purposes of this chapter.
(b) The governor may consult the Homeland Security Council,
established under Subchapter B, Chapter 421, Government Code, to
assess a threat to critical infrastructure for purposes of making a
designation under this section.
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 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 under Section
2274.0103.
(5) "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:
(1) 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; and
(2) if the governmental entity knows that 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 designated country; 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 designated country; or
(B) headquartered in China, Iran, North Korea,
Russia, or a designated country.
(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 on a
public stock exchange as:
(A) a Chinese, Iranian, North Korean, or Russian
company; or
(B) a company of a designated country.
Sec. 2274.0103. DESIGNATION OF COUNTRY AS THREAT TO
CRITICAL INFRASTRUCTURE. (a) The governor, after consultation
with the public safety director of the Department of Public Safety,
may designate a country as a threat to critical infrastructure for
purposes of this chapter.
(b) The governor may consult the Homeland Security Council,
established under Subchapter B, Chapter 421, to assess a threat to
critical infrastructure for purposes of making a designation under
this section.
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.