Texas 2021 - 87th Regular

Texas Senate Bill SB2116 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 2116
	1	+	87R26997 MWC-F
	2	+	By: Campbell, et al. S.B. No. 2116
	3	+	(Parker)
	4	+	Substitute the following for S.B. No. 2116: No.
2	5
3	6
	7	+	A BILL TO BE ENTITLED
4	8		AN ACT
5	9		relating to prohibiting contracts or other agreements with certain
6	10		foreign-owned companies in connection with critical infrastructure
7	11		in this state.
8	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	13		SECTION 1. This Act may be cited as the Lone Star
10	14		Infrastructure Protection Act.
11	15		SECTION 2. Subtitle C, Title 5, Business & Commerce Code, is
12	16		amended by adding Chapter 113 to read as follows:
13	17		CHAPTER 113. PROHIBITION ON AGREEMENTS WITH CERTAIN FOREIGN-OWNED
14	18		COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE
15	19		Sec. 113.001. DEFINITIONS. In this chapter:
16	20		(1) "Company" means a sole proprietorship,
17	21		organization, association, corporation, partnership, joint
18	22		venture, limited partnership, limited liability partnership, or
19	23		limited liability company, including a wholly owned subsidiary,
20	24		majority-owned subsidiary, parent company, or affiliate of those
21	25		entities or business associations, that exists to make a profit.
22	26		(2) "Critical infrastructure" means a communication
23	27		infrastructure system, cybersecurity system, electric grid,
24	28		hazardous waste treatment system, or water treatment facility.
25	29		(3) "Cybersecurity" means the measures taken to
26	30		protect a computer, computer network, computer system, or other
27	31		technology infrastructure against unauthorized use or access.
28	32		(4) "Designated country" means a country designated by
29	33		the governor as a threat to critical infrastructure under Section
30	34		113.003.
31	35		Sec. 113.002. PROHIBITED ACCESS TO CRITICAL
32	36		INFRASTRUCTURE. (a) A business entity may not enter into an
33	37		agreement relating to critical infrastructure in this state with a
34	38		company:
35	39		(1) if, under the agreement, the company would be
36	40		granted direct or remote access to or control of critical
37	41		infrastructure in this state, excluding access specifically
38	42		allowed by the business entity for product warranty and support
39	43		purposes; and
40	44		(2) if the business entity knows that the company is:
41	45		(A) owned by or the majority of stock or other
42	46		ownership interest of the company is held or controlled by:
43	47		(i) individuals who are citizens of China,
44	48		Iran, North Korea, Russia, or a designated country; or
45	49		(ii) a company or other entity, including a
46	50		governmental entity, that is owned or controlled by citizens of or
47	51		is directly controlled by the government of China, Iran, North
48	52		Korea, Russia, or a designated country; or
49	53		(B) headquartered in China, Iran, North Korea,
50	54		Russia, or a designated country.
51	55		(b) The prohibition described by Subsection (a) applies
52	56		regardless of whether:
53	57		(1) the company's or its parent company's securities
54	58		are publicly traded; or
55	59		(2) the company or its parent company is listed on a
56	60		public stock exchange as:
57	61		(A) a Chinese, Iranian, North Korean, or Russian
58	62		company; or
59	63		(B) a company of a designated country.
60	64		Sec. 113.003. DESIGNATION OF COUNTRY AS THREAT TO CRITICAL
61	65		INFRASTRUCTURE. (a) The governor, after consultation with the
62	66		public safety director of the Department of Public Safety, may
63	67		designate a country as a threat to critical infrastructure for
64	68		purposes of this chapter.
65		-	(b) The governor ~~shall~~ consult the Homeland Security
66		-	~~Council,~~ established under Subchapter B, Chapter 421, Government
67		-	~~Code, to~~ assess a threat to critical infrastructure for purposes of
68		-	~~making a~~ designation under this section.
	69	+	(b) The governor may consult the Homeland Security Council,
	70	+	established under Subchapter B, Chapter 421, Government Code, to
	71	+	assess a threat to critical infrastructure for purposes of making a
	72	+	designation under this section.
69	73		SECTION 3. Subtitle F, Title 10, Government Code, is
70	74		amended by adding Chapter 2274 to read as follows:
71	75		CHAPTER 2274. PROHIBITION ON CONTRACTS WITH CERTAIN FOREIGN-OWNED
72	76		COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE
73	77		Sec. 2274.0101. DEFINITIONS. In this chapter:
74	78		(1) "Company" means a sole proprietorship,
75	79		organization, association, corporation, partnership, joint
76	80		venture, limited partnership, limited liability partnership, or
77	81		limited liability company, including a wholly owned subsidiary,
78	82		majority-owned subsidiary, parent company, or affiliate of those
79	83		entities or business associations, that exists to make a profit.
80	84		(2) "Critical infrastructure" means a communication
81	85		infrastructure system, cybersecurity system, electric grid,
82	86		hazardous waste treatment system, or water treatment facility.
83	87		(3) "Cybersecurity" means the measures taken to
84	88		protect a computer, computer network, computer system, or other
85	89		technology infrastructure against unauthorized use or access.
86	90		(4) "Designated country" means a country designated by
87	91		the governor as a threat to critical infrastructure under Section
88	92		2274.0103.
89	93		(5) "Governmental entity" means a state agency or
90	94		political subdivision of this state.
91	95		Sec. 2274.0102. PROHIBITED CONTRACTS. (a) A governmental
92	96		entity may not enter into a contract or other agreement relating to
93	97		critical infrastructure in this state with a company:
94	98		(1) if, under the contract or other agreement, the
95	99		company would be granted direct or remote access to or control of
96	100		critical infrastructure in this state, excluding access
97	101		specifically allowed by the governmental entity for product
98	102		warranty and support purposes; and
99	103		(2) if the governmental entity knows that the company
100	104		is:
101	105		(A) owned by or the majority of stock or other
102	106		ownership interest of the company is held or controlled by:
103	107		(i) individuals who are citizens of China,
104	108		Iran, North Korea, Russia, or a designated country; or
105	109		(ii) a company or other entity, including a
106	110		governmental entity, that is owned or controlled by citizens of or
107	111		is directly controlled by the government of China, Iran, North
108	112		Korea, Russia, or a designated country; or
109	113		(B) headquartered in China, Iran, North Korea,
110	114		Russia, or a designated country.
111	115		(b) The prohibition described by Subsection (a) applies
112	116		regardless of whether:
113	117		(1) the company's or its parent company's securities
114	118		are publicly traded; or
115	119		(2) the company or its parent company is listed on a
116	120		public stock exchange as:
117	121		(A) a Chinese, Iranian, North Korean, or Russian
118	122		company; or
119	123		(B) a company of a designated country.
120	124		Sec. 2274.0103. DESIGNATION OF COUNTRY AS THREAT TO
121	125		CRITICAL INFRASTRUCTURE. (a) The governor, after consultation
122	126		with the public safety director of the Department of Public Safety,
123	127		may designate a country as a threat to critical infrastructure for
124	128		purposes of this chapter.
125		-	(b) The governor ~~shall~~ consult the Homeland Security
126		-	~~Council,~~ established under Subchapter B, Chapter 421, to assess a
127		-	~~threat to~~ critical infrastructure for purposes of making a
128		-	~~designation under~~ this section.
	129	+	(b) The governor may consult the Homeland Security Council,
	130	+	established under Subchapter B, Chapter 421, to assess a threat to
	131	+	critical infrastructure for purposes of making a designation under
	132	+	this section.
129	133		SECTION 4. Chapter 113, Business & Commerce Code, as added
130	134		by this Act, and Chapter 2274, Government Code, as added by this
131	135		Act, apply to a contract or agreement entered into on or after the
132	136		effective date of this Act.
133		-	SECTION 5. This Act takes effect immediately if it receives
134		-	a vote of two-thirds of all the members elected to each house, as
135		-	provided by Section 39, Article III, Texas Constitution. If this
136		-	Act does not receive the vote necessary for immediate effect, this
137		-	Act takes effect September 1, 2021.
138		-	______________________________ ______________________________
139		-	President of the Senate Speaker of the House
140		-	I hereby certify that S.B. No. 2116 passed the Senate on
141		-	April 26, 2021, by the following vote: Yeas 31, Nays 0; and that
142		-	the Senate concurred in House amendments on May 29, 2021, by the
143		-	following vote: Yeas 31, Nays 0.
144		-	______________________________
145		-	Secretary of the Senate
146		-	I hereby certify that S.B. No. 2116 passed the House, with
147		-	amendments, on May 24, 2021, by the following vote: Yeas 141,
148		-	Nays 0, one present not voting.
149		-	______________________________
150		-	Chief Clerk of the House
151		-	Approved:
152		-	______________________________
153		-	Date
154		-	______________________________
155		-	Governor
	137	+	SECTION 5. This Act takes effect September 1, 2021.