88R6780 LRM-D
By: Isaac H.B. No. 2425
A BILL TO BE ENTITLED
AN ACT
relating to a prohibition on governmental contracts with Chinese
companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 10, Government Code, is
amended by adding Chapter 2278 to read as follows:
CHAPTER 2278. PROHIBITION ON CONTRACTS WITH CHINESE COMPANIES
Sec. 2278.001. DEFINITIONS. In this chapter:
(1) "Chinese company" means a company that is
headquartered in China or is a wholly owned subsidiary or
majority-owned subsidiary of a company headquartered in China,
regardless of whether:
(A) the company's or its parent company's
securities are publicly traded; or
(B) the company or its parent company is listed
as a Chinese company on a public stock exchange.
(2) "Governmental entity" means a state agency or
political subdivision of this state.
Sec. 2278.002. PROVISION REQUIRED IN CONTRACT. A
governmental entity may not enter into a contract with a company for
goods or services unless the contract contains a written
verification from the company that it is not a Chinese company.
SECTION 2. Section 2278.002, Government Code, as added by
this Act, applies only to a contract entered into on or after
January 1, 2024. A contract entered into before that date is
governed by the law in effect on the date the contract was entered
into, and the former law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2023.