| 1 | 1 | | 88R6780 LRM-D |
|---|
| 2 | 2 | | By: Isaac H.B. No. 2425 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to a prohibition on governmental contracts with Chinese |
|---|
| 8 | 8 | | companies. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Subtitle F, Title 10, Government Code, is |
|---|
| 11 | 11 | | amended by adding Chapter 2278 to read as follows: |
|---|
| 12 | 12 | | CHAPTER 2278. PROHIBITION ON CONTRACTS WITH CHINESE COMPANIES |
|---|
| 13 | 13 | | Sec. 2278.001. DEFINITIONS. In this chapter: |
|---|
| 14 | 14 | | (1) "Chinese company" means a company that is |
|---|
| 15 | 15 | | headquartered in China or is a wholly owned subsidiary or |
|---|
| 16 | 16 | | majority-owned subsidiary of a company headquartered in China, |
|---|
| 17 | 17 | | regardless of whether: |
|---|
| 18 | 18 | | (A) the company's or its parent company's |
|---|
| 19 | 19 | | securities are publicly traded; or |
|---|
| 20 | 20 | | (B) the company or its parent company is listed |
|---|
| 21 | 21 | | as a Chinese company on a public stock exchange. |
|---|
| 22 | 22 | | (2) "Governmental entity" means a state agency or |
|---|
| 23 | 23 | | political subdivision of this state. |
|---|
| 24 | 24 | | Sec. 2278.002. PROVISION REQUIRED IN CONTRACT. A |
|---|
| 25 | 25 | | governmental entity may not enter into a contract with a company for |
|---|
| 26 | 26 | | goods or services unless the contract contains a written |
|---|
| 27 | 27 | | verification from the company that it is not a Chinese company. |
|---|
| 28 | 28 | | SECTION 2. Section 2278.002, Government Code, as added by |
|---|
| 29 | 29 | | this Act, applies only to a contract entered into on or after |
|---|
| 30 | 30 | | January 1, 2024. A contract entered into before that date is |
|---|
| 31 | 31 | | governed by the law in effect on the date the contract was entered |
|---|
| 32 | 32 | | into, and the former law is continued in effect for that purpose. |
|---|
| 33 | 33 | | SECTION 3. This Act takes effect September 1, 2023. |
|---|