Texas 2023 - 88th Regular

Texas House Bill HB2758 Compare Versions

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Version 2 (New)

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1	1	88R7443 LRM-D
2	2	By: Paul H.B. No. 2758
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to a prohibition on state contracts with certain foreign
8	8	companies or organizations; authorizing a civil penalty.
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 2279 to read as follows:
12	12	CHAPTER 2279. PROHIBITION ON STATE CONTRACTS WITH CERTAIN
13	13	COMPANIES OR ORGANIZATIONS IN SCRUTINIZED COUNTRIES
14	14	Sec. 2279.001. DEFINITIONS. In this chapter:
15	15	(1) "Company" means a sole proprietorship,
16	16	organization, association, corporation, partnership, joint
17	17	venture, limited partnership, limited liability partnership, or
18	18	limited liability company, including a wholly owned subsidiary,
19	19	majority-owned subsidiary, parent company, or affiliate of those
20	20	entities or business associations, that exists to make a profit.
21	21	(2) "Nonprofit organization" includes a nonprofit
22	22	corporation or association.
23	23	(3) "Scrutinized country" means China, Iran, North
24	24	Korea, or Russia.
25	25	Sec. 2279.002. PROVISION REQUIRED IN STATE CONTRACTS. (a)
26	26	A state agency may not enter into a contract with a vendor for goods
27	27	or services unless the contract contains a written verification
28	28	from the vendor that it is not:
29	29	(1) a company owned or directly controlled by the
30	30	government of a scrutinized country; or
31	31	(2) a nonprofit organization or government-organized
32	32	nongovernmental organization that is headquartered in a
33	33	scrutinized county.
34	34	(b) The prohibition described by Subsection (a) applies
35	35	regardless of whether:
36	36	(1) the company's or its parent company's securities
37	37	are publicly traded; or
38	38	(2) the company or its parent company is listed on a
39	39	public stock exchange as a company of a scrutinized country.
40	40	Sec. 2279.003. FALSE VERIFICATION; PENALTIES. (a) If a
41	41	state agency determines that a vendor holding a contract with the
42	42	state agency was ineligible to have the contract awarded under
43	43	Section 2279.002 because the vendor's written verification was
44	44	false, the state agency shall immediately terminate the contract
45	45	without further obligation to the vendor.
46	46	(b) A vendor described by Subsection (a):
47	47	(1) is barred from responding to a solicitation for or
48	48	being awarded a contract for goods or services by any state agency;
49	49	and
50	50	(2) is liable to this state for a civil penalty of
51	51	either $250,000, or twice the amount of the terminated contract
52	52	under Subsection (a), whichever is greater.
53	53	(c) The attorney general may bring an action to recover a
54	54	civil penalty imposed under Subsection (b)(2). The attorney
55	55	general may recover reasonable attorney's fees and court costs in
56	56	bringing an action under this subsection.
57	57	SECTION 2. Section 2279.002, Government Code, as added by
58	58	this Act, applies only to a contract entered into on or after the
59	59	effective date of this Act. A contract entered into before the
60	60	effective date of this Act is governed by the law in effect on the
61	61	date the contract was entered into, and the former law is continued
62	62	in effect for that purpose.
63	63	SECTION 3. This Act takes effect September 1, 2023.