Texas 2023 - 88th Regular

Texas House Bill HB2823 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R323 RDS-F
2	2	By: Anchía H.B. No. 2823
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to state contracts with and investments in certain
8	8	companies doing business in the Russian Federation.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 2270.0001(9), Government Code, is
11	11	amended to read as follows:
12	12	(9) "Scrutinized company" means:
13	13	(A) a company that:
14	14	(i) engages in scrutinized business
15	15	operations described by Section 2270.0052; or
16	16	(ii) has been complicit in the Darfur
17	17	genocide during any preceding 20-month period;
18	18	(B) a company that engages in scrutinized
19	19	business operations described by Section 2270.0102; [and]
20	20	(C) a company that engages in scrutinized
21	21	business operations described by Section 2270.0152; and
22	22	(D) a company that engages in scrutinized
23	23	business operations described by Section 2270.0162.
24	24	SECTION 2. Section 2270.0002, Government Code, is amended
25	25	to read as follows:
26	26	Sec. 2270.0002. EXCEPTION. Notwithstanding any other law,
27	27	a company that the United States government affirmatively declares
28	28	to be excluded from its federal sanctions regime relating to Sudan,
29	29	its federal sanctions regime relating to Iran, [or] any federal
30	30	sanctions regime relating to a designated foreign terrorist
31	31	organization, or its federal sanctions regime relating to the
32	32	Russian Federation is not subject to divestment or investment
33	33	prohibition under this chapter.
34	34	SECTION 3. Chapter 2270, Government Code, is amended by
35	35	adding Subchapter D-1 to read as follows:
36	36	SUBCHAPTER D-1. GENERAL PROVISIONS RELATING TO INVESTMENTS IN
37	37	RUSSIAN FEDERATION
38	38	Sec. 2270.0161. DEFINITIONS. In this subchapter:
39	39	(1) "Business operations" means engaging in commerce
40	40	in any form in the Russian Federation, including by acquiring,
41	41	developing, maintaining, owning, selling, possessing, leasing, or
42	42	operating equipment, facilities, personnel, products, services,
43	43	personal property, real property, or any other apparatus of
44	44	business or commerce.
45	45	(2) "Military equipment" means weapons, arms,
46	46	military supplies, and equipment that readily may be used for
47	47	military purposes, including radar systems and military-grade
48	48	transport vehicles.
49	49	Sec. 2270.0162. SCRUTINIZED BUSINESS OPERATIONS IN RUSSIAN
50	50	FEDERATION. A company engages in scrutinized business operations
51	51	in the Russian Federation if:
52	52	(1) the company has business operations that involve
53	53	contracts with or providing supplies or services to the government
54	54	of the Russian Federation, a company in which the government of the
55	55	Russian Federation has any direct or indirect equity share, a
56	56	consortium or project commissioned by the government of the Russian
57	57	Federation, or a company involved in a consortium or project
58	58	commissioned by the government of the Russian Federation; or
59	59	(2) the company supplies military equipment to the
60	60	Russian Federation.
61	61	SECTION 4. Sections 2270.0201(a) and (b), Government Code,
62	62	are amended to read as follows:
63	63	(a) The comptroller shall prepare and maintain a list of all
64	64	scrutinized companies. The list must be categorized according to:
65	65	(1) companies that are scrutinized companies under
66	66	Section 2270.0001(9)(A);
67	67	(2) companies that are scrutinized companies under
68	68	Section 2270.0001(9)(B); [and]
69	69	(3) companies that are scrutinized companies under
70	70	Section 2270.0001(9)(C); and
71	71	(4) companies that are scrutinized companies under
72	72	Section 2270.0001(9)(D).
73	73	(b) In maintaining the list of scrutinized companies under
74	74	Subsection (a), the comptroller may review and rely, as appropriate
75	75	in the comptroller's judgment, on publicly available information
76	76	regarding companies with business operations in Sudan, in Iran,
77	77	[or] with designated foreign terrorist organizations, or in the
78	78	Russian Federation, as applicable, including information provided
79	79	by the state, nonprofit organizations, research firms,
80	80	international organizations, and governmental entities.
81	81	SECTION 5. Section 2270.0203, Government Code, is amended
82	82	to read as follows:
83	83	Sec. 2270.0203. NOTICE TO LISTED COMPANY ENGAGED IN
84	84	INACTIVE BUSINESS OPERATIONS. For each listed company identified
85	85	under Section 2270.0202 that is engaged in only inactive
86	86	scrutinized business operations, the investing entity shall send a
87	87	written notice informing the company of this chapter and
88	88	encouraging the company to continue to refrain from initiating
89	89	active business operations in Sudan, in Iran, [and] with designated
90	90	foreign terrorist organizations, and in the Russian Federation
91	91	until it is able to avoid being considered a listed company. The
92	92	investing entity shall continue the correspondence as the entity
93	93	considers necessary, but is not required to initiate correspondence
94	94	more often than semiannually.
95	95	SECTION 6. Section 2270.0204(b), Government Code, is
96	96	amended to read as follows:
97	97	(b) The notice shall offer the company the opportunity to
98	98	clarify its Sudan-related, Iran-related, [or] designated foreign
99	99	terrorist organization-related, or Russian Federation-related
100	100	activities, as applicable, and shall encourage the company, not
101	101	later than the 90th day after the date the company receives notice
102	102	under this section, to either cease all scrutinized business
103	103	operations as described by Sections 2270.0052, 2270.0102, [and]
104	104	2270.0152, and 2270.0162, or convert such operations to inactive
105	105	business operations in order to avoid qualifying for divestment by
106	106	investing entities.
107	107	SECTION 7. Subtitle F, Title 10, Government Code, is
108	108	amended by adding Chapter 2278 to read as follows:
109	109	CHAPTER 2278. PROHIBITION ON CONTRACTS WITH CERTAIN COMPANIES
110	110	ENGAGING IN SCRUTINIZED BUSINESS OPERATIONS IN RUSSIAN FEDERATION
111	111	Sec. 2278.001. DEFINITIONS. In this chapter:
112	112	(1) "Company" has the meaning assigned by Section
113	113	2270.0001, Government Code, except that the term does not include a
114	114	sole proprietorship.
115	115	(2) "Governmental entity" has the meaning assigned by
116	116	Section 2251.001.
117	117	Sec. 2278.002. PROVISION REQUIRED IN CONTRACT. (a) This
118	118	section applies only to a contract that:
119	119	(1) is between a governmental entity and a company
120	120	with 10 or more full-time employees; and
121	121	(2) has a value of $100,000 or more that is to be paid
122	122	wholly or partly from public funds of the governmental entity.
123	123	(b) Except as provided by Subsection (c), a governmental
124	124	entity may not enter into a contract with a company for goods or
125	125	services unless the contract contains a written verification from
126	126	the company that it:
127	127	(1) does not engage in scrutinized business operations
128	128	described by Section 2270.0162; and
129	129	(2) will not engage in scrutinized business operations
130	130	described by Section 2270.0162 during the term of the contract.
131	131	(c) Subsection (b) does not apply to a governmental entity
132	132	that determines the requirements of Subsection (b) are inconsistent
133	133	with the governmental entity's constitutional or statutory duties
134	134	related to the issuance, incurrence, or management of debt
135	135	obligations or the deposit, custody, management, borrowing, or
136	136	investment of funds.
137	137	SECTION 8. Not later than the 180th day after the effective
138	138	date of this Act, the comptroller of public accounts shall include
139	139	the companies described by Section 2270.0201(a)(4), Government
140	140	Code, as added by this Act, on the list under Section 2270.0201(a),
141	141	Government Code.
142	142	SECTION 9. Chapter 2278, Government Code, as added by this
143	143	Act, applies only to a contract entered into on or after the
144	144	effective date of this Act. A contract entered into before that
145	145	date is governed by the law in effect on the date the contract was
146	146	entered into, and the former law is continued in effect for that
147	147	purpose.
148	148	SECTION 10. This Act takes effect immediately if it
149	149	receives a vote of two-thirds of all the members elected to each
150	150	house, as provided by Section 39, Article III, Texas Constitution.
151	151	If this Act does not receive the vote necessary for immediate
152	152	effect, this Act takes effect September 1, 2023.