88R9488 RDS-F
By: Paul H.B. No. 3399
A BILL TO BE ENTITLED
AN ACT
relating to governmental contracts with companies that engage in
certain economic boycotts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 2274, Government Code, as added by
Chapter 529 (S.B. 13), Acts of the 87th Legislature, Regular
Session, 2021, is amended to read as follows:
CHAPTER 2274. PROHIBITION ON CONTRACTS WITH COMPANIES ENGAGING IN
CERTAIN ECONOMIC BOYCOTTS [BOYCOTTING CERTAIN ENERGY COMPANIES]
Sec. 2274.001. DEFINITIONS. In this chapter:
(1) ["Boycott energy company" has the meaning assigned
by Section 809.001.]
[(2)] "Company" has the meaning assigned by Section
809.001, except that the term does not include a sole
proprietorship.
(2) "Economic boycott" means, without an ordinary
business purpose, refusing to deal with, terminating business
activities with, or otherwise taking any action that is intended to
penalize, inflict economic harm on, limit commercial relations
with, or limit the activities of a company because the company,
without violating a federal or state law:
(A) engages in the exploration, production,
utilization, transportation, sale, or manufacturing of fossil
fuel-based energy, timber, mining, or agriculture and does not
commit or pledge to meet environmental standards beyond applicable
federal and state law;
(B) does not meet, is not expected to meet, or
does not commit to meeting:
(i) environmental standards or disclosure
criteria, including disclosure criteria relating to the
elimination, reduction, or offsetting of greenhouse gas emissions;
or
(ii) corporate board, employee
composition, compensation, or disclosure criteria that
incorporates diversity, equity, and inclusion standards; or
(C) does business with a company described by
Paragraph (A) or (B).
(3) "Governmental entity" has the meaning assigned by
Section 2251.001.
Sec. 2274.002. PROVISION REQUIRED IN CONTRACT. (a) This
section applies only to a contract that:
(1) is between a governmental entity and a company
with 10 or more full-time employees; and
(2) has a value of $100,000 or more that is to be paid
wholly or partly from public funds of the governmental entity.
(b) Except as provided by Subsection (c), 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:
(1) does not engage in an economic boycott [energy
companies]; and
(2) will not engage in an economic boycott [energy
companies] during the term of the contract.
(c) Subsection (b) does not apply to a governmental entity
that determines the requirements of Subsection (b):
(1) are inconsistent with the governmental entity's
constitutional or statutory duties related to the issuance,
incurrence, or management of debt obligations or the deposit,
custody, management, borrowing, or investment of funds; or
(2) prevent the governmental entity from obtaining
necessary goods and services in an economically practical manner.
SECTION 2. The changes in law made by this Act apply only to
a contract entered into on or after the effective date of this Act.
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.