Texas 2023 - 88th Regular

Texas House Bill HB3399 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R9488 RDS-F
2	2	By: Paul H.B. No. 3399
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to governmental contracts with companies that engage in
8	8	certain economic boycotts.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 2274, Government Code, as added by
11	11	Chapter 529 (S.B. 13), Acts of the 87th Legislature, Regular
12	12	Session, 2021, is amended to read as follows:
13	13	CHAPTER 2274. PROHIBITION ON CONTRACTS WITH COMPANIES ENGAGING IN
14	14	CERTAIN ECONOMIC BOYCOTTS [BOYCOTTING CERTAIN ENERGY COMPANIES]
15	15	Sec. 2274.001. DEFINITIONS. In this chapter:
16	16	(1) ["Boycott energy company" has the meaning assigned
17	17	by Section 809.001.]
18	18	[(2)] "Company" has the meaning assigned by Section
19	19	809.001, except that the term does not include a sole
20	20	proprietorship.
21	21	(2) "Economic boycott" means, without an ordinary
22	22	business purpose, refusing to deal with, terminating business
23	23	activities with, or otherwise taking any action that is intended to
24	24	penalize, inflict economic harm on, limit commercial relations
25	25	with, or limit the activities of a company because the company,
26	26	without violating a federal or state law:
27	27	(A) engages in the exploration, production,
28	28	utilization, transportation, sale, or manufacturing of fossil
29	29	fuel-based energy, timber, mining, or agriculture and does not
30	30	commit or pledge to meet environmental standards beyond applicable
31	31	federal and state law;
32	32	(B) does not meet, is not expected to meet, or
33	33	does not commit to meeting:
34	34	(i) environmental standards or disclosure
35	35	criteria, including disclosure criteria relating to the
36	36	elimination, reduction, or offsetting of greenhouse gas emissions;
37	37	or
38	38	(ii) corporate board, employee
39	39	composition, compensation, or disclosure criteria that
40	40	incorporates diversity, equity, and inclusion standards; or
41	41	(C) does business with a company described by
42	42	Paragraph (A) or (B).
43	43	(3) "Governmental entity" has the meaning assigned by
44	44	Section 2251.001.
45	45	Sec. 2274.002. PROVISION REQUIRED IN CONTRACT. (a) This
46	46	section applies only to a contract that:
47	47	(1) is between a governmental entity and a company
48	48	with 10 or more full-time employees; and
49	49	(2) has a value of $100,000 or more that is to be paid
50	50	wholly or partly from public funds of the governmental entity.
51	51	(b) Except as provided by Subsection (c), a governmental
52	52	entity may not enter into a contract with a company for goods or
53	53	services unless the contract contains a written verification from
54	54	the company that it:
55	55	(1) does not engage in an economic boycott [energy
56	56	companies]; and
57	57	(2) will not engage in an economic boycott [energy
58	58	companies] during the term of the contract.
59	59	(c) Subsection (b) does not apply to a governmental entity
60	60	that determines the requirements of Subsection (b):
61	61	(1) are inconsistent with the governmental entity's
62	62	constitutional or statutory duties related to the issuance,
63	63	incurrence, or management of debt obligations or the deposit,
64	64	custody, management, borrowing, or investment of funds; or
65	65	(2) prevent the governmental entity from obtaining
66	66	necessary goods and services in an economically practical manner.
67	67	SECTION 2. The changes in law made by this Act apply only to
68	68	a contract entered into on or after the effective date of this Act.
69	69	A contract entered into before that date is governed by the law in
70	70	effect on the date the contract was entered into, and the former law
71	71	is continued in effect for that purpose.
72	72	SECTION 3. This Act takes effect September 1, 2023.