Texas House Bill HB4438

Texas 2023 - 88th Regular

• Filed: 3/9/23

Caption

Relating to access to and the security of certain critical infrastructure.

Impact

The provisions outlined in HB4438 amend various sections of the Business and Commerce Code and the Government Code. This includes requiring businesses to attest compliance with specified security measures before they can operate within the power region. Additionally, the bill allows independent organizations to obtain criminal history records for prospective employees working with the electric grid, thereby adding a layer of scrutiny designed to protect Texas's energy infrastructure. The implications could extend to operational costs as companies may need to invest in security protocols and compliance measures.

Summary

House Bill 4438 focuses on enhancing the security of critical infrastructure in Texas, particularly concerning electric grid equipment. The bill mandates additional requirements for companies operating in this sector, especially those with foreign ownership, to ensure that their operations do not jeopardize the security of the electric grid. It specifies that independent organizations responsible for overseeing these operations must evaluate and approve applications from businesses, ensuring they take reasonable measures to mitigate risks associated with remote access to critical infrastructure.

Sentiment

The sentiment surrounding HB4438 appears largely supportive among legislators who advocate for heightened security measures in the face of potential threats to critical infrastructure. Many view the bill as a necessary step in safeguarding state resources from foreign influence and potential cyber threats. However, there may be concerns raised by industry stakeholders regarding the feasibility and cost of compliance with new regulations, suggesting a potential divide in opinion among those directly affected by the bill.

Contention

Notable points of contention may arise around the bill's emphasis on foreign-owned companies, which could be seen as discriminatory or overly restrictive within the business community. Critics might argue that such regulations could deter investment or complicate operational frameworks for businesses that provide essential services. The potential implications of requiring criminal history checks could also raise ethical questions regarding privacy and employment practices within the industry.

Texas Constitutional Statutes Affected

Utilities Code

• Chapter 39. Restructuring Of Electric Utility Industry
  • Section: 151
  • Section: 360

Government Code

• Chapter 411. Department Of Public Safety Of The State Of Texas
  • Section: 1183

• Chapter 2274. Prohibition On Contracts With Companies That Discriminate Against Firearm And Ammunition Industries
  • Section: New Section