Texas 2023 - 88th Regular

Texas Senate Bill SB1817 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	By: Bettencourt, et al. S.B. No. 1817
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to investments in certain companies doing business in the
7	7	Russian Federation.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 2270.0001(9), Government Code, is
10	10	amended to read as follows:
11	11	(9) "Scrutinized company" means:
12	12	(A) a company that:
13	13	(i) engages in scrutinized business
14	14	operations described by Section 2270.0052; or
15	15	(ii) has been complicit in the Darfur
16	16	genocide during any preceding 20-month period;
17	17	(B) a company that engages in scrutinized
18	18	business operations described by Section 2270.0102; [and]
19	19	(C) a company that engages in scrutinized
20	20	business operations described by Section 2270.0152; and
21	21	(D) a company that engages in scrutinized
22	22	business operations described by Section 2270.0162.
23	23	SECTION 2. Section 2270.0002, Government Code, is amended
24	24	to read as follows:
25	25	Sec. 2270.0002. EXCEPTION. (a) Notwithstanding any other
26	26	law, a company that the United States government affirmatively
27	27	declares to be excluded from its federal sanctions regime relating
28	28	to Sudan, its federal sanctions regime relating to Iran, or any
29	29	federal sanctions regime relating to a designated foreign terrorist
30	30	organization is not subject to divestment or investment prohibition
31	31	under this chapter.
32	32	(b) Notwithstanding any other law, a company that complies
33	33	with the United States government federal sanctions regime relating
34	34	to the Russian Federation, including any exemption or federal
35	35	guidance, is not subject to divestment or investment prohibition
36	36	under this chapter.
37	37	SECTION 3. Chapter 2270, Government Code, is amended by
38	38	adding Subchapter D-1 to read as follows:
39	39	SUBCHAPTER D-1. GENERAL PROVISIONS RELATING TO INVESTMENTS IN
40	40	RUSSIAN FEDERATION
41	41	Sec. 2270.0161. DEFINITION. In this subchapter, "business
42	42	operations" means engaging in commerce in any form in the Russian
43	43	Federation, including by acquiring, developing, maintaining,
44	44	owning, selling, possessing, leasing, or operating equipment,
45	45	facilities, personnel, products, services, personal property, real
46	46	property, or any other apparatus of business or commerce.
47	47	Sec. 2270.0162. SCRUTINIZED BUSINESS OPERATIONS IN RUSSIAN
48	48	FEDERATION. A company engages in scrutinized business operations
49	49	in the Russian Federation if the company has business operations
50	50	that involve contracts with or providing supplies or services to
51	51	the government of the Russian Federation, a company in which the
52	52	government of the Russian Federation has any direct or indirect
53	53	equity share, a consortium or project commissioned by the
54	54	government of the Russian Federation, or a company involved in a
55	55	consortium or project commissioned by the government of the Russian
56	56	Federation.
57	57	SECTION 4. Section 2270.0201, Government Code, is amended
58	58	by amending Subsections (a) and (b) and adding Subsection (b-1) to
59	59	read as follows:
60	60	(a) The comptroller shall prepare and maintain a list of all
61	61	scrutinized companies. The list must be categorized according to:
62	62	(1) companies that are scrutinized companies under
63	63	Section 2270.0001(9)(A);
64	64	(2) companies that are scrutinized companies under
65	65	Section 2270.0001(9)(B); [and]
66	66	(3) companies that are scrutinized companies under
67	67	Section 2270.0001(9)(C); and
68	68	(4) companies that are scrutinized companies under
69	69	Section 2270.0001(9)(D).
70	70	(b) In maintaining the list of scrutinized companies under
71	71	Subsection (a), the comptroller may review and rely, as appropriate
72	72	in the comptroller's judgment, on publicly available information
73	73	regarding companies with business operations in Sudan, in Iran,
74	74	[or] with designated foreign terrorist organizations, or in the
75	75	Russian Federation, as applicable, including information provided
76	76	by the state, nonprofit organizations, research firms,
77	77	international organizations, and governmental entities.
78	78	(b-1) The governor shall periodically consult with the
79	79	Homeland Security Council, established under Subchapter B, Chapter
80	80	421, to review whether a company that is a scrutinized company under
81	81	Section 2270.0001(9)(D) should be included or continue to be
82	82	included on the list of scrutinized companies maintained under this
83	83	section and may, after consulting with the council, direct the
84	84	comptroller to remove a company from the list.
85	85	SECTION 5. Section 2270.0203, Government Code, is amended
86	86	to read as follows:
87	87	Sec. 2270.0203. NOTICE TO LISTED COMPANY ENGAGED IN
88	88	INACTIVE BUSINESS OPERATIONS. For each listed company identified
89	89	under Section 2270.0202 that is engaged in only inactive
90	90	scrutinized business operations, the investing entity shall send a
91	91	written notice informing the company of this chapter and
92	92	encouraging the company to continue to refrain from initiating
93	93	active business operations in Sudan, in Iran, [and] with designated
94	94	foreign terrorist organizations, and in the Russian Federation
95	95	until it is able to avoid being considered a listed company. The
96	96	investing entity shall continue the correspondence as the entity
97	97	considers necessary, but is not required to initiate correspondence
98	98	more often than semiannually.
99	99	SECTION 6. Section 2270.0204(b), Government Code, is
100	100	amended to read as follows:
101	101	(b) The notice shall offer the company the opportunity to
102	102	clarify its Sudan-related, Iran-related, [or] designated foreign
103	103	terrorist organization-related, or Russian Federation-related
104	104	activities, as applicable, and shall encourage the company, not
105	105	later than the 90th day after the date the company receives notice
106	106	under this section, to either cease all scrutinized business
107	107	operations as described by Sections 2270.0052, 2270.0102, [and]
108	108	2270.0152, and 2270.0162, or convert such operations to inactive
109	109	business operations in order to avoid qualifying for divestment by
110	110	investing entities.
111	111	SECTION 7. Not later than the 180th day after the effective
112	112	date of this Act, the comptroller of public accounts shall include
113	113	the companies described by Section 2270.0201(a)(4), Government
114	114	Code, as added by this Act, on the list under Section 2270.0201(a),
115	115	Government Code.
116	116	SECTION 8. This Act takes effect immediately if it receives
117	117	a vote of two-thirds of all the members elected to each house, as
118	118	provided by Section 39, Article III, Texas Constitution. If this
119	119	Act does not receive the vote necessary for immediate effect, this
120	120	Act takes effect September 1, 2023.