1 | 1 | | S.B. No. 2013 |
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2 | 2 | | |
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3 | 3 | | |
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4 | 4 | | AN ACT |
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5 | 5 | | relating to access to and the security of certain critical |
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6 | 6 | | infrastructure. |
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7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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8 | 8 | | SECTION 1. Section 113.001, Business & Commerce Code, as |
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9 | 9 | | added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, |
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10 | 10 | | Regular Session, 2021, is amended by adding Subdivision (5) to read |
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11 | 11 | | as follows: |
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12 | 12 | | (5) "Affiliate," with respect to a company entering |
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13 | 13 | | into an agreement in which the critical infrastructure is electric |
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14 | 14 | | grid equipment, has the meaning assigned by the protocols of the |
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15 | 15 | | independent organization certified under Section 39.151, Utilities |
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16 | 16 | | Code, for the ERCOT power region. |
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17 | 17 | | SECTION 2. Subchapter F, Chapter 411, Government Code, is |
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18 | 18 | | amended by adding Section 411.1183 to read as follows: |
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19 | 19 | | Sec. 411.1183. ACCESS TO CRIMINAL HISTORY RECORD |
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20 | 20 | | INFORMATION: INDEPENDENT ORGANIZATION CERTIFIED UNDER UTILITIES |
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21 | 21 | | CODE. (a) An independent organization certified under Section |
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22 | 22 | | 39.151, Utilities Code, for security reasons is entitled to obtain |
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23 | 23 | | from the department criminal history record information maintained |
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24 | 24 | | by the department that relates to a person who has or is seeking |
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25 | 25 | | employment at or access to the independent organization's systems |
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26 | 26 | | that affect the security of the electric grid or any other |
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27 | 27 | | background information maintained by the department that relates to |
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28 | 28 | | the person that is considered necessary by the independent |
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29 | 29 | | organization or required by the Public Utility Commission. |
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30 | 30 | | (b) Information obtained from the department under this |
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31 | 31 | | section may not be released or disclosed except: |
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32 | 32 | | (1) as needed in protecting the security of the |
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33 | 33 | | electric grid; |
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34 | 34 | | (2) as authorized by a court order or a federal or |
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35 | 35 | | state law or order; or |
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36 | 36 | | (3) with the consent of the person who is the subject |
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37 | 37 | | of the criminal history record information. |
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38 | 38 | | SECTION 3. Section 2274.0101, Government Code, as added by |
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39 | 39 | | Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular |
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40 | 40 | | Session, 2021, is amended by amending Subdivision (5) and adding |
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41 | 41 | | Subdivision (6) to read as follows: |
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42 | 42 | | (5) "Governmental entity" means a state agency, a [or] |
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43 | 43 | | political subdivision, or an independent organization certified |
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44 | 44 | | under Section 39.151, Utilities Code, to perform a function |
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45 | 45 | | described by Section 39.151(a), Utilities Code [of this state]. |
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46 | 46 | | (6) "Affiliate," with respect to a company entering |
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47 | 47 | | into an agreement in which the critical infrastructure is electric |
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48 | 48 | | grid equipment, has the meaning assigned by the protocols of the |
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49 | 49 | | independent organization certified under Section 39.151, Utilities |
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50 | 50 | | Code, for the ERCOT power region. |
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51 | 51 | | SECTION 4. Section 39.151, Utilities Code, is amended by |
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52 | 52 | | adding Subsection (g-7) to read as follows: |
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53 | 53 | | (g-7) To maintain certification as an independent |
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54 | 54 | | organization under this section, the organization must: |
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55 | 55 | | (1) identify all employee positions in the |
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56 | 56 | | organization that are critical to the security of the electric |
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57 | 57 | | grid; and |
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58 | 58 | | (2) before hiring a person for a position described by |
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59 | 59 | | Subdivision (1), obtain from the Department of Public Safety or a |
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60 | 60 | | private vendor criminal history record information relating to the |
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61 | 61 | | prospective employee and any other background information |
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62 | 62 | | considered necessary by the independent organization or required by |
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63 | 63 | | the commission. |
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64 | 64 | | SECTION 5. Subchapter H, Chapter 39, Utilities Code, is |
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65 | 65 | | amended by adding Section 39.360 to read as follows: |
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66 | 66 | | Sec. 39.360. TRANSACTIONS WITH CERTAIN FOREIGN-OWNED |
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67 | 67 | | COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE. (a) In this |
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68 | 68 | | section, "company" and "critical infrastructure" have the meanings |
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69 | 69 | | assigned by Section 113.001, Business & Commerce Code, as added by |
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70 | 70 | | Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular |
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71 | 71 | | Session, 2021. |
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72 | 72 | | (b) An independent organization certified under Section |
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73 | 73 | | 39.151 may not register a business entity or maintain the |
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74 | 74 | | registration of a business entity to operate in the power region for |
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75 | 75 | | which the independent organization is certified unless the business |
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76 | 76 | | entity attests that the entity complies with Chapter 113, Business & |
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77 | 77 | | Commerce Code, as added by Chapter 975 (S.B. 2116), Acts of the |
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78 | 78 | | 87th Legislature, Regular Session, 2021. |
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79 | 79 | | (c) An independent organization certified under Section |
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80 | 80 | | 39.151 shall require as a condition of operating in the power region |
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81 | 81 | | for which the independent organization is certified that a business |
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82 | 82 | | entity report to the independent organization the purchase of any |
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83 | 83 | | critical electric grid equipment or service from a company |
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84 | 84 | | described by Section 113.002(a)(2), Business & Commerce Code, as |
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85 | 85 | | added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, |
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86 | 86 | | Regular Session, 2021. |
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87 | 87 | | (d) For each purchase reported by a business entity under |
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88 | 88 | | Subsection (c), the business entity shall submit an attestation to |
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89 | 89 | | the independent organization that the purchase will not result in |
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90 | 90 | | access to or control of its critical electric grid equipment by a |
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91 | 91 | | company described by Section 113.002(a)(2), Business & Commerce |
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92 | 92 | | Code, as added by Chapter 975 (S.B. 2116), Acts of the 87th |
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93 | 93 | | Legislature, Regular Session, 2021, excluding access specifically |
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94 | 94 | | allowed by the business entity for product warranty and support |
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95 | 95 | | purposes. |
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96 | 96 | | (e) Notwithstanding any other law, an independent |
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97 | 97 | | organization certified under Section 39.151 may immediately |
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98 | 98 | | suspend or terminate a company's registration or access to any of |
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99 | 99 | | the independent organization's systems if the independent |
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100 | 100 | | organization has a reasonable suspicion that the company meets any |
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101 | 101 | | of the criteria described by Section 2274.0102(a)(2), Government |
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102 | 102 | | Code, as added by Chapter 975 (S.B. 2116), Acts of the 87th |
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103 | 103 | | Legislature, Regular Session, 2021. |
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104 | 104 | | (f) A contractual provision that limits or contradicts |
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105 | 105 | | Subsection (e) is contrary to public policy and is unenforceable |
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106 | 106 | | and void. |
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107 | 107 | | (g) An independent organization certified under Section |
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108 | 108 | | 39.151 may adopt guidelines or procedures relating to the |
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109 | 109 | | requirements in this section, including the qualification of |
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110 | 110 | | electric grid equipment or services as critical. |
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111 | 111 | | (h) The commission shall adopt any rules necessary to |
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112 | 112 | | administer this section or authorize an independent organization to |
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113 | 113 | | carry out a duty imposed by this section. |
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114 | 114 | | (i) The attorney general may conduct periodic audits of the |
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115 | 115 | | attestations required by Subsection (d) and may prioritize the |
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116 | 116 | | audits as necessary to protect critical infrastructure. |
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117 | 117 | | SECTION 6. The changes made by this Act to Chapter 113, |
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118 | 118 | | Business & Commerce Code, and Chapter 2274, Government Code, apply |
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119 | 119 | | only to a contract or agreement entered into on or after the |
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120 | 120 | | effective date of this Act. |
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121 | 121 | | SECTION 7. (a) For the purposes of Section 39.360(c), |
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122 | 122 | | Utilities Code, as added by this Act, a business entity operating in |
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123 | 123 | | a power region on the effective date of this Act shall report to the |
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124 | 124 | | independent organization certified for that power region under |
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125 | 125 | | Section 39.151, Utilities Code, any purchase made within the five |
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126 | 126 | | years preceding the effective date of this Act. |
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127 | 127 | | (b) For any past purchase reported by a business entity as |
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128 | 128 | | described by Subsection (a) of this section, the business entity |
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129 | 129 | | shall take reasonable and necessary actions to mitigate access to |
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130 | 130 | | or control of its critical electric grid equipment by a company |
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131 | 131 | | described by Section 113.002(a)(2), Business & Commerce Code, as |
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132 | 132 | | added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, |
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133 | 133 | | Regular Session, 2021, excluding access specifically allowed by the |
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134 | 134 | | business entity for product warranty and support purposes, and |
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135 | 135 | | report those actions to the independent organization. |
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136 | 136 | | SECTION 8. It is the intent of the 88th Legislature, Regular |
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137 | 137 | | Session, 2023, that the amendments made by this Act be harmonized |
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138 | 138 | | with another Act of the 88th Legislature, Regular Session, 2023, |
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139 | 139 | | relating to nonsubstantive additions to and corrections in enacted |
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140 | 140 | | codes. |
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141 | 141 | | SECTION 9. This Act takes effect immediately if it receives |
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142 | 142 | | a vote of two-thirds of all the members elected to each house, as |
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143 | 143 | | provided by Section 39, Article III, Texas Constitution. If this |
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144 | 144 | | Act does not receive the vote necessary for immediate effect, this |
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145 | 145 | | Act takes effect September 1, 2023. |
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146 | 146 | | ______________________________ ______________________________ |
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147 | 147 | | President of the Senate Speaker of the House |
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148 | 148 | | I hereby certify that S.B. No. 2013 passed the Senate on |
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149 | 149 | | April 4, 2023, by the following vote: Yeas 31, Nays 0; and that |
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150 | 150 | | the Senate concurred in House amendment on May 25, 2023, by the |
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151 | 151 | | following vote: Yeas 31, Nays 0. |
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152 | 152 | | ______________________________ |
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153 | 153 | | Secretary of the Senate |
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154 | 154 | | I hereby certify that S.B. No. 2013 passed the House, with |
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155 | 155 | | amendment, on May 23, 2023, by the following vote: Yeas 142, |
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156 | 156 | | Nays 1, one present not voting. |
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157 | 157 | | ______________________________ |
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158 | 158 | | Chief Clerk of the House |
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159 | 159 | | Approved: |
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160 | 160 | | ______________________________ |
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161 | 161 | | Date |
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162 | 162 | | ______________________________ |
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163 | 163 | | Governor |
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