Texas 2023 - 88th Regular

Texas Senate Bill SB2013 Compare Versions

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11 S.B. No. 2013
22
33
44 AN ACT
55 relating to access to and the security of certain critical
66 infrastructure.
77 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
88 SECTION 1. Section 113.001, Business & Commerce Code, as
99 added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature,
1010 Regular Session, 2021, is amended by adding Subdivision (5) to read
1111 as follows:
1212 (5) "Affiliate," with respect to a company entering
1313 into an agreement in which the critical infrastructure is electric
1414 grid equipment, has the meaning assigned by the protocols of the
1515 independent organization certified under Section 39.151, Utilities
1616 Code, for the ERCOT power region.
1717 SECTION 2. Subchapter F, Chapter 411, Government Code, is
1818 amended by adding Section 411.1183 to read as follows:
1919 Sec. 411.1183. ACCESS TO CRIMINAL HISTORY RECORD
2020 INFORMATION: INDEPENDENT ORGANIZATION CERTIFIED UNDER UTILITIES
2121 CODE. (a) An independent organization certified under Section
2222 39.151, Utilities Code, for security reasons is entitled to obtain
2323 from the department criminal history record information maintained
2424 by the department that relates to a person who has or is seeking
2525 employment at or access to the independent organization's systems
2626 that affect the security of the electric grid or any other
2727 background information maintained by the department that relates to
2828 the person that is considered necessary by the independent
2929 organization or required by the Public Utility Commission.
3030 (b) Information obtained from the department under this
3131 section may not be released or disclosed except:
3232 (1) as needed in protecting the security of the
3333 electric grid;
3434 (2) as authorized by a court order or a federal or
3535 state law or order; or
3636 (3) with the consent of the person who is the subject
3737 of the criminal history record information.
3838 SECTION 3. Section 2274.0101, Government Code, as added by
3939 Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular
4040 Session, 2021, is amended by amending Subdivision (5) and adding
4141 Subdivision (6) to read as follows:
4242 (5) "Governmental entity" means a state agency, a [or]
4343 political subdivision, or an independent organization certified
4444 under Section 39.151, Utilities Code, to perform a function
4545 described by Section 39.151(a), Utilities Code [of this state].
4646 (6) "Affiliate," with respect to a company entering
4747 into an agreement in which the critical infrastructure is electric
4848 grid equipment, has the meaning assigned by the protocols of the
4949 independent organization certified under Section 39.151, Utilities
5050 Code, for the ERCOT power region.
5151 SECTION 4. Section 39.151, Utilities Code, is amended by
5252 adding Subsection (g-7) to read as follows:
5353 (g-7) To maintain certification as an independent
5454 organization under this section, the organization must:
5555 (1) identify all employee positions in the
5656 organization that are critical to the security of the electric
5757 grid; and
5858 (2) before hiring a person for a position described by
5959 Subdivision (1), obtain from the Department of Public Safety or a
6060 private vendor criminal history record information relating to the
6161 prospective employee and any other background information
6262 considered necessary by the independent organization or required by
6363 the commission.
6464 SECTION 5. Subchapter H, Chapter 39, Utilities Code, is
6565 amended by adding Section 39.360 to read as follows:
6666 Sec. 39.360. TRANSACTIONS WITH CERTAIN FOREIGN-OWNED
6767 COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE. (a) In this
6868 section, "company" and "critical infrastructure" have the meanings
6969 assigned by Section 113.001, Business & Commerce Code, as added by
7070 Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular
7171 Session, 2021.
7272 (b) An independent organization certified under Section
7373 39.151 may not register a business entity or maintain the
7474 registration of a business entity to operate in the power region for
7575 which the independent organization is certified unless the business
7676 entity attests that the entity complies with Chapter 113, Business &
7777 Commerce Code, as added by Chapter 975 (S.B. 2116), Acts of the
7878 87th Legislature, Regular Session, 2021.
7979 (c) An independent organization certified under Section
8080 39.151 shall require as a condition of operating in the power region
8181 for which the independent organization is certified that a business
8282 entity report to the independent organization the purchase of any
8383 critical electric grid equipment or service from a company
8484 described by Section 113.002(a)(2), Business & Commerce Code, as
8585 added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature,
8686 Regular Session, 2021.
8787 (d) For each purchase reported by a business entity under
8888 Subsection (c), the business entity shall submit an attestation to
8989 the independent organization that the purchase will not result in
9090 access to or control of its critical electric grid equipment by a
9191 company described by Section 113.002(a)(2), Business & Commerce
9292 Code, as added by Chapter 975 (S.B. 2116), Acts of the 87th
9393 Legislature, Regular Session, 2021, excluding access specifically
9494 allowed by the business entity for product warranty and support
9595 purposes.
9696 (e) Notwithstanding any other law, an independent
9797 organization certified under Section 39.151 may immediately
9898 suspend or terminate a company's registration or access to any of
9999 the independent organization's systems if the independent
100100 organization has a reasonable suspicion that the company meets any
101101 of the criteria described by Section 2274.0102(a)(2), Government
102102 Code, as added by Chapter 975 (S.B. 2116), Acts of the 87th
103103 Legislature, Regular Session, 2021.
104104 (f) A contractual provision that limits or contradicts
105105 Subsection (e) is contrary to public policy and is unenforceable
106106 and void.
107107 (g) An independent organization certified under Section
108108 39.151 may adopt guidelines or procedures relating to the
109109 requirements in this section, including the qualification of
110110 electric grid equipment or services as critical.
111111 (h) The commission shall adopt any rules necessary to
112112 administer this section or authorize an independent organization to
113113 carry out a duty imposed by this section.
114114 (i) The attorney general may conduct periodic audits of the
115115 attestations required by Subsection (d) and may prioritize the
116116 audits as necessary to protect critical infrastructure.
117117 SECTION 6. The changes made by this Act to Chapter 113,
118118 Business & Commerce Code, and Chapter 2274, Government Code, apply
119119 only to a contract or agreement entered into on or after the
120120 effective date of this Act.
121121 SECTION 7. (a) For the purposes of Section 39.360(c),
122122 Utilities Code, as added by this Act, a business entity operating in
123123 a power region on the effective date of this Act shall report to the
124124 independent organization certified for that power region under
125125 Section 39.151, Utilities Code, any purchase made within the five
126126 years preceding the effective date of this Act.
127127 (b) For any past purchase reported by a business entity as
128128 described by Subsection (a) of this section, the business entity
129129 shall take reasonable and necessary actions to mitigate access to
130130 or control of its critical electric grid equipment by a company
131131 described by Section 113.002(a)(2), Business & Commerce Code, as
132132 added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature,
133133 Regular Session, 2021, excluding access specifically allowed by the
134134 business entity for product warranty and support purposes, and
135135 report those actions to the independent organization.
136136 SECTION 8. It is the intent of the 88th Legislature, Regular
137137 Session, 2023, that the amendments made by this Act be harmonized
138138 with another Act of the 88th Legislature, Regular Session, 2023,
139139 relating to nonsubstantive additions to and corrections in enacted
140140 codes.
141141 SECTION 9. This Act takes effect immediately if it receives
142142 a vote of two-thirds of all the members elected to each house, as
143143 provided by Section 39, Article III, Texas Constitution. If this
144144 Act does not receive the vote necessary for immediate effect, this
145145 Act takes effect September 1, 2023.
146146 ______________________________ ______________________________
147147 President of the Senate Speaker of the House
148148 I hereby certify that S.B. No. 2013 passed the Senate on
149149 April 4, 2023, by the following vote: Yeas 31, Nays 0; and that
150150 the Senate concurred in House amendment on May 25, 2023, by the
151151 following vote: Yeas 31, Nays 0.
152152 ______________________________
153153 Secretary of the Senate
154154 I hereby certify that S.B. No. 2013 passed the House, with
155155 amendment, on May 23, 2023, by the following vote: Yeas 142,
156156 Nays 1, one present not voting.
157157 ______________________________
158158 Chief Clerk of the House
159159 Approved:
160160 ______________________________
161161 Date
162162 ______________________________
163163 Governor