| 1 | 1 | | By: Hughes, Kolkhorst S.B. No. 2530 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to contracts with and investments in companies that |
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| 7 | 7 | | boycott certain energy companies. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Sections 809.001(1) and (4), Government Code, |
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| 10 | 10 | | are amended to read as follows: |
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| 11 | 11 | | (1) "Boycott energy company" means, without an |
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| 12 | 12 | | ordinary business purpose, refusing to deal with, terminating |
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| 13 | 13 | | business activities with, or otherwise taking any action that is |
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| 14 | 14 | | intended to penalize, inflict economic harm on, or limit commercial |
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| 15 | 15 | | relations with a company because the company: |
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| 16 | 16 | | (A) engages in the exploration, production, |
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| 17 | 17 | | utilization, transportation, sale, or manufacturing of fossil |
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| 18 | 18 | | fuel-based energy and does not commit or pledge to meet |
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| 19 | 19 | | environmental standards beyond applicable federal and state law; |
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| 20 | 20 | | (B) engages in the exploration, production, |
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| 21 | 21 | | utilization, transportation, sale, or manufacturing of fossil |
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| 22 | 22 | | fuel-based energy; or |
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| 23 | 23 | | (C) [(B)] does business with a company described |
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| 24 | 24 | | by Paragraph (A) or (B). |
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| 25 | 25 | | (4) "Financial company" means a publicly traded: |
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| 26 | 26 | | (A) financial services or[,] banking company;[,] |
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| 27 | 27 | | or |
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| 28 | 28 | | (B) investment company, including a mutual fund |
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| 29 | 29 | | or exchange-traded fund. |
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| 30 | 30 | | SECTION 2. Section 809.101, Government Code, is amended to |
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| 31 | 31 | | read as follows: |
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| 32 | 32 | | Sec. 809.101. REPORT. (a) In this section, "affiliate" |
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| 33 | 33 | | means a person who controls, is controlled by, or is under common |
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| 34 | 34 | | control with another person. |
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| 35 | 35 | | (b) Not later than January 5 of each year, each state |
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| 36 | 36 | | governmental entity shall file a publicly available report with the |
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| 37 | 37 | | presiding officer of each house of the legislature, the |
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| 38 | 38 | | comptroller, and the attorney general that: |
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| 39 | 39 | | (1) identifies all: |
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| 40 | 40 | | (A) securities sold, redeemed, divested, or |
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| 41 | 41 | | withdrawn in compliance with Section 809.054; |
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| 42 | 42 | | (B) [(2) identifies all] prohibited investments |
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| 43 | 43 | | under Section 809.057; |
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| 44 | 44 | | (C) contracts with a listed financial company; |
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| 45 | 45 | | and |
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| 46 | 46 | | (D) contracts with an affiliate of a listed |
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| 47 | 47 | | financial services or banking company; and |
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| 48 | 48 | | (2) [(3)] summarizes any changes made under Section |
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| 49 | 49 | | 809.055. |
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| 50 | 50 | | SECTION 3. Chapter 809, Government Code, is amended by |
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| 51 | 51 | | adding Subchapter D to read as follows: |
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| 52 | 52 | | SUBCHAPTER D. CONTRACTS WITH COMPANIES BOYCOTTING CERTAIN ENERGY |
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| 53 | 53 | | COMPANIES |
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| 54 | 54 | | Sec. 809.151. PROVISION REQUIRED IN CONTRACT. (a) In |
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| 55 | 55 | | this section, "affiliate" has the meaning assigned by Section |
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| 56 | 56 | | 809.101. |
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| 57 | 57 | | (b) This section applies only to a contract that: |
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| 58 | 58 | | (1) is between a state governmental entity and a |
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| 59 | 59 | | company with 10 or more full-time employees; and |
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| 60 | 60 | | (2) has a value of $100,000 or more that is to be paid |
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| 61 | 61 | | wholly or partly from public funds of the state governmental |
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| 62 | 62 | | entity. |
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| 63 | 63 | | (c) Except as provided by Subsection (d), a state |
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| 64 | 64 | | governmental entity may not enter into a contract with a company |
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| 65 | 65 | | unless the contract contains a written verification from the |
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| 66 | 66 | | company that it: |
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| 67 | 67 | | (1) does not boycott energy companies; |
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| 68 | 68 | | (2) will not boycott energy companies during the term |
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| 69 | 69 | | of the contract; |
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| 70 | 70 | | (3) is not a listed financial company; and |
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| 71 | 71 | | (4) is not an affiliate of a listed financial services |
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| 72 | 72 | | or banking company. |
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| 73 | 73 | | (d) Subsection (c) does not apply to a state governmental |
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| 74 | 74 | | entity that determines the requirements of Subsection (c) are |
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| 75 | 75 | | inconsistent with the state governmental entity's constitutional |
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| 76 | 76 | | or statutory duties related to the issuance, incurrence, or |
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| 77 | 77 | | management of debt obligations or the deposit, custody, management, |
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| 78 | 78 | | borrowing, or investment of funds. |
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| 79 | 79 | | SECTION 4. Subchapter D, Chapter 809, Government Code, as |
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| 80 | 80 | | added by this Act, applies only to a contract entered into on or |
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| 81 | 81 | | after the effective date of this Act. A contract entered into |
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| 82 | 82 | | before that date is governed by the law in effect on the date the |
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| 83 | 83 | | contract was entered into, and the former law is continued in effect |
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| 84 | 84 | | for that purpose. |
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| 85 | 85 | | SECTION 5. This Act takes effect September 1, 2023. |
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