| 1 | 1 | | By: Campbell, Parker S.B. No. 552 |
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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 prohibiting contracts or other agreements with certain |
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| 7 | 7 | | foreign-owned companies in connection with agricultural land. |
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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. Chapter 113, Business & Commerce Code, as added |
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| 10 | 10 | | by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular |
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| 11 | 11 | | Session, 2021, is amended to read as follows: |
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| 12 | 12 | | CHAPTER 113. PROHIBITION ON AGREEMENTS WITH CERTAIN FOREIGN-OWNED |
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| 13 | 13 | | COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE AND |
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| 14 | 14 | | AGRICULTURAL LAND |
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| 15 | 15 | | Sec. 113.001. DEFINITIONS. In this chapter: |
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| 16 | 16 | | (1) "Agricultural land" means land that qualifies for |
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| 17 | 17 | | tax appraisal under Subchapter C or D, Chapter 23, Tax Code. |
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| 18 | 18 | | (1-a) "Company" means a sole proprietorship, |
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| 19 | 19 | | organization, association, corporation, partnership, joint |
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| 20 | 20 | | venture, limited partnership, limited liability partnership, or |
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| 21 | 21 | | limited liability company, including a wholly owned subsidiary, |
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| 22 | 22 | | majority-owned subsidiary, parent company, or affiliate of those |
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| 23 | 23 | | entities or business associations, that exists to make a profit. |
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| 24 | 24 | | (2) "Critical infrastructure" means a communication |
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| 25 | 25 | | infrastructure system, cybersecurity system, electric grid, |
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| 26 | 26 | | hazardous waste treatment system, or water treatment facility. |
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| 27 | 27 | | (3) "Cybersecurity" means the measures taken to |
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| 28 | 28 | | protect a computer, computer network, computer system, or other |
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| 29 | 29 | | technology infrastructure against unauthorized use or access. |
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| 30 | 30 | | (4) "Designated country" means a country designated by |
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| 31 | 31 | | the governor as a threat to critical infrastructure or agricultural |
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| 32 | 32 | | land under Section 113.003. |
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| 33 | 33 | | Sec. 113.002. PROHIBITED ACCESS TO CRITICAL INFRASTRUCTURE |
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| 34 | 34 | | AND AGRICULTURAL LAND. (a) A business entity or individual may not |
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| 35 | 35 | | enter into an agreement relating to agricultural land in this state |
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| 36 | 36 | | with individuals who are citizens of China, Iran, North Korea, |
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| 37 | 37 | | Russia, or a designated country. |
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| 38 | 38 | | (b) A business entity may not enter into an agreement |
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| 39 | 39 | | relating to critical infrastructure or agricultural land in this |
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| 40 | 40 | | state with a company: |
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| 41 | 41 | | (1) if, under the agreement, the company would be |
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| 42 | 42 | | granted direct or remote access to or control of critical |
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| 43 | 43 | | infrastructure or agricultural land in this state, excluding access |
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| 44 | 44 | | specifically allowed by the business entity for product warranty |
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| 45 | 45 | | and support purposes; and |
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| 46 | 46 | | (2) if the business entity knows that the company is: |
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| 47 | 47 | | (A) owned by or the majority of stock or other |
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| 48 | 48 | | ownership interest of the company is held or controlled by: |
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| 49 | 49 | | (i) individuals who are citizens of China, |
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| 50 | 50 | | Iran, North Korea, Russia, or a designated country; or |
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| 51 | 51 | | (ii) a company or other entity, including a |
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| 52 | 52 | | governmental entity, that is owned or controlled by citizens of or |
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| 53 | 53 | | is directly controlled by the government of China, Iran, North |
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| 54 | 54 | | Korea, Russia, or a designated country; or |
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| 55 | 55 | | (B) headquartered in China, Iran, North Korea, |
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| 56 | 56 | | Russia, or a designated country. |
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| 57 | 57 | | (b) The prohibition described by Subsection (a) applies |
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| 58 | 58 | | regardless of whether: |
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| 59 | 59 | | (1) the company's or its parent company's securities |
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| 60 | 60 | | are publicly traded; or |
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| 61 | 61 | | (2) the company or its parent company is listed on a |
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| 62 | 62 | | public stock exchange as: |
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| 63 | 63 | | (A) a Chinese, Iranian, North Korean, or Russian |
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| 64 | 64 | | company; or |
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| 65 | 65 | | (B) a company of a designated country. |
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| 66 | 66 | | Sec. 113.003. DESIGNATION OF COUNTRY AS THREAT TO CRITICAL |
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| 67 | 67 | | INFRASTRUCTURE OR AGRICULTURAL LAND. (a) The governor, after |
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| 68 | 68 | | consultation with the public safety director of the Department of |
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| 69 | 69 | | Public Safety, may designate a country as a threat to critical |
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| 70 | 70 | | infrastructure or agricultural land for purposes of this chapter. |
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| 71 | 71 | | (b) The governor shall consult the Homeland Security |
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| 72 | 72 | | Council, established under Subchapter B, Chapter 421, Government |
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| 73 | 73 | | Code, to assess a threat to critical infrastructure or agricultural |
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| 74 | 74 | | land for purposes of making a designation under this section. |
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| 75 | 75 | | SECTION 2. This Act takes effect September 1, 2023. |
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