By: Campbell, Parker S.B. No. 552
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting contracts or other agreements with certain
foreign-owned companies in connection with agricultural land.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 113, Business & Commerce Code, as added
by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular
Session, 2021, is amended to read as follows:
CHAPTER 113. PROHIBITION ON AGREEMENTS WITH CERTAIN FOREIGN-OWNED
COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE AND
AGRICULTURAL LAND
Sec. 113.001. DEFINITIONS. In this chapter:
(1) "Agricultural land" means land that qualifies for
tax appraisal under Subchapter C or D, Chapter 23, Tax Code.
(1-a) "Company" means a sole proprietorship,
organization, association, corporation, partnership, joint
venture, limited partnership, limited liability partnership, or
limited liability company, including a wholly owned subsidiary,
majority-owned subsidiary, parent company, or affiliate of those
entities or business associations, that exists to make a profit.
(2) "Critical infrastructure" means a communication
infrastructure system, cybersecurity system, electric grid,
hazardous waste treatment system, or water treatment facility.
(3) "Cybersecurity" means the measures taken to
protect a computer, computer network, computer system, or other
technology infrastructure against unauthorized use or access.
(4) "Designated country" means a country designated by
the governor as a threat to critical infrastructure or agricultural
land under Section 113.003.
Sec. 113.002. PROHIBITED ACCESS TO CRITICAL INFRASTRUCTURE
AND AGRICULTURAL LAND. (a) A business entity or individual may not
enter into an agreement relating to agricultural land in this state
with individuals who are citizens of China, Iran, North Korea,
Russia, or a designated country.
(b) A business entity may not enter into an agreement
relating to critical infrastructure or agricultural land in this
state with a company:
(1) if, under the agreement, the company would be
granted direct or remote access to or control of critical
infrastructure or agricultural land in this state, excluding access
specifically allowed by the business entity for product warranty
and support purposes; and
(2) if the business entity knows that the company is:
(A) owned by or the majority of stock or other
ownership interest of the company is held or controlled by:
(i) individuals who are citizens of China,
Iran, North Korea, Russia, or a designated country; or
(ii) a company or other entity, including a
governmental entity, that is owned or controlled by citizens of or
is directly controlled by the government of China, Iran, North
Korea, Russia, or a designated country; or
(B) headquartered in China, Iran, North Korea,
Russia, or a designated country.
(b) The prohibition described by Subsection (a) applies
regardless of whether:
(1) the company's or its parent company's securities
are publicly traded; or
(2) the company or its parent company is listed on a
public stock exchange as:
(A) a Chinese, Iranian, North Korean, or Russian
company; or
(B) a company of a designated country.
Sec. 113.003. DESIGNATION OF COUNTRY AS THREAT TO CRITICAL
INFRASTRUCTURE OR AGRICULTURAL LAND. (a) The governor, after
consultation with the public safety director of the Department of
Public Safety, may designate a country as a threat to critical
infrastructure or agricultural land for purposes of this chapter.
(b) The governor shall consult the Homeland Security
Council, established under Subchapter B, Chapter 421, Government
Code, to assess a threat to critical infrastructure or agricultural
land for purposes of making a designation under this section.
SECTION 2. This Act takes effect September 1, 2023.