Texas 2023 - 88th Regular

Texas Senate Bill SB620 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R4253 RDS-D
2	2	By: Campbell S.B. No. 620
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to prohibiting the investment of state funds in certain
8	8	companies doing business with significant foreign narcotics
9	9	traffickers.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 2270.0001, Government Code, is amended
12	12	by adding Subdivision (3-a) and amending Subdivision (9) to read as
13	13	follows:
14	14	(3-a) "Designated significant foreign narcotics
15	15	trafficker" means a person listed by the comptroller under Section
16	16	2270.0163.
17	17	(9) "Scrutinized company" means:
18	18	(A) a company that:
19	19	(i) engages in scrutinized business
20	20	operations described by Section 2270.0052; or
21	21	(ii) has been complicit in the Darfur
22	22	genocide during any preceding 20-month period;
23	23	(B) a company that engages in scrutinized
24	24	business operations described by Section 2270.0102; [and]
25	25	(C) a company that engages in scrutinized
26	26	business operations described by Section 2270.0152; and
27	27	(D) a company that engages in scrutinized
28	28	business operations described by Section 2270.0162.
29	29	SECTION 2. Section 2270.0002, Government Code, is amended
30	30	to read as follows:
31	31	Sec. 2270.0002. EXCEPTION. Notwithstanding any other law,
32	32	a company that the United States government affirmatively declares
33	33	to be excluded from its federal sanctions regime relating to Sudan,
34	34	its federal sanctions regime relating to Iran, [or] any federal
35	35	sanctions regime relating to a designated foreign terrorist
36	36	organization, or any federal sanctions regime relating to a
37	37	significant foreign narcotics trafficker is not subject to
38	38	divestment or investment prohibition under this chapter.
39	39	SECTION 3. Chapter 2270, Government Code, is amended by
40	40	adding Subchapter D-1 to read as follows:
41	41	SUBCHAPTER D-1. GENERAL PROVISIONS RELATING TO INVESTMENTS IN
42	42	CERTAIN SIGNIFICANT FOREIGN NARCOTICS TRAFFICKERS
43	43	Sec. 2270.0161. BUSINESS OPERATIONS DEFINED. In this
44	44	subchapter, "business operations" has the meaning assigned by
45	45	Section 2270.0151.
46	46	Sec. 2270.0162. SCRUTINIZED BUSINESS OPERATIONS WITH
47	47	DESIGNATED SIGNIFICANT FOREIGN NARCOTICS TRAFFICKER. A company
48	48	engages in scrutinized business operations with a designated
49	49	significant foreign narcotics trafficker if the company has
50	50	business operations that involve:
51	51	(1) a contract with or providing supplies or services
52	52	to a designated significant foreign narcotics trafficker;
53	53	(2) a company in which a designated significant
54	54	foreign narcotics trafficker has any direct or indirect equity
55	55	share;
56	56	(3) a consortium or project commissioned by a
57	57	designated significant foreign narcotics trafficker; or
58	58	(4) a company involved in a consortium or project
59	59	commissioned by a designated significant foreign narcotics
60	60	trafficker.
61	61	Sec. 2270.0163. LIST OF DESIGNATED SIGNIFICANT FOREIGN
62	62	NARCOTICS TRAFFICKERS. (a) The comptroller shall prepare and
63	63	maintain a list of designated significant foreign narcotics
64	64	traffickers that is made up of significant foreign narcotics
65	65	traffickers and other related persons designated by the president
66	66	of the United States or the United States secretary of the treasury
67	67	under 21 U.S.C. Sections 1903-1904.
68	68	(b) The comptroller shall maintain the list by updating the
69	69	list as necessary to reflect changes in the persons designated as
70	70	significant foreign narcotics traffickers and other related
71	71	persons as described by Subsection (a).
72	72	(c) Not later than the 30th day after the date the
73	73	comptroller first prepares or updates the list of designated
74	74	significant foreign narcotics traffickers as required by this
75	75	section, the comptroller shall:
76	76	(1) file the list with the presiding officer of each
77	77	house of the legislature and the attorney general; and
78	78	(2) post the list on the comptroller's Internet
79	79	website.
80	80	SECTION 4. Sections 2270.0201(a) and (b), Government Code,
81	81	are amended to read as follows:
82	82	(a) The comptroller shall prepare and maintain a list of all
83	83	scrutinized companies. The list must be categorized according to:
84	84	(1) companies that are scrutinized companies under
85	85	Section 2270.0001(9)(A);
86	86	(2) companies that are scrutinized companies under
87	87	Section 2270.0001(9)(B); [and]
88	88	(3) companies that are scrutinized companies under
89	89	Section 2270.0001(9)(C); and
90	90	(4) companies that are scrutinized companies under
91	91	Section 2270.0001(9)(D).
92	92	(b) In maintaining the list of scrutinized companies under
93	93	Subsection (a), the comptroller may review and rely, as appropriate
94	94	in the comptroller's judgment, on publicly available information
95	95	regarding companies with business operations in Sudan, in Iran,
96	96	[or] with designated foreign terrorist organizations, or with
97	97	designated significant foreign narcotics traffickers, as
98	98	applicable, including information provided by the state, nonprofit
99	99	organizations, research firms, international organizations, and
100	100	governmental entities.
101	101	SECTION 5. Section 2270.0203, Government Code, is amended
102	102	to read as follows:
103	103	Sec. 2270.0203. NOTICE TO LISTED COMPANY ENGAGED IN
104	104	INACTIVE BUSINESS OPERATIONS. For each listed company identified
105	105	under Section 2270.0202 that is engaged in only inactive
106	106	scrutinized business operations, the investing entity shall send a
107	107	written notice informing the company of this chapter and
108	108	encouraging the company to continue to refrain from initiating
109	109	active business operations in Sudan, in Iran, [and] with designated
110	110	foreign terrorist organizations, and with designated significant
111	111	foreign narcotics traffickers until it is able to avoid being
112	112	considered a listed company. The investing entity shall continue
113	113	the correspondence as the entity considers necessary, but is not
114	114	required to initiate correspondence more often than semiannually.
115	115	SECTION 6. Section 2270.0204(b), Government Code, is
116	116	amended to read as follows:
117	117	(b) The notice shall offer the company the opportunity to
118	118	clarify its Sudan-related, Iran-related, [or] designated foreign
119	119	terrorist organization-related, or designated significant foreign
120	120	narcotics trafficker-related activities, as applicable, and shall
121	121	encourage the company, not later than the 90th day after the date
122	122	the company receives notice under this section, to either cease all
123	123	scrutinized business operations as described by Sections
124	124	2270.0052, 2270.0102, [and] 2270.0152, and 2270.0162, or convert
125	125	such operations to inactive business operations in order to avoid
126	126	qualifying for divestment by investing entities.
127	127	SECTION 7. Not later than December 1, 2023, the comptroller
128	128	of public accounts shall prepare the initial list of designated
129	129	significant foreign narcotics traffickers as required by Section
130	130	2270.0163, Government Code, as added by this Act.
131	131	SECTION 8. Not later than January 1, 2024, the comptroller
132	132	shall:
133	133	(1) prepare an updated list of scrutinized companies
134	134	required by Section 2270.0201, Government Code, as amended by this
135	135	Act, that includes companies that are scrutinized companies
136	136	described by Section 2270.0001(9)(D), Government Code, as added by
137	137	this Act;
138	138	(2) provide the list to each investing entity, as
139	139	defined by Section 2270.0001(7), Government Code; and
140	140	(3) post the list on the comptroller's Internet
141	141	website.
142	142	SECTION 9. This Act takes effect September 1, 2023.