88R4253 RDS-D
By: Campbell S.B. No. 620
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting the investment of state funds in certain
companies doing business with significant foreign narcotics
traffickers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2270.0001, Government Code, is amended
by adding Subdivision (3-a) and amending Subdivision (9) to read as
follows:
(3-a) "Designated significant foreign narcotics
trafficker" means a person listed by the comptroller under Section
2270.0163.
(9) "Scrutinized company" means:
(A) a company that:
(i) engages in scrutinized business
operations described by Section 2270.0052; or
(ii) has been complicit in the Darfur
genocide during any preceding 20-month period;
(B) a company that engages in scrutinized
business operations described by Section 2270.0102; [and]
(C) a company that engages in scrutinized
business operations described by Section 2270.0152; and
(D) a company that engages in scrutinized
business operations described by Section 2270.0162.
SECTION 2. Section 2270.0002, Government Code, is amended
to read as follows:
Sec. 2270.0002. EXCEPTION. Notwithstanding any other law,
a company that the United States government affirmatively declares
to be excluded from its federal sanctions regime relating to Sudan,
its federal sanctions regime relating to Iran, [or] any federal
sanctions regime relating to a designated foreign terrorist
organization, or any federal sanctions regime relating to a
significant foreign narcotics trafficker is not subject to
divestment or investment prohibition under this chapter.
SECTION 3. Chapter 2270, Government Code, is amended by
adding Subchapter D-1 to read as follows:
SUBCHAPTER D-1. GENERAL PROVISIONS RELATING TO INVESTMENTS IN
CERTAIN SIGNIFICANT FOREIGN NARCOTICS TRAFFICKERS
Sec. 2270.0161. BUSINESS OPERATIONS DEFINED. In this
subchapter, "business operations" has the meaning assigned by
Section 2270.0151.
Sec. 2270.0162. SCRUTINIZED BUSINESS OPERATIONS WITH
DESIGNATED SIGNIFICANT FOREIGN NARCOTICS TRAFFICKER. A company
engages in scrutinized business operations with a designated
significant foreign narcotics trafficker if the company has
business operations that involve:
(1) a contract with or providing supplies or services
to a designated significant foreign narcotics trafficker;
(2) a company in which a designated significant
foreign narcotics trafficker has any direct or indirect equity
share;
(3) a consortium or project commissioned by a
designated significant foreign narcotics trafficker; or
(4) a company involved in a consortium or project
commissioned by a designated significant foreign narcotics
trafficker.
Sec. 2270.0163. LIST OF DESIGNATED SIGNIFICANT FOREIGN
NARCOTICS TRAFFICKERS. (a) The comptroller shall prepare and
maintain a list of designated significant foreign narcotics
traffickers that is made up of significant foreign narcotics
traffickers and other related persons designated by the president
of the United States or the United States secretary of the treasury
under 21 U.S.C. Sections 1903-1904.
(b) The comptroller shall maintain the list by updating the
list as necessary to reflect changes in the persons designated as
significant foreign narcotics traffickers and other related
persons as described by Subsection (a).
(c) Not later than the 30th day after the date the
comptroller first prepares or updates the list of designated
significant foreign narcotics traffickers as required by this
section, the comptroller shall:
(1) file the list with the presiding officer of each
house of the legislature and the attorney general; and
(2) post the list on the comptroller's Internet
website.
SECTION 4. Sections 2270.0201(a) and (b), Government Code,
are amended to read as follows:
(a) The comptroller shall prepare and maintain a list of all
scrutinized companies. The list must be categorized according to:
(1) companies that are scrutinized companies under
Section 2270.0001(9)(A);
(2) companies that are scrutinized companies under
Section 2270.0001(9)(B); [and]
(3) companies that are scrutinized companies under
Section 2270.0001(9)(C); and
(4) companies that are scrutinized companies under
Section 2270.0001(9)(D).
(b) In maintaining the list of scrutinized companies under
Subsection (a), the comptroller may review and rely, as appropriate
in the comptroller's judgment, on publicly available information
regarding companies with business operations in Sudan, in Iran,
[or] with designated foreign terrorist organizations, or with
designated significant foreign narcotics traffickers, as
applicable, including information provided by the state, nonprofit
organizations, research firms, international organizations, and
governmental entities.
SECTION 5. Section 2270.0203, Government Code, is amended
to read as follows:
Sec. 2270.0203. NOTICE TO LISTED COMPANY ENGAGED IN
INACTIVE BUSINESS OPERATIONS. For each listed company identified
under Section 2270.0202 that is engaged in only inactive
scrutinized business operations, the investing entity shall send a
written notice informing the company of this chapter and
encouraging the company to continue to refrain from initiating
active business operations in Sudan, in Iran, [and] with designated
foreign terrorist organizations, and with designated significant
foreign narcotics traffickers until it is able to avoid being
considered a listed company. The investing entity shall continue
the correspondence as the entity considers necessary, but is not
required to initiate correspondence more often than semiannually.
SECTION 6. Section 2270.0204(b), Government Code, is
amended to read as follows:
(b) The notice shall offer the company the opportunity to
clarify its Sudan-related, Iran-related, [or] designated foreign
terrorist organization-related, or designated significant foreign
narcotics trafficker-related activities, as applicable, and shall
encourage the company, not later than the 90th day after the date
the company receives notice under this section, to either cease all
scrutinized business operations as described by Sections
2270.0052, 2270.0102, [and] 2270.0152, and 2270.0162, or convert
such operations to inactive business operations in order to avoid
qualifying for divestment by investing entities.
SECTION 7. Not later than December 1, 2023, the comptroller
of public accounts shall prepare the initial list of designated
significant foreign narcotics traffickers as required by Section
2270.0163, Government Code, as added by this Act.
SECTION 8. Not later than January 1, 2024, the comptroller
shall:
(1) prepare an updated list of scrutinized companies
required by Section 2270.0201, Government Code, as amended by this
Act, that includes companies that are scrutinized companies
described by Section 2270.0001(9)(D), Government Code, as added by
this Act;
(2) provide the list to each investing entity, as
defined by Section 2270.0001(7), Government Code; and
(3) post the list on the comptroller's Internet
website.
SECTION 9. This Act takes effect September 1, 2023.