Texas 2025 - 89th Regular

Texas House Bill HB2244 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R10594 LRM-F
2	2	By: Cain H.B. No. 2244
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to a prohibition on state contracts to purchase electric
10	10	vehicles and related components produced in scrutinized countries;
11	11	authorizing a civil penalty.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Subtitle F, Title 10, Government Code, is
14	14	amended by adding Chapter 2278 to read as follows:
15	15	CHAPTER 2278. PROHIBITION ON STATE CONTRACTS FOR ELECTRIC VEHICLES
16	16	AND RELATED COMPONENTS PRODUCED IN SCRUTINIZED COUNTRIES
17	17	Sec. 2278.001. DEFINITIONS. In this chapter:
18	18	(1) "Company" means a sole proprietorship,
19	19	organization, association, corporation, partnership, joint
20	20	venture, limited partnership, limited liability partnership, or
21	21	limited liability company, including a wholly owned subsidiary,
22	22	majority-owned subsidiary, parent company, or affiliate of those
23	23	entities or business associations, that exists to make a profit.
24	24	(2) "Electric vehicle" means a motor vehicle that
25	25	draws propulsion energy only from a rechargeable energy storage
26	26	system.
27	27	(3) "Forced labor or services" has the meaning
28	28	assigned by Section 20A.01, Penal Code.
29	29	(4) "Nonprofit organization" means an entity that is
30	30	exempt from federal income tax under Section 501(a), Internal
31	31	Revenue Code of 1986, by being listed as an exempt entity under
32	32	Section 501(c) of that code, has submitted an application with the
33	33	Internal Revenue Service for recognition of an exemption under
34	34	Section 501(c) of that code, or is a nonprofit corporation or
35	35	association organized or formed under the laws of this state or
36	36	another state.
37	37	(5) "Scrutinized country" means the People's Republic
38	38	of China.
39	39	Sec. 2278.002. PROVISION REQUIRED IN STATE CONTRACTS. (a)
40	40	A state agency may not enter into a contract with a vendor to
41	41	purchase an electric vehicle or any component of an electric
42	42	vehicle unless the contract contains a written verification from
43	43	the vendor that:
44	44	(1) the vendor is not:
45	45	(A) a company organized under the laws of or
46	46	headquartered in a scrutinized country;
47	47	(B) a company owned, operated, or directly
48	48	controlled by the government of a scrutinized country;
49	49	(C) a nonprofit organization or
50	50	government-organized nongovernmental organization organized under
51	51	the laws of or headquartered in a scrutinized country; or
52	52	(D) a company or nonprofit organization that
53	53	subcontracts with a company or organization described by Paragraphs
54	54	(A)-(C) for production of any component of an electric vehicle;
55	55	(2) the electric vehicle or component of an electric
56	56	vehicle was not mined, produced, or manufactured wholly or partly
57	57	in a scrutinized country; or
58	58	(3) the vendor or any subcontractor of the vendor has
59	59	not used forced labor or services in the production of the electric
60	60	vehicle or component.
61	61	(b) The prohibitions described by Subsection (a) apply
62	62	regardless of whether:
63	63	(1) the company's or its parent company's securities
64	64	are publicly traded; or
65	65	(2) the company or its parent company is listed on a
66	66	public stock exchange as a company of a scrutinized country.
67	67	Sec. 2278.003. CONTRACT TERMINATION FOR FALSE
68	68	VERIFICATION; BARRING FROM STATE CONTRACTS. (a) If a state agency
69	69	determines that a vendor holding a contract with the state agency
70	70	was ineligible for the contract awarded under Section 2278.002
71	71	because the vendor's written verification was false, the state
72	72	agency shall immediately terminate the contract without further
73	73	obligation to the vendor.
74	74	(b) A vendor described by Subsection (a) is barred from
75	75	responding to a solicitation for or contracting for goods or
76	76	services procured by any state agency.
77	77	Sec. 2278.004. ATTORNEY GENERAL ENFORCEMENT; CIVIL
78	78	PENALTY; INJUNCTION. (a) A vendor that is in violation of this
79	79	chapter is liable for a civil penalty not to exceed $250,000 for
80	80	each violation.
81	81	(b) The attorney general may bring an action in the name of
82	82	this state to:
83	83	(1) recover a civil penalty under this section;
84	84	(2) restrain or enjoin the vendor from violating this
85	85	chapter; or
86	86	(3) recover the civil penalty and seek injunctive
87	87	relief.
88	88	(c) The attorney general may recover reasonable attorney's
89	89	fees and court costs in bringing an action under this section.
90	90	SECTION 2. Section 2278.002, Government Code, as added by
91	91	this Act, applies only to a contract entered into on or after the
92	92	effective date of this Act. A contract entered into before the
93	93	effective date of this Act is governed by the law in effect on the
94	94	date the contract was entered into, and the former law is continued
95	95	in effect for that purpose.
96	96	SECTION 3. This Act takes effect September 1, 2025.