Texas 2025 - 89th Regular

Texas House Bill HB4900 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1		By: Curry H.B. No. 4900
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to prohibiting the investment of state money in certain
7	9		countries and in certain private business entities in those
8	10		countries.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. Section 2270.0001, Government Code, is amended
11	13		by adding Subdivision (2-a) and amending Subdivision (9) to read as
12	14		follows:
13	15		(2-a) "Country of concern" means:
14	16		(A) China, Iran, North Korea, or Russia; or
15	17		(B) a country designated by the governor under
16	18		Section 2270.0121.
17	19		(9) "Scrutinized company" means:
18	20		(A) a company that:
19	21		(i) engages in scrutinized business
20	22		operations described by Section 2270.0052; or
21	23		(ii) has been complicit in the Darfur
22	24		genocide during any preceding 20-month period;
23	25		(B) a company that engages in scrutinized
24	26		business operations described by Section 2270.0102; [and]
25	27		(C) a company that is a scrutinized company under
26	28		Section 2270.0124; and
27	29		(D) a company that engages in scrutinized
28	30		business operations described by Section 2270.0152.
29	31		SECTION 2. Section 2270.0002, Government Code, is amended
30	32		to read as follows:
31	33		Sec. 2270.0002. EXCEPTION. Notwithstanding any other law,
32	34		a company that the United States government affirmatively declares
33	35		to be excluded from its federal sanctions regime relating to Sudan,
34	36		its federal sanctions regime relating to Iran or another country of
35	37		concern, or any federal sanctions regime relating to a designated
36	38		foreign terrorist organization is not subject to divestment or
37	39		investment prohibition under this chapter.
38	40		SECTION 3. Chapter 2270, Government Code, is amended by
39	41		adding Subchapter C-1 to read as follows:
40	42		SUBCHAPTER C-1. GENERAL PROVISIONS RELATING TO INVESTMENTS IN
41	43		COUNTRIES OF CONCERN
42	44		Sec. 2270.0121. DESIGNATION AS COUNTRY OF CONCERN. (a) The
43	45		governor, after consultation with the public safety director of the
44	46		Department of Public Safety, may designate a country as a country of
45	47		concern for purposes of this subchapter.
46	48		(b) The governor shall consult the Homeland Security
47	49		Council, established under Subchapter B, Chapter 421, to assess the
48	50		status of a country of concern for purposes of making a designation
49	51		under this section.
50	52		Sec. 2270.0122. PROHIBITION ON INVESTMENT IN COUNTRY OF
51	53		CONCERN. An investing entity may not acquire a security issued by a
52	54		country of concern or an entity owned or controlled by or subject to
53	55		the jurisdiction of a country of concern.
54	56		Sec. 2270.0123. PROHIBITION AGAINST INVESTMENT OR DEPOSIT
55	57		IN CERTAIN BANKS. An investing entity may not invest or make a
56	58		deposit in a bank with a principal place of business located in a
57	59		country of concern.
58	60		Sec. 2270.0124. SCRUTINIZED COMPANIES IN COUNTRIES OF
59	61		CONCERN. A company is a scrutinized company if:
60	62		(1) the company is organized under the laws of, has its
61	63		principal place of business in the territory of, or is controlled by
62	64		a country of concern;
63	65		(2) the company is owned by a country of concern or
64	66		individuals who are citizens of a country of concern; or
65	67		(3) the majority of stock or other ownership interest
66	68		of the company is held or controlled by a country of concern or
67	69		individuals who are citizens of a country of concern.
68	70		SECTION 4. Sections 2270.0201(a) and (b), Government Code,
69	71		are amended to read as follows:
70	72		(a) The comptroller shall prepare and maintain a list of all
71	73		scrutinized companies. The list must be categorized according to:
72	74		(1) companies that are scrutinized companies under
73	75		Section 2270.0001(9)(A);
74	76		(2) companies that are scrutinized companies under
75	77		Section 2270.0001(9)(B); [and]
76	78		(3) companies that are scrutinized companies under
77	79		Section 2270.0001(9)(C); and
78	80		(4) companies that are scrutinized companies under
79	81		Section 2270.0001(9)(D).
80	82		(b) In maintaining the list of scrutinized companies under
81	83		Subsection (a), the comptroller may review and rely, as appropriate
82	84		in the comptroller's judgment, on publicly available information
83	85		regarding companies with business operations in Sudan, in Iran or
84	86		another country of concern, or with designated foreign terrorist
85	87		organizations, as applicable, including information provided by
86	88		the state, nonprofit organizations, research firms, international
87	89		organizations, and governmental entities.
88	90		SECTION 5. Subchapter E, Chapter 2270, Government Code, is
89	91		amended by adding Section 2270.02035 to read as follows:
90	92		Sec. 2270.02035. ACTIONS RELATED TO LISTED COMPANY OWNED OR
91	93		CONTROLLED BY OR LOCATED IN COUNTRY OF CONCERN. (a) For each
92	94		listed company identified under Section 2270.0202 that is a
93	95		scrutinized company under Section 2270.0124, the investing entity
94	96		shall send a written notice informing the company of its listed
95	97		company status and warning the company that it may become subject to
96	98		divestment by investing entities.
97	99		(b) The notice shall offer the company the opportunity to,
98	100		not later than the 90th day after the date the company receives
99	101		notice under this section, change its organizational or ownership
100	102		structure or location so as to not be a scrutinized company as
101	103		described by Section 2270.0124 in order to avoid qualifying for
102	104		divestment by investing entities.
103	105		(c) If, during the time provided by Subsection (b), the
104	106		company makes any applicable changes required by that subsection,
105	107		the comptroller shall remove the company from the list of
106	108		scrutinized companies and this chapter will no longer apply to the
107	109		company unless the company later again becomes a scrutinized
108	110		company as described by Section 2270.0124.
109	111		(d) If, after the time provided by Subsection (b) expires,
110	112		the listed company continues to operate as a scrutinized company as
111	113		described by Section 2270.0124, the investing entity shall sell,
112	114		redeem, divest, or withdraw all publicly traded securities of the
113	115		company, except securities described by Section 2270.0207,
114	116		according to the schedule provided by Section 2270.0206.
115	117		SECTION 6. Not later than January 1, 2026, the comptroller
116	118		of public accounts shall include on the list maintained under
117	119		Section 2270.0201(a), Government Code, as amended by this Act, the
118	120		companies described by Subsection (a)(3) of that section.
119	121		SECTION 7. This Act takes effect September 1, 2025.