89R9978 SCR-F
By: Campbell, et al. S.B. No. 2368
A BILL TO BE ENTITLED
AN ACT
relating to affiliation with certain foreign entities of certain
persons working or participating in the electricity market;
increasing an administrative penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 15.023, Utilities Code, is amended by
adding Subsection (b-2) to read as follows:
(b-2) Notwithstanding Subsection (b), the penalty for a
violation of Section 39.360 in which a business entity submitted
false or incomplete information to the independent organization
certified under Section 39.151 for the ERCOT power region may be in
an amount not to exceed $1,000,000 for each violation.
SECTION 2. Section 39.151(g-7), Utilities Code, as added by
Chapter 464 (S.B. 2013), Acts of the 88th Legislature, Regular
Session, 2023, is redesignated as Section 39.151(g-8), Utilities
Code, and amended to read as follows:
(g-8) [(g-7)] To maintain certification as an independent
organization under this section, the organization must:
(1) identify all employee positions in the
organization that are critical to the security of the electric
grid; and
(2) before hiring a person for a position described by
Subdivision (1), obtain:
(A) from the Department of Public Safety or a
private vendor, criminal history record information relating to the
prospective employee and any other background information
considered necessary by the independent organization or required by
the commission; and
(B) from the prospective employee an attestation
regarding:
(i) any former travel by the prospective
employee to a country described by Section 117.003, Business &
Commerce Code; and
(ii) any relationship between the
prospective employee and a foreign governmental entity or foreign
political organization.
SECTION 3. Section 39.360, Utilities Code, as added by
Chapter 464 (S.B. 2013), Acts of the 88th Legislature, Regular
Session, 2023, is amended by amending Subsections (a), (b), (c),
(d), and (e) and adding Subsections (d-1) and (j) to read as
follows:
(a) In this section, "company" and "critical
infrastructure" have the meanings assigned by Section 117.001
[113.001], Business & Commerce Code[, as added by Chapter 975 (S.B.
2116), Acts of the 87th Legislature, Regular Session, 2021].
(b) An independent organization certified under Section
39.151 may not register a business entity as a market participant or
maintain the registration of a business entity to operate as a
market participant in the power region for which the independent
organization is certified unless the business entity attests that
the entity complies with Chapter 117 [113], Business & Commerce
Code[, as added by Chapter 975 (S.B. 2116), Acts of the 87th
Legislature, Regular Session, 2021].
(c) An independent organization certified under Section
39.151 shall require as a condition of operating as a market
participant in the power region for which the independent
organization is certified that a business entity report to the
independent organization the purchase of any critical electric grid
equipment or service from a company described by Section
117.002(a)(2) [113.002(a)(2)], Business & Commerce Code[, as added
by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular
Session, 2021].
(d) For each purchase reported by a business entity under
Subsection (c), the business entity shall submit an attestation to
the independent organization that the purchase will not result in
access to or control of its critical electric grid equipment by a
company described by Section 117.002(a)(2) [113.002(a)(2)],
Business & Commerce Code, [as added by Chapter 975 (S.B. 2116), Acts
of the 87th Legislature, Regular Session, 2021,] excluding access
specifically allowed by the business entity for product warranty
and support purposes.
(d-1) An independent organization certified under Section
39.151 may:
(1) require as a condition of market participant
registration that a business entity provide the independent
organization with additional information to confirm the accuracy of
an attestation or report required under Subsection (b), (c), or
(d); and
(2) disclose information received under Subdivision
(1) to the attorney general or the commission.
(e) Notwithstanding any other law, an independent
organization certified under Section 39.151 may immediately
suspend or terminate a business entity's [company's] registration
as a market participant or access to any of the independent
organization's systems if the independent organization has a
reasonable suspicion that the business entity is a company [meets
any of the criteria] described by Section 2275.0102(a)(2)
[2274.0102(a)(2)], Government Code[, as added by Chapter 975 (S.B.
2116), Acts of the 87th Legislature, Regular Session, 2021].
(j) The attorney general may investigate the accuracy or
sufficiency of information provided under this section to an
independent organization certified under Section 39.151 and
disclose any new information obtained in relation to the
investigation to the independent organization or the commission.
SECTION 4. To the extent of any conflict, this Act prevails
over another Act of the 89th Legislature, Regular Session, 2025,
relating to nonsubstantive additions to and corrections in enacted
codes.
SECTION 5. This Act takes effect September 1, 2025.