Bill Text: TX SB1817 | 2023-2024 | 88th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to investments in certain companies doing business in the Russian Federation.

Spectrum: Slight Partisan Bill (Republican 19-12)

Status: (Engrossed - Dead) 2023-05-04 - Referred to State Affairs [SB1817 Detail]

Download: Texas-2023-SB1817-Comm_Sub.html
 
 
  By: Bettencourt, et al.  S.B. No. 1817
         (In the Senate - Filed March 7, 2023; March 20, 2023, read
  first time and referred to Committee on State Affairs;
  April 20, 2023, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 10, Nays 0; April 20, 2023,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1817 By:  Hughes
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to investments in certain companies doing business in the
  Russian Federation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2270.0001(9), Government Code, is
  amended to read as follows:
               (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. (a) 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 is not subject to divestment or investment prohibition
  under this chapter.
         (b)  Notwithstanding any other law, a company that complies
  with the United States government federal sanctions regime relating
  to the Russian Federation, including any exemption or federal
  guidance, 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
  RUSSIAN FEDERATION
         Sec. 2270.0161.  DEFINITION. In this subchapter, "business
  operations" means engaging in commerce in any form in the Russian
  Federation, including by acquiring, developing, maintaining,
  owning, selling, possessing, leasing, or operating equipment,
  facilities, personnel, products, services, personal property, real
  property, or any other apparatus of business or commerce.
         Sec. 2270.0162.  SCRUTINIZED BUSINESS OPERATIONS IN RUSSIAN
  FEDERATION. A company engages in scrutinized business operations
  in the Russian Federation if the company has business operations
  that involve contracts with or providing supplies or services to
  the government of the Russian Federation, a company in which the
  government of the Russian Federation has any direct or indirect
  equity share, a consortium or project commissioned by the
  government of the Russian Federation, or a company involved in a
  consortium or project commissioned by the government of the Russian
  Federation.
         SECTION 4.  Section 2270.0201, Government Code, is amended
  by amending Subsections (a) and (b) and adding Subsection (b-1) 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 in the
  Russian Federation, as applicable, including information provided
  by the state, nonprofit organizations, research firms,
  international organizations, and governmental entities.
         (b-1)  The governor shall periodically consult with the
  Homeland Security Council, established under Subchapter B, Chapter
  421, to review whether a company that is a scrutinized company under
  Section 2270.0001(9)(D) should be included or continue to be
  included on the list of scrutinized companies maintained under this
  section and may, after consulting with the council, direct the
  comptroller to remove a company from the list.
         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 in the Russian Federation
  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 Russian Federation-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 the 180th day after the effective
  date of this Act, the comptroller of public accounts shall include
  the companies described by Section 2270.0201(a)(4), Government
  Code, as added by this Act, on the list under Section 2270.0201(a),
  Government Code.
         SECTION 8.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2023.
 
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