Bill Text: TX HB2758 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to a prohibition on state contracts with certain foreign companies or organizations; authorizing a civil penalty.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-13 - Referred to State Affairs [HB2758 Detail]
Download: Texas-2023-HB2758-Introduced.html
| 88R7443 LRM-D | ||
| By: Paul | H.B. No. 2758 | |
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| relating to a prohibition on state contracts with certain foreign | ||
| companies or organizations; authorizing a civil penalty. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle F, Title 10, Government Code, is | ||
| amended by adding Chapter 2279 to read as follows: | ||
| CHAPTER 2279. PROHIBITION ON STATE CONTRACTS WITH CERTAIN | ||
| COMPANIES OR ORGANIZATIONS IN SCRUTINIZED COUNTRIES | ||
| Sec. 2279.001. DEFINITIONS. In this chapter: | ||
| (1) "Company" means a sole proprietorship, | ||
| organization, association, corporation, partnership, joint | ||
| venture, limited partnership, limited liability partnership, or | ||
| limited liability company, including a wholly owned subsidiary, | ||
| majority-owned subsidiary, parent company, or affiliate of those | ||
| entities or business associations, that exists to make a profit. | ||
| (2) "Nonprofit organization" includes a nonprofit | ||
| corporation or association. | ||
| (3) "Scrutinized country" means China, Iran, North | ||
| Korea, or Russia. | ||
| Sec. 2279.002. PROVISION REQUIRED IN STATE CONTRACTS. (a) | ||
| A state agency may not enter into a contract with a vendor for goods | ||
| or services unless the contract contains a written verification | ||
| from the vendor that it is not: | ||
| (1) a company owned or directly controlled by the | ||
| government of a scrutinized country; or | ||
| (2) a nonprofit organization or government-organized | ||
| nongovernmental organization that is headquartered in a | ||
| scrutinized county. | ||
| (b) The prohibition described by Subsection (a) applies | ||
| regardless of whether: | ||
| (1) the company's or its parent company's securities | ||
| are publicly traded; or | ||
| (2) the company or its parent company is listed on a | ||
| public stock exchange as a company of a scrutinized country. | ||
| Sec. 2279.003. FALSE VERIFICATION; PENALTIES. (a) If a | ||
| state agency determines that a vendor holding a contract with the | ||
| state agency was ineligible to have the contract awarded under | ||
| Section 2279.002 because the vendor's written verification was | ||
| false, the state agency shall immediately terminate the contract | ||
| without further obligation to the vendor. | ||
| (b) A vendor described by Subsection (a): | ||
| (1) is barred from responding to a solicitation for or | ||
| being awarded a contract for goods or services by any state agency; | ||
| and | ||
| (2) is liable to this state for a civil penalty of | ||
| either $250,000, or twice the amount of the terminated contract | ||
| under Subsection (a), whichever is greater. | ||
| (c) The attorney general may bring an action to recover a | ||
| civil penalty imposed under Subsection (b)(2). The attorney | ||
| general may recover reasonable attorney's fees and court costs in | ||
| bringing an action under this subsection. | ||
| SECTION 2. Section 2279.002, Government Code, as added by | ||
| this Act, applies only to a contract entered into on or after the | ||
| effective date of this Act. A contract entered into before the | ||
| effective date of this Act is governed by the law in effect on the | ||
| date the contract was entered into, and the former law is continued | ||
| in effect for that purpose. | ||
| SECTION 3. This Act takes effect September 1, 2023. | ||
