Bill Text: TX HB41 | 2025-2026 | 89th Legislature | Comm Sub

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Bill Title: Relating to the acquisition or use of certain foreign equipment or services by a governmental entity.

Sponsorship: Partisan Bill (Republican 23)

Status: (Introduced - Dead) 2025-05-09 - Considered in Calendars [HB41 Detail]

Download: Texas-2025-HB41-Comm_Sub.html

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89R22712 JSC-F
By: Hefner, et al. H.B. No. 41
Substitute the following for H.B. No. 41:
By: Hefner C.S.H.B. No. 41

A BILL TO BE ENTITLED
AN ACT
relating to the acquisition or use of certain foreign equipment or
services by a governmental entity.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Chapter 423, Government Code, is
amended to read as follows:
CHAPTER 423. [USE OF] UNMANNED AIRCRAFT
SECTION 2. Chapter 423, Government Code, is amended by
designating Sections 423.001 through 423.009 as Subchapter A and
adding a subchapter heading to read as follows:
SUBCHAPTER A. REGULATION OF UNMANNED AIRCRAFT
SECTION 3. Subchapter A, Chapter 423, Government Code, as
added by this Act, is amended by adding Section 423.010 to read as
follows:
Sec. 423.010. ACQUISITION OR USE OF CERTAIN FOREIGN
UNMANNED AIRCRAFT OR RELATED EQUIPMENT OR SERVICES BY GOVERNMENTAL
ENTITY PROHIBITED. (a) In this section:
(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) "Designated country" means a country identified by
the United States director of national intelligence as a country
that poses a risk to the national security of the United States in
at least one of the three most recent Annual Threat Assessments of
the U.S. Intelligence Community issued pursuant to Section 108B,
National Security Act of 1947 (50 U.S.C. Section 3043b).
(3) "Governmental entity" means this state, a
political subdivision of this state, or an agency of this state or a
political subdivision of this state.
(b) Except as provided by Subsection (d), a governmental
entity may not acquire or use an unmanned aircraft, or related
equipment or services, produced or provided by a company that the
governmental entity knows or has reason to believe is:
(1) owned by or the majority of stock or other
ownership interest of the company is held or controlled by:
(A) the government of a designated country; or
(B) a company or other entity, including a
government entity, that is owned or controlled by the government of
a designated country; or
(2) headquartered in a designated country.
(c) The prohibition described by Subsection (b) 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 designated country.
(d) A governmental entity that, before January 1, 2026,
acquired, or entered into a contract or agreement to acquire, an
unmanned aircraft or related equipment or services described by
Subsection (b) may continue to use the unmanned aircraft or related
equipment or services until January 1, 2031.
SECTION 4. Chapter 423, Government Code, is amended by
adding Subchapter B to read as follows:
SUBCHAPTER B. GRANT PROGRAM
Sec. 423.051. DEFINITION. In this subchapter, "program"
means the Law Enforcement Secure Unmanned Aircraft Grant Program
administered under this subchapter.
Sec. 423.052. ESTABLISHMENT OF PROGRAM. (a) From money
appropriated for the purpose, the office of the governor shall
establish a grant program under this subchapter to provide grants
to law enforcement agencies to replace working equipment prohibited
under Section 423.010 that was actively in use by the law
enforcement agencies immediately before January 1, 2026, and that
has not reached its end of life before that date.
(b) The governor's office shall award grants under the
program from money appropriated for purposes of the program.
Sec. 423.053. GRANT APPLICATION. (a) A law enforcement
agency may apply for a grant from the governor's office in the form
and manner prescribed by the governor's office.
(b) The grant application must include the number and types
of unmanned aircraft or related equipment that require replacement.
Sec. 423.054. USE OF FUNDS. Grant recipients may use funds
only to purchase replacement unmanned aircraft or related equipment
that complies with Section 423.010.
Sec. 423.055. SURRENDER OF REPLACED UNMANNED AIRCRAFT OR
RELATED EQUIPMENT. To enable the designated entity to study or
dispose of the aircraft or related equipment, a grant recipient
promptly shall surrender to an entity designated by the governor's
office the prohibited unmanned aircraft or related equipment with
respect to which the grant was awarded.
Sec. 423.056. EXPIRATION OF SUBCHAPTER. This subchapter
expires on the second anniversary of the date that all money
appropriated for the grant program established under this
subchapter has been expended.
SECTION 5. Chapter 2054, Government Code, is amended by
adding Subchapter T to read as follows:
SUBCHAPTER T. MODEL SECURITY PLAN REGARDING CERTAIN FOREIGN
TELECOMMUNICATIONS OR VIDEO SURVEILLANCE TECHNOLOGIES
Sec. 2054.651. MODEL SECURITY PLAN FOR PROHIBITED OR
SUSPECT TECHNOLOGIES. (a) In this section, "company" and
"governmental entity" have the meanings assigned by Section
423.010.
(b) The department shall create and as necessary amend a
model security plan for prohibited or suspect technologies to
address a governmental entity's acquisition or use of
telecommunications or video surveillance equipment or services
that may present a risk to state security.
(c) The model security plan must list known companies that
produce or provide telecommunications or video surveillance
equipment or services that may present a risk to state security.
The list must include any foreign company that is:
(1) described by Section 423.010;
(2) prohibited from participating in federal
contracts under Section 889, John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (Pub. L. No. 115-232), or
other federal law; or
(3) considered by the department to pose a risk to
state security.
(d) The department shall make the model security plan
created under this section available to governmental entities.
SECTION 6. Section 423.010(b), Government Code, as added by
this Act:
(1) applies to the acquisition of an unmanned aircraft
or related equipment or services on or after the effective date of
this Act, except that a contract or agreement to purchase or
otherwise acquire an unmanned aircraft or related equipment or
services described by that subsection that is entered into before
January 1, 2026, is unaffected by this Act; and
(2) except as otherwise provided by Section
423.010(d), Government Code, as added by this Act, applies to the
use of an unmanned aircraft or related equipment or services on or
after January 1, 2026, regardless of whether the unmanned aircraft
or related equipment or services were acquired before, on, or after
that date.
SECTION 7. Not later than December 1, 2025, the Department
of Information Resources shall create the initial model security
plan required by Section 2054.651, Government Code, as added by
this Act.
SECTION 8. This Act takes effect September 1, 2025.