Bill Text: TX HB4438 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to access to and the security of certain critical infrastructure.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-21 - Referred to State Affairs [HB4438 Detail]
Download: Texas-2023-HB4438-Introduced.html
88R9921 JXC-F | ||
By: Hunter | H.B. No. 4438 |
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relating to access to and the security of certain critical | ||
infrastructure. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 113.001, Business & Commerce Code, as | ||
added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, | ||
Regular Session, 2021, is amended by adding Subdivision (5) to read | ||
as follows: | ||
(5) "Affiliate," with respect to a company entering | ||
into an agreement in which the critical infrastructure is electric | ||
grid equipment, has the meaning assigned by the February 1, 2023, | ||
version of the ERCOT Nodal Protocols. | ||
SECTION 2. Section 113.002, Business & Commerce Code, as | ||
added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, | ||
Regular Session, 2021, is amended by adding Subsection (c) to read | ||
as follows: | ||
(c) Notwithstanding Subsection (a), a business entity may | ||
enter into an agreement described by Subsection (a)(1) in which the | ||
critical infrastructure is electric grid equipment if the business | ||
entity takes reasonable and necessary actions to ensure that remote | ||
access or control by the company is mitigated. | ||
SECTION 3. Subchapter F, Chapter 411, Government Code, is | ||
amended by adding Section 411.1183 to read as follows: | ||
Sec. 411.1183. ACCESS TO CRIMINAL HISTORY RECORD | ||
INFORMATION: INDEPENDENT ORGANIZATION CERTIFIED UNDER UTILITIES | ||
CODE. (a) An independent organization certified under Section | ||
39.151, Utilities Code, for security reasons is entitled to obtain | ||
from the department criminal history record information maintained | ||
by the department that relates to a person who has or is seeking | ||
employment at or access to the independent organization's systems | ||
that affect the security of the electric grid. | ||
(b) Criminal history information obtained from the | ||
department may not be released or disclosed except: | ||
(1) as needed in protecting the security of the | ||
electric grid; | ||
(2) as authorized by a court order or a federal or | ||
state law or order; or | ||
(3) with the consent of the person who is the subject | ||
of the criminal history record information. | ||
SECTION 4. Section 2274.0101, Government Code, as added by | ||
Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular | ||
Session, 2021, is amended by amending Subdivision (5) and adding | ||
Subdivision (6) to read as follows: | ||
(5) "Governmental entity" means a state agency, a [ |
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political subdivision, or an independent organization certified | ||
under Section 39.151, Utilities Code, to perform a function | ||
described by Section 39.151(a), Utilities Code [ |
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(6) "Affiliate," with respect to a company entering | ||
into an agreement in which the critical infrastructure is electric | ||
grid equipment, has the meaning assigned by the February 1, 2023, | ||
version of the ERCOT Nodal Protocols. | ||
SECTION 5. Section 39.151, Utilities Code, is amended by | ||
adding Subsection (g-7) to read as follows: | ||
(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 from the Department of Public Safety or a | ||
private vendor all criminal history record information relating to | ||
the prospective employee. | ||
SECTION 6. Subchapter H, Chapter 39, Utilities Code, is | ||
amended by adding Section 39.360 to read as follows: | ||
Sec. 39.360. TRANSACTIONS WITH CERTAIN FOREIGN-OWNED | ||
COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE. (a) In this | ||
section, "company" and "critical infrastructure" have the meanings | ||
assigned by Section 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 to operate in the power | ||
region for which the independent organization is certified unless | ||
the business entity: | ||
(1) attests that the entity complies with Chapter 113, | ||
Business & Commerce Code, as added by Chapter 975 (S.B. 2116), Acts | ||
of the 87th Legislature, Regular Session, 2021, including by taking | ||
reasonable and necessary actions to mitigate remote access to or | ||
control of the entity's electric grid equipment by a company | ||
described by Section 113.002(a)(2), Business & Commerce Code, as | ||
added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, | ||
Regular Session, 2021; | ||
(2) takes reasonable and necessary actions to mitigate | ||
remote access to or control of the entity's electric grid equipment | ||
by a country designated under Section 113.003, Business & Commerce | ||
Code, as added by Chapter 975 (S.B. 2116), Acts of the 87th | ||
Legislature, Regular Session, 2021; and | ||
(3) attests that the entity complies with Subdivision | ||
(2). | ||
(c) An independent organization certified under Section | ||
39.151 shall require as a condition of operating in the region that | ||
a business entity: | ||
(1) report to the independent organization the | ||
purchase of any critical electric grid equipment from a company | ||
described by Section 113.002(a)(2), Business & Commerce Code, as | ||
added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, | ||
Regular Session, 2021; and | ||
(2) take reasonable and necessary actions to mitigate | ||
access to or control of the purchased critical electric grid | ||
equipment by a company described by Section 113.002(a)(2), Business & | ||
Commerce Code, as added by Chapter 975 (S.B. 2116), Acts of the | ||
87th Legislature, Regular Session, 2021. | ||
(d) Notwithstanding any other law, an independent | ||
organization certified under Section 39.151 may immediately | ||
suspend or terminate a company's registration or access to any of | ||
the independent organization's systems if the independent | ||
organization has a reasonable suspicion that the company meets any | ||
of the criteria described by Section 2274.0102(a)(2), Government | ||
Code, as added by Chapter 975 (S.B. 2116), Acts of the 87th | ||
Legislature, Regular Session, 2021. | ||
(e) A contractual provision that limits or contradicts | ||
Subsection (d) is contrary to public policy and is unenforceable | ||
and void. | ||
(f) An independent organization certified under Section | ||
39.151 may adopt guidelines or procedures relating to the | ||
suspension or termination of a company's registration or access to | ||
any of the independent organization's systems. | ||
(g) The commission shall: | ||
(1) adopt any rules necessary to administer this | ||
section or authorize an independent organization to carry out a | ||
duty imposed by this section; and | ||
(2) by rule establish a process to allow a company that | ||
has been adversely affected by a suspension or termination under | ||
Subsection (d) to request that the commission review and approve or | ||
deny the suspension or termination. | ||
SECTION 7. The changes made to Chapter 113, Business & | ||
Commerce Code, and Chapter 2274, Government Code, apply only to a | ||
contract or agreement entered into on or after the effective date of | ||
this Act. | ||
SECTION 8. It is the intent of the 88th Legislature, Regular | ||
Session, 2023, that the amendments made by this Act be harmonized | ||
with another Act of the 88th Legislature, Regular Session, 2023, | ||
relating to nonsubstantive additions to and corrections in enacted | ||
codes. | ||
SECTION 9. 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. |