Bill Text: TX SB120 | 2017 | 85th Legislature 1st Special Session | Introduced
Bill Title: Relating to investment prohibitions and divestment requirements for certain investments of public money in companies involved in the border wall between the United States and Mexico.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2017-08-11 - Filed [SB120 Detail]
Download: Texas-2017-SB120-Introduced.html
| 85S12052 KLA-D | ||
| By: Garcia, et al. | S.B. No. 120 | |
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| relating to investment prohibitions and divestment requirements | ||
| for certain investments of public money in companies involved in | ||
| the border wall between the United States and Mexico. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Section 2270.0001, Government Code, as added by | ||
| Chapter 96 (S.B. 253), Acts of the 85th Legislature, Regular | ||
| Session, 2017, is amended by adding Subdivision (1-a) and amending | ||
| Subdivision (9) to read as follows: | ||
| (1-a) "Border wall" means a wall, fence, or other | ||
| barrier on the border between the United States and Mexico. | ||
| (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; [ |
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| (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 2270.0172. | ||
| SECTION 2. Chapter 2270, Government Code, as added by | ||
| Chapter 96 (S.B. 253), Acts of the 85th Legislature, Regular | ||
| Session, 2017, is amended by adding Subchapter D-1 to read as | ||
| follows: | ||
| SUBCHAPTER D-1. GENERAL PROVISIONS RELATING TO INVESTMENTS | ||
| INVOLVING BORDER WALL | ||
| Sec. 2270.0171. DEFINITION. In this subchapter, "business | ||
| operations" means engaging in commerce in any form, including by: | ||
| (1) 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; or | ||
| (2) planning, constructing, or maintaining a project. | ||
| Sec. 2270.0172. SCRUTINIZED BUSINESS OPERATIONS RELATING | ||
| TO BORDER WALL. A company engages in scrutinized business | ||
| operations relating to the border wall if the company has business | ||
| operations that involve planning, constructing, or maintaining the | ||
| border wall, including by providing: | ||
| (1) supplies, equipment, or other personal property; | ||
| or | ||
| (2) personnel. | ||
| SECTION 3. Sections 2270.0201(a) and (b), Government Code, | ||
| as added by Chapter 96 (S.B. 253), Acts of the 85th Legislature, | ||
| Regular Session, 2017, are amended 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); [ |
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| (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, | ||
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| to the border wall, as applicable, including information provided | ||
| by the state, nonprofit organizations, research firms, | ||
| international organizations, and governmental entities. | ||
| SECTION 4. Section 2270.0203, Government Code, as added by | ||
| Chapter 96 (S.B. 253), Acts of the 85th Legislature, Regular | ||
| Session, 2017, 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, [ |
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| foreign terrorist organizations, and relating to the border wall | ||
| 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 5. Section 2270.0204(b), Government Code, as added | ||
| by Chapter 96 (S.B. 253), Acts of the 85th Legislature, Regular | ||
| Session, 2017, is amended to read as follows: | ||
| (b) The notice shall offer the company the opportunity to | ||
| clarify its Sudan-related, Iran-related, [ |
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| terrorist organization-related, or border wall-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, [ |
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| 2270.0172, or convert such operations to inactive business | ||
| operations in order to avoid qualifying for divestment by investing | ||
| entities. | ||
| SECTION 6. Not later than January 1, 2018, the comptroller | ||
| shall: | ||
| (1) prepare an updated list of scrutinized companies | ||
| required by Section 2270.0201, Government Code, as amended by this | ||
| Act, that includes companies that are scrutinized companies | ||
| described by Section 2270.0001(9)(D), Government Code, as added by | ||
| this Act; | ||
| (2) provide the list to each investing entity, as | ||
| defined by Section 2270.0001(7), Government Code; and | ||
| (3) post the list on the comptroller's Internet | ||
| website. | ||
| SECTION 7. This Act takes effect December 1, 2017. | ||
