Bill Text: TX SB2116 | 2021-2022 | 87th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to prohibiting contracts or other agreements with certain foreign-owned companies in connection with critical infrastructure in this state.
Spectrum: Partisan Bill (Republican 10-0)
Status: (Passed) 2021-06-18 - Effective immediately [SB2116 Detail]
Download: Texas-2021-SB2116-Introduced.html
Bill Title: Relating to prohibiting contracts or other agreements with certain foreign-owned companies in connection with critical infrastructure in this state.
Spectrum: Partisan Bill (Republican 10-0)
Status: (Passed) 2021-06-18 - Effective immediately [SB2116 Detail]
Download: Texas-2021-SB2116-Introduced.html
By: Campbell, Hall | S.B. No. 2116 | |
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relating to prohibiting contracts or other agreements with certain | ||
foreign-owned companies in connection with critical infrastructure | ||
in this state. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. This Act may be cited as the Lone Star | ||
Infrastructure Protection Act. | ||
SECTION 2. Subtitle C, Title 5, Business & Commerce Code, is | ||
amended by adding Chapter 113 to read as follows: | ||
CHAPTER 113. PROHIBITION ON AGREEMENTS WITH CERTAIN FOREIGN-OWNED | ||
COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE | ||
Sec. 113.001. DEFINITIONS. In this chapter: | ||
(1) "Company" means a for-profit 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) "Critical infrastructure" means a communication | ||
infrastructure system, cybersecurity system, electric grid, | ||
hazardous waste treatment system, or water treatment facility. | ||
(3) "Cybersecurity" means the measures taken to | ||
protect a computer, computer network, computer system, or other | ||
technology infrastructure against unauthorized use or access. | ||
Sec. 113.002. DESIGNATION OF THREAT TO CRITICAL | ||
INFRASTRUCTURE. (a) The governor may designate a country as a | ||
threat to critical infrastructure with the consultation of the | ||
public safety director of the Department of Public Safety. | ||
(b) The governor may consult the Homeland Security Council, | ||
as described by Chapter 421, Government Code, to assess a threat to | ||
critical infrastructure under this section. | ||
Sec. 113.003. PROHIBITED ACCESS TO CRITICAL | ||
INFRASTRUCTURE. (a) A business entity may not enter into an | ||
agreement relating to critical infrastructure in this state with a | ||
company: | ||
(1) if, under the agreement, the company would be able | ||
to directly or remotely access or control critical infrastructure | ||
in this state; and | ||
(2) if the company is: | ||
(A) owned by or the majority of stock or other | ||
ownership interest of the company is held or controlled by: | ||
(i) individuals who are citizens of China, | ||
Iran, North Korea, Russia, or a country designated under Section | ||
113.002; or | ||
(ii) a company or other entity, including a | ||
governmental entity, that is owned or controlled by citizens of or | ||
is directly controlled by the government of China, Iran, North | ||
Korea, Russia, or a country designated under Section 113.002; or | ||
(B) headquartered in China, Iran, North Korea, | ||
Russia, or a country designated under Section 113.002. | ||
(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 as a | ||
Chinese, Iranian, North Korean, or Russian company on a public | ||
stock exchange. | ||
SECTION 2. Subtitle F, Title 10, Government Code, is | ||
amended by adding Chapter 2274 to read as follows: | ||
CHAPTER 2274. PROHIBITION ON CONTRACTS WITH CERTAIN FOREIGN-OWNED | ||
COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE | ||
Sec. 2274.0101. DEFINITIONS. In this chapter: | ||
(1) "Company" means a for-profit 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) "Critical infrastructure" means a communication | ||
infrastructure system, cybersecurity system, electric grid, | ||
hazardous waste treatment system, or water treatment facility. | ||
(3) "Cybersecurity" means the measures taken to | ||
protect a computer, computer network, computer system, or other | ||
technology infrastructure against unauthorized use or access. | ||
(4) "Governmental entity" means a state agency or | ||
political subdivision of this state. | ||
Sec. 2274.0102. PROHIBITED CONTRACTS. (a) A governmental | ||
entity may not enter into a contract or other agreement relating to | ||
critical infrastructure in this state with a company that is: | ||
(1) owned by or the majority of stock or other | ||
ownership interest of the company is held or controlled by: | ||
(A) individuals who are citizens of China, Iran, | ||
North Korea, Russia, or a country designated under Section 113.002; | ||
or | ||
(B) a company or other entity, including a | ||
governmental entity, that is owned or controlled by citizens of or | ||
is directly controlled by the government of China, Iran, North | ||
Korea, Russia, or a country designated under Section 113.002; or | ||
(2) headquartered in China, Iran, North Korea, Russia, | ||
or a country designated under Section 113.002. | ||
(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 as a | ||
Chinese, Iranian, North Korean, or Russian company on a public | ||
stock exchange. | ||
SECTION 3. Chapter 113, Business & Commerce Code, as added | ||
by this Act, and Chapter 2274, Government Code, as added by this | ||
Act, apply to a contract or agreement entered into on or after the | ||
effective date of this Act. | ||
SECTION 4. This Act takes effect September 1, 2021. |