Bill Text: TX SB2116 | 2021-2022 | 87th Legislature | Engrossed

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-Engrossed.html
 
 
  By: Campbell, et al. S.B. No. 2116
 
 
A BILL TO BE ENTITLED
 
AN ACT
  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 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)  "Designated country" means a country designated by
  the governor as a threat to critical infrastructure under Section
  113.003.
         Sec. 113.002.  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 designated country; 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 designated country; or
                     (B)  headquartered in China, Iran, North Korea,
  Russia, or a designated country.
         (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)  a Chinese, Iranian, North Korean, or Russian
  company; or
                     (B)  a company of a designated country.
         Sec. 113.003.  DESIGNATION OF COUNTRY AS THREAT TO CRITICAL
  INFRASTRUCTURE. (a) The governor, after consultation with the
  public safety director of the Department of Public Safety, may
  designate a country as a threat to critical infrastructure for
  purposes of this chapter.
         (b)  The governor may consult the Homeland Security Council,
  established under Subchapter B, Chapter 421, Government Code, to
  assess a threat to critical infrastructure for purposes of making a
  designation under this section.
         SECTION 3.  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 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)  "Designated country" means a country designated by
  the governor as a threat to critical infrastructure under Section
  2274.0103.
               (5)  "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 designated country; 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 designated country; or
               (2)  headquartered in China, Iran, North Korea, Russia,
  or a designated country.
         (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)  a Chinese, Iranian, North Korean, or Russian
  company; or
                     (B)  a company of a designated country.
         Sec. 2274.0103.  DESIGNATION OF COUNTRY AS THREAT TO
  CRITICAL INFRASTRUCTURE. (a) The governor, after consultation
  with the public safety director of the Department of Public Safety,
  may designate a country as a threat to critical infrastructure for
  purposes of this chapter.
         (b)  The governor may consult the Homeland Security Council,
  established under Subchapter B, Chapter 421, to assess a threat to
  critical infrastructure for purposes of making a designation under
  this section.
         SECTION 4.  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 5.  This Act takes effect September 1, 2021.
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