Bill Text: TX SB2116 | 2021-2022 | 87th Legislature | Enrolled
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-Enrolled.html
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 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 | ||
granted direct or remote access to or control of critical | ||
infrastructure in this state, excluding access specifically | ||
allowed by the business entity for product warranty and support | ||
purposes; and | ||
(2) if the business entity knows that 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 shall 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: | ||
(1) if, under the contract or other agreement, the | ||
company would be granted direct or remote access to or control of | ||
critical infrastructure in this state, excluding access | ||
specifically allowed by the governmental entity for product | ||
warranty and support purposes; and | ||
(2) if the governmental entity knows that 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. 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 shall 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 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, 2021. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 2116 passed the Senate on | ||
April 26, 2021, by the following vote: Yeas 31, Nays 0; and that | ||
the Senate concurred in House amendments on May 29, 2021, by the | ||
following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 2116 passed the House, with | ||
amendments, on May 24, 2021, by the following vote: Yeas 141, | ||
Nays 0, one present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |