Bill Text: TX HB2244 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to a prohibition on state contracts to purchase electric vehicles and related components produced in scrutinized countries; authorizing a civil penalty.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-01-29 - Filed [HB2244 Detail]
Download: Texas-2025-HB2244-Introduced.html
| 89R10594 LRM-F | ||
| By: Cain | H.B. No. 2244 | |
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| relating to a prohibition on state contracts to purchase electric | ||
| vehicles and related components produced in scrutinized countries; | ||
| authorizing a civil penalty. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subtitle F, Title 10, Government Code, is | ||
| amended by adding Chapter 2278 to read as follows: | ||
| CHAPTER 2278. PROHIBITION ON STATE CONTRACTS FOR ELECTRIC VEHICLES | ||
| AND RELATED COMPONENTS PRODUCED IN SCRUTINIZED COUNTRIES | ||
| Sec. 2278.001. 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) "Electric vehicle" means a motor vehicle that | ||
| draws propulsion energy only from a rechargeable energy storage | ||
| system. | ||
| (3) "Forced labor or services" has the meaning | ||
| assigned by Section 20A.01, Penal Code. | ||
| (4) "Nonprofit organization" means an entity that is | ||
| exempt from federal income tax under Section 501(a), Internal | ||
| Revenue Code of 1986, by being listed as an exempt entity under | ||
| Section 501(c) of that code, has submitted an application with the | ||
| Internal Revenue Service for recognition of an exemption under | ||
| Section 501(c) of that code, or is a nonprofit corporation or | ||
| association organized or formed under the laws of this state or | ||
| another state. | ||
| (5) "Scrutinized country" means the People's Republic | ||
| of China. | ||
| Sec. 2278.002. PROVISION REQUIRED IN STATE CONTRACTS. (a) | ||
| A state agency may not enter into a contract with a vendor to | ||
| purchase an electric vehicle or any component of an electric | ||
| vehicle unless the contract contains a written verification from | ||
| the vendor that: | ||
| (1) the vendor is not: | ||
| (A) a company organized under the laws of or | ||
| headquartered in a scrutinized country; | ||
| (B) a company owned, operated, or directly | ||
| controlled by the government of a scrutinized country; | ||
| (C) a nonprofit organization or | ||
| government-organized nongovernmental organization organized under | ||
| the laws of or headquartered in a scrutinized country; or | ||
| (D) a company or nonprofit organization that | ||
| subcontracts with a company or organization described by Paragraphs | ||
| (A)-(C) for production of any component of an electric vehicle; | ||
| (2) the electric vehicle or component of an electric | ||
| vehicle was not mined, produced, or manufactured wholly or partly | ||
| in a scrutinized country; or | ||
| (3) the vendor or any subcontractor of the vendor has | ||
| not used forced labor or services in the production of the electric | ||
| vehicle or component. | ||
| (b) The prohibitions described by Subsection (a) apply | ||
| 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 company of a scrutinized country. | ||
| Sec. 2278.003. CONTRACT TERMINATION FOR FALSE | ||
| VERIFICATION; BARRING FROM STATE CONTRACTS. (a) If a state agency | ||
| determines that a vendor holding a contract with the state agency | ||
| was ineligible for the contract awarded under Section 2278.002 | ||
| because the vendor's written verification was false, the state | ||
| agency shall immediately terminate the contract without further | ||
| obligation to the vendor. | ||
| (b) A vendor described by Subsection (a) is barred from | ||
| responding to a solicitation for or contracting for goods or | ||
| services procured by any state agency. | ||
| Sec. 2278.004. ATTORNEY GENERAL ENFORCEMENT; CIVIL | ||
| PENALTY; INJUNCTION. (a) A vendor that is in violation of this | ||
| chapter is liable for a civil penalty not to exceed $250,000 for | ||
| each violation. | ||
| (b) The attorney general may bring an action in the name of | ||
| this state to: | ||
| (1) recover a civil penalty under this section; | ||
| (2) restrain or enjoin the vendor from violating this | ||
| chapter; or | ||
| (3) recover the civil penalty and seek injunctive | ||
| relief. | ||
| (c) The attorney general may recover reasonable attorney's | ||
| fees and court costs in bringing an action under this section. | ||
| SECTION 2. Section 2278.002, Government Code, as added by | ||
| this Act, applies only to a contract entered into on or after the | ||
| effective date of this Act. A contract entered into before the | ||
| effective date of this Act is governed by the law in effect on the | ||
| date the contract was entered into, and the former law is continued | ||
| in effect for that purpose. | ||
| SECTION 3. This Act takes effect September 1, 2025. | ||
