Bill Text: TX HB982 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to a prohibition on contracts with certain companies that use certain environmental, social, and governance criteria.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-02 - Referred to State Affairs [HB982 Detail]
Download: Texas-2023-HB982-Introduced.html
| By: Toth | H.B. No. 982 | |
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| relating to a prohibition on contracts with certain companies that | ||
| use certain environmental, social, and governance criteria. | ||
| 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 CONTRACTS WITH COMPANIES THAT USE | ||
| PROHIBITED ESG CRITERIA | ||
| Sec. 2278.001. DEFINITIONS. In this chapter: | ||
| (1) "Company" has the meaning assigned by Section | ||
| 808.001, except that the term does not include a sole | ||
| proprietorship. | ||
| (2) "Governmental entity" means a state agency or | ||
| political subdivision of this state. | ||
| (3) "Prohibited ESG criteria" means environmental, | ||
| social, and governance criteria that furthers political policies at | ||
| the expense of the Texas economy and company shareholders. | ||
| Sec. 2278.002. PROVISION REQUIRED IN CONTRACT. (a) This | ||
| section applies only to a contract that: | ||
| (1) is between a governmental entity and a company | ||
| with 10 or more full-time employees; and | ||
| (2) has a value of $100,000 or more that is to be paid | ||
| wholly or partly from public funds of the governmental entity. | ||
| (b) A governmental entity may not enter into a contract with | ||
| a company for goods or services unless the contract contains a | ||
| written verification from the company that it does not, and will not | ||
| during the term of the contract, use prohibited ESG criteria to | ||
| evaluate a business decision or investment strategy. | ||
| SECTION 2. Section 2278.002, Government Code, as added by | ||
| this Act, applies only to a contract entered into on or after | ||
| January 1, 2024. A contract entered into before that date 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, 2023. | ||
