Bill Text: TX SB120 | 2017 | 85th Legislature 1st Special Session | Introduced


Bill Title: Relating to investment prohibitions and divestment requirements for certain investments of public money in companies involved in the border wall between the United States and Mexico.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2017-08-11 - Filed [SB120 Detail]

Download: Texas-2017-SB120-Introduced.html
  85S12052 KLA-D
 
  By: Garcia, et al. S.B. No. 120
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to investment prohibitions and divestment requirements
  for certain investments of public money in companies involved in
  the border wall between the United States and Mexico.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2270.0001, Government Code, as added by
  Chapter 96 (S.B. 253), Acts of the 85th Legislature, Regular
  Session, 2017, is amended by adding Subdivision (1-a) and amending
  Subdivision (9) to read as follows:
               (1-a)  "Border wall" means a wall, fence, or other
  barrier on the border between the United States and Mexico.
               (9)  "Scrutinized company" means:
                     (A)  a company that:
                           (i)  engages in scrutinized business
  operations described by Section 2270.0052; or
                           (ii)  has been complicit in the Darfur
  genocide during any preceding 20-month period;
                     (B)  a company that engages in scrutinized
  business operations described by Section 2270.0102; [and]
                     (C)  a company that engages in scrutinized
  business operations described by Section 2270.0152; and
                     (D)  a company that engages in scrutinized
  business operations described by Section 2270.0172.
         SECTION 2.  Chapter 2270, Government Code, as added by
  Chapter 96 (S.B. 253), Acts of the 85th Legislature, Regular
  Session, 2017, is amended by adding Subchapter D-1 to read as
  follows:
  SUBCHAPTER D-1. GENERAL PROVISIONS RELATING TO INVESTMENTS
  INVOLVING BORDER WALL
         Sec. 2270.0171.  DEFINITION. In this subchapter, "business
  operations" means engaging in commerce in any form, including by:
               (1)  acquiring, developing, maintaining, owning,
  selling, possessing, leasing, or operating equipment, facilities,
  personnel, products, services, personal property, real property,
  or any other apparatus of business or commerce; or
               (2)  planning, constructing, or maintaining a project.
         Sec. 2270.0172.  SCRUTINIZED BUSINESS OPERATIONS RELATING
  TO BORDER WALL. A company engages in scrutinized business
  operations relating to the border wall if the company has business
  operations that involve planning, constructing, or maintaining the
  border wall, including by providing:
               (1)  supplies, equipment, or other personal property;
  or
               (2)  personnel.
         SECTION 3.  Sections 2270.0201(a) and (b), Government Code,
  as added by Chapter 96 (S.B. 253), Acts of the 85th Legislature,
  Regular Session, 2017, are amended to read as follows:
         (a)  The comptroller shall prepare and maintain a list of all
  scrutinized companies. The list must be categorized according to:
               (1)  companies that are scrutinized companies under
  Section 2270.0001(9)(A);
               (2)  companies that are scrutinized companies under
  Section 2270.0001(9)(B); [and]
               (3)  companies that are scrutinized companies under
  Section 2270.0001(9)(C); and
               (4)  companies that are scrutinized companies under
  Section 2270.0001(9)(D).
         (b)  In maintaining the list of scrutinized companies under
  Subsection (a), the comptroller may review and rely, as appropriate
  in the comptroller's judgment, on publicly available information
  regarding companies with business operations in Sudan, in Iran,
  [or] with designated foreign terrorist organizations, or relating
  to the border wall, as applicable, including information provided
  by the state, nonprofit organizations, research firms,
  international organizations, and governmental entities.
         SECTION 4.  Section 2270.0203, Government Code, as added by
  Chapter 96 (S.B. 253), Acts of the 85th Legislature, Regular
  Session, 2017, is amended to read as follows:
         Sec. 2270.0203.  NOTICE TO LISTED COMPANY ENGAGED IN
  INACTIVE BUSINESS OPERATIONS. For each listed company identified
  under Section 2270.0202 that is engaged in only inactive
  scrutinized business operations, the investing entity shall send a
  written notice informing the company of this chapter and
  encouraging the company to continue to refrain from initiating
  active business operations in Sudan, in Iran, [and] with designated
  foreign terrorist organizations, and relating to the border wall
  until it is able to avoid being considered a listed company. The
  investing entity shall continue the correspondence as the entity
  considers necessary, but is not required to initiate correspondence
  more often than semiannually.
         SECTION 5.  Section 2270.0204(b), Government Code, as added
  by Chapter 96 (S.B. 253), Acts of the 85th Legislature, Regular
  Session, 2017, is amended to read as follows:
         (b)  The notice shall offer the company the opportunity to
  clarify its Sudan-related, Iran-related, [or] designated foreign
  terrorist organization-related, or border wall-related activities,
  as applicable, and shall encourage the company, not later than the
  90th day after the date the company receives notice under this
  section, to either cease all scrutinized business operations as
  described by Sections 2270.0052, 2270.0102, [and] 2270.0152, and
  2270.0172, or convert such operations to inactive business
  operations in order to avoid qualifying for divestment by investing
  entities.
         SECTION 6.  Not later than January 1, 2018, the comptroller
  shall:
               (1)  prepare an updated list of scrutinized companies
  required by Section 2270.0201, Government Code, as amended by this
  Act, that includes companies that are scrutinized companies
  described by Section 2270.0001(9)(D), Government Code, as added by
  this Act;
               (2)  provide the list to each investing entity, as
  defined by Section 2270.0001(7), Government Code; and
               (3)  post the list on the comptroller's Internet
  website.
         SECTION 7.  This Act takes effect December 1, 2017.
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