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