Bill Text: TX SB1817 | 2023-2024 | 88th Legislature | Engrossed
Bill Title: Relating to investments in certain companies doing business in the Russian Federation.
Spectrum: Slight Partisan Bill (Republican 19-12)
Status: (Engrossed - Dead) 2023-05-04 - Referred to State Affairs [SB1817 Detail]
Download: Texas-2023-SB1817-Engrossed.html
By: Bettencourt, et al. | S.B. No. 1817 |
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relating to investments in certain companies doing business in the | ||
Russian Federation. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2270.0001(9), Government Code, is | ||
amended to read as follows: | ||
(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; [ |
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(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 2270.0162. | ||
SECTION 2. Section 2270.0002, Government Code, is amended | ||
to read as follows: | ||
Sec. 2270.0002. EXCEPTION. (a) Notwithstanding any other | ||
law, a company that the United States government affirmatively | ||
declares to be excluded from its federal sanctions regime relating | ||
to Sudan, its federal sanctions regime relating to Iran, or any | ||
federal sanctions regime relating to a designated foreign terrorist | ||
organization is not subject to divestment or investment prohibition | ||
under this chapter. | ||
(b) Notwithstanding any other law, a company that complies | ||
with the United States government federal sanctions regime relating | ||
to the Russian Federation, including any exemption or federal | ||
guidance, is not subject to divestment or investment prohibition | ||
under this chapter. | ||
SECTION 3. Chapter 2270, Government Code, is amended by | ||
adding Subchapter D-1 to read as follows: | ||
SUBCHAPTER D-1. GENERAL PROVISIONS RELATING TO INVESTMENTS IN | ||
RUSSIAN FEDERATION | ||
Sec. 2270.0161. DEFINITION. In this subchapter, "business | ||
operations" means engaging in commerce in any form in the Russian | ||
Federation, including by 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. | ||
Sec. 2270.0162. SCRUTINIZED BUSINESS OPERATIONS IN RUSSIAN | ||
FEDERATION. A company engages in scrutinized business operations | ||
in the Russian Federation if the company has business operations | ||
that involve contracts with or providing supplies or services to | ||
the government of the Russian Federation, a company in which the | ||
government of the Russian Federation has any direct or indirect | ||
equity share, a consortium or project commissioned by the | ||
government of the Russian Federation, or a company involved in a | ||
consortium or project commissioned by the government of the Russian | ||
Federation. | ||
SECTION 4. Section 2270.0201, Government Code, is amended | ||
by amending Subsections (a) and (b) and adding Subsection (b-1) 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); [ |
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(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, | ||
[ |
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Russian Federation, as applicable, including information provided | ||
by the state, nonprofit organizations, research firms, | ||
international organizations, and governmental entities. | ||
(b-1) The governor shall periodically consult with the | ||
Homeland Security Council, established under Subchapter B, Chapter | ||
421, to review whether a company that is a scrutinized company under | ||
Section 2270.0001(9)(D) should be included or continue to be | ||
included on the list of scrutinized companies maintained under this | ||
section and may, after consulting with the council, direct the | ||
comptroller to remove a company from the list. | ||
SECTION 5. Section 2270.0203, Government Code, 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, [ |
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foreign terrorist organizations, and in the Russian Federation | ||
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 6. Section 2270.0204(b), Government Code, is | ||
amended to read as follows: | ||
(b) The notice shall offer the company the opportunity to | ||
clarify its Sudan-related, Iran-related, [ |
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terrorist organization-related, or Russian Federation-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, [ |
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2270.0152, and 2270.0162, or convert such operations to inactive | ||
business operations in order to avoid qualifying for divestment by | ||
investing entities. | ||
SECTION 7. Not later than the 180th day after the effective | ||
date of this Act, the comptroller of public accounts shall include | ||
the companies described by Section 2270.0201(a)(4), Government | ||
Code, as added by this Act, on the list under Section 2270.0201(a), | ||
Government Code. | ||
SECTION 8. 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, 2023. |