Bill Text: TX SB1817 | 2023-2024 | 88th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Comm_Sub.html

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By: Bettencourt, et al. S.B. No. 1817
(In the Senate - Filed March 7, 2023; March 20, 2023, read
first time and referred to Committee on State Affairs;
April 20, 2023, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 10, Nays 0; April 20, 2023,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 1817 By: Hughes

A BILL TO BE ENTITLED
AN ACT
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; [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 2270.0162.
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); [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 in the
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, [and] with designated
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, [or] designated foreign
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, [and]
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.
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