By: Hughes, Kolkhorst	S.B. No. 2530

	A BILL TO BE ENTITLED
	AN ACT
	relating to contracts with and investments in companies that
	boycott certain energy companies.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Sections 809.001(1) and (4), Government Code,
	are amended to read as follows:
	(1)  "Boycott energy company" means, without an
	ordinary business purpose, refusing to deal with, terminating
	business activities with, or otherwise taking any action that is
	intended to penalize, inflict economic harm on, or limit commercial
	relations with a company because the company:
	(A)  engages in the exploration, production,
	utilization, transportation, sale, or manufacturing of fossil
	fuel-based energy and does not commit or pledge to meet
	environmental standards beyond applicable federal and state law;
	(B)  engages in the exploration, production,
	utilization, transportation, sale, or manufacturing of fossil
	fuel-based energy; or
	(C) [(B)]  does business with a company described
	by Paragraph (A) or (B).
	(4)  "Financial company" means a publicly traded:
	(A)  financial services or[,] banking company;[,]
	or
	(B)  investment company, including a mutual fund
	or exchange-traded fund.
	SECTION 2.  Section 809.101, Government Code, is amended to
	read as follows:
	Sec. 809.101.  REPORT. (a)  In this section, "affiliate"
	means a person who controls, is controlled by, or is under common
	control with another person.
	(b)  Not later than January 5 of each year, each state
	governmental entity shall file a publicly available report with the
	presiding officer of each house of the legislature, the
	comptroller, and the attorney general that:
	(1)  identifies all:
	(A)  securities sold, redeemed, divested, or
	withdrawn in compliance with Section 809.054;
	(B)  [(2)  identifies all] prohibited investments
	under Section 809.057;
	(C)  contracts with a listed financial company;
	and
	(D)  contracts with an affiliate of a listed
	financial services or banking company; and
	(2) [(3)]  summarizes any changes made under Section
	809.055.
	SECTION 3.  Chapter 809, Government Code, is amended by
	adding Subchapter D to read as follows:
	SUBCHAPTER D.  CONTRACTS WITH COMPANIES BOYCOTTING CERTAIN ENERGY
	COMPANIES
	Sec. 809.151.  PROVISION REQUIRED IN CONTRACT.  (a)  In
	this section, "affiliate" has the meaning assigned by Section
	809.101.
	(b)  This section applies only to a contract that:
	(1)  is between a state 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 state governmental
	entity.
	(c)  Except as provided by Subsection (d), a state
	governmental entity may not enter into a contract with a company
	unless the contract contains a written verification from the
	company that it:
	(1)  does not boycott energy companies;
	(2)  will not boycott energy companies during the term
	of the contract;
	(3)  is not a listed financial company; and
	(4)  is not an affiliate of a listed financial services
	or banking company.
	(d)  Subsection (c) does not apply to a state governmental
	entity that determines the requirements of Subsection (c) are
	inconsistent with the state governmental entity's constitutional
	or statutory duties related to the issuance, incurrence, or
	management of debt obligations or the deposit, custody, management,
	borrowing, or investment of funds.
	SECTION 4.  Subchapter D, Chapter 809, Government Code, as
	added by this Act, applies only to a contract entered into on or
	after the effective date of this Act.  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 5.  This Act takes effect September 1, 2023.