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A BILL TO BE ENTITLED
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AN ACT
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relating to governmental contracts with companies that engage in |
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certain economic boycotts. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 2274, Government Code, as added by |
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Chapter 529 (S.B. 13), Acts of the 87th Legislature, Regular |
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Session, 2021, is amended to read as follows: |
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CHAPTER 2274. PROHIBITION ON CONTRACTS WITH COMPANIES ENGAGING IN |
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CERTAIN ECONOMIC BOYCOTTS [BOYCOTTING CERTAIN ENERGY COMPANIES] |
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Sec. 2274.001. DEFINITIONS. In this chapter: |
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(1) ["Boycott energy company" has the meaning assigned |
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by Section 809.001.] |
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[(2)] "Company" has the meaning assigned by Section |
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809.001, except that the term does not include a sole |
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proprietorship. |
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(2) "Economic boycott" means, without an ordinary |
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business purpose, refusing to deal with, terminating business |
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activities with, or otherwise taking any action that is intended to |
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penalize, inflict economic harm on, limit commercial relations |
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with, or limit the activities of a company because the company, |
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without violating a federal or state law: |
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(A) engages in the exploration, production, |
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utilization, transportation, sale, or manufacturing of fossil |
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fuel-based energy, timber, mining, or agriculture and does not |
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commit or pledge to meet environmental standards beyond applicable |
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federal and state law; |
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(B) does not meet, is not expected to meet, or |
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does not commit to meeting: |
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(i) environmental standards or disclosure |
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criteria, including disclosure criteria relating to the |
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elimination, reduction, or offsetting of greenhouse gas emissions; |
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or |
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(ii) corporate board, employee |
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composition, compensation, or disclosure criteria that |
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incorporates diversity, equity, and inclusion standards; or |
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(C) does business with a company described by |
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Paragraph (A) or (B). |
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(3) "Governmental entity" has the meaning assigned by |
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Section 2251.001. |
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Sec. 2274.002. PROVISION REQUIRED IN CONTRACT. (a) This |
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section applies only to a contract that: |
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(1) is between a governmental entity and a company |
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with 10 or more full-time employees; and |
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(2) has a value of $100,000 or more that is to be paid |
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wholly or partly from public funds of the governmental entity. |
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(b) Except as provided by Subsection (c), a governmental |
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entity may not enter into a contract with a company for goods or |
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services unless the contract contains a written verification from |
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the company that it: |
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(1) does not engage in an economic boycott [energy |
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companies]; and |
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(2) will not engage in an economic boycott [energy |
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companies] during the term of the contract. |
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(c) Subsection (b) does not apply to a governmental entity |
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that determines the requirements of Subsection (b): |
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(1) are inconsistent with the governmental entity's |
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constitutional or statutory duties related to the issuance, |
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incurrence, or management of debt obligations or the deposit, |
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custody, management, borrowing, or investment of funds; or |
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(2) prevent the governmental entity from obtaining |
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necessary goods and services in an economically practical manner. |
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SECTION 2. The changes in law made by this Act apply only to |
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a contract entered into on or after the effective date of this Act. |
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A contract entered into before that date is governed by the law in |
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effect on the date the contract was entered into, and the former law |
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is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2023. |