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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting the investment of state funds in certain |
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companies doing business with significant foreign narcotics |
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traffickers. |
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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, is amended |
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by adding Subdivision (3-a) and amending Subdivision (9) to read as |
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follows: |
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(3-a) "Designated significant foreign narcotics |
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trafficker" means a person listed by the comptroller under Section |
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2270.0163. |
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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 2270.0162. |
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SECTION 2. Section 2270.0002, Government Code, is amended |
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to read as follows: |
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Sec. 2270.0002. EXCEPTION. Notwithstanding any other law, |
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a company that the United States government affirmatively declares |
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to be excluded from its federal sanctions regime relating to Sudan, |
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its federal sanctions regime relating to Iran, [or] any federal |
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sanctions regime relating to a designated foreign terrorist |
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organization, or any federal sanctions regime relating to a |
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significant foreign narcotics trafficker is not subject to |
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divestment or investment prohibition under this chapter. |
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SECTION 3. Chapter 2270, Government Code, is amended by |
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adding Subchapter D-1 to read as follows: |
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SUBCHAPTER D-1. GENERAL PROVISIONS RELATING TO INVESTMENTS IN |
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CERTAIN SIGNIFICANT FOREIGN NARCOTICS TRAFFICKERS |
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Sec. 2270.0161. BUSINESS OPERATIONS DEFINED. In this |
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subchapter, "business operations" has the meaning assigned by |
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Section 2270.0151. |
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Sec. 2270.0162. SCRUTINIZED BUSINESS OPERATIONS WITH |
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DESIGNATED SIGNIFICANT FOREIGN NARCOTICS TRAFFICKER. A company |
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engages in scrutinized business operations with a designated |
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significant foreign narcotics trafficker if the company has |
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business operations that involve: |
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(1) a contract with or providing supplies or services |
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to a designated significant foreign narcotics trafficker; |
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(2) a company in which a designated significant |
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foreign narcotics trafficker has any direct or indirect equity |
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share; |
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(3) a consortium or project commissioned by a |
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designated significant foreign narcotics trafficker; or |
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(4) a company involved in a consortium or project |
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commissioned by a designated significant foreign narcotics |
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trafficker. |
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Sec. 2270.0163. LIST OF DESIGNATED SIGNIFICANT FOREIGN |
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NARCOTICS TRAFFICKERS. (a) The comptroller shall prepare and |
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maintain a list of designated significant foreign narcotics |
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traffickers that is made up of significant foreign narcotics |
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traffickers and other related persons designated by the president |
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of the United States or the United States secretary of the treasury |
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under 21 U.S.C. Sections 1903-1904. |
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(b) The comptroller shall maintain the list by updating the |
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list as necessary to reflect changes in the persons designated as |
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significant foreign narcotics traffickers and other related |
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persons as described by Subsection (a). |
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(c) Not later than the 30th day after the date the |
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comptroller first prepares or updates the list of designated |
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significant foreign narcotics traffickers as required by this |
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section, the comptroller shall: |
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(1) file the list with the presiding officer of each |
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house of the legislature and the attorney general; and |
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(2) post the list on the comptroller's Internet |
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website. |
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SECTION 4. Sections 2270.0201(a) and (b), Government Code, |
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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 with |
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designated significant foreign narcotics traffickers, as |
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applicable, including information provided by the state, nonprofit |
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organizations, research firms, international organizations, and |
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governmental entities. |
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SECTION 5. Section 2270.0203, Government Code, is amended |
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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 with designated significant |
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foreign narcotics traffickers until it is able to avoid being |
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considered a listed company. The investing entity shall continue |
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the correspondence as the entity considers necessary, but is not |
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required to initiate correspondence more often than semiannually. |
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SECTION 6. Section 2270.0204(b), Government Code, is |
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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 designated significant foreign |
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narcotics trafficker-related activities, as applicable, and shall |
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encourage the company, not later than the 90th day after the date |
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the company receives notice under this section, to either cease all |
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scrutinized business operations as described by Sections |
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2270.0052, 2270.0102, [and] 2270.0152, and 2270.0162, or convert |
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such operations to inactive business operations in order to avoid |
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qualifying for divestment by investing entities. |
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SECTION 7. Not later than December 1, 2023, the comptroller |
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of public accounts shall prepare the initial list of designated |
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significant foreign narcotics traffickers as required by Section |
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2270.0163, Government Code, as added by this Act. |
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SECTION 8. Not later than January 1, 2024, 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 9. This Act takes effect September 1, 2023. |