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A BILL TO BE ENTITLED
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AN ACT
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relating to access to and the security of certain critical |
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infrastructure. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 113.001, Business & Commerce Code, as |
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added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, |
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Regular Session, 2021, is amended by adding Subdivision (5) to read |
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as follows: |
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(5) "Affiliate," with respect to a company entering |
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into an agreement in which the critical infrastructure is electric |
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grid equipment, has the meaning assigned by the protocols of the |
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independent organization certified under Section 39.151, Utilities |
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Code, for the ERCOT power region. |
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SECTION 2. Subchapter F, Chapter 411, Government Code, is |
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amended by adding Section 411.1183 to read as follows: |
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Sec. 411.1183. ACCESS TO CRIMINAL HISTORY RECORD |
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INFORMATION: INDEPENDENT ORGANIZATION CERTIFIED UNDER UTILITIES |
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CODE. (a) An independent organization certified under Section |
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39.151, Utilities Code, for security reasons is entitled to obtain |
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from the department criminal history record information maintained |
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by the department that relates to a person who has or is seeking |
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employment at or access to the independent organization's systems |
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that affect the security of the electric grid. |
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(b) Criminal history record information obtained from the |
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department may not be released or disclosed except: |
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(1) as needed in protecting the security of the |
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electric grid; |
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(2) as authorized by a court order or a federal or |
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state law or order; or |
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(3) with the consent of the person who is the subject |
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of the criminal history record information. |
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SECTION 3. Section 2274.0101, Government Code, as added by |
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Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular |
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Session, 2021, is amended by amending Subdivision (5) and adding |
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Subdivision (6) to read as follows: |
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(5) "Governmental entity" means a state agency, a [or] |
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political subdivision, or an independent organization certified |
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under Section 39.151, Utilities Code, to perform a function |
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described by Section 39.151(a), Utilities Code [of this state]. |
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(6) "Affiliate," with respect to a company entering |
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into an agreement in which the critical infrastructure is electric |
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grid equipment, has the meaning assigned by the protocols of the |
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independent organization certified under Section 39.151, Utilities |
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Code, for the ERCOT power region. |
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SECTION 4. Section 39.151, Utilities Code, is amended by |
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adding Subsection (g-7) to read as follows: |
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(g-7) To maintain certification as an independent |
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organization under this section, the organization must: |
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(1) identify all employee positions in the |
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organization that are critical to the security of the electric |
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grid; and |
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(2) before hiring a person for a position described by |
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Subdivision (1), obtain from the Department of Public Safety or a |
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private vendor criminal history record information relating to the |
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prospective employee and any other background information |
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considered necessary by the independent organization or required by |
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the commission. |
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SECTION 5. Subchapter H, Chapter 39, Utilities Code, is |
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amended by adding Section 39.360 to read as follows: |
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Sec. 39.360. TRANSACTIONS WITH CERTAIN FOREIGN-OWNED |
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COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE. (a) In this |
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section, "company" and "critical infrastructure" have the meanings |
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assigned by Section 113.001, Business & Commerce Code, as added by |
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Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular |
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Session, 2021. |
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(b) An independent organization certified under Section |
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39.151 may not register a business entity or maintain the |
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registration of a business entity to operate in the power region for |
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which the independent organization is certified unless the business |
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entity attests that the entity complies with Chapter 113, Business & |
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Commerce Code, as added by Chapter 975 (S.B. 2116), Acts of the |
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87th Legislature, Regular Session, 2021. |
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(c) An independent organization certified under Section |
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39.151 shall require as a condition of operating in the power region |
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for which the independent organization is certified that a business |
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entity report to the independent organization the purchase of any |
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critical electric grid equipment or service from a company |
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described by Section 113.002(a)(2), Business & Commerce Code, as |
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added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, |
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Regular Session, 2021. |
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(d) For each purchase reported by a business entity under |
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Subsection (c), the business entity shall submit an attestation to |
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the independent organization that the purchase will not result in |
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access to or control of its critical electric grid equipment by a |
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company described by Section 113.002(a)(2), Business & Commerce |
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Code, as added by Chapter 975 (S.B. 2116), Acts of the 87th |
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Legislature, Regular Session, 2021. |
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(e) Notwithstanding any other law, an independent |
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organization certified under Section 39.151 may immediately |
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suspend or terminate a company's registration or access to any of |
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the independent organization's systems if the independent |
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organization has a reasonable suspicion that the company meets any |
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of the criteria described by Section 2274.0102(a)(2), Government |
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Code, as added by Chapter 975 (S.B. 2116), Acts of the 87th |
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Legislature, Regular Session, 2021. |
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(f) A contractual provision that limits or contradicts |
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Subsection (e) is contrary to public policy and is unenforceable |
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and void. |
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(g) An independent organization certified under Section |
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39.151 may adopt guidelines or procedures relating to the |
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requirements in this section, including the qualification of |
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electric grid equipment or services as critical. |
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(h) The commission shall adopt any rules necessary to |
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administer this section or authorize an independent organization to |
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carry out a duty imposed by this section. |
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SECTION 6. The changes made to Chapter 113, Business & |
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Commerce Code, and Chapter 2274, Government Code, apply only to a |
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contract or agreement entered into on or after the effective date of |
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this Act. |
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SECTION 7. (a) For the purposes of Section 39.360(c), |
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Utilities Code, as added by this Act, a business entity operating in |
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a power region on the effective date of this Act shall report to the |
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independent organization certified for that power region under |
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Section 39.151, Utilities Code, any purchase made within the five |
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years preceding the effective date of this Act. |
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(b) For any past purchase reported by a business entity as |
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described by Subsection (a) of this section, the business entity |
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shall take reasonable and necessary actions to mitigate access to |
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or control of its critical electric grid equipment by a company |
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described by Section 113.002(a)(2), Business & Commerce Code, as |
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added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, |
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Regular Session, 2021, and report those actions to the independent |
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organization. |
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SECTION 8. It is the intent of the 88th Legislature, Regular |
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Session, 2023, that the amendments made by this Act be harmonized |
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with another Act of the 88th Legislature, Regular Session, 2023, |
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relating to nonsubstantive additions to and corrections in enacted |
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codes. |
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SECTION 9. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |