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Senate Bill 13 |
Senate Author: Birdwell et al. |
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Effective: 9-1-21 |
House Sponsor: King, Phil et al. |
Senate Bill 13 amends the Government Code to prohibit a state agency or political subdivision from entering into a qualifying contract with a value of $100,000 or more for goods and services unless the contract contains a written verification from the contracted company that it does not and will not during the contract term boycott energy companies. That prohibition does not apply to a governmental entity that determines that the prohibition is inconsistent with its constitutional or statutory duties related to the issuance, incurrence, or management of debt obligations or the deposit, custody, management, borrowing, or investment of funds.
Senate Bill 13 also requires the comptroller of public accounts to prepare, maintain, and provide to the permanent school fund (PSF) and each statewide retirement system a list of all financial companies that boycott energy companies. The bill provides for the divestment of certain assets the PSF or any such retirement system holds in a listed company that does not cease boycotting energy companies within a specified time frame, exempts certain investments from divestment, prohibits the PSF or an applicable retirement system from acquiring securities of a listed company, and establishes certain reporting requirements for the PSF and the retirement systems. The bill authorizes the attorney general to bring any action necessary to enforce the prohibition on investment in companies that boycott energy companies.