BILL ANALYSIS

S.B. 252

By: Taylor, Van

State Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties contend that there are insufficient protections in place to prevent governmental entities from contracting with companies engaged in business with certain countries and entities that tolerate, encourage, or engage in terrorist activities. S.B. 252 seeks to address this issue by prohibiting governmental contracts with companies doing business with Iran, Sudan, or a foreign terrorist organization.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 252 amends the Government Code to require the comptroller of public accounts to prepare and maintain, and to make available to each governmental entity, a list of companies known to have contracts with or provide supplies or services to an organization designated as a foreign terrorist organization by the U.S. secretary of state as authorized by federal law. The bill prohibits a governmental entity from entering into a governmental contract with a company that is identified on such a list or on the lists prepared and maintained under statutory provisions relating to prohibitions on investment in Sudan and Iran.   

EFFECTIVE DATE

September 1, 2017.