BILL ANALYSIS

Senate Research Center	H.B. 793
86R5861 TSR-F	By: King, Phil et al. (Creighton)
	Business & Commerce
	4/24/2019
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

It has been noted that recent legislation was passed to prevent taxpayer resources from supporting businesses engaged in discriminatory trade practices against Israel by prohibiting certain governmental contracts with companies that boycott Israel. H.B. 793 seeks to clarify the applicability of that prohibition.

H.B. 793 amends the Government Code to limit the applicability of the prohibition on certain governmental contracts with companies that boycott Israel to a contract that is between a governmental entity and a company with 10 or more full-time employees and that has a value of $100,000 or more to be paid wholly or partly from the entity's public funds. The bill excludes a sole proprietorship as a company for purposes of this prohibition.

H.B. 793 amends current law relating to certain government contracts with companies that boycott Israel.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 2270.001(2), Government Code, as added by Chapter 1 (H.B. 89), Acts of the 85th Legislature, Regular Session, 2017, to redefine "company."

SECTION 2. Amends Section 2270.002, Government Code, as added by Chapter 1 (H.B. 89), Acts of the 85th Legislature, Regular Session, 2017, as follows:

Sec. 2270.002.� PROVISION REQUIRED IN CONTRACT.� (a) Provides that this section applies only to a contract that is between a governmental entity and a company with 10 or more full-time employees and that has a value of $100,000 or more that is to be paid wholly or partly from public funds of the governmental entity.

(b) Creates this subsection from existing text.

SECTION 3. Effective date: upon passage or September 1, 2019.