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A BILL TO BE ENTITLED
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AN ACT
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relating to prohibiting contracts or other agreements with certain |
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foreign-owned companies in connection with critical infrastructure |
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in this state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. This Act may be cited as the Lone Star |
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Infrastructure Protection Act. |
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SECTION 2. Subtitle C, Title 5, Business & Commerce Code, is |
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amended by adding Chapter 113 to read as follows: |
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CHAPTER 113. PROHIBITION ON AGREEMENTS WITH CERTAIN FOREIGN-OWNED |
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COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE |
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Sec. 113.001. DEFINITIONS. In this chapter: |
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(1) "Company" means a for-profit sole proprietorship, |
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organization, association, corporation, partnership, joint |
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venture, limited partnership, limited liability partnership, or |
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limited liability company, including a wholly owned subsidiary, |
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majority-owned subsidiary, parent company, or affiliate of those |
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entities or business associations that exists to make a profit. |
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(2) "Critical infrastructure" means a communication |
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infrastructure system, cybersecurity system, electric grid, |
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hazardous waste treatment system, or water treatment facility. |
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(3) "Cybersecurity" means the measures taken to |
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protect a computer, computer network, computer system, or other |
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technology infrastructure against unauthorized use or access. |
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Sec. 113.002. DESIGNATION OF THREAT TO CRITICAL |
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INFRASTRUCTURE. (a) The governor may designate a country as a |
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threat to critical infrastructure with the consultation of the |
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public safety director of the Department of Public Safety. |
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(b) The governor may consult the Homeland Security Council, |
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as described by Chapter 421, Government Code, to assess a threat to |
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critical infrastructure under this section. |
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Sec. 113.003. PROHIBITED ACCESS TO CRITICAL |
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INFRASTRUCTURE. (a) A business entity may not enter into an |
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agreement relating to critical infrastructure in this state with a |
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company: |
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(1) if, under the agreement, the company would be able |
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to directly or remotely access or control critical infrastructure |
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in this state; and |
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(2) if the company is: |
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(A) owned by or the majority of stock or other |
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ownership interest of the company is held or controlled by: |
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(i) individuals who are citizens of China, |
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Iran, North Korea, Russia, or a country designated under Section |
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113.002; or |
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(ii) a company or other entity, including a |
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governmental entity, that is owned or controlled by citizens of or |
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is directly controlled by the government of China, Iran, North |
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Korea, Russia, or a country designated under Section 113.002; or |
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(B) headquartered in China, Iran, North Korea, |
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Russia, or a country designated under Section 113.002. |
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(b) The prohibition described by Subsection (a) applies |
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regardless of whether: |
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(1) the company's or its parent company's securities |
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are publicly traded; or |
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(2) the company or its parent company is listed as a |
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Chinese, Iranian, North Korean, or Russian company on a public |
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stock exchange. |
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SECTION 2. Subtitle F, Title 10, Government Code, is |
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amended by adding Chapter 2274 to read as follows: |
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CHAPTER 2274. PROHIBITION ON CONTRACTS WITH CERTAIN FOREIGN-OWNED |
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COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE |
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Sec. 2274.0101. DEFINITIONS. In this chapter: |
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(1) "Company" means a for-profit sole proprietorship, |
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organization, association, corporation, partnership, joint |
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venture, limited partnership, limited liability partnership, or |
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limited liability company, including a wholly owned subsidiary, |
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majority-owned subsidiary, parent company, or affiliate of those |
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entities or business associations that exists to make a profit. |
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(2) "Critical infrastructure" means a communication |
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infrastructure system, cybersecurity system, electric grid, |
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hazardous waste treatment system, or water treatment facility. |
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(3) "Cybersecurity" means the measures taken to |
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protect a computer, computer network, computer system, or other |
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technology infrastructure against unauthorized use or access. |
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(4) "Governmental entity" means a state agency or |
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political subdivision of this state. |
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Sec. 2274.0102. PROHIBITED CONTRACTS. (a) A governmental |
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entity may not enter into a contract or other agreement relating to |
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critical infrastructure in this state with a company that is: |
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(1) owned by or the majority of stock or other |
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ownership interest of the company is held or controlled by: |
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(A) individuals who are citizens of China, Iran, |
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North Korea, Russia, or a country designated under Section 113.002; |
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or |
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(B) a company or other entity, including a |
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governmental entity, that is owned or controlled by citizens of or |
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is directly controlled by the government of China, Iran, North |
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Korea, Russia, or a country designated under Section 113.002; or |
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(2) headquartered in China, Iran, North Korea, Russia, |
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or a country designated under Section 113.002. |
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(b) The prohibition described by Subsection (a) applies |
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regardless of whether: |
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(1) the company's or its parent company's securities |
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are publicly traded; or |
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(2) the company or its parent company is listed as a |
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Chinese, Iranian, North Korean, or Russian company on a public |
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stock exchange. |
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SECTION 3. Chapter 113, Business & Commerce Code, as added |
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by this Act, and Chapter 2274, Government Code, as added by this |
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Act, apply to a contract or agreement entered into on or after the |
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effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2021. |