By: Campbell, Hall S.B. No. 2116
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to prohibiting contracts or other agreements with certain
  foreign-owned companies in connection with critical infrastructure
  in this state.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  This Act may be cited as the Lone Star
  Infrastructure Protection Act.
         SECTION 2.  Subtitle C, Title 5, Business & Commerce Code, is
  amended by adding Chapter 113 to read as follows:
  CHAPTER 113. PROHIBITION ON AGREEMENTS WITH CERTAIN FOREIGN-OWNED
  COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE
         Sec. 113.001.  DEFINITIONS. In this chapter:
               (1)  "Company" means a for-profit sole proprietorship,
  organization, association, corporation, partnership, joint
  venture, limited partnership, limited liability partnership, or
  limited liability company, including a wholly owned subsidiary,
  majority-owned subsidiary, parent company, or affiliate of those
  entities or business associations that exists to make a profit.
               (2)  "Critical infrastructure" means a communication
  infrastructure system, cybersecurity system, electric grid,
  hazardous waste treatment system, or water treatment facility.
               (3)  "Cybersecurity" means the measures taken to
  protect a computer, computer network, computer system, or other
  technology infrastructure against unauthorized use or access.
         Sec. 113.002.  DESIGNATION OF THREAT TO CRITICAL
  INFRASTRUCTURE. (a) The governor may designate a country as a
  threat to critical infrastructure with the consultation of the
  public safety director of the Department of Public Safety.
         (b)  The governor may consult the Homeland Security Council,
  as described by Chapter 421, Government Code, to assess a threat to
  critical infrastructure under this section.
         Sec. 113.003.  PROHIBITED ACCESS TO CRITICAL
  INFRASTRUCTURE. (a) A business entity may not enter into an
  agreement relating to critical infrastructure in this state with a
  company:
               (1)  if, under the agreement, the company would be able
  to directly or remotely access or control critical infrastructure
  in this state; and
               (2)  if the company is:
                     (A)  owned by or the majority of stock or other
  ownership interest of the company is held or controlled by:
                           (i)  individuals who are citizens of China,
  Iran, North Korea, Russia, or a country designated under Section
  113.002; or
                           (ii)  a company or other entity, including a
  governmental entity, that is owned or controlled by citizens of or
  is directly controlled by the government of China, Iran, North
  Korea, Russia, or a country designated under Section 113.002; or
                     (B)  headquartered in China, Iran, North Korea, 
  Russia, or a country designated under Section 113.002.
         (b)  The prohibition described by Subsection (a) applies
  regardless of whether:
               (1)  the company's or its parent company's securities
  are publicly traded; or
               (2)  the company or its parent company is listed as a
  Chinese, Iranian, North Korean, or Russian company on a public
  stock exchange.
         SECTION 2.  Subtitle F, Title 10, Government Code, is
  amended by adding Chapter 2274 to read as follows:
  CHAPTER 2274. PROHIBITION ON CONTRACTS WITH CERTAIN FOREIGN-OWNED
  COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE
         Sec. 2274.0101.  DEFINITIONS. In this chapter:
               (1)  "Company" means a for-profit sole proprietorship,
  organization, association, corporation, partnership, joint
  venture, limited partnership, limited liability partnership, or
  limited liability company, including a wholly owned subsidiary,
  majority-owned subsidiary, parent company, or affiliate of those
  entities or business associations that exists to make a profit.
               (2)  "Critical infrastructure" means a communication
  infrastructure system, cybersecurity system, electric grid,
  hazardous waste treatment system, or water treatment facility.
               (3)  "Cybersecurity" means the measures taken to
  protect a computer, computer network, computer system, or other
  technology infrastructure against unauthorized use or access.
               (4)  "Governmental entity" means a state agency or
  political subdivision of this state.
         Sec. 2274.0102.  PROHIBITED CONTRACTS. (a) A governmental
  entity may not enter into a contract or other agreement relating to
  critical infrastructure in this state with a company that is:
               (1)  owned by or the majority of stock or other
  ownership interest of the company is held or controlled by:
                     (A)  individuals who are citizens of China, Iran,
  North Korea, Russia, or a country designated under Section 113.002;
  or
                     (B)  a company or other entity, including a
  governmental entity, that is owned or controlled by citizens of or
  is directly controlled by the government of China, Iran, North
  Korea, Russia, or a country designated under Section 113.002; or
               (2)  headquartered in China, Iran, North Korea, Russia, 
  or a country designated under Section 113.002.
         (b)  The prohibition described by Subsection (a) applies
  regardless of whether:
               (1)  the company's or its parent company's securities
  are publicly traded; or
               (2)  the company or its parent company is listed as a
  Chinese, Iranian, North Korean, or Russian company on a public
  stock exchange.
         SECTION 3.  Chapter 113, Business & Commerce Code, as added
  by this Act, and Chapter 2274, Government Code, as added by this
  Act, apply to a contract or agreement entered into on or after the
  effective date of this Act.
         SECTION 4.  This Act takes effect September 1, 2021.