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A BILL TO BE ENTITLED
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AN ACT
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relating to a prohibition on contracts with certain companies that |
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use certain environmental, social, and governance criteria. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle F, Title 10, Government Code, is |
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amended by adding Chapter 2278 to read as follows: |
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CHAPTER 2278. PROHIBITION ON CONTRACTS WITH COMPANIES THAT USE |
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PROHIBITED ESG CRITERIA |
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Sec. 2278.001. DEFINITIONS. In this chapter: |
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(1) "Company" has the meaning assigned by Section |
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808.001, except that the term does not include a sole |
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proprietorship. |
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(2) "Governmental entity" means a state agency or |
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political subdivision of this state. |
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(3) "Prohibited ESG criteria" means environmental, |
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social, and governance criteria that furthers political policies at |
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the expense of the Texas economy and company shareholders. |
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Sec. 2278.002. PROVISION REQUIRED IN CONTRACT. (a) This |
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section applies only to a contract that: |
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(1) is between a governmental entity and a company |
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with 10 or more full-time employees; and |
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(2) has a value of $100,000 or more that is to be paid |
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wholly or partly from public funds of the governmental entity. |
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(b) A governmental entity may not enter into a contract with |
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a company for goods or services unless the contract contains a |
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written verification from the company that it does not, and will not |
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during the term of the contract, use prohibited ESG criteria to |
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evaluate a business decision or investment strategy. |
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SECTION 2. Section 2278.002, Government Code, as added by |
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this Act, applies only to a contract entered into on or after |
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January 1, 2024. A contract entered into before that date is |
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governed by the law in effect on the date the contract was entered |
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into, and the former law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2023. |