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  By: Toth H.B. No. 982
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a prohibition on contracts with certain companies that
  use certain environmental, social, and governance criteria.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle F, Title 10, Government Code, is
  amended by adding Chapter 2278 to read as follows:
  CHAPTER 2278.  PROHIBITION ON CONTRACTS WITH COMPANIES THAT USE
  PROHIBITED ESG CRITERIA
         Sec. 2278.001.  DEFINITIONS. In this chapter:
               (1)  "Company" has the meaning assigned by Section
  808.001, except that the term does not include a sole
  proprietorship.
               (2)  "Governmental entity" means a state agency or
  political subdivision of this state.
               (3)  "Prohibited ESG criteria" means environmental,
  social, and governance criteria that furthers political policies at
  the expense of the Texas economy and company shareholders.
         Sec. 2278.002.  PROVISION REQUIRED IN CONTRACT. (a) This
  section applies only to a contract that:
               (1)  is between a governmental entity and a company
  with 10 or more full-time employees; and
               (2)  has a value of $100,000 or more that is to be paid
  wholly or partly from public funds of the governmental entity.
         (b)  A governmental entity may not enter into a contract with
  a company for goods or services unless the contract contains a
  written verification from the company that it does not, and will not
  during the term of the contract, use prohibited ESG criteria to
  evaluate a business decision or investment strategy.
         SECTION 2.  Section 2278.002, Government Code, as added by
  this Act, applies only to a contract entered into on or after
  January 1, 2024. A contract entered into before that date is
  governed by the law in effect on the date the contract was entered
  into, and the former law is continued in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2023.