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A BILL TO BE ENTITLED
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AN ACT
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relating to a prohibition on governmental contracts with Chinese |
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companies. |
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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 CHINESE COMPANIES |
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Sec. 2278.001. DEFINITIONS. In this chapter: |
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(1) "Chinese company" means a company that is |
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headquartered in China or is a wholly owned subsidiary or |
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majority-owned subsidiary of a company headquartered in China, |
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regardless of whether: |
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(A) the company's or its parent company's |
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securities are publicly traded; or |
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(B) the company or its parent company is listed |
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as a Chinese company on a public stock exchange. |
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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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Sec. 2278.002. PROVISION REQUIRED IN CONTRACT. A |
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governmental entity may not enter into a contract with a company for |
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goods or services unless the contract contains a written |
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verification from the company that it is not a Chinese company. |
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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. |