| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to a prohibition on state contracts with certain foreign |
|
|
companies or organizations; authorizing a civil penalty. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subtitle F, Title 10, Government Code, is |
|
|
amended by adding Chapter 2279 to read as follows: |
|
|
CHAPTER 2279. PROHIBITION ON STATE CONTRACTS WITH CERTAIN |
|
|
COMPANIES OR ORGANIZATIONS IN SCRUTINIZED COUNTRIES |
|
|
Sec. 2279.001. DEFINITIONS. In this chapter: |
|
|
(1) "Company" means a 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) "Nonprofit organization" includes a nonprofit |
|
|
corporation or association. |
|
|
(3) "Scrutinized country" means China, Iran, North |
|
|
Korea, or Russia. |
|
|
Sec. 2279.002. PROVISION REQUIRED IN STATE CONTRACTS. (a) |
|
|
A state agency may not enter into a contract with a vendor for goods |
|
|
or services unless the contract contains a written verification |
|
|
from the vendor that it is not: |
|
|
(1) a company owned or directly controlled by the |
|
|
government of a scrutinized country; or |
|
|
(2) a nonprofit organization or government-organized |
|
|
nongovernmental organization that is headquartered in a |
|
|
scrutinized county. |
|
|
(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 on a |
|
|
public stock exchange as a company of a scrutinized country. |
|
|
Sec. 2279.003. FALSE VERIFICATION; PENALTIES. (a) If a |
|
|
state agency determines that a vendor holding a contract with the |
|
|
state agency was ineligible to have the contract awarded under |
|
|
Section 2279.002 because the vendor's written verification was |
|
|
false, the state agency shall immediately terminate the contract |
|
|
without further obligation to the vendor. |
|
|
(b) A vendor described by Subsection (a): |
|
|
(1) is barred from responding to a solicitation for or |
|
|
being awarded a contract for goods or services by any state agency; |
|
|
and |
|
|
(2) is liable to this state for a civil penalty of |
|
|
either $250,000, or twice the amount of the terminated contract |
|
|
under Subsection (a), whichever is greater. |
|
|
(c) The attorney general may bring an action to recover a |
|
|
civil penalty imposed under Subsection (b)(2). The attorney |
|
|
general may recover reasonable attorney's fees and court costs in |
|
|
bringing an action under this subsection. |
|
|
SECTION 2. Section 2279.002, Government Code, as added by |
|
|
this Act, applies only to a contract entered into on or after the |
|
|
effective date of this Act. A contract entered into before the |
|
|
effective date of this Act 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. |