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A BILL TO BE ENTITLED
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AN ACT
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relating to investments in certain companies doing business in the |
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Russian Federation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2270.0001(9), Government Code, is |
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amended to read as follows: |
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(9) "Scrutinized company" means: |
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(A) a company that: |
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(i) engages in scrutinized business |
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operations described by Section 2270.0052; or |
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(ii) has been complicit in the Darfur |
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genocide during any preceding 20-month period; |
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(B) a company that engages in scrutinized |
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business operations described by Section 2270.0102; [and] |
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(C) a company that engages in scrutinized |
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business operations described by Section 2270.0152; and |
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(D) a company that engages in scrutinized |
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business operations described by Section 2270.0162. |
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SECTION 2. Section 2270.0002, Government Code, is amended |
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to read as follows: |
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Sec. 2270.0002. EXCEPTION. (a) Notwithstanding any other |
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law, a company that the United States government affirmatively |
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declares to be excluded from its federal sanctions regime relating |
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to Sudan, its federal sanctions regime relating to Iran, or any |
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federal sanctions regime relating to a designated foreign terrorist |
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organization is not subject to divestment or investment prohibition |
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under this chapter. |
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(b) Notwithstanding any other law, a company that complies |
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with the United States government federal sanctions regime relating |
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to the Russian Federation, including any exemption or federal |
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guidance, is not subject to divestment or investment prohibition |
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under this chapter. |
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SECTION 3. Chapter 2270, Government Code, is amended by |
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adding Subchapter D-1 to read as follows: |
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SUBCHAPTER D-1. GENERAL PROVISIONS RELATING TO INVESTMENTS IN |
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RUSSIAN FEDERATION |
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Sec. 2270.0161. DEFINITION. In this subchapter, "business |
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operations" means engaging in commerce in any form in the Russian |
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Federation, including by acquiring, developing, maintaining, |
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owning, selling, possessing, leasing, or operating equipment, |
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facilities, personnel, products, services, personal property, real |
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property, or any other apparatus of business or commerce. |
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Sec. 2270.0162. SCRUTINIZED BUSINESS OPERATIONS IN RUSSIAN |
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FEDERATION. A company engages in scrutinized business operations |
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in the Russian Federation if the company has business operations |
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that involve contracts with or providing supplies or services to |
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the government of the Russian Federation, a company in which the |
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government of the Russian Federation has any direct or indirect |
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equity share, a consortium or project commissioned by the |
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government of the Russian Federation, or a company involved in a |
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consortium or project commissioned by the government of the Russian |
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Federation. |
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SECTION 4. Section 2270.0201, Government Code, is amended |
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by amending Subsections (a) and (b) and adding Subsection (b-1) to |
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read as follows: |
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(a) The comptroller shall prepare and maintain a list of all |
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scrutinized companies. The list must be categorized according to: |
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(1) companies that are scrutinized companies under |
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Section 2270.0001(9)(A); |
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(2) companies that are scrutinized companies under |
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Section 2270.0001(9)(B); [and] |
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(3) companies that are scrutinized companies under |
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Section 2270.0001(9)(C); and |
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(4) companies that are scrutinized companies under |
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Section 2270.0001(9)(D). |
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(b) In maintaining the list of scrutinized companies under |
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Subsection (a), the comptroller may review and rely, as appropriate |
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in the comptroller's judgment, on publicly available information |
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regarding companies with business operations in Sudan, in Iran, |
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[or] with designated foreign terrorist organizations, or in the |
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Russian Federation, as applicable, including information provided |
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by the state, nonprofit organizations, research firms, |
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international organizations, and governmental entities. |
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(b-1) The governor shall periodically consult with the |
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Homeland Security Council, established under Subchapter B, Chapter |
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421, to review whether a company that is a scrutinized company under |
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Section 2270.0001(9)(D) should be included or continue to be |
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included on the list of scrutinized companies maintained under this |
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section and may, after consulting with the council, direct the |
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comptroller to remove a company from the list. |
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SECTION 5. Section 2270.0203, Government Code, is amended |
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to read as follows: |
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Sec. 2270.0203. NOTICE TO LISTED COMPANY ENGAGED IN |
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INACTIVE BUSINESS OPERATIONS. For each listed company identified |
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under Section 2270.0202 that is engaged in only inactive |
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scrutinized business operations, the investing entity shall send a |
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written notice informing the company of this chapter and |
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encouraging the company to continue to refrain from initiating |
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active business operations in Sudan, in Iran, [and] with designated |
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foreign terrorist organizations, and in the Russian Federation |
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until it is able to avoid being considered a listed company. The |
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investing entity shall continue the correspondence as the entity |
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considers necessary, but is not required to initiate correspondence |
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more often than semiannually. |
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SECTION 6. Section 2270.0204(b), Government Code, is |
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amended to read as follows: |
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(b) The notice shall offer the company the opportunity to |
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clarify its Sudan-related, Iran-related, [or] designated foreign |
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terrorist organization-related, or Russian Federation-related |
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activities, as applicable, and shall encourage the company, not |
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later than the 90th day after the date the company receives notice |
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under this section, to either cease all scrutinized business |
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operations as described by Sections 2270.0052, 2270.0102, [and] |
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2270.0152, and 2270.0162, or convert such operations to inactive |
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business operations in order to avoid qualifying for divestment by |
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investing entities. |
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SECTION 7. Not later than the 180th day after the effective |
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date of this Act, the comptroller of public accounts shall include |
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the companies described by Section 2270.0201(a)(4), Government |
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Code, as added by this Act, on the list under Section 2270.0201(a), |
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Government Code. |
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SECTION 8. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2023. |