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A BILL TO BE ENTITLED
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AN ACT
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relating to state contracts with and investments in certain |
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companies that boycott energy companies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 809.001, Government Code, is amended by |
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adding Subsection (A-1) to and amending Subsection (B) of |
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Subdivision (1) and amending Subdivision (4) to read as follows: |
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(1) "Boycott energy company" means, without an ordinary |
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business purpose, refusing to deal with, terminating business |
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activities with, or otherwise taking any action that is intended to |
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penalize, inflict economic harm on, or limit commercial relations |
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with a company because the company: |
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(A) engages in the exploration, production, |
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utilization, transportation, sale, or manufacturing of fossil |
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fuel-based energy and does not commit or pledge to meet |
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environmental standards beyond applicable law; [or] |
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(A-1) engages in the exploration, production, |
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utilization, transportation, sale, or manufacturing of fossil |
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fuel-based energy; or |
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(B) does business with a company described by |
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Paragraph (A) or (A-1). |
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(4) "Financial company" means a publicly traded: |
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(A) financial services[,] company; |
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(B) banking[,] company; or |
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(C) [investment company] mutual fund or |
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exchange-traded fund, including a money market fund or government |
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money market fund. |
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SECTION 2. Section 809.101, Government Code, is amended as |
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follows: |
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Sec. 809.101. Report. Not later than January 5 of each year, |
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each state governmental entity shall file a publicly available |
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report with the presiding officer of each house of the |
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legislature,[ and] the attorney general, and the comptroller that: |
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(1) identifies all securities sold, redeemed, divested, or |
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withdrawn in compliance with Section 809.054; |
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(2) identifies all prohibited investments under Section |
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809.057;[ and] |
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(3) summarizes any changes made under Section 809.055[.]; |
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(4) identifies all contracts with listed financial |
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companies as defined under Section 809.001(6); and |
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(5) identifies all contracts with affiliates of listed |
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financial companies as defined under Section 809.001(4)(A) and (B). |
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For purposes of this Section, "affiliate" means a person who |
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controls, is controlled by, or is under common control with another |
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person. |
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SECTION 3. Chapter 809, Government Code, is amended by |
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adding Subchapter D to read as follows: |
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SUBCHAPTER D. PROHIBITION ON CONTRACTS WITH COMPANIES |
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BOYCOTTING CERTAIN ENERGY COMPANIES |
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Sec. 809.201. 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 state governmental entity and a |
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company 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 state governmental |
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entity. |
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(b) Except as provided by Subsection (c), a state |
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governmental entity may not enter into a contract with a company |
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unless the contract contains a written verification from the |
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company that it: |
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(1) does not boycott energy companies; |
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(2) will not boycott energy companies during the term |
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of the contract; |
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(3) is not a listed financial company as defined under |
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Section 809.001(6); and |
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(4) is not an affiliate of a listed financial company |
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as defined under Section 809.001(4)(A) or (B). |
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(c) Subsection (b) does not apply to a state governmental |
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entity that determines the requirements of Subsection (b) are |
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inconsistent with the governmental entity's constitutional or |
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statutory duties related to the issuance, incurrence, or management |
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of debt obligations or the deposit, custody, management, borrowing, |
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or investment of funds. |
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(d) For purposes of this Section, "affiliate" means a person |
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who controls, is controlled by, or is under common control with |
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another person. |
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SECTION 4. Section 809.201, Government Code, as added by |
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this Act, applies only to a contract entered into on or after the |
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effective date of this Act. A contract entered into before that date |
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is governed by the law in effect on the date the contract was |
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entered into, and the former law is continued in effect for that |
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purpose. |
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SECTION 5. This Act takes effect September 1, 2023. |