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A BILL TO BE ENTITLED
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AN ACT
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relating to affiliation with certain foreign entities of certain |
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persons working or participating in the electricity market; |
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increasing an administrative penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 15.023, Utilities Code, is amended by |
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adding Subsection (b-2) to read as follows: |
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(b-2) Notwithstanding Subsection (b), the penalty for a |
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violation of Section 39.360 in which a business entity submitted |
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false or incomplete information to the independent organization |
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certified under Section 39.151 for the ERCOT power region may be in |
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an amount not to exceed $1,000,000 for each violation. |
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SECTION 2. Section 39.151(g-7), Utilities Code, as added by |
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Chapter 464 (S.B. 2013), Acts of the 88th Legislature, Regular |
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Session, 2023, is redesignated as Section 39.151(g-8), Utilities |
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Code, and amended to read as follows: |
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(g-8) [(g-7)] To maintain certification as an independent |
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organization under this section, the organization must: |
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(1) identify all employee positions in the |
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organization that are critical to the security of the electric |
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grid; and |
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(2) before hiring a person for a position described by |
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Subdivision (1), obtain: |
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(A) from the Department of Public Safety or a |
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private vendor, criminal history record information relating to the |
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prospective employee and any other background information |
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considered necessary by the independent organization or required by |
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the commission; and |
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(B) from the prospective employee an attestation |
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regarding: |
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(i) any former travel by the prospective |
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employee to a country described by Section 117.003, Business & |
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Commerce Code; and |
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(ii) any relationship between the |
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prospective employee and a foreign governmental entity or foreign |
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political organization. |
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SECTION 3. Section 39.360, Utilities Code, as added by |
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Chapter 464 (S.B. 2013), Acts of the 88th Legislature, Regular |
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Session, 2023, is amended by amending Subsections (a), (b), (c), |
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(d), and (e) and adding Subsections (d-1) and (j) to read as |
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follows: |
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(a) In this section, "company" and "critical |
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infrastructure" have the meanings assigned by Section 117.001 |
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[113.001], Business & Commerce Code[, as added by Chapter 975 (S.B. |
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2116), Acts of the 87th Legislature, Regular Session, 2021]. |
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(b) An independent organization certified under Section |
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39.151 may not register a business entity as a market participant or |
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maintain the registration of a business entity to operate as a |
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market participant in the power region for which the independent |
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organization is certified unless the business entity attests that |
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the entity complies with Chapter 117 [113], Business & Commerce |
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Code[, as added by Chapter 975 (S.B. 2116), Acts of the 87th |
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Legislature, Regular Session, 2021]. |
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(c) An independent organization certified under Section |
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39.151 shall require as a condition of operating as a market |
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participant in the power region for which the independent |
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organization is certified that a business entity report to the |
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independent organization the purchase of any critical electric grid |
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equipment or service from a company described by Section |
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117.002(a)(2) [113.002(a)(2)], Business & Commerce Code[, as added |
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by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular |
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Session, 2021]. |
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(d) For each purchase reported by a business entity under |
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Subsection (c), the business entity shall submit an attestation to |
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the independent organization that the purchase will not result in |
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access to or control of its critical electric grid equipment by a |
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company described by Section 117.002(a)(2) [113.002(a)(2)], |
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Business & Commerce Code, [as added by Chapter 975 (S.B. 2116), Acts |
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of the 87th Legislature, Regular Session, 2021,] excluding access |
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specifically allowed by the business entity for product warranty |
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and support purposes. |
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(d-1) An independent organization certified under Section |
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39.151 may: |
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(1) require as a condition of market participant |
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registration that a business entity provide the independent |
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organization with additional information to confirm the accuracy of |
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an attestation or report required under Subsection (b), (c), or |
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(d); and |
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(2) disclose information received under Subdivision |
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(1) to the attorney general or the commission. |
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(e) Notwithstanding any other law, an independent |
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organization certified under Section 39.151 may immediately |
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suspend or terminate a business entity's [company's] registration |
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as a market participant or access to any of the independent |
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organization's systems if the independent organization has a |
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reasonable suspicion that the business entity is a company [meets |
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any of the criteria] described by Section 2275.0102(a)(2) |
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[2274.0102(a)(2)], Government Code[, as added by Chapter 975 (S.B. |
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2116), Acts of the 87th Legislature, Regular Session, 2021]. |
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(j) The attorney general may investigate the accuracy or |
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sufficiency of information provided under this section to an |
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independent organization certified under Section 39.151 and |
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disclose any new information obtained in relation to the |
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investigation to the independent organization or the commission. |
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SECTION 4. To the extent of any conflict, this Act prevails |
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over another Act of the 89th Legislature, Regular Session, 2025, |
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relating to nonsubstantive additions to and corrections in enacted |
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codes. |
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SECTION 5. This Act takes effect September 1, 2025. |