87(R) HB 4359 - Introduced version - Bill Text
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
relating to prohibiting contracts or other agreements with certain
 
foreign-owned companies in connection with critical infrastructure
 
in this state.
 
             BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 
             SECTION  1.    This Act may be cited as the Lone Star
 
Infrastructure Protection Act.
 
             SECTION  2.    Subtitle C, Title 5, Business & Commerce Code, is
 
amended by adding Chapter 113 to read as follows:
 
CHAPTER 113. PROHIBITION ON AGREEMENTS WITH CERTAIN FOREIGN-OWNED
 
COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE
 
             Sec.  113.001.    DEFINITIONS. In this chapter:
 
                         (1)     "Company" means a for-profit 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)     "Critical infrastructure" means a communication
 
infrastructure system, cybersecurity system, electric grid,
 
hazardous waste treatment system, or water treatment facility.
 
                         (3)     "Cybersecurity" means the measures taken to
 
protect a computer, computer network, computer system, or other
 
technology infrastructure against unauthorized use or access.
 
             Sec.   113.002.     DESIGNATION OF THREAT TO CRITICAL
 
INFRASTRUCTURE. (a) The governor may designate a country as a
 
threat to critical infrastructure with the consultation of the
 
public safety director of the Department of Public Safety.
 
             (b)     The governor may consult the Homeland Security Council,
 
as described by Chapter 421, Government Code, to assess a threat to
 
critical infrastructure under this section.
 
             Sec.   113.003.     PROHIBITED ACCESS TO CRITICAL
 
INFRASTRUCTURE. (a) A business entity may not enter into an
 
agreement relating to critical infrastructure in this state with a
 
company:
 
                         (1)     if, under the agreement, the company would be able
 
to directly or remotely access or control critical infrastructure
 
in this state; and
 
                         (2)    if the company is:
 
                                     (A)     owned by or the majority of stock or other
 
ownership interest of the company is held or controlled by:
 
                                                 (i)     individuals who are citizens of China,
 
Iran, North Korea, Russia, or a country designated under Section
 
113.002; or
 
                                                 (ii)     a company or other entity, including a
 
governmental entity, that is owned or controlled by citizens of or
 
is directly controlled by the government of China, Iran, North
 
Korea, Russia, or a country designated under Section 113.002; or
 
                                     (B)     headquartered in China, Iran, North Korea,
 
Russia, or a country designated under Section 113.002.
 
             (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 as a
 
Chinese, Iranian, North Korean, or Russian company on a public
 
stock exchange.
 
             SECTION  3.    Subtitle F, Title 10, Government Code, is
 
amended by adding Chapter 2274 to read as follows:
 
CHAPTER 2274. PROHIBITION ON CONTRACTS WITH CERTAIN FOREIGN-OWNED
 
COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE
 
             Sec.  2274.0101.    DEFINITIONS. In this chapter:
 
                         (1)     "Company" means a for-profit 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)     "Critical infrastructure" means a communication
 
infrastructure system, cybersecurity system, electric grid,
 
hazardous waste treatment system, or water treatment facility.
 
                         (3)     "Cybersecurity" means the measures taken to
 
protect a computer, computer network, computer sys