87(R) SB 2116 - Enrolled version - Bill Text
 
 
 
 
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 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.
 
                         (4)     "Designated country"   means a country designated by
 
the governor as a threat to critical infrastructure under Section
 
113.003.
 
             Sec.   113.002.     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
 
granted direct or remote access to or control of critical
 
infrastructure in this state, excluding access specifically
 
allowed by the business entity for product warranty and support
 
purposes; and
 
                         (2)    if the business entity knows that 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 designated country; 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 designated country; or
 
                                     (B)     headquartered in China, Iran, North Korea,
 
Russia, or a designated country.
 
             (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)     a Chinese, Iranian, North Korean, or Russian
 
company; or
 
                                     (B)    a company of a designated country.
 
             Sec.   113.003.     DESIGNATION OF COUNTRY AS THREAT TO CRITICAL
 
INFRASTRUCTURE. (a) The governor, after consultation with the
 
public safety director of the Department of Public Safety, may
 
designate a country as a threat to critical infrastructure for
 
purposes of this chapter.
 
             (b)     The governor shall consult the Homeland Security
 
Council, established under Subchapter B, Chapter 421, Government
 
Code, to assess a threat to critical infrastructure for purposes of
 
making a designation under this section.
 
             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 sole proprietorship,
 
organization, association, corporation, partnership, joint
 
venture, limited partnership, limited liability partnership, or
 
limited liab