87(R) SB 2116 - Enrolled version - Bill Text

	S.B.  No.  2116

	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