Bill Text: TX SB2530 | 2023-2024 | 88th Legislature | Engrossed

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Bill Title: Relating to contracts with and investments in companies that boycott certain energy companies.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Engrossed - Dead) 2023-05-06 - Referred to State Affairs [SB2530 Detail]

Download: Texas-2023-SB2530-Engrossed.html

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By: Hughes, Kolkhorst S.B. No. 2530

A BILL TO BE ENTITLED
AN ACT
relating to contracts with and investments in companies that
boycott certain energy companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 809.001(1) and (4), Government Code,
are amended to read as follows:
(1) "Boycott energy company" means, without an
ordinary business purpose, refusing to deal with, terminating
business activities with, or otherwise taking any action that is
intended to penalize, inflict economic harm on, or limit commercial
relations with a company because the company:
(A) engages in the exploration, production,
utilization, transportation, sale, or manufacturing of fossil
fuel-based energy and does not commit or pledge to meet
environmental standards beyond applicable federal and state law;
(B) engages in the exploration, production,
utilization, transportation, sale, or manufacturing of fossil
fuel-based energy; or
(C) [(B)] does business with a company described
by Paragraph (A) or (B).
(4) "Financial company" means a publicly traded:
(A) financial services or[,] banking company;[,]
or
(B) investment company, including a mutual fund
or exchange-traded fund.
SECTION 2. Section 809.101, Government Code, is amended to
read as follows:
Sec. 809.101. REPORT. (a) In this section, "affiliate"
means a person who controls, is controlled by, or is under common
control with another person.
(b) Not later than January 5 of each year, each state
governmental entity shall file a publicly available report with the
presiding officer of each house of the legislature, the
comptroller, and the attorney general that:
(1) identifies all:
(A) securities sold, redeemed, divested, or
withdrawn in compliance with Section 809.054;
(B) [(2) identifies all] prohibited investments
under Section 809.057;
(C) contracts with a listed financial company;
and
(D) contracts with an affiliate of a listed
financial services or banking company; and
(2) [(3)] summarizes any changes made under Section
809.055.
SECTION 3. Chapter 809, Government Code, is amended by
adding Subchapter D to read as follows:
SUBCHAPTER D. CONTRACTS WITH COMPANIES BOYCOTTING CERTAIN ENERGY
COMPANIES
Sec. 809.151. PROVISION REQUIRED IN CONTRACT. (a) In
this section, "affiliate" has the meaning assigned by Section
809.101.
(b) This section applies only to a contract that:
(1) is between a state governmental entity and a
company with 10 or more full-time employees; and
(2) has a value of $100,000 or more that is to be paid
wholly or partly from public funds of the state governmental
entity.
(c) Except as provided by Subsection (d), a state
governmental entity may not enter into a contract with a company
unless the contract contains a written verification from the
company that it:
(1) does not boycott energy companies;
(2) will not boycott energy companies during the term
of the contract;
(3) is not a listed financial company; and
(4) is not an affiliate of a listed financial services
or banking company.
(d) Subsection (c) does not apply to a state governmental
entity that determines the requirements of Subsection (c) are
inconsistent with the state governmental entity's constitutional
or statutory duties related to the issuance, incurrence, or
management of debt obligations or the deposit, custody, management,
borrowing, or investment of funds.
SECTION 4. Subchapter D, Chapter 809, Government Code, as
added by this Act, applies only to a contract entered into on or
after the effective date of this Act. A contract entered into
before that date is governed by the law in effect on the date the
contract was entered into, and the former law is continued in effect
for that purpose.
SECTION 5. This Act takes effect September 1, 2023.