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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Introduced.html

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By: Hughes S.B. No. 2530

A BILL TO BE ENTITLED
AN ACT
relating to state contracts with and investments in certain
companies that boycott energy companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 809.001, Government Code, is amended by
adding Subsection (A-1) to and amending Subsection (B) of
Subdivision (1) and amending Subdivision (4) 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 law; [or]
(A-1) engages in the exploration, production,
utilization, transportation, sale, or manufacturing of fossil
fuel-based energy; or
(B) does business with a company described by
Paragraph (A) or (A-1).
(4) "Financial company" means a publicly traded:
(A) financial services[,] company;
(B) banking[,] company; or
(C) [investment company] mutual fund or
exchange-traded fund, including a money market fund or government
money market fund.
SECTION 2. Section 809.101, Government Code, is amended as
follows:
Sec. 809.101. Report. 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,[ and] the attorney general, and the comptroller that:
(1) identifies all securities sold, redeemed, divested, or
withdrawn in compliance with Section 809.054;
(2) identifies all prohibited investments under Section
809.057;[ and]
(3) summarizes any changes made under Section 809.055[.];
(4) identifies all contracts with listed financial
companies as defined under Section 809.001(6); and
(5) identifies all contracts with affiliates of listed
financial companies as defined under Section 809.001(4)(A) and (B).
For purposes of this Section, "affiliate" means a person who
controls, is controlled by, or is under common control with another
person.
SECTION 3. Chapter 809, Government Code, is amended by
adding Subchapter D to read as follows:
SUBCHAPTER D. PROHIBITION ON CONTRACTS WITH COMPANIES
BOYCOTTING CERTAIN ENERGY COMPANIES
Sec. 809.201. PROVISION REQUIRED IN CONTRACT. (a) 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.
(b) Except as provided by Subsection (c), 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 as defined under
Section 809.001(6); and
(4) is not an affiliate of a listed financial company
as defined under Section 809.001(4)(A) or (B).
(c) Subsection (b) does not apply to a state governmental
entity that determines the requirements of Subsection (b) are
inconsistent with the 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.
(d) For purposes of this Section, "affiliate" means a person
who controls, is controlled by, or is under common control with
another person.
SECTION 4. Section 809.201, 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.