HB4900 - Relating to prohibiting the investment of state money in certain countries and in certain private business entities in those countries.

      By: Curry H.B. No. 4900       A BILL TO BE ENTITLED   AN ACT   relating to prohibiting the investment of state money in certain   countries and in certain private business entities in those   countries.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 2270.0001, Government Code, is amended   by adding Subdivision (2-a) and amending Subdivision (9) to read as   follows:                 (2-a)  "Country of concern" means:                       (A)  China, Iran, North Korea, or Russia; or                       (B)     a country designated by the governor under   Section 2270.0121.                (9)  "Scrutinized company" means:                      (A)  a company that:                            (i)  engages in scrutinized business   operations described by Section 2270.0052; or                            (ii)  has been complicit in the Darfur   genocide during any preceding 20-month period;                      (B)  a company that engages in scrutinized   business operations described by Section 2270.0102; [ and ]                      (C)   a company that is a scrutinized company under   Section 2270.0124; and                       (D)   a company that engages in scrutinized   business operations described by Section 2270.0152.          SECTION 2.  Section 2270.0002, Government Code, is amended   to read as follows:          Sec. 2270.0002.  EXCEPTION. Notwithstanding any other law,   a company that the United States government affirmatively declares   to be excluded from its federal sanctions regime relating to Sudan,   its federal sanctions regime relating to Iran or another country of   concern , or any federal sanctions regime relating to a designated   foreign terrorist organization is not subject to divestment or   investment prohibition under this chapter.          SECTION 3.  Chapter 2270, Government Code, is amended by   adding Subchapter C-1 to read as follows:   SUBCHAPTER C-1. GENERAL PROVISIONS RELATING TO INVESTMENTS IN   COUNTRIES OF CONCERN           Sec.   2270.0121.     DESIGNATION AS COUNTRY OF CONCERN. (a) The   governor, after consultation with the public safety director of the   Department of Public Safety, may designate a country as a country of   concern for purposes of this subchapter.           (b)     The governor shall consult the Homeland Security   Council, established under Subchapter B, Chapter 421, to assess the   status of a country of concern for purposes of making a designation   under this section.           Sec.   2270.0122.     PROHIBITION ON INVESTMENT IN COUNTRY OF   CONCERN. An investing entity may not acquire a security issued by a   country of concern or an entity owned or controlled by or subject to   the jurisdiction of a country of concern.           Sec.   2270.0123.     PROHIBITION AGAINST INVESTMENT OR DEPOSIT   IN CERTAIN BANKS. An investing entity may not invest or make a   deposit in a bank with a principal place of business located in a   country of concern.           Sec.   2270.0124.     SCRUTINIZED COMPANIES IN COUNTRIES OF   CONCERN. A company is a scrutinized company if:                 (1)     the company is organized under the laws of, has its   principal place of business in the territory of, or is controlled by   a country of concern;                 (2)     the company is owned by a country of concern or   individuals who are citizens of a country of concern; or                 (3)     the majority of stock or other ownership interest   of the company is held or controlled by a country of concern or   individuals who are citizens of a country of concern.          SECTION 4.  Sections 2270.0201(a) and (b), Government Code,   are amended to read as follows:          (a)  The comptroller shall prepare and maintain a list of all   scrutinized companies. The list must be categorized according to:                (1)  companies that are scrutinized companies under   Section 2270.0001(9)(A);                (2)  companies that are scrutinized companies under   Section 2270.0001(9)(B); [ and ]                (3)  companies that are scrutinized companies under   Section 2270.0001(9)(C) ; and                 (4)     companies that are scrutinized companies under   Section 2270.0001(9)(D) .          (b)  In maintaining the list of scrutinized companies under   Subsection (a), the comptroller may review and rely, as appropriate   in the comptroller's judgment, on publicly available information   regarding companies with business operations in Sudan, in Iran or   another country of concern , or with designated foreign terrorist   organizations, as applicable, including information provided by   the state, nonprofit organizations, research firms, international   organizations, and governmental entities.          SECTION 5.  Subchapter E, Chapter 2270, Government Code, is   amended by adding Section 2270.02035 to read as follows:           Sec.   2270.02035.     ACTIONS RELATED TO LISTED COMPANY OWNED OR   CONTROLLED BY OR LOCATED IN COUNTRY OF CONCERN. (a) For each   listed company identified under Section 2270.0202 that is a   scrutinized company under Section 2270.0124, the investing entity   shall send a written notice informing the company of its listed   company status and warning the company that it may become subject to   divestment by investing entities.           (b)     The notice shall offer the company the opportunity to,   not later than the 90th day after the date the company receives   notice under this section, change its organizational or ownership   structure or location so as to not be a scrutinized company as   described by Section 2270.0124 in order to avoid qualifying for   divestment by investing entities.           (c)     If, during the time provided by Subsection (b), the   company makes any applicable changes required by that subsection,   the comptroller shall remove the company from the list of   scrutinized companies and this chapter will no longer apply to the   company unless the company later again becomes a scrutinized   company as described by Section 2270.0124.           (d)     If, after the time provided by Subsection (b) expires,   the listed company continues to operate as a scrutinized company as   described by Section 2270.0124, the investing entity shall sell,   redeem, divest, or withdraw all publicly traded securities of the   company, except securities described by Section 2270.0207,   according to the schedule provided by Section 2270.0206.          SECTION 6.  Not later than January 1, 2026, the comptroller   of public accounts shall include on the list maintained under   Section 2270.0201(a), Government Code, as amended by this Act, the   companies described by Subsection (a)(3) of that section.          SECTION 7.  This Act takes effect September 1, 2025.