2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter H. Certification and Registration; Penalties › Section 39.360. Transactions With Certain Foreign-Owned Companies in Connection With Critical Infrastructure

Text of section as added by Acts 2023, 88th Leg., R.S., Ch. 464 (S.B. 2013), Sec. 5
For text of section as added by Acts 2023, 88th Leg., R.S., Ch. 463 (S.B. 1929), Sec. 1, see other Sec. 39.360.
Sec. 39.360.  TRANSACTIONS WITH CERTAIN FOREIGN-OWNED COMPANIES IN CONNECTION WITH CRITICAL INFRASTRUCTURE.  (a)  In this section, "company" and "critical infrastructure" have the meanings assigned by Section 113.001, Business & Commerce Code, as added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular Session, 2021.
(b)  An independent organization certified under Section 39.151 may not register a business entity or maintain the registration of a business entity to operate in the power region for which the independent organization is certified unless the business entity attests that the entity complies with Chapter 113, Business & Commerce Code, as added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular Session, 2021.
(c)  An independent organization certified under Section 39.151 shall require as a condition of operating in the power region for which the independent organization is certified that a business entity report to the independent organization the purchase of any critical electric grid equipment or service from a company described by Section 113.002(a)(2), Business & Commerce Code, as added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular Session, 2021.
(d)  For each purchase reported by a business entity under Subsection (c), the business entity shall submit an attestation to the independent organization that the purchase will not result in access to or control of its critical electric grid equipment by a company described by Section 113.002(a)(2), Business & Commerce Code, as added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular Session, 2021, excluding access specifically allowed by the business entity for product warranty and support purposes.
(e)  Notwithstanding any other law, an independent organization certified under Section 39.151 may immediately suspend or terminate a company's registration or access to any of the independent organization's systems if the independent organization has a reasonable suspicion that the company meets any of the criteria described by Section 2274.0102(a)(2), Government Code, as added by Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular Session, 2021.
(f)  A contractual provision that limits or contradicts Subsection (e) is contrary to public policy and is unenforceable and void.
(g)  An independent organization certified under Section 39.151 may adopt guidelines or procedures relating to the requirements in this section, including the qualification of electric grid equipment or services as critical.
(h)  The commission shall adopt any rules necessary to administer this section or authorize an independent organization to carry out a duty imposed by this section.
(i)  The attorney general may conduct periodic audits of the attestations required by Subsection (d) and may prioritize the audits as necessary to protect critical infrastructure.
Added by Acts 2023, 88th Leg., R.S., Ch. 464 (S.B. 2013), Sec. 5, eff. June 9, 2023.