S.B. No. 2368         AN ACT   relating to critical infrastructure and utilities, including   affiliation with certain foreign entities of certain persons   working or participating in the electricity market; authorizing and   increasing administrative penalties.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 117, Business & Commerce Code, is   amended by adding Section 117.004 to read as follows:          Sec. 117.004.  ENFORCEMENT BY PUBLIC UTILITY COMMISSION OF   TEXAS. (a) The Public Utility Commission of Texas may impose an   administrative penalty in the manner provided by Chapter 15,   Utilities Code, on a business entity that is subject to the   jurisdiction of the commission under Title 2, Utilities Code, for a   violation of this chapter in which the business entity enters into   an agreement granting a company access to or control of the business   entity's critical electric grid equipment or critical   infrastructure.          (b)  The penalty for a violation described by Subsection (a)   may be in an amount not to exceed $1 million for each violation.          SECTION 2.  Section 15.023, Utilities Code, is amended by   adding Subsection (b-2) to read as follows:          (b-2)  Notwithstanding Subsection (b), the penalty for a   violation of Section 39.360 in which a business entity fails to   submit all required information to or knowingly submits false   information to an independent organization certified under Section   39.151 may be in an amount not to exceed $1 million for each   violation.          SECTION 3.  Subchapter B, Chapter 15, Utilities Code, is   amended by adding Sections 15.034 and 15.035 to read as follows:          Sec. 15.034.  CONFIDENTIALITY OF ENFORCEMENT INFORMATION.   (a)  Information and material in the possession of or obtained or   compiled by the commission that is related to a commission   enforcement proceeding under this subchapter is confidential and   not subject to disclosure under Chapter 552, Government Code.          (b)  Information and material in the possession of or   obtained or compiled by the commission that is related to a   commission enforcement proceeding under this subchapter is not   subject to disclosure, discovery, subpoena, or any other means of   legal compulsion for release, except:                (1)  to the commission or an employee or agent of the   commission; or                (2)  at the commission's discretion, to:                      (A)  a person involved in the enforcement   proceeding;                      (B)  a law enforcement agency; or                      (C)  a member of the legislature.          Sec. 15.035.  APPLICABILITY. For the purposes of imposing   an administrative penalty under this subchapter, "person"   includes:                (1)  an electric utility as defined by Section 31.002;                (2)  a municipally owned utility; and                (3)  an electric cooperative.          SECTION 4.  Section 39.151(g-7), Utilities Code, as added by   Chapter 464 (S.B. 2013), Acts of the 88th Legislature, Regular   Session, 2023, is redesignated as Section 39.151(g-8), Utilities   Code, and amended to read as follows:          (g-8) [(g-7)]  To maintain certification as an independent   organization under this section, the organization must:                (1)  identify all employee positions in the   organization that are critical to the security of the electric   grid; and                (2)  before hiring a person for a position described by   Subdivision (1), obtain:                      (A)  from the Department of Public Safety or a   private vendor, criminal history record information relating to the   prospective employee and any other background information   considered necessary by the independent organization or required by   the commission; and                      (B)  from the prospective employee, an   attestation regarding:                            (i)  any former travel by the prospective   employee to a country described by Section 117.002(a)(2)(A)(i),   Business & Commerce Code; and                            (ii)  any relationship between the   prospective employee and a foreign governmental entity or foreign   political organization.          SECTION 5.  Section 39.360, Utilities Code, as added by   Chapter 464 (S.B. 2013), Acts of the 88th Legislature, Regular   Session, 2023, is amended by amending Subsections (a), (b), (c),   (d), and (e) and adding Subsections (d-1) and (j) to read as   follows:          (a)  In this section, "company" and "critical   infrastructure" have the meanings assigned by Section 117.001   [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 as a market participant or   maintain the registration of a business entity to operate as a   market participant in the power region for which the independent   organization is certified unless the business entity attests that   the entity complies with Chapter 117 [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 as a market   participant 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   117.002(a)(2) [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 117.002(a)(2) [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.          (d-1)  An independent organization certified under Section   39.151 may:                (1)  require as a condition of market participant   registration that a business entity provide the independent   organization with additional information to confirm the accuracy of   an attestation or report required under Subsection (b), (c), or   (d); and                (2)  disclose information received under Subdivision   (1) or any other relevant information to the attorney general or the   commission.          (e)  Notwithstanding any other law but subject to Section   39.151(d-4)(6), an independent organization certified under   Section 39.151 may immediately suspend or terminate a business   entity's [company's] registration as a market participant or access   to any of the independent organization's systems if the independent   organization has a reasonable suspicion that the business entity is   a company [meets any of the criteria] described by Section   2275.0102(a)(2) [2274.0102(a)(2)], Government Code[, as added by   Chapter 975 (S.B. 2116), Acts of the 87th Legislature, Regular   Session, 2021].          (j)  On request of an independent organization certified   under Section 39.151, the attorney general may investigate the   accuracy or sufficiency of information provided under this section   to the independent organization and disclose any new information   obtained in relation to the investigation to the independent   organization or the commission.          SECTION 6.  Section 15.035, Utilities Code, as added by this   Act, applies only to a violation committed on or after the effective   date of this Act.  A violation committed before the effective date   of this Act is governed by the law in effect when the violation was   committed, and the former law is continued in effect for that   purpose.          SECTION 7.  To the extent of any conflict, this Act prevails   over another Act of the 89th Legislature, Regular Session, 2025,   relating to nonsubstantive additions to and corrections in enacted   codes.          SECTION 8.  This Act takes effect September 1, 2025.               ______________________________ ______________________________      President of the Senate Speaker of the House                 I hereby certify that S.B. No. 2368 passed the Senate on   April 22, 2025, by the following vote: Yeas 31, Nays 0; and that   the Senate concurred in House amendment on May 30, 2025, by the   following vote: Yeas 31, Nays 0.       ______________________________   Secretary of the Senate                I hereby certify that S.B. No. 2368 passed the House, with   amendment, on May 28, 2025, by the following vote: Yeas 138,   Nays 0, two present not voting.       ______________________________   Chief Clerk of the House            Approved:     ______________________________                Date       ______________________________              Governor