89R10594 LRM-F     By: Cain H.B. No. 2244       A BILL TO BE ENTITLED   AN ACT   relating to a prohibition on state contracts to purchase electric   vehicles and related components produced in scrutinized countries;   authorizing a civil penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle F, Title 10, Government Code, is   amended by adding Chapter 2278 to read as follows:   CHAPTER 2278. PROHIBITION ON STATE CONTRACTS FOR ELECTRIC VEHICLES   AND RELATED COMPONENTS PRODUCED IN SCRUTINIZED COUNTRIES          Sec. 2278.001.  DEFINITIONS. In this chapter:                (1)  "Company" means a sole proprietorship,   organization, association, corporation, partnership, joint   venture, limited partnership, limited liability partnership, or   limited liability company, including a wholly owned subsidiary,   majority-owned subsidiary, parent company, or affiliate of those   entities or business associations, that exists to make a profit.                (2)  "Electric vehicle" means a motor vehicle that   draws propulsion energy only from a rechargeable energy storage   system.                 (3)  "Forced labor or services" has the meaning   assigned by Section 20A.01, Penal Code.                (4)  "Nonprofit organization" means an entity that is   exempt from federal income tax under Section 501(a), Internal   Revenue Code of 1986, by being listed as an exempt entity under   Section 501(c) of that code, has submitted an application with the   Internal Revenue Service for recognition of an exemption under   Section 501(c) of that code, or is a nonprofit corporation or   association organized or formed under the laws of this state or   another state.                (5)  "Scrutinized country" means the People's Republic   of China.          Sec. 2278.002.  PROVISION REQUIRED IN STATE CONTRACTS. (a)   A state agency may not enter into a contract with a vendor to   purchase an electric vehicle or any component of an electric   vehicle unless the contract contains a written verification from   the vendor that:                (1)  the vendor is not:                      (A)  a company organized under the laws of or   headquartered in a scrutinized country;                      (B)  a company owned, operated, or directly   controlled by the government of a scrutinized country;                       (C)  a nonprofit organization or   government-organized nongovernmental organization organized under   the laws of or headquartered in a scrutinized country; or                      (D)  a company or nonprofit organization that   subcontracts with a company or organization described by Paragraphs   (A)-(C) for production of any component of an electric vehicle;                (2)  the electric vehicle or component of an electric   vehicle was not mined, produced, or manufactured wholly or partly   in a scrutinized country; or                (3)  the vendor or any subcontractor of the vendor has   not used forced labor or services in the production of the electric   vehicle or component.          (b)  The prohibitions described by Subsection (a) apply   regardless of whether:                (1)  the company's or its parent company's securities   are publicly traded; or                (2)  the company or its parent company is listed on a   public stock exchange as a company of a scrutinized country.          Sec. 2278.003.  CONTRACT TERMINATION FOR FALSE   VERIFICATION; BARRING FROM STATE CONTRACTS. (a) If a state agency   determines that a vendor holding a contract with the state agency   was ineligible for the contract awarded under Section 2278.002   because the vendor's written verification was false, the state   agency shall immediately terminate the contract without further   obligation to the vendor.          (b)  A vendor described by Subsection (a) is barred from   responding to a solicitation for or contracting for goods or   services procured by any state agency.          Sec. 2278.004.  ATTORNEY GENERAL ENFORCEMENT; CIVIL   PENALTY; INJUNCTION. (a) A vendor that is in violation of this   chapter is liable for a civil penalty not to exceed $250,000 for   each violation.           (b)  The attorney general may bring an action in the name of   this state to:                (1)  recover a civil penalty under this section;                (2)  restrain or enjoin the vendor from violating this   chapter; or                 (3)  recover the civil penalty and seek injunctive   relief.          (c)  The attorney general may recover reasonable attorney's   fees and court costs in bringing an action under this section.          SECTION 2.  Section 2278.002, 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 the   effective date of this Act 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 3.  This Act takes effect September 1, 2025.