89R22712 JSC-F     By: Hefner, et al. H.B. No. 41     Substitute the following for H.B. No. 41:     By:  Hefner C.S.H.B. No. 41       A BILL TO BE ENTITLED   AN ACT   relating to the acquisition or use of certain foreign equipment or   services by a governmental entity.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The heading to Chapter 423, Government Code, is   amended to read as follows:   CHAPTER 423. [USE OF] UNMANNED AIRCRAFT          SECTION 2.  Chapter 423, Government Code, is amended by   designating Sections 423.001 through 423.009 as Subchapter A and   adding a subchapter heading to read as follows:   SUBCHAPTER A.  REGULATION OF UNMANNED AIRCRAFT          SECTION 3.  Subchapter A, Chapter 423, Government Code, as   added by this Act, is amended by adding Section 423.010 to read as   follows:          Sec. 423.010.  ACQUISITION OR USE OF CERTAIN FOREIGN   UNMANNED AIRCRAFT OR RELATED EQUIPMENT OR SERVICES BY GOVERNMENTAL   ENTITY PROHIBITED. (a) In this section:                (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)  "Designated country" means a country identified by   the United States director of national intelligence as a country   that poses a risk to the national security of the United States in   at least one of the three most recent Annual Threat Assessments of   the U.S. Intelligence Community issued pursuant to Section 108B,   National Security Act of 1947 (50 U.S.C. Section 3043b).                (3)  "Governmental entity" means this state, a   political subdivision of this state, or an agency of this state or a   political subdivision of this state.          (b)  Except as provided by Subsection (d), a governmental   entity may not acquire or use an unmanned aircraft, or related   equipment or services, produced or provided by a company that the   governmental entity knows or has reason to believe is:                (1)  owned by or the majority of stock or other   ownership interest of the company is held or controlled by:                      (A)  the government of a designated country; or                      (B)  a company or other entity, including a   government entity, that is owned or controlled by the government of   a designated country; or                (2)  headquartered in a designated country.          (c)  The prohibition described by Subsection (b) applies   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 designated country.          (d)  A governmental entity that, before January 1, 2026,   acquired, or entered into a contract or agreement to acquire, an   unmanned aircraft or related equipment or services described by   Subsection (b) may continue to use the unmanned aircraft or related   equipment or services until January 1, 2031.          SECTION 4.  Chapter 423, Government Code, is amended by   adding Subchapter B to read as follows:   SUBCHAPTER B.  GRANT PROGRAM          Sec. 423.051.  DEFINITION. In this subchapter, "program"   means the Law Enforcement Secure Unmanned Aircraft Grant Program   administered under this subchapter.          Sec. 423.052.  ESTABLISHMENT OF PROGRAM. (a)  From money   appropriated for the purpose, the office of the governor shall   establish a grant program under this subchapter to provide grants   to law enforcement agencies to replace working equipment prohibited   under Section 423.010 that was actively in use by the law   enforcement agencies immediately before January 1, 2026, and that   has not reached its end of life before that date.          (b)  The governor's office shall award grants under the   program from money appropriated for purposes of the program.          Sec. 423.053.  GRANT APPLICATION. (a)  A law enforcement   agency may apply for a grant from the governor's office in the form   and manner prescribed by the governor's office.          (b)  The grant application must include the number and types   of unmanned aircraft or related equipment that require replacement.          Sec. 423.054.  USE OF FUNDS. Grant recipients may use funds   only to purchase replacement unmanned aircraft or related equipment   that complies with Section 423.010.          Sec. 423.055.  SURRENDER OF REPLACED UNMANNED AIRCRAFT OR   RELATED EQUIPMENT. To enable the designated entity to study or   dispose of the aircraft or related equipment, a grant recipient   promptly shall surrender to an entity designated by the governor's   office the prohibited unmanned aircraft or related equipment with   respect to which the grant was awarded.          Sec. 423.056.  EXPIRATION OF SUBCHAPTER. This subchapter   expires on the second anniversary of the date that all money   appropriated for the grant program established under this   subchapter has been expended.          SECTION 5.  Chapter 2054, Government Code, is amended by   adding Subchapter T to read as follows:   SUBCHAPTER T. MODEL SECURITY PLAN REGARDING CERTAIN FOREIGN   TELECOMMUNICATIONS OR VIDEO SURVEILLANCE TECHNOLOGIES          Sec. 2054.651.  MODEL SECURITY PLAN FOR PROHIBITED OR   SUSPECT TECHNOLOGIES. (a) In this section, "company" and   "governmental entity" have the meanings assigned by Section   423.010.          (b)  The department shall create and as necessary amend a   model security plan for prohibited or suspect technologies to   address a governmental entity's acquisition or use of   telecommunications or video surveillance equipment or services   that may present a risk to state security.          (c)  The model security plan must list known companies that   produce or provide telecommunications or video surveillance   equipment or services that may present a risk to state security.   The list must include any foreign company that is:                (1)  described by Section 423.010;                (2)  prohibited from participating in federal   contracts under Section 889, John S. McCain National Defense   Authorization Act for Fiscal Year 2019 (Pub. L. No. 115-232), or   other federal law; or                (3)  considered by the department to pose a risk to   state security.          (d)  The department shall make the model security plan   created under this section available to governmental entities.          SECTION 6.  Section 423.010(b), Government Code, as added by   this Act:                (1)  applies to the acquisition of an unmanned aircraft   or related equipment or services on or after the effective date of   this Act, except that a contract or agreement to purchase or   otherwise acquire an unmanned aircraft or related equipment or   services described by that subsection that is entered into before   January 1, 2026, is unaffected by this Act; and                (2)  except as otherwise provided by Section   423.010(d), Government Code, as added by this Act, applies to the   use of an unmanned aircraft or related equipment or services on or   after January 1, 2026, regardless of whether the unmanned aircraft   or related equipment or services were acquired before, on, or after   that date.          SECTION 7.  Not later than December 1, 2025, the Department   of Information Resources shall create the initial model security   plan required by Section 2054.651, Government Code, as added by   this Act.          SECTION 8.  This Act takes effect September 1, 2025.