89R9978 SCR-F     By: Campbell, et al. S.B. No. 2368       A BILL TO BE ENTITLED   AN ACT   relating to affiliation with certain foreign entities of certain   persons working or participating in the electricity market;   increasing an administrative penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  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 submitted   false or incomplete information to the independent organization   certified under Section 39.151 for the ERCOT power region may be in   an amount not to exceed $1,000,000 for each violation.          SECTION 2.  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 117.003, Business &   Commerce Code; and                            (ii)  any relationship between the   prospective employee and a foreign governmental entity or foreign   political organization.          SECTION 3.  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) to the attorney general or the commission.          (e)  Notwithstanding any other law, 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)  The attorney general may investigate the accuracy or   sufficiency of information provided under this section to an   independent organization certified under Section 39.151 and   disclose any new information obtained in relation to the   investigation to the independent organization or the commission.          SECTION 4.  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 5.  This Act takes effect September 1, 2025.