Independent organizations certified under Section 39.151 may not register or keep a business entity as a market participant unless the entity attests to Chapter 117 compliance, and related reporting, attestation, audit, disclosure, and suspension rules apply.
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 117.001, Business & Commerce Code. (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, Business & Commerce Code. (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), Business & Commerce Code. (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), Business & Commerce Code, 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 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 described by Section 2275.0102(a)(2), Government Code. (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. (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. Added by Acts 2023, 88th Leg., R.S., Ch. 464 (S.B. 2013), Sec. 5, eff. June 9, 2023. Amended by: Acts 2025, 89th Leg., R.S., Ch. 204 (H.B. 1620), Sec. 21.001, eff. September 1, 2025. Acts 2025, 89th Leg., R.S., Ch. 1020 (S.B. 2368), Sec. 5, eff. September 1, 2025.