Relating to the establishment and powers and duties of the Texas Advisory Committee on Geopolitical Conflict.

89(R) HB 118 - House Committee Report version - Bill Text

89R19683 LRM-F

By: Hefner, et al.

H.B. No. 118

Substitute the following for H.B. No. 118:

By: Hefner

C.S.H.B. No. 118

A BILL TO BE ENTITLED

AN ACT

relating to the establishment and powers and duties of the Texas

Advisory Committee on Geopolitical Conflict.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle C, Title 4, Government Code, is amended

by adding Chapter 438 to read as follows:

CHAPTER 438.

TEXAS ADVISORY COMMITTEE ON GEOPOLITICAL CONFLICT

SUBCHAPTER A.

GENERAL PROVISIONS

Sec.

438.001.

SHORT TITLE.

This chapter may be cited as the

Texas Geopolitical Conflict Stress Test Act.

Sec.

438.002.

POLICY STATEMENT. (a)

It is the policy of

this state to support the civilian and military command of the

United States and its efforts to promote and maintain prosperity,

peace, and security for the United States and its allies.

It is the

policy of this state to enhance the defensive posture of this state,

to protect the citizens and assets of this state, and to contribute

to the broader defensive posture of the United States by reducing

security vulnerabilities within this state.

(b)

It is the policy of this state to exercise foresight and

make reasonable preparations for a potential geopolitical conflict

that:

(1)

involves attacks on the United States and its

allies;

(2)

involves asymmetrical attacks on the United States

homeland; and

(3)

causes the disruption or complete severing of

supply chains between this state and international trade partners.

Sec. 438.003. DEFINITIONS. In this chapter:

(1)

"Advisory committee" means the Texas Advisory

Committee on Geopolitical Conflict established under this chapter.

(2)

"Critical infrastructure" means a publicly or

privately owned system or asset, whether physical or virtual, so

vital to this state or to the United States that the incapacity or

destruction of the system or asset would have a debilitating impact

on state or national security, state or national economic security,

state or national public health, or any combination of these, and

includes:

(A)

an oil and gas production, storage, or

delivery system;

(B)

a water supply, refinement, storage, or

delivery system;

(C) a communications network;

(D) an electrical power delivery system;

(E) an emergency service system;

(F) a transportation system or service;

(G)

a personal data or classified information

storage system, including a cybersecurity system; or

(H) a military installation.

(3)

"Critical procurement" means a purchase made by a

state agency, a political subdivision of this state, or a private

nongovernmental organization that is critical to the proper

functioning of state services, state operations, or the operations

of this state's critical infrastructure, or the health, safety, or

security of this state's citizens.

(4)

"Drug supply chain" means the end-to-end process

for manufacturing, acquiring, shipping, and vending prescription

drugs beginning at any point of origin and ending in this state,

including acquiring and shipping any key starting materials and

active pharmaceutical ingredients necessary to manufacture and

distribute prescription drugs in this state.

(5) "Geopolitical conflict" means:

(A)

a declared war or armed conflict between the

United States or any of its allies and another nation that occurs in

the land, air, or sea and threatens or could reasonably escalate to

threaten the supply chains, critical infrastructure, safety, or

security of this state or the United States; or

(B)

a significant deterioration of diplomatic

ties or economic engagement between the United States or its allies

and another nation that threatens the status quo of trade, travel,

and military operations or exercises.

(6)

"State supply chain" means the end-to-end process

for shipping goods purchased by a state agency or a political

subdivision of this state to the state agency or political

subdivision, beginning at the point of origin through any point of

distribution, including through vendors, to the destination.

(7)

"Texas National Guard" has the meaning assigned by

Section 437.001.

SUBCHAPTER B.

ADVISORY COMMITTEE

Sec.

438.101.

ESTABLISHMENT OF TEXAS ADVISORY COMMITTEE ON

GEOPOLITICAL CONFLICT. The Texas Advisory Committee on

Geopolitical Conflict is established to:

(1)

develop state security strategies and policies

before a geopolitical conflict occurs; and

(2)

collect and prepare information to assist in

enhancing this state's command-and-control functions in the event

of a conflict described by Subdivision (1).

Sec.

438.102.

ADVISORY COMMITTEE COMPOSITION AND

ADMINISTRATION. (a)

The advisory committee consists of the

following nine members:

(1) one member appointed by the governor;

(2)

a representative of the Texas National Guard,

appointed by the governor;

(3) two members appointed by the lieutenant governor;

(4)

two members appointed by the speaker of the house

of representatives;

(5)

the adjutant general or the adjutant general's

designee;

(6)

the public safety director of the Department of

Public Safety or the public safety director's designee; and

(7)

the chief of the Texas Division of Emergency

Management or the chief's designee.

(b)

In making appointments to the advisory committee, the

governor, lieutenant governor, and speaker of the house of

representatives shall appoint individuals who have applicable

knowledge of the threats posed to this state in the event of a

geopolitical conflict.

Sec.

438.103.

TERMS; VACANCY. (a)

Except as provided by

Subsection (b), the appointed advisory committee members shall

serve for a term of two years.

(b)

Subsection (a) does not apply to the advisory committee

members described by Sections 438.102(a)(5), (6), and (7).

(c)

If a vacancy occurs on the advisory committee, the

appropriate appointing authority shall appoint a successor in the

same manner as the original appointment.

Sec.

438.104.

ADVISORY COMMITTEE OFFICERS. (a) The member

appointed by the governor under Section 438.102(a)(1) shall serve

as chair of the advisory committee and must have applicable

knowledge of the threats posed to this state in the event of a

geopolitical conflict and the research and leadership experience to

competently and comprehensively perform the advisory committee's

duties.

(b)

The lieutenant governor shall designate one appointee

to serve as vice chair of the advisory committee.

(c)

The advisory committee may elect additional officers

from among its members.

(d)

The advisory committee shall establish and approve

duties and responsibilities for advisory committee officers.

Sec.

438.105.

REIMBURSEMENT FOR EXPENSES. A member of the

advisory committee is not entitled to compensation for service on

the committee but is entitled to reimbursement for actual and

necessary expenses incurred in performing committee duties as

provided by the General Appropriations Act.

Sec.

438.106.

MEETINGS. (a)

The advisory committee shall

meet at least once every three months, with additional meetings on

the call of:

(1)

a majority of the members of the advisory

committee; or

(2) the governor.

(b)

Advisory committee meetings are not subject to Chapter

551.

Sec.

438.107.

GIFTS AND GRANTS.

The advisory committee may

accept gifts, grants, and donations to pay for the advisory

committee's activities under this chapter.

SUBCHAPTER C. POWERS AND DUTIES OF ADVISORY COMMITTEE

Sec.

438.201.

GENERAL POWERS. (a)

The advisory committee

may consult with and retain external advisors to provide expertise

and collaborative research support.

(b)

The advisory committee may conduct field

investigations, hold hearings, receive testimony in any form,

consult with federal and state officials, and otherwise take any

lawful action to carry out the purposes of the advisory committee.

Sec.

438.202.

TABLETOP EXERCISE; REPORT.

(a)

The advisory

committee, with assistance from the Texas National Guard, shall

conduct a tabletop exercise centered on an invasion by a foreign

adversary.

The exercise must explore the following scenarios:

(1)

a scenario that would result in aggression against

the armed forces of the United States; and

(2)

a scenario that would involve intentional or

incidental damage to a state supply chain, a critical

infrastructure facility, or another asset.

(b)

The advisory committee shall produce and submit to the

governor a report describing how a geopolitical conflict would

impact this state not later than May 29, 2026.

The advisory

committee may request additional tabletop exercise reports

following the initial report.

(c)

For the purpose of conducting a tabletop exercise under

this section, an entity providing electric or gas utility services

is not required to disclose the specific locations of the entity's

critical infrastructure to the advisory committee.

Sec.

438.203.

SUPPLY CHAINS AND CRITICAL PROCUREMENTS

AUDIT; REPORT. (a)

The advisory committee, with assistance from

the adjutant general, shall investigate critical procurements

supplied through a state supply chain that would be disrupted in the

event of a geopolitical conflict.

(b)

The advisory committee shall produce and submit a report

of the committee's findings to the governor not later than May 29,

2026.

(c) The initial report must:

(1)

identify all critical procurements produced in or

by a foreign adversary, a state-owned enterprise of a foreign

adversary, a company domiciled within the territory of a foreign

adversary, or a company owned by a company domiciled within the

territory of a foreign adversary, or substantially sourced from an

entity described by this subdivision;

(2)

identify all critical procurements manufactured

in countries, or by companies, at risk of disruption in the event of

a geopolitical conflict;

(3)

identify all critical procurements sourced from

any country or company that relies on a supply chain at risk of

disruption in the event of a geopolitical conflict;

(4)

recommend alternative sourcing strategies for

critical procurements, if available;

(5)

highlight the difficulty in identifying potential

alternative sourcing for critical procurements, if relevant; and

(6)

specify the level of risk to this state associated

with a disruption described by Subdivision (2) or (3) in supply

chain sourcing for each critical procurement that is threatened in

the event of the disruption.

(d)

The advisory committee may conduct additional

investigations following the initial report.

Sec.

438.204.

DRUG SUPPLY CHAIN AUDIT; REPORT. (a)

In this

section, "company subject to the jurisdiction of a foreign

adversary" includes a state-owned enterprise of a foreign

adversary, a company domiciled or headquartered in the territory of

a foreign adversary, or any wholly owned or majority-owned

subsidiary of a company domiciled or headquartered in the territory

of a foreign adversary.

(b)

The advisory committee, in collaboration with the

Health and Human Services Commission and the Department of State

Health Services, shall investigate the drug supply chain of this

state to identify prescription drugs, including active

pharmaceutical ingredients and key starting materials, that are

produced in or by a foreign adversary or substantially sourced from

a company subject to the jurisdiction of a foreign adversary.

(c)

The advisory committee shall investigate whether the

prescription drugs identified under Subsection (b):

(1) are of low or questionable efficacy; or

(2)

are toxic or contain impurities known to the

United States Food and Drug Administration, the United States

Department of Agriculture, or any other governmental agencies to

pose a risk to human health.

(d)

The advisory committee shall study whether the drug

supply chain of the prescription drugs identified under Subsection

(b) would be disrupted in the event of a geopolitical conflict.

(e)

The advisory committee shall produce an initial report

on the prescription drugs identified under Subsection (b). The

initial report must:

(1) list the prescription drugs;

(2)

identify the classes and common uses of the

prescription drugs;

(3)

assess the risk posed by the prescription drugs,

including concerns related to quality, efficacy, toxicity, or

impurity;

(4)

determine the impact of a geopolitical conflict on

the drug supply chain of the prescription drugs;

(5)

recommend alternative sourcing strategies for the

prescription drugs in the event of a geopolitical conflict;

(6)

describe any difficulty in identifying or using

alternative sourcing strategies under Subdivision (5) for

prescription drugs, as necessary; and

(7)

determine the feasibility and cost of creating and

maintaining a strategic supply of prescription drugs in the event

of a geopolitical conflict.

(f)

The advisory committee shall submit the initial report

of prescription drugs identified under this section to the governor

not later than May 29, 2026.

(g)

The advisory committee may conduct additional

investigations and produce additional reports on the prescription

drugs identified under Subsection (b) as the committee determines

necessary.

Sec.

438.205.

CRITICAL INFRASTRUCTURE PROTECTION AUDIT;

REPORT. (a)

The advisory committee shall investigate potential

threats to critical infrastructure in this state in the event of a

geopolitical conflict.

(b)

The advisory committee shall produce and submit to the

governor a report of the committee's findings not later than May 29,

2026.

(c) The initial report must:

(1)

identify all critical infrastructure and other

assets within this state that could reasonably be targeted in a

malicious act by a foreign adversary in the event of a geopolitical

conflict and would result in a significant negative impact on the

public health, safety, economic security, or physical security of

this state's citizens;

(2)

identify specific risks posed to each critical

infrastructure or other asset identified under Subdivision (1) in

the event of a geopolitical conflict, including known vectors of

attack such as cyberattack and physical sabotage; and

(3) develop strategies to:

(A)

prevent and protect against threats posed to

critical infrastructure and other assets identified under

Subdivision (1) in the event of a geopolitical conflict; and

(B)

minimize the damage to this state if a

malicious act described by Subdivision (1) succeeds in damaging

critical infrastructure and other assets in this state.

(d)

The advisory committee may conduct additional

investigations and produce additional reports as the committee

determines necessary.

Sec.

438.206.

OTHER INVESTIGATIONS. The advisory committee

may investigate additional matters at its own discretion on a

majority vote of the committee.

Sec.

438.207.

SUBPOENA. (a)

The advisory committee may

compel by subpoena the attendance of a relevant witness at a hearing

or the production for inspection or copying of a record that is

relevant to the advisory committee's duties under this chapter.

(b)

The advisory committee, acting through the attorney

general, may bring an action in a district court to enforce a

subpoena issued under Subsection (a) against a person who fails to

comply with the subpoena.

(c)

The court shall order compliance with the subpoena if

the court finds that good cause exists to issue the subpoena.

Sec.

438.208.

CONFIDENTIALITY OF INFORMATION. (a)

Except

as provided by Subsection (b), any research, data, reports,

findings, and other information provided to or produced by the

advisory committee:

(1)

is confidential and excepted from the requirements

of Section 552.021; and

(2) shall be maintained by the office of the governor.

(b)

The governor may disclose information described by

Subsection (a).

A disclosure by the governor is not considered a

disclosure of confidential information or a disclosure to the

public for purposes of Section 552.007 and does not waive the right

to assert in the future that the information is confidential or

excepted from required disclosure under this section or other law.

Sec.

438.209.

PUBLIC REPORT AND POLICY RECOMMENDATIONS.

(a)

Notwithstanding Section 438.208 and subject to Subsections (b)

and (c), the advisory committee shall make available an annual

report with narrative and summary findings from the advisory

committee's investigations for the purpose of educating the public.

(b)

The report may include policy recommendations for

consideration by state and local government officials and

recommendations to improve the resilience of this state's citizens

and critical infrastructure.

The report may not include any

information the release of which would pose a risk to state security

or national security.

(c)

The advisory committee may not release the report

required by Subsection (a) unless the release is approved by a

majority vote of the advisory committee.

Sec.

438.210.

EXPIRATION.

The advisory committee is

abolished and this chapter expires September 1, 2029.

SECTION 2. Not later than October 31, 2025, the governor,

the lieutenant governor, and the speaker of the house of

representatives shall appoint the members of the Texas Advisory

Committee on Geopolitical Conflict under Sections 438.102(a)(1),

(2), (3), and (4), Government Code, as added by this Act.

SECTION 3. This Act takes effect September 1, 2025.