Tex. Gov't Code Section 2270.0204
Actions Relating to Listed Company Engaged in Active Business Operations


(a)

For each listed company identified under Section 2270.0202 (Identification of Investment in Listed Companies) that is engaged in scrutinized active business operations, the investing entity shall send a written notice informing the company of its listed company status and warning the company that it may become subject to divestment by investing entities.

(b)

The notice shall offer the company the opportunity to clarify its Sudan-related, Iran-related, or designated foreign terrorist organization-related activities, as applicable, and shall encourage the company, not later than the 90th day after the date the company receives notice under this section, to either cease all scrutinized business operations as described by Sections 2270.0052 (Scrutinized Business Operations in Sudan), 2270.0102 (Scrutinized Business Operations in Iran), and 2270.0152 (Scrutinized Business Operations with Designated Foreign Terrorist Organization), or convert such operations to inactive business operations in order to avoid qualifying for divestment by investing entities.

(c)

If, during the time provided by Subsection (b), the company ceases scrutinized business operations described by that subsection, the comptroller shall remove the company from the list of scrutinized companies and this chapter will no longer apply to the company unless it resumes scrutinized business operations.

(d)

If, during the time provided by Subsection (b), the company converts its scrutinized active business operations to inactive business operations, the company is subject to all provisions of this chapter relating to inactive business operations.

(e)

If, after the time provided by Subsection (b) expires, the listed company continues to have scrutinized active business operations, the investing entity shall sell, redeem, divest, or withdraw all publicly traded securities of the company, except securities described by Section 2270.0207 (Investments Exempted from Divestment), according to the schedule provided by Section 2270.0206 (Divestment of Assets).
Added by Acts 2007, 80th Leg., R.S., Ch. 1375 (S.B. 247), Sec. 2, eff. January 1, 2008.
Transferred, redesignated and amended from Government Code, Chapter 806 by Acts 2017, 85th Leg., R.S., Ch. 96 (S.B. 253), Sec. 4, eff. May 23, 2017.

Source: Section 2270.0204 — Actions Relating to Listed Company Engaged in Active Business Operations, https://statutes.­capitol.­texas.­gov/Docs/GV/htm/GV.­2270.­htm#2270.­0204 (accessed Jun. 5, 2024).

2251
Payment for Goods and Services
2252
Contracts with Governmental Entity
2253
Public Work Performance and Payment Bonds
2254
Professional and Consulting Services
2255
Private Donors or Organizations
2256
Public Funds Investment
2257
Collateral for Public Funds
2258
Prevailing Wage Rates
2259
Self-insurance by Governmental Units
2260
Resolution of Certain Contract Claims Against the State
2261
State Contracting Standards and Oversight
2262
Statewide Contract Management
2263
Ethics and Disclosure Requirements for Outside Financial Advisors and Service Providers
2264
Restrictions on Use of Certain Public Subsidies
2265
Required Publication and Reporting by Governmental Entities
2267
Public and Private Facilities and Infrastructure
2268
Partnership Advisory Commission
2269
Contracting and Delivery Procedures for Construction Projects
2270.0001
Definitions
2270.0002
Exception
2270.0003
Other Legal Obligations
2270.0004
Inapplicability of Certain Requirements Inconsistent with Fiduciary Responsibilities and Related Duties
2270.0005
Conflict with Other Law
2270.0006
Indemnification of Investing Entities, Employees, and Others
2270.0007
No Private Cause of Action
2270.0008
Reliance on Company Response
2270.0051
Definitions
2270.0052
Scrutinized Business Operations in Sudan
2270.0053
Social Development Company
2270.0101
Definitions
2270.0102
Scrutinized Business Operations in Iran
2270.0151
Definitions
2270.0152
Scrutinized Business Operations with Designated Foreign Terrorist Organization
2270.0153
List of Designated Foreign Terrorist Organizations
2270.0201
Listed Companies
2270.0202
Identification of Investment in Listed Companies
2270.0203
Notice to Listed Company Engaged in Inactive Business Operations
2270.0204
Actions Relating to Listed Company Engaged in Active Business Operations
2270.0205
Actions Relating to Listed Company Complicit in Genocide
2270.0206
Divestment of Assets
2270.0207
Investments Exempted from Divestment
2270.0208
Authorized Investment in Listed Companies
2270.0209
Prohibited Investments
2270.0251
Expiration of Chapter
2270.0252
Report
2270.0253
Enforcement
2271
Prohibition on Contracts with Companies Boycotting Israel
2272
Certain Construction Liability Claims
2273
Prohibited Transactions
2274
Prohibition on Contracts with Companies that Discriminate Against Firearm and Ammunition Industries
2275
Prohibition on Contracts with Certain Foreign-owned Companies in Connection with Critical Infrastructure
2276
Prohibition on Contracts with Companies Boycotting Certain Energy Companies
2277
Agreements with Professional Sports Teams

Accessed:
Jun. 5, 2024

§ 2270.0204’s source at texas​.gov