SB1658

THE CONTEXT: Critical infrastructure are systems and assets, whether physical or virtual, that are so vital to this state and the United States (U. S.

WHAT THE BILL DID: The final vetoed version would restricts a business or a governmental entity in this state from entering into an agreement involving critical infrastructure in this state with a company if: a) Under the agreement, the company, directly or remotely, would be able to access or control critical infrastructure in this state, except for access that is specifically allowed for product warranty and support purposes; and b) The company is owned by or controlled by: i. Citizens of China, Iran, North Korea or Russia; or ii. A company or other entity, including a governmental entity owned or controlled by citizens of or is directly controlled by the government of China, Iran, North Korea or Russia or that is headquartered in these countries, exempt a company from the outlined restrictions regarding agreements involving critical infrastructure if the U.S. Committee on Foreign Investment in the United States or its successor committee has determined that there are no unresolved national security concerns regarding the transaction that created the company's ownership or allowed the company to operate in the U.S, and allow the Governor to designate a country as a threat to critical infrastructure in this state, in consultation with DPS.

WHY IT MATTERED: The practical reason for this bill was to make the government process for critical infrastructure more definite and accountable. It would restricts a business or a governmental entity in this state from entering into an agreement involving critical infrastructure in this state with a company if: a) Under the agreement, the company, directly or remotely, would be able to access or control critical infrastructure in this state, except for access that is specifically allowed for product warranty and support purposes; and b) The company is owned by or controlled by: i. Citizens of China, Iran, North Korea or Russia; or ii. A company or other entity, including a governmental entity owned or controlled by citizens of or is directly controlled by the government of China, Iran, North Korea or Russia or that is headquartered in these countries, and would also exempt a company from the outlined restrictions regarding agreements involving critical infrastructure if the U.S. Committee on Foreign Investment in the United States or its successor committee has determined that there are no unresolved national security concerns regarding the transaction that created the company's ownership or allowed the company to operate in the U.S, rather than leave the current rule unchanged.