Bill > SB2117

This bill establishes the Texas Committee on Foreign Investment (TCFI), a new state-level committee designed to review and potentially restrict foreign transactions involving entities from countries not having trade agreements with the United States. The committee, composed of representatives from various state agencies including the Attorney General's office, will review "covered transactions" that exceed certain dollar value thresholds and potentially impact critical infrastructure, agricultural land, or sensitive personal data in Texas. When a foreign entity seeks to acquire or control a Texas-based business or asset, they must notify the Attorney General at least 45 days before finalizing the transaction. The Attorney General will conduct an initial and potentially secondary investigation, and if national security risks are identified, can propose a mitigation agreement with requirements like data protection protocols, security clearance restrictions, and access limitations. Violations of these agreements can result in civil penalties up to $50,000 per violation, and the Attorney General can seek injunctions to prevent transactions. The committee must submit an annual report to state leadership detailing the number of transactions reviewed and recommendations for legislative changes. The bill will take effect September 1, 2025, and apply only to transactions initiated on or after January 1, 2026, providing a transition period for affected entities.

Government Affairs

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB2117