Bill > HB34

This bill expands Texas' existing restrictions on state investments in companies operating in certain countries, specifically targeting China, Iran, North Korea, and Russia. The bill introduces new definitions, including "control" (which means having significant influence over a company's management or policies) and "country of concern" (which includes the four named countries and potentially others designated by the governor). The legislation prohibits state investing entities from acquiring securities from or depositing money in banks located in these countries of concern. The bill also establishes criteria for identifying "scrutinized companies," which include businesses that are headquartered, controlled, or majority-owned by countries of concern. Companies will be given a 90-day notice period to change their structure or location to avoid divestment, and if they fail to do so, state investment entities will be required to sell or divest their securities according to a specified schedule. The comptroller is tasked with maintaining a list of these scrutinized companies and must update this list by January 1, 2026. The bill aims to restrict Texas' financial engagement with countries and companies deemed potentially hostile or problematic, reflecting a broader geopolitical strategy of economic pressure and isolation.

Government Affairs, Military Affairs and Security

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB34