S.B. No. 1200 introduces new regulations regarding the disclosure of financial relationships in civil actions involving United States defense contractors. The bill adds Chapter 28 to Subtitle B, Title 2 of the Civil Practice and Remedies Code, which defines "defense contractor" and "sanctioned or embargoed nation." It mandates that claimants in civil actions disclose any funding or financial support received from individuals or entities affiliated with sanctioned nations, as well as the identities of those funding sources. This disclosure must be made as part of the initial disclosures required under Texas Rules of Civil Procedure and must be supplemented throughout the duration of the action.

The bill also prohibits the withholding of such disclosures for any reason, including claims of privilege, and establishes sanctions for noncompliance, which may include staying the proceedings or dismissing the action with prejudice. The provisions of this chapter apply to actions pending in trial courts on the effective date of the Act or filed thereafter. The Act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that vote is not achieved.

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