The bill establishes the Texas Committee on Foreign Investment, which will review foreign transactions involving scrutinized foreign entities in collaboration with the attorney general. It introduces a new Chapter 426 to the Government Code, detailing the committee's structure, which includes representatives from various state offices and agencies. The committee's primary focus will be on transactions that could impact critical infrastructure, agricultural land, or sensitive personal data of Texas residents. The attorney general will conduct investigations of notified transactions and may propose mitigation agreements to address any concerns.

Additionally, the bill outlines the committee's operational requirements, including the attorney general's obligation to submit reports on transaction reviews and the timeline for actions regarding mitigation agreements. It establishes penalties for violations of the chapter, including civil penalties of up to $50,000 for executing transactions without a required mitigation agreement. The bill also mandates an annual report from the committee and sets a deadline for the secretary of state to adopt criteria by December 1, 2025. The new regulations will apply only to contracts entered into on or after January 1, 2026, and the act is set to take effect on September 1, 2025.

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