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 Chapter 426 of the Government Code, detailing the committee's structure, which includes representatives from various state offices and agencies. The committee's primary focus is to assess transactions that could affect critical infrastructure, agricultural land, or sensitive personal data in Texas. The attorney general is empowered to conduct investigations and propose mitigation agreements when necessary. Certain transactions, such as those governed solely by federal law or involving passive ownership that does not confer control, are exempt from the committee's review.

Additionally, the bill outlines enforcement mechanisms, including civil penalties of up to $50,000 for violations and the ability for the attorney general to seek injunctions against offenders. It mandates that information obtained during the review process remains confidential and not subject to public disclosure. The bill also provides a defense for parties involved in good-faith disputes regarding mitigation agreements, requiring them to notify the attorney general before any contested actions. An annual report detailing reviewed transactions and legislative recommendations is required, and the bill is set to take effect on September 1, 2025, applying only to contracts entered into after January 1, 2026.

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