H.B. No. 34 aims to prohibit the investment of state funds in certain countries and private business entities associated with those countries, specifically targeting nations deemed as "countries of concern," which include China, Iran, North Korea, and Russia. The bill introduces new definitions, such as "Control," which refers to the ability to influence a company's management or policies, and "Country of concern," which can be designated by the governor. Additionally, the bill expands the definition of "scrutinized company" to include entities that engage in specific scrutinized business operations or are complicit in human rights violations, such as the Darfur genocide.

The legislation also establishes a framework for the governor to designate countries of concern and outlines prohibitions on investments in securities or banks located in these countries. It mandates that the comptroller maintain a list of scrutinized companies and provides a process for notifying these companies of their status, allowing them a chance to change their operations to avoid divestment. The bill is set to take effect on September 1, 2025, and includes provisions for the comptroller to update the list of scrutinized companies by January 1, 2026.

Statutes affected:
Introduced: Government Code 2270.0001, Government Code 2270.0002, Government Code 2270.0201 (Government Code 2270)
House Committee Report: Government Code 2270.0001, Government Code 2270.0002, Government Code 2270.0201 (Government Code 2270)
Engrossed: Government Code 2270.0001, Government Code 2270.0002, Government Code 2270.0201 (Government Code 2270)
Senate Committee Report: Government Code 2270.0001, Government Code 2270.0002, Government Code 2270.0201 (Government Code 2270)
Enrolled: Government Code 2270.0001, Government Code 2270.0002, Government Code 2270.0201 (Government Code 2270)