H.B. No. 34 is a legislative act aimed at prohibiting the investment of state funds in certain countries and private business entities associated with those countries. The bill introduces new definitions, including "Control," which refers to the ability to influence a company's management or policies, and "Country of concern," which includes China, Iran, North Korea, and Russia, as well as any country designated by the governor. The bill also expands the definition of "Scrutinized company" to include companies that engage in specific scrutinized business operations or are complicit in human rights violations, such as the Darfur genocide.

Additionally, the bill establishes a framework for the governor to designate countries of concern and prohibits investments in securities or banks located in those countries. It mandates that the comptroller maintain a list of scrutinized companies and outlines procedures for notifying these companies of their status, allowing them a chance to change their organizational structure to avoid divestment. The act 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)