The bill, titled "An Act relating to prohibiting the investment of state money in certain countries and in certain private business entities in those countries," amends the Government Code to establish stricter regulations on state investments. It introduces the term "country of concern," which includes China, Iran, North Korea, and Russia, as well as any country designated by the governor. The bill expands the definition of "scrutinized company" to include companies that are organized under the laws of, controlled by, or owned by individuals from a country of concern. Additionally, it prohibits investing entities from acquiring securities issued by these countries or their controlled entities, and from investing in banks located in these countries.

The bill also mandates that the governor consult with the Department of Public Safety and the Homeland Security Council to designate countries of concern and assess their status. It requires the comptroller to maintain a list of scrutinized companies and outlines procedures for notifying these companies of their status, allowing them a 90-day period to change their organizational structure to avoid divestment. If a company fails to make the necessary changes, the investing entity must divest from that company. The bill is set to take effect on September 1, 2025.

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)