The bill establishes the Texas Committee on Foreign Investment, which is tasked with reviewing certain transactions involving foreign entities that may impact state security. It introduces Chapter 426 to the Government Code, defining key terms such as "covered transaction," "foreign entity," and "critical infrastructure." The committee will consist of representatives from various state offices, including the governor's office, the attorney general, and other relevant agencies. The governor, in consultation with the committee, will set criteria for determining which foreign transactions require review, focusing on those that exceed specific dollar values or ownership percentages and affect critical infrastructure, agricultural land, sensitive personal data, or strategic industries.

Additionally, the bill outlines the process for notifying the attorney general about covered transactions, the review timeline, and the potential for mitigation agreements to protect state interests. Violations of the chapter can result in civil penalties of up to $50,000 per violation, and the attorney general is empowered to take legal action to enforce compliance. The committee is also required to submit an annual report detailing the transactions reviewed and any recommendations for legislative changes to enhance state and national security. The provisions of this act will apply to transactions entered into on or after January 1, 2026, with the act taking effect on September 1, 2025.

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