Texas Senate Bill SB1063

Texas 2025 - 89th Regular

• Filed: 2/3/25

Caption

Relating to prohibiting contracts or other agreements with foreign-owned companies in connection with agricultural land.

Impact

If enacted, SB1063 would amend Chapter 113 of the Business & Commerce Code, introducing significant restrictions on agreements involving foreign entities. Specifically, the bill defines terms such as 'agricultural land' and 'critical infrastructure,' and it directs that businesses may not engage with companies primarily owned or controlled by foreign citizens. This law could lead to increased scrutiny of foreign investments and tighten regulations on how local businesses conduct contracts pertaining to critical resources.

Summary

SB1063 aims to prohibit contracts and agreements between Texas-based business entities and foreign-owned companies regarding agricultural land and critical infrastructure. The bill seeks to prevent any foreign influence in sectors identified as essential for the state's security and economy. This legislation reflects growing concerns regarding foreign investment in critical sectors and how it may pose risks to national security and local economies. By prohibiting these agreements, the bill aims to protect Texas resources and infrastructure from potential foreign control.

Contention

The bill reflects a growing sentiment around protecting local interests against foreign influence; however, it may also raise concerns about overregulation and potential economic repercussions, particularly for businesses that rely on international partnerships. Critics may argue that the bill could inhibit economic growth and limit opportunities for businesses, especially in industries that often collaborate with foreign firms. As the legislation moves forward, it is likely to spark debate over balancing national security measures with economic development needs.