Texas Senate Bill SB2117

Texas 2025 - 89th Regular

• Filed: 3/10/25

Caption

Relating to the establishment of the Texas Committee on Foreign Investment to review certain transactions involving certain foreign entities; creating a civil penalty.

Impact

This legislation strengthens state mechanisms for overseeing foreign investments that may pose risks to public safety and national security. It empowers the attorney general to impose civil penalties on entities that fail to comply with the proposed review process, thereby enhancing accountability. Additionally, it mandates the development of annual reports summarizing reviewed transactions and potential legislative adjustments, ensuring ongoing scrutiny of foreign activities that could affect the state's safety or economic stability.

Summary

Senate Bill 2117 introduces the Texas Committee on Foreign Investment, establishing a framework for reviewing certain foreign transactions involving foreign entities that could impact state interests. The bill defines key terms and sets forth the committee's role in evaluating transactions, particularly those involving critical infrastructure sectors such as energy, healthcare, and transportation. By requiring prior notification to the attorney general for specified transactions, the bill aims to mitigate risks arising from foreign control or investment in sensitive sectors.

Contention

Notably, concerns may arise regarding the balance between security and business freedom. While supporters argue that such measures are necessary to protect state interests and infrastructure from foreign threats, critics may contend that they could deter foreign investment or create unnecessary bureaucratic hurdles for businesses. As the mechanism provides extensive authority to the attorney general and the committee, discussions around transparency and potential overreach of state power are likely to emerge as significant points of contention.