BILL ANALYSIS Senate Research Center S.B. 2138 89R1918 KJE-F By: Creighton Education K-16 4/2/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT The 87th Legislature passed legislation that prohibits governmental entities from entering into contracts with companies boycotting the fossil fuel sector through Environmental, Social, and Governance (ESG) initiatives. The politically fueled practice of ESG initiatives results in financially underperforming funds for investors. S.B. 2138 would close a critical loophole by applying Chapter 809 (Prohibition on Investment in Financial Companies That Boycott Certain Energy Companies), Government Code, to Texas public universities. As proposed, S.B. 2138 amends current law relating to prohibiting the investment of the permanent university fund, the Texas University Fund, or money held by a public institution of higher education in financial companies that boycott certain energy companies. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 51.0031, Education Code, by adding Subsection (e) to provide that Chapter 809 (Prohibition on Investment in Financial Companies That Boycott Certain Energy Companies), Government Code, applies to a governing board as if the governing board were a state governmental entity under that chapter. SECTION 2. Amends Section 62.143, Education Code, by adding Subsection (d) to provide that Chapter 809, Government Code, applies to the Texas University Fund as if the fund were a state governmental entity under that chapter. SECTION 3. Amends Subchapter A, Chapter 66, Education Code, by adding Section 66.015, as follows: Sec. 66.015. PROHIBITION ON INVESTMENT IN FINANCIAL COMPANIES THAT BOYCOTT CERTAIN ENERGY COMPANIES. Provides that, notwithstanding Section 66.01 (Permanent University Fund), Chapter 809, Government Code, applies to the permanent university fund as if the fund were a state governmental entity under that chapter. SECTION 4. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 2138
89R1918 KJE-F By: Creighton
Education K-16
4/2/2025
As Filed
Senate Research Center
S.B. 2138
89R1918 KJE-F
By: Creighton
Education K-16
4/2/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The 87th Legislature passed legislation that prohibits governmental entities from entering into contracts with companies boycotting the fossil fuel sector through Environmental, Social, and Governance (ESG) initiatives.
The politically fueled practice of ESG initiatives results in financially underperforming funds for investors. S.B. 2138 would close a critical loophole by applying Chapter 809 (Prohibition on Investment in Financial Companies That Boycott Certain Energy Companies), Government Code, to Texas public universities.
As proposed, S.B. 2138 amends current law relating to prohibiting the investment of the permanent university fund, the Texas University Fund, or money held by a public institution of higher education in financial companies that boycott certain energy companies.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 51.0031, Education Code, by adding Subsection (e) to provide that Chapter 809 (Prohibition on Investment in Financial Companies That Boycott Certain Energy Companies), Government Code, applies to a governing board as if the governing board were a state governmental entity under that chapter.
SECTION 2. Amends Section 62.143, Education Code, by adding Subsection (d) to provide that Chapter 809, Government Code, applies to the Texas University Fund as if the fund were a state governmental entity under that chapter.
SECTION 3. Amends Subchapter A, Chapter 66, Education Code, by adding Section 66.015, as follows:
Sec. 66.015. PROHIBITION ON INVESTMENT IN FINANCIAL COMPANIES THAT BOYCOTT CERTAIN ENERGY COMPANIES. Provides that, notwithstanding Section 66.01 (Permanent University Fund), Chapter 809, Government Code, applies to the permanent university fund as if the fund were a state governmental entity under that chapter.
SECTION 4. Effective date: September 1, 2025.