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TexasHB 3489th Legislature Regular SessionHouse

Relating to prohibiting the investment of state money in certain countries and in certain private business entities in those countries.

Sponsored By: Greg Bonnen, Giovanni Capriglione, Cole Hefner, Bryan Hughes (Republican), Will Metcalf

Signed by Governor

GovernorIntergovernmental RelationsRetirement Systems--GeneralState Agencies, Boards & CommissionsState Finances--Management & ControlINTERNATIONAL RELATIONSTERRORISM & INTERNAL SECURITYCOMPTROLLER OF PUBLIC ACCOUNTSHOMELAND SECURITY COUNCILPUBLIC SAFETY, DEPARTMENT OF

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 2 costs, 0 mixed.

Federal sanctions exclusions preserve Texas investments

Beginning September 1, 2025, companies expressly excluded by the U.S. government from specified sanctions are exempt from these Texas investment restrictions. The sanctions cover Sudan, Iran, other countries of concern, or designated foreign terrorist organizations. Texas investment entities can keep or make otherwise prohibited investments in qualifying companies. The exception does not provide a direct household payment.

Texas limits state investments tied abroad

Beginning September 1, 2025, Texas bars state investment entities from buying securities issued by countries of concern. The ban also covers entities owned or controlled by those countries, or subject to their laws. State investment entities cannot invest in or deposit money with banks whose main place of business is in those countries. China, Iran, North Korea, and Russia are covered; the governor can add countries after consulting state public safety and homeland security officials. These limits apply to state money, not personal investments or bank accounts.

Texas must sell flagged company investments

Beginning September 1, 2025, Texas flags companies formed under a country of concern’s laws, headquartered there, or mainly based there. It also flags companies controlled by that country, its government, ruling party, or military, or majority-owned or controlled by that country or its citizens. Control includes influence over management or policies, unless it comes solely from an official company position. U.S. persons under federal export rules and companies earning no more than 50% of annual worldwide revenue from a country of concern are excluded. The comptroller must maintain the list, update it annually, and include the newly covered companies by January 1, 2026. State investment entities must notify listed companies, which have 90 days after receiving notice to change their structure, ownership, or location. Companies that no longer qualify are removed from the list. Otherwise, state investment entities must sell or withdraw all publicly traded securities in those companies, following the statutory schedule and an exception for specified private equity funds.

Sponsors & Cosponsors

Sponsors

  • Greg Bonnen

    House

  • Giovanni Capriglione

    House

  • Cole Hefner

    House

  • Bryan Hughes

    Republican • Senate

  • Will Metcalf

    House

Cosponsors

  • Jeff Barry

    House

  • Paul Bettencourt

    Republican • Senate

  • Benjamin Bumgarner

    House

  • Briscoe Cain

    House

  • David Cook

    House

  • Pat Curry

    House

  • Paul Dyson

    House

  • Brent Hagenbuch

    Republican • Senate

  • Cody Harris

    House

  • Caroline Harris Davila

    House

  • Hillary Hickland

    House

  • Janis Holt

    House

  • Carrie Isaac

    House

  • Lois Kolkhorst

    Republican • Senate

  • Janie Lopez

    House

  • John McQueeney

    House

  • Angelia Orr

    House

  • Tan Parker

    Republican • Senate

  • Katrina Pierson

    House

  • Ellen Troxclair

    House

  • Terry M. Wilson

    House

Roll Call Votes

All Roll Calls

Yes: 390 • No: 51

House vote • 5/23/2025

Record vote

Yes: 117 • No: 20

Senate vote • 5/19/2025

Record vote

Yes: 0 • No: 0

Senate vote • 5/19/2025

Record vote

Yes: 0 • No: 0

House vote • 4/30/2025

Record vote

Yes: 119 • No: 20

House vote • 4/29/2025

Record vote

Yes: 133 • No: 11

Senate vote • Unknown

Committee vote: State Affairs

Yes: 11 • No: 0

House vote • Unknown

Committee vote: Homeland Security, Public Safety & Veterans' Affairs

Yes: 10 • No: 0

Actions Timeline

  1. Effective on 9/1/25

    6/20/2025House

  2. Signed by the Governor

    6/20/2025House

  3. Sent to the Governor

    5/26/2025House

  4. Signed in the Senate

    5/25/2025Senate

  5. Signed in the House

    5/25/2025House

  6. Reported enrolled

    5/24/2025House

  7. House concurs in Senate amendment(s)-reported

    5/23/2025Senate

  8. Text of Senate Amendment(s)

    5/23/2025House

  9. Statement(s) of vote recorded in Journal

    5/23/2025House

  10. Record vote (RV#3432)

    5/23/2025House

  11. House concurs in Senate amendment(s)

    5/23/2025House

  12. Senate Amendments Analysis distributed

    5/20/2025House

  13. Senate Amendments distributed

    5/20/2025House

  14. Senate passage as amended reported

    5/20/2025House

  15. Record vote

    5/19/2025Senate

  16. Passed

    5/19/2025Senate

  17. Read 3rd time

    5/19/2025Senate

  18. Record vote

    5/19/2025Senate

  19. Three day rule suspended

    5/19/2025Senate

  20. Vote recorded in Journal

    5/19/2025Senate

  21. Read 2nd time & passed to 3rd reading

    5/19/2025Senate

  22. Vote recorded in Journal

    5/19/2025Senate

  23. Rules suspended-Regular order of business

    5/19/2025Senate

  24. Co-sponsor authorized

    5/19/2025Senate

  25. Placed on intent calendar

    5/16/2025Senate

Bill Text

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