SB 2117 Texas Senate · 89th Legislature (2025)

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

SB 2117 establishes the Texas Committee on Foreign Investment to review certain transactions involving foreign entities that affect Texas critical infrastructure, such as energy, water systems, or communications networks. It directly affects foreign entities (including non-U.S. citizens, foreign governments, or businesses from countries without U.S. trade agreements) seeking to acquire or control assets in these sectors. The bill requires these entities to submit transactions for review by the committee, with a civil penalty for non-compliance. Key provisions include defining "critical infrastructure" across 16 categories and mandating the committee’s review process for covered transactions. The bill does not block transactions but creates a regulatory framework for oversight.

Bill status passed 3 of 5 stages cleared

Introduction

Mar 2025

Committee Review

May 2025

Senate Passage

Apr 2025

House Passage

Governor

Introduced Mar 10, 2025 Last action May 20, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Introduced → Engrossed · 6 edits · Apr 28, 2025

MODERATE

The bill was updated from an introduced draft to an engrossed version with significant substantive changes, including the addition of new definitions for 'scrutinized foreign entity' and 'mitigation agreement', expanded committee membership to include the Public Utility Commission of Texas, new enforcement mechanisms with civil penalties up to $50,000, and specific implementation timelines. These changes strengthen the state's ability to review and regulate foreign investments in critical infrastructure and sensitive sectors.

Scope change

The bill's scope expanded to include additional oversight mechanisms and enforcement powers, with applicability limited to transactions governed by contracts entered into on or after January 1, 2026.

DEFINITION

Added new definition for 'scrutinized foreign entity' to clarify which foreign entities are subject to review under the chapter.

REQUIREMENT

Added new requirements for mitigation agreements that can include data protection protocols, security clearance requirements, access restrictions, and compliance reporting.

Added requirement for the attorney general to conduct secondary investigations within 45 days if further investigation is warranted.

ENFORCEMENT

Added enforcement mechanisms including civil penalties up to $50,000 per violation and authority for the attorney general to seek injunctions.

ELIGIBILITY

Modified committee membership to include the Public Utility Commission of Texas as an additional member.

TIMELINE

Added specific implementation timelines requiring criteria adoption by December 1, 2025, and applicability to contracts entered into on or after January 1, 2026.

Floor votes · Senate Apr 28, 2025

How they voted

28–2

Passed

Total votes 30

Apr 28, 2025

D Democratic10

8 Yea 2 Nay

80% Yea

R Republican20

20 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

May 20, 2025

Lower · Passed

Committee report sent to Calendars

lower

May 19, 2025

Lower · Passed

Committee report distributed

lower

May 16, 2025

Lower · Passed

Reported favorably as substituted

lower

Apr 30, 2025

Committee

Referred to State Affairs

lower

Apr 30, 2025

Introduced

Read first time

lower

Apr 29, 2025

Introduced

Received from the Senate

lower

Apr 28, 2025

Upper · Passed

Passed

upper

Apr 22, 2025

Upper · Passed

Committee report printed and distributed

upper

Apr 22, 2025

Upper · Passed

Reported favorably as substituted

upper

Apr 14, 2025

Upper · Passed

Vote taken in committee

upper

Apr 10, 2025

Upper · Passed

Left pending in committee

upper

Mar 24, 2025

Committee

Referred to State Affairs

upper

Mar 24, 2025

Introduced

Read first time

upper

4 primary · 1 co-sponsor