HB 129 Texas House · 89th Legislature (2025)

Relating to a prohibition on certain governmental contracts with foreign adversary companies and federally banned companies; authorizing a civil penalty.

HB 129 prohibits Texas state and local government entities from entering contracts with companies designated as "foreign adversary companies" (those tied to countries like China, Russia, or Iran) or "federally banned companies" (listed on federal sanctions lists). The bill defines these companies based on U.S. federal designations, including entities restricted under federal defense laws or sanctions. Violating this prohibition could result in civil penalties imposed by the state. The law directly affects Texas government agencies and contractors working with them, aiming to align state procurement with federal security policies.
Bill status passed 3 of 5 stages cleared
Introduction
Mar 2025
Committee Review
May 2025
House Passage
May 2025
Senate Passage
Governor
Introduced Mar 14, 2025 Last action May 9, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Engrossed · 6 edits · May 6, 2025
MODERATE
The bill was updated from an introduced draft to an engrossed version with significant formatting cleanup and the addition of new enforcement and timeline provisions. The core prohibitions on contracts with foreign adversary and federally banned companies remain unchanged, but the final version now includes specific debarment procedures, a civil penalty amount, and an effective date of September 1, 2025.
Scope change
The bill's scope remains focused on prohibiting state governmental contracts with foreign adversary and federally banned companies, but the applicability is now limited to contracts where the request for bids is made public on or after the effective date.
ENFORCEMENT

Added new subsections to Section 2278.005 establishing that the comptroller may bar vendors from participating in state contracts upon notice of contract termination for violations, with debarment expiring on the fifth anniversary.

Added Section 2278.006 establishing a civil penalty equal to the greater of twice the terminated contract amount or $250,000, with the attorney general authorized to recover penalties.

TIMELINE

Added Section 3 specifying that the Act takes effect on September 1, 2025.

Added Section 2 clarifying that the new chapter applies only to contracts where the request for bids is made public on or after the effective date, with prior contracts governed by existing law.

TECHNICAL

Removed formatting artifacts, page numbers, and markup symbols from the original draft text, and added a header indicating this is the engrossed version of HB 129.

DEFINITION

Added 'Hong Kong special administrative region' to the list of foreign adversaries in Section 2278.001(3)(A).

Floor votes · House May 6, 2025

How they voted

1358
Passed · 2 other
Total votes 145
May 6, 2025
D Democratic58
49 Yea 8 Nay 1
84% Yea
R Republican87
86 Yea 1
98% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
26
Key actions
7
Committee
7
May 9, 2025
Committee
Referred to State Affairs
upper
May 9, 2025
Introduced
Read first time
upper
May 6, 2025
Introduced
Received from the House
upper
May 6, 2025
Lower · Passed
Passed
lower
May 5, 2025
Lower · Passed
Passed to engrossment
lower
Apr 25, 2025
Lower · Passed
Committee report sent to Calendars
lower
Apr 23, 2025
Lower · Passed
Committee report distributed
lower
Apr 15, 2025
Lower · Passed
Reported favorably as substituted
lower
Apr 2, 2025
Lower · Passed
Left pending in committee
lower
Apr 2, 2025
Lower · Passed
Testimony taken/registration(s) recorded in committee
lower
Mar 14, 2025
Committee
Referred to Homeland Security, Public Safety & Veterans' Affairs
lower
Mar 14, 2025
Introduced
Read first time
lower
5 primary · 19 co-sponsors

Sponsors