Summary of Texas Government Code Chapter 809

In an attempt to protect its oil and gas industry, Texas has passed legislation that seeks to punish investment firms that divest from fossil fuel.

On March 16, 2022, the Texas Comptroller of Public Accounts, Glenn Hegar, sent a letter to 19 major financial companies (not limited to US or Texas-based companies (including Japanese companies)) requesting verification that they do not engage in investment policies that boycott fossil fuel-based energy. This request was made pursuant to Texas Government Code Chapter 809: recent legislation prohibiting the Texas government from investing in financial companies that take any action intended to penalize, inflict economic harm, or limit commercial relations with a company based on the company’s involvement in fossil fuel-based energy.