SB1706

Regular Session

Relating to the authority of the governing board of a state governmental body to conduct a closed meeting to deliberate an issue involving certain defense, military, or aerospace issues.

LowStandard timeline

Low Cost

Effective:2025-09-01

Enforcing Agencies

Texas Attorney General (Oversight of Open Meetings Act compliance and validity of executive sessions)

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025.
Compliance Deadline: September 1, 2025. (Government Affairs teams must utilize this exception for any meetings scheduled on or after this date).
Agency Rulemaking: No formal rulemaking is mandated, but individual state boards (e.g., University Regents, Texas Space Commission) must update their internal agenda-setting procedures to cite this new exception correctly.

Immediate Action Plan

1. Update Playbooks: Revise Government Relations protocols to mandate requesting closed sessions for all qualifying defense/aerospace incentive discussions after Sept 1, 2025.
2. Audit Document Templates: Add watermarks and headers to all negotiation documents stating: "CONFIDENTIAL – EXEMPT FROM DISCLOSURE UNDER TEXAS GOV'T CODE."
3. Verify Agendas: Assign a compliance officer to review posted public meeting agendas 72 hours prior to your scheduled appearance to ensure the correct legal citation is present.
4. Define "Major": Establish an internal threshold (e.g., $5M+ investment) for when to invoke this protection to avoid legal challenges regarding the "major facility" requirement.

Operational Changes Required

Contracts

Pre-Contract Negotiation: Existing contracts are unaffected. However, for new incentive agreements or federal grant match contracts, you must explicitly request that negotiations occur in executive session under this new statute.
Voidability Clauses: Ensure your legal counsel reviews the final incentive agreement to confirm the meeting was properly noticed. If the board relies on this exception improperly, the resulting contract could be voided by a court.

Hiring/Training

Government Affairs & Lobbyists: Brief your external representatives immediately. They must know to request "Closed Session under SB1706/Gov’t Code Sec. 551.092" when scheduling appearances before state boards.
Legal Counsel: In-house counsel must monitor meeting agendas to ensure the specific statutory reference is cited *before* the meeting begins.

Reporting & Record-Keeping

Document Marking: While the *deliberation* is closed, documents provided to the board may still be subject to the Public Information Act (PIA). You must rigorously mark all handouts, slide decks, and financial models as "CONFIDENTIAL – PROPRIETARY COMMERCIAL INFORMATION" to layer PIA protections on top of the meeting exception.
Certified Agendas: The state body will record the closed session. In the event of a dispute regarding promises made by the state, this recording is your primary evidence.

Fees & Costs

No Direct Fees: There are no filing fees associated with this change.
Cost Savings: Reduces the "competitor intelligence" risk during site selection, potentially saving costs associated with real estate speculation or bid-sniping.

Strategic Ambiguities & Considerations

Definition of "Major Facility": The statute allows closed meetings for the establishment of a "major facility," but does not define "major" by square footage or capital investment.
*Risk:* If you use this exception for a minor satellite office, a court could rule the meeting illegal and void your incentives.
*Guidance:* Reserve this request for projects with significant CapEx or job creation to ensure it withstands judicial scrutiny.
"Strategic Endeavors": The law protects deliberations on "strategic endeavors" regarding federal match requirements. This is broad and untested.
*Guidance:* Ensure there is a clear federal nexus (DoD, NASA, CHIPS Act) before relying on this exception.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsAeronautics City Government City Government--general County Government County Government--general Legislature Military & Veterans Open Meetings State Agencies, Boards & Commissions

Official Analysis

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BILL ANALYSIS

Senate Research Center	S.B. 1706
89R14104 TJB-F	By: Hinojosa, Adam
	Business & Commerce
	3/25/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

S.B. 1706 amends the Texas Government Code to allow proposed Section 551.092 to allow state governmental bodies to hold closed meetings when deliberating defense, military, or aerospace issues involving the U.S. Department of Defense or NASA. The impact of this addition includes several key points.

As proposed, S.B. 1706 amends current law relating to the authority of the governing board of a state governmental body to conduct a closed meeting to deliberate an issue involving certain defense, military, or aerospace issues.

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 Subchapter D, Chapter 551, Government Code, by adding Section 551.092, as follows:

Sec. 551.092.� STATE GOVERNMENTAL BODIES: DEFENSE, MILITARY, AND AEROSPACE ISSUES; CLOSED MEETING. Defines "defense, military, or aerospace issue."

(b) Authorizes the governing board of a governmental body described by Section 551.001(3)(A) (relating to defining "governmental body" to mean certain entities within the executive or legislative branch of state government) to conduct a closed meeting to deliberate a defense, military, or aerospace issue.

SECTION 2. Effective date: upon passage or September 1, 2025.

Senate Authors

Sen. Adam HinojosaRepublican · Primary Author

Coauthors (1)

Mayes Middleton (R)

House Sponsors

Rep. Claudia Ordaz PerezDemocrat · Primary Sponsor

Joint Sponsors

Cosponsors (7)

Bill Text(with markup)

S.B. No. 1706

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to the authority of the governing board of a state
	governmental body to conduct a closed meeting to deliberate an
	issue involving certain defense, military, or aerospace issues.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Subchapter D, Chapter 551, Government Code, is
	amended by adding Section 551.092 to read as follows:
	Sec. 551.092. STATE GOVERNMENTAL BODIES: DEFENSE,
	MILITARY, AND AEROSPACE ISSUES; CLOSED MEETING. (a) In this
	section, "defense, military, or aerospace issue" means a matter
	related to:
	(1) the establishment of an office, base, or major
	facility in this state by the United States Department of Defense or
	the National Aeronautics and Space Administration; or
	(2) an economic incentive a governmental body may
	offer to a private entity or nonprofit organization to meet a match
	requirement or other requirement established by the United States
	Department of Defense or the National Aeronautics and Space
	Administration in relation to grants or strategic endeavors.
	(b) The governing board of a governmental body described by
	Section 551.001(3)(A) may conduct a closed meeting to deliberate a
	defense, military, or aerospace issue.
	SECTION 2. This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 26, 2025

TO:	Honorable Charles Schwertner, Chair, Senate Committee on Business & Commerce

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB1706 by Hinojosa, Adam (Relating to the authority of the governing board of a state governmental body to conduct a closed meeting to deliberate an issue involving certain defense, military, or aerospace issues.), As Introduced

No fiscal implication to the State is anticipated.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

LBB Staff:

JMc, RStu, BC, CWi

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Frequently Asked Questions

Common questions about SB1706

What does Texas SB1706 do?

SB1706 amends the Texas Open Meetings Act to provide a strategic shield for aerospace, defense, and military contractors negotiating with the State of Texas. Effective September 1, 2025, state governmental bodies may conduct closed executive sessions to deliberate economic incentives, site selections, and federal match requirements, protecting your proprietary negotiation strategies and trade secrets from immediate public and competitor scrutiny. Implementation Timeline Effective Date: September 1, 2025.

Who authored SB1706?

SB1706 was authored by Texas Senator Adam Hinojosa during the Regular Session.

When was SB1706 signed into law?

SB1706 was signed into law by Governor Greg Abbott on May 15, 2025.

Which agencies enforce SB1706?

SB1706 is enforced by Texas Attorney General (Oversight of Open Meetings Act compliance and validity of executive sessions).

How urgent is compliance with SB1706?

The compliance urgency for SB1706 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB1706?

The cost impact of SB1706 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does SB1706 address?

SB1706 addresses topics including aeronautics, city government, city government--general, county government and county government--general.

Legislative data provided by LegiScanLast updated: November 25, 2025

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