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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
SB33

Regular Session

Relating to certain prohibited transactions and logistical support between a governmental entity and an abortion assistance entity or abortion provider for the procurement of an abortion or related services.

Government Affairs & Regulatory Compliance Analysis

SB33: Government Affairs Overview

Senate Bill 33 prohibits state and local governmental entities from entering into any "taxpayer resource transaction" (contracts, grants, or donations) with an "abortion assistance entity," defined broadly to include organizations that provide logistical support such as travel or lodging for abortion access. This legislation forces government contractors and grant recipients to choose between maintaining eligibility for public funds and offering employee benefits that cover abortion-related travel, with the Attorney General empowered to claw back the full value of contracts found in violation.

Sen. Donna Campbell·Senate Bill·Regular Session

Critical
High Cost
Effective:2025-09-01

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SB33
Critical
Relating to certain prohibited transactions and logistical support between a governmental entity and an abortion assistance entity or abortion provide...
Critical Compliance Urgency
Requires immediate attention
Cost Impact
High
Effective
2025-09-01
Enforcing Agencies
HHSCOAG
Primary Author: Sen. Donna Campbell
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: August 31, 2025 (You must be fully compliant before the effective date. Any transaction active on or entered into after Sept 1 is subject to enforcement.)
  • Agency Rulemaking: The Health and Human Services Commission (HHSC) is not explicitly required to write defining rules, leaving the interpretation of "facilitating" abortion procurement to the Attorney General's enforcement discretion. This creates a high-risk regulatory gray zone immediately upon effectiveness.

Immediate Action Plan

  • 1. Conduct an Immediate Benefits Audit: Review all HR policies regarding travel reimbursements, healthcare stipends, and charitable matching to identify "logistical support" for abortion.
  • 2. Review Insurance Exclusions: Consult with your broker regarding D&O and E&O coverage; standard policies often exclude "disgorgement" or "reimbursement of value" penalties.
  • 3. Vet Your Supply Chain: If you are a prime contractor, survey your subcontractors immediately. You are liable for the "transaction" if your downstream partners trigger the ban.
  • 4. Isolate Government Revenue: If you must continue prohibited activities, establish a separate legal entity for government contracting that is firewalled from the entity providing abortion assistance, though "affiliate" rules make this complex.

Operational Changes Required

Contracts

  • Vendor Certification: You must prepare to sign new representations and warranties in all state, county, and municipal contracts certifying your organization is not an "abortion assistance entity."
  • Subcontractor Flow-Down: Prime contractors must amend sub-vendor agreements to include indemnification clauses. If a subcontractor is deemed an abortion assistance entity, it could trigger a default on your prime contract.
  • Termination Clauses: Expect and review new "Termination for Cause" provisions in government contracts that trigger immediately upon an OAG finding of violation.

Hiring/Training

  • HR Benefits Audit: Human Resources must segregate or eliminate abortion travel stipends and logistical support benefits if the organization intends to maintain government contracts.
  • Procurement Training: Procurement officers must be trained to vet downstream vendors and grant sub-recipients for "abortion assistance" activities, not just medical services.

Reporting & Record-Keeping

  • Fund Segregation: Non-profits receiving government grants must implement strict fund accounting to prove taxpayer dollars are not commingled with funds used for abortion logistics (though this may not be a sufficient defense against the "transaction" ban).
  • Federal Conflict Filings: If claiming a federal mandate (e.g., EMTALA) requires you to provide these services, you must file a formal request for determination with the HHSC Executive Commissioner, which requires written confirmation from the Attorney General.

Fees & Costs

  • Litigation Risk: The statute provides for the recovery of reasonable attorney's fees and court costs by the state.
  • Disgorgement Risk: The penalty is the "reimbursement of any value conferred." If you complete a $10M construction project but are found in violation, the state can seek repayment of the $10M, regardless of the work performed.

Strategic Ambiguities & Considerations

  • "Facilitating" vs. General Benefits: The law defines an abortion assistance entity as one that "facilitates" the procurement of an abortion. It is unclear if general Health Savings Accounts (HSAs) or broad travel stipends used by an employee for an abortion constitute "facilitation" by the employer.
  • "Affiliate" Definition: The prohibition extends to "affiliates" of abortion providers. The statute lacks a technical definition of "affiliate" (e.g., ownership percentage vs. contractual relationship), creating liability for hospital systems or universities with loose administrative ties to clinics.
  • Federal Preemption Mechanism: The process to claim federal preemption requires the agreement of the Texas Attorney General. Relying on federal law as a shield is operationally risky without this pre-approval.

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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.

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Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 14, 2025
Passed Senate
Apr 16, 2025
Passed House
May 22, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsAbortionCity GovernmentCity Government--generalCivil Remedies & LiabilitiesCounty GovernmentCounty Government--generalCourtsCourts--civil ProcedurePolitical SubdivisionsState Agencies, Boards & CommissionsState FinancesState Finances--management & ControlMedicine & Prescription DrugsPregnancy & ChildbirthTravel
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Senate Authors

Sen. Donna CampbellRepublican · Primary Author
Joint Authors
Coauthors (1)

House Sponsors

Rep. Phil KingRepublican · Primary Sponsor
Joint Sponsors
Cosponsors (54)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Sen. Donna Campbell

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Related by Topic

View more Abortion legislation
Quick Reference

Frequently Asked Questions

Common questions about SB33

Q

What does Texas SB33 do?

Senate Bill 33 prohibits state and local governmental entities from entering into any "taxpayer resource transaction" (contracts, grants, or donations) with an "abortion assistance entity," defined broadly to include organizations that provide logistical support such as travel or lodging for abortion access. This legislation forces government contractors and grant recipients to choose between maintaining eligibility for public funds and offering employee benefits that cover abortion-related travel, with the Attorney General empowered to claw back the full value of contracts found in violation.

Q

Who authored SB33?

SB33 was authored by Texas Senator Donna Campbell during the Regular Session.

Q

When was SB33 signed into law?

SB33 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB33?

SB33 is enforced by Health and Human Services Commission (HHSC) - limited role in determining federal law conflicts and Office of the Attorney General (OAG).

Q

How significant are the changes in SB33?

The regulatory priority for SB33 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB33?

The cost impact of SB33 is estimated as "high". This may vary based on industry and implementation requirements.

Q

What topics does SB33 address?

SB33 addresses topics including abortion, city government, city government--general, civil remedies & liabilities and county government.

Q

What are the key dates for SB33?

Key dates for SB33: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

What are the penalties under SB33?

SB33 establishes the following penalties: civil penalty of Reimbursement of any value conferred by the transaction, plus court costs and reasonable attorney's fees for Entering into a prohibited taxpayer resource transaction (contract) with a governmental entity while classified as an 'abortion assistance entity' or receiving logistical support funds.; civil penalty of Injunctive Relief for Termination of the contract/transaction and prohibition of future transactions.. Consult with legal counsel for specific applicability to your situation.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026