LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION April 1, 2025 TO: Honorable Cole Hefner, Chair, House Committee on Homeland Security, Public Safety & Veterans' Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB34 by Metcalf (Relating to prohibiting the investment of state money in certain countries and in certain private business entities in those countries.), As Introduced The fiscal implications of the bill cannot be determined due to the lack of data related to the possible loss of return on investments from the Employees Retirement System of Texas and the Teacher Retirement System. The bill would amend the Government Code to prohibit the investment of state funds in certain countries and in certain private business entities in those countries. The bill would require the Comptroller of Public Accounts (CPA) to categorize scrutinized companies based on their involvement with China, Iran, North Korea, Russia, or other countries of concern and to include new scrutinized companies on an official list by January 1, 2026.According to the Employees Retirement System of Texas (ERS), the bill would have an indeterminate fiscal impact to the agency's programs and operations because the agency cannot determine its intention to acquire investments in countries that could be added to the list of countries of concern at a future date.According to the Teacher Retirement System (TRS), the fiscal impact of the bill cannot be determined as the difference in returns between affected investments and those that would replace them cannot be estimated.It is assumed costs to the CPA related to implementing the provisions of the bill could be absorbed by the agency. Local Government ImpactThe fiscal implications of the bill cannot be determined at this time. Source Agencies: b > td > 300 Trusteed Programs Within the Office of the Governor, 304 Comptroller of Public Accounts, 323 Teacher Retirement System, 326 Texas Emergency Services Retirement System, 327 Employees Retirement System, 338 Pension Review Board, 706 Texas Permanent School Fund Corporation LBB Staff: b > td > JMc, MGol, LCO, JPO, NV
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 1, 2025
TO: Honorable Cole Hefner, Chair, House Committee on Homeland Security, Public Safety & Veterans' Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB34 by Metcalf (Relating to prohibiting the investment of state money in certain countries and in certain private business entities in those countries.), As Introduced
TO: Honorable Cole Hefner, Chair, House Committee on Homeland Security, Public Safety & Veterans' Affairs
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB34 by Metcalf (Relating to prohibiting the investment of state money in certain countries and in certain private business entities in those countries.), As Introduced
Honorable Cole Hefner, Chair, House Committee on Homeland Security, Public Safety & Veterans' Affairs
Honorable Cole Hefner, Chair, House Committee on Homeland Security, Public Safety & Veterans' Affairs
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB34 by Metcalf (Relating to prohibiting the investment of state money in certain countries and in certain private business entities in those countries.), As Introduced
HB34 by Metcalf (Relating to prohibiting the investment of state money in certain countries and in certain private business entities in those countries.), As Introduced
The fiscal implications of the bill cannot be determined due to the lack of data related to the possible loss of return on investments from the Employees Retirement System of Texas and the Teacher Retirement System.
The fiscal implications of the bill cannot be determined due to the lack of data related to the possible loss of return on investments from the Employees Retirement System of Texas and the Teacher Retirement System.
The bill would amend the Government Code to prohibit the investment of state funds in certain countries and in certain private business entities in those countries. The bill would require the Comptroller of Public Accounts (CPA) to categorize scrutinized companies based on their involvement with China, Iran, North Korea, Russia, or other countries of concern and to include new scrutinized companies on an official list by January 1, 2026.According to the Employees Retirement System of Texas (ERS), the bill would have an indeterminate fiscal impact to the agency's programs and operations because the agency cannot determine its intention to acquire investments in countries that could be added to the list of countries of concern at a future date.According to the Teacher Retirement System (TRS), the fiscal impact of the bill cannot be determined as the difference in returns between affected investments and those that would replace them cannot be estimated.It is assumed costs to the CPA related to implementing the provisions of the bill could be absorbed by the agency.
It is assumed costs to the CPA related to implementing the provisions of the bill could be absorbed by the agency.
Local Government Impact
The fiscal implications of the bill cannot be determined at this time.
Source Agencies: b > td > 300 Trusteed Programs Within the Office of the Governor, 304 Comptroller of Public Accounts, 323 Teacher Retirement System, 326 Texas Emergency Services Retirement System, 327 Employees Retirement System, 338 Pension Review Board, 706 Texas Permanent School Fund Corporation
300 Trusteed Programs Within the Office of the Governor, 304 Comptroller of Public Accounts, 323 Teacher Retirement System, 326 Texas Emergency Services Retirement System, 327 Employees Retirement System, 338 Pension Review Board, 706 Texas Permanent School Fund Corporation
LBB Staff: b > td > JMc, MGol, LCO, JPO, NV
JMc, MGol, LCO, JPO, NV