LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 16, 2025 TO: Honorable Bryan Hughes, Chair, Senate Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB667 by Hughes (Relating to prohibiting state retirement systems from investing in certain Chinese-affiliated entities.), As Introduced No significant fiscal implication to the State is anticipated. The bill would amend the Government Code to prohibit state retirement systems from investing in certain Chinese-affiliated entities. State retirement systems would not be subject to the requirements if the systems determined the requirements would be inconsistent with their fiduciary responsibilities. Under the provisions of the bill, the Comptroller of Public Accounts would be required to prepare and maintain a list of all restricted entities, and the Office of the Attorney General would be authorized to bring any action necessary to enforce compliance.According to the Employees Retirement System of Texas, the bill would have no significant fiscal impact. According to the Teacher Retirement System, the financial impact to investment returns cannot be determined.This analysis assumes that costs to the Comptroller of Public Accounts and the Office of the Attorney General from the provisions of the bill could be absorbed within existing resources. Local Government ImpactAccording to the Texas County and District Retirement System, the bill would have no significant fiscal impact. According to the Texas Municipal Retirement System, the affected investments are a very small portion of the system's portfolio, but the impact on the expected return on investments cannot be determined. Source Agencies: b > td > 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 323 Teacher Retirement System, 327 Employees Retirement System, 338 Pension Review Board LBB Staff: b > td > JMc, WP, LCO, JPO, NV
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 16, 2025
TO: Honorable Bryan Hughes, Chair, Senate Committee on State Affairs FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: SB667 by Hughes (Relating to prohibiting state retirement systems from investing in certain Chinese-affiliated entities.), As Introduced
TO: Honorable Bryan Hughes, Chair, Senate Committee on State Affairs
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: SB667 by Hughes (Relating to prohibiting state retirement systems from investing in certain Chinese-affiliated entities.), As Introduced
Honorable Bryan Hughes, Chair, Senate Committee on State Affairs
Honorable Bryan Hughes, Chair, Senate Committee on State Affairs
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
SB667 by Hughes (Relating to prohibiting state retirement systems from investing in certain Chinese-affiliated entities.), As Introduced
SB667 by Hughes (Relating to prohibiting state retirement systems from investing in certain Chinese-affiliated entities.), As Introduced
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend the Government Code to prohibit state retirement systems from investing in certain Chinese-affiliated entities. State retirement systems would not be subject to the requirements if the systems determined the requirements would be inconsistent with their fiduciary responsibilities. Under the provisions of the bill, the Comptroller of Public Accounts would be required to prepare and maintain a list of all restricted entities, and the Office of the Attorney General would be authorized to bring any action necessary to enforce compliance.According to the Employees Retirement System of Texas, the bill would have no significant fiscal impact. According to the Teacher Retirement System, the financial impact to investment returns cannot be determined.This analysis assumes that costs to the Comptroller of Public Accounts and the Office of the Attorney General from the provisions of the bill could be absorbed within existing resources.
According to the Employees Retirement System of Texas, the bill would have no significant fiscal impact. According to the Teacher Retirement System, the financial impact to investment returns cannot be determined.
This analysis assumes that costs to the Comptroller of Public Accounts and the Office of the Attorney General from the provisions of the bill could be absorbed within existing resources.
Local Government Impact
According to the Texas County and District Retirement System, the bill would have no significant fiscal impact. According to the Texas Municipal Retirement System, the affected investments are a very small portion of the system's portfolio, but the impact on the expected return on investments cannot be determined.
Source Agencies: b > td > 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 323 Teacher Retirement System, 327 Employees Retirement System, 338 Pension Review Board
302 Office of the Attorney General, 304 Comptroller of Public Accounts, 323 Teacher Retirement System, 327 Employees Retirement System, 338 Pension Review Board
LBB Staff: b > td > JMc, WP, LCO, JPO, NV
JMc, WP, LCO, JPO, NV