All Roll Calls
Yes: 198 • No: 107
TexasSB 66789th Legislature Regular SessionSenate
Relating to prohibiting certain state governmental entities from investing in certain Chinese-affiliated entities.
Sponsored By: Jeff Barry, Bryan Hughes (Republican)
Signed by Governor
PEOPLE'S REPUBLIC OF CHINABusiness & Commerce--GeneralCivil Remedies & LiabilitiesFinancial--GeneralIntergovernmental RelationsRetirement Systems--County & DistrictRetirement Systems--GeneralRetirement Systems--MunicipalRetirement Systems--Police & FirefightersRetirement Systems--State EmployeesRetirement Systems--TeachersState Agencies, Boards & CommissionsMUNICIPAL RETIREMENT SYSTEM, TEXASINTERNATIONAL RELATIONSCOMPTROLLER OF PUBLIC ACCOUNTSEMPLOYEES RETIREMENT SYSTEM OF TEXAS (ERS)
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 2 benefits, 1 costs, 2 mixed.
Texas funds can keep pooled investments
Covered Texas funds do not have to sell restricted holdings held indirectly through managed investment funds or private equity funds. They must ask managers to remove those entities or create a similar fund without them. A state fund may switch within a prudent timeframe, no later than 450 days after the replacement fund is created. The replacement must have substantially the same management fees and the same investment risk and expected return. Investments held under 401(k) or 457 plans are excluded from the law's definition of indirect holdings.
Texas funds retain investment duty safeguards
A covered state fund need not follow a requirement it determines conflicts with its duty to invest for beneficiaries. This also covers other legal investment duties, including the constitutional duty of care. When following this law, the Comptroller and covered funds are exempt from conflicting statutory or common-law investment obligations. That protection includes required good-faith listing decisions, investment sales, and choices of managers, funds, or investments.
Texas funds must report restricted investments
Beginning September 1, 2025, the Texas Comptroller maintains a public list of restricted China-linked entities for covered state investment funds. The list is updated at least yearly, but no more than quarterly, and filed and posted within 30 days. An entity that fails to answer a verification request within 60 days is presumed restricted. Covered funds must report direct and indirect holdings within 30 days after receiving the list. They must also notify listed entities they hold, warning that their investments may be sold. Each covered fund must publish an annual report by January 5 covering sales, prohibited investments, and changes involving pooled funds.
Texas shields officials and limits lawsuits
Private parties cannot sue Texas, covered funds, their personnel, or contractors over actions or decisions tied to this law. The ban includes claims that officials failed their duties to beneficiaries; prohibited lawsuits require payment of the defendants' costs and attorney fees. Texas must defend covered funds and current or former personnel and contractors, and cover damages, court costs, and attorney fees adjudged against them. Former personnel and contractors qualify only for conduct during their covered role; unpaid service also qualifies. The attorney general can enforce the law.
Texas funds face investment sale deadlines
Covered Texas funds must sell at least 50% of affected direct investments within 180 days after the listed entity receives notice. They must sell all affected investments within 360 days, subject to the law's financial safeguards. A fund can extend the first deadline when it finds in good faith that a later date is more prudent. Financial-harm delays require documented estimates of likely losses or departures from the fund's investment benchmark, with updates every six months. Stopping sales requires clear and convincing evidence of such harm and is limited to what avoids that harm. Before stopping, the fund must report to the Comptroller, legislative presiding officers, and attorney general, with updates twice yearly as applicable. New purchases are banned except to the extent the law permits stopping sales; household purchases are not banned.
Sponsors & Cosponsors
Sponsors
Jeff Barry
House
Bryan Hughes
Republican • Senate
Cosponsors
Tan Parker
Republican • Senate
Roll Call Votes
House vote • 5/28/2025
Record vote
Yes: 90 • No: 50
House vote • 5/27/2025
Record vote
Yes: 87 • No: 54
Senate vote • 4/10/2025
Record vote
Yes: 0 • No: 0
Senate vote • 4/10/2025
Record vote
Yes: 0 • No: 0
Senate vote • Unknown
Committee vote: State Affairs
Yes: 9 • No: 0
House vote • Unknown
Committee vote: State Affairs
Yes: 12 • No: 3
Actions Timeline
Effective on 9/1/25
6/20/2025HouseSigned by the Governor
6/20/2025HouseSent to the Governor
6/1/2025HouseSigned in the House
6/1/2025HouseSigned in the Senate
5/30/2025SenateReported enrolled
5/28/2025SenateHouse passage reported
5/28/2025SenateStatement(s) of vote recorded in Journal
5/28/2025HouseRecord vote (RV#3886)
5/28/2025HousePassed
5/28/2025HouseRead 3rd time
5/28/2025HouseStatement(s) of vote recorded in Journal
5/27/2025HouseRecord vote (RV#3781)
5/27/2025HousePassed to 3rd reading
5/27/2025HouseRead 2nd time
5/27/2025HousePlaced on General State Calendar
5/25/2025HouseConsidered in Calendars
5/23/2025HouseCommittee report sent to Calendars
5/20/2025HouseCommittee report distributed
5/19/2025HouseComte report filed with Committee Coordinator
5/19/2025HouseReported favorably w/o amendment(s)
5/12/2025HouseConsidered in formal meeting
5/12/2025HouseLeft pending in committee
5/12/2025HouseConsidered in public hearing
5/12/2025HouseScheduled for public hearing on . . .
5/12/2025House
Bill Text
Engrossed
Enrolled
House Committee Report
Introduced
Senate Committee Report
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