SB 667 Texas Senate · 89th Legislature (2025)

Relating to prohibiting certain state governmental entities from investing in certain Chinese-affiliated entities.

SB 667 prohibits Texas state retirement systems (including the Teacher Retirement System, Employees Retirement System, and municipal/county systems) from holding direct or indirect investments in certain Chinese-affiliated entities. It defines "restricted entities" as companies incorporated in China, controlled by Chinese government bodies, or listed by federal agencies (like the Entity List or Chinese Military Companies list) due to national security concerns. The bill requires retirement systems to divest from these entities and exempts them from conflicting legal obligations when complying. This policy change directly affects how Texas public employee retirement funds manage their investment portfolios.

Bill status signed all 5 stages cleared

Introduction

Dec 2024

Committee Review

May 2025

Senate Passage

May 2025

House Passage

Jun 2025

Signed into Law

Jun 2025

Introduced Dec 19, 2024 Signed Jun 20, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed → Enrolled · 4 edits · Jun 20, 2025

MODERATE

The bill text was converted from an 'Engrossed' draft version to the final 'Enrolled' version ready for signing. The substantive policy content prohibiting state entities from investing in certain Chinese-affiliated entities remains unchanged, though the formatting was standardized and some sections were expanded for clarity.

TECHNICAL

Removed draft annotations and page numbers that were present in the earlier version, replacing them with clean, final legislative formatting.

Added a new introductory sentence about digital content accessibility standards that does not relate to the bill's substantive provisions.

DEFINITION

Expanded the indemnification section to explicitly include former contractors and former officers who were serving at the time of the alleged act.

ENFORCEMENT

Added a new section explicitly stating that no private cause of action exists against state officials for actions taken under this chapter.

Introduced → Engrossed · 19 edits · Apr 10, 2025

MAJOR

The bill was expanded from applying only to state retirement systems to include all state governmental entities, such as the permanent school fund. The language was also updated to clarify that 'state retirement system' now refers to 'state governmental entity' throughout the text.

Scope change

The bill's scope was broadened from exclusively state retirement systems to include all state governmental entities, including the permanent school fund.

SCOPE

The definition of 'State retirement system' in Section 809A.001(7) was changed to 'State governmental entity' and now includes the permanent school fund as a covered entity.

DEFINITION

The term 'State retirement system' was replaced with 'State governmental entity' throughout the bill to reflect the expanded scope of entities subject to the investment restrictions.

The definition of 'Direct holdings' was updated to refer to 'state governmental entity' instead of 'state retirement system'.

The definition of 'Indirect holdings' was updated to refer to 'state governmental entity' instead of 'state retirement system'.

The definition of 'Listed restricted entity' was updated to refer to 'comptroller' instead of 'comptroller' under 'Section 809A.051' (no substantive change, just terminology alignment).

The definition of 'Restricted entity' was updated to refer to 'state governmental entity' instead of 'state retirement system'.

REQUIREMENT

The indemnification section was updated to protect 'state governmental entity' employees and contractors instead of just 'state retirement system' employees.

The 'No Private Cause of Action' section was updated to protect 'state governmental entity' instead of just 'state retirement system'.

The 'Inapplicability of Requirements' section was updated to apply to 'state governmental entity' instead of 'state retirement system'.

The 'Reliance on Federal Determination' section was updated to apply to 'comptroller' and 'state governmental entity' instead of 'state retirement system'.

The 'Listed Restricted Entities' section was updated to apply to 'state governmental entity' instead of 'state retirement system'.

The 'Identification of Investment' section was updated to apply to 'state governmental entity' instead of 'state retirement system'.

The 'Notice of Divestment' section was updated to apply to 'state governmental entity' instead of 'state retirement system'.

The 'Divestment of Assets' section was updated to apply to 'state governmental entity' instead of 'state retirement system'.

The 'Investments Exempted from Divestment' section was updated to apply to 'state governmental entity' instead of 'state retirement system'.

The 'Authorized Investment in Listed Restricted Entities' section was updated to apply to 'state governmental entity' instead of 'state retirement system'.

The 'Prohibited Investments' section was updated to apply to 'state governmental entity' instead of 'state retirement system'.

The 'Report' section was updated to apply to 'state governmental entity' instead of 'state retirement system'.

The 'Enforcement' section was updated to apply to 'state governmental entity' instead of 'state retirement system'.

Floor votes · House May 28, 2025

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 20, 2025

Signed into law

Signed by the Governor

executive

Jun 1, 2025

Lower · Passed

Signed in the House

lower

May 30, 2025

Upper · Passed

Signed in the Senate

upper

May 28, 2025

Upper · Passed

House passage reported

upper

May 28, 2025

Lower · Passed

Passed

lower

May 20, 2025

Lower · Passed

Committee report sent to Calendars

lower

May 19, 2025

Lower · Passed

Committee report distributed

lower

May 12, 2025

Lower · Passed

Reported favorably w/o amendment(s)

lower

May 12, 2025

Lower · Passed

Left pending in committee

lower

Apr 22, 2025

Committee

Referred to State Affairs

lower

Apr 22, 2025

Introduced

Read first time

lower

Apr 14, 2025

Introduced

Received from the Senate

lower

Apr 10, 2025

Upper · Passed

Passed

upper

Mar 24, 2025

Upper · Passed

Committee report printed and distributed

upper

Mar 24, 2025

Upper · Passed

Reported favorably as substituted

upper

Mar 20, 2025

Upper · Passed

Vote taken in committee

upper

Mar 17, 2025

Upper · Passed

Left pending in committee

upper

Mar 17, 2025

Upper · Passed

Testimony taken in committee

upper

Feb 3, 2025

Committee

Referred to State Affairs

upper

Feb 3, 2025

Introduced

Read first time

upper

2 primary · 1 co-sponsor