The bill would transfer and consolidate the investment prohibitions and divestment provisions of Government Code Chapters 806 and 807 into a new Chapter 2270 of the Government Code. The bill would also add provisions to prohibit certain governmental entities defined as investing entities under the bill from investing in companies with business ties to designated foreign terrorist organizations. State public retirement systems that qualify under the bill include the Employees Retirement System of Texas and the Teacher Retirement System of Texas. The provisions of the bill could potentially impact the investment decisions made by these investing entities, and could cause the entities to sell certain current investment holdings.

Additionally, the bill would transfer the duties of the Pension Review Board to prepare, maintain, and administer the Texas Prohibition on Investment in Iran Scrutinized Companies List to the Office of the Comptroller. The bill would repeal Chapter 807, Government Code.

The bill, if enacted, would not have a significant actuarial effect because it does not propose to change the funding or obligations of any public retirement system.