TO:	Honorable Dustin Burrows, Speaker of the House, House of Representatives

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 Passed 2nd House

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.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


May 20, 2025