TX SB667

Prohibits Texas state governmental entities—including the Employees Retirement System, Teacher Retirement System, Texas Municipal Retirement System, Texas County and District Retirement System, Texas Emergency Services Retirement System, and permanent school fund—from investing in Chinese-affiliated entities controlled by the People's Republic of China or listed on federal national security restriction lists

Requires the comptroller to maintain and publish a list of restricted entities, updating it at least annually but no more than quarterly, based on federal government lists and publicly available information

Mandates divestment of at least 50% of holdings in restricted entities within 180 days of notice and 100% within 360 days, with exemptions for indirect holdings in mutual funds and private equity funds

Allows state governmental entities to delay or cease divestment only if they demonstrate with clear and convincing evidence that divestment would result in financial losses or benchmark deviations inconsistent with fiduciary duties

Requires annual public reports to legislative leaders and the attorney general detailing divested securities and prohibited investments, with enforcement authority granted to the attorney general; takes effect September 1, 2025