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

🔴 SB 667: Texas Divestment Bill Protects Fund Managers, Not Texans

What it says it does:
SB 667 claims to stop Texas pension funds and the Permanent School Fund from investing in Chinese-affiliated companies. It directs the Comptroller to make a list of restricted firms and orders funds to sell their holdings in them.

What it actually changes:
It centralizes control under the Comptroller and Attorney General while removing public oversight. Funds can keep investments if they say selling would hurt returns. Indirect holdings in mutual funds and private equity are exempt. It also blocks beneficiaries from suing and gives fund officials full indemnity paid by the state.

Who is pushing for it:
Support in the files comes from Texas Public Policy Foundation, Texas Eagle Forum, Heartland Impact, and State Armor Action.

Who benefits:
Pension fund managers, trustees, and contractors gain immunity from lawsuits. Investment firms benefit from indirect-holding carveouts and new “compliant” products. Advocacy groups get a political win without disrupting financial markets.

Who gets left out or exposed:
Retirees and taxpayers lose the ability to challenge bad investment decisions. Transparency and accountability shrink as the Comptroller and Attorney General hold exclusive power to decide what counts as compliant.

Why this matters long term:
It sets a precedent that divestment bills can be written to look tough while shielding insiders. Power is consolidated at the state level, and Texans lose their right to question or audit how their retirement money is managed.

What to watch next:
Future sessions may use this model to expand “restricted lists” or indemnity clauses to other industries, reducing local and public control over billions in state investments.

Bottom line:
SB 667 sounds like a stand against China, but it actually protects fund managers, reduces oversight, and leaves retirees without a voice in how their savings are handled.

#SB667 #TexasPolicy #Pensions #Accountability #PublicFunds #StayInformed