Get AI Briefings, Transcripts & Alerts on Local & National Government Meetings — Forever.
Committee reviews bill to bar state investments in companies tied to China, Russia, Iran and North Korea
Loading...
Summary
Senators heard testimony for House Bill 34 to prohibit state investment entities from investing in companies based in, owned by, or controlled by China, Iran, North Korea or Russia and to give the governor authority to add other countries of concern; witnesses framed the measure as protecting pensions and national security.
Senator Hughes explained that House Bill 34 would prohibit state investment entities from investing in companies based in, owned by, or controlled by China, Iran, North Korea or Russia and would allow the governor, in consultation with law‑enforcement and homeland security officials, to designate additional countries of concern.
Hughes said the bill would also prohibit state deposits in banks headquartered in countries of concern and permit state investment entities to delay divestment if immediate action would cause “significant financial harm,” provided that any delay be reported to legislative leadership and the attorney general.
Kelly Curry, who identified herself with State Armour, testified in favor of HB 34 and described national‑level efforts to reduce pension exposure to Chinese equities; Curry said the federal Thrift Savings Plan had moved assets out of China‑and Hong Kong‑based equities in recent years. Michael Lucci, founder of State Armour, discussed fiduciary concerns including opaque corporate structures used by many Chinese‑listed firms and the risk that federal sanctions or blacklisting could wipe out state holdings.
Testimony cited past market shocks as a cautionary example: Hughes told the committee the Texas Permanent School Fund lost $250 million when Russia invaded Ukraine. Witnesses argued HB 34 would protect retirement funds and reduce the risk that state pension assets inadvertently finance activities contrary to U.S. security interests.
Senator Parker pressed witnesses about the scale of state and local exposure to Chinese equities; witnesses gave a range of estimates in testimony, with one witness saying state and local exposure at peak may have been roughly $100–$200 billion and another suggesting a higher end near $300 billion. Witnesses also raised concerns about potential conflicts of interest at large asset managers advising public funds.
The committee heard public testimony, closed the record and left the bill pending while staff and the sponsor work on a committee substitute.
No committee vote was taken at the hearing.
