SB251 Alabama 2024 Session

Updated Feb 23, 2026

High Interest

Summary

Primary Sponsor: Andrew JonesSenator
Republican
Session: Regular Session 2024
Title: Public Investments; to prohibit Board of Control of ERSA and TRSA from investing with restricted entities affiliated with Communist Chinese military companies
Summary: SB251 would stop Alabama's retirement system boards from investing in Chinese entities tied to Communist Chinese military companies and requires a restricted-entity list with mandatory divestment.
What This Bill Does
It defines which Chinese entities are restricted, including those designated by certain executive orders and various U.S. government lists. It requires the State Auditor (or designee) to create and update a restricted-entity list by January 1, 2025 and every six months thereafter. The Boards of Control for the Teachers' Retirement System and Employees' Retirement System must not invest in any listed restricted entity and must divest any holdings when they appear on the list. It also prohibits the purchase or sale of any publicly traded securities to or from restricted entities or any securities that are derivatives or designed to provide investment exposure to those securities. The changes take effect starting October 1, 2024.

Who It Affects
Group 1: The Boards of Control for the Teachers' Retirement System of Alabama (TRS) and the Employees' Retirement System of Alabama (ERS) — they are prohibited from purchasing, selling, or holding investments in restricted Chinese entities and must divest any holdings once they are listed.
Group 2: The State Auditor (or designee) and the retirement systems' stakeholders (beneficiaries) — the State Auditor must create and update the restricted-entity list, and the retirement systems must comply by avoiding investments in listed entities and divesting holdings.

Key Provisions
Adds sections 16-25-20.1 and 36-27-25.1 to prohibit the Board of Control for TRS and the Board of Control for ERS from investing in restricted entities affiliated with Communist Chinese military companies.
Defines 'Restricted Entity' to include Chinese entities designated by EO 13959, EO 14105, and a broad set of U.S. government lists (OFAC, NS-CMIC List, DoD list, Entity List, Denied Persons List, Unverified List, Military End-User List, Uyghur Forced Labor Act lists, Sarbanes-Oxley/SEC lists, and other lists designating Chinese entities for restrictions).
Requires the State Auditor or designee to create a restricted-entity list by January 1, 2025 and update it every six months; retirement systems may not engage in investment activities with listed entities.
Upon publication of the restricted-entity list, the Board of Control must identify any holdings in those entities and divest expeditiously, acting as prudent investors.
Prohibits the purchase or sale of any publicly traded securities to or from restricted entities affiliated with Communist Chinese military companies, or securities that are derivatives or designed to provide investment exposure to those securities.
Effective date: October 1, 2024.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Retirement