HB504 Alabama 2025 Session

Summary

Primary Sponsor

Scott StadthagenRepresentative

Republican

Session

2025 Regular Session

Title

Public Investments; to prohibit Board of Control of Employees' Retirement Systems of Alabama and Teachers' Retirement Systems of Alabama from investing with restricted entities affiliated with Communist Chinese military companies

Summary

HB504 would bar Alabama's public retirement systems from investing in Chinese entities tied to Communist Chinese military companies and require divestment and ongoing restricted-entity list maintenance.

What This Bill Does

It prohibits the purchase or sale of any publicly traded securities, derivative instruments, or investments that provide exposure to restricted Chinese entities affiliated with military or national security concerns. It requires the State Auditor to create and update a restricted-entity list every six months, with the retirement boards avoiding investments in any listed entities and divesting holdings when such entities are identified. The changes apply to both the Teachers' Retirement System of Alabama and the Employees' Retirement System of Alabama, and take effect starting October 1, 2025.

Who It Affects

• Teachers' Retirement System of Alabama (TRS) participants/beneficiaries, who will be protected from investments in restricted Chinese entities and whose holdings must be divested if they are restricted.
• Employees' Retirement System of Alabama (ERS) participants/beneficiaries, who will be protected from investments in restricted Chinese entities and whose holdings must be divested if they are restricted.

Key Provisions

• Adds TRS (§16-25-20.1) and ERS (§36-27-25.1) investment restrictions prohibiting purchase or sale of restricted entity securities and related derivatives or exposure.
• Defines 'restricted entity' using multiple lists and designations (EO 13959, EO 14105, SDN, NS-CMIC, DoD list, Entity List, Denied Persons list, Unverified List, Military End User List, FCC list, Uyghur Forced Labor Act lists, SOX-covered issuers, and any other U.S. list restricting Chinese entities).
• Requires the State Auditor or designee to create a restricted-entity list by January 1, 2026 and update it every six months; retirement systems may not invest in listed entities.
• Requires the Board of Control for TRS and ERS to identify any holdings in restricted entities upon list publication and to divest expeditiously.
• Term specifies the act becomes effective October 1, 2025.

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