House Bill 474 Alabama 2026 Session

Summary

Primary Sponsor

Mack N. ButlerRepresentative

Republican

Session

2026 Regular Session

Title

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

Summary

HB474 would bar Alabama public retirement funds from investing in Chinese entities tied to military or security concerns and require a government-maintained restricted-entity list with divestment rules.

What This Bill Does

It adds new provisions to prohibit the Teachers' Retirement System and the Employees' Retirement System from investing in restricted Chinese entities and to ban purchases, sales, or derivatives of such securities. It defines restricted entities to include various Chinese government lists and entities tied to military or security designations. It also requires the State Auditor to create and update a restricted-entity list every six months, with retirement systems prohibited from investing in listed entities and required to divest holdings as needed; the act becomes effective October 1, 2026, with initial list creation by January 1, 2027.

Who It Affects

• Participants and beneficiaries of Alabama's Teachers' Retirement System and Employees' Retirement System, whose funds would be restricted from investing in restricted Chinese entities and would require divestment if currently held.
• The governing bodies and oversight entities (the Board of Control for the two retirement systems and the State Auditor or their designee), who must implement the new restrictions, maintain the restricted-entity list, and enforce divestment requirements.

Key Provisions

• Prohibits investment activities by the Teachers' Retirement System and the Employees' Retirement System in restricted Chinese entities affiliated with military or security concerns, including bans on purchasing, selling, or exposure via derivatives of such securities; defines 'restricted entity' with reference to multiple federal lists and designations.
• Requires the State Auditor to create and update a restricted-entity list by January 1, 2027 and every six months thereafter; retirement systems must not engage with listed entities and must divest holdings when identified; the act takes effect October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 17, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Retirement