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

HB 504 prohibits Alabama's Teachers' and Employees' Retirement Systems from investing in securities tied to Chinese entities designated by U.S. federal authorities as linked to military or national security concerns. The bill requires retirement boards to divest from any holdings in these restricted entities - defined as companies on federal lists like the NS-CMIC List or those designated under Executive Orders 13959 and 14105 - by January 1, 2026. It mandates the State Auditor to maintain and update a list of restricted entities every six months. The law directly affects Alabama's public retirement funds, which collectively manage billions in assets, by aligning their investment practices with federal restrictions on Chinese military-linked securities.