Modifies provisions relating to investments of public employee retirement and pension systems, requiring divestment of fund holdings in certain Chinese entities or products

HB 977 requires state and local public retirement systems to sell investments in specific Chinese entities or products by August 2026. It directly affects pension funds managing retirement savings for government employees, mandating divestment from "restricted entities" like those on U.S. sanctions lists (e.g., Communist Chinese military companies) or controlled by the Chinese government. Key provisions include annual reviews to identify restricted investments, a deadline for divestment (with limited exceptions for financial impact), and rules for handling shared investment funds. The bill aims to align retirement fund investments with U.S. national security interests by removing holdings tied to entities posing risks under federal law.