AL SB251

Prohibits the Board of Control of the Teachers' Retirement System of Alabama and Employees' Retirement System of Alabama from purchasing or selling securities from entities affiliated with Communist Chinese military companies.

Defines "restricted entities" as Chinese entities designated by Presidential Executive Orders 13959 and 14105, entities on multiple U.S. government watchlists (including OFAC, Department of Defense, and Department of Homeland Security lists), and any agency or instrumentality of the People's Republic of China.

Requires the State Auditor to create and maintain a list of restricted entities by January 1, 2025, and update it every six months.

Mandates that retirement system boards identify existing holdings in restricted entities and expeditiously divest from them upon publication of the restricted entity list, acting as prudent investors.

Becomes effective October 1, 2024.