AL HB504

Prohibits the Board of Control of the Teachers' Retirement System of Alabama and the Board of Control for the Employees' Retirement System of Alabama from purchasing or selling publicly traded securities affiliated with Chinese military companies or entities designated by specified U.S. government lists and executive orders.

Defines "restricted entities" to include Chinese entities designated by Presidential Executive Orders 13959 and 14105, entities on the U.S. Department of Treasury's Specially Designated Nationals list, and those on various federal government restriction lists including defense, export control, and Uyghur Forced Labor Prevention Act lists.

Requires the State Auditor to create and maintain a list of restricted entities by January 1, 2026, and update it every six months.

Mandates that retirement system boards identify any existing holdings in restricted entities and expeditiously divest from those holdings or other investment activities in those entities upon publication of the restricted entity list.

Becomes effective October 1, 2025.