This bill aims to restrict the investment of Arkansas's pension and retirement system funds in entities that have close ties to the People's Republic of China and its governing Communist Party. The legislation emphasizes the need to safeguard state funds from being allocated to organizations that may pose a risk due to their connections with the Chinese government.

The new legal language inserted into the current law clarifies the purpose of the act, explicitly stating the intention to limit investments in these entities. This move reflects a growing concern regarding the influence of foreign governments on state financial resources and aims to ensure that Arkansas's pension and retirement funds are invested in a manner that aligns with the state's values and interests.