The bill amends Arkansas Code 25-1-1007 to clarify the exemptions from divestment for certain investments that are subject to divestment under existing law. Specifically, it states that if an investment is locked into a maturity date and an early divestment would incur a financial penalty, resulting in a negative financial impact to the state or a public entity, then that investment is exempt from divestiture. This amendment aims to prevent financial harm to the state or public entities and to ensure that fiduciary duties are upheld.

The new legal language inserted into the current law includes references to "or a public entity" and "the public entity" in multiple instances, emphasizing the protection of both the state and public entities from financial penalties associated with early divestment. This change is intended to provide clearer guidelines regarding the circumstances under which divestment can be avoided, thereby safeguarding financial interests.