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 or negatively impact 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," which broadens the scope of the exemption to include not just the state but also public entities. This change emphasizes the importance of protecting both state and public financial interests in the context of divestment decisions.