The bill amends the "Divestment from Terror Act" by updating definitions and provisions related to business operations with state sponsors of terror. Key changes include the clarification of terms such as "active business operations," "scrutinized company," and "state sponsor of terror." Notably, the bill specifies that humanitarian aid activities are excluded from the definition of active business operations, and it introduces new criteria for identifying state sponsors of terror, explicitly naming the Russian Federation, the Islamic Republic of Iran, and the Democratic People's Republic of Korea as such.

Additionally, the bill revises the timeline for when the provisions of the act apply to these newly identified state sponsors of terror, establishing that the provisions take effect immediately upon the enactment of the amendments. The state treasurer is granted the authority to extend the application dates under certain conditions, and the Department of Treasury is required to provide recommendations for statutory changes to improve the act's effectiveness. The amendments aim to enhance the state's ability to divest from companies that engage in business operations with entities that support terrorism.