This bill proposes the creation of a new section in chapter 54-06 of the North Dakota Century Code that prohibits state contracts with companies that engage in boycotting activities against critical sectors such as energy, mining, and production agriculture. The bill defines "boycott" as actions taken without ordinary business purpose to penalize or limit commercial relations with companies involved in fossil fuel energy, production agriculture, or firearms-related activities. It also outlines the definitions of "company," "governmental entity," and "ordinary business purpose," establishing criteria for what constitutes a boycott and the types of entities affected by this legislation.

Under the new provisions, governmental entities are barred from entering contracts with companies that do not provide written verification of non-engagement in boycotting activities, unless certain exceptions apply, such as the unavailability of goods or services on commercially reasonable terms. The bill specifies that it applies to contracts funded wholly or partially by public funds and outlines the process for existing contracts that may violate this new law upon renewal. Overall, the legislation aims to ensure that state funds are not used to support companies that participate in boycotts against key industries in North Dakota.