This bill proposes the creation of a new section in the North Dakota Century Code that prohibits the legacy fund from holding direct investments in Chinese companies. It defines key terms such as "China," "Chinese company," "direct holdings," and "indirect holdings," establishing a framework for identifying and managing these investments. The state investment board is tasked with reviewing all direct holdings to identify any investments in Chinese companies and developing a divestment plan that requires at least twenty percent of the total value of such investments to be divested annually, with complete divestment mandated by August 1, 2030.

Additionally, the bill amends section 21-10-07.1 to emphasize that the state investment board must give preference to qualified investment firms with a presence in North Dakota. It also allows the board the option to divest from Chinese companies as defined in the new section. This legislative action reflects a strategic move to align state investment practices with broader geopolitical considerations regarding investments in China.

Statutes affected:
Adopted by the House Industry, Business and Labor Committee: 21-10-07.1
FIRST ENGROSSMENT: 21-10-07.1