The proposed bill amends the North Dakota Century Code to establish a prohibition against direct investments in Chinese companies by the state's legacy fund. It defines key terms such as "Chinese company," "direct holdings," and "indirect holdings," and mandates that the state investment board review all direct holdings to identify any investments in Chinese companies. The board is required to develop a divestment plan that aims to divest at least 20% of the total value of such investments annually, with a complete divestment deadline set for 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 and allows for divestment from Chinese companies. The language clarifies the definitions of "Chinese company" and "company" to ensure consistency throughout the legislation. Overall, the bill seeks to align the state's investment strategy with a stance against investments in entities associated with the People's Republic of China.

Statutes affected:
Adopted by the House Industry, Business and Labor Committee: 21-10-07.1
FIRST ENGROSSMENT: 21-10-07.1
Adopted by the Senate Industry and Business Committee: 21-10-07.1
Prepared by the Legislative Council staff for Senate Appropriations Committee: 21-10-07.1