The proposed bill amends North Dakota law to prohibit the legacy fund from holding direct investments in Chinese companies. It introduces a new section that defines key terms such as "Chinese company," "direct holdings," and "indirect holdings." The state investment board is tasked with reviewing all direct holdings to identify any investments in Chinese companies and must develop a divestment plan to eliminate these holdings, aiming for complete divestment by August 1, 2030. The bill also specifies that the legacy fund's investments may not consist of direct holdings in Chinese companies.

Additionally, the bill amends section 21-10-07.1 of the North Dakota Century Code, emphasizing that the state investment board should prioritize qualified investment firms with a presence in the state. It allows for the possibility of divesting from Chinese companies, aligning with the definitions provided earlier in the bill. This amendment reinforces the focus on local investment while addressing concerns regarding investments in entities associated with 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