The proposed bill amends North Dakota's Century Code 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 emphasizes that the legacy fund's investments should not include direct holdings in any company formed and domiciled in China.

Additionally, the bill amends section 21-10-07.1 to clarify the prudent investor rule, stating that the state investment board shall give preference to qualified investment firms with a presence in North Dakota and may divest from Chinese companies. The language surrounding the definitions of "company" and "Chinese company" is also refined to ensure clarity in the context of investments. Overall, the bill aims to align the state's investment strategy with a stance against investments in Chinese entities.

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