logo
#

Latest news with #HouseBill1330

ND Senate fails bill to divest Legacy Fund from China
ND Senate fails bill to divest Legacy Fund from China

Yahoo

time16-04-2025

  • Business
  • Yahoo

ND Senate fails bill to divest Legacy Fund from China

Apr. 16—BISMARCK — The North Dakota Senate failed a bill on a 20-26 vote Tuesday, April 15, that would have allowed the State Investment Board to divest Legacy Fund investments from Chinese companies. Sens. Cole Conley and Terry Wanzek, both R-Jamestown, voted in favor of House Bill 1330. HB 1330 would have added language to the prudent investor rule to define a Chinese company as a company domiciled in China. Sen. Sean Cleary, R-Bismarck, a supporter of the bill, said HB 1330 allows but does not require the State Investment Board to divest Legacy Fund holdings from Chinese companies. "I think there's circumstances where it's appropriate for the SIB (State Investment Board) to take a look at all the factors that are surrounding where our Legacy Fund is invested and make a decision based on those factors," he said. "I think a green vote on this bill positions them to do that. It gives them the flexibility to divest from direct investments in China." Sen. Cole Conley, R-Jamestown, a sponsor of the bill, said the Legacy Fund is being used to invest in China's sovereign wealth fund. "I'm not sure why we are doing that," he said. Sen. Jeffery Magrum, R-Hazelton, said the state could lose money on its Legacy Fund investments in Chinese companies if the U.S. goes to war with China. "I think divesting would have been great, but if the state investment board has the option to say, we need to pull the plug on our investments over there, it does give them the option," he said. In 2010, North Dakota voters approved a measure that created the Legacy Fund, which is a perpetual source of state revenue from the finite national resources of oil and natural gas, according to the Office of State Treasurer's website. Thirty percent of the taxes on petroleum produced and extracted in North Dakota are transferred to the Legacy Fund monthly, according to the North Dakota Retirement and Investment Office's website. The Legacy Fund has over $12 billion as of Jan. 31. It has earned over $600 million for the 2023-25 biennium. The State Investment Board has statutory responsibility for the administration of the investment programs of several funds including the Legacy Fund, according to the Retirement and Investment Office's website. Sen. Michael Dwyer, R-Bismarck, who opposed the bill, said about $22 million of the Legacy Fund is in direct holdings in Chinese companies. "The State Investment Board operates under a prudent investment rule and there might be one of those investments that is an excellent investment," he said. "They would need the authority to divest themselves from that if they were going to violate the prudent investor rule." Sen. Jerry Klein, R-Fessenden, who opposed the bill, said it would be the first time a specific nation was listed in the North Dakota Century Code if the bill were to pass. "We've got investments around the country, and the federal government allows us to invest there," he said. "They have a list of countries where we can't invest, so that provides some of that comfort that we were looking for."

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store