25.0082.01000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Representatives Heilman, Marschall, Novak, M. Ruby
Senators Enget, Walen
A BILL for an Act to create and enact a new section to chapter 54-06 of the North Dakota
Century Code, relating to state contracts with certain companies that boycott energy, mining,
and production agriculture; and to provide for application.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. A new section to chapter 54-06 of the North Dakota Century Code is created
and enacted as follows:
Prohibition on contracts - Boycotting critical state sectors.
1.As used in this section:
a."Boycott" means without any ordinary business purpose, refusing to deal with,
terminating business activities with, or otherwise taking any action intended to
penalize, inflict economic harm on, or limit commercial relations with a company
because the company:
(1)Engages in the exploration, production, use, transportation, sale, or
manufacturing of fossil fuel-based energy, timber, minerals, hydroelectric
power, nuclear energy, or mining and does not commit or pledge to meet
environmental standards beyond applicable federal and state law;
(2)Engages in production agriculture;
(3)Engages in, facilitates, or supports the manufacture, import, distribution,
marketing, advertising, sale, or lawful use of firearms, ammunition, or
components, parts, and accessories of firearms or ammunition; or
(4)Does business with a company engaged in the activities described in this
subdivision.
b."Company" means a for-profit organization, association, corporation, partnership,
joint venture, limited partnership, limited liability partnership, or limited liability
Page No. 1 25.0082.01000
HOUSE BILL NO. 1309
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24 Sixty-ninth
Legislative Assembly
company, including a wholly owned subsidiary, majority-owned subsidiary, parent
company, or affiliate of those entities or business associations which exists to
make a profit and which has ten or more full - time employees and has a value of
one hundred thousand dollars or more. The term does not include a sole
proprietorship.
c."Governmental entity" means a state agency or political subdivision of this state.
d."Ordinary business purpose" means any motive directly related to:
(1)Promoting the financial success or stability of the company;
(2)Mitigating risk to the company;
(3)Complying with legal or regulatory requirements; or
(4)Limiting liability of the company.
2.This section applies to a contract between a governmental entity and a company
which is to be paid wholly or in part from public funds.
3.Except as provided in subsection 4, a governmental entity may not enter a contract
with a company for goods or services unless the contract contains a written verification
the company does not engage in a boycott as described in subsection 1 and is not
included on a list of financial institutions not eligible to receive investments of state
funds by the state investment board.
4.Subsection 3 does not apply to a contract if the governmental entity determines and
documents the goods or services are not otherwise available on commercially
reasonable terms or if subsection 3 is inconsistent with the governmental entity's
constitutional or statutory duties.
SECTION 2. APPLICATION. This Act applies to a contract entered after the effective date
of this Act. A contract entered before the effective date of this Act which violates this Act may not
be renewed unless the governmental entity obtains the written verification described in this Act.
Page No. 2 25.0082.01000
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25