Latest news with #JerryKlein
Yahoo
15-04-2025
- Business
- Yahoo
North Dakota Senate defeats bill that aimed to divest Legacy Fund from China
Sen. Jerry Klein, R-Fessenden, testifies against a bill that sought to authorize the State Investment Board to divest the Legacy Fund from Chinese investments. (Jeff Beach / North Dakota Monitor) The North Dakota Senate on Tuesday sank a bill that would have authorized the State Investment Board to divest from Legacy Fund holdings in companies headquartered in China. Under the 'prudent investor rule,' which governs trustees of investment portfolios, the board must prefer 'qualified investment firms and financial institutions with a presence in the state.' It cannot choose not to favor a company purely based on its home country. The bill, which failed by a 20-26 vote, would have updated this language to let the board voluntarily cut ties with Chinese businesses. Bill requiring Legacy Fund disclosure website sees support in North Dakota Legislature According to the North Dakota Retirement and Investment Office, that applies to only about $246 million of the $12 billion in the fund. That equates to about 2.1% Primary sponsor Rep. Bernie Satrom, R-Jamestown, has said North Dakota should do away with holdings in Chinese companies due to human rights abuses committed by the Chinese Communist Party, as well as concerns that China's government is a national security threat to the United States. Sen. Sean Cleary, R-Bismarck, said he supported the bill because it addresses these problems while still giving the State Investment Board flexibility over the fund's investments. 'Our own intelligence agency has identified that there are significant threats that come from the Chinese Communist Party,' he said on the Senate floor. North Dakota Legacy Fund takes big hit amid stock market volatility Critics of the bill said it would hamper growth of the Legacy Fund by discouraging investment in an entire country's market. Sen. Jerry Klein, R-Fessenden, said it's unusual for North Dakota to single out countries in state law. The closest comparison may be a 2023 law the North Dakota Legislature adopted prohibiting investment practices that would result in a boycott of Israel. Klein said many Chinese companies are good-faith business partners to the United States and shouldn't be penalized just because of where they're located. The Retirement and Investment Board took a neutral stance on the bill. Earlier this month, the Senate passed another Legacy Fund-related policy, House Bill 1319, which requires the Retirement and Investment Office to create a website detailing Legacy Fund holdings. Gov. Kelly Armstrong signed the bill into law last week. SUPPORT: YOU MAKE OUR WORK POSSIBLE SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
17-03-2025
- Business
- Yahoo
Bill to mandate state investment in gold, silver fails in North Dakota Senate
Sen. Jerry Klein, R-Fessenden, assistant majority leader, speaks on the Senate floor during the organizational session on Dec. 4, 2024. (Michael Achterling/North Dakota Monitor) The Senate voted down a bill that would have required the state treasurer to invest 1% of the state treasury in gold and silver bullion. House Bill 1183, sponsored by Rep. Daniel Johnston, R-Kathryn, failed on a 34-13 vote Monday. Sen. Jerry Klein, R-Fessenden, said while the bill had good intentions, the state treasurer is 'just handling the checkbook.' He said the state's general fund, and other funds controlled by the state treasurer, are the wrong funds to be used for investing. 'If you buy gold and silver, you buy it as an investment that you will hold in hopes of increasing in value,' Klein said. 'You don't convert that monthly so you can make your house payment, or your car payment, or everyday expenses. You need some liquidity.' Senate committee hears bill mandating gold, silver investments by North Dakota treasurer Klein added the State Investment Board and Department of Trust Lands can already make investments into precious metals, if they choose. The Bank of North Dakota would also need about $2 million to renovate its vault to accommodate the metals which could weigh in the tons, Klein said. He added the housing of precious metals would create new ongoing costs for managing the state's supply. Sen. Dale Patten, R-Watford City, said the gold and silver investments are not part of the state's comprehensive investment plan and voted against the measure. During the public hearing for the bill, Johnston told lawmakers that other nations are moving away from the U.S. dollar as a foundational currency and wanted the state to control something that would be independent of inflationary pressures. Johnston also pointed out that the U.S. dollar loses 2% to 3% of its value every year while gold has appreciated greatly in recent decades. SUPPORT: YOU MAKE OUR WORK POSSIBLE SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
