§ 21-10-11 — Legacy and budget stabilization fund advisory board

1. The legacy and budget stabilization fund advisory board is created to develop
recommendations for the investment of funds in the legacy fund and the budget
stabilization fund to present to the state investment board.
2. The goal of investment for the legacy fund is principal preservation and growth while
maximizing total return for an appropriate level of risk and to provide a direct benefit to
the state by investing a portion of the principal in the state. Preference must be given
to qualified investment firms and financial institutions with a presence in the state for
investment of the legacy fund.
3. The board shall determine the asset allocation for the investment of the principal of the
legacy fund including:
a. A target allocation of seven hundred million dollars to fixed income investments
within the state, including:
(1) Up to one hundred fifty million dollars for infrastructure loans to political
subdivisions under section 6-09-49.1. The net return to the legacy fund
under this paragraph must be fixed at a target rate of one and one-half
percent;
(2) A minimum of four hundred million dollars for the Bank of North Dakota's
certificate of deposit match program with an interest rate fixed at the
equivalent yield of United States treasury bonds having the same term, up
to a maximum term of twenty years; and

(3) Other qualified fixed income investments within the state based on
guidelines developed by the legacy and budget stabilization fund advisory
board.
b. A target allocation of six hundred million dollars to equity investments in the state,
including:
(1) Investments in one or more equity funds, venture capital funds, or
alternative investment funds with a primary strategy of investing in emerging
or expanding companies in the state. Equity investments under this
paragraph must:
(a) Be managed by qualified investment firms, financial institutions, or
equity funds which have a strategy to invest in qualified companies
operating or seeking to operate in the state and which have a direct
connection to the state; and
(b) Have a benchmark investment return equal to the five-year average
net return for the legacy fund, excluding in-state investments; and
(2) Other eligible investments under this subdivision based on guidelines
developed by the legacy and budget stabilization fund advisory board.
4. The board consists of three members of the senate appointed by the senate majority
leader, three members of the house of representatives appointed by the house
majority leader, the president of the Bank of North Dakota or designee, the tax
commissioner or designee, the director of the office of management and budget or
designee, and the state treasurer or designee. The board shall select a member from
the senate or house of representatives to serve as chairman for no more than one
consecutive year and must meet at the call of the chairman.
5. The board shall report at least semiannually to the budget section.
6. Legislative members are entitled to receive compensation and expense
reimbursement as provided under section 54-03-20 and reimbursement for mileage as
provided by law for state officers. The legislative council shall pay the compensation
and expense reimbursement for the legislative members.
7. The legislative council shall provide staff services to the legacy and budget
stabilization fund advisory board.
8. The staff and consultants of the state retirement and investment office shall advise the
board in developing asset allocation and investment policies.
9. The board may develop a process to select a member of the board who is not a
member of the state investment board to serve on the state investment board in a
nonvoting capacity.