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HB 1453

relative to student school board members.

2026 Regular Session Introduced by Juliet Harvey-Bolia and 3 co-sponsors

ND bans natural asset companies from land/asset deals, public investments, and usage of public assets, plus voids contracts and requires divestment if violated.

Inexpedient to Legislate: MA VV 03/05/2026 HJ 6 P. 12
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Bill Summary · HB 1453

Summary — HB 1453 (North Dakota)

Act to create and enact a new section to chapter 21‑06, NDCC — Prohibiting “natural asset companies” (with civil remedies)

Status & procedural timeline
- Introduced: November 22, 2024.
- Sponsors (House): Reps. Hauck, Fisher, Hagert, Morton, Novak, Dressler. (Senate sponsors: Gerhardt, Kessel, Luick, Thomas.)
- Committee/public actions: read and referred to relevant committees; public hearing and committee substitute considered on March 24, 2025.
- Floor action: Second reading — failed to pass (yeas 45, nays 48).

Purpose / intent
The bill seeks to bar natural asset companies from acquiring interests in state or political‑subdivision land or resources, to prohibit public investment in such companies, and to prevent state or local government engagement (contracts, bonds, use of assets) that grants them rights or control over public lands or ecosystem service streams. It is aimed at preventing privatization or monetization of public natural assets and ecosystem‑service revenue streams by private corporate entities.

Key definitions
- “Natural asset company” (as defined in the bill): a corporation whose primary purpose is to manage, maintain, restore, grow, and monetize natural assets and the company’s production of ecosystem services. The definition includes affiliates, companies under common control, or entities controlled by such companies.

Main provisions / changes
1. Transactions and contracts
- Prohibits the state or political subdivisions from selling, leasing, licensing, granting liens on, or otherwise encumbering state‑owned/controlled land or resource rights to a natural asset company.
- Declares contracts entered in violation void.

  1. Public investments and financing

    • Prohibits investment of public funds (including pension or other public funds) in securities, mutual funds, private placements, partnerships, or other interests in natural asset companies.
    • Prohibits the state or subdivisions from issuing, sponsoring, approving, guaranteeing, or engaging in bond offerings involving natural asset companies or projects where such companies hold interests.

  2. Use of public assets

    • Forbids using state or political‑subdivision assets, easements, liens, or encumbrances for the benefit of or transfer to natural asset companies.

  3. Corporate registration / business presence

    • Secretary of State barred from accepting filings, charters, conversions, or otherwise permitting natural asset companies to transact business in the state; filing fees and good‑standing privileges are not to be accepted.

  4. Remedies and enforcement

    • Authorized plaintiffs: governor, attorney general, state agency, a legislator, political subdivision, or an adversely affected private citizen.
    • Relief: district court action for affected land’s ownership to revert to the prior owner; court may award attorney’s fees and costs.
    • Requires investment managers/government officials who violate the prohibition to promptly arrange disposition of prohibited investments/funds.

Who would be affected
- Natural asset companies and their affiliates (prohibits their entry/operation with public interests in ND).
- State and local governments and agencies — restricts contracting, financing, and land/resource transactions involving natural asset companies.
- Public investment managers and public pension systems — bars certain investments and may require divestment.
- Private parties and NGOs seeking conservation finance models that rely on private monetization of ecosystem services (may be constrained).
- Citizens/political subdivisions — gain standing to sue for violations.

Potential impacts and considerations
- Limits public‑private conservation financing models that monetize ecosystem services (e.g., some “natural capital” or carbon/credits arrangements).
- Could require divestment of existing investments and complicate pension fund or municipal investment strategies if such holdings are identified.
- Enforcement is primarily civil (voiding contracts, reversion of land, fee awards); the bill text does not establish a separate criminal penalty.
- May prompt legal challenges (e.g., preemption, contract or property rights disputes) if previously executed agreements involve entities later classified as natural asset companies.

Note
- The bill text appears focused on broad prohibitions and civil remedies; fiscal impacts are not detailed in the bill text provided.

Compiled from official sources — confirm details with the bill’s official record.

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