NORTH DAKOTA (KXNET) — KX News has been investigating the North Dakota Legacy Fund for two years. Wednesday, the Legacy Fund Advisory Board met to vote on a draft policy for an in-state investing program.

During the last legislative session, House Bill 1425 set aside 10% of the $8 billion Legacy Fund for an in-state investing program.

Although it was passed into law 18 months ago, the state is essentially still on step one of creating an implementation policy.

The board started discussing the need for an ‘in-state asset allocation study’ in February. The board then contracted with financial consultant RVK in April to conduct the study.

“And, I think today, as a result of those discussions, we’re probably going to have some policy that we can move forward. And my intention today is we’re going to hash this stuff over to we get it, and we’re going to move something out of here today,” said Legacy Fund Advisory Board Chairman Senator Jerry Klein.

Wednesday, financial consultant RVK presented the draft policy for two hours, but half of the board did not comment on the presentation.

Representative Glenn Bosh was one who did put forward questions and concerns during the meeting. He says the unanimous vote to approve the draft policy is an important step.

“I think the citizens of North Dakota are going to be glad to see that we took our time, we did our due diligence. We put a policy in place, that implements the bill just as it was written. And now we have a framework for our investment community to look to the Legacy Fund principle as an asset that they can tap into,” explained board member Representative Glenn Bosch.

The draft policy plan caps investments at $10 million per project, but the board decided that there should be room for two investments up to $25 million for each investment cycle.

RVK has been tasked to write new language for that, which will be added as an amendment. They will also be conducting a pacing study.

The board is set to reconvene sometime in January, but the actual implementation of our new in-state investing program could be a long way off.