23.0897.01000
Sixty-eighth
Legislative Assembly HOUSE BILL NO. 1292
of North Dakota
Introduced by
Representatives Porter, Bosch, Toman
Senators Cleary, Larsen
1 A BILL for an Act to amend and reenact section 6-09-49 of the North Dakota Century Code,
2 relating to capital construction projects.
3 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
4 SECTION 1. AMENDMENT. Section 6-09-49 of the North Dakota Century Code is amended
5 and reenacted as follows:
6 6-09-49. Infrastructure revolving loan fund - Continuing appropriation.
7 1. The infrastructure revolving loan fund is a special fund in the state treasury from which
8 the Bank of North Dakota shall provide loans to political subdivisions, the Garrison
9 Diversion Conservancy District, and the Lake Agassiz water authority for essential
10 infrastructure projects. The Bank shall administer the infrastructure revolving loan
11 fund. The maximum term of a loan made under this section is the lesser of thirty years
12 or the useful life of the project. A loan made from the fund under this section must
13 have an interest rate that does not exceed two percent per year.
14 2. For purposes of this section, "essential infrastructure projects" means capital
15 construction projects to construct new infrastructure or replace existing infrastructure,
16 which provide the fixed installations necessary for the function of a political
17 subdivision. Capital construction projects exclude routine maintenance and repair
18 projects, but include the following:
19 a. The Red River valley water supply project;
20 b. Water treatment plants;
21 c. Wastewater treatment plants;
22 d. Sewerlines and waterlines, including lift stations and pumping systems;
23 e. Storm water infrastructure, including curb and gutter construction;
24 f. Water storage systems, including dams, water tanks, and water towers;
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1 g. Road and bridge infrastructure, including paved and unpaved roads and bridges;
2 h. Airport infrastructure;
3 i. Electricity transmission infrastructure;
4 j. Natural gas transmission infrastructure;
5 k. Communications infrastructure;
6 l. Emergency services facilities, excluding hospitals; and
7 m. Critical political subdivision buildings and infrastructure; and
8 n. Infrastructure required to service recreation and community facilities, not
9 including the construction of a building or recreational amenity.
10 3. In processing political subdivision loan applications under this section, the Bank shall
11 calculate the maximum outstanding loan amount per qualified applicant. A qualified
12 applicant under this section may have a maximum combined total of forty million
13 dollars in outstanding loans under this section and section 6-09-49.1. The Bank shall
14 consider the applicant's ability to repay the loan when processing the application and
15 shall issue loans only to applicants that provide reasonable assurance of sufficient
16 future income to repay the loan.
17 4. The Bank shall deposit in the infrastructure revolving loan fund all payments of interest
18 and principal paid under loans made from the infrastructure revolving loan fund. The
19 Bank may use a portion of the interest paid on the outstanding loans as a servicing fee
20 to pay for administrative costs which may not exceed one-half of one percent of the
21 amount of the interest payment. All moneys transferred to the fund, interest upon
22 moneys in the fund, and payments to the fund of principal and interest are
23 appropriated to the Bank on a continuing basis for administrative costs and for loan
24 disbursement according to this section.
25 5. The Bank may adopt policies and establish guidelines to administer this loan program
26 in accordance with the provisions of this section and to supplement and leverage the
27 funds in the infrastructure revolving loan fund. Additionally, the Bank may adopt
28 policies allowing participation by local financial institutions.
29 6. If a political subdivision applies for a loan under this section for a county road or bridge
30 project, the department of transportation shall review and approve the project before
31 the Bank may issue a loan. If a political subdivision applies for a loan under this
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1 section for a water-related project, the state water commission shall review and
2 approve the project before the Bank may issue a loan. The department of
3 transportation and state water commission may develop policies for reviewing and
4 approving projects under this section.
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Statutes affected:
INTRODUCED: 6-09-49
Enrollment: 6-09-49