North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1163 Compare Versions

Only one version of the bill is available at this time.

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1	1	25.0573.01000
2	2	Sixty-ninth
3	3	Legislative Assembly
4	4	of North Dakota
5	5	Introduced by
6	6	Representatives Jonas, Longmuir, Murphy, Richter, Schreiber-Beck, Warrey
7	7	A BILL for an Act to create and enact a new section to chapter 15.1-36 of the North Dakota
8	8	Century Code, relating to a legacy fund school construction assistance loan fund; to amend and
9	9	reenact section 21-10-11, relating to the legacy and budget stabilization fund advisory board;
10	10	and to provide a continuing appropriation.
11	11	BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
12	12	SECTION 1. A new section to chapter 15.1-36 of the North Dakota Century Code is created
13	13	and enacted as follows:
14	14	Legacy fund school construction assistance loan fund - Bank of North Dakota -
15	15	School construction projects - Continuing appropriation .
16	16	1.The legacy fund school construction assistance loan fund is a special loan fund
17	17	administered by the Bank of North Dakota. Moneys in the fund are appropriated on a
18	18	continuing basis to the Bank of North Dakota for loan disbursements and
19	19	administrative costs. The fund must be audited annually pursuant to section 6 - 09 - 29,
20	20	and the cost of the audit must be paid from the fund.
21	21	2.The Bank of North Dakota may adopt policies and establish guidelines to administer
22	22	the legacy fund school construction assistance loan fund in accordance with this
23	23	section.
24	24	3.The Bank of North Dakota shall transfer all payments of principal and interest paid on
25	25	loans made from the legacy fund school construction assistance loan fund to the
26	26	legacy fund. The Bank may use a portion of the interest paid on the outstanding loans
27	27	as a servicing fee to pay for administrative costs, which may not exceed one - half of
28	28	one percent of the amount of the outstanding loans.
29	29	4.To be eligible for a loan under this section, the board of a school district shall:
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56	56	Legislative Assembly
57	57	a.Propose a new construction or remodeling project with a cost of at least
58	58	one million dollars and an expected utilization of at least thirty years;
59	59	b.Obtain the approval of the superintendent of public instruction for the project
60	60	under section 15.1 - 36 - 01;
61	61	c.(1)Publish in the official newspaper of the district the information regarding the
62	62	proposed estimated additional millage and the dollar increase per
63	63	one thousand dollars of taxable valuation in accordance with section
64	64	21 - 03 - 13 along with the notice of the election in accordance with section
65	65	21 - 03 - 12 or along with the initial resolution in accordance with subsection 7
66	66	of section 21 - 03 - 07; and
67	67	(2)Post the information on the school district's website before the date of the
68	68	election or during the protest period in accordance with chapter 21 - 03;
69	69	d.Receive authorization for a bond issuance in accordance with chapter 21 - 03; and
70	70	e.Submit a completed application to the superintendent of public instruction.
71	71	5.The superintendent of public instruction shall review loan applications based on a
72	72	prioritization system that includes a review of all applications filed during the
73	73	twelve - month period preceding April first and gives consideration to:
74	74	a.Student occupancy and academic needs in the district;
75	75	b.The age of existing structures to be replaced or remodeled;
76	76	c.Building design proposals based on safety and vulnerability assessments;
77	77	d.Community support;
78	78	e.Cost; and
79	79	f.Any other criteria established by the superintendent of public instruction, after
80	80	consultation with an interim committee appointed by the legislative management.
81	81	6.If the superintendent of public instruction approves the loan, the Bank of North Dakota
82	82	shall issue a loan from the legacy fund school construction assistance loan fund. For
83	83	loans made under this section:
84	84	a.School districts may apply for loan amounts up to a maximum of ten million
85	85	dollars for every one thousand students enrolled in the school district. School
86	86	districts with enrollments of one thousand students or less may apply for loan
87	87	amounts up to a maximum of ten million dollars. However, if a school district's
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121	121	unobligated general fund balance on the preceding June thirtieth exceeds the
122	122	limitation under section 15.1 - 27 - 35.3, the loan amount under this section may not
123	123	exceed eighty percent of the maximum loan amount;
124	124	b.The term of the loan is twenty years, unless the board of the school district
125	125	requests a shorter term in the written loan application;
126	126	c.The interest rate of the loan may not exceed one percent per year; and
127	127	d.A district with a school construction loan secured on the open bond market may
128	128	apply to refinance the loan when callable with the legacy fund school construction
129	129	assistance loan fund under this subsection.
130	130	SECTION 2. AMENDMENT. Section 21-10-11 of the North Dakota Century Code is
131	131	amended and reenacted as follows:
132	132	21-10-11. Legacy and budget stabilization fund advisory board.
133	133	1.The legacy and budget stabilization fund advisory board is created to develop
134	134	recommendations for the investment of funds in the legacy fund and the budget
135	135	stabilization fund to present to the state investment board.
136	136	2.The goal of investment for the legacy fund is principal preservation and growth while
137	137	maximizing total return for an appropriate level of risk and to provide a direct benefit to
138	138	the state by investing a portion of the principal in the state. Preference must be given
139	139	to qualified investment firms and financial institutions with a presence in the state for
140	140	investment of the legacy fund.
141	141	3.The board shall determine the asset allocation for the investment of the principal of the
142	142	legacy fund including:
143	143	a.A target allocation of seven hundred million one billion seven hundred million
144	144	dollars to fixed income investments within the state, including:
145	145	(1)Up to one hundred fifty million dollars for infrastructure loans to political
146	146	subdivisions under section 6-09-49.1. The net return to the legacy fund
147	147	under this paragraph must be fixed at a target rate of one and one-half
148	148	percent;
149	149	(2)Up to one billion dollars for loans from the legacy fund school construction
150	150	assistance loan fund under section 1 of this Act. The net return to the legacy
151	151	fund under this paragraph must be fixed at a target rate of one - half percent;
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185	185	(2)(3)A minimum of four hundred million dollars for the Bank of North Dakota's
186	186	certificate of deposit match program with an interest rate fixed at the
187	187	equivalent yield of United States treasury bonds having the same term, up
188	188	to a maximum term of twenty years; and
189	189	(3)(4)Other qualified fixed income investments within the state based on
190	190	guidelines developed by the legacy and budget stabilization fund advisory
191	191	board.
192	192	b.A target allocation of six hundred million dollars to equity investments in the state,
193	193	including:
194	194	(1)Investments in one or more equity funds, venture capital funds, or
195	195	alternative investment funds with a primary strategy of investing in emerging
196	196	or expanding companies in the state. Equity investments under this
197	197	paragraph must:
198	198	(a)Be managed by qualified investment firms, financial institutions, or
199	199	equity funds which have a strategy to invest in qualified companies
200	200	operating or seeking to operate in the state and which have a direct
201	201	connection to the state; and
202	202	(b)Have a benchmark investment return equal to the five-year average
203	203	net return for the legacy fund, excluding in-state investments; and
204	204	(2)Other eligible investments under this subdivision based on guidelines
205	205	developed by the legacy and budget stabilization fund advisory board.
206	206	4.The board consists of three members of the senate appointed by the senate majority
207	207	leader, three members of the house of representatives appointed by the house
208	208	majority leader, the president of the Bank of North Dakota or designee, the tax
209	209	commissioner or designee, the director of the office of management and budget or
210	210	designee, and the state treasurer or designee. The board shall select a member from
211	211	the senate or house of representatives to serve as chairman for no more than one
212	212	consecutive year and must meet at the call of the chairman.
213	213	5.The board shall report at least semiannually to the budget section.
214	214	6.Legislative members are entitled to receive compensation and expense
215	215	reimbursement as provided under section 54-03-20 and reimbursement for mileage as
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249	249	provided by law for state officers. The legislative council shall pay the compensation
250	250	and expense reimbursement for the legislative members.
251	251	7.The legislative council shall provide staff services to the legacy and budget
252	252	stabilization fund advisory board.
253	253	8.The staff and consultants of the state retirement and investment office shall advise the
254	254	board in developing asset allocation and investment policies.
255	255	9.The board may develop a process to select a member of the board who is not a
256	256	member of the state investment board to serve on the state investment board in a
257	257	nonvoting capacity.
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