North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1332 Compare Versions

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1		-	Sixty-ninth Legislative Assembly of North Dakota
2		-	In Regular Session Commencing Tuesday, January 7, 2025
3		-	HOUSE BILL NO. 1332
4		-	(Representatives Hagert, Brandenburg, Grueneich, Headland, Ista, Lefor, O'Brien, K. Anderson)
5		-	(Senators Meyer, Myrdal, Patten, Thomas)
6		-	AN ACT to amend and reenact section 4.1-01.1-07 of the North Dakota Century Code, relating to a
7		-	value-added agriculture facility incentive program; to provide for a transfer; to provide an
8		-	expiration date; and to declare an emergency.
	1	+	25.0541.07000
	2	+	Sixty-ninth
	3	+	Legislative Assembly
	4	+	of North Dakota
	5	+	Introduced by
	6	+	Representatives Hagert, Brandenburg, Grueneich, Headland, Ista, Lefor, O'Brien, K.
	7	+	Anderson
	8	+	Senators Meyer, Myrdal, Patten, Thomas
	9	+	A BILL for an Act to amend and reenact section 4.1-01.1-07 of the North Dakota Century Code,
	10	+	relating to a value-added agriculture facility incentive program; to provide for a transfer; to
	11	+	provide an expiration date; and to declare an emergency.
9	12		BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
10		-	SECTION 1. AMENDMENT. Section 4.1-01.1-07 of the North Dakota Century Code is amended
11		-	and reenacted as follows:
12		-	4.1-01.1-07. Agriculture diversification and development fund - Continuing appropriation.
13		-	1.There is created in the state treasury the agriculture diversification and development fund. The
14		-	fund consists of all moneys transferred to the fund by the legislative assembly, interest upon
15		-	moneys in the fund, and payments of interest and principal on loans made from the fund.
16		-	Moneys in the fund are appropriated to the Bank of North Dakota on a continuing basis for
17		-	loan disbursements and administrative costs pursuant to this section, and moneys in the fund
18		-	are appropriated to the agriculture commissioner on a continuing basis for grants and value-
19		-	added agriculture facility incentive funding pursuant to this section and section 4.1-01-27. The
20		-	agriculture diversification and development committee shall designate the amount available
21		-	from the fund for loans, interest rate buydowns, and grants, and value-added agriculture
	13	+	SECTION 1. AMENDMENT. Section 4.1-01.1-07 of the North Dakota Century Code is
	14	+	amended and reenacted as follows:
	15	+	4.1-01.1-07. Agriculture diversification and development fund - Continuing
	16	+	appropriation.
	17	+	1.There is created in the state treasury the agriculture diversification and development
	18	+	fund. The fund consists of all moneys transferred to the fund by the legislative
	19	+	assembly, interest upon moneys in the fund, and payments of interest and principal on
	20	+	loans made from the fund. Moneys in the fund are appropriated to the Bank of North
	21	+	Dakota on a continuing basis for loan disbursements and administrative costs
	22	+	pursuant to this section, and moneys in the fund are appropriated to the agriculture
	23	+	commissioner on a continuing basis for grants and value-added agriculture facility
	24	+	incentive funding pursuant to this section and section 4.1-01-27. The agriculture
	25	+	diversification and development committee shall designate the amount available from
	26	+	the fund for loans, interest rate buydowns, and grants, and value-added agriculture
22	27		facility incentive funding.
23		-	2.Loans, interest rate buydowns, or grants under subsections 3 and 4 may be issued from the
24		-	fund to support new or expanding value-added agriculture businesses that demonstrate
25		-	financial feasibility, enhance profitability for farmers and ranchers, create jobs, and grow the
26		-	state's economy. Grants under section 4.1-01-27 may be issued from the fund for
27		-	infrastructure improvements necessary for the development or expansion of new or existing
28		-	value-added agriculture businesses. Value-added agriculture businesses include food
29		-	production or processing facilities; feed or pet food processing facilities; commodity
30		-	processing facilities; agriculture product manufacturers; and animal agriculture production
31		-	facilities, including swine, poultry, dairy, and feed lot production facilities.
32		-	3.The Bank of North Dakota shall develop policies for loans and interest rate buydowns from the
33		-	fund in consultation with the agriculture diversification and development committee. The Bank
34		-	shall review loan applications. To be eligible for a loan under this section, an entity shall agree
35		-	to provide the Bank with information as requested. The Bank may develop policies for loan
36		-	participation with local financial institutions. The Bank shall deposit in the fund all principal and
37		-	interest paid on the outstanding loans. The Bank may use a portion of the interest paid as a
38		-	servicing fee to pay for administrative costs, which may not exceed one-half of one percent of
39		-	the amount of the outstanding loans. The fund must be audited annually pursuant to section
40		-	6-09-29, and the cost of the audit must be paid from the fund.
41		-	4.The agricultural diversification and development committee shall develop policies for grants
42		-	from the fund to support new or expanding value-added agriculture businesses, including
43		-	eligibility criteria, maximum grant amounts, and reporting requirements. Based on
44		-	recommendations from the agricultural diversification and development committee, the
45		-	agriculture commissioner shall distribute the grant funding. H. B. NO. 1332 - PAGE 2
46		-	5.The agricultural diversification and development committee shall develop a value-added
47		-	agriculture production facility incentive program to provide grants. Grant award funding for the
48		-	value-added agriculture production facility incentive program under this subsection is limited to
49		-	thirty million dollars.
50		-	a.To be eligible for a grant award under the value-added agriculture production facility
51		-	incentive program, the production facility must:
	28	+	2.Loans, interest rate buydowns, or grants under subsections 3 and 4 may be issued
	29	+	from the fund to support new or expanding value-added agriculture businesses that
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	31	+	REENGROSSED HOUSE BILL NO. 1332
	32	+	SECOND ENGROSSMENT
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	56	+	demonstrate financial feasibility, enhance profitability for farmers and ranchers, create
	57	+	jobs, and grow the state's economy. Grants under section 4.1-01-27 may be issued
	58	+	from the fund for infrastructure improvements necessary for the development or
	59	+	expansion of new or existing value-added agriculture businesses. Value-added
	60	+	agriculture businesses include food production or processing facilities; feed or pet food
	61	+	processing facilities; commodity processing facilities; agriculture product
	62	+	manufacturers; and animal agriculture production facilities, including swine, poultry,
	63	+	dairy, and feed lot production facilities.
	64	+	3.The Bank of North Dakota shall develop policies for loans and interest rate buydowns
	65	+	from the fund in consultation with the agriculture diversification and development
	66	+	committee. The Bank shall review loan applications. To be eligible for a loan under this
	67	+	section, an entity shall agree to provide the Bank with information as requested. The
	68	+	Bank may develop policies for loan participation with local financial institutions. The
	69	+	Bank shall deposit in the fund all principal and interest paid on the outstanding loans.
	70	+	The Bank may use a portion of the interest paid as a servicing fee to pay for
	71	+	administrative costs, which may not exceed one-half of one percent of the amount of
	72	+	the outstanding loans. The fund must be audited annually pursuant to section 6-09-29,
	73	+	and the cost of the audit must be paid from the fund.
	74	+	4.The agricultural diversification and development committee shall develop policies for
	75	+	grants from the fund to support new or expanding value-added agriculture businesses,
	76	+	including eligibility criteria, maximum grant amounts, and reporting requirements.
	77	+	Based on recommendations from the agricultural diversification and development
	78	+	committee, the agriculture commissioner shall distribute the grant funding.
	79	+	5.The agricultural diversification and development committee shall develop a value-
	80	+	added agriculture production facility incentive program to provide grants. Grant award
	81	+	funding for the value-added agriculture production facility incentive program under this
	82	+	subsection is limited to thirty million dollars.
	83	+	a.To be eligible for a grant award under the value-added agriculture production
	84	+	facility incentive program, the production facility must:
52	85		(1)Be located within the state;
53		-	(2)Be a new construction project on an industrial-ready site with access to existing
54		-	municipal infrastructure;
55		-	(3)Have capital investment of at least three hundred fifty million dollars and leverage
56		-	regional agricultural producer capital investment to support the facility's operations;
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	118	+	(2)Be a new construction project on an industrial-ready site with access to
	119	+	existing municipal infrastructure;
	120	+	(3)Have capital investment of at least three hundred fifty million dollars and
	121	+	leverage regional agricultural producer capital investment to support the
	122	+	facility's operations;
57	123		(4)Have a competing offer from at least one other midwestern state;
58		-	(5)Produce a new agriculture product or variant of an existing agriculture product to
59		-	provide a domestic supply of the product and to diversify the market for agriculture
60		-	products; and
61		-	(6)Have an estimated economic contribution of at least twenty million dollars when fully
62		-	operational based on an economic analysis conducted by the Bank.
63		-	b.Grant funding under the program is a reimbursement for infrastructure, site acquisition, or
64		-	other capital expenditures necessary for the value-added agriculture facility construction,
65		-	including natural gas supply, electricity supply, roads, water lines, wastewater lines, storm
66		-	water conveyance, or rail lines.
67		-	c.Upon issuance of a certificate of occupancy for the value-added agriculture production
68		-	facility, the agriculture commissioner shall distribute a grant equal to fifty percent of the
69		-	total grant award from funding available in the agriculture diversification and development
70		-	fund.
71		-	d.Upon achieving fifty percent of the production capacity of the value-added agriculture
72		-	production facility, the agriculture commissioner shall distribute the remainder of the grant
73		-	award from funding available in the agriculture diversification and development fund.
74		-	e.The Bank of North Dakota may extend a line of credit of up to thirty million dollars to the
75		-	agriculture commissioner to support a grant from the fund under this subsection. The
76		-	interest rate associated with the line of credit must be the prevailing interest rate charged
77		-	to North Dakota governmental entities.
78		-	f.If the agriculture diversification and development committee approves a grant under this
79		-	subsection, the agriculture commissioner may access the line of credit under this
80		-	subsection through June 30, 2029, to provide funding for the grant. Any moneys
81		-	borrowed from the Bank pursuant to this subsection must be transferred to the fund. If
82		-	the agriculture commissioner accesses the line of credit, the commissioner shall request
83		-	from the legislative assembly a deficiency appropriation to repay the line of credit.
84		-	SECTION 2. EXPIRATION DATE. This Act is effective through June 30, 2029, and after that date is
85		-	ineffective.
86		-	SECTION 3. EMERGENCY. This Act is declared to be an emergency measure. H. B. NO. 1332 - PAGE 3
87		-	____________________________ ____________________________
88		-	Speaker of the House President of the Senate
89		-	____________________________ ____________________________
90		-	Chief Clerk of the House Secretary of the Senate
91		-	This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative
92		-	Assembly of North Dakota and is known on the records of that body as House Bill No. 1332 and that
93		-	two-thirds of the members-elect of the House of Representatives voted in favor of said law.
94		-	Vote: Yeas 76 Nays 17 Absent 1
95		-	____________________________ ____________________________
96		-	Speaker of the House Chief Clerk of the House
97		-	This certifies that two-thirds of the members-elect of the Senate voted in favor of said law.
98		-	Vote: Yeas 42 Nays 5 Absent 0
99		-	____________________________ ____________________________
100		-	President of the Senate Secretary of the Senate
101		-	Received by the Governor at ________M. on _____________________________________, 2025.
102		-	Approved at ________M. on __________________________________________________, 2025.
103		-	____________________________
104		-	Governor
105		-	Filed in this office this ___________day of _______________________________________, 2025,
106		-	at ________ o’clock ________M.
107		-	____________________________
108		-	Secretary of State
	124	+	(5)Produce a new agriculture product or variant of an existing agriculture
	125	+	product to provide a domestic supply of the product and to diversify the
	126	+	market for agriculture products; and
	127	+	(6)Have an estimated economic contribution of at least twenty million dollars
	128	+	when fully operational based on an economic analysis conducted by the
	129	+	Bank.
	130	+	b.Grant funding under the program is a reimbursement for infrastructure, site
	131	+	acquisition, or other capital expenditures necessary for the value-added
	132	+	agriculture facility construction, including natural gas supply, electricity supply,
	133	+	roads, water lines, wastewater lines, storm water conveyance, or rail lines.
	134	+	c.Upon issuance of a certificate of occupancy for the value-added agriculture
	135	+	production facility, the agriculture commissioner shall distribute a grant equal to
	136	+	fifty percent of the total grant award from funding available in the agriculture
	137	+	diversification and development fund.
	138	+	d.Upon achieving fifty percent of the production capacity of the value-added
	139	+	agriculture production facility, the agriculture commissioner shall distribute the
	140	+	remainder of the grant award from funding available in the agriculture
	141	+	diversification and development fund.
	142	+	e.The Bank of North Dakota may extend a line of credit of up to thirty million dollars
	143	+	to the agriculture commissioner to support a grant from the fund under this
	144	+	subsection. The interest rate associated with the line of credit must be the
	145	+	prevailing interest rate charged to North Dakota governmental entities.
	146	+	f.If the agriculture diversification and development committee approves a grant
	147	+	under this subsection, the agriculture commissioner may access the line of credit
	148	+	under this subsection through June 30, 2029, to provide funding for the grant.
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	182	+	Any moneys borrowed from the Bank pursuant to this subsection must be
	183	+	transferred to the fund. If the agriculture commissioner accesses the line of
	184	+	credit, the commissioner shall request from the legislative assembly a deficiency
	185	+	appropriation to repay the line of credit.
	186	+	SECTION 2. EXPIRATION DATE. This Act is effective through June 30, 2029, and after that
	187	+	date is ineffective.
	188	+	SECTION 3. EMERGENCY. This Act is declared to be an emergency measure.
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