25.1332.05000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Representatives O'Brien, Mitskog, Nelson, Stemen
Senators Dever, Klein
A BILL for an Act to create and enact a new section to chapter 6-09 of the North Dakota Century
Code, relating to a long-term care facility infrastructure loan fund; to amend and reenact
subsection 3 of section 6-09-47 of the North Dakota Century Code, relating to the medical
facility infrastructure loan fund; to provide for a transfer; and to provide for a continuing
appropriation.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. A new section to chapter 6-09 of the North Dakota Century Code is created
and enacted as follows:
Long-term care facility infrastructure loan fund - Continuing appropriation.
1.The Bank of North Dakota shall administer a loan program to provide loans to nursing
and basic care facilities for renovation projects or the construction of new facilities. A
construction project may include a land purchase and the purchase, lease, erection, or
improvement of any structure or facility to the extent the governing body of the nursing
or basic care facility has the authority to authorize such activity.
2.The long-term care facility infrastructure loan fund is a special fund maintained in the
state treasury from which the Bank shall provide loans under this section. The fund
consists of revenues transferred under legislative authorization, interest upon moneys
in the fund, and collections of interest and principal on loans made from the fund. All
moneys in the fund are appropriated on a continuing basis to the Bank for the purpose
of providing loans under this section.
3.The governing body of a nursing or basic care facility may submit an application to the
Bank for a loan. The application must:
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22 Sixty-ninth
Legislative Assembly
a.Detail the proposed construction project;
b.Demonstrate the need and long-term viability of the project; and
c.Include financial information the Bank determines appropriate to verify eligibility.
4.A loan approved under this section:
a.May not exceed fifty percent of project costs;
b.May not exceed ten million dollars for a project;
c.Must have an interest rate that does not exceed two percent; and
d.Must have a repayment schedule of no longer than thirty years.
5.A recipient of a loan under this section shall complete the financed construction project
within twenty-four months of the approval of the loan. Failure to comply with this
subsection may result in forfeiture of the entire loan received under this section.
6.The Bank shall deposit in the fund all principal and interest paid on the loans made
from the fund. The Bank may deduct from interest payments a service fee for costs of
administering the loan program. The fund must be audited annually pursuant to
section 6 - 09 - 29, and the cost of the audit and any other actual costs incurred by the
Bank on behalf of the fund must be paid from the fund.
SECTION 2. AMENDMENT. Subsection 3 of section 6-09-47 of the North Dakota Century
Code is amended and reenacted as follows:
3.A loan provided under this section:
a.May not exceed the lesser of fifteenten million dollars or seventy-five percent of
the actual cost of the project;
b.Must have an interest rate equal to onetwo percent; and
c.Must provide a repayment schedule of no longer than twenty-fivethirty years.
SECTION 3. TRANSFER - STRATEGIC INVESTMENT AND IMPROVEMENTS FUND -
LONG-TERM CARE FACILITY INFRASTRUCTURE LOAN FUND. The office of management
and budget shall transfer the sum of $35,000,000 from the strategic investment and
improvements fund to the long-term care facility infrastructure loan fund during the biennium
beginning July 1, 2025, and ending June 30, 2027.
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