25.0231.04000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Senators Mathern, Wanzek
Representative Brandenburg
A BILL for an Act to create and enact a new section to chapter 54-60 of the North Dakota
Century Code, relating to the creation of a rural community endowment fund and a rural
community endowment fund committee; to provide an appropriation for the rural community
endowment fund; to provide for a transfer; and to provide for a report.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. A new section to chapter 54-60 of the North Dakota Century Code is created
and enacted as follows:
Rural community endowment fund - Rural community endowment fund committee -
Purpose - Limitations - Report.
1.There is created in the state treasury a special fund known as the rural community
endowment fund, which is a permanent endowment fund under the administration of
the department.
2.The rural community endowment fund consists of any moneys transferred to the fund
by the legislative assembly and any gifts, donations, or bequests received by the
department for purposes identified in this section. The principal of the fund may not be
expended. The department shall determine if any gifts, donations, or bequests
provided for deposit in the fund are considered permanent in nature and to be
dedicated as principal of the fund in perpetuity or for a term of years, in which case
only the income earned as a result of the investment of those funds may be expended.
3.Investment of the rural community endowment fund must be under the supervision of
the state investment board in accordance with chapter 21 - 10. Interest earned on
moneys in the fund must be credited to the fund, which may be spent by the
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ENGROSSED SENATE BILL NO. 2097
FIRST ENGROSSMENT
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department, pursuant to legislative appropriations, for providing grants in accordance
with this section to rural communities in the state to support, create, or improve local
housing, workforce, business recruitment and commerce, infrastructure, or other
community needs. Funding may not be provided for operating funds of a local entity.
4.The commissioner shall appoint a rural community endowment fund committee
consisting of the commissioner, nine individuals residing in rural communities, and a
representative of a nonprofit organization dedicated to supporting housing initiatives,
social and cultural events, and small businesses in rural communities of the state. Of
the nine individuals residing in rural communities, five individuals must be appointed
for a term of two years and four individuals must be appointed for an initial term of
one year. Thereafter, the four individuals must be appointed for two - year terms. Terms
shall commence on September first of the year of appointment. The commissioner
shall serve as the chairman of the committee.
5.The rural community endowment fund committee shall award grants from the rural
community endowment fund. When awarding grants from the fund, the committee
shall prioritize projects that support the long - term prosperity, independence, safety,
health, and quality of life of rural communities and their citizens. The committee shall
determine funding application and evaluation processes, including grant award
amounts and recipients, priority of projects, and evaluation criteria of approved
projects.
6.The department shall contract with a nonprofit organization dedicated to supporting
housing initiatives, social and cultural events, and small businesses in rural
communities in the state to assist the department in administering the rural community
endowment fund and provide recommendations to the rural community endowment
fund committee related to funding, awards, projects, and other purposes. The
department may expend up to ten percent of funding available for distribution in the
rural community endowment fund for costs of administering the program.
7.For purposes of this section, "rural community" means a city with a population of fewer
than one thousand individuals as determined by the most recent decennial census.
8.Before July first of each year, the department shall report to the legislative
management regarding the status of the rural community endowment fund, use of
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funding, and program results. The department shall provide an additional status report
to each appropriations committee during regular legislative sessions.
SECTION 2. APPROPRIATION - TRANSFER TO RURAL COMMUNITY ENDOWMENT
FUND. There is appropriated out of any moneys in the general fund in the state treasury, not
otherwise appropriated, the sum of $5,000,000, which the office of management and budget
shall transfer to the rural community endowment fund, during the biennium beginning July 1,
2025, and ending June 30, 2027.
Page No. 3 25.0231.04000
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