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North Dakota Senate Bill SB2149

North Dakota 2025-2026 Regular Session

North Dakota Senate Bill SB2149 Compare Versions

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1-Sixty-ninth Legislative Assembly of North Dakota
2-In Regular Session Commencing Tuesday, January 7, 2025
1+25.0717.01001
2+Title.02000
3+Adopted by the Education Committee
4+Sixty-ninth
5+January 29, 2025
6+Legislative Assembly
7+of North Dakota
8+Introduced by
9+Senators Schaible, Cory, Meyer
10+Representatives Louser, Sanford
11+A BILL for an Act to amend and reenact section 15.1-36-08 of the North Dakota Century Code,
12+relating to the school construction assistance revolving loan fund; and to declare an emergency.
13+BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
14+SECTION 1. AMENDMENT. Section 15.1-36-08 of the North Dakota Century Code is
15+amended and reenacted as follows:
16+15.1-36-08. School construction assistance revolving loan fund - Bank of North
17+Dakota - School construction projects - Continuing appropriation.
18+1.The school construction assistance revolving loan fund is a special revolving loan fund
19+administered by the Bank of North Dakota. The fund consists of all moneys
20+appropriated or transferred to the fund by the legislative assembly, all interest or other
21+earnings of the fund, and all repayments of loans made from the fund.
22+2.Moneys in the fund, interest upon the moneys in the fund, and payments to the fund of
23+principal and interest are appropriated to the Bank of North Dakota on a continuing
24+basis for the purpose of providing low-interest school construction loans and for paying
25+administrative costs, in accordance with this section.
26+3.ToFor a school construction project not located on an air force base, to be eligible for a
27+loan under this section, the board of a school district shall:
28+a.Propose a new construction or remodeling project with a cost of at least
29+one million dollars and an expected utilization of at least thirty years;
30+Page No. 1 25.0717.01001
331 SENATE BILL NO. 2149
4-(Senators Schaible, Cory, Meyer)
5-(Representatives Louser, Sanford)
6-AN ACT to amend and reenact section 15.1-36-08 of the North Dakota Century Code, relating to the
7-school construction assistance revolving loan fund; and to declare an emergency.
8-BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
9-SECTION 1. AMENDMENT. Section 15.1-36-08 of the North Dakota Century Code is amended and
10-reenacted as follows:
11-15.1-36-08. School construction assistance revolving loan fund - Bank of North Dakota -
12-School construction projects - Continuing appropriation.
13-1.The school construction assistance revolving loan fund is a special revolving loan fund
14-administered by the Bank of North Dakota. The fund consists of all moneys appropriated or
15-transferred to the fund by the legislative assembly, all interest or other earnings of the fund,
16-and all repayments of loans made from the fund.
17-2.Moneys in the fund, interest upon the moneys in the fund, and payments to the fund of
18-principal and interest are appropriated to the Bank of North Dakota on a continuing basis for
19-the purpose of providing low-interest school construction loans and for paying administrative
20-costs, in accordance with this section.
21-3.ToFor a school construction project not located on an air force base, to be eligible for a loan
22-under this section, the board of a school district shall:
23-a.Propose a new construction or remodeling project with a cost of at least one million
24-dollars and an expected utilization of at least thirty years;
25-b.Obtain the approval of the superintendent of public instruction for the project under
26-section 15.1-36-01;
32+PROPOSED AMENDMENTS TO
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53+b.Obtain the approval of the superintendent of public instruction for the project
54+under section 15.1-36-01;
2755 c.(1)Publish in the official newspaper of the district the information regarding the
28-proposed estimated additional millage and the dollar increase per one thousand
29-dollars of taxable valuation in accordance with section 21-03-13 along with the
30-notice of the election in accordance with section 21-03-12 or along with the initial
31-resolution in accordance with subsection 7 of section 21-03-07; and
32-(2)Post the information on the school district's website before the date of the election
33-or during the protest period in accordance with chapter 21-03;
56+proposed estimated additional millage and the dollar increase per
57+one thousand dollars of taxable valuation in accordance with section
58+21-03-13 along with the notice of the election in accordance with section
59+21-03-12 or along with the initial resolution in accordance with subsection 7
60+of section 21-03-07; and
61+(2)Post the information on the school district's website before the date of the
62+election or during the protest period in accordance with chapter 21-03;
3463 d.Receive authorization for a bond issue in accordance with chapter 21-03; and
3564 e.Submit a completed application to the Bank of North Dakota.
36-4.For a school construction project located on an air force base, to be eligible for a loan under
37-this section, the board of the school district shall:
38-a.Propose a new construction or remodeling project on an air force base which has a cost
39-of at least one million dollars and an expected utilization of at least thirty years;
40-b.Obtain the approval of the superintendent of public instruction for the project under
41-section 15.1 - 36 - 01; S. B. NO. 2149 - PAGE 2
42-c.Obtain all necessary federal authorizations and funding commitments for the project; and
65+4.For a school construction project located on an air force base, to be eligible for a loan
66+under this section, the board of the school district shall:
67+a.Propose a new construction or remodeling project on an air force base which has
68+a cost of at least one million dollars and an expected utilization of at least thirty
69+years;
70+b.Obtain the approval of the superintendent of public instruction for the project
71+under section 15.1 - 36 - 01;
72+c.Obtain all necessary federal authorizations and funding commitments for the
73+project; and
4374 d.Submit a completed application to the Bank.
44-5.The superintendent of public instruction shall designate, until June 30, 2027, or until a loan is
45-made as identified in this section, twenty million dollars of funds available for loans in the
46-school construction assistance revolving loan fund for a loan to provide matching funds for the
47-construction of facilities on an air force base.
48-6.The superintendent of public instruction shall review loan applications based on a prioritization
49-system that includes a review of all applications filed during the twelve-month period
50-preceding April first and gives consideration to:
75+5.The superintendent of public instruction shall designate, until June 30, 2027, or until a
76+loan is made as identified in this section, twenty million dollars of funds available for
77+loans in the school construction assistance revolving loan fund for a loan to provide
78+matching funds for the construction of facilities on an air force base.
79+6.The superintendent of public instruction shall review loan applications based on a
80+prioritization system that includes a review of all applications filed during the
81+twelve-month period preceding April first and gives consideration to:
5182 a.Student occupancy and academic needs in the district;
5283 b.The age of existing structures to be replaced or remodeled;
53-c.Building design proposals that are based on safety and vulnerability assessments;
84+Page No. 2 25.0717.01001
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117+c.Building design proposals that are based on safety and vulnerability
118+assessments;
54119 d.Community support;
55120 e.Cost; and
56121 f.Any other criteria established by the superintendent of public instruction, after
57122 consultation with an interim committee appointed by the legislative management.
58-5.7.If the superintendent of public instruction approves the loan, the Bank of North Dakota shall
59-issue a loan from the school construction assistance revolving loan fund. For a loan made
60-under this section:
123+5.7.If the superintendent of public instruction approves the loan, the Bank of North Dakota
124+shall issue a loan from the school construction assistance revolving loan fund. For a
125+loan made under this section:
61126 a.If the school construction project totals less than seventy-five million dollars, the
62-maximum loan amount for which a school district may qualify is fifteen million dollars.
63-However, if a school district's unobligated general fund balance on the preceding June
64-thirtieth exceeds the limitation under section 15.1-27-35.3, the loan amount under this
65-section may not exceed eighty percent of the project's cost up to a maximum loan
66-amount of twelve million dollars;
67-b.If the school construction project totals seventy-five million dollars or more, the maximum
68-loan amount for which a school district may qualify is thirty million dollars. However, if a
69-school district's unobligated general fund balance on the preceding June thirtieth
70-exceeds the limitation under section 15.1-27-35.3, the loan amount under this section
71-may not exceed eighty percent of the project's cost up to a maximum loan amount of
72-twenty-four million dollars;
73-c.If the school construction project is on an air force base, the maximum loan amount for
74-which the school district may qualify is the lesser of twenty percent of the project cost or
75-twenty million dollars;
76-d.The term of the loan is twenty years, unless the board of the school district requests a
77-shorter term in the written loan application; and
127+maximum loan amount for which a school district may qualify is fifteen million
128+dollars. However, if a school district's unobligated general fund balance on the
129+preceding June thirtieth exceeds the limitation under section 15.1-27-35.3, the
130+loan amount under this section may not exceed eighty percent of the project's
131+cost up to a maximum loan amount of twelve million dollars;
132+b.If the school construction project totals seventy-five million dollars or more, the
133+maximum loan amount for which a school district may qualify is thirty million
134+dollars. However, if a school district's unobligated general fund balance on the
135+preceding June thirtieth exceeds the limitation under section 15.1-27-35.3, the
136+loan amount under this section may not exceed eighty percent of the project's
137+cost up to a maximum loan amount of twenty-four million dollars;
138+c.If the school construction project is on an air force base, the maximum loan
139+amount for which the school district may qualify is the lesser of twenty percent of
140+the project cost or twenty million dollars.
141+d.The term of the loan is twenty years, unless the board of the school district
142+requests a shorter term in the written loan application; and
78143 d.e.The interest rate of the loan may not exceed two percent per year.
79-e.f.A district with a school construction loan secured on the open bond market may apply to
80-refinance the loan when callable with the school construction assistance revolving loan
81-fund under this subsection.
82-f.A district that qualifies for a loan under subdivision a, which was approved for a loan of
83-up to ten million dollars for a construction project bid after January 1, 2021, and before S. B. NO. 2149 - PAGE 3
84-June 30, 2024, may apply for a loan in an amount equal to the difference between fifteen
85-million dollars and the amount of the approved loan. Districts qualifying under this
86-subdivision may submit an application for additional funding to the superintendent of
87-public instruction before August 1, 2023.
88-g.A district that qualifies for a loan under subdivision b, which was approved for a loan of
89-up to ten million dollars for a construction project bid after January 1, 2021, and before
90-June 30, 2024, may apply for a loan in an amount equal to the difference between thirty
91-million dollars and the amount of the approved loan. Districts qualifying under this
92-subdivision may submit an application for additional funding to the superintendent of
93-public instruction before August 1, 2023.
94-6.8.The Bank may adopt policies and establish guidelines to administer this loan program in
95-accordance with this section. The Bank of North Dakota may use a portion of the interest paid
96-on the outstanding loans as a servicing fee to pay for administration costs which may not
97-exceed one-half of one percent of the amount of the interest payment. The Bank of North
98-Dakota shall deposit principal and interest payments made by school districts for loans under
99-this section in the school construction assistance revolving loan fund. The fund must be
100-audited annually pursuant to section 6-09-29, and the cost of the audit must be paid from the
101-fund.
102-SECTION 2. EMERGENCY. This Act is declared to be an emergency measure. S. B. NO. 2149 - PAGE 4
103-____________________________ ____________________________
104-President of the Senate Speaker of the House
105-____________________________ ____________________________
106-Secretary of the Senate Chief Clerk of the House
107-This certifies that the within bill originated in the Senate of the Sixty-ninth Legislative Assembly of North
108-Dakota and is known on the records of that body as Senate Bill No. 2149 and that two-thirds of the
109-members-elect of the Senate voted in favor of said law.
110-Vote: Yeas 46 Nays 0 Absent 1
111-____________________________ ____________________________
112-President of the Senate Secretary of the Senate
113-This certifies that two-thirds of the members-elect of the House of Representatives voted in favor of
114-said law.
115-Vote: Yeas 93 Nays 0 Absent 1
116-____________________________ ____________________________
117-Speaker of the House Chief Clerk of the House
118-Received by the Governor at ________M. on _____________________________________, 2025.
119-Approved at ________M. on __________________________________________________, 2025.
120-____________________________
121-Governor
122-Filed in this office this ___________day of _______________________________________, 2025,
123-at ________ o’clock ________M.
124-____________________________
125-Secretary of State
144+e.f.A district with a school construction loan secured on the open bond market may
145+apply to refinance the loan when callable with the school construction assistance
146+revolving loan fund under this subsection.
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179+f.A district that qualifies for a loan under subdivision a, which was approved for a
180+loan of up to ten million dollars for a construction project bid after January 1,
181+2021, and before June 30, 2024, may apply for a loan in an amount equal to the
182+difference between fifteen million dollars and the amount of the approved loan.
183+Districts qualifying under this subdivision may submit an application for additional
184+funding to the superintendent of public instruction before August 1, 2023.
185+g.A district that qualifies for a loan under subdivision b, which was approved for a
186+loan of up to ten million dollars for a construction project bid after January 1,
187+2021, and before June 30, 2024, may apply for a loan in an amount equal to the
188+difference between thirty million dollars and the amount of the approved loan.
189+Districts qualifying under this subdivision may submit an application for additional
190+funding to the superintendent of public instruction before August 1, 2023.
191+6.8.The Bank may adopt policies and establish guidelines to administer this loan program
192+in accordance with this section. The Bank of North Dakota may use a portion of the
193+interest paid on the outstanding loans as a servicing fee to pay for administration costs
194+which may not exceed one-half of one percent of the amount of the interest payment.
195+The Bank of North Dakota shall deposit principal and interest payments made by
196+school districts for loans under this section in the school construction assistance
197+revolving loan fund. The fund must be audited annually pursuant to section 6-09-29,
198+and the cost of the audit must be paid from the fund.
199+SECTION 2. EMERGENCY. This Act is declared to be an emergency measure.
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