ND
North Dakota Senate Bill SB2327

North Dakota 2025-2026 Regular Session

North Dakota Senate Bill SB2327 Compare Versions

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1-25.1215.04000
1+25.1215.02002
2+Title.03000
3+Adopted by the House Agriculture
4+Committee
25 Sixty-ninth
6+March 14, 2025
37 Legislative Assembly
48 of North Dakota
59 Introduced by
610 Senators Wanzek, Erbele, Conley
711 Representatives Beltz, Brandenburg, Hagert
8-A BILL for an Act to amend and reenact sections 4.1-01.1-07 and 4.1-01.1-08 of the North
9-Dakota Century Code, relating to uses of the agriculture diversification and development fund
10-and committee; to provide an appropriation; and to provide for a transfer.
12+A BILL for an Act to amend and reenact sectionsections 4.1-01.1-07 and 4.1-01.1-08 of the
13+North Dakota Century Code, relating to uses of the agriculture diversification and development
14+fund and committee; to provide an appropriation; and to provide for a transfer.
1115 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
1216 SECTION 1. AMENDMENT. Section 4.1-01.1-07 of the North Dakota Century Code is
1317 amended and reenacted as follows:
1418 4.1-01.1-07. Agriculture diversification and development fund - Continuing
1519 appropriation.
1620 1.There is created in the state treasury the agriculture diversification and development
1721 fund. The fund consists of all moneys transferred to the fund by the legislative
1822 assembly, interest upon moneys in the fund, and payments of interest and principal on
1923 loans made from the fund. Moneys in the fund are appropriated to the Bank of North
2024 Dakota on a continuing basis for loan disbursements and administrative costs
2125 pursuant to this section, and moneys in the fund are appropriated to the agriculture
2226 commissioner on a continuing basis for grants pursuant to this section and section
2327 4.1-01-27. The agriculture diversification and development committee shall designate
2428 the amount available from the fund for loans, interest rate buydowns, and grants.
2529 2.Loans, interest rate buydowns, or grants under subsections 3 and 4 may be issued
2630 from the fund to support new or expanding value-added agriculture businesses that
2731 demonstrate financial feasibility, enhance profitability for farmers and ranchers, create
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33+ENGROSSED SENATE BILL NO. 2327
34+FIRST ENGROSSMENT
35+PROPOSED AMENDMENTS TO
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2857 jobs, and grow the state's economy. Grants under section 4.1-01-27 may be issued
2958 from the fund for infrastructure improvements necessary for the development or
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31-ENGROSSED SENATE BILL NO. 2327
32-FIRST ENGROSSMENT
33-with House Amendments
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 agriculture diversification and development committee may use up to five percent
80+of the funding available in the agriculture diversification and development fund on July
81+first of each odd - numbered year for administrative expenses related to the agriculture
82+infrastructure grant program each biennium in - state travel, per diem, and related costs
83+of administering grants under this section . The agriculture commissioner may
84+reimburse agriculture diversification and development committee members for in - state
85+travel, per diem, and related costs incurred associated with the program as authorized
86+under subsection 2 of section 4.1 - 01.1 - 08 .
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57-expansion of new or existing value-added agriculture businesses. Value-added
58-agriculture businesses include food production or processing facilities; feed or pet food
59-processing facilities; commodity processing facilities; agriculture product
60-manufacturers; and animal agriculture production facilities, including swine, poultry,
61-dairy, and feed lot production facilities.
62-3.The Bank of North Dakota shall develop policies for loans and interest rate buydowns
63-from the fund in consultation with the agriculture diversification and development
64-committee. The Bank shall review loan applications. To be eligible for a loan under this
65-section, an entity shall agree to provide the Bank with information as requested. The
66-Bank may develop policies for loan participation with local financial institutions. The
67-Bank shall deposit in the fund all principal and interest paid on the outstanding loans.
68-The Bank may use a portion of the interest paid as a servicing fee to pay for
69-administrative costs, which may not exceed one-half of one percent of the amount of
70-the outstanding loans. The fund must be audited annually pursuant to section 6-09-29,
71-and the cost of the audit must be paid from the fund.
72-4.The agricultural diversification and development committee shall develop policies for
73-grants from the fund to support new or expanding value-added agriculture businesses,
74-including eligibility criteria, maximum grant amounts, and reporting requirements.
75-Based on recommendations from the agricultural diversification and development
76-committee, the agriculture commissioner shall distribute the grant funding.
77-5.The agriculture diversification and development committee may use funding available
78-in the agriculture diversification and development fund for in - state travel, per diem, and
79-related costs of administering grants under this section. The agriculture commissioner
80-may reimburse agriculture diversification and development committee members for
81-in - state travel, per diem, and related costs incurred associated with the program as
82-authorized under subsection 2 of section 4.1 - 01.1 - 08.
83119 SECTION 2. AMENDMENT. Section 4.1-01.1-08 of the North Dakota Century Code is
84120 amended and reenacted as follows:
85121 4.1-01.1-08. Agriculture diversification and development committee.
86122 1.The agriculture diversification and development committee consists of eleven
87123 members, five of whom must be appointed by the commissioner for terms of two years
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124+each, arranged so that two terms expire in odd-numbered years and three terms
125+expire in even-numbered years.
126+a.Four of the members appointed by the commissioner must be actively engaged
127+in farming in this state and the fifth member appointed by the commissioner must
128+be actively engaged in agribusiness in this state.
129+b.The governor shall appoint one member for a term of two years which expires in
130+odd-numbered years.
131+c.The member appointed by the governor must be actively engaged in business in
132+this state.
133+d.The remaining committee members must consist of:
134+(1)One representative from the independent community banks of North
135+Dakota;
136+(2)One representative from the North Dakota bankers association;
137+(3)The commissioner of commerce or the commissioner's designee;
138+(4)The president of North Dakota state university or the president's designee;
139+and
140+(5)The agriculture commissioner or the commissioner's designee.
141+e.The committee shall elect one of its members as chairman.
142+2.The agriculture diversification and development committee shall develop guidelines for
143+the grants, including eligibility criteria and reporting requirements. The guidelines must
144+include priority for businesses with a majority of the ownership comprised of North
145+Dakota residents. The agriculture diversification and development committee shall
146+review grant applications and make funding determinations. Members of the
147+committee are entitled to be reimbursed for expenses incurred in the performance of
148+their duties, in the same manner as other state officials are reimbursed, according to
149+sections 44-08-04 and 54-06-09. If not otherwise employed by the state of North
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121-each, arranged so that two terms expire in odd-numbered years and three terms
122-expire in even-numbered years.
123-a.Four of the members appointed by the commissioner must be actively engaged
124-in farming in this state and the fifth member appointed by the commissioner must
125-be actively engaged in agribusiness in this state.
126-b.The governor shall appoint one member for a term of two years which expires in
127-odd-numbered years.
128-c.The member appointed by the governor must be actively engaged in business in
129-this state.
130-d.The remaining committee members must consist of:
131-(1)One representative from the independent community banks of North
132-Dakota;
133-(2)One representative from the North Dakota bankers association;
134-(3)The commissioner of commerce or the commissioner's designee;
135-(4)The president of North Dakota state university or the president's designee;
136-and
137-(5)The agriculture commissioner or the commissioner's designee.
138-e.The committee shall elect one of its members as chairman.
139-2.The agriculture diversification and development committee shall develop guidelines for
140-the grants, including eligibility criteria and reporting requirements. The guidelines must
141-include priority for businesses with a majority of the ownership comprised of North
142-Dakota residents. The agriculture diversification and development committee shall
143-review grant applications and make funding determinations. Members of the
144-committee are entitled to be reimbursed for expenses incurred in the performance of
145-their duties, in the same manner as other state officials are reimbursed, in accordance
146-with sections 44 - 08 - 04 and 54 - 06 - 09. If not otherwise employed by the state of North
147183 Dakota, members of the committee are entitled to receive per diem compensation of
148184 one hundred thirty-five dollars for each day of attending meetings and performing
149185 other duties relating to official business of the committee.
150186 SECTION 3. APPROPRIATION - TRANSFER TO AGRICULTURE DIVERSIFICATION
151187 AND DEVELOPMENT FUND. There is appropriated out of any moneys in the general fund in
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188+the state treasury, not otherwise appropriated, the sum of $15,000,000, which the office of
189+management and budget shall transfer to the agriculture diversification and development fund,
190+for the biennium beginning July 1, 2025, and ending June 30, 2027. Of the $15,000,000, up to
191+$10,000,000 is available for agriculture infrastructure grants to political subdivisions under
192+section 4.1-01-27.
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185-the state treasury, not otherwise appropriated, the sum of $15,000,000, which the office of
186-management and budget shall transfer to the agriculture diversification and development fund,
187-for the biennium beginning July 1, 2025, and ending June 30, 2027.
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