ND HB1362

State investment board may make loans from the legacy fund to oil and gas development-impacted counties, cities, and school districts before or after oil and gas production begins, provided loans before production are preceded by drilling permits

Loans may be made for any purpose eligible for impact grants and require recommendation from the office administering oil and gas impact funding

Warrants must bear interest at not more than four percent and be repaid only from gross production tax allocations to the borrowing entity, with at least ten percent of each allocation withheld for repayment

Warrants are negotiable instruments exempt from state and local taxation, and the state investment board may sell warrants with proceeds deposited back into the legacy fund

If future allocations permanently cease, loans are canceled unless the entity merges with another receiving gross production tax allocations, in which case the surviving entity assumes repayment obligations

Act becomes effective July 1, 2012