Senate Bill No. 2039 Summary

• Creates a scholarship endowment fund as a permanent special fund in the state treasury with interest and earnings dedicated to scholarships for North Dakota residents attending in-state higher education institutions.

• Establishes a school construction assistance loan fund managed by the Bank of North Dakota providing up to $200 million in low-interest loans (maximum 2 percent) to eligible school districts for projects costing at least $1 million with 30-year expected utilization.

• Authorizes the board of university and school lands to provide up to $50 million from the coal development trust fund and $150 million from the strategic investment and improvements fund for school construction loans.

• Requires school districts to obtain superintendent of public instruction approval for construction projects exceeding $100,000, with appeal rights to the state board of public school education, and establishes criteria including demonstrated need, student population stability, and capacity to pay.

• Transfers up to $200 million from the foundation aid stabilization fund (or 50 percent of its balance on December 1, 2016, whichever is less) to both the school construction assistance loan fund and the scholarship endowment fund, contingent on voter approval of Senate Concurrent Resolution No. 4003.