ND SB2178

Superintendent of public instruction approval is required for school construction projects exceeding $100,000, with revised criteria including demonstration of stable or increasing student population over five-year periods, or clear and convincing evidence that no feasible alternatives exist for declining enrollment districts.

Bank of North Dakota may provide up to $250 million in school construction loans to eligible districts, with a maximum of $50 million available during the first year of the 2015-17 biennium, capped at $20 million per district.

Loan eligibility requires projects costing at least $1 million with 30-year utilization, superintendent approval, bond authorization, and disclosure of estimated tax impacts to residential and agricultural property owners.

Loan terms are 20 years at interest rates not exceeding 2 percent until July 1, 2025, then capped at Bank of North Dakota's base rate or a fixed rate thereafter.

$7,875,000 is transferred from Bank of North Dakota's earnings to fund interest rate buydowns on school construction loans for the 2015-17 biennium, and leased school facilities are designated as insurable public facilities through June 30, 2017.