HB 1425 Summary

• Establishes the Legacy Infrastructure Loan Fund administered by the Bank of North Dakota to provide low-interest loans (not exceeding 2% annually) to political subdivisions, Garrison Diversion Conservancy District, and Lake Agassiz water authority for eligible infrastructure projects with terms up to 30 years.

• Sets maximum outstanding loan amount of $40 million per applicant and establishes eligible projects including water/wastewater treatment plants, roads, bridges, airports, electricity/natural gas/communications infrastructure, and emergency services facilities.

• Requires the State Investment Board to give preference to in-state investment firms and financial institutions for Legacy Fund investments, with 10% target allocation to fixed income investments within the state and 10% to in-state equity investments.

• Allocates up to 40% of the 10% fixed income portion for infrastructure loans under the Legacy Infrastructure Loan Fund with a fixed 1.5% net return to the Legacy Fund, and designates 60% with a $400 million minimum for Bank of North Dakota's certificate of deposit match program.

• Creates reporting requirements for the Legacy and Budget Stabilization Fund Advisory Board to report at least semiannually to the budget section on investment activities and asset allocation.