CHAPTER 54-17
INDUSTRIAL COMMISSION
54-17-01. Industrial commission to manage industries of state and to act as a state
housing finance agency. The commission created to conduct and manage, on behalf of the<br>state of North Dakota, certain utilities, industries, enterprises, including housing finance<br>programs, and business projects established by law must be known as the industrial commission<br>of North Dakota, but may be designated as the industrial commission. In the creation of the<br>industrial commission, it is the intention of the legislative assembly that all acts of the industrial<br>commission are the acts of the state of North Dakota functioning in its sovereign capacity.
54-17-02. Industrial commission - Members - Quorum - Meetings. The industrial
commission of North Dakota shall consist of the governor, the attorney general, and the<br>agriculture commissioner.
The governor and one member constitute a quorum for the
transaction of business. The meetings of the commission must be held at such times and places<br>as the governor or a majority of the commission may determine. It must be provided by the<br>proper authorities with suitably furnished offices at the seat of government.
54-17-03. Chairman and attorney - Secretary - Employees - Compensation - Bonds.
The governor is the chairman of the industrial commission, and its attorney is the attorney<br>general. The commission shall appoint a secretary and may employ other subordinate officers,<br>employees, and agents, on such terms as the commission determines proper. The commission<br>may require suitable bonds of its secretary or other subordinate officers, employees, or agents.<br>The commission shall fix the amount of the compensation of the commission's secretary,<br>officers, employees, and agents and the secretary's salary may exceed the maximum salary in<br>the grade established for the classification assigned under chapter 54-44.3. The compensation,<br>together with other expenditures for operation and maintenance of the general business of the<br>commission, must remain within the appropriation available in each year for such purpose. The<br>commission may set the compensation, within the limits of legislative appropriation, for members<br>of a board, committee, or council that advises the commission.
Notwithstanding any other
provision of law, the compensation for any board, committee, or council member may include<br>reimbursement for expenses, a salary, a per diem, or a combination of the three, as set by the<br>commission.
54-17-04. Seal of commission. The industrial commission shall adopt and procure an
official seal and may authenticate therewith its documentary acts.
54-17-05.
Orders of commission - Approval by majority.
All orders, rules,
regulations, bylaws, and written contracts, adopted or authorized by the industrial commission,<br>before becoming effective, must be approved by a majority of the commission.
54-17-06. Biennial report. The industrial commission shall submit a biennial report to
the governor and the secretary of state in accordance with section 54-06-04. The report must<br>contain a meaningful financial statement of each utility, industry, enterprise, and business project<br>under its control.
54-17-07. Industries under the industrial commission - Income on deposits and
investments. The industrial commission shall operate, manage, control, and govern all utilities,<br>industries, enterprises, and business projects established, owned, undertaken, administered, or<br>operated by the state of North Dakota, except those carried on in penal, charitable, or<br>educational institutions or those conducted pursuant to chapter 65-08.1. All income earned on<br>state moneys that are deposited or invested to the credit of the industrial commission or any<br>agency, utility, industry, enterprise, or business project operated, managed, controlled, or<br>governed by the industrial commission must be added to and become a part of such moneys.
54-17-07.1.
Advisory board - Rules.
The industrial commission shall appoint a
six-member advisory board consisting of representatives of lenders, the residential real estate<br>industry, the mobile home and manufactured housing industry, and homeowners and buyers,
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and in consultation with such board may adopt rules and regulations for the conduct of its<br>housing finance program which may, among other matters, establish requirements for the type<br>and purchase price of dwelling units and multifamily facilities eligible to be financed, the income<br>limits for eligible low or moderate income persons or families, the interest rates and other terms<br>of mortgage loans to be financed, requirements relating to federal or private mortgage insurance<br>or guarantees, and the general terms and conditions for the issuance and security of housing<br>revenue bonds to be issued.
54-17-07.2. Definitions. As used in sections 54-17-07.1 through 54-17-07.7 and section
54-17-07.10:
1.
"Lenders" means any bank or trust company chartered by the state of North Dakota<br>or any national banking association located in North Dakota, state or federal savings<br>and loan association located in North Dakota, and federal housing administration<br>approved mortgagee or other mortgage banking institutions actively engaged in<br>home mortgage lending in North Dakota approved by the industrial commission.
2.
"Multifamily housing facility" means any facility containing five or more residential<br>dwelling units; provided, that at least twenty percent of the units in each facility must<br>be held for occupancy by persons or families of low and moderate income for such<br>period of time as the industrial commission may determine and may include such<br>related public or private facilities intended for commercial, cultural, recreational,<br>community, or other civic purpose as the commission may approve.
3.
"Persons and families of low or moderate income" means persons or families whose<br>financial means are insufficient, taking into account such factors as the industrial<br>commission shall deem relevant, to secure decent, safe, and sanitary housing<br>provided by private industry without the financial assistance afforded by the housing<br>finance programs of the commission.
4.
"Single-family residential dwelling unit" means any residential real property that:
a.
Is designed for occupancy by one to four individual households;
b.
Is an individual condominium or equity cooperative unit; or
c.
Is an individual nonrental dwelling unit the ownership of which includes rights of<br>facilities in common.
54-17-07.3.
Housing finance programs.
Acting in its capacity as a state housing
finance agency, the industrial commission is authorized to establish the following housing finance<br>programs:
1.
Home mortgage finance program. A program or programs to provide financing or<br>refinancing of loans made by lenders, including second mortgage loans and<br>leasehold mortgage loans on tribal trust or other reservation lands, and leasehold<br>mortgage loans that are insured or guaranteed through an affordable housing<br>program, to persons or families of low and moderate income for the purchase or<br>substantial rehabilitation of owner occupied, single-family residential dwelling units,<br>which includes mobile homes and manufactured housing.
2.
Mobile home and manufactured housing finance program. A program or programs<br>to provide for the purchase or guaranty of a loan made by a lender to finance the<br>purchase of a mobile home or a manufactured housing unit other than on a real<br>property mortgage basis. A program authorized under this subsection may provide<br>assistance in the development of low-income to moderate-income housing or to<br>otherwise assist a developing community in the state address an unmet housing<br>need or alleviate a housing shortage.
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3.
Multifamily housing finance program. A program or programs to provide financing<br>directly or indirectly of construction, permanent, and combined construction and<br>permanent mortgage loans, including participations in mortgage loans, for the<br>acquisition, construction, refurbishing, reconstruction, rehabilitation, or improvement<br>of multifamily housing facilities.
4.
Mortgage loan financing program.
A program or programs to provide for the
purchase or guaranty of a temporary or permanent mortgage loan originated by a<br>lender on residential real property or on land to be developed into residential real<br>property, in addition to a mortgage loan acquired or to be acquired under<br>subsections 1 through 3. A program authorized under this subsection may provide<br>assistance in the development of low to moderate income housing or to otherwise<br>assist a developing community in the state address an unmet housing need or<br>alleviate a housing shortage.
5.
Home improvement finance program.
A program or programs to provide full or
partial, indirect financing of improvements to existing residential dwelling units.
6.
Housing grant program. A program or programs to provide a grant other than those<br>authorized by section 54-17-07.6 to encourage and promote housing availability for<br>persons of low or moderate income or to otherwise assist a developing community in<br>this state address an unmet housing need or alleviate a housing shortage.
54-17-07.4. Housing revenue bonds. In order to fund its housing finance programs, the
industrial commission is authorized to issue and refund revenue bonds or evidences of debt and<br>indebtedness of the state. The principal of and interest on such bonds are payable only from<br>revenues generated under the applicable housing finance programs.
The bonds may not
constitute a debt of the state of North Dakota and must contain a statement to that effect on their<br>face. The bonds may be sold at public or private sale, must mature not more than fifty years<br>from their date or dates, and must contain such terms and provisions as the commission shall<br>determine. The commission may capitalize from bond proceeds all expenses incidental to the<br>issuance of the bonds or to the applicable housing finance program, including, without limitation,<br>any reserves for the payment of the bonds.
54-17-07.5. State reallocation under the Mortgage Subsidy Bond Tax Act of 1980.
Repealed by S.L. 1987, ch. 630, § 1.
54-17-07.6. Acceptance of grants, contributions, loans, or other aid. Acting in its
capacity as a state housing finance agency, the industrial commission may contract for, accept,<br>and administer any grant, contribution, or loan of funds, property, or other aid in any form from<br>the federal government or from any other source, and may do all things necessary to qualify for<br>any grant, contribution, or loan under any federal program, including those things necessary to<br>qualify for assistance under the federal housing programs in effect from time to time. Upon<br>submission of written notice to the industrial commission, a housing authority established under<br>chapter 23-11 may elect to exercise the authority granted to the industrial commission under this<br>section and preempt the industrial commission from acting with regard to tenant-based housing<br>certificates and vouchers or successor programs within the area of operation of that housing<br>authority or may elect to enter an agreement with the industrial commission to accept, exercise,<br>and administer any housing aid or assistance upon the terms and conditions agreed upon by the<br>parties. For the purposes of this section, "area of operation" includes any political subdivision<br>that lawfully contracts with the local housing authority to act as a local housing authority for that<br>political subdivision and any political subdivision that has its certificates and vouchers or<br>successor programs assigned by the industrial commission to the local housing authority under<br>an agreement between the local housing authority and the industrial commission.
54-17-07.7. Terms of loans. Notwithstanding any other provision of law, the industrial
commission is authorized to require, as a condition of the origination of loans and mortgage<br>loans made pursuant to any of its housing finance programs or purchase of loans and mortgage<br>loans to be purchased by it, prepayment penalties, restrictions upon assumability, default
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provisions, rights to accelerate, rights to increase the interest rate, and any other terms the<br>commission may determine to be necessary or desirable to assure the repayment of its housing<br>revenue bonds and, unless such conditions of origination or other terms are not required by the<br>commission, the exemption from federal income taxes of the interest payable on its housing<br>revenue bonds under the Internal Revenue Code of 1986. All such terms are enforceable by the<br>originator, the commission, or any successor holder of the loans or mortgage loans unless<br>expressly waived in writing by or on behalf of the commission.
54-17-07.8.
Confidentiality of housing finance agency records.
The following
records of the housing finance agency are confidential and are not public records:
1.
Personal or financial information of a participant in any of the housing finance<br>agency's programs, obtained directly or indirectly, except for routine credit inquiries<br>or as required by court order.
2.
Internal or interagency memorandums or letters of a personal nature which are not<br>available by law to a party, except insofar as they are available in litigation with the<br>agency.
3.
Personal financial statements which the industrial commission requires of any<br>housing finance agency employee or member of the housing finance agency's<br>advisory board.
54-17-07.9. Execution of instruments. In the absence of any provision regulating the
execution and acknowledgment of conveyances, transfers, assignments, releases, satisfactions,<br>or other instruments affecting liens on, title to, or interest in real estate, the executive director or<br>the director of financial programs may execute and acknowledge such instruments on behalf of<br>the industrial commission acting as the North Dakota housing finance agency.
54-17-07.10. Housing acquisition program. The industrial commission may establish
a program or programs to provide housing for persons of low or moderate income, through the<br>acquisition of residential real property and related personal property or interests therein through<br>purchase, lease, gift, grant, bequest, or otherwise to maintain, repair, improve, sell, or convey<br>leasehold interests in that real and personal property to, or for the benefit of, persons of low or<br>moderate income.
Property acquired under this section is subject to property and special
assessment taxes in a manner consistent with and equal to other property of equal value within<br>the respective taxing districts where the property is located. Taxes on any property acquired<br>under this section must be paid in a timely manner for any year or pro rata portion of a year by<br>any housing authority or housing acquisition organization holding title to the property.
54-17-07.11.
Pledges.
Any pledge made by the industrial commission acting in its
capacity as the state housing finance agency is valid and binding from the time the pledge is<br>made. The money and property pledged and received by the industrial commission acting in its<br>capacity as the state housing finance agency, except for general agency money or property, is<br>immediately subject to the lien of the pledge without any physical delivery thereof or further act,<br>and the lien of any pledge is valid and binding as against all parties having claims of any kind in<br>tort, contract, or otherwise against the industrial commission acting in its capacity as the state<br>housing finance agency, irrespective of whether the parties have notice thereof. Neither the<br>resolution nor any other instrument by which a pledge is created is required to be recorded to<br>constitute constructive notice of the existence of the pledge.
54-17-08.
Commission to make rules for its procedure - General powers of
commission. The industrial commission shall make rules and regulations for its own procedure.<br>It may do any and all things necessary or expedient in conducting the business of the industries,<br>utilities, enterprises, and business projects under its control.
54-17-09.
Industrial commission to determine place of business of industries -
Rules made by commission. The industrial commission shall:
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1.
Determine the location of all utilities, industries, enterprises, and business projects<br>established, owned, undertaken, administered, or operated by the state.
2.
Make rules, regulations, orders, and bylaws for the management and operation, and<br>for the transaction of the business, of such utilities, industries, enterprises, and<br>business projects.
54-17-10.
Powers and duties of commission in operating industries.
In the
management, operation, and control of all utilities, industries, enterprises, and business projects<br>established, owned, undertaken, administered, or operated by the state, and to accomplish the<br>purposes of this chapter, the industrial commission shall:
1.
Acquire by purchase, lease, or, subject to chapter 32-15, by exercise of the right of<br>eminent domain, all necessary property or property rights, and hold and possess or<br>sell the whole or any part thereof.
2.
Construct and reconstruct necessary buildings on the properties acquired.
3.
Equip, maintain, repair, and alter any and all properties acquired and the<br>improvements thereon.
4.
Generally use properties acquired and improvements made so as to promote such<br>utilities, industries, enterprises, and business projects.
54-17-11.
Manager and employees of industries - Commission to appoint -
Compensation.
The industrial commission shall appoint a manager and all necessary
subordinate officers and employees of and for each utility, industry, enterprise, and business<br>project established, owned, undertaken, administered, or operated by the state. It may constitute<br>such manager its general agent in the performance of its duties in the particular utility, industry,<br>enterprise, or business project in which the manager is engaged, but subject, nevertheless, in<br>such agency to the supervision, limitation, and control of the commission. It shall employ such<br>contractors, architects, builders, attorneys, sales agents, clerks, accountants, and other experts,<br>agents, and servants, as in the judgment of the commission the interests of the state may<br>require, and shall define the duties, designate the titles, and fix the compensation and bonds of<br>all persons so engaged.
54-17-12. Manager shall appoint necessary employees. Subject to the control and
regulation of the industrial commission, the manager of any utility, industry, enterprise, or<br>business project established, owned, undertaken, administered, or operated by the state shall<br>appoint and employ such deputies, assistants, and other subordinates, and such contractors,<br>architects, builders, attorneys, sales agents, clerks, accountants, and other experts, agents, and<br>servants, as in the manager's judgment are required by the interests of the utility, industry,<br>enterprise, or business project of which the manager is in charge.
54-17-13.
Compensation
of
employees
and
expenditures
remain
within
appropriation.
The total compensation of the appointees and employees of each utility,
industry, enterprise, or business project established, owned, undertaken, administered, or<br>operated by the state, together with other expenditures for the operation and maintenance<br>thereof, must remain within the appropriation and earnings lawfully available in each year for<br>such purposes.
54-17-14.
Removal and discharge of appointees. The industrial commission may
remove and discharge any and all persons appointed in the exercise of the powers granted by<br>this chapter, whether by the commission or by any manager of any utility, industry, enterprise, or<br>business project of the state. Any such removal may be made whenever in the judgment of the<br>commission the public interests require it. All appointments and removals contemplated by this<br>chapter must be made as the commission shall deem most fit to promote the efficiency of the<br>public service.
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54-17-15. Commission to fix prices of things bought and sold by industry. The
industrial commission shall fix the buying prices of things bought, and the selling prices of things<br>sold, incidental to any utility, industry, enterprise, or business project of the state, and shall fix the<br>rates and charges for any and all services rendered thereby. In fixing such prices, rates, and<br>charges, the commission shall make provision for accumulating a fund with which to replace, in<br>the general fund of the state, any amount received from the state.
54-17-16. Investigation conducted by commission. The industrial commission shall
conduct investigations of all matters directly or indirectly connected with, or bearing upon the<br>success of, any of the utilities, industries, enterprises, and business projects under its<br>management, and of all matters which directly or indirectly may affect the methods, operations,<br>processes, products, or results thereof. In aid of any such investigation the commission may<br>summon and compel the attendance of witnesses and examine them under oath. Any member<br>of the commission may administer such oath.
It shall have access to, and may order the
production of, all books, accounts, papers, and property material to such investigation.<br>Witnesses other than those in the employ of the state are entitled to the same fees as witnesses<br>in civil cases in the district court.
54-17-17. Witnesses not excused from testifying - Not subject to prosecution. In
an investigation made by the industrial commission under the provisions of this chapter, the claim<br>that any testimony or evidence sought to be elicited or produced on the examination may tend to<br>incriminate the person giving or producing it, or may expose the person to public ignominy, does<br>not excuse the person from testifying or producing evidence, documentary or otherwise, but no<br>person may be prosecuted or subjected to any penalty or forfeiture for and on account of any<br>matter or thing concerning which the person may testify or produce such evidence. Such person<br>is not exempted from prosecution and punishment for perjury committed in so testifying.
54-17-18. Testimony transcribed and filed in office of commission - Public record.
The industrial commission shall cause the testimony taken at an investigation held under the<br>provisions of this chapter to be transcribed and filed in the office of the commission, at the seat of<br>government, within ten days after it is taken, or as soon thereafter as practicable. When so filed<br>it must be open for inspection by any person.
54-17-19. Failure to testify or produce evidence - Contempt. Any person failing or
refusing to obey the order of the industrial commission issued upon an investigation, or to give or<br>produce evidence when required, must be reported by the commission to the district court or any<br>judge thereof, and must be dealt with by the court or judge as for contempt of court.
54-17-20. Bonds issued by commission. The industrial commission shall procure the
necessary funds for utilities, industries, enterprises, and business projects under its control by<br>negotiating the bonds of the state of North Dakota in such amounts and in such manner as may<br>be provided by law.
54-17-21.
Commission authorized to acquire and dispose Riverdale sites,
properties, and facilities. Repealed by S.L. 1999, ch. 457, § 1.
54-17-22.
Commission authorized to act as planning agency of state and to
negotiate and contract with federal housing administration. Repealed by S.L. 1999, ch. 457,<br>§ 1.
54-17-23.
Commission authorized to apply for, receive, and disburse federal
planning funds, and to establish separate planning account.
Repealed by S.L. 1999,
ch. 457, § 1.
54-17-24. State trusts created. The industrial commission is hereby authorized and
directed to acquire and to hold in one or more trusts all unpaid United States government<br>guaranteed or reinsured student loans and North Dakota guaranteed student loans, belonging to<br>the state of North Dakota or to any of its agencies, departments, or institutions which may be<br>endorsed or assigned to it, such guaranteed student loans held in the trusts as security for bonds
Page No. 6
of the state to be issued as and in the manner the commission shall decide. All guaranteed<br>student loans so held in the trusts and the collections therefrom and the increments thereto must<br>be held in special funds as the source of payment of bonds of North Dakota to be issued, none of<br>which bonds may constitute indebtedness of the state. The term "student" for the purposes of<br>this section and section 54-17-25 includes a parent borrower under chapter 15-62.1.
54-17-25.
Bonds authorized - Establishment of secondary market program.
Whenever the industrial commission decides that it is in the public interest to diminish the<br>investment of state funds in United States government guaranteed or reinsured or North Dakota<br>guaranteed student loans, that it will be difficult to divest the state of appreciable amounts of such<br>loans by piecemeal offering to the investing and saving public, that business conditions are<br>favorable to a state-sponsored program to consolidate state-held student loans, and to enlarge<br>private participation in such loans, or that the public will otherwise benefit, the commission may<br>by plenary resolution duly adopted in accordance with the provisions hereof authorize<br>preparation, sale, and issuance of revenue bonds of North Dakota in such amounts and at such<br>times and in such form, which may include the issuance of bonds the interest income on which is<br>subject to federal income taxes, as the commission shall determine to be for the public good.<br>The industrial commission may issue subordinate or residual bonds whenever the industrial<br>commission determines that it is appropriate or expedient to do so and the bonds may contain<br>such terms and provisions as the commission may determine. The commission may refund and<br>refinance the bonds from time to time as often as it is advantageous and in the public interest to<br>do so. The bonds shall be a charge upon a sufficient designated portion of the resources of the<br>student loan trusts, subject only to necessary administrative expenses of the trusts duly<br>appropriated out of the interest earning resources thereof. The bonds may bear such rate or<br>rates of interest as the commission may provide. The bonds must have all of the qualities and<br>incidents of negotiable paper and are not subject to taxation by the state of North Dakota or by<br>any county, municipality, or political subdivision therein. The bonds must be payable solely out of<br>the separate resources generated respectively from collection of payments on and earnings and<br>proceeds of United States government guaranteed or reinsured or North Dakota guaranteed<br>student loans, and must respectively so recite. They are not indebtedness of the state of North<br>Dakota or of any agency, board, department, or officer or agent thereof. Without limiting the<br>foregoing, the commission may request the organization of a nonprofit corporation meeting the<br>requirements of the Internal Revenue Code of 1954, as amended and redesignated as the<br>Internal Revenue Code of 1986 [Pub. L. 99-54], and as it may be amended from time to time,<br>and enter into one or more agreements with such corporation providing for the establishment of a<br>secondary market program in the state of North Dakota for the acquisition by the corporation of<br>such loans made pursuant to title IV, part B of the Higher Education Act of 1965 [Pub. L. 89-329;<br>79 Stat. 1236; Pub. L. 99-498; 100 Stat. 1353; 20 U.S.C. 1001 et seq.], as amended through<br>December 31, 1996, as the commission shall, in its discretion, deem advisable.
54-17-26. Bonds eligible for investment - Sale of bonds. Bonds issued under section
54-17-25 may be acquired and held by banks and by savings and loan associations of this state<br>as well as by all public trust funds. They may be issued and sold at public or private sale or by<br>negotiation as the industrial commission may direct and the commission may make, enter into,<br>and enforce all contracts or agreements necessary, convenient, or desirable for the purposes of<br>the commission or pertaining to any purchase or sale of the bonds or other investments or to the<br>performance of its duties and execution or carrying out of any of its powers under section<br>54-17-25.
54-17-27.
Grant program for home weatherization programs.
The industrial
commission or its designee shall administer a home weatherization grant program to provide<br>financial assistance to regional offices which administer the United States department of energy<br>home weatherization program.
Grant moneys must be used for direct consumer benefit
programs to support labor and material costs for roof repair and heating plant repair to effect<br>energy conservation. No funds may be used for administrative purposes.
54-17-28. Application for grants. Each regional office which administers the United
States department of energy home weatherization program may apply for the grants provided in<br>section 54-17-27 and this section under such reasonable guidelines as may be adopted by the
Page No. 7
industrial commission or its designee. Each application must be accompanied by a two-year<br>budget, including a productivity work plan. Each regional office is eligible for a base amount of<br>forty thousand dollars for fiscal year 1982 and forty-five thousand dollars for fiscal year 1983.
54-17-29.
Commission loan guarantees for seller-sponsored loans between
landowners and beginning farmers. Repealed by S.L. 1983, ch. 126, § 2.
54-17-30.
Procedure on default on guaranteed beginning farmer security loan.
Repealed by S.L. 1983, ch. 126, § 2.
54-17-31. Establishment and maintenance of adequate guarantee funds - Use of
lands and minerals trust - Appropriation. Repealed by S.L. 1983, ch. 126, § 2.
54-17-32. Resources trust fund - Commission responsibilities.
1.
The industrial commission may, within the limits of legislative appropriations, enter<br>into contracts with institutions of higher education in this state, or with other parties,<br>for the following purposes:
a.
Studies on the development of cogeneration systems.
b.
Studies on the promotion and development of energy conservation programs<br>and renewable energy sources.
c.
Studies of the feasibility of developing waste products utilization.
2.
The industrial commission may, within the limits of legislative appropriations, provide<br>for the making of grants in aid of those persons or entities doing research or<br>development with respect to energy conservation, renewable energy sources,<br>cogeneration, or waste products utilization. Grants under this subsection must be<br>made to persons or entities residing, located, or doing business in this state. No<br>grant made pursuant to this subsection may exceed ten thousand dollars in amount,<br>and grants may not be made for time periods which run beyond any fiscal biennium<br>during which the grant is made. As used in this subsection, "entity" means any firm,<br>partnership, corporation, limited liability company, cooperative, association, or other<br>business entity, and any governmental entity.
3.
The industrial commission may adopt rules to implement its power to make grants<br>and enter into contracts pursuant to this section. Any rules must be adopted in<br>accordance with chapter 28-32.
54-17-33.
State trust created - Agricultural mortgage secondary market.
The
industrial commission may establish a trust for the purpose of participating as an agricultural<br>mortgage marketing facility in the agricultural mortgage secondary market program established<br>pursuant to the Agricultural Credit Act [Pub. L. 100-233; 101 Stat. 1686; 12 U.S.C.<br>2279aa-2279aa-14], as amended through December 31, 1996. The industrial commission may<br>take any action necessary to qualify as a certified facility.
54-17-34. Definitions. As used in sections 54-17-34 through 54-17-34.5:
1.
"First-time farmer" means an individual who is a North Dakota resident who has not<br>at any time had any direct or indirect ownership interest in substantial farmland in<br>the operation of which the individual materially participated, who will be the principal<br>user of the farmland, and who will materially and substantially participate on the farm<br>of which the land is a part in the operation of the farm.
2.
"Substantial farmland" means any parcel of land unless the parcel is smaller than<br>thirty percent of the median size of a farm in the county in which the parcel is<br>located.
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54-17-34.1. Farm finance program. Acting as the farm finance agency, the industrial
commission may establish the first-time farmer finance program to encourage first-time farmers<br>to enter into and remain in the livelihood of agriculture and to provide first-time farmers a source<br>of financing at favorable rates and terms generally not available to them. The first-time farmer<br>finance program is established to allow first-time farmers to utilize the tax-exempt financing<br>provided for in the Internal Revenue Code of 1986, and any amended regulations adopted<br>thereunder.
54-17-34.2. First-time farmer participation. The first-time farmer finance program is
limited as required by applicable provisions of the Internal Revenue Code of 1986 and any<br>regulations adopted thereunder, as amended, and under the first-time farmer finance program:
1.
Financing may not be made to individuals with a net worth that exceeds the net<br>worth requirement of the beginning farmer revolving loan program administered by<br>the Bank of North Dakota and established by loan policy; and
2.
Financing may only be made to first-time farmers for the acquisition of land in the<br>state of North Dakota, livestock, farm improvements, and equipment to be used for<br>farming purposes and may not exceed an amount established under the Internal<br>Revenue Code of 1986, as amended.
54-17-34.3. Financing. Financing may be accomplished by the issuance of evidences
of indebtedness by the industrial commission acting as the farm finance agency and the entering<br>into of a financing agreement between the industrial commission acting as the farm finance<br>agency and lenders or individuals. Any financing agreement entered into between the industrial<br>commission and any lender or individual is payable as to principal and interest only from the<br>payments made thereon by the first-time farmer, and the financing agreement and any evidence<br>of indebtedness may not constitute a debt of the state of North Dakota or any agency or<br>instrumentality thereof within the meaning of any constitutional or statutory debt limit.
54-17-34.4. Policies. Before exercising any of its powers as the farm finance agency
pursuant to subsection 2 of section 54-17-09, the industrial commission shall adopt policies and<br>rules relating to any or all of the following:
1.
Procedures and documentation for the submission of requests for financing; and
2.
Provisions necessary for compliance with the Internal Revenue Code of 1986 and<br>any regulations adopted thereunder, as amended.
54-17-34.5. Financing exempt from taxation - Exception. Evidences of indebtedness
issued under the provisions of the first-time farmer finance program, and the interest therefrom,<br>is exempt from any taxes of the state, except inheritance, estate, and transfer taxes.
54-17-35. Governmental public purpose - Electricity transmission export constraint
priority. The legislative assembly finds and declares that it is an essential governmental function<br>and public purpose to assist with the removal of electrical transmission export constraints and to<br>assist with the upgrading and expansion of the region's electrical transmission grid in order to<br>facilitate the development of the state's abundant natural resources for export to the region's<br>consumers.
The industrial commission shall give priority to those projects, processes, or
activities that assist with the resolution of electricity transmission export constraints in this state.
54-17-36. Lease of municipal waterworks and sewage systems. Notwithstanding
any other provision of law, the state, acting by and through its industrial commission, may enter<br>agreements to lease all or part of, or an undivided or other interest in, the plant or equipment of<br>any waterworks, mains, or water distribution system and any property related thereto pursuant to<br>subsection 5 of section 40-33-01, subsection 12 of section 61-24.5-09, or subsection 23 of<br>section 61-35-12 or any sewage system and all related property for the collection, treatment,<br>purification, and disposal in a sanitary manner of sewage pursuant to section 40-34-19 or<br>subsection 23 of section 61-35-12 to or from a municipality or other political subdivision or
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agency of the state, or to or from any person, for such compensation and upon such terms and<br>conditions as the parties under such agreement may stipulate. For the purposes of this section,<br>such agreements include any lease, sublease, purchase agreement, lease-purchase agreement,<br>installment purchase agreement, leaseback agreement, or other contract, agreement,<br>instrument, or arrangement pursuant to which any rights, interests, or other property are<br>transferred to, by, or from any party to, by, or from one or more parties, and any related<br>documents entered or to be entered, including any operating agreement, service agreement,<br>indemnity agreement, participation agreement, loan agreement, or payment undertaking<br>agreement. Any lease obligation entered under this section is payable solely from revenues to<br>be derived by the state or any agency or institution of the state from the ownership, sale, lease,<br>disposition, and operation of the plant or equipment of any waterworks, mains, or water<br>distribution system and any property related thereto or sewage systems and all related property<br>for the collection, treatment, purification, and disposal in a sanitary manner of sewage; any funds<br>or investments permitted under state law, and any earnings thereon, to the extent pledged<br>therefor; revenues to be derived by the state from any support and operating agreement, service<br>agreement, or any other agreement relating to the waterworks, mains, and water distribution<br>system or sewage system; funds, if any, appropriated annually by the legislative assembly; and<br>income or proceeds from any collateral pledged or provided therefor. A lease obligation entered<br>under this section does not constitute an indebtedness of the industrial commission, the state, or<br>any agency or officer or agent thereof, or a pledge of the full faith and credit or unlimited taxing<br>resources of the industrial commission, the state, or any agency or officer or agent thereof. The<br>industrial commission may authorize the public finance authority or another agency or institution<br>of the state to do and perform any acts and things authorized by this section, including making,<br>entering, and enforcing all contracts or agreements necessary, convenient, or desirable for the<br>purposes of this section.
54-17-37.
(Effective through July 31, 2011) Tribal-state guaranty program -
Continuing appropriation.
1.
The industrial commission shall establish at the Bank of North Dakota a guaranty<br>program for a business located in the state which contracts with a business located<br>in the state which is either owned by one of the five North Dakota Indian tribes or<br>which is an American Indian-owned small business located in this state.
The
industrial commission shall establish program guidelines and shall establish program<br>application forms. The industrial commission shall adopt policies and procedures as<br>necessary to implement this program. The Bank of North Dakota may charge fees<br>to participants in the program. The industrial commission shall limit participation in<br>the program so that the cumulative value of the guaranteed portion of the<br>receivables under the program does not exceed five million dollars at any one time.
2.
In the case of a payment dispute, the program must provide a participating North<br>Dakota business with sure and certain payment of receivable owing under the<br>contract between the North Dakota business and the tribal-owned or Indian-owned<br>business.
Any litigation over a payment dispute must be conducted by the
participating businesses and is not the responsibility of the industrial commission,<br>the Bank of North Dakota, or this guaranty program. The industrial commission shall<br>establish a guaranty reserve board. The board membership, which may not exceed<br>twelve members, consists of the attorney general or the attorney general's<br>representative, who serves as chairman of the board; the president of the Bank of<br>North Dakota or the president's representative; one representative for each<br>participating tribal government; and representatives of private business equal to the<br>number of tribal government representatives serving on the board.
Each North
Dakota Indian tribe that participates in the program may appoint one board member<br>to serve a two-year term. A tribally appointed member serves at the pleasure of the<br>appointing tribal government. The board members representing private business<br>serve two-year terms to run concurrently with the corresponding tribally appointed<br>member. The members of the industrial commission shall take turns appointing the<br>board members representing private business, in the following order:
governor,
attorney general, and agriculture commissioner. Each member representing private
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business serves at the pleasure of the industrial commission and any vacant position<br>must be filled by an individual appointed by the member of the industrial commission<br>making the original appointment. The board must meet annually, or more often as<br>may be determined necessary by the chairman, for the purpose of reviewing<br>participation in the program and conducting the business of the board.
3.
To participate in the program, all parties must agree that for purposes of the<br>program and related business contract issues any claim or dispute between any of<br>the parties are governed by the laws of the state of North Dakota and any claim or<br>dispute between the parties must be brought in Burleigh County district court in<br>Bismarck or by agreement of the parties may be brought to a mutually agreed-upon<br>arbitrator. To participate in the program, the business owned by a North Dakota<br>Indian tribe or the Indian-owned small business must have secured the pledge of a<br>North Dakota Indian tribe or a tribally approved entity to guarantee repayment to the<br>guaranty program for any payments made due to payment disputes.
This
repayment guarantee must be consistent with the policies and procedures<br>established by the industrial commission to implement this program.
4.
If the Bank of North Dakota provides a North Dakota business with a payment due to<br>a payment dispute, as a guarantor the board is an assignee and as such may seek<br>reimbursement from a third party or from the North Dakota business for any<br>payment made under the program.
54-17-38. Biomass incentive and research program. Repealed by S.L. 2009, ch. 521,
§ 6.
54-17-39. Biomass incentive and research fund. Repealed by S.L. 2009, ch. 521, § 6.
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Document Outline
chapter 54-17 industrial commission
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