2013 North Dakota Century Code Title 54 State Government Chapter 54-17 Industrial Commission
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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 state of North Dakota,
certain utilities, industries, enterprises, including housing finance programs, and business
projects established by law must be known as the industrial commission of North Dakota, but
may be designated as the industrial commission. In the creation of the industrial commission, it
is the intention of the legislative assembly that all acts of the industrial 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 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 as the governor or a majority of the commission may determine. It must be provided by
the 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
general. The commission shall appoint a secretary and may employ other subordinate officers,
employees, and agents, on such terms as the commission determines proper. The commission
may require suitable bonds of its secretary or other subordinate officers, employees, or agents.
The commission shall fix the amount of the compensation of the commission's secretary,
officers, employees, and agents and the secretary's salary may exceed the maximum salary in
the grade established for the classification assigned under chapter 54-44.3. The compensation,
together with other expenditures for operation and maintenance of the general business of the
commission, must remain within the appropriation available in each year for such purpose. The
commission may set the compensation, within the limits of legislative appropriation, for
members 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 reimbursement for expenses, a salary, a per diem, or a combination of the three, as set
by the 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, 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 contain a meaningful financial
statement of each utility, industry, enterprise, and business project 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, industries,
enterprises, and business projects established, owned, undertaken, administered, or operated
by the state of North Dakota, except those carried on in penal, charitable, or educational
institutions or those conducted pursuant to chapter 65-08.1. All income earned on state moneys
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that are deposited or invested to the credit of the industrial commission or any agency, utility,
industry, enterprise, or business project operated, managed, controlled, or 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 industry, the mobile home and
manufactured housing industry, and homeowners and buyers, and in consultation with such
board may adopt rules and regulations for the conduct of its housing finance program which
may, among other matters, establish requirements for the type and purchase price of dwelling
units and multifamily facilities eligible to be financed, the income limits for eligible low or
moderate income persons or families, the interest rates and other terms of mortgage loans to be
financed, requirements relating to federal or private mortgage insurance or guarantees, and the
general terms and conditions for the issuance and security of housing 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 or
any national banking association located in North Dakota, state or federal savings and
loan association located in North Dakota, and federal housing administration approved
mortgagee or other mortgage banking institutions actively engaged in home mortgage
lending in North Dakota approved by the industrial commission.
2. "Multifamily housing facility" means any facility containing four or more residential
dwelling units; provided, that at least twenty percent of the units in each facility must
be held for occupancy by persons or families of low and moderate income for such
period of time as the industrial commission may determine and may include such
related public or private facilities intended for commercial, cultural, recreational,
community, or other civic purpose as the commission may approve.
3. "Persons and families of low or moderate income" means persons or families whose
financial means are insufficient, taking into account such factors as the industrial
commission shall deem relevant, to secure decent, safe, and sanitary housing
provided by private industry without the financial assistance afforded by the housing
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
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 programs:
1. Home mortgage finance program. A program or programs to provide financing or
refinancing of loans made by lenders, including second mortgage loans and leasehold
mortgage loans on tribal trust or other reservation lands, and leasehold mortgage
loans that are insured, guaranteed, or assisted through an affordable housing
program, to persons or families of low and moderate income for the purchase or
substantial rehabilitation of owner occupied, single-family residential dwelling units,
which includes mobile homes and manufactured housing. The commission may also
authorize a program to provide refinancing of loans previously made by lenders and
purchased under the home mortgage finance program.
2. Mobile home and manufactured housing finance program. A program or programs to
provide for the purchase or guaranty of a loan made by a lender to finance the
purchase of a mobile home or a manufactured housing unit other than on a real
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3.
4.
5.
6.
property mortgage basis. A program authorized under this subsection may provide
assistance in the development of low-income to moderate-income housing or to
otherwise assist a developing community in the state address an unmet housing need
or alleviate a housing shortage.
Multifamily housing finance program. A program or programs to provide financing
directly or indirectly of construction, permanent, and combined construction and
permanent mortgage loans, including participations in mortgage loans, for the
acquisition, construction, refurbishing, reconstruction, rehabilitation, or improvement of
multifamily housing facilities. As part of the program, the industrial commission, acting
in its capacity as a state housing finance agency, may enter a public and private
partnership with any interested private entity and accept any gift, grant, or other type of
financial aid or assistance, including a contribution to the housing incentive fund, to
provide financing for the construction or rehabilitation of a multifamily housing facility in
a developing community in the state to address an unmet housing need or alleviate a
housing shortage. A private entity participating in this program may reserve a
proportionate share of available units in the facility for occupancy by its workforce
based on its financial participation in the facility, in addition to any units held for
occupancy by individuals or families of low or moderate income.
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 lender on
residential real property or on land to be developed into residential real property, in
addition to a mortgage loan acquired or to be acquired under subsections 1 through 3.
A program authorized under this subsection may provide assistance in the
development of low to moderate income housing or to otherwise assist a developing
community in the state address an unmet housing need or alleviate a housing
shortage.
Home improvement finance program. A program or programs to provide full or partial,
indirect financing of improvements to existing residential dwelling units.
Housing grant program. A program or programs to provide a grant other than those
authorized by section 54-17-07.6 to encourage and promote housing availability for
persons of low or moderate income or to otherwise assist a developing community in
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 indebtedness of the state. The
principal of and interest on such bonds are payable only from 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 face. The bonds may be sold at
public or private sale, must mature not more than fifty years from their date or dates, and must
contain such terms and provisions as the commission shall determine. The commission may
capitalize from bond proceeds all expenses incidental to the issuance of the bonds or to the
applicable housing finance program, including, without limitation, 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, and administer any grant, contribution, or loan of funds, property, or other
aid in any form from the federal government or from any other source, and may do all things
necessary to qualify for any grant, contribution, or loan under any federal program, including
those things necessary to qualify for assistance under the federal housing programs in effect
from time to time. Upon submission of written notice to the industrial commission, a housing
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authority established under chapter 23-11 may elect to exercise the authority granted to the
industrial commission under this section and preempt the industrial commission from acting with
regard to tenant-based housing certificates and vouchers or successor programs within the area
of operation of that housing authority or may elect to enter an agreement with the industrial
commission to accept, exercise, and administer any housing aid or assistance upon the terms
and conditions agreed upon by the parties. For the purposes of this section, "area of operation"
includes any political subdivision that lawfully contracts with the local housing authority to act as
a local housing authority for that political subdivision and any political subdivision that has its
certificates and vouchers or successor programs assigned by the industrial commission to the
local housing authority under 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 loans made pursuant to any of
its housing finance programs or purchase of loans and mortgage loans to be purchased by it,
prepayment penalties, restrictions upon assumability, default provisions, rights to accelerate,
rights to increase the interest rate, and any other terms the commission may determine to be
necessary or desirable to assure the repayment of its housing revenue bonds and, unless such
conditions of origination or other terms are not required by the commission, the exemption from
federal income taxes of the interest payable on its housing revenue bonds under the Internal
Revenue Code of 1986. All such terms are enforceable by the originator, the commission, or any
successor holder of the loans or mortgage loans unless 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 agency's
programs, obtained directly or indirectly, except for routine credit inquiries or as
required by court order.
2. Internal or interagency memorandums or letters of a personal nature which are not
available by law to a party, except insofar as they are available in litigation with the
agency.
3. Personal financial statements which the industrial commission requires of any housing
finance agency employee or member of the housing finance agency's 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, or other instruments affecting
liens on, title to, or interest in real estate, the executive director or the director of financial
programs may execute and acknowledge such instruments on behalf of 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 acquisition of residential real property and
related personal property or interests therein through purchase, lease, gift, grant, bequest, or
otherwise to maintain, repair, improve, sell, or convey leasehold interests in that real and
personal property to, or for the benefit of, persons of low or 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 the respective taxing districts where the
property is located. Taxes on any property acquired under this section must be paid in a timely
manner for any year or pro rata portion of a year by any housing authority or housing acquisition
organization holding title to the property.
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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 made. The money and property
pledged and received by the industrial commission acting in its capacity as the state housing
finance agency, except for general agency money or property, is immediately subject to the lien
of the pledge without any physical delivery thereof or further act, and the lien of any pledge is
valid and binding as against all parties having claims of any kind in tort, contract, or otherwise
against the industrial commission acting in its capacity as the state housing finance agency,
irrespective of whether the parties have notice thereof. Neither the resolution nor any other
instrument by which a pledge is created is required to be recorded to constitute constructive
notice of the existence of the pledge.
54-17-07.12. Housing finance agency as wholesale servicing mortgage lender.
The business and transactions of the housing finance agency in addition to other matters
specified in this chapter may include anything that any corporation or limited liability company
lawfully may do in conducting a wholesale servicing mortgage lending business, except as it is
restricted by the provisions of this chapter. This provision may not be held in any way to limit or
qualify either the powers of the industrial commission granted by or the functions of the housing
finance agency as defined in this chapter. The powers of the industrial commission and the
functions of the housing finance agency must be implemented through actions taken and
policies adopted by the industrial commission. For purposes of this chapter, a wholesale
servicing mortgage lender is a mortgage loan wholesaler that neither solicits mortgage
applications nor deals directly with mortgage loan applicants, it purchases loans from mortgage
originators, pools the loans, and then sells them to private or governmental investors while
retaining the servicing rights.
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. It may do
any and all things necessary or expedient in conducting the business of the industries, 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:
1. Determine the location of all utilities, industries, enterprises, and business projects
established, owned, undertaken, administered, or operated by the state.
2. Make rules, regulations, orders, and bylaws for the management and operation, and
for the transaction of the business, of such utilities, industries, enterprises, and
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 established, owned, undertaken, administered, or operated by the state, and
to accomplish the 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
eminent domain, all necessary property or property rights, and hold and possess or
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
improvements thereon.
4. Generally use properties acquired and improvements made so as to promote such
utilities, industries, enterprises, and business projects.
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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 project established,
owned, undertaken, administered, or operated by the state. It may constitute such manager its
general agent in the performance of its duties in the particular utility, industry, enterprise, or
business project in which the manager is engaged, but subject, nevertheless, in such agency to
the supervision, limitation, and control of the commission. It shall employ such contractors,
architects, builders, attorneys, sales agents, clerks, accountants, and other experts, agents, and
servants, as in the judgment of the commission the interests of the state may require, and shall
define the duties, designate the titles, and fix the compensation and bonds of 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 business project established, owned, undertaken, administered, or
operated by the state shall appoint and employ such deputies, assistants, and other
subordinates, and such contractors, architects, builders, attorneys, sales agents, clerks,
accountants, and other experts, agents, and servants, as in the manager's judgment are
required by the interests of the utility, industry, 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 operated by the state,
together with other expenditures for the operation and maintenance thereof, must remain within
the appropriation and earnings lawfully available in each year for 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 this chapter, whether by the commission or by any manager
of any utility, industry, enterprise, or business project of the state. Any such removal may be
made whenever in the judgment of the commission the public interests require it. All
appointments and removals contemplated by this chapter must be made as the commission
shall deem most fit to promote the efficiency of the public service.
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 sold, incidental to any utility, industry, enterprise, or business project of the state, and
shall fix the rates and charges for any and all services rendered thereby. In fixing such prices,
rates, and charges, the commission shall make provision for accumulating a fund with which to
replace, in 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 success of, any of the utilities, industries, enterprises, and
business projects under its management, and of all matters which directly or indirectly may
affect the methods, operations, processes, products, or results thereof. In aid of any such
investigation the commission may summon and compel the attendance of witnesses and
examine them under oath. Any member 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. Witnesses other than those in the employ of the state are entitled
to the same fees as witnesses in civil cases in the district court.
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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 that any testimony or evidence sought to be elicited or produced on the examination
may tend to incriminate the person giving or producing it, or may expose the person to public
ignominy, does not excuse the person from testifying or producing evidence, documentary or
otherwise, but no person may be prosecuted or subjected to any penalty or forfeiture for and on
account of any matter or thing concerning which the person may testify or produce such
evidence. Such person 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 provisions of this chapter to be transcribed and filed in the office of the commission, at the
seat of government, within ten days after it is taken, or as soon thereafter as practicable. When
so filed 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 produce evidence when required, must be reported by the
commission to the district court or any 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 negotiating the bonds of the state of
North Dakota in such amounts and in such manner as may 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, § 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 guaranteed or reinsured student loans and
North Dakota guaranteed student loans, belonging to the state of North Dakota or to any of its
agencies, departments, or institutions which may be endorsed or assigned to it, such
guaranteed student loans held in the trusts as security for bonds of the state to be issued as
and in the manner the commission shall decide. All guaranteed student loans so held in the
trusts and the collections therefrom and the increments thereto must be held in special funds as
the source of payment of bonds of North Dakota to be issued, none of which bonds may
constitute indebtedness of the state. The term "student" for the purposes of 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
investment of state funds in United States government guaranteed or reinsured or North Dakota
guaranteed student loans, that it will be difficult to divest the state of appreciable amounts of
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such loans by piecemeal offering to the investing and saving public, that business conditions are
favorable to a state-sponsored program to consolidate state-held student loans, and to enlarge
private participation in such loans, or that the public will otherwise benefit, the commission may
by plenary resolution duly adopted in accordance with the provisions hereof authorize
preparation, sale, and issuance of revenue bonds of North Dakota in such amounts and at such
times and in such form, which may include the issuance of bonds the interest income on which
is subject to federal income taxes, as the commission shall determine to be for the public good.
The industrial commission may issue subordinate or residual bonds whenever the industrial
commission determines that it is appropriate or expedient to do so and the bonds may contain
such terms and provisions as the commission may determine. The commission may refund and
refinance the bonds from time to time as often as it is advantageous and in the public interest to
do so. The bonds shall be a charge upon a sufficient designated portion of the resources of the
student loan trusts, subject only to necessary administrative expenses of the trusts duly
appropriated out of the interest earning resources thereof. The bonds may bear such rate or
rates of interest as the commission may provide. The bonds must have all of the qualities and
incidents of negotiable paper and are not subject to taxation by the state of North Dakota or by
any county, municipality, or political subdivision therein. The bonds must be payable solely out
of the separate resources generated respectively from collection of payments on and earnings
and proceeds of United States government guaranteed or reinsured or North Dakota
guaranteed student loans, and must respectively so recite. They are not indebtedness of the
state of North Dakota or of any agency, board, department, or officer or agent thereof. Without
limiting the foregoing, the commission may request the organization of a nonprofit corporation
meeting the requirements of the Internal Revenue Code of 1954, as amended and redesignated
as the Internal Revenue Code of 1986 [Pub. L. 99-54], and as it may be amended from time to
time, and enter into one or more agreements with such corporation providing for the
establishment of a secondary market program in the state of North Dakota for the acquisition by
the corporation of such loans made pursuant to title IV, part B of the Higher Education Act of
1965 [Pub. L. 89-329; 79 Stat. 1236; Pub. L. 99-498; 100 Stat. 1353; 20 U.S.C. 1001 et seq.],
as amended through 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 as well as by all public trust funds. They may be issued and
sold at public or private sale or by negotiation as the industrial commission may direct and the
commission may make, enter into, and enforce all contracts or agreements necessary,
convenient, or desirable for the purposes of the commission or pertaining to any purchase or
sale of the bonds or other investments or to the performance of its duties and execution or
carrying out of any of its powers under section 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 financial assistance to regional offices which administer the United States
department of energy 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 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 section 54-17-27 and this section
under such reasonable guidelines as may be adopted by the industrial commission or its
designee. Each application must be accompanied by a two-year budget, including a productivity
work plan. Each regional office is eligible for a base amount of forty thousand dollars for fiscal
year 1982 and forty-five thousand dollars for fiscal year 1983.
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54-17-29. Commission loan guarantees
landowners and beginning farmers.
Repealed by S.L. 1983, ch. 126, § 2.
for
seller-sponsored
loans
between
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 into
contracts with institutions of higher education in this state, or with other parties, for the
following purposes:
a. Studies on the development of cogeneration systems.
b. Studies on the promotion and development of energy conservation programs 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
for the making of grants in aid of those persons or entities doing research or
development with respect to energy conservation, renewable energy sources,
cogeneration, or waste products utilization. Grants under this subsection must be
made to persons or entities residing, located, or doing business in this state. No grant
made pursuant to this subsection may exceed ten thousand dollars in amount, and
grants may not be made for time periods which run beyond any fiscal biennium during
which the grant is made. As used in this subsection, "entity" means any firm,
partnership, corporation, limited liability company, cooperative, association, or other
business entity, and any governmental entity.
3. The industrial commission may adopt rules to implement its power to make grants and
enter into contracts pursuant to this section. Any rules must be adopted in 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 mortgage marketing facility in the agricultural mortgage secondary market program
established pursuant to the Agricultural Credit Act [Pub. L. 100-233; 101 Stat. 1686; 12 U.S.C.
2279aa-2279aa-14], as amended through December 31, 1996. The industrial commission may
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 at
any time had any direct or indirect ownership interest in substantial farmland in the
operation of which the individual materially participated, who will be the principal user
of the farmland, and who will materially and substantially participate on the farm 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 thirty
percent of the median size of a farm in the county in which the parcel is located.
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 to enter into and remain in the livelihood
of agriculture and to provide first-time farmers a source of financing at favorable rates and terms
generally not available to them. The first-time farmer finance program is established to allow
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first-time farmers to utilize the tax-exempt financing provided for in the Internal Revenue Code
of 1986, and any amended regulations adopted 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 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 worth
requirement of the beginning farmer revolving loan program administered by 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 state
of North Dakota, livestock, farm improvements, and equipment to be used for farming
purposes and may not exceed an amount established under the Internal 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 into of a financing
agreement between the industrial commission acting as the farm finance agency and lenders or
individuals. Any financing agreement entered into between the industrial commission and any
lender or individual is payable as to principal and interest only from the payments made thereon
by the first-time farmer, and the financing agreement and any evidence of indebtedness may not
constitute a debt of the state of North Dakota or any agency or 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 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 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, 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 and
public purpose to assist with the removal of electrical transmission export constraints and to
assist with the upgrading and expansion of the region's electrical transmission grid in order to
facilitate the development of the state's abundant natural resources for export to the region's
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 agreements to lease all or part of, or an undivided or other interest in,
the plant or equipment of any waterworks, mains, or water distribution system and any property
related thereto pursuant to subsection 5 of section 40-33-01, subsection 12 of section
61-24.5-09, or subsection 23 of section 61-35-12 or any sewage system and all related property
for the collection, treatment, purification, and disposal in a sanitary manner of sewage pursuant
to section 40-34-19 or subsection 23 of section 61-35-12 to or from a municipality or other
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political subdivision or agency of the state, or to or from any person, for such compensation and
upon such terms and conditions as the parties under such agreement may stipulate. For the
purposes of this section, such agreements include any lease, sublease, purchase agreement,
lease-purchase agreement, installment purchase agreement, leaseback agreement, or other
contract, agreement, instrument, or arrangement pursuant to which any rights, interests, or
other property are transferred to, by, or from any party to, by, or from one or more parties, and
any related documents entered or to be entered, including any operating agreement, service
agreement, indemnity agreement, participation agreement, loan agreement, or payment
undertaking agreement. Any lease obligation entered under this section is payable solely from
revenues to be derived by the state or any agency or institution of the state from the ownership,
sale, lease, disposition, and operation of the plant or equipment of any waterworks, mains, or
water distribution system and any property related thereto or sewage systems and all related
property for the collection, treatment, purification, and disposal in a sanitary manner of sewage;
any funds or investments permitted under state law, and any earnings thereon, to the extent
pledged therefor; revenues to be derived by the state from any support and operating
agreement, service agreement, or any other agreement relating to the waterworks, mains, and
water distribution system or sewage system; funds, if any, appropriated annually by the
legislative assembly; and income or proceeds from any collateral pledged or provided therefor. A
lease obligation entered under this section does not constitute an indebtedness of the industrial
commission, the state, or any agency or officer or agent thereof, or a pledge of the full faith and
credit or unlimited taxing resources of the industrial commission, the state, or any agency or
officer or agent thereof. The industrial commission may authorize the public finance authority or
another agency or institution of the state to do and perform any acts and things authorized by
this section, including making, entering, and enforcing all contracts or agreements necessary,
convenient, or desirable for the purposes of this section.
54-17-37. Tribal-state guaranty program - Continuing appropriation.
Expired under S.L. 2007, ch. 461, § 1.
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.
54-17-40. (Effective through June 30, 2015) Housing incentive fund - Continuing
appropriation - Report to budget section.
1. The housing incentive fund is created as a special revolving fund at the Bank of North
Dakota. The housing finance agency may direct disbursements from the fund and a
continuing appropriation from the fund is provided for that purpose.
2. After a public hearing, the housing finance agency shall create an annual allocation
plan for the distribution of the fund. At least twenty-five percent of the fund must be
used to assist developing communities to address an unmet housing need or alleviate
a housing shortage. The agency may collect a reasonable administrative fee from the
fund, project developers, applicants, or grant recipients.
The annual allocation plan must give first priority through its scoring and ranking
process to housing for essential service workers. For purposes of this subsection,
"essential service workers" means individuals employed by a city, county, school
district, medical or long-term care facility, the state of North Dakota, or others as
determined by the housing finance agency who fulfill an essential public service.
The second priority in the annual allocation plan must be to provide housing for
individuals and families of low or moderate income. For purposes of this second
priority, eligible income limits are determined as a percentage of median family income
as published in the most recent federal register notice. Under this second priority, the
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3.
4.
5.
annual allocation plan must give preference to projects that benefit households with
the lowest income and to projects that have rent restrictions at or below department of
housing and urban development published federal fair market rents or department of
housing and urban development section 8 payment standards.
The housing finance agency shall maintain a register reflecting the number of
housing units owned or master leased by cities, counties, school districts, or other
employers of essential service workers. This register must also reflect those entities
that are providing rent subsidies for their essential workers. The housing finance
agency shall report quarterly to the budget section of the legislative management on
the progress being made to reduce the overall number of units owned, master leased,
or subsidized by these entities. This report must include a listing of projects approved
and number of units within those projects that provide housing for essential service
workers.
The housing finance agency shall adopt guidelines for the fund so as to address
unmet housing needs in this state. Assistance from the fund may be used solely for:
a. New construction, rehabilitation, or acquisition of a multifamily housing project;
b. Gap assistance, matching funds, and accessibility improvements;
c. Assistance that does not exceed the amount necessary to qualify for a loan using
underwriting standards acceptable for secondary market financing or to make the
project feasible; and
d. Rental assistance, emergency assistance, or targeted supportive services
designated to prevent homelessness.
Eligible recipients include units of local, state, and tribal government; local and tribal
housing authorities; community action agencies; regional planning councils; and
nonprofit organizations and for-profit developers of multifamily housing. Individuals
may not receive direct assistance from the fund.
Except for subdivision d of subsection 3, assistance is subject to repayment or
recapture under the guidelines adopted by the housing finance agency. Any assistance
that is repaid or recaptured must be deposited in the fund and is appropriated on a
continuing basis for the purposes of this section.
54-17-41. (Effective through June 30, 2015) Report.
Upon request, the housing finance agency shall report to the industrial commission on the
activities of the housing incentive fund.
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