SB 2390 — Summary (North Dakota, 2025)
Status / timeline
- Introduced: March 12, 2025. Reengrossed and amended through committee and conference processes.
- Enrolled and filed with Secretary of State / signed by Governor: May 2, 2025.
- Sponsors (as enrolled): Senators Wanzek, Myrdal, Thomas; Representatives Brandenburg, Beltz, Kempenich.
Purpose and intent
- Establish a statewide "Rural Catalyst" program to support quality‑of‑life and economic development projects in rural North Dakota communities by creating (1) a Rural Catalyst Committee, (2) a Rural Catalyst Grant Program administered by the Department of Commerce, and (3) a Rural Catalyst Fund in the state treasury. The act also provides a one‑time transfer/appropriation to seed the fund.
Key provisions
1. Definitions
- Amends section 54‑40.1‑02 (regional planning council chapter) with standard definitions used in the chapter.
Rural Catalyst Committee (new section)
- Purpose: assist communities with quality‑of‑life and economic development projects in partnership with regional councils.
- Membership:
- One individual from each regional council (appointed by regional council executive boards).
- Two members‑at‑large from eligible communities or organizations that serve them (appointed by the governor).
- One legislator (appointed by the chair of Legislative Management).
- The governor (or designee) and the Department of Commerce commissioner (or designee) — governor and commissioner are permanent members.
- Terms: four years for appointed public members; governor serves as chair (or designee); vice‑chair selected by chair.
- Meetings: at least semiannually; committee develops program guidelines, eligibility, reporting, and matching requirements.
- Compensation / expenses: members reimbursed under existing state rules; non‑state employed members receive $135 per day for meetings/duties.
Rural Catalyst Grant Program (new section)
- Administered by the Department of Commerce; department provides award recommendations to the committee.
- Eligible project types: community & economic development, education, health & wellness, and preserving/reopening rural grocery stores.
- Population eligibility: projects serving communities with population of 4,500 or fewer.
- Award limits and targeting:
- Maximum grant award: $500,000 per project.
- At least 50% of program grant funds must be allocated to communities with populations under 1,500.
- Matching requirement (final version): grant recipients must provide at least $1 of nonstate matching funds for every $1 of state grant funds; matching may be cash or in‑kind; guidelines set by committee.
- Reporting and transparency:
- Department must maintain an online database of approved projects and their status.
- Biennial report due by September 1 of each even‑numbered year to Legislative Management and to appropriation committees of the next legislative assembly describing program results, projects funded, and matching funds raised.
Rural Catalyst Fund (new section)
- Created as a special fund in the state treasury, administered by the Department of Commerce.
- Fund moneys used for grants under the chapter, subject to legislative appropriation; interest credited to the fund.
Funding / appropriation
- Conference Committee / enrolled version provides a transfer of $2,500,000 from the Strategic Investment and Improvements Fund to the Rural Catalyst Fund during the 2025‑27 biennium.
- Appropriates $2,500,000 (one‑time) from the Rural Catalyst Fund to the Department of Commerce for the Rural Catalyst Grant Program for the 2025‑27 biennium.
Who is affected / likely impacts
- Rural communities (particularly those with populations ≤4,500, and especially those <1,500) seeking funding for community/economic development, education, health/wellness projects, or to preserve/reopen grocery stores.
- Regional councils (one representative each) and community organizations that will participate in program design and project selection.
- Department of Commerce: new administrative responsibilities (program administration, reporting, database maintenance).
- State budget: one‑time transfer/appropriation of $2.5 million to seed the fund; future grant distributions subject to legislative appropriation.
Procedural / operational notes
- Committee meets at least twice annually to review and approve grant applications; department issues biennial program performance reports to the Legislature.
- Grants capped per project ($500,000) and structured to leverage local (nonstate) matching funds.
- Program details (application process, scoring, eligible uses beyond the broad categories) will be implemented via committee guidelines and Department of Commerce rules and procedures.
