SB 2403 — AN ACT to amend and reenact section 6-09-47 of the North Dakota Century Code, relating to a medical facility emergency operating loan program under the medical facility infrastructure loan fund; to provide an appropriation; to provide a transfer; to provide an effective date; and to provide an expiration date.

Summary

Relating to a medical facility emergency operating loan program under the medical facility infrastructure loan fund; to provide an appropriation; to provide a transfer; to provide an effective date; and to provide an expiration date.

Bill Text

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill amends the medical facility infrastructure loan program to include an emergency operating loan program for local nonprofit hospitals and provides a one-time appropriation of $5 million for these loans.

• 6-09-47

  The Bank shall administer a medical facility emergency operating loan program to provide emergency operating loans to local nonprofit hospitals located in cities with a population of fewer than two thousand five hundred according to the most recent decennial census.

  Introduces an emergency operating loan program for small nonprofit hospitals.

• 6-09-47

  To be eligible for an emergency operating loan under this subsection, the governing board of a health care facility shall: (1) Submit an application to the Bank by March 31, 2026; (2) Provide financial information as requested by the Bank to determine eligibility, including information on alternative financing and other funding sources; and (3) Provide an updated operating plan and cash flow projections indicating the feasibility of future operations after restructuring and sufficient financial resources to address any operating deficit and to repay the loan.

  Establishes eligibility criteria for the emergency operating loans.

• 6-09-47

  A medical facility emergency operating loan under this subsection: (1) May not exceed five million dollars per qualified applicant; (2) Must have an annual interest rate that does not exceed two percent; and (3) Must have a maximum term that does not exceed eleven years, unless a shorter term is required based on an analysis by the Bank, with the first year of the loan eligible for interest-only payments.

  Defines the terms and limits for the new emergency operating loans.

• 6-09-47

  6. The Bank shall administer a medical facility emergency operating loan program to provide emergency operating loans to local nonprofit hospitals located in cities with a population of fewer than two thousand five hundred according to the most recent decennial census.

  Removes the previous section that specified the emergency operating loan program since it is being entirely rewritten.

• Section 2

  There is appropriated out of any moneys in the general fund in the state treasury, not otherwise appropriated, the sum of $5,000,000, which the office of management and budget shall transfer to the medical facility infrastructure loan fund for a medical facility operating loan program, during the period beginning with the effective date of this Act and ending June 30, 2027. The appropriation under this section is considered a one-time funding item.

  Appropriates $5 million from the general fund to support the medical facility operating loan program.

• 6-09-47

  Funds in the medical facility infrastructure Moneys in the fund may be used for loans as provided under this section and to pay the costs of administration of the fund. Annually, the Bank may deduct a service fee for administering the medical facility infrastructure fund maintained under this section.

  Clarifies the use of funds for administrative costs of the loan program.

• 6-09-47

  6.7. → 6.7. Funds in the medical facility infrastructureMoneys in the fund may be used for loans as provided under this section and to pay the costs of administration of the fund. Annually, the Bank may deduct a service fee for administering the medical facility infrastructure fund maintained under this section.

  Reorders the numbering for clarity without changing content.

Action History

1. January 28, 2026

   Filed with Secretary Of State 01/23

2. January 23, 2026

   Signed by Governor 01/23

3. January 23, 2026

   Sent to Governor

4. January 23, 2026

   Signed by President

5. January 23, 2026

   Signed by Speaker

6. January 23, 2026

   Returned to Senate

7. January 23, 2026

   Second reading, passed, yeas 80 nays 12

8. January 22, 2026

   Engrossment placed on calendar 22 0 1

9. January 22, 2026

   Introduced, first reading, referred Joint Appropriations Committee

10. January 22, 2026

    Received from Senate

11. January 22, 2026

    Second reading, passed, yeas 46 nays 0

12. January 22, 2026

    Amendment adopted, placed on calendar

13. January 22, 2026

    Reported back amended, do pass, amendment placed on calendar 15 0 1

14. January 21, 2026

    Committee Hearing 02:30

15. January 21, 2026

    Introduced, first reading, referred Joint Appropriations Committee

Sponsors

• Karen M. Rohr · Cosponsor
• Dawson Holle · Cosponsor
• Donald Schaible · Primary

Votes

Subjects