Conference committee approves amendment to HB 1619 to make $15 million one‑time SIF loan for long‑term care projects

A conference committee on House Bill 1619 voted to adopt an amendment that converts a proposed revolving loan fund for long‑term care infrastructure into a one‑time $15,000,000 loan from the State Investment Fund (SIF) to the Bank of North Dakota (BND).

The change, offered by Senator Thomas and seconded by Representative Anderson, also standardizes interest at 2% for comparable infrastructure loans, sets repayment terms for the program and specifies that proceeds and interest payments from the loan will be returned to the SIF. The motion passed on a roll call with members voting in favor.

The amendment replaces a revolving loan fund model with a single SIF loan and instructs BND to use its existing loan process to advertise the opportunity, coordinate with the Long Term Care Association and other interested parties, accept applications and evaluate projects on need and value to state residents. "So instead of it being a revolving loan fund, it'll be a ... one time funding from SIF for a loan," Senator Thomas said while walking the committee through the draft amendment.

Committee members narrowed several program details during debate. The committee agreed to a 20‑year repayment schedule for loans that had previously been written as 30 years in the draft. The amendment also adjusts a per‑item funding figure discussed during committee: a line in the draft that read $10,000,000 was changed to $15,000,000, and another repayment reference was changed from 30 years to 25 years for the affected provision as incorporated in the motion. "Some of the concern ... was with $15,000,000, if there was a, let's say, a $10,000,000 grant that leaves $5,000,000 ... is 30 years really a practical repayment term for that small ... investment?" Senator Thomas said, describing the committee's reasoning for shortening the repayment term for particular uses.

Not all members began fully aligned on term length; Senator Scheble questioned a 30‑year schedule and flagged the lost earnings a low rate could create, saying, "if I could get a 30‑year loan for 2%, why would I ever make a payment? I mean, because I could invest my payment and make money ... so I think it's overkill with the 30 years myself." The committee ultimately set the loan term in the amendment at 20 years and left one provision at 25 years where noted in the motion.

At the committee's clarification, members confirmed the amendment adopts draft 02/2006 with the listed changes: (1) the SIF funding title changed to one‑time funding to be made available to BND; (2) page 2, line 10 repayment from 30 to 20 years; (3) page 2, line 23 funding changed from $10,000,000 to $15,000,000; (4) a referenced 30‑year repayment in line 26 changed to 25 years; and (5) proceeds from payments return to the SIF. Representative Anderson seconded the motion.

The committee took a roll call after discussion. Committee members recorded voting in favor included Chairman Bosch (yes), Representative Anderson (yes), Representative Scott (yes), Chairman Davidson (aye), Senator Shively (aye) and Senator Thomas (aye). The committee chair said the conference committee had concluded its business and that the conference report would be adopted during the full legislative session before the final bill is passed.

The amendment gives BND authority to publicize the loan opportunity and evaluate applications under criteria the bank uses for other infrastructure loans. The committee left several implementation details to BND and to future work; members asked for continued engagement with long‑term care stakeholders and clarity on repayment mechanics for smaller renovation projects.

The committee closed without taking additional amendments; Senator Thomas said he would carry the conference report on the legislative side indicated.