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.
SB 2403 expands North Dakota’s medical facility infrastructure loan law by adding a new emergency operating loan program for qualifying nonprofit hospitals, while also continuing the existing infrastructure loan program. Under the bill, the Bank of North Dakota would continue to administer low-interest loans for major medical facility construction projects that improve health care infrastructure or access, with project eligibility, loan caps, repayment terms, and completion deadlines specified in statute. The bill also creates a separate emergency operating loan option for local nonprofit hospitals in cities under 2,500 population, aimed at helping those facilities address operating deficits, restructure, and maintain future viability.
The bill appropriates $5 million from the general fund and directs the Office of Management and Budget to transfer that amount to the medical facility infrastructure loan fund for the emergency operating loan program. The new operating-loan authority is temporary, with applications due by March 31, 2026, and the section authorizing the program expiring June 30, 2037. The bill takes effect immediately upon filing, and the fund remains a revolving fund supported by repayments, interest, and continuing appropriations for lending and administration.
SB 2403 amends section 6-09-47 of the North Dakota Century Code to broaden the Bank of North Dakota’s authority over the medical facility infrastructure loan fund. It adds a new statutory loan program for emergency operating support to small-town nonprofit hospitals, while preserving the existing infrastructure construction loan program for larger capital projects. The bill also creates a one-time $5 million general fund transfer to capitalize the new operating-loan activity, and it confirms continuing appropriation authority, audit requirements, and repayment handling for the revolving fund. The measure directly affects the Bank of North Dakota, nonprofit health care providers, and especially rural hospitals in small communities that may face short-term financial distress.
The overall sentiment around SB 2403 appears strongly supportive. The bill passed the Senate unanimously and the House by a substantial margin, indicating broad bipartisan agreement that the state should provide targeted financial assistance to medical facilities, particularly rural nonprofit hospitals. The lack of committee transcript material suggests there was little recorded public controversy in the available record, and the vote totals indicate the proposal was generally viewed as a practical response to health care infrastructure and operating challenges.
The main points of potential contention are the use of general fund dollars for a specialized loan program and the narrow eligibility criteria for emergency operating loans. The bill limits the operating-loan program to local nonprofit hospitals in cities under 2,500 population, which may raise questions about whether other struggling facilities should also qualify. The requirement that applicants demonstrate feasibility, alternative financing, and a workable restructuring plan may also be seen as a safeguard by supporters but as a high bar by facilities in severe distress. No specific opposition arguments are recorded in the provided materials, but the House’s 12 no votes suggest some members may have had reservations about the fiscal commitment, scope, or policy design.