# Title 54 — State Government

## Chapter 54-40.1 — Regional Planning Councils

### § 54-40.1-01. Legislative findings and purpose.

The legislative assembly finds that the citizens of the state have a fundamental interest in
the orderly development of the state and its resources. This finding recognizes the fact that the
mobility of the population, changes in economic forces, and governmental mandates within and
without the state present problems that cannot always be met by individual counties or cities
and that local government planning and development efforts can be strengthened when aided
by studies, planning, and implementation of both a statewide and regional character.
The legislative assembly further finds that the state has a positive interest in the
establishment, preparation, and maintenance of a long-term, continuing, comprehensive
planning and development process for the physical, social, and economic development of the
state and each of its regions to serve as a guide for activities of state and local governmental
units.
It is the purpose of this chapter to establish a consistent, comprehensive statewide policy
for planning, economic development, program operations, coordination, and related cooperative
activities of state and local governmental units and to enhance the ability of and opportunity for
local governmental units to resolve issues and problems transcending their individual
boundaries. In furtherance of this purpose, the legislative assembly finds that the governor is
required to assure orderly and harmonious coordination of state and local plans and programs
with federal, state, and regional planning and programming.
### § 54-40.1-02. Definitions.

In this chapter, unless the context or subject matter otherwise requires:
1. "City" means any city incorporated under the laws of this state.
2. "Commissioner" means the commissioner of the department.
3. "Department" means the department of commerce.
4. "Governing body" means the city council or the board of city commissioners or the
board of county commissioners.
5. "Industry" includes agriculture and business.
6. "Member-at-large" means a person who represents the general citizenry of the county.
7. "Organized local development corporation" means any group organized for the
purpose of promoting economic development which has filed for incorporation as such
with the secretary of state.
8. "Region" means the area delineated by executive order of the governor.
9. "Regional comprehensive plan" means a long-range guide for the economic, physical,
and social development of a region which identifies regional goals, objectives, and
opportunities and embodies the policies of the regional council.
10. "Regional council" means the council for comprehensive planning and development
established in each region pursuant to this chapter.
11. "Units of general local government" means cities, counties, and organized townships.
### § 54-40.1-03. Regional council - Membership.

1. Total membership on a regional council must be determined by the participating units
of general local government, subject to the following minimum criteria of membership:
a. A majority of the full regional council membership must be composed of existing
elected city officials and county commissioners. Selection of these members must
be by their respective governing bodies.
b. One member of the regional council may represent identifiable and organized
minority groups existing in the region. Selection of the member may be made by
the minority groups upon invitation from the regional council.
c. One soil conservation district supervisor from each county must be appointed to
the regional council to represent the agricultural and natural resource interests of
the region. The appointment of the soil conservation district supervisor must be

made by the respective boards of soil conservation districts. If any county
contains more than one soil conservation district, either in whole or in part, the
concerned boards shall meet and jointly agree upon a single appointment to the
regional council.
d. One or more members of the regional council, selected by the local development
corporations, shall represent the organized local development corporations
existing in the region.
e. The chairman of the regional employment training council or the chairman's
designee must be appointed to the regional council.
f. An alternate must be selected for each regular member of the regional council in
the same manner as the regular member is selected. The alternate member is to
serve on the regional council when the regular member is absent and shall enjoy
the same responsibilities and privileges as a regular member enjoys.
2. The term of office of each member of the regional council must be as determined by
the regional council and specified in its agreements, rules, or procedures. However, if
a person is a member of the regional council as the result of being a member of the
governing body of a city or a county, that person's term on the regional council expires
at the same time that person's term of public office expires and another person must
be appointed to the regional council in the same manner as the selection was made
for the member whose term expires.
3. Special or standing committees may be appointed to assist and advise the regional
council. Members of special or standing committees must be appointed by the regional
council. Membership on special or standing committees is not limited to the members
of the regional council.
4. The regional council may elect an executive board from the members of the regional
council. The executive board shall perform the administrative duties prescribed in the
agreements, rules, or procedures of the regional council.
5. The regional council shall determine the rate at which expenses of regional council
members and members of any special or standing committees must be paid for
expenses incurred in attending meetings of the regional council and the committees
and in the performance of their official duties, but the amounts may not exceed the
amounts provided by law for state officers.
### § 54-40.1-04. Regional council - Powers and duties.

A regional council shall:
1. Adopt agreements, rules, or procedures as may be necessary to effectuate planning
and development in the region.
2. Coordinate planning and development within the region for all matters of regional
concern as determined by the regional council, including land use, social and
economic planning, economic development, transportation, health, environmental
quality, water and sewerage, solid waste, flood relief, parks and open spaces,
hospitals, and public buildings.
3. Participate with other public agencies and private organizations in regard to research
for planning activities relevant to the region.
4. For the purpose of coordination, work with state departments, agencies, and
institutions in reviewing and commenting on all plans and federal aid applications as to
their impact on the region.
5. Develop guidelines for the coordination of land use plans and ordinances within the
region.
6. Prepare a regional comprehensive plan and upon the preparation of such a plan or
any phase, amendment, revision, extension, addition, functional part, or part thereof,
file such plan, phase, functional part, amendment, revision, extension, addition, or part
thereof with the office, all local planning agencies within the region, and other planning
agencies in adjoining areas.
7. Develop an annual budget for operations during a fiscal year.

8. Receive and expend federal, state, and local funds, and contract for services with units
of general local government and private individuals and organizations, consistent with
the scope and objectives of planning and development functions.
9. Upon availability of funds, hire an executive director who must be given full control
over the staff of the regional council. The executive director shall act as a liaison
between the regional council and the staff of the regional council and shall advise and
assist the regional council in the selection of staff.
10. Provide technical assistance for primary sector business development by leveraging
local funds to assist in product development, product testing, business plan
development, feasibility studies, gaining patent protection, legal services, market
strategy development, and other needs to stimulate business development.
11. Host business outreach forums to stimulate entrepreneurship and interchange with
potential investment and forums on other matters of importance to the local area.
12. Upon request, facilitate the financing of local economic development activities, such as
interest buydown programs and local revolving loan fund programs, without regard to
the fiscal source.
13. Act as a regional development corporation as provided by the individual regional
council's bylaws.
14. Have authority to purchase, own, and manage real property for the purpose of the
business incubator and regional council administrative functions.
### § 54-40.1-05. Reports.

Each regional council shall prepare an annual report within one hundred twenty days after
the end of each fiscal year. The regional council shall submit copies of the report to the
participating units of general local government, to the governor or the governor's designee, and
to members of the legislative assembly in each region. To the extent practicable, the report must
include projects completed or in progress and sources of funding.
### § 54-40.1-06. Dissolution of regional council.

A regional council may be dissolved as prescribed in the agreements, rules, or procedures
of the regional council. Upon dissolution, all properties of the regional council will be converted
to cash or evaluated as to worth and divided among participating units of general local
government in proportion to the amount of their financial participation.
### § 54-40.1-07. Rural catalyst committee - Membership - Meetings.

1. The rural catalyst committee is created to assist communities in the state with quality
of life improvement and economic development projects. The committee includes:
a. One individual from each regional council, appointed by the executive boards of
the regional councils;
b. Two members-at-large from communities eligible for grants under this chapter or
organizations that primarily serve communities eligible for grants under this
chapter, appointed by the governor;
c. One member of the legislative assembly, appointed by the chairman of legislative
management;
d. The governor or a designee appointed by the governor; and
e. The commissioner or a designee appointed by the commissioner.
2. The governor and the commissioner are permanent members of the committee. The
term of office of the remaining members is four years. Members may be appointed to
additional terms. The governor, or the governor's designee, shall serve as chairman of
the committee. The chairman of the committee shall select a vice chairman.
3. The committee shall meet at least semiannually to review and approve grant
applications. The committee shall prioritize funding projects that support rural
prosperity and quality of life enhancements.
4. The committee shall develop guidelines for the rural catalyst grant program, including
eligibility criteria and reporting and matching requirements. Grant recipients must

provide at least one dollar of matching funds from nonstate sources for every
one dollar provided from the rural catalyst fund. The committee may consider matching
funds in the form of cash or in-kind contributions.
5. The department shall provide administrative support to the committee as needed.
6. Members of the committee are entitled to be reimbursed for expenses incurred in the
performance of their duties, in the same manner as other state officials are
reimbursed, according to sections 44-08-04 and 54-06-09, to be paid by the state
agency employing the member. A member of the committee who is a member of the
legislative assembly is entitled to receive reimbursement for allowable travel expenses
and compensation at the rate provided under section 54-35-10 for each day the
member performs official duties of the committee, to be paid by the legislative council.
If not otherwise employed by the state of North Dakota, members of the committee are
entitled to receive compensation of one hundred thirty-five dollars for each day of
attending meetings and performing other duties relating to official business of the
committee, to be paid by the department.
### § 54-40.1-08. Rural catalyst grant program - Eligibility - Use of funds - Postaward

monitoring - Report to legislative management and legislative assembly.
1. The department shall administer the rural catalyst grant program to support quality of
life improvement and economic development projects for rural communities in the
state.
2. Grant funding may be awarded for projects that will address a critical need in the areas
of community and economic development, education, health and wellness, or for the
purpose of preserving or reopening rural grocery stores in a rural community with a
population of four thousand five hundred or fewer individuals. The maximum grant
award under the program is five hundred thousand dollars. At least fifty percent of the
grant funds must be allocated to communities with populations of fewer than
one thousand five hundred individuals.
3. By September first of each even-numbered year, the department shall submit a report
to the legislative management regarding the results of the program, including the
number of projects requested and supported through the program, information on
projects receiving funding, matching funds raised for each project, and how the project
has affected local communities. The department shall provide this report to the
appropriations committees of the next legislative assembly.
4. The department shall maintain a database on the department's website regarding data
and the status of each approved project.
### § 54-40.1-09. Rural catalyst fund.

The rural catalyst fund is a special fund in the state treasury administered by the
department. Moneys in the fund must be used for providing grants in accordance with this
chapter, subject to legislative appropriations. Interest earned on moneys in the fund must be
credited to the fund.
