# Title 10 — Corporations

## Chapter 10-30.5 — North Dakota Development Fund, Incorporated

### § 10-30.5-01. Definitions.

As used in this chapter, unless the context otherwise requires:
1. "Board of directors" means the board of directors of the corporation.
2. "Corporation" means the North Dakota development fund, incorporated, established
under this chapter.
3. "North Dakota business" means a business owned by a North Dakota resident,
partnership, association, corporation, or limited liability company domiciled in this state
or a corporation or limited liability company, including a wholly owned subsidiary of a
foreign corporation or limited liability company that does business primarily in this state
or does substantially all of its production in this state.
4. "Primary sector business" has the meaning provided in section 1-01-49 but does not
include production agriculture.
5. "Production agriculture" means the production of crops and livestock on or near a farm
as part of the regular farm enterprise directed by a farm operator and the farm
operator's partners. The term does not include an investor-owned livestock feeding or
milking operation located apart from a farm headquarters which is managed by
employees.
### § 10-30.5-02. Purpose and fund uses.

1. It is the purpose of this chapter to create a statewide nonprofit development
corporation that will have the authority to take equity positions in, to provide loans to,
to form a management and operations entity related to the beyond visual line of sight
uncrewed aircraft system program under section 54-60-29.1, and to use other
innovative financing mechanisms to provide capital for new or expanding businesses
in this state, or relocating businesses to this state. The corporation's principal mission
is the development and expansion of primary sector business in this state. The
corporation may form additional corporations, limited liability companies, partnerships,
and joint ventures related to the beyond visual line of sight uncrewed aircraft system
program under section 54-60-29.1, or other forms of business associations in order to
further its mission of primary sector economic development.
2. The exclusive focus of this corporation is business development in this state; however,
it is not excluded from participation with other states or organizations in projects that
have a clear economic benefit to state residents in the creation of jobs or secondary
business. Emphasis should be to develop jobs that provide an income adequate to
support a family above the poverty level.
3. Moneys in the development fund may be used to provide working capital or for
financing the purchase of fixed assets but not to refinance existing debt. Moneys may
also be used to make matching grants to county-authorized or city-authorized
development corporations for the acquisition, leasing, or remodeling of real estate
facilities for locating a prospective new primary sector business. A grant must be made
as part of a package of financing in which the state is a participant.
4. The commissioner of commerce shall adopt rules, subject to the approval of the board
of directors, necessary to implement the administration of the fund. The rules to
implement the grant program must be developed to encourage local fundraising
initiatives for developing locations for businesses financed by the corporation.
5. Moneys in the development fund may be used to provide financing to early childhood
facilities licensed under chapter 50-11.1. Moneys also may be used to make grants or
loans to match grants or loans made by county-authorized or city-authorized
development corporations, job development authorities created under chapter 11-11.1
or 40-57.4, and regional planning councils for acquiring, leasing, or remodeling of real
estate facilities or for acquiring equipment for establishing or expanding a licensed
early childhood facility. In providing financing under this subsection, the corporation
shall ensure funds are distributed fairly among for-profit early childhood facilities,

nonprofit early childhood facilities, and public early childhood facilities. An award under
this subsection may not exceed one million dollars per award.
### § 10-30.5-03. Organization.

A board of directors shall manage the corporation. The board of directors shall adopt and
amend articles of incorporation and bylaws consistent with the purposes detailed in this chapter.
The board of directors consists of eight members who shall serve three-year terms. The terms
must be staggered so that no more than three positions require reappointment in any one year.
The governor shall appoint the members and shall only consider representatives who serve in
executive capacities from the following areas in making the selections: private sector
manufacturing, finance, exported services, including tourism, and industrial technology and
research. There must be at least one member who is enrolled in a federally recognized North
Dakota Indian tribe who need not serve in an executive capacity, the commissioner of
commerce or the commissioner's designee, and one member from a rural area on the board of
directors. Members may be reappointed for additional terms.
### § 10-30.5-04. Powers.

The corporation must be organized as a nonprofit corporation. In addition to the powers in
chapter 10-33, the corporation may:
1. Cooperate, contract with, and provide funding to any private or public entity.
2. Receive appropriations from the legislative assembly and other public moneys as well
as contributions from other private or public contributors. The funds for the
entrepreneurship awards under section 10-30.5-12 may not exceed one million dollars.
3. Provide management services for the Bank's alternative and venture capital
investments and early-stage capital funds.
### § 10-30.5-05. Management.

1. The director of the department of commerce division of economic development and
finance shall appoint the chief executive officer of the corporation. The board of
directors shall determine minimum qualifications of all other staff positions.
2. If the chief executive officer of the corporation is absent for more than five consecutive
days or is anticipated to be absent for more than five consecutive days, the chief
executive officer may delegate the duties and responsibilities of the chief executive
officer to the director of the department of commerce division of economic
development and finance, or the director's designee.
3. All investments, contracts, partnerships, limited liability companies, and business
transactions of the corporation are the responsibility of the chief executive officer and
the board of directors. The board may provide that normal operating costs anticipated
in an approved budget may be incurred and paid without prior board approval.
### § 10-30.5-06. Divestiture.

The board of directors shall establish a policy for divesting the corporation's interest in any
business when certain levels of profitability are obtained.
### § 10-30.5-07. Confidentiality of corporation records.

The following records of the corporation are confidential:
1. Commercial or financial information, whether obtained by the corporation directly or
indirectly, of any entity in which an equity interest is purchased or considered for
purchase, to which a loan has been made, or capital otherwise provided, under this
chapter.
2. Internal or interagency memorandums or letters which would not be available by law to
a party other than in litigation with the corporation.

### § 10-30.5-08. Annual audit.

The state auditor's office may conduct an annual audit of the financial statements of the
corporation pursuant to this section. If the state auditor's office does not conduct the audit, the
state auditor's office shall contract with a certified public accounting firm to audit annually the
financial statements of the corporation in accordance with generally accepted auditing
standards. The cost of the audit must be borne by the corporation.
### § 10-30.5-09. Annual report.

The corporation shall prepare and publish an annual report of its activities for the
information of the governor, the legislative assembly, and the public. The report must include
audited financial statements of the corporation for the fiscal year covered by the report and must
specify:
1. The investment strategy and workplan approved by the board of directors.
2. The total investments made annually by the corporation in North Dakota businesses.
3. An estimate of jobs created and jobs preserved by investments of the corporation in
North Dakota businesses.
### § 10-30.5-10. North Dakota development fund - Continuing appropriation.

The North Dakota development fund is established from moneys appropriated from the
general fund and transfers from other funds. This is a revolving fund, and all moneys transferred
into the fund, interest upon fund moneys, and payments to the fund are hereby appropriated for
the purposes of this chapter. This fund is not subject to section 54-44.1-11.
### § 10-30.5-11. Economic development funds - Wage requirements.

Any political subdivision or economic development authority may adopt a minimum wage
requirement for any new business or business expansion in which a majority of the capital is
provided by the North Dakota development fund and its own local development funds. These
wage requirements may be imposed on all or any portion of the employees and may exceed
federal minimum wage requirements.
### § 10-30.5-12. Entrepreneurship awards.

Expired under S.L. 2009, ch. 109, § 5.
### § 10-30.5-13. Small business technology investment program.

Repealed by S.L. 2023, ch. 105, § 2.
### § 10-30.5-14. Research North Dakota venture investment program.

Repealed by S.L. 2019, ch. 57, § 5.
