# Title 6 — Banks and Banking

## Chapter 6-09.18 — Advancement Innovation Loans

### § 6-09.18-01. Definitions.

In this chapter, unless the context otherwise requires:
1. "Commissioner" means the commissioner of the department of commerce.
2. "Committee" means the legacy investment for technology committee.
3. "Diversification sectors" means the following industries:
a. Advanced computing and data management;
b. Agriculture technology;
c. Autonomous and uncrewed vehicles and related technologies;
d. Energy;
e. Health care;
f. Value-added agriculture;
g. Value-added energy; and
h. Any industry or area specifically identified by the committee as an industry that
will contribute to the diversification of the state's economy.
### § 6-09.18-02. Legacy investment for technology committee - Membership - Meetings.

1. The legacy investment for technology committee consists of:
a. The commissioner or the commissioner's designee who shall serve as the
chairperson of the committee and is a nonvoting member of the committee;
b. Three members representing active venture capital firms, private entities, or
angel capital funds;
c. One member with finance-related experience, knowledge, or education; and
d. Three members from the private sector with expertise in the diversification
sectors.
2. The commissioner, in consultation with the president of the Bank of North Dakota,
shall appoint the members of the committee. The term of office of the appointed
members of the committee is four years, and the terms must be staggered so that no
more than one of the members' terms appointed under subdivisions b and c of
subsection 1 expires each year, and so that no more than one of the members' terms
appointed under subdivision d of subsection 1 expires each year. Each term of office
commences on the first day of July. Members serve at the pleasure of the
commissioner and may be reappointed for additional terms. Members of the
committee may not invest or otherwise participate in applied research,
experimentation, or operational testing associated with a loan awarded under this
chapter. If a committee member appointed under subdivision b of subsection 1 ceases
to represent an active venture capital firm, private entity, or angel capital fund, that
individual's membership on the committee ceases immediately and the commissioner,
in consultation with the president of the Bank of North Dakota, shall appoint a new
member to the committee for the remainder of the term.
3. A committee member representing the private sector is eligible to receive
compensation in an amount not exceeding one hundred thirty-five dollars per day and
travel and expense reimbursement as provided by law for state officers for attending
meetings of the committee.
4. The committee shall meet as necessary to make loan recommendations and provide
ongoing review of research, development, and commercialization activities.
### § 6-09.18-03. Legacy investment technology loan program.

The department of commerce shall administer the legacy investment technology loan
program in consultation with the Bank of North Dakota to provide loans for activities identified in
this chapter. The department of commerce shall provide administrative support for the program,
including the drafting of application forms, receiving applications, reviewing applications for
completeness and compliance with committee policy, and forwarding complete applications to

the committee in accordance with the guidelines established by the committee. Program
guidelines relating to ownership of intellectual property, inventions, and discoveries must
address activities and issues unique to technologies, patents, and companies created as a
result of a legacy investment technology loan.
### § 6-09.18-04. Legacy investment technology loans - Eligibility.

1. The committee shall establish guidelines for entities to qualify for a legacy investment
technology loan under this section. The committee shall consider and process
applications in a timely manner that does not jeopardize an applicant's opportunity to
leverage other funds.
2. In determining whether to recommend approval of an application, the committee shall
consider the extent to which the proposal will:
a. Deliver applied research, experimentation, or operational testing in one or more
of the diversification sectors to create information or data to enhance North
Dakota companies or industries or companies making investments in North
Dakota;
b. Lead to the commercialization or patent of an innovation technology solution; or
c. Result in the development of a new company or expansion of an existing
company that will diversify the state's economy through new products,
investment, or skilled jobs.
3. The Bank of North Dakota shall review the business plan, financial statements, and
other information necessary for the Bank to determine which applications
recommended for approval by the committee will be approved by the Bank for final
loan approval. The terms of the loan must include:
a. Zero percent interest for the first three years of the loan;
b. Two percent interest for the next two years of the loan; and
c. An interest rate equal to a standard Bank of North Dakota loan for all subsequent
years.
4. To be eligible for a loan under this chapter, an entity shall agree to provide the Bank of
North Dakota with information as requested by the Bank.
### § 6-09.18-05. Legacy investment for technology fund - Continuing appropriation.

The legacy investment for technology fund is a special fund in the state treasury and must
be administered by the department of commerce. All moneys in the fund are appropriated to the
department of commerce on a continuing basis for the purpose of providing legacy investment
technology loans and for administrative expenses. The department of commerce shall deposit in
the legacy investment for technology fund all principal and interest paid on loans made from the
fund. Interest earned on moneys in the fund must be credited to the fund. The fund must be
audited annually pursuant to section 6-09-29, and the cost of the audit must be paid from the
fund.
### § 6-09.18-06. Use of loan funds.

Loan recipients shall use legacy investment technology loan funds to enhance capacity and,
to the extent possible, leverage state, federal, and private sources of funding. An entity receiving
a loan under this chapter may not use the funds for capital or building investments or for
research or other activities not identified in this chapter. The funds may not be used for
academic or instructive programming, workforce training, administrative costs, or to supplant
funding for regular operations of institutions of higher education. Unless otherwise approved by
the committee, loan recipients may use funding only to conduct applied research,
experimentation, or operational testing within the state. If an entity awarded a loan no longer
conducts its activities in the state, the interest rate of the loan shall default to the rate of a
standard Bank of North Dakota loan.

### § 6-09.18-07. Postaward monitoring.

Upon completion of work performed from funding provided by a legacy investment
technology loan, the department of commerce shall provide an independent review of the
results. Evaluation criteria may include:
1. How the work performed has contributed to the development of a company or the
expansion of an existing company, has enhanced the ability of a company to make
investments in the state, or otherwise enticed a company to invest or move to the
state.
2. How the work performed has led to additional economic investment of capital from
public and private sector entities within and outside North Dakota.
3. How the work performed has led to or may lead to a patent or research that is
commercially viable.
