Bill > HB1537

This bill amends a section of North Dakota law concerning service agreements for public infrastructure loans, specifically addressing what happens when a political subdivision (like a city or county) receives a loan from the public finance authority or another state agency to construct or acquire an improvement. The bill clarifies that during the loan term, the original political subdivision cannot have its services curtailed or limited if its service area becomes part of another political subdivision's boundaries or if a private franchise for similar services is granted. The political subdivision will not need to obtain new franchises, licenses, or permits to continue serving its area. The bill adds a new provision that allows agreements made before January 1, 2025, that violate these terms to be voidable only at the option of the public finance authority, with a 30-day written notice, unless litigation has already been commenced. This change provides additional flexibility and protection for political subdivisions and lending agencies in managing service agreements. The bill is declared an emergency measure, which means it would take effect immediately upon becoming law.