Committee approves rural infrastructure revolving loan program bill as amended

Representative Butler presented House Bill 1200 to create a rural infrastructure revolving loan program to help small municipalities finance water, drainage and other infrastructure projects through low‑interest loans that replenish a revolving fund.

Butler said the bill targets communities under a population threshold (originally 15,000) and could include emergency provisions for larger needs; the program's rules and oversight would involve the state bond commission and treasurer's office.

Ms. Klopinski, committee staff, summarized nine amendments (mostly clarifying language), and Kyle Ardern from the governor’s office told the committee the administration supports the bill and is preparing additional floor amendments to clarify fund sources and program details. "We are working on amendments for the floor to make some clarification and to see how we might be able to possibly either commingle those funds and earn interest," Ardern said, noting federal dollars are involved and additional legal checks are needed.

Senators queried whether the program would include principal forgiveness like existing DEQ/LDH revolving funds and whether it would duplicate a proposed state infrastructure bank. Butler and the governor's office representative said the new program is intended for smaller projects and communities and staff will work to coordinate funding and eligibility.

The committee accepted the amendments and reported HB 1200 as amended.