Update for 3-28 and look at week ahead

There is only one bill on our tracking list that is scheduled for a hearing next week. A subcommittee of the House Agriculture committee on SB 2315 the private property rights bill that relates to hunting access is meeting Monday at 3:15 in the Peace Garden room. 

Other than that bill, the week will be filled with floor action and monitoring committee work. In addition, conference committees could be scheduled starting next week on bills where the House and Senate have differences. 

Two major law enforcement bills will be voted on in the Senate Monday. HB 1286 relates to asset forfeiture and HB 1290 relates to restricting law enforcement from searching private property. Law enforcement and state's attorneys worked on an amendment to HB 1286 and supports the amended version. They are asking for a Do Not Pass on HB 1290. 

Senate Appropriations will hear HB 1435, which funds the Statewide Interoperable Radio Network (SIRN). The Senate GVA voted to restore $40 million of state funds included in the bill when introduced but was removed by House Appropriations. We will be urging the committee to keep the $40 million in the bill to illustrate the state's commitment to the project. 

The House approved the amendments on the Social Service Redesign bill, SB 2124, it has been referred to House Appropriations. 

The Senate over turned the Governor's veto on increasing driver's license fees. The proposal raises the cost of a non-commercial driver's license from $15 to $30. At current levels the fees do not cover the costs. Fees have not been raised in more than 30 years. 

Expect to see numerous gun related bills on the Senate floor Friday or Monday including one to allow for armed first responders in schools and to allow for a new firearm license, Class 1 exempt, that requires more training but would allow the licensee to carry in public places. 

Here is a summary of bills on our tracking lists that had floor action this week: 

• Edible medical marijuana - defeated in Senate
• HB 1270 which required counties to consult with district party leaders and legislators on precinct boundaries - defeated in Senate
• Increased EMS levy if approved by voters - passed in Senate  
• Crime to damage infrastructure - passed in House
• Operation Prairie Dog III bill which would have allowed a revolving loan for infrastructure funds to be available to political subdivisions - defeated in House

Senate Judiciary hears law enforcement related bills including asset forfeiture

***UPDATE Senate Judiciary committee amended HB 1286, Asset Forfeiture reform, and gave the bill a Do Pass recommendation - following the recommendation from law enforcement. Bill will be voted on the Senate floor Thursday or Friday.

The Senate Judiciary heard testimony Tuesday on HB 1286 which is a bill to reform the asset forfeiture process. NDACo along with State's Attorneys and Sheriffs oppose the bill. However, Chair Diane Larson presented an amended version of the bill that our county and other law enforcement can support. We have been involved in the development of the amendment in order to hopefully reach a compromise on this issue.

In summary, the amended version:

• In situations where there is no conviction, a forfeiture is allowed if the court finds there is evidence "beyond reasonable doubt" the property was used in the commission of a crime or involved in criminal activity. This change increases the burden of proof required.
• The amendment we support also requires political subdivisions to create a civil asset forfeiture fund. If a political subdivision does not do this, funds from forfeitures would be deposited into the Attorney General Asset Forfeiture fund. 
• Still remaining in the bill, that we support, is a reporting requirement for law enforcement to report their asset forfeitures to the Attorney General and restricting forfeitures that are unconstitutionally excessive by requiring that forfeitures are proportionate to the crime. 

Law enforcement along with several state agencies also opposed HB 1290, which restricts law enforcement from searching private property without permission. Several concerns were brought forward outlining how this bill will restrict law enforcement's ability to do their job including serving civil papers, conducting searches for missing people, following up on investigations and checking for things like oil spills, water related issues or complaints. The opposition from Department of Mineral Resources, Department of Health and Game and Fish were helpful in conveying that this is more than a law enforcement issue.

SB 2124 - Social Service Redesign Update

The House Human Services passed SB 2124 (Social Service Redesign) out of committee Tuesday, as amended, with an unanimous vote. The amendments will be on the house floor next, then the bill will be re-referred to House Appropriations.

Key changes outlined in the amendment include:

States Attorneys: There will be flexibility provided to zones to select a state’s attorney to represent the zone (ex. for personnel matters, board representation, etc.). The zone will be able to work with the state’s attorneys in the zone to develop a plan for child welfare and other needs. Each state’s attorney will be ensured individual discretion in court filings and representation. Collaboration is encouraged and supported through amendment.

DHS Authority Over Hiring and Dismissal: Language was amended to ensure DHS has the authority to authorize or deny requests to fill positions as well as authority to “veto” employment terminations if determined necessary. DHS will also be provided authority to “veto” an applicant for the Zone Director position if determined necessary. This was done to ensure accountability and state voice recognizing that salaries are paid in full with state dollars.

Zone Board Membership: Language was amended to simplify this section. Zone Board membership will be expected to reflect the community served. In addition, legislators will no longer be required to serve on the board. However, they may fill a community leader slot on the board.

Zone Changes: Permissive language was provided for a process to be developed to allow an individual county to change zones if warranted.

Pilot Projects: Language was included to require all counties to participate and execute pilot/expansion projects in accordance with the provisions of the pilot/expansion.

Salaries and Compensation: Bottom line is equal pay for equal jobs. Parameters were put in place to ensure progress is made towards compensation equity.

Reporting: Addition of reporting requirement for DHS to appropriations committees each session on the metrics, costs, trends, etc. of the redesign work.

FTE's: The number of positions that can be transferred from the zones to the state was reduced to 140 from 223. Specific positions are detailed. Biggest change is the reduction in economic assistance related transfers and the addition of HCBS related transfers. We requested from the Department background on this change. We will forward that additional information as soon as it is available.

Zone Development: All counties will have the flexibility to present plans partnering with whatever other counties they determine to be in the best interest of their areas. This addresses the concerns from Burleigh and Morton. The language continues to reflect that the department has final say over zone membership.

Office Equipment: Permissive language is included to allow transfer of equipment, furnishings, etc. between the zone and the state when an employee transitions from zone to state employment yet remains housed within the zone. This allows for the process but does not require such transfer.

Chairman Weisz introduced a separate amendment that included the items outlined above with the addition of making the Zone Director a state employee. That version was not passed. 

Schedule for week of March 25th and Update for week

Of course the big news this week is the signing of Operation Prairie Dog. You can read more about that in our last blog post.

You will notice a great deal of slow down in committee work on the schedule for next week. Many committees have finished hearing all their bills and are completing their work on several of the bills yet in committee. A couple bills being heard next week that we want to draw your attention to are HB 1286, asset forfeiture reform and HB 1290 relating to restricting law enforcement on private property.
Your NDACo lobbying team will be spending most of the week monitoring committee work and floor sessions.


Here is the schedule for next week: https://drive.google.com/open?id=1DcEJ5C7pwk5TH38eYqef4GYIIqWjeqj1

NDACo offered support for HB 1020, the NDSU Extension budget and again make a strong pitch for funding to be restored to the level prior to the 2017 state budget cuts. In 2018, ND County Commissioners Association approved a temporary funding formula which shifted an additional $820,000 to counties to continue the county-extension partnership. NDACo along with Bowman County Commissioner, Lynn Brackel provided testimony on the importance of the restoration of funds to this program. 
NDACo in addition to Stark County Engineer Al Heiser also provided testimony in support of the budget for Upper Great Plains Transportation Institute and focused on the need to restore funds to support the work that UGPTI does in support of North Dakota's transportation infrastructure. Supporters are seeking $525,000 in additional funding to update the local roads study.

The Senate GVA amended HB 1435, the State Interoperable Radio Network (SIRN) bill, as requested by the bill sponsor and supported by NDACo and the public safety community. The amendment puts in $40 million of SIIF funding into the project. State funding is critical in order to show statewide commitment to this important project. The bill received a strong Do Pass recommendation. The amendment should be voted on the Senate floor Friday. The bill will then be referred to Appropriations for their review. NDACo will provide updates regarding the timing of this bill and when we will need you to reach out to your Senators.

A few major bills that had floor actions:
- HB 1432 - Senate approved by unanimous vote the bill to allow counties to purchase used machinery at public auction or surplus auctions and equipment.
- HB 1296 - Senate approved to create a new crime for aggravated fleeing
- HB 1210 - Senate defeated bill requiring counties to hold elections for ETA proposals. 

Governor Burgum Signs Landmark Infrastructure Funding Legislation

Governor Doug Burgum signed legislation Wednesday that provide $250 million to help cities, counties and townships in non-oil producing counties pay for infrastructure needs. Burgum also used the bill signing as an opportunity to urge local leaders to invest the dollars in existing infrastructure areas to limit the growth of property taxes. 

House Bill 1066, also known as "Operation Prairie Dog", passed 80-12 in the House and 46-0 in the Senate. 

The key components of HB 1066, is the distribution of oil and gas tax revenues, creating new “buckets” to set aside revenue for counties, cities and townships in non-oil producing areas. Starting in the 2021-23 biennium, the bill will direct $115 million to cities, $115 to counties and townships, and $20 million for an airport infrastructure fund. It also preserves allocations for oil-producing areas and removes the sunset on the “hub city” designation that directs additional oil tax revenue to Dickinson, Minot and Williston.

"The greatest feature of this bill is that it does not include a sunset, meaning this formula will provide funding long-term to our local political subdivisions," said NDACo Executive Director Terry Traynor. "Our counties, cities and townships will have the opportunity to plan ahead knowing funding will be attained. This bill allows them to save their allocations and apply them to meaningful projects they otherwise may not have been able to do without burdening citizens with special assessments or property taxes." 

“One of the pillars of our Main Street Initiative is smart, efficient infrastructure, and we know communities across North Dakota have significant infrastructure needs. We also support local control, and this bill gives communities enormous latitude to use this bounty of oil tax revenues. If used wisely, these grant dollars represent a golden opportunity to improve the economics of cities, limit the growth of property taxes and create healthy, vibrant communities, enhancing the quality of life for all North Dakotans,” Burgum said.

The law requires the funding be used for essential infrastructure projects, which includes roads, bridges water and sewer lines, and electricity and natural gas infrastructure. 

"The Governor as well as Legislative Leadership acknowledged the strong support and assistance from county and city leaders in designing a workable infrastructure package," Traynor said. “State Government has been a solid partner through the years in addressing local infrastructure needs, and this bill is an excellent example of that partnership.”

Schedule for week of March 18th & Highlights from week...

Schedule for next week can be found here: Week of March 18th

Highlights from the week:

Revenue Forecast

Legislators received an update on their revenue forecast. It was good news. The projected revenue increases for 2019-2021 are significantly higher – an additional $160 million in general fund revenues and $1 billion in oil tax revenues, reaffirming the ability to fund our state’s priorities.

Operation Prairie Dog Passes Senate

The bill that is one of counties greatest priority, infrastructure funding, received its final vote – passing it and sending it to Governor Burgum. The Senate approved HB 1066 unanimously Thursday. The bill, nicknamed “Operation Prairie Dog”, allocates gross production tax revenue to fund infrastructure needs in cities, counties and townships in both oil and non-oil regions. There are also several state funds like the general fund, property tax relief fund and Strategic Infrastructure and Investment Fund (SIIF), that will receive oil tax funding through the new formula established in this bill.

A majority of the floor discussion on this bill revolved around the “buckets” and their placement. The House moved a SIIF bucket, placing it in front of the county/township distribution. Senator Rich Wardner pointed out that the forecast indicates all the buckets will fill and the county/township distribution should fill.

Under the formula, several state buckets receive funds followed by: $30.4 million to city, $30.4 million to county/township and $169.2 million into a joint non-oil city/county bucket to be split evenly.

The bill specifies funding is to be used for “essential infrastructure projects” which are defined in the bill. Wardner also highlighted how this bill allows political subdivisions to save their funding for use on large projects. He also illustrated how the bill will result in alleviating some pressure on property taxes and special assessments to fund infrastructure projects.

In total, this bill will result in at least an $800 million investment for local infrastructure. The bill will be effective for taxable years after June 30, 2019.

Statewide Interoperable Radio Network (SIRN)

HB 1435 which provides allocation of funding for the Statewide Interoperable Radio Network (SIRN) was heard in the Senate GVA committee Thursday. The committee heard testimony from numerous individuals who depend on the radio network for the safety of themselves and our citizens. The public safety community provided real-life examples of the importance of the radios along with the failures they have currently experienced due to the aging radio network currently being used.

A proposed amendment was provided by the prime sponsor of the bill to restore $40 million of state funds that was removed by House Appropriations. The $40 million of state funds is an important component of the bill as it reflects the state’s share and its commitment to the project. Currently, the bill authorizes the use of the .50 9-1-1 fee approved last session to be used in providing a$120 million line of credit to fund the $206 million project.

Social Service Redesign

The social service redesign legislation (SB2124) had its first House hearing on Wednesday in the Human Services Committee. The overview by DHS Exec. Director, Chris Jones, and the section-by-section explanation by DHS legal counsel, Jonathan Alm, consumed the entire morning due to the length and complexity of the bill. Returning in the afternoon, NDACo presented county support and testified to the desire of some counties for more time to develop multi-county zones. It was also noted that county state’s attorneys would like to have a clarifying amendment regarding their role in representing human service zones. Kim Jacobson, Agassiz Valley Social Service Director, provided thoughts from the local social service perspective. A Morton County Social Service Board also spoke in support but urged the preservation of local decision making in the determination of zone partners. There was no opposition testimony.

Other bills of note:

Senate defeated bill to eliminate sobriety checkpoints

House passed bill related to centrally assessed deadlines

Senate defeated bill to allow one license plate for sports cars

House Finance and Tax committee passed out a farm-residence exemption bill that changes the eligibility so that 66% of their gross income, including spouse, is from the farm.

Schedule for Week of 3/11/19

Schedule for Week of 3/11/19 found here: Week 11 Schedule

Primary Seat Belt Voted Down
House members voted Thursday to defeat the primary seat belt bill. There was lengthy debate on the issue. Supporters referred to data that illustrates how seat belts are key in saving lives in traffic crashes. A recent survey of North Dakotan's shows that 62% support mandatory seat belt use. Opponents of the bill argued that it should remain a secondary offense and be a personal choice. SB 2060 was defeated 38-54.

House Tax & Finance Holds Hearings on Farm Residence Exemption 

NDACo provided testimony Wednesday to the House Finance and Tax committee on two bills related to the farm residence exemption. SB 2278 seeks to improve the administration of the farm residence exemption by shifting the responsibility to the individual wishing for the exemption to provide the information necessary to prove their eligibility. The bill also ensures that the financial records of the landowner are kept confidential. The committee gave this bill a Do Pass recommendation. NDACo provided information to the committee in a neutral position on SB 2360. Supporters say the proposal modernizes the definition of "farmer" and updates the farm home exemption. The plan would allow for farmers to be eligible as long as 66% of their gross income is from farming activities, this also includes the gross income of a spouse. The farm residence exemption has been in place since 1919. There are approximately 13,000 individuals receiving the farm residence exemption. In addition there are 30,000 farms in North Dakota. 

Supporters Stress Importance of Infrastructure Funding

Counties along with others once again stressed their support for "Operation Prairie Dog" the infrastructure funding bill being proposed this Legislative Session. The Senate Tax and Finance Committee heard HB 1066 Tuesday. This was the first look at the bill for Senators. The bill passed the House in February.
The bill utilizes the state's oil and gas tax revenues to provide infrastructure funding for oil and non-oil cities, counties and townships as well as continuing to flow into several state funds including the general fund, property tax relief fund and the Strategic Investment and Improvements Fund (SIIF). The House did move the SIIF bucket above the non-oil county bucket.

Senate Majority Leader, Rich Wardner, reassured the committee that under the current oil price assumptions; all "buckets" will fill. "This is an investment into North Dakota," said Wardner. "If we want people to move here and to continue to live here, our cities and counties need to have good infrastructure. While this bill isn't intended to be a property tax reduction bill; over time it will reduce property taxes because this will relieve some of the burden of relying on property taxes to fund major road, bridge, water, sewer and other infrastructure projects."

Morton County Commissioner Bruce Strinden stressed the function of certainty that is provided in this bill. "The Legislature has been wise in its past efforts to address local infrastructure needs, and county officials are extremely grateful for those efforts. The way you have addressed gross production tax allocations and the multiple times that you have allocated one-time funding have been significant in addressing the enormous unmet need for local road improvement.  This bill today will improve upon these efforts by bringing a degree of certainty to future funding – allowing counties to more effectively plan and program improvements for greater efficiency and cost-effectiveness," said Strinden. 
Mountrail County Commissioner Trudy Ruland and Grand Forks Highway Engineer Nick West also testified in support of the bill on behalf of oil and non-oil counties.