Interim hearings cover wind, SIRN, DOCR facilities study, and land access

There were plenty of interim legislative hearings to keep us busy this week.

Natural Resources - The Natural Resources Committee held its second meeting addressing the land access study. On the agenda were presentations from the Department of Trust Lands on public access and signage, Game and Fish on trespass violation statistics and North Dakota Information Technology on technologies that could be developed to address the electronic posting pilot requirements of HB 1021. The committee seems to be trending towards a system that starts with all lands being open with land owners being required to register with a future land owner management system to designate their property as closed. As the committee turns its attention towards identifying as many as 3 counties to participate in the pilot, NDACo worked to gather as much detail on the scope of the pilot for county’s consideration. We are working to identify counties agreeable to pilot the project. The committee discussed that the electronic posting pilot would not replace signage requirements in the three counties selected for the pilot. It is also under the understanding that, during the pilot, a violation associated with electronic posting system would not be enforceable by law so hunters would still be required to follow the physical signage on the properties.

Department of Corrections and Rehabilitation Review - Committee members met the individuals from The Moss Group Inc, who will be conducting an assessment of the department's facilities and programs. They provided high level information to lawmakers including correction trends across the world. This committee is tasked with a comprehensive study of DOCR facilities. 

Information Technology - Committee members spent the day hearing about various ITD projects including the state unification IT project and SIRN. Chief Technology Officer, Duane Schell provided a high overview of the Statewide Interoperable Radio Network (SIRN). He explained how the project is in the beginning stages of being implemented and build-outs of the first round of PSAP's and towers are moving forward. Schell highlighted how the SIRN project will address three main challenges of the current system used by public safety including: aging infrastructure, lack of interoperability in using technology from 1970's and coverage challenges.
ITD representatives also provided the committee with an explanation of blockchain technologies and their potential use in state government. 

Energy Development and Transmission - This committee is focused on studying a comprehensive energy policy for the state but this meeting focused greatly on wind development and transmission. Tax Commissioner Ryan Rauschenberger provided the committee with a look at the property taxation of wind in North Dakota. Currently, local political subdivisions receive all the property tax generated from wind farms. However,  a bill passed last session will direct one-third of wind tax revenue to the state and two-thirds to counties for wind projects constructed after December 31, 2020 or that have been in operation for 20 years. Rauschenberger shared that an estimated $10 million was collected in wind property taxes in 2019. 

NDACo Supports Sewer System Changes Offers Testimony to Interim Committee

Sewage Treatment Systems had its second interim legislative hearing this week with the Interim Commerce Committee. Brent Beechie, Secretary and Chief Inspector, State Board of Plumbing weighed in on the issue from the Plumbing Board’s perspective. Mr. Beechie agreed with NDACo and ND SACCHO recommendation to move the technical code in ND Century Code from the State Plumbing Board to the Department of Environmental Quality (DEQ) along with resources to provide this oversight. While the code offers some guidance and may be used for reference, Mr. Beechie noted that most local boards of health have adopted their own codes since NDCC codes have not been updated in years. Mary Korsmo provided testimony on behalf of the NDACo and the ND SACCHO highlighting the county commissioners resolution passed at the state convention and the position statement adopted by the local public health units at its September meeting.

The NDACo Resolution states:
North Dakota Administrative Code outlines standards and requires licensing for the installation of onsite sewage treatment systems, placing responsibility for these standards with the State Board of Plumbing. The plumbing board has limited staff and has sought few changes to the standards since 2000, causing their use and enforcement to vary across the state. This Association supports legislation moving responsibility for statewide minimum standards and installer licensing to a single state agency provided with adequate resources to fulfill the responsibilities. Further this Association supports the development and adoption of updated statewide onsite sewage treatment standards which allow for modification to address local conditions, and for uniform statewide educational requirements. However, this Association believes that responsibility for local licensure and inspections remain with the local public health unit and the fees supporting that activity be retained locally.

ND SACCHO position statement reads: The ND SACCHO supports statewide adoption of a unified onsite sewage treatment system consisting of basic standards while allowing for local modifications. This Association supports enabling legislation in ND Century Code with the technical code in administrative rules moved to the newly created Department of Environmental Quality. This Association further supports uniform interpretation, education of installers and inspectors, coordination with NDSU extension services for technical assistance and vendor product review at the State level.

Interim Committee Talks Tax Structure for E-Cigs

The Interim Taxation Committee recently met and briefly discussed the taxation of electronic smoking devices. The study must consider the current method of taxation applied to these products, the methods of taxation applied in other states, and the fiscal impact of applying an alternative or additional method of taxation. Current tax rate is the simple 5% sales tax; there is currently no licensing requirements for vaping/electronic smoking devices.

In his presentation Max Behlke, JUUL Labs, noted that points of consideration should include structure and administration of proposed taxes as well as clear definitions of what is to be taxed. 

The ND Tax Department provided the committee with an overview of possible taxing options stating the Department’s recommendation would be to tax at the wholesale level on final salable product. 

Offering support for a tax on all tobacco products as well as licensure of vape shops was Heather Austin of Tobacco Free North Dakota (TFND). Austin stated electronic smoking devices should be classified for what they are, which is a tobacco product, and therefore be taxed at the same rate of 28%. 

Committee members debated the subject with some believing there was not enough info to look into taxation and therefore was more of a regulation issue. It was argued that the only way these devices may get regulated is through taxation. The committee took no action on the issue.

The NDACo Legislative Team also monitored the Interim Judiciary committee which started exploring one of their interim studies, the implications of legalizing recreational marijuana. They are assigned to explore the impact to the state's economy, public health, legal system, existing medical marijuana program and other factors.