Legislative Management Prioritizes Studies for Interim

The Legislative Management Committee met Wednesday to consider and prioritize the legislative studies to be addressed this interim. The Legislature passed 13 studies that are “required” by the language to be included in the study process. Additionally, they passed 72 “optional” studies that they were to “consider studying.” From this group, the Committee ultimately prioritized those to actually be studied. With the studies prioritized, the interim committees will now be formed around similar topics, and we will start to see committee assignments, and ultimately, committee meeting dates.

 

In the Required category, there are several of county interest, including:

• HB1209, to develop a plan for new hires under the NDPERS retirement system to participate in a defined contribution plan and to close the defined benefit plan.
• HB1380, to study potential uses of the legacy fund earnings, including tax relief, research, economic growth, and workforce development.
• HB1397, to develop a legislative redistricting plan (This will of course impact county election precinct development).
• SB2036, to continue the previous interim study of access to public and private lands for hunting, trapping, fishing, and related issues.
• SB2086, to study issues related to DHS and human service zone employee compensation.
• HB1012, in depth study related to mental health and the State Hospital future. 

Of the “optional” studies, the following “county related” studies were selected:

• HB1036, to study the juvenile justice process.
• SB2161, to study expanded behavioral health services, capacity and utilization of the State Hospital and a behavioral health bed management system. 
• HB1470, to study behavioral health needs of incarcerated adults. 
• HB1494, to study the recruitment, retention, turnover, and training of law enforcement and correctional officers.
• SB2021, to study the costs incurred by NDIT to deliver core technology and cybersecurity services to state agencies and political subdivisions.
• SB2208, to study North Dakota water laws.
• HCR3014, to study solutions to access and utilization of telehealth services. 
• HCR3015, to study the implementation of a community health worker certification program.

The full list of studies discussed can be viewed here: Legislative Management Interim Studies

NDACo Legislative Update: Legislature Adjourns

The North Dakota Legislative Session wrapped up it's work late Thursday night/early Friday morning on Day 76. Conference committees have been meeting all week, working to reach agreements on Appropriations bills. The Legislature gave final action on a few bills summarized below.

• The House and Senate both passed HB 1380, otherwise referred to as the Streams Bill, which included a $60 million stream for the highway distribution fund intended to begin next biennium.
• The Senate killed SB2046 which sought to close the NDPERS Defined Benefit (DB) plan for new State Employees at the end of the biennium. The proposal separated the State and local government plans and did not force the closure of the DB plan for political subdivisions. It also included a a funded consultant’s study during the interim will identify the implications of this two both “halves” of the plan. The Senate defeated the bill, saying the issue should be studied and lawmakers should review the findings prior to making the decision to close the DB plan.
• The final bill for reconciliation was the OMB Budget (HB 1015) which includes $20 million in township road support and an additional $100 million to the NDDOT for grants to road and bridge projects at all levels.
• Lawmakers also gave final approval on HB 1253, a major election reform bill. The conference committee focused primarily on shortening the deadlines for post-election work. The biggest change is moving the county canvassing board meeting to 13 days after Election Day.  

House Majority Leader Chet Pollert, commented at the conclusion that this was the toughest session he's been part of but proud of the work and the achievements of the 67th Legislative Session. 

NDACo Legislative Update: April 23

Legislators did not reach adjournment this week as they hoped. The disagreements are now fewer, but possibly more contentious. Also, as the news media has reported, the Governor vetoed three bills, which then requires both chambers to debate and vote all over again – all of which involves considerable time. Tuesday or Wednesday of next week is now more likely for adjournment “sine die”. Once we reach this milestone, your Legislative team will be working to compile and refine the results of the entire session to present at our Legislative Wrap-up on May 10th.

Last week’s new proposal for the NDPERS BILL (SB2046) for closing the NDPERS Defined Benefit plan consumed much of the week. Recognizing the strong opposition of local government to this unknown increase in unfunded liability, the final amendment DID NOT change the local government portion of NDPERS retirement.

The amendment ultimately adopted would close the Defined Benefit (DB) or pension plan to new STATE employees January 1, 2023. New state employees would be provided a defined contribution or DC retirement plan like a 401K. The amendment segregates the reserves and liabilities associated with state employees separately from those associated with local government employees. The amendment would appropriate $100 million and inject a “stream” of Legacy Fund interest to bolster the DB plan for those “legacy” state employees that would remain in the DB plan through retirement. An intensive study and actuarial analysis of both the state employee portion and the local government portion of the fund would be completed by November 1, 2021, so that the information would be ready for the Legislative redistricting session late this year. In the meantime, the local government employers and employees would see an increase in retirement contributions of ½% of salary each to move this part of the fund toward solvency. Should this bill pass, county officials will need to be very engaged in this study and analysis, as the Legislature will be looking to us (counties, cities, schools, parks) for direction for “our portion” of the retirement system.

Also, in the news this week, was the Governor’s signing of HB1341 that for the first time in a very long time authorizes a significant state bonding program. This concept would use a portion of Legacy Fund earnings (interest) to service a bond of $680 million, much of which would be used for major state water projects. The Governor explained that by getting these major projects “off the table”, the resources trust fund would be able to better fund the smaller water projects statewide – this fund is also enhanced by bond proceeds of $74.5 million. $50 million of the bond would go to enhance the infrastructure loan fund which is available to cities and counties and $70 million would go to NDDOT to leverage additional federal funds for road and bridge construction. The final $50 million of the bond would go to build the agriculture products development center at NDSU.

Still “hanging fire” is the “streams” proposal (HB1380) which includes the $64.3 million biennial injection into the Highway Distribution Fund. The Senate is very solid on retaining this stream, and the entire Transportation Coalition is working on increasing House support.

The Transportation Coalition has also been instrumental in the immediate township road support that was added to the OMB Budget (HB1015) in the Senate. The legislature recognized that townships in North Dakota do not qualify for federal Relief/Stimulus funding and have therefore proposed $5000/township for non-oil counties and then $20 million to NDDOT specifically for township road and bridge grants. Importantly, both parts of this funding would also go to counties on behalf of unorganized townships. There is considerable support for this in the House, and efforts continue to maintain it through the conference committee process.

The Governor held a bill signing event for HB1435 which provides health insurance to the spouse and children of an emergency responders who die in the line of duty. We had several Sheriffs and other first responders who attended the ceremony. 

The House approved the conference committee's work on SB2144, which made changes to the criminal trespass code. The bill now provides law enforcement officer who responds to the call of trespassing with options in dealing with the event and allows prosecutors options to charge based on the extent of the crime. 

House and Senate conference committee members met to review Senate floor amendments made to HB 1183 regarding onsite septic systems. Local public health units supported the amendment which provided equal representation on an onsite wastewater recycling technical committee comprised of Gubernatorial appointees from local public health and installers. The amendment replaced the House bill of three local public health representatives and four installers. A second amendment placing an end date on the bill was also supported by local public health. The final version lists the technical committee makeup of three local public health representatives, four installers and one licensed environmental health practitioner. The ending date was replaced with a report to Legislative Management before November 1, 2022. HB 1183 as amended was subsequently passed by both Chambers.

HB 1253, the major election reform bill, was resolved in conference committee Thursday. County Auditors weighed in heavily on post-election deadlines that were dramatically shortened. The committee yesterday approved: changing the county canvassing board meeting date to 13 days after the election. The deadline to add new voters will be before the meeting of the canvassing board, or 13 days. And the deadline to post voter history is before the end of the contest period allowed under section 16.1-16-04 = if recount (18 days after the election) or (27 days after the election) if no recount.

Language offered in the Senate to help address unintended consequences of HB 1256 (which prohibits the use of nonpublic dollars for elections) was kept in the bill. Allowing counties to be allowed to use donations for use of facilities for polling places, food for poll workers and other nonmonetary donations that are not used to prepare, process, mark, collect or tabulate ballots or votes. However, violation of this section is a Class A misdemeanor. 

The Secretary of State’s office requested the committee to include a penalty for Auditors not prepared for the canvassing as a Class A misdemeanor. We were successful in convincing the committee to not include that language.

NDACo Legislative Update: April 16th

More discussion than action this week, however we have seen resolution of several conference committees on county bills, discussed below.

But first, a major twist was introduced Thursday that will likely have an impact on reaching the end of the Session quickly.  Rep. Delzer floated a “hoghouse” amendment to SB2046 (NDPERS Contributions) that would essentially turn it into an “alternative streams bill”.   This proposal creates two very significant concerns for local government:

Ø  The amendment does NOT include a stream for the Highway Distribution Fund.  As discussed previously, the original “streams bill” (HB1380), would dedicate $64.3 million per biennium to the Highway Distribution Fund, for state, county, city, and township roads.  This amendment proposes a $60 million income tax buy-down with Legacy Interest instead.

Ø  This amendment is written to close the NDPERS defined benefit plan for state employees and devote general funds ($100 million) and an ongoing allocation of legacy interest stream ($40million/biennium) to addressing the unfunded NDPERS liability created for state employees (only).  Counties, cities, schools (for non-teacher employees) health districts, park districts, and other “non-state” NDPERS participating public employers would be segregated and directed to fend for themselves. 

While this addresses the NDPERS retirement transition that the Governor and many legislators support, it does this by eliminating highway funding and leaving local government to address an unquantified and unfunded NDPERS retirement liability with property taxes.

This amendment will have a hearing on Monday at 9:30 in the House GVA Committee.  We are urging all county officials to reach out to your house members, urging them to resist this concept.

SB2046 Proposed Amendment Summary

https://www.legis.nd.gov/assembly/67-2021/testimony/HGVA-2046-20210319-11541-N-COUNCIL_LEGISLATIVE.pdf

SB2046 Proposed “Streams” Diagram

https://www.legis.nd.gov/assembly/67-2021/testimony/HGVA-2046-20210319-11542-N-COUNCIL_LEGISLATIVE_Co.pdf

In other news, the “Road Train” bill (SB2026) came out of conference committee as it went in, with local road authority control intact.  The conference committee report was rejected in the Senate due to a misunderstanding, so it went back to committee and was immediately returned to the floor in the same form where it was passed 39-6.

HB1199 is also headed to the floor in good shape.  This bill to redirect excess funds (if any) from a property tax foreclosure to the former owner was not supported by the counties due to its administrative difficulties.  It was improved before House passage, further approved in the Senate, and the conference committee continued the effort.  We believe it is now workable for county officials.

The effort to exempt property taxes on potato warehouses and grain elevators located on platted land in cities if owned by producers (SB2041) had been turned into a study by the House.  The Senate objected and a conference committee met several times before agreeing the topic needed study before enacting such a policy change.

SB2244, to increase Sheriff fees was resolved in conference committee this week as well. The fees got a small bump, essentially $10 more. These fees have not been adjusted in 20 years, so it was time to address them. Legislators signaled they would support looking at these fees again in a couple sessions. 

The bill traditionally held as the last bill of the session, the OMB Budget (HB1015), remains in the Senate for final corrections and additions.  It is expected hat this will be the vehicle to restore township road funding.  We, along with everyone else, will be watching this bill until the end.

 

 

NDACo Legislative Update: April 9

This week Wednesday saw the first conference committee meeting to resolve House and Senate differences, and they have multiplied exponentially since. For those watching, these often have only an hour or so of notice, so periodically refreshing the conference committee link on the Legislative website is critical. This is an extremely important phase of the process, and we expect at least a dozen county priority bills will ultimately be resolved in conference.

The Bonding Bill (HB1431) took a very interesting turn this week. In round numbers, the House proposed bonding for almost $700 million – mostly for diversion/flood control projects. The Senate policy committee added amendments to increase the bonding to just over $1 billion, adding in several public building and energy projects, and notably $30 million for township roads – as they are ineligible for direct federal ARP (Relief) funding. The surprising move was action by the Senate Appropriations to send the committee back to the Senate floor, recommending that the Senate policy amendments be stripped off and the House version of the bill be sent directly to the Governor. Lots of discussion about some of the Senate priorities (including township roads) that fell off the table, and how state ARP funds, or other funding concepts may be leveraged.

The Streams Bill (HB1380) remains in Senate Appropriations, and still has $63.9 million in Legacy interest going into the Highway Distribution Fund. As this is an addition that the House did not consider, this will likely be a conference discussion, and we expect that a call for action will be made at some point to urge retaining this important piece.

You may recall that the Road Train Bill (SB2026) was amended in a manner requested by counties in the House, but as this has changed the Senate version significantly, a conference committee has been appointed to discuss their differences. If you are represented by the Senate conferees, (Senators Conley, Clemens, and Bakke) please urge them to support the House amendments that preserve county and township control of their own roadways.

HB1323, the bill to prohibit mask or face covering requirements, was voted on by the Senate on Wednesday. NDACo opposed it in its original form, focusing on its broad language that removed the ability of local government (as well as private employers) to mandate safety equipment within their operations. Counties were not alone in our opposition; cities, schools, medical facilities, and business organizations all provided testimony in opposition. Due to the response from local government and other constituents, the concerns recognized. Ultimately the Senate amended the bill to remove local government and business from the restrictions, leaving in place a prohibition on State officials issuing statewide mask requirements. The bill was then passed, although in a significantly altered form from the House version, so the battle may continue.

The final bill on our schedule to testify on was heard Thursday. HB 1253 is a massive, 80 page election reform bill. The Secretary of State's Office supported the bill and was involved in a majority of it's drafting. There are a few election related proposals that were defeated that have now made their way into the bill. NDACo supported the bill and offered further suggestions for amendments. The committee will continue to work on the bill Friday. 

The Senate acted on numerous firearm bills Thursday including a bill (HB 1498) that expands the state's "stand your ground" law to include any where an individual is legally authorized to be. The Senate passed 1498. They also approved HB 1383, which as proposed sought to prohibit local law enforcement from working with federal agents if firearms were involved. The committee worked on the bill following hearing testimony from law enforcement. The amended version approved in the Senate addressed the law enforcement concerns. The bill now accomplishes the intent of the bill to not allow local law enforcement to provide assistance to a federal agency in response to a federal order or statute that is more restrictive than state law unless the violation is related to: homicide, kidnapping, sex offenses, drug offenses, human trafficking or other felony offenses. This new language accomplishes the intent to not allow a federal order to impede on North Dakotan's 2nd amendment right but to also preserve the working relationship of federal, state and local law enforcement. 

No committee hearing schedule for next week as committees are done hearing bills. Committees will wrap up their work on the remaining bills to act on in committee and conference committee meetings and floor sessions will occupy most of the activity next week.  

NDACo Legislative Update: April 2nd

The legislature began appointing conference committees Thursday to resolve differences between House and Senate versions of some bills. This is what is commonly considered the start of the "Third Period" of the process. It is also a sign that the end is approaching. You will see very few hearings on the schedule. There are a number of firearm related bills scheduled in Judiciary and the final election reform bill will be heard in Senate GVA. You will see on the schedule that a great deal of it is appropriations committee work.

More time was spent in floor sessions this week, and quite a number of “county bills” reached final resolution. Some of the significant action included:

• The defeat of the “culvert bill” as requested by the counties.
• The return of the “road train” bill (SB 2026) to committee and the addition of language giving local road authorities control before passage. 
• The amendment of the “potato warehouse exemption” was turned into a study.
• A bill (SB 2142) initiated by the County Auditors to increase the days allowed to process absentee/mail ballots passed the House.
• The Senate killed two election bills Auditors opposed. HB 1173 required the full text of measures on the ballot. HB 1373 decreased the days for early vote from 15 to 9 days. 
• The Senate also defeated a bill (HB 1457) that would have required counties to renew emergency declarations/disasters at each regularly scheduled meeting.
• The Senate approved a bill to provide health benefits for family members of a fallen officer. 
• The House concurred on the changes the Senate made to HB 1112, which requires ND DOCR to pay for housing and medical costs of state-sentenced inmates when in the prioritization plan. This means the bill is on to the Governor for his signature!    

Click here to view schedule for next week. Included in this schedule is the listing of committee work. Bills scheduled for hearings are highlighted. 

*WATCH* NDACo Legislative Video Update for Week 12: March 26

Click to watch video highlighting action taken this week on county related bills. 

NDACo Legislative Update: March 26

 Plenty of action on county bills this week, below is a taste of some of the highlights.

• County official efforts on SB2026 (road trains) were incredibly effective and the committee chair saw that the bill would be defeated, so he took it back to committee and amended it in three important ways. 
• The 180’ pilot project truck length was changed to 130’ 
• Impacts to traffic safety were included as a study element
• A new subsection was added reading: “If a pilot project includes operating on county or township roads, an agreement with the local road authorities must be in place to address traffic safety consideration and costs directly attributed to the pilot project."

            As these amendments address the concerns raised by counties, we no longer oppose SB2026. 

• HB1464 (Gas Tax) was given a divided (4/3) Do Not Pass recommendation from the Senate Committee, and will be up for vote in the Senate as soon as FRIDAY. This 3-cent increase (and modest increases to electric vehicle fees) would generate $48 million of which $9.6 million goes to county roads. County officials are being asked to CONTACT THEIR SENATORS AND URGE A YES VOTE ON HB1464

• SB2324 (Culvert bill) was amended and given a strong (11/1) Do Not Pass recommendation, as requested by counties. This bill would shift considerable control from counties and townships to the state engineer over when culverts and bridges are replaced. We are urging county officials to CONTACT THEIR HOUSE MEMBERS AND ASK FOR A NO VOTE ON SB2324.

• SB2041 (potato warehouse/elevator exemption) was heavily amended. The issue of exempting privately owned elevators and warehouses in cities was turned into a study, but the farm-residence exemption was added into the bill with a proposed change to consider machinery sales as farm income. We encourage all commissioners and tax directors can pull this bill up and take a look.

• Senate Senate Political Subdivisions Committee heard testimony on HB 1183 relating to onsite septic systems. The bill came to the Committee amended by the House.  In addition to requiring public health units to adopt an onsite wastewater recycling treatment guide, the House amendment provided for the establishment of technical committee. Two Senate floor amendments included adding a local public health representative to the technical committee for even representation and also added an expiration date. The full Senate adopted the amendments and passed the bill which will be returned to the House. 

• House bill 1152, the “cigar bar" bill was defeated on the Senate floor. This bill would have allowed exemptions to ND Smoke free law, exposing people to secondhand smoke. This law protects public health and promotes worker safety.

• Despite heavy debate, SB2244, the bill to incrementally increase civil process fees by the Sheriff’s Office, was passed in the House 57/36. These fees have not increased in 20 years. 

• Inmate reimbursement, HB1112, passed the Senate with a unanimous vote. This bill will require DOCR to reimburse county jails for holding state-sentenced inmates if they must remain in a county facility due to state facility limitations. A big success for counties as this was a resolution and priority item. 

• NDACo worked closely with the Senate Judiciary committee to improve an amendment that would have prohibited the release of booking photos until individuals are charged. While law enforcement concerns for the most part were addressed with the final amendment the Senate voted to kill the amendment on HB1294. 

• Efforts to move to a primary seat belt law for all occupants in a vehicle failed in the House with the defeat of SB2121. The vote was close at 45-49. 

• The Senate defeated HB1189, which would have placed a 3 hour deadline for election workers to return results to the Auditors office. Another election bill was also brought back for reconsideration on Monday. HB1198 sought to prohibit the Governor from using his executive order authority in restricting polling locations. The Senate passed the bill last Friday, reconsidered it on Monday and killed the bill. 

• Also very notable, the Senate defeated HB1420 to legalize "adult use" marijuana, a companion bill that addressed the taxation of marijuana was also killed. 

Click here to view the hearing schedule for the upcoming week

*WATCH* NDACo Video Update for Week 11: March 22

Click to view video with update on what bills we expect to hit the floor this week. 

NDACo Legislative Update March 18th

Big budget issues got considerably more attention this week. The consulting economic prognosticators for the Legislative and Executive Branch each delivered their revenue projections. Both anticipate a significant, though not substantial, increase to oil & gas taxes and to other general fund revenues. The legislative body will adopt an ‘official’ revenue projection this Friday, which will create the guardrails for the final Legislative Budget. Specifically, the oil tax revenue forecast shows an increase in tax allocations to political subdivisions and anticipates the county Municipal/County/Township Infrastructure (Prairie Dog) buckets filling next biennium. These forecasts are critical in reaching adjournment of the Session. Interestingly, there is much discussion of an early adjournment – possibly as early as April 22nd (the 72nd Legislative Day), leaving eight days for the redistricting session in the fall.

With the budget guardrails under construction, the big infrastructure bills were scheduled for their second hearing. 

HB1341 (Bonding Bill) was heard in Senate Finance and Taxation, with a major leadership amendment proposed to adjust the investment of bond proceeds to include $70 million for Bridge Projects and federal match for roads, and $30 million for township roads.  Additionally, $50 million will be added to the $175 million already in the infrastructure revolving low interest loan fund.

The “Streams Bill”, or Legacy Interest Investment proposal (HB1380) was also heard in Senate F&T.  It also showed up with its own proposed amendment.  Most important for counties is the proposal to dedicate a percentage of the interest (estimated at $58 million) to the Highway Distribution Fund – 22% of which goes to counties.  This is the equivalent of a bit more than 6-cents of motor fuels tax, while having the added benefit of growing each biennium and the interest from the Fund grows.  

A lengthy hearing on the primary seatbelt law. Law enforcement officials were joined by NDACo and other traffic safety organizations. SB 2121 received heavy support from those testifying, however, despite the passionate testimony the House Transportation committee delivered an 8-5 Do Not Pass recommendation. This issue is a top priority for counties, and we will be asking for your help in reaching out to Representatives to urge a "Green" vote. 

Another priority item, the inmate prioritization reimbursement bill (HB 1112) was heard this week in the Senate Judiciary committee and given a Do Pass recommendation. This bill, if approved will require DOCR to pay the housing and medical costs for state-sentenced inmates in local jail facilities when the prioritization plan is effect. 

Click here for the schedule for next week's hearings

 

*WATCH* NDACo Legislative Video Update Week 10: March 12

Click to watch the video. 

NDACo Legislative Update: March 12

The week began with an intense discussion in the House Judiciary committee on two proposed constitutional amendments to eliminate property taxation – partially in one and totally in the other. NDACo and the League of cities opposed both, explaining that the absence of a plan for replacement revenue in one, and the fact that replacement would only be guaranteed at the current year level in the other would create serious problems. While both received “Do Pass” recommendations from the committee, they were both soundly defeated on the floor of the House.

It was another busy week for hearings, with the major budget bills for DHS, NDDOT, DoH, UGPTI, NDSU Extension and most of the other letters of the alphabet. Those five noted however have significant impacts on counties, and NDACo staff, and in some cases individual county officials provided testimony on those “county aspects.”

Probably the biggest county crowd was in Bismarck for the “culvert bill” or SB2324. This bill shifts the relationship between local road authorities and the state engineer when it comes to when culverts need to be replaced. Representatives from Grand Forks, Griggs and Foster Counties joined NDACo in weighing-in against this proposal

The “policy bill” hearings are starting to slow down, and next week appears to have fewer scheduled, although there is plenty of committee work (where the action really happens) going on. 

An issue we thought was dead is back... The
Sheriffs worked to get a bill to prohibit the release of booking photos "mugshots" killed in the House. House members defeated HB 1296 but similar language has made it's way into HB 1294. We look for that bill to be on the Senate floor as early as Monday. We are asking Senators to oppose the amendments for HB 1294.  

The following bills were "wins" for counties... 

The Senate gave the final approval on: 

HB 1122 - Allows for POST Board to license and regulate Reserve Officers

HB 1146 - SIRN technical correction to allow for fire and ambulance districts to be eligible for the state cost share for SIRN radios

The Senate defeated: 

HB 1238- Required polling location in each legislative district 

Click here for next week's schedule

*WATCH* NDACo Legislative Video Update Week 9

Watch the NDACo Legislative Video Update for Week 9

NDACo Legislative Update: Week 8

We can't start this update without recognizing the most noteworthy item of the week. The North Dakota House of Representatives voted Thursday for the expulsion of Representative Luke Simons of Dickinson. This is the first time in North Dakota history the Legislature has expelled a member. The House conducted what is called a committee of the whole to address a resolution to expel Representative Simons. The floor session to debate and consider the resolution lasted four hours. The resolution states that numerous reports of inappropriate behavior from Representative Simons have been publicized which demonstrate a concerning pattern of behavior that corrupts the integrity of the legislative branch. The House passed the resolution expelling Rep. Simons 69-25. 

Moving on to our county related matters...

A bill that requires the POST board to license Reserve Officers (HB 1122) utilized by law enforcement agencies received a Do Pass recommendation from the Senate Judiciary committee. The Sheriffs and Deputies Association supported this legislation which was in response to a bill introduced and defeated last session that would have prohibited the use of Reserve Officers. 

Several election related bills were also heard in the Senate Government and Veterans Affairs Committee. The County Auditors Association testified in opposition to HB 1173 which would require the full text of constitutional measures to be printed on the ballot. While we understand the intent of this bill, auditors believe this will have many unintended consequences and result in issues with executing an election. Burleigh County Election Manager, Erika White provided an example of a 2020 constitutional measure and what that would look like printed in full on a ballot. The measure printed in full took up the entire page of a ballot. The committee did not take action on the bill. 

Senate GVA also heard HB 1238 which will require a polling location in
every legislative district. Mercer County Auditor Shana Brost testified how this would be an issue in their county with only 9 voters in one legislative district. This bill would remove the rational auditors use in deciding where polling locations should be located. It would lead to polling locations in sites that may not be the most efficient or convenient for voters but rather in a place that is required due to the legislative district. We urged the committee to give the bill a Do Not Pass recommendation or amend the bill. 

HB 1146 the SIRN technical corrections bill received a Do Pass recommendation from the Senate GVA committee. This bill will allow for fire and ambulance districts to be eligible for the $1500 state cost share for radios purchased for use in the SIRN project. 

SB 2026 (Road Train bill) was heard by House Transportation Committee on Thursday.  County representatives from the highway and sheriff’s department testified in strong opposition of the bill, stating the safety issues, no local road authority and no compensation for potential infrastructure costs.  Two written resolutions were also submitted from Grand Forks and Richland counties opposing the bills.  There are suggested amendments to the bill, but were not brought forward at the hearing.  No action was taken on the bill.

NDACo supported HB 1157 which provides townships additional levy authority in emergencies. The House Political Subs Committee discussed possible amendments that would extend the 5 year limitation currently in the bill recognizing that townships would need more than five years for debt payment.

Senate Bill 2041 provides a property tax exemption for grain elevators used for personal use to store or process grain or potatoes produced by the owner of the elevator. NDACo offered opposing testimony due to the expansion of an exemption which shifts the property tax burden to other taxpayers. Tax Directors from Walsh and Dickey County presented opposing testimony as cities in their counties would be drastically impacted with this bill.

SB 2260 aligns current accounting practices regarding the co-mingling of the Highway Tax Distribution Fund with county Road & Bridge Levy funds and provides clarity for the county road levies set to expire in 2024. NDACo provided supporting testimony on the bill which House Political Subs gave a Do Pass recommendation.

Click here to view the schedule for next weeks hearings

NDACo Legislative Crossover Report

 

The 67^th Legislative Assembly worked in the first half of the session to address 900 bills and resolutions, 485 of those have an impact on counties or county officials. Your NDACo Legislative team worked vigorously in the first half of the session in the tracking, testifying, and communicating with our member groups. The success we have experienced so far is indicative of our county folks participating in the process either by testifying to committees or emailing their legislators. The following is an in-depth crossover report of county related issues.

 MAJOR FUNDING ISSUES

While there were several competing proposals for bonding and the use of Legacy Fund earnings for infrastructure, the two that follow are the vehicles chosen to advance this discussion.

Leadership Bonding, HB 1431, was passed by the House on a very strong 74/16 vote. This bill began with a much longer list of infrastructure improvements to be funded but was pared back significantly before passage – focusing largely on major water projects and $70 million to the NDDOT. There are many on the Senate side that would like to see local road infrastructure to be reinserted.

Legacy Earnings, HB 1380, like the bonding bill, this proposal to dedicate portions of the interest on the Legacy Fund to various infrastructure priorities of state and local government, was pared back significantly in the House before passage, while adding the potential for income tax relief. It is now essentially limited to bond payments and undetermined infrastructure investments. Look for Senate action on this to restore funding “streams” of greater interest to counties. 

Fuel Tax Increase, HB 1464, this bill started out as a 4-cent tax increase, was amended and passed out of committee at 6-cents, and then was pulled back into the House Finance & Tax and the 6-cent increase was lowered to 3 cents, with hopes of keeping it alive. The 3 cents would mean $9.6 million for county roads over the next biennium. The amendments also adjusted for electric and hybrid vehicle registration fees to provide equitable highway support, and an interim study of road funding was added. After much debate, the House passed the bill 61/32.

DHS Budget Bill, HB 1012, was passed by the House with a $13 million increase over the Governor’s recommendation in the “Zones portion” to address salary adjustments like state human service employees and to correct an underfunding problem from two years ago. Unfortunately, this still anticipates utilizing zone reserves to meet expected costs. Indirect costs are to be reimbursed at the same statewide level as this past biennium.

OMB Budget, HB 1015, is typically the final bill passed by the Legislature before adjournment, and therefore contains a lot of interesting things.  $8.1 million from the state Disaster Relief Fund is appropriated in this budget to provide $5,000 for each organized and unorganized township for roads, and particularly the match needed for federally funded disaster-impacted road restorations. Of immediate concern was the appropriation for guardianships for indigent persons, which has been funded by the state since 2015. The current $1.95 million appropriation was preserved, but the additional funds for the ever-increasing caseload was not added. This hopefully will be addressed in the Senate.

COUNTY FINANCING TOOLS

Three attempts to greatly limit county financing options coming from the same group of House sponsors were addressed with some success, while somewhat in the reverse, a House bill to expand county financing options for roads was approved.

County Bonding Vote Limits, HB 1484, would have increased the citizen vote requirement for accessing bond financing from a majority to two-thirds. This bill was defeated in the House.

Lease-Purchase Prohibited, HB 1485, would have eliminated the ability of counties to use a lease-purchase option for building construction. This bill was defeated in the House.

Lease-Purchase Limited, HB 1483, would require a citizen vote similar to bond financing if a lease-purchase building construction was to be undertaken for a total cost in excess of $3 million. This bill was passed by the House.

Bonding for Roads, HB 1116, will allow county boards, on their own motion, to bond for road construction projects, using their dedicated road levies as well as their capital improvement levies to service the debt. This was passed in the House by a 64/26 vote.

 PROPERTY TAX ISSUES

Like in past sessions, lawmakers introduced plenty of ideas to restrict property taxes and budgets. We were successful in killing many of the poor bills or in encouraging committees to turn those bills into studies.

CAPS BILLS

HB 1167 created a central taxing authority but was turned into a study of property tax equity and central taxing authority. This was passed unanimously by the House.

HB 1192 would have placed a cap on property tax values and levies without voter approval and exempted counties from using home rule authority to circumvent the caps. This bill was defeated in the House. 

HB 1200 would have placed a 2% cap on property tax levy increases and would have required a vote to exceed the levies but limited the voter approved levies to no more than one year. This bill was defeated by the House.

HB 1291 required property sold for less than the true and full value to be reduced to the sale price value and was defeated.

EXEMPTIONS

HB 1277 increases the new construction exemption threshold from $150,000 to $250,000 for up to ten years with voter approval. This bill passed in the House.

HB 1471 expands the church-owned property tax exemption to include up to 25 acres of undeveloped land owned by a religious organization to be used for future church buildings. The exemption will expire after 10 years if construction has not commenced. This bill passed the House.

Elevator Exemption, SB 2041, expands the exemption of elevators owned for personal use to include storing or processing grain or potatoes produced by the owner. This bill passed the Senate.

Daycare Exemption, SB 2202, expands the exemption of daycares to include buildings owned by non-profit organizations and leased to a licensed daycare. This bill passed in the Senate.

VETERAN AND SENIOR EXEMPTIONS

HB 1325 froze the property value on primary residences owned and occupied by anyone age 65 or older. This bill was turned into a study on the adequacy of property tax relief for retired individuals and passed the House.

HB 1372 would have expanded the Homestead and Veterans Credit property tax exemptions by freezing the value of the primary residence for as long as the qualifying individual owns the property. This bill failed in the House.

SB 2213 raises the threshold of the amount of value exemption for veterans from the first $6,750 to the first $9,000 of taxable value of the homestead owned and occupied by a disabled veteran. This bill passed in the Senate.

SB 2270 would have allowed for a 75% reduction in the true and full value of the primary residence of individuals 65 or older. This bill was defeated by the Senate.

FORECLOSURES

HB 1136 and HB 1199 deal with excess proceeds from the sale of foreclosure properties.  Both bills required that the excess proceeds must be returned to the owner of record title. Current law requires the excess proceeds to be credited to the county general fund. The House defeated HB 1136 by 3/86 but passed HB 1199 by 89/0 after an amendment clarified the definition of owner of record to include the estate of a deceased owner.

HB 1500 increased the number of years for delinquent taxes before foreclosure from two years to five years and was defeated in the House.

SB 2280 allows commissioners to establish a new appraisal price on foreclosure properties between annual sales for properties not sold at the annual sale of taxes. The Senate passed this bill.

OTHER PROPERTY TAX BILLS

SB 2192 required the interest and penalties for late payments be included on the tax statement. A survey of county auditors showed that most counties are already providing that information either printed on the statement or as an enclosure with the tax statement. This bill was defeated in the Senate 20/26.

SB 2260 corrects outdated language in the century code related to road and bridge property tax levies and the co-mingling of highway tax distribution funds with county road and bridge levy funds. This bill clarifies what has been a long-standing accounting procedure and passed the Senate 46/0.

HB 1367 allowed preliminary budgets to be referred by the voters for approval or be frozen at the previous year’s levies. This bill was turned into a study to consider the current preliminary budget deadlines and petition requirements for placing the question on the ballot. The study,   HB 1367, was approved by the House 92/2.

 HB 1157 allows townships to levy mills necessary for emergency purposes. The House approved this bill.

PUBLICATION REQUIREMENTS

Efforts to revisit two publication requirements that had close votes in 2019 Legislative Session met resistance this time around. HB 1108 sought to eliminate the requirement for counties to publish the list of bills they pay if it is on their website. SB 2231 would have eliminated the requirement to publish election results in the paper if posted on the counties website. Both bills were defeated.

HB 1179, which eliminates the reporting requirement for counties receiving oil & gas production tax allocations, was approved by the House.

HB 1349 requires the public to have electronic/remote access to public meetings held by electronic means, that the remote access information be provided in the notice, ensuring there is adequate electronic capacity. This passed the House.

 ELECTION ISSUES

It has been quite a legislative session in addressing the substantial amount of election-related bills. More than 40 bills were introduced, a large majority of them look to reform North Dakota’s election laws and practices in response to experiences in the 2020 election in other states. Most of the bills are moving forward, some with improvements; but we will lean on auditors to help educate their senators on these issues following crossover.

Those Election bills still alive are:

• HB 1238 will require polling locations in every legislative district.
• HB 1173 will require the full text of a constitutional measure or initiated measure to be printed on the ballot. The House defeated a similar bill HB 1119.
• HB 1189 creates a deadline for election results to be delivered to the county auditor. The bill was introduced with a 90-minute timeline and was amended to three hours. In more than half our counties in 2020, it took election workers more than three hours to return with the canvas report.
• HB 1373 shortens the length of time allowed for early voting from fifteen days to nine business days.
• HB 1447 will allow for a college ID form to be used with a photo ID for ND residents.
• HB 1256 prohibits counties from accepting grants for elections.
• HB 1253 is an extensive 80-page bill making changes and updates to 101 sections. The Secretary of State worked with Rep. Louser on the introduction of this bill. The County Auditors Association requested additional improvements to the bill, which were not included. We will work with the Senate to get those requests considered. 
• SB 2142 was introduced to provide additional time (three business days) to process absentee ballots.

 Those Election bills defeated include:

• HB 1182 would have allowed county candidates to list a political party on the ballot.
• HB 1161 would have created a time limit for voters to complete their ballots after the polls close. This language is included in HB 1253.   
• HB 1312 would have limited vote by mail.
• HB 1280 was an extensive change of election law. It would have severely restricted absentee voting, prohibited early voting and mail in voting.

 HIGHWAY & DRAINAGE ISSUES

The “Culvert Bill,” SB 2324, is likely the issue of greatest concern in this category. The language added to a section of current law (and passed by the Senate) shifts the control over when stream crossing improvements must be made in state, county, and township roads. Past understanding of this section has been that WHEN a township or county is reconstructing a road, they are to install culverts (or a bridge) sufficient to meet the results of the state engineer’s stream flow analysis, if provided. If SB 2324 becomes law as passed by the Senate, it appears that the local road authority must upgrade the culverts (bridge) WITHIN ONE YEAR of the state engineer’s analysis. This appears to allow the landowners petitioning for a crossing determination and the state engineer to effectively establish local road construction priorities for the township or county. Also, it requires the court to order the local road authority to pay court costs if a landowner takes the matter to court because the crossing was not upgraded - creating more of an incentive for attorneys to willingly take these matters to court. The bill does allow the local road authority to delay the construction "for good cause," but that is not defined and will certainly take a series of court cases to iron out.

Road Trains, SB 2026, was also passed by the Senate and remains a concern to counties. This permits the governor to use his emergency powers to pilot the use of road trains in North Dakota, despite opposition from the Motor Carriers, counties, and townships. Work in the House will be needed on this one. A related resolution, HCR 3001, petitions the federal government to allow road trains on federal highways.

Bonding for Roads, HB 1116, was discussed in the “county financing” section, but it is most important for county roads. The bill will allow county boards, on their own motion, to bond for road construction projects, using their dedicated road levies as well as their capital improvement levies to service the debt. This was passed in the House.

F&W Regulation Study, SCR 3019, was passed by the Senate to study the fiscal and safety impacts of US Fish and Wildlife Service easements on NDDOT, Dept. of Agriculture, and counties.

The NDDOT Budget, SB 2012, saw a modest increase in funding as it came out of the Senate, basically recognizing the funding that the Bonding Bill (HB 1341) would provide. An amendment was added to permit NDDOT to assist townships on road projects, earmarking $500,000 for that purpose. As discussed in the Major Funding section, the OMB Budget (HB 1015) also contains $8.1 million for $5,000 grants to every organized and unorganized township for roads, and particularly the match needed for federally funded disaster-impacted road restorations.  

The UGPTI Budget, is included as a piece of SB 2020. This budget was enhanced in the Senate, restoring the 5% reduction required by the Executive Budget. If this funding level remains intact in the House, the “local roads study” and the “GRIT” road asset management system will be maintained. The Senate declined to consider a supplemental request for a new program in remote sensing of transportation infrastructure.

Tile Drainage Update, HB 1437, was passed by the House and would require an individual proposing a small tile drainage project (<80 acres) to prepare and submit a report to the local water board before installing.

INSURANCE & LIABILITY ISSUES

Liability limits of state and local government were addressed in HB 1057. This OMB bill proposed by the State Risk Pool (state equivalent of NDIRF) came because of the defeat of a massive increase in government “tort caps” in 2019. After study, it was agreed that a phased, modest increase in these caps were due, as the “individual limit” of $250,000 has been in place since 1997. Although the committee was informed that this change likely will cause an incremental increase in premiums, it was passed.

The Fire & Tornado Fund is addressed in the passage of HB 1086 which improves the ability of NDIRF to continue its administration on behalf of the ND Insurance Dept.

 NDPERS RETIREMENT FUND

The Legislature has continued the debate on how to increase the solvency of the NDPERS retirement fund into the future. Several proposals are still alive, while some of the more aggressive approaches are not. Importantly, the significant pandemic relief currently being debated in Congress promises significant funding to state government, some of which has been discussed as a possible source to make a one-time injection into the NDPERS Retirement Fund. This proposal, however, is coupled with the suggestion that the defined-benefit (base program) option would be eliminated for new employees. The following is a summary of the state legislature’s NDPERS retirement proposals.

 Those NDPERS Retirement concepts defeated include:

• SB 2042 ultimately suggested a 5.12% (of salary) Increase to Employee contributions Jan. ‘22.
• HB 1342 proposed a 1% increase to both Employee and Employer contributions Jan. ’22. 
• HB 1380, the “Streams Bill”, originally proposed dedicating Legacy Fund earnings to the NDPERS Retirement fund, but this provision was amended out before passage.

Those NDPERS Retirement concepts that remain alive are:

• SB 2046 implements a 0.5% increase to both Employee and Employer contributions Jan. ’22. 
• SB 2045 allows NDPERS may charge employees an admin expense for deferred comp plans.   
• HB 1209 NDPERS to develop plan to close the defined benefit retirement plan for new employees.
• HB 1041 may be of considerable interest to county auditors and payroll administrators, as it expands the ability of NDPERS to levy penalties for late payments or non-compliance. 

PUBLIC HEALTH ISSUES

HB 1163 adds language to current law to cover supplies that are distributed in connection with the syringe exchange program. The language was added to expand protection for local health units and those administering the program from being in violation of possessing drug paraphernalia. The bill passed the House.

Onsite wastewater recycling was studied during the interim with all parties involved agreeing changes to the current system are much overdue. The NDACo and NDSACCHO adopted resolutions supporting improvements for regulators and installers. HB 1183 seeks to establish an advisory board similar to the ESC3 Statewide board with respect to 911. The House passed the bill.

HB 1247, if passed, will merge the Department of Health with the Department of Human Services. There are considerable questions regarding the logistics and details of how this would look, including its effect on local public health units. This was passed in the House.

Immunization bills

Several bills addressing immunizations failed in the House including:

HB 1320 which sought to eliminate the immunization requirement for entry into school or day care.

HB 1377 would have created additional exemptions for businesses requiring vaccines not approved by FDA.

HB 1468 would have required additional and extensive documentation of risks associated with vaccines to be provided. This bill was opposed by several physicians, pediatricians, nurses, the Department of Health immunization program and local public health. Some concerns expressed included infringement on the doctor-patient relationship and significant cost burden.

HB 1469 would have required information, including a Department of Health education module, providing the risks of not vaccinating as a condition of exemptions being granted.

State Health Officer related bills

HB 1480 requires that the State Health Officer be a licensed physician, which would remove the requirement for a three-person board in the case of a non-physician appointment. This passed the House.

SB 2331 would have made the State Health Officer an elected position. The Senate defeated the bill. SCR 4015 is a resolution that was introduced shortly prior to crossover. If approved, this resolution would allow voters to decide whether or not the state health officer should be elected and if the candidate must be a physician licensed to practice in this state.

Tobacco related bills

HB 1152 will allow for cigar bars and lounges. This bill went to the House without recommendation and passed narrowly by three votes.

HB 1420 legalizes “adult use” of recreational marijuana. It was introduced in an effort for the legislature to head off a ballot measure and allow for greater control and regulation. If passed, this bill includes limitations for possession and purchases within a given timeframe; restricts the sale of marijuana to the compassion centers currently authorized to sell medical marijuana; prohibits public use; and prohibits independent growing. A separate bill (HB 1501) addresses the tax policy of “adult use” marijuana. Both bills passed the House.

SB 2156 raises the legal smoking age to 21 years. The bill aligns ND with Federal law and easily passed the Senate.

SB 2188 restricted the authority of local subdivisions. Local public health joined with the League of Cities to defeat this pre-emption bill and uphold current local decision-making with regards to consumer merchandise such as tobacco and tobacco products.

SB 2189 adds electronic smoking devices to code regulating to tobacco products and requires licensure and reporting for those who sell these products. Additionally, SB 2189 provides a legislative study for reduced harm nicotine products as proposed by the FDA. This passed the Senate.

Public Health Funding

The ND Department of Health budget, SB 2004, was favorably amended to include the restoration of tobacco prevention and control funding to local public health. The Senate included a one-time $10 million Optional Adjustment Request funding to local public health for ongoing COVID-19 expenses. The bill also raises the per diem expenses of the state health council and further included a legislative management study regarding the roles of the state health officer, health council, medical advisory board and governor as they relate to the administration of the state department of health.

SB 2303 allows for one tribal group to establish its own local health unit if desired. The bill’s intent is to provide equal opportunities for all tribal entities. While testimony supporting the bill was complimentary concerning the working relationship among tribes and local public health, there are still several concerns about adding any additional health units. This passed in the Senate, further discussions are expected when the bill is heard in the House.

PUBLIC SAFETY ISSUES

Several public safety priority initiatives that NDACo was instrumental in getting introduced are still alive and moving forward.  

The Primary Seat Belt Law, SB 2121, was passed by the Senate, and is now in the hands of the House. The bill changes two things from current law: 1) requires all occupants in a motor vehicle to wear a seat belt, and 2) makes the offense primary.

The prioritization reimbursement bill, HB 1112, requires DOCR to enter into an agreement with local jails when in the prioritization plan and pay for the housing and medical costs for those state sentenced inmates.

HB 1146 makes corrections to the SIRN radio cost share program to allow for fire and EMS districts to be eligible for the state cost share.

HB 1122 allows the POST board to handle the licensure of reserve officers.

SB 2244 looks to increase the civil process fees. These fees haven’t been adjusted in more than a decade. The proposed increases will put ND fees in line with other states. This bill passed the Senate.

Lawmakers introduced numerous bills under the pretext of justice reform. Law enforcement opposed many of those initiatives as they compromised public safety. In addition, law enforcement worked diligently to educate lawmakers on the negative impacts and unintended consequences of several bills. Assessing the number of harmful bills that were defeated clearly indicates their presence and correspondence with lawmakers was effective. NDACo tracked more than 215 public safety bills this session.

Public Safety concepts defeated include:

• HB 1340 was one of the most concerning law enforcement related bills that would have restricted law enforcement from entering private property for searches.
• HB 1104 would have reduced the amount of time violent offenders are required to serve on a sentence from 85% to 65% of their sentence.
• HB 1123 would have allowed individuals arrested for misdemeanor offenses to be released on their own recognizance.
• HB 1270 included concerning language that would have restricted law enforcement’s ability to do surveillance. The bill was amended to address law enforcement concerns.
• HB 1296 sought to make booking photos confidential.
• HB 1257 would have repealed the law requiring those under 18 to wear seatbelts.
• HB 1443 required the POST board to provide bias training.
• SB 2234 would have allowed medical marijuana patients to home grow marijuana.

Public Safety concepts passed that remain a concern include:

• HB 1383 would impact the working relationship between locals and federal agents as this bill prohibits local law enforcement from helping to enforce federal firearm laws.
• HB 1391 allows for edible medical marijuana. HB 1420 “adult use” marijuana also allows for edible marijuana.

Other Public Safety concepts worth noting:

• HB 1287 enhances the penalty for drug sales connected to death by overdose. This bill passed the House.  
• HB 1435, if passed, would provide health insurance to the family of a law enforcement officer killed in the line of duty. This bill was amended to be funded from the PERS fund. The House passed this bill.
• HB 1470 proposes to study the behavioral health needs of inmates. This bill was passed by the House.
• HB 1380 makes improvements to the civil asset forfeiture law passed in 2019. This bill is based on suggestions from the Attorney General’s office. It was passed by the House.  

There were numerous Firearms and dangerous weapons bills introduced this session and several of them still are alive including:

HB 1498 would allow individuals to use deadly force against an assailant without needing to retreat first. The “stand-your-ground” bill expands the current “castle” law by allowing a person to use deadly force anywhere they are legally allowed to be. This bill passed the House. A similar bill, HB 1193, was defeated.

HB 1248 prohibits a city or county from enacting a zoning or other ordinance relating to the sale, purchase or possession of a firearm or dangerous weapon.

HB 1293 allows individuals with CWL to carry a loaded handgun in vehicle and allows for open carry at any time.    

HB 1297 prohibits possessing firearm or dangerous weapon at a school or school-sponsored event on school property. Individuals with concealed weapons licenses can carry in a church with approval. Violation is a penalty of $50. The House passed this bill.

HB 1311 would have allowed firearms in public buildings. The House defeated this bill.

HB 1339 was a concerning bill as introduced relating to dangerous weapons but was amended in committee to propose a legislative management interim study of dangerous weapons and public gatherings.

HB 1450 reduces the time for which an alcohol offense conviction is a disqualifier for CWL.

HB 1463 authorizes ambulance or fire crews to carry while on duty with permission.  

EMERGENCY AUTHORITY

Many bills sought to restrict the governor’s authority along with the authority of local officials during emergencies. The following bills are still alive:

• HB 1457 requires county and city commissioners to renew local disaster, emergency, or evacuation orders at regularly scheduled meetings.
• HB 1118 requires legislative management to vote on requesting the governor to call a special session during a public health emergency.
• HB 1180 removes the governor’s authority to suspend or limit sales of alcohol during declared state or disaster or emergency.
• HB 1386 prohibits a state agency or political subdivision, including local public health, from limiting hours of operation or capacity of a private business.
• HB 1495 allows legislature to determine when emergency ends. Limits the duration of an executive order relating to an epidemic or pandemic to 30 days. Extended only with consent of legislature for 30 days at a time. Allows for remote session to address.
• HCR 3005 would allow voters to decide if legislature should convene to consider bills or items vetoed by the governor or to address an emergency or other urgent situation.

Three bills address the governor’s authority in relation to elections. They stem from the COVID-19 pandemic when the governor suspended the requirement for every county to have one physical polling location. Every county conducted the June election vote by mail only. HB 1198 prohibits the governor from reducing the minimum number of physical polling locations. This bill was passed by the House. Two other similar bills, HB 1171 and SB 2193, were defeated.

Click here to see the status report for county related bills tracked by NDACo.