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.