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.