Prison Prioritization Plan Shifts Costs to Counties

A plan to help the state manage its prison population has shifted a substantial cost to counties to a tune of $65,000 in 2019. The Legislature during the 2017 session, provided authority to the North Dakota Department of Corrections and Rehabilitation to implement a prioritization plan in order to manage the prison population. In May 2019, DOCR notified Sheriffs and Jail Administrators that the population of female inmates had reached its operational capacity as set by DOCR and the prison prioritization plan would be in effect for female inmates. The prioritization plan was in effect from June 1 through September 30th.

The interim budget section requested NDACo to provide testimony regarding the county impacts of the prioritization plan during their December meeting.

“NDACo has been following the prison population closely. In anticipation of the prioritization plan going into effect, we established a “self-reporting” tool for Sheriffs and Jail Administrators to compile inmate information. This will assist in tracking the county impacts of the prison prioritization plan,” explained NDACo Government Affairs Specialist Donnell Preskey. The information includes the number of days the inmate is in a county facility (following the state’s denial of admission), and the housing and medical costs of each individual.

In the four months of the prioritization plan being in effect, DOCR denied admission for 79 inmates in 18 counties. Those inmates spent 870 days in county facilities instead of in the DOCR’s custody. At $75/day – this equates to a $65,250 expense that is now the responsibility of county taxpayers. This cost is just for housing.

“While that state sentenced inmate is in the county facility, that county is responsible for the medical costs as well. Fortunately, we have avoided a major medical event for these inmates. However, it is a question of when and not if; and those costs will be devastating to a county’s budget,” said Preskey.

With the male population growing as well, counties are bracing for how this could affect their budgets in the near future. Addressing this legislation is a top priority for the North Dakota Association of Counties as well as for the North Dakota County Commissioners Association in the next session. Both groups approved a resolution at the NDACo Annual Conference, which sets our legislative priorities. In short, this resolution directs NDACo to seek legislative changes and the funding necessary to either remove state-sentenced inmates from county jails or provide state funding to prevent shifting their housing and medical costs to property taxpayers.

These female inmates are individuals who a District Court Judge has sentenced on a State crime to the North Dakota Department of Corrections. With the prioritization plan in place – DOCR denies admission to these inmates, until DOCR’s “operational capacity” allowed. This resulted in state sentenced inmates, serving at least part of their sentence in a county facility, at the county expense – which falls on local property taxes.

Preskey explained, “The state has based the prioritization plan on DOCR’s ‘operational capacity’ which is not solely based on available beds but the budget for those beds. While we recognize there are only so many beds, along with the legislative goal of improving corrections policy, we need to recognize that county facilities have operational capacities as well. This plan essentially uses property taxes to subsidize the DOCR budget.”

2019‐06. Prison Prioritization Plan. The 65th Legislative Assembly mandated the North Dakota Department of Corrections and Rehabilitation (DOCR) create a prison population management plan to prioritize inmate admissions based on available space in the state system. DOCR began delaying the intake of female inmates in the spring of 2019, forcing counties to maintain state‐sentenced inmates in county jails – shifting the housing and medical costs of those inmates to county property taxpayers. This Association supports legislative changes and the funding necessary to either remove state‐sentenced inmates from county jails or provide state funding to prevent shifting their housing and medical costs to property taxpayers.

Several Interim Legislative Committees Meet This Week

Interim Judiciary Committee 

Numerous Interim Legislative Committees met this week to dive into various issues that will be studied over the course of the next 12 months... 

The Interim Judiciary Committee held two full day meetings this week. Their topics ranged from civil commitment to ethics, charitable gaming, recreational marijuana and juvenile justice. 

• Civil Commitment Study – the committee received information on the civil commitment process. Committee members questioned what steps can be taken to create greater uniformity in the process across the state and inquired about available training. Judge Gion indicated to the committee that the civil commitment law is sufficient, however resources for evaluations and screenings are lacking.
• Red Flag Laws – Representative Karla Rose Hanson made a presentation to the committee regarding Red Flag Laws across the country. Hanson introduced a red flag law bill last session, but it was defeated. The committee had good discussion on this issue. 17 states have Red Flag Laws. 
• Legalization of Recreational Marijuana -  Luke Niforatos with Smart Approaches to Marijuana (SAM) provided information to the committee on the impacts of legalizing recreational marijuana. He shared data illustrating what states are experiencing where marijuana is legal. His information fell in the areas of impacts to public health, fatal crashes, DUI’s, youth usage, potency along with marketing of marijuana products. Colorado for example is #1 in the US for first time youth use. The number of dispensaries in Colorado far exceeds the number of Starbucks and McDonalds combined. His presentation was very informative. Here is a link if you would like to view the stats and information: https://www.legis.nd.gov/files/committees/66-2019/21_5073_02000_1000_presentation.pdf
• Juvenile Justice System Study - The last part of the meeting focused on a Juvenile Justice System Study.  The committee heard from various stakeholders about their work with the juvenile justice system and recommendations for revisions to NDCC 27-20.  NDACo provided a status update on the Request for Proposals that was sent out on behalf of the ND Juvenile Justice State Advisory Group to obtain technical assistance for the study.  A provider of the technical assistance will be selected by November 30, 2019.

The Interim Legacy Fund Earnings Committee traveled to Fargo to receive public input on how to best use earnings from the Legacy Fund. Lawmakers created this committee during the 2019 session. The committee held two meetings this week one in the evening and another during the day to collect ideas from citizens. There was public support for increasing infrastructure investments for roads, bridges and school buildings along with increasing the state funding for schools and eliminating the state’s income tax. Advocacy groups pitched other unique ideas for tourism, recreation, research and various other projects. The Legacy Fund’s balance is at $6.3 billion, with earnings anticipated at $368 million in the 2021-23 biennium.  The Committee plans to travel around the state to gather input from citizens. Their next meeting has not yet been scheduled.

Helms testifies to interim committee

The Interim Energy Development & Transmission Committee received extensive information on gas production and the challenges in capturing and transporting the gas. Director of Mineral Resources, Lynn Helms, emphasized to the committee that major infrastructure development is needed to meet the production. He described to lawmakers that oil and gas production in North Dakota is “in the end of the 1^st quarter of a football game” in perspective to the longevity. Despite low oil prices, production is rapidly growing. He also drew on how technology changes are increasing production. A 2019 well in the first few months will produce 50-75% more than a 2018 well. Helms told lawmakers we have an enormous management problem with gas and the legislature has a role to set incentives to move industry to make investments in this area. A number of companies provided the committee with information on their investments and future projects.

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

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

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

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

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

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

NDACo Supports Sewer System Changes Offers Testimony to Interim Committee

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

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

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

Interim Committee Talks Tax Structure for E-Cigs

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

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

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

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

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

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

North Dakota to Receive $1.47 Million to Modernize 911 Services

The U.S. Department of Commerce and U.S. Department of Transportation have awarded North Dakota’s 911 system $1,473,805 as part of the 911 Grant Program to help 911 call centers also known as Public Safety Answering Points (PSAPs) upgrade to Next Generation 911 (NG911) capabilities.

North Dakota’s 22 PSAPs have been in the process of transitioning to NG911 over the past five years. This grant will help fund the next phase of enhancements to upgrade equipment and operations so that citizens, first responders and 911 call-takers can use digital IP-based, broadband-enabled technologies to coordinate emergency response.

“The $1.4 million in grant funding will absolutely have an impact on modernizing our 911 system so that citizens, first responders and dispatchers can use today’s technology in coordinating emergency response,” said North Dakota NG911 Program Manager Jason Horning. “This will enable the state to continue leading the nation on NG911. North Dakota will be one of the first states to have an IP-based network from caller to dispatcher. That achievement is on the heels of North Dakota being the sixth state in the country to implement a statewide text-to-911 program.”

There are three specific plans for the next phase of enhancements to NG911 in North Dakota. The first includes the implementation of advanced GIS mapping systems that will make it easier to identify a 911 caller’s location. The second will create IP connections to our state’s telecommunications service providers.

“This feature will set the foundation for citizens to share pictures and videos with dispatchers in thefuture, expanding on the text-to-911 service currently available in North Dakota.” Horning added, “Imagine the impact a picture or video will have in relaying information to first responders.”

Thirdly, the funding will assist in dispatcher training. “Our dispatchers are handling more information than ever before and that will only increase going forward. We need to make sure they have the training they need to do their job effectively and efficiently,” said Karen Kempert, 911 coordinator in Cavalier County.

The 911 Grant Program awarded a total of $109 million to 34 states and two tribal nations. The state has three years to use the grant funds.

NDACo Provides Testimony on Social Service Redesign Progress Including Issues Related to Indirect Costs

Traynor testifies at Interim Human Services Committee

The Interim Human Services Committee received the first update on the redesign of county social services since the Legislature passed SB 2124 earlier this year. This monumental legislation provides state funding for county social services, and will result a more efficient method to deliver and administer social services to citizens. The committee recently requested NDACo Executive Director Terry Traynor to provide the county’s perspective on how the project is progressing.

“In June we had a statewide meeting of social service directors, county commissioners, social service board members and county auditors in June. This was surprising in its productivity,” testified Traynor. “When groups of counties were asked to break out and discuss with their neighbors the likelihood of creating zones, it was a testament to the commitment these officials have for implementing the law and doing the best for North Dakota citizens.”

The counties themselves, with very little guidance from the state Department of Human Services, have formed 19 zones. This is from 46 local social service agencies. A statewide transition team has been created involving Traynor, four county directors, and a half dozen DHS staff. They have held weekly meetings to address issues as they surface.

“Obviously, there is a lot yet to do, this is an enormous undertaking, but my confidence is high that results, very positive results, will be achieved,” said Traynor.

The committee asked Traynor to convey any concerns counties have about the implementation of the redesign project. Traynor and NDACo staff have attended numerous county visits to gather input, concerns and ideas.

“We are talking about the delivery of vital human services to the most vulnerable North Dakotans, and we are also talking about the employment of about 1,000 of our citizens. So, there are, and should be, concerns. Officials and staff have some degree of anxiety, and I suspect it will continue through the interim.” Traynor added, “As part of the transition team, we are hopeful that we can lessen this anxiety with each question that gets answered and decision that is made, both locally and at the state level.”

He also summarized the work counties in most zones are doing to find solutions in addressing employee benefits. With 46 separate local social service agencies, there are 46 separate benefit packages. “When we merge employees with disparate benefits, we must do so with great care that we avoid significant impacts to employees and their families or disrupt the benefit programs that are ‘left behind’.”

The longer-term issue for the committee to be aware of relates to “indirect costs” and how the Legislature will address them in 2021. “The various means of addressing space (rental or county-owned), office equipment (agency-owned, or for countywide use), travel (mileage reimbursement, motor pool, agency-owned vehicles), IT support, insurance, etc. are quite different,” Traynor explained. “As planning moves these towards greater uniformity, I firmly believe we will need to be very careful that more of these costs don’t become just partially reimbursable. If this is the Legislature’s decision, it would undoubtedly mean a county general fund tax increase that could taint the success of this important initiative.”