Schedule for Week of February 4th

Legislators have been picking up the pace on acting on bills in committee as well as acting on bills during floor session. Lawmakers have a Monday deadline to get bills with an appropriation out of policy committees and forwarded to Appropriations for their review. 

We have learned there are amendments in the works for the Infrastructure funding bill, "Operation Prairie Dog". However, as of now we have been told the counties funding is secure. 

NDACo has been involved in working very closely with the Senate Human Services committee and the Department of Human Services on amendments for the Social Service Redesign bill, SB 2124. 

There was a large contingency of law enforcement opposing HB 1286 which makes changes to the current asset forfeiture process. Law enforcement support reporting requirements but oppose requirements that there must be a conviction and a requirement for funds to go to the state common schools trust fund versus with agencies and task forces to use in fighting criminal activity. 

The link the schedule for the week of February 4th can be found here:  https://drive.google.com/open?id=1UYN68bKBb6JmgDDU7woUqjzFEODPM8X_

Update on Gas Tax and Tobacco Issues

The Senate Finance and Taxation Committee acted on SB 2288 (gas tax) Tuesday morning. The Committee approved a motion to amend the bill to 27 cents, instead of 30 cents – which changes it to a 4 cent increase. The committee gave the bill a Do NOT Pass recommendation by a vote of 5-1. Committee members opposing the increase stated that the need for additional funding wasn’t demonstrated and that the Interim Government Finance Committee reviewed funding issues and didn’t see a need to make any recommendations.

Several bills pertaining to tobacco and tobacco products have been heard with a few being defeated on the floor already.  HB 1236, a bill to raise the minimum age of sale for tobacco products to 19 was reported out of the House Human Services committee with a Do Not Pass recommendation, 8-5 with 1 absent and not voting.  The bill subsequently failed to pass the House 25-63.

The House Human Services Committee further recommended a Do Not Pass on HB 1274 which would make it illegal to smoke in a vehicle with a child under the age of 9.  Arguments against passage included arbitrary age, infringement on personal rights and difficult enforcement.  HB 1274 failed on the floor 31-57.

The House Finance and Tax Committee sent HB 1450 to the floor with a Do Not Pass recommendation, 11-2.  Representatives who spoke in favor of supporting the Committee’s Do Not Pass decision, argued the tax was “regressive in nature”, and was not a large revenue-producing source at the proposed price increase.  It was also noted that the majority of ND voters defeated the initiated tobacco tax increase measure by 62-38% and therefore not supported by the population.  The House failed to pass HB 1450, 25-66.

HB 1386 also failed in the House 22-69 after receiving a Do Not Pass recommendation from the House Finance and Taxation Committee. Opponents of the bill did not believe it was in the best interest of the public to reclassify the tobacco vs nicotine definitions and were reluctant to include electronic devices stating the CDC has noted vaping is the most popular method to quit smoking. Further objections included the addition of accessories and/or components of the device stating there is no precedence.

Despite testimony from organizations such as TFND, ALA, ACS-CAN and ND DOH in support of the bills aimed at preventing youth smoking, the bills faced strong opposition from vape shop owners and industry personnel who testified against the legislation. 

House Defeats Numerous Property Tax Cap Bills

The North Dakota House of Representatives voted to defeat four property tax bills including bills that involved proposals to cap valuations or growth in budgets. These bills were heard last week in the House Finance and Taxation committee and were given Do Not Pass Recommendations. NDACo along with the assistance from county officials testified in opposition to HB 1261, HB 1221, HB 1182 and HB 1390. Rep.Alisa Mitskog summed it up well when carrying the HB 1390 on the floor. "This bill will limit the ability of our local political subdivisions to make decisions which will have a direct impact on the services in our communities. This is a financial burden on the state with a fiscal note of $100 million over the next two bienniums and it impedes local control."  
More detail on those bills can be found on the blog post from January 21st.

Another property tax cap bill had a hearing in the House Finance and Tax Committee. HB 1380 would cap budgets at 3%, with a 66% voter approval that cap could be raised. This cap would also apply to home rule cities and counties. NDACo testified in opposition to this bill. See testimony here: https://drive.google.com/open?id=1eP6jQ9PAcBjibiFxDmnWWxHpzOM1h0EK

In addition, NDACo provided input on three bills heard Monday in the Senate Finance and Tax committee relating to the farm residence exemption. NDACo provided supportive testimony for SB 2351 which clarifies that the individual who wants the farm residence exemption must provide the information necessary to prove they are eligible for the exemptions. Here is a link to the bill: https://www.legis.nd.gov/assembly/66-2019/documents/19-1143-02000.pdf
SB 2360 changes the qualification to 66% of gross income must be from farming income and removes the married income threshold, the proposal would allow the farm residence exemption to be available for all farmers.

Public Health pushes for restoration of funds

The Human Resources Division of the House Appropriations Committee heard testimony from local public health units on HB 1004, the Department of Health budget.  Administrators from various health units requested restoration of the $525,000 State Aid reduction in the Governor’s budget.  Representatives from multi-county, single county and city/county health districts explained ramifications of the proposed reduction.  State Aid funds are used for gap funding to provide needed community services not funded through other sources.  Some unfunded needs include collaboration with tribes, case management, maternal and child health, vaccine chart review, balance of Family Planning practitioner salary and benefits not paid by insurance, nuisance inspection for community members, Community Health Assessment, behavioral health education and referral.  The $525,000 restoration would merely hold level 2017-19 state aid funding.

Legislative Schedule for Week of January 28th

It was an incredibly busy week of hearings on county related bills. You can read about a majority of our activity on prior blog posts. Now that the filing deadline has hit for House and Senate bills we have a clearer picture of what to expect going forward. As of today we have 502 bills that we are tracking. That is a record for NDACo! Typically we track around 400 bills. 

Here is a link to the schedule for next week. https://drive.google.com/open?id=1t15UXzsFjyzEq6ztaRytKx_WE_QuCxOm

You will notice a few tabs on the spreadsheet, you will see the master schedule, the auditor-treasurer schedule and a schedule for public safety related bills. 

Update for Tuesday, January 22nd

The Senate voted to reconsider the primary seat belt bill Tuesday. The bill failed 23-23 Monday with Senator Scott Meyer absent. Meyer requested the bill be reconsidered Tuesday. Meyer, who is a sponsor of the bill told his colleagues about an incident 20 years ago when he was driving a farm truck. "It was a very hectic time, I got in the truck and started driving and didn't put my seat belt on. But then a voice in my head told me to buckle up. Moments later, I rolled the vehicle. That seat belt saved my life, and because of that I have the opportunity to vote here today."
After some debate about regulating safety and personal freedoms, the Senate passed SB 2060 with a vote of 24-23. The bill will move the House.

NDACo along with members of the transportation coalition supported a SB 2288 to increase the gas tax 7 cents from 23 to 30 cents. "This increase will bring enhanced revenue with a much greater degree of certainty to future funding – allowing counties to more effectively plan and program improvements for greater efficiency and cost-effectiveness," testified NDACo Executive Director Terry Traynor.

Some of the other hearings we have been involved in recently include...

NDACo provided supporting testimony for HB1356 which raises the bid threshold on public works and public improvements from $150,000 to $250,000 as well as the threshold for professional services from an architect or engineer to that same amount.  Other testimony in support of the bill was given by the League of Cities and Department of Corrections, as well as other city folks, all who felt the $150,000 threshold did not work for the current costs on projects that are typically needed repairs that don’t require the additional expense an engineer or architect.  Opposition to the bill came from contractors and the American Council of Engineering who felt that bidding construction and professional services should be treated separately.  Amended language has been offered that provides that no expenditure threshold would apply for construction of public improvements when the expertise of an architect or engineer is required to protect the health, safety or welfare of the public.

HB1212 changes the makeup of a County Fair Association board from being residents of the counties in their association to residents of the state.  The bill sponsor, Representative Gary Kreidt (R-33), supported the change stating that it is difficult to fill voluntary boards and that some counties have combined with other counties and some have filled boards with members outside their county.  Opposition testimony came from Morton County Commissioner Andy Zachmeier and former County Commissioner and Legislator Jim Boehm, along with Morton County Auditor, Dawn Rhone.  Fair Boards are not appointed by County Commissioners but are funded with county general fund dollars, causing the committee to question the board consisting of members not in the county. 

SB2189 passed unanimously out of committee and changes the deadline for city and county boards of equalization from the second Tuesday in April to the first fifteen days of April.  The bill was approved with an amendment adding back the language that an assessor who performs duties for two or more cities or townships can hold the equalization meetings for those jurisdictions any day in the month of April.

NDACo testified in opposition to SB2174 which would require water resource district board members to be elected rather than appointed by the county commissioners.  Supporters referenced a frustration with a lack of accountability from water board members who are not elected.  Opposition was heard from Red River Joint Water Board, Richland County Water Board, Burleigh County Water Resource District, and NDACo, all testifying that the oversight for appointed water boards is provided by the county commissioners that appoint them and that water resource boards enforce regulatory law and decisions are sometimes unpopular which would make it a challenge to find people to run.

House Tax Committee Hears Various Cap Proposals

The House Finance and Taxation spent Monday’s holiday reviewing five individual bills that proposed various caps and limitations on property values and taxes. Other than the prime sponsors, the bills had no one testifying in support, but well reasoned opposition from counties, cities, schools, realtors and home builders was presented.

1182 - Proposed a 3% cap on the growth of valuations. Minot Tax Assessor Kevin Ternes explained to the committee that this bill would create an unfair tax rates for property owners. Those living in a more expensive home in a highly desirable area would have a lower tax rate than a smaller home in an older part of town. NDACo Executive Director Terry Traynor said this bill if passed could result in the shift of burden from one class to another; from residential to agriculture and commercial parcels. Committee chairman Craig Headland told his committee, "over the years we have seen every type of cap bill, we have learned that any time you start messing with the calculation, you create inequities with property taxes and an unfair system."

1221 - Proposes to extend the length of time from when a tax bill becomes due and when the property is subject to forfeiture from three years to five. Cass County Auditor Mike Montplaisir explained how the current process works well. "For homeowners, when they are three years behind they can still recover. The further they get behind the harder it becomes for them to stay in their home." He explained how counties work with citizens to help them make installments or find other solutions to pay the delinquent taxes. A majority of the delinquent properties are developer lots. 

1261 - Would provide the profits from foreclosure sales to go to the property owner instead of the county. NDACo provided testimony illustrating how this would be complicated. "Counties lose money on most tax foreclosures. Excess proceeds help offset the costs incurred by counties for insuring, cleaning, and demolishing properties that owners have abandoned.   North Dakota county auditors have expressed concern that it will be a challenge to determine who should be paid the excess proceeds in instances where the owner on record has died; where there are judgments, liens, or mortgages on the property; if the owner is a partnership or corporation; or when the owner of record cannot be found," explained NDACo Research Analyst Linda Svihovic. 

1390 - Would freeze increases in property taxes "What pay in dollars last year, would be what you pay this year. If a taxing jurisdiction wants to raise taxes, it will need to be voted on by the people," said bill sponsor Representative Mike Schatz.

Traynor questioned the need for this bill, citing a report provided during the interim that revealed 47 of the 53 counties have lowered property taxes in at least one of the last two years and 13 counties have lowered in both. "County officials believe this would result in no property tax decreases - ever," said Traynor. "As an elected official could not know if the next year, or the year after, would involve a snow emergency, a flood, or a protest, it would only be prudent to never lower taxes to ensure that any potential need three, five, or fifteen years down the road could be met and the county board had not jeopardized their citizens."

1487 - Proposes a property tax freeze for seniors living in a home. The freeze would apply against property taxes levied on the first $400,000 of true and full value of a primary residence. NDACo testified in opposition of this bill, stressing how this would shift taxes to other property taxpayers. 

The House Finance and Tax Committee met later Monday to discuss and vote on the bills. They gave HB 1182, HB 1221, HB 1261 and HB 1390 Do Not Pass recommendations. They did not take action on HB 1487.