Legislative Update: 10 days left max

We are grinding to the final final days of Legislative Session. It's been years of days and there are a few MAJOR items left to be worked through. The Legislature wrapped up last week on Legislative Day 70. Conference Committees met last Saturday as legislators push to finish work with limited days remaining. We are anticipating that they might also touch this Saturday. 

PROPERTY TAX
All three property tax bills are still alive, but HB 1168 has been heavily amended ("hoghoused"). Originally, the bill proposed a 10-mill buydown providing relief for residential, ag, commercial, and centrally assessed property. However, the Senate Finance & Taxation Committee amended it to more closely mirror HB 1176 and rereferred it to Appropriations.
 
Key highlights of HB 1168 in its current form:

• Credit amount is 75% of property tax due, with a minimum of $500 and a maximum of $1,650.
• Includes intent language to broaden tax relief in the next session across other property classes.
• Tax credit may be applied toward voter-approved levies.
• HB 1168 passed the Senate on Friday.

Conference committee discussions continue on HB 1176, and HB 1575 remains in Senate Finance & Taxation.
 
APPROPRIATIONS: NDDOT BUDGET
The Department of Transportation budget passed the House on Friday afternoon - forcing the sides to go to Conference to settle out the differences. While infrastructure funding remains strong, the bill proposes significant changes in funding structure:

• $380 million for the Flex Fund, funded through the Strategic Investments and Improvements Fund (SIIF).
• $155 million in Highway 85 funding via bonding.
• 5-cent gas tax increase proposed.
• Direct distributions and grants for counties, cities, and townships.
• Increases distribution of Legacy Fund earnings from 7% to 8% of the five-year average fund balance:
  • Roughly $102 million allocated first to debt service.
  • 25% of remaining funds to the Highway Fund.
  • Remaining balance to the Legacy Property Tax Relief Fund.

Conference committee meetingS were held on Saturday..

 
UPDATE ON KEY BILL

• HB 2225 – SUPPORT
  • Provides $30 million for the Housing for Opportunity, Mobility, and Empowerment (HOME) Grant to address affordable and market-rate housing needs.
  • Senate originally proposed $50 million; House adjusted to $30 million.
  • Heading to Conference Committee. 

FINAL ACTION
PASSED

• HB 1119 – SUPPORT
  • Commissions a study on childcare licensing, program resources, and rule effectiveness.
  • Establishes a childcare services licensing advisory committee for provider input.
  • Update
    • Passed both Chambers (House was 82-11, Senate was 41-6)

 

• SB 2282 – SUPPORT
  • Establishes a 50% income tax credit for North Dakota businesses contributing to employee childcare, capped at $500 per employee per year.
  • Changes ensure flexibility for cross-border employees working in North Dakota.
  • Sure to be on our Legislative Scorecard as this is a Top 5 favorite bill of the session.
  • Update
    • Passed both Chambers (House was 80-13, Senate was 47-0)
    • Headed to Gov Armstrong

 

• HB 1248 – SUPPORT
  • Addresses the process for applying private-sector healthcare mandates.
  • Retains the 2-year pilot with a required cost-benefit analysis but removes the requirement for PERS to submit a bill afterward.
    • GNDC now supports the bill.
  • Update
    • Passed both Chambers. (House was 94-0, Senate was 45-2)
    • Headed to Gov. Armstrong

FAILED

• SB 2234 – SUPPORT
  • Would have funded Competitive Choice Ready Grants to help high school students meet choice-ready standards.
  • Original $2 million appropriation removed; bill turned into legislative intent.
  • Update: Bill failed 0-47-0. 

Mark your calendar for June 5 for GNDC’s Legislative Report — an exclusive event for members! Celebrate successes, discuss challenges, and recognize those who supported North Dakota’s business community. Receive a breakdown of the legislation that passed, its implications for your business, and its potential impact on your bottom line. This event will be held virtually. Register now to receive login details!