Committee advances campaign finance overhaul, narrows federal PAC reporting burden

The State and Local Government Committee recommended a due pass on a campaign-finance amendment and on the amended bill (related to 1377 and 2156), voting 6-0 after hearing staff and agency explanation of technical changes, an attorney general opinion, and proposed filing rules for federal political-action committees.

Dustin Richard of Legislative Council summarized the amendment’s major points, including several technical changes to bring the bill into conformance with an attorney general opinion about federal filers and a proposal to exempt the governor’s Executive Mansion from the definition of state property under the corrupt-practices provisions. ‘‘This is meant to basically be in compliance with that attorney general’s opinion,’’ Richard said, describing added subsections that address federal-only filers and reporting requirements.

Michael Howe, North Dakota Secretary of State, told the committee the attorney general’s opinion (issued March 6) changed long-standing state practice. ‘‘Our office had been interpreting the law, according to the attorney general, incorrectly for the last 30 years,’’ Howe said. Under the AG opinion, federal PACs that participate in North Dakota elections must also file certain state reports rather than only filing to the Federal Election Commission. Howe said the amendment limits the scope of that requirement so a federal PAC must report for activity in North Dakota but would not be forced to keep filing in the state after it ceases activity there.

The amendment also mirrors prior Senate language to allow the Secretary of State to adjust certain thresholds for inflation, adds definitions (including a broad definition of ‘‘political committee’’), and inserts an application clause to direct filers governing transactions that occur in 2025 to comply with the old law until the new law takes effect on Jan. 1, 2026. Legislative staff explained the repeal of the old chapter will be effective Jan. 1, 2026, but filers with transactions in 2025 must follow filing rules that apply to those transactions.

Committee members asked for clarity about how the change affects out‑of‑state federal PACs and whether other states exempt their governor’s residences from property rules. Richard and Howe explained the amendment limits state filing obligations to activity within North Dakota and that many states treat the governor’s residence as a special, state‑owned private residence for certain rules. The amendment also includes a provision that would exempt the Executive Mansion from being treated as ‘‘property’’ under the corrupt-practices section; staff said that prevents everyday activities at the governor’s residence from inadvertently triggering prohibitions while not authorizing improper political use of state buildings.

A motion to approve the amendment (moved by Senator Castaneda; seconded by Senator Wallen) passed on a 6-0 roll call. The committee then voted 6-0 to give a due-pass recommendation on the amended bill (moved by Senator Wallen; seconded by Senator Barta). Committee members said they view the package as a close-to-compromise set of changes that restores certain reporting consistency and addresses the attorney general’s interpretation without imposing persistent filing obligations on out‑of‑state federal PACs.

Why it matters: the amendment clarifies filing obligations for federal political committees participating in North Dakota campaigns, updates filing thresholds and reporting categories, and sets a Jan. 1, 2026 effective date while directing filers on how to report transactions that occur before that date.