Appropriations committee discusses two bills to create state advanced‑technology/AI grant programs; subcommittee appointed

The House Appropriations Committee discussed two separate but related bills that would establish state grant programs to support artificial intelligence (AI) and other advanced technology research and commercialization.

House Bill 12‑65 would create an information technology compute‑credit grant program funded with $5 million from the Strategic Investment and Improvements Fund (SIF). The measure sets up a program board, a review committee and priorities that favor proposals likely to attract IT businesses to the state. Committee members questioned whether the funds would be limited to one university and whether the money would directly fund higher‑education institutions; Chairman Pat Heinert said the bill was amended to be available to all institutions and is intended to fund compute credits, storage and related infrastructure for grant recipients.

House Bill 14‑48 grew from an 18‑month State Board of Higher Education strategic study and would establish an Advanced Technology Grant Program, administered by the Department of Commerce, with a similar $5 million appropriation suggested from the state infrastructure fund (CIF). That bill would create a review committee with private‑sector and higher‑education representation and give priority to proposals advancing AI, machine learning, quantum computing and related R&D.

Why it matters: Lawmakers framed both measures as attempts to diversify the state economy beyond energy and agriculture by encouraging applied AI and tech development, and to attract private firms and startups that could collaborate with colleges and research centers.

Key committee questions and concerns: Members asked whether existing entities (for example, NDSU, TrainND, or the Dakota Digital Academy) already cover this work and whether the grant would duplicate other programs such as LIFT or Wonder Fund initiatives. Committee members pressed for guardrails including grant size limits, matching requirements, administrative expense limits, and clearer definitions of eligible applicants and uses (research vs. data center operations vs. workforce training).

Agency and stakeholder input: Vice Chancellor Jerry Rostad of the North Dakota University System said the program would act as an economic development engine, enabling researchers and startups to leverage university talent to commercialize projects. Agencies and members also noted past interim task‑force work advising similar steps; sponsors said they were open to amendments on compensation for committee members and other program details.

Committee action: The committee did not vote on either bill. Instead the chair appointed a subcommittee—Representative Bosch (chair), Representatives Nathie, Steeman, Hansen and Lausser—to review both bills together, consider consolidation, develop guardrails (including potential match or repayment requirements) and return recommendations to the full committee.

Ending: Members instructed the subcommittee to meet and bring suggested amendments back to the full Appropriations Committee for further consideration.