North Dakota House approves agency budgets and key policy changes, rejects several high-profile proposals

BISMARCK, N.D. — The North Dakota House of Representatives on Feb. 6, 2025 approved a series of agency budgets and policy bills and rejected several others during a floor session that ran through the day and adjourned until Feb. 7.

Lawmakers approved department budgets and measures affecting coal conversion taxes, municipal bond election timing and school-district hiring incentives, while voting down bills that would have limited local ordinances, capped state spending growth and created broad contractor sales-tax exemptions.

The most consequential floor actions included an extension of tax exemptions tied to coal conversion facilities (House Bill 12 79), a change to when municipalities must hold bond elections (House Bill 14 82), and approval of multiple small-agency budgets, including the Department of Labor and Human Rights and the Securities Department. Several other bills addressing teacher signing bonuses, student data protections, dental payment practices and distillery definitions also passed.

House Bill 12 79, which the Finance and Taxation Committee recommended due pass, would extend existing exemptions from the coal conversion facilities privilege tax and related exemptions tied to lignite research and severance taxes. Committee analysis included a fiscal note estimating a reduction in general fund revenue of about $21,350,000 in the 2025–27 biennium and $42,700,000 in 2027–29 if enacted. Representative Dee Anderson, speaking on the floor, said the bill aims to keep conversion plants viable in the face of regulatory pressure and asked colleagues to support the committee recommendation. The House approved the bill, 81–12.

Lawmakers approved the Department of Labor and Human Rights budget (House Bill 1,007) on a 92–1 vote. Representative Meyer, presenting the appropriation on behalf of the Appropriations Committee, said the agency’s budget totals $3,658,937, includes 13 FTEs and contains $3,203,937 for salaries and wages and $387,371 for operating expenses. The package includes temporary-salary funding and an increase in insurance costs noted by Meyer.

The House also approved the Securities…