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 Department budget (House Bill 1,011) by a 91–2 vote. Committee testimony and floor remarks said the department is largely fee-funded; the committee recommended fee increases for various license categories (committee discussion listed increases from $200 to $240 for broker-dealers, $60 to $75 for registration agents, $100 to $120 for investment advisers and $50 to $60 for adviser representatives). Floor remarks estimated these changes would increase general-fund receipts by about $3,888,320 in the upcoming biennium.

On municipal elections, House Bill 14 82 passed 88–5. The measure amends requirements for municipal bond elections by replacing the option for a special election with a requirement that such votes occur at a primary election, which sponsors said typically yields higher turnout than ad hoc special elections.

Other bills approved on the floor included: - House Bill 14 98 (authorizing school boards and career/technical center boards to offer first‑year teacher signing bonuses), passed 89–4 with the emergency clause attached; sponsors said the authority is available to local districts and funds would be paid from local district or center budgets. - House Bill 13 57 (student data protections and FERPA‑aligned data sharing language), passed 93–0; sponsors said the bill clarifies that longitudinal student-data protections apply to student‑safety information and restricts access to parents, students and districts unless federal law allows otherwise. - House Bill 14 71 (method-of-dental-payment disclosure and preferred-provider arrangements, allowing providers to opt out of virtual-card payments under certain conditions), passed 93–0. - House Bill 14 66 (revising definitions for domestic/manufacturing distilleries and satellite locations), passed 93–0. - House Bill 13 79 (income tax adjustment for capital gains on bullion as defined in the bill), passed 82–10. - Senate Bill 20 28 (amending budget and reporting processes for the Department of Financial Institutions and creating a continuing appropriation with an expiration review), passed 59–34; supporters argued the department is funded by industry fees and the change helps the agency respond quickly to industry and cybersecurity needs; opponents said the Legislature should retain appropriation authority.

Several proposed bills failed or were otherwise removed from the floor: - House Bill 12 73 (a proposed prohibition on local rules that would limit speech at meetings) was declared failed, 20–73, after the political subdivisions committee recommended do not pass. Representative Fagley summarized the committee’s concern that the measure was an overreach into local governance. - House Bill 15 02 (a statutory cap on state general‑fund growth) failed, 19–74, after the Finance and Taxation Committee issued a do‑not‑pass recommendation; committee members said the cap would significantly constrain the state’s ability to provide tax relief or meet inflationary increases in major budget areas. - House Bill 15 46 (sales‑and‑use tax exemption for contractors purchasing materials for state projects) failed, 5–88; the committee said implementation raised audit‑and‑compliance concerns and placed undue burden on retailers to verify exempt use. - House Bill 15 48 (a $10 million pass‑through grant request to support construction of a fitness center adjacent to the Life Skills and Transition Center in Grafton) failed, 16–77; committee members said key details about ownership, ongoing operating responsibilities and partnership commitments were unclear. - House Bill 16 08 (employee leave for rest and worship) failed, 17–76; the Industry, Business and Labor Committee said the bill raised practical problems for employers and lacked needed definitions and limits.

The House also recorded procedural actions: House Bill 12 70 was withdrawn by unanimous consent after a motion to return it to the committee and the sponsor’s request to withdraw; House Bill 12 07 was re‑referred to the Agriculture Committee. The chamber adjourned to 12:30 p.m. Friday, Feb. 7, 2025.

Representative Dee Anderson, speaking in favor of HB 12 79, told colleagues on the floor: "This bill will help the coal plants tremendously. Please support the committee's recommendation." Representative Meyer, presenting the Department of Labor and Human Rights budget, asked members for a "green vote" after summarizing the agency's appropriation and staffing.

Votes at a glance (selected bills and final tallies): - HB 1,007 (Dept. of Labor & Human Rights appropriation) — Passed 92–1; appropriation $3,658,937; 13 FTEs (Representative Meyer presenting). - HB 1,011 (Securities Department appropriation and fee schedule changes) — Passed 91–2; estimated general‑fund increase from fee changes cited at about $3,888,320 (committee floor summary reported). - HB 12 73 (prohibition on local speech limits) — Failed 20–73; committee recommended do not pass. - HB 12 79 (coal conversion facilities tax exemptions; lignite research allocation) — Passed 81–12; fiscal note estimated general‑fund reduction of ~$21.35M in 2025–27. - HB 14 82 (municipal bond‑election timing; require primary election) — Passed 88–5. - HB 15 02 (state general‑fund growth cap) — Failed 19–74. - HB 15 46 (contractor sales‑tax exemption on state projects) — Failed 5–88. - HB 15 48 (fitness center grant for Life Skills and Transition Center / Grafton Parks and Rec) — Failed 16–77. - HB 14 66 (distillery definitions / production thresholds) — Passed 93–0. - HB 14 71 (dental payment notices and opt‑out of virtual card payments) — Passed 93–0. - HB 13 57 (student data protections / FERPA alignment) — Passed 93–0. - HB 14 98 (local authority to pay first‑year teacher signing bonuses) — Passed 89–4; emergency clause carried. - HB 13 79 (capital‑gains adjustment for bullion) — Passed 82–10. - HB 16 08 (employee leave for rest and worship) — Failed 17–76. - SB 20 28 (Department of Financial Institutions budget/reporting changes; continuing appropriation through 6/30/2029) — Passed 59–34.

Members adopted committee recommendations on most measures; where committees recommended do not pass, the House generally followed that advice. Several members raised questions on long‑term fiscal effects, local control and administrative implementation during floor discussion. The chamber adjourned with committee meeting notices and follow‑up items scheduled for the next day.