North Dakota Senate advances Roughrider tax credit, medical marijuana changes and a slate of budget bills; auditor subpoena provision removed

The North Dakota Senate on Monday considered and acted on a broad set of bills, advancing a workforce tax-credit for Roughrider Industries, approving changes to the medical marijuana program that allow certain edible products and telehealth certification, and passing several appropriations and administrative bills while removing a proposed subpoena authority for the state auditor.

The chamber approved Senate Bill 22-61, a Roughrider Industries workforce development tax credit, and later passed bills including changes to the state health officer qualifications (Senate Bill 22-55), school construction assistance for base schools (Senate Bill 21-49, emergency clause carried) and a package of appropriations for agencies such as the Highway Patrol and Indian Affairs Commission. The Senate also accepted revisions to the state auditor bill but defeated the portion (section 3) that would have given subpoena power; the remaining provisions passed after division votes.

Senators said the Roughrider tax-credit bill is intended to expand opportunities for prison-industry work and reduce recidivism. "Roughrider Industries has between 50 to 250 individuals working in some program… That makes up about 13% of the incarcerated population," Senator Klein said on the floor, citing the sponsor committee’s figures. Klein also cited program recidivism numbers: "The Department of Corrections recidivism rate is 37.6, whereas at Roughrider Industries, the rate is 8.6." The Senate approved the bill in its amended form; the final roll call showed 43 ayes, 3 nays and 1 absent not voting, and the bill passed.

Debate and outcome highlights

- Senate Bill 22-61 (Roughrider Industries workforce development income tax credit): Sponsor moved engrossment and final passage in amended form after committee work with the tax department and business groups. The sponsor described Roughrider’s mission as giving adults in custody technical and soft skills for reentry. The bill passed on final tally 43 ayes, 3 nays, 1 absent not voting.

- Senate Bill 20-66 (allowing prison industries broader direct sales): After floor debate the sponsor urged a "do not pass" recommendation because SB 22-61 had been crafted as an alternative. Final vote: 0 yeas, 46 nays, 1 absent not voting; the bill failed.

- Senate Bill 22-94 (medical marijuana amendments): The bill allows telehealth for initial certification in some cases, creates standards and child-proof packaging requirements for specified edible products, sets fees ($25 for first year, $40 for subsequent two-year renewal), simplifies veteran certification and clarifies out-of-state initial certifications. Sponsors argued the rules improve patient safety and accessibility; opponents warned edibles could increase unintended use. The Senate passed the bill, 35 ayes, 11 nays, 1 absent not voting.

- Senate Bill 22-55 (state health officer qualifications): The bill removes the statutory physician requirement for the state health officer, gives the governor discretion on qualifications, allows that appointee to serve at the governor’s pleasure and permits an advisory board. The Senate passed the bill, 40 ayes, 6 nays, 1 absent not voting.

- Senate Bill 21-49 (School Construction Assistance Revolving Loan Fund access for schools on Air Force bases): The bill allows schools on Air Force bases to use in-lieu-of-tax funds as the local match for SCARLF loans, including a capped allowance (up to $20,000,000 or 20% of required match, whichever is smaller) and carried an emergency clause. The Senate passed the bill, 46 ayes, 0 nays, 1 absent not voting; the emergency clause carried.

- Auditor bill (Senate Bill 22-51): The Senate debated whether to give the state auditor subpoena authority to compel records from entities receiving state funds. Division votes removed section 3 (the subpoena provision) from the bill (Division A failed 23–23), and the remainder of the bill (Division B) passed unanimously 46–0; the full amended bill later passed 42–4. Sponsors and several senators said limited subpoena authority would help audits of public-private partnerships and federally funded programs; opponents cautioned about expanding agency powers and litigation costs.

- Appropriations and agency budget bills: The Senate passed multiple appropriation bills on final passage including Senate Bill 20-11 (highway patrol appropriation), Senate Bill 20-05 (Indian Affairs Commission appropriation), Senate Bill 20-22 (Commission on Legal Counsel for Indigence appropriation with added investigators and $2,000,000 to raise rates for private counsel), Senate Bill 20-17 (Office of Administrative Hearings budget). Vote tallies on those appropriation bills were unanimous or strongly favorable as recorded on the floor.

Why it matters

The Roughrider bill creates a state tax-credit mechanism to encourage North Dakota manufacturers to subcontract with Roughrider Industries, expanding work opportunities inside Department of Corrections programs that sponsors say reduce recidivism. Changes to medical marijuana licensing and certification affect patient access, program fees and product standards across the state. The auditor bill’s modification (removing subpoena authority) leaves intact reforms on auditing practice and billing while postponing expansion of compulsory-record powers for the auditor’s office.

What the Senate directed next

Several bills were re-referred to the Appropriations Committee for further consideration (for example, Senate Bills 2,133; 2,274; 2,327 were re-referred during the session). The Senate concluded with routine committee announcements and adjourned until 1 p.m. Tuesday, Feb. 4.

Votes at a glance (selected final tallies from the floor record)

- SB 22-61 (Roughrider workforce tax credit): Passed 43–3–1 (aye–nay–absent). - SB 20-66 (Prison industries direct sales expansion): Failed 0–46–1. - SB 22-94 (Medical marijuana amendments): Passed 35–11–1. - SB 22-55 (State health officer qualifications): Passed 40–6–1. - SB 21-49 (SCARLF access for base schools, emergency clause): Passed 46–0–1; emergency clause carried. - SB 22-83 (smaller subsurface water management systems): Failed 6–40–1. - SB 22-29 (disclosures before sale of condominium/HOA property): Passed 44–2–1. - SB 20-31 (nursing services agencies): Failed 3–43–1. - SB 22-87 (video livestock auction licensing repeal): Passed 46–0–1. - SB 22-51 (state auditor updates; subpoena section removed): Final passage (amended) 42–4; division A (subpoena section) was tied 23–23 and failed; division B (remainder) passed 46–0. - SB 20-11 (Highway Patrol appropriation): Passed 46–0–1. - SB 20-05 (Indian Affairs Commission appropriation): Passed 46–0–1. - SB 20-22 (Commission on Legal Counsel for Indigence appropriation): Passed 46–0–1. - SB 20-17 (Office of Administrative Hearings appropriation): Passed 46–0–1.

Discussion vs. decisions

The article distinguishes floor discussion (debate, committee reports and amendments) from formal actions and recorded votes. Several bills were amended on the floor or earlier in committee, then re-referred to appropriations for fiscal review; some proposals were explicitly instructed to be studied further rather than enacted. When vote tallies were recorded on the transcript, those final outcomes are reported above.

Ending

Lawmakers will return Tuesday for additional committee hearings and continued floor work. The Senate record shows committee referrals and several appropriation items will advance to follow-up review in the Appropriations Committee.