Committee hears bill to create legislative oversight panel for state building projects; agencies warn of delays

House Bill 1029, introduced in the Government and Veterans Affairs Committee on Jan. 17, would clarify the role of the Capitol Grounds Planning Commission and create a new standing legislative committee to study and review construction projects affecting state-owned and leased facilities.

The bill’s sponsor, Representative Ben Koppelman of West Fargo, told the committee the interim Government Services Committee recommended forming a statutory committee to provide legislative oversight "to assist in the design and oversight of the remodel or construction of state owned buildings including consideration of who should serve on such committee, the authority of the committee should exercise over projects in which projects should be subject to the jurisdiction of the committee." Koppelman said the panel would be composed of seven House members and six senators, including minority representation, and would meet quarterly.

Why it matters: Sponsors said adding legislative oversight would let lawmakers weigh in earlier on site selection, design and long-term policy for state facilities and help the legislature coordinate on major capital decisions. Koppelman said the committee would "help us be plugged in better" so legislators are not learning of projects after key decisions are made.

Concerns from agencies: Multiple state agencies testified in opposition or raised operational concerns. Cody Schultz, director of North Dakota Parks and Recreation, said the bill lacks a clear threshold for what constitutes a "renovation" and warned the committee could be asked to review dozens of projects: "Taking most liberally, we potentially could have 100 of renovations within our 331 buildings, in a biennium." Schultz also warned about duplicated planning and environmental review and logistical uncertainty about when agencies would be expected to bring projects to the committee. He recommended a defined threshold and a reporting alternative to avoid quarterly delays.

Brig. Gen. Mitch Johnson, North Dakota Adjutant General, testified the bill could jeopardize the Guard’s ability to use about $23,000,000 in federal reimbursements per biennium because some federal construction and modernization funds have statutorily fixed timelines and federal design requirements. "The federal funds are available for these projects typically in 1 year appropriated on the federal fiscal year, October to September," Johnson said, adding that requiring quarterly committee review could increase the risk of losing federal dollars.

Matt Lineman, deputy director for engineering at the Department of Transportation, said DOT manages 389 buildings and that subjecting every facility-level project to committee review would duplicate existing capital improvement plans and five-biennium facilities planning and could delay critical repairs. He noted the DOT budget line for capital improvements in the current biennium was about $12 million and said many DOT projects are minor but numerous.

Back-and-forth in committee: Members pressed for clarity about whether an existing committee could perform the work and whether the governor’s office would weigh in on the new panel. Koppelman and others said the panel is a legislative construct and intended to provide ongoing institutional knowledge—particularly relevant with legislative turnover and term limits.

Next steps: Koppelman and PERS/OMB staff asked the committee to allow time for amendments to define thresholds for review and to clarify the committee’s relationship with the Office of Management and Budget and the Capitol Grounds Planning Commission. No formal vote on HB 1029 was recorded in the hearing.

Ending: Committee members acknowledged the bill’s intent to improve oversight but signaled that detailed drafting will be needed to avoid operational delays and unintended impacts on federally funded projects.