Committee approves mileage-based distribution for county and township infrastructure fund (House Bill 1065)

The Political Subdivisions Committee voted to advance House Bill 1065 as amended, which changes how the County and Township Infrastructure Fund is divided among townships in non–oil-producing counties by shifting from an equal-per-township payment to a formula based on certified township road miles.

The change affects the portion of the fund commonly known as “Operation Prairie Dog.” Under current law, up to $115,000,000 per biennium is allocated to non–oil-producing counties; 13 percent of that distribution — $14,950,000 — is set aside for townships in those counties and is currently split evenly among townships that maintain road miles. State Treasurer Thomas Beadle testified that the bill would make the township share proportional to certified road miles and would align the distribution method with other payments the treasurer's office makes to townships.

Beadle told the committee that the current equal-payment method produces a small remainder when the statewide township count does not divide evenly into the available dollars. “This bill, before you, seeks to change the township distribution portion of that formula,” Beadle said, adding the amendment cleans up cross‑references and removes ambiguous language that had directed certain criteria to the Department of Transportation. He asked the committee to approve an amendment to reference the statutory mileage certification process in North Dakota Century Code section 54-27-19.1 rather than delegating unspecified “criteria” to DOT.

Nut graf: The bill changes distribution mechanics for a multi‑million dollar biennial fund that towns and counties use primarily for road maintenance. Supporters say a mileage-based approach more accurately reflects maintenance needs; some committee members warned that smaller townships with few road miles could see reduced payments.

Committee discussion and votes Committee members asked about notice and county outreach. Representative Belinski asked whether counties had been informed; Beadle said counties had been contacted and that smaller townships with less mileage “might be seeing some less revenue,” although counties generally were not expected to object. Representative Bosley raised concern after noting a chart showing multiple counties in the red under the proposed change and said he would have liked direct input from affected counties.

The committee considered an amendment proposed by the treasurer’s office that replaces language referring to “criteria set by the Department of Transportation” with a cross‑reference to the statutory township‑mile certification at North Dakota Century Code section 54-27-19.1. The amendment was moved by Representative Matt Heilman and seconded by Representative Jim Jonas; the amendment was approved on a committee vote reported in the transcript as 11 yeas, 1 nay, 1 absent.

After the amendment passed, Representative Heilman moved a “do not pass” motion on the bill as amended; that motion was seconded and failed on a roll call reported in the transcript as 3 yeas, 9 nays, 1 absent. Representative Clamine then moved a “do pass as amended” motion, which the committee approved on a roll call reported in the transcript (two different tallies were reported during the session: first as 8 yes, 3 nay, 2 absent, and later as 9 yes, 3 nay, 1 absent). The transcript contains both roll‑call tallies; the committee chair subsequently announced that the motion carried and the bill will be carried to the floor by Representative Clamine.

What the law would do and next steps If enacted as amended, House Bill 1065 would change the township portion of the County and Township Infrastructure Fund from an equal per-township distribution to a mileage‑based distribution using certification procedures already described in statute. The treasurer’s office said it provided a county-level breakdown showing how each county’s allocation would change under the mileage formula and that counties receive the funds and pass them to organized townships (or retain them for unorganized townships’ road maintenance).

No public testimony in opposition was recorded at the committee hearing. The committee approved the bill as amended and will determine which member carries the bill to the full House; the chair named Representative Clamine as the volunteer to carry the bill later in the session.

Ending: The bill advances to the House floor with committee amendments. Committee members who expressed concern asked staff to note counties that could see reduced revenue and to ensure affected local governments were aware of the change.