North Dakota Senate Bill SB2299

North Dakota 2025-2026 Regular Session

• Introduced: 1/20/25
• Refer: 1/20/25
• Report Pass: 2/20/25
• Engrossed: 2/24/25
• Refer: 2/25/25
• Report Pass: 3/21/25
• Enrolled: 3/31/25
• Passed: 4/3/25

Caption

AN ACT to amend and reenact subsection 1 of section 54-10-14, subsection 1 of section 54-10-15, and sections 61-35-09 and 61-35-10 of the North Dakota Century Code, relating to oversight of water districts.

Summary

SB 2299 expands state oversight and audit coverage for water-related political subdivisions in North Dakota. The bill adds water districts subject to chapter 61-35 to the list of entities the state auditor must audit every two years, and it authorizes the auditor to audit or review those districts when ordered by the Legislative Audit and Fiscal Review Committee or when requested under existing petition procedures. For water districts, the petition threshold is set at ten percent of participating members or 300 participating members, whichever is fewer, which is a different standard than the general petition rule for other political subdivisions. The bill also revises the governance provisions for chapter 61-35 water districts. It requires district bylaws to provide for annual meetings with mailed and published notice, one vote per benefit unit at annual and special meetings, and a nomination process for board candidates requiring a petition signed by ten participating members. It further states that elections must be conducted in a uniform and nondiscriminatory manner and arranged so participating members can plainly observe the election process. These changes appear aimed at standardizing district governance and improving transparency and member participation.

Impact

SB 2299 amends North Dakota Century Code sections governing state audits and water district organization. It directly affects the State Auditor’s duties, the circumstances under which water districts may be audited or reviewed, and the procedural rules that chapter 61-35 water districts must include in their bylaws for meetings, elections, and board nominations. The bill therefore increases state-level oversight of water districts and imposes more specific governance requirements on those districts and their participating members.

Sentiment

The bill appears to have been broadly supported and noncontroversial. It passed the Senate unanimously, 47-0, and passed the House overwhelmingly, 91-1, indicating strong bipartisan agreement on the need for clearer oversight and governance rules for water districts. No committee transcript was provided, so there is no recorded floor or committee debate to suggest significant opposition.

Contention

There is little evidence of substantive contention in the available record. The only recorded opposition was a single no vote in the House, but no explanation is provided. The main policy choices in the bill are the expanded audit authority and the specific petition and election requirements for water districts; if there was any concern, it likely would have centered on increased administrative oversight or the added procedural burden on district governance, but the available materials do not identify any organized opposition.