Summary: The task force reviewed survey results from state agencies on potential statutory revisions, with Levi reporting 70 proposals from 20 agencies and noting that about 33 might become agency pre-file bills. Members discussed the need to share the survey more broadly within higher education and to better coordinate issues involving IT and other cross-agency functions. The task force then heard from the Office of Management and Budget on three topics: concessions, architect/engineering pre-qualification, and legal notices. OMB said the concessions law is outdated and inconsistent with current practice, and suggested a collaborative rewrite to allow best-value evaluation, raise the threshold, and standardize solicitation templates. On architect/engineering pre-qualification, OMB proposed expanding authority beyond current state-agency limits and creating uniform templates. On legal notices, OMB proposed modernizing publication requirements, exploring online and abbreviated notices, and working with newspapers and other stakeholders on technology and accessibility improvements. Members asked about where concession revenues go, whether political subdivisions must follow the same rules, and how to move from discussion to action. The task force agreed to have OMB work with Legislative Council and affected stakeholders to develop bill drafts, and the motion passed unanimously. The University of North Dakota then presented a series of proposed revisions focused on public buildings and procurement. UND asked to rework the definition of construction so routine maintenance and one-for-one replacements over $250,000 would not automatically trigger public-improvement requirements, suggested raising the threshold to $500,000, and asked for more flexibility based on project complexity and risk. UND also proposed changes to public bid advertisements to reflect electronic bidding, revisions to construction manager-at-risk selection criteria, changes to architect/engineer procurement rules, an increase in the direct-hire design threshold, and a higher legislative-consent threshold for privately funded projects. The task force supported having UND work with counsel and OMB to develop bill drafts, and that motion also passed. The Department of Public Instruction concluded with proposed cleanup to credentialing and education statutes. DPI recommended reviewing its credential categories for relevance, possibly transferring credentialing authority to the Education Standards and Practices Board, removing outdated school safety patrol language, clarifying waiver provisions, and updating dyslexia screening reporting requirements so the statute reflects current practice. Members focused mainly on whether the dyslexia reporting requirement should remain, and DPI said the screening itself would continue even if reporting language were revised. No votes were taken on DPI’s suggestions, and the task force recessed after the presentation.

Summary: The Higher Ed Funding Committee met to review how North Dakota might identify and address low-producing academic programs and to discuss draft funding formulas for the university system. Lisa Johnson of the NDUS explained that the State Board of Higher Education is already developing a system-wide policy, using models from other states such as Texas, Virginia, North Carolina, Colorado, Kentucky, Ohio, and Connecticut. She described how low-producing programs are typically flagged by multi-year enrollment or completion thresholds, then reviewed for workforce demand, mission fit, cost, accreditation, and regional need before any action is taken. Committee members asked about what counts as a program, how costs are analyzed, whether certificates are included, how exemptions work for mission-critical or high-demand fields, and whether the board or legislature should set the rules. Johnson said the board is the appropriate body to lead the process, but legislators could use funding leverage if they wanted to encourage action; the chair asked the board to bring a detailed proposal to the June meeting. The committee then heard a Legislative Council presentation on a draft formula for UND and NDSU. The proposal uses fall census FTE enrollment, with a placeholder undergraduate rate of $7,000 per FTE and a graduate/professional rate of $10,500, plus incentives for completions in in-demand fields and research productivity. Alex from Legislative Council walked through the projected funding effects, noting that the model would increase funding for NDSU and reduce it for UND in the current biennium, with different results in the next biennium as enrollment changes are recognized. Members questioned the use of the placeholder rates, the definition of in-demand programs, the treatment of research funding, and the exclusion of state-appropriated dollars from the external grants calculation. The chair emphasized that the numbers were illustrative and that appropriators would set the actual dollar amounts later. A second draft formula for the other nine institutions was also reviewed. That model uses fall census FTE without a weighted economic factor, applies a higher undergraduate rate, and adds completion incentives for in-demand credentials and all other completions. Members noted that the formula would benefit some institutions, such as Bismarck State College, while reducing funding for others, such as Mayville State, and discussed whether the nine institutions should be treated more uniformly or split into smaller groups because of their different missions and sizes. Committee members and staff repeatedly stressed that the formulas are still being refined and that some institutions would likely need hold-harmless adjustments or other transition measures. The meeting ended with the chair directing the committee to continue the discussion later and to expect further work on both the low-producing program policy and the funding formulas.

Summary: The committee met to receive a series of audit presentations, beginning with the statewide Annual Comprehensive Financial Report (ACFR) for fiscal year 2025. The State Auditor’s Office and OMB reported a clean, unmodified opinion for the state, with strong financial results including a $40.6 billion net position, $30.99 billion in assets, $1.81 billion in liabilities, and continued Legacy Fund growth. OMB also explained the new GASB 101 compensated-absences reporting change and discussed pension-liability fluctuations tied to discount-rate assumptions and investment performance. Members asked about how the state compares to others and about the effect of short-term commodity price swings, and OMB said the report reflects actual fiscal-year results rather than forecasts. The committee then heard the University System audit, which also received a clean opinion but included four findings: misreporting of Strategic Investment and Improvements Fund revenue, insufficient monitoring of service organizations at CTS, NDSU, and UND, improper bank reconciliations at Dakota College of Bottineau, Dickinson State, and Williston State, and investment/cash reconciliation problems at Bismarck State College related to bond proceeds. University officials agreed with the findings and said corrective actions were underway, including internal review of bank reconciliations. Members raised questions about NDSU’s use of certificates of deposit, and university staff explained that CDs are used to earn interest on funds being accumulated for future projects. Several other audits were presented, most with clean opinions and no findings, including the State Auditor’s Office, Workforce Safety and Insurance, Housing Finance Agency, Housing Incentive Fund, Job Service North Dakota, the Retirement and Investment Office, PERS, the Center for Distance Education, the Commission on Legal Counsel for Indigents, the Ethics Commission, and the Office of Administrative Hearings. Notable exceptions included a State Fair Association audit with an adverse opinion on the foundation component unit because its financial statements were not available for audit, and a Securities Department performance audit finding that performance-based pay increases and bonuses were issued without required evaluations. The committee also discussed the State Auditor’s future needs, including more staff capacity, data analytics, cybersecurity reviews, possible subpoena authority, independent legal counsel, and whether some audits—such as the Ethics Commission and State Fair—should be handled by independent third parties or under different statutory arrangements.

Summary: The Advanced Nuclear Energy Committee met to hear a series of presentations on the economics, financing, workforce, and community impacts of advanced nuclear deployment in North Dakota. William Bridge of Nucleon Energy presented the committee’s economic impacts and private-sector financing report, estimating construction and operating job impacts, local spending, and state/local tax effects for hypothetical SMR projects. He said the report assumes first-of-a-kind costs are still high, used a $6 million per megawatt nth-of-a-kind proxy, and estimated peak construction workforces of about 500 for a 200-MW plant and 1,000 for a larger facility, with roughly 100 operating jobs for a 200-MW plant. Committee members questioned security costs, capital cost assumptions, water and transmission siting constraints, and whether the model included fuel and waste; Bridge said the report included initial fuel in capital cost and that waste disposal is funded through existing federal mechanisms. Lori Brady of the Nuclear Energy Institute then outlined national nuclear workforce needs and NEI’s strategic workforce planning efforts. She described declining labor-force participation, retirements, and the need for a much larger future workforce, and said NEI has organized recommendations around career awareness, pipelines, training and qualification, policy support, retention, and nontraditional recruitment. She highlighted tools such as the Nuclear Works career website, the Nuclear Energy Academic Roadmap, the new federal Energy and Natural Resources career cluster, and the Nuclear Uniform Curriculum Program for community colleges. Members asked about AI, timing for training relative to plant development, and whether advanced manufacturing would reduce staffing needs; Brady said AI is not expected to replace workers and that training timelines depend on the specific project and staffing plan. The committee also heard from Gary Yaco, mayor of Red Wing, Minnesota, who described Prairie Island’s role in his community. He said the plant provides a large share of local property tax revenue, supports well-paid jobs, contributes to emergency preparedness funding and training, and is broadly supported by the city despite periodic protests and public concerns. He emphasized the plant’s security, regular drills with local and federal responders, and the absence of problems with dry cask storage. Later, Benton Arnett of NEI discussed the current financing landscape for advanced nuclear, explaining how tax credits, federal loan support, off-take agreements, and new business models are helping projects move forward. He said early projects face high upfront costs and long lead-time procurement, but that investor confidence is improving as federal policy and regulatory streamlining continue. The committee asked about waste funding, comparisons with natural gas, the effect of political shifts on investor confidence, and whether the market will narrow to a few winning technologies; Arnett said the industry is still sorting that out, but expects clearer winners in the late 2020s and early 2030s. The meeting concluded with an introductory presentation from Julie Kazeraki of DOE’s Office of Energy Dominance Financing, who said the office is focused on accelerating nuclear deployment through financing support.

Summary: The committee met as a study subcommittee on fixed-route public transportation and first approved the December 11 minutes. It then heard detailed presentations from transit leaders in Grand Forks, Bismarck/Mandan, and Fargo about their systems, including route structures, paratransit service, ridership trends, fare changes, funding sources, fleet replacement needs, and operational challenges. Grand Forks described Cities Area Transit’s 17 routes, university shuttle service, expanded paratransit coverage, a 2025 fare increase, and rising costs for labor, fuel, parts, and new buses. Bismarck/Mandan’s Bisman Transit outlined its fixed-route and paratransit operations, recent service expansions approved for April 1, fare structure, ridership recovery since COVID, and major funding streams including mill levies, federal grants, and new local sales tax revenue. Fargo’s MATBUS representative emphasized the importance of continued state support for urban fixed-route transit. Members asked extensive questions about cost per ride, fare increases, school transportation, veteran service partnerships, app-based ticketing, local funding formulas, and whether ride-share or microtransit could replace fixed routes. Transit officials said fixed-route service remains essential because it provides reliable capacity, supports jobs and access to services, and preserves federal funding tied to public transit operations. They also said paratransit is costly but necessary for riders with disabilities, and that vehicle and maintenance costs have risen sharply. Minot’s transit superintendent added context on the state’s existing transit aid formula, explaining that it is weighted more toward rural and paratransit providers and that urban fixed-route systems are seeking a separate, dedicated funding source rather than changes to the current formula. The committee also heard public testimony from North Dakota Protection & Advocacy supporting both fixed-route and paratransit service for disabled riders, and from Minot staff on refurbished buses, CDL driver recruitment, and why the agency is not pursuing full electric buses. Near the end, members discussed whether to recommend additional state funding for the four urban fixed-route systems. A motion passed to have Legislative Council prepare a summary of the subcommittee’s activities for inclusion in the Government Finance Committee’s report to Legislative Management. Members then continued discussing possible recommendations, including a separate funding source for urban fixed-route transit and whether the four urban systems should meet to develop a proposed amount.

Summary: The Government Finance Committee met with new leadership, approved the December 11 minutes, and received a series of informational updates on the state’s finances and related policy issues. The Office of Management and Budget reported the general fund is tracking very close to forecast, with revenues about $2 million above forecast and an estimated ending balance of about $397 million, higher than previously expected. OMB also reviewed balances in major funds, including the budget stabilization fund, legacy fund, foundation aid stabilization fund, social services fund, and strategic investment and improvements fund, and answered questions about oil tax revenues and fund management. The Tax Department provided updates on taxable sales and purchases by county and industry, noting Cass County as the largest county by taxable sales and that retail trade remains the largest industry sector. Tax Commissioner Brian Kroshus also discussed the federal One Big Beautiful Bill Act and its estimated effects on North Dakota income tax collections, explaining that the projected revenue impacts are measured against a 2025 baseline and that some provisions are temporary while others are permanent. He also reported that primary residence tax credit applications were running ahead of last year, with more than 154,000 received so far and an expectation of roughly 160,000-plus applications. The committee also heard fee-study presentations from the Department of Transportation and the Information Technology Department. DOT explained that driver’s license fees cover only about half of program costs and that the shortfall is subsidized by the highway fund, while also noting recent changes such as the blackout plate and motor vehicle excise tax distribution changes. NDIT described its internal service fund model, current billing structure, and possible future changes to simplify invoices and billing frequency. Legislative staff also updated the committee on office space needs in Bismarck-Mandan and on legislative branch space planning, and subcommittees reported progress on fixed-route transit funding and regional jail capacity, including a visit to the Burleigh-Morton detention facility and discussion of future prison bed needs. No formal votes or legislative actions beyond approving the minutes were taken, and the committee adjourned with its next meeting set for June 25.

Summary: The committee met as the Regulatory Division budget section and first reviewed the North Dakota Housing Finance Agency’s budget and program update. Legislative Council outlined the agency’s base budget and historical funding, and Housing Finance staff reported on homeownership lending, housing incentive fund (HIF) awards, and homeless grant spending. Agency officials said the five new FTEs approved last session are mostly filled, with one homeless program manager still open. They described strong demand for HIF, noting that September 2025 multifamily requests exceeded $73 million while only $25 million was available, and that single-family and homeless programs are also heavily subscribed. Members discussed the agency’s local loan servicing workload, interest-rate benefits, down payment assistance, and the need to coordinate housing discussions with Commerce and site-preparation efforts. The agency asked that HIF, single-family, and homeless funding be maintained or increased, and committee members emphasized accountability and statewide access for homeless prevention and rapid rehousing funds. The Department of Mineral Resources then presented its budget and agency initiatives. Staff reported that the department is on track financially, that most of the five new reclamation-related FTEs are hired, and that litigation costs tied to oil and gas matters are expected to continue appearing late in the biennium. The director reviewed ongoing modernization and organizational efforts, including the North Star IT project, succession planning, training, and rulemaking for oil and gas and critical minerals. Members asked about longer laterals, spacing, and production trends; the department said operators are increasingly drilling three-, four-, and even an initial five-mile lateral, which is helping keep North Dakota oil production relatively flat even as rig counts ease. The director also discussed oil price volatility tied to Middle East conflict, hedging practices among producers, gas capture remaining around 95%, and the likelihood that current production levels will stay near flat unless prices or geopolitical conditions change significantly. An update on the enhanced oil recovery grant program followed. The Industrial Commission’s grant administrator said the full $25 million appropriation was allocated in the fall to six projects, and because the oil and gas research fund also had carryover and biennial tax revenue, total awards reached about $45.1 million. The projects are expected to run two to four years, with meaningful results not likely until mid-2026 or later. Members questioned whether the public would have access to the research findings and how accountability would be maintained; staff said the grants are reimbursement-based, require regular status reports, and will culminate in public final reports. The committee also heard from the North Dakota Pipeline Authority, which updated members on natural gas transmission projects, especially WBI Energy’s proposed Bakken East pipeline. The authority said the project has advanced through a nonbinding and then binding open season, with WBI now securing survey permissions and moving through regulatory and landowner processes, while other related gas transmission projects near Minot and Epping are also in development.

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Summary: The committee heard House Bill 2014, the budget for the Industrial Commission, with Representative Kempenich walking through the agency’s major components: the administrative office, Bank of North Dakota, housing finance, Department of Mineral Resources, and the State Mill and Elevator. He described mostly special-fund operations, including bond payments, economic development programs, the rail loan program, the Rebuilder’s Loan Program, housing incentive funding, abandoned well reclamation work, lignite research, litigation reserves, and a capacity purchase arrangement for a future natural gas pipeline. He also explained several one-time funding items, such as grid resiliency grants, housing-related transfers from the Strategic Investment Fund, and enhanced oil recovery funding repurposed from a prior salt cavern study. Members asked about the reduction in housing incentive funding from the Senate version, the use of one-time Strategic Investment Fund dollars for ongoing housing programs, and whether a trigger should be added to increase housing funding later. Kempenich said no trigger was discussed and emphasized that housing needs vary widely across the state. Another exchange focused on the enhanced oil recovery grant program, which he said would be driven largely by the Energy and Environmental Research Center and would use repurposed funds. A longer discussion covered the natural gas pipeline capacity purchase, including its purpose, possible routes, and the idea that the state would be buying capacity rather than immediately building a pipeline. The committee adopted Amendment 25.0181.0207 on a 21-1 vote, with one member absent and not voting. The committee then passed HB 2014 as amended on a 21-1 vote, with one member absent and not voting. Representative Kempenich was designated to carry the bill. The chair then noted this was the final budget hearing for the committee, with one bill remaining to be heard later.

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Summary: The conference committee on Senate Bill 2007 met to resolve differences between the House and Senate versions of the bill, which concerned funding and staffing flexibility for the Soldiers’ Home/Veterans Home. Members agreed to restore the FTEs to the pool and to keep the $200,000 and $100,000 items in the bill, with discussion noting that the money would come from the Soldiers’ Home fund and would only be used if needed. The main remaining issue was line-item transfer authority. Staff explained that the transfer provision would let the facility move money between salaries and wages and operating expenses, including contract nursing, to address staffing shortages at a 24/7 facility. Members discussed the difference between the House and Senate versions, with the House allowing up to $600,000 in transfers and the Senate version allowing $400,000. The committee concluded that the higher amount would provide needed flexibility without increasing overall spending authority. A motion was made to adopt the conference committee changes, including restoring the FTE pool and changing the transfer authority to $600,000, and then give Senate Bill 2007 a do pass recommendation as amended. The motion passed by roll call, and the conference committee hearing was closed.

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Summary: The conference committee for Senate Bill 2009 met to resolve differences between the House and Senate versions, focusing mainly on a $100,000 item tied to State Fair improvements. House members explained that the money was intended for facility upgrades such as locker rooms, showers, restrooms, concessions, and safety areas used by youth hockey, rodeo, and other events, and the House position remained that the State Fair should share costs on the fence and campground restroom-related work. Senate members said their priority was security improvements and argued that those safety provisions should be funded as a straight grant rather than requiring a match, though they were open to other matched items. After further discussion and a brief recess, the House proposed moving the $100,000 from the original line item into the security infrastructure funding, reducing the amount the State Fair would need to match on that project. Senate members indicated they were agreeable to that change and noted that State Fair personnel would likely prefer the money be directed to security. The committee did not take a final vote in the transcript, but members appeared to reach tentative agreement to shift the funding toward security and continue discussions on the remaining match requirement.

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Summary: The Senate reconvened and handled several House messages and conference committee appointments before taking up a series of bills. It appointed conference committees on Senate Bill 2265 and House Bills 1454, 1448, and 1524. The chamber also adopted a Senate amendment to House Bill 1216, delaying its effective date for the copay accumulator prescription drug bill to January 1, 2026, with later renewal timing for non-PERS plans. House Bill 1216 then came up for final passage. Senators debated whether allowing copay accumulator programs to count manufacturer coupons toward deductibles would help patients with expensive drugs or unfairly shift costs to insurers and other policyholders. Supporters said it would help people afford life-saving medications and that the coupon payments go to pharmacies, not insurers; opponents argued it could raise premiums and create perverse incentives for drug pricing. The bill passed 29-18. The Senate also concurred in House amendments to Senate Bill 2160, which changes health insurance benefits under the Uniform Group Insurance Program to move from a grandfathered to a non-grandfathered plan, with supporters emphasizing added benefits and flexibility and opponents warning of higher costs and irreversible changes. That bill passed concurrence 33-14 and final passage 39-8. The Senate next concurred in House amendments to Senate Bill 2339, the wildfire mitigation bill, which requires utility mitigation plans to be updated every two years, incorporate national electric standards, and creates a rebuttable presumption of reasonable care if the plan is followed. The bill then passed final passage 46-1. The chamber also adopted conference committee reports and passed House Bill 1460 on adult foster care and monitoring devices, House Bill 1440 on cigar lounge tobacco use, and Senate Bill 2374 on insurance-related provisions including property insurance arbitration, managed repair programs, and surplus lines issues; SB 2374 also added a study on towing and recovery coverage. The session ended with announcements of upcoming conference committee meetings and adjournment until April 22, 2025.

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Summary: The committee met to consider Senate Bill 2012, the Department of Transportation budget, with Representative Brandenburg presenting a detailed House amendment package and Speaker Robin Weisz explaining the overall funding strategy. The discussion focused on restructuring transportation funding streams, including moving Prairie Dog money into a flexible transportation fund, adjusting gas tax distributions, increasing the legacy earnings transfer from 7% to 8%, and authorizing a $155 million bond for Highway 85. Members also discussed DOT operations, bridge funding, rest areas, electronic titling, and the use of funds for grants to counties, cities, and townships. A separate provision would let the DOT consider whether local ordinances or policies unreasonably restrict permitted agriculture or energy projects when scoring grant applications, which drew significant debate about local control and whether the language was punitive. Testimony from Brandenburg and Weisz emphasized that the plan was intended to provide more predictable funding, preserve the ability to match federal dollars, and direct money where needs are greatest through a grant process. Weisz said the package was designed to simplify multiple revenue buckets, ensure DOT can meet federal match requirements, and free up money for the general fund while still supporting transportation needs. Several members raised concerns about whether cities, counties, and townships would receive as much as under the prior Prairie Dog structure, whether the bridge allocation was correctly reflected in the bill, and whether the local-policy language would penalize subdivisions that oppose energy projects. Supporters argued the state needed to protect revenue tied to energy development and that local governments would still receive distributions plus additional grant opportunities. The committee adopted the House amendment to SB 2012 by a vote of 19-1-3, then rejected an amendment to remove the local-policy language on a 5-15-3 vote. The committee then passed SB 2012 as amended on a 20-0-3 vote, with Representative Brandenburg designated as the carrier. The chair announced that Senate Bill 2014 would not be taken up at that time and the committee recessed until called back.

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Summary: The conference committee on House Bill 1229 met to try to resolve differences between the House and Senate versions of the bill, which deals with reporting certain traffic offenses to driving records and, by extension, insurance companies. House members argued that the House position was driven by concern that reporting lower-level offenses would unfairly raise insurance costs, while Senate members said they opposed removing reporting because they wanted transparency and believed people who break the law should face consequences. The discussion focused heavily on whether the bill should continue to exclude offenses at two points and below from reporting, or whether a narrower compromise such as one point and below might be acceptable. Committee members and DOT Driver and Vehicle Director Brad Schaefer reviewed a color-coded list of offenses and how they are currently reported. Schaefer explained that salmon-shaded items automatically appear on driving records because they trigger suspension or revocation, green items are commercial-driver violations that also trigger suspension, and the remaining unshaded zero-, one-, and some two-point violations were the main subject of the conference discussion. Members debated whether some low-point items, such as equipment violations, no child restraint, distracted driving, and failure to use due care, should remain reportable, while acknowledging that serious offenses like fleeing and human trafficking would remain reportable regardless. No final compromise was reached. Several members expressed interest in a possible middle ground limited to one-point-and-below offenses, but others worried the Senate would not accept it. The committee agreed to adjourn and reschedule after members had more time to review the list and consider possible amendments.

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Summary: The conference committee met on Senate Bill 2180, relating to the opportunity to provide public comment at meetings of public entities. Members reviewed the 2002 House version and a proposed 2003 amendment, which largely kept the House language but clarified wording and added a provision allowing public comment to be limited by policy to the current meeting’s agenda topics and at least one preceding meeting’s agenda topics. Several members discussed the balance between allowing public participation and keeping meetings orderly, with comments from both House and Senate members supporting the restriction as a practical compromise based on experience with local boards. Representative Vorey moved adoption of the 2003 amendment, seconded by Senator Wallen. The amendment was approved by majority vote on both the House and Senate sides. The committee then moved to accept SB 2180 as amended, and that motion also passed with majorities on both sides. The bill was declared a due pass by the conference committee and was to be forwarded to the appropriate chambers. The committee also designated carriers for the bill: Senator Castile on the Senate side and Representative Osley on the House side. The meeting then concluded.

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Summary: The committee met on Senate Bill 2282 with members of both chambers present and took up a proposed amendment related to the child care tax credit. Representative Foss explained that the amendment would remove the definition of the “aggregate child care contribution” and instead place the credit amount directly in the code, setting it as a flat $500 rather than a percentage-based calculation. Members indicated agreement with the change. Because a prior amendment was already attached to the bill, the committee first voted to reconsider that action. The motion to reconsider passed unanimously by roll call. The committee then voted to adopt Amendment 1004, which also passed unanimously. After the amendment was adopted, the committee voted to advance Senate Bill 2282 as amended. That motion also passed unanimously. With no further business, the chair adjourned the meeting.