AN ACT to amend and reenact subsection 13 of section 1-01-49, subsection 4 of section 10-30.5-01, and section 40-57.1-02 of the North Dakota Century Code, relating to the definition of primary sector business.
SB 2154 revises North Dakota’s statutory definition of “primary sector business” and makes related conforming changes in the state’s economic development and local development organization laws. The bill keeps the core concept that a primary sector business is one certified by the Department of Commerce’s Division of Economic Development and Finance that adds value to a product, process, or service and creates “new wealth,” but it clarifies that tourism operations can qualify when they attract out-of-state visitors and generate revenue from customers outside the state or from in-state customers when the product or service was previously unavailable or difficult to obtain locally.
The bill also updates related provisions so that “primary sector business” includes tourism but excludes production agriculture, and it revises the definition of “project” for income tax exemption purposes to include both primary sector business and tourism, including new or expanded qualifying businesses. In addition, it restates the definition of “tourism” as tourism-related businesses and activities such as recreation, historical and cultural events, guide services, and unique lodging and food services that function as destination attractions.
SB 2154 affects North Dakota Century Code sections governing economic development incentives, local development organizations, and income tax exemption eligibility for projects. By expressly including tourism within the primary sector framework and clarifying what counts as “new wealth,” the bill broadens and refines the types of businesses that may qualify for state economic development recognition and related tax or financing benefits, while preserving the exclusion for production agriculture.
The available voting record shows very strong support for the bill: it passed the Senate unanimously, 47-0, and the House overwhelmingly, 91-1, with two members absent. No committee transcripts are available, but the near-unanimous votes suggest the measure was viewed favorably and as a technical or clarifying economic development bill rather than a controversial policy change.
There is little evidence of major controversy in the available record. The only apparent substantive policy issue is the expansion and clarification of what qualifies as a primary sector business, especially the inclusion of tourism and the exclusion of production agriculture. That distinction may matter to stakeholders in agriculture, tourism, and economic development, but the recorded votes indicate broad agreement on the final language.