A BILL for an Act to create and enact a new section to chapter 57-51.2 of the North Dakota Century Code, relating to tribal oil and gas tax revenue allocation withholding.
SB 2304 would require the North Dakota state treasurer to withhold all oil and gas tax revenue allocations made under chapter 57-51.2 and place those funds into an escrow account at the Bank of North Dakota, beginning with allocations in August 2025. The bill is aimed at tribal oil and gas tax revenue allocations and would pause distribution of those revenues until specified conditions are met.
Under the bill, the withheld revenues could be released only after two conditions are satisfied: first, a tribal governing body and the governor must enter into a new agreement under the chapter; and second, the tribal governing body must have submitted all required audit reports and responses to audit findings to the federal Bureau of Indian Affairs. In effect, the bill creates a withholding-and-release mechanism tied to tribal-state agreements and federal audit compliance.
If enacted, SB 2304 would amend chapter 57-51.2 of the North Dakota Century Code by adding a new section governing the timing and handling of oil and gas tax revenue allocations. It would give the state treasurer a mandatory duty to escrow certain allocations at the Bank of North Dakota and would delay payment of those funds until the statutory conditions are met. The bill would directly affect tribal governments receiving oil and gas tax revenue allocations, the governor’s office in negotiating agreements, and the state treasurer’s administration of the revenue distribution process.
There is limited recorded discussion or voting history available for SB 2304, and the bill was ultimately withdrawn on January 29, 2025. Based on the text alone, the measure appears to reflect a policy preference for conditioning revenue distribution on renewed agreements and audit compliance rather than an outright permanent reallocation. Because no committee testimony or votes are provided, the broader sentiment cannot be measured from debate, but the withdrawal suggests the proposal did not advance to enactment.
The main points of contention likely concern the bill’s decision to withhold tribal oil and gas tax revenues until a new agreement is reached and audit requirements are satisfied. Supporters would likely view the escrow approach as a way to ensure accountability and compliance, while opponents may see it as an improper leverage mechanism that delays funds owed to tribal governments. The requirement for a new agreement with the governor and the linkage to federal audit submissions are the most likely sources of dispute, especially because the bill conditions access to revenue on both state-negotiated and federal administrative steps.