Transcript Highlights:

• So we'd really like an opportunity to understand what the concerns are so that OMB, ...opportunity to
• understand what the concerns are so that OMB and NDIT can work with Bank of North Dakota to address

Bills: HB1540

Committee: Senate Appropriations - Education and Environment Division

Summary: The committee first took up amended bill 10-13, a school funding and education appropriations measure. Senator Schaible walked through the final version, which included changes to foundation aid, transportation grants, free and reduced-price meals funding, paraprofessional and teacher support programs, Native American education items, library and school facility projects, and several one-time grants. Members discussed removing the science center grant funding, and Senator Meyer objected to that removal, arguing that Grand Forks had raised matching private and local funds and that other cities had received similar state support. The committee also agreed to adjust regional education association funding to reflect six centers rather than seven, reducing that line to $600,000. The committee then adopted the amendment to 10-13 unanimously and passed the bill as further amended on a unanimous roll call, with Senator Shively designated as carrier. After a brief recess, the committee turned to bill 1540, but no formal action was taken. Bank of North Dakota and OMB representatives raised concerns that the draft included policy changes and procurement/IT exemptions that needed further discussion. Members agreed the bill would be delayed until Monday so the Bank, OMB, and NDIT could confer and work through the mechanics and policy issues before the committee moved it forward.

Transcript Highlights:

• We've got some presentations today by ITD and OMB.
• So I don't know who's leading off, whether it's OMB or a... Couple months.
• From what you heard, do you think we could fund OMB without doing the university system?
• You see here's two agencies, emergency services and OMB. Up and to the right is a good thing.
• Agencies, emergency services, and OMB. Up and to the right is a good thing.

Committee: Joint Information Technology Committee

Summary: The committee received a series of informational reports from NDIT and DPI on major IT projects, cybersecurity, and the K-12 student information system transition. Justin Data reviewed the quarterly major project portfolio, noting 111 projects totaling about $542.8 million, generally under budget and slightly behind schedule overall. He highlighted three schedule-red projects: Bed Management System and Vital Records, both now complete and being closed out, and the Roadway Capital Planning Project, which is delayed due to vendor bug fixes after user testing. He also summarized new project startups, including the Attorney General’s Victim Notification System, HHS Medicaid correctional facilities data exchange, Highway Patrol’s motor carrier e-permit system, and additional RIMS work, and answered questions about project timing, funding, and whether work had begun on legislatively funded IT projects. Chris Gurgan, NDIT’s chief information security officer, reported on mandatory cybersecurity incident reporting under HB 1314. He said 77 incidents have been reported since August 2021, with 47 meeting the statutory definition of a cybersecurity incident; phishing remains the most common type, followed by email quarantine alerts, XDR detections, and malware. He emphasized that most incidents are resolved, but that timely reporting is critical for any chance of recovering funds in business email compromise or ransomware cases. He also described several notable incidents since the last report, including the PowerSchool breach, a SimpleHelp intrusion at a school district, a court intrusion, a WSUS vulnerability, a business email compromise at a K-12 district, and a recent ransomware report involving a non-state critical infrastructure entity. Members asked about smishing, MFA, conditional access, security awareness training, and recovery of lost funds; Gurgan said state systems use phishing-resistant MFA and conditional access, training is provided to state employees and offered to political subdivisions on an opt-in basis, and broader cybersecurity maturity assessments are underway. Craig Falkley gave brief reports on coordination with political subdivisions and higher education, including shared networking, cybersecurity, radio/911, PeopleSoft, and co-location services. He also explained distributed ledger technology as a tool for decentralized, secure data sharing, but said the state has limited use for it and would likely frame future reporting more broadly around emerging technologies. The committee then heard from Tony Ambrose of DPI on the statewide Infinite Campus implementation. He said district implementations are underway, but the project had to terminate its original data migration vendor for poor performance and replace it with Aurora Educational Technology, which had experience with a similar North Carolina migration. He also said DPI is moving special education data from Tynet into Infinite Campus, is still working through how to preserve e-transcripts and Choice Ready-type functionality after the PowerSchool transition, and is developing identity, authentication, and data-sharing arrangements for the summer cutover. Members raised concerns about procurement timing, summer school disruption, and whether some functions would be ready by July 1.

Transcript Highlights:

• So first off, I’d like to start by just thanking the staff of OMB.
• First of all, I’d like to start by just thanking the staff of OMB.
• needs to be completed from year-end at June 30 through December 31st of the calendar year in order for OMB
• There are OMB policies that... beginning with the North Dakota Center for distance education.
• There are OMB policies that, That they are reviewed and approved by appropriate individuals.

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.

Transcript Highlights:

• from There is testimony in here in the opposition from March, from both the Bank of North Dakota and OMB
• I hadn't heard from OMB. They never came down and had a conversation.
• At the request of OMB and on his behalf, they asked me to prime sponsor that, and I did.

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.

Transcript Highlights:

• I might flag something quickly from the OMB guidance that just came out last week.
• I prepared a letter with many of my Democratic colleagues, which you are going to send to OMB. Mr.
• I think the recent OMB memos, if you haven't seen those, cover a lot of the safeguards that should be

Committee: Joint Joint Economic Committee

Keywords: artificial intelligence, waste reduction, fraud prevention, government efficiency, improper payments, data reliability, oversight

Summary: The meeting was chaired by Chairman Schweikert and involved a comprehensive discussion on how to utilize artificial intelligence (AI) for reducing waste, fraud, and improper payments within federal programs. Key witnesses, including Mr. Andrew Canarsa from the Council of the Inspectors General, provided insights on the potential of AI in enhancing government efficiency. The committee emphasized the importance of reliable data and thorough examination of AI application to avoid unintended consequences while addressing the estimated $162 billion in improper payments reported by the federal government. Concerns were raised regarding the recent firing of inspectors general and the impacts that could have on oversight and accountability processes.

Transcript Highlights:

• There's one on nonprofits going, you know, suing OMB.
• There's one on nonprofits going, you know, suing OMB.
• There's one on nonprofits going, you know, suing OMB.
• There's one on nonprofits going, you know, suing OMB.
• There's one on nonprofits going, you know, suing OMB.

Committee: House Capital Investment

Transcript Highlights:

• Today we'd like to request the adoption of revised administrative rules for OMB.
• The proposed rule changes have been approved for adoption by the Director of OMB and the State Personnel
• This information was also made available on the OMB website.
• I serve as General Counsel for HRMS within OMB.

Committee: Joint Administrative Rules Committee

Summary: The committee approved the March 12, 2026 minutes and granted the Board of Medicine an extension of time to implement rule changes tied to House Bill 1620/1622, which concern North Dakota’s entry into the physician assistant licensure compact. The Board said it is waiting on compact rules, especially fee structures, before finalizing its own rules. The committee then took up extensive Office of Management and Budget personnel rule revisions, covering salary administration, recruitment, leave policies, funeral leave, service awards, appeals, and shared leave. OMB said the changes modernize HR practices and implement recent legislation, including new hire leave and enhanced annual leave for hard-to-fill positions; the committee raised concerns about the subjectivity and fairness of the hard-to-fill leave provisions, but no action was taken against the rules. The North Dakota Lottery presented emergency and regular rule changes, including updates tied to the Millionaire for Life game and miscellaneous clarifications. The Board of Examiners for Audiology and Speech-Language Pathology described rule updates that add speech-language pathology assistants to the rules, ease continuing education requirements for out-of-state applicants, expand temporary licensure, and clarify supervision standards. The State Electrical Board reviewed numerous code updates, including changes to electrical and fire alarm standards, receptacle labeling, countertop receptacles, and a major new conveyance/elevator inspection program added by the Legislature; the board said it is preparing to begin inspections by August 1. The Industrial Commission’s Geological Survey Division presented new rules implementing House Bill 1459 on critical minerals in coal-bearing formations, including permit, reporting, confidentiality, and royalty-related provisions. The committee asked about confidentiality of exploration data and drilling depth. The Public Employees Retirement System outlined rule changes implementing several bills affecting defined benefit, public safety, defined contribution, insurance, deferred compensation, and retiree health credit programs, and noted possible future proposals to add state EMS or create a LOSAP-style plan. The Department of Health and Human Services presented substance use disorder voucher rules implementing House Bill 1012, including allowing individuals to apply directly and setting reimbursement procedures; the rules were expected to have a $250,000 general fund impact already included in the budget. The longest discussion involved the Gaming Commission rules. Members questioned whether the commission had authority to raise poker tournament buy-ins from $300 to $1,500, viewing it as an expansion of gaming rather than a mere clarification. After debate, the committee voted to void that specific rule section for lack of statutory authority. The rest of the gaming rules covered higher raffle limits from House Bill 1192, the change from “bar” to “alcoholic beverage establishment,” veterans’ organization proceeds, credit ticket voucher kiosks, online raffles, and advertising restrictions; the presenter said several public comments led to revisions or withdrawals of proposed language. The meeting ended with discussion of upcoming Ethics Commission travel-reporting rules and scheduling the next committee meeting in September.

Transcript Highlights:

• We are working with OMB on our cost allocation, so that is not cost allocating correctly, which is why
• In House Bill 1015, OMB oversees the project and has established a... interior work being completed.
• In House Bill 1015, OMB oversees the project and has established a In House Bill 1015, OMB oversees the
• steering committee consists of one representative from the Governor's office, two representatives from OMB

Summary: The committee met with a quorum, approved the March 18 minutes, and then received a series of updates on major health-related projects and programs. CHI St. Alexius representatives reported progress on behavioral health buildouts in Bismarck, Williston, and Grand Forks, including demolition and construction milestones, staffing plans, and timelines. The Bismarck project remains on track for completion in June 2027 with about $346,500 spent to date. Williston reported construction underway, a $750,000 unbudgeted air handler replacement, active recruitment for psychiatrists and other staff, and a projected substantial completion in early 2027. Grand Forks reported about 30% completion, weather-tight status expected in August, and continued staffing ramp-up as the facility expands from its current 24-bed operation. The Department of Health and Human Services then reviewed a set of technical line-item transfers, emphasizing that they were administrative corrections with no net change in funding. The department also walked through the Salaries and Wages Block Grant and FTE counts, noting overall staffing remained within appropriated limits and that behavioral health staffing had increased. Members asked about vacancies, consultant use, and the mix of in-state versus out-of-state expertise for the Rural Health Transformation Program. HHS said it had posted 12 funding opportunities, received 422 applications, obligated $8.4 million so far, hired 26 people, and was preparing additional grant rounds and a CMS budget submission. The department said the program is structured around workforce, prevention/healthy living, care closer to home, and technology/data, with ongoing stakeholder engagement and community forums. The committee also heard on the certified community behavioral health clinic implementation plan, SNAP payment error rates, and the state laboratory project. HHS said CCBHC certification is being implemented in four regions—Williston, Minot/North Central, Fargo/Southeast, and Dickinson/Badlands—with care coordination expanding and baseline data still being collected. On SNAP, the department reported a 2025 payment error rate of 9.89%, acknowledged cost impacts under HR1, and said it is using training, system changes, and pre-authorization quality checks to reduce errors toward a 6% target over the next 6 to 12 months. Finally, Public Health reported the state laboratory reached substantial completion on June 12, with total costs at $69.95 million of the $70 million budget, though a service elevator issue will require a new lift to be added using contingency funds.

Transcript Highlights:

• So the White House, you know, through the OMB, submits a proposal, and then Congress has 45 days to vote
• Some of these orders were included in an OMB memo, which, again, you recall, came out.
• The OMB memo clarified and actually provided an Excel sheet with thousands of federal programs that were
• going to be questioned, then all the OMB.
• The OMB Budget Director, Russell Vaught, has the ability to put a package together and transmit it to

Committee: House Federal Funding Stabilization Subcommittee

Transcript Highlights:

• have a unique opportunity because we are working with the Federal Office of Management and Budget, OMB
• We are working with the Federal Office of Management and Budget, OMB, who have invited us to work with
• And again, we have a unique opportunity for Arkansas to apply to the current OMB for this cost allocation

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Transcript Highlights:

• Cost allocation: we are working with the Federal Office of Management and Budget, OMB, who have invited
• We are working with the Federal Office of Management and Budget, OMB, who have invited us to work with
• And again, we have a unique opportunity for Arkansas to apply to the current OMB for this cost allocation

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Summary: The committee met to hear an update from consultants Mason Bishop and Cameron Christie on Arkansas’s “one door” or “no wrong door” workforce and social services modernization effort. The discussion focused on moving the state toward a work-first system that better connects job seekers, employers, education, and public assistance programs, with goals of increasing upward mobility, improving labor force attachment, reducing inefficiencies, and adapting to changes such as AI and other economic disruptions. The consultants argued that Arkansas’s current system is fragmented across multiple offices, portals, agencies, and funding streams, and that people often have to navigate separate doors for workforce services, TANF, SNAP, Medicaid, and related supports. Bishop repeatedly pointed to Utah as the model, describing how that state integrated workforce and human services into a single department, used cost allocation to blend funding behind the scenes, and saw improved customer service and outcomes after reform. He said TANF should be treated as a workforce program, not just a benefits program, and suggested that Arkansas could use TANF and other tools to cross-train DHS staff, co-locate services, and create a more unified service delivery model. Members asked about federal flexibility, waivers, and whether the state could use one large waiver or a broader restructuring to simplify the system. Bishop explained that a federal pilot authority proposal failed in Congress, so the current approach relies on waivers, cost allocation plans, and possible state-level changes. The committee also discussed the relationship between DHS and workforce offices, the role of local workforce boards, how disability and vocational rehabilitation cases would be handled, and how the governor’s Restore Hope/Hope Hub and faith- and community-based initiatives might fit into the broader plan. Bishop said Arkansas already has rehabilitation services within the workforce department and emphasized that case managers should focus on people rather than programs. No votes were taken. The chair said the committee would revisit case management at its August meeting and adjourned the meeting after thanking the consultants.

Transcript Highlights:

• Meanwhile, the White House still is pushing forward as policies contained in the OMB memo, even with
• </c><00:03:45.280><c> memo</c><00:03:46.000><c> even</c> policies contained in the OMB memo even policies
• contained in the OMB memo even with<00:03:46.400><c> its</c><00:03:47.319><c> recision,</c><00:03:48.319
• And while that OMB memo was rescinded, we have been working with agencies to monitor any disruptions
• And while that OMB memo was rescinded, we have been working with agencies to monitor any disruptions

Committee: House Ways and Means

Transcript Highlights:

• So first off, I'd like to start by just thanking the staff of OMB.
• First of all, I'd like to start by just thanking the staff of OMB.
• First of all, I'd like to start up by just thanking the staff of OMB.
• There are OMB policies that... That they are reviewed and approved by appropriate individuals.
• There are OMB policies that govern that.

Committee: Joint Legislative Audit and Fiscal Review Committee

Summary: The Legislative Audit and Fiscal Review Committee met to receive a series of audit presentations, beginning with approval of the prior meeting minutes and a review of the state’s annual comprehensive financial report (ACFR) for fiscal year 2025. The State Auditor’s Office and the Office of Management and Budget reported a clean opinion on the state’s financial statements and described continued growth in net position, strong general fund balance, and significant Legacy Fund investment income. Committee members asked about how the report reflects long-term finances and how North Dakota compares with other states, and OMB noted that the ACFR is based on audited actual results rather than budget forecasts. The committee then heard the North Dakota University System audit, which also received a clean opinion but included four findings: misreporting of Strategic Investment and Improvements Fund construction money, insufficient monitoring of service organizations, improper bank reconciliations at several campuses, and investment/cash recording issues at Bismarck State College. University System officials agreed with the findings and said corrective actions were underway, including internal review of bank reconciliations and greater use of shared services. Members also questioned practices such as campus use of certificates of deposit and whether repeated findings were being adequately addressed. Additional audits were presented for the State Fair Association, 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 Securities Department, the Commission on Legal Counsel for Indigents, the Ethics Commission, and the Office of Administrative Hearings. Most received clean opinions with no findings; exceptions included a repeat component-unit issue at the State Fair Foundation, a securities personnel-evaluation finding, and a Housing Finance Agency finding involving a late return of escrow surplus. The committee also discussed broader oversight issues, including the need for independent auditing of the Ethics Commission, possible legislative changes to give the State Auditor more subpoena power and independent legal counsel, and future work on data analytics, cybersecurity reviews, and audit capacity. The meeting recessed for lunch after these discussions.

Transcript Highlights:

• We've got some presentations today by ITD and OMB.
• So I don't know who's leading off, whether it's OMB or a... Couple months.
• So I don't know who's leading off, whether it's OMB or ITD, but whoever is, they should stand up and
• From what you heard, do you think we could fund OMB without doing the university system?
• You can see two agencies, Emergency Services and OMB, up and to the right, which is a good thing.

Committee: Joint Information Technology Committee

Transcript Highlights:

• happened was all of a sudden you had two separate agencies that Health Department handing it off to OMB
• , and then OMB has its own regulations.
• Part handing it off to OMB, and then OMB has its own regulations.
• In fact, OMB at one point stopped accepting any of the applications for At one point, OMB stopped accepting
• And then we asked OMB to again accept the applications, which they did, and then things moved much better

Summary: The committee was called to order, a quorum was established, and the minutes from the prior meeting were approved. The first major presentation came from Montana Public Employees Retirement System executive director William Hollahan, who gave an overview of Montana’s Volunteer Firefighters’ Compensation Act plan. He explained that the plan covers volunteer firefighters in unincorporated areas, is funded by 5% of state fire insurance premium taxes, and currently serves 228 departments with about 2,936 active members and 1,242 retirees. He described eligibility rules, annual training and reporting requirements, benefit levels for partial and full pensions, disability, death, medical, and funeral benefits, and said the plan is actuarially sound with roughly $60 million in assets and a funded ratio slightly above 100%. Committee members asked about prior-service credit, whether EMS personnel are included, the effect on recruitment and retention, and whether expanding coverage would require a funding analysis; Hollahan said prior service is not credited, EMS is not currently included, and any expansion would need financial review. Tim Walleen of Workforce Safety and Insurance then presented a draft North Dakota workers’ compensation solution for volunteer firefighters and volunteer EMS personnel. He explained that volunteer responders are already covered by workers’ comp for medical and wage-loss benefits, but the proposal would set a minimum annual wage of $30,000 for calculating wage-loss benefits for qualifying volunteers, with the benefit paid at two-thirds of that amount. Representative Porter suggested tying the volunteer definition to existing code rather than a fixed dollar amount, and Walleen agreed. Questions focused on whether search and rescue or other volunteer emergency services could be included, whether departments would face new paperwork, and whether volunteer organizations can already elect coverage; Walleen said there would be no additional paperwork and that volunteer coverage is already available. The committee also heard from volunteer fire service representatives and the state fire marshal. An Oakes-area firefighter, Mr. Olson, testified that small departments are struggling with retention, communication, and administrative burdens, especially around separate bookkeeping and funding rules for donated or fundraising money, and he said departments need clearer guidance from the state. State Fire Marshal Dr. Matthew Clark introduced himself and outlined a broader effort to improve education, support, and coordination for fire departments, including a planned 10% audit of certificates of existence beginning in 2027, more outreach through his office, and better assistance with training, reporting, and grant access. He said his office is authorized under current law to provide these services, but the role has been vague and underused. Finally, Arnagard Rural Fire District Chief Rick Schreiber testified in favor of new recruitment and retention ideas, including retirement-style benefits, health insurance, tax incentives, scholarships, grants, and more remote or regional training. He said volunteer departments are losing members, that local tax and donation funds are already stretched, and that any new retirement or incentive program should be sustainable and likely involve a mix of state and local support.

Transcript Highlights:

• It mirrors the last budget presented by Donald Trump and his former OMB director, Russell Vogt, the architect
• Of course, we now have Russell Vogt again as OMB director.
• regular Senate Budget Committee room, we had a hearing for Russ Vogt's nomination to be the head of OMB
• And now he's over at OMB, and we see a whole lot of illegal actions going on, which is why our courts
• put Russ Vought, who obviously has a lot of contempt for government and Congress, in charge of both OMB

Committee: Senate Senate Budget

Transcript Highlights:

• Some was in OMB, some was a direct grant to association of counties. It was kind of a mess.
• Some was in OMB, some was direct grant to associate. and it was kind of scattered.
• Some was in OMB, some was a direct grant to association of counties. It was kind of a mess.
• I know in OMB the $7.1 million was the number in the OMB budget. So we'll verify all those.

Committee: House Appropriations

Summary: The committee first heard Senate Bill 2265, which would provide the Fargo National Cemetery with up to a $3 million line of credit to help fund improvements such as indoor bathrooms, parking, a family gathering area, an office, a hearse garage, and a veterans gallery. Supporters said the cemetery has expanded rapidly since 2019, has already conducted about 1,000 burials, and needs better facilities for families and the Honor Guard; they also said the project would be subject to federal VA approval and, once completed, would be taken over by the VA. Members raised questions about the project’s cost, timing, funding sources, whether the bill should be a grant instead of a line of credit, and whether a chapel should be specifically included. No vote was taken on SB 2265 during the excerpt. The committee then took up Senate Bill 2230, which would have the Secretary of State mail active voters a guide on ballot measures at least 45 days before an election, with objective summaries, fiscal impacts, and arguments for and against each measure. Secretary of State Michael Howe said the office already receives many questions about ballot measures and would post the same information online and at polling places, while emphasizing the need to keep the material objective and consistent with election-law restrictions. Members generally supported the idea as a voter-education tool, and the committee adopted a due pass motion on SB 2230 by a 19-0 vote. Finally, the committee heard Senate Bill 2256, which would provide one-time state support for the NDSU Research and Technology Park in Fargo to expand its role in commercialization, robotics, precision agriculture, and defense-related technology. Park CEO Brenda Weiland explained that the park is a 501(c)(3) nonprofit spun out of NDSU, governed by a board with both university and industry representation, and that the new model is intended to bridge the gap between research and market-ready products without competing directly with private industry. Members asked about ownership, intellectual property, the planned partnership with Carnegie Mellon’s robotics center, and how the park would use the funding; the discussion focused on contracts, licensing, and the park’s intent to build technical capacity and attract companies. The excerpt ends before any vote on SB 2256.

Transcript Highlights:

• So I'm just curious, has there been any discussion on any of that, or is that an OMB thing? Mr.
• And so we did work well across agencies on that with procurement, OMB, NDIT.
• And so that's probably one of the larger... on that with procurement, OMB, NDIT.

Summary: The Budget Section’s Commerce and Legal Services division met to review the Department of Commerce base budget and current program activities for the 2027-29 biennium. Legislative Council staff first walked through a new “blue sheet” summary explaining what is included in Commerce’s base budget, with emphasis on salaries, operating costs, and especially grant authority funded largely by federal dollars. Members asked about how grant funding is coordinated across agencies, and staff noted that some programs, such as LIHEAP and UAS-related work, involve interagency collaboration and federal budget authority that may not match exact cash received. Commerce Commissioner Chris Schilke then presented on grant administration, the department’s transparency page, and several grant programs, including Destination Development and Automate ND. Members questioned how many entities apply for grants, what criteria are used, whether return on investment is tracked, and how long grant awards take to reach recipients. A lengthy exchange followed over whether Commerce must follow state procurement law or instead administer grants using its own “best practices” process; the commissioner said the department’s approach was based on legal guidance and competitive grantmaking, while some legislators argued the process should more closely reflect legislative intent. The department also highlighted the North Dakota Development Fund, child care loans, and workforce initiatives. Commerce described Development Fund investments, including examples of successful projects and a child care loan program that has supported 43 active businesses serving 3,754 children. Staff also outlined a new non-primary-sector lending framework and said a workforce and housing sub-cabinet are working on more coordinated statewide strategies. Workforce Director Katie Ralston Howell presented a broad workforce-system assessment, a new shared vision, and task forces focused on simplifying entry, improving warm handoffs, and building a public dashboard of shared metrics; members discussed higher education alignment, career pathways, and the need for better handoffs from schools to employers. No formal votes were taken, and the meeting ended with plans to continue these budget discussions in June, including the Attorney General budget.

Transcript Highlights:

• Well, I think that under Representative Bosch, I think under the IT, was it an OMB budget, I believe,
• Well, I think that under Representative Bosch, I think under the IT, was it an OMB budget, I believe,
• Chairman, it was in the budget request that was submitted to OMB. Okay.

Bills: SB2003

Committee: House Appropriations - Education and Environment Division

Summary: The committee met to work through the higher education budget, beginning with a conflict-of-interest request from Representative Martinson, who was excused from voting because of a partnership that leases office space to Bismarck State College. Members then reviewed the higher education institution budget sheets, covering ongoing and one-time funding items for campuses and system projects such as BSC housing, Lake Region roof repairs, UND’s STEM and National Security Crossroads projects, the UND allied health facility, NDSU projects including New Horizons, DSU deferred maintenance and campus security, Mayville’s Old Main, Minot projects, and the regional health institutes. Members also discussed student financial assistance, the professional student exchange program, IT security funding, and workforce/education innovation grants. Several amendments and policy questions were debated. The committee adopted an amendment to make workforce education innovation grants competitive rather than automatically distributed, and then voted to remove language prohibiting those funds from being used to duplicate academic programs. Members also removed similar anti-duplication language from the New Horizons section. They agreed to extend the UND hyperbaric chamber transfer authority to 2027 and clarified language around UND land-sale proceeds. A proposed amendment to add $5.6 million for the Wahpeton State School of Science building purchase failed for lack of a second, and a proposal to restore fetal alcohol spectrum disorder funding to UND was left for conference. The committee also discussed, but did not add, a tuition cap change, a study on the Praxis exam, and several governance-related provisions. The committee spent significant time on broader higher education policy items, including a $3 million enterprise resource planning request for the university system, a $2 million grant program for students who are pregnant, recently gave birth, or are caring for young children, and a $1.1 million request for library age-verification software tied to the Odin system. Members also discussed dual-credit authority for UND and NDSU, a goal for the UND medical school to increase North Dakota resident enrollment, and intent language regarding the commissioner/chancellor model and presidential search authority. At the end of the meeting, the committee approved the amendments and then gave the higher education budget a do-pass recommendation as amended, with Representative Sanford designated as the carrier. The Forest Service budget was also approved, including two additional FTEs, and the committee adjourned after noting it would continue with other budgets the next day.

Transcript Highlights:

• We let OMB know so that the governor can build it into his budget recommendations.
• I'm the Total Rewards Manager in HR Management Services, part of OMB.
• Our final agenda item before lunch is the, our recess, I should say, is a presentation from OMB regarding
• The OMB State Procurement Office awards contracts based on total cost and seldom requires itemization

Committee: Joint Employee Benefits Programs Committee