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Summary: The conference committee on Senate Bill 2330 met to consider a new conference committee amendment, 25.0551.0603. Members reviewed changes that narrowed the grade levels covered from 4-12 to 6th, 10th, and 12th grades, replaced “evidence-based” with “best practices,” and retained language striking the appropriation because funding is already included in the Attorney General’s budget. Representatives also noted that the bill applies to public and tribal schools, with non-public schools removed from the proposal. Testimony from Representative Jonas reported follow-up with the Department of Public Instruction and the Attorney General’s office. DPI said it was prepared to work with the Attorney General’s office and the eventual grant recipient if the bill passes, and the Attorney General’s office indicated it was comfortable with the statutory guidance in the bill. Committee members discussed the importance of maintaining quality standards and the role of stakeholders in implementation. The committee first voted on the amendment and it passed by voice vote, then voted to adopt the conference committee amendment in place of the House amendment 0601. That motion also passed unanimously by voice vote. Senator Bain was designated to carry the bill on the Senate side and Representative Jonas on the House side, and the committee then adjourned.

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Summary: The House Appropriations Government Operations section reconvened and first took up an amendment for the Industrial Commission related to a proposed west-to-east natural gas pipeline. Members discussed increasing the state’s capacity commitment from $60 million to $120 million so the project could move forward and support a future FERC permit, with supporters citing growing demand from data centers, agricultural users, and oilfield gas capture needs. The committee also discussed a separate motion to exempt the mill and elevator from the vacant FTE pool; that motion failed on a roll call vote. The committee then reviewed other Industrial Commission items, including housing authority funding, the abandoned well fund, Bank of North Dakota-related changes, and a decision not to add more to litigation funding. The discussion then shifted to the Department of Transportation budget and a major transportation funding framework. Speaker Weiss explained a proposal to consolidate and rework transportation funding into fewer buckets, including moving Prairie Dog-style funding into the flexible transportation fund, adding $370 million to that fund, and providing $171.3 million for federal match needs. The plan also included $50 million for statewide discretionary projects, $50 million for bridges, and grant flexibility for cities, counties, and townships, with some debate over eligibility thresholds and how much discretion DOT should have in awarding grants. Members also discussed whether small communities could realistically apply for grants and how the new structure would coordinate statewide transportation investments. Additional DOT topics included a proposed gas tax increase, changes to distribution percentages among DOT, cities/counties, townships, and transit, and the treatment of electric vehicle registration fees. The committee noted that transit funding would rise under the formula and that EV registration fees would continue to flow into the highway distribution fund. No final action was taken on the broader DOT package during this portion of the meeting, but members agreed to continue work on the amendment and revisit the issue the next day, with a suggestion to brief the caucus before floor action.

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Summary: The Senate opened with prayer, the Pledge, a quorum call, and approval of journal corrections. It then handled several House messages, appointing conference committees on Senate Bills 2004 and 2006 and House Bills 1018, 1019, and 1363, and re-referring House Bill 1216 to Appropriations. The chamber also adopted amendments to House Bill 1601, which would have expanded special assistant attorney general authority for certain offices, but the bill failed on final passage after strong opposition centered on preserving the Attorney General’s control and avoiding a solution in search of a problem. A major portion of the day focused on education funding. House Bill 1369 was amended to raise per-pupil aid from 2% and 2% to 3% and 3% and to increase the school construction loan transfer from $75 million to $100 million; supporters said this would help local schools and military base projects, while opponents raised questions about special education placement language and state coordination. The bill passed 44-3. House Bill 1013, the DPI budget, was also amended extensively to adjust staffing, funding sources, grants, meal assistance, teacher training, and other education programs; it passed 45-2. House Bill 2234, dealing with Choice Ready grants, was amended to shift funding away from general funds and toward federal or other sources, but then failed on final passage after the sponsor urged a red vote. The Senate also approved House Bill 1482, restricting bond and indebtedness elections for counties, cities, school districts, and park districts to primary or general election days, and House Bill 1332, creating a value-added agriculture facility incentive program with an emergency clause. House Bill 1010, the Insurance Department budget, passed unanimously after amendments reflecting the merger of the Securities Department into Insurance and adding staff and fee changes, while House Bill 1011, the separate Securities Department budget, failed because its funding was already included in HB 1010. House Bill 1584, a major pharmacy benefit manager reform bill, passed with an enforcement fund and new licensing/enforcement structure despite debate over ERISA and market transparency. In other action, the Senate concurred in House amendments and passed Senate Bills 2226, 2230, 2069, 2082, 2387, 2385, and 2186, with SB 2186 on parenting time interference and a child custody task force passing 27-20 after debate over whether the issue should be left to the courts. Senate Bill 2234, on Choice Ready grants, and Senate Bill 2243, on driver’s license points and traffic penalties, both failed after concurrence motions were adopted but final passage votes were overwhelmingly negative. The chamber also advanced Senate Bill 2291 to conference committee consideration near the end of the transcript.

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Summary: The House convened with prayer, roll call, and a quorum present, then took up several procedural motions, including suspending House rules for three legislative days and replacing conference committee members on Senate Bill 2282 and SCR 4007. The chamber also recognized visiting student groups from Grafton/Pleasant Valley and Shiloh School. Later, the House agreed to several conference committee reports and moved a number of measures through final passage or final disposition. House Bill 1428, which would have created a sales tax exemption for clothing sold by thrift stores or nonprofit corporations, drew extensive debate over tax policy, revenue loss, and possible conflicts with streamlined sales tax rules. Supporters argued it would help lower-income shoppers and nonprofit thrift stores, while opponents said it created an unfair advantage and could reduce state and local revenue. The conference report was adopted, but the bill ultimately failed on final vote, 37-54. House Bill 1440, relating to cigar lounges, was amended in conference and then passed 75-17. House Bill 1460, concerning adult foster care for private-pay adults, electronic monitoring, and a legislative study, was also adopted and passed overwhelmingly, 91-1. The House then passed Senate Bill 2224, which revises gaming commission structure and gaming stamp requirements, adds Attorney General enforcement provisions, and includes a $25,000 general fund appropriation, by a vote of 88-0. Senate Bill 2327, which expands uses of the agriculture diversification and development fund and appropriates $15 million to it, passed 74-17 after a member was excused from voting due to a personal interest. Senate Bill 2267, creating a regulatory framework for on-site wastewater treatment systems and shifting licensing authority to the Department of Environmental Quality, passed 82-10, and Senate Bill 2276, addressing joint water resource boards for cross-county projects, passed 90-1. The most contentious debate centered on Senate Bill 2160, which would move the state employee health plan from grandfathered status to a non-grandfathered ACA-compliant plan and appropriate about $6.6 million for the transition. Supporters said it would give the PERS board more flexibility, expand preventive and other benefits, and potentially slow premium growth without charging employees premiums. Opponents warned it could raise out-of-pocket costs, add mandated benefits, and shift costs to employees, while also arguing the bill had not been adequately studied. After extended debate, the House passed SB 2160 by a vote of 55-37. The chamber also concurred in Senate amendments to House Bill 1318, a pesticide labeling bill, and placed it on final passage, but the transcript ends before the final vote on that measure.

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Summary: The Finance and Tax Committee met to consider Senate Bill 2397, which concerned an incentive for exploratory wells and related certification language. Representative Dockter explained that the latest version incorporated additional language requested by Nathan Anderson, clarifying that an operator seeking certification of a well as a development incentive well must demonstrate to the Industrial Commission that the well meets the criteria. He and other members argued the proposal would encourage investment in exploratory drilling, support new technology, and ultimately benefit state revenues. The committee adopted Amendment 01-005 after discussion and a roll call vote. Members then moved a due pass recommendation for Senate Bill 2397 as amended, and the motion passed 14-0. Several members briefly commented on the need to incentivize investment and the value of the industry to the state. At the close of the meeting, members noted that this was the committee’s final bill of the legislative session. The chair thanked members for their work on tax policy and adjourned the meeting.

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Summary: The House Appropriations Government Operations section met with a full committee present and took up discussion of the Department of Transportation budget and a House funding package. Members described a proposal to simplify DOT funding by eliminating the Prairie Dog bucket, consolidating money into three main buckets/funds, and using DOT expertise to select projects while giving counties, cities, and townships more certainty. They said the plan would also restore 100% of the motor vehicle excise tax to the general fund and use other existing funds, including SIF and the legacy earnings fund, to support DOT and local road distributions. A major part of the discussion focused on how to cover Highway 85 and other road needs. Members and DOT Director Ron Hankey said federal highway formula funding for the next biennium should continue as long as the federal highway bill remains unchanged, but that the six-mile Highway 85 segment is unlikely to receive a federal grant because of benefit-cost issues. The committee discussed bonding for the $155 million set aside for Highway 85, with members noting Garvey bonds as one option but wanting flexibility to use the best available rate. They also discussed a possible five-cent gas tax to support the highway distribution fund; several members raised concerns about the policy and political difficulty, while others argued it was needed because oil revenues are down and the state needs a sustainable funding source. Members repeatedly asked for a clearer visual or flow chart showing how the money would move through the new structure, and the chair and sponsors said staff would prepare a pictorial and amendment language. There was general support for the concept, but some members wanted caucus education before floor action. No formal vote was taken during this discussion, and the chair indicated the committee would move quickly, with amendments to follow and the bill expected to continue in conference committee.

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Summary: The committee reconvened with a quorum and Representative Freilich reported back on concerns previously raised about recording devices. He explained that after reviewing the issue with Jonathan Alm and legislative council, they concluded the existing bill language and other provisions of the Century Code already addressed the concerns, and that adding more language could risk interfering with First Amendment rights. Members noted that most of the House changes were technical or grammatical, with one substantive change related to setting a deadline for repayment of overpayments. Senator Hogan moved to accept the House amendments, Representative Ruby seconded, and there was brief discussion indicating the proposal was straightforward. The clerk called the roll, and the motion to accept the House amendments passed unanimously, with all members voting aye. After the vote, the group confirmed the carrier for the measure, with Representative Freilich agreeing to remain the carrier. The meeting then adjourned.

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Summary: The committee met to work on three remaining policy bills. On HB 2225, members discussed an amendment reducing the Strategic Investment and Improvements Fund housing grant program from $50 million to $30 million, lowering the maximum grant amount, and clarifying that existing lots can qualify after a certificate of occupancy is issued so the program can help communities like Watford City and Williston use prepared lots. Members also discussed the matching requirements, tribal eligibility, and how Commerce would score applications to ensure the money lowers lot costs rather than being absorbed by political subdivisions. The amendment and the bill as amended both passed 22-0, and Representative Murphy was assigned to carry the bill. The committee then took up SB 2200, which funds the 988 crisis hotline. After discussion, members agreed to strip out the proposed phone-line charge approach and instead provide a $500,000 appropriation from the Community Health Care Trust Fund, consistent with the Senate version, to supplement existing funding for increased staffing and texting-related demand. The amendment and the bill as amended both passed 22-0, and Representative Nelson will carry the bill. Finally, the committee considered SB 2342, which creates a value-added milk processing facility incentive program. The amendment reduced the proposed line of credit from $10 million to $5 million, with the program intended to support dairy-related processing infrastructure such as utilities, roads, water, wastewater, and rail access. Members noted the program would be administered through the Agriculture Diversification and Development Committee, could potentially support one or multiple facilities, and sunsets June 30, 2027. The amendment and the bill as amended both passed 22-0, and Representative Brandenburg will carry the bill. The committee then adjourned, planning to reconvene the next morning to take up additional bills and budget adjustments.

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Summary: The conference committee on HB 1308 met to review Senate amendments related to the Human Trafficking Commission and continuing education language for regulated professions. Senator Beauchay explained that the bill would make the commission more independent and robust by changing permissive language to mandatory language, adding members from DHS/Children and Family Services, school districts, the State’s Attorneys Association, and the governor’s office, and designating the Attorney General or designee as presiding officer. The committee also discussed a new duty for the commission to provide annual human trafficking prevention and awareness education for students, with a proposed cross-reference to DPI curriculum law to avoid conflict with HB 2330. Members raised questions about the size of the commission, quorum concerns, and how the existing human trafficking task force differs from the commission. Testimony from Amy Boyd-Bomey of YouthWorks supported broader representation, especially from child welfare, schools, and tribal entities, and emphasized that trafficking of youth in North Dakota disproportionately affects Native youth. Committee members discussed the need for tribal representation, including a single representative chosen by tribal chairs, and suggested adding language to ensure that perspective. Boyd-Bomey also noted that the statute already references designees from state, local, and tribal agencies, though the committee considered making that more specific. No final action was taken. Representative Davis was asked to draft possible language changes, and the committee agreed to stand at ease and reconvene later, but ultimately the chair announced that more time would be needed and that another meeting would be scheduled.

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Summary: The conference committee on House Concurrent Resolution 4007 met to discuss whether the proposed constitutional amendment on single-subject ballot measures should appear on the primary or general election ballot. House members explained the change to the general ballot as a way to reach more voters and improve turnout, while others noted the prime sponsor preferred the primary ballot to avoid placing too many measures on one ballot and creating voter fatigue or a blanket “no” response. Members expressed mixed views. Some favored the general election because constitutional amendments should be decided by the largest possible electorate; others worried that multiple ballot measures could affect how voters evaluate each proposal, especially with other measures such as the 60% amendment and term-limit-related changes also pending. The committee also discussed prior sessions’ experience with combining multiple resolutions and the decision this year to separate them so each could stand on its own merits. No vote was taken. Representative Steiner asked for more time to consider the issue, and the committee agreed to continue the discussion at a later meeting. The meeting then adjourned.

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Summary: The conference committee on Senate Bill 2374 discussed proposed amendments to the insurance rebating provisions and a new study on towing and recovery issues. Deputy Insurance Commissioner John Arnold explained that, after working with industry representatives, the compromise was to remove the large commercial rebating exemption language and keep the rest of the bill intact, while also clarifying that federal crop insurance remains subject to the state’s rebating laws. Members asked several questions about how the large commercial risk definition would work, how the rules would apply to nonresident producers and border-area farm policies, and whether the changes would affect long-standing industry practices. The committee also considered Commissioner Godfrey’s request for a study on who pays to remove vehicles from the roadside when the owner has liability-only coverage, especially in cases involving totaled or abandoned vehicles. Arnold said the issue has been raised by Highway Patrol and towing interests and that the study language was intended to examine possible solutions for the next legislative session. Some members expressed concern about shifting costs to the insurance industry, but others supported the study as a way to gain clarity. The committee adopted the amendment package, including the towing study language, by a 6-0 roll call vote. It then passed Senate Bill 2374 as amended by another 6-0 vote. The committee noted that the bill would need floor carriers on both chambers, with Representative Johnson and Senator Klein indicating they would carry it.

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Summary: The conference committee on Senate Bill 2133 met to resolve the remaining disagreement over fees for a proposed blackout specialty license plate. The Senate held to a $25 annual fee after dropping an initial $15 fee, while the House argued for $10 or, at most, $20, saying the plate does not support a cause and should be priced to encourage use. Members also discussed whether the plate should be treated like other specialty plates and whether any revenue should be dedicated to a specific purpose, but no particular cause was identified. The Department of Transportation testified that the $25 annual fee would go into the highway distribution fund, the same as personalized plate fees, and explained that the fund is distributed to the state, counties, and townships. DOT estimated the blackout plate could be very popular, projecting about 10% of eligible vehicles and motorcycles might choose it, based on experience in Minnesota and other states. Members noted that Minnesota saw strong demand even with higher fees. After discussion, the committee moved and adopted the Corey amendment setting the annual fee at $25. The roll call showed support from the Senate chair and Senator Paulson, with Representative Johnston voting no and Representatives Casper and Hendricks voting yes. With the amendment adopted, the committee reached agreement and adjourned, with Senate and House members designated to carry the report forward.

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Summary: The committee reconvened in the afternoon and took up only Senate Bill 2015, the Department of Corrections budget. Representative Steeman explained that the budget reflected major changes from the Senate version because bed contracts with Grand Forks and Burleigh-Morton were still unresolved when the Senate acted. He described rising inmate populations, added county/regional jail payments, deferred maintenance and repair funding, planning money for a new Missouri River Correctional Center, software and equipment upgrades, victims of crime grants, and a one-time diversion/deflection center grant for Fargo funded through the Community Health Trust Fund. He also outlined funding for body cameras, tasers, and protective vests, and a Native American reentry program/report provision, along with a legislative management study on sentencing, corrections, and parole oversight. Members asked about the possibility of private or design-build alternatives for the new Missouri River Correctional Center. After discussion, the committee adopted language directing the steering committee to oversee design and construction and to explore other options. There was also discussion of the importance of maintaining North Dakota’s correctional rehabilitation culture, the cost and availability of out-of-state placements, and the current number of inmates housed in regional, county, and interstate facilities. The committee adopted the amendment to engrossed Senate Bill 2015 and then approved the bill as amended on a 21-0 vote, with two members absent and not voting. Representative Steeman was designated as the carrier. The chair then thanked members for their work and announced the committee would reconvene the next morning to continue with remaining bills and budget work before adjourning.

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Summary: The committee met with a quorum and took up the final bill on its agenda, Senate Bill 2370, which had been converted into a 340B drug transparency measure tied to insulin and broader prescription drug pricing issues. Representative Hendrix outlined the latest bill draft, explaining that it would require reporting by covered entities, contract pharmacies, federally qualified health centers, drug manufacturers, pharmacy benefit managers, and health insurers, with confidentiality protections, civil penalties, and staggered effective dates. He also noted unresolved questions about the scope of required reporting, possible overlap with federal reporting, and whether the Insurance Department would need a consultant to analyze the data. Representative Dobervich then proposed an alternative amendment that would replace the bill language with a Legislative Management study on 340B transparency reporting during the 2025-26 interim. Her proposal would remove the detailed reporting mandates and instead direct a study of what information should be collected, how it should be used, who should receive it, staffing or contracted support needs, and stakeholder input from hospitals, pharmacies, FQHCs, rural health, state agencies, insurers, and manufacturers. Members discussed germaneness, the late-stage nature of the changes, and whether the issue had been adequately heard, while the Insurance Department testified that it had not previously studied 340B-specific data but supported transparency and could see value in either a study or reporting approach. The committee first adopted the Hendrix amendment by a vote of 8-5, then voted on a do not pass motion on the amended bill, which passed 7-6. Representative Frelich was selected to carry the bill. The chair then adjourned the committee for the last time and reminded members about the committee dinner.

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Summary: The meeting began with a student performance from Horizon Middle School Show Choir, including songs from an eighth grade concert and the show choir piece “The Body Electric.” After the performance, Deputy Superintendent Donna Fishbeck spoke on behalf of State Superintendent Kirsten Baesler in support of music education, emphasizing its benefits for creativity, collaboration, school climate, and student development, and noting the department’s support for music grants and professional development. She also highlighted the North Dakota Music Educators Association’s role in expanding access and quality in music education. The committee then heard a presentation from Vital Network, introduced as a DPI-funded effort focused on teacher retention. Nate Eklund and Dr. Aaron Rob described the organization’s work with schools and districts to reduce educator burnout by improving workplace conditions, especially around time management, voice in decision-making, and care/support. They said the program uses surveys, dashboards, advisory support, and facilitated school and district processes to identify local friction points and help educators and leaders solve them, with examples ranging from simplifying material requests to improving PLC time and communication. They stressed that retention is driven more by workplace conditions than pay alone, and that solutions must be local rather than one-size-fits-all. Members asked about rural teacher overload, sustainability after grant funding ends, and whether the model could inform broader policy or continuing education reforms. Vital representatives said the work is designed to be embedded in district systems and strategic plans so it can continue beyond their direct involvement, and that the approach aligns with the state’s teacher retention and recruitment task force recommendations. They reported serving about half of North Dakota educators across roughly 50 districts, with partnerships through regional education associations to reach rural areas. No formal votes or legislative actions were taken during the discussion.

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Summary: The committee first took up House Bill 1012, the Department of Health and Human Services budget. Senator Dever walked through the amended budget, highlighting a roughly $5.85 billion all-funds total, major one-time items for IT, child care, housing, behavioral health, juvenile justice, rural EMS, and supportive housing, along with funding for Medicaid expansion, CCBHCs, opioid settlement uses, and several studies and reporting requirements. Members discussed the provider inflation increase, with Senator Mathern urging a 2%/2% rate instead of 2%/1.5%, but the committee adopted the subcommittee amendment and then passed the amended bill 15-0 with a do-pass recommendation. Senator Dever was named as carrier. The committee then considered House Bill 1540, a school choice/education savings account-style bill. Senator Shibley explained the subcommittee amendments, including clarifying the Bank of North Dakota as administrator, adding a means test at 400% of the federal poverty guideline, and adjusting the fiscal note to about $21.7 million for the second year. In debate, members raised concerns about the bank being assigned duties outside its normal role, the lack of DPI involvement, and whether the means test should be tiered rather than a hard cutoff. The committee rejected a do-not-pass motion 5-10-1, then approved a do-pass motion on the amended bill 9-6-1, with Senator Wobama noted as the likely carrier. The meeting ended with the chair announcing the committee would adjourn and reconvene the next morning.

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Summary: The Senate met with a quorum present and handled a mix of conference committee appointments, appropriations bills, policy bills, and House amendments. Early in the session, the chamber appointed conference committees for SB 2399 and for House-amended SBs 2213 and 2354, and also named conference committees for HB 103, HB 1308, and HB 1169. The Senate then took up several appropriations measures, including HB 1612, which creates the North Dakota Center for Aerospace Medicine at UND; the Senate adopted an amendment shifting the funding to a one-time $250,000 Community Health Trust Fund appropriation with a required $250,000 match from other sources, and the bill passed 39-7. HB 1193, the “Back the Blue” grant, was amended to make the funding one-time and focus on officer retention, then passed 41-5. HB 1329, a government spending database proposal for school districts, was amended into a legislative study and passed 42-4. HB 1020, the water budget, received extensive amendments reducing and reallocating funding across major water projects, adding studies and oversight changes, and passed 45-0 with the emergency clause. HB 1581, a tribal tourism grant, also passed 40-6. The Senate rejected HB 1330, which would have authorized divestment from direct investments in Chinese companies; after debate over the prudent investor rule, trade impacts, and whether the bill singled out one nation in law, it failed 20-26. HB 1534, limiting property valuation increases, and HB 1266, adjusting the disabled veterans property tax credit, both failed unanimously or nearly so after committee recommendations against them. HB 1566, which would have created a regulatory framework for a product discussed as kratom, was amended on the floor to convert it into a study and then passed 31-15. The chamber also passed HB 2241 on charter schools after a House amendment changed the funding formula to the statewide average from the prior year, and HB 2022, the indigent legal counsel budget, after House changes added funding flexibility, offset lost fee revenue, and included a study on a public defender office. The Senate concurred in several House amendments and then passed a number of Senate bills. SB 2375, allowing joint negotiations between dental providers and insurers under Attorney General oversight, passed 44-2. SB 2251, clarifying that open records requests during state audits should be referred to the audited agency, passed 46-0. SB 2159, related to nuclear energy research, passed 43-3 after House amendments required Industrial Commission approval and consultation with the radioactive waste advisory council. SB 2155, changing gratis antelope license rules, passed 30-16 after debate over landowner rights and tag distribution. SB 251, setting fees and an audit for the Private Investigative and Security Board, passed 44-2. SB 2280, the prior authorization health insurance bill, passed 43-3 with a House-added study and consumer protections. SB 2023, the Racing Commission budget, passed 41-5 after a House change made internship funding one-time. SB 2232, changing prenatal substance exposure reporting requirements and related toxicology rules, passed 44-2. SB 2241, authorizing public charter schools, passed 39-7. The session ended while the Senate was still processing SB 2022’s final passage vote, but the bill had already cleared concurrence on House amendments.

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Summary: The House convened with prayer, pledge, and roll call, establishing a quorum. It then took up a series of appropriations and policy bills, with the most extensive debate centered on Senate Bill 2025, the Department of Veterans Affairs budget. The House approved amendments that shifted governance of the department and veterans’ home from ACOVA to the governor, citing concerns about ACOVA’s salary-setting actions and broader appropriation oversight. Members opposed to the change argued ACOVA had studied compensation and acted within its role. The amended bill passed 57-34, and the final bill passed 69-22 with the emergency clause carrying. The House also passed Senate Bill 2001, the legislative branch budget, which funds the 2027 session, legislative staff, chamber upgrades, IT improvements, and salary adjustments for legislative leaders; the bill passed 62-29, but the emergency clause failed. Senate Bill 2019, the Career and Technical Education budget, passed 82-10 with emergency clause. Senate Bill 2021, the Information Technology Department budget, passed 75-17 after discussion of data center migration, service automation, mainframe transition, ERP study, and DPI’s move from PowerSchool to Infinite Campus. Other measures passed included Senate Bill 2228 for rural grocery store sustainability grants, Senate Bill 2390 creating a rural catalyst community grant program, Senate Bill 2188 adjusting the Clean Sustainable Energy Authority, and Senate Bill 2265 authorizing a veterans national cemetery grant and line of credit with added reporting safeguards. Several House bills returned from the Senate were concurred in and then passed, including House Bill 1361 on mandatory minimum sentences for human trafficking offenders, House Bill 1017 for the Game and Fish Department, House Bill 1588 on firearms and dangerous weapons provisions, House Bill 1429 on harassment and stalking involving robots, House Bill 1591 on county fair resiliency grants, House Bill 1537 on service agreement protection for water projects, House Bill 1203 on edible medical marijuana products, and House Bill 1027 transferring administration of the State Fire and Tornado Fund from the Insurance Commissioner to OMB. The House also rejected a motion to reconsider Senate Bill 2307, which dealt with library materials and obscenity-related restrictions, by a vote of 48-51. In addition, the chamber appointed conference committees on several House and Senate measures where concurrence had failed, and laid over Senate Bill 2340 for two legislative days.

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Summary: The conference committee reconvened on House Bill 1218 and reviewed a revised LC draft combining Senate amendments with portions of House language. The discussion focused on a provision allowing the commission to forgo an economic analysis for assessment drain projects expected to cost less than $1 million, with members debating whether that threshold should remain at $1 million or be lower. Supporters said the $1 million figure is a placeholder tied to existing code and that a study would help determine the proper threshold; opponents argued the economic analysis should not be eliminated and raised concerns about cost estimates being manipulated. Department of Water Resources Director Rees Haas testified that roughly half of the projects fall under the $1 million mark, and additional project counts since 2019 were cited to show how many projects fell under $3 million, $2 million, and $1 million. Members also discussed the fact that the Water Commission had previously interpreted the threshold differently, which helped prompt the bill. One senator said the study portion was the strongest part of the bill, while another supported the sections that would align the language and preserve the study. Before the vote, the chair proposed further amendments to Section 3 to shift the study from the State Water Commission to Legislative Management and adjust related reporting language so the study would go through the legislature’s interim water committee process. The committee then voted on the combined amendment package, which passed 4-1, with one nay. The amended version was attached, and the committee adjourned with plans to reschedule another meeting and circulate the revised LC form.

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Summary: The Finance and Tax Committee met to consider Senate Bill 2397 and a proposed amendment creating a development incentive well program for North Dakota oil and gas production. Representative Dockter explained the amendment as a way to encourage exploratory and innovative drilling in light of the state’s financial outlook and the growing share of stripper wells. Department of Mineral Resources Director Nathan Anderson and DMR geologist Timothy Nashim presented background on the Bakken and Three Forks formations, with Nashim describing research showing that Middle Three Forks second-bench development can add reserves in some areas but not others, and that roughly 600 additional wells in the strongest area could yield about 250 million barrels of oil. Continental Resources representatives William Houser and John Argo supported the amendment. They said the bill would give a temporary oil extraction tax exemption for certified development incentive wells, limited to 36 months or 300,000 barrels, and would also update tax treatment for gas used in enhanced oil recovery and on-site electric generation. They argued the measure would encourage new technology and testing in existing spacing units, complementing House Bill 1483, which they said focused on geographic expansion into non-Bakken and non-Three Forks areas. Argo said Continental still invests heavily in North Dakota but is shifting rigs elsewhere because of economics, and he urged incentives to spur exploration and preserve the basin’s long-term future. North Dakota Petroleum Council executive director Ron Ness also supported the concept, calling it a targeted, low-risk way to encourage innovation and future barrels. Committee members asked about royalty treatment, the difference from House Bill 1483, pressure maintenance, and how the program would be administered. DMR said the amendment should clarify that the operator bears the burden of proving a well qualifies and that only one incentive well per stratigraphic interval should be certified. No vote was taken; the committee paused to work on revised language and indicated the bill would likely need further adjustment, possibly in conference committee.