North Dakota Legislators were called back to the capitol for a special session this week to address the 2023-2025 appropriations bill for the state Office of Management and Budget. The bill also included several items both appropriations and policy related. Governor Doug Burgum called the special session as a result of the North Dakota Supreme Court issuing a ruling finding the OMB budget bill unconstitutional, ruling it violated the state Constitution’s single-subject rule.

Legislative Council developed 14 bills – seven appropriations and seven policy bills for introduction. Two committees, a joint appropriations and joint policy committee made up of both House and Senate members, heard the bills Monday and Tuesday and provided recommendations.

In addition, the House, through a rare floor action, approved the introduction of a bill to expand income tax relief. House members passed the bill, however, the Senate defeated the proposal.

The other issue that garnered the most discussion during the special session was the make up of the North Dakota Public Employees Retirement (NDPERS) board. That legislation is described below along with a summary of other bills of interest. The bills obviously included much more but highlighted below are items that were changed from the bill as it was passed in April and have county impact. More detailed information on the bills can be found here: https://ndlegis.gov/assembly/68-2023/special

NDACo – 2023 Special Session Summary

1547 – PERS Board Make Up

Change: Increases PERS Board membership from 9 to 11 members.

Board will include 4 Legislators (2 House & 2 Senate appointed by Majority Leaders), 4 “citizens” appointed by Governor (non-elected), 3 elected by employees. (increased from 2 to 4 legislators on board)

Appointed positions are “at will” and can be replaced at any time by majority leader / Governor.

Board Transition: All current appointed members are terminated; new board to take over 14 days after bill goes into law.

1548 – PERS Transition Effective Date

Change: Effective date amended so that PERS Board can approve transition from Defined Benefit to Defined Contribution when PERS is ready versus waiting until end of year.

Ensure “best in class” options for existing and legacy employees and include annuity options.

This would guarantee those in the DB plan have the same level of investment options as those in new DC plan.

2393 – OMB Appropriation

Change: Increased the amount Emergency Commission has authority to spend from $400,000 to $750,000 to be available for variety of needs that may arise.

2394 – Snow Grant Extension

Change: Provides an extension and additional funding for snow removal grants.

$106,000 is appropriated to provide additional 2021-23 snow removal grants to local entities that did not receive a snow removal grant during the 21-23 biennium and submitted its application and required documentation to DES prior to 10/20/23.

This will address some local entities who missed deadline but qualified for the grant.

1543 – Facility-Related Grants Appropriation

Includes $8,250,000 for behavioral health facility grant in western North Dakota (badlands human service center service region).

Matching funds required and grant-receiving entity must operate facility for a period of at least ten years.

New language added to allow for $6.4 million to be used to expand community services by transitioning to a Certified Community Behavioral Health Clinic if DHHS is unable to secure a grant recipient.

2396 – Distribution of Controlled Substance

A Felony for anyone who delivers controlled substance or supplies to be delivered or consumed and leads to death. Bill is aimed at addressing fentanyl overdose deaths.   

1549 – Income Tax Relief

House approved introduction of bill.

$45.8 million to increase the bottom (zero) bracket. The expansion would allow for 50,000 additional taxpayers to pay 0%. Individuals with incomes $60,000 (single) & $100,000 (married) would fall in zero bracket.

Passed House/ Failed Senate