Chapter 54-63.1 Clean Sustainable Energy Authority

CHAPTER 54-01 Sovereignty and Jurisdiction of State

54-01-01. Original and ultimate title to all property in state.

The original and ultimate right to all property, real or personal, within the limits of this state is in the state.

Source:

R.C. 1895, § 6; R.C. 1899, § 6; R.C. 1905, § 6; C.L. 1913, § 8; R.C. 1943, § 54-0101.

Cross-References.

Sovereignty of state in space over the lands and waters, see N.D.C.C. § 2-03-02.

54-01-02. When property escheats.

All property, real and personal, within the limits of this state, which does not belong to any person or to the United States, belongs to the state. Whenever the title to any property fails for want of heirs or next of kin, it reverts to the state.

Source:

R.C. 1895, § 7; R.C. 1899, § 7; R.C. 1905, § 7; C.L. 1913, § 9; R.C. 1943, § 54-0102.

Cross-References.

Control of lands falling to state by escheat, see N.D.C.C. § 15-01-02.

Disposition of proceeds from property falling to state by escheat, see N.D. Const., Art. IX, § 1.

Estates of residents of veterans’ home, see N.D.C.C. §§ 37-15-16 to 37-15-18.

Intestate estate passing to state in absence of taker, see N.D.C.C. § 30.1-04-05.

State ownership of property which has no other owner, see N.D.C.C. § 47-01-10.

Uniform Unclaimed Property Act, see N.D.C.C. § 47-30.1-01 et seq.

Notes to Decisions

Liens and Encumbrances.

If property escheats to the state, the latter takes only the title which the decedent had, and no other, subject to all charges, liens and encumbrances. In re Gonsky's Estate, 79 N.D. 123, 55 N.W.2d 60, 1952 N.D. LEXIS 104 (N.D. 1952).

Life Insurance Proceeds.

If no heirs can be found to whom the proceeds of a life insurance policy can pass under former N.D.C.C. § 26-10-18 (see now N.D.C.C. § 26.1-33-40), the proceeds escheat to the state. Lapland v. Stearns, 79 N.D. 62, 54 N.W.2d 748, 1952 N.D. LEXIS 99 (N.D. 1952).

Manner of Escheat.

If the property escheats to the state through failure of title on account of the nonexistence of a person capable of succeeding to the estate of a decedent, the state does not take the property by succession or as the last heir of the decedent; therefore, the county court has no power in probate proceedings to decree an escheat. Delaney v. State, 42 N.D. 630, 174 N.W. 290, 1919 N.D. LEXIS 187 (N.D. 1919).

Collateral References.

Judicial proceedings, necessity of, to vest title to real property in state by escheat, 8 A.L.R.2d 787.

Deposit required by public utility, 43 A.L.R.2d 1262, 1276.

Inheritance from illegitimate, 48 A.L.R.2d 759, 778.

Another state, escheat of personal property of intestate domiciled or resident in, 50 A.L.R.2d 1375.

Killing of beneficiary as affecting life insurance or its proceeds, 27 A.L.R.3d 794.

54-01-02.1. Unclaimed funds defined. [Repealed]

Repealed by S.L. 1975, ch. 425, § 29.

54-01-02.2. Notice of unclaimed funds. [Repealed]

Repealed by S.L. 1975, ch. 425, § 29.

54-01-02.3. Disposal of unclaimed funds. [Repealed]

Repealed by S.L. 1975, ch. 425, § 29.

54-01-03. State may acquire property by taxation.

The state may acquire property by taxation in the modes authorized by law.

Source:

R.C. 1895, § 8; R.C. 1899, § 8; R.C. 1905, § 8; C.L. 1913, § 10; R.C. 1943, § 54-0103.

Cross-References.

Taxation, see title 57.

54-01-04. State may acquire property by right of eminent domain.

The state may acquire or authorize others to acquire title to property, real or personal, for public use in the cases and in the modes provided by law.

Source:

R.C. 1895, § 9; R.C. 1899, § 9; R.C. 1905, § 9; C.L. 1913, § 11; R.C. 1943, § 54-0104.

Cross-References.

Eminent domain, see N.D.C.C. ch. 32-15.

Collateral References.

Right to condemn property in excess of needs for a particular public purpose, 6 A.L.R.3d 297.

Substitute condemnation: Power to condemn property or interest therein to replace other property taken for public use, 20 A.L.R.3d 862.

Eminent domain: Right to enter land for preliminary survey or examination, 29 A.L.R.3d 1104.

Power of eminent domain as between state and subdivision or agency thereof, or as between different subdivisions or agencies themselves, 35 A.L.R.3d 1293.

Eminent domain: Validity of “freezing” ordinances or statutes preventing prospective condemnee from improving, or otherwise changing, the condition of his property, 36 A.L.R.3d 751.

Propriety of court’s consideration of ecological effects of proposed project in determining right of condemnation, 47 A.L.R.3d 1267.

Eminent domain: Validity of appropriation of property for anticipated future use, 80 A.L.R.3d 1085.

54-01-05. State may acquire property by eminent domain for state institution.

The state, by the exercise of the right of eminent domain, may acquire, for the use of any state institution or state industry, any property necessary:

  1. To the maintenance or expansion of such institution;
  2. To the acquirement of any of the essentials of the existence of such institution or industry;
  3. To the operation of such institution or industry;
  4. To the health, safety, or support of any inmates of such institution; or
  5. To the protection or care of the property of such institution or industry.

The proceedings for the acquirement of any such property must be prosecuted by the attorney general in the name of the state as plaintiff and must be governed by the provisions of chapter 32-15 applicable to condemnation proceedings.

Source:

S.L. 1925, ch. 139, §§ 1, 2; 1925 Supp., §§ 11a1, 11a2; R.C. 1943, § 54-0105.

54-01-05.1. State-owned land — How transferred.

Real property held in the name of the state of North Dakota for the use and benefit of any department or agency thereof may be transferred and conveyed by quitclaim deed executed in the name of the state of North Dakota by the governor and attested by the secretary of state.

Source:

S.L. 1951, ch. 302, § 1; R.C. 1943, 1957 Supp., § 54-01051.

54-01-05.2. Sale of state-owned land — Notice.

Except as provided by section 54-01-05.5, whenever any department or agency of the state other than the board of university and school lands, the housing finance agency, and the Bank of North Dakota is authorized to sell such real property, the property must be sold for cash by the county auditor or other person designated by the department or agency concerned at public auction at the front door of the courthouse in the county in which the property lies. A notice of sale must have been published in the official newspaper of the county in which the property lies for three successive weeks, with the last publication not less than ten days before the day of sale. The notice must be given in the name of the administrative head of the department or agency concerned and must state the place, day, and hour of the sale, the description of the real property to be sold, the appraised value, and that the state reserves the right to reject any and all bids. No land may be sold at auction for less than the appraised value. In addition to the purchase price at auction, the buyer must pay the cost of preparing the land for sale. For a land sale or exchange when the value of the land is not more than one hundred thousand dollars, one appraisal must be obtained, and when the value of the land is in excess of one hundred thousand dollars, two appraisals must be obtained. If more than one appraisal is obtained, the appraised value of the land is the average of the two appraisals. If no bid is received on the land at public auction, the land may be sold for not less than ninety percent of the appraised value.

Source:

S.L. 1951, ch. 302, § 2; R.C. 1943, 1957 Supp., § 54-01052; S.L. 1981, ch. 516, § 3; 1983, ch. 82, § 123; 1985, ch. 557, § 1; 1991, ch. 561, § 2.

Cross-References.

Archaeological and paleontological materials reserved, see N.D.C.C. § 55-03-06.

54-01-05.3. Attorney general to review bills providing for sale of land — Commissioner of university and school lands to render opinion on land use. [Repealed]

Repealed by S.L. 1981, ch. 516, § 4.

54-01-05.4. Impact analysis — Governor to require. [Repealed]

Repealed by S.L. 1981, ch. 515, § 1.

54-01-05.5. Bills authorizing sale or exchange of state-owned land — Written report — Assessment.

  1. The supervising agency, board, commission, department, or institution owning or controlling land proposed by a bill introduced in the legislative assembly to be sold or exchanged shall prepare a written report that includes:
    1. An analysis of the type of land involved.
    2. A determination whether the land is needed for present or future uses of the agency, board, commission, department, or institution.
    3. A description of the party or parties, if known, who are interested in the land and the purposes for which the land is desired.
    4. A map showing the boundaries of the land proposed to be sold or exchanged and the purposes for which the adjacent lands are used.
  2. The commissioner of university and school lands shall review each legislative bill proposing the sale or exchange of state-owned land and the written report from the supervising agency, board, commission, department, or institution. The commissioner may provide a written assessment to the standing committee of the legislative assembly to which the bill is initially referred concerning the proposed land sale or exchange and, in doing so, shall consider the “highest and best use” of the land as defined by section 15-02-05.1.
  3. The commissioner may adopt rules to provide for administration of this section.

Source:

S.L. 1981, ch. 516, § 1; 1983, ch. 82, § 124; 1991, ch. 561, § 3; 2017, ch. 122, § 3, eff August 1, 2017.

54-01-06. Jurisdiction over property in state — Limitations.

The sovereignty and jurisdiction of this state extend to all places within its boundaries as established by the constitution, but the extent of such jurisdiction over places that have been or may be ceded to, or purchased or condemned by, the United States, is qualified by the terms of such cession or the laws under which such purchase or condemnation has been or may be made.

Source:

R.C. 1895, § 2; R.C. 1899, § 2; R.C. 1905, § 2; C.L. 1913, § 2; R.C. 1943, § 54-0106.

Cross-References.

Jurisdiction of military reservations ceded to United States, see N.D. Const., Art. XIII, § 2.

54-01-07. Legislative consent to purchase of lands by United States — Jurisdiction. [Repealed]

Repealed by S.L. 1981, ch. 518, § 2.

54-01-08. Jurisdiction ceded to lands acquired by United States for military post.

Jurisdiction is ceded to the United States over any tract of land that may be acquired by the United States on which to establish a military post. Legal process, civil and criminal, of this state, extends over all land acquired by the United States to establish a military post in any case in which exclusive jurisdiction is not vested in the United States, and in any case where the crime is not committed within the limits of such reservation.

Source:

R.C. 1895, § 4; R.C. 1899, § 4; R.C. 1905, § 4; C.L. 1913, § 4; R.C. 1943, § 54-0108.

Cross-References.

Jurisdiction of military reservations ceded to United States, see N.D. Const., Art. XIII, § 2.

Notes to Decisions

Jurisdiction Denied.

Federal court was without jurisdiction to prosecute an assault which occurred at the United Tribes Employment Training Center on the site of Fort Lincoln because the place where the assault occurred, although conveyed by the government under condition subsequent with possibility of reverter, was no longer federally owned land. United States v. Goings, 372 F. Supp. 811, 1974 U.S. Dist. LEXIS 12767 (D.N.D.), aff'd, 504 F.2d 809, 1974 U.S. App. LEXIS 6491 (8th Cir. N.D. 1974).

State Jurisdiction.

Even though the United States purchased lands within the territorial limits of a state for public purposes, this did not, of itself, oust the state’s jurisdiction or sovereignty over such lands. United States v. Cornell, 25 F. Cas. 646, 1819 U.S. App. LEXIS 212 (C.C.D.R.I. Nov. 1, 1819).

54-01-09. Ceding to the United States exclusive jurisdiction over certain lands which are part of the Fort Lincoln military reservation.

Exclusive jurisdiction is ceded to the United States over the following tracts of land which were reserved from the public domain and set apart for military purposes as additions to the Fort Lincoln military reservation by executive orders of the President of the United States dated May 17, 1899, June 8, 1901, and January 17, 1907:

Lots two, three, and four, section ten, township one hundred thirty-seven north, range eighty west, and lots eleven and thirteen, section thirty-four, township one hundred thirty-eight north, range eighty west of the fifth principal meridian, situated in Burleigh County, and all accretions thereto.

Jurisdiction over the above-described lands is ceded upon the express condition that all civil process issued from the courts of this state, and such criminal process as may issue under the authority of this state against any person charged with crime committed within the jurisdiction of this state, may be served and executed thereon in the same manner and by the same officers as if this section had not been enacted.

Source:

S.L. 1939, ch. 217, § 1; R.C. 1943, § 54-0109.

Notes to Decisions

Land Deeded to Corporation.

The United States no longer had jurisdiction over land, and jurisdiction reverted to North Dakota so that state courts had jurisdiction, where the land originally was part of military reservation the United States purchased for military purposes and which the United States deeded to a private, nonprofit North Dakota corporation. State v. His Chase, 531 N.W.2d 271, 1995 N.D. LEXIS 84 (N.D. 1995).

54-01-09.1. State offenses — Concurrent jurisdiction ceded to the United States. (See note for effective date)

Concurrent jurisdiction is hereby ceded to the United States over offenses, as defined in section 12.1-01-04, when committed within boundaries of the tracts of land designated as:

  1. Theodore Roosevelt national park.
  2. Fort Union trading post national historic site.
  3. Knife River Indian villages national historic site.

Note.

Section 2 of chapter 647, S.L. 1991, amends this section, effective on the date the governor certifies to the secretary of state and to the state historical board that the Congress of the United States has enacted legislation accepting the transfer of the Fort Totten state historic site to the United States for inclusion in the national park system as a national historic site, and provides that the secretary of state shall forward a copy of the governor’s certification to the legislative council, with a notation indicating the effective date of the act. As amended, the section will read as set out in the second version above.

54-01-09.1. State offenses — Concurrent jurisdiction ceded to the United States. [Contingent effective date – See note]

Concurrent jurisdiction is ceded to the United States over offenses, as defined in section 12.1-01-04, when committed within the boundaries of the tracts of land designated as:

  1. Theodore Roosevelt national park.
  2. Fort Union trading post national historic site.
  3. Knife River Indian villages national historic site.
  4. Fort Totten national historic site.

Source:

S.L. 1981, ch. 517, § 1; 1991, ch. 647, § 2.

54-01-09.2. Concurrent jurisdiction — Vested upon acceptance.

The concurrent jurisdiction ceded by section 54-01-09.1 is vested upon acceptance by the United States by and through its appropriate officials and continues so long as the lands within the designated areas are dedicated to park or historic site purposes.

Source:

S.L. 1981, ch. 517, § 2.

54-01-09.3. Retrocession of jurisdiction — Acceptance — Filing.

  1. The consent of North Dakota is hereby given to the retrocession by the United States of the jurisdiction granted by section 54-01-09.1, either partially or wholly. A partial retrocession may be with respect to particular territory or particular offenses, or both. The governor is authorized to accept any such retrocession of jurisdiction on behalf of North Dakota.
  2. When the governor receives written notification from the authorized official or agent of the United States that the United States desires or is willing to retrocede jurisdiction to North Dakota as provided in subsection 1, the governor may accept, and after filing the original acceptance with the secretary of state, the retrocession of jurisdiction will become effective.

Source:

S.L. 1981, ch. 517, § 3.

54-01-10. State may accept military and Indian reservations.

The state of North Dakota may accept from the United States any military reservation or Indian school reservation, and all property connected with either, that the United States may cede or transfer to the state, subject to any conditions and requirements which Congress may impose.

Source:

S.L. 1913, ch. 210, § 1; C.L. 1913, § 5; R.C. 1943, § 54-0110.

54-01-10.1. Acceptance of Fraine Barracks.

The state of North Dakota hereby accepts from the United States of America the lands and improvements comprising the Bismarck Indian school plant, as authorized by Public Law 78-502, which must hereafter be known as “Fraine Barracks” in honor of the late Brigadier General John A. Fraine.

Source:

S.L. 1945, ch. 232, § 1; R.C. 1943, 1957 Supp., § 54-01101.

54-01-11. Who has charge of property ceded by United States to state.

When any military reservation or Indian school reservation is ceded to the state of North Dakota by the United States, the director of the office of management and budget shall take charge of and care for the property until otherwise provided by law. The governor shall receipt to the United States for any personal property transferred to the state.

Source:

S.L. 1913, ch. 210, § 2; C.L. 1913, § 6; R.C. 1943, § 54-0111; S.L. 1991, ch. 592, § 28.

54-01-12. Exchange of lands on Indian reservation between state and federal government.

The state of North Dakota, through its several departments and agencies, may exchange tracts and sections of land on Indian reservations within the state, belonging to the state of North Dakota, and not a part of the original grant of land to the state provided in the Enabling Act, for lands of like character and value belonging to the United States government on Indian reservations within this state. Such exchange is subject to the approval of the appropriate department of the federal government and the lands must be appraised in the manner provided by law. The state also may execute and deliver proper conveyances of such land in the manner and form provided by law, without the necessity of complying with any statute requiring notice of exchange or competitive bidding, and it may accept in return therefor a proper instrument of conveyance to the state of the lands for which such state lands are exchanged.

Source:

S.L. 1939, ch. 216, § 1; R.C. 1943, § 54-0112.

54-01-13. Exchange of lands on Fort Berthold reservation.

The state of North Dakota, through its several departments and agencies, is hereby authorized and empowered to exchange tracts, sections, and parcels of land located within the diminished borders of Fort Berthold reservation belonging to the state of North Dakota and not a part of the original grant of lands to the state provided for in the Enabling Act, for lands of like character and value belonging to the United States government located outside of the diminished borders of said Fort Berthold reservation. Such exchange is subject to the approval of the proper department of the federal government, and such lands must be appraised as provided by law in the case of sale of real property owned by the state. The state also may execute and deliver proper conveyances of such land in the manner and form provided by law, without the necessity of complying with any statute requiring the giving of notice of exchange or competitive bidding, and may accept in return therefor a proper instrument of conveyance to the state of North Dakota of the land for which such lands are exchanged.

Source:

S.L. 1943, ch. 194, § 1; R.C. 1943, § 54-0113.

54-01-13.1. Exchange of lands within Theodore Roosevelt National Park.

The state of North Dakota is hereby authorized to transfer and convey to the United States of America any lands situated within the Theodore Roosevelt National Park in the county of Billings, state of North Dakota, including state school lands and lands held by the state historical society or for the use and benefit of the state game and fish department, such transfer and conveyance to be made in exchange for federal lands of not less than equal value situated outside of the Theodore Roosevelt National Park.

Source:

S.L. 1949, ch. 310, § 1; R.C. 1943, 1957 Supp., § 54-01131; 2001, ch. 503, § 10.

54-01-13.2. Appraisal.

The lands to be conveyed to the United States of America and also the lands to be taken in exchange therefor, under the provisions of section 54-01-13.1, must be appraised by the county superintendent of schools, the county auditor, and the chairman of the board of county commissioners in the county where the land is situated, at its fair market value, but no state school lands may be appraised and valued at less than ten dollars per acre [.40 hectare]. The county director of tax equalization shall serve as an assistant in making the appraisals.

Source:

S.L. 1949, ch. 310, § 2; R.C. 1943, 1957 Supp., § 54-01132; S.L. 1983, ch. 186, § 2.

54-01-13.3. Conveyance.

Conveyances made under section 54-01-13.1 to the United States of America of state school lands must be executed in the same form and manner as now provided by law for the sale and conveyance of state school lands and conveyance by the state of other lands under the provisions of section 54-01-13.1 must be executed on behalf of the state of North Dakota by the governor and attested by the secretary of state.

Source:

S.L. 1949, ch. 310, § 3; R.C. 1943, 1957 Supp., § 54-01133.

Cross-References.

Sale of school lands, see N.D.C.C. chs. 15-06, 15-07, N.D.C.C. § 15-08-05.

State lands may be conveyed to United States free of mineral reservations, see N.D.C.C. § 38-09-01.1.

54-01-14. Lease of land to northern great plains dairy station — When to terminate.

The lease of all of section nine in township one hundred thirty-eight north, range eighty-one west of the fifth principal meridian in Morton County, North Dakota to the United States northern great plains dairy station for a term of ninety-nine years as provided by chapter 28 of the 1929 Session Laws, terminates if the land ceases to be used for experimental dairy uses and purposes and if the lessee ceases to maintain its experimental dairy station as now located in Morton County, North Dakota.

Source:

S.L. 1929, ch. 28, §§ 1, 2; R.C. 1943, § 54-0114.

54-01-15. Acquisition of national forest lands by United States — Jurisdiction of state over such lands.

The United States may, with the specific consent of the legislative assembly as to each tract acquired, acquire, by purchase, gift, or condemnation with adequate compensation, such lands in North Dakota as in the opinion of the federal government may be needed for the establishment of national forests. The state shall retain a concurrent jurisdiction with the United States in and over lands so acquired to the extent that civil process in all cases, and such criminal process as may issue under the authority of the state against any person charged with the commission of any crime without or within said jurisdiction, may be executed thereon in like manner as if this section had not been enacted. The legislative consent required by this section must be in the form of a duly enacted bill.

Source:

S.L. 1933, ch. 187, § 1; R.C. 1943, § 54-0115; S.L. 1981, ch. 518, § 1.

54-01-16. Power of Congress to make rules governing land acquired for national forests.

Power is conferred upon the Congress to pass such laws and to make or provide for the making of such rules and regulations, of both civil and criminal nature, and to provide punishment therefor, as in its judgment may be necessary for the administration, control, and protection of such lands as from time to time may be acquired by the United States under the provisions of section 54-01-15.

Source:

S.L. 1933, ch. 187, § 2; R.C. 1943, § 54-0116.

54-01-17. Right of way over state lands. [Repealed]

Repealed by S.L. 1995, ch. 435, § 2.

54-01-17.1. Granting easements to state-owned land — Procedure.

A state agency may, when it deems such action to be in the best interest of the state, grant easements upon or across any real property which it administers and which is owned by the state for the use or benefit of a state institution under its jurisdiction.

Any property rights transferred under the authority of this section must be transferred and conveyed by quitclaim instrument or easement executed in the name of the state of North Dakota by the governor and attested by the secretary of state. Such quitclaim instrument or easement must contain specific legal descriptions of the property right transferred and the location thereof.

Upon the granting of an easement under the authority of this section any proceeds must be used in the following manner:

  1. If the property is the subject of a devise, legacy, bequest, or gift to the institution the proceeds of the easement are subject to the provisions of sections 1-08-02 and 1-08-04.
  2. If the property is not subject to sections 1-08-02 and 1-08-04, the proceeds of the easement must be deposited in the special operating fund of the institution or, if no such operating fund then exists, such proceeds must be deposited in the general fund in the state treasury.

Source:

S.L. 1973, ch. 406, § 1.

54-01-17.2. North Dakota-Saskatchewan-Manitoba boundary advisory committee. [Repealed]

Repealed by S.L. 1995, ch. 489, § 1.

54-01-18. All persons within the state subject to its jurisdiction and entitled to protection.

Every person while within this state is subject to its jurisdiction and entitled to its protection.

Source:

R.C. 1895, § 13; R.C. 1899, § 13; R.C. 1905, § 13; C.L. 1913, § 15; R.C. 1943, § 54-0118.

54-01-19. Rights of state over persons enumerated.

The state has the following rights over persons within its limits, to be exercised in the cases and in the manner provided by law:

  1. To punish for crime.
  2. To imprison or confine for the protection of the public peace or health or of individual life or safety.
  3. To imprison or confine for the purpose of enforcing civil remedies.
  4. To establish custody and restraint for the persons of unsound mind dangerous to themselves or society.
  5. To establish custody and restraint of paupers for the purpose of their maintenance.
  6. To establish custody and restraint of minors unprovided for by natural guardians for the purpose of their education, reformation, and maintenance.
  7. To require services of persons, with or without compensation, as follows:
    1. In military duty;
    2. In jury duty;
    3. As witnesses;
    4. As township officers;
    5. In highway labor;
    6. In maintaining the public peace;
    7. In enforcing the service of process;
    8. In protecting life and property from fire, pestilence, wreck, or flood; and
    9. In such other cases as are provided by law.

Source:

R.C. 1895, § 5; R.C. 1899, § 5; R.C. 1905, § 5; C.L. 1913, § 7; R.C. 1943, § 54-0119; S.L. 1967, ch. 214, § 26.

54-01-20. The people defined.

The people, as a political body, consist of:

  1. Citizens who are electors; and
  2. Citizens not electors.

Source:

R.C. 1895, § 10; R.C. 1899, § 10; R.C. 1905, § 10; C.L. 1913, § 12; R.C. 1943, § 54-0120.

54-01-21. Citizens defined.

The citizens of the state are all persons who are citizens of the United States of America and who are bona fide residents of the state of North Dakota.

Source:

R.C. 1895, § 11; R.C. 1899, § 11; R.C. 1905, § 11; C.L. 1913, § 13; S.L. 1941, ch. 235, § 1; R.C. 1943, § 54-0121.

Cross-References.

Citizens of United States, see U.S. Const. Amend. 14.

54-01-22. Persons not citizens.

Persons in this state who are not its citizens are either:

  1. Citizens of other states; or
  2. Aliens.

Source:

R.C. 1895, § 16; R.C. 1899, § 16; R.C. 1905, § 16; C.L. 1913, § 18; R.C. 1943, § 54-0122.

54-01-23. Duty of citizens — Allegiance defined — How renounced.

Allegiance is the obligation of fidelity and obedience which every citizen owes to the state. Allegiance may be renounced by a change of residence.

Source:

R.C. 1895, §§ 14, 15; R.C. 1899, §§ 14, 15; R.C. 1905, §§ 14, 15; C.L. 1913, §§ 16, 17; R.C. 1943, § 54-0123.

54-01-24. Rights and duties of citizens not electors.

An elector has no rights or duties beyond those of a citizen not an elector, except the right and duty of holding and electing to office.

Source:

R.C. 1895, § 18; R.C. 1899, § 18; R.C. 1905, § 18; C.L. 1913, § 20; R.C. 1943, § 54-0124.

54-01-25. Rights and duties of citizens of other states.

A citizen of the United States who is not a citizen of this state has the same rights and duties as a citizen of this state who is not an elector.

Source:

R.C. 1895, § 19; R.C. 1899, § 19; R.C. 1905, § 19; C.L. 1913, § 21; R.C. 1943, § 54-0125.

54-01-26. Residence — Rules for determining.

Every person has in law a residence. In determining the place of residence, the following rules must be observed:

  1. It is the place where one remains when not called elsewhere for labor or other special or temporary purpose and to which the person returns in seasons of repose.
  2. There can be only one residence.
  3. A residence cannot be lost until another is gained.
  4. The residence of the supporting parent during the supporting parent’s life, and after the supporting parent’s death, the residence of the other parent is the residence of the unmarried minor children.
  5. An individual’s residence does not automatically change upon marriage, but changes in accordance with subsection 7. The residence of either party to a marriage is not presumptive evidence of the other party’s residence.
  6. The residence of an unmarried minor who has a parent living cannot be changed by either that minor’s own act or that of that minor’s guardian.
  7. The residence can be changed only by the union of act and intent.

Source:

R.C. 1895, § 12; R.C. 1899, § 12; R.C. 1905, § 12; C.L. 1913, § 14; R.C. 1943, § 54-0126; S.L. 1967, ch. 158, § 103; 1983, ch. 172, § 52.

Cross-References.

Divorce actions, presumption of domicile inapplicable, see N.D.C.C. § 14-05-18.

Notes to Decisions

Abandonment of Residence.

A resident of a certain county or political subdivision of the state may become a nonresident by performance of an act indicative of an intention to abandon his then residence and to establish a residence elsewhere, accompanied by a then present intention to accomplish such purpose. City of Enderlin v. Pontiac Township, 62 N.D. 105, 242 N.W. 117, 1932 N.D. LEXIS 156 (N.D. 1932).

A person who qualifies as an elector does not lose his status as a resident by voluntary absence from the county unless he actually abandons his residence therein and gains a residence elsewhere. City of Enderlin v. Pontiac Township, 62 N.D. 105, 242 N.W. 117, 1932 N.D. LEXIS 156 (N.D. 1932).

Leaving a place of residence does not constitute an abandonment thereof unless the resident establishes another, and a new residence can be established only by the union of act and intent. State ex rel. Sathre v. Moodie, 65 N.D. 340, 258 N.W. 558, 1935 N.D. LEXIS 117 (N.D. 1935).

A domicile once existing cannot be lost by mere abandonment, even when coupled with the intent to acquire a new one, but continues until a new one is in fact gained. Northwestern Mortgage & Sec. Co. v. Noel Constr. Co., 71 N.D. 256, 300 N.W. 28, 1941 N.D. LEXIS 163 (N.D. 1941).

A person having his legal residence in the state, who removes from the place of his domicile with the intention not to reside there any longer and to remove to another state, is still a resident of this state as long as he remains herein. Northwestern Mortgage & Sec. Co. v. Noel Constr. Co., 71 N.D. 256, 300 N.W. 28, 1941 N.D. LEXIS 163 (N.D. 1941).

A schoolteacher and his wife did not lose their residency by moving from Killdeer to Grand Forks for one year so that the husband could secure a graduate degree at the university; there was no showing of intent permanently to change residence and the husband and wife were entitled to absent voters’ ballots for voting at a bond election in the Killdeer Public School District. Mittelstadt v. Bender, 210 N.W.2d 89, 1973 N.D. LEXIS 111 (N.D. 1973).

Closely akin to the issue of homestead abandonment is the issue of abandonment of a legal residency. Here too the law looks to action coupled with intent, with intent being the principal focus. As codified by this section, a residence cannot be changed until another is gained and can be changed only by the union of act and intent. In re Lippert, 113 B.R. 576, 1990 Bankr. LEXIS 867 (Bankr. D.N.D. 1990).

Burden of Proving Change of Residence.

There is a presumption against a change of legal residence, and the burden of proving a change of legal residence is on the person alleging the change. B.R.T. v. Executive Director of Social Service Bd., 391 N.W.2d 594, 1986 N.D. LEXIS 359 (N.D. 1986).

The burden of proving a change of legal residence is on the person alleging the change. Keating v. Keating, 399 N.W.2d 872, 1987 N.D. LEXIS 248 (N.D. 1987).

Change of Residence.

Moving from one place of residence to another with the intent to abandon the old residence and establish a new residence is in law a change of residence which may be accomplished in one day between townships. Burke County v. Oakland, 56 N.D. 343, 217 N.W. 643, 1927 N.D. LEXIS 105 (N.D. 1927).

A nonresident may become a resident of the state upon the performance of some act indicative of an intention to establish a residence within the state, coupled with an actual present intention to establish such a residence. City of Enderlin v. Pontiac Township, 62 N.D. 105, 242 N.W. 117, 1932 N.D. LEXIS 156 (N.D. 1932).

To effect a change of domicile the fact of physical presence at a dwelling place and the intention to make it a home must concur; if they do, even for a moment, the change of domicile takes place. Schillerstrom v. Schillerstrom, 75 N.D. 667, 32 N.W.2d 106, 1948 N.D. LEXIS 93 (N.D. 1948).

Plaintiff must prove three elements to establish defendant’s change of residence: (1) abandonment of the old domicile, (2) actual removal to a new domicile, and (3) intent to change from the old to the new and to remain at the new domicile. Keating v. Keating, 399 N.W.2d 872, 1987 N.D. LEXIS 248 (N.D. 1987).

To find a change of domicile, the fact of a physical presence at a residence must concur with the intent to make that place the legal residence, “the union of act and intent.” The person’s intent must be determined from the person’s conduct and declarations. In re Estate of Burshiem, 483 N.W.2d 175, 1992 N.D. LEXIS 73 (N.D. 1992).

Distinction Between Legal Residence and Physical Residence.

A person may have two or more physical residences, as distinguished from that person’s legal residence which is the person’s domicile. Domicile is synonymous with residence “in law.” In re Estate of Burshiem, 483 N.W.2d 175, 1992 N.D. LEXIS 73 (N.D. 1992).

Domicile of Origin.

The domicile of origin is determined by the domicile, at time of child’s birth, of that person upon whom he is legally dependent. Schillerstrom v. Schillerstrom, 75 N.D. 667, 32 N.W.2d 106, 1948 N.D. LEXIS 93 (N.D. 1948).

Inmates.

The rules for determining residence set forth in this section do not support any argument that an inmate in a penitentiary is a resident of the county where he is incarcerated. Shulze v. Shulze, 322 N.W.2d 250, 1982 N.D. LEXIS 321 (N.D. 1982).

Intent of Party.

Residence is a question of fact in which the intention of the party enters as an important element. Wehrung v. Ideal Sch. Dist., 78 N.W.2d 68, 1956 N.D. LEXIS 137 (N.D. 1956).

Intent to move in the near future without any act of movement does not bring about a change in residence. Bernhardt v. Dittus, 265 N.W.2d 684, 1978 N.D. LEXIS 230 (N.D. 1978).

Wife’s intent as to residency in this state was not negated by her employment in Nebraska, her Nebraska driver’s license and her Nebraska vehicle registration. Habberstad v. Habberstad, 444 N.W.2d 703, 1989 N.D. LEXIS 170 (N.D. 1989).

Length of Residence Irrelevant.

A person is not required to reside for any specified length of time in order to acquire residence in the state within purview of general laws. Burke County v. Brusven, 62 N.D. 1, 241 N.W. 82, 1932 N.D. LEXIS 144 (N.D. 1932).

Occupancy.

The concept of residency relative either to the notion of homestead or legal residency does not contemplate actual and continuous occupancy of the property. Indeed, it is recognized that neither the fact of removal from the property nor the length of time away will defeat an established homestead or place of legal residency unless such removal is coupled with the requisite intent. In re Lippert, 113 B.R. 576, 1990 Bankr. LEXIS 867 (Bankr. D.N.D. 1990).

One Legal Residence.

Every person has only one legal residence or domicile, as distinguished from the possibility of several actual physical residences. B.R.T. v. Executive Director of Social Service Bd., 391 N.W.2d 594, 1986 N.D. LEXIS 359 (N.D. 1986).

Question of Fact.

Legal residence, determined according to the rules in this section, is a question of fact, which will not be disturbed on appeal unless it is clearly erroneous. B.R.T. v. Executive Director of Social Service Bd., 391 N.W.2d 594, 1986 N.D. LEXIS 359 (N.D. 1986).

Legal residence is a question of fact to be determined by the fact finder and to be reviewed according to the clearly erroneous standard of N.D.R.Civ.P. 52(a). Habberstad v. Habberstad, 444 N.W.2d 703, 1989 N.D. LEXIS 170 (N.D. 1989).

Domicile is a question of fact. In re Estate of Burshiem, 483 N.W.2d 175, 1992 N.D. LEXIS 73 (N.D. 1992).

Synonymous with Domicile.

The term residence within the purview of this statute is synonymous with domicile. City of Enderlin v. Pontiac Township, 62 N.D. 105, 242 N.W. 117, 1932 N.D. LEXIS 156 (N.D. 1932); Anderson v. Breithbarth, 62 N.D. 709, 245 N.W. 483, 1932 N.D. LEXIS 236 (N.D. 1932); B.R.T. v. Executive Director of Social Service Bd., 391 N.W.2d 594, 1986 N.D. LEXIS 359 (N.D. 1986).

Since domicile and legal residence are synonymous, the statutory rules for determining the place of residence are the rules for determining domicile. In re Estate of Burshiem, 483 N.W.2d 175, 1992 N.D. LEXIS 73 (N.D. 1992).

DECISIONS UNDER PRIOR LAW

Domicile of Married Persons.

Analysis

—Rebuttable Presumption.

The presumption of continuance of the marriage relation and identity of domicile of husband and wife cannot prevail when the facts are shown to be to the contrary. Krumenacker v. Andis, 38 N.D. 500, 165 N.W. 524, 1917 N.D. LEXIS 45 (N.D. 1917); Fisher v. Fisher, 53 N.D. 631, 207 N.W. 434, 1926 N.D. LEXIS 9 (N.D. 1926).

—Separation and Divorce.

In actions for divorce the presumption of law that the domicile of the husband is the domicile of the wife does not apply; after separation, each party may have a separate domicile, depending upon proof of actual residence. Schillerstrom v. Schillerstrom, 75 N.D. 667, 32 N.W.2d 106, 1948 N.D. LEXIS 93 (N.D. 1948).

Inapplicable Statute.

N.D.C.C. § 14-10-01, which, prior to July 1, 1971, provided that minors were males under twenty-one and females under eighteen, did not apply to former N.D.C.C. § 39-17-03 of the unsatisfied judgment fund law as an aid in determining residency; males and females eighteen and older were to be treated uniformly in determining their residency for recovery from the unsatisfied judgment fund. Tang v. Ping, 209 N.W.2d 624, 1973 N.D. LEXIS 153 (N.D. 1973).

Collateral References.

Separate domicile of mother as affecting domicile or residence of infant, 13 A.L.R.2d 306.

Acquisition of domicile by sending wife or family to new home, 31 A.L.R.2d 775.

Domicile of infant on death of both parents; doctrine of natural guardianship, 32 A.L.R.2d 863.

Mental incompetent, change of state or national domicile of, 96 A.L.R.2d 1236.

What absence from United States constitutes interruption of permanent residence so as to subject alien to exclusion or deportation on re-entry, 22 A.L.R.3d 749.

Construction of phrase “usual place of abode,” or similar terms referring to abode, residence, or domicil, as used in statutes relating to service of process, 32 A.L.R.3d 112.

Requirements as to residence or domicil of adoptee or adoptive parent for purposes of adoption, 33 A.L.R.3d 176.

Students: residence of students for voting purposes, 44 A.L.R.3d 797.

What constitutes residence or domicil within state by citizen of another country for purpose of jurisdiction in divorce, 51 A.L.R.3d 223.

Validity and application of provisions governing determination of residency for purpose of fixing fee differential for out-of-state students in public college, 56 A.L.R.3d 641.

Domicile for state tax purposes of wife living apart from husband, 82 A.L.R.3d 1274.

Who is resident within meaning of statute prohibiting appointment of nonresident executor or administrator, 9 A.L.R.4th 1223.

54-01-27. Lease of state-owned property.

Notwithstanding any other provision of law, the state, or any agency or institution of the state, may enter agreements to lease all or part of, or an undivided or other interest in, any real or personal property belonging to the state, or any agency or institution of the state, to and, or, from any agency or institution of the state or any person for such compensation and upon such terms and conditions as the parties under such agreement may stipulate. Such agreements must be authorized by the board, if any, or commissioner or other executive officer of the commission, agency, or institution holding, controlling, possessing, or owning the property or on whose behalf the property is held. For purposes of this section, the agreements include any lease, sublease, purchase agreement, lease-purchase agreement, installment purchase agreement, leaseback agreement, or other contract, agreement, instrument, or arrangement pursuant to which any rights, interests, or other property are transferred to, by, or from any party to, by, or from one or more parties, and any related documents entered or to be entered, including any operating agreement, service agreement, indemnity agreement, participation agreement, loan agreement, or payment undertaking agreement entered as part of a long-term lease and leaseback transaction. A lease obligation under this section may not exceed a term of ninety-nine years. A lease obligation entered into under this section is payable solely from revenues to be derived by the state, or any agency or institution of the state, from the ownership, sale, lease, disposition, and operation of the property; any funds or investments permitted under state law, and any earnings thereon, to the extent pledged therefor; revenues to be derived by the state, or any agency or institution of the state, from any support and operating agreement, service agreement, or any other agreement relating to the property; funds, if any, appropriated annually by the legislative assembly or received from federal sources; and income or proceeds from any collateral pledged or provided therefor. A lease obligation under this section does not constitute an indebtedness of the state, or any agency or institution of the state, or a pledge of the full faith and credit or unlimited taxing resources of the state, or any agency or institution of the state. Notwithstanding any other law, the state, or any agency or institution of the state, may solicit and accept one or more proposals for a lease transaction, including the arrangement thereof, under this section, and accept any proposal that is determined to be in the public interest. The public finance authority, on behalf of the state, or any agency or institution of the state, may do and perform any acts and things authorized by this section, including making, entering, and enforcing all contracts or agreements necessary, convenient, or desirable for the purposes of this section.

Source:

S.L. 2003, ch. 342, § 11; 2005, ch. 89, § 31; 2009, ch. 456, § 1.

54-01-28. Northern plains national heritage area — Use of state funds and property prohibited unless approved by legislative assembly.

State funds may not be expended or transferred from state agencies to match federal moneys for the northern plains national heritage area or any similar or successor designated areas without the approval of the legislative assembly. State lands, water, property, or facilities may not be included in the designated northern plains national heritage area or any similar or successor designated areas without the approval of the legislative assembly. No further lands, water, property, or facilities may be designated as heritage areas within this state without the approval of the legislative assembly.

Source:

S.L. 2011, ch. 383, § 1.

54-01-29. Prohibition on the purchase of certain real property and easements with public funds.

A governmental entity may not provide funds through grant, contract, or other agreement to a nongovernmental entity that is a nonprofit organization for the purpose of holding any interest in real property or an easement for wildlife or conservation purposes. This section does not apply to a governmental entity in a partnership with a nongovernmental entity, if the governmental entity derives a benefit from the partnership. In addition, the recipient of these funds is subject to civil action by any person for the return of any public funds used by the recipient for any of the same purposes.

Source:

S.L. 2015, ch. 365, § 1, eff August 1, 2015.

Effective Date.

This section became effective August 1, 2015.

54-01-29.1. Federal legislation encouraged to return lands and mineral rights to the state of North Dakota.

Uplands of the Oahe Reservoir in Emmons and Morton Counties in North Dakota above the elevation of 1,620 feet [493.78 meters] are defined as excess lands to the operation of the Oahe Dam. The North Dakota legislative assembly encourages Congress to pass federal legislation to return those lands and mineral rights to the state of North Dakota and the North Dakota legislative assembly encourages the governor of North Dakota to work with the North Dakota congressional delegation and Congress to secure enactment of necessary federal legislation.

History. S.L. 2015, ch. 365, § 1, eff August 1, 2015.

Effective Date.

This section became effective August 1, 2015.

CHAPTER 54-01.1 Relocation Assistance

54-01.1-01. Declaration of policy.

The purpose of this chapter is to establish a uniform policy for the fair and equitable treatment of persons displaced as a direct result of programs or projects undertaken by a state agency so that displaced persons will not suffer disproportionate injuries as a result of programs and projects designed for the benefit of the public as a whole and to minimize the hardship of displacement by the acquisition of real property by state and local land acquisition programs, by federally assisted building code enforcement programs, or by a program of voluntary rehabilitation of buildings or other improvements conducted pursuant to governmental supervision. The policy must be uniform as to:

  1. Relocation payment;
  2. Advisory assistance;
  3. Assurance of availability of standard housing; and
  4. State reimbursement for local relocation payments under state-assisted and local programs.

Source:

S.L. 1973, ch. 407, § 1; 1989, ch. 627, § 1.

Collateral References.

Validity, construction, and application of state relocation assistance laws, 49 A.L.R.4th 491.

54-01.1-02. Definitions.

As used in this chapter:

  1. “Business” means any lawful activity, excepting a farm operation, conducted primarily:
    1. For the purchase, sale, lease, and rental of personal and real property and for the manufacture, processing, or marketing of products, commodities, or any other personal property;
    2. For the sale of services to the public;
    3. By a nonprofit organization; or
    4. For the purposes of subsection 1 of section 54-01.1-03, for assisting in the purchase, sale, resale, manufacture, processing, or marketing of products, commodities, personal property, or services by the erection and maintenance of an outdoor advertising display or displays, whether or not such display or displays are located on the premises on which any of the above-mentioned activities are conducted.
  2. “Comparable replacement dwelling” means any dwelling that is:
    1. Decent, safe, and sanitary;
    2. Adequate in size to accommodate the occupants;
    3. Within the financial means of the displaced person;
    4. Functionally equivalent;
    5. In the area not subject to reasonably adverse environmental conditions; and
    6. In a location generally not less desirable than the location of the displaced person’s dwelling with respect to public utilities, facilities, services, and the displaced person’s place of employment.
  3. “Displaced person”, except as provided in subdivision c, means:
    1. Any person who moves from real property or moves the person’s personal property from real property:
      1. As a direct result of a written notice of intent to acquire or the acquisition of the real property in whole or in part for a program or project undertaken by a displacing agency; or
      2. On which the person is a residential tenant or conducts a small business, a farm operation, or a business defined in subdivision d of subsection 1, as a direct result of rehabilitation, demolition, or other displacing activity the state agency prescribes, under a program or project undertaken by a displacing agency in any case in which the displacing agency determines that the displacement is permanent.
    2. Solely for the purposes of subsections 1 and 2 of section 54-01.1-03 and section 54-01.1-06, any person who moves from real property or moves the person’s personal property from real property:
      1. As a direct result of a written notice of intent to acquire or the acquisition of other real property, in whole or in part, on which the person conducts a business or farm operation, for a program or project undertaken by a displacing agency; or
      2. As a direct result of rehabilitation, demolition, or other displacing activity the state agency prescribes, of other real property on which the person conducts a business or a farm operation, under a program or project undertaken by a displacing agency when the displacing agency determines that the displacement is permanent.
    3. The term “displaced person” does not include:
      1. A person who has been determined, according to criteria established by the state agency, to be either unlawfully occupying the displacement dwelling or to have occupied the dwelling for the purpose of obtaining assistance under this chapter; or
      2. In any case in which the displacing agency acquires property for a program or project, any person, other than a person who was an occupant of such property at the time it was acquired, who occupies the property on a rental basis for a short term or a period subject to termination when the property is needed for the program or project.
  4. “Displacing agency” means the state, state agency, or person carrying out a federal or state financially assisted program or project that causes a person to be a displaced person.
  5. “Farm operation” means any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use, and customarily producing such products or commodities in sufficient quantity to be capable of contributing materially to the operator’s support.
  6. “Federally assisted” means receiving federal financial assistance in the form of a grant, loan, or contribution, except any federal guarantee or insurance, or any interest reduction payment to an individual in connection with the purchase and occupancy of a residence by that individual.
  7. “Mortgage” means such classes of liens as are commonly given to secure advances on, or the unpaid purchase price of, real property, under the laws of the state in which the real property is located, together with the credit instruments, if any, secured thereby.
  8. “Nonprofit organization” means a corporation organized under chapter 10-33 or an organization defined in subsection 7, 8, 9, 10, or 11 of section 57-02-08.
  9. “Person” means any individual, partnership, corporation, limited liability company, or association.
  10. “State agency” means any department, agency, or instrumentality of the state or of a political subdivision of the state; any department, agency, or instrumentality of two or more states; or two or more political subdivisions of the state or states; and any person who has the authority to acquire property by eminent domain under state law.

Source:

S.L. 1973, ch. 407, § 2; 1989, ch. 627, § 2; 1993, ch. 54, § 106; 1997, ch. 105, § 10.

54-01.1-03. Moving and related expenses.

  1. Whenever a program or project to be undertaken by a displacing agency will result in the displacement of any person, the displacing agency shall provide for the payment to the displaced person of:
    1. Actual, reasonable expenses in moving the displaced person and the displaced person’s family, business, farm operation, or other personal property;
    2. Actual, direct losses of tangible personal property as a result of moving or discontinuing a business or farm operation, but not to exceed an amount equal to the reasonable expenses that would have been required to relocate such property, as determined by the state agency;
    3. Actual, reasonable expenses in searching for a replacement business or farm; and
    4. Actual, reasonable expenses necessary to re-establish a displaced farm, nonprofit organization, or small business at its new site, as determined by criteria established by the state agency.
  2. Any displaced person eligible for payments under subsection 1 who is displaced from a dwelling and who elects to accept the payments authorized by this subsection in lieu of the payments authorized by subsection 1 may receive a moving expense allowance, determined according to a schedule established by the state agency.
  3. Any displaced person eligible for payments under subsection 1, who is displaced from the person’s place of business or farm operation and is eligible under criteria established by the state agency, may elect to accept the payment authorized by this subsection in lieu of the payment authorized by subsection 1. The payment must consist of a fixed payment in an amount to be determined according to criteria established by the state agency. A person whose sole business at the displacement dwelling is the rental of the property to others does not qualify for a payment under this subsection.

Source:

S.L. 1973, ch. 407, § 3; 1981, ch. 91, § 44; 1989, ch. 627, § 3; 2003, ch. 455, § 1; 2007, ch. 451, § 1.

Notes to Decisions

Eminent Domain.

Where compensation has been received for property damaged by eminent domain, this section does not prohibit compensation for the relocation of the same property; there is no basis for a distinction in awarding or denying benefits under this section on the premises of whether or not the property to be removed was damaged as a result of eminent domain. Schnaible v. Bismarck, 275 N.W.2d 859, 1979 N.D. LEXIS 209 (N.D. 1979).

Where compensation under this chapter arises from the same injury for which compensation is awarded in an eminent domain proceeding the property owner is not entitled to be doubly compensated for the same injury, but where the basis for compensation arises from a different injury or theory, the property owner is not precluded from seeking compensation under both this chapter and in eminent domain; owner of trade fixtures located in property condemned pursuant to eminent domain who removed the fixtures after the condemnation and accepted an “in lieu” relocation payment under this section did not waive his entitlement to compensation under the North Dakota Constitution for damage to the fixtures as a result of the condemnation since the relocation payment was for a separate and distinct economic loss than that provided for by the North Dakota Constitution. Schnaible v. Bismarck, 275 N.W.2d 859, 1979 N.D. LEXIS 209 (N.D. 1979).

Removal of Property.

Acceptance of “in lieu” relocation payments does not necessarily mean the property itself cannot be removed by the property owner or that he cannot receive compensation in eminent domain proceedings for damages arising as a result of the removal; to conclude that a property owner cannot remove his property after receiving an “in lieu” relocation payment could result in an effective taking of property without providing for compensation. Schnaible v. Bismarck, 275 N.W.2d 859, 1979 N.D. LEXIS 209 (N.D. 1979).

54-01.1-04. Replacement housing for homeowners.

  1. In addition to payments otherwise authorized by this chapter, the displacing agency shall make an additional payment not in excess of twenty-two thousand five hundred dollars to any displaced person who is displaced from a dwelling actually owned and occupied by the displaced person for not less than one hundred eighty days prior to the initiation of negotiations for the acquisition of the property. The additional payment must include the following elements:
    1. The amount, if any, which, when added to the acquisition cost of the dwelling acquired, equals the reasonable cost of a comparable replacement dwelling;
    2. The amount, if any, which will compensate the displaced person for any increased interest costs and other debt service costs which the person is required to pay for financing the acquisition of a comparable replacement dwelling. The amount may be paid only if the dwelling acquired was encumbered by a bona fide mortgage which was a valid lien on the dwelling for not less than one hundred eighty days prior to the initiation of negotiations for the acquisition of the dwelling; and
    3. Reasonable expenses incurred by the displaced person for evidence of title, recording fees, and other closing costs incident to the purchase of the replacement dwelling, but not including prepaid expenses.
  2. The additional payment authorized by this section may be made only to a displaced person who purchases and occupies a decent, safe, and sanitary replacement dwelling within one year after the date on which the displaced person receives final payment from the displacing agency for the acquired dwelling or the date on which the displacing agency’s obligation under section 54-01.1-07 is met, whichever is the later date, except that the displacing agency may extend the period for good cause. If the period is extended, the payment under this section must be based on the costs of relocating the person to a comparable replacement dwelling within one year of such date.

Source:

S.L. 1973, ch. 407, § 4; 1989, ch. 627, § 4.

54-01.1-05. Replacement housing for tenants and certain others.

  1. In addition to amounts otherwise authorized by this chapter, a displacing agency shall make a payment to or for any displaced person displaced from any dwelling not eligible to receive a payment under section 54-01.1-04, which dwelling was actually and lawfully occupied by the displaced person for not less than ninety days prior to:
    1. The initiation of negotiations for acquisition of such dwelling; or
    2. In any case in which displacement is not a direct result of acquisition, such other event as the state agency may prescribe.
  2. Any person eligible for a payment under subsection 1 may elect to apply the payment to a downpayment on, and other incidental expenses pursuant to, the purchase of a decent, safe, and sanitary replacement dwelling. At the discretion of the displacing agency, any such person may be eligible under this subsection for the maximum payment allowed under subsection 1, except that, in the case of a displaced homeowner who has owned and occupied the displacement dwelling for at least ninety days but not more than one hundred eighty days immediately prior to the initiation of negotiations for the acquisition of the dwelling, the payment may not exceed the payment the person would otherwise have received under subsection 1 of section 54-01.1-04 had the person owned and occupied the displacement dwelling one hundred eighty days immediately prior to the initiation of such negotiations.

The payment must consist of the amount necessary to enable the person to lease or rent for a period not to exceed forty-two months, a comparable replacement dwelling, but not to exceed five thousand two hundred fifty dollars. At the discretion of the displacing agency, a payment under this subsection may be made in periodic installments. Computation of a payment under this subsection to a low-income displaced person for a comparable replacement dwelling must take into account such person’s income.

Source:

S.L. 1973, ch. 407, § 5; 1989, ch. 627, § 5.

54-01.1-06. Relocation assistance advisory programs.

  1. Whenever the acquisition of real property for a program or project undertaken by a displacing agency will result in the displacement of any person, the displacing agency shall provide a relocation assistance advisory program for displaced persons which shall offer the services prescribed in subsection 2. If the displacing agency determines that any person occupying property immediately adjacent to the property where the displacing activity occurs is caused substantial economic injury because of the acquisition, it may offer the person relocation advisory services under the program.
  2. Each relocation assistance program required by subsection 1 must include such measures, facilities, or services as may be necessary or appropriate in order:
    1. To determine, and make timely recommendations on, the needs of displaced persons for relocation assistance;
    2. To assist owners of displaced businesses and farm operations in obtaining and becoming established in suitable business locations or replacement farms;
    3. To supply:
      1. Information concerning programs of the federal, state, and local governments offering assistance to displaced persons and business concerns; and
      2. Technical assistance to such persons in applying for assistance under such programs;
    4. To assist in minimizing hardships to displaced persons in adjusting to relocation;
    5. To secure, to the greatest extent practicable, the coordination of relocation activities with other project activities and other planned or proposed governmental actions in the community or nearby areas which may affect the carrying out of the relocation program; and
    6. To provide current and continuing information on the availability, sales prices, and rental charges of comparable replacement dwellings for displaced homeowners and tenants and suitable locations for businesses and farm operations.
  3. Programs or projects undertaken by a displacing agency must be planned in a manner that:
    1. Recognizes, at an early stage in the planning of such programs or projects and before the commencement of any actions that will cause displacements, the problems associated with the displacement of individuals, families, businesses, and farm operations; and
    2. Provides for the resolution of such problems in order to minimize adverse impacts on displaced persons and to expedite program or project advancement and completion.
  4. Notwithstanding subsection 3 of section 54-01.1-02, in any case in which a displacing agency acquires property for a program or project, any person who occupies that property on a rental basis, for a short term or a period subject to termination when the property is needed for the program or project, is eligible for advisory services to the extent determined by the displacing agency.

Source:

S.L. 1973, ch. 407, § 6; 1989, ch. 627, § 6.

54-01.1-07. Assurance of availability of housing.

  1. If a program or project undertaken by a displacing agency cannot proceed on a timely basis because comparable replacement dwellings are not available and the head of the displacing agency determines that such dwellings cannot otherwise be made available, the head of the displacing agency may take such action as is necessary or appropriate to provide such dwellings by use of funds authorized for such project. The displacing agency may use this section to exceed the maximum amounts that may be paid under sections 54-01.1-04 and 54-01.1-05 on a case-by-case basis for good cause as determined in accordance with section 54-01.1-08 regulations issued by the state agency.
  2. No person may be required to move from a dwelling on account of any program or project undertaken by the displacing agency unless the displacing agency is satisfied that comparable replacement housing is available to the person.
  3. The displacing agency shall assure that a person will not be required to move from a dwelling unless the person has had a reasonable opportunity to relocate to a comparable replacement dwelling, except in the case of:
    1. A major disaster as defined in section 102(2) of the Federal Disaster Relief Act of 1974;
    2. A national emergency declared by the president; or
    3. Any other emergency that requires the person to move immediately from the dwelling because continued occupancy of the dwelling by the person constitutes a substantial danger to the health or safety of the person.

Source:

S.L. 1973, ch. 407, § 7; 1989, ch. 627, § 7.

Note.

Federal Disaster Relief Act of 1974, see 42 USCS 5122.

54-01.1-08. Adoption of rules and regulations.

State agencies may consult with the department of commerce division of community services to establish regulations and procedures for implementation of the provisions of this chapter and to establish such regulations and procedures necessary to assure:

  1. That the payments and assistance authorized by this chapter shall be administered in a manner which is fair and reasonable and as uniform as practicable;
  2. That a displaced person who makes proper application for a payment authorized by this chapter shall be paid promptly after a move or, in hardship cases, be paid in advance; and
  3. That any displaced person aggrieved by a determination as to eligibility for a payment, or as to the amount of a payment, may have the application reviewed by the head or governing body of the state agency.

Source:

S.L. 1973, ch. 407, § 8; 1979, ch. 553, § 15; 1983, ch. 570, § 9; 1989, ch. 627, § 8; 1999, ch. 475, § 3; 2001, ch. 488, § 24.

54-01.1-09. Administration.

In order to prevent unnecessary expense and duplication of functions, and to promote uniform and effective administration of relocation assistance programs for displaced persons, the state agency may enter into contracts with any individual, firm, association, corporation, or limited liability company for services in connection with those programs, or may carry out its functions under this chapter through any federal agency or any department or instrumentality of the state or its political subdivisions having an established organization for conducting relocation assistance programs. The state agency shall, in carrying out relocation activities described in section 54-01.1-08, whenever practicable, utilize the services of state or local housing agencies, or other agencies having experience in the administration or conduct of similar housing assistance activities.

Source:

S.L. 1973, ch. 407, § 9; 1989, ch. 627, § 9; 1993, ch. 54, § 106.

54-01.1-10. Fund availability.

Funds appropriated or otherwise available to any state agency for the acquisition of real property or any interest therein for a particular program or project shall also be available to carry out the provisions of this chapter as applied to that program or project. No payment or assistance under this chapter is required to be made to any person or included as a program or project cost under this section, if the person receives a payment required by federal, state, or local law which is determined by the state agency to have substantially the same purpose effect as the payment under this chapter.

Source:

S.L. 1973, ch. 407, § 10; 1989, ch. 627, § 10.

54-01.1-11. State participation in cost of local relocation payments and services.

If a political subdivision acquires real property, and state financial assistance is available to pay the cost, in whole or part, of the acquisition of that real property, or of the improvement for which the property is acquired, the cost to the political subdivision of providing the payments and services prescribed by this chapter must be included as part of the costs of the project for which state financial assistance is available and the political subdivision shall be eligible for state financial assistance for relocation payments and services in the same manner and to the same extent as other project costs.

Source:

S.L. 1973, ch. 407, § 11.

54-01.1-12. Displacement by federally assisted building code enforcement or by voluntary rehabilitation.

A person who moves or discontinues a business or moves other personal property, or moves from a dwelling as the direct result of a federally assisted building code enforcement program, or of a program of rehabilitation of buildings conducted pursuant to a governmental program, is deemed to be a displaced person for the purposes of this chapter.

Source:

S.L. 1973, ch. 407, § 12; 1989, ch. 627, § 11.

54-01.1-13. Payments not to be considered as income or resources.

No payment received by a displaced person under this chapter may be considered as income or resources for the purpose of determining the eligibility or extent of eligibility of any person for assistance under any state law, or for the purposes of the state’s personal income tax law, corporation tax law, or other tax laws. These payments may not be considered as income or resources of any recipient of public assistance and the payments may not be deducted from the amount of aid to which the recipient would otherwise be entitled.

Source:

S.L. 1973, ch. 407, § 13.

54-01.1-14. Appeal procedure.

Any person or business concern aggrieved by a final administrative determination pursuant to chapter 28-32 concerning eligibility for relocation payments authorized by this chapter may appeal that determination to the district court in the judicial district in which the land taken for public use is located or the voluntary rehabilitation program is conducted.

Source:

S.L. 1973, ch. 407, § 14.

54-01.1-15. Payments not element of condemnation damages.

Nothing in this chapter may be construed as creating, in any condemnation proceedings brought under the power of eminent domain, any element of value or damage not in existence prior to July 1, 1973.

Source:

S.L. 1973, ch. 407, § 15.

54-01.1-16. Real property acquisition policies.

Any state agency engaged in a federally assisted program or project involving the acquisition of real property must be guided, to the greatest extent practicable under state law, by the real property acquisition policies set forth in the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 [Pub. L. 91-646; 42 U.S.C. 4651-4654] and the 1987 amendments enacted in title IV of the Surface Transportation and Uniform Relocation Assistance Act of 1987 [Pub. L. 100-17; 101 Stat. 255-256].

Source:

S.L. 1973, ch. 407, § 16; 1989, ch. 627, § 12.

CHAPTER 54-02 State Emblems, Symbols, and Awards

54-02-01. Great seal — Permitted uses — Penalty for commercial use.

  1. The great seal of the state is that prescribed in section 2 of article XI of the Constitution of North Dakota. A description in writing of such seal must be deposited and recorded in the office of the secretary of state and must remain a public record. A reproduction of the great seal may be placed on any official form, document, or stationery of any agency, authority, board, body, branch, bureau, commission, committee, council, department, division, industry, institution, or instrumentality of the state or of any elected or appointed official of the state. A reproduction of the great seal may be placed on business calling cards produced for the use of an elected or appointed state official or state employee regardless of whether the cards are purchased by the official or employee or by the state. Any use of the great seal on any other object or thing by any of the foregoing state entities or officials is prohibited unless approved by the secretary of state; provided, however, that the state historical society and the parks and recreation department may, with the concurrence of the secretary of state, reproduce the great seal on any objects they offer for sale as souvenirs.
  2. It is a class B misdemeanor for any person to:
    1. Place or cause to be placed the great seal, or any reproduction of the great seal, on any political badge, button, insignia, pamphlet, folder, display card, sign, poster, billboard, or on any other public advertisement, or to otherwise use the great seal for any political purpose, as defined in section 16.1-10-02.
    2. Place or cause to be placed on the great seal, or any reproduction thereof, any advertisement.
    3. Expose the great seal, or any reproduction thereof, to public view with any advertisement attached thereto.
    4. Utilize the great seal, or a copy or reproduction thereof, for any commercial purpose or except as provided in subsection 1, to utilize or place a copy or reproduction of the great seal on any stationery or business calling card of any person.

As used in this subsection, “advertisement” means any printed matter, device, picture, or symbol, no matter how presented to the senses, which informs the public that a good or service is available; and “commercial purpose” means with intent to produce a pecuniary gain through sale of a good or service. Notwithstanding any other provision of law, the secretary of state may grant a written request by a private vendor to reproduce official state forms and documents, containing a reproduction of the great seal, for resale to persons intending to submit the forms or documents to any state entity in the regular course of business. The secretary of state may also grant a written request by a publisher, educational institution, or author to reproduce the great seal in any research, reference, or educational publication containing a compilation of the great seals of other states.

Source:

S.L. 1890, ch. 149, § 1; R.C. 1895, § 1046; R.C. 1899, § 1046; R.C. 1905, § 1342; C.L. 1913, § 1911; R.C. 1943, § 54-0201; S.L. 1975, ch. 461, § 1; 1995, ch. 490, § 1; 1997, ch. 430, § 1; 2005, ch. 471, § 1.

54-02-02. State flag.

The flag of North Dakota must consist of a field of blue silk or material which will withstand the elements four feet four inches [132.08 centimeters] on the pike and five feet six inches [167.64 centimeters] on the fly, with a border of knotted yellow fringe two and one-half inches [6.35 centimeters] wide. On each side of said flag in the center thereof, must be embroidered or stamped an eagle with outspread wings and with opened beak. The eagle must be three feet four inches [101.6 centimeters] from tip to tip of wing, and one foot ten inches [55.88 centimeters] from top of head to bottom of olive branch hereinafter described. The left foot of the eagle shall grasp a sheaf of arrows, the right foot shall grasp an olive branch showing three red berries. On the breast of the eagle must be displayed a shield, the lower part showing seven red and six white stripes placed alternately. Through the open beak of the eagle must pass a scroll bearing the words “E Pluribus Unum”. Beneath the eagle there must be a scroll on which must be borne the words “North Dakota”. Over the scroll carried through the eagle’s beak must be shown thirteen five-pointed stars, the whole device being surmounted by a sunburst. The flag must conform in all respects as to color, form, size, and device with the regimental flag carried by the First North Dakota Infantry in the Spanish American War and Philippine Insurrection, except in the words shown on the scroll below the eagle. To ensure historical accuracy, reproductions of the flag of North Dakota must adhere to the official design and industry color chart codes provided by the state historical society. A description in writing of the flag must be made available to the public by the state historical society. Flags purchased by a state entity or a political subdivision must substantially meet the requirements of this section. This section does not apply to the purchase of an item that is not a flag but which portrays a likeness of the flag of North Dakota, for example, a miniature flag, food, clothing, a lapel pin, a paper product, or other nonflag item.

Source:

S.L. 1911, ch. 283, § 1; C.L. 1913, § 1915; R.C. 1943, § 54-0202; S.L. 1959, ch. 367, § 1; 2011, ch. 384, § 1.

54-02-03. State flower.

The floral emblem of the state of North Dakota shall be the wild prairie rose, rosa blanda or arkansana.

Source:

S.L. 1907, ch. 231, § 1; C.L. 1913, § 1914; R.C. 1943, § 54-0203.

54-02-04. State song.

The song known as “North Dakota Hymn”, with words written by James W. Foley and music composed by Doctor C. S. Putnam is the official song for the state of North Dakota.

Source:

S.L. 1947, ch. 327, § 1; R.C. 1943, 1957 Supp., § 54-0204.

54-02-05. State tree.

The American elm, ulmus americana, is the official tree of the state of North Dakota.

Source:

S.L. 1947, ch. 329, § 1; R.C. 1943, 1957 Supp., § 54-0205.

54-02-06. State bird.

The meadowlark, sturnella neglecta, is the official bird of the state of North Dakota.

Source:

S.L. 1947, ch. 329, § 2; R.C. 1943, 1957 Supp., § 54-0206.

54-02-07. Theodore Roosevelt rough rider award.

There shall be awarded by the state of North Dakota, in the name of the legislative assembly and the citizens of this state, an award to be known as the Theodore Roosevelt rough rider award. The award is the highest recognition by the state of present or former North Dakotans who have been influenced by this state in achieving national recognition in their fields of endeavor, thereby reflecting credit and honor upon this state and its citizens. The award is not for momentary success, but only for genuine achievements of lasting significance. It is the intent of this section to guard the dignity of the rough rider award for recipients of the past as well as the future. The award, of a type and design approved by the governor, must be awarded by the governor upon the concurrence of the secretary of state and the director of the state historical society. A record of all such awards and pertinent information in regard to each recipient must be retained by the state archivist.

Source:

S.L. 1963, ch. 344, § 1; 1967, ch. 377, § 1; 1995, ch. 491, § 1; 2001, ch. 503, § 11.

54-02-08. State fossil — Teredo petrified wood.

The teredo petrified wood is the official fossil of the state of North Dakota.

Source:

S.L. 1967, ch. 378, § 1.

54-02-09. Adoption of North Dakota state march.

“Flickertail March” as composed by Mr. James D. Ployhar is the North Dakota state march. The North Dakota state march must be played in a manner consistent with the respect and dignity due a state march and may be played at appropriate state functions.

Source:

S.L. 1975, ch. 462, § 2; 1989, ch. 628, § 1.

54-02-10. State grass.

Western wheatgrass, agropyron smithii, is the official grass of the state of North Dakota.

Source:

S.L. 1977, ch. 475, § 1.

54-02-11. State art museum.

The North Dakota museum of art, formerly the university of North Dakota art galleries, established in 1972 on the university campus in Grand Forks, is designated the North Dakota art museum. Unless clear title is otherwise demonstrable, any work of art, artifact, or artistic property located in the state art museum is deemed to be the property of the North Dakota art museum and is subject to disposition by the North Dakota art museum.

Source:

S.L. 1981, ch. 519, § 1; 1997, ch. 32, § 20; 2003, ch. 456, § 1.

54-02-12. State beverage.

Milk is the official beverage of the state of North Dakota.

Source:

S.L. 1983, ch. 548, § 1.

54-02-13. English as official language.

The English language is the official language of the state of North Dakota.

Source:

S.L. 1987, ch. 619, § 1.

54-02-14. State railroad museum.

The Mandan railroad museum, established in 1972 in Mandan, is hereby designated the North Dakota state railroad museum. No state agency or institution may provide appropriated funds to the state railroad museum nor is the state responsible for any obligations of the museum.

Source:

S.L. 1989, ch. 629, § 1.

54-02-15. Honorary equine.

The Nokota horse, in recognition of the significant role the breed has played in the history of this state, is designated an honorary equine of North Dakota.

Source:

S.L. 1993, ch. 504, § 1.

54-02-16. State dance.

The square dance, in consideration of its contribution to the art and culture of North Dakota, is designated the official American folk dance of North Dakota.

Source:

S.L. 1995, ch. 492, § 1.

54-02-17. State fruit.

The chokecherry, prunus virginiana, is the official fruit of the state of North Dakota.

Source:

S.L. 2007, ch. 452, § 1.

54-02-18. State Latin motto.

“Serit ut alteri saeclo prosit” is the North Dakota state Latin motto. “One sows for the benefit of another age” is the English translation.

Source:

S.L. 2011, ch. 385, § 1.

54-02-19. State insect.

The convergent lady beetle, hippodamia convergens, commonly known as a ladybug, is the official insect of the state of North Dakota.

Source:

S.L. 2011, ch. 386, § 1.

CHAPTER 54-03 Legislative Assembly

54-03-01. State legislative apportionment. [Repealed]

Repealed by S.L. 1975, ch. 463, § 4.

54-03-01.1. Numbering legislative districts — Classes of senators to provide staggered terms. [Repealed]

Repealed by S.L. 1975, ch. 463, § 4.

54-03-01.2. Legislative subdistricting — Methods. [Repealed]

Repealed by S.L. 1975, ch. 463, § 4.

54-03-01.3. Election on petition — Ballot form — Vote required. [Repealed]

Repealed by S.L. 1975, ch. 463, § 4.

54-03-01.4. Amendment to the Constitution of the United States — Results. [Repealed]

Repealed by S.L. 1975, ch. 463, § 4.

54-03-01.5. Legislative redistricting requirements.

A legislative redistricting plan based on any census taken after 1999 must meet the following requirements:

  1. The senate must consist of forty-seven members and the house must consist of ninety-four members.
  2. Except as provided in subsection 3, one senator and two representatives must be apportioned to each senatorial district. Representatives may be elected at large or from subdistricts.
  3. Multimember senate districts providing for two senators and four representatives are authorized only when a proposed single-member senatorial district includes a federal facility or federal installation, containing over two-thirds of the population of the proposed single-member senatorial district.
  4. Legislative districts and subdistricts must be compact and of contiguous territory.
  5. Legislative districts must be as nearly equal in population as is practicable. Population deviation from district to district must be kept at a minimum. The total population variance of all districts, and subdistricts if created, from the average district population may not exceed recognized constitutional limitations.

Source:

S.L. 1975, ch. 463, § 1; 1979, ch. 533, § 1; 1981, ch. 804, § 5; 1987, ch. 259, § 9; 1991, ch. 563, § 1; 2001 Sp., ch. 691, § 1.

Cross-References.

Emergency interim successors, authority for designation by legislators, see N.D. Const., Art. XI, § 7.

Notes to Decisions

Justification of Variations in District Size.

The state’s defense of its 1975 redistricting plan, which embodied a total variance from strict mathematical equality of district population of 20.17% and an average deviation per district of 1 4.65%, in which it sought to justify these variations by reference to (1) the sparse population of rural areas, (2) recognition of the natural boundary of the Missouri River, and (3) the state policy of preserving the integrity of county lines, was insufficient to overcome the prima facie unconstitutionality of a plan with such wide variances in district size. Chapman v. Meier, 407 F. Supp. 649, 1975 U.S. Dist. LEXIS 16749 (D.N.D. 1975).

Preservation of County Lines.

The preservation of the integrity of its political subdivisions is a legitimate state goal, and the drawing of legislative district boundaries along county lines might well justify some deviation from mathematical equality of district size, but in a plan with fifty legislative districts/subdistricts, in which thirteen, including three of the eight districts with the largest deviations in size, broke county lines, the state failed to show that the deviations in its plan were incident to the policy of preserving the integrity of those lines. Chapman v. Meier, 407 F. Supp. 649, 1975 U.S. Dist. LEXIS 16749 (D.N.D. 1975).

Reapportionment.

Court-ordered reapportionment must avoid use of multimember districts, and must achieve the goal of population equality with little more than minimal variation; and where significant considerations mandate departure from the standards, it is the reapportioning court’s responsibility to explain why the standards cannot be met. Chapman v. Meier, 420 U.S. 1, 95 S. Ct. 751, 42 L. Ed. 2d 766, 1975 U.S. LEXIS 25 (U.S. 1975).

Collateral References.

Construction and Application of Elections Clause of United States Constitution, U.S. Const. Art. I, § 4, cl.1, and State Constitutional Provisions Concerning Congressional Elections, 34 A.L.R.6th 643.

Law Reviews.

Apportionment in North Dakota: The Saga of Continuing Controversy, 57 N.D. L. Rev. 447 (1981).

54-03-01.6. State legislative apportionment. [Repealed]

Repealed by S.L. 1981, ch. 804, § 9.

54-03-01.7. State legislative apportionment. [Repealed]

Repealed by S.L. 1991 Sp., ch. 886, § 3.

54-03-01.8. Staggering of the terms of senators. [Repealed]

Repealed by S.L. 2011 Sp., ch. 582, § 3.

54-03-01.9. Legislative redistricting. [Repealed]

Repealed by S.L. 2001, ch. 691, § 5.

54-03-01.10. Staggering of terms of representatives. [Repealed]

Repealed by S.L. 2011 Sp., ch. 582, § 3.

54-03-01.11. Legislative redistricting. [Repealed]

Repealed by S.L. 2013, ch. 63, § 16.

Effective Date.

The repeal of this section by section 16 of chapter 63, S.L. 2013 became effective August 1, 2013.

54-03-01.12. Legislative districts.

Each legislative district is entitled to one senator and two representatives. The legislative districts of the state are formed as follows:

  1. District 1 consists of that part of the city of Williston and Stony Creek and Williston Townships in Williams County bound by a line commencing at the point where the centerline of thirty-second avenue intersects the centerline of United States highway 2, then south on thirty-second avenue and an extended straight line to the shoreline of Lake Sakakawea, then east on the shoreline of Lake Sakakawea until its intersection with the centerline of the Little Muddy Creek, then north on the Little Muddy Creek until its intersection with the extended centerline of forty-second street, then west on forty-second street until its intersection with the centerline of frontage road west, then south on frontage road west until its intersection with the southern property line of the sloulin field international airport, then west and south on the southern property line of the sloulin field international airport until its intersection with the centerline of twenty-sixth street, then west on twenty-sixth street until its intersection with the centerline of seventeenth avenue, then north on seventeenth avenue until its intersection with the centerline of thirty-second street, then west on thirty-second street until its intersection with the centerline of pheasant run parkway, then south on pheasant run parkway until its intersection with the centerline of twenty-sixth street, then west on twenty-sixth street until its intersection with the centerline of one hundred thirty-eighth avenue northwest, then south on one hundred thirty-eighth avenue and an extended line to the point of beginning.
  2. District 2 consists of all of Burke County and Divide County; all of Williams County except that portion contained in District 1; and Bicker, Powers Lake, Powers, Lostwood, White Earth, Sorkness, Cottonwood, James Hill, Myrtle, Manitou, Ross, and Idaho Townships in Mountrail County.
  3. District 3 consists of New Prairie, Sundre, and Surrey Townships in Ward County; and that part of the city of Minot and that part of Nedrose Township in Ward County bound by a line commencing at the intersection of the centerline of eleventh avenue and the centerline of north broadway, then south on broadway until its intersection with the centerline of burdick expressway, then east on burdick expressway until its intersection with the centerline of third street, then south on third street until its intersection with the centerline of eleventh avenue southeast, then east on eleventh avenue until its intersection with the centerline of seventh street, then south on an extended line from seventh street until its intersection with the centerline of sixteenth avenue southeast, then east on sixteenth avenue until its intersection with the centerline of thirteenth street southeast, then south on thirteenth street until its intersection with the south boundary of Nedrose Township, then east on the south boundary of Nedrose Township until its intersection with the southeast corner of Nedrose Township, then north on the east boundary of Nedrose Township until its intersection with the northeast corner of Nedrose Township, then west on the north boundary of Nedrose Township until its intersection with the centerline of twenty-seventh street, then south on twenty-seventh street until its intersection with the extended centerline of nineteenth avenue, then west on the extended centerline of nineteenth avenue and on nineteenth avenue until its intersection with the centerline of third street, then south on third street until its intersection with the centerline of eleventh avenue, then west on eleventh avenue to the point of beginning.
  4. District 4 consists of all of Mountrail County except that portion contained in District 2; all of Ward County except those portions contained in Districts 3, 5, 38, and 40; those portions of McKenzie County and Mercer County within the Fort Berthold reservation; all of McLean County except that portion contained in District 8; and that part of Dunn County bound by a line commencing at the intersection of the Fort Berthold reservation boundary and the north boundary of Dunn County, then south on the reservation boundary until its intersection with the centerline of the Little Missouri River, then south and east on the centerline of the Little Missouri River until its intersection with the west boundary of Township 147-94, then south on the west boundary of Townships 147-94, 146-94, and 145-94, then east on the south boundary of Township 145-94 to the west boundary of Township 144-94, then south on the west boundary of Townships 144-94 and 143-94, then east on the south boundary of Townships 143-94, 143-93, 143-92, and 143-91 to the east boundary of Dunn County, then north, west, and south on the boundary of Dunn County to the point of beginning.
  5. District 5 consists of that part of the city of Minot and Harrison Township in Ward County bound by a line commencing at the intersection of the centerline of the BNSF Railway Company right of way and the centerline of north broadway, then south on broadway until its intersection with the centerline of burdick expressway, then east on burdick expressway until its intersection with the centerline of third street, then south on third street until its intersection with the centerline of eleventh avenue southeast, then east on eleventh avenue until its intersection with the centerline of seventh street, then south on an extended line from seventh street until its intersection with the centerline of sixteenth avenue southeast, then east on sixteenth avenue until its intersection with the centerline of thirteenth street, then south on thirteenth street until its intersection with the centerline of United States highway 2, then west on United States highway 2 until its intersection with the centerline of United States highway 83, then south on United States highway 83 until its intersection with the centerline of thirty-seventh avenue southwest, then west on thirty-seventh avenue until its intersection with the centerline of thirtieth street, then north on thirtieth street until its intersection with the centerline of twentieth avenue, then west on twentieth avenue until its intersection with the centerline of thirty-third street, then north on thirty-third street until its intersection with the centerline of United States highway 2, then east on United States highway 2 until its intersection with the centerline of United States highway 83 bypass, then north on the United States highway 83 bypass until its intersection with the centerline of the canadian pacific railway right of way, then east on the canadian pacific railway right of way until its intersection with the centerline of sixteenth street, then north on sixteenth street until its intersection with the centerline of fourth avenue, then east on fourth avenue until its intersection with the centerline of tenth street, then south on tenth street until its intersection with the centerline of first avenue northwest, then east on first avenue until its intersection with the centerline of eighth street northwest, then south on eighth street until its intersection with the centerline of central avenue, then east on central avenue until its intersection with the centerline of sixth street, then south on sixth street until its intersection with the centerline of the BNSF Railway Company right of way, then north and east on the BNSF Railway Company right of way to the point of beginning.
  6. District 6 consists of all of Bottineau County, McHenry County, and Renville County.
  7. District 7 consists of all of the city of Lincoln in Burleigh County and that part of the city of Bismarck and Apple Creek, Gibbs, and Hay Creek Townships in Burleigh County bound by a line commencing at the intersection of interstate highway 94 and the centerline of the Missouri River, then north and west on the Missouri River until its intersection with the north boundary of Hay Creek Township, then east on the north boundary of Hay Creek Township until its intersection with the centerline of United States highway 83, then south on United States highway 83 until its intersection with the centerline of seventy-first avenue, then east on seventy-first avenue until its intersection with the centerline of eightieth street, then south on eightieth street until its intersection with the centerline of lincoln road, then west on lincoln road until its intersection with the centerline of bluejay avenue, then south and west on bluejay avenue until its intersection with the centerline of sandpiper avenue, then west on sandpiper avenue until its intersection with the centerline of dove street, then south on dove street until its intersection with the centerline of roadrunner avenue, then west on roadrunner avenue until its intersection with the centerline of sixty-sixth street southeast, then south on sixty-sixth street until its intersection with the centerline of forty-eighth avenue southeast, then west on forty-eighth avenue until its intersection with the centerline of fifty-second street southeast, then north on fifty-second street until its intersection with the Lincoln city limit, then west, north, and east on the Lincoln city limit until its intersection with a straight line extended from the centerline of fifty-second street, then north on the straight line extended from fifty-second street until its intersection with the centerline of old highway 10, also identified as apple creek road, then west on old highway 10 until its intersection with the centerline of fifty-second street, then north on fifty-second street until its intersection with the centerline of county highway 10, then west on county highway 10 until its intersection with Bismarck expressway, then north on Bismarck expressway until its intersection with the centerline of interstate highway 94, then west on interstate highway 94 until its intersection with the centerline of United States highway 83, then north on United States highway 83 until its intersection with the centerline of forty-third avenue, then west on forty-third avenue until its intersection with the centerline of washington street, also identified as third street northwest, then north on washington street until its intersection with the centerline of fifty-seventh avenue northwest, then west on fifty-seventh avenue and an extended straight line until its intersection with the centerline of state highway 1804, then south on state highway 1804 and river road until its intersection with the centerline of interstate highway 94, then west on interstate highway 94 to the point of beginning.
  8. District 8 consists of Andrews, Otis, Butte, Dogden, Greatstone, Horseshoe Valley, Aurena, Byersville, St. Mary, Snow, Malcolm, Medicine Hill, Victoria, Turtle Lake, Lake Williams, Wise, Longfellow, and Mercer Townships in McLean County; that part of Township 147-85 within McLean County; Township 148-84 in McLean County, including the city of Garrison; south McLean unorganized township in McLean County, including the city of Washburn; Underwood unorganized township in McLean County, including the cities of Riverdale and Underwood; east McLean unorganized township in McLean County; Wilson, Steiber, Schrunk, Florence Lake, Hazel Grove, Grass Lake, Estherville, Canfield, Richmond, Phoenix, Painted Woods, Ecklund, Ghylin, Rock Hill, Wing, Harriet-Lien, Glenview, Crofte, Cromwell, Trygg, Lyman, Burnt Creek-Riverview, Naughton, Francis, Sibley Butte, Christiania, and Clear Lake Townships in Burleigh County; and that part of Hay Creek, Gibbs, and Apple Creek Townships in Burleigh County bound by a line commencing at the intersection of the north boundary of Hay Creek Township, also identified as eighty-fourth avenue northeast, and United States highway 83, then south on United States highway 83 until its intersection with the centerline of seventy-first avenue, then east on seventy-first avenue until its intersection with the centerline of eightieth street, then south on eightieth street until its intersection with the centerline of lincoln road, then east on lincoln road until its intersection with the east boundary of Apple Creek Township, also identified as one hundred thirty-second street southeast, then north on the east boundary of Apple Creek Township and the east boundary of Gibbs Township until its intersection with the north boundary of Gibbs Township, also identified as eighty-fourth avenue northeast, then west on the north boundary of Gibbs Township and the north boundary of Hay Creek Township to the point of beginning.
  9. District 9 consists of all of Rolette County.
  10. District 10 consists of all of Cavalier County and Pembina County; and all of Walsh County except that portion contained in District 19.
  11. District 11 consists of that part of the city of Fargo in Cass County bound by a line commencing at the intersection of an extended line from the centerline of thirteenth avenue south and the centerline of the Red River, then west on thirteenth avenue until its intersection with the centerline of tenth street, then north on tenth street until its intersection with the centerline of ninth avenue south, then west on ninth avenue until its intersection with the centerline of twenty-fifth street, then north on twenty-fifth street until its intersection with the centerline of business interstate highway 94, also identified as main avenue, then west on business interstate highway 94 until its intersection with the centerline of interstate highway 29, then south on interstate highway 29 until its intersection with the centerline of seventeenth avenue south, then east on seventeenth avenue until its intersection with the centerline of twenty-fifth street, then south on twenty-fifth street until its intersection with the centerline of eighteenth street, then southeast on eighteenth street until its intersection with the centerline of twenty-fifth avenue south, then northeast and east on twenty-fifth avenue until its intersection with the centerline of United States highway 81, also identified as university drive, then north on United States highway 81 until its intersection with the centerline of interstate highway 94, then east on interstate highway 94 until its intersection with the centerline of the Red River, then north on the Red River to the point of beginning.
  12. District 12 consists of that part of the city of Jamestown and Bloom Township in Stutsman County bound by a line commencing at the intersection of the centerline of United States highway 281 and the centerline of seventeeth street southwest, also identified as louis l’amour lane, then north and east on United States highway 281 until its intersection with the centerline of the James River, then west and north on the James River until its intersection with the centerline of the Pipestem Creek, then north and west on the Pipestem Creek until its intersection with the Jamestown city limit and the centerline of seventeenth avenue southwest, then north and east following the city limit until the city limit intersects the centerline of fourth avenue northwest, then north on fourth avenue until its intersection with an extended straight line from the south shoreline of the Jamestown reservoir, then north on the centerline of the Jamestown reservoir until its intersection with an extended straight line of the centerline of thirtieth street southeast, then east on thirtieth street until its intersection with the centerline of state highway 20, then south on state highway 20 until its intersection with the Jamestown city limit, then east, south, and west on the Jamestown city limit until its intersection with the centerline of twenty-seventh avenue southeast, then south on twenty-seventh avenue until its intersection with the Jamestown city limit, then south, west, east, and southwest on the city limit and south on the centerline of eighty-fifth avenue until the intersection of eighty-fifth avenue with the centerline of twenty-ninth street, then west on twenty-ninth street until its intersection with the centerline of twelfth avenue southeast, then north on twelfth avenue until its intersection with the Jamestown city limit, then west on the city limit until its intersection with the extended centerline of fourth avenue, then north on fourth avenue until its intersection with the centerline of seventeenth street southwest, then west on seventeenth street to the point of beginning.
  13. District 13 consists of that part of Barnes and Mapleton Townships and the city of West Fargo in Cass County bound by a line commencing at the intersection of the extended centerline of twelfth avenue northwest and the centerline of the Sheyenne River, then west on twelfth avenue until its intersection with the centerline of thirty-eighth street, then south on thirty-eighth street until its intersection with the centerline of interstate highway 94, then east and southeast on interstate highway 94 until its intersection with the east boundary of Mapleton Township, then south on the east boundary of Mapleton Township until its intersection with the centerline of twenty-first avenue west, then east on twenty-first avenue and an extended straight line until its intersection with the centerline of sheyenne street, then north on sheyenne street until its intersection with interstate highway 94, then east on interstate highway 94 until its intersection with the centerline of ninth street, then north on ninth street until its intersection with the centerline of thirteenth avenue east, then east on thirteenth avenue until its intersection with the centerline of seventeenth street, then north on seventeenth street until its intersection with the centerline of fourth avenue east, then west on fourth avenue until its intersection with the centerline of ninth street, then north on ninth street until its intersection with the centerline of business interstate highway 94, then west on business interstate highway 94 to the centerline of the Sheyenne River, then north on the Sheyenne River to the point of beginning.
  14. District 14 consists of all of Kidder County, Pierce County, Sheridan County, and Wells County; and Pleasant Lake, Knox, York, Leeds, Irvine, Iowa, Twin Lake, Beaver, Lake Ibsen, Normania, Impark, Broe, Butte Valley, McClellan, Riggin, Esmond, Isabel, Albert, Eldon, Rich Valley, Hesper, North Viking, Aurora, East Fork, Arne, South Viking, and West Antelope Townships in Benson County.
  15. District 15 consists of all of Ramsey County and Towner County.
  16. District 16 consists of that part of Barnes Township and the cities of Fargo and West Fargo in Cass County bound by a line commencing at the centerline of business interstate highway 94, also identified as main avenue, and the centerline of forty-second street in Fargo, then west on business interstate highway 94 until its intersection with the centerline of ninth street, then south on ninth street until its intersection with the centerline of fourth avenue east, then east on fourth avenue until its intersection with the centerline of seventeenth street, then south on seventeenth street until its intersection with the centerline of thirteenth avenue east, then west on thirteenth avenue until its intersection with the centerline of ninth street, then south on ninth street until its intersection with the centerline of interstate highway 94, then west on interstate highway 94 until its intersection with the centerline of sheyenne street, then south on sheyenne street until its intersection with the centerline of an extended straight line from twenty-first avenue west, then west on that line and twenty-first avenue until its intersection with the east boundary of Mapleton Township, then south on the east boundary of Mapleton Township until its intersection with the centerline of thirty-second avenue, then east on thirty-second avenue until its intersection with the centerline of one hundred seventieth avenue southeast, also identified as sheyenne street, then south on one hundred seventieth avenue until its intersection with the centerline of fortieth avenue east, then east on fortieth avenue until its intersection with the centerline of veterans boulevard, then north on veterans boulevard until its intersection with the centerline of thirty-second avenue, then east on thirty-second avenue until its intersection with the centerline of forty-fifth street, then north on forty-fifth street until its intersection with the centerline of thirteenth avenue south, then east on thirteenth avenue until its intersection with the centerline of forty-second street, then north on forty-second street to the point of beginning.
  17. District 17 consists of all of Brenna Township in Grand Forks County; and that part of Grand Forks Township and that part of the city of Grand Forks in Grand Forks County bound by a line commencing at the intersection of an extended straight line of the centerline of lanark avenue and the centerline of the Red River, then southwest on lanark avenue until its intersection with the centerline of lincoln drive, then west on lincoln drive and eighth avenue south until the intersection of the centerline of eighth avenue south and the centerline of belmont road, then south on belmont road until its intersection with the centerline of tenth avenue south, then west on tenth avenue until its intersection with the centerline of cottonwood street, then south on cottonwood street until its intersection with the centerline of fifteenth avenue south, then west on fifteenth avenue until its intersection with the centerline of cherry street, then south on cherry street until its intersection with the centerline of fifteenth avenue south, then west on fifteenth avenue until its intersection with the centerline of washington street, then south on washington street until its intersection with the centerline of thirty-second avenue south, then west on thirty-second avenue until its intersection with the centerline of forty-second street, then north on forty-second street until its intersection with the centerline of the BNSF Railway Company right of way, then west on the BNSF Railway Company right of way until its intersection with the centerline of fifty-fifth street, then north on fifty-fifth street until its intersection with the centerline of gateway drive, then west on gateway drive and United States highway 2 until its intersection with the northwest corner of Brenna Township, then south on the west boundary of Brenna Township to the southwest corner of Brenna Township, then east on the south boundary of Brenna Township and the south boundary of Grand Forks Township to the centerline of the Red River, then north on the Red River to the point of beginning.
  18. District 18 consists of Blooming, Falconer, and Rye Townships in Grand Forks County; and that part of the city of Grand Forks and Mekinock Township in Grand Forks County bound by a line commencing at the intersection of an extended straight line of the centerline of lanark avenue and the centerline of the Red River, then southwest on lanark avenue until its intersection with the centerline of lincoln drive, then west on lincoln drive and eighth avenue south until the intersection of the centerline of eighth avenue south and the centerline of belmont road, then south on belmont road until its intersection with the centerline of tenth avenue south, then west on tenth avenue until its intersection with the centerline of cottonwood street, then south on cottonwood street until its intersection with the centerline of fifteenth avenue south, then west on fifteenth avenue until its intersection with the centerline of cherry street, then south on cherry street until its intersection with the centerline of fifteenth avenue south, then west on fifteenth avenue until its intersection with the centerline of washington street, then south on washington street until its intersection with the centerline of library circle, then west and northwest on library circle until its intersection with the centerline of twentieth avenue south, then west on twentieth avenue until its intersection with the centerline of twentieth street, then north on twentieth street and an extended straight line until its intersection with the centerline of the BNSF Railway Company right of way, then east on the centerline of the BNSF Railway Company right of way until its intersection with the centerline of sixteenth street, then north on sixteenth street until its intersection with the centerline of sixth avenue north, then west on sixth avenue until its intersection with the centerline of twentieth street, then north on twentieth street until its intersection with the centerline of gateway drive, then west on gateway drive and United States highway 2 until its intersection with the south entrance of the Grand Forks air force base, known as eielson street, then north on eielson street until its intersection with the centerline of seventh avenue, then east on seventh avenue until its intersection with the centerline of j street, then south on j street until its intersection with the centerline of juniper avenue, then east on juniper avenue until its extended centerline intersects the west boundary of Blooming Township, then north on the west boundary of Blooming Township to the northwest corner of Blooming Township, then east on the north boundary of Blooming Township, Rye Township, and Falconer Township to the centerline of the Red River, then south on the Red River to the point of beginning.
  19. District 19 consists of Glenwood, Farmington, Martin, St. Andrews, Fertile, Grafton, Oakwood, Acton, Vernon, Rushford, Prairie Centre, Walsh Centre, Harriston, Pulaski, Medford, Eden, Ops, Forest River, Ardoch, and Walshville Townships in Walsh County; and Elkmount, Inkster, Strabane, Johnstown, Levant, Turtle River, Plymouth, Agnes, Wheatfield, Gilby, Lakeville, Manvel, Niagara, Elm Grove, Hegton, Moraine, Larimore, Arvilla, Logan Center, Grace, Avon, Loretta, Lind, and Northwood Townships in Grand Forks County.
  20. District 20 consists of all of Traill County; all of Grand Forks County except those portions contained in Districts 17, 18, 19, 42, and 43; and Dows, Hunter, Bell, Kinyon, and Noble Townships in Cass County.
  21. District 21 consists of that part of the city of Fargo in Cass County bound by a line commencing at the intersection of an extended line from the centerline of thirteenth avenue south and the centerline of the Red River, then west on thirteenth avenue until its intersection with the centerline of tenth street, then north on tenth street until its intersection with the centerline of ninth avenue south, then west on ninth avenue south until its intersection with the centerline of twenty-fifth street, then north on twenty-fifth street until its intersection with the centerline of business interstate highway 94, also identified as main avenue, then west on business interstate highway 94 until its intersection with the centerline of interstate highway 29, then north on interstate highway 29 until its intersection with the centerline of twelfth avenue north, then east on twelfth avenue until its intersection with the centerline of United States highway 81, also identified as university drive, then south on United States highway 81 until its intersection with the centerline of seventh avenue north, then east on seventh avenue until its intersection with the centerline of tenth street, then south on tenth street until its intersection with the centerline of sixth avenue north, then east on sixth avenue until its intersection with the centerline of broadway drive, then south on broadway drive until its intersection with the centerline of the BNSF Railway Company right of way, then east on the BNSF Railway Company right of way until its intersection with the centerline of the Red River, then south on the Red River to the point of beginning.
  22. District 22 consists of all of Cass County except those portions contained in Districts 11, 13, 16, 20, 21, 24, 25, 27, 41, 44, 45, and 46.
  23. District 23 consists of all of Eddy County, Griggs County, Nelson County, and Steele County; and all of Benson County except that portion contained in District 14.
  24. District 24 consists of all of Barnes County; Hill, Clifton, Eldred, Walburg, Pontiac, Highland, and Watson Townships in Cass County; all of Tower Township in Cass County, except for that portion included within the city of Buffalo; and Northland, Preston, Moore, Liberty, Greene, Coburn, Fort Ransom, Springer, Tuller, Hanson, Elliott, and Isley Townships in Ransom County.
  25. District 25 consists of Walcott, Eagle, Abercrombie, Ibsen, Dwight, Mooreton, Center, Brandenburg, Summit, Waldo, Devillo, Fairmount, Greendale, and LaMars Townships in Richland County; the city of Hankinson in Richland County; and Normanna and Pleasant Townships in Cass County.
  26. District 26 consists of all of Sargent County; all of Richland County except that portion contained in District 25; all of Ransom County except those portions contained in Districts 24 and 29; and Porter, Wright, James River Valley, Divide, Maple, Yorktown, Clement, Bear Creek, Kentner, Kent, Hudson, Riverdale, Van Meter, Ada, Port Emma, and Lovell Townships in Dickey County.
  27. District 27 consists of all of the cities of Frontier and Briarwood in Cass County; and that part of Stanley Township and the cities of Fargo and Horace in Cass County bound by a line commencing at the intersection of an extended straight line of the centerline of sixty-fourth avenue south and the centerline of the Red River, then west on sixty-fourth avenue until its intersection with the centerline of Cass County drain number fifty-three, then north on Cass County drain number fifty-three until its intersection with the centerline of fifty-second avenue south, then west on fifty-second avenue until its intersection with the centerline of interstate highway 29, then north on interstate highway 29 until its intersection with the centerline of business interstate highway 94, also identified as main avenue, then west on business interstate highway 94 until its intersection with the centerline of forty-second street, then south on forty-second street until its intersection with the centerline of thirteenth avenue, then west on thirteenth avenue until its intersection with the centerline of forty-fifth street, then south on forty-fifth street until its intersection with the centerline of thirty-second avenue, then west on thirty-second avenue until its intersection with the centerline of veterans boulevard, then south on veterans boulevard and fifty-seventh street until its intersection with the centerline of one hundred twenty-fourth avenue south, then east on one hundred twenty-fourth avenue and an extended straight line until its intersection with the centerline of the Red River, then north on the Red River to the point of beginning.
  28. District 28 consists of all of Emmons County, Logan County, and McIntosh County; all of Dickey County except that portion contained in District 26; all of Burleigh County except those portions contained in Districts 7, 8, 30, 32, 35, and 47; and Swede, Ray, Nora, Norden, Pomona View, and Golden Glen Townships in LaMoure County.
  29. District 29 consists of all of Foster County; all of Stutsman County except that portion contained in District 12; and all of LaMoure County except that portion contained in District 28.
  30. District 30 consists of that part of the city of Bismarck and Lincoln-Fort Rice unorganized township in Burleigh County bound by a line commencing at the centerline of east rosser avenue and the centerline of ninth street, then east on rosser avenue until its intersection with the centerline of eleventh street, then south on eleventh street until its intersection with the centerline of thayer avenue, then east on thayer avenue until its intersection with the centerline of sixteenth street, then north on sixteenth street until its intersection with the centerline of rosser avenue, then east on rosser avenue until its intersection with the centerline of seventeenth street, then south on seventeenth street until its intersection with the centerline of thayer avenue, then east on thayer avenue until its intersection with the centerline of nineteenth street, then south on nineteenth street until its intersection with the centerline of broadway avenue, then east on broadway avenue until its intersection with the centerline of airport road, then south on airport road until its intersection with the centerline of university drive, then west on university drive until its intersection with the centerline of twelfth street, then south on twelfth street until its intersection with the centerline of burleigh avenue, then west on burleigh avenue until its intersection with the centerline of washington street, then north on washington street until its intersection with the southeast corner of the northeast quarter of section 8 of Township 138-80, then west on a straight line following the quarter section line to the southwest corner of the northeast quarter of section 8 of Township 138-80, then north on a straight line following the quarter section line until its intersection with the centerline of Bismarck expressway, then west on Bismarck expressway until its intersection with the centerline of the Missouri River, then south on the Missouri River until its intersection with an extended line from the centerline of desert road, then north on a straight line extended from desert road and on desert road until its intersection with the centerline of forty-first street southeast, then northeast on forty-first street until its intersection with the centerline of state highway 1804, also identified as eighty-ninth avenue southeast, then east on state highway 1804 and eighty-ninth avenue until its intersection with the centerline of fifty-second street, then north on fifty-second street and an extended straight line until its intersection with the Lincoln city limit north of lincoln road, then west, north, and east on the Lincoln city limit until its intersection with a straight line extended from the centerline of fifty-second street, then north on the straight line extended from fifty-second street until its intersection with old highway 10, also identified as apple creek road, then west on old highway 10 until its intersection with fifty-second street, then north on fifty-second street until its intersection with the centerline of county highway 10, then west on county highway 10 until its intersection with the centerline of Bismarck expressway, then north on Bismarck expressway until its intersection with the centerline of divide avenue, then west and southwest on divide avenue until its intersection with the centerline of channel drive, then south on channel drive until its intersection with the centerline of divide avenue, then west on divide avenue until its intersection with the centerline of twenty-sixth street, then south on twenty-sixth street until its intersection with the centerline of boulevard avenue, then west and south on boulevard avenue until its intersection with the centerline of nineteenth street, then south on an extended straight line from nineteenth street until its intersection with the centerline of avenue e, then west on avenue e until its intersection with the centerline of ninth street, then south on ninth street to the point of beginning.
  31. District 31 consists of all of Grant County and Sioux County; all of Hettinger County except that portion contained in District 36; and that part of the city of Mandan and Morton County bound by a line commencing at the intersection of the east boundary of Township 139-84 and the centerline of interstate highway 94, then east on interstate highway 94 until its intersection with the centerline of an extended straight line from twenty-fifth avenue in Mandan unorganized township, then north on twenty-fifth avenue until its intersection with the centerline of thirty-seventh street, then east on thirty-seventh street until its intersection with the centerline of highland road, then south on highland road until its intersection with the Mandan city limit, then south and east on the city limit until its intersection with the centerline of the Missouri River, then south on the Missouri River until its intersection with the centerline of business interstate highway 94, then north and west on business interstate highway 94 until its intersection with the centerline of main street, then east on main street until its intersection with the centerline of the BNSF Railway Company right of way, then north on the BNSF Railway Company right of way until its intersection with the extended centerline of fourth street, then west on the extended centerline of fourth street until its intersection with the centerline of Mandan avenue, then north and west on Mandan avenue until its intersection with the centerline of interstate highway 94, then west on interstate highway 94 until its intersection with the centerline of collins avenue, then south on collins avenue until its intersection with the centerline of fourteenth street northwest, then west on fourteenth street until its intersection with the centerline of sunset drive, then south on sunset drive until its intersection with the centerline of division street, then west on division street and an extended straight line following the north boundary of section 28 of Township 139-81 until the west boundary of section 28, then south on the west boundary of section 28 until the midpoint of the west boundary of section 28, then east from the midpoint of the west boundary of section 28 to the midpoint of section 28, then south along the midpoint of section 28 until its intersection with the centerline of business interstate highway 94, then west on business interstate highway 94 until its intersection with the centerline of fifteenth avenue southwest, then south on fifteenth avenue until its intersection with the centerline of sunny road, then west on sunny road to the west boundary of the youth correctional center, then south on the west boundary of the youth correctional center to the south boundary of the youth correctional center, then east on the south boundary of the youth correctional center until its intersection with the Mandan city limit, then following the city limit south and east until the city limit intersects the centerline of tenth avenue southeast, then south on tenth avenue until its intersection with the centerline of buckskin road, then south on buckskin road until its intersection with the centerline of percheron drive, then north on percheron drive until its intersection with the centerline of fourteenth avenue, then north on fourteenth avenue until its intersection with the Mandan city limit, then east, south, east, north, and west on the Mandan city limit until its intersection with the centerline of nineteenth street, then east on nineteenth street until its intersection with the centerline of Fort McKeen road, then south on Fort McKeen road and state highway 1806 until its intersection with the centerline of forty-seventh street, also identified as county highway 138A, then east on county highway 138A and an extended line until its intersection with the centerline of the Missouri River, then south on the Missouri River to the south boundary of Morton County, then following the Morton County line west, south, and north until its intersection with the southwest corner of section 33 of Township 137-84, then east along the south boundaries of sections 33 and 34, then north along the east boundaries of sections 34 and 27, then east along the south boundaries of sections 23 and 24, then north along the east boundaries of Townships 137-84, 138-84, and 139-84 to the point of beginning.
  32. District 32 consists of that part of the city of Bismarck and Lincoln-Fort Rice unorganized township in Burleigh County bound by a line commencing at the centerline of rosser avenue and the centerline of ninth street, then west on rosser avenue until its intersection with the centerline of eleventh street, then south on eleventh street until its intersection with the centerline of thayer avenue, then east on thayer avenue until its intersection with the centerline of sixteenth street, then north on sixteenth street until its intersection with the centerline of rosser avenue, then east on rosser avenue until its intersection with the centerline of seventeenth street, then south on seventeenth street until its intersection with the centerline of thayer avenue, then east on thayer avenue until its intersection with the centerline of nineteenth street, then south on nineteenth street until its intersection with the centerline of broadway avenue, then east on broadway avenue until its intersection with the centerline of airport road, then south on airport road until its intersection with the centerline of university drive, then west on university drive until its intersection with the centerline of twelfth street, then south on twelfth street until its intersection with the centerline of burleigh avenue, then west on burleigh avenue until its intersection with the centerline of washington street, then north on washington street until its intersection with the southeast corner of the northeast quarter of section 8 of Township 138-80, then west on a straight line following the quarter section line to the southwest corner of the northeast quarter of section 8 of Township 138-80, then north on a straight line following the quarter section line until its intersection with the centerline of Bismarck expressway, then west on Bismarck expressway until its intersection with the centerline of the Missouri River, then north on the Missouri River until its intersection with the centerline of main avenue, then east on main avenue until its intersection with the centerline of rosser avenue, then east on rosser avenue until its intersection with the centerline of bell street, then north on bell street until its intersection with the centerline of avenue c, then east on avenue c until its intersection with the centerline of griffin street, then north on griffin street and an extended straight line until its intersection with the centerline of the Bismarck park district bike trail, then east on the Bismarck park district bike trail and an extended straight line until its intersection with the centerline of washington street, then south on washington street until its intersection with the centerline of avenue c, then east on avenue c until its intersection with the centerline of first street, then south on first street until its intersection with the centerline of broadway avenue, then east on broadway avenue until its intersection with the centerline of ninth street, then north on ninth street to the point of beginning.
  33. District 33 consists of all of Oliver County; all of Mercer County except that portion contained in District 4; and all of Morton County except that portion contained in Districts 31, 34, and 36.
  34. District 34 consists of that part of the city of Mandan and that part of Mandan unorganized township bound by a line commencing at the intersection of the centerline of business interstate highway 94 and the centerline of fifteenth avenue southwest, then south on fifteenth avenue until its intersection with the centerline of sunny road, then west on sunny road to the west boundary of the youth correctional center, then south on the west boundary of the youth correctional center to the south boundary of the youth correctional center, then east on the south boundary of the youth correctional center until its intersection with the Mandan city limit, then following the city limit south and east until the city limit intersects the centerline of tenth avenue southeast, then south on tenth avenue until its intersection with the centerline of buckskin road, then south on buckskin road until its intersection with the centerline of percheron drive, then north on percheron drive until its intersection with the centerline of fourteenth avenue, then north on fourteenth avenue until its intersection with the Mandan city limit, then east, south, east, north, and west on the Mandan city limit until its intersection with the centerline of nineteenth street, then east on nineteenth street until its intersection with the centerline of Fort McKeen road, then south on Fort McKeen road and state highway 1806 until its intersection with the centerline of forty-seventh street, also identified as county highway 138A, then east on county highway 138A and an extended line until its intersection with the centerline of the Missouri River, then north on the Missouri River until its intersection with the centerline of business interstate highway 94, then north and west on business interstate highway 94 until its intersection with the centerline of main street, then east on main street until its intersection with the centerline of the BNSF Railway Company right of way, then north on the BNSF Railway Company right of way until its intersection with the centerline of fourth street, then west on the extended centerline of fourth street until its intersection with the centerline of mandan avenue, then north and west on mandan avenue until its intersection with the centerline of interstate highway 94, then west on interstate highway 94 until its intersection with the centerline of collins avenue, then south on collins avenue until its intersection with the centerline of fourteenth street northwest, then west on fourteenth street until its intersection with the centerline of sunset drive, then south on sunset drive until its intersection with the centerline of division street, then west on division street and an extended straight line following the north boundary of section 28 of Township 139-81 until the west boundary of section 28, then south on the west boundary of section 28 until the midpoint of the west boundary of section 28, then east along the midpoint of the west boundary of section 28 to the midpoint of section 28, then south along the midpoint of section 28 until its intersection with the centerline of business interstate highway 94, then west on business interstate highway 94 to the point of beginning.
  35. District 35 consists of that part of the city of Bismarck and that part of Hay Creek Township in Burleigh County bound by a line commencing at the intersection of the centerline of broadway avenue and the centerline of ninth street, then west on broadway avenue until its intersection with the centerline of first street, then north on first street until its intersection with the centerline of avenue c, then west on avenue c until its intersection with the centerline of washington street, then north on washington street until its intersection with the extended centerline of the Bismarck park district bike trail, then west on the Bismarck park district bike trail until its intersection with the extended centerline of griffin street, then south on griffin street until its intersection with the centerline of avenue c, then west on avenue c until its intersection with the centerline of bell street, then south on bell street until its intersection with the centerline of rosser avenue, then west on rosser avenue until its intersection with the centerline of main avenue, then west on main avenue until its intersection with the centerline of the Missouri River, then north on the Missouri River until its intersection with the centerline of interstate highway 94, then east on interstate highway 94 until its intersection with the centerline of divide avenue, then south and east on divide avenue until its intersection with the centerline of washington street, then north on washington street until its intersection with the centerline of interstate highway 94, then east on interstate highway 94 until its intersection with the centerline of Bismarck expressway, then south on Bismarck expressway until its intersection with the centerline of divide avenue, then west and southwest on divide avenue until its intersection with the centerline of channel drive, then south on channel drive until its intersection with the centerline of divide avenue, then west on divide avenue until its intersection with the centerline of twenty-sixth street, then south on twenty-sixth street until its intersection with the centerline of boulevard avenue, then west and south on boulevard avenue until its intersection with the centerline of nineteenth street, then south on an extended straight line from nineteenth street until its intersection with the centerline of avenue e, then west on avenue e until its intersection with the centerline of ninth street, then south on ninth street to the point of beginning.
  36. District 36 consists of all of Stark County except that portion contained in District 37; all of Dunn County except those portions contained in Districts 4 and 39; Kunze, Clark, Rifle, Madison, Campbell, New England, Havelock, Black Butte, St. Croix, Acme, Strehlow, Tepee Butte, Alden, Kennedy, and Wagendorf Townships and Indian Creek Township, except for the city of Regent, in Hettinger County; and that part of Morton County bound by a line commencing at the centerline of state highway 49 and the north boundary of Morton County, then west on the Morton County line to the west boundary of Morton County, then south on the west boundary of Morton County to the south boundary of Morton County, then east on the south boundary of Morton County and continuing east on an extended centerline of forty-eighth street until its intersection with the centerline of county road 87, then north on county road 87 until its intersection with the southwest corner of section 8 of Township 138-87, then east along the south boundary of section 8 of Township 138-87 to the southeast corner of section 8, then north along the east boundaries of sections 8 and 5 of Township 138-87 to the southwest corner of section 33 of Township 139-87, then east along the south boundaries of sections 33 and 34 to the southwest corner of section 35 of Township 139-87, then south along the west boundary of section 2 of Township 138-87 to the southwest corner of section 2, then east along the south boundary of section 2 to the midpoint of that section, then north through the center of section 2 to the midpoint of the north boundary of section 2, then east along the north boundary of section 2 to the northeast corner of section 2, then north along the west boundaries of sections 36, 25, and 24 of Township 139-87 to the northwest corner of section 24, then east along the north boundary of section 24 to the northeast corner of section 24, then north along the east boundary of section 13 of Township 139-87 to the centerline of interstate highway 94, then east on interstate highway 94 to its intersection with the centerline of county highway 86, then north on county highway 86 to the north boundary of Morton County, then west along the north boundary of Morton County to the point of beginning.
  37. District 37 consists of that part of the city of Dickinson and adjacent unorganized territory in Stark County bound by a line commencing at the intersection of the centerline of broadway and the centerline of state avenue, then north on state avenue until its intersection with the centerline of business interstate highway 94, then west on business interstate highway 94 until its intersection with the centerline of twenty-third avenue, then north on twenty-third avenue until its intersection with the centerline of tenth street, also identified as empire road, then east on tenth street until its intersection with the centerline of state avenue, then north on state avenue until its intersection with the centerline of thirty-fourth street, then east on thirty-fourth street until its intersection with the centerline of tenth avenue east, then south on tenth avenue until its intersection with the centerline of interstate highway 94, then east on interstate highway 94 until its intersection with the centerline of twenty-fifth avenue, then south on twenty-fifth avenue until its intersection with the centerline of villard street, then west on villard street until its intersection with the centerline of tenth avenue east, then south on tenth avenue until its intersection with the centerline of the BNSF Railway Company right of way, then west on the BNSF Railway Company right of way until its intersection with the centerline of broadway, then south and west on broadway to the point of beginning.
  38. District 38 consists of all of St. Marys, Foxholm, Kirkelie, Des Lacs, Burlington, Rolling Green, Burt, and Afton Townships in Ward County; and those parts of Eureka, Harrison, and Waterford Townships and that part of the city of Minot not contained in Districts 3, 5, and 40.
  39. District 39 consists of all of Adams County, Billings County, Bowman County, Golden Valley County, and Slope County; that part of Dunn County bound by a line commencing at the intersection of the Fort Berthold reservation boundary and the north boundary of Dunn County, then south on the reservation boundary until its intersection with the centerline of the Little Missouri River, then south and east on the centerline of the Little Missouri River until its intersection with the west boundary of Township 147-94, then south on the west boundary of Townships 147-94, 146-94, and 145-94 until the intersection of the west boundary of Township 145-94 and the centerline of state highway 200, then west on state highway 200 until its intersection with the Dunn County boundary, then north and east to the point of beginning; and all of McKenzie County except that portion contained in District 4.
  40. District 40 consists of all of Margaret, Maryland, McKinley, and Tatman Townships in Ward County; that part of Waterford Township and the Minot air force base bound by a line commencing at the intersection of the east boundary of Waterford Township and the centerline of bomber boulevard, then northwest on bomber boulevard until its intersection with the centerline of peacekeeper place, then northeast on peacekeeper place until its intersection with the east boundary of Waterford Township, and then south on the east boundary of Waterford Township to the point of beginning; and those parts of Eureka, Harrison, and Nedrose Townships, and that part of the city of Minot bound by a line commencing at the intersection of the centerline of the canadian pacific railway right of way and the centerline of sixth street, then north on sixth street until its intersection with the centerline of central avenue, then west on central avenue until its intersection with the centerline of eighth street, then north on eighth street until its intersection with the centerline of first avenue, then west on first avenue until its intersection with the centerline of tenth street, then north on tenth street until its intersection with the centerline of fourth avenue, then west on fourth avenue until its intersection with the centerline of sixteenth street, then north on sixteenth street until its intersection with the centerline of twenty-first avenue, then west on twenty-first avenue and an extended straight line until its intersection with the centerline of thirtieth street in Harrison Township, then north on thirtieth street continuing through Eureka Township to the north boundary of Eureka Township, also identified as one hundred twenty-eighth avenue, then east and south on the boundary of Eureka Township until its intersection with the northwest corner of Nedrose Township, then east on the north boundary of Nedrose Township until its intersection with the centerline of twenty-seventh street, then south on twenty-seventh street until its intersection with an extended line from the centerline of nineteenth avenue, then west on nineteenth avenue until its intersection with the centerline of third street, then south on third street until its intersection with the centerline of eleventh avenue northeast, then west on eleventh avenue until its intersection with the centerline of broadway, then south on broadway until its intersection with the centerline of the BNSF Railway Company right of way, then south and west on the BNSF Railway Company right of way until its intersection with the centerline of the canadian pacific railway right of way, then west on the canadian pacific railway right of way to the point of beginning.
  41. District 41 consists of the city of Prairie Rose and that part of the city of Fargo in Cass County bound by a line commencing at the intersection of the centerline of interstate highway 29 and the centerline of fifty-second avenue south, then east on fifty-second avenue until its intersection with the centerline of twenty-fifth street, then north on twenty-fifth street until its intersection with the centerline of thirty-second avenue south, then east on thirty-second avenue until its intersection with the centerline of twenty-second street, then north on twenty-second street until its intersection with the centerline of thirtieth avenue south, then east on thirtieth avenue until its intersection with the centerline of eighteenth street, then north and northwest on eighteenth street until its intersection with the centerline of twenty-fifth street, then north on twenty-fifth street until its intersection with the centerline of seventeenth avenue south, then west on seventeenth avenue until its intersection with the centerline of interstate highway 29, then south on interstate highway 29 to the point of beginning.
  42. District 42 consists of that part of the city of Grand Forks in Grand Forks County bound by a line commencing at the intersection of the centerline of gateway drive and the centerline of fifty-fifth street, then east on gateway drive until its intersection with the centerline of twentieth street, then south on twentieth street until its intersection with the centerline of sixth avenue north, then east on sixth avenue until its intersection with the centerline of sixteenth street, then south on sixteenth street until its intersection with the centerline of the BNSF Railway Company right of way, then west on the BNSF Railway Company right of way until its intersection with the centerline of fifty-fifth street, then north on fifty-fifth street to the point of beginning.
  43. District 43 consists of that part of Grand Forks Township and that part of the city of Grand Forks in Grand Forks County bound by a line commencing at the intersection of the centerline of washington street and the centerline of thirty-second avenue south, then west on thirty-second avenue until its intersection with the centerline of forty-second street, then north on forty-second street until its intersection with the centerline of the BNSF Railway Company right of way, then east on the BNSF Railway Company right of way until its intersection with an extended line from the centerline of twentieth street, then south on twentieth street until its intersection with the centerline of twentieth avenue south, then east on twentieth avenue until its intersection with the centerline of library circle, then south and east on library circle until its intersection with the centerline of washington street, then south on washington street to the point of beginning.
  44. District 44 consists of that part of the city of Fargo in Cass County bound by a line commencing at the intersection of the extended centerline of thirty-second avenue north and the centerline of the Red River, then west on thirty-second avenue until its intersection with the centerline of eighth street, then south on eighth street until its intersection with the centerline of twenty-eighth avenue north, then west on twenty-eighth avenue until its intersection with the centerline of ninth street, then south on ninth street until its intersection with the centerline of nineteenth avenue north, then west on nineteenth avenue until its intersection with the centerline of tenth street, then south on tenth street until its intersection with the centerline of seventeenth avenue north, then east on seventeenth avenue until its intersection with the centerline of ninth street, then south on ninth street until its intersection with the centerline of thirteenth avenue north, then west on thirteenth avenue until its intersection with the centerline of United States highway 81, also identified as university drive, then south on United States highway 81 until its intersection with the centerline of seventh avenue north, then east on seventh avenue until its intersection with the centerline of tenth street, then south on tenth street until its intersection with the centerline of sixth avenue north, then east on sixth avenue until its intersection with the centerline of broadway drive, then south on broadway drive until its intersection with the centerline of the BNSF Railway Company right of way, then east on the BNSF Railway Company right of way until its intersection with the centerline of the Red River, then north on the Red River to the point of beginning.
  45. District 45 consists of Berlin, Gardner, Harwood, and Wiser Townships and that part of the cities of Fargo and West Fargo and Reed Township in Cass County bound by a line commencing at the intersection of the extended centerline of thirty-second avenue north and the centerline of the Red River, then west on thirty-second avenue north until its intersection with the centerline of eighth street, then south on eighth street until its intersection with the centerline of twenty-eighth avenue north, then west on twenty-eighth avenue until its intersection with the centerline of ninth street, then south on ninth street until its intersection with the centerline of nineteenth avenue north, then west on nineteenth avenue until its intersection with the centerline of tenth street, then south on tenth street until its intersection with the centerline of seventeenth avenue north, then east on seventeenth avenue until its intersection with the centerline of ninth street, then south on ninth street until its intersection with the centerline of thirteenth avenue north, then west on thirteenth avenue until its intersection with the centerline of United States highway 81, also identified as university drive, then south on United States highway 81 until its intersection with the centerline of twelfth avenue north, then west on twelfth avenue until its intersection with the centerline of interstate highway 29, then south on interstate highway 29 until its intersection with the centerline of business interstate highway 94, also identified as main avenue, then west on business interstate highway 94 until its intersection with the centerline of the Sheyenne River, then north on the Sheyenne River until its intersection with the centerline of twelfth avenue northwest, then west on twelfth avenue until its intersection with the west boundary of Reed Township, also identified as fourteenth street, then north on the west boundary of Reed Township to the north boundary of Reed Township, also identified as seventy-sixth avenue and Cass County highway 22, then east on the north boundary of Reed Township until its intersection with the centerline of the Red River, then south on the Red River to the point of beginning.
  46. District 46 consists of that part of the city of Fargo and Stanley Township in Cass County bound by a line commencing at the intersection of the extended centerline of sixty-fourth avenue south and the centerline of the Red River, then west on sixty-fourth avenue until its intersection with the centerline of Cass County drain number fifty-three, then north on Cass County drain number fifty-three until its intersection with the centerline of fifty-second avenue south, then east on fifty-second avenue until its intersection with the centerline of twenty-fifth street, then north on twenty-fifth street until its intersection with the centerline of thirty-second avenue south, then east on thirty-second avenue until its intersection with the centerline of twenty-second street, then north on twenty-second street until its intersection with the centerline of thirtieth avenue south, then east on thirtieth avenue until its intersection with the centerline of eighteenth street, then north on eighteenth street until its intersection with the centerline of twenty-fifth avenue south, then east on twenty-fifth avenue until its intersection with the centerline of United States highway 81, also identified as university drive, then north on United States highway 81 until its intersection with the centerline of interstate highway 94, then east on interstate highway 94 to the centerline of the Red River, then south on the Red River to the point of beginning.
  47. District 47 consists of that part of the city of Bismarck and that part of Hay Creek Township in Burleigh County bound by a line commencing at the intersection of the centerline of state highway 1804, also identified as river road, and the centerline of interstate highway 94, then east on interstate highway 94 until its intersection with the centerline of divide avenue, then south and east on divide avenue until its intersection with the centerline of washington street, then north on washington street until its intersection with the centerline of interstate highway 94, then east on interstate highway 94 until its intersection with the centerline of United States highway 83, then north on United States highway 83 until its intersection with the centerline of forty-third avenue, then west on forty-third avenue until its intersection with the centerline of washington street, also identified as third street northwest, then north on washington street until its intersection with the centerline of fifty-seventh avenue north, then west on fifty-seventh avenue and an extended straight line until its intersection with the centerline of state highway 1804, then south on state highway 1804 until the point of beginning.

Source:

S.L. 2011 Sp., ch. 582, § 1.

Note.

Section 5 of chapter 582, S.L. 2011 Sp. provides “ LEGISLATIVE INTENT — BOUNDARIES. It is the intent of the legislative assembly that although this Act is effective on November 25, 2011, the members of the legislative assembly elected under the redistricting plan effective on November 24, 2011, shall continue to serve until implementation of this Act. Any reference in the legislative district descriptions to a city limit or the Fort Berthold reservation boundary as a boundary line refers to the limit or boundary as it existed on January 1, 2010, as shown on the 2010 census maps. A legislative district boundary using the Fort Berthold reservation or city limit lines does not migrate as the Fort Berthold reservation boundary or city limits migrate. For purposes of legislative district descriptions, unless cities are otherwise specifically named, townships encompass all the territory within their outer boundaries.”

54-03-01.13. Staggering of terms of members of the legislative assembly.

  1. A senator and two representatives must be elected from each even-numbered district in 2012 for a term of four years.
  2. A senator and two representatives must be elected from each odd-numbered district in 2014 for a term of four years. However, a senator and two representatives from district seven must be elected in 2012 for a term of two years.
  3. Except as provided in subsection 4, the term of office of a member of the legislative assembly elected in an odd-numbered district in 2010 for a term of four years and who as a result of legislative redistricting is placed in an even-numbered district terminates December 1, 2012.
  4. A member of the legislative assembly who was elected from an odd-numbered district in 2010 for a term of four years and who as a result of legislative redistricting is placed in an even-numbered district may continue to serve the remainder of the term for which the member was elected beyond December 1, 2012, if the member changes the member’s place of residence to a location in the odd-numbered district which is within the geographic area of the odd-numbered district from which the member was elected by March 15, 2012, and certifies in writing to the secretary of state and the chairman of the legislative management that the member has established a new residence in that district as determined by section 54-01-26. If the member does not establish residency within the district from which the member was elected by March 15, 2012, the term of office of that member terminates on December 1, 2012.
  5. The term of office of a member of the legislative assembly in an odd-numbered district with new geographic area that was not in that member’s district for the 2010 election and which new geographic area has a 2010 population that is more than twenty-five percent of the ideal district population terminates on December 1, 2012.

Source:

S.L. 2011 Sp., ch. 582, § 2; 2021, ch. 327, § 4, eff August 1, 2021.

Notes to Decisions

Constitutionality.

Senate terms can be truncated when reasonably necessary to accomplish another constitutional mandate despite the requirement of N.D. Const. Art. IV, § 4, that a senator’s term be for four years; but the portion of this section allowing an incumbent state senator to decide whether to stop an election for state senator constitutes an impermissible delegation of legislative power. Kelsh v. Jaeger, 2002 ND 53, 641 N.W.2d 100, 2002 N.D. LEXIS 52 (N.D. 2002) (decided under former N.D.C.C. § 54-03-01.8).

Collateral References.

Construction and Application of Elections Clause of United States Constitution, U.S. Const. Art. I, § 4, cl.1, and State Constitutional Provisions Concerning Congressional Elections, 34 A.L.R.6th 643.

54-03-02. When legislative assembly meets.

  1. The legislative assembly shall meet at the seat of government in the month of December following the election of the members thereof for organizational and orientation purposes and shall thereafter recess until the time provided in subsection 2.
  2. The legislative assembly shall reconvene at twelve noon on the first Tuesday after the third day in January of the year following the organizational session as provided in subsection 1 or at twelve noon on a date selected by the legislative management but not earlier than January second nor later than January eleventh of the year following the organizational session and, following the close of business of the regular session, shall adjourn subject to subsection 3.
  3. Notwithstanding a motion to adjourn sine die, the legislative assembly shall reconvene as determined by the legislative management. The number of natural days used may not exceed the number of natural days available under the constitution which have not been previously used by that legislative assembly in regular session under subsection 2.

Source:

N.D. Const., § 53; R.C. 1895, § 20; R.C. 1899, § 20; R.C. 1905, § 20; C.L. 1913, § 26; R.C. 1943, § 54-0302; S.L. 1969, ch. 427, § 2; 1973, ch. 408, § 1; 1979, ch. 534, § 1; 1987, ch. 259, § 10; 1995, ch. 494, § 1; 2009, ch. 482, § 37.

54-03-02.1. Definitions.

For the purposes of this chapter and chapter 54-03.1:

  1. “Organizational session” means the meeting of the legislative assembly for organizational and orientation purposes held during the month of December in the even-numbered years.
  2. “Regular session” means the legislative session commencing in January of the odd-numbered years and includes any reconvened legislative session, as provided in section 54-03-02.

Source:

S.L. 1969, ch. 427, § 1; 1979, ch. 534, § 2; 1995, ch. 494, § 2.

54-03-02.2. Virtual session of the legislative management and legislative assembly during emergency or disaster.

  1. If the legislative management meets to vote on whether the legislative management should request the governor call a special session of the legislative assembly, the legislative management may use any technology or electronic means available to conduct meetings and transact legislative business.
  2. If the governor calls a special session of the legislative assembly to address a state of emergency or disaster or if the legislative assembly reconvenes to address a state of emergency or disaster, the legislative assembly may use any technology or electronic means available to conduct meetings and transact legislative business.
  3. For purposes of section 7 of article IV of the Constitution of North Dakota, a meeting of the legislative assembly which occurs under this section is deemed to have occurred at the seat of the government, and all actions taken during the meeting have the same legal effect as if the members of the legislative assembly were physically present at the seat of government.

Source:

S.L. 2021, ch. 191, § 4, eff April 22, 2021.

54-03-03. Secretary of senate and chief clerk of house to receive certifications and to make roll of members — Certificates filed.

At the opening of each organizational session, reconvened session, or special session of the legislative assembly, the secretary of state shall certify to the secretary of the senate and the chief clerk of the house of representatives the respective members to whom certificates of election have been issued or whose appointments have been filed with the secretary of state under applicable provisions of law since the preceding session of the legislative assembly. The secretary of the senate and chief clerk of the house of representatives shall file the certifications and copies of the certificates of election or appointment, and the certifications and copies of the certificates of election or appointment are prima facie evidence of the right to membership in the respective branch of the legislative assembly of the person certified therein. The secretary of state shall also certify to the secretary of the senate and the chief clerk of the house of representatives the respective members who served in the preceding session of the legislative assembly and whose terms have not expired. After the certifications are received, the secretary of the senate and the chief clerk of the house of representatives shall call and make a correct roll of the names of those respective members who have been certified by the secretary of state. The provisions of this section may not be construed to infringe on the right of each house to be the judge of the qualifications of its members.

Source:

Pol. C. 1877, ch. 2, § 14; R.C. 1895, § 21; R.C. 1899, § 21; R.C. 1905, § 21; C.L. 1913, § 27; R.C. 1943, § 54-0303; S.L. 1969, ch. 427, § 3; 2003, ch. 457, § 1.

54-03-04. Organizational session — Calling to order — Officers — Term of office — Officers and chairmen to remain in office during special session.

The secretary and officers of the senate and chief clerk and officers of the house serving at the close of a regular session, unless otherwise removed, shall remain in office until the first day of the organizational session. On the first day of the organizational session, at a time scheduled by the legislative management pursuant to section 54-03.1-02, the president of the senate and the speaker of the house from the previous session, if re-elected, or in the speaker’s absence a member of the majority party of the house with seniority based upon terms of service in the house, shall call the members of their respective houses so enrolled to order. In the absence of the president of the senate, the president pro tempore shall call the members of the senate to order. In the absence of both the president of the senate and the president pro tempore, then some member or other person selected by the members present shall call the members of the senate to order. If the speaker of the house from the previous session is not re-elected and if no party has a majority in the house, the member of the house with seniority based upon terms of service in the house shall call the house to order. If two or more members of the house are tied for seniority and seniority is a factor in determining who shall call the house to order, the persons so tied for seniority shall draw lots to determine who shall call the house to order. The members of the respective houses then may proceed to the election of the necessary officers. The secretary and officers of the senate and chief clerk and officers of the house of representatives, and the chairmen of all procedural and substantive standing legislative committees shall continue to serve in those positions during any special legislative session which may be called, except in case of the death, resignation, or removal of one of those persons, whereupon the position must be filled, upon the convening of the special session, in the manner provided by law or legislative rule. Members serving on procedural or substantive standing committees of the senate or house during a regular session shall continue to serve on those committees during any special legislative session which may be called following that regular session.

Source:

Pol. C. 1877, ch. 2, § 15; R.C. 1895, § 22; R.C. 1899, § 22; R.C. 1905, § 22; C.L. 1913, § 28; R.C. 1943, § 54-0304; S.L. 1969, ch. 427, § 4; 1971, ch. 486, § 1; 1979, ch. 535, § 1; 2009, ch. 482, § 38.

54-03-05. Who to administer oath of office to members and officers of the legislative assembly.

The following persons may administer the oath of office to the members and officers of the legislative assembly:

  1. The speaker of the house of representatives.
  2. The president of the senate.
  3. The governor.
  4. A judge of the supreme court.
  5. A judge of the district court.

Source:

Pol. C. 1877, ch. 2; § 6; R.C. 1895, § 25; R.C. 1899, § 25; R.C. 1905, § 25; C.L. 1913, § 31; R.C. 1943, § 54-0305.

54-03-06. Chairman of committee may administer oath.

Any member of a committee or interim committee of the legislative assembly, while acting as chairman of such committee, may administer oaths to such persons as shall be examined before the committee of which the chairman is a member.

Source:

Pol. C. 1877, ch. 2, § 8; R.C. 1895, § 26; R.C. 1899, § 26; R.C. 1905, § 26; C.L. 1913, § 32; R.C. 1943, § 54-0306; S.L. 1965, ch. 339, § 1.

54-03-07. Qualifications of members — Each house to judge.

If the qualifications of any member of either house of the legislative assembly are challenged, the right of that member to a seat must be determined by the house in which that person claims a seat as a member, except an election contest must be determined in accordance with chapter 16.1-16.

Source:

Pol. C. 1877, ch. 2, § 9; R.C. 1895, § 27; R.C. 1899, § 27; R.C. 1905, § 27; C.L. 1913, § 33; R.C. 1943, § 54-0307; S.L. 1987, ch. 259, § 11.

54-03-08. Selection of officers and employees of legislative assembly.

The senate at the beginning and close of each regular session, and at such other times as may be necessary, shall elect one of its members president pro tempore. The house of representatives shall elect one of its members as speaker. Such other officers and employees as are deemed necessary must be elected or appointed by the respective houses.

Source:

Pol. C. 1877, ch. 2, § 11; S.L. 1893, ch. 97, §§ 1, 2; 1895, ch. 76, § 1; R.C. 1895, §§ 28, 29; S.L. 1897, ch. 27, § 1; 1899, ch. 39, § 1; 1899, ch. 104, §§ 1, 2; R.C. 1899, §§ 28, 29; S.L. 1901, ch. 117, § 1; R.C. 1905, §§ 28, 29; S.L. 1907, ch. 164, § 1; C.L. 1913, §§ 34, 36; S.L. 1935, ch. 212, § 1; R.C. 1943, § 54-0308; S.L. 1951, ch. 304, § 1; 1957 Supp., § 54-0308.

DECISIONS UNDER PRIOR LAW

Independent Action Precluded.

A legislative enactment, expressing the legislative power of the legislative assembly concerning the selection of employees of each house and its expenses, was paramount to the independent action of either house without the concurrence of the other. State ex rel. Wattam v. Poindexter, 48 N.D. 135, 183 N.W. 852 (1921).

54-03-09. Oath of officers.

The officers of each house of the legislative assembly must be required to take and subscribe the oath prescribed in section 4 of article XI of the Constitution of North Dakota.

Source:

Pol. C. 1877, ch. 2, § 11; R.C. 1895, § 29; S.L. 1899, ch. 104, § 2; R.C. 1899, § 29; R.C. 1905, § 29; C.L. 1913, § 36; R.C. 1943, § 54-0309.

54-03-10. Compensation of speaker, majority and minority leaders, assistant majority and minority leaders, committee chairmen, and employees.

The speaker of the house, the house majority leader, the senate majority leader, the house minority leader, and the senate minority leader shall each receive as compensation, in addition to any other compensation or expense reimbursement provided by law, the sum of fifteen dollars per day for each calendar day during any regular, special, or organizational session. Chairmen of the substantive standing committees, the house assistant majority leader, the senate assistant majority leader, the house assistant minority leader, and the senate assistant minority leader shall receive additional compensation of ten dollars for each calendar day during any regular, special, or organizational session. The additional compensation provided by this section must be paid in the manner provided in section 54-03-20. The legislative assembly, by concurrent resolution, shall fix the compensation of the other officers and employees elected or appointed.

Source:

S.L. 1893, ch. 97, §§ 1, 2; 1895, ch. 76, § 1; R.C.1895, § 28; S.L. 1897, ch. 27, § 1; 1899, ch. 39, § 1; 1899, ch. 104, § 1; 1899, ch. 190; R.C. 1899, § 28; S.L. 1901, ch. 117, § 1; R.C. 1905, § 28; S.L. 1907, ch. 164, § 1; C.L. 1913, § 34; S.L. 1935, ch. 212, § 1; R.C. 1943, § 54-0310; S.L. 1951, ch. 304, § 2; 1957 Supp., § 54-0310; S.L. 1971, ch. 487, § 1; 1983, ch. 82, § 125; 1985, ch. 558, § 1; 1989, ch. 630, § 1; 2011, ch. 1, § 7.

54-03-11. Payment of legislative costs and expenses — President pro tempore of the senate and speaker of the house jointly approve vouchers.

During any legislative session, the speaker of the house and the president pro tempore of the senate, or persons designated by the speaker and the president pro tempore, on behalf of the legislative assembly and without further legislative action, jointly shall approve vouchers for payment of compensation, salaries, and other costs of operation and expenses of the legislative assembly, its committees, and its employees within the limits of legislative appropriations.

Source:

S.L. 1890, ch. 86, § 6; 1895, ch. 76, § 4; R.C. 1895, § 31; R.C. 1899, § 31; R.C. 1905, § 30; C.L. 1913, § 37; R.C. 1943, § 54-0311; S.L. 1969, ch. 428, § 1; 1991, ch. 564, § 1.

Notes to Decisions

Appropriation.

The state auditor is without authority to disburse public funds to pay the expenses of each house of the legislative assembly without legislative appropriation. State ex rel. Wattam v. Poindexter, 48 N.D. 135, 183 N.W. 852 (1921).

54-03-12. Duties of secretary of senate and chief clerk of house.

The secretary of the senate and chief clerk of the house of representatives shall perform the duties required of them by the rules of the senate and the house of representatives, as appropriate.

Source:

Pol. C. 1877, ch. 2, § 12; R.C. 1895, § 33; R.C. 1899, § 33; R.C. 1905, § 32; C.L. 1913, § 39; R.C. 1943, § 54-0312; S.L. 1991, ch. 565, § 1.

54-03-13. Duties of secretary of senate and chief clerk of house after legislative session. [Repealed]

Repealed by S.L. 1991, ch. 565, § 2.

54-03-14. Removal of officers or employees.

At any time during a session of the legislative assembly, either house by a majority vote may remove from office any officer or employee. In case of the removal of an officer by either house, that officer’s place must be filled by an election viva voce. In all elections under the provisions of this chapter for officers of either house of the legislative assembly, a majority of all votes cast is necessary.

Source:

Pol. C. 1877, ch. 2, § 17; R.C. 1895, § 35; R.C. 1899, § 35; R.C. 1905, § 34; C.L. 1913, § 41; R.C. 1943, § 54-0314.

54-03-15. Discharge of officers and employees.

Whenever any officer or employee of the legislative assembly, through neglect or incompetency, fails to discharge the duties of the person’s office or position properly, the body of the legislative assembly in which the person is employed shall declare the office or position vacant and fill the vacancy so created.

Source:

S.L. 1890, ch. 86, § 6; 1895, ch. 76, § 5; R.C. 1895, § 32; R.C. 1899, § 32; R.C. 1905, § 31; C.L. 1913, § 38; R.C. 1943, § 54-0315.

54-03-16. Legislative expense — Appropriation.

There is appropriated out of any moneys in the state treasury, as a standing and continuing appropriation, such sum as may be necessary to pay:

  1. The mileage and per diem of the members of the legislative assembly;
  2. The per diem of officers and employees of the legislative assembly;
  3. The expense of investigating committees when authorized by the legislative assembly; and
  4. Necessary postage, express, telegrams, telephone, and such other miscellaneous expenses as may be authorized by the legislative assembly, except printing.

Source:

S.L. 1891, ch. 8, §§ 1, 2; R.C. 1895, § 36; R.C. 1899, § 36; R.C. 1905, § 35; S.L. 1913, ch. 28, § 1; C.L. 1913, § 42; R.C. 1943, § 54-0316.

Notes to Decisions

Approval by Both Houses.

An appropriation authorizing the issuance of warrants to employees of an investigating committee of a house of the legislative assembly does not exist if the expenditure is authorized by one house alone. State ex rel. Wattam v. Poindexter, 48 N.D. 135, 183 N.W. 852 (1921).

54-03-17. Punishment by each house for offenses.

Each house of the legislative assembly may punish, by imprisonment, as for a contempt, any person who is guilty of one or more of the following offenses:

  1. Knowingly arresting a member or officer of the house or procuring such member or officer to be arrested in violation of the member’s or officer’s privilege from arrest.
  2. Disorderly conduct in the immediate view of the house and directly tending to interrupt its proceedings.
  3. Refusing to attend and be examined as a witness either before the house, or a committee thereof, or before any person authorized to take testimony in legislative proceedings.
  4. Giving or offering a bribe to a member or attempting by menace or other corrupt means or device, directly or indirectly, to control or influence a member in giving the member’s vote or to prevent the member giving the same.

The term of imprisonment which such house may impose for any contempt specified in this section may not continue beyond thirty days, nor extend beyond the same session of the legislative assembly.

Source:

Pol. C. 1877, ch. 2, § 4; N.D. Const., § 48; R.C. 1895, § 23; R.C. 1899, § 23; R.C. 1905, § 23; C.L. 1913, § 29; R.C. 1943, § 54-0317.

Collateral References.

Criminal offense of bribery as affected by lack of authority of state public officer or employee, 73 A.L.R.3d 374.

54-03-18. Penalty.

Any person who commits any offense punishable under section 54-03-17 is guilty of a class A misdemeanor.

Source:

Pol. C. 1877, ch. 2, § 5; R.C. 1895, § 24; R.C. 1899, § 24; R.C. 1905, § 24; C.L. 1913, § 30; R.C. 1943, § 54-0318; S.L. 1975, ch. 106, § 574.

54-03-19. Seal to be affixed to bills. [Repealed]

Repealed by S.L. 1997, ch. 30, § 4.

54-03-19.1. Legislative compensation commission — Appointment of members. [Repealed]

Repealed by S.L. 2011, ch. 387, § 1.

54-03-19.2. Meetings — Powers and duties — Expenses. [Repealed]

Repealed by S.L. 2011, ch. 387, § 1.

54-03-20. Compensation and expense reimbursement of members of the legislative assembly.

  1. Each member of the legislative assembly is entitled to receive as compensation for services the sum of one hundred eighty-nine dollars through June 30, 2022, and one hundred ninety-three dollars thereafter for each calendar day during any organizational, special, or regular legislative session and for each day that member attends a meeting of a legislative committee between the organizational session and the regular session as authorized by legislative rule.
    1. Each member of the legislative assembly is entitled to receive reimbursement for lodging, which may not exceed per calendar month the amount established under this subdivision by the director of the office of management and budget for lodging in state and which may not exceed the rate provided in section 44-08-04 for each calendar day during the period of any organizational, special, or regular session. On August first of each even-numbered year, the director of the office of management and budget shall set the maximum monthly reimbursement for the subsequent two-year period at an amount equal to thirty times seventy percent of the daily lodging reimbursement in effect on that date as provided under subdivision d of subsection 2 of section 44-08-04.
    2. Notwithstanding subdivision a:
      1. A member of the legislative assembly may elect to be reimbursed for less than the amount to which the legislator is entitled under this subsection by claiming the lesser amount on a voucher submitted with the receipt required by section 44-08-04.
      2. The legislative management may establish guidelines that may result in a reduced maximum reimbursement for a single dwelling in which two or more legislators share lodging and the total rent for that dwelling exceeds the amount to which a legislator is entitled under subdivision a.
    1. Members of the legislative assembly who receive reimbursement for lodging are also entitled to reimbursement for travel for not to exceed one round trip taken during any calendar week, or portion of a week, the legislative assembly is in session, between their residences and the place of meeting of the legislative assembly, at the rate provided for state employees with the additional limitation that reimbursement for travel by common carrier may be only at the cost of coach fare and may not exceed one and one-half times the amount the member would be entitled to receive as mileage reimbursement for travel by motor vehicle.
    2. A member of the legislative assembly who does not receive reimbursement for lodging and whose place of residence in the legislative district that the member represents is not within the city of Bismarck is entitled to reimbursement at the rate provided for state employees for necessary travel for not to exceed one round trip taken per day between the residence and the place of meeting of the legislative assembly when it is in session and may receive reimbursement for lodging at the place of meeting of the legislative assembly as provided in section 44-08-04 for each calendar day for which round trip travel reimbursement is not claimed, provided that the total reimbursement may not exceed the maximum monthly reimbursement allowed under subdivision a of subsection 2.
  2. The amount to which each legislator is entitled must be paid following the organizational session in December and each month upon submission of a voucher and appropriate documentation during a regular or special session, consistent with section 26 of article XI of the constitution of North Dakota.
  3. If during a special session, the legislative assembly adjourns for more than three days, a member of the legislative assembly is entitled to receive compensation during those days only while in attendance at a standing committee if the legislator is a member of that committee, a majority or minority leader, or a legislator who is not on that committee but who has the approval of a majority or minority leader to attend.
  4. A day, or portion of a day, spent in traveling to or returning from an organizational, special, or regular session or a legislative committee meeting must be included as a calendar day during a legislative session or as a day of a legislative committee meeting for the purposes of this section.
    1. In addition, each member is entitled to receive during the term for which the member was elected, as compensation for the execution of public duties during the biennium, the sum of five hundred twenty-six dollars through June 30, 2022, and five hundred thirty-seven dollars thereafter per month, paid monthly.
    2. If a member dies or resigns from office during the member’s term, the member may be paid only the allowances provided for in this section for the period for which the member was actually a member.
    3. The majority and minority leaders of the house and senate and the chairman of the legislative management, if the chairman is not a majority or minority leader, are each entitled to receive as compensation, in addition to any other compensation or expense reimbursement provided by law, the sum of three hundred seventy-seven dollars through June 30, 2022, and three hundred eighty-five dollars thereafter per month during the biennium for their execution of public duties.
  5. Attendance at any organizational, special, or regular session of the legislative assembly by any member is a conclusive presumption of entitlement as set out in this section and compensation and expense allowances must be excluded from gross income for income tax purposes to the extent permitted for federal income tax purposes under section 127 of the Economic Recovery Tax Act of 1981 [Pub. L. 97-34; 95 Stat. 202; 26 U.S.C. 162(i)].
  6. Before each regular legislative session, the legislative management shall make recommendations and submit any necessary legislation to adjust legislative compensation amounts.

Source:

S.L. 1945, ch. 72, § 1; 1949, ch. 312, § 1; 1957, ch. 334, § 1; R.C. 1943, 1957 Supp., § 54-0320; S.L. 1959, ch. 368, § 1; 1965, ch. 340, § 1; 1967, ch. 379, § 1; 1969, ch. 426, § 1; 1969, ch. 427, § 5; 1971, ch. 487, § 2; 1973, ch. 409, § 1; 1975, ch. 418, § 2; 1977, ch. 476, § 1; 1979, ch. 536, § 1; 1981, ch. 520, § 1; S.L. 1983, ch. 551, § 1; 1985, ch. 558, § 2; 1987, ch. 620, § 1; 1989, ch. 630, § 2; 1989, ch. 631, § 1; 1991, ch. 566, § 1; 1993, ch. 505, § 3; 1997, ch. 433, § 1; 1997, ch. 434, § 1; 1997, ch. 435, § 1; 1999, ch. 442, § 1; 2001, ch. 26, § 3; 2001, ch. 467, § 1; 2001, ch. 468, § 1; 2003 Sp., ch. 668, § 1; 2005, ch. 15, § 17; 2005, ch. 29, § 10; 2005, ch. 472, § 1; 2007, ch. 453, §§ 1, 2, 3, 4; 2007, ch. 1, §§ 9, 10; 2009, ch. 29, §§ 9, 10; 2009, ch. 386, §§ 2-6; 2009, ch. 482, §§ 40, 97; 2011, ch. 1, §§ 8, 9; 2011, ch. 41, § 26; 2013, ch. 32, §§ 6, 7; 2015, ch. 366, § 1, eff March 26, 2015; 2015, ch. 1, § 6, eff July 1, 2015; 2015, ch. 1, § 7, eff April 27, 2015; 2019, ch. 1, § 7, eff July 1, 2019; 2019, ch. 1, § 8, eff July 1, 2020; 2021, ch. 29, § 6, eff July 1, 2021.

Effective Date.

The 2015 amendment of this section by section 6 of chapter 1, S.L. 2015 became effective July 1, 2015, pursuant to an emergency clause in section 13 of chapter 1, S.L. 2015.

The 2015 amendment of this section by section 7 of chapter 1, S.L. 2015 becomes effective July 1, 2016, pursuant to an emergency clause in section 13 of chapter 1, S.L. 2015.

The 2015 amendment of this section by section 1 of chapter 366, S.L. 2015 became effective March 26, 2015, pursuant to an emergency clause in section 4 of chapter 366, S.L. 2015.

The 2013 amendment of this section by section 7 of chapter 32, S.L. 2013 becomes effective July 1, 2014.

The 2013 amendment of this section by section 6 of chapter 32, S.L. 2013 became effective July 1, 2013.

The 2001 amendment of this section by section 1 of chapter 468, S.L. 2001 is retroactive in application to January 1, 2001, pursuant to section 2 of chapter 468, S.L. 2001.

Note.

Section 54-03-20 was amended 3 times by the 2015 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 6 of Chapter 384, Session Laws 2015, House Bill 1001; Section 1 of Chapter 366, Session Laws 2015, House Bill 1199; and Section 7 of Chapter 1, Session Laws 2015, House Bill 1001.

Section 3 of chapter 668, S.L. 2003, Sp., provides:

RETROACTIVE APPLICATION OF ACT. This Act is retroactive in application to May 4, 2003.”

Section 2 of chapter 467, S.L. 2001, provides: “ RETROACTIVE APPLICATION. Section 1 of this Act [this section] is retroactive in application to December 7, 2000.”

Cross-References.

Compensation of nursing board members, see N.D.C.C. § 43-12.1-07.

Notes to Decisions

Constitutionality.

This provision does not violate former section 46 of article IV of the Constitution, which provided that “each member of the legislative assembly shall receive as a compensation for his services for each session, five dollars per day” plus travel allowance. Verry v. Trenbeath, 148 N.W.2d 567, 1967 N.D. LEXIS 153 (N.D. 1967).

Auditing of Claims.

Claims under this statute need not be audited and approved by the state auditor or state auditing board. State ex rel. Johnson v. Baker, 74 N.D. 244, 21 N.W.2d 355 (1945), distinguished, Solberg v. State Treasurer, 78 N.D. 806, 53 N.W.2d 49 (1952) and State v. Amerada Petroleum Corp., 71 N.W.2d 675, 1955 N.D. LEXIS 127 (N.D. 1955).

54-03-20.1. Compensation for attending legislators. [Repealed]

Repealed by S.L. 1985, ch. 558, § 4.

54-03-20.2. Creation of legislative compensation commission — Appointment of members. [Repealed]

Repealed by S.L. 1979, ch. 537, § 1.

54-03-20.3. Meetings — Powers and duties — Expenses. [Repealed]

Repealed by S.L. 1979, ch. 537, § 1.

54-03-21. Conflict of interest — Prohibition — Misdemeanor. [Repealed]

Repealed by S.L. 1967, ch. 380, § 1.

Note.

The supreme court in Melland v. Johanneson, 160 N.W.2d 107 (1968), held that this section made an arbitrary classification denying equal protection of the laws in violation of sections 11 and 20 of the state Constitution (now sections 21 and 22 of article I) and section 1 of the Fourteenth Amendment to the United States Constitution, overruling Lindberg v. Benson, 70 N.W.2d 42 (1955).

54-03-22. When party or attorney is member of legislative assembly.

A member of the legislative assembly who is a witness or party to a civil action or has been the attorney of record for a party in a civil action for more than fifteen days is entitled to a continuance or an extension of time for any matter related to the civil action during the time the member of the legislative assembly is actually engaged in the performance of the member’s duties at a session of the legislative assembly and attendance of the member of the legislative assembly is necessary in the action. Upon application for the continuance or extension, the proceeding must be continued and may not proceed within ten days after the adjournment of the legislative assembly over the objection of the party, witness, or attorney of record. Notice of motion, together with a copy of an affidavit stating that the party, witness, or the attorney of record is a member of the legislative assembly, must be served upon every other party to the action at least ten days before the date of the matter sought to be continued. It is sufficient cause for the continuance of any proceeding before any board, commission, or agency of the state or its political subdivisions that any witness, party to the proceeding, or a party’s attorney is a member of the legislative assembly and the legislative assembly is in session. The witness, party, or the party’s attorney shall give written notice of the fact of membership in the legislative assembly along with a request for continuance of the proceeding to the board, commission, or agency before which the member of the legislative assembly was to appear. Upon receipt of the notices, the board shall continue the proceeding to a date not less than ten days after adjournment of the legislative assembly and shall notify the other parties to the proceeding, and their attorneys, of the continuance.

Source:

S.L. 1899, ch. 47, § 1; R.C. 1899, § 5722a; R.C. 1905, § 7329; S.L. 1909, ch. 4, § 1; C.L. 1913, § 7949; S.L. 1921, ch. 130, §§ 1, 2; 1925 Supp., §§ 7949, 7949a; R.C. 1943, § 28-1211; S.L. 1969, ch. 430, § 1; 2001, ch. 469, § 1.

Note.

The provisions of section 28-12-11 were reinserted as this section.

Cross-References.

Application for continuance on ground defendant or his attorney is member of legislative assembly, see N.D.C.C. § 29-19-07.

Collateral References.

Counsel’s absence because of attendance on legislature as ground for continuance, 49 A.L.R.2d 1073.

54-03-23. Century Code distributed to each legislator — Retention.

Each member of the legislative assembly is entitled to receive a current set of the North Dakota Century Code as provided in section 46-04-01. Upon the election of a member of the legislative assembly, the secretary of state shall request of that member whether that member wants to receive a set of the code under this section. The secretary of state shall deliver a set of the code to each member who elects to receive a copy of the code. A legislator who elects to receive a set of the code is entitled to current supplements and volumes as provided in section 46-04-03 to maintain the code during the legislator’s service. The code received by a legislator under this section is not subject to section 46-04-04. After a legislator’s service in the legislative assembly is terminated, the secretary of state shall inform the legislator that the legislator may elect to retain the set of the code or to return the set at the expense of the secretary of state. If the legislator elects to retain the set, the secretary of state shall inform the legislator how to obtain a subscription to maintain the legislator’s code.

Source:

S.L. 1979, ch. 538, § 2; 1995, ch. 495, § 1.

54-03-24. Administrative code.

Each member of the legislative assembly is entitled to receive electronic notification of quarterly updates to the North Dakota administrative code as provided in section 28-32-20.

Source:

S.L. 1979, ch. 373, § 2; 2001, ch. 293, § 27; 2019, ch. 267, § 2, eff August 1, 2019.

54-03-25. Bills and amendments affecting workforce safety and insurance fund — Actuarial impact statement.

Workforce safety and insurance shall review any legislative measure affecting workforce safety and insurance benefits or premium rates to determine whether the measure will have an actuarial impact on the workforce safety and insurance fund. If the organization determines that the measure will have an actuarial impact on the fund, the organization shall submit, before the measure is acted upon, an actuarial impact statement prepared, at the expense of the organization, by the actuary employed by the organization. The organization shall review any amendment affecting workforce safety and insurance benefits or premium rates and shall submit, before the amendment is acted upon, either a statement prepared by the organization, stating that the amendment is not expected to have any actuarial impact on the workforce safety and insurance fund, or an actuarial impact statement prepared, at the expense of the organization, by the actuary employed by the organization.

Source:

S.L. 1991, ch. 714, § 17; 1993, ch. 45, § 19; 1995, ch. 54, § 39; 1995, ch. 628, § 1; 2003, ch. 561, § 3.

54-03-26. Personal computers and associated software used by legislators — Fee — Continuing appropriation.

  1. Notwithstanding any other provision of law, a member of the legislative assembly who is assigned a computer may use that computer and its associated equipment and software for any use that is not in violation of section 16.1-10-02 upon payment of a computer usage fee established by the legislative management.
  2. The legislative management may establish a policy under which a member of the legislative assembly who has paid a computer usage fee under subsection 1 may purchase the computer used by that member for the appraised or market value of the computer upon the replacement of the computer by the legislative council.
  3. Any funds received by the legislative council through the sale of a computer under subsection 2 must be deposited in the legislative services fund in the state treasury.

Source:

S.L. 1997, ch. 436, § 1; 2009, ch. 457, § 1; 2009, ch. 482, § 41.

Note.

Section 54-03-26 was amended 2 times by the 2009 Legislative Assembly. Pursuant to section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in section 1 of chapter 457, Session Laws 2009, House Bill 1178; and section 41 of chapter 482, Session Laws 2009, House Bill 1436.

54-03-27. Service in the legislative assembly — Leave of absence from employment.

The executive officer in charge of a state agency, department, or institution or the governing body of any political subdivision or any other employer in this state may grant a leave of absence from employment to a full-time employee of that governmental entity or of that employer who is a member of the legislative assembly for service during any regular or special session of the legislative assembly and for attendance at a meeting of the legislative management or any of its committees. The leave of absence may be without pay, and the employer may reduce or eliminate the payment of any additional benefits normally due the employee while the employee is performing legislative service. If the leave of absence is granted, the employer may not terminate the employment of an employee solely due to the fact that the employee is absent from employment as the result of service in the legislative assembly.

Source:

S.L. 1999, ch. 443, § 1; 2001, ch. 470, § 1; 2009, ch. 482, § 42.

54-03-28. Health insurance mandated coverage of services — Cost-benefit analysis requirement.

  1. If the legislative management determines a legislative measure mandates health insurance coverage of services or payment for specified providers of services, the measure may not be referred to a committee of the legislative assembly unless a cost-benefit analysis provided by the legislative management is appended to that measure.
    1. If a committee of the legislative assembly determines a measure mandating health insurance coverage of services or payment of specified providers was referred to committee without a cost-benefit analysis, the committee shall request the legislative management provide a cost-benefit analysis. The committee may not act on the measure unless the measure is accompanied by the cost-benefit analysis.
    2. If a committee of the legislative assembly determines a proposed amendment to a measure mandates health insurance coverage of services or payment of specified providers, the committee may not act on the proposed amendment unless the amendment is accompanied by a cost-benefit analysis or amended cost-benefit analysis provided by the legislative management.
  2. Factors considered in the cost-benefit analysis must include:
    1. The extent to which the proposed mandate would increase or decrease the cost of the service.
    2. The extent to which the proposed mandate would increase the appropriate use of the service.
    3. The extent to which the proposed mandate would increase or decrease the administrative expenses of insurers and the premium and administrative expenses of insureds.
    4. The impact of the proposed mandate on the total cost of health care.
  3. A committee of the legislative assembly may not act on a legislative measure that the legislative management or committee determines mandates health insurance coverage of services or payment for specified providers of services unless the measure as recommended by the committee provides:
    1. The measure is effective through June thirtieth of the next odd-numbered year following the year in which the legislative assembly enacted the measure, and after that date the measure is ineffective.
    2. The application of the mandate is limited to the public employees health insurance program and the public employee retiree health insurance program. The application of such mandate begins with every contract for health insurance which becomes effective after June thirtieth of the year in which the measure becomes effective.
    3. That for the next legislative assembly, the public employees retirement system shall prepare and request introduction of a bill to repeal the expiration date and to extend the mandated coverage or payment to apply to accident and health insurance policies. The public employees retirement system shall append to the bill a report regarding the effect of the mandated coverage or payment on the system’s health insurance programs. The report must include information on the utilization and costs relating to the mandated coverage or payment and a recommendation on whether the coverage or payment should continue. For purposes of this section, the bill is not a legislative measure mandating health insurance coverage of services or payment for specified providers of services, unless the bill is amended following introduction so as to change the bill’s mandate.
  4. The legislative management shall adopt a procedure for identifying measures and proposed measures mandating health insurance coverage of services or payment for specified providers of services. The procedure must include solicitation of draft measures and proposals during the interim between legislative sessions from legislators and agencies with bill introduction privileges and must include deadlines for identification of the measures or proposals.
  5. The legislative council shall contract with a private entity, after receiving one or more recommendations from the insurance commissioner, to provide the legislative management the cost-benefit analysis required by this section. The insurance commissioner shall pay the cost of the contracted services to the entity providing the services.

Source:

S.L. 2001, ch. 471, § 1; 2003, ch. 240, § 6; 2021, ch. 391, § 2, eff May 1, 2021.

54-03-29. Acceptance of gifts — Continuing appropriation.

The legislative assembly or either house of the legislative assembly may accept donations of funds. Funds received as a donation may be expended by the legislative assembly by concurrent resolution or the appropriate house upon motion. All funds under this section are appropriated as a continuing appropriation for the purposes contained in the concurrent resolution or motion approving the expenditure of the funds.

Source:

S.L. 2007, ch. 454, § 1.

54-03-30. Audio recording of floor sessions.

The senate shall adopt rules regarding the recording of senate floor sessions and the house of representatives shall adopt rules regarding the recording of house floor sessions. The legislative council shall archive all audio recordings of floor sessions. Audio recordings of floor sessions are public records that must be open and accessible for inspection during reasonable office hours.

Source:

S.L. 2011, ch. 388, § 1.

54-03-31. Federal health care reform law.

  1. The legislative assembly declares that the federal laws known as the Patient Protection and Affordable Care Act [Pub. L. 111-148] and the Health Care and Education Reconciliation Act of 2010 [Pub. L. 111-152] likely are not authorized by the United States Constitution and may violate its true meaning and intent as given by the founders and ratifiers.
  2. The legislative assembly shall consider enacting any measure necessary to prevent the enforcement of the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 within this state.
  3. No provision of the Patient Protection and Affordable Care Act or the Health Care and Education Reconciliation Act of 2010 may interfere with an individual’s choice of a medical or insurance provider except as otherwise provided by the laws of this state.

Source:

S.L. 2011, ch. 389, § 1.

54-03-32. Review of presidential executive orders — Restriction.

  1. The legislative management may review any executive order issued by the president of the United States which has not been affirmed by a vote of the Congress of the United States and signed into law as prescribed by the Constitution of the United States and recommend to the attorney general and the governor that the executive order be further reviewed. Upon recommendation from the legislative management, the attorney general shall review the executive order to determine the constitutionality of the order and whether the state should seek an exemption from the application of the order or seek to have the order declared to be an unconstitutional exercise of legislative authority by the president.
  2. Notwithstanding any other provision of law, the state, a political subdivision, or any other publicly funded organization may not implement an executive order if the attorney general issues an opinion that the executive order unconstitutionally restricts a person’s rights or has been found unconstitutional by a court of competent jurisdiction and the executive order relates to:
    1. Pandemics or other health emergencies;
    2. The regulation of natural resources, including coal and oil;
    3. The regulation of the agriculture industry;
    4. The use of land;
    5. The regulation of the financial sector as it relates to environmental, social, or governance standards; or
    6. The regulation of the constitutional right to keep and bear arms.

Source:

S.L. 2013, ch. 399, § 1; 2021, ch. 392, § 1, eff August 1, 2021.

Effective Date.

This section became effective August 1, 2013.

54-03-33. Certification of delegates to United States convention of the states.

  1. If a convention of the states is called pursuant to article V of the United States Constitution, the legislative assembly or an official designated by the legislative assembly shall certify each delegate and alternate delegate from this state to the convention and provide a written copy of the certification to each delegate and alternate delegate and to the convention. If a delegate is ineligible or unwilling to serve as a delegate at the convention, the legislative assembly or the official designated by the legislative assembly shall certify an alternate delegate to replace the delegate and immediately provide a copy of the certification to the delegate and the convention.
  2. If a delegate is rendered ineligible to serve under subsection 4, the delegate’s certification must provide notice to the convention that any vote or other action taken by that delegate should be considered void.
  3. An individual who has not been certified under this section may not serve as a delegate at the convention.
  4. As a condition of being eligible for consideration or selection as a delegate or alternate delegate, each delegate and alternate delegate shall execute the following oath:
  5. A delegate at the convention may not vote to allow consideration of or consider or approve any unauthorized amendment. An “unauthorized amendment” means:
    1. A proposed amendment that varies from the exact text of the amendment contained in the application made by the legislative assembly, which limits the convention to approving or disapproving that exact text, or if the legislative assembly did not make the application, the exact text of the amendment contained in the applications relied upon by the United States Congress in calling the convention, if the application contains exact text for a proposed amendment; or
    2. A proposed amendment that is outside the permitted subject matter of the application made by the legislative assembly, or if the legislative assembly did not make the application, the permitted subject matter of the applications relied upon by the United States Congress in calling the convention and as the subject matter may be further defined by the legislative assembly or an official designated by the legislative assembly, in instructions adopted by the legislative assembly by concurrent resolution and provided to each delegate and alternate delegate.
  6. The legislative assembly or an official designated by the legislative assembly shall provide guidance upon the request of any delegate or alternate delegate as to whether a proposed amendment is within the permitted subject matter of the convention.
  7. A delegate casting or attempting to cast a vote at a convention in violation of this section must be rendered ineligible to continue to serve as a delegate and must be immediately removed from office and replaced by an alternate delegate as provided under this section. A vote cast by a delegate at a convention which is in violation of this section is void.

I do solemnly swear or affirm that I will, to the best of my abilities, support the United States Constitution and the Constitution of North Dakota and I will not vote to allow consideration of or consider or approve any unauthorized amendment proposed for ratification to the United States Constitution. I understand that a violation of this oath will result in my being rendered ineligible to serve as a delegate at the convention as well as subject me to additional penalties under the laws of North Dakota.

History. S.L. 2015, ch. 367, § 1, eff August 1, 2015.

Effective Date.

This section became effective August 1, 2015.

54-03-34. Dynamic fiscal impact bill selection committee. [Expired]

Source:

S.L. 2017, ch. 364, § 2, eff August 1, 2017; Expired by 2017, ch. 364, § 3, eff July 1, 2019.

CHAPTER 54-03.1 Organizational Session

54-03.1-01. Declaration of purpose. [Repealed]

Repealed by S.L. 1969, ch. 427, § 9.

54-03.1-02. Time and place of meeting — Who must attend.

In each even-numbered year on the first Monday in the month of December or on a date selected by the legislative management but not earlier than December first nor later than December fifteenth, all persons elected at the previous November general election as members of the succeeding legislative session, and members whose terms do not expire until the first day of December following the next November general election, shall meet in the state capitol in the city of Bismarck, or at such other place as may be designated, at a time designated by the legislative management for the purpose of conducting an organizational session. The legislative management shall call the organizational session and the legislative council shall make such arrangements as may be necessary for operation of the session.

Source:

S.L. 1965, ch. 342, § 2; 1969, ch. 427, § 7; 1969, ch. 448, § 23; 1987, ch. 259, § 12; 1999, ch. 444, § 1; 2005, ch. 473, § 1; 2009, ch. 482, § 43.

Cross-References.

“Organizational session” and “regular session” defined, see N.D.C.C. § 54-03-02.1.

54-03.1-03. Agenda.

The agenda of the organizational session must include the following:

  1. Orientation classes upon legislative rules and procedure for new legislators;
  2. Presentation of reports by legislative interim committees or commissions;
  3. Party caucuses to review proposed legislative rules and committee assignments, as appropriate;
  4. Appointment of procedural committees;
  5. Presentation of the budget and revenue proposals recommended by the governor as provided in section 54-44.1-07; and
  6. All other similar matters, in order that the legislative assembly be fully organized and ready to begin its business by the first day of the regular session.

Source:

S.L. 1965, ch. 342, § 3; 1969, ch. 427, § 8; 1989, ch. 632, § 1; 2003, ch. 458, § 1.

54-03.1-04. Compensation for attending legislators. [Repealed]

Repealed by S.L. 1969, ch. 427, § 9.

CHAPTER 54-03.2 Conduct of Legislative Investigations

54-03.2-01. Establishment and purpose of code.

A code of fair procedure for legislative investigating committees is hereby established for the purpose of providing for the creation and operation of legislative investigating committees in a manner which will enable them to perform properly the powers and duties vested in them, including the conduct of hearings, in a fair and impartial manner, consistent with protection of the constitutional rights of persons called to testify at such hearings and preservation of the public good.

Source:

S.L. 1969, ch. 431, § 1.

54-03.2-02. Definitions.

As used in this code:

  1. “Hearing” means any meeting in the course of an investigatory proceeding, other than a preliminary conference or interview at which no testimony is taken under oath, conducted by an investigating committee for the purpose of taking testimony or receiving other evidence. A hearing may be open to the public or closed to the public.
  2. “Investigating committee” means any of the following:
    1. A standing or select committee of either house of the legislative assembly.
    2. A joint committee of both houses.
    3. An authorized subcommittee of a legislative committee.
    4. The legislative management and any interim committee of the legislative management if specifically designated by the legislative management as an investigating committee with subpoena powers.
    5. Any other body created by law, the members of which may include nonlegislators.
  3. “Public hearing” means any hearing open to the public or the proceedings of which are made available to the public.

Investigating committees have the power to issue subpoenas and subpoenas duces tecum in the manner provided for in section 54-03.2-08. Nothing in this chapter may be construed as in derogation of any power to issue subpoenas which is inherent in the legislative assembly or any of its committees.

Source:

S.L. 1969, ch. 431, § 2; 1973, ch. 410, § 1; 2009, ch. 482, § 44.

54-03.2-03. Establishment of investigating committees by legislative assembly.

An investigating committee may exercise its powers during sessions of the legislative assembly and also in the interim between sessions when so provided by law or by the motion, resolution, or statute by which the committee was established or from which it derives its investigatory powers. The motion, resolution, or statute establishing a temporary investigating committee must state the committee’s purposes, powers, duties, and duration, the subject matter and scope of its investigatory authority, and the number of its members.

Source:

S.L. 1969, ch. 431, § 3; 1973, ch. 410, § 2.

54-03.2-04. Adoption of rules.

Each investigating committee shall adopt rules, not inconsistent with law or any applicable rules of the legislative assembly, governing its procedures, including the conduct of hearings.

Source:

S.L. 1969, ch. 431, § 4.

54-03.2-05. Finances and staff.

Each investigating committee may employ such professional, technical, clerical, or other personnel as necessary for the proper performance of its duties, to the extent of funds made available to it for such purpose and subject to such restrictions and procedures relating thereto as may be provided by law or any applicable rules of the legislative assembly.

Source:

S.L. 1969, ch. 431, § 5.

54-03.2-06. Membership, quorum, and voting.

An investigating committee shall consist of not less than five members. A quorum shall consist of a majority of the total authorized membership of the committee. No action may be taken by a committee at any meeting unless a quorum is present. The committee may act by a majority vote of the members present and voting at a meeting at which there is a quorum, unless the provisions of this code or any other statute require a greater number or proportion.

Source:

S.L. 1969, ch. 431, § 6.

54-03.2-07. Hearings.

An investigating committee may hold hearings appropriate for the performance of its duties, at such times and places as the committee determines.

The committee shall provide by its rules that each member of the committee be given at least three days’ written notice of any hearing to be held when the legislative assembly is in session and at least seven days’ written notice of any hearing to be held when the legislative assembly is not in session. Such notices must include a statement of the subject matter of the hearing. A hearing, and any action taken at a hearing, may not be deemed invalid solely because notice of the hearing was not given in accordance with this requirement.

Any investigating committee may not conduct a hearing unless a quorum is present.

Source:

S.L. 1969, ch. 431, § 7.

54-03.2-08. Issuance of subpoenas.

Every investigating committee may, by majority vote of all of its members, issue a subpoena requiring a person to appear before the committee and be examined in reference to any matter within the scope of the inquiry or investigation being conducted by the committee. The committee may also issue a subpoena or subpoena duces tecum requiring any person to appear before the committee and bring any books, papers, or other documents pertinent thereto.

A person subpoenaed to attend a hearing of an investigating committee shall receive the same fees and allowances as a person subpoenaed to give testimony in an action pending in a court of record, which fees and allowances must be paid from either the legislative appropriation, or from the appropriation, if any, to the investigating committee issuing the subpoena.

Source:

S.L. 1969, ch. 431, § 8; 1973, ch. 410, § 3.

Cross-References.

Witness fees, see N.D.C.C. § 31-01-16.

54-03.2-09. Notice to witnesses.

Service of a subpoena requiring the attendance of a person at a hearing of an investigating committee must be made in the manner provided by law for the service of subpoenas in civil actions at least seven days prior to the date of the hearing unless a shorter period of time is authorized by majority vote of all of the members of the committee in a particular instance when, in their opinion, the giving of seven days’ notice is not practicable; but if a shorter period of time is authorized, the person subpoenaed must be given reasonable notice of the hearing, consistent with the particular circumstances involved.

Any person who is served with a subpoena to attend a hearing of an investigating committee also must be served with a copy of the motion, resolution, or statute establishing or authorizing creation of the committee, a general statement informing the person of the subject matter of the committee’s investigation or inquiry, and a notice that the person may be accompanied at the hearing by counsel of the person’s own choosing.

Source:

S.L. 1969, ch. 431, § 9; 1973, ch. 410, § 4.

Cross-References.

Service of subpoenas in civil actions, see N.D.R.Civ.P. 45.

54-03.2-10. Conduct of hearings.

All hearings of an investigating committee must be public except an investigative hearing of an individual may be closed upon specific request by the individual or the individual’s counsel with consent of a majority of the committee.

The chairman of an investigating committee, if present and able to act, shall preside at all hearings of the committee and shall conduct the examination of witnesses or supervise examination by other members of the committee, the committee’s counsel, or members of the committee’s staff who are so authorized. In the chairman’s absence or disability, the vice chairman shall serve as presiding officer. The committee shall provide by its rules for the selection of a presiding officer to act in the absence or disability of both the chairman and the vice chairman.

No hearing, or part thereof, may be televised, filmed, or broadcast except upon approval of the committee, by majority vote of all of its members.

Source:

S.L. 1969, ch. 431, § 10.

54-03.2-11. Right to counsel and submission of questions.

Every witness at a hearing of an investigating committee may be accompanied by counsel of the witness’s own choosing, who may advise the witness as to the witness’s rights, subject to reasonable limitations which the committee may prescribe to prevent obstruction of or interference with the orderly conduct of the hearing.

Any witness at a hearing, or the witness’s counsel, may submit to the committee proposed questions to be asked of the witness or any other witness relevant to the matters upon which there has been any questioning or submission of evidence, and the committee shall ask such of the questions as are appropriate to the subject matter of the hearing.

Source:

S.L. 1969, ch. 431, § 11.

54-03.2-12. Testimony.

  1. An investigating committee shall cause a record to be made of all proceedings in which testimony or other evidence is demanded or adduced, which record must include rulings of the chair, questions of the committee and its staff, the testimony or responses of witnesses, sworn written statements submitted to the committee, and such other matters as the committee or its chairman may direct.
  2. All testimony given or adduced at a hearing must be under oath or affirmation unless the requirement is dispensed with in a particular instance by majority vote of the committee members present at the hearing.
  3. Any member of an investigating committee may administer an oath or affirmation to a witness at a hearing of such committee.
  4. The presiding officer at a hearing may direct a witness to answer any relevant question or furnish any relevant book, paper, or other document, the production of which has been required by subpoena duces tecum. Unless the direction is overruled by majority vote of the committee members present, disobedience constitutes a contempt.
  5. A witness at a hearing or the witness’s counsel, with the consent of a majority of the committee members present at the hearing, may file with the committee for incorporation into the record of the hearing sworn written statements relevant to the purpose, subject matter, and scope of the committee’s investigation or inquiry.
  6. A witness at a hearing, upon the witness’s advance request and at the witness’s own expense, must be furnished a certified transcript of the witness’s testimony at the hearing.
  7. Testimony and other evidence given or adduced at a hearing closed to the public may not be made public unless authorized by majority vote of all of the members of the committee, which authorization must also specify the form and manner in which the testimony or other evidence may be released.
  8. All information of a defamatory or highly prejudicial nature received by or for the committee other than in an open or closed hearing must be deemed to be confidential. No such information may be made public unless authorized by majority vote of all of the members of the committee for legislative purposes, or unless its use is required for judicial purposes.

Source:

S.L. 1969, ch. 431, § 12.

54-03.2-13. Interested persons.

Any person whose name is mentioned or who is otherwise identified during a hearing of an investigating committee and who, in the opinion of the committee, may be adversely affected thereby, may, upon that person’s request or upon the request of any member of the committee, appear personally before the committee and testify in that person’s own behalf, or, with the committee’s consent, file a sworn written statement of facts or other documentary evidence for incorporation into the record of the hearing.

Upon the consent of a majority of its members, an investigating committee may permit any other person to appear and testify at a hearing or submit a sworn written statement of facts or other documentary evidence for incorporation into the record thereof. No request to appear, appearance, or submission of evidence limits in any way the investigating committee’s power of subpoena.

Any person who appears before an investigating committee pursuant to this section shall have all the rights, privileges, and responsibilities of a witness provided by this code.

Source:

S.L. 1969, ch. 431, § 13.

54-03.2-14. Contempt.

  1. A person is in contempt if that person:
    1. Fails or refuses to appear in compliance with a subpoena or, having appeared, fails or refuses to testify under oath or affirmation;
    2. Fails or refuses to answer any relevant question or fails or refuses to furnish any relevant book, paper, or other document subpoenaed by or on behalf of an investigating committee; or
    3. Commits any other act or offense against an investigating committee which, if committed against the legislative assembly or either house thereof, would constitute a contempt.
  2. An investigating committee may, by majority vote of all of its members, apply to the legislative assembly or the house thereof by which it was established for a contempt citation. The application must be considered as though the alleged contempt had been committed in or against such house or the legislative assembly itself. If the investigating committee is an interim committee, its application may in the alternative be made to the district court of Burleigh County.

Source:

S.L. 1969, ch. 431, § 14.

54-03.2-15. Penalties.

A person guilty of contempt under section 54-03.2-14 is guilty of a class B misdemeanor, or if tried to the legislative assembly, or an appropriate house thereof, the legislative assembly or the appropriate house may impose such punishment as it deems appropriate, in the exercise of its inherent powers.

If any investigating committee fails in any material respect to comply with the requirements of this code, any person subject to a subpoena or a subpoena duces tecum who is injured by such failure is relieved of any requirement to attend the hearing for which the subpoena was issued or, if present, to testify or produce evidence therein; and such failure is a complete defense in any proceeding against such person for contempt or other punishment.

Any person other than the witness concerned or that person’s counsel who violates subsection 7 or 8 of section 54-03.2-12 is guilty of a class B misdemeanor. The attorney general, on the attorney general’s own motion or on the application of any person claiming to have been injured or prejudiced by an unauthorized disclosure, may institute proceedings for trial of the issue and imposition of the penalties provided herein. Nothing in this section limits any power which the legislative assembly or either house thereof may have to discipline a member or employee or to impose a penalty in the absence of action by a prosecuting officer or court.

Source:

S.L. 1969, ch. 431, § 15; 1975, ch. 106, § 575.

Cross-References.

Failure to appear as witness, to produce information or to be sworn unlawful, see N.D.C.C. § 12.1-10-02.

Refusal to testify unlawful, see N.D.C.C. § 12.1-10-03.

54-03.2-16. Limitations of code.

Nothing contained in this code may be construed to limit or prohibit the acquisition of evidence or information by an investigating committee by any lawful means not provided for herein.

Source:

S.L. 1969, ch. 431, § 16.

CHAPTER 54-03.3 Compact for a Balanced Budget

54-03.3-01. Adoption of compact.

The state of North Dakota enacts, adopts, and agrees to be bound by the Compact for a Balanced Budget with all other jurisdictions legally joining therein in the form substantially as follows:

Source:

S.L. 2015, ch. 430, § 1, eff January 1, 2015; 2021, ch. 393, § 1, eff August 1, 2021.

ARTICLE I — DECLARATION OF POLICY, PURPOSE, AND INTENT

Whereas, every state enacting, adopting and agreeing to be bound by this compact intends to ensure that their respective legislature’s use of the power to originate a Balanced Budget Amendment under Article V of the Constitution of the United States will be exercised conveniently and with reasonable certainty as to the consequences thereof.

Now, therefore, in consideration of their expressed mutual promises and obligations, be it enacted by every state enacting, adopting and agreeing to be bound by this compact, and resolved by each of their respective legislatures, as the case may be, to exercise herewith all of their respective powers as set forth herein notwithstanding any law to the contrary.

ARTICLE II — DEFINITIONS

  1. “Compact” means this “Compact for a Balanced Budget”.
  2. “Convention” means the convention for proposing amendments organized by this compact under Article V of the Constitution of the United States and, where contextually appropriate to ensure the terms of this compact are not evaded, any other similar gathering or body, which might be organized as a consequence of Congress receiving the application set out in this compact and claim authority to propose or effectuate any amendment, alteration or revision to the Constitution of the United States. This term does not encompass a convention for proposing amendments under Article V of the Constitution of the United States that is organized independently of this compact based on the separate and distinct application of any state.
  3. “State” means one of the several states of the United States. Where contextually appropriate, the term “state” shall be construed to include all of its branches, departments, agencies, political subdivisions, and officers and representatives acting in their official capacity.
  4. “Member state” means a state that has enacted, adopted, and agreed to be bound to this compact. For any state to qualify as a member state with respect to any other state under this compact, each such state must have enacted, adopted, and agreed to be bound by substantively identical compact legislation.
  5. “Compact notice recipients” means the archivist of the United States, the president of the United States, the president of the United States Senate, the office of the secretary of the United States Senate, the speaker of the United States House of Representatives, the office of the clerk of the United States House of Representatives, the chief executive officer of each state, and the presiding officers of each house of the legislatures of the several states.
  6. Notice. All notices required by this compact shall be by United States certified mail, return receipt requested, or an equivalent or superior form of notice, such as personal delivery documented by evidence of actual receipt.
  7. “Balanced Budget Amendment” means the following:
    1. At least one other state has likewise become a member state by enacting substantively identical legislation adopting and agreeing to be bound by this compact; and
    2. Notice of such state’s member state status is or has been seasonably received by the compact administrator, if any, or otherwise by the chief executive officer of each other member state.
    3. Any difference in subsections 1 and 2 of article VI with specific regard to the number and identity of each delegate respectively appointed on behalf of the enacting state, provided that no more than three delegates may attend and participate in the Convention on behalf of any state; or
    4. Any difference in subsection 7 of article X with specific regard to the respectively enacting state as to whether subsection 1 of article V of this compact shall survive termination of the compact, and thereafter become a continuing resolution of the legislature of such state applying to Congress for the calling of a convention of the states under Article V of the Constitution of the United States, under such terms and limitations as may be specified by such state.
    5. To oversee the defense and enforcement of the compact in appropriate legal venues;
    6. To request funds and to disburse those funds to support the operations of the commission, compact administrator, and Convention; and
    7. To cooperate with any entity that shares a common interest with the commission and engages in policy research, public interest litigation, or lobbying in support of the purposes of the compact. The commission shall only have such implied powers as are essential to carrying out these express powers and duties. It shall take no action that contravenes or is inconsistent with this compact or any law of any state that is not superseded by this compact. It may adopt and publish corresponding bylaws and policies.
  8. Cooperation. The commission, member states, and compact administrator shall cooperate with each other and give each other mutual assistance in enforcing this compact and shall give the chief law enforcement officer of each other member state any information or documents that are reasonably necessary to facilitate the enforcement of this compact.
  9. This article does not take effect until there are at least two member states.
    1. To introducing, debating, voting upon, proposing, and enforcing the Convention rules specified in this compact, as needed to ensure those rules govern the Convention; and
    2. To introducing, debating, voting upon, and rejecting or proposing for ratification the Balanced Budget Amendment. All actions taken by any delegate in violation of this section are void ab initio.
  10. Forfeiture of appointment. If any member state or delegate violates any provision of this compact, then every delegate of that member state immediately forfeits his or her appointment, and shall immediately cease participation at the Convention, vacate the Convention, and return to his or her respective state’s capital.
  11. Expenses. A delegate appointed hereunder is entitled to reimbursement of reasonable expenses for attending the Convention from his or her respective member state. No delegate may accept any other form of remuneration or compensation for service under this compact.
    1. Congress first calls the Convention in accordance with this compact; and
    2. The Convention rules of this compact are adopted by the Convention as its first order of business.
    3. Purports to propose or effectuate the formation of a new government. All member states are prohibited from advancing or assisting in the advancement of any such proposal or action.

Article ___

Section 1. Total outlays of the government of the United States shall not exceed total receipts of the government of the United States at any point in time unless the excess of outlays over receipts is financed exclusively by debt issued in strict conformity with this article.

Section 2. Outstanding debt shall not exceed authorized debt, which initially shall be an amount equal to 105 percent of the outstanding debt on the effective date of this article. Authorized debt shall not be increased above its aforesaid initial amount unless such increase is first approved by the legislatures of the several states as provided in Section 3.

Section 3. From time to time, Congress may increase authorized debt to an amount in excess of its initial amount set by Section 2 only if it first publicly refers to the legislatures of the several states an unconditional, single subject measure proposing the amount of such increase, in such form as provided by law, and the measure is thereafter publicly and unconditionally approved by a simple majority of the legislatures of the several states, in such form as provided respectively by state law; provided that no inducement requiring an expenditure or tax levy shall be demanded, offered or accepted as a quid pro quo for such approval. If such approval is not obtained within sixty (60) calendar days after referral then the measure shall be deemed disapproved and the authorized debt shall thereby remain unchanged.

Section 4. Whenever the outstanding debt exceeds 98 percent of the debt limit set by Section 2, the President shall enforce said limit by publicly designating specific expenditures for impoundment in an amount sufficient to ensure outstanding debt shall not exceed the authorized debt. Said impoundment shall become effective thirty (30) days thereafter, unless Congress first designates an alternate impoundment of the same or greater amount by concurrent resolution, which shall become immediately effective. The failure of the President to designate or enforce the required impoundment is an impeachable misdemeanor. Any purported issuance or incurrence of any debt in excess of the debt limit set by Section 2 is void.

Section 5. No bill that provides for a new or increased general revenue tax shall become law unless approved by a two-thirds roll call vote of the whole number of each House of Congress. However, this requirement shall not apply to any bill that provides for a new end user sales tax which would completely replace every existing income tax levied by the government of the United States; or for the reduction or elimination of an exemption, deduction, or credit allowed under an existing general revenue tax.

Section 6. For purposes of this article, “debt” means any obligation backed by the full faith and credit of the government of the United States; “outstanding debt” means all debt held in any account and by any entity at a given point in time; “authorized debt” means the maximum total amount of debt that may be lawfully issued and outstanding at any single point in time under this article; “total outlays of the government of the United States” means all expenditures of the government of the United States from any source; “total receipts of the government of the United States” means all tax receipts and other income of the government of the United States, excluding proceeds from its issuance or incurrence of debt or any type of liability; “impoundment” means a proposal not to spend all or part of a sum of money appropriated by Congress; and “general revenue tax” means any income tax, sales tax, or value-added tax levied by the government of the United States excluding imposts and duties.

Section 7. This article is immediately operative upon ratification, self-enforcing, and Congress may enact conforming legislation to facilitate enforcement.

ARTICLE III — COMPACT MEMBERSHIP AND WITHDRAWAL

1. This compact governs each member state to the fullest extent permitted by their respective constitutions, superseding and repealing any conflicting or contrary law.

2. By becoming a member state, each such state offers, promises, and agrees to perform and comply strictly in accordance with the terms and conditions of this compact, and has made such offer, promise, and agreement in anticipation and consideration of, and in substantial reliance upon, such mutual and reciprocal performance and compliance by each other current and future member state, if any. Accordingly, in addition to having the force of law in each member state upon its respective effective date, this compact and each of its articles shall also be construed as contractually binding each member state when:

3. For purposes of determining member state status under this compact, as long as all other provisions of the compact remain identical and operative on the same terms, legislation enacting, adopting, and agreeing to be bound by this compact shall be deemed and regarded as “substantively identical” with respect to such other legislation enacted by another state notwithstanding:

a. Any difference in subsection 2 of article IV with specific regard to the respectively enacting state’s own method of appointing its member to the commission;

b. Any difference in subsection 5 of article IV with specific regard to the respectively enacting state’s own obligation to fund the commission;

4. When fewer than three-fourths of the states are member states, any member state may withdraw from this compact by enacting appropriate legislation, as determined by state law, and giving notice of such withdrawal to the compact administrator, if any, or otherwise to the chief executive officer of each other member state. A withdrawal shall not affect the validity or applicability of the compact with respect to remaining member states, provided that there remain at least two such states. However, once at least three-fourths of the states are member states, then no member state may withdraw from the compact prior to its termination absent unanimous consent of all member states.

ARTICLE IV — COMPACT COMMISSION AND COMPACT ADMINISTRATOR

1. Nature of the compact commission. The compact commission (“commission”) is hereby established. It has the power and duty:

a. To appoint and oversee a compact administrator;

b. To encourage states to join the compact and Congress to call the Convention in accordance with this compact;

c. To coordinate the performance of obligations under the compact;

d. To oversee the Convention’s logistical operations as appropriate to ensure this compact governs its proceedings;

2. Commission membership. The commission initially consists of three unpaid members. Each member state may appoint one member to the commission through an appointment process to be determined by their respective chief executive officer until all positions on the commission are filled. Positions shall be assigned to appointees in the order in which their respective appointing states became member states. The bylaws of the commission may expand its membership to include representatives of additional member states and to allow for modest salaries and reimbursement of expenses if adequate funding exists.

3. Commission action. Each commission member is entitled to one vote. The commission shall not act unless a majority of its appointed membership is present, and no action shall be binding unless approved by a majority of the commission’s appointed membership. The commission shall meet at least once a year, and may meet more frequently.

4. First order of business. The commission shall at the earliest possible time elect from among its membership a chairperson, determine a primary place of doing business, and appoint a compact administrator.

5. Funding. The commission and the compact administrator’s activities shall be funded exclusively by each member state, as determined by their respective state law, or by voluntary donations.

6. Compact administrator. The compact administrator has the power and duty:

a. To timely notify the states of the date, time, and location of the Convention;

b. To organize and direct the logistical operations of the Convention;

c. To maintain an accurate list of all member states, their appointed delegates, including contact information; and

d. To formulate, transmit, and maintain all official notices, records, and communications relating to this compact. The compact administrator shall only have such implied powers as are essential to carrying out these express powers and duties; and shall take no action that contravenes or is inconsistent with this compact or any law of any state that is not superseded by this compact. The compact administrator serves at the pleasure of the commission and must keep the commission seasonably apprised of the performance or nonperformance of the terms and conditions of this compact. Any notice sent by a member state to the compact administrator concerning this compact shall be adequate notice to each other member state provided that a copy of said notice is seasonably delivered by the compact administrator to each other member state’s respective chief executive officer.

7. Notice of key events. Upon the occurrence of each of the following described events, or otherwise as soon as possible, the compact administrator shall immediately send the following notices to all compact notice recipients, together with certified conforming copies of the chaptered version of this compact as maintained in the statutes of each member state:

a. Whenever any state becomes a member state, notice of that fact shall be given;

b. Once at least three-fourths of the states are member states, notice of that fact shall be given together with a statement declaring that the legislatures of at least two-thirds of the several states have applied for a convention for proposing amendments under Article V of the Constitution of the United States, petitioning Congress to call the Convention contemplated by this compact, and further requesting cooperation in organizing the same in accordance with this compact;

c. Once Congress has called the Convention contemplated by this compact, and whenever the date, time, and location of the Convention has been determined, notice of that fact shall be given together with the date, time, and location of the Convention and other essential logistical matters;

d. Upon approval of the Balanced Budget Amendment by the Convention, notice of that fact shall be given together with the transmission of certified copies of such approved proposed amendment and a statement requesting Congress to refer the same for ratification by three-fourths of the legislatures of the several states under Article V of the Constitution of the United States. However, in no event shall any proposed amendment other than the Balanced Budget Amendment be transmitted; and

e. When any article of this compact prospectively ratifying the Balanced Budget Amendment is effective in any member state, notice of the same shall be given together with a statement declaring such ratification and further requesting cooperation in ensuring that the official record confirms and reflects the effective corresponding amendment to the Constitution of the United States. However, whenever any member state enacts appropriate legislation, as determined by the laws of the respective state, withdrawing from this compact, the compact administrator shall immediately send certified conforming copies of the chaptered version of such withdrawal legislation as maintained in the statutes of each such withdrawing member state, solely to each chief executive officer of each remaining member state, giving notice of such withdrawal.

ARTICLE V — RESOLUTION APPLYING FOR CONVENTION

1. Be it resolved, as provided for in Article V of the Constitution of the United States, the legislature of each member state herewith applies to Congress for the calling of a convention for proposing amendments limited to the subject matter of proposing for ratification the Balanced Budget Amendment.

2. Congress is further petitioned to refer the Balanced Budget Amendment to the states for ratification by three-fourths of their respective legislatures.

3. This article does not take effect until at least three-fourths of the several states are member states.

ARTICLE VI — DELEGATE APPOINTMENT, LIMITATIONS, AND INSTRUCTIONS

1. Number of delegates. Each member state shall be entitled to three delegates to represent its sovereign interests at the Convention as set forth in this article.

2. Identity of delegates. The governor, speaker of the house of representatives, and president pro tempore of the senate of the member state who hold office at the time of the Convention, or the officers’ designees as identified in sworn affidavits executed by the officers, are each appointed in an individual capacity to represent the member state at the Convention as the member state’s sole and exclusive delegates. A majority of this delegation shall decide the issue at the Convention on behalf of the member state.

3. Replacement or recall of delegates. A delegate appointed hereunder may be replaced or recalled by the legislature of his or her respective state at any time for good cause, such as criminal misconduct or the violation of this compact. If replaced or recalled, any delegate previously appointed hereunder must immediately vacate the Convention and return to their respective state’s capital.

4. Oath. The power and authority of a delegate under this article may only be exercised after the Convention is first called by Congress in accordance with this compact and such appointment is duly accepted by such appointee publicly taking the following oath or affirmation: “I do solemnly swear (or affirm) that I accept this appointment and will act strictly in accordance with the terms and conditions of the compact for a balanced budget, the constitution of the state I represent, and the Constitution of the United States. I understand that violating this oath (or affirmation) forfeits my appointment and may subject me to other penalties as provided by law.”

5. Term. The term of a delegate hereunder commences upon acceptance of appointment and terminates upon the permanent adjournment of the Convention, unless shortened by recall, replacement, or forfeiture under this article. Upon expiration of such term, any person formerly serving as a delegate must immediately withdraw from and cease participation at the Convention, if any is proceeding.

6. Delegate authority. The power and authority of any delegate appointed hereunder is strictly limited:

7. Delegate authority. No delegate of any member state may introduce, debate, vote upon, reject, or propose for ratification any constitutional amendment at the Convention unless:

a. Convention rules specified in this compact govern the Convention and their actions; and

b. The constitutional amendment is the Balanced Budget Amendment.

8. Delegate authority. The power and authority of any delegate at the Convention does not include any power or authority associated with any other public office held by the delegate. Any person appointed to serve as a delegate shall take a temporary leave of absence, or otherwise shall be deemed temporarily disabled, from any other public office held by the delegate while attending the Convention, and may not exercise any power or authority associated with any other public office held by the delegate, while attending the Convention. All actions taken by any delegate in violation of this section are void ab initio.

9. Order of business. Before introducing, debating, voting upon, rejecting, or proposing for ratification any constitutional amendment at the Convention, each delegate of every member state must first ensure the Convention rules in this compact govern the Convention and their actions. Every delegate and each member state must immediately vacate the Convention and notify the compact administrator by the most effective and expeditious means if the Convention rules in this compact are not adopted to govern the Convention and their actions.

ARTICLE VII — CONVENTION RULES

1. Nature of the Convention. The Convention shall be organized, construed, and conducted as a body exclusively representing and constituted by the several states.

2. Agenda of the Convention. The agenda of the Convention shall be entirely focused upon and exclusively limited to introducing, debating, voting upon, and rejecting or proposing for ratification the Balanced Budget Amendment under the Convention rules specified in this article and in accordance with the compact. It shall not be in order for the Convention to consider any matter that is outside the scope of this agenda.

3. Delegate identity and procedure. States shall be represented at the Convention through duly appointed delegates. The number, identity, and authority of delegates assigned to each state shall be determined by this compact in the case of member states or, in the case of states that are not member states, by their respective state laws. However, to prevent disruption of proceedings, no more than three delegates may attend and participate in the Convention on behalf of any state. A certified chaptered conforming copy of this compact, together with government-issued photographic proof of identification, shall suffice as credentials for delegates of member states. Any commission for delegates of states that are not member states shall be based on their respective state laws, but it shall furnish credentials that are at least as reliable as those required of member states.

4. Voting. Each state represented at the Convention shall have one vote, exercised by the vote of that state’s delegate in the case of states represented by one delegate, or, in the case of any state that is represented by more than one delegate, by the majority vote of that state’s respective delegates.

5. Quorum. A majority of the several states of the United States, each present through its respective delegate in the case of any state that is represented by one delegate, or through a majority of its respective delegates, in the case of any state that is represented by more than one delegate, shall constitute a quorum for the transaction of any business on behalf of the Convention.

6. Action by the Convention. The Convention shall only act as a committee of the whole, chaired by the delegate representing the first state to have become a member state, if that state is represented by one delegate, or otherwise by the delegate chosen by the majority vote of that state’s respective delegates. The transaction of any business on behalf of the Convention, including the designation of a secretary, the adoption of parliamentary procedures, and the rejection or proposal of any constitutional amendment, requires a quorum to be present and a majority affirmative vote of those states constituting the quorum.

7. Emergency suspension and relocation of the Convention. In the event that the chair of the Convention declares an emergency due to disorder or an imminent threat to public health and safety prior to the completion of the business on the agenda, and a majority of the states present at the Convention do not object to such declaration, further Convention proceedings shall be temporarily suspended, and the commission shall subsequently relocate or reschedule the Convention to resume proceedings in an orderly fashion in accordance with the terms and conditions of this compact with prior notice given to the compact notice recipients.

8. Parliamentary procedure. In adopting, applying, and formulating parliamentary procedure, the Convention shall exclusively adopt, apply, or appropriately adapt provisions of the most recent editions of Robert’s Rules of Order and the American Institute of Parliamentarians Standard Code of Parliamentary Procedure. In adopting, applying, or adapting parliamentary procedure, the Convention shall exclusively consider analogous precedent arising within the jurisdiction of the United States. Parliamentary procedures adopted, applied, or adapted pursuant to this section shall not obstruct, override, or otherwise conflict with this compact.

9. Transmittal. Upon approval of the Balanced Budget Amendment by the Convention to propose for ratification, the chair of the Convention shall immediately transmit certified copies of such approved proposed amendment to the compact administrator and all compact notice recipients, notifying them respectively of such approval and requesting Congress to refer the same for ratification by the states under Article V of the Constitution of the United States. However, in no event shall any proposed amendment other than the Balanced Budget Amendment be transmitted as aforesaid.

10. Transparency. Records of the Convention, including the identities of all attendees and detailed minutes of all proceedings, shall be kept by the chair of the Convention or secretary designated by the Convention. All proceedings and records of the Convention shall be open to the public upon request subject to reasonable regulations adopted by the Convention that are closely tailored to preventing disruption of proceedings under this article.

11. Adjournment of the Convention. The Convention shall permanently adjourn upon the earlier of twenty-four hours after commencing proceedings under this article or the completion of the business on its agenda.

ARTICLE VIII — PROHIBITION ON ULTRA VIRES CONVENTION

1. Member states shall not participate in the Convention unless:

2. Any proposal or action of the Convention is void ab initio and issued by a body that is conducting itself in an unlawful and ultra vires fashion if that proposal or action:

a. Violates or was approved in violation of the Convention rules or the delegate instructions and limitations on delegate authority specified in this compact;

b. Purports to propose or effectuate a mode of ratification that is not specified in Article V of the Constitution of the United States; or

3. Member states shall not ratify or otherwise approve any proposed amendment, alteration, or revision to the Constitution of the United States, which originates from the Convention, other than the Balanced Budget Amendment.

ARTICLE IX — RESOLUTION PROSPECTIVELY RATIFYING THE BALANCED BUDGET AMENDMENT

1. Each member state, by and through its respective legislature, hereby adopts and ratifies the Balanced Budget Amendment.

2. This article does not take effect until Congress effectively refers the Balanced Budget Amendment to the states for ratification by three-fourths of the legislatures of the several states under Article V of the Constitution of the United States.

ARTICLE X — CONSTRUCTION, ENFORCEMENT, VENUE, AND SEVERABILITY

1. To the extent that the effectiveness of this compact or any of its articles or provisions requires the alteration of local legislative rules, drafting policies, or procedure to be effective, the enactment of legislation enacting, adopting, and agreeing to be bound by this compact shall be deemed to waive, repeal, supersede, or otherwise amend and conform all such rules, policies, or procedures to allow for the effectiveness of this compact to the fullest extent permitted by the constitution of any affected member state.

2. Date and location of the Convention. Unless otherwise specified by Congress in its call, the Convention shall be held in Dallas, Texas, and commence proceedings at 9:00 a.m. central standard time on the sixth Wednesday after the latter of the effective date of article V of this compact or the enactment date of the Congressional resolution calling the Convention.

3. In addition to all other powers and duties conferred by state law which are consistent with the terms and conditions of this compact, the chief law enforcement officer of each member state is empowered to defend the compact from any legal challenge, as well as to seek civil mandatory and prohibitory injunctive relief to enforce this compact; and shall take such action whenever the compact is challenged or violated.

4. The exclusive venue for all actions in any way arising under this compact shall be in the United States District Court for the northern district of Texas or the courts of the state of Texas within the jurisdictional boundaries of the foregoing district court. Each member state shall submit to the jurisdiction of said courts with respect to such actions. However, upon written request by the chief law enforcement officer of any member state, the commission may elect to waive this provision for the purpose of ensuring an action proceeds in the venue that allows for the most convenient and effective enforcement or defense of this compact. Any such waiver shall be limited to the particular action to which it is applied and not construed or relied upon as a general waiver of this provision. The waiver decisions of the commission under this provision shall be final and binding on each member state.

5. The effective date of this compact and any of its articles is the latter of:

a. The date of any event rendering the same effective according to its respective terms and conditions; or

b. The earliest date otherwise permitted by law.

6. Article VIII of this compact is hereby deemed nonseverable prior to termination of the compact. However, if any other phrase, clause, sentence, or provision of this compact, or the applicability of any other phrase, clause, sentence, or provision of this compact to any government, agency, person, or circumstance, is declared in a final judgment to be contrary to the Constitution of the United States, contrary to the state constitution of any member state, or is otherwise held invalid by a court of competent jurisdiction, such phrase, clause, sentence, or provision shall be severed and held for naught, and the validity of the remainder of this compact and the applicability of the remainder of this compact to any government, agency, person, or circumstance shall not be affected. Furthermore, if this compact is declared in a final judgment by a court of competent jurisdiction to be entirely contrary to the state constitution of any member state or otherwise entirely invalid as to any member state, such member state shall be deemed to have withdrawn from the compact, and the compact shall remain in full force and effect as to any remaining member state. Finally, if this compact is declared in a final judgment by a court of competent jurisdiction to be wholly or substantially in violation of Article I, Section 10, of the Constitution of the United States, then it shall be construed and enforced solely as reciprocal legislation enacted by the affected member states.

7. Termination. This compact shall terminate and be held for naught when the compact is fully performed and the Constitution of the United States is amended by the Balanced Budget Amendment. However, notwithstanding anything to the contrary set forth in this compact, in the event such amendment does not occur on or before April 12, 2031, the compact shall terminate as follows:

a. The commission shall dissolve and wind up its operations within ninety days thereafter, with the compact administrator giving notice of such dissolution and the operative effect of this section to the compact notice recipients; and

b. Upon the completed dissolution of the commission, this compact shall be deemed terminated, repealed, void ab initio, and held for naught.

Effective Date.

This chapter became effective August 1, 2015.

CHAPTER 54-04 Engrossing and Enrolling Legislative Bills [Repealed]

[Repealed by S.L. 1991, ch. 567, § 1]

Note.

Section 54-04-02 had previously been repealed by section 4 of chapter 488, S.L. 1971.

CHAPTER 54-05 Legislative Lobbying [Repealed]

[Repealed by S.L. 1975, ch. 106, § 673; S.L. 1975, ch. 465, § 8]

CHAPTER 54-05.1 Legislative Lobbying

54-05.1-01. Legislative intent.

It is hereby declared to be the intent of the legislative assembly to require that lobbyists register as such before engaging in lobbying activity and to require certain reporting procedures by lobbyists.

Source:

S.L. 1975, ch. 465, § 1.

Collateral References.

Validity, Construction, and Application of State and Municipal Enactments Regulating Lobbying and of Lobbying Contracts, 35 A.L.R.6th 1.

Law Reviews.

Article: Lawyering and Lobbying: The Discipline of Public Policy Advocacy, 87 N.D. L. Rev. 59 (2011).

54-05.1-02. Applicability — Meaning of lobbyist.

  1. This chapter applies to any person who, in any manner whatsoever, directly or indirectly, performs any of the following activities:
    1. Attempts to secure the passage, amendment, or defeat of any legislation by the legislative assembly or the approval or veto of any legislation by the governor of the state.
    2. Attempts to influence decisions made by the legislative management or by an interim committee of the legislative management.
  2. This chapter does not apply to any person who is:
    1. A legislator.
    2. A private citizen appearing on the citizen’s own behalf.
    3. An employee, officer, board member, volunteer, or agent of the state or its political subdivisions whether elected or appointed and whether or not compensated, who is acting in that person’s official capacity.
    4. Invited by the chairman of the legislative management, an interim committee of the legislative management, or a standing committee of the legislative assembly to appear before the legislative management, interim committee, or standing committee for the purpose of providing information.
    5. An individual who appears before a legislative committee for the sole purpose of presenting testimony on behalf of a trade or professional organization or a business or industry if the individual is introduced to the committee by the registered lobbyist for the trade or professional organization or the business or industry.
  3. For the purposes of this chapter, persons required to register under this chapter because of the performance of the activities described in subsection 1 must be known as “lobbyists”.

Source:

S.L. 1975, ch. 465, § 2; 1977, ch. 478, § 1; 1995, ch. 496, § 1; 2009, ch. 482, § 45.

Law Reviews.

Article: Lawyering and Lobbying: The Discipline of Public Policy Advocacy, 87 N.D. L. Rev. 59 (2011).

54-05.1-03. Registration as a lobbyist — Fee — Filing of information — Public inspection — Certificate of registration.

    1. Before engaging in any of the activities listed in section 54-05.1-02, an individual shall register with the secretary of state and receive a certificate of registration and a distinctive lobbyist identification badge that must be prominently worn by the lobbyist when engaged in any of the activities listed in section 54-05.1-02 while on the capitol grounds. In lieu of wearing the official badge provided by the secretary of state, a lobbyist may wear a reasonable reproduction of the official badge that contains the name of the lobbyist and any of the following: the word lobbyist, the registration number of the lobbyist, or the organization name of the lobbyist in characters no smaller than one-quarter inch [6.35 millimeters]. If a lobbyist’s official badge is lost or destroyed, the lobbyist may obtain a duplicate badge by applying to the secretary of state and paying a fee of ten dollars.
    2. The registrant shall state in writing:
      1. The registrant’s full name and business address; and
      2. The name and address of any person upon whose behalf the registrant appears, any person in whose interest the registrant appears or works, the duration of the employment or appearances, and by whom the registrant is paid or is to be paid.
    3. The registration period commences on July first and expires on June thirtieth of the following calendar year unless an earlier expiration date is requested by the registrant.
    4. Each lobbyist shall file with the secretary of state, before the issuance of a certificate of registration, a written authorization to act as a lobbyist. The authorization must be signed by the official of the corporation, limited liability company, association, group, or organization employing the lobbyist and may be filed by facsimile transmission.
    5. The secretary of state shall charge a fee of twenty-five dollars for registering each lobbyist and the first person represented by the lobbyist and an additional fee of fifteen dollars for each subsequent person represented by the lobbyist.
  1. Each lobbyist shall file, on or before August first following the expiration of the registration period, with the secretary of state a detailed report. The report must include a statement as to each expenditure, if any, of sixty dollars or more expended on any single occasion on any individual, including the spouse or other family member of a member of the legislative assembly or the governor, in carrying out the lobbyist’s work or include a statement that no reportable expenditures were made during the reporting period. The statement of each expenditure must include a description of the nature of the expenditure, the amount of the expenditure, the date of the expenditure, and the name of the recipient of the expenditure. A state official or agency may not require reporting of lobbyist expenditures other than is required under this subsection. The secretary of state shall provide a prescribed form for reporting under this chapter. The secretary of state shall charge and collect fees for late filing of the detailed expenditure report as follows:
    1. Within sixty days after the date provided in this subsection for filing the detailed expenditure report, twenty-five dollars; and
    2. Thereafter, fifty dollars.
  2. If a lobbyist fails to file a detailed expenditure report and pay any late fee by October first, the lobbyist’s registration is automatically revoked. The lobbyist’s registration may be reinstated if the lobbyist thereafter files the detailed expenditure report and pays any outstanding late fee.
  3. All information required to be filed under this section with the secretary of state and that previously filed must be compiled by the secretary of state within forty days after the close of the period for which the information is filed and the files must be open and accessible for public inspection during the normal working hours.

Source:

S.L. 1975, ch. 465, § 3; 1983, ch. 552, § 1; 1987, ch. 621, § 1; 1993, ch. 75, § 18; 1993, ch. 54, § 106; 1995, ch. 496, § 2; 1999, ch. 445, § 1; 2001, ch. 2, § 2; 2005, ch. 474, § 1; 2009, ch. 462, § 3; 2011, ch. 390, § 1.

Law Reviews.

Article: Lawyering and Lobbying: The Discipline of Public Policy Advocacy, 87 N.D. L. Rev. 59 (2011).

54-05.1-04. Powers of secretary of state — Granting and revoking of certificates — Referrals and reports to the attorney general.

  1. The secretary of state shall:
    1. Grant a certificate of registration and design and furnish a distinctive lobbyist identification badge to any individual registering under section 54-05.1-03 who supplies the required information.
    2. Revoke the certificate of registration of any individual who has been convicted of violating any provision of this chapter.
    3. Refer on the secretary of state’s own motion or on the verified complaint of any other person, to the attorney general for investigation, the activities of any individual who the secretary of state has reason to believe has been acting as a lobbyist and who may be in violation of this chapter.
    4. Make available upon request of any citizen expenditures by categories reported by registered lobbyists to have been expended on each individual in carrying out that registrant’s work.
    5. Supply a current list of registered lobbyists for each legislator upon request.
  2. The secretary of state may revoke the certificate of registration issued under this chapter for failure to file the reports required by this chapter when due, but no certificate may be revoked if, before the last day for filing the reports, the secretary of state has been informed in writing of extenuating circumstances justifying the failure.
  3. The secretary of state shall compile and make available to the public a report of the total amount of expenditures reported by registrants.
  4. The secretary of state may establish procedures for registration of lobbyists and filing of lobbyist expenditure reports through the internet or other electronic means, and may make lobbyist expenditure reports available on the secretary of state’s internet website.

Source:

S.L. 1975, ch. 465, § 4; 1999, ch. 445, § 2; 2005, ch. 474, § 2.

Law Reviews.

Article: Lawyering and Lobbying: The Discipline of Public Policy Advocacy, 87 N.D. L. Rev. 59 (2011).

54-05.1-05. Invitations and gifts to legislators.

  1. When any lobbyist invites a legislator to attend a function sponsored in whole or in part by the lobbyist or the principal, the lobbyist shall, upon the request of the legislator, supply the legislator with the true or estimated cost of the gratuity and allow the legislator to attend the function and pay the legislator’s own share of the expenses.
  2. When any lobbyist offers a gift of a non-information-bearing nature to a legislator, the lobbyist shall, upon the request of the legislator, supply the legislator with the true or estimated cost of the gratuity and allow the legislator to pay the cost of and receive the gift.

Source:

S.L. 1975, ch. 465, § 5.

54-05.1-06. Unlawful means to influence legislative assembly.

In addition to the violation of any other provision of this chapter, it is unlawful for any lobbyist or for any other person:

  1. To directly or indirectly give or agree to give any money, property, or valuable thing, or any security therefor, to any person for that person’s service or the service of any other person in procuring the passage or defeat of any measure before the legislative assembly or either house thereof, or before any committee thereof, upon the contingency or condition that any measure will be passed or defeated.
  2. To directly or indirectly receive or agree to receive any such money, property, thing of value, or security for such service, upon any such contingency or condition, as set forth in the preceding subsection.
  3. To attempt to influence any member of the legislative assembly without first making known to such member the real and true interest the person has in such measure, either personally or as agent or attorney.

Source:

S.L. 1975, ch. 465, § 6.

Cross-References.

Bribery, see N.D.C.C. § 12.1-12-01.

Unlawful compensation for assistance in government matters, see N.D.C.C. § 12.1-12-03.

Collateral References.

Validity, Construction, and Application of State Statutes Regulating or Proscribing Payment in Connection with Gathering Signatures on Nominating Petitions for Public Office or Initiative Petitions. 40 A.L.R.6th 317.

Law Reviews.

Article: Lawyering and Lobbying: The Discipline of Public Policy Advocacy, 87 N.D. L. Rev. 59 (2011).

54-05.1-07. Penalty.

Any person who violates any provisions of this chapter is guilty of a class B misdemeanor except that a violation of section 54-05.1-02 or 54-05.1-03 is an infraction. Whether a person is subjected to criminal prosecution under this section, and in addition to the registration fee that may be assessed when the person submits the registration to the secretary of state, the person may be assessed a civil penalty by the secretary of state, following written notice to the person of an intent to assess the penalty, in an amount not to exceed two times the amount set forth in subdivision e of subsection 1 of section 54-05.1-03 which is chargeable to a lobbyist. Any civil penalty must be assessed and collected before a person is issued a certificate of registration. The assessment of a civil penalty may be appealed to the district court of the person’s county of residence or Burleigh County, but only on the basis that the secretary of state’s administrative determination that the person acted as a lobbyist when not registered as a lobbyist was clearly erroneous.

Source:

S.L. 1975, ch. 465, § 7; 1995, ch. 496, § 3; 2011, ch. 390, § 2.

CHAPTER 54-06 General Provisions

54-06-01. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

  1. “Appointed or appointive state officers and members of appointive state boards, bureaus, and commissions, and deputies, assistants, secretaries, clerks, and employees” includes all persons whose office or employment is held by virtue of any appointment or employment however made, other than an election by the voters of the state, whether or not such office or employment is created by an act of the legislative assembly.
  2. “Elected and elective state officers” includes the governor, the lieutenant governor, the attorney general, the secretary of state, the state auditor, the state treasurer, the superintendent of public instruction, the agriculture commissioner, the insurance commissioner, the tax commissioner, and three public service commissioners.

Source:

I.M. Nov. 8, 1932, § 3, S.L. 1933, p. 505; R.C. 1943, § 54-0601; S.L. 1995, ch. 334, § 3.

Cross-References.

Deputies, see N.D.C.C. ch. 44-03.

Eligibility and qualifications, see N.D.C.C. ch. 44-01.

Nepotism prohibited, see N.D.C.C. §§ 44-04-09, 44-04-10.

Oath of office, see N.D.C.C. § 44-01-05.

Removal from office, see N.D.C.C. chs. 44-09, 44-10, 44-11.

Vacancies in office, see N.D.C.C. § 44-01-04 and N.D.C.C. ch. 44-02.

54-06-02. State officers reside at capital. [Repealed]

Repealed by S.L. 1993, ch. 506, § 1.

54-06-03. Report of state officers and boards.

Except as otherwise provided by law, all officers, departments, boards, commissions, and state institutions that make and transmit reports annually or biennially to the governor and the secretary of state shall submit their reports to the governor and the secretary of state not later than December first of the year in which the report is required to be made.

Source:

S.L. 1890, ch. 119, § 34; R.C. 1895, § 73; R.C. 1899, § 73; S.L. 1901, ch. 139, § 1; R.C. 1905, § 73; S.L. 1913, ch. 246, § 1; C.L. 1913, § 95; R.C. 1943, § 54-0603; S.L. 1963, ch. 346, § 1; 1973, ch. 403, § 42; 1975, ch. 466, § 44; 1995, ch. 350, § 41.

54-06-04. Form and number of reports to be submitted. [Effective through August 31, 2022]

  1. The following executive and administrative officers and departments shall submit to the governor and the secretary of state reports covering their operations for the two preceding fiscal years, except as otherwise provided by law, not later than the first day of December each year after the regular session of the legislative assembly:
    1. Secretary of state.
    2. State auditor.
    3. Insurance commissioner.
    4. Attorney general.
    5. Agriculture commissioner.
    6. Superintendent of public instruction.
    7. State tax commissioner.
    8. Public service commission.
    9. Department of corrections and rehabilitation.
    10. Department of transportation.
    11. State department of health.
    12. Department of human services.
    13. Workforce safety and insurance.
    14. Office of management and budget.
    15. State treasurer.
    16. Labor commissioner.
    17. Department of financial institutions.
    18. Game and fish department.
    19. Industrial commission.
    20. Job service North Dakota.
    21. Board of university and school lands.
    22. Department of environmental quality.
  2. A committee composed of the director of the state historical society, the state librarian, and the secretary of state, or other persons designated to represent them, shall meet at the call of the secretary of state to set the requirements for form, style, materials, and content of biennial reports.
  3. This section does not prohibit the executive and administrative officers and departments enumerated in subsection 1 from receiving additional copies of their reports as may be available and printed.
  4. All officers, departments, boards, commissions, and state institutions that submit reports covering their operations for the two preceding fiscal years to the governor and the secretary of state shall submit copies of their reports in the form and style, using the materials, and having the content prescribed under subsection 2 on or before the first day of December in each year after the regular session of the legislative assembly. If submitted, one copy of each report must be also distributed to the following agencies:
    1. Legislative council.
    2. Office of management and budget.
    3. State law library.
    4. The libraries of each state institution of higher education.
    5. State archivist for official and public use.
  5. All executive and administrative officers and departments that submit reports under this section shall bear the costs of the preparation and any printing of the reports.
  6. All reports required under this section to be submitted to the secretary of state must be subsequently transmitted by the secretary of state to the state archivist for official and public use following their receipt and review by the secretary of state.

Source:

S.L. 1890, ch. 119, § 34; R.C. 1895, § 73; R.C. 1899, § 73; S.L. 1901, ch. 139, § 1; R.C. 1905, § 73; S.L. 1913, ch. 246, § 1; C.L. 1913, § 95; R.C. 1943, § 54-0604; S.L. 1963, ch. 346, § 2; 1969, ch. 448, § 25; 1973, ch. 403, § 43; 1975, ch. 466, § 45; 1983, ch. 82, § 126; 1989, ch. 72, § 18; 1991, ch. 592, § 29; 1991, ch. 714, § 18; 1993, ch. 5, § 19; 1993, ch. 613, § 5; 1995, ch. 243, § 2; 1995, ch. 350, § 42; 1999, ch. 446, §§ 1, 2; 2001, ch. 88, § 88; 2001, ch. 488, § 25; 2001, ch. 503, § 12; 2003, ch. 459, § 5; 2003, ch. 561, § 3; 2017, ch. 199, § 56, eff April 29, 2019.

Note.

This section is effective upon the receipt by the legislative council of the certification by the chief of the environmental health section of the state department of health attesting that all necessary federal approvals have been obtained and all necessary federal and other agreements have been amended to ensure the state will continue to meet the primacy requirements it currently satisfies after the transfer of authority, powers, and duties from the state department of health to the department of environmental quality provided under S.L. 2017, ch. 199, § 75. [Contingency met in 2019]

Cross-References.

State engineer to report as prescribed in this section, see N.D.C.C. § 61-03-04.

54-06-04. Form and number of reports to be submitted. [Effective September 1, 2022]

  1. The following executive and administrative officers and departments shall submit to the governor and the secretary of state reports covering their operations for the two preceding fiscal years, except as otherwise provided by law, not later than the first day of December each year after the regular session of the legislative assembly:
    1. Secretary of state.
    2. State auditor.
    3. Insurance commissioner.
    4. Attorney general.
    5. Agriculture commissioner.
    6. Superintendent of public instruction.
    7. State tax commissioner.
    8. Public service commission.
    9. Department of corrections and rehabilitation.
    10. Department of transportation.
    11. Workforce safety and insurance.
    12. Office of management and budget.
    13. State treasurer.
    14. Labor commissioner.
    15. Department of financial institutions.
    16. Game and fish department.
    17. Industrial commission.
    18. Job service North Dakota.
    19. Board of university and school lands.
    20. Department of environmental quality.
  2. A committee composed of the director of the state historical society, the state librarian, and the secretary of state, or other persons designated to represent them, shall meet at the call of the secretary of state to set the requirements for form, style, materials, and content of biennial reports.
  3. This section does not prohibit the executive and administrative officers and departments enumerated in subsection 1 from receiving additional copies of their reports as may be available and printed.
  4. All officers, departments, boards, commissions, and state institutions that submit reports covering their operations for the two preceding fiscal years to the governor and the secretary of state shall submit copies of their reports in the form and style, using the materials, and having the content prescribed under subsection 2 on or before the first day of December in each year after the regular session of the legislative assembly. If submitted, one copy of each report must be also distributed to the following agencies:
    1. Legislative council.
    2. Office of management and budget.
    3. State law library.
    4. The libraries of each state institution of higher education.
    5. State archivist for official and public use.
  5. All executive and administrative officers and departments that submit reports under this section shall bear the costs of the preparation and any printing of the reports.
  6. All reports required under this section to be submitted to the secretary of state must be subsequently transmitted by the secretary of state to the state archivist for official and public use following their receipt and review by the secretary of state.

Department of health and human services.

Source:

S.L. 1890, ch. 119, § 34; R.C. 1895, § 73; R.C. 1899, § 73; S.L. 1901, ch. 139, § 1; R.C. 1905, § 73; S.L. 1913, ch. 246, § 1; C.L. 1913, § 95; R.C. 1943, § 54-0604; S.L. 1963, ch. 346, § 2; 1969, ch. 448, § 25; 1973, ch. 403, § 43; 1975, ch. 466, § 45; 1983, ch. 82, § 126; 1989, ch. 72, § 18; 1991, ch. 592, § 29; 1991, ch. 714, § 18; 1993, ch. 5, § 19; 1993, ch. 613, § 5; 1995, ch. 243, § 2; 1995, ch. 350, § 42; 1999, ch. 446, §§ 1, 2; 2001, ch. 88, § 88; 2001, ch. 488, § 25; 2001, ch. 503, § 12; 2003, ch. 459, § 5; 2003, ch. 561, § 3; 2017, ch. 199, § 56, eff April 29, 2019; 2021, ch. 352, § 484, eff September 1, 2022.

54-06-04.1. State agencies, departments, and institutions charging fees shall make reports.

All state agencies, departments, and institutions which license, inspect, or regulate private business activities or products and charge fees for such services, except the secretary of state, shall prepare and submit to the office of the budget, with the budget estimates required by section 54-44.1-04, a report for the last two fiscal years giving information about the costs of providing each service and the fees charged for the granting or providing of such service. The report must accurately present the costs and revenues in accordance with the various categories of service and such report must be completed and supported by such accounting records and allocation procedures as are acceptable to the director of the budget.

Source:

S.L. 1971, ch. 489, § 1; 1973, ch. 412, § 1; 1983, ch. 82, § 127; 1983, ch. 553, § 1.

54-06-04.2. Information to employees on state employee health and retirement and social security benefit program contributions and premiums paid by the state.

A report providing a summary of payments made by the state for premiums and contributions for state employee insurance, retirement, and federal social security benefit programs for each state employee must be provided to each employee every calendar year. The report must be in a form adopted by those state agencies and institutions responsible for preparing state employee payrolls. The information provided must include any portion of required employee retirement program contributions paid by the state on behalf of the employee and must include the accumulated state payments for these benefit programs for the current calendar year.

Source:

S.L. 1985, ch. 559, § 1.

54-06-04.3. Joint publication and distribution of information by state agencies — Fees.

Any state agency may cooperate with any other state agency to jointly publish and distribute information and may arrange to have the joint publication or distribution, or both, coordinated by a private entity. Any state agency may provide information it has collected or developed, including mailing lists, to each other or to any private entity for the purpose of distributing jointly or individually issued publications or other information. If a state agency publication is available on the agency’s website or otherwise available in an electronic format and a person requests a paper copy of the publication, the state agency may charge a reasonable fee for providing the paper copy and for mailing the paper copy of the publication.

Source:

S.L. 1991, ch. 568, § 3; 2017, ch. 14, § 25, eff July 1, 2017.

54-06-05. Office of management and budget may condense report — Number of copies of report. [Repealed]

Repealed by S.L. 1995, ch. 350, § 56.

54-06-06. Salaries of state officers and employees — Periodic payment.

Unless otherwise provided by law, the office of management and budget shall prepare warrants for the salaries of state officers and employees not less frequently than monthly as the same become due.

Source:

S.L. 1891, ch. 10, § 2; R.C. 1895, § 337; R.C. 1899, § 337; R.C. 1905, § 392; C.L. 1913, § 655; R.C. 1943, § 54-0606; S.L. 1959, ch. 372, § 66; 2003, ch. 388, § 4.

54-06-07. Salaries full compensation — Fees paid over to state treasurer.

All salaries of elective and appointive state officers shall be full compensation for all official services. All fees, which are not otherwise by the laws of this state directed to be deposited in a special fund or disbursed for a special purpose, received or charged by any elective or appointive officer or deputy state officer for any act or service rendered in the officer’s official capacity must be accounted for and paid over by the officer monthly to the state treasurer and must be credited to the general fund of the state.

Source:

I.M. Nov. 8, 1932, § 6, S.L. 1933, p. 505; 1933, ch. 196, § 2; 1943, ch. 202, § 4; R.C. 1943, § 54-0607.

Cross-References.

Officers to account for moneys collected, see N.D.C.C. § 44-01-07.

Collateral References.

Constitutional provision fixing or limiting salary of public officer as precluding allowance for expenses or disbursements, 5 A.L.R.2d 1182.

Payment of salary to de facto officer as defense to action or proceeding by de jure officer for salary, 64 A.L.R.2d 1375.

54-06-08. Record of fees kept by state officers — Report to state treasurer.

Every state officer or deputy state officer required by the Constitution of North Dakota, or by any provision of the laws of this state, to pay into the state treasury all fees and profits arising from such office, shall keep a record of all such fees or profits in a book kept for that purpose. Such book is the property of the state. Each officer shall report to the state treasurer monthly the amount of fees or profits received, verified by oath, and at the same time shall pay the amount of such fees or profits to the treasurer, taking duplicate receipts therefor. One of the receipts must be filed with the office of management and budget forthwith. The office of management and budget shall charge the state treasurer with the amount thereof.

Source:

S.L. 1890, ch. 183, § 7; 1891, ch. 1, § 2; R.C. 1895, § 327; R.C. 1899, § 327; S.L. 1901, ch. 95, §§ 1, 3; R.C. 1905, § 379; C.L. 1913, § 638; R.C. 1943, § 54-0608; S.L. 1959, ch. 372, § 67; 1975, ch. 106, § 577.

Cross-References.

Examination of state officers by state auditor, see N.D.C.C. § 54-10-01.

Officers to account for money collected, see N.D.C.C. § 44-01-07.

Notes to Decisions

Examination Fees.

It is the duty of the superintendent of public instruction to pay into the state treasury any balance remaining out of fees collected for conducting examinations. State v. Stockwell, 23 N.D. 70, 134 N.W. 767, 1911 N.D. LEXIS 72 (N.D. 1911).

54-06-08.1. Clearing accounts and cash balances maintained by state agencies.

All departments, institutions, or agencies of the state may maintain, subject to approval of the state auditor and the state treasurer, in the Bank of North Dakota, or, if the state entity is located outside Bismarck, in another state or federally chartered financial institution, an account for clearing or cashing of checks and making change. To accommodate peak processing periods, the balance in an account at a financial institution other than the Bank of North Dakota may exceed the maximum amount of federal insurance coverage available if the excess in the account is secured by another form of security or security deposit; however, the balance may exceed the maximum amount of federal insurance coverage available only for the time it takes to clear the checks. Any check written on the account may be used only to transfer funds to the Bank of North Dakota or the state treasurer. A financial institution shall report to the state auditor in writing within thirty days after opening or closing an account for a state entity under this section. Subject to the approval of the state auditor, a state entity may maintain a cash balance reasonable for the conduct of business at the location of the entity.

Source:

S.L. 1965, ch. 343, § 1; 1989, ch. 633, § 1; 1995, ch. 497, § 1.

Cross-References.

Public fund depositories, see N.D.C.C. ch. 21-04.

54-06-08.2. Payment by credit or debit card or by electronic fund transfer — State credit card processor — Fees.

  1. A state agency, board, or commission, the judicial branch, or any political subdivision may accept payment by credit or debit card or by electronic fund transfer of any fee, interest, penalty, tax, or other payment that is due or collectible by the agency, board, or commission. The judicial branch may accept payment by credit or debit card or by electronic fund transfer for any fees, costs, or other assessments required or imposed under state law or court rule.
  2. The Bank of North Dakota is the state credit card administrator for credit card transactions of state agencies, boards, or commissions. The Bank of North Dakota shall select a credit card processor or processors to provide credit card services to state agencies, boards, and commissions. All funds from credit card transactions must be deposited in the respective entity’s account in the Bank of North Dakota.
  3. Except as otherwise provided under section 20.1-03-32, an executive branch agency may charge a fee to be added to a payment as a service charge for the acceptance of a payment made by a credit or debit card or an electronic fund transfer. The Bank of North Dakota shall adopt rules establishing the terms under which executive agencies may charge a service fee under this subsection to be in compliance with a credit card company’s rules and shall approve the amount that may be charged by an executive agency.

Source:

S.L. 1995, ch. 498, § 1; 1997, ch. 437, § 1; 2009, ch. 15, § 17; 2011, ch. 391, § 1.

54-06-09. Mileage and travel expense of state officers and employees.

  1. State officials, whether elective or appointive, and their deputies, assistants, and clerks, or other state employees, entitled by law to be reimbursed for mileage or travel expense, must be allowed and paid for mileage and travel expense.
    1. For each mile [1.61 kilometers] actually and necessarily traveled in the performance of official duty when the travel is by private airplane, the individual is entitled to a sum equal to one and one-half times the mileage reimbursement amount established under subdivision c for travel by motor vehicle. Mileage by private aircraft must be computed by actual air mileage when only one state employee or official is traveling; if two or more state employees or officials are traveling by private aircraft, the actual mileage must be based on the road mileage between the geographical points. Reimbursement for private airplane travel must be calculated as follows:
      1. If reimbursement is for one properly authorized and reimbursable passenger, reimbursement must be paid on a per mile basis as provided in this subsection.
      2. If reimbursement is claimed for a chartered private aircraft, reimbursement may not exceed the cost of regular coach fare on a commercial flight, if one is scheduled between the point of departure, point of destination, and return, for each properly authorized and reimbursable passenger on the charter flight; or, where there is no such regularly scheduled commercial flight, the actual cost of the charter.
    2. Except as provided in subdivision a, when travel is by rail or certificated air taxi commercial operator or other common carrier, including regularly scheduled flights by airlines, the individual is entitled to reimbursement for the amount actually and necessarily expended therefor in the performance of official duties.
    3. The director of the office of management and budget shall adopt policies establishing mileage reimbursement for actual and necessary travel in the performance of official duty when the travel is by motor vehicle, the use of which is required by the employing entity. The director shall amend the policies when necessary to set reimbursement at the same rate as established by the United States general services administration for privately owned vehicles.
  2. No reimbursement may be paid for leased private aircraft, except for leased or rented private aircraft from a recognized fixed base aviation operator who is in the business of leasing and renting private aircraft and is located on an airport open for public use.
  3. If only one person engages in such travel in a motor vehicle exceeding at any geographical point three hundred miles [482.80 kilometers] beyond the borders of this state, reimbursement is limited to eighteen cents per mile [1.61 kilometers] for miles driven in excess of six hundred miles [965.60 kilometers] of round trip out-of-state travel.
  4. An official, deputy, assistant, clerk, or other employee, when required to travel by motor vehicle or truck in the performance of official duty, shall use a state-owned vehicle whenever possible unless exempted under section 24-02-03.3. However, an agency, institution, department, board, bureau, or commission may allow use of an official’s, deputy’s, or employee’s personal motor vehicle in circumstances authorized by the official, deputy, or the employee’s supervisor. If personal motor vehicle use is authorized under this subsection, the agency may also allow mileage reimbursement at a rate less than that otherwise provided in this section. When official travel is by motor vehicle or airplane owned by the state or by any department or political subdivision of the state, no allowance may be made or paid for such mileage, except that governmental entities may share expenses when officials or employees of those entities travel in the same motor vehicle or aircraft.
  5. Notwithstanding the other provisions of this section, state employees permanently located outside the state or on assignments outside the state for an indefinite period of time, exceeding at least thirty consecutive days, must be allowed and paid forty-five cents per mile [1.61 kilometers] for each mile [1.61 kilometers] actually and necessarily traveled in the performance of official duty when such travel is by motor vehicle, and the three-hundred-mile [482.80-kilometer] restriction imposed by subsection 3 does not apply.
  6. Before any allowance for any such mileage or travel expenses may be made, the official, deputy, assistant, clerk, or other employee shall file with the employee’s department, institution, board, commission, or agency an itemized statement showing the mileage traveled, the hour of departure and return, the days when and how traveled, the purpose thereof, and such other information and documentation as may be prescribed by rule of the employee’s department, institution, board, commission, or agency. The statement must be submitted to the employee’s department, institution, board, commission, or agency for approval and must be paid only when approved by the employee’s department, institution, board, commission, or agency.

Source:

I.M. June 29, 1932, § 1, S.L. 1933, p. 496; 1937, ch. 187, § 1; R.C. 1943, § 54-0609; S.L. 1949, ch. 313, § 1; 1957 Supp., § 54-0609; S.L. 1959, ch. 325, § 1; 1963, ch. 347, § 1; 1965, ch. 304, § 5; 1967, ch. 382, § 1; 1969, ch. 399, § 2; 1971, ch. 448, § 2; 1973, ch. 413, § 1; 1973, ch. 414, § 1; 1975, ch. 418, § 3; 1975, ch. 467, § 1; 1979, ch. 479, § 2; 1981, ch. 455, § 3; 1983, ch. 495, § 4; 1985, ch. 501, § 2; 1991, ch. 569, § 1; 1993, ch. 507, § 1; 1995, ch. 427, § 2; 1997, ch. 41, § 10; 1997, ch. 435, § 2; 2001, ch. 472, § 1; 2001, ch. 473, § 2; 2005, ch. 475, § 1; 2007, ch. 455, § 1; 2009, ch. 386, § 7; 2011, ch. 391, § 2.

Cross-References.

Traveling expenses, see N.D.C.C. §§ 44-08-03 to 44-08-05.1.

Notes to Decisions

Applicability.

This section is not applicable to members of the legislative or judicial branch of government. Verry v. Trenbeath, 148 N.W.2d 567, 1967 N.D. LEXIS 153 (N.D. 1967).

State-Owned Vehicle in Lieu of Mileage.

The purchase of an automobile for the use of the governor in connection with the performance of his official duties in lieu of payment or reimbursement for the expense of travel merely changes the mode of transportation available to the governor and did not increase the emoluments of his office. State ex rel. Lyons v. Guy, 107 N.W.2d 211, 1961 N.D. LEXIS 57 (N.D. 1961).

Out-of-State Travel.

This section and N.D.C.C §§ 28-26-06 and 31-01-16 do not limit allowable disbursements for travel expense to travel within this state. Richter v. Jones, 378 N.W.2d 209, 1985 N.D. LEXIS 439 (N.D. 1985).

Collateral References.

Constitutional provision fixing or limiting salary of public officer as precluding allowance for mileage or traveling expenses, 5 A.L.R.2d 1182.

54-06-09.1. Certification of unlawful expense and traveling account — Penalty — Action for violation. [Repealed]

Repealed by S.L. 1975, ch. 106, § 673.

54-06-10. Out-of-state travel — Authorization necessary. [Repealed]

Repealed by S.L. 1993, ch. 508, § 1.

54-06-11. Amounts of bonds of state officers. [Repealed]

Repealed by S.L. 1999, ch. 113, § 24.

54-06-12. Publishing false statements — Penalty.

No state official may publish willfully any false statement in regard to any state department, institution, or industry which tends to deceive the public and create a distrust of any state official or employee in charge of such department, institution, or industry, or which tends to obstruct, hinder, and delay the various departments, institutions, and industries of the state. Any person violating the provisions of this section is guilty of a class C felony.

Source:

S.L. 1919, Sp., ch. 36, §§ 1, 4; 1925 Supp., §§ 9347a1, 9347a4; R.C. 1943, § 54-0612; S.L. 1975, ch. 106, § 578.

Collateral References.

Defamation: Privilege accorded state or local governmental administrative records relating to private individual member of public, 40 A.L.R.4th 318.

Defamation: nature and extent of privilege accorded public statements, relating to subject of legislative business or concern, made by member of state or local legislature or council outside of formal proceedings, 41 A.L.R.4th 1116.

54-06-13. Salary limitations suspended. [Repealed]

Repealed by omission from this code.

54-06-14. Annual leave and sick leave for state employees.

Annual leave and sick leave must be provided for all persons in the permanent employment of this state who are not employed under a written contract of hire setting forth the terms and conditions of their employment, within the limitations, terms, and provisions of this section. Annual leave for an employee entitled to it must be within a range of a minimum of one working day per month of employment to a maximum of two working days per month of employment, based on tenure of employment, to be fixed by rules adopted by the employing unit. Sick leave for an employee entitled to it must be within a range of a minimum of one working day per month of employment to a maximum of one and one-half working days per month of employment, based on tenure of employment, to be fixed by rules adopted by the employing unit. Annual leave must be compensated for on the basis of full pay for the number of working days’ leave credited to the employee. Sick leave must be compensated for on the basis of full pay for absence due to illness on working days during tenure of employment. An employee with at least ten continuous years of state employment is entitled to a lump sum payment equal to one-tenth of the pay attributed to the employee’s unused sick leave accrued under this section. An employee’s years of state employment must be deemed continuous if, under the official personnel policy of an agency, unit, or entity, the employee’s work is terminated because of a reduction in force and the employee is reinstated in any agency, unit, or entity within two years, or if the employee is placed on voluntary leave status without pay and the leave lasts no longer than two years for education purposes, or one year for any other voluntary leave without pay. The pay attributed to the accumulated, unused sick leave must be computed on the basis of the employee’s salary or wage at the time the employee leaves the employ of the state and at the rate of one hour of pay for each hour of unused sick leave. The agency, unit, or entity that last employed the employee shall make the lump sum payment from funds appropriated by the legislative assembly to that agency, unit, or entity for salaries and wages. Any state agency, unit, or entity which employs persons subject to this section shall formulate and adopt rules governing the granting of annual leave and sick leave which will effectuate the purpose of this section and best suit the factors of employment of that employing unit. Each employing unit shall file with the office of management and budget a copy of the rules adopted, including any amendments or additions to the rules.

Source:

S.L. 1965, ch. 378, §§ 1, 2; 1989, ch. 634, § 1; 1991, ch. 570, § 1; 1991 Sp., ch. 887, § 1; 2003, ch. 460, § 1.

Note.

Chapter 378, S.L. 1965, included the following two sentences at the end of this section: “Each employee shall be required to take an annual leave, as provided for in this section. The accumulation of sick leave shall be limited to a total of one hundred twenty days”. As the House and Senate journals indicate that these sentences were not adopted, they have been omitted from this section.

54-06-14.1. State leave sharing program. [Repealed]

Source:

S.L. 1993, ch. 509, § 1; 1995, ch. 499, § 1; Repealed by 2021, ch. 394, § 3, eff August 1, 2021.

54-06-14.2. State sick leave sharing program. [Repealed]

Source:

S.L. 1993, ch. 510, § 1; 1995, ch. 499, § 2; Repealed by 2021, ch. 394, § 3, eff August 1, 2021.

54-06-14.3. Disaster services, emergency medical services, and firefighter volunteers — Leave.

  1. Upon issuance of an order or proclamation declaring a state of disaster or emergency pursuant to chapter 37-17.1, or a declaration of at least a level II disaster by the American red cross in this or any other state, the executive officer in charge of a state agency may grant a leave of absence to any full-time employee of that agency who is certified by the American red cross as a disaster services volunteer. The leave of absence must be for the purpose of allowing that employee, upon request by the American red cross, to participate in disaster relief services.
  2. The executive officer in charge of a state agency may grant a paid leave of absence to a full - time employee of that agency who is an emergency medical services personnel volunteer or volunteer firefighter. The leave of absence must be for the purpose of allowing that employee to respond to an emergency at the request of an emergency medical services operation or fire department.
  3. An individual on leave under this section is not deemed to be an employee of the state for the purposes of workforce safety and insurance. The cumulative leave granted under this section may not exceed five working days during any calendar year. The leave may not result in a loss of compensation, seniority, annual leave, sick leave, or accrued overtime for which the employee is otherwise eligible.

Source:

S.L. 1997, ch. 438, § 1; 2003, ch. 561, § 3; 2019, ch. 430, § 1, eff August 1, 2019.

54-06-14.4. State employee leave for organ or bone marrow donation.

The executive officer in charge of a state agency may grant a leave of absence, not to exceed twenty workdays, to an employee for the purpose of donating an organ or bone marrow. Notwithstanding the limitations for the donation and use of donated leave under section 54-06-14.7, an employee may request and use donated annual leave or sick leave for the purpose of donating an organ or bone marrow. If an employee requests donations of sick leave or annual leave, but does not receive the full amount needed for the donation of an organ or bone marrow, the executive officer of the state agency may grant a paid leave of absence for the remainder of the leave up to the maximum total of twenty workdays. The executive officer of the state agency may require verification by a physician regarding the purpose of the leave requested and information from the physician regarding the length of the leave requested. Any paid leave of absence granted under this section may not result in a loss of compensation, seniority, annual leave, sick leave, or accrued overtime for which the employee is otherwise eligible.

Source:

S.L. 2005, ch. 476, § 2; 2021, ch. 394, § 1, eff August 1, 2021.

54-06-14.5. Use of sick leave and annual leave — Birth or adoption — Family leave priority.

  1. During the first six months following birth or placement, an employer shall grant an employee’s request to use up to six weeks of sick leave under section 54-06-14 to care for the employee’s newborn child or to care for a child placed with the employee, by a child-placing agency licensed under chapter 50-12, for adoption or placed with the employee as a precondition to adoption under section 14-15-12, but not both. The employer shall compensate the employee for leave used by the employee under this subsection on the same basis as the employee would be compensated if the leave had been taken due to the employee’s illness, medical needs, or health needs. This subsection does not prevent an employee from using sick leave for the employee’s illness, medical needs, or health needs following the birth of a child or from using leave under section 54-52.4-03.
  2. If an employee requests to use annual leave under section 54-06-14 for any of the reasons identified under subsection 1 of section 54-52.4-02, the employer shall give priority to the request.

History. S.L. 2015, ch. 369, § 1, eff August 1, 2015; 2015, ch. 370, § 1, eff August 1, 2015.

Effective Date.

The amendment of this section by section 1 of chapter 370, S.L. 2015 became effective on August 1, 2015.

This section became effective August 1, 2015.

Note.

Section 54-06-14.5 was enacted and amended by the 2015 Legislative Assembly. Pursuant to section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in section 1 of chapter 370, Session Laws 2015, House Bill 1244; and section 1 of chapter 369, Session Laws 2015, House Bill 1387.

54-06-14.6. Sick leave for consequences of domestic violence, a sex offense, stalking, or terrorizing.

  1. As used in this section:
    1. “Domestic violence” has the same meaning as provided under section 14-07.1-01.
    2. “Immediate family member” means a spouse, parent, child, or sibling as provided under section 12.1-17-07.1.
    3. “Sex offense” means an offense under chapter 12.1-20.
    4. “Stalking” means an offense under section 12.1-17-07.1.
    5. “Terrorizing” means an offense under section 12.1-17-04.
  2. Under section 54-06-14, an employing unit shall grant an employee’s request to use sick leave to:
    1. Seek legal or law enforcement assistance or remedies to ensure the health and safety of the employee or employee’s immediate family members, including preparing for or participating in any civil or criminal legal proceeding related to or derived from domestic violence, a sex offense, stalking, or terrorizing;
    2. Seek treatment by a health care provider for physical or mental injuries caused by domestic violence, a sex offense, stalking, or terrorizing, or to attend to health care treatment for a victim of such offenses who is the employee’s immediate family member;
    3. Obtain or assist an immediate family member in obtaining services from a domestic violence shelter, rape crisis center, or other social services program for relief from domestic violence, a sex offense, stalking, or terrorizing;
    4. Obtain or assist an immediate family member in obtaining mental health counseling related to an incident of domestic violence, sex offense, stalking, or terrorizing, in which the employee or the employee’s immediate family member was a victim of domestic violence, a sex offense, stalking, or terrorizing; or
    5. Participate in safety planning, temporary or permanent relocation, or take other actions to increase the safety of the employee or employee’s family members from future domestic violence, a sex offense, stalking, or terrorizing.
    6. In the discretion of the employee’s supervisor, the sick leave hours may be limited to forty hours per calendar year.

History. S.L. 2015, ch. 368, § 1, eff August 1, 2015.

Effective Date.

This section became effective August 1, 2015.

54-06-14.7. State leave sharing program — Rulemaking.

  1. The human resource management services division of the office of management and budget shall establish a state leave sharing program for permanent employees of the state. The program must provide for a mechanism for state employees to donate accrued annual and sick leave to an employee who does not have available leave who is suffering from a severe, extreme, or life-threatening condition or who is caring for an immediate relative or household member who is suffering from a severe, extreme, or life-threatening condition.
  2. A probationary, temporary, or contracted employee with a limited-term appointment is not eligible to participate in the leave sharing program. An employee may not use more than four months donated leave in any twelve-month period and an employee may not retain leave beyond the occurrence necessitating the leave.
  3. The human resource services division shall:
    1. Require medical certification from a physician, physician assistant, psychologist, or advanced practice nurse practitioner verifying the severe, extreme, or life-threatening nature of the medical condition and the expected duration of the condition;
    2. Track the amount of leave taken by permanent state employees under the program; and
    3. Adopt rules in accordance with chapter 28-32 to implement this section.

Source:

S.L. 2021, ch. 394, § 2, eff August 1, 2021.

54-06-15. Failure of officials and employees working in capitol building to return keys upon termination of employment — Duty of person in charge of employing unit — Payment of fee in lieu of return — Retention of final warrant for salary or wage.

Each elective or appointive official or state employee employed by, or in charge of, an employing unit with offices in the state capitol building who fails or is unable to return a key, or keys, issued to that person pursuant to section 54-21-17.1 shall have that person’s final warrant-check for payment of salary or wages retained by the person in charge of the employing unit, or the person’s designee, until the key or keys are returned, or until the fee in lieu of return provided in this section has been paid. Each official or employee who fails or is unable to return keys issued to the person in the manner provided in section 44-08-18 shall pay a fee of five dollars for each key not returned, which fee must be in lieu of return of a key. Upon receipt of the in lieu fee, the person in charge of the employing unit, or the person’s designee, shall release the official’s or employee’s final warrant-check for payment of salary or wages. When an official or employee terminates that person’s employment and fails or is unable to return a key, or keys, issued to that person, the person in charge of the employing unit, or the person’s designee, shall retain the final warrant-check for payment of the salary or wages of that official or employee until this section has been complied with. As used in this section, the phrase “employing unit” means any agency, department, board, commission, or other governmental unit, including the supreme court, the legislative assembly, and the legislative council, which has offices located in the state capitol building. The phrase “person in charge” means the person who has the overall supervisory and administrative control over the employing unit.

Source:

S.L. 1971, ch. 490, § 2.

Cross-References.

Director of institutions to promulgate rules on issuance and return of keys to capitol building, see N.D.C.C. § 54-21-17.1.

Responsibility of officials and employees for keys, see N.D.C.C. § 44-08-18.

54-06-16. Minimum wage standards for employees of state. [Repealed]

Repealed by S.L. 2003, ch. 388, § 5.

54-06-17. Certain rental-purchase-type agreements authorized.

With the approval of the office of management and budget, any department, agency, or institution of the state currently leasing or renting office equipment under an agreement that is convertible to a rental-purchase or similar agreement, upon certification to the office of management and budget that conversion of such leasing or rental agreement to a rental-purchase or similar agreement is to the financial advantage of the state and does not commit the state to payments thereon beyond the biennium for which funds are available, may convert such rental or leasing agreement to such rental-purchase-type agreement.

Source:

S.L. 1975, ch. 468, § 1.

54-06-18. Director to authorize postage meters.

A state agency, department, or institution, except the institutions under the control and management of the board of higher education, may not obtain or use a postage meter unless authorized to do so by the director of the office of management and budget. Each state agency, department, or institution which is authorized by the director to obtain or use a postage meter shall maintain such records as the director may require and shall allow the director to inspect such records upon request. The office of management and budget shall keep a record of the identification numbers of all postage meters authorized for usage.

Source:

S.L. 1975, ch. 469, § 1; 1991, ch. 592, § 30; 1999, ch. 407, § 2.

54-06-19. Appointive boards, commissions, committees, and councils — Gender balance.

Appointments to boards, commissions, committees, and councils of the state established by this code, if not otherwise provided by law, should be gender balanced to the extent possible and to the extent that appointees are qualified to serve on those boards, commissions, committees, and councils. Any appointment in accordance with this section should be made in a manner that strives to seek gender balance based on the numbers of each gender belonging to the group from which appointments are made. Ex officio members are not to be included in determining gender balance under this section.

Source:

S.L. 1989, ch. 635, § 1.

54-06-20. Indigent civil legal services fund — Distribution — Continuing appropriation — Records.

  1. An advisory committee consisting of the lieutenant governor, the director of the office of management and budget or the director’s designee, and the state court administrator shall distribute moneys deposited in the indigent civil legal services fund. Qualified legal service programs may apply for moneys in the fund. The moneys in the fund must be distributed to legal service programs operating in the state which provide, with funds appropriated by the federal legal services corporation, legal services to persons unable to afford private counsel. Allocation of funds among the programs must be based on the population served by each program, the range of legal services offered, alternative sources of funding, and other factors deemed relevant by the advisory committee. The moneys deposited in the indigent civil legal services fund in the state treasury are hereby appropriated to the advisory committee on a continuing basis for the purpose of implementing and administering a program to provide civil legal assistance to indigent individuals.
  2. Recipients of funds distributed by the advisory committee shall comply with the federal Legal Services Corporation Act [42 U.S.C. 2996 et seq.].
  3. Subject to the limitations in this section, funds distributed under subsection 1 may be used to provide legal services to persons unable to afford private counsel in the following types of cases:
    1. Public benefits, including temporary assistance to needy families, unemployment compensation, general assistance, the supplemental nutrition assistance program, supplemental security income, or social security disability income;
    2. Medical assistance;
    3. Family law matters;
    4. Housing;
    5. Consumer issues; and
    6. Elder law.
  4. The advisory committee and each recipient of funds from the indigent civil legal services fund shall maintain records in accord with the generally accepted accounting principles. The records must account for the receipt and expenditure of all funds distributed and received and must be maintained for a period of five years from the close of the fiscal year in which the funds are distributed or received or until audited, whichever is sooner.

Source:

S.L. 1989, ch. 150, §§ 2-4; 1997, ch. 439, § 1; 2013, ch. 367, § 7.

Effective Date.

The 2013 amendment of this section by section 7 of chapter 367, S.L. 2013 became effective August 1, 2013.

54-06-21. Public employee personnel records — Administration — Access.

The official personnel file on each employee is the file maintained under the supervision of the agency head or the agency head’s designated representative.

  1. No documents that address an employee’s character or performance may be placed in the file unless the employee has had the opportunity to read the material. The employee must acknowledge that the employee has read the material by signing the actual copy to be filed or an attachment to the actual copy to be filed, with the understanding that the signature merely signifies that the employee has read the material to be filed and does not necessarily indicate agreement with its content. If the employee refuses to sign the copy to be filed, the agency head or the agency head’s designated representative shall indicate on the copy that the employee was shown the material, was requested to sign the material to verify that the material had been read, and that the employee refused to sign the copy to be filed. In the presence of the employee and a witness, the agency head or the agency head’s designated representative shall sign and date a statement verifying the refusal of the employee to sign the copy to be filed. The material must then be placed in the file.
  2. The employee has the right to answer any material filed and any answer must be attached to the file copy. The employee’s answer to material filed may not be used as the basis for any subsequent adverse personnel action. If any material is found to be without merit or unfounded through an established grievance procedure, it must be immediately removed from the file and may not be used in any subsequent actions or proceedings against the employee.
  3. The employee or the employee’s designated representative must be permitted to examine the employee’s official personnel file by appointment during normal business hours.
  4. No anonymous letters or materials may be placed in the employee’s file.
  5. The employee must be permitted to reproduce at the employee’s expense any material in the employee’s file.
  6. An employee may file a grievance regarding nonevaluation material placed in the employee’s personnel file. A grievance is limited to an internal agency grievance unless such material is merged into a disciplinary proceeding.
  7. This section does not prohibit administrators from maintaining written notes or records of an employee’s performance separate from the personnel file for the purpose of preparing evaluations or possible disciplinary action.
  8. Administrators are encouraged to place in the employee’s file information of a positive nature, including any such material received from outside competent and responsible sources, indicating special competencies, achievements, performances, or contributions of a professional or civic nature.

Except when the employing agency inserts only salary, insurance, medical, tax, workforce safety and insurance, pretax benefits, or deferred compensation information or employment forms, a record of access must be maintained by the employing agency and must be provided to the employee when the employee examines the employee’s file. As used in this section, the term “public employee” means any person employed by the state and does not include persons employed by any political subdivision of the state.

Source:

S.L. 1991, ch. 571, §§ 1-3; 1995, ch. 500, § 1; 2003, ch. 561, § 3.

54-06-22. Crime victims’ account — Administration.

The agency designated by the governor to administer the victims’ assistance grants under the federal Victims of Crime Act of 1984 [42 U.S.C. 10601 et seq.] shall administer a crime victims’ account in the state treasury. The moneys in the account must be distributed through grants to the crime victims’ compensation program; private, nonprofit domestic violence or sexual assault programs; and to victim and witness advocacy programs whose primary function is to provide direct services to victims of and witnesses to crimes. The administering agency shall establish procedures for the distribution of grants.

Source:

S.L. 1991, ch. 572, § 1; 1995, ch. 513, § 2.

54-06-23. Child care services provided by state agency or institution.

A state agency or institution may provide for child care services to the children of employees, students, or clients of the agency or institution in accordance with this section. Child care services may be provided by the institution only after the head of the agency or institution determines there is a need for the services and that the services will be provided at rates that are not less than the average rates charged by private child care providers providing comparable services in the community. Child care services may be provided in space available within the facility housing the agency or institution. An agency or institution may operate a child care center in available space or contract with a child care provider for child care services. Within the limits of legislative appropriations, the agency or institution may provide utilities and custodial and maintenance services for the child care center. Additional operating costs, including the salaries for a director and staff and the cost of supplies, must be borne by the center. A child care center provided for by an agency or institution may provide child care services to the children of employees, students, or clients of the agency or institution and, to the extent space is available, to any other children.

Source:

S.L. 1993, ch. 511, § 1.

54-06-24. State employee suggestion incentive program. [Repealed]

Source:

S.L. 1993, ch. 512, § 1; 1999, ch. 447, § 1; 2013, ch. 400, § 1; 2019, ch. 40, § 22, eff July 1, 2019; Repealed by 2019, ch. 40, § 31, eff July 1, 2021.

54-06-24.1. Telecommuting incentive program for state employees. [Repealed]

Expired under S.L. 2001, ch. 474, § 2.

54-06-25. State employees compensation commission — Appointment of members. [Repealed]

Source:

S.L. 1993, ch. 513, § 1; 1995, ch. 501, §§ 1, 2; 1997, ch. 432, § 24; 1997, ch. 440, § 1; 2003, ch. 461, § 1; 2003, ch. 493, § 4; 2009, ch. 482, §§ 46, 97; 2017, ch. 239, § 3, eff August 1, 2017; Repealed by 2021, ch. 15, § 39, eff July 1, 2021.

54-06-26. Use of state telephones by state officials and employees.

Notwithstanding any other provision of law, an appointed or elected state official or a state employee may use a state telephone to receive or place a local call for essential personal purposes to the extent that use does not interfere with the functions of the official’s or employee’s agency, department, or institution. Each state agency, department, or institution may establish guidelines defining reasonable and appropriate use of state telephones for essential personal purposes.

Source:

S.L. 1997, ch. 441, § 1; 2017, ch. 239, § 4, eff August 1, 2017.

54-06-27. Emergency service volunteers — Leave.

Upon issuance of an order or proclamation declaring a state of disaster or emergency pursuant to chapter 37-17.1, a search emergency by the air force rescue coordination center or by the department of emergency services, or a declaration of at least a level II disaster by the American red cross in this or any other state, the executive officer in charge of a state agency or the governing body of any political subdivision may grant a leave of absence to any full-time employee of that governmental entity who is an emergency medical service provider, a member of the civil air patrol, a firefighter, police officer, volunteer member of the North Dakota army or air national guard, or emergency radio operator, or who performs other services necessary in an emergency. The leave of absence must be for the purpose of allowing that employee to provide voluntary emergency services. An individual on leave under this section is not deemed to be an employee of the governmental entity for the purposes of workforce safety and insurance. The cumulative leave granted under this section may not exceed twenty working days during any calendar year. The leave may not result in a loss of compensation, seniority, annual leave, sick leave, or accrued overtime for which the employee is otherwise eligible.

Source:

S.L. 1999, ch. 448, § 1; 2003, ch. 561, § 3; 2009, ch. 16, § 15; 2009, ch. 313, § 2.

54-06-28. Emergency service volunteers — Temporary leave for firefighters, emergency radio operators, medical service providers, and civil air patrol.

The executive officer in charge of a state agency or the governing body of any political subdivision may grant temporary short-term leave with compensation to any full-time employee of that governmental entity for the purpose of allowing the employee to respond to an emergency call if the employee is a volunteer emergency medical service provider, firefighter, emergency radio operator, or a member of the civil air patrol.

Source:

S.L. 1999, ch. 448, § 2.

54-06-29. Expenses incurred to collect funds owed the state — Continuing appropriation.

If a state agency enters a contract with a collection or credit agency to collect money due the state, the fees for services, reimbursement, or other remuneration to the collection or credit agency must be based on the amount of money actually collected. All funds collected on behalf of a state agency by a collection or credit agency must be deposited with the state treasurer. An amount equal to the amount of fees for services, reimbursement, or any other remuneration to the collection or credit agency as set forth in the contract is appropriated from the fund into which the money collected was deposited to the state agency for which the funds were collected for the payment of fees due under the contract.

Source:

S.L. 1999, ch. 37, § 29.

54-06-30. State employee performance bonus program — Criteria — Limitations.

State agencies may provide monetary performance bonuses to their employees under this section.

  1. State agencies may pay bonuses under this section if:
    1. The agency has had a written employee performance evaluation policy in place for more than one year before paying the bonus;
    2. The written employee performance evaluation policy required in subdivision a must have at least three levels of performance criteria; and
    3. The agency performance bonus program adopted under this section must be a written policy and must be communicated to each employee in the agency. Development of the written policy must include input from employees.
  2. State employees are eligible to receive a bonus under this section only if:
    1. The employee has held a position in state government for at least one year before a bonus is paid;
    2. The employee’s overall annual performance evaluation satisfies the agency’s performance bonus program criteria for receiving a bonus; and
    3. The employee is a full-time or part-time regular nonprobationary employee holding a regularly funded nontemporary position.
  3. An employee may not receive more than one performance bonus per fiscal year and may not receive more than one thousand five hundred dollars in bonuses per fiscal year.
  4. Each agency must fund the performance bonus program from within its agency budget for salaries and wages.
  5. Bonuses paid under this section may not be included in an employee’s base salary for purposes of calculating any wage or salary increase.
  6. Bonuses paid under this section are not fiscal irregularities under section 54-14-03.1.

Source:

S.L. 2001, ch. 475, § 1; 2003, ch. 462, § 1; 2009, ch. 458, § 1; 2019, ch. 40, § 23, eff July 1, 2019.

54-06-31. State employee recruitment and retention bonus programs — Criteria — Limitations.

State agencies may develop programs to provide bonuses to recruit or retain employees in hard-to-fill occupations.

  1. State agencies may pay recruitment and retention bonuses under this section only if:
    1. The agency has a written policy in place identifying eligible positions or occupations and provisions for providing and receiving bonuses;
    2. The agency has filed a copy of the written policy with the North Dakota human resource management services; and
    3. The agency reports to the North Dakota human resource management services each bonus provided to an employee under the program.
  2. State agencies must fund bonus programs from within the agency salaries and wages budget.
  3. The North Dakota human resource management services shall report periodically to the legislative management on the implementation, progress, and bonuses provided under agency recruitment and retention bonus programs.
  4. Bonuses paid under this section are not fiscal irregularities under section 54-14-03.1.
  5. As used in this section, a hard-to-fill occupation includes an occupation or position in which demand exceeds supply, special qualifications are required, competition with other employers is the strongest, there is a risk of losing an incumbent with rare skills, the position is filled by a highly skilled employee who is in high demand in the marketplace, loss of the employee would result in significant replacement costs, the position is filled by key personnel, or the position has other unique recruitment or retention issues identified and documented by the appointing authority.

Source:

S.L. 2001, ch. 476, § 1; 2003, ch. 462, § 2; 2009, ch. 459, § 1; 2009, ch. 482, § 47.

54-06-32. State employee service awards.

Each state agency, department, or institution may establish rules or policies for employee recognition and service award programs. Executive branch agencies having employees in classified service are subject to rules adopted by North Dakota human resource management services and approved by the state personnel board and the legislative management’s administrative rules committee. Any other agency, department, or institution of the executive, legislative, or judicial branch may adopt similar rules or policies to ensure uniformity and consistency in state government. Notwithstanding any other provision of law, each executive branch state agency, department, or institution, except an institution of higher education, having employees who are not in classified service and establishing rules or policies for employee recognition and service award programs shall submit the rules and policies to the office of management and budget for review and comment, and after addressing any comments of the office of management and budget, shall submit the rules and policies to the legislative management’s administrative rules committee for approval. Within sixty days after the close of each biennial period, each state agency, department, or institution providing an employee service award under rules approved by the administrative rules committee shall file with the office of management and budget a report indicating the total amount of service awards paid. Within ninety days after the close of each biennial period, the office of management and budget shall submit to the legislative council a report summarizing this information. An expenditure made under this section is deemed to be made for a public purpose and may not be construed as a gift for purposes of section 18 of article X of the Constitution of North Dakota.

Source:

S.L. 2009, ch. 460, § 1; 2013, ch. 401, § 1.

Effective Date.

The 2013 amendment of this section by section 1 of chapter 401, S.L. 2013 became effective April 18, 2013, pursuant to an emergency clause in section 4 of ch. 401, S.L. 2013.

54-06-33. Employer-paid tuition.

Each state agency, department, or institution may establish rules or policies to provide employer-paid costs of training or educational courses, including tuition and fees, within budgetary constraints. Executive branch agencies having employees in classified service are subject to rules adopted by North Dakota human resource management services and approved by the state personnel board and the legislative management’s administrative rules committee. Any other state agency, department, or institution of the executive, legislative, or judicial branch may adopt rules or policies to ensure uniformity and consistency in state government. Notwithstanding any other provision of law, each executive branch state agency, department, or institution, except an institution of higher education, having employees who are not in classified service and establishing rules or policies for employer-paid costs of training or educational courses, including tuition and fees, shall submit the rules and policies to the office of management and budget for review and comment, and after addressing any comments of the office of management and budget, shall submit the rules and policies to the legislative management’s administrative rules committee for approval. Within sixty days after the close of each biennial period, each state agency, department, or institution providing employer-paid costs of training or educational courses, including tuition and fees, under rules approved by the administrative rules committee, shall file with the office of management and budget a report indicating the total employer-paid costs of training and educational courses, including tuition and fees. Within ninety days after the close of each biennial period, the office of management and budget shall submit to the legislative council a report summarizing this information. An employee who receives employer-paid tuition reported under this section who leaves employment with the state within two years of receiving the tuition must repay tuition received under this section on a prorated basis. An expenditure for employer-paid training or educational courses, including tuition and fees, under this section is deemed to be made for a public purpose and may not be construed as a gift for purposes of section 18 of article X of the Constitution of North Dakota.

Source:

S.L. 2009, ch. 460, § 2; 2013, ch. 401, § 2.

Effective Date.

The 2013 amendment of this section by section 2 of chapter 401, S.L. 2013 became effective April 18, 2013 pursuant to an emergency clause in section 4 of chapter 401, S.L. 2013..

54-06-34. Employer-paid professional organization membership and service club dues.

Each state agency, department, or institution may pay employee membership dues for professional organizations and membership dues for service clubs when required to do business or if the membership is primarily for the benefit of the state. Within sixty days after the close of each biennial period, each executive branch state agency, department, or institution, except an institution of higher education, providing employer-paid professional organization membership and service club dues shall file with the office of management and budget a report indicating the total employer-paid professional organization membership and service club dues. Within ninety days after the close of each biennial period, the office of management and budget shall submit to the legislative council a report summarizing this information. An expenditure made under this section is deemed to be made for a public purpose and may not be construed as a gift for purposes of section 18 of article X of the Constitution of North Dakota.

Source:

S.L. 2009, ch. 460, § 3; 2013, ch. 401, § 3.

Effective Date.

The 2013 amendment of this section by section 3 of chapter 401, S.L. 2013 became effective April 18, 2013, pursuant to an emergency clause in section 4 of ch. 401, S.L. 2013.

54-06-35. Expenditure made pursuant to rule or policy.

An expenditure made pursuant to a rule or policy adopted pursuant to sections 54-06-32 through 54-06-34 is not a criminal offense.

Source:

S.L. 2009, ch. 460, § 4.

54-06-36. Honor guard leave.

Honor guard leave is an approved absence from work, with pay, of up to twenty-four working hours per calendar year for an employee to participate in an honor guard for a funeral service of a veteran. A governmental entity may grant a request for honor guard leave even if the absence of the employee might interfere with the normal operations of the agency. This section applies to each governmental entity that employs an individual in a position classified by human resource management services.

Source:

S.L. 2011, ch. 392, § 1.

54-06-37. Authorization to purchase or lease aircraft — Legislative assembly or budget section approval — Exception.

  1. As used in this section, “airworthy” means an aircraft conforms to its type design and is in a condition for safe operation.
  2. Except as otherwise provided in subsections 3 and 4, a state agency or other entity of state government may not purchase or lease a manned aircraft without specific authorization from the legislative assembly or the budget section if the legislative assembly is not in session. Any request considered by the budget section must comply with section 54-35-02.9.
  3. In an emergency circumstance, a state agency, department, or institution may lease a manned aircraft without approval from the legislative assembly or the budget section if an aircraft currently leased or owned by the state agency, department, or institution is not airworthy. The emergency lease under this subsection may extend only until the aircraft deemed not airworthy is determined to be airworthy.
  4. A state agency, department, or institution may purchase a replacement aircraft without approval from the legislative assembly or the budget section if an aircraft is destroyed beyond repair and only insurance proceeds are used for the purchase of the replacement aircraft. If the purchase price of a replacement aircraft exceeds the insurance proceeds, the state agency, department, or institution must receive authorization in accordance with subsection 2.
  5. This section does not apply to aircraft purchased or leased by the office of the adjutant general or the university of North Dakota school of aviation.

Source:

S.L. 2013, ch. 221, § 1; 2019, ch. 431, § 1, eff August 1, 2019; 2019, ch. 438, § 12, eff August 1, 2019.

Effective Date.

This section became effective July 1, 2013.

Note.

Section 54-06-37 was amended 2 times by the 2019 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 1 of Chapter 431, Session Laws 2019, House Bill 1230; and Section 12 of Chapter 438, Session Laws 2019, Senate Bill 2055.

54-06-38. Harassment policies.

Each state agency, department, and institution shall adopt and enforce a policy on employee harassment, including sexual harassment. The policy must clearly define harassment and specify the responsibilities of the employee, supervisor, and the agency, department, or institution. If an agency, department, or institution does not adopt a harassment policy, the agency, department, or institution must be subject to the policy adopted by the North Dakota human resource management services division.

History. S.L. 2015, ch. 371, § 1, eff August 1, 2015.

Effective Date.

This section became effective August 1, 2015.

CHAPTER 54-07 Governor

54-07-01. Powers and duties of governor.

In addition to the powers and duties prescribed by the constitution, the governor:

  1. Shall supervise the official conduct of all executive and ministerial officers.
  2. Shall see that all offices are filled, and the duties thereof performed, or in default thereof, shall apply such remedies as the law allows. If the remedy is imperfect, the governor shall acquaint the legislative assembly therewith at its next session.
  3. Shall make appointments and fill vacancies as required by law.
  4. Shall be the sole official organ of communication between the government of this state and the government of any other state of the United States.
  5. Whenever any suit or legal proceeding is pending against this state, which may affect the title of this state to any property or which may result in any claim against the state, may direct the attorney general to appear on behalf of the state, and may employ such additional counsel as the governor may deem expedient.
  6. May require the attorney general or state’s attorney of any county to inquire into the affairs or management of any corporation or limited liability company existing under the laws of this state.
  7. May require the attorney general to aid any state’s attorney in the discharge of the state’s attorney’s duties.
  8. May offer rewards not exceeding one thousand dollars each, payable out of any legislative appropriation therefor, for the apprehension of any convict who has escaped from the penitentiary, or any person who has committed, or who is charged with the commission of, an offense punishable with death or life imprisonment.
  9. Shall issue patents for land as prescribed by the laws of this state.
  10. Has such other powers and must perform such other duties as are or may be devolved upon the governor by law.
  11. Shall produce and deliver to the legislative assembly by December tenth of each even-numbered year a report on the status of children and families and proposals for addressing the needs of children and families.
  12. Shall designate a lead agency to collaborate with other agencies to coordinate early intervention services for children from birth to age three who are at high risk for developmental delay or disability.

Source:

R.C. 1895, § 83; R.C. 1899, § 83; R.C. 1905, § 86; C.L. 1913, § 111; R.C. 1943, § 54-0701; S.L. 1993, ch. 54, § 106; 1995, ch. 502, § 1; 2017, ch. 365, § 1, eff August 1, 2017.

Cross-References.

Commander in chief of military forces, see N.D. Const., Art. V, § 7.

Election of governor, see N.D. Const., Art. V, § 3.

Executive power in governor, see N.D. Const., Art. V, § 1.

Powers, see N.D. Const., Art. V, §§ 7, 8 and 9.

Qualifications of governor, see N.D. Const., Art. V, § 4.

Succession to office of governor, see N.D. Const., Art. V, § 11; N.D.C.C. § 44-02-03.

Term of office, see N.D. Const., Art. V, § 5.

Notes to Decisions

Appointment of Officers.

The governor has the power to nominate members of state board of regents, who are then confirmed by the senate. State ex rel. Langer v. Crawford, 36 N.D. 385, 162 N.W. 710, 1917 N.D. LEXIS 202 (N.D. 1917).

Public policy requires that all offices be filled, and all duties thereof performed. State ex rel. Langer v. Lofthus, 45 N.D. 357, 177 N.W. 755, 1920 N.D. LEXIS 130 (N.D. 1920).

Removal of Officers.

The governor has no power to remove commissioner of workmen’s compensation bureau except with a hearing and for a legal cause. State ex rel. Wehe v. Frazier, 47 N.D. 314, 182 N.W. 545, 1921 N.D. LEXIS 116 (N.D. 1921).

In proceeding to dismiss member of board of administration, governor’s statutory duty to pass on the evidence does not bar him from instituting the original proceedings. State ex rel. Joos v. Guy, 125 N.W.2d 468, 1963 N.D. LEXIS 132 (N.D. 1963).

Collateral References.

Previous tenure of office, construction and effect of constitutional or statutory provision disqualifying one for public office because of, 59 A.L.R.2d 716.

Bail bond, authority to remit forfeited, 77 A.L.R.2d 988.

54-07-01.1. Emergency powers of the governor.

In emergencies in support of national defense, the governor may cooperate with any officer or agency of the United States in the transportation of persons or property and the conservation and utilization of vital transportation equipment, materials, and supplies, and when requested by such officer or agency, may issue executive orders related thereto which will:

  1. Suspend or modify the enforcement of any statute, ordinance, or regulation relating to the operation of motor vehicles upon the highways and streets of the state where it appears that the enforcement of such statute, ordinance, or regulation would impede or interfere with the national defense.
  2. Prescribe maximum rates of speed at which any motor vehicle may be operated on any highway or street in the state.
  3. Prescribe the sizes and load weights of motor vehicles which may be operated on any highway or street in the state.
  4. Suspend the enforcement of any statute, ordinance, or regulation that requires any motor vehicle, bus, or housetrailer, to which a valid and unexpired permit or license has been issued by another state, to obtain a permit or license from this state.
  5. Prescribe reasonable regulations for the conservation and utilization of the highways and streets, and of vital transportation equipment, and materials and supplies used in connection therewith.
  6. Amend, revoke, or suspend any such executive order or regulation.

The governor shall report to the legislative assembly at its next session any proceedings taken by the governor pursuant to this section. Such report must include copies of all executive orders or regulations promulgated by the governor.

Source:

S.L. 1971, ch. 266, § 3.

Cross-References.

North Dakota Disaster Act, see N.D.C.C. ch. 37-17.1.

Law Reviews.

Emergency Powers of the Governor in North Dakota, 50 N.D. L. Rev. 101 (1973).

54-07-01.2. Governor to have power to appoint majority of members of certain boards and commissions — Limitations.

  1. Notwithstanding sections 2-05-01, 4.1-05-02, 4.1-26-02, 6-01-03, 6-09-02.1, 12-55.1-02, 12-59-01, 15-39.1-05.1, 15.1-01-01, 15.1-13-02, 20.1-02-23, 23-01-02, 23.1-01-02, 36-01-01, 37-18.1-01, 50-06-05.6, 54-34.3-10, 54-54-02, 55-01-01, and 61-02-04, all members of the following boards and commissions must, subject to the limitations of this section, be considered to have resigned from such boards and commissions effective January first of the first year of each four-year term of the governor:
    1. The aeronautics commission.
    2. The milk marketing board.
    3. The dairy promotion commission.
    4. The state banking board.
    5. The state credit union board.
    6. The advisory board of directors to the Bank of North Dakota.
    7. The pardon advisory board.
    8. The state parole board.
    9. The state board of public school education.
    10. The education standards and practices board.
    11. The board of trustees of the teachers’ fund for retirement.
    12. The state game and fish advisory board.
    13. The health council.
    14. The environmental review advisory council.
    15. The board of animal health.
    16. The administrative committee on veterans’ affairs.
    17. The committee on aging.
    18. The commission on the status of women.
    19. The North Dakota council on the arts.
    20. The state historical board.
    21. The state water commission.
  2. The governor shall have the option of reappointing any member to any board or commission to complete the term to which the member was appointed, or the governor may appoint a simple majority of any board or commission to complete the terms of those resigned members who do not receive reappointments. In order to assure continuity, the governor shall reappoint for the completion of their original terms no fewer than one less than a simple majority of the former members of each board or commission.
  3. If the governor has not acknowledged in writing the resignation of any members of any board or commission prior to July first of the first year of the governor’s term, the board or commission member must be considered to have been reappointed to complete the term to which the member was originally appointed. All members of boards and commissions shall continue to serve until the time they are notified of the acceptance of their resignation by the governor, and in all cases the members of boards and commissions shall continue to serve until their successors have been named and qualified.
  4. In those instances where nominations for the filling of vacancies on boards and commissions are submitted to the governor pursuant to state law, the governor shall notify such persons and organizations of acceptance of the resignation of any board or commission member. Such persons and organizations shall furnish the governor with the number of required nominations to fill the vacancies within sixty days after the notice or the governor may nominate and appoint such members as are otherwise qualified.
  5. The provisions of this section do not apply to those constitutional officers who serve on boards and commissions, except insofar as a governor may count such constitutional officers among those the governor reappoints in order to conform to the continuity requirements of this section.
  6. All vacancies created by resignation after July first of the first year of each term of a governor must be filled as provided by law. If any person refuses an appointment, the governor shall fill such position as otherwise provided by law.

Source:

S.L. 1971, ch. 492, § 1; 1973, ch. 416, § 1; 1979, ch. 577, § 1; 1981, ch. 91, § 45; 1981, ch. 486, § 29; 1981, ch. 528, § 10; 1987, ch. 622, § 1; 1989, ch. 80, § 70; 1989, ch. 241, § 6; 1989, ch. 295, § 3; 1991, ch. 54, § 28; 1991, ch. 525, § 3; 1993, ch. 171, § 17; 1995, ch. 458, § 7; 1997, ch. 115, § 7; 1997, ch. 170, § 3; 1999, ch. 164, § 10; 2001, ch. 161, § 29; 2001, ch. 501, § 5; 2001, ch. 503, § 13; 2009, ch. 65, § 5; 2009, ch. 80, § 17; 2015, ch. 72, § 2, eff July 1, 2015; 2017, ch. 335, § 3, eff August 1, 2017; 2017, ch. 199, § 57, eff April 29, 2019; 2021, ch. 56, § 12, eff August 1, 2021.

Effective Date.

The 2015 amendment of this section by section 2 of chapter 72, S.L. 2015 became effective July 1, 2015.

Note.

This section is effective upon the receipt by the legislative council of the certification by the chief of the environmental health section of the state department of health attesting that all necessary federal approvals have been obtained and all necessary federal and other agreements have been amended to ensure the state will continue to meet the primacy requirements it currently satisfies after the transfer of authority, powers, and duties from the state department of health to the department of environmental quality provided under S.L. 2017, ch. 199, § 75. [Contingency met in 2019]

This section is set out above to reflect that the contingency of the section has been met.

Section 54-07-01.2 was amended 2 times by the 2017 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 57 of Chapter 199, Session Laws 2017, Senate Bill 2327; and Section 3 of Chapter 335, Session Laws 2017, House Bill 1135.

54-07-01.3. Governor to coordinate conversion to metric system by executive branch.

The office of the governor may coordinate and plan for conversion to the metric system by all agencies, boards, commissions, and departments within the executive branch of state government in conformance with the Metric Conversion Act of 1975 [Pub. L. 94-168; 89 Stat. 1007; 15 U.S.C. 205a et seq.]. The governor may direct such agencies, departments, boards, and commissions to comply with any guidelines established by the United States metric board to meet the desired deadline for converting to general use of the metric system.

Source:

S.L. 1977, ch. 479, § 1.

54-07-01.4. Office of management and budget to be designated or appointed as administering state agency.

The governor may designate or appoint the office of management and budget as the state agency responsible for administering any statutory function if that function is not statutorily placed in a specific state entity. The office of management and budget shall administer the statutory functions received pursuant to this section in accordance with applicable statutory provisions.

Source:

S.L. 1981, ch. 534, § 2.

54-07-01.5. Governor to file bills with secretary of state.

The governor shall cause each bill passed by the legislative assembly and not vetoed by the governor to be filed with the secretary of state within five legislative days after the bill has been delivered to the governor. If the legislative assembly is not in session, the governor shall cause each bill delivered to the governor to be filed with the secretary of state within fifteen days, Saturdays and Sundays excepted, after delivery of the bill to the governor.

Source:

S.L. 1987, ch. 259, § 13; 1987, ch. 549, § 2; 2001, ch. 477, § 1.

54-07-01.6. Governor to receive bills.

The governor shall accept delivery of bills passed by the legislative assembly and presented to the governor during regular business hours. The governor may coordinate with the presiding officer of the senate or the presiding officer of the house of representatives with respect to the delivery of senate or house bills outside normal business hours or during times the governor anticipates being out of the office for more than three legislative days.

Source:

S.L. 2003, ch. 463, § 1.

54-07-02. Records kept by governor.

The governor shall cause to be kept the following records:

  1. An account of all of the governor’s official expenses and disbursements, including the incidental expenses of the governor’s department, and of all rewards offered by the governor for the apprehension of criminals and persons charged with crime.
  2. A register of all appointments made by the governor, with the date of the commission, name of appointee, and predecessor.

These records and the originals of all reports must be preserved in the office of the governor. Whenever any application for appointment to office is refused by the governor, the governor may return the papers relating to the application.

Source:

R.C. 1895, § 84; R.C. 1899, § 84; R.C. 1905, § 87; C.L. 1913, § 112; R.C. 1943, § 54-0702.

54-07-03. Persons acting as governor — Powers and duties.

Every provision of the laws of this state in relation to the powers and duties of the governor, and in relation to the acts and duties to be performed by others toward the governor, extends to the person performing for the time being the duties of governor.

Source:

R.C. 1895, § 85; R.C. 1899, § 85; R.C. 1905, § 88; C.L. 1913, § 116; R.C. 1943, § 54-0703.

54-07-04. Salary of governor.

The annual salary of the governor is one hundred forty thousand eight hundred twenty-nine dollars through June 30, 2022, and one hundred forty-three thousand six hundred forty-six dollars thereafter.

Source:

R.C. 1895, § 86; R.C. 1899, § 86; R.C. 1905, § 89; S.L. 1909, ch. 216, § 4; C.L. 1913, § 117; I.M. Nov. 8, 1932, § 1, S.L. 1933, p. 504; 1943, ch. 202, § 2; R.C. 1943, § 54-0704; S.L. 1951, ch. 305, § 4; 1957, ch. 335, § 11; 1957 Supp., § 54-0704; S.L. 1965, ch. 344, § 5; 1973, ch. 417, § 5; 1977, ch. 480, § 6; 1981, ch. 521, § 6; 1983, ch. 44, §§ 16, 24, and 25; 1989, ch. 1, § 21; 1991, ch. 28, § 30; 1991, ch. 53, § 10; 1995, ch. 23, § 3; 1997, ch. 1, § 3; 1999, ch. 23, § 3; ch. 29, ch. 1, § 3; 2005, ch. 1, § 5; 2007, ch. 28, § 6; 2009, ch. 1, § 4; 2011, ch. 27, § 5; 2013, ch. 1, § 5; 2015, ch. 35, § 4, eff July 1, 2015; 2019, ch. 26, § 4, eff July 1, 2019; 2021, ch. 1, § 5, eff July 1, 2021.

Effective Date.

The 2015 amendment of this section by section 4 of chapter 35, S.L. 2015 became effective July 1, 2015.

The 2013 amendment of this section by section 5 of chapter 1, S.L. 2013 became effective July 1, 2013.

54-07-05. Highway safety assent.

The governor, in addition to other duties and responsibilities conferred upon the governor by the constitution and laws of this state, is hereby empowered to contract and to do all other things necessary in behalf of this state to secure the full benefits available to this state under the Highway Safety Act of 1966 [Pub. L. 89-564; 80 Stat. 731; 23 U.S.C. 401 et seq.], and in so doing, to require compliance by state agencies and political subdivisions; to cooperate with federal and state agencies, agencies private and public, interested organizations, and with individuals; to effectuate the purposes of that enactment and any and all subsequent amendments thereto. The governor is the official of this state having ultimate responsibility for dealing with the federal government with respect to programs and activities pursuant to the Highway Safety Act of 1966 [Pub. L. 89-564; 80 Stat. 731; 23 U.S.C. 401 et seq.] and any amendments thereto. To that end the governor shall coordinate the activities of any and all departments and agencies of this state and its subdivisions, relating thereto.

Source:

S.L. 1967, ch. 383, § 1.

54-07-06. Division of economic opportunity. [Repealed]

Repealed by S.L. 1979, ch. 553, § 20.

54-07-07. Governor’s prevention and advisory council duties — Continuing appropriation.

The governor’s prevention and advisory council shall contract with or grant funds to entities within this state to discourage impaired driving and alcohol and drug abuse by minors. The council may accept grants and gifts of any money, property, or service from any public or private source for the purposes of this section. Any funding obtained by the council, not otherwise appropriated, is appropriated on a continuing basis for the purposes of this section. Funding appropriated for the purposes of this section may not be used for costs associated with an initiated measure.

Source:

S.L. 2007, ch. 456, § 1.

54-07-08. North Dakota youth council — Creation.

Expired under S.L. 2009, ch. 461, § 5.

54-07-09. Youth council chairman — Meetings.

Expired under S.L. 2009, ch. 461, § 5.

54-07-10. Youth council powers.

Expired under S.L. 2009, ch. 461, § 5.

54-07-11. Youth council duties.

Expired under S.L. 2009, ch. 461, § 5.

54-07-12. Theodore Roosevelt presidential library and museum endowment fund — Continuing appropriation — Budget section report.

There is created in the state treasury the Theodore Roosevelt presidential library and museum endowment fund. The governor may provide for the fund to be invested under the supervision of the board of university and school lands. The interest and earnings of the fund are appropriated to the governor on a continuing basis to pay interest expenses on a loan from the Bank of North Dakota and to provide grants pursuant to this section. The governor may provide grants to a private entity subject to the following:

  1. The private entity has certified to the governor the entity has received the sum of one hundred million dollars in cash donations and binding pledged donations for the construction of a presidential library and museum in North Dakota and for grants to affected entities;
  2. The governor has entered an agreement with the private entity in subsection 1 which includes the following provisions:
    1. The grant funds will be spent only for operating and maintenance costs of the presidential library located in North Dakota;
    2. Any unused grant funds will be returned to the state and deposited in the general fund if the presidential library has not been constructed within the period of time specified in the agreement or if the library ceases operations;
    3. The private entity agrees to donate ten million dollars from the one hundred million dollars identified in subsection 1 to a higher education institution foundation in North Dakota for the purpose of creating an endowment to digitize documents relating to Theodore Roosevelt and for the creation of a Theodore Roosevelt conservation scholars program and related academic mission at a North Dakota higher education institution in collaboration with the private entity; and
    4. The private entity agrees to donate three hundred thousand dollars to a city in North Dakota for prior costs incurred related to planning for a presidential library;
  3. The governor provides a report to the budget section which includes copies of the documentation received for the certification provided in subsection 1; and
  4. The governor provides a report to the budget section within thirty days of applying for the loan authorized by S.L. 2019, ch. 26, § 8, which includes all completed loan application documents.

Source:

S.L. 2019, ch. 26, § 5, eff April 26, 2019.

CHAPTER 54-08 Lieutenant Governor

54-08-01. Duties of lieutenant governor.

The duties of the lieutenant governor are those prescribed in the Constitution of North Dakota.

Source:

R.C. 1895, § 87; R.C. 1899, § 87; R.C. 1905, § 90; C.L. 1913, § 118; R.C. 1943, § 54-0801.

Cross-References.

Duties, see N.D. Const., Art. V, §§ 11, 12.

Election, see N.D. Const., Art. V, § 3.

Qualifications, see N.D. Const., Art. V, § 4.

54-08-02. Disability of lieutenant governor — Who shall act.

In case of the death, impeachment, resignation, failure to qualify, absence from the state, removal from office, or the disability of the lieutenant governor, the powers and duties of that office for the residue of the term, or until the lieutenant governor is acquitted or the disability removed, shall devolve upon the president pro tempore of the senate, except that the president pro tempore of the senate does not succeed to the office of governor by virtue of having the powers and duties of the office of lieutenant governor. When presiding over any meeting of the senate, all the powers and duties of the office of lieutenant governor shall devolve upon the president pro tempore of the senate.

Source:

S.L. 1891, ch. 84, § 1; R.C. 1895, § 89; R.C. 1899, § 89; R.C. 1905, § 92; C.L. 1913, § 120; R.C. 1943, § 54-0802.

54-08-03. Salary of lieutenant governor.

The annual salary of the lieutenant governor is one hundred nine thousand five hundred thirty-six dollars through June 30, 2022, and one hundred eleven thousand seven hundred twenty-seven dollars thereafter.

Source:

S.L. 1893, ch. 93, § 1; R.C. 1895, § 88; R.C. 1899, § 88; R.C. 1905, § 91; C.L. 1913, § 119; I.M. Nov. 8, 1932, § 1, S.L. 1933, p. 504; 1943, ch. 202, § 2; R.C. 1943, § 54-0803; S.L. 1957, ch. 335, § 10; 1957 Supp., § 54-0803; S.L. 1965, ch. 344, § 6; 1973, ch. 417, § 6; 1977, ch. 480, § 7; 1983, ch. 44, § 17; 1985, ch. 560, § 6; 1989, ch. 1, § 22; 1991, ch. 28, § 31; 1991, ch. 53, § 11; 1995, ch. 23, § 4; 1997, ch. 1, § 4; 1999, ch. 23, § 4; ch. 29, ch. 1, § 4; 2005, ch. 1, § 6; 2007, ch. 28, § 7; 2009, ch. 1, § 5; 2011, ch. 27, § 6; 2013, ch. 1, § 6; 2015, ch. 35, § 5, eff July 1, 2015; 2019, ch. 26, § 6, eff July 1, 2019; 2021, ch. 1, § 6, eff July 1, 2021.

Effective Date.

The 2015 amendment of this section by section 5 of chapter 35, S.L. 2015 became effective July 1, 2015.

The 2013 amendment of this section by section 6 of chapter 1, S.L. 2013 became effective July 1, 2013.

Notes to Decisions

Compensation for Additional Duties.

This section limits the compensation received by the lieutenant governor in performing his basic duty as presiding officer of the senate; it does not prohibit the lieutenant governor from receiving additional compensation in excess of the limitation of this section for the performance of additional duties not germane to his office which are delegated to him by the governor. State ex rel. Peterson v. Olson, 307 N.W.2d 528, 1981 N.D. LEXIS 313 (N.D. 1981).

54-08-04. Salary of lieutenant governor when acting for governor.

When the lieutenant governor acts as governor, the lieutenant governor is entitled to receive during the time the lieutenant governor so acts the compensation which the governor, if acting, would be entitled to receive for such time. During such time the lieutenant governor is not entitled as lieutenant governor to any other compensation.

Source:

S.L. 1893, ch. 93, § 1; R.C. 1895, § 88; R.C. 1899, § 88; R.C. 1905, § 91; C.L. 1913, § 119; R.C. 1943, § 54-0804.

CHAPTER 54-09 Secretary of State

54-09-01. Records in custody of secretary of state.

The secretary of state is charged with the custody of:

  1. The enrolled copy of the Constitution of North Dakota.
  2. All the acts and resolutions passed by the legislative assembly.
  3. The journals of the legislative assembly.
  4. The great seal.
  5. All books, records, deeds, parchments, maps, and papers kept or deposited in the secretary of state’s office pursuant to law.

Source:

R.C. 1895, § 90; R.C. 1899, § 90; R.C. 1905, § 93; C.L. 1913, § 121; R.C. 1943, § 54-0901.

54-09-02. Duties of secretary of state.

In addition to the duties prescribed by the constitution, the secretary of state shall:

  1. Receive bills and resolutions from every session of the legislative assembly, and shall perform such other duties as may devolve upon the secretary of state by resolution of the two houses, or either of them.
  2. Keep a register of and attest the official acts of the governor.
  3. Affix the great seal with the secretary of state’s attestation to commissions and other public instruments to which the official signature of the governor is required.
  4. Record and maintain records of all conveyances made to the state and all articles of incorporation filed in the secretary of state’s office.
  5. Maintain records for all books distributed by the secretary of state and direct the county auditor of each county to do the same as provided by law.
  6. Furnish on demand to persons paying the fees therefor a certified copy of all or any part of any law, record, or other instrument filed, deposited, or recorded in the secretary of state’s office.
  7. Keep records of all the fees, commissions, and compensation of whatever nature or kind earned, collected, or charged by the secretary of state, with the date, name of payer, and the nature of the services in each case.
  8. Biennially report to the governor with copies filed in the secretary of state’s office as prescribed by section 54-06-04 all moneys received from any source for services performed and accompany the report with a detailed statement under oath of the manner in which the appropriations for the secretary of state’s office have been expended during the preceding two fiscal years.
  9. Immediately after the laws, resolutions, and journals of the legislative assembly are bound, distribute the laws, resolutions, and journals to the persons entitled thereto by law or rules of the senate and house of representatives.
  10. Keep records of cities as prescribed by law.
  11. Indicate on each bill passed by the legislative assembly the date of filing in the secretary of state’s office.
  12. Perform all other duties as are prescribed by law.

Source:

R.C. 1895, §§ 91, 92; R.C. 1899, §§ 91, 92; R.C. 1905, §§ 94, 95; C.L. 1913, §§ 122, 126; R.C. 1943, § 54-0902; S.L. 1963, ch. 346, § 55; 1987, ch. 549, § 3; 1991, ch. 482, § 4; 1995, ch. 350, § 43; 1997, ch. 442, § 1; 2005, ch. 261, § 25.

Cross-References.

Acting as governor, see N.D. Const., Art. V, § 11.

Authentication of session laws, see N.D.C.C. § 46-03-15.

Board of University and School Lands, see N.D. Const., Art. IX, § 3 and N.D.C.C. § 15-01-01.

Central microfilm unit, duty to establish and operate, see N.D.C.C. § 54-46.1-01.

Certifying bonded indebtedness, see N.D. Const., Art. X, § 17.

Deputy, appointment, removal, bond, see N.D.C.C. § 44-03-01.

Distribution of state laws, see N.D.C.C. ch. 46-04.

Election, see N.D. Const., Art. V, § 2.

Elections, secretary ex officio supervisor of elections, see N.D.C.C. § 16.1-01-01.

Emergency commission membership, see N.D.C.C. § 54-16-01.

Powers and duties to be prescribed by law, see N.D. Const., Art. V, § 2.

Registrar of contractors, secretary as, see N.D.C.C. § 43-07-01.

Service of process on corporations, see N.D.C.C. §§ 10-19.1-129, 10-19.1-145.

State canvassing board membership, see N.D.C.C. § 16.1-15-33.

State historical board, secretary ex officio member, see N.D.C.C. § 55-01-01.

54-09-02.1. Secretary of state — Certificates and certified copies to be received in evidence.

  1. All certificates issued by the secretary of state and all copies of records filed in accordance with this chapter or any other chapter, when certified by the secretary of state, may be taken and received in all courts, public offices, and official bodies as evidence of the facts stated.
  2. A certificate by the secretary of state under the great seal of this state, as to the existence or nonexistence of the facts relating to records filed by the secretary of state in accordance with this chapter or any other chapter which would not appear from a certified copy of any of the foregoing records or certificates, may be taken and received in all courts, public offices, and official bodies as evidence of the existence or nonexistence of the facts stated.
  3. Any certificate or certified copy issued by the secretary of state under this section may be created and disseminated as an electronic record with the same force and effect as if produced in a paper form.

Source:

S.L. 2011, ch. 393, § 3.

54-09-03. Secretary of state to mark books distributed. [Repealed]

Repealed by S.L. 1999, ch. 449, § 1.

54-09-04. Fees.

The secretary of state shall charge and collect the following fees:

  1. For a copy of any law, resolution, record, or other document or paper on file in the secretary of state’s office, fifty cents per page.
  2. Unless otherwise provided by law, for affixing the signature of the secretary of state, certificate, or seal, or combination thereof to any document, ten dollars.
  3. For filing a certificate of appointment of attorney, five dollars.
  4. For searching records and archives of the state, five dollars. For the purposes of this section, a search of records conducted by the secretary of state for which a fee must be collected includes the following:
    1. A search of a filed document that is active or archived, an archived index, or an index of business name changes to identify specific information to satisfy a request;
    2. A search of any record for which written verification of the facts of the search is required; and
    3. For every search of records when the request for the search is contained in a list compiled by the requester.
  5. For filing any paper not otherwise provided for, ten dollars.
  6. For filing any process, notice, or demand for service, the fee provided in section 10-01.1-03.
  7. For preparing any listing or compilation of any information recorded or filed in the office of the secretary of state, forty dollars for each record type requested. Unless otherwise agreed to by the secretary of state, the information must be provided in an electronic format. If provided in a paper format, an additional fee of fifty cents per page may be charged.

The secretary of state may provide, at no charge, information from publications or reference materials published or maintained by the secretary of state and verbal confirmation of any element of information maintained in a computer database.

An individual required to file an oath of office with the secretary of state may not be charged for filing the oath of office, nor may a state or county officer be charged for filing any document with the secretary of state when acting in the officer’s official capacity. All fees when collected must be paid by the secretary of state into the state treasury at the end of each month and placed to the credit of the state. Unless otherwise provided by law, the secretary of state shall retain a handling charge from filing fees tendered when a document submitted to the secretary of state under any law is rejected and not perfected. The handling charge is five dollars or fifty percent of the filing fee, whichever is greater, but may not exceed one hundred dollars.

If, upon due presentment, any check, draft, money order, or other form of lawful payment provisionally accepted in payment of any filing fee authorized to be charged and collected by the secretary of state, is not honored or paid, or if no lawful form of payment accompanies the filing, any record of credit or payment must be canceled or reversed as though no credit had been given or payment attempted and the filing or action is void. The secretary of state may return to the last-known address of the filer any record or document that was attempted to be filed or may retain as unfiled the record or document for a reasonable time to permit proper payment and filing.

This section does not apply to fees submitted for filing in, or information obtained from, the computerized central notice system, to the computerized Uniform Commercial Code central filing database, or to the computerized statutory liens database.

Source:

R.C. 1895, § 95; R.C. 1899, § 95; S.L. 1901, ch. 93, § 1; R.C. 1905, § 98; S.L. 1911, ch. 271, § 1; C.L. 1913, § 129; S.L. 1915, ch. 225, § 1; 1925 Supp., § 129; S.L. 1929, ch. 218, § 1; R.C. 1943, § 54-0904; S.L. 1957, ch. 336, § 1; 1957 Supp., § 54-0904; S.L. 1967, ch. 98, § 35; 1975, ch. 83, § 8; 1977, ch. 482, § 1; 1981, ch. 522, § 1; 1989, ch. 636, § 1; 1991, ch. 574, §§ 1, 2; 1993, ch. 75, § 19; 1997, ch. 442, § 2; 1999, ch. 450, § 1; 2001, ch. 392, § 4; 2003, ch. 464, § 1; 2007, ch. 99, § 83; 2009, ch. 462, § 4; 2011, ch. 393, § 4; 2013, ch. 402, § 3; 2017, ch. 2, § 6, eff July 1, 2017.

Effective Date.

The 2013 amendment of this section by section 3 of chapter 402, S.L. 2013 became effective July 1, 2013.

Cross-References.

Fees chargeable for contractors’ licenses, see N.D.C.C. § 43-07-07.

Fees chargeable for trade name registration, see N.D.C.C. § 47-25-04.

Fees chargeable for trademark registration, see N.D.C.C. § 47-22-03.

Fees chargeable to business corporations, see N.D.C.C. § 10-19.1-147.

Fees chargeable to cooperative associations, see N.D.C.C. § 10-15-54.

Fees chargeable to nonprofit corporations, see N.D.C.C. § 10-33-140.

54-09-04.1. Exception from fees.

A member of the legislative assembly or a state or county office may not be charged by the secretary of state for any search relative to matters appertaining to duties of office, any fee for a certified copy of any law or resolution passed by the legislative assembly relative to the individual’s official duties, or for filing any process, notice, or demand for service relative to the individual’s official duties.

Source:

S.L. 2003, ch. 464, § 2.

54-09-05. Salary of secretary of state.

The annual salary of the secretary of state is one hundred twelve thousand two hundred forty-one dollars through June 30, 2022, and one hundred fourteen thousand four hundred eighty-six dollars thereafter.

Source:

R.C. 1895, § 96; R.C. 1899, § 96; R.C. 1905, § 99; S.L. 1909, ch. 216, § 4; C.L. 1913, § 130; I.M. Nov. 8, 1932, § 1, S.L. 1933, p. 504; 1943, ch. 202, § 2; R.C. 1943, § 54-0905; S.L. 1951, ch. 305, § 5; 1957, ch. 335, § 4; 1957 Supp., § 54-0905; S.L. 1965, ch. 344, § 7; 1973, ch. 417, § 7; 1977, ch. 480, § 8; 1983, ch. 44, § 18; 1985, ch. 560, § 7; 1989, ch. 1, § 23; 1991, ch. 28, § 32; 1991, ch. 53, § 12; 1995, ch. 24, § 2; 1997, ch. 2, § 2; 1999, ch. 24, § 5; 2001, ch. 2, § 3; 2005, ch. 2, § 6; 2005, ch. 15, § 18; 2007, ch. 29, § 5; 2009, ch. 2, § 7; 2011, ch. 28, § 5; 2013, ch. 2, § 4; 2015, ch. 36, § 5, eff July 1, 2015; 2019, ch. 27, § 5, eff July 1, 2019; 2019, ch. 40, § 24, eff July 1, 2019; 2021, ch. 2, § 4, eff July 1, 2021; 2021, ch. 15, § 28, eff July 1, 2021.

Note.

Section 54-09-05 was amended 2 times by the 2021 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 4 of Chapter 2, Session Laws 2021, House Bill 1002; and Section 28 of Chapter 15, Session Laws 2021, House Bill 1015.

Section 54-09-05 was amended 2 times by the 2019 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 24 of Chapter 40, Session Laws 2019, Senate Bill 2015; and Section 5 of Chapter 27, Session Laws 2019, Senate Bill 2002.

Effective Date.

The 2015 amendment of this section by section 5 of chapter 36, S.L. 2015 became effective July 1, 2015.

The 2013 amendment of this section by section 4 of chapter 2, S.L. 2013 became effective July 1, 2013.

54-09-06. Official bond. [Repealed]

Repealed by S.L. 1999, ch. 113, § 24.

54-09-07. Service of process on secretary of state if agent not found or if secretary of state appointed as agent for individual.

If an agent other than the secretary of state has been appointed for receipt of service, but the affidavit of a sheriff or of an adult who is not a party to a proceeding establishes that diligent inquiry has been made and that personal service cannot be accomplished upon any registered agent, officer, or superintending, managing, or general agent of an entity, then the secretary of state may be deemed the agent of the entity for receiving service of process. Service on the secretary of state must be made as provided in section 10-01.1-13. Except as otherwise provided by law, if the secretary of state is appointed as agent for service of process for any individual under any provision of this code, then service on the secretary of state and the responsibilities of the secretary of state with respect to the service shall be made or executed in the manner provided in section 10-01.1-13, to the extent practicable.

Source:

S.L. 1991, ch. 574, § 3; 2003, ch. 464, § 3; 2007, ch. 99, § 84; 2011, ch. 393, § 5.

54-09-08. Secretary of state’s general services operating fund.

The secretary of state’s general services operating fund is a special fund in the state treasury. Moneys in the fund are to be used pursuant to legislative appropriations for the provision of services under section 16.1-02-15, subsection 4 of section 41-09-94, subsection 5 of section 41-09-96, subsection 7 of section 54-09-04, and sections 10-35-33, 54-09-10, and 54-09-11.

Source:

S.L. 1999, ch. 24, § 4; 2001, ch. 361, § 32; 2003, ch. 172, § 6; 2005, ch. 2, § 7; 2007, ch. 102, § 2; 2009, ch. 462, § 5; 2013, ch. 257, § 32; 2015, ch. 372, § 1; 2019, ch. 27, § 6, eff July 1, 2019.

Effective Date.

The 2013 amendment of this section by section 32 of chapter 257, S.L. 2013 becomes effective August 1, 2016, or earlier (See contingency note below).

Note.

Ch. 372 amends chapter 257 of 2013 to provide a new effective date, August 1, 2016.

Section 50 of chapter 257, S.L. 2013 provides: “CONTINGENT EFFECTIVE DATE. Sections 1 through 27 and sections 29 through 47 of this Act become effective August 1, 2015, or earlier if the secretary of state makes a report to the legislative management and to the information technology committee certifying that the information technology components of the electronic filing system are ready for implementation of those provisions of this Act, in which case those sections become effective ninety days following the completion of the certificate requirement.”

54-09-09. Computerized central indexing system — Rules.

  1. The secretary of state shall maintain a computerized central indexing system that contains the information filed pursuant to sections 35-13-02, 35-17-04, 35-20-16, 35-30-02, 35-31-02, 35-34-04, 35-34-06, 41-09-72, 57-38-49, 57-39.2-13, 57-40.2-16, 57-40.3-07.1, 57-43.1-17.4, 57-43.2-16.3, and 57-51-11. The system must allow access to financing statement information by equipment that conforms to requirements determined by the information technology department. The system must have safeguards to allow access to information that is in the system relating to security interests or liens and to prevent unauthorized alteration or deletion of that information and to allow access to other information in the system as prescribed by the secretary of state.
  2. Within two working days of receipt of a financing statement, continuation statement, amendment, or termination statement filed electronically pursuant to chapter 41-09 or a statement filed electronically pursuant to section 35-13-02, 35-17-04, 35-20-16, 35-30-02, or 35-31-02, the information contained in the statement must be filed in the computerized central indexing system. A computer printout of information from the system is prima facie evidence of the existence or nonexistence of the filing of a financing statement or lien. The secretary of state shall provide an electronic means that can be used to perfect a security interest in farm products or gain protection under the central notice system, or both.
  3. The secretary of state may adopt rules necessary to implement this section and sections 54-09-10 and 54-09-11.

Source:

S.L. 2001, ch. 361, § 33; 2003, ch. 520, § 1; 2013, ch. 257, § 33; 2015, ch. 372, § 1.

Effective Date.

The 2013 amendment of this section by section 33 of chapter 257, S.L. 2013 becomes effective August 1, 2016, or earlier (See contingency note below).

Note.

Ch. 372 amends chapter 257 of 2013 to provide a new effective date, August 1, 2016.

Section 50 of chapter 257, S.L. 2013 provides: “CONTINGENT EFFECTIVE DATE. Sections 1 through 27 and sections 29 through 47 of this Act become effective August 1, 2015, or earlier if the secretary of state makes a report to the legislative management and to the information technology committee certifying that the information technology components of the electronic filing system are ready for implementation of those provisions of this Act, in which case those sections become effective ninety days following the completion of the certificate requirement.”

54-09-10. Secretary of state to compile lists for crops and livestock — Distribution of lists.

  1. From the computerized central indexing system, the secretary of state or a designee shall produce electronically a list for crops and a list for livestock that each contain the information as filed pursuant to section 41-09-72. The secretary of state shall also include on the lists the information filed for crops and livestock pursuant to sections 35-17-04, 35-30-02, and 35-31-02. The lists must be in alphabetical order according to the last name of, or in numerical order according to the social security number of, the person engaged in farming operations. The lists may be prepared in categories according to county, regions as designated by the secretary of state, or on a statewide basis. If requested, the lists must be in printed form. Each list must conspicuously note the effective date of the list.
  2. The secretary of state shall distribute by mail or deliver electronically the lists prepared pursuant to subsection 1. If requested, the secretary of state shall mail or deliver electronically the lists to any person making a request at a fee as provided in section 54-09-11.
  3. Upon a verbal request of any person, the secretary of state or a designee of the secretary of state shall verbally provide information contained on a list generated through the computerized central indexing system if the collateral is crops or livestock. The requesting party may request electronically a certificate from the central indexing system to confirm the information given. Direct computer access is equivalent to oral confirmation, and a computer printout constitutes the written confirmation of the secretary of state, if use of this method of confirmation does not cause the central indexing system to lose federal certification. A computer printout from the computerized central indexing system constitutes the certificate of the secretary of state as to whether there is on file, on the date and hour stated on the computer printout, a financing statement.

Source:

S.L. 2001, ch. 361, § 34; 2013, ch. 257, § 34; 2015, ch. 372, § 1.

Effective Date.

The 2013 amendment of this section by section 34 of chapter 257, S.L. 2013 becomes effective August 1, 2016, or earlier (See contingency note below).

Note.

Ch. 372 amends chapter 257 of 2013 to provide a new effective date, August 1, 2016.

Section 50 of chapter 257, S.L. 2013 provides: “CONTINGENT EFFECTIVE DATE. Sections 1 through 27 and sections 29 through 47 of this Act become effective August 1, 2015, or earlier if the secretary of state makes a report to the legislative management and to the information technology committee certifying that the information technology components of the electronic filing system are ready for implementation of those provisions of this Act, in which case those sections become effective ninety days following the completion of the certificate requirement.”

54-09-11. Fees.

  1. The secretary of state shall establish fees for any programming charges specifically incurred to provide information requested by persons which is related to the central indexing system and for other services provided through the computerized system.
  2. A fee may not be required for furnishing information on a verbal request pursuant to subsection 3 of section 54-09-10, and the fee for furnishing a certificate under subsection 3 of section 54-09-10 is fifteen dollars.
  3. For preparing a listing or compilation of any information recorded or filed in the office of the secretary of state, the secretary of state may charge a fee of forty dollars for each record requested. The secretary of state shall provide the requested information in an electronic format, unless the secretary of state agrees to a request to provide the information in a different format. If the secretary of state provides the requested information in a paper format, the secretary of state may charge an additional fee of fifty cents per page.
  4. Fees collected by the secretary of state under this section, under subsection 4 of section 41-09-94, and subsection 5 of section 41-09-96, and twenty dollars from each filing entered into the central indexing system must be deposited in the secretary of state’s general services operating fund. Fees collected by the secretary of state under this section may be used for the programming and maintenance of information technology systems administered by the secretary of state.

Source:

S.L. 2001, ch. 361, § 35; 2013, ch. 257, § 35; 2015, ch., § 1; 2019, ch. 27, § 7, eff July 1, 2019.

Effective Date.

The 2013 amendment of this section by section 35 of chapter 257, S.L. 2013 becomes effective August 1, 2016, or earlier (See contingency note below).

Note.

Ch. 372 amends chapter 257 of 2013 to provide a new effective date, August 1, 2016.

Section 50 of chapter 257, S.L. 2013 provides: “CONTINGENT EFFECTIVE DATE. Sections 1 through 27 and sections 29 through 47 of this Act become effective August 1, 2015, or earlier if the secretary of state makes a report to the legislative management and to the information technology committee certifying that the information technology components of the electronic filing system are ready for implementation of those provisions of this Act, in which case those sections become effective ninety days following the completion of the certificate requirement.”

54-09-12. Confidential information in filed records.

  1. A social security number or federal tax identification number disclosed or contained in any record filed with the secretary of state is confidential. However, a social security number or federal tax identification number may be released as authorized in this section or by other state or federal law.
  2. The secretary of state shall delete or obscure a social security or federal tax identification number before a copy of any record is released to the public. The secretary of state, or an employee, agent, or contractor of the secretary of state’s office, may not be held civilly or criminally liable for the inadvertent disclosure of a social security or federal tax identification number if the filer has placed the number in an improper field on the form prescribed by the secretary of state or the filer submitted a filing other than on the form prescribed by the secretary of state.
  3. The secretary of state or an employee, agent, or contractor of the secretary of state’s office may release a social security number or federal tax identification number to another public entity or the public entity’s agents, employees, or contractors if disclosure is necessary for the receiving public entity to perform the receiving public entity’s duties and responsibilities. The receiving public entity and the receiving public entity’s agents, employees, and contractors shall maintain the confidential status of the social security number or federal tax identification number.

Source:

S.L. 2013, ch. 402, § 4; 2017, ch. 2, § 7, eff July 1, 2017.

Effective Date.

This section became effective July 1, 2013.

54-09-12.1 Criminal history record check.

The secretary of state may require any employee who has access to personally identifying information of residents or businesses of the state, or access to election systems that are critical infrastructure under section 44-04-24, to submit to a statewide and nationwide criminal history record check. The criminal history record check must be conducted as provided by section 12-60-24.

Source:

S.L. 2021, ch. 164, § 113, eff August 1, 2021.

54-09-13. Role of secretary of state in filing signed documents and records.

Whenever any provision of law requires or permits a signed document or record to be filed with the secretary of state, the provision may not be construed to require the secretary of state to make any determination the signed document or record filed or to be filed has been properly signed or executed by or on behalf of the filer.

History. S.L. 2015, ch. 373, § 1, eff August 1, 2015.

Effective Date.

This section became effective August 1, 2015.

54-09-14. Filing signed documents and records with the secretary of state — Use of agent.

  1. A person who signs a document submitted to the secretary of state without authority to sign that document or who signs the document knowing the document is false in any material respect is subject to the penalties of perjury or false statement set forth in chapter 12.1-11.
  2. Any document submitted to the office of the secretary of state online may be signed by any person as agent of any person whose signature is required by law. The signing party must indicate on the application that the person is acting as the agent of the person whose signature would be required and that the person has been authorized to sign on behalf of the applicant. The name of the person signing, entered on the online application, constitutes a valid signature by such an agent.
  3. Any document relating to a filing by a business entity or assumed name submitted to the office of the secretary of state on paper may be signed by any person as agent of any person whose signature is required by law. The signing party must indicate on the document that the signing party is acting as the agent of the person whose signature would be required and that the signing party has been authorized to sign on behalf of that person.

History. S.L. 2015, ch. 373, § 2, eff August 1, 2015.

Effective Date.

This section became effective March 25, 2015, pursuant to an emergency clause in section 2 of chapter 376, S.L. 2015.

CHAPTER 54-10 State Auditor

54-10-01. Powers and duties of state auditor.

  1. The state auditor shall:
    1. Be vested with the duties, powers, and responsibilities involved in performing the postaudit of all financial transactions of state government, detecting and reporting any defaults, and determining that expenditures have been made in accordance with law and appropriation acts.
    2. Perform or provide for the audit of the general purpose financial statements and a review of the material included in the comprehensive annual financial report of the state in accordance with government auditing standards.
    3. Perform or provide for audits of state agencies in accordance with government auditing standards and legislative audit and fiscal review committee guidelines developed under section 54-35-02.10. Except for the annual audit of the North Dakota lottery required by section 53-12.1-03, the state auditor shall audit each state agency once every two years. Audits may be conducted at more frequent intervals if requested by the governor or the legislative audit and fiscal review committee. The state auditor shall charge an amount equal to the cost of the audit and other services rendered by the state auditor to all agencies that receive and expend moneys from other than the general fund. This charge may be reduced for an agency that receives and expends both general fund and nongeneral fund moneys. State agencies shall use nongeneral fund moneys to pay for the cost of the audit. If nongeneral fund moneys are not available, the agency may, upon approval of the legislative assembly, or the budget section if the legislative assembly is not in session, use general fund moneys to pay for the audit. Any budget section action under this subdivision must comply with section 54-35-02.9.
    4. Perform or provide for performance audits of state agencies, or the agencies’ blended component units or discreetly presented component units, as determined necessary by the legislative assembly, or the legislative audit and fiscal review committee if the legislative assembly is not in session. When determining the necessity of a performance audit, the legislative audit and fiscal review committee shall consider:
      1. The potential cost-savings or efficiencies that may be gained as a result of the performance audit;
      2. The staff resources of the state auditor’s office and of the state agency being audited which will be required to conduct the audit;
      3. The potential for discovery of noncompliance with state law or legislative intent regarding the program or agency; and
      4. The potential for the performance audit to identify opportunities for program improvements.
    5. Report on the functions of the state auditor’s office to the governor and the secretary of state in accordance with section 54-06-04 or more often as circumstances may require.
    6. Perform work on mineral royalties for the federal government in accordance with section 1735(a) of the Mineral Lands and Mining Act [30 U.S.C. 1735 et seq.].
    7. Perform all other duties as prescribed by law.
  2. The state auditor may:
    1. Conduct any work required by the federal government.
    2. Within the resources available to the state auditor, perform or provide for performance audits of state agencies as determined necessary by the state auditor.
    3. Audit the International Peace Garden at the request of the board of directors of the International Peace Garden.
    4. Contract with a private certified public accountant or other qualified professional to conduct or assist with an audit, review, or other work the state auditor is authorized to perform or provide for under this section. Before entering any contract, the state auditor shall present information to the legislative audit and fiscal review committee on the need for the contract and its estimated cost and duration. Except for performance audits conducted under subdivision d of subsection 1 or subdivision b of this subsection and except for audits of occupational or professional boards, the state auditor shall execute the contract and any executive branch agency, including higher education institutions, shall pay the fees of the contractor. For performance audits conducted under subdivision d of subsection 1 or subdivision b of this subsection, the state auditor may charge a state agency for the cost of a contract relating to an audit, subject to approval by the legislative assembly or the legislative audit and fiscal review committee if the legislative assembly is not in session. When considering a request, the legislative audit and fiscal review committee shall consider the effect of the audit cost on the agency being audited, the necessity of the contract, and the potential benefit to the state resulting from the contract. The state auditor shall notify the affected agency of the potential cost before requesting approval from the legislative assembly or the legislative audit and fiscal review committee.

Source:

S.L. 1890, ch. 183, §§ 1, 10, 12; R.C. 1895, §§ 98, 322, 330, 332; R.C. 1899, §§ 98, 322, 330, 332; S.L. 1901, ch. 211, § 1; R.C. 1905, §§ 101, 382, 384, 2379; C.L. 1913, §§ 132, 642, 644, 3252; S.L. 1931, ch. 261, § 1; R.C. 1943, § 54-1001; S.L. 1959, ch. 372, § 68; 1963, ch. 346, § 56; 1969, ch. 434, § 1; 1971, ch. 493, § 1; 1973, ch. 418, § 1; 1975, ch. 466, § 47; 1975, ch. 470, § 2; 1975, ch. 471, § 1; 1985, ch. 561, § 1; 1985, ch. 562, § 1; 1987, ch. 623, § 1; 1989, ch. 637, § 1; 1991, ch. 575, § 1; 1995, ch. 350, § 44; 1997, ch. 443, § 1; 1999, ch. 451, § 1; 2001, ch. 478, § 1; 2003, ch. 25, § 3; 2003, ch. 454, § 4; 2005, ch. 470, § 5; 2015, 38, § 3, eff July 1, 2015; 2019, ch. 29, § 3, eff July 1, 2019; 2019, ch. 432, § 1, eff August 1, 2019; 2021, ch. 395, § 2, eff July 1, 2021.

Note.

Section 54-10-01 was amended 2 times by the 2019 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 1 of Chapter 99, Session Laws 2019, House Bill 1077; and Section 3 of Chapter 28, Session Laws 2019, Senate Bill 2004.

Effective Date.

The 2015 amendment of this section by section 3 of chapter 38, S.L. 2015 became effective July 1, 2015.

Cross-References.

Certification of bonded indebtedness, see N.D. Const., Art. X, § 17.

Election and duties, see N.D. Const., Art. V, § 2.

Term of office, see N.D. Const., Art. V, § 5.

DECISIONS UNDER PRIOR LAW

Analysis

Audit Not Required.

Statute appropriating five hundred dollars annually to each judge of the supreme court for expenses incurred in his official capacity did not require audit by any officer and therefore no itemized statement of the claim had to be made. State ex rel. Langer v. Kositzky, 38 N.D. 616, 166 N.W. 534, 1918 N.D. LEXIS 4 (N.D. 1918).

Authority of Auditor.

State auditor was without authority to issue a warrant for payment of an award made by workmen’s compensation bureau. State ex rel. Stearns v. Olson, 43 N.D. 619, 175 N.W. 714, 1919 N.D. LEXIS 64 (N.D. 1919).

It was not part of auditor’s duties to examine the Bank of North Dakota. State ex rel. Kozitzky v. Waters, 45 N.D. 115, 176 N.W. 913, 1920 N.D. LEXIS 111 (N.D. 1920).

The state auditor could question the constitutionality of a statute upon which proceedings had been instituted to compel him to disburse funds. Department of State Highways v. Baker, 69 N.D. 702, 290 N.W. 257, 1940 N.D. LEXIS 200 (N.D. 1940).

Where state auditor resisted performance of duties as outlined by statute, without first requesting an opinion from the attorney general, or in disregard of such opinion, he could not question the constitutionality of such statute as a defense to a mandamus proceeding to compel performance. State ex rel. Johnson v. Baker, 74 N.D. 244, 21 N.W.2d 355 (1945), distinguished, Solberg v. State Treasurer, 78 N.D. 806, 53 N.W.2d 49 (1952) and State v. Amerada Petroleum Corp., 71 N.W.2d 675, 1955 N.D. LEXIS 127 (N.D. 1955).

Compelling Payment.

If there were moneys in the general fund with which to pay salary of tax commissioner, a writ of mandamus would issue to compel payment. State ex rel. Wallace v. Kositzky, 44 N.D. 291, 175 N.W. 207, 1919 N.D. LEXIS 210 (N.D. 1919).

The auditor was not authorized to transfer moneys from the general fund to a separate fund. State ex rel. Wallace v. Kositzky, 44 N.D. 291, 175 N.W. 207, 1919 N.D. LEXIS 210 (N.D. 1919).

No Liability Accrued Under Bond.

No liability accrued under the auditor’s official bond if he was acting upon advice of the attorney general concerning the constitutionality of a statute requiring him to perform a ministerial act. State ex rel. Johnson v. Baker, 74 N.D. 244, 21 N.W.2d 355 (1945), distinguished, Solberg v. State Treasurer, 78 N.D. 806, 53 N.W.2d 49 (1952) and State v. Amerada Petroleum Corp., 71 N.W.2d 675, 1955 N.D. LEXIS 127 (N.D. 1955).

54-10-01.1. State auditor to audit emergency commission action.

The state auditor’s office, in the course of its audits of state agencies, departments, and institutions, shall review the expenditure of funds transferred or made available by the emergency commission to such state agencies, departments, and institutions, and shall have incorporated in the financial statements of such governmental units expenditures arising from emergency commission action.

Source:

S.L. 1977, ch. 483, § 1.

Cross-References.

Emergency commission, see N.D.C.C. ch. 54-16.

54-10-02. Auditor to have access to all state offices.

Except for active investigatory work product of the attorney general as defined in section 44-04-19.1, the state auditor shall have access to all state offices during business hours for the purpose of inspecting books, papers, accounts, and records therein as may concern the state auditor’s duties. Except for active investigatory work product of the attorney general as defined in section 44-04-19.1 and tax records as described in section 54-10-24, access includes inspection of any books, papers, accounts, or records that the state auditor may deem relevant to an ongoing audit of any other state agency or computer system audit.

Source:

R.C. 1895, § 98, subs. 17; R.C. 1899, § 98, subs. 17; S.L. 1901, ch. 211, § 1; R.C. 1905, § 101, subs. 17; C.L. 1913, § 132, subs. 17; S.L. 1931, ch. 261, § 1, subs. 17; R.C. 1943, § 54-1002; S.L. 1959, ch. 372, § 69; 2005, ch. 477, § 1.

54-10-03. Official bond. [Repealed]

Repealed by S.L. 1999, ch. 113, § 24.

54-10-04. Legislative assembly to provide for audit of state auditor’s office.

The legislative assembly shall provide for the employment by contract of a public accountant or accountants to conduct a postaudit of the office of the state auditor. A copy of such audit report must be filed with the governor and with each house of the legislative assembly.

Source:

R.C. 1895, § 99; R.C. 1899, § 99; R.C. 1905, § 102; C.L. 1913, § 133; R.C. 1943, § 54-1004; S.L. 1959, ch. 372, § 71.

54-10-05. Auditor to set up account against person who fails to render account. [Repealed]

Repealed by S.L. 1959, ch. 372, § 117.

54-10-06. Auditor may procure books and blanks. [Repealed]

Repealed by S.L. 1959, ch. 372, § 117.

54-10-07. Auditor to have access to all state offices. [Repealed]

Repealed by S.L. 1959, ch. 372, § 117.

54-10-08. Legislative inspection of books of state auditor. [Repealed]

Repealed by S.L. 1959, ch. 372, § 117.

54-10-09. Transmit forms and instructions to county auditors. [Repealed]

Repealed by S.L. 1959, ch. 372, § 117.

54-10-10. Salary of state auditor.

The annual salary of the state auditor is one hundred twelve thousand two hundred forty-one dollars through June 30, 2022, and one hundred fourteen thousand four hundred eighty-six dollars thereafter.

Source:

R.C. 1895, § 106; R.C. 1899, § 106; R.C. 1905, § 109; S.L. 1909, ch. 216, § 4; C.L. 1913, § 140; I.M. Nov. 8, 1932, § 1, S.L. 1933, p. 504; 1943, ch. 202, § 2; R.C. 1943, § 54-1010; S.L. 1951, ch. 305, § 6; 1957, ch. 335, § 5; 1957 Supp., § 54-1010; S.L. 1965, ch. 344, § 8; 1973, ch. 417, § 8; 1977, ch. 480, § 9; 1983, ch. 44, § 19; 1985, ch. 560, § 8; 1989, ch. 1, § 24; 1991, ch. 28, § 33; 1991, ch. 53, § 13; 1995, ch. 26, § 4; 1997, ch. 4, § 4; 1999, ch. 26, § 5; 2001, ch. 4, § 3; 2005, ch. 4, § 5; 2005, ch. 15, § 19; 2007, ch. 31, § 4; 2009, ch. 4, § 3; 2011, ch. 30, § 4; 2013, ch. 4, § 3; 2015, 38, § 4, eff July 1, 2015; 2019, ch. 29, § 4, eff July 1, 2019; 2021, ch. 4, § 3, eff July 1, 2021.

Effective Date.

The 2015 amendment of this section by section 4 of chapter 38, S.L. 2015 became effective July 1, 2015.

The 2013 amendment of this section by section 3 of chapter 4, S.L. 2013 became effective July 1, 2013.

54-10-11. Official bond. [Repealed]

Repealed by S.L. 1959, ch. 372, § 117.

54-10-12. Department of transportation property. [Repealed]

Repealed by S.L. 2001, ch. 122, § 11.

54-10-13. Political subdivisions — Audits — State auditor powers.

The state auditor shall perform audits of political subdivisions pursuant to section 54-10-14 unless otherwise requested by the governing board, ordered by the governor or the legislative audit and fiscal review committee, or on petition pursuant to section 54-10-15, or at the discretion of the state auditor for alleged improprieties.

Source:

S.L. 1967, ch. 376, § 4; 1971, ch. 493, § 2; 1975, ch. 470, § 3; 1977, ch. 484, § 1; 1987, ch. 623, § 2; 1997, ch. 444, § 1.

54-10-14. Political subdivisions — Audits — Fees — Alternative audits and reports.

  1. The state auditor shall audit the following political subdivisions once every two years, except as provided in this section or otherwise by law:
    1. Counties.
    2. Cities, and when a city is audited, to include any political subdivision that was created by the city and has bonding authority.
    3. Park districts.
    4. School districts.
    5. Firefighters relief associations.
    6. Airport authorities.
    7. Public libraries.
    8. Water resource districts.
    9. Garrison Diversion Conservancy District.
    10. Rural fire protection districts.
    11. Special education districts.
    12. Area career and technology centers.
    13. Correction centers.
    14. Recreation service districts.
    15. Weed boards.
    16. Irrigation districts.
    17. Rural ambulance service districts.
    18. Southwest water authority.
    19. Regional planning councils.
    20. Soil conservation districts.
    21. Western area water supply authority industrial water sales on an annual basis.
  2. The state auditor shall charge the political subdivision an amount equal to the fair value of the audit and any other services rendered. The fees must be deposited in the state auditor operating account. The state treasurer shall credit the state auditor operating account with the amount of interest earnings attributable to the deposits in that account. Expenses relating to political subdivision audits must be paid from the state auditor operating account, within the limits of legislative appropriation.
  3. In lieu of conducting an audit every two years, the state auditor may require annual reports from political subdivisions subject to this section, or otherwise provided by law, with less than seven hundred fifty thousand dollars of annual receipts, excluding any federal funds passed through the political subdivision to another entity. If any federal agency performs or requires an audit of a political subdivision that receives federal funds to pass through to another entity, the political subdivision shall provide a copy to the state auditor upon request by the state auditor. The reports must contain the financial information required by the state auditor. The state auditor also may make any additional examination or audit determined necessary in addition to the annual report. When a report is not filed, the state auditor may charge the political subdivision an amount equal to the fair value of the additional examination or audit and any other services rendered. The state auditor may charge a political subdivision a fee not to exceed eighty-six dollars an hour for the costs of reviewing the annual report.
  4. A political subdivision, at the option of its governing body, may be audited by a certified public accountant or licensed public accountant rather than by the state auditor. The public accountant shall comply with generally accepted government auditing standards for audits of political subdivisions. The report must be in the form and content required by the state auditor. The number of copies of the audit report requested by the state auditor must be filed with the state auditor when the public accountant delivers the audit report to the political subdivision. The state auditor shall review the audit report to determine if the report is in the required form and has the required content, and if the audit meets generally accepted government auditing standards. The state auditor also may periodically review the public accountant’s workpapers to determine if the audit meets generally accepted government auditing standards. If the report is in the required form and has the required content, and the report and workpapers comply with generally accepted government auditing standards, the state auditor shall accept the audit report. The state auditor may charge the political subdivision a fee of up to eighty-six dollars an hour, but not to exceed seven hundred fifty dollars per review, for the related costs of reviewing the audit report and workpapers.
  5. A political subdivision may not pay a public accountant for an audit until the state auditor has accepted the audit. However, a political subdivision may make progress payments to the public accountant. A political subdivision shall retain twenty percent of any progress payment until the audit report is accepted by the state auditor.
  6. The state auditor may require the correction of any irregularities, objectionable accounting procedures, or illegal actions on the part of the governing board, officers, or employees of the political subdivision disclosed by the audit report or workpapers, and failure to make the corrections must result in audits being resumed by the state auditor until the irregularities, objectionable accounting procedures, or illegal actions are corrected.

Source:

S.L. 1967, ch. 376, § 5; 1971, ch. 493, § 3; 1973, ch. 419, § 1; 1975, ch. 470, § 4; 1977, ch. 484, § 2; 1983, ch. 554, § 1; 1985, ch. 235, § 94; 1985, ch. 561, § 2; 1987, ch. 623, § 3; 1989, ch. 639, § 1; 1991, ch. 576, § 1; 1991, ch. 577, § 1; 1993, ch. 62, § 16; 1993, ch. 514, § 1; 1997, ch. 444, § 2; 1999, ch. 106, § 14; 2001, ch. 479, § 1; 2003, ch. 138, § 94; 2005, ch. 478, § 1; 2005, ch. 479, § 1; 2009, ch. 463, § 1; 2009, ch. 464, § 1; 2011, ch. 394, § 1; 2011, ch. 41, § 27; 2013, ch. 490, § 2; 2013, ch. 403, § 1; 2015, 374, § 1, eff August 1, 2015; 2021, ch. 4, § 4, eff July 1, 2021.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 374, S.L. 2015 became effective August 1, 2015.

The 2013 amendment of this section by section 1 of chapter 403, S.L. 2013 became effective August 1, 2013.

The 2013 amendment of this section by section 2 of chapter 490, S.L. 2013 became effective July 1, 2013.

Notes to Decisions

Constitutionality.

This section is not an unconstitutional delegation of legislative authority under N.D. Const., Art. III, § 1, or N.D. Const., Art. XI, § 26; since the delegated power to ascertain facts for operation of a law is not unconstitutional if a reasonable guideline is given and since the legislated guideline of “related costs” protects against an arbitrary exercise of the power by the State Auditor in setting the fee for reviewing a public accountant’s audit report. Syverson, Rath & Mehrer, P.C. v. Peterson, 495 N.W.2d 79, 1993 N.D. LEXIS 13 (N.D. 1993).

Where the legislature has simply directed the State Auditor to determine the costs related to each audit review and to charge those costs to the public accountant, there was no unconstitutional delegation of legislative authority under N.D. Const., Art. III, § 1, N.D. Const. Art. XI, § 26. Syverson, Rath & Mehrer, P.C. v. Peterson, 495 N.W.2d 79, 1993 N.D. LEXIS 13 (N.D. 1993).

54-10-15. Audits of political subdivisions by order of governor or the legislative audit and fiscal review committee, upon petition, or upon request of the state court administrator.

  1. The state auditor, by duly appointed deputy auditors or other authorized agents, shall audit or review the books, records, and financial accounts of any political subdivision when ordered by the governor or the legislative audit and fiscal review committee, requested by the governing board, or upon petition of at least thirty-five percent of the qualified electors of any political subdivision enumerated in section 54-10-14 voting for the office of governor at the preceding general election or, in the case of school districts, upon petition of at least thirty-five percent of the qualified electors voting at the preceding school board election, or upon the request of the state court administrator with respect to clerk of district court services provided by a county in accordance with chapter 27-05.2. Fees for the audits must be paid in accordance with the provisions of section 54-10-14.
  2. If an audit is ordered due to financial irregularities or allegations of embezzlement, the governor may suspend an elected or appointed school board member from the individual’s duties if the governor determines suspension is in the best interest of the state pending the results of the audit. If the governor suspends an elected or appointed school board member, the governor immediately shall provide notice to the school board with which the suspended member serves. Within five days of receiving notice, the school board shall appoint an individual to replace the suspended member to serve during the pendency of the audit. The governor shall consult with the superintendent of public instruction in determining whether suspension of a member of a school board is in the best interest of the state.

Source:

S.L. 1967, ch. 376, § 6; 1975, ch. 144, § 22; 1985, ch. 235, § 95; 1989, ch. 639, § 2; 1997, ch. 444, § 3; 2009, ch. 465, § 1; 2019, ch. 156, § 2, eff April 11, 2019.

54-10-16. Audit in case of irregularity or embezzlement.

It is not the duty of the state auditor or the state auditor’s staff to make audits of any political subdivisions, funds, commissions, associations, and bureaus, for the reason of severance from the service of such political subdivisions, funds, commissions, associations, and bureaus of any officer, clerk, deputy, cashier, or other employee unless the head of such state office or department, or the board administering any other of the agencies named herein shall request such audit in writing, and state that there is reason to believe that there is irregularity in handling funds or embezzlement involved.

Source:

S.L. 1967, ch. 376, § 7.

54-10-17. Audit of counties. [Repealed]

Repealed by S.L. 2005, ch. 480, § 1.

54-10-18. Supervision of records and fiscal affairs of counties. [Repealed]

Repealed by S.L. 2009, ch. 463, § 3.

54-10-19. Supervision of public institutions and private institutions with which state has dealings.

The state auditor may examine the books and accounts of all private institutions with which the state has any dealings so far only as the same relate to such dealings. If any public officer having control of any such office or institutions fails or refuses to comply with the directions of the state auditor, the auditor shall report the facts to the governor and to the manager of the state bonding fund, and such refusal constitutes grounds for removal from office and cancellation of the bond of such officer.

Source:

S.L. 1967, ch. 376, § 10; 1999, ch. 106, § 15; 2009, ch. 463, § 2.

54-10-20. Special state auditor. [Repealed]

Source:

S.L. 1967, ch. 376, § 11; Repealed by 2021, ch. 396, § 1, eff August 1, 2021.

54-10-21. Duty of state auditor on failures by officers.

The state auditor may report to the attorney general the refusal or neglect of any state officer to obey the state auditor’s recommendations. After investigation, the attorney general may take appropriate action to enforce compliance therewith.

Source:

S.L. 1967, ch. 376, § 12; 2003, ch. 465, § 1.

54-10-22. Public officers to aid state auditor — Auditor’s authority on investigation.

The officers and employees of all departments, institutions, boards, commissions, and political subdivisions, subject to examination by the state auditor, shall afford all reasonable facilities for the investigation provided for in this title and shall make returns and exhibits to the auditor under oath in such form and in such manner as the auditor may prescribe. The auditor shall have full power and authority to audit any books, papers, accounts, bills, vouchers, and other documents or property of any and all departments, boards, commissions, political subdivisions, and financial institutions subject to the auditor’s audit. The auditor shall have authority to audit under oath any or all trustees, managers, officers, employees, or agents of any such departments, boards, commissions, or political subdivisions. When necessary, the auditor shall employ stenographers or clerical help, the expense incurred to be collected by the auditor from the respective department, institution, board, commission, or political subdivision.

Source:

S.L. 1967, ch. 376, § 13; 1987, ch. 262, § 2.

54-10-22.1. State auditor’s access to information relating to operations of governmental entities subject to audit.

Notwithstanding any other specific sections of law, the state auditor and persons employed by the state auditor, when necessary in conducting an audit, shall have access to all information relating to operations of all governmental units or component units subject to audit except active investigatory work product of the attorney general as defined in section 44-04-19.1 and financial records and estate planning records a donor provides to a nonprofit organization affiliated with an institution under the control of the state board of higher education which provides support to and is organized and operated for the benefit of the institution. Except for active investigatory work product of the attorney general as defined in section 44-04-19.1 , tax records as described in section 54-10-24, and all facts and information obtained or created by the department of financial institutions under subsection 1 of section 6-01-07.1, the state auditor may inspect any state agency’s books, papers, accounts, or records that may be relevant to an ongoing audit of any other state agency or computer system audit. The state auditor and persons employed by the state auditor examining any information, which is confidential by law, shall guard the secrecy of such information except when otherwise directed by judicial order or as is otherwise provided by law.

Source:

S.L. 1977, ch. 485, § 1; 2005, ch. 477, § 2; 2017, ch. 28, § 10, eff July 1, 2017; 2021, ch. 78, § 2, eff August 1, 2021.

Cross-References.

Penalty for unauthorized disclosure of confidential information, see N.D.C.C. §§ 12.1-13-01, 54-10-25.

54-10-23. Obstructing or misleading auditor — Penalty.

Every person who, when required to do so, shall refuse or neglect to make any return or exhibit, or to make or give any information required by the auditor, or who willfully shall obstruct or mislead the auditor in the execution of the auditor’s duties, or who in any manner shall hinder a thorough examination by the auditor, is guilty of a class C felony.

Source:

S.L. 1967, ch. 376, § 14; 1975, ch. 106, § 579.

54-10-24. The state auditor shall have access to tax returns and other records filed with the tax commissioner.

The state auditor and persons employed by the state auditor, when necessary in conducting an audit and examination of the books and records of the tax commissioner as authorized by law, may examine any return, report, or other information filed with the tax commissioner, and confirm the authenticity of such return, report, or other information with the taxpayer who filed it.

The audit report of the state auditor may not identify any return, report, or other document examined whose secrecy is guarded by law and which is examined pursuant to this chapter by the state auditor or the auditor’s representatives, but the state auditor or the auditor’s representatives shall make a listing of each return, report, or other document examined whose secrecy is guarded by law, which listing must include the name and address of the taxpayer or other person who filed the return, report, or other document or to whom it relates, and the tax department file identification number for it; such listing must also identify all summaries and schedules examined which are compiled and kept by the tax commissioner and which identify taxpayers and taxpayer information to which the secrecy requirements apply; the listing must also show the name or names of the individuals representing the state auditor who examined each such return, report, summary, schedule, or other document. A copy of the listing must be filed by the state auditor with the tax commissioner. Such listing and all copies thereof are subject to the same secrecy or confidentiality requirements that apply to the information described in the listing.

Source:

S.L. 1969, ch. 435, § 1; 1977, ch. 486, § 1.

54-10-25. Divulging of certain secret information prohibited.

  1. The state auditor and the auditor’s employees, including any person employed by the auditor to perform the examination of any return, report, or other information filed and in the possession of the tax commissioner which is made confidential by law, may not divulge the contents of any return, report, or other information examined or any listing made therefrom by the state auditor or the auditor’s employees except when otherwise directed by judicial order, or as is otherwise provided by law.
  2. The state auditor, the auditor’s employees, or an agent of the auditor may not divulge any information relating to a matter forwarded to the attorney general or a state’s attorney for further investigation until the attorney general or state’s attorney has made a determination as to whether there is probable cause to believe a violation of law has occurred.

Source:

S.L. 1969, ch. 435, § 2; 1975, ch. 106, § 580; 1977, ch. 486, § 2; 2021, ch. 397, § 2, eff August 1, 2021.

54-10-25.1 Reporting noncompliance — Confidentiality.

Information that reasonably may be used to identify an individual who reported suspected or potential violations of law or other irregularities to the state auditor is a confidential record under section 44-04-17.1.

Source:

S.L. 2021, ch. 395, § 3, eff July 1, 2021.

54-10-26. State auditor’s working papers.

  1. Except as provided in this section, working papers of the state auditor are not public records and are exempt from section 44-04-18. Working papers include records kept by the auditor of the procedures applied, the tests performed, the information obtained, draft audit reports, and the pertinent conclusions reached in the engagement. Working papers may be, at the discretion of the state auditor and unless otherwise prohibited by law, made available for inspection.
  2. Except as provided in subsection 3, a draft audit report released to the governing body or management of the audited entity is confidential until the final audit report is issued or work ceases on the audit at which time the audit report becomes an open record.
  3. Except as provided in this subsection, a draft audit report for an audit completed in accordance with performance auditing standards contained in government auditing standards issued by the comptroller general of the United States to provide an independent assessment of the performance and management of a program released to the governing body or management of the audited entity is confidential until the final version of the audit report is an open record. After the auditor receives the audited entity’s response to the draft report, the auditor shall complete the audit report, which is then deemed a preliminary audit report. The auditor shall provide the preliminary audit report and the audited entity’s response to the legislative audit and fiscal review committee for a seven-day review period, except the auditor may not provide any information that is confidential under subsection 2 of section 54-10-25. During the review period, the preliminary audit report and the response may not be provided to any other person except by the legislative audit and fiscal review committee as necessary to perform the committee’s duties as described in section 54-35-02.2. At the end of the review period, the preliminary audit report is deemed a final audit report, and the final audit report and the audited entity’s response are open records. Reports for audits performed under subdivision f of subsection 1 of section 54-10-01 or subdivision a of subsection 2 of section 54-10-01 are not subject to this subsection.
  4. The respective working papers of an issued audit report or an audit report presented to the legislative audit and fiscal review committee are open records unless the state auditor declares all or a portion of the working papers confidential. The declaration of confidentiality must state the reason for the confidentiality and the date, as can best be reasonably determined at the time, when the working papers will be made public.

Source:

S.L. 1987, ch. 624, § 1; 2003, ch. 466, § 1; 2021, ch. 395, § 4, eff July 1, 2021.

54-10-27. Occupational and professional boards — Audits and reports.

The governing board of any occupational or professional board shall provide for an audit once every two years by a certified public accountant or licensed public accountant. The accountant conducting the audit shall submit the audit report to the state auditor’s office. If the report is in the form and style prescribed by the state auditor, the state auditor may not audit that board. An occupational or professional board may request the state auditor to conduct its audit, and if the state auditor agrees to conduct the audit, the state auditor shall deposit the fees charged to the occupational or professional board into the state auditor operating account. Instead of providing for an audit every two years, an occupational or professional board that has less than two hundred thousand dollars of annual receipts may submit an annual report to the state auditor. The report must contain the information required by the state auditor. The state auditor also may make any additional examination or audit determined necessary in addition to the annual report. When a report is not filed, the state auditor may charge the occupational or professional board an amount equal to the fair value of the additional examination or audit and any other services rendered. The state auditor may charge an occupational or professional board a fee not to exceed eighty-six dollars an hour for the costs of reviewing the annual report.

Source:

S.L. 2001, ch. 478, § 2; 2013, ch. 404, § 1; 2017, ch. 396, § 1, eff August 1, 2017; 2021, ch. 4, § 5, eff July 1, 2021.

Effective Date.

The 2013 amendment of this section by section 1 of chapter 404, S.L. 2013 became effective August 1, 2013.

54-10-28. Information technology responsibilities.

The state auditor may:

  1. Conduct information technology compliance reviews, as determined necessary by the information technology committee, by conducting individual agency audits of information technology management, information technology planning, compliance with information technology plans, and compliance with information technology standards and policies and conducting statewide agency audits of compliance with specific information technology standards and policies.
  2. Consult with the information technology department on audits of compliance with information technology plans and compliance with information technology standards and policies.
  3. Participate in the information technology department’s enterprise architecture process for developing information technology standards and policies.
  4. Monitor major information technology projects for compliance with project management and information technology standards and policies.
  5. Present results of information technology compliance reviews to the information technology committee and the state information technology advisory committee.

Source:

S.L. 2003 Sp., ch. 665, § 14; 2005, ch. 481, § 1; 2007, ch. 457, § 1.

54-10-29. Audits of computer systems — Penalty.

  1. The state auditor may:
    1. Pursuant to the powers and duties outlined in this chapter, conduct a review and assessment of computer systems and related security systems. Computer systems subject to this section include the computer systems of a state agency or political subdivision that is subject to audit by the state auditor. Tests conducted in connection with this review and assessment may include an assessment of system vulnerability, network penetration, potential security breach, and susceptibility to cyber attack or cyber fraud.
    2. Disclose any findings to the chief information officer of the state or to any state official or legislative committee. Working papers and preliminary drafts of reports created in connection with the review of computer systems and the security of the systems are exempt from section 44-04-18. Those parts of findings and working papers that identify the methods of the state auditor or that may cause or perpetuate vulnerability of the computer system reviewed are exempt from section 44-04-18 and protected from disclosure until the state auditor directs otherwise.
    3. Procure the services of a specialist in information security systems or other contractors deemed necessary in conducting a review under this section. The procurement of these services is exempt from the requirements of chapter 54-44.4.
  2. An outside contractor hired to provide services in the review of the security of a computer system is subject to the confidentiality provisions of this section and section 44-04-27. Any individual who knowingly discloses confidential information is subject to the provisions of section 12.1-13-01.
  3. The state auditor shall notify the executive officer of any state agency of the date, time, and location of any test conducted in connection with a review and assessment of computer systems or related security systems. The executive officer or the officer’s designee may attend and observe any test during which confidential information may be accessed or controlled.
  4. The state auditor shall notify the attorney general of the date, time, and location of any test conducted in connection with a review and assessment of computer systems or related security systems. The attorney general may designate an individual to participate in the test. The designee of the attorney general may order the test to be terminated if the individual believes a sensitive system is being breached, a sensitive system may be breached, or sensitive information may be revealed.
  5. Notwithstanding any provision in chapter 32-12.2 to the contrary, if the attorney general and the director of the office of management and budget determine it is in the best interest of the state, the state auditor may agree to limit the liability of a contractor performing a review and assessment under this section. The liability limitation must be approved by the attorney general and director of the office of management and budget in writing. For any uninsured losses, the director of the office of management and budget may approve the risk management fund to assume all or part of the contractor’s liability to the state in excess of the limitation.
  6. A state agency receiving federal tax information under section 6103 of the Internal Revenue Code, as amended [26 U.S.C. 6103], in conjunction with the state auditor, may enter a contract with the vendor selected by the state auditor under subdivision c of subsection 1 to conduct a review and assessment of the state agency’s computer systems and related security systems, including an assessment of system vulnerability, network penetration, potential security breach, and susceptibility to cyber attack or cyber fraud.

Source:

S.L. 2005, ch. 482, § 1; 2007, ch. 458, § 1.

54-10-30. State board of higher education audits — Higher education audit division.

  1. The state auditor shall establish a higher education audit division and employ a division audit manager to perform all audit related functions of the state board of higher education, including the examination and evaluation of the adequacy and effectiveness of the board’s governance, risk management, internal controls, performance of constitutionally and statutorily required duties, and other areas as determined by the state auditor. The audit manager shall conduct audits, as determined appropriate by the state auditor, of each institution under the supervision and control of the state board of higher education. The audit manager may consult with the state board of higher education, or a committee designated by the board, regarding audit plans, results of audit activities, and any other appropriate issue. The state auditor shall determine the audit scope and related audit areas of any audit conducted by the audit manager. This section does not require the state auditor to perform any duties that would compromise the auditor’s independence under government auditing standards.
  2. The audit manager may access and examine any record under the control of the state board of higher education. For purposes of reviewing records under the Family Educational Rights and Privacy Act [20 U.S.C. 1232g; 34 CFR 99] or any other federal privacy law, the audit manager must be considered a state educational official authorized to access student records for audit purposes.
  3. The state auditor may hire employees necessary to carry out the duties and responsibilities of this section. The state auditor may hire consultants to assist with any duties required under this section subject to approval by the legislative audit and fiscal review committee. The state board of higher education shall pay for the cost of any consultant approved under this section.
  4. This section does not prohibit the state board of higher education from employing internal audit staff or contracting for internal audit services.

History. S.L. 2015, ch. 38, § 5, eff July 1, 2015; 2015, ch. 3, § 19, eff July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 19 of chapter 3, S.L. 2015 became effective July 1, 2015.

This section became effective July 1, July 1, 2015

Note.

Section 54-10-30 was enacted and amended by the 2015 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 19 of Chapter 3, Session Laws 2015, Bill 1003; and Section 5 of Chapter 30, Session Laws 2015, Senate Bill 2004.

CHAPTER 54-11 State Treasurer

54-11-01. Duties and powers of state treasurer.

The state treasurer:

  1. Shall receive and safely keep all public moneys which must be deposited into the state treasury and pay out the same as directed by law.
  2. Shall collect a record for each deposit of money into the treasury. The record must show the amount, the source from which the money accrued, and the funds into which it is paid. The records must be numbered in order.
  3. Shall pay warrants drawn by the office of management and budget and signed by the state auditor and state treasurer out of the funds upon which they are drawn and in the order in which they are presented.
  4. Shall keep an account of all moneys received and disbursed.
  5. Shall keep separate accounts of the different funds.
  6. Shall keep a record of all revenues and expenditures of state agencies and all moneys received and disbursed by the treasurer in accordance with the requirements of the state’s central accounting system.
  7. Shall receive in payment of public dues the warrants drawn by the office of management and budget and signed by the state auditor and state treasurer in conformity with law.
  8. Shall redeem warrants drawn by the office of management and budget and signed by the state auditor and state treasurer in conformity with law, if there is money in the treasury appropriated for that purpose.
  9. Shall maintain a report of the payment of warrants during the month. The report must show:
    1. The date and number of each warrant;
    2. The fund out of which each was paid; and
    3. The balance in cash on hand in the treasury to the credit of each fund.
  10. Within ninety days of the beginning of each fiscal year, shall provide a report to the budget section of the legislative assembly of all warrants and checks outstanding for more than ninety days and less than three years.
  11. At the request of either house of the legislative assembly, or of any committee thereof, shall give information in writing as to the condition of the treasury, or upon any subject relating to the duties of office.
  12. Shall submit a biennial report to the governor and the secretary of state in accordance with section 54-06-04. In addition to any requirements established pursuant to section 54-06-04, the report must show the exact balance in the treasury to the credit of the state. The report also must show in detail the receipts and disbursements, together with a summary thereof, the balances in the various funds at the beginning and ending of the biennium, and also must show where the funds of the state are deposited. It must be certified by the state treasurer and approved by the governor.
  13. Shall authenticate with the official state seal all writings and papers issued from the treasurer’s office.
  14. Shall keep and disburse all moneys belonging to the state in the manner provided by law.
  15. Shall keep books of the state treasurer open at all times for the inspection of the governor, the state auditor, the commissioner of financial institutions, the office of management and budget, and any committee appointed to examine them by either house of the legislative assembly.
  16. Unless otherwise specified by law, shall credit all income earned on the deposit or investment of all state moneys to the state’s general fund. This subsection does not apply to:
    1. Income earned on state moneys that are deposited or invested to the credit of the industrial commission or any agency, utility, industry, enterprise, or business project operated, managed, controlled, or governed by the industrial commission.
    2. Income earned by the Bank of North Dakota for its own account on state moneys that are deposited in or invested with the Bank.
    3. Income earned on college and university funds not deposited in the state treasury.
  17. Shall perform all other duties as are prescribed by law.
  18. Shall correct any underpayment, overpayment, or erroneous payment of tax distribution funds, resulting from an error made by the state treasurer in a timely manner. Unless otherwise provided by law, adjustments may be made from the general fund. This authority is limited to one hundred dollars per biennium, unless approved by the emergency commission. An adjustment of an insignificant amount need not be made at the discretion of the state treasurer. The state treasurer shall adopt a written policy identifying what is considered insignificant.
  19. May work to promote access to financial education tools that can help all North Dakotans make wiser choices in all areas of personal financial management.

Source:

S.L. 1890, ch. 183, § 12; 1893, ch. 96, §§ 1 to 5, 7; R.C. 1895, §§ 108, 332; R.C. 1899, §§ 108, 332; S.L. 1903, ch. 187, § 1; R.C. 1905, §§ 111, 384; C.L. 1913, §§ 143, 644; R.C. 1943, § 54-1101; S.L. 1959, ch. 372, § 72; 1963, ch. 346, § 57; 1973, ch. 403, § 44; 1975, ch. 466, § 48; 1975, ch. 472, § 1; 1977, ch. 487, § 1; 1983, ch. 555, § 2; 1991, ch. 578, § 3; 1995, ch. 350, § 45; 2001, ch. 88, § 89; 2003, ch. 467, § 2; 2005, ch. 483, § 1; 2009, ch. 466, § 1; 2011, ch. 395, § 1; 2013, ch. 5, § 3.

Effective Date.

The 2013 amendment of this section by section 3 of chapter 5, S.L. 2013 became effective July 1, 2013.

Cross-References.

Election, qualifications and term, see N.D. Const., Art. V, § 12.

Powers and duties, see N.D. Const., Art. V, § 7.

State funds must be deposited in Bank of North Dakota, see N.D.C.C. § 6-09-07.

Notes to Decisions

Apportioning Oil Extraction Tax Moneys.

Pursuant to the authority given him under N.D.C.C. § 57-51.1-07 of the oil extraction tax chapter and this section, the state treasurer has the jurisdiction, authority, and duty to apportion and allocate oil extraction tax moneys received. SunBehm Gas v. Lesmeister, 308 N.W.2d 555, 1981 N.D. LEXIS 310 (N.D. 1981).

DECISIONS UNDER PRIOR LAW

General Deposit of State Money.

A general deposit of state money by the state treasurer could be lawfully made only in those banks which had been designated by the state board of auditors and had qualified as state depositories, and could not exceed the maximum amount for which the bank had qualified. State v. Bickford, 28 N.D. 36, 147 N.W. 407 (N.D. 1914).

Special Deposit of State Money.

A special deposit of money by the state treasurer in a bank was a placing of money therein merely for safekeeping; the banker was to keep the identical money without mingling it with other funds of the bank to be returned in kind to the state treasurer, or such person or persons as he might direct. State v. Bickford, 28 N.D. 36, 147 N.W. 407 (N.D. 1914).

54-11-01.1. Bicentennial trust fund — Created — Expenditures.

The centennial commission shall transfer ten thousand dollars from its special revolving fund to the state treasurer to be placed in a bicentennial trust fund. The principal and interest of this fund must remain intact until transferred to the bicentennial commission on or after January 1, 2089. If no bicentennial commission is in existence on January 1, 2089, the money in the bicentennial trust fund must be transferred to the governor. Upon transfer to the bicentennial commission or the governor, as the case may be, the moneys in the fund may be expended to commemorate and celebrate the bicentennial of the state.

Source:

S.L. 1991, ch. 579, § 1.

54-11-02. Monthly warrants turned over to office of management and budget. [Repealed]

Repealed by S.L. 1965, ch. 181, § 33.

54-11-03. Warrants — Redemption — Duty of treasurer. [Repealed]

Repealed by S.L. 2003, ch. 467, § 4.

54-11-04. Records of state treasurer.

The state treasurer shall keep the following records:

  1. A record of all moneys received or paid out, showing from whom received or to whom paid and on what account or fund.
  2. A record that must keep an account with each fund.
  3. A daily balance record that must show the amount in state depositories and the amount in cash on hand.
  4. Records must be created and published via electronic devices and must be in compliance with state audit guidelines.

These records must be disposed of in accordance with the procedures established pursuant to chapter 54-46.

Source:

S.L. 1901, ch. 174, § 1; R.C. 1905, § 112; C.L. 1913, § 144; R.C. 1943, § 54-1104; S.L. 1965, ch. 345, § 1; 1969, ch. 436, § 1; 1977, ch. 487, § 2; 2003, ch. 465, § 2; 2003, ch. 467, § 3.

54-11-05. Books and blanks furnished by state to treasurer — Kept as state records.

All checks and drafts, deposit slips, bankbooks, and other books and blanks used in the transactions of the state treasurer for state business must be furnished by the state and must be kept on record by the treasurer. They must be disposed of in accordance with the procedures established pursuant to chapter 54-46.

Source:

S.L. 1901, ch. 174, § 2; R.C. 1905, § 112; C.L. 1913, § 144; R.C. 1943, § 54-1105; S.L. 1977, ch. 487, § 3.

54-11-06. Irregularities in books of treasurer — Auditor to report to governor — Temporary suspension of treasurer.

If the state auditor upon examination finds that the books of the state treasurer do not correspond with the amount of funds on hand, or do not show the actual condition of the funds, or if it appears to the state auditor that any moneys belonging to the state have been embezzled, diverted, or in any manner taken from the treasury without authority of law, or that the state treasurer has been guilty of negligence in keeping books or taking care of the public moneys, the auditor shall certify the fact to the governor. Upon the receipt of such certificate, the governor forthwith shall take possession of all books, moneys, papers, and other property belonging to the state, which have come into the possession of the state treasurer by virtue of that office, or otherwise, and shall temporarily suspend the state treasurer from that office.

Source:

S.L. 1893, ch. 96, § 8; R.C. 1895, § 109; R.C. 1899, § 109; R.C. 1905, § 113; C.L. 1913, § 145; R.C. 1943, § 54-1106; S.L. 1969, ch. 437, § 1.

54-11-07. Suspension of treasurer by governor — Appointment.

When a certificate is made to the governor by the state auditor under section 54-11-06, the governor, with the state auditor and the commissioner of financial institutions, shall examine the books, papers, and all matters connected with the office of the state treasurer so suspended. If it appears to the governor, state auditor, and commissioner of financial institutions on examination that the state treasurer has embezzled or converted to the treasurer’s own use the public moneys, or has been negligent in keeping the books, or in taking care of public moneys, the governor on the certificate of the state auditor and the commissioner of financial institutions to that effect may remove the state treasurer and appoint another person to fill the place of the suspended state treasurer. The person so appointed shall enter upon the office of state treasurer as provided by law. The governor shall report the removal of the state treasurer to the next succeeding legislative assembly. The state treasurer so appointed shall hold office until the suspended state treasurer is reinstated or a successor is elected and qualified.

Source:

S.L. 1893, ch. 96, § 9; R.C. 1895, § 110; R.C. 1899, § 110; R.C. 1905, § 114; C.L. 1913, § 146; R.C. 1943, § 54-1107; S.L. 1969, ch. 438, § 1; 1999, ch. 113, § 16; 2001, ch. 88, § 90.

54-11-08. State bonds — Registration. [Repealed]

Repealed by S.L. 2009, ch. 467, § 1.

54-11-09. Registration of bonds vests ownership. [Repealed]

Repealed by S.L. 2009, ch. 468, § 1.

54-11-10. Treasurer accountable for delinquencies.

If in any instance the state treasurer neglects to call to account any delinquent, whereby the public revenue may suffer a loss, the state treasurer must be held and deemed accountable for the sums due by such delinquent to all intents and purposes the same as if the funds actually had been paid into the state treasurer’s office.

Source:

Pol. C. 1877, ch. 8, § 12; R.C. 1895, § 113; R.C. 1899, § 113; R.C. 1905, § 117; C.L. 1913, § 150; R.C. 1943, § 54-1110.

54-11-11. Purchase of warrants or accounts by state treasurer prohibited.

The state treasurer in no case may purchase or receive any warrants redeemable at the state treasury or any audited account at a value less than is expressed therein.

Source:

Pol. C. 1877, ch. 8, § 10; R.C. 1895, § 112; R.C. 1899, § 112; R.C. 1905, § 116; C.L. 1913, § 149; R.C. 1943, § 54-1111.

54-11-12. Unlawful purchases by state treasurer — Penalty.

Every person who while treasurer of this state, or the deputy or clerk of such treasurer, directly or indirectly, buys or traffics in, or becomes a party to the purchase of, any state warrant, order, or scrip, or any bill, account, claim, or evidence of indebtedness against the state, for any sum less than the full face value thereof, is guilty of an infraction.

Source:

S.L. 1890, ch. 117, §§ 1, 2; R.C. 1895, § 7629; R.C. 1899, § 7629; R.C. 1905, § 9399; C.L. 1913, § 10186; R.C. 1943, § 54-1112; S.L. 1975, ch. 106, § 581.

54-11-13. Salary of state treasurer.

The annual salary of the state treasurer is one hundred twelve thousand two hundred forty-one dollars through June 30, 2022, and one hundred fourteen thousand four hundred eighty-six dollars thereafter.

Source:

R.C. 1895, § 117; R.C. 1899, § 117; R.C. 1905, § 121; S.L. 1909, ch. 216, § 4; C.L. 1913, § 154; I.M. Nov. 8, 1932, § 1, S.L. 1933, p. 504; 1943, ch. 202, § 2; R.C. 1943, § 54-1113; S.L. 1951, ch. 305, § 7; 1957, ch. 335, § 6; 1957 Supp., § 54-1113; S.L. 1965, ch. 344, § 9; S.L. 1973, ch. 417, § 9; 1977, ch. 480, § 10; 1983, ch. 44, § 20; 1985, ch. 560, § 9; 1989, ch. 1, § 25; 1991, ch. 28, § 34; 1991, ch. 53, § 14; 1995, ch. 27, § 2; 1997, ch. 5, § 2; 1999, ch. 27, § 2; 2001, ch. 5, § 3; 2005, ch. 5, § 4; 2005, ch. 15, § 20; 2007, ch. 32, § 4; 2009, ch. 5, § 3; 2011, ch. 31, § 3; 2013, ch. 5, § 4; 2015, ch. 39, § 4, eff July 1, 2015; 2019, ch. 30, § 4, eff July 1, 2019; 2021, ch. 5, § 3, eff July 1, 2021.

Effective Date.

The 2015 amendment of this section by section 4 of chapter 39, S.L. 2015 became effective July 1, 2015.

The 2013 amendment of this section by section 4 of chapter 5, S.L. 2013 became effective July 1, 2013.

54-11-14. Official bond of state treasurer. [Repealed]

Repealed by S.L. 1999, ch. 113, § 24.

54-11-15. Appointment of agents.

The treasurer may appoint agents for the purpose of receiving public funds as required by section 12 of article X of the Constitution of North Dakota. If appointed by the state treasurer, the Bank of North Dakota shall serve as an agent of the state treasurer for the purpose of receiving public funds, including funds that must be deposited in higher education institution special revenue funds.

Source:

S.L. 1999, ch. 37, § 30.

54-11-16. Criminal history record checks.

The state treasurer shall require any applicant, employee, or independent contractor who has access to federal tax information to submit to a statewide and nationwide criminal history record check, and subsequent recheck within ten years from the date of the previous criminal history record check. The nationwide criminal history record check must be conducted in the manner provided by section 12-60-24.

Source:

S.L. 2019, ch. 102, § 2, eff August 1, 2019.

CHAPTER 54-12 Attorney General

54-12-32 Blue alert notice system.

54-12-01. Attorney general — Duties.

The attorney general shall:

  1. Appear for and represent the state before the supreme court in all cases in which the state is interested as a party.
  2. Institute and prosecute all actions and proceedings in favor or for the use of the state which may be necessary in the execution of the duties of any state officer.
  3. Appear and defend all actions and proceedings against any state officer in the attorney general’s official capacity in any of the courts of this state or of the United States. If both parties to an action are state officers, the attorney general may determine which officer the attorney general will represent and the other officer may employ counsel to represent that other officer.
  4. Consult with and advise the several state’s attorneys in matters relating to the duties of their office.
  5. Attend the trial of any party accused of crime and assist in the prosecution when in the attorney general’s judgment the interests of the state require it.
  6. Consult with and advise the governor and all other state officers and when requested give written opinions on all legal or constitutional questions relating to the duties of such officers respectively.
  7. Prepare, when necessary, proper drafts for contracts and other writings relating to subjects in which the state is interested.
  8. Give written opinions, when requested by either branch of the legislative assembly, upon legal questions.
  9. Enforce the proper application of funds appropriated to the public institutions of the state and prosecute breaches of trust in the administration of such funds.
  10. Prosecute corporations and limited liability companies, when necessary, for failure or refusal to make the reports required by law.
  11. Keep in proper books a register of all cases prosecuted or defended by the attorney general or the attorney general’s assistants, in behalf of this state or its officers, and of all proceedings had in relation thereto, including a record of all actions wherein the state is a party, or is interested, prosecuted by the state’s attorneys of the several counties and reported to the attorney general as provided by law, and deliver the same to the attorney general’s successor in office.
  12. Keep in the attorney general’s office a book in which the attorney general shall record all the official opinions given by the attorney general during the attorney general’s term of office, such book to be delivered by the attorney general to the attorney general’s successor in office.
  13. Pay into the state treasury all moneys received by the attorney general for the use of the state.
  14. Serve as superintendent of the bureau of criminal investigation and perform all duties incident to the proper and efficient conduct of that office.
  15. Attend to and perform any other duties which from time to time may be required by law.
  16. Appoint the state fire marshal and supervise the operation of the state fire marshal department.
  17. Give written opinions, when requested by the governing body or city attorney of a city in the state of North Dakota.
  18. Repealed by S.L. 1991, ch. 637, § 9.
  19. Give written opinions to public entities as defined in subdivision a or b of subsection 13 of section 44-04-17.1, when requested by an interested person under section 44-04-21.1.

Source:

S.L. 1890, ch. 21, § 4; R.C. 1895, § 119; R.C. 1899, § 119; S.L. 1901, ch. 24, § 1; R.C. 1905, § 123; C.L. 1913, § 157; 1925 Supp., § 157; R.C. 1943, § 54-1201; S.L. 1963, ch. 123, § 5; 1967, ch. 162, § 5; 1971, ch. 494, § 1; 1983, ch. 82, § 128; 1983, ch. 556, § 4; 1985, ch. 522, § 2; 1987, ch. 582, § 29; 1991, ch. 637, § 9; 1993, ch. 54, § 106; 1997, ch. 381, § 21.

Cross-References.

Appearance for state in suits involving unsatisfied judgment fund, see N.D.C.C. § 26.1-23-06.

Attorney for public service commission, see N.D.C.C. § 49-01-09.

Pardon advisory board membership, see N.D. Const., Art. V, § 6; N.D.C.C. § 12-55.1-02.

Board of university and school lands, member, see N.D. Const., Art. IX, § 3; N.D.C.C. § 15-01-01.

Bureau of criminal investigation, see N.D.C.C. ch. 12-60.

Criminal justice training and statistics division, see N.D.C.C. ch. 12-62.

Election, qualifications and term, see N.D. Const., Art. V, §§ 2, 4 and 5.

Fire marshal department, see N.D.C.C. ch. 18-01.

Industrial commission membership, see N.D.C.C. § 54-17-02.

Judicial council membership, see N.D.C.C. § 27-15-01.

Licensing and regulation of detection of deception examiners, see N.D.C.C. ch. 43-31.

Licensing and regulation of detectives, see N.D.C.C. ch. 43-30.

Licensing and regulation of hearing aid dealers, see N.D.C.C. ch. 43-33.

Licensing games of chance, see N.D.C.C. ch. 53-06.1.

Licensing of amusement games, see N.D.C.C. ch. 53-04.

Licensing transient merchants, see N.D.C.C. ch. 51-04.

Private practice of law by attorney general, deputies or employees, see N.D.C.C. § 27-14-02.

Representation of workforce safety and insurance, see N.D.C.C. § 65-01-12.

Notes to Decisions

In General.

The attorney general is the principal law officer of the state and his authority is coextensive with public legal affairs of the whole community. McCue v. Equity Coop. Publishing Co., 39 N.D. 190, 167 N.W. 225, 1918 N.D. LEXIS 23 (N.D. 1918).

Admission of Liability.

Without special statutory authority the attorney general may not, by waiver or agreement, establish as a basis of liability against the state or one of its funds a judgment rendered in an action to which the state is not a party. Bonniwell v. Flanders, 62 N.W.2d 25, 1953 N.D. LEXIS 96 (N.D. 1953).

Consult and Advise State’s Attorneys.

Where state sought an advisory opinion on a question of the role and duty of the office of state’s attorney, which was not ripe for review and for which no meaningful relief could be granted, appeal was dismissed; the attorney general, not the supreme court, is the proper legal advisor for state’s attorneys. Bies v. Obregon, 1997 ND 18, 558 N.W.2d 855, 1997 N.D. LEXIS 15 (N.D. 1997).

Enjoining Unauthorized Liens Against State Employees’ Property.

Attorney general had authority under this section to seek an injunction on behalf of state penitentiary employees to halt inmate from filing liens not authorized by law against the property of the employees who were named as defendants in inmate’s civil rights action pending in federal court. State ex rel. Employees of State Penitentiary, Director of Insts. v. Jensen, 331 N.W.2d 42, 1983 N.D. LEXIS 246 (N.D. 1983).

Exposure of Unsatisfied Judgment Fund.

State had interest in action for declaration that insurance policy was void ab initio since, if policy was found void, the unsatisfied judgment fund might be exposed to liability; therefore state was entitled to have attorney general appear and represent it although it had not been named as a party. Farmers Ins. Exch. v. Nagle, 190 N.W.2d 758, 1971 N.D. LEXIS 116 (N.D. 1971).

Grand Jury Appearance.

The attorney general may appear before the grand jury and examine witnesses with reference to matters involving the prohibitory laws. State ex rel. Miller v. District Court, 19 N.D. 819, 124 N.W. 417, 1910 N.D. LEXIS 5 (N.D. 1910).

Habeas Corpus.

The provision in subdivision 5 of this section that the attorney general shall assist in any prosecution “when in his judgment the interests of the state require it” applies to habeas corpus proceedings challenging the validity of a conviction. Jensen v. State, 373 N.W.2d 894 (N.D. 1985), denying motion for proof of attorney’s authority for the assistant attorneys general who appeared in defendant’s case.

Interested Party.

Fact that attorney general may be concerned that a statute is not being complied with does not make him an interested party to the proceedings, and “interested” is not synonymous with “concerned”; suit for malpractice between parents of a deceased child and the child’s doctors was of a purely private nature, and gave attorney general no authority to initiate a proceeding in the supreme court asking for an order to prevent the district court from considering the parents’ complaint (on grounds the parents, on advice from two district judges, were bypassing the medical review panel procedure contained in former N.D.C.C. ch. 32-29.1). State ex rel. Olson v. Graff, 287 N.W.2d 87, 1979 N.D. LEXIS 338 (N.D. 1979).

Opinions.

The attorney general is not intended to supplant the court, and his opinions prevail as to the constitutionality of a statute affecting the ministerial duties of state officers only until such questions are passed upon by the courts. State ex rel. Johnson v. Baker, 74 N.D. 244, 21 N.W.2d 355 (1945), distinguished, Solberg v. State Treasurer, 78 N.D. 806, 53 N.W.2d 49 (1952) and State v. Amerada Petroleum Corp., 71 N.W.2d 675, 1955 N.D. LEXIS 127 (N.D. 1955).

Interpretation of language of bond by securities commissioner had no binding legal effect since he had not consulted with attorney general as required by this section. Giese v. Engelhardt, 175 N.W.2d 578, 1970 N.D. LEXIS 95 (N.D. 1970).

Post-Conviction Proceedings.

This section authorizes attorney general to represent the state in post-conviction proceedings. State v. Jensen, 333 N.W.2d 686, 1983 N.D. LEXIS 269 (N.D. 1983).

Prerogative Writs.

It is the duty of the attorney general to make motions to the supreme court for the issuance of prerogative writs, and if the relator fails to obtain such action or a refusal thereof from the attorney general, the court will refuse to exercise its original jurisdiction. State ex rel. Byerley v. State Bd. of Canvassers, 44 N.D. 126, 172 N.W. 80, 1919 N.D. LEXIS 195 (N.D. 1919).

Representing the State.

There is no duty to represent the state where it is merely a nominal party. State ex rel. Dakota Hail Ass'n v. Carey, 2 N.D. 36, 49 N.W. 164, 1891 N.D. LEXIS 22 (N.D. 1891).

The statute providing for special audit and investigation of state officers does not empower the governor and the examining commissioner to authorize any attorney, other than the attorney general, to represent the state in actions brought pursuant to its provisions. State v. Erickson, 72 N.D. 417, 7 N.W.2d 865, 1943 N.D. LEXIS 79 (N.D. 1943).

Tax Cases.

The attorney general is required to represent the state in the supreme court in tax cases. Storey v. Murphy, 9 N.D. 115, 81 N.W. 23 (N.D. 1899).

DECISIONS UNDER PRIOR LAW

Appointment of Hearing Officers.

In former subsection (18) of this section authorizing the appointment of an independent hearing officer, the absence of specific language granting the hearing officer the authority to render a final decision evidences an intent that the hearing officer’s recommendations are not binding on the Redwood Village Partnership v. North Dakota Dep't of Human Servs., 420 N.W.2d 333, 1988 N.D. LEXIS 69 (N.D. 1988).

Consult and Advise State’s Attorneys.

Where state sought an advisory opinion on a question of the role and duty of the office of state’s attorney, which was not ripe for review and for which no meaningful relief could be granted, appeal was dismissed; the attorney general, not the supreme court, is the proper legal advisor for state’s attorneys. Bies v. Obregon, 1997 ND 18, 558 N.W.2d 855, 1997 N.D. LEXIS 15 (N.D. 1997).

Collateral References.

Will contest case involving charitable trust, right of attorney general to intervene in, 74 A.L.R.2d 1066.

Duty of trustees of charitable trust to furnish information and records to attorney general relating to trust administration, 86 A.L.R.2d 1375.

Validity, under state law, of appointment of independent special prosecutor to handle political or controversial prosecutions or investigations of persons other than regular prosecutor, 84 A.L.R.3d 29.

Validity, under state law, of appointment of special prosecutor where regular prosecutor is charged with, or being investigated for, criminal or impeachable offense, 84 A.L.R.3d 115.

Prosecutor’s power to grant prosecution witness immunity from prosecution, 4 A.L.R.4th 1221.

Presence of unauthorized persons during state grand jury proceedings as affecting indictment, 23 A.L.R.4th 397.

Presence of persons not authorized by Rule 6(d) of Federal Rule of Criminal Procedure during session of grand jury as warranting dismissal of indictment, 68 A.L.R. Fed. 798.

Law Reviews.

The Attorney for the State and the Attorney for the People: The Powers and Duties of the Attorney General of North Dakota, Russell J. Myhre, 52 N.D. L. Rev. 349, 365 (1976).

54-12-01.1. Attorney general to publish eminent domain information.

The attorney general, with the cooperation of appropriate state agencies, shall publish online information describing the eminent domain laws of this state. The information must include the reasons for condemnation, the procedures followed by condemnors as defined by section 32-15-01, how citizens may influence the condemnation process, and the rights of property owners and citizens affected by condemnation. A condemnor shall notify a property owner of the available online information before making an offer to purchase and initiating a condemnation action.

Source:

S.L. 1981, ch. 353, § 4; 2017, ch. 366, § 4, eff February 23, 2017.

54-12-01.2. Regulation of gaming schools. [Repealed]

Repealed by S.L. 2011, ch. 397, § 1.

54-12-01.3. Judicial officers — Legal defense — Indemnification.

The attorney general shall appear and defend any supreme court justice, supreme court surrogate justice, district court judge, district court surrogate judge, judicial referee, or director of juvenile court of this state in any action founded upon an act or omission arising out of performance of an official duty. If the attorney general determines that the attorney general or an assistant attorney general is unable to defend the judicial officer, the attorney general shall employ a special assistant attorney general to represent the judicial officer. The state shall indemnify the supreme court justice, supreme court surrogate justice, district court judge, district court surrogate judge, judicial referee, or director of juvenile court of this state for all reasonable costs, including attorney’s fees, incurred by or awarded against the judicial officer in the action.

Source:

S.L. 1987, ch. 626, § 1; 1991, ch. 326, § 181; 2007, ch. 274, § 35.

54-12-01.4. Limitation of effect of certain opinions of attorney general.

Any opinion of the attorney general, or any other public official other than a court of competent jurisdiction, that sections 16.1-01-13, 16.1-01-13.1, and 16.1-01-14 are unconstitutional, is not binding on any other public official, and all other public officials are free to act in accordance with the wishes of the people of North Dakota as expressed in sections 16.1-01-13, 16.1-01-13.1, and 16.1-01-14.

Source:

I.M. approved November 3, 1992, S.L. 1993, ch. 652, § 4.

Notes to Decisions

Constitutionality of Term Limits.

The U.S. Supreme Court has ruled that state imposition of term limits for congressional service must come through an amendment of the U.S. Constitution. Although the Arkansas term limits measure only precluded certain candidates from having their names appear on the ballot, such a term limits measure is unconstitutional when it has the likely effect of handicapping a class of candidates and has the sole purpose of indirectly creating additional qualifications. United States Term Limits, Inc. v. Thornton, 514 U.S. 779, 115 S. Ct. 1842, 131 L. Ed. 2d 881, 1995 U.S. LEXIS 3487 (U.S. 1995).

54-12-02. Attorney general may institute action in which state is a party.

The attorney general and the attorney general’s assistants are authorized to institute and prosecute all cases in which the state is a party, whenever in their judgment it would be for the best interests of the state so to do.

Source:

S.L. 1901, ch. 178, § 1, subs. 9; R.C. 1905, § 2494, subs. 9; C.L. 1913, § 3376, subs. 9; R.C. 1943, § 54-1202.

Notes to Decisions

Exclusive Representation.

The defendant waives his right by failing to object to the appearance of an unauthorized attorney in contempt proceedings instituted by the state. State v. Harris, 14 N.D. 501, 105 N.W. 621, 1905 N.D. LEXIS 81 (N.D. 1905).

The attorney general, his assistants, and the state’s attorneys are the only public prosecutors in all cases where the state is a party to the action. State v. Stepp, 45 N.D. 516, 178 N.W. 951, 1920 N.D. LEXIS 165 (N.D. 1920).

Quiet Title Action.

The state has a right to bring an action to quiet title to any real estate in which it claims an interest, and it is the attorney general’s duty to bring such action. State v. Amerada Petroleum Corp., 71 N.W.2d 675, 1955 N.D. LEXIS 127 (N.D. 1955).

54-12-03. Attorney general may make investigation in county — How expenses paid.

The attorney general may make an investigation in any county in this state to the end that the laws of the state shall be enforced therein and all violators thereof brought to trial, when:

  1. The attorney general deems it necessary for the successful enforcement of the laws of the state in such county;
  2. Requested by a majority of the members of the board of county commissioners of the county; or
  3. Petitioned by twenty-five taxpaying citizens of the county.

The necessary expenses incurred in making the investigation or in prosecuting any resulting case, as determined by the attorney general and not otherwise specifically provided by law, must be paid by the county out of the state’s attorney’s contingent fund. All such expenses paid from the state’s attorney’s contingent fund must be paid by the county treasurer upon the warrant of the county auditor. The warrant must be executed and delivered by the auditor in an amount and to the person designated therein upon the written order of the attorney general.

Source:

S.L. 1919, ch. 68, §§ 1 to 3; 1925 Supp., §§ 162a1 to 162a3; R.C. 1943, § 54-1203.

Cross-References.

State’s attorney’s contingent fund, see N.D.C.C. §§ 11-16-09, 11-16-10.

54-12-04. Attorney general to investigate and prosecute criminal matters in counties on demand of district judge — How expenses paid.

Upon the written demand of a judge of the district court, with or without the consent and approval of the state’s attorney of the county wherein such duties are to be performed, the attorney general, either personally or through the attorney general’s assistants, shall be required to make a full and complete investigation of any criminal matter or complaint referred to in the demand. The attorney general shall take full charge of and shall conduct any criminal prosecution in any county within the district of said district judge to the same effect and with like power and authority as the duly elected state’s attorney of that county. All expenses, including mileage as now provided by law for state officers, and disbursements for subsistence while performing those duties incurred by the attorney general, must be paid and allowed by the county in which the said duties were performed in the manner in which claims against the county are allowed and paid, after an itemized statement thereof has been approved by the judge who requested that the same be performed.

Source:

S.L. 1935, ch. 125, § 1; R.C. 1943, § 54-1204.

Notes to Decisions

Judicial Review.

The standard for review of a denial of an application for an order to show cause submitted under this section is whether the denial was an abuse of discretion. State ex rel. Backes v. Motor Vehicle, 492 N.W.2d 595, 1992 N.D. LEXIS 238 (N.D. 1992).

54-12-04.1. Attorney general to make investigation on Indian reservation — Expenses.

The attorney general may make a full and complete investigation of any complaint alleging the deprivation of any constitutional, civil, or legal right of an individual residing on an Indian reservation upon the written request of the state’s attorney of the county of residence of the aggrieved individual. The attorney general may conduct and take full charge of any criminal prosecution that results from the investigation. The necessary expenses incurred in making the investigation or in prosecuting any resulting case, as determined by the attorney general, must be allowed and paid by the county in which the investigation was requested in the same manner in which claims against the county are allowed and paid.

Source:

S.L. 1987, ch. 627, § 1.

54-12-04.2. Child sexual abuse investigation and prosecution.

The child sexual abuse investigation and prosecution team consists of an assistant attorney general and an agent of the state bureau of criminal investigation. On request of any state’s attorney, the team shall assist, within the limits of legislative appropriation and available staff resources, with the investigation and prosecution of child sexual abuse cases.

Source:

S.L. 1991, ch. 580, § 1; 1993, ch. 515, § 1; 1999, ch. 452, § 1.

54-12-05. Biennial report.

  1. The attorney general shall submit a biennial report to the governor and the secretary of state in accordance with section 54-06-04. The report must provide:
    1. A summary of the types of actions prosecuted or defended by the attorney general on behalf of the state.
    2. The aggregate cost of prosecuting or defending actions on behalf of the state.
    3. The amount of fines and penalties collected.
  2. The attorney general also shall direct attention to any defect in the practical operations of the law relating to revenue and criminal offenses and shall suggest amendments and changes as in the attorney general’s judgment are necessary to subserve the public interest.

Source:

S.L. 1890, ch. 21, § 5; R.C. 1895, § 120; R.C. 1899, § 120; R.C. 1905, § 124; C.L. 1913, § 158; S.L. 1923, ch. 132, § 1; 1925 Supp., § 158; R.C. 1943, § 54-1205; S.L. 1963, ch. 346, § 58; 1973, ch. 403, § 45; 1975, ch. 466, § 49; 1995, ch. 350, § 46; 2001, ch. 480, § 1.

54-12-06. Assistant attorneys general — Attorney general may appoint.

The attorney general may appoint assistant attorneys general whose appointment must be in writing and filed in the office of the secretary of state.

Source:

S.L. 1889, ch. 17, § 1; R.C. 1895, § 122; R.C. 1899, § 122; R.C. 1905, § 126; S.L. 1909, ch. 219, § 1; C.L. 1913, § 160; S.L. 1919, ch. 66, § 1; 1919 Sp., ch. 18, § 1; 1923, ch. 131, § 1; 1925 Supp., § 160; R.C. 1943, § 54-1206; S.L. 1953, ch. 305, § 1; 1957 Supp., § 54-1206; S.L. 1975, ch. 473, § 1.

Cross-References.

Employment of assistant attorney general by workers compensation bureau, see N.D.C.C. § 65-02-06.

Oath of civil officers, see N.D. Const., Art. XI, § 4; N.D.C.C. § 44-01-05.

54-12-07. Salary of assistant attorneys general.

The salary of the assistant attorneys general must be within the amount appropriated for salaries by the legislative assembly and are payable in the same manner as other departmental payrolls.

Source:

S.L. 1909, ch. 219, § 2; C.L. 1913, § 161; S.L. 1919, ch. 66, § 2; 1925 Supp., § 161; R.C. 1943, § 54-1207; S.L. 1959, ch. 372, § 75; 1975, ch. 473, § 2; 1981, ch. 535, § 14.

54-12-08. Assistant and special assistant attorneys general — Appointment — Revocation — Compensation. [Effective through August 31, 2022]

  1. After consultation with the head of the state department or institution or with the state board, commission, committee, or agency affected, the attorney general may appoint assistant or special assistant attorneys general to represent the state board, commission, committee, or agency. A state officer, head of any state department, whether elected or appointed, or state department, board, commission, committee, or agency may not employ legal counsel, and no person may act as legal counsel in any matter, action, or proceeding in which the state or any state department, board, commission, committee, or agency is interested or is a party, except upon written appointment by the attorney general. Workforce safety and insurance, the department of transportation, the state tax commissioner, the public service commission, the insurance commissioner, the agriculture commissioner, and the securities commissioner may employ attorneys to represent them. These entities shall pay the salaries and expenses of the attorneys they employ within the limits of legislative appropriations. The attorneys that represent these entities must be special assistant attorneys general appointed by the attorney general pursuant to this section. Absent good cause, the attorney general shall appoint as special assistant attorneys general licensed attorneys selected by these entities. The attorney general may revoke the appointment only for good cause or upon the request of the entity. Good cause means an inadequate level of experience, competence, or ethical standards.
  2. The powers conferred upon special assistant attorneys general are the same as are exercised by the regular assistant attorneys general, unless the powers are limited specifically by the terms of the appointment. Except as otherwise provided by this section, an appointment is revocable at the pleasure of the attorney general. The appointment may be made with or without compensation, and when compensation is allowed by the attorney general for services performed, the compensation must be paid out of the funds appropriated therefor.
  3. The attorney general may require payment for legal services rendered by any assistant or special assistant attorney general to any state official, board, department, agency, or commission and those entities shall make the required payment to the attorney general. Moneys received by the attorney general in payment for legal services rendered must be deposited into the attorney general’s operating fund. General fund moneys may not be utilized for the payment of legal services provided by the attorneys employed by the attorney general, except for those payments required of the department of  human services, state department of health, department of environmental quality, and the state hospital.
  4. An assistant or special assistant attorney general appointed to represent the state board of higher education or an institution under the control of the state board of higher education may access and examine any record under the control of the state board of higher education. For purposes of reviewing records under the Family Educational Rights and Privacy Act [20 U.S.C. 1232 g; 34 CFR 99] or any other federal privacy law, the assistant or special assistant attorney general is considered a state educational official authorized to access student records.

Source:

S.L. 1919, ch. 67, § 1; 1923, ch. 131, § 1; 1925 Supp., § 160a1; R.C. 1943, § 54-1208; S.L. 1945, ch. 290, § 1; 1957 Supp., § 54-1208; 1987, ch. 628, § 1; 1995, ch. 243, § 2; 1995, ch. 504, § 1; 1997, ch. 533, § 1; 2003, ch. 561, § 3; 2015, ch. 3, § 20, eff July 1, 2015; 2015, ch. 37, § 10, eff July 1, 2015; 2017, ch. 199, § 58; 2021, ch. 9, § 18, eff July 1, 2021.

Effective Date.

The 2015 amendment of this section by section 20 of chapter 3, S.L. 2015 became effective July 1, 2015.

The 2015 amendment of this section by section 10 of chapter 37, S.L 2015 became effective July 1, 2015, except for subsection 4, which became effective May 24, 2015, pursuant to an emergency clause in section 16 of chapter 37, S.L. 2015.

Note.

This section is effective upon the receipt by the legislative council of the certification by the chief of the environmental health section of the state department of health attesting that all necessary federal approvals have been obtained and all necessary federal and other agreements have been amended to ensure the state will continue to meet the primacy requirements it currently satisfies after the transfer of authority, powers, and duties from the state department of health to the department of environmental quality provided under S.L. 2017, ch. 199, § 75. [Contingency met in 2019]

Section 54-12-08 was amended 2 times by the 2021 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 18 of Chapter 9, Session Laws 2021, Senate Bill 1009; and Section 485 of Chapter 352, Session Laws 2021, House Bill 1247.

Section 54-12-08 was amended 2 times by the 2015 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 10 of Chapter 37, Session Laws 2015, Senate Bill 2003; and Section 20 of Chapter 3, Session Laws 2015, House Bill 1003.

54-12-08. Assistant and special assistant attorneys general — Appointment — Revocation — Compensation. [Effective September 1, 2022]

  1. After consultation with the head of the state department or institution or with the state board, commission, committee, or agency affected, the attorney general may appoint assistant or special assistant attorneys general to represent the state board, commission, committee, or agency. A state officer, head of any state department, whether elected or appointed, or state department, board, commission, committee, or agency may not employ legal counsel, and no person may act as legal counsel in any matter, action, or proceeding in which the state or any state department, board, commission, committee, or agency is interested or is a party, except upon written appointment by the attorney general. Workforce safety and insurance, the department of transportation, the state tax commissioner, the public service commission, the insurance commissioner, the agriculture commissioner, and the securities commissioner may employ attorneys to represent them. These entities shall pay the salaries and expenses of the attorneys they employ within the limits of legislative appropriations. The attorneys that represent these entities must be special assistant attorneys general appointed by the attorney general pursuant to this section. Absent good cause, the attorney general shall appoint as special assistant attorneys general licensed attorneys selected by these entities. The attorney general may revoke the appointment only for good cause or upon the request of the entity. Good cause means an inadequate level of experience, competence, or ethical standards.
  2. The powers conferred upon special assistant attorneys general are the same as are exercised by the regular assistant attorneys general, unless the powers are limited specifically by the terms of the appointment. Except as otherwise provided by this section, an appointment is revocable at the pleasure of the attorney general. The appointment may be made with or without compensation, and when compensation is allowed by the attorney general for services performed, the compensation must be paid out of the funds appropriated therefor.
  3. The attorney general may require payment for legal services rendered by any assistant or special assistant attorney general to any state official, board, department, agency, or commission and those entities shall make the required payment to the attorney general. Moneys received by the attorney general in payment for legal services rendered must be deposited into the attorney general’s operating fund. General fund moneys may not be utilized for the payment of legal services provided by the attorneys employed by the attorney general, except for those payments required of the department of health and human services, department of environmental quality, and the state hospital.
  4. An assistant or special assistant attorney general appointed to represent the state board of higher education or an institution under the control of the state board of higher education may access and examine any record under the control of the state board of higher education. For purposes of reviewing records under the Family Educational Rights and Privacy Act [20 U.S.C. 1232g; 34 CFR 99] or any other federal privacy law, the assistant or special assistant attorney general is considered a state educational official authorized to access student records.

Source:

S.L. 1919, ch. 67, § 1; 1923, ch. 131, § 1; 1925 Supp., § 160a1; R.C. 1943, § 54-1208; S.L. 1945, ch. 290, § 1; 1957 Supp., § 54-1208; 1987, ch. 628, § 1; 1995, ch. 243, § 2; 1995, ch. 504, § 1; 1997, ch. 533, § 1; 2003, ch. 561, § 3; 2015, ch. 3, § 20, eff July 1, 2015; 2015, ch. 37, § 10, eff July 1, 2015; 2017, ch. 199, § 58; 2021, ch. 9, § 18, eff July 1, 2021; 2021, ch. 352, § 485, eff September 1, 2022.

54-12-08.1. Contingent fee arrangements.

The attorney general may not appoint or allow to be employed a special assistant attorney general in a civil case in which the amount in controversy exceeds one million dollars and the special assistant attorney general is compensated by a contingent fee arrangement, unless the contingent fee arrangement is approved by the emergency commission. A state governmental entity may not contract for legal services that are compensated by a contingent fee arrangement, unless the entity receives an appointment from the attorney general for a special assistant attorney general for each case in which there is a contingent fee arrangement. Any proceeding or information used by the emergency commission under this section is not subject to sections 44-04-18 and 44-04-19, unless made public by order of the emergency commission.

Source:

S.L. 1999, ch. 453, § 1; 2021, ch. 398, § 1, eff August 1, 2021.

54-12-09. Assistant attorney general for board of university and school lands — Appointment — Revocation — Oath.

The attorney general shall appoint an assistant attorney general to act under the direction and supervision of the attorney general as attorney for the board of university and school lands. The appointment is revocable at the pleasure of the attorney general. Such assistant attorney general upon appointment and before assuming the person’s duties shall take the oath prescribed for civil officers.

Source:

S.L. 1919, ch. 65, § 1; 1925 Supp., § 160a5; R.C. 1943, § 54-1209.

Cross-References.

Attorney general member of board, see N.D. Const., Art. IX, § 3 and N.D.C.C. § 15-01-01.

Board of university and school lands, see N.D.C.C. ch. 15-01.

Oath of civil officers, see N.D. Const., Art. XI, § 4 and N.D.C.C. § 44-01-05.

54-12-09.1. Salary of assistant attorney general for board of university and school lands. [Repealed]

Repealed by S.L. 1953, ch. 306, § 1.

54-12-10. Assistant attorney general for board of university and school lands — Execution of certificates and documents.

All certificates and documents executed, signed, or certified to by the assistant attorney general appointed to act as attorney for the board of university and school lands, must be executed, signed, or certified to in substantially the following form:

Attorney General By Assistant Attorney General

Click to view

Source:

S.L. 1919, ch. 65, § 2; 1925 Supp., § 160a6; R.C. 1943, § 54-1210.

54-12-11. Salary of attorney general.

The annual salary of the attorney general is one hundred sixty-five thousand eight hundred forty-five dollars through June 30, 2022, and one hundred sixty-nine thousand one hundred sixty-two dollars thereafter.

Source:

R.C. 1895, § 121; R.C. 1899, § 121; R.C. 1905, § 125; S.L. 1909, ch. 216, § 4; C.L. 1913, § 159; I.M. Nov. 8, 1932, § 1, S.L. 1933, p. 504; 1943, ch. 202, § 2; R.C. 1943, § 54-1211; S.L. 1947, ch. 322, § 1; 1951, ch. 305, § 8; 1957, ch. 335, § 7; 1957 Supp., § 54-1211; S.L. 1965, ch. 344, § 10; 1973, ch. 417, § 10; 1977, ch. 480, § 11; 1983, ch. 44, § 21; 1985, ch. 560, § 10; 1989, ch. 1, § 26; 1991, ch. 28, § 35; 1991, ch. 53, § 15; 1995, ch. 25, § 7; 1997, ch. 3, § 7; 1999, ch. 25, § 10; 2001, ch. 3, § 18; 2005, ch. 3, § 16; 2005, ch. 15, § 21; 2007, ch. 30, § 17; 2009, ch. 3, § 9; 2011, ch. 29, § 7; 2013, ch. 3, § 4; 2015, ch. 37, § 11, eff July 1, 2015; 2019, ch. 28, § 6, eff July 1, 2019; 2021, ch. 3, § 14, eff July 1, 2021.

Effective Date.

The 2015 amendment of this section by section 11 of chapter 37, S.L. 2015 became effective July 1, 2015.

The 2013 amendment of this section by section 4 of chapter 3, S.L. 2013 became effective July 1, 2013.

54-12-12. Licensing department — Inspectors — Powers and duties. [Repealed]

Repealed by S.L. 1967, ch. 116, § 2.

54-12-13. Special assistant attorneys general report of salaries and expenses.

All departments that pay salaries or expenses of special assistant attorneys general shall report all such expenditures monthly to the attorney general upon such forms as must be prescribed by the attorney general. And all such salaries and expenses must be approved by the attorney general.

Source:

S.L. 1965, ch. 346, § 1.

54-12-14. Assets forfeiture fund — Created — Purpose — Continuing appropriation.

  1. The attorney general assets forfeiture fund consists of funds appropriated by the legislative assembly and additional funds obtained from moneys, assets, and proceeds seized and forfeited pursuant to section 19-03.1-36, amounts received through court proceedings as restitution, amounts remaining from the forfeiture of property after the payment of expenses for forfeiture and sale authorized by law, and amounts received from a multijurisdictional drug task force as defined in section 54-12-26. The amount of deposits into the fund which do not come from legislative appropriation or from a multijurisdictional drug task force and are not payable to another governmental entity may not exceed two hundred thousand dollars within a biennium and any moneys in excess of that amount must be deposited in the general fund. The funds are appropriated, as a standing and continuing appropriation, to the attorney general for the following purposes:
    1. For obtaining evidence for enforcement of any state criminal law or law relating to the control of drug abuse.
    2. For repayment of rewards to qualified local programs approved under section 12.1-32-02.2, if the information that was reported to the qualified local program substantially contributed to forfeiture of the asset, and for paying, at the discretion of the attorney general, rewards for other information or assistance leading to a forfeiture under section 19-03.1-36.
    3. For paying, at the discretion of the attorney general, any expenses necessary to seize, detain, inventory, safeguard, maintain, advertise, or sell property seized, detained, or forfeited pursuant to section 19-03.1-36, or of any other necessary expenses incident to the seizure, detention, or forfeiture of such property.
    4. For equipping, for law enforcement functions, forfeited vessels, vehicles, and aircraft retained as provided by law for official use by the state board of pharmacy or a law enforcement agency.
    5. For paying, at the discretion of the attorney general, overtime compensation to agents of the bureau of criminal investigation incurred as a result of investigations of violations of any state criminal law or law relating to the control of drug abuse.
    6. For paying matching funds required to be paid as a condition for receipt of funds from a federal government program awarding monetary grants or assistance for the investigation, apprehension, or prosecution of persons violating the provisions of chapter 19-03.1.
  2. The attorney general shall, with the concurrence of the director of the office of management and budget, establish the necessary accounting procedures for the use of the fund, and shall personally approve, in writing, all requests from the director of the bureau of criminal investigation or the director of the drug enforcement unit for the use of the fund.
  3. Notwithstanding subsection 1, the amount of deposits into the fund related to human trafficking are appropriated, as a standing and continuing appropriation, to the attorney general for awarding grants to organizations providing prevention and treatment services for human trafficking victims.

Source:

S.L. 1975, ch. 474, § 1; 1979, ch. 540, § 4; 1981, ch. 523, § 1; 1987, ch. 266, § 2; 1989, ch. 640, § 1; 1991, ch. 133, § 2; 1991, ch. 581, § 1; 1991, ch. 600, § 9; 1995, ch. 217, § 5; 1999, ch. 215, § 2; 2007, ch. 459, § 3; 2009, ch. 125, § 3; 2015, ch. 375, § 3, eff April 23, 2015.

Effective Date.

The 2015 amendment of this section by section 3 of chapter 375, S.L. 2015 became effective April 23, 2015, pursuant to an emergency clause in section 4 of chapter 375, S.L. 2015.

54-12-14.1. Loans for law enforcement activities.

The attorney general may obtain unsecured loans from any financial institution in this state for the purpose of conducting the activities listed in subdivision a of subsection 1 of section 54-12-14. Any funds obtained under this section must be repaid at the end of each biennium and are not subject to appropriation limitations.

Source:

S.L. 1993, ch. 1, § 33.

54-12-15. Drug enforcement unit — Personnel — Duties. [Repealed]

Repealed by S.L. 2009, ch. 125, § 4.

54-12-16. Powers of drug enforcement unit personnel. [Repealed]

Repealed by S.L. 2009, ch. 125, § 4.

54-12-17. Consumer protection and antitrust division.

A consumer protection and antitrust division is created under the attorney general. This division consists of a director and such other personnel as may be appointed by the attorney general. The division shall act to enforce the consumer fraud laws and act with regard to the use or employment by any person of any deceptive act or practice, fraud, false pretense, false promise, or misrepresentation with the intent that others rely thereon in connection with the sale or advertisement of any merchandise, whether or not any person has in fact been misled, deceived, or damaged thereby, and shall make full investigation of such activities and maintain adequate facilities for filing reports, examining persons and merchandise in regard thereto, and storing impounded books, records, accounts, papers, and samples of merchandise relating to same. The division shall cooperate with other governmental agencies, national, state, or local, and with all peace officers of the state in regard thereto. The division also shall investigate antitrust violations and enforce antitrust laws.

Source:

S.L. 1983, ch. 556, § 5; 1993, ch. 1, § 31.

54-12-18. Special fund established — Continuing appropriation.

A special fund is established in the state treasury and designated as the attorney general refund fund. The attorney general shall deposit all moneys recovered by the consumer protection division for refunds to consumers in cases where persons or parties are found to have violated the consumer fraud laws, all costs, expenses, attorney’s fees, and civil penalties collected by the division regarding any consumer protection or antitrust matter, all cash deposit bonds paid by applicants for a transient merchant’s license who do not provide a surety bond, and all funds and fees collected by the gaming section for licensing tribal gaming and for the investigation of gaming employees, applicants, organizations, manufacturers, distributors, or tribes involved in state or tribal gaming. The moneys in the fund are appropriated, as necessary, for the following purposes:

  1. To provide refunds of moneys recovered by the consumer protection and antitrust division on behalf of specifically named consumers;
  2. To pay valid claims against cash deposit bonds posted by transient merchant licensees;
  3. To refund, upon expiration of the two-year period after the expiration of the transient merchant’s license, the balance of any cash deposit bond remaining after the payment of valid claims;
  4. To pay costs, expenses, and attorney’s fees and salaries incurred in the operation of the consumer protection division; and
  5. To pay the actual costs of background investigations, licensing, and enforcement of gaming in the state or pursuant to Indian gaming compacts.

At the end of each biennium any moneys in the fund in excess of the amounts required for subsections 1, 2, 3, and 5 must be deposited in the general fund. The attorney general, with the concurrence of the director of the office of management and budget, shall establish the necessary accounting procedures for use of the attorney general refund fund, particularly with respect to expenditures under subsection 4.

Source:

S.L. 1989, ch. 641, § 1; 1991, ch. 551, § 4; 1993, ch. 1, § 32; 1999, ch. 454, § 2; 2001, ch. 3, § 19.

54-12-19. Block house defined. [Repealed]

Repealed by S.L. 2007, ch. 75, § 4.

54-12-20. Block house program. [Repealed]

Repealed by S.L. 2007, ch. 75, § 4.

54-12-21. Recovery of funds — Limitations.

All funds recovered by the attorney general as a result of negotiated settlements or court proceedings must be deposited in a special fund in the state treasury and may be appropriated only by the legislative assembly, except when:

  1. A specific fund or special account is otherwise designated by law; or
  2. The options open to the attorney general leave no choice as to the disposition of the proceeds if the state is to recover funds in a multistate settlement.

Source:

S.L. 1999, ch. 454, § 1.

54-12-22. Accessibility of sexual offender and crimes against children registration information.

The attorney general shall provide to a law enforcement dispatch center access to registration information on individuals required to register under section 12.1-32-15 through any feasible electronic means that includes direct access to a computerized registration information database. The attorney general shall provide the information in a form that is referenced by driver’s license number or number plate characters. The department of transportation shall provide the necessary information to the attorney general in any feasible form requested by the attorney general. The attorney general may require the cooperation of the state radio broadcasting system to provide the access required by this section.

Source:

S.L. 1999, ch. 455, § 1.

Cross-References.

Commitment of sexually dangerous individuals, see N.D.C.C. ch. 25-03.3.

54-12-23. Special operations team reimbursement fund — Continuing appropriation.

The attorney general may establish a special operations team reimbursement fund of up to two hundred fifty thousand dollars consisting of federal funds and moneys obtained from cities and counties. The funds are appropriated as a standing and continuing appropriation to the attorney general for reimbursement to city and county governments that provide special operations team services to rural areas. The attorney general shall develop guidelines for the reimbursement of expenses to city and county governments providing special operations team services.

Source:

S.L. 2003, ch. 468, § 1.

54-12-24. State crime laboratory division.

  1. A state crime laboratory is created as a division of the office of the attorney general. This division consists of a director, the state toxicologist, and such other personnel as may be appointed by the attorney general. The state crime laboratory may establish and charge fees for services rendered. The state crime laboratory must be administratively separated from the bureau of criminal investigation. The director serves at the pleasure of the attorney general and is entitled to receive a salary set by the attorney general within the limits of legislative appropriation.
  2. The state crime laboratory shall employ the services of a qualified toxicologist who must be the state toxicologist. The attorney general shall appoint the state toxicologist. The attorney general may appoint such qualified deputy state toxicologists as may be necessary to exercise the authority and responsibility prescribed by law for the state toxicologist. The results of toxicological or chemical testing or analysis, other than provided for in section 39-20-13, made by the state toxicologist at the request of law enforcement agencies for criminal investigation may not be disclosed directly or indirectly by the state toxicologist or any agent or employee of the attorney general to anyone other than the person or agency requesting the test or analysis or to any other person upon whom the toxicological or chemical test was performed or the person’s authorized representative, except the state toxicologist may permit the inspection of the reports of any such test or analysis results by any other person having a proper interest therein as determined by the director of the state crime laboratory.
  3. Upon the request of the state forensic examiner, any state’s attorney, sheriff, chief of police, coroner, or other local, state, or federal law enforcement official, the attorney general may make available to the requesting official the state crime laboratory’s facilities and personnel to assist in the investigation or detection of crimes and the apprehension or prosecution of criminals.

Source:

S.L. 2003, ch. 469, § 12.

Note.

Section 14 of chapter 469, S.L. 2003, effective July 1, 2003, provides:

ADMINISTRATIVE RULES RELATING TO THE STATE CRIME LABORATORY. The legislative council shall transfer administrative rules that the attorney general designates as relating to the state crime laboratory from the title of the North Dakota Administrative Code relating to the state department of health to the title of the North Dakota Administrative Code relating to the attorney general. The legislative council, after consulting the attorney general, may change references in any administrative rules to conform to this Act. These rules continue in effectiveness without promulgation under chapter 28-32 of the North Dakota Century Code. Any certifications, designations, or approvals made by the state toxicologist, including those made on or before the effective date of this Act, continue to be valid after the effective date.”

54-12-24.1. Statewide sexual assault evidence collection kit tracking system — Exception.

  1. The state crime laboratory shall develop and implement a statewide sexual assault evidence collection kit tracking system. The director of the state crime laboratory may contract with public or private entities, including private software and technology providers for the creation, operation, and maintenance of the system.
  2. All medical providers, law enforcement agencies, forensic laboratories, or other persons or entities that collect evidence for, or receive, store, analyze, maintain, or preserve sexual assault kits, shall participate in the statewide sexual assault evidence collection kit tracking system for the purpose of tracking the location and status of all sexual assault kits in their custody. Participation must begin according to the implementation schedule established by the state crime laboratory.
  3. The statewide sexual assault evidence collection kit tracking system must:
    1. Track the location and status of each sexual assault kit throughout the criminal justice process, including the initial collection during examinations performed at medical facilities, receipt and storage at law enforcement agencies, receipt and analysis at forensic laboratories, storage, and any destruction of the kit after the applicable evidence is analyzed;
    2. Allow participating entities that have custody of sexual assault kits to update and track the status and location of the kits;
    3. Allow victims of sexual assault to track or receive updates anonymously regarding the status of their sexual assault kits; and
    4. Use electronic or other technologies that allow for continuous access.
  4. The state crime laboratory may phase in the requirement of initial participation in the statewide sexual assault evidence collection kit tracking system according to region, volume of sexual assault forensic evidence kits, or other appropriate classifications. All law enforcement agencies, medical providers, forensic laboratories, or other persons that collect evidence for, or receive, store, analyze, maintain, or preserve sexual assault forensic evidence kits are required to participate fully in the tracking system within one year of the tracking system’s initial date of operation.
  5. Annually, the state crime laboratory shall post a report on the statewide sexual assault evidence collection kit tracking system on the attorney general’s website. The report must include the:
    1. Total number of sexual assault kits in the system statewide and by jurisdiction;
    2. Total and semiannual number of sexual assault kits where forensic analysis has been completed both statewide and by jurisdiction;
    3. Number of sexual assault kits added to the system in the reporting period both statewide and by jurisdiction;
    4. Total and semiannual number of sexual assault kits where forensic analysis has been requested but not completed both statewide and by jurisdiction; and
    5. Total and semiannual number of sexual assault kits destroyed or removed from the system both statewide and by jurisdiction.
  6. Records and information within the tracking system described in this section are exempt from disclosure under section 44-04-18.

Source:

S.L. 2021, ch. 399, § 2, eff April 16, 2021.

54-12-25. Attorney general may provide counsel to boards of health.

The attorney general, upon the request of a board of health established under chapter 23-35, may provide legal counsel or a written legal opinion to the board of health. The attorney general may enter an agreement with a board of health for reimbursement of expenses incurred by the attorney general in providing legal counsel to the board of health.

Source:

S.L. 2005, ch. 484, § 1.

54-12-26. Attorney general multijurisdictional drug task force grant fund — Continuing appropriation.

  1. The attorney general may establish a multijurisdictional drug task force grant fund. The fund consists of funds appropriated by the legislative assembly. The funds are appropriated as a standing and continuing appropriation to the attorney general for the purpose of defraying the expenses and operating costs incurred by a multijurisdictional drug task force. The attorney general shall develop guidelines for the qualifications for receipt of grant funds, the disbursement of grant funds, and the necessary accounting procedures for the use of grant funds. In this section, “multijurisdictional drug task force” means a law enforcement task force:
    1. Organized and created in this state by a written mutual aid or joint powers agreement;
    2. Comprised of persons who are employed by, or acting under the authority of, different governmental entities, including federal, state, county, or municipal governments, or any combination of these agencies; and
    3. Operated and established to enhance and facilitate interagency coordination, acquisition of intelligence information, and investigations of controlled substance and other drug-related crimes.
  2. If the attorney general receives federal funds in excess of the year 2006 level of Byrne grant funding that may be used to defray the expenses and operating costs incurred by a multijurisdictional drug task force during the 2007-09 biennium, the attorney general may seek emergency commission approval to receive and spend the additional federal funds but may not spend moneys from the funds appropriated by the legislative assembly to the extent of the additional federal funds received for this purpose for the biennium beginning July 1, 2007, and ending June 30, 2009.

Source:

S.L. 2007, ch. 459, § 2.

54-12-27. Twenty-four seven sobriety program.

The attorney general may establish a statewide twenty-four seven sobriety program. The sobriety program involves coordination among state, county, and municipal agencies to implement procedures as alternatives to incarceration for offenders charged with, or convicted of, driving under the influence of alcohol or controlled substances, domestic violence, abuse or neglect of a child, or for other offenses in which alcohol or controlled substances are involved.

Source:

S.L. 2009, ch. 469, § 5.

54-12-28. Twenty-four seven sobriety program guidelines, program fees, and records.

  1. The attorney general, in cooperation with law enforcement, the judiciary, the department of corrections and rehabilitation, and the traffic safety division of the department of transportation, may develop guidelines, policies, and procedures to administer the twenty-four seven sobriety program and to test offenders to enforce compliance with the sobriety program, including sobriety testing twice per day seven days per week, electronic monitoring, including home surveillance and remote electronic alcohol monitoring, urine testing and drug patch testing, and to establish program fees, all of which are not subject to chapter 28-32.
  2. To assist in monitoring the status of the twenty-four seven sobriety program, the attorney general may gather program records and statistics. Agencies or companies participating in the twenty-four seven program shall provide record and statistic information requested by the attorney general within thirty days of the request.

Source:

S.L. 2009, ch. 469, § 5; 2017, ch. 366, § 5, eff February 23, 2017.

54-12-28.1. Law enforcement acceptance of department of transportation action.

A law enforcement agency shall accept, the same as if ordered by the court, an individual as part of the twenty-four seven program if the individual provides documentation that the individual will be issued a temporary restricted license by the department of transportation which is conditioned on participation in the twenty-four seven program.

History. S.L. 2015, ch. 268, § 13, eff April 15, 2015.

Effective Date.

This section became effective April 15, 2015, pursuant to an emergency clause in section 15 of chapter 268, S.L. 2015.

54-12-29. Twenty-four seven sobriety program fund — Continuing appropriation.

There is created the twenty-four seven sobriety program fund to be administered by the attorney general. The fund includes appropriated funds; moneys received from grants from the United States; agencies of this state; private grants, gifts, or donations; and program fees. The funds are appropriated as a continuing appropriation to the attorney general for expenses necessary for the administration and operation of the sobriety program, including staff support, training and travel costs, computer software and hardware, testing equipment, and supplies.

Source:

S.L. 2009, ch. 469, § 5.

54-12-30. Twenty-four seven sobriety program fees.

A criminal justice agency may collect program fees from offenders participating in the twenty-four seven sobriety program, including fees for twice per day breath alcohol testing, urine testing, drug patch testing, installation and deactivation fees for remote electronic alcohol monitoring devices, and remote electronic alcohol monitoring daily fees. The criminal justice agency shall pay all program fees into the general fund of the governing body. The fees may only be applied to twenty-four seven sobriety program support services, equipment maintenance and replacement, and compliance with the program. The governing body shall pay any daily fees collected for remote electronic alcohol monitoring to the twenty-four seven sobriety program fund.

Source:

S.L. 2009, ch. 469, § 5.

54-12-31. Bond conditions.

A district or municipal court of this state may order an offender charged with a violation of section 39-08-01 or equivalent ordinance, domestic violence, abuse or neglect of a child, or other offense in which alcohol or controlled substances are involved to participate in the twenty-four seven sobriety program as a condition of bond.

Source:

S.L. 2009, ch. 469, § 5.

54-12-32 Blue alert notice system.

  1. Upon the request of a law enforcement agency that is investigating an offense against a law enforcement officer, the bureau of criminal investigation shall activate a blue alert public notice to aid in the apprehension of an individual who is a suspect in an offense if:
    1. An individual has threatened a law enforcement officer with a deadly weapon, has used a deadly weapon against a law enforcement officer, has caused a law enforcement officer to suffer serious bodily injury or death, or the officer has been abducted or is missing while on duty;
    2. The individual has fled the scene of the offense and a description of the individual or the individual’s vehicle is available for broadcast;
    3. The law enforcement agency investigating the offense has determined the individual poses a threat to the public or other law enforcement personnel; and
    4. Dissemination of available information to the public may help avert further harm or assist in the apprehension of the suspect.
  2. The bureau of criminal investigation, in cooperation with the highway patrol and the division of state radio of the department of emergency services, shall prepare an operational plan to prepare for and respond to requests for activation of a blue alert notice.
  3. As used in this section, the term “blue alert notice” means a quick response and notice that is issued after an individual has threatened a law enforcement officer with a deadly weapon, used a deadly weapon against a law enforcement officer, caused a law enforcement officer to suffer serious bodily injury or death, or the officer has been abducted or is missing while on duty, and the individual has left the scene of the offense.

History. S.L. 2015, ch. 376, § 1, eff March 25, 2015.

Effective Date.

This section became effective March 25, 2015, pursuant to an emergency clause in section 2 of chapter 376, S.L. 2015.

54-12-33. Human trafficking commission.

  1. The attorney general may establish a human trafficking commission, comprised of designees from state, local, and tribal agencies which have contact with victims or perpetrators, nongovernmental organizations that represent or work with victims, and other organizations and individuals, including victims, whose expertise would benefit the commission. The attorney general may establish the commission by appointing an existing statewide coalition.
  2. The commission shall:
    1. Collect and evaluate data on human trafficking in this state and submit an annual report to the attorney general, governor, and legislative assembly;
    2. Promote awareness and provide information to education personnel and the general public about human trafficking, victim remedies and services, and trafficking prevention;
    3. Promote training on human trafficking prevention and victim services for state and local employees who may have recurring contact with victims or perpetrators;
    4. Promote training on human trafficking investigation and prosecution and on missing and murdered indigenous people with the North Dakota state’s attorney’s association, the North Dakota peace officers standards and training board, and state and local law enforcement agencies;
    5. Present annually regarding human trafficking awareness and prevention at professional development conferences directed toward teachers, administrators, and support staff which are hosted by educational organizations in this state or by the department of public instruction; and
    6. Conduct other appropriate activities.

History. S.L. 2015, ch. 377, § 1, eff March 25, 2015; 2017, ch. 367, § 1, eff August 1, 2017; 2019, ch. 433, § 1, eff August 1, 2019; 2019, ch. 434, § 1, eff August 1, 2019.

Note.

Section 54-12-33 was amended 2 times by the 2019 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 1 of Chapter 433, Session Laws 2019, House Bill 1541; and Section 1 of Chapter 434, Session Laws 2019, House Bill 1311.

Effective Date.

This section became effective August 1, 2015.

54-12-33.1. Human trafficking prevention training — Exemptions — Immunity — Continuing appropriation.

  1. As used in this section:
    1. “Human trafficking” means human trafficking as defined in chapter 12.1-41.
    2. “Human trafficking commission” means the commission established under section 54-12-33.
    3. “Lodging establishment” means any hotel, motel, resort, building, or structure that is used to provide sleeping accommodations to transient guests.
    4. “Proprietor” means the person in charge of a lodging establishment and includes an owner, lessee, and manager.
  2. Within ninety days of the effective date of this section, the human trafficking commission shall establish an educational training program with a focus on the accurate and prompt identification and reporting of, or response to, suspected human trafficking. To the extent possible, the human trafficking commission shall allow the use of existing training modules and materials. The training must include:
    1. Human trafficking awareness;
    2. How to recognize potential victims of human trafficking;
    3. How to identify activities commonly associated with human trafficking; and
    4. Effective responses to human trafficking situations, including how to report suspected human trafficking to law enforcement.
  3. A proprietor may:
    1. Provide each onsite employee with the training described in subsection 2.
    2. In an employee roster or in each employee’s personnel file, annually certify each employee has received the training approved by the human trafficking commission.
    3. Conduct an ongoing awareness campaign for employees which addresses the information described in subsection 2.
  4. A proprietor may post and maintain a poster approved and provided by the human trafficking commission which contains the information described in subsection 2. The poster must include the contact information for an organization that provides assistance and support services to human trafficking victims. The poster may be visibly displayed at the lodging establishment’s check-in area, lobby, or transient guest services.
  5. A proprietor or employee of a lodging establishment who acts in good faith is immune from liability in any civil action for reporting suspected human trafficking activities.
  6. The human trafficking commission may seek, apply for, accept, and receive any donation, gift, grant, or bequest offered or tendered from public or private sources for the purpose of furthering the objectives of the human trafficking prevention training and incentivizing proprietors to participate in the human trafficking prevention training. All moneys received or accepted under this subsection are appropriated on a continuing basis to the human trafficking commission.

Source:

S.L. 2019, ch. 435, § 1, eff July 1, 2019.

54-12-34. Criminal justice data information sharing system.

  1. The attorney general shall maintain a criminal justice data information sharing system within the bureau of criminal investigation for the exchange of criminal justice data information by judicial, law enforcement, and emergency services agencies, and the department of transportation. Only an authorized individual employed by a criminal justice agency as defined in section 12-60-16.1, the department of transportation, a state court, or the department of emergency services or any other individual approved by the attorney general or the attorney general’s designee may access the system. For access to the criminal justice data information sharing system, an individual shall undergo a criminal history background check, including a fingerprint check, and meet eligibility access criteria in accordance with the rules adopted under this section.
  2. The criminal justice data information sharing system may be accessed only in accordance with rules adopted under this section. Any law enforcement record in the possession of the attorney general through the criminal justice data information sharing system is an exempt record. Criminal justice data information about an offense committed by a child if the offense has not been transferred under 27-20.4-21 to another court having jurisdiction of the offense and information about a child victim or witness is confidential.
  3. The attorney general shall provide staff to maintain the criminal justice data information system and provide administrative support for the advisory board.
  4. A criminal justice information advisory board must be appointed, consisting of:
    1. The chief justice of the supreme court or the chief justice’s designee.
    2. The director of the department of emergency services or the director’s designee.
    3. The director of the department of corrections and rehabilitation or the director’s designee.
    4. The superintendent of the state highway patrol or the superintendent’s designee.
    5. The chief of the bureau of criminal investigation, who is the chairman of the advisory board.
    6. The chief information officer of the state or the chief information officer’s designee.
    7. The director of the department of transportation or the director’s designee.
    8. A representative of a city police department, appointed by the attorney general from a list of two or more nominees from the North Dakota chiefs of police association.
    9. A representative of a county sheriff’s office, appointed by the attorney general from a list of two or more nominees from the North Dakota sheriffs and deputies association.
    10. A state’s attorney, appointed by the attorney general from a list of two or more nominees from the North Dakota state’s attorney’s association.
    11. A city government representative, appointed by the attorney general from a list of two or more nominees from the league of cities.
    12. A county government representative, appointed by the attorney general from a list of two or more nominees from the association of counties.
  5. Advisory board members who are not permanent full-time state employees are entitled to compensation of seventy-five dollars per day and mileage and expenses as provided by law for state employees. With the exception of the chief of the bureau of criminal investigation, advisory board members appointed under this section serve staggered three-year terms.
  6. The attorney general, after consultation with the advisory board, shall adopt rules to establish eligibility for access to the criminal justice data information sharing system; to implement the collection, storage, and sharing of criminal justice information and the systems necessary to perform those functions; and to address the operation of the advisory board.
  7. The attorney general shall implement a missing person repository for authorized users to enter missing person information in accordance with rules established by the bureau of criminal investigation. Missing person information, including demographic data related to indigenous people, which is entered by an authorized user or made available to an authorized user by a federally recognized tribe in this state must be included in the repository. Records under this subsection are exempt records that may be disclosed only in accordance with bureau of criminal investigation rules.

History. S.L. 2015, ch. 37, § 9, eff July 1, 2015; 2019, ch. 436, § 1, eff August 1, 2019; 2021, ch. 175, § 8, eff August 1, 2021; 2021, ch. 245, § 42, eff July 1, 2021.

Effective Date.

This section became effective July 1, 2015.

Note.

Section 54-12-34 was amended 2 times by the 2021 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 8 of Chapter 175, Session Laws 2021, Senate Bill 2283; and Section 42 of Chapter 245, Session Laws 2021, House Bill 1035.

54-12-35. Law enforcement officer tuition and fees waiver.

  1. To the extent the annual cap under this section has not been met, an individual who is employed as a full-time law enforcement officer in this state, who has a minimum of two years of employment, and who is licensed under chapter 12-63, is entitled to a waiver of twenty-five percent of resident tuition and fees of any institution of higher education under the control of the state board of higher education if the law enforcement officer:
    1. Maintains satisfactory performance with the officer’s law enforcement agency;
    2. Obtains authorization to participate in the waiver program and a certificate of verification from the law enforcement officer’s superior officer which attests to the officer’s satisfactory performance;
    3. Meets all admission requirements of the institution; and
    4. Pursues studies leading to a degree from an associate degree program or a baccalaureate degree program.
  2. The law enforcement officer may receive the waiver for up to five years from the date the law enforcement officer first receives a waiver under this section.
  3. The institution of higher education shall waive twenty-five percent of the officer’s tuition and fees after subtracting awarded federal financial aid grants and state scholarships and grants for an eligible law enforcement officer during the time the officer is enrolled. To remain eligible for the waiver, the officer shall comply with all requirements of the institution for continued attendance and award of an associate degree or a baccalaureate degree.
  4. The law enforcement officer shall include the certificate of verification when applying for enrollment to the institution of higher education.
  5. The total amount of waivers granted each academic year by institutions under the control of the state board of higher education may not exceed five hundred thousand dollars.
  6. The attorney general shall adopt the rules necessary to implement this section.

Source:

S.L. 2017, ch. 28, § 11, eff July 1, 2017.

CHAPTER 54-13 Board of Auditors [Repealed]

[Repealed by S.L. 1959, ch. 373, § 13]

CHAPTER 54-14 Claims Against State — Office of the Budget

54-14-01. State auditing board — Members — Secretary — Duties — Quorum. [Repealed]

Repealed by S.L. 1973, ch. 110, § 13.

54-14-01.1. Office of the budget to assume functions of auditing board — Substitution of phrases — Legislative statement. [Repealed]

Repealed by S.L. 1997, ch. 445, § 4.

54-14-02. Meetings of board. [Repealed]

Repealed by S.L. 1973, ch. 110, § 13.

54-14-03. Powers and duties of the office of the budget. [Repealed]

Repealed by S.L. 1979, ch. 541, § 2.

54-14-03.1. Reports to legislative management budget section.

The office of the budget, in the course of the preaudit of claims against the state, or in otherwise carrying out its duties, shall note irregularities in the fiscal practices of the state and its departments, agencies, and institutions and areas where more uniform and improved fiscal procedures are desirable, and it shall further note expenditures and governmental activities that it may believe to be contrary to law or to the intent of the legislative assembly. “Irregularities” as used in this section includes the use of state funds to provide bonuses, cash incentive awards, and temporary salary adjustments for state employees. The office of the budget shall submit a detailed written report accompanied by adequate documentation to the budget section of the legislative management, or any division of the budget section designated for that purpose, setting out the irregularity, expenditure, or activity. The report must be presented at the next scheduled meeting of the budget section following the discovery of the irregularity, expenditure, or activity.

Source:

S.L. 1963, ch. 352, § 7; 1973, ch. 110, § 5; 1985, ch. 3, § 5; 1987, ch. 73, § 32; 2009, ch. 482, § 98.

54-14-03.2. Claims against the state — Acts of residents of state institutions. [Repealed]

Repealed by S.L. 1995, ch. 329, § 14.

Note.

Chapter 648, S.L. 1995 (Senate Concurrent Resolution No. 4014) was not approved by the voters, (by Measure No. 2) November 5, 1996. The repeal of this section became effective upon certification by the secretary of state that the measure was not approved, on November 20, 1996.

54-14-04. Claim against state filed with office of the budget.

No bill, claim, account, or demand against the state may be audited, allowed, or paid until a full itemized statement in writing has been filed with the office of the budget, unless such bill, claim, account, or demand is:

  1. For a salary fixed by law;
  2. Against a state-owned utility, enterprise, or business project; or
  3. Specifically exempt by law.

Source:

S.L. 1901, ch. 49, § 1; R.C. 1905, § 394; S.L. 1907, ch. 261, § 1; C.L. 1913, § 657; S.L. 1915, ch. 244, § 1; 1925 Supp., § 657; R.C. 1943, § 54-1404; S.L. 1949, ch. 316, § 1; 1955, ch. 310, § 1; 1957 Supp., § 54-1404; S.L. 1965, ch. 304, § 7; 1973, ch. 110, § 6.

Cross-References.

Section inapplicable to claims against state affected by section 54-18-12, see N.D.C.C. § 54-18-12.

Notes to Decisions

Expenses of Judges.

An itemized statement of a claim made pursuant to the statute giving judges of the supreme court five hundred dollars per year as expenses was not a prerequisite to the issuance of warrants for such claim. State ex rel. Langer v. Kositzky, 38 N.D. 616, 166 N.W. 534, 1918 N.D. LEXIS 4 (N.D. 1918).

54-14-04.1. Departmental payrolls.

The office of the budget is authorized to issue regulations governing methods whereby the regular payrolls for each department, agency, or institution of this state may be prepared and certified by the agency concerned without individually executed or signed certificates of claim by the employees as provided in section 54-14-04. In all such cases, the warrants issued to cover such payroll items must have the required certificate printed on the back of the warrant in such manner that the endorsement of the warrant will constitute an execution of the certificate provided in section 54-14-04.

Source:

S.L. 1961, ch. 330, § 1; 1973, ch. 110, § 7.

54-14-04.2. Use of electronic funds transfer systems. [Repealed]

Repealed by S.L. 1991, ch. 582, § 1.

54-14-04.3. Severance pay — Definition — Settlements.

  1. For the purposes of this section, “severance pay” means compensation received, upon termination of employment, for reasons primarily beyond the control of the state employee or officer. Severance pay does not include payments made to a terminated employee or officer for accrued annual or sick leave, or compensatory leave, when such payments are authorized.
  2. Except as provided in subsection 3, no state employee or officer is entitled to severance pay upon termination of employment if the employee or officer quit employment voluntarily or resigned of the person’s own accord, or was dismissed for gross neglect of duty, gross misconduct while on duty, or for other good cause. A state employee or officer may be entitled to severance pay if the employee or officer was dismissed from employment because of reductions in staff or temporary or permanent layoffs, or for other reasons primarily beyond the control of the employee or officer. This section does not affect the rights of employees or officers in salary or wage disputes which are the subject of out-of-court settlements.
  3. A state agency may, within the limits of its legislative appropriations, provide financial incentives to encourage an employee to retire or resign if the resulting departure will increase agency efficiencies or reduce expenses.

Source:

S.L. 1979, ch. 543, § 1; 1983, ch. 194, § 2; 1985, ch. 205, § 2; 1995, ch. 506, § 1.

54-14-05. Vouchers have penalty printed on them. [Repealed]

Repealed by S.L. 1965, ch. 304, § 9.

54-14-06. Penalty for certifying to false claim. [Repealed]

Repealed by S.L. 1975, ch. 106, § 673.

54-14-07. Office of the budget to set policy — Standard vouchers — Disapproval of claims.

In order to ensure that sufficient information is provided to verify claims and determine the exact purpose of expenditures, the office of the budget shall set policies which it deems necessary for an adequate accounting and shall direct the preparation of standard forms or vouchers upon which claims against any public fund must be submitted. The office of the budget may direct individuals or departments to maintain adequate records which they may be called upon to produce for preaudit or postaudit purposes in order to verify any information submitted upon travel vouchers or verify the correctness and lawfulness of the expenditures. The department, institution, board, commission, or agency to which a voucher is submitted shall disapprove all vouchers or expenditures it determines to be in error, unlawful, or in excess of the limits of legislative appropriation.

Source:

S.L. 1965, ch. 304, § 8; 1973, ch. 110, § 8; 1991, ch. 583, § 1.

54-14-08. Withholding certain amounts from state employees’ compensation.

All departments, agencies, boards, commissions, and institutions in state government shall compute and withhold from state employees’ monetary compensation only those amounts required by law to be withheld and only those other items approved by the office of the budget. However, amounts may not be withheld or deducted from state employees’ monetary compensation for the payment of insurance premiums, except life or health insurance premiums or amounts deferred to fund a deferred compensation program, unless otherwise specifically authorized by law.

Source:

S.L. 1969, ch. 439, § 1; 1973, ch. 110, § 9; 1989, ch. 3, § 9.

CHAPTER 54-15 State Budget Board [Repealed]

[Repealed by S.L. 1959, ch. 372, § 117; S.L. 1965, ch. 358, § 20]

CHAPTER 54-16 Emergency Commission

54-16-00.1. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Emergency” means either a calamity or an unforeseen happening subsequent to the time the appropriation was made and which was clearly not within the contemplation of the legislative assembly and the governor.
  2. “State officer” means an elected or appointed officer, board, commission, director, or employee of the state having the authority to transfer or expend any money appropriated by the legislative assembly.

Source:

S.L. 1995, ch. 507, § 1; 2003 Sp., ch. 670, § 2.

54-16-01. Emergency commission — Members — Organization — Quorum — Meetings.

The emergency commission consists of the governor, the majority leaders of the senate and house of representatives of the legislative assembly, the secretary of state, and the chairmen of the senate and house of representatives appropriations committees. If the chairman of an appropriations committee ceases to be a member of the legislative assembly, the vice chairman of that committee succeeds to that position on the commission. An appropriations committee vice chairman may serve in the place of the appropriations committee chairman as a member of the commission at the request of the appropriate appropriations committee chairman, if the appropriations committee chairman is unable to attend a commission meeting. If a majority leader ceases to be a member of the legislative assembly, the respective house’s assistant majority leader succeeds to that position on the commission. A majority leader’s assistant majority leader may serve as a member of the commission in the place of the majority leader at the request of the majority leader if that majority leader is serving on the commission in another capacity or is unable to attend a commission meeting. Four members of the commission constitute a quorum. The governor is the chairman and the secretary of state is the secretary of the commission. The commission shall meet at the call of the chairman.

Source:

S.L. 1915, ch. 152, § 1; 1919 Sp., ch. 34, § 1; 1925 Supp., § 283c1; R.C. 1943, § 54-1601; S.L. 1949, ch. 317, § 1; 1957 Supp., § 54-1601; S.L. 1967, ch. 74, § 14; 1973, ch. 420, § 1; 1973, ch. 421, § 1; 1975, ch. 475, § 1; 1995, ch. 507, § 2; 1995, ch. 508, § 1; 2001, ch. 15, § 26; 2005, ch. 151, § 5.

54-16-02. Proceedings not valid unless entered in minutes.

The proceedings of the emergency commission are not valid unless entered in the commission’s minutes.

Source:

S.L. 1915, ch. 152, § 1; 1919 Sp., ch. 34, § 1; 1925 Supp., § 283c1; R.C. 1943, § 54-1602; S.L. 1995, ch. 507, § 3.

54-16-03. Unlawful to expend more than appropriated — May secure approval from commission for use of other funds — Deficit void — Submission of petition to emergency commission.

  1. A state officer may not expend, or agree or contract to expend, any amount in excess of the sum appropriated for that expenditure, and may not expend an amount appropriated for any specific purpose or fund or for any other purpose without prior approval in the form of a transfer approval or expenditure authorization as provided in this chapter.
  2. When an emergency exists, a state officer may submit to the secretary of the emergency commission an itemized petition requesting approval to:
    1. Transfer money and spending authority between funds or line items pursuant to section 54-16-04;
    2. Accept and expend federal funds pursuant to section 54-16-04.1;
    3. Accept and expend state contingency funds pursuant to section 54-16-09;
    4. Accept and expend other funds pursuant to section 54-16-04.2; or
    5. Recommend full-time equivalent positions pursuant to section 54-16-04.3.
  3. The secretary of the emergency commission shall provide a copy of each petition submitted under this section to the office of management and budget. The office of management and budget may provide an analysis and prioritization of emergency requests to the emergency commission.
  4. Any petition to the emergency commission by a state officer must be considered by the emergency commission. A petition under this section must be approved or recommended by the emergency commission before submission for consideration by the budget section.
  5. Any debt or deficit created by a state officer in violation of this section is void.

Source:

S.L. 1915, ch. 152, § 4; 1923, ch. 2, § 1; 1925 Supp., §§ 283c4, 640a1; R.C. 1943, § 54-1603; S.L. 1967, ch. 384, § 1; 1973, ch. 421, § 2; 1995, ch. 507, § 4; 2003 Sp., ch. 670, § 3; 2021, ch. 400, § 1, eff August 1, 2021.

54-16-03.1. Submission of petition to emergency commission. [Repealed]

Source:

S.L. 2003 Sp., ch. 670, § 4; 2005, ch. 485, § 1; 2009, ch. 470, § 1; 2011, ch. 41, § 28; Repealed by 2021, ch. 400, § 2, eff August 1, 2021.

54-16-04. May order transfer of moneys between funds — Line item transfers — Order may draw from state treasury.

The emergency commission, upon the advice of the office of management and budget, may order money or spending authority transferred from one fund or line item to another fund or line item belonging to or appropriated for the same institution or board or the same state enterprise, may order a transfer of spending authority from the state contingencies appropriation, or, in an extremity, may authorize money to be drawn from the state treasury to meet the emergency until the legislative assembly can make an appropriation available. The following transfers, if authorized by the emergency commission, require the approval of the budget section of the legislative management:

  1. A transfer of moneys or spending authority which would eliminate or make impossible the accomplishment of a program or objective funded by the legislative assembly.
  2. A transfer exceeding fifty thousand dollars from one fund or line item to another fund or line item, unless the transfer is necessary to comply with a court order or to avoid:
    1. An imminent threat to the safety of people or property due to a natural disaster or war crisis; or
    2. An imminent financial loss to the state.

Source:

S.L. 1915, ch. 152, § 2; 1925 Supp., § 283c2; R.C. 1943, § 54-1604; S.L. 1965, ch. 347, § 1; 1967, ch. 384, § 2; 1995, ch. 54, § 40; 1995, ch. 507, § 5; 1995, ch. 508, § 2; 1997, ch. 445, § 3; 2003 Sp., ch. 670, § 5; 2009, ch. 482, § 98.

Cross-References.

Audit of emergency commission expenditures by state auditor, see N.D.C.C. § 54-10-01.1.

Emergency fund in case of epidemic of diseases among domestic animals or nontraditional livestock, see N.D.C.C. § 36-01-19.

Notes to Decisions

Emergency Appropriation.

The allocation of money authorized by this chapter is limited to emergencies arising within established funds and departments for which appropriations have already been made, and the commission may not allocate moneys to create new funds or appropriations. Backman v. Guy, 126 N.W.2d 910, 1964 N.D. LEXIS 95 (N.D. 1964).

Where the federal government made funds available to the state on a matching basis, failure of the legislature to appropriate funds to meet the offer was not an “emergency” under this section and the commission acted improperly when it appropriated money for that purpose. Backman v. Guy, 126 N.W.2d 910, 1964 N.D. LEXIS 95 (N.D. 1964).

54-16-04.1. May authorize acceptance and disbursement of federal funds.

  1. The emergency commission, upon the advice and counsel of the office of management and budget, may authorize the state treasurer to receive any moneys not appropriated by the legislative assembly which are made available by any federal agency and which the legislative assembly has not indicated an intent to reject.
  2. The emergency commission may authorize passthrough federal funds from one state agency to another state agency.
  3. The emergency commission, with approval of the budget section of the legislative management if the amount under consideration exceeds fifty thousand dollars but does not exceed three million dollars, may authorize any state officer to receive and expend federal moneys from the date such moneys become available until June thirtieth following the next regular legislative session.
  4. The emergency commission, with approval of the budget section of the legislative management if the amount under consideration exceeds three million dollars, may authorize any state officer to receive and expend federal moneys from the date such moneys become available until June thirtieth following the next regular legislative session. The budget section may approve a request under this subsection in the form received from the emergency commission or may amend and approve a request. A request amended and approved by the budget section is deemed to be approved by the emergency commission. Any request considered by the budget section must comply with section 54-35-02.9.
  5. Any federal funds made available to this state which are not for a specific purpose or program and which are not required to be spent prior to the next regular legislative session, upon the approval for acceptance by the emergency commission and the budget section of the legislative management, must be deposited into a special fund until the legislative assembly appropriates the funds.
    1. Approval by the budget section of the legislative management is not required for the acceptance of federal funds if the acceptance is necessary to avoid an imminent threat to the safety of people or property due to a natural disaster or war crisis or an imminent financial loss to the state.
    2. Budget section approval is required under this section before the expenditure of any funds accepted under these conditions.
  6. The expenditures must be consistent with state law and with the terms of the grant and the program may not commit the legislative assembly for matching funds in the future unless the program has first been approved by the legislative assembly.
  7. A state officer may not expend funds received from the federal government which have not been specifically appropriated by the legislative assembly except as provided in this chapter.
  8. A state officer shall submit an expenditure plan with a request for approval under this section of expenditure of federal funds combined with or as part of a block grant for a new or existing program.
  9. The aggregate amount of requests to expend funds that may be approved each biennium under this section may not exceed fifty million dollars. Any request received under this section which, if approved, would result in more than fifty million dollars of funds being approved for expenditure under this section during the biennium may be approved only by the legislative assembly during a regular legislative session or during a special legislative session called by the governor.
  10. Any request received under this section to expend funds received through a federal act that makes available more than fifty million dollars to the state may be approved only by the legislative assembly during a regular legislative session or a special legislative session called by the governor.
  11. Subsections 10 and 11 do not apply to federal highway administration emergency relief funding received by the state or to disaster or emergency recovery funding received by the state pursuant to section 37-17.1-23.

Source:

S.L. 1985, ch. 563, § 1; 1995, ch. 507, § 6; 1995, ch. 508, § 3; 1999, ch. 37, § 31; 2003 Sp., ch. 670, § 6; 2005, ch. 486, § 1; 2009, ch. 482, § 98; 2021, ch. 401, § 1, eff April 29, 2021.

54-16-04.2. Commission may authorize acceptance and expenditure of moneys.

  1. Upon a finding that an emergency exists, the emergency commission, upon the advice of the office of management and budget, with approval of the budget section of the legislative management if the amount under consideration exceeds fifty thousand dollars but does not exceed three million dollars, may authorize a state officer to receive and expend moneys from gifts, grants, donations, or other sources, not otherwise appropriated by the legislative assembly, for new or existing programs if the legislative assembly has not indicated an intent to reject the moneys or the program.
  2. Upon a finding that an emergency exists, the emergency commission, upon the advice of the office of management and budget, with approval of the budget section of the legislative management if the amount under consideration exceeds three million dollars , may authorize a state officer to receive and expend moneys from gifts, grants, donations, or other sources, not otherwise appropriated by the legislative assembly, for new or existing programs if the legislative assembly has not indicated an intent to reject the moneys or the program. The budget section may approve a request under this subsection in the form received from the emergency commission or may amend and approve a request. A request amended and approved by the budget section is deemed to be approved by the emergency commission. Any request considered by the budget section must comply with section 54-35-02.9.
  3. A state officer receiving authorization to expend money under this section may expend the money from the date the money becomes available until June thirtieth following the next regular legislative session. Approval by the budget section of the legislative management is not required for the acceptance of moneys under this section if the acceptance is necessary to avoid an imminent threat to the safety of people or property due to a natural disaster or war crisis or an imminent financial loss to the state. Budget section approval is required before the expenditure of any funds accepted under these conditions.
  4. The aggregate amount of requests to expend funds which may be approved each biennium under this section may not exceed five million dollars. Any request received under this section which, if approved, would result in more than five million dollars being approved for expenditures under this section during the biennium may be approved only by the legislative assembly during a regular legislative session or during a special legislative session called by the governor.

Source:

S.L. 1991, ch. 584, § 1; 1995, ch. 37, § 11; 1995, ch. 507, § 7; 1995, ch. 508, § 4; 1999, ch. 37, § 32; 2003 Sp., ch. 670, § 7, 2009, ch. 482, § 98; 2021, ch. 401, § 2, eff April 29, 2021.

54-16-04.3. Commission may recommend full-time equivalent positions — Budget section approval.

On the advice of the office of management and budget and upon the recommendation of the emergency commission, the budget section of the legislative management may authorize a state officer to employ full-time equivalent positions in addition to those authorized by the legislative assembly. The authority to employ a full-time equivalent position under this section is effective only for the remainder of the biennium during which the authority is granted by the budget section.

Source:

S.L. 2009, ch. 470, § 2.

54-16-05. Penalty for expending more than appropriated.

Any state officer who violates section 54-16-03 is guilty of a class B misdemeanor.

Source:

S.L. 1923, ch. 2, § 2; 1925 Supp., § 640a2; R.C. 1943, § 54-1605; S.L. 1975, ch. 106, § 582; 1995, ch. 507, § 8.

54-16-06. Report to emergency commission and legislative audit and fiscal review committee by board or officer when expenditure authorized. [Repealed]

Repealed by S.L. 1977, ch. 483, § 2.

54-16-07. Failure to make report — False report — Penalty. [Repealed]

Repealed by S.L. 1975, ch. 106, § 673.

54-16-08. State contingencies appropriation.

The legislative assembly may appropriate moneys to the office of management and budget for state contingencies as provided in this chapter. Any state agency, board, commission, or officer authorized by the emergency commission to spend moneys from the state contingencies appropriation must return any unspent moneys of the appropriation within the biennium that it was authorized.

Source:

S.L. 1899, ch. 66, §§ 1, 2; R.C. 1899, §§ 338a, 338b; R.C. 1905, §§ 387, 388; C.L. 1913, §§ 647, 648; S.L. 1915, ch. 26, § 1; 1941, ch. 33, § 1; R.C. 1943, § 54-1608; S.L. 1959, ch. 372, § 84; 1995, ch. 507, § 9; 1997, ch. 446, § 2.

54-16-09. Transfer of spending authority from state contingencies appropriation.

The emergency commission, upon the advice of the office of management and budget, may order a transfer of spending authority from the state contingencies appropriation, which must be deducted from the state contingencies line item in the appropriation to the office of management and budget and added to the appropriate line item in the appropriation of the state officer who requested the transfer. The emergency commission, with approval of the budget section of the legislative management if the amount under consideration exceeds fifty thousand dollars, shall certify, by an approved motion recorded in its minutes, that the material, services, or purposes for which the authority was transferred are necessary and proper expenditures and, if an appropriation for that purpose was made by the legislative assembly, that the appropriation for that purpose is insufficient. Approval by the budget section of the legislative management is not required if the transfer is necessary to avoid an imminent threat to the safety of people or property due to a natural disaster or war crisis or an imminent financial loss to the state.

Source:

S.L. 1915, ch. 26, § 2; 1925 Supp., § 283c10; R.C. 1943, § 54-1609; S.L. 1959, ch. 372, § 84(a); 1965, ch. 347, § 2; 1995, ch. 507, § 10; 2003 Sp., ch. 670, § 8; 2009, ch. 482, § 98.

54-16-10. Departmental emergency funds — Penalty. [Repealed]

Repealed by S.L. 2003, ch. 670, § 10.

54-16-11. Departmental emergency fund consideration. [Repealed]

Repealed by S.L. 2003, ch. 670, § 10.

54-16-11.1. Emergency commission may increase revenues and appropriation authority for intergovernmental service fund agencies.

Upon presentation of a petition establishing that an emergency exists and the necessity for increased appropriation authority, the emergency commission shall meet to determine if additional demand from state agencies requires an increase in appropriation authority and revenue receipts for the information technology department, central duplicating, surplus property, or roughrider industries division of the department of corrections and rehabilitation.

Source:

S.L. 1979, ch. 544, § 1; 1987, ch. 40, § 4; 1989, ch. 51, § 4; 1989, ch. 642, § 1; 1995, ch. 507, § 13; 1999, ch. 483, § 20; 2003 Sp., ch. 670, § 9; 2005, ch. 485, § 2.

Cross-References.

Information technology department, see N.D.C.C. ch. 54-59.

Central duplicating service, see N.D.C.C. § 54-44-04.

Central microfilm unit, see N.D.C.C. ch. 54-46.1.

54-16-12. Board of higher education land acquisition approval.

The emergency commission may approve the acquisition of property near one of the state institutions of higher education, and if requested and found necessary may make funds available from the state contingencies appropriation to the board of higher education for the purpose of acquiring the property if the emergency commission finds that:

  1. The property is needed for expansion in the foreseeable future;
  2. The property in all probability will not again be offered for sale at a similar price in the foreseeable future; and
  3. The legislative assembly has not previously rejected a similar request and the time during which the purchase must be consummated does not permit obtaining a legislative appropriation.

Determination that an emergency exists is not a condition precedent to the approval of a purchase or a grant of funds from the state contingencies appropriation under this section.

Source:

S.L. 1965, ch. 348, § 1; 1995, ch. 507, § 14.

54-16-13. Authority to borrow funds for a disaster — Continuing appropriation.

Any board, agency, commission, or officer of the state, subject to the approval of the emergency commission, may borrow moneys from the Bank of North Dakota for the purpose of responding to a disaster within the state as declared by the governor pursuant to chapter 37-17.1. The amount of moneys borrowed is limited to the amount of any estimated federal reimbursement for repair, recovery, or response relating to a disaster within the state, unless the state contingencies appropriation is inadequate to pay the estimated state share of the costs, then moneys may be borrowed up to one hundred percent of the costs incurred by the agency. Any interest payments on the funds borrowed must be paid from funds available to the agency from the state contingencies appropriation as authorized by the emergency commission or other funds as authorized by the emergency commission. Any moneys borrowed from the Bank of North Dakota pursuant to this section are hereby appropriated and may be spent by the board, agency, commission, or officer of this state for the repair, recovery, or response relating to a disaster within the state. If it appears to the borrower that at the end of the biennium the amount available to repay the amount borrowed plus interest is insufficient to totally repay the Bank of North Dakota, the borrower shall request from the legislative assembly a deficiency appropriation sufficient for the repayment of the amount borrowed plus interest.

Source:

S.L. 1997, ch. 446, § 1.

CHAPTER 54-17 Industrial Commission

54-17-01. Industrial commission to manage industries of state and to act as a state housing finance agency.

The commission created to conduct and manage, on behalf of the state of North Dakota, certain utilities, industries, enterprises, including housing finance programs, and business projects established by law must be known as the industrial commission of North Dakota, but may be designated as the industrial commission. In the creation of the industrial commission, it is the intention of the legislative assembly that all acts of the industrial commission are the acts of the state of North Dakota functioning in its sovereign capacity.

Source:

S.L. 1919, ch. 151, § 1; 1925 Supp., § 368a1; S.L. 1933, ch. 191, § 1; R.C. 1943, § 54-1701; S.L. 1981, ch. 524, § 1; I.M. approved November 4, 1980, S.L. 1981, ch. 650, § 1.

Cross-References.

Investment of state funds, commission approval required, see N.D.C.C. §§ 54-27-16, 54-27-17.

Notes to Decisions

Constitutionality.

This statute does not take property without due process of law, by imposing taxes for private purposes. Green v. Frazier, 253 U.S. 233, 40 S. Ct. 499, 64 L. Ed. 878, 1920 U.S. LEXIS 1418 (U.S. 1920).

Cancellation of Insurance.

When an insurance policy in possession of the industrial commission as the state agency for the management of the state mill and elevator association is delivered to the insurance company by the secretary of the commission pursuant to its direction with the request that the policy be canceled, it is canceled and terminated under the terms of the statute. State v. Hartford Steam Boiler Inspection & Ins. Co., 71 N.D. 329, 1 N.W.2d 52, 1941 N.D. LEXIS 174 (N.D. 1941).

54-17-02. Industrial commission — Members — Quorum — Meetings.

The industrial commission of North Dakota shall consist of the governor, the attorney general, and the agriculture commissioner. The governor and one member constitute a quorum for the transaction of business. The meetings of the commission must be held at such times and places as the governor or a majority of the commission may determine. It must be provided by the proper authorities with suitably furnished offices at the seat of government.

Source:

S.L. 1919, ch. 151, § 2; 1925 Supp., § 368a2; S.L. 1933, ch. 191, § 1; R.C. 1943, § 54-1702; S.L. 1967, ch. 74, § 15.

54-17-03. Chairman and attorney — Secretary — Employees — Compensation — Bonds.

The governor is the chairman of the industrial commission, and its attorney is the attorney general. The commission shall appoint a secretary and may employ other subordinate officers, employees, and agents, on such terms as the commission determines proper. The commission may require suitable bonds of its secretary or other subordinate officers, employees, or agents. The commission shall fix the amount of the compensation of the commission’s secretary, officers, employees, and agents and the secretary’s salary may exceed the maximum salary in the grade established for the classification assigned under chapter 54-44.3. The compensation, together with other expenditures for operation and maintenance of the general business of the commission, must remain within the appropriation available in each year for such purpose. The commission may set the compensation, within the limits of legislative appropriation, for members of a board, committee, or council that advises the commission. Notwithstanding any other provision of law, the compensation for any board, committee, or council member may include reimbursement for expenses, a salary, a per diem, or a combination of the three, as set by the commission.

Source:

S.L. 1919, ch. 151, § 3; 1925 Supp., § 368a3; R.C. 1943, § 54-1703; S.L. 1983, ch. 558, § 1; 2005, ch. 42, § 29; 2005, ch. 487, § 2.

54-17-04. Seal of commission.

The industrial commission shall adopt and procure an official seal and may authenticate therewith its documentary acts.

Source:

S.L. 1919, ch. 151, § 4; 1925 Supp., § 368a4; S.L. 1933, ch. 191, § 1; R.C. 1943, § 54-1704.

54-17-05. Orders of commission — Approval by majority.

All orders, rules, regulations, bylaws, and written contracts, adopted or authorized by the industrial commission, before becoming effective, must be approved by a majority of the commission.

Source:

S.L. 1919, ch. 151, § 4; 1925 Supp., § 368a4; S.L. 1933, ch. 191, § 1; R.C. 1943, § 54-1705; S.L. 1973, ch. 422, § 1.

DECISIONS UNDER PRIOR LAW

Governor’s Approval.

Former provision requiring that orders, etc., be approved and signed by governor did not impose upon governor the duty of personally approving all bills for administrative expenses of the commission, nor did it confer upon him the absolute power to disallow such bills. State ex rel. Gammons v. Sorlie, 56 N.D. 650, 219 N.W. 105, 1928 N.D. LEXIS 184 (N.D. 1928).

54-17-06. Biennial report.

The industrial commission shall submit a biennial report to the governor and the secretary of state in accordance with section 54-06-04. The report must contain a meaningful financial statement of each utility, industry, enterprise, and business project under its control.

Source:

S.L. 1919, ch. 151, § 6; 1925 Supp., § 368a6; R.C. 1943, § 54-1706; S.L. 1963, ch. 346, § 61; 1973, ch. 403, § 46; 1975, ch. 466, § 50; 1995, ch. 350, § 47.

54-17-07. Industries under the industrial commission — Income on deposits and investments.

The industrial commission shall operate, manage, control, and govern all utilities, industries, enterprises, and business projects established, owned, undertaken, administered, or operated by the state of North Dakota, except those carried on in penal, charitable, or educational institutions or those conducted pursuant to chapter 65-08.1. All income earned on state moneys that are deposited or invested to the credit of the industrial commission or any agency, utility, industry, enterprise, or business project operated, managed, controlled, or governed by the industrial commission must be added to and become a part of such moneys.

Source:

S.L. 1919, ch. 151, § 5; 1925 Supp., § 368a5; R.C. 1943, § 54-1707; S.L. 1991, ch. 578, § 4; 1993, ch. 631, § 7.

Cross-References.

Control of coal exploration, see N.D.C.C. ch. 38-12.1.

Control of disposal of nuclear and other waste material, see N.D.C.C. ch. 23-20.2.

Control of gas and oil resources, see N.D.C.C. ch. 38-08.

Control of geothermal resource development, see N.D.C.C. ch. 38-19.

Control of subsurface mineral development and production, see N.D.C.C. ch. 38-12.

Industrial commission to receive assets of North Dakota rural rehabilitation corporation upon dissolution, see N.D.C.C. § 10-12-04.

54-17-07.1. Advisory board — Rules.

The industrial commission shall appoint a six-member advisory board consisting of representatives of lenders, the residential real estate industry, the mobile home and manufactured housing industry, and homeowners and buyers, and in consultation with such board may adopt rules and regulations for the conduct of its housing finance program which may, among other matters, establish requirements for the type and purchase price of dwelling units and multifamily facilities eligible to be financed, the income limits for eligible low or moderate income persons or families, the interest rates and other terms of mortgage loans to be financed, requirements relating to federal or private mortgage insurance or guarantees, and the general terms and conditions for the issuance and security of housing revenue bonds to be issued.

Source:

I.M. approved November 4, 1980, S.L. 1981, ch. 650, § 2; S.L. 1981, ch. 524, § 2.

54-17-07.2. Definitions.

As used in sections 54-17-07.1 through 54-17-07.7 and section 54-17-07.10:

  1. “Lenders” means any bank or trust company chartered by the state of North Dakota or any national banking association located in North Dakota, state or federal savings and loan association located in North Dakota, and federal housing administration approved mortgagee or other mortgage banking institutions actively engaged in home mortgage lending in North Dakota approved by the industrial commission.
  2. “Multifamily housing facility” means any facility containing four or more residential dwelling units; provided, that at least twenty percent of the units in each facility must be held for occupancy by persons or families of low and moderate income for such period of time as the industrial commission may determine and may include such related public or private facilities intended for commercial, cultural, recreational, community, or other civic purpose as the commission may approve.
  3. “Persons and families of low or moderate income” means persons or families whose financial means are insufficient, taking into account such factors as the industrial commission shall deem relevant, to secure decent, safe, and sanitary housing provided by private industry without the financial assistance afforded by the housing finance programs of the commission.
  4. “Single-family residential dwelling unit” means any residential real property that:
    1. Is designed for occupancy by one to four individual households;
    2. Is an individual condominium or equity cooperative unit; or
    3. Is an individual nonrental dwelling unit the ownership of which includes rights of facilities in common.

Source:

I.M. approved November 4, 1980, S.L. 1981, ch. 650, § 2; S.L. 1981, ch. 524, § 3; 1991, ch. 585, § 1; 1995, ch. 509, § 1; 2011, ch. 398, § 1; 2013, ch. 405, § 1.

Effective Date.

The 2013 amendment of this section by section 1 of chapter 405, S.L. 2013 became effective March 27, 2013, pursuant to an emergency clause in section 3 of chapter 405, S.L. 2013.

54-17-07.3. Housing finance programs.

Acting in its capacity as a state housing finance agency, the industrial commission is authorized to establish the following housing finance programs:

  1. Home mortgage finance program. A program or programs to provide financing or refinancing of loans made by lenders, including second mortgage loans and leasehold mortgage loans on tribal trust or other reservation lands, and leasehold mortgage loans that are insured, guaranteed, or assisted through an affordable housing program, to persons or families of low and moderate income for the purchase or substantial rehabilitation of owner occupied, single-family residential dwelling units, which includes mobile homes and manufactured housing. The commission may also authorize a program to provide refinancing of loans previously made by lenders and purchased under the home mortgage finance program.
  2. Mobile home and manufactured housing finance program. A program or programs to provide for the purchase or guaranty of a loan made by a lender to finance the purchase of a mobile home or a manufactured housing unit other than on a real property mortgage basis. A program authorized under this subsection may provide assistance in the development of low-income to moderate-income housing or to otherwise assist a developing community in the state address an unmet housing need or alleviate a housing shortage.
  3. Multifamily housing finance program. A program or programs to provide financing directly or indirectly of construction, permanent, and combined construction and permanent mortgage loans, including participations in mortgage loans, for the acquisition, construction, refurbishing, reconstruction, rehabilitation, or improvement of multifamily housing facilities. As part of the program, the industrial commission, acting in its capacity as a state housing finance agency, may enter a public and private partnership with any interested private entity and accept any gift, grant, or other type of financial aid or assistance, including a contribution to the housing incentive fund, to provide financing for the construction or rehabilitation of a multifamily housing facility in a developing community in the state to address an unmet housing need or alleviate a housing shortage. A private entity participating in this program may reserve a proportionate share of available units in the facility for occupancy by its workforce based on its financial participation in the facility, in addition to any units held for occupancy by individuals or families of low or moderate income.
  4. Mortgage loan financing program. A program or programs to provide for the purchase or guaranty of a temporary or permanent mortgage loan originated by a lender on residential real property or on land to be developed into residential real property, in addition to a mortgage loan acquired or to be acquired under subsections 1 through 3. A program authorized under this subsection may provide assistance in the development of low to moderate income housing or to otherwise assist a developing community in the state address an unmet housing need or alleviate a housing shortage.
  5. Home improvement finance program. A program or programs to provide full or partial, indirect financing of improvements to existing residential dwelling units.
  6. Housing grant program. A program or programs to provide a grant other than those authorized by section 54-17-07.6 to encourage and promote housing availability for persons of low or moderate income or to otherwise assist a developing community in this state address an unmet housing need or alleviate a housing shortage.
  7. Residential mortgage program. A program or programs to originate residential mortgages if private sector mortgage loan services are not reasonably available. Under this program, a local financial institution or credit union may assist the agency with receiving loan applications, gathering required documents, ordering legal documents, and maintaining contact with borrowers. The applicant must be referred to the agency by a local financial institution or credit union. The agency shall provide all regulatory disclosures, process and underwrite loans, prepare closing documents, and distribute loan funds. A loan under this program may be issued only for an owner- occupied primary residence.
  8. The housing finance agency may purchase, service, and sell residential real estate loans secured by a first mortgage lien on real property originated by financial institutions. The loans may be held in the agency’s portfolio or sold on the secondary market with servicing retained. All loans with a loan-to-value ratio exceeding eighty percent and not guaranteed by a federal agency must be insured by an approved mortgage insurance company.

Source:

S.L. 1981, ch. 524, § 4; 1983, ch. 559, § 1; 1991, ch. 586, § 1; 1991, ch. 587, § 1; 1991, ch. 588, § 1; 1995, ch. 509, § 2; 1997, ch. 447, §§ 1, 2; 2007, ch. 18, § 34; 2009, ch. 471, § 1; 2013, ch. 405, § 2; 2013, ch. 406, § 1; 2021, ch. 42, § 25, eff July 1, 2021.

Effective Date.

The 2013 amendment of this section by section 2 of chapter 405, S.L. 2013 became effective March 27, 2013, pursuant to an emergency clause in section 3 of chapter 405, S.L. 2013.

The 2013 amendment of this section by section 1 of chapter 406, S.L. 2013 became effective May 7, 2013, pursuant to an emergency clause in section 7 of chapter 406, S.L. 2013.

Collateral References.

Bank’s liability to real property purchaser for misrepresentation respecting purchaser’s obtaining government guaranteed or subsidized loan, 37 A.L.R.4th 773.

54-17-07.4. Housing revenue bonds.

In order to fund its housing finance programs, the industrial commission is authorized to issue and refund revenue bonds or evidences of debt and indebtedness of the state. The principal of and interest on such bonds are payable only from revenues generated under the applicable housing finance programs. The bonds may not constitute a debt of the state of North Dakota and must contain a statement to that effect on their face. The bonds may be sold at public or private sale, must mature not more than fifty years from their date or dates, and must contain such terms and provisions as the commission shall determine. The commission may capitalize from bond proceeds all expenses incidental to the issuance of the bonds or to the applicable housing finance program, including, without limitation, any reserves for the payment of the bonds.

Source:

S.L. 1981, ch. 524, § 5; 1985, ch. 564, § 1; 1995, ch. 509, § 3.

54-17-07.5. State reallocation under the Mortgage Subsidy Bond Tax Act of 1980. [Repealed]

Repealed by S.L. 1987, ch. 630, § 1.

54-17-07.6. Acceptance of grants, contributions, loans, or other aid.

Acting in its capacity as a state housing finance agency, the industrial commission may contract for, accept, and administer any grant, contribution, or loan of funds, property, or other aid in any form from the federal government or from any other source, and may do all things necessary to qualify for any grant, contribution, or loan under any federal program, including those things necessary to qualify for assistance under the federal housing programs in effect from time to time. Upon submission of written notice to the industrial commission, a housing authority established under chapter 23-11 may elect to exercise the authority granted to the industrial commission under this section and preempt the industrial commission from acting with regard to tenant-based housing certificates and vouchers or successor programs within the area of operation of that housing authority or may elect to enter an agreement with the industrial commission to accept, exercise, and administer any housing aid or assistance upon the terms and conditions agreed upon by the parties. For the purposes of this section, “area of operation” includes any political subdivision that lawfully contracts with the local housing authority to act as a local housing authority for that political subdivision and any political subdivision that has its certificates and vouchers or successor programs assigned by the industrial commission to the local housing authority under an agreement between the local housing authority and the industrial commission.

Source:

S.L. 1919, ch. 151, § 6; 1925 Supp., § 368a6; R.C. 1943, § 54-1706; S.L. 1963, ch. 346, § 61; 1973, ch. 403, § 46; 1993, ch. 258, § 2; 1999, ch. 456, § 1.

54-17-07.7. Terms of loans.

Notwithstanding any other provision of law, the industrial commission is authorized to require, as a condition of the origination of loans and mortgage loans made pursuant to any of its housing finance programs or purchase of loans and mortgage loans to be purchased by it, prepayment penalties, restrictions upon assumability, default provisions, rights to accelerate, rights to increase the interest rate, and any other terms the commission may determine to be necessary or desirable to assure the repayment of its housing revenue bonds and, unless such conditions of origination or other terms are not required by the commission, the exemption from federal income taxes of the interest payable on its housing revenue bonds under the Internal Revenue Code of 1986. All such terms are enforceable by the originator, the commission, or any successor holder of the loans or mortgage loans unless expressly waived in writing by or on behalf of the commission.

Source:

S.L. 1981, ch. 524, § 8; 1983, ch. 559, § 2; 1985, ch. 566, § 1; 1989, ch. 643, § 1.

54-17-07.8. Confidentiality of housing finance agency records.

The following records of the housing finance agency are confidential and are not public records:

  1. Personal or financial information of a participant in any of the housing finance agency’s programs, obtained directly or indirectly, except for routine credit inquiries or as required by court order.
  2. Internal or interagency memorandums or letters of a personal nature which are not available by law to a party, except insofar as they are available in litigation with the agency.
  3. Personal financial statements which the industrial commission requires of any housing finance agency employee or member of the housing finance agency’s advisory board.

Source:

S.L. 1985, ch. 567, § 1.

54-17-07.9. Execution of instruments.

In the absence of any provision regulating the execution and acknowledgment of conveyances, transfers, assignments, releases, satisfactions, or other instruments affecting liens on, title to, or interest in real estate, the executive director or the director of financial programs may execute and acknowledge such instruments on behalf of the industrial commission acting as the North Dakota housing finance agency.

Source:

S.L. 1985, ch. 568, § 1.

54-17-07.10. Housing acquisition program.

The industrial commission may establish a program or programs to provide housing for persons of low or moderate income, through the acquisition of residential real property and related personal property or interests therein through purchase, lease, gift, grant, bequest, or otherwise to maintain, repair, improve, sell, or convey leasehold interests in that real and personal property to, or for the benefit of, persons of low or moderate income. Property acquired under this section is subject to property and special assessment taxes in a manner consistent with and equal to other property of equal value within the respective taxing districts where the property is located. Taxes on any property acquired under this section must be paid in a timely manner for any year or pro rata portion of a year by any housing authority or housing acquisition organization holding title to the property.

Source:

S.L. 1991, ch. 585, § 2.

54-17-07.11. Pledges.

Any pledge made by the industrial commission acting in its capacity as the state housing finance agency is valid and binding from the time the pledge is made. The money and property pledged and received by the industrial commission acting in its capacity as the state housing finance agency, except for general agency money or property, is immediately subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of any pledge is valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the industrial commission acting in its capacity as the state housing finance agency, irrespective of whether the parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created is required to be recorded to constitute constructive notice of the existence of the pledge.

Source:

S.L. 1995, ch. 509, § 4.

54-17-07.12. Housing finance agency as wholesale servicing mortgage lender. [Repealed]

Source:

S.L. 2013, ch. 407, § 1; Repealed by 2021, ch. 42, § 29, eff July 1, 2021.

54-17-07.13. Criminal history record checks.

The executive director of the housing finance agency may require an applicant for employment to submit to a criminal history record check under section 12-60-24.

Source:

S.L. 2019, ch. 101, § 2, eff August 1, 2019.

54-17-08. Commission to make rules for its procedure — General powers of commission.

The industrial commission shall make rules and regulations for its own procedure. It may do any and all things necessary or expedient in conducting the business of the industries, utilities, enterprises, and business projects under its control.

Source:

S.L. 1919, ch. 151, § 5, subs. i; 1925 Supp., § 368a5, subs. i; R.C. 1943, § 54-1708.

Notes to Decisions

Hail Insurance Loans.

Fact that legislature failed to make provision for manner in which insurance commissioner and industrial commission could make loans to pay for hail losses did not preclude them from exercising their implied powers in performing their statutory duty. State ex rel. Bauer v. Nestos, 48 N.D. 894, 187 N.W. 233, 1922 N.D. LEXIS 112 (N.D. 1922).

54-17-09. Industrial commission to determine place of business of industries — Rules made by commission.

The industrial commission shall:

  1. Determine the location of all utilities, industries, enterprises, and business projects established, owned, undertaken, administered, or operated by the state.
  2. Make rules, regulations, orders, and bylaws for the management and operation, and for the transaction of the business, of such utilities, industries, enterprises, and business projects.

Source:

S.L. 1919, ch. 151, § 5, subss. a, f; 1925 Supp., § 368a5, subss. a, f; R.C. 1943, § 54-1709.

54-17-10. Powers and duties of commission in operating industries.

In the management, operation, and control of all utilities, industries, enterprises, and business projects established, owned, undertaken, administered, or operated by the state, and to accomplish the purposes of this chapter, the industrial commission shall:

  1. Acquire by purchase, lease, or, subject to chapter 32-15, by exercise of the right of eminent domain, all necessary property or property rights, and hold and possess or sell the whole or any part thereof.
  2. Construct and reconstruct necessary buildings on the properties acquired.
  3. Equip, maintain, repair, and alter any and all properties acquired and the improvements thereon.
  4. Generally use properties acquired and improvements made so as to promote such utilities, industries, enterprises, and business projects.

Source:

S.L. 1919, ch. 151, § 5, subs. b; 1925 Supp., § 368a5, subs. b; R.C. 1943, § 54-1710; 2007, ch. 293, § 35.

Notes to Decisions

Budget Statement.

Since the industrial commission is in charge of the Bank of North Dakota and the mill and elevator association, it is the duty of such commission to file with the state auditor whatever statement may be required to be filed under the state budget board law, as regards these two entities. LANGER v. STATE, 69 N.D. 129, 284 N.W. 238, 1939 N.D. LEXIS 137 (N.D. 1939).

Federal Taxation.

The Bank of North Dakota is not exempt from the federal capital stock tax. North Dakota v. Olson, 33 F.2d 848, 1929 U.S. App. LEXIS 2832 (8th Cir. N.D. 1929).

Sovereign Immunity.

When a state creates a corporation for the purpose of engaging in private business and acquires either a part or the whole of capital thereof, it divests itself, so far as it concerns the transactions of such corporation, of its sovereign character and takes that of a private citizen. North Dakota v. Olson, 33 F.2d 848, 1929 U.S. App. LEXIS 2832 (8th Cir. N.D. 1929).

Suit Against Commission.

Under the express provisions of North Dakota statutes, an action against the state doing business as the North Dakota mill and elevator is a suit against the state within the direct prohibition of the eleventh amendment, and the fact that the state’s liability, if any, arises out of a commercial venture ordinarily not conceived of as a governmental function is immaterial. North Dakota v. National Milling & Cereal Co., 114 F.2d 777, 1940 U.S. App. LEXIS 3211 (8th Cir. N.D. 1940).

54-17-11. Manager and employees of industries — Commission to appoint — Compensation.

The industrial commission shall appoint a manager and all necessary subordinate officers and employees of and for each utility, industry, enterprise, and business project established, owned, undertaken, administered, or operated by the state. It may constitute such manager its general agent in the performance of its duties in the particular utility, industry, enterprise, or business project in which the manager is engaged, but subject, nevertheless, in such agency to the supervision, limitation, and control of the commission. It shall employ such contractors, architects, builders, attorneys, sales agents, clerks, accountants, and other experts, agents, and servants, as in the judgment of the commission the interests of the state may require, and shall define the duties, designate the titles, and fix the compensation and bonds of all persons so engaged.

Source:

S.L. 1919, ch. 151, § 5, subs. c; 1925 Supp., § 368a5, subs. c; R.C. 1943, § 54-1711.

54-17-12. Manager shall appoint necessary employees.

Subject to the control and regulation of the industrial commission, the manager of any utility, industry, enterprise, or business project established, owned, undertaken, administered, or operated by the state shall appoint and employ such deputies, assistants, and other subordinates, and such contractors, architects, builders, attorneys, sales agents, clerks, accountants, and other experts, agents, and servants, as in the manager’s judgment are required by the interests of the utility, industry, enterprise, or business project of which the manager is in charge.

Source:

S.L. 1919, ch. 151, § 5, subs. c; 1925 Supp., § 368a5, subs. c; R.C. 1943, § 54-1712.

54-17-13. Compensation of employees and expenditures remain within appropriation.

The total compensation of the appointees and employees of each utility, industry, enterprise, or business project established, owned, undertaken, administered, or operated by the state, together with other expenditures for the operation and maintenance thereof, must remain within the appropriation and earnings lawfully available in each year for such purposes.

Source:

S.L. 1919, ch. 151, § 5, subs. c; 1925 Supp., § 368a5, subs. c; R.C. 1943, § 54-1713.

Notes to Decisions

Continuing Appropriation.

The appropriation made by S.L. 1919, ch. 151 was intended by the legislature to be a continuing one and was not repealed by repeal clauses contained in subsequent appropriation bills. State ex rel. Gammons v. Sorlie, 56 N.D. 650, 219 N.W. 105, 1928 N.D. LEXIS 184 (N.D. 1928).

54-17-14. Removal and discharge of appointees.

The industrial commission may remove and discharge any and all persons appointed in the exercise of the powers granted by this chapter, whether by the commission or by any manager of any utility, industry, enterprise, or business project of the state. Any such removal may be made whenever in the judgment of the commission the public interests require it. All appointments and removals contemplated by this chapter must be made as the commission shall deem most fit to promote the efficiency of the public service.

Source:

S.L. 1919, ch. 151, § 5, subs. d; 1925 Supp., § 368a5, subs. d; R.C. 1943, § 54-1714.

Notes to Decisions

Power to Discharge.

The governor could not discharge the secretary of the commission and appoint the state examiner to act in his place without compensation. State ex rel. Gammons v. Sorlie, 56 N.D. 650, 219 N.W. 105, 1928 N.D. LEXIS 184 (N.D. 1928).

54-17-15. Commission to fix prices of things bought and sold by industry.

The industrial commission shall fix the buying prices of things bought, and the selling prices of things sold, incidental to any utility, industry, enterprise, or business project of the state, and shall fix the rates and charges for any and all services rendered thereby. In fixing such prices, rates, and charges, the commission shall make provision for accumulating a fund with which to replace, in the general fund of the state, any amount received from the state.

Source:

S.L. 1919, ch. 151, § 5, subs. e; 1925 Supp., § 368a5, subs. e; R.C. 1943, § 54-1715.

54-17-16. Investigation conducted by commission.

The industrial commission shall conduct investigations of all matters directly or indirectly connected with, or bearing upon the success of, any of the utilities, industries, enterprises, and business projects under its management, and of all matters which directly or indirectly may affect the methods, operations, processes, products, or results thereof. In aid of any such investigation the commission may summon and compel the attendance of witnesses and examine them under oath. Any member of the commission may administer such oath. It shall have access to, and may order the production of, all books, accounts, papers, and property material to such investigation. Witnesses other than those in the employ of the state are entitled to the same fees as witnesses in civil cases in the district court.

Source:

S.L. 1919, ch. 151, § 5, subs. h; 1925 Supp., § 368a5, subs. h; R.C. 1943, § 54-1716.

Cross-References.

Witness fees in civil cases, see N.D.C.C. § 31-01-16.

54-17-17. Witnesses not excused from testifying — Not subject to prosecution.

In an investigation made by the industrial commission under the provisions of this chapter, the claim that any testimony or evidence sought to be elicited or produced on the examination may tend to incriminate the person giving or producing it, or may expose the person to public ignominy, does not excuse the person from testifying or producing evidence, documentary or otherwise, but no person may be prosecuted or subjected to any penalty or forfeiture for and on account of any matter or thing concerning which the person may testify or produce such evidence. Such person is not exempted from prosecution and punishment for perjury committed in so testifying.

Source:

S.L. 1919, ch. 151, § 5, subs. h; 1925 Supp., § 368a5, subs. h; R.C. 1943, § 54-1717.

54-17-18. Testimony transcribed and filed in office of commission — Public record.

The industrial commission shall cause the testimony taken at an investigation held under the provisions of this chapter to be transcribed and filed in the office of the commission, at the seat of government, within ten days after it is taken, or as soon thereafter as practicable. When so filed it must be open for inspection by any person.

Source:

S.L. 1919, ch. 151, § 5, subs. h; 1925 Supp., § 368a5, subs. h; R.C. 1943, § 54-1718.

54-17-19. Failure to testify or produce evidence — Contempt.

Any person failing or refusing to obey the order of the industrial commission issued upon an investigation, or to give or produce evidence when required, must be reported by the commission to the district court or any judge thereof, and must be dealt with by the court or judge as for contempt of court.

Source:

S.L. 1919, ch. 151, § 5, subs. h; 1925 Supp., § 368a5, subs. h; R.C. 1943, § 54-1719.

54-17-20. Bonds issued by commission.

The industrial commission shall procure the necessary funds for utilities, industries, enterprises, and business projects under its control by negotiating the bonds of the state of North Dakota in such amounts and in such manner as may be provided by law.

Source:

S.L. 1919, ch. 151, § 5, subs. g; 1925 Supp., § 368a5, subs. g; R.C. 1943, § 54-1720.

Notes to Decisions

Constitutionality.

The issuance of bonds and levying of a tax on all nonexempt property in the state to build and operate state-owned industries and utilities does not violate the Fourteenth Amendment. Green v. Frazier, 253 U.S. 233, 40 S. Ct. 499, 64 L. Ed. 878, 1920 U.S. LEXIS 1418 (U.S. 1920).

Delegation of Power.

The authority granted to the governor and industrial commission to fix the rate of interest, maturity, and other features of bonds issued for or in connection with state industries is not a delegation of a legislative function. Green v. Frazier, 44 N.D. 395, 176 N.W. 11, 1920 N.D. LEXIS 93 (N.D.), aff'd, 253 U.S. 233, 40 S. Ct. 499, 64 L. Ed. 878, 1920 U.S. LEXIS 1418 (U.S. 1920).

54-17-21. Commission authorized to acquire and dispose Riverdale sites, properties, and facilities. [Repealed]

Repealed by S.L. 1999, ch. 457, § 1.

54-17-22. Commission authorized to act as planning agency of state and to negotiate and contract with federal housing administration. [Repealed]

Repealed by S.L. 1999, ch. 457, § 1.

54-17-23. Commission authorized to apply for, receive, and disburse federal planning funds, and to establish separate planning account. [Repealed]

Repealed by S.L. 1999, ch. 457, § 1.

54-17-24. State trusts created.

The industrial commission is hereby authorized and directed to acquire and to hold in one or more trusts all unpaid United States government guaranteed or reinsured student loans and North Dakota guaranteed student loans, belonging to the state of North Dakota or to any of its agencies, departments, or institutions which may be endorsed or assigned to it, such guaranteed student loans held in the trusts as security for bonds of the state to be issued as and in the manner the commission shall decide. All guaranteed student loans so held in the trusts and the collections therefrom and the increments thereto must be held in special funds as the source of payment of bonds of North Dakota to be issued, none of which bonds may constitute indebtedness of the state. The term “student” for the purposes of this section and section 54-17-25 includes a parent borrower under chapter 15-62.1.

Source:

S.L. 1971, ch. 495, § 1; 1983, ch. 119, § 8; 1987, ch. 631, § 1; 1997, ch. 448, § 1.

54-17-25. Bonds authorized — Establishment of secondary market program.

Whenever the industrial commission decides that it is in the public interest to diminish the investment of state funds in United States government guaranteed or reinsured or North Dakota guaranteed student loans, that it will be difficult to divest the state of appreciable amounts of such loans by piecemeal offering to the investing and saving public, that business conditions are favorable to a state-sponsored program to consolidate state-held student loans, and to enlarge private participation in such loans, or that the public will otherwise benefit, the commission may by plenary resolution duly adopted in accordance with the provisions hereof authorize preparation, sale, and issuance of revenue bonds of North Dakota in such amounts and at such times and in such form, which may include the issuance of bonds the interest income on which is subject to federal income taxes, as the commission shall determine to be for the public good. The industrial commission may issue subordinate or residual bonds whenever the industrial commission determines that it is appropriate or expedient to do so and the bonds may contain such terms and provisions as the commission may determine. The commission may refund and refinance the bonds from time to time as often as it is advantageous and in the public interest to do so. The bonds shall be a charge upon a sufficient designated portion of the resources of the student loan trusts, subject only to necessary administrative expenses of the trusts duly appropriated out of the interest earning resources thereof. The bonds may bear such rate or rates of interest as the commission may provide. The bonds must have all of the qualities and incidents of negotiable paper and are not subject to taxation by the state of North Dakota or by any county, municipality, or political subdivision therein. The bonds must be payable solely out of the separate resources generated respectively from collection of payments on and earnings and proceeds of United States government guaranteed or reinsured or North Dakota guaranteed student loans, and must respectively so recite. They are not indebtedness of the state of North Dakota or of any agency, board, department, or officer or agent thereof. Without limiting the foregoing, the commission may request the organization of a nonprofit corporation meeting the requirements of the Internal Revenue Code of 1954, as amended and redesignated as the Internal Revenue Code of 1986 [Pub. L. 99-54], and as it may be amended from time to time, and enter into one or more agreements with such corporation providing for the establishment of a secondary market program in the state of North Dakota for the acquisition by the corporation of such loans made pursuant to title IV, part B of the Higher Education Act of 1965 [Pub. L. 89-329; 79 Stat. 1236; Pub. L. 99-498; 100 Stat. 1353; 20 U.S.C. 1001 et seq.], as amended through December 31, 1996, as the commission shall, in its discretion, deem advisable.

Source:

S.L. 1971, ch. 495, § 2; 1979, ch. 545, § 1; 1981, ch. 269, § 22; 1983, ch. 119, § 9; 1985, ch. 569, § 1; 1987, ch. 631, § 2; 1997, ch. 94, § 9; 1997, ch. 448, § 2; 2003, ch. 470, § 1; 2005, ch. 26, § 2.

54-17-26. Bonds eligible for investment — Sale of bonds.

Bonds issued under section 54-17-25 may be acquired and held by banks and by savings and loan associations of this state as well as by all public trust funds. They may be issued and sold at public or private sale or by negotiation as the industrial commission may direct and the commission may make, enter into, and enforce all contracts or agreements necessary, convenient, or desirable for the purposes of the commission or pertaining to any purchase or sale of the bonds or other investments or to the performance of its duties and execution or carrying out of any of its powers under section 54-17-25.

Source:

S.L. 1971, ch. 495, § 3; 1983, ch. 119, § 10; 1997, ch. 448, § 3.

54-17-27. Grant program for home weatherization programs.

The industrial commission or its designee shall administer a home weatherization grant program to provide financial assistance to regional offices which administer the United States department of energy home weatherization program. Grant moneys must be used for direct consumer benefit programs to support labor and material costs for roof repair and heating plant repair to effect energy conservation. No funds may be used for administrative purposes.

Source:

S.L. 1981, ch. 525, § 1.

54-17-28. Application for grants.

Each regional office which administers the United States department of energy home weatherization program may apply for the grants provided in section 54-17-27 and this section under such reasonable guidelines as may be adopted by the industrial commission or its designee. Each application must be accompanied by a two-year budget, including a productivity work plan. Each regional office is eligible for a base amount of forty thousand dollars for fiscal year 1982 and forty-five thousand dollars for fiscal year 1983.

Source:

S.L. 1981, ch. 525, § 2.

54-17-29. Commission loan guarantees for seller-sponsored loans between landowners and beginning farmers. [Repealed]

Repealed by S.L. 1983, ch. 126, § 2.

54-17-30. Procedure on default on guaranteed beginning farmer security loan. [Repealed]

Repealed by S.L. 1983, ch. 126, § 2.

54-17-31. Establishment and maintenance of adequate guarantee funds — Use of lands and minerals trust — Appropriation. [Repealed]

Repealed by S.L. 1983, ch. 126, § 2.

54-17-32. Resources trust fund — Commission responsibilities.

  1. The industrial commission may, within the limits of legislative appropriations, enter into contracts with institutions of higher education in this state, or with other parties, for the following purposes:
    1. Studies on the development of cogeneration systems.
    2. Studies on the promotion and development of energy conservation programs and renewable energy sources.
    3. Studies of the feasibility of developing waste products utilization.
  2. The industrial commission may, within the limits of legislative appropriations, provide for the making of grants in aid of those persons or entities doing research or development with respect to energy conservation, renewable energy sources, cogeneration, or waste products utilization. Grants under this subsection must be made to persons or entities residing, located, or doing business in this state. No grant made pursuant to this subsection may exceed ten thousand dollars in amount, and grants may not be made for time periods which run beyond any fiscal biennium during which the grant is made. As used in this subsection, “entity” means any firm, partnership, corporation, limited liability company, cooperative, association, or other business entity, and any governmental entity.
  3. The industrial commission may adopt rules to implement its power to make grants and enter into contracts pursuant to this section. Any rules must be adopted in accordance with chapter 28-32.

Source:

S.L. 1981, ch. 366, § 2; 1993, ch. 54, § 106.

54-17-33. State trust created — Agricultural mortgage secondary market.

The industrial commission may establish a trust for the purpose of participating as an agricultural mortgage marketing facility in the agricultural mortgage secondary market program established pursuant to the Agricultural Credit Act [Pub. L. 100-233; 101 Stat. 1686; 12 U.S.C. 2279aa-2279aa-14], as amended through December 31, 1996. The industrial commission may take any action necessary to qualify as a certified facility.

Source:

S.L. 1989, ch. 102, § 3; 1997, ch. 94, § 10.

Law Reviews.

Summary of significant decisions rendered by the North Dakota Supreme Court in 1990 relating to farm mortgages, 66 N.D. L. Rev. 838 (1990).

54-17-34. Definitions.

As used in sections 54-17-34 through 54-17-34.5:

  1. “First-time farmer” means an individual who is a North Dakota resident who has not at any time had any direct or indirect ownership interest in substantial farmland in the operation of which the individual materially participated, who will be the principal user of the farmland, and who will materially and substantially participate on the farm of which the land is a part in the operation of the farm.
  2. “Substantial farmland” means any parcel of land unless the parcel is smaller than thirty percent of the median size of a farm in the county in which the parcel is located.

Source:

S.L. 1997, ch. 449, § 2; 2009, ch. 472, § 1.

54-17-34.1. Farm finance program.

Acting as the farm finance agency, the industrial commission may establish the first-time farmer finance program to encourage first-time farmers to enter into and remain in the livelihood of agriculture and to provide first-time farmers a source of financing at favorable rates and terms generally not available to them. The first-time farmer finance program is established to allow first-time farmers to utilize the tax-exempt financing provided for in the Internal Revenue Code of 1986, and any amended regulations adopted thereunder.

Source:

S.L. 1997, ch. 449, § 3.

54-17-34.2. First-time farmer participation.

The first-time farmer finance program is limited as required by applicable provisions of the Internal Revenue Code of 1986 and any regulations adopted thereunder, as amended, and under the first-time farmer finance program:

  1. Financing may not be made to individuals with a net worth that exceeds the net worth requirement of the beginning farmer revolving loan program administered by the Bank of North Dakota and established by loan policy; and
  2. Financing may only be made to first-time farmers for the acquisition of land in the state of North Dakota, livestock, farm improvements, and equipment to be used for farming purposes and may not exceed an amount established under the Internal Revenue Code of 1986, as amended.

Source:

S.L. 1997, ch. 449, § 4; 2009, ch. 472, § 2.

54-17-34.3. Financing.

Financing may be accomplished by the issuance of evidences of indebtedness by the industrial commission acting as the farm finance agency and the entering into of a financing agreement between the industrial commission acting as the farm finance agency and lenders or individuals. Any financing agreement entered into between the industrial commission and any lender or individual is payable as to principal and interest only from the payments made thereon by the first-time farmer, and the financing agreement and any evidence of indebtedness may not constitute a debt of the state of North Dakota or any agency or instrumentality thereof within the meaning of any constitutional or statutory debt limit.

Source:

S.L. 1997, ch. 449, § 5.

54-17-34.4. Policies.

Before exercising any of its powers as the farm finance agency pursuant to subsection 2 of section 54-17-09, the industrial commission shall adopt policies and rules relating to any or all of the following:

  1. Procedures and documentation for the submission of requests for financing; and
  2. Provisions necessary for compliance with the Internal Revenue Code of 1986 and any regulations adopted thereunder, as amended.

Source:

S.L. 1997, ch. 449, § 6.

54-17-34.5. Financing exempt from taxation — Exception.

Evidences of indebtedness issued under the provisions of the first-time farmer finance program, and the interest therefrom, is exempt from any taxes of the state, except inheritance, estate, and transfer taxes.

Source:

S.L. 1997, ch. 449, § 7.

54-17-35. Governmental public purpose — Electricity transmission export constraint priority.

The legislative assembly finds and declares that it is an essential governmental function and public purpose to assist with the removal of electrical transmission export constraints and to assist with the upgrading and expansion of the region’s electrical transmission grid in order to facilitate the development of the state’s abundant natural resources for export to the region’s consumers. The industrial commission shall give priority to those projects, processes, or activities that assist with the resolution of electricity transmission export constraints in this state.

Source:

S.L. 2003, ch. 471, § 1.

54-17-36. Lease of municipal waterworks and sewage systems.

Notwithstanding any other provision of law, the state, acting by and through its industrial commission, may enter agreements to lease all or part of, or an undivided or other interest in, the plant or equipment of any waterworks, mains, or water distribution system and any property related thereto pursuant to subsection 5 of section 40-33-01, subsection 12 of section 61-24.5-09, or subsection 23 of section 61-35-12 or any sewage system and all related property for the collection, treatment, purification, and disposal in a sanitary manner of sewage pursuant to section 40-34-19 or subsection 23 of section 61-35-12 to or from a municipality or other political subdivision or agency of the state, or to or from any person, for such compensation and upon such terms and conditions as the parties under such agreement may stipulate. For the purposes of this section, such agreements include any lease, sublease, purchase agreement, lease-purchase agreement, installment purchase agreement, leaseback agreement, or other contract, agreement, instrument, or arrangement pursuant to which any rights, interests, or other property are transferred to, by, or from any party to, by, or from one or more parties, and any related documents entered or to be entered, including any operating agreement, service agreement, indemnity agreement, participation agreement, loan agreement, or payment undertaking agreement. Any lease obligation entered under this section is payable solely from revenues to be derived by the state or any agency or institution of the state from the ownership, sale, lease, disposition, and operation of the plant or equipment of any waterworks, mains, or water distribution system and any property related thereto or sewage systems and all related property for the collection, treatment, purification, and disposal in a sanitary manner of sewage; any funds or investments permitted under state law, and any earnings thereon, to the extent pledged therefor; revenues to be derived by the state from any support and operating agreement, service agreement, or any other agreement relating to the waterworks, mains, and water distribution system or sewage system; funds, if any, appropriated annually by the legislative assembly; and income or proceeds from any collateral pledged or provided therefor. A lease obligation entered under this section does not constitute an indebtedness of the industrial commission, the state, or any agency or officer or agent thereof, or a pledge of the full faith and credit or unlimited taxing resources of the industrial commission, the state, or any agency or officer or agent thereof. The industrial commission may authorize the public finance authority or another agency or institution of the state to do and perform any acts and things authorized by this section, including making, entering, and enforcing all contracts or agreements necessary, convenient, or desirable for the purposes of this section.

Source:

S.L. 2003, ch. 342, § 12; 2005, ch. 89, § 32.

54-17-37. Tribal-state guaranty program — Continuing appropriation.

Expired under S.L. 2007, ch. 461, § 1.

54-17-38. Biomass incentive and research program. [Repealed]

Repealed by S.L. 2009, ch. 521, § 6.

54-17-39. Biomass incentive and research fund. [Repealed]

Repealed by S.L. 2009, ch. 521, § 6.

54-17-40. Housing incentive fund — Continuing appropriation — Report to budget section.

  1. The housing incentive fund is created as a special revolving fund at the Bank of North Dakota. The housing finance agency may direct disbursements from the fund and a continuing appropriation from the fund is provided for that purpose.
    1. After a public hearing, the housing finance agency shall create an annual allocation plan for the distribution of the fund as authorized under subsection 3. At least ten percent of the fund must be used to assist developing communities to address an unmet housing need or alleviate a housing shortage. At least ten percent of the fund must be made available to prevent homelessness as authorized by subdivision d of subsection 3.
    2. The annual allocation plan must give priority to provide housing for individuals and families of low or moderate income. For purposes of this priority, eligible income limits are determined as a percentage of median family income as published in the most recent federal register notice. Under this priority, the annual allocation plan must give preference to projects that benefit households with the lowest income and to projects that have rent restrictions at or below department of housing and urban development published federal fair market rents or department of housing and urban development section 8 payment standards.
  2. The housing finance agency shall adopt guidelines for the fund so as to address unmet housing needs in this state. Assistance from the fund may be used solely for:
    1. New construction, rehabilitation, preservation, or acquisition of a multifamily housing project;
    2. Gap assistance, matching funds, and accessibility improvements;
    3. Assistance that does not exceed the amount necessary to qualify for a loan using underwriting standards acceptable for secondary market financing or to make the project feasible; and
    4. Rental assistance, emergency assistance, barrier mitigation, or targeted supportive services designated to prevent homelessness.
  3. Eligible recipients include units of local, state, and tribal government; local and tribal housing authorities; community action agencies; regional planning councils; and nonprofit organizations and for-profit developers of multifamily housing. Individuals may not receive direct assistance from the fund.
  4. Except for subdivision d of subsection 3, assistance is subject to repayment or recapture under the guidelines adopted by the housing finance agency. Any assistance that is repaid or recaptured must be deposited in the fund and is appropriated on a continuing basis for the purposes of this section.
  5. The agency may collect a reasonable administrative fee from the fund, project developers, applicants, or grant recipients. The origination fee assessed to grant recipients may not exceed five percent of the project award.
  6. Upon request, the housing finance agency shall report to the industrial commission regarding the activities of the housing incentive fund.
  7. At least once per biennium, the housing finance agency shall provide a report to the budget section of the legislative management regarding the activities of the housing incentive fund.

Source:

S.L. 2011, ch. 398, § 2; 2013, ch. 406, § 2; 2013, ch. 45, § 23; 2015, ch. 14, § 17, eff July 1, 2015; 2017, ch. 39, § 19, eff July 1, 2017; 2019, ch. 14, § 21, eff July 1, 2019; 2021, ch. 42, § 26, eff July 1, 2021.

Effective Date.

The 2015 amendment of this section by section 17 of chapter 14, S.L. 2015 became effective July 1, 2015.

The 2013 amendment of this section by section 23 of chapter 45, S.L. 2013 became effective July 1, 2013.

The 2013 amendment of this section by section 2 of chapter 406, S.L. 2013 became effective May 7, 2013, pursuant to an emergency clause in section 7 of chapter 406, S.L. 2013.

Note.

The 2015 amendment to this section by section 17, of chapter 14, S.L. 2015, was to extend the expiration date from June 30, 2015 to June 30, 2017.

The 2013 amendment of this section extended the expiration date from June 30, 2013 to June 30, 2015.

Section 54-17-40 was amended 2 times by the 2013 Legislative Assembly. The amendment made in section 23 of chapter 45, Session Laws 2013, Senate Bill 2014 was incorrectly made to the section as set to expire June 30, 2013, so the section is amended as provided in section 2 of chapter 406, Session Laws 2013, House Bill 1029.

54-17-41. Report. [Repealed]

Source:

S.L. 2011, ch. 398, § 2; 2013, ch. 406, § 3; 2015, ch. 14, § 18, eff July 1, 2015; Repealed by 2017, ch. 39, § 23, eff July 1, 2017.

Note.

The 2015 amendment to this section by section 18, of chapter 14, S.L. 2015, was to extend the expiration date from June 30, 2015 to June 30, 2017.

54-17-42. Report to legislative assembly or budget section on the fiscal impact of certain actions of the industrial commission.

If any order, regulation, or policy of the industrial commission to implement the provisions of chapter 38-08, excluding spacing unit orders, has a fiscal effect or estimated fiscal effect on the state in excess of twenty million dollars in a biennium, the industrial commission shall report to the legislative assembly when in session and otherwise to the budget section of the legislative management on the fiscal impact of the effect of the action on state revenues and expenditures, including any effect on the funds of the industrial commission.

History. S.L. 2015, ch. 378, § 1, eff August 1, 2015.

Effective Date.

This section became effective August 1, 2015.

Note.

Section 2 of chapter 378, S.L. 2015 provides, “ RETROACTIVE APPLICATION . This Act applies retroactively to actions of the industrial commission made after July 31, 2013, and applies specifically to the orders of the industrial commission on flaring. The industrial commission shall report on the fiscal impacts of past orders within ninety days of the effective date of this Act.”

CHAPTER 54-17.1 Vietnam Veterans’ Bonus Bond Issue [Repealed]

[Repealed by S.L. 1993, ch. 364, § 1]

CHAPTER 54-17.2 North Dakota Building Authority

54-17.2-01. Definitions.

As used in this chapter, unless the context or subject matter requires otherwise:

  1. “Commission” means the industrial commission acting as the North Dakota building authority created under this chapter.
  2. “Evidences of indebtedness” means bonds, notes, debentures, and other evidences of indebtedness issued by the commission on behalf of the state of North Dakota to evidence money owed or borrowed.
  3. “Financing agreement” means a written agreement between the commission and the state with respect to a project, whereby the state agrees to pay to the commission, when due, the principal of, premium, if any, and interest on bonds issued by the commission with respect to that project. A financing agreement may be in the form of a lease, mortgage, direct or installment sale contract, loan agreement, or take-or-pay or similar agreement, and be secured in a manner the parties agree to or be unsecured.
  4. “Project” or “projects” means any:
    1. Legislatively authorized building or buildings primarily for the use of the state, including related structures, parking facilities, equipment, improvements, real and personal property or any interest therein, including lands under water, space rights and air rights, and other appurtenances and facilities necessary or convenient to the use or operation of the building or buildings, acquired, owned, constructed, reconstructed, extended, rehabilitated, or improved by the commission; or
    2. Any other undertaking authorized by the legislative assembly.
  5. “Project cost” means the total cost of a project or projects and all costs of issuance, financing, and interest during project construction or implementation included in the principal amount of evidences of indebtedness issued.
  6. “State” means any branch of North Dakota government or any office, department, board, commission, bureau, division, public authority or corporation, agency, or instrumentality of the state.

Source:

S.L. 1985, ch. 571, § 1; 2005, ch. 489, § 1.

54-17.2-02. Commission — Evidence of indebtedness issuance.

The commission is a North Dakota instrumentality empowered, subject to legislative authorization, to issue evidences of indebtedness to make funds available for a project or projects as directed by the legislative assembly.

Source:

S.L. 1985, ch. 571, § 2.

54-17.2-02.1. Evidences of indebtedness conditions — Continued authority.

The commission may issue evidences of indebtedness subject to the condition that payments under financing agreements shall begin no earlier than the first business day of the biennium following the biennium of issuance. Although the authority to issue evidences of indebtedness for specific projects may terminate, the commission may exercise all other powers granted to the commission under this chapter and may comply with any covenants entered into before the applicable termination date.

Source:

S.L. 1987, ch. 632, § 1; 2005, ch. 489, § 2.

54-17.2-02.2. Continuing appropriation.

The moneys received by the industrial commission from the sale of evidences of indebtedness and moneys received by the industrial commission or the state agencies and institutions from revenue generated by projects authorized by the legislative assembly, are hereby appropriated as a continuing appropriation for the construction or implementation of the authorized projects and payment of debt service on any evidences of indebtedness issued to finance the projects.

Source:

S.L. 1987, ch. 632, § 22; 2005, ch. 489, § 3.

54-17.2-03. Powers.

Except as otherwise limited by this chapter, the commission may:

  1. Enter into agreements, including financing agreements, with respect to its projects, operation, properties, and facilities, subject to agreements with holders of evidences of indebtedness.
  2. Sue and be sued.
  3. Make and enter into all contracts and all agreements necessary or incidental to the performance of its duties and the exercise of its powers.
  4. Acquire, own, hold, assign, exchange, lease, mortgage, or pledge or grant security interests in a project or projects in the exercise of its powers and the performance of its duties.
  5. Acquire, construct, reconstruct, rehabilitate, improve, alter, or repair, or provide for the acquisition, construction, reconstruction, improvement, alteration, or repair of any project and let, award, and enter into construction contracts, purchase orders, and other contracts with respect thereto in the manner determined by the commission.
  6. Sell, lease, assign, transfer, convey, exchange, mortgage, or otherwise dispose of or encumber any project or other property no longer necessary to carry out the public purposes of the commission and, in the case of the sale of any project or property, to accept a purchase money mortgage in connection therewith; and to lease, repurchase, or otherwise acquire and hold any project or property which the commission has sold, let, or otherwise conveyed, transferred, or disposed of.
  7. Grant options to purchase any project or to renew any financing agreement entered into by it in connection with any of its projects, on terms and conditions it deems advisable.
  8. Acquire by purchase, lease, or otherwise, on terms and conditions and in a manner as it determines to be proper, or, subject to chapter 32-15, by the exercise of the power of eminent domain, except with respect to lands owned by the state or any public lands, any land and other property or equipment, which it may determine is reasonably necessary for any project.
  9. Sell, lease, rent, sublease, or otherwise dispose of, to any person, firm, corporation, or limited liability company, any surplus space in any project over and above that sold, leased, rented, subleased, or otherwise disposed of to the state and establish and revise the purchase price, rents, or charges for the surplus space.
  10. Manage or operate any project or real or personal property or equipment related to a project whether owned or leased by the commission or any state agency, and enter into agreements with any state agency, any political subdivision, any local governmental agency, or with any person, firm, association, partnership, corporation, or limited liability company, either public or private, for the management of a project or related property.
  11. Consent to any modification, amendment, or revision of any contract, lease, or agreement to which the commission is a party, subject to the provisions of any contract with holders of evidences of indebtedness.
  12. Issue its evidences of indebtedness and to secure the same and provide for the rights of the holders thereof as provided in this chapter.
  13. Invest moneys of the commission not required for immediate use, including proceeds from the sale of any evidences of indebtedness in securities and other investments including evidences of indebtedness as the commission determines to be prudent, subject to any agreement with holders of evidences of indebtedness.
  14. Procure insurance against any loss in connection with its property and other assets and operations in such amounts and from such insurers as it deems desirable.
  15. Purchase evidences of indebtedness issued by the commission out of any funds or money not pledged to or necessary for some other purpose and hold, cancel, or resell such evidences of indebtedness, subject to any agreement with holders of evidences of indebtedness.
  16. Notwithstanding any other provision of law, issue evidences of indebtedness to implement the state facility energy improvement program under section 54-44.5-08.

Source:

S.L. 1985, ch. 571, § 3; 1993, ch. 54, § 106; 1999, ch. 458, § 1; 2005, ch. 489, § 4; 2007, ch. 293, § 36.

54-17.2-04. Purpose of commission.

The public purpose of the commission is to promote the general welfare of the citizens of this state by providing financing for projects for use primarily by the state.

Source:

S.L. 1985, ch. 571, § 4; 2005, ch. 489, § 5.

54-17.2-05. Transfer of state property to commission — Services by state agencies.

The state may transfer jurisdiction of or title to any property under its control to the commission. All state agencies may render any and all services to the commission as are within the area of their respective governmental functions and as may be required by the commission, including acting as agent for the commission in furtherance of performing its duties.

Source:

S.L. 1985, ch. 571, § 5.

54-17.2-05.1. Lease of state property to commission — Leaseback to state.

Notwithstanding any other provision in this chapter, the state may lease any project or other property to the commission, in lieu of a transfer of title, and the commission may sublease or leaseback any such project or property back to the state in connection with any financing by the commission under this chapter. Any reference in this chapter to the power or authority of the commission or the state to sell, convey, or lease any project or other property to the other must be deemed to include the power or authority to lease, sublease, or leaseback such project or property, as the case may be.

Source:

S.L. 2001, ch. 481, § 1.

54-17.2-06. Financing agreements with state agencies authorized — Commencement of payments under financing agreements.

The commission may enter into financing agreements for any project with the state. The financing agreements may be entered into contemporaneously with any financing to be done by the commission and payments under the terms of the financing agreement shall begin at any time after execution of the financing agreement.

Source:

S.L. 1985, ch. 571, § 6; 2005, ch. 489, § 6.

54-17.2-07. Terms, conditions, and payment under financing agreements — Automatic biennial extension provisions.

Financing agreements may be entered into by the commission:

  1. Upon terms, conditions, and payment provisions, subject to available appropriations, as in the judgment of the commission are in the public interest; and
  2. For an original term of not to exceed two years, with an automatic extension of the term of the financing agreement, unless specifically rejected by the legislative assembly, for a term of two years from the expiration of the original term of the financing agreement and for two years from the expiration of each extended term of the financing agreement, until the original term of the financing agreement has been extended for a total number of years to be agreed upon by the parties at a payment which, if paid for the original term and for each of the full number of years for which the term of the financing agreement may be extended, will amortize the total project cost of the project.

The payment must be paid at the times agreed upon by the parties to the financing agreement.

Source:

S.L. 1985, ch. 571, § 7; 2005, ch. 489, § 7.

54-17.2-08. State’s option to purchase — Conveyance on exercise of option.

A financing agreement must provide that the state may, at the expiration of the original or any extended term, purchase the project at a stated price, which must be the balance of the total project cost not amortized by the payments previously made by the state. The financing agreement must provide that if the option to purchase the project has been exercised or if the financing agreement has been extended for the full number of years which it may be extended, and all payments provided for in the financing agreement have been made and all project costs have been paid, the commission shall convey its interest in the project to the lessee.

Source:

S.L. 1985, ch. 571, § 8; 2005, ch. 489, § 8.

54-17.2-09. Insurance and credit enhancements added to payments.

A financing agreement may provide that the state shall provide insurance or, as additional payment under a financing agreement, pay the cost of insuring the project against loss or damage in such sum agreed to by the parties. The financing agreement may also provide for payment of the cost of such credit enhancements as in the judgment of the commission may be required for sale of the evidences of indebtedness, including bond insurance or letters of credit.

Source:

S.L. 1985, ch. 571, § 9; 2005, ch. 489, § 9.

54-17.2-10. Appropriations and funds from which payments are payable — Commission’s power to use or sell facilities for other purposes on nonpayment.

A financing agreement must provide that payments due under the financing agreement are payable solely from appropriations to be made by the legislative assembly for such payment, money available to the state not requiring appropriation, money generated from charges made for use of the project, any revenues derived by the commission from the operation of the project, or any combination of such moneys. The financing agreement may provide that the commission upon nonpayment is immediately entitled to the peaceable possession, access, and occupancy of the project and all appurtenances and easements appertaining thereto, and may maintain and operate the project or execute leases for the project or sell the project to political subdivisions of the state or private persons or entities for any purpose.

Source:

S.L. 1985, ch. 571, § 10; 2005, ch. 489, § 10.

54-17.2-11. Costs and reserves to be covered by rent and charges or other payments.

Payments under a financing agreement for a project must be sufficient at all times to pay any maintenance and operation costs for the project, unless the maintenance and operation costs are otherwise provided for under the financing agreement, the principal of and interest on any evidence of indebtedness, and a proportion of the administrative expenses of the commission as provided for by each financing agreement, and the reserves as may be provided in the resolutions authorizing the issuance of evidences of indebtedness.

Source:

S.L. 1985, ch. 571, § 11; 2005, ch. 489, § 11.

54-17.2-12. Tax exemption of commission’s property.

All property owned by the commission is exempt from taxation.

Source:

S.L. 1985, ch. 571, § 12.

54-17.2-13. Resolutions for evidences of indebtedness authorized — Maximum amount outstanding — Legislative approval required.

The commission may at any time provide by resolution for the issuance of evidences of indebtedness for the purpose of paying all or any part of the cost of one or any combination of projects; provided, however, that no project may be leased by the commission to the state, nor any evidences of indebtedness be sold to raise the funds for payment, acquisition, or construction of a project until the legislative assembly by law authorizes the specific project or projects and declares the project or projects to be in the public interest.

Source:

S.L. 1985, ch. 571, § 13.

54-17.2-14. Purposes for which evidences of indebtedness issue — Refunding and refinancing — Pledge of income.

To accomplish its purposes, the commission may borrow and issue and sell evidences of indebtedness in an amount or amounts as the commission may determine, but not in excess of legislative authorization, plus costs of issuance, financing, interest during construction, and any evidences of indebtedness funded reserve funds required by agreements with or for the benefit of holders of evidences of indebtedness for the purpose of acquiring, constructing, completing, or remodeling, maintaining, or equipping any project or projects. The commission may refund and refinance the evidences of indebtedness from time to time as often as it is advantageous and in the public interest to do so and may pledge any and all income of the commission, and any revenues derived by the commission or the state from a project or any combination thereof, to secure payment or redemption of the evidences of indebtedness.

Source:

S.L. 1985, ch. 571, § 14.

54-17.2-15. Evidences of indebtedness authorized — Interest rates — Exemption from taxation — Term.

The commission, pursuant to legislative authorization, may, by resolution, authorize preparation, sale, and issuance of evidences of indebtedness of the commission in amounts and at such times, in fully registered form, with final maturity of not more than thirty years. The evidences of indebtedness may bear the fixed or variable rate or rates of interest and may be sold at the price or prices as the commission may provide at an average net interest cost not in excess of twelve percent per annum for evidences of indebtedness sold at private sale, except that there is no interest rate ceiling on issues sold at public sale or to the state. The evidences of indebtedness are not subject to taxation by the state or by any county, municipality, or political subdivision in the state. The evidences of indebtedness are not indebtedness of the state or of any officer or agent of the state within the meaning of any statutory or constitutional provision.

Source:

S.L. 1985, ch. 571, § 15.

54-17.2-16. Revenues, appropriations, funds, and income from which evidences of indebtedness payable.

Evidences of indebtedness are payable solely from:

  1. Revenues to be derived by the commission from the operation of a project or projects;
  2. Payments from the state pursuant to financing agreements, or from leases to others as provided by this chapter;
  3. Funds appropriated by the legislative assembly; and
  4. Any other legally available revenue, income, or funds available to the commission.

Source:

S.L. 1985, ch. 571, § 16; 2005, ch. 489, § 12.

54-17.2-17. Covenants and contracts with holders of evidences of indebtedness.

In any resolution of the commission relating to the issuance of any evidence of indebtedness, the commission may provide by covenants with the holders of the evidences of indebtedness, to:

  1. Secure the evidences of indebtedness.
  2. Covenant against pledging all or any part of its revenues, receipts, or proceeds, or against mortgaging or leasing all or any part of its real or personal property when owned or thereafter acquired or against permitting or suffering any lien. Any pledge of revenues, receipts, moneys, funds, levies, sales agreements, service contracts, or other property or instruments made by the commission are valid and binding from the time the pledge is made. The revenues, receipts, moneys, funds, or other property pledged and thereafter received by the commission are immediately subject to the lien of the pledge without any physical delivery or further act, and the lien of any pledge is valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the commission irrespective of whether the parties have notice of the claim. Neither the resolution nor any other instrument by which a pledge under this section is created need be filed or recorded except in the records of the commission.
  3. Covenant as to any evidences of indebtedness to be issued and the limitations on the evidence of indebtedness and their terms and conditions as to the custody, application, investment, and disposition of their proceeds, as to the sources and methods of the payment, and as to the rank or priority of the evidence of indebtedness.
  4. Provide for the replacement of lost, stolen, destroyed, or mutilated evidences of indebtedness.
  5. Provide for the rights and liabilities, power and duties arising upon the breach of any covenant, condition, or obligation; prescribe the events of default and the terms and conditions upon which any or all of the evidences of indebtedness of the commission become or may be declared due and payable before maturity; and provide the terms and conditions upon which the declaration and its consequences may be waived.
  6. Vest in a trustee or trustees within or without the state such property, rights, powers, and duties in trust as the commission may determine.
  7. Make covenants other than or in addition to the covenants authorized by this chapter of like or different character, and to make the covenants to do or refrain from doing acts and things as may be necessary, or convenient and desirable, to better secure evidences of indebtedness or which, in the absolute discretion of the commission will tend to make its evidences of indebtedness more marketable, notwithstanding that the covenants, acts, or things may not be enumerated in this chapter.

Source:

S.L. 1985, ch. 571, § 17.

54-17.2-18. Validity of signature by officers.

Evidences of indebtedness must be executed by a member or members of the commission as designated by the commission, or by facsimile signature and the manual signature of a designated authenticating agent. Any evidences of indebtedness bearing the signature of members in office at the date of signing are valid and binding for all purposes notwithstanding that before delivery any person whose signature appears on the evidences of indebtedness has ceased to be a member.

Source:

S.L. 1985, ch. 571, § 18.

54-17.2-19. Restrictions on obligation stated on face of evidences of indebtedness.

Evidences of indebtedness must state upon their face that they are payable solely from moneys derived by the commission as provided in this chapter. Evidences of indebtedness must state upon their face that they do not constitute an obligation of the state within the meaning of any statutory or constitutional provision.

Source:

S.L. 1985, ch. 571, § 19; 2005, ch. 489, § 13.

54-17.2-20. Disposition of income — Building authority fund.

The proceeds of and any revenue derived from the sale of evidences of indebtedness, charges, fees, or rentals, and all other revenue derived from any project undertaken pursuant to this chapter must be held in trust for the purposes of this chapter, in a special fund known as the building authority fund. Disbursements shall be made from the fund upon the resolution of the commission. The building authority fund established by this chapter may contain such accounts as authorized by the commission.

Source:

S.L. 1985, ch. 571, § 20.

54-17.2-21. Allocation of sales, use, and motor vehicle excise tax revenues to capital construction fund. [Repealed]

Repealed by S.L. 1993, ch. 38, § 19.

54-17.2-22. Capital construction account. [Repealed]

Repealed by S.L. 1993, ch. 38, § 19.

54-17.2-23. State building authority lease payments — Limitation.

The general fund amount of lease payments for a biennium associated with capital construction projects financed by the industrial commission acting as the state building authority may not exceed the amount equal to a portion of sales, use, and motor vehicle excise tax collections equal to ten percent of an amount, determined by multiplying the quotient of one percent divided by the general sales tax rate that was in effect when the taxes were collected, times the net sales, use, and motor vehicle excise tax collections under chapters 57-39.2, 57-40.2, and 57-40.3. The computation for the authorized general fund lease payments for a biennium must be based on the projected sales, use, and motor vehicle excise tax collections presented to the legislative assembly at the close of the most recently adjourned regular legislative session. Lease payment amounts for any particular project must be calculated as of the date the related bonds are issued.

Source:

S.L. 1993, ch. 38, § 18; 1995, ch. 52, § 5; 1997, ch. 32, § 21; 2001, ch. 481, § 2.

CHAPTER 54-17.3 Paleontological Resource Protection

54-17.3-01. Definitions.

As used in sections 54-17.3-01 through 54-17.3-08, unless the context otherwise requires:

  1. “Commission” means the North Dakota industrial commission.
  2. “Paleontological resource” means any significant remains, trace, or imprint of a plant or animal that has been preserved by natural causes in earth materials and the localities in which they are found.

Source:

S.L. 1989, ch. 645, § 1.

54-17.3-02. Jurisdiction of the commission.

The commission, acting through the office of the state geologist, has jurisdiction and authority to enforce the provisions of sections 54-17.3-01 through 54-17.3-08. The commission has authority to make such investigations as it deems proper to determine whether facts exist which justify action by the commission. The commission has authority to adopt rules and issue orders to effectuate the provisions of sections 54-17.3-01 through 54-17.3-08.

Source:

S.L. 1989, ch. 645, § 2.

54-17.3-03. Permit required.

A permit must be obtained by any person, organization, institution, or company engaged on one’s own behalf or on behalf of another to:

  1. Identify or evaluate paleontological resources to satisfy state or federal requirements; or
  2. Investigate, excavate, collect, or otherwise record paleontological resources on land owned by the state or its political subdivisions.

A permit may be issued upon filing of an application that contains information prescribed by the state geologist and upon the applicant’s payment to the state geologist of the fee set by the state geologist. The state geologist may waive the fee requirement if the applicant is an instrumentality of the state. A permit may be issued only for the activities and at the locations described in the permit application.

Source:

S.L. 1989, ch. 645, § 3.

54-17.3-04. Permit — Duration — Revocation.

A permit issued under sections 54-17.3-01 through 54-17.3-08 expires on December thirty-first of the year in which it is issued. A permit may be extended upon written request to the state geologist before expiration of the permit and upon payment to the state geologist of the fee set by the state geologist. A permit may be revoked at any time if it appears the permittee secured the permit through false information or that any activities performed by the permittee are being conducted negligently or improperly, or without regard for the careful preservation and conservation of the paleontological resource.

Source:

S.L. 1989, ch. 645, § 4.

54-17.3-05. Coordination of quaternary fossil finds.

The state geologist shall notify the director of the state historical society of all quaternary paleontological finds reported to the state geologist which potentially or actually contain cultural resources. The treatment of sites containing both paleontological remains and cultural resources must be handled in a manner jointly agreed upon by the state geologist and the director. The term cultural resources has the same definition as the term is defined in section 55-03-00.1.

Source:

S.L. 1989, ch. 645, § 5; 2001, ch. 503, § 14.

54-17.3-06. Protection of paleontological specimens and sites.

Any paleontological resource found or located upon any land owned by the state or its political subdivisions may not be destroyed, defaced, altered, removed, or otherwise disposed of in any manner without approval of the state geologist. The state geologist shall determine the significance of the paleontological resource to the understanding of the paleontologic and geologic history of North Dakota. It is the responsibility of the state and its political subdivisions to cooperate with the state geologist in identifying and implementing any reasonable alternative to destruction or alteration of any paleontological resource.

Source:

S.L. 1989, ch. 645, § 6.

54-17.3-07. Transfer of paleontological resources.

The state geologist may exchange with or transfer to universities, colleges, governmental bodies, and scientific institutions duplicate paleontological resources it holds. The state historical society must receive preference for the receipt of duplicate paleontological resources.

Source:

S.L. 1989, ch. 645, § 7; 2001, ch. 503, § 15.

54-17.3-08. Violation of sections 54-17.3-01 through 54-17.3-08 — Penalty.

Any person violating any provision of sections 54-17.3-01 through 54-17.3-08 is guilty of a class B misdemeanor and shall forfeit to the state all paleontological specimens discovered by the violator at that site. Any such violation is considered to have been committed in the county where the exploration, collecting, or excavation for paleontological resources was undertaken.

Source:

S.L. 1989, ch. 645, § 8.

CHAPTER 54-17.4 Geological Survey

54-17.4-01. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Commission” means the North Dakota industrial commission.
  2. “State geologist” means the North Dakota state geologist.
  3. “Survey” means the North Dakota geological survey, a division of the department of mineral resources.

Source:

S.L. 1989, ch. 646, § 1; 2005, ch. 42, § 30.

54-17.4-02. Survey — Responsibilities.

There is created a North Dakota geological survey. The survey has the following responsibilities:

  1. Serve as the primary source of geological information in the state.
  2. Investigate, describe, and interpret the geological setting of the state with special reference to the economic products, geological hazards, and energy resources of the state’s geology.
  3. Conduct investigations designed to promote public understanding of the state’s natural setting and natural resources.
  4. Conduct research relative to the exploration, production, and regulation of oil, gas, coal, and other mineral resources of the state.
  5. Conduct investigations and review externally prepared reports pertaining to geological aspects of the health and safety of the citizens and environment of the state.
  6. Provide geological information contributing to the development of public health policies and to the use and management of natural resources.
  7. Publish bulletins, circulars, maps, and other related materials that make available the results of the geological research and technical studies.
  8. Provide educational information about the geology of the state to the public.
  9. Operate and maintain a public repository for books, reports, maps, and other publications regarding the geology and mineral resources of the state.
  10. Operate and maintain a public repository for fossil and rock specimens, rock cores, well cuttings, and associated data.
  11. Provide technical advice and assistance concerning the geology of the state to local, state, and federal governmental agencies and to state educational institutions.
  12. Aid in the regulation of the state’s natural resources by providing the resource assessment and evaluation information necessary to create and maintain effective regulatory policy.
  13. Investigate the kind, amount, and availability of the various mineral substances contained in state-owned lands, so as to contribute to the most effective and beneficial administration of these lands for the state.
  14. Consider such other scientific and economic questions in the field of geology as in the judgment of the state geologist is deemed of value to the people of the state.
  15. Carry out any other responsibilities assigned to it by the legislative assembly.

Source:

S.L. 1989, ch. 646, § 2; 1995, ch. 510, § 1; 2021, ch. 402, § 1, eff August 1, 2021.

54-17.4-03. Survey — Direction and supervision.

The survey is under the direction and control of the commission.

Source:

S.L. 1989, ch. 646, § 3.

54-17.4-04. Survey — Location.

The commission shall decide the location of the survey. However, the survey shall maintain a core and sample library at the university of North Dakota with associated core receiving, processing, and analytical equipment. The survey, in cooperation with the university of North Dakota, shall maintain a geologic literature library and archives at the university of North Dakota. The survey may also maintain a working geologic literature library at a site selected by the industrial commission.

Source:

S.L. 1989, ch. 646, § 4.

54-17.4-05. State geologist — Qualifications — Selection — Salary.

There is created the position of state geologist.

  1. The state geologist’s qualifications must include a doctor of philosophy degree in geology from an accredited university or college or equivalent geological experience, demonstrated competency in administration, and five years of practical experience in the field of geology.
  2. The director of mineral resources shall either appoint the state geologist or carry out the duties of the state geologist along with the duties of director of mineral resources. Prior to appointment of a state geologist the director of mineral resources may appoint an acting state geologist.
  3. The state geologist is under the direction and control of the director of mineral resources.

Source:

S.L. 1989, ch. 646, § 5; 2005 ch. 42, § 31.

54-17.4-06. State geologist — Authority.

The state geologist is the head of the survey and shall exercise the powers of the office and be responsible for the execution of its duties.

Source:

S.L. 1989, ch. 646, § 6; 2005, ch. 42, § 32.

54-17.4-07. State geologist — Grants, funds, and contracts.

The state geologist, with the approval of the director of mineral resources, may accept and expend money from and enter into contracts with federal, state, local, or other public entities to carry out the purposes of this chapter or to provide geological services. If such funds exceed appropriations made by the legislative assembly, the director of mineral resources shall seek emergency commission approval for their expenditure.

Source:

S.L. 1989, ch. 646, § 7; 2005, ch. 42, § 33.

54-17.4-08. State geologist — Acquisition of geological and geophysical data — Confidentiality.

The state geologist has the authority:

  1. To acquire geological and geophysical data including seismic, magnetic, and gravity data by purchase or by acceptance of donated proprietary data.
  2. To provide for the confidentiality of geological and geophysical data when requested by the seller or donor until the seller or donor notifies the state geologist that confidentiality is no longer required. Confidential data may be used only by the state geologist and staff members designated by the state geologist.

Source:

S.L. 1989, ch. 646, § 8.

54-17.4-09. State geologist — Specimens collected — Exhibited — Exchanged.

The state geologist shall cause proper specimens, skillfully prepared, secured, and labeled, of rocks, minerals, ores, coals, fossils, and other earth materials discovered or examined in the course of the geological surveys to be preserved for public inspection free of cost. The state geologist, when practicable, shall cause duplicate specimens in reasonable numbers and quantities to be collected and preserved for the purpose of exchange with or transfer to universities, colleges, governmental bodies, and scientific institutions.

Source:

S.L. 1989, ch. 646, § 9.

54-17.4-09.1. Fossil excavation and restoration fund — Continuing appropriation.

A special fund known as the fossil excavation and restoration fund must be maintained in the state treasury. Funds received by the geological survey for participation in a public fossil dig, fossil excavation, fossil restoration, and fossil exhibit must be deposited in the fund. All moneys in the fund are appropriated on a continuing basis to the geological survey for the purpose of public fossil dig expenses, fossil excavation, fossil restoration, and fossil exhibit development. The provisions of section 54-27-10 do not apply to appropriations from this fund.

Source:

S.L. 1997, ch. 44, § 12; 2021, ch. 403, § 1, eff July 1, 2021.

54-17.4-10. State geologist — Purchase and sale of maps — Appropriation.

The state geologist is authorized to purchase cartographic products from the federal government for the purpose of reselling the products to the public at a fee set by the state geologist. All moneys collected from the sale of the products must be deposited in the cartographic products fund. This fund must be maintained as a special fund and all moneys transferred into the fund are hereby appropriated and must be used and disbursed solely for the purpose of paying the state geologist’s cost of purchasing and reselling the products.

Source:

S.L. 1989, ch. 646, § 10.

54-17.4-11. State geologist — Colleges and universities — Cooperation.

The board of higher education and the survey shall develop a cooperative agreement for the sharing of books, equipment, and other physical resources.

Source:

S.L. 1989, ch. 646, § 11.

54-17.4-12. State geologist — Collection of global positioning system data — Fee. [Repealed]

Source:

S.L. 1995, ch. 510, § 2; Repealed by 2021, ch. 402, § 2, eff August 1, 2021.

54-17.4-13. Geologic data preservation fund — Continuing appropriation.

The geologic data preservation fund may be used to defray the expenses of preserving geologic data compiled by the commission and disseminating the data to county, state, and federal departments and agencies and members of the general public. All moneys collected for dissemination of geologic data under this section must be deposited in the geologic data preservation fund. This fund must be maintained as a special fund in the state treasury and all moneys transferred into the fund are appropriated and must be used and disbursed solely for the purpose of paying the current cost of providing information as determined by the commission based on actual costs.

Source:

S.L. 2007, ch. 314, § 5.

CHAPTER 54-17.5 Lignite Research, Development and Marketing

54-17.5-01. Declaration of findings and public purpose.

The legislative assembly finds and declares that North Dakota’s lignite industry produces approximately thirty million tons of lignite annually, contributing to our state’s and nation’s energy independence by generating electricity for more than two million people in the northern great plains region and by producing synthetic natural gas from coal that heats three hundred thousand homes and businesses in eastern states, which is equivalent to over twenty thousand barrels of oil per day. The legislative assembly further finds and declares that North Dakota’s lignite industry generates over twenty-eight thousand direct and indirect jobs for North Dakota, nearly three billion dollars in annual business volume, and over one hundred three million dollars in annual tax revenue. The legislative assembly further finds and declares that it is an essential governmental function and public purpose to assist with the development and wise use of North Dakota’s vast lignite resources by supporting a lignite research, development, and marketing program that promotes economic, efficient, and clean uses of lignite and products derived from lignite in order to maintain and enhance development of North Dakota lignite and its products; support educational activities relating to the lignite industry; preserve and create jobs involved in the production and utilization of North Dakota lignite; ensure economic stability, growth, and opportunity in the lignite industry; and maintain a stable and competitive tax base for our state’s lignite industry for the general welfare of North Dakota. The legislative assembly further finds and declares that development of North Dakota’s lignite resources must be conducted in an environmentally sound manner that protects our state’s air, water, and soil resources as specified by applicable federal and state law.

Source:

S.L. 1991, ch. 589, § 2; 2009, ch. 42, § 13.

54-17.5-02. Lignite research council — Compensation — Appointment of members.

The industrial commission shall consult with the lignite research council established by executive order in matters of policy affecting the administration of the lignite research fund. Section 44-03-04 does not apply to members of the council appointed by the governor.

Source:

S.L. 1991, ch. 589, § 2; 2005, ch. 487, § 3; 2015, ch. 14, § 19, eff July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 19 of chapter 14, S.L. 2015 became effective July 1, 2015.

54-17.5-03. Priority projects, processes, and activities.

In evaluating applications for funding from the lignite research fund for North Dakota’s lignite research, development, and marketing program, the industrial commission and lignite research council shall give priority to those projects, processes, or activities that will preserve existing jobs and production, which will create the greatest number of new jobs and most additional lignite production and economic growth potential in coal-producing counties or those counties with recoverable coal reserves, which will attract matching private industry investment equal to at least fifty percent or more of the total cost, and which will result in development and demonstration of a marketable lignite product or products with a high level of probability of near term commercialization. For marketing applications, priority must be given to those projects, processes, or activities that develop baseline information, implement specific marketing strategies, and otherwise contribute to the effective marketing of lignite and its products. For reclamation applications, priority must be given to those projects, processes, or activities that will reduce unnecessary regulatory costs and assist in effectively reclaiming surface mined land to its original or better productivity as soon as possible. Any projects, activities, or processes selected by the commission for funding must achieve the priorities and purposes of the program, must have undergone technical review and be determined to have technical merit, must have generated matching private industry investment, and must have received a favorable lignite research council recommendation.

Source:

S.L. 1991, ch. 589, § 2; 1997, ch. 450, § 1.

54-17.5-04. Industrial commission powers.

The industrial commission is hereby granted all powers necessary or appropriate to carry out and effectuate the purposes of this chapter, including the power:

  1. To make grants or loans, and to provide other forms of financial assistance as necessary or appropriate, to qualified persons for research, development, and marketing projects, processes, or activities directly related to lignite and products derived from lignite.
  2. To make and execute contracts and all other instruments necessary or convenient for the performance of its powers and functions under this chapter, including the authority to contract for the administration of the lignite research, development, and marketing program.
  3. To issue evidences of indebtedness as authorized in this chapter and to borrow money in an amount not to exceed six million dollars from the Bank of North Dakota for a period not to exceed five years on the terms and conditions as the Bank of North Dakota and the industrial commission may approve without the necessity of establishing or maintaining any reserve fund as otherwise required by section 54-17.5-05.
  4. To receive and accept aid, grants, or contributions of money or other things of value from any source to be held, used, and applied to carry out the purposes of this chapter, subject to the conditions upon which the aid, grants, or contributions are made, including aid, grants, or contributions from any department, agency, or instrumentality of the United States for any purpose consistent with the provisions of this chapter.
  5. To issue and sell evidences of indebtedness in an amount or amounts as the commission may determine, plus costs of issuance, financing, and any evidences of indebtedness funded reserve funds required by agreements with or for the benefit of holders of the evidences of indebtedness for the purpose of funding research, development, and marketing projects, processes, or activities directly related to lignite and products derived from lignite.
  6. To refund and refinance its evidences of indebtedness from time to time as often as it is advantageous and in the public interest to do so, and to pledge any and all income and revenues derived by the commission under this chapter or from a project, process, or activity funded under this chapter to secure payment or redemption of the evidences of indebtedness.

Source:

S.L. 1991, ch. 589, § 2; 2007, ch. 413, § 4.

54-17.5-05. Evidences of indebtedness.

  1. Evidences of indebtedness issued by the industrial commission under this chapter are payable solely from:
    1. Appropriations by the legislative assembly from moneys in the lignite research fund.
    2. Revenues or income that may be received by the commission from lignite projects, processes, or activities funded under this chapter with the proceeds of the commission’s evidences of indebtedness.
    3. Revenues or income received by the commission under this chapter from any source.
  2. Not later than July fifteenth of each year preceding the biennial session of the legislative assembly, the industrial commission shall submit to the office of the budget a request for the amount required to be appropriated from the lignite research fund to pay debt service on outstanding evidences of indebtedness during the following biennium.
  3. The evidences of indebtedness are not subject to taxation by the state or any of its political subdivisions and are not debt of the state or of any officer or agent of the state within the meaning of any statutory or constitutional provision. The evidences of indebtedness must be executed by the manual or facsimile signature of a member or members of the commission and the manual signature of a designated authenticating agent. Any evidences of indebtedness bearing the signature of a member of the commission in office at the date of signing are valid and binding for all purposes notwithstanding that before delivery the person has ceased to be a member of the commission.
  4. The industrial commission shall establish and maintain a reserve fund for evidences of indebtedness issued under this chapter. There must be deposited in the reserve fund:
    1. All moneys appropriated by the legislative assembly to the commission for the purpose of the reserve fund.
    2. All proceeds of evidences of indebtedness issued under this chapter required to be deposited in the reserve fund by the terms of any contract between the commission and the holders of its evidences of indebtedness or any resolution of the commission concerning the proceeds of its evidences of indebtedness.
    3. Any lawfully available moneys of the commission which it may determine to deposit in the reserve fund.
    4. Any moneys from any other source made available to the commission for deposit in the reserve fund.
  5. Moneys in the reserve fund may be expended only to pay the principal of and interest on evidences of indebtedness, including payment of any premium required to be paid when evidences of indebtedness are redeemed prior to maturity, and sinking fund installments as the same become due and payable.
  6. Moneys in the reserve fund may only be withdrawn in conformity with the terms of any contract between the commission and the holders of its evidences of indebtedness or any resolution of the commission concerning the proceeds of its evidences of indebtedness.
  7. The industrial commission must include in its biennial request to the office of the budget the amount, if any, necessary to restore the reserve fund to an amount equal to the amount required to be deposited in the fund by the terms of any contract or resolution described in subdivision b of subsection 4. The legislative assembly may appropriate such amount from the lignite research fund to the commission for deposit in the reserve fund. If sufficient moneys are not available in the lignite research fund, the legislative assembly may appropriate any amount necessary out of any moneys in the general fund or any special funds in the state treasury not otherwise appropriated.

Source:

S.L. 1991, ch. 589, § 2; 1993, ch. 516, § 1.

54-17.5-06. Access to commission records.

  1. Materials and data submitted to, or made or received by, the commission, to the extent that the commission determines the materials or data consist of trade secrets or commercial, financial, or proprietary information of individuals or entities applying to or contracting with the commission or receiving commission services under this chapter are subject to section 44-04-18.4.
  2. A person or entity must file a request with the commission to have material designated as confidential under subsection 1. A request to have material designated as confidential is exempt as defined in section 44-04-17.1. The request must contain any information required by the commission, and must include at least the following:
    1. A general description of the nature of the information sought to be protected.
    2. An explanation of why the information derives independent economic value, actual or potential, from not being generally known to other persons.
    3. An explanation of why the information is not readily ascertainable by proper means by other persons.
    4. A general description of any person or entity that may obtain economic value from disclosure or use of the information, and how the person or entity may obtain this value.
    5. A description of the efforts used to maintain the secrecy of the information.
  3. Any information submitted under subsection 2 is confidential. The commission shall examine the request and determine whether the information is relevant to the matter at hand and is a trade secret under the definition in section 47-25.1-01 or 44-04-18.4. If the commission determines the information is either not relevant or not a trade secret, the commission shall notify the requester and the requester may ask for the return of the information and request within ten days of the notice. If no return is sought, the information and request are a public record.
  4. The names or identities of independent technical reviewers on any project or program and the names of individual lignite council members making recommendations are confidential and may not be disclosed by the commission.

Source:

S.L. 1991, ch. 589, § 2; 1993, ch. 517, § 1; 2007, ch. 413, § 5.

CHAPTER 54-17.6 Oil and Gas Research Council

54-17.6-01. Definitions.

  1. “Commission” means the North Dakota industrial commission.
  2. “Council” means the oil and gas research council.

Source:

S.L. 2003, ch. 472, § 1.

54-17.6-02. Oil and gas research council purposes.

There is created the oil and gas research council. The purpose of the council is to coordinate a program designed to demonstrate to the general public the importance of the state oil and gas exploration and production industry, to encourage and promote the wise and efficient use of energy, to promote environmentally sound exploration and production methods and technologies, to develop the state’s oil and gas resources, to support research and educational activities concerning the oil and natural gas exploration and production industry, and to promote innovation in safety, enhancement of environment, and increase in education concerning the distribution of petroleum products.

Source:

S.L. 2003, ch. 472, § 1; 2011, ch. 399, § 1.

54-17.6-03. Commission to operate council.

The commission shall operate, manage, and control the council.

Source:

S.L. 2003, ch. 472, § 1.

54-17.6-04. Powers and duties of commission in managing and operating council.

The commission is granted all the powers necessary or appropriate to carry out and effectuate the purposes of this chapter, including the power to:

  1. Make grants or loans, and to provide other forms of financial assistance as necessary or appropriate, to qualified persons for research, development, marketing, and educational projects, and processes or activities directly related to the oil and gas exploration, production, or refining industry, or the petroleum marketing industry;
  2. Enter into contracts or agreements to carry out the purposes of this chapter, including authority to contract for the administration of the oil and gas research, development, marketing, and educational program;
  3. Keep accurate records of all financial transactions performed under this chapter;
  4. Cooperate with any private, local, state, or national commission, organization, or agent, or group and to make contracts and agreements for programs benefiting the oil and gas industry;
  5. Accept donations, grants, contributions, and gifts from any public or private source and deposit such in the oil and gas research fund; and
  6. Make and explore orders, rules, and regulations necessary to effectuate the purposes of this chapter.

Source:

S.L. 2003, ch. 472, § 1; 2011, ch. 399, § 2.

54-17.6-05. Oil and gas research council — Members.

  1. The oil and gas research council is composed of seven members, four of whom must currently be engaged in and have at least five years of active experience in the oil and natural gas exploration and production industry. The council consists of:
    1. Four members appointed by the governor from a list provided by the North Dakota petroleum council. The governor may reject the list and request the council to submit a new list until the appointments are made.
    2. One member appointed by the governor from a list provided by the North Dakota association of oil and gas producing counties. The governor may reject the list and request the association to submit a new list until the appointment is made.
    3. The executive director of the North Dakota petroleum council or the executive director’s designee.
    4. A county commissioner from an oil producing county appointed by the governor.
    5. The director of the oil and gas division and the state geologist shall serve on the council as advisory nonvoting members.
  2. Subject to subsection 6, the terms of office for members of the council are three years but of those first appointed, two serve for one year, two serve for two years, and three serve for three years.
  3. The council shall select its chairman from among its members.
  4. The council shall have at least one regular meeting each year and such additional meetings as the chairman determines necessary at a time and place to be fixed by the chairman. Special meetings must be called by the chairman on written request of any three members. Five members constitute a quorum.
  5. The council shall recommend to the commission the approval of grants, loans, or other financial assistance necessary or appropriate for funding, research, development, marketing, and educational projects or activities and any other matters related to this chapter.
  6. Members of the council appointed by the governor serve at the pleasure of the governor.

Source:

S.L. 2003, ch. 472, § 1; 2005, ch. 487, § 4; 2007, ch. 463, § 1; 2013, ch. 45, § 24.

Effective Date.

The 2013 amendment of this section by section 24 of chapter 45, S.L. 2013 became effective July 1, 2013.

54-17.6-06. Access to council records.

  1. Materials and data submitted to, or made or received by, the council or commission, to the extent that the council determines the materials or data consist of trade secrets or commercial, financial, or proprietary information of individuals or entities applying to or contracting with the council or receiving council services under this chapter, are not public records subject to section 44-04-18 and section 6 of article XI of the Constitution of North Dakota, and are subject to section 44-04-18.4.
  2. A person or entity must file a request with the council or commission to have material designated as confidential under subsection 1. The request must contain any information required by the council and must include at least the following:
    1. A general description of the nature of the information sought to be protected.
    2. An explanation of why the information derives independent economic value, actual or potential, from not being generally known to other persons.
    3. An explanation of why the information is not readily ascertainable by proper means by other persons.
    4. A general description of any person or entity that may obtain economic value from disclosure or use of the information, and how the person or entity may obtain this value.
    5. A description of the efforts used to maintain the secrecy of the information.
  3. Any request under subsection 2 is confidential. The council shall examine the request and determine whether the information is relevant to the matter at hand and is a trade secret under the definition in section 47-25.1-01 or 44-04-18.4. If the council determines the information is either not relevant or not a trade secret, the council shall notify the requester and the requester may ask for the return of the information and request within ten days of the notice. If no return is sought, the information and request are a public record.
  4. The names or identities of independent technical reviewers on any project or program and the names of council members making recommendations are confidential, may not be disclosed by the council, and are not public records subject to section 44-04-18 or section 6 of article XI of the Constitution of North Dakota.

Source:

S.L. 2003, ch. 472, § 1.

CHAPTER 54-17.7 Pipeline Authority

54-17.7-01. North Dakota pipeline authority.

There is created the North Dakota pipeline authority, which shall be governed by the industrial commission.

Source:

S.L. 2007, ch. 464, § 2.

54-17.7-02. Definitions.

As used in this chapter:

  1. “Authority” means the industrial commission acting as the North Dakota pipeline authority.
  2. “Commission” means the North Dakota industrial commission.
  3. “Energy-related commodities” means any substance, element, or compound, either gaseous, liquid, or solid, associated with the production, refining, or processing of renewable energy, crude oil, natural gas, coal, or coal byproducts, including oil, natural gas liquids, refined petroleum products, carbon dioxide, hydrogen, ethanol, propane, butane, ethane, methane, sulfur, helium, synthetic fuels, nitrogen, biodiesel, green diesel, and liquids made from coal.
  4. “Natural gas” means hydrocarbons or nonhydrocarbons that at atmospheric conditions of temperature and pressure are in a gaseous phase.
  5. “Notice of intent” means the notice a person delivers to the authority indicating willingness to construct pipeline facilities contemplated by the authority or to provide services fulfilling the need for such pipeline facilities.
  6. “Pipeline facilities” means pipelines, pumps, compressors, storage, and all other facilities, structures, and properties incidental and necessary or useful in the interconnection of pipelines or the transportation, distribution, and delivery of energy-related commodities to points of sale or consumption or to the point or points of distribution for consumption located within and without this state.
  7. “Project area” means the geographic area in which construction of a pipeline facility contemplated by the authority is likely to occur.

Source:

S.L. 2007, ch. 464, § 2; 2009, ch. 473, § 1; 2011, ch. 460, § 6.

54-17.7-03. Pipeline authority purposes.

The authority is created for the purpose of diversifying and expanding the North Dakota economy by facilitating development of pipeline facilities to support the production, transportation, and utilization of North Dakota energy-related commodities, thereby increasing employment, stimulating economic activity, augmenting sources of tax revenue, fostering economic stability, and improving the state’s economy.

Source:

S.L. 2007, ch. 464, § 2.

54-17.7-04. Powers.

The authority has all powers necessary to carry out the purposes of this chapter, including the power to:

  1. Make grants or loans and to provide other forms of financial assistance as necessary or appropriate for the purposes of this chapter.
  2. Make and execute contracts and all other instruments necessary or convenient for the performance of the authority’s powers and functions.
  3. Acquire, purchase, hold, use, lease, license, sell, transfer, and dispose of an undivided or other interest in or the right to capacity in any pipeline system or systems, including interconnection of pipeline systems, within or without the state of North Dakota in order to facilitate the production, transportation, distribution, or delivery of energy-related commodities produced in North Dakota as a purchaser of last resort. The obligation of the state may not exceed ten percent of the pipeline authority’s acquisition or purchase of a right to capacity in any pipeline system or systems, or interconnection of pipeline systems, and the state’s obligation is limited to the funding available from the oil and gas research fund.
  4. Borrow money and issue evidences of indebtedness as provided in this chapter.
  5. Receive and accept aid, grants, or contributions of money or other things of value from any source, including aid, grants, or contributions from any department, agency, or instrumentality of the United States, subject to the conditions upon which the aid, grants, or contributions are made and consistent with the provisions of this chapter.
  6. Issue and sell evidences of indebtedness in an amount or amounts as the authority may determine, but not to exceed eight hundred million dollars, plus costs of issuance, credit enhancement, and any reserve funds required by agreements with or for the benefit of holders of the evidences of indebtedness for the purposes for which the authority is created under this chapter, provided that the amount of any refinancing shall not be counted toward such eight hundred million dollar limitation to the extent it does not exceed the outstanding amount of the obligations being refinanced.
  7. Refund and refinance its evidences of indebtedness.
  8. Make and execute interest rate exchange contracts.
  9. Enter lease-sale contracts.
  10. Pledge any and all revenues derived by the authority under this chapter or from a pipeline facility, service, or activity funded under this chapter to secure payment or redemption of the evidences of indebtedness.
  11. To the extent and for the period of time necessary for the accomplishment of the purposes for which the authority was created plan, finance, develop, acquire, own in whole or in part, lease, rent, and dispose of pipeline facilities.
  12. Enter contracts to construct, maintain, and operate pipeline facilities.
  13. Consult with the public service commission, regional organizations, and any other relevant state or federal authority or persons as necessary and establish reasonable fees, rates, tariffs, or other charges for pipeline facilities and all services rendered by the authority.
  14. Lease, rent, and dispose of pipeline facilities owned pursuant to this chapter.
  15. Investigate, plan, prioritize, and propose corridors for the transport of energy-related commodities.
  16. Make and execute contracts and all other instruments necessary or convenient for the performance of the authority’s powers and functions with other state pipeline authorities.
  17. Cooperate with and participate in joint projects, research projects, and other activities with other state pipeline authorities and participate in and join regional pipeline organizations.
  18. Do any and all things necessary or expedient for the purposes of the authority provided in this chapter.

Source:

S.L. 2007, ch. 464, § 2; 2009, ch. 473, § 2.

54-17.7-05. Authority may act.

  1. Before exercising its powers to construct pipeline facilities granted to it in this chapter except for subsection 3 of section 54-17.7-04, the authority shall publish in a newspaper of general circulation in North Dakota and in a newspaper in the project area a notice describing the need for pipeline facilities contemplated by the authority. A person willing to construct the pipeline facilities or furnish services to satisfy the needs described in the notice has a period of one hundred eighty days from the date of last publication of the notice within which to delivery to the authority a notice of intent. After receipt of a notice of intent, the authority may not exercise its powers to construct pipeline facilities unless the authority finds that exercising its authority would be in the public interest. In making such a finding, the authority shall consider factors, including economic impact to the state, economic feasibility, technical performance, reliability, past performance, and the likelihood of successful completion and ongoing operation.
  2. The authority may require a person giving a notice of intent to provide a bond and to submit a plan for completion of the pipeline facilities or commencement of services within a period of time acceptable to the authority. If no person submits an adequate plan or bond as required by the authority, the authority may proceed with contracting for construction of the facility described in the authority’s published notice.

Source:

S.L. 2007, ch. 464, § 2.

54-17.7-06. Authority may participate upon request.

The authority may participate in a pipeline facility through financing, planning, joint ownership, or other arrangements at the request of a person giving a notice of intent.

Source:

S.L. 2007, ch. 464, § 2.

54-17.7-07. Evidences of indebtedness.

  1. Evidences of indebtedness of the authority must be authorized by resolution of the industrial commission and may be issued in one or more series and must bear such date or dates, mature at such time or times, bear interest at such rate or rates of interest per year, be in such denomination or denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable from such sources in such medium of payment at such place or places within or without the state, and be subject to such terms of redemption, with or without premium, as such resolution or resolutions may provide. Evidences of indebtedness of the authority are to mature not more than forty years from the date of issue. Evidences of indebtedness of the authority may be sold at such time or times and at such price or prices as the authority determines.
  2. Evidences of indebtedness and grants, loans, or other forms of financial assistance issued by the authority are payable solely from:
    1. Revenues that may be received by the authority from pipeline facilities, services, or activities funded under this chapter with the proceeds of the authority’s evidences of indebtedness, subject only to prior payment of the reasonable and necessary expenses of operating and maintaining such pipeline facilities except depreciation.
    2. Amounts received by the authority under loans authorized under this chapter.
    3. Revenues received by the authority under this chapter from any source other than general tax revenues.
  3. The evidences of indebtedness are not subject to taxation by the state or any of its political subdivisions and do not constitute a debt of the state of North Dakota within the meaning of any statutory or constitutional provision and must contain a statement to that effect on their face.
  4. The authority may establish and maintain a reserve fund for evidences of indebtedness issued under this chapter. There must be deposited in the reserve fund:
    1. All moneys appropriated by the legislative assembly to the authority for the purpose of the reserve fund.
    2. All proceeds of evidences of indebtedness issued under this chapter required to be deposited in the reserve fund by the terms of any contract between the authority and the holders of its evidences of indebtedness or any resolution of the authority.
    3. Any lawfully available moneys of the authority which it may determine to deposit in the reserve fund.
    4. Any moneys from any other source made available to the authority for deposit in the reserve fund or any contractual right to the receipt of moneys by the authority for the purpose of the fund, including a letter of credit, surety bond, or similar instrument.
  5. The authority must include in its biennial request to the office of the budget the amount, if any, necessary to restore any reserve fund established under this section to an amount equal to the amount required to be deposited in the fund by the terms of any contract or resolution approved by the commission.
  6. Any pledge of revenue made by the industrial commission as security for the authority’s evidences of indebtedness is valid and binding from time to time when the pledge is made. The revenues or other moneys so pledged and thereafter received by the authority are immediately subject to the lien of any such pledge without any physical delivery thereof or further act, and the lien of any such pledge is valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the authority, regardless of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be filed or recorded except in the records of the authority.
  7. The authority may obtain from any entity of the state, any department or agency of the United States, or any nongovernmental insurer, any insurance, guaranty, or liquidity facility, or from a financial institution, a letter of credit to the extent such insurance, guaranty, liquidity facility, or letter of credit now or hereafter available, as to, or for, the payment or repayment of, interest or principal, or both, or any part thereof, on any evidences of indebtedness issued by the authority pursuant to this chapter, and may enter into any agreement or contract with respect to any such insurance, guaranty, letter of credit, or liquidity facility, and pay any required fee, unless the same would impair or interfere with the ability of the authority to fulfill the terms of any agreement made with the holders of its evidences of indebtedness.
  8. After issuance, all evidences of indebtedness of the authority are conclusively presumed to be fully authorized and issued under the laws of the state, and any person or governmental unit is estopped from questioning their authorization, sale, issuance, execution, or delivery by the authority.
  9. When the authority has issued evidences of indebtedness and pledged the revenues of the pipeline facilities for the payment thereof as herein provided, the authority shall operate and maintain the pipeline facilities and shall impose and collect fees and charges for the services furnished by the pipeline facilities, including those furnished to the authority itself, in the amounts and at the rates as are fully sufficient at all times to:
    1. Pay the expenses of operating and maintaining the pipeline facilities.
    2. Provide a debt service fund sufficient to assure the prompt payment of principal and interest on the evidences of indebtedness at maturity.
    3. Provide a reasonable fund for contingencies as may be required by the resolution authorizing the evidences of indebtedness.

Source:

S.L. 2007, ch. 464, § 2.

54-17.7-08. Public service commission jurisdiction and consultation.

  1. Until sold or disposed of by the authority, the authority and the pipeline facilities built under this chapter are exempt from the provisions of title 49 except for chapters 49-22 and 49-22.1 and sections 49-02-01.2 and 49-07-05.1. Upon sale or disposal by the authority, pipeline facilities built under this chapter are subject to the provisions of title 49.
  2. The authority shall consult with the public service commission with respect to the rates charged by the authority for use of its pipeline facilities and such rates must thereafter be considered just and reasonable in proceedings before the public service commission pursuant to section 49-05-06.
  3. The authority shall conduct its activities in consultation with pipeline providers, the oil and gas research council, energy-related commodities interests, and other persons having relevant expertise.

Source:

S.L. 2007, ch. 464, § 2; 2007, ch. 565, § 1; 2017, ch. 328, § 25, eff July 1, 2017.

Note.

Section 54-17.7-08 was created and amended by the 2007 Legislative Assembly. The section is printed above as amended by section 1 of chapter 565, Session Laws 2007, Senate Bill 2077.

54-17.7-09. Bonds as legal investments.

The bonds of the authority are legal investments which may be used as collateral for public funds of the state, insurance companies, banks, savings and loan associations, credit unions, investment companies, trustees, and other fiduciaries which may properly and legally invest funds in their control or belonging to them in bonds of the authority. The state investment board may invest in bonds of the authority in an amount specified by the state investment board.

Source:

S.L. 2007, ch. 464, § 2.

54-17.7-10. Disposal of pipeline facilities.

  1. Before becoming an owner or partial owner of a pipeline facility or acquiring capacity in a pipeline system, the authority shall develop a plan identifying:
    1. The public purposes of the authority’s ownership or capacity acquisition.
    2. Conditions that would make the authority’s ownership no longer necessary for accomplishing those public purposes.
    3. A plan to divest the authority’s ownership or capacity interest as soon as economically prudent once those conditions occur.
  2. For pipeline facilities that are leased to another entity by the authority at the end of the lease, absent default by the lessee, the authority shall convey its interest in the pipeline facilities to the lessee.
  3. For pipeline facilities that are owned by the authority without a lessee, the authority shall divest itself of ownership as soon as economically prudent in accordance with the divestiture plan developed pursuant to subsection 1.

Source:

S.L. 2007, ch. 464, § 2.

54-17.7-11. Pipeline authority administrative fund — Continuing appropriation.

There is created a pipeline authority administrative fund.

  1. Revenue to the fund must include:
    1. Moneys received from the state’s oil and gas research council administrative budget.
    2. Moneys received from any federal agency for the purpose of this section.
    3. Moneys donated to the pipeline authority for the purposes of this section.
    4. Moneys received from the state’s oil and gas impact fund.
    5. Such other moneys as may be deposited in the fund for use in carrying out the purposes of the authority.
  2. This fund must be maintained as a special fund and all moneys transferred into the fund are appropriated on a continuing basis and must be used and disbursed solely for the purpose of defraying the administrative costs incurred by the pipeline authority.
  3. Utilizing funds from the oil and gas research fund, the industrial commission shall contract for or hire staffing necessary to effectively administer the pipeline authority.

Source:

S.L. 2007, ch. 464, § 2.

54-17.7-12. Access to authority records.

  1. Materials and data submitted to, or made or received by, the authority, to the extent that the authority determines the materials or data consist of trade secrets or commercial, financial, or proprietary information of individuals or entities applying to or contracting with the authority or receiving authority services under this chapter are subject to section 44-04-18.4.
  2. A person or entity must file a request with the authority to have material designated as confidential under subsection 1. The request must contain any information required by the authority, and must include at least:
    1. A general description of the nature of the information sought to be protected.
    2. An explanation of why the information derives independent economic value, actual or potential, from not being generally known to other persons.
    3. An explanation of why the information is not readily ascertainable by proper means by other persons.
    4. A general description of any person or entity that may obtain economic value from disclosure or use of the information and how the person or entity may obtain this value.
    5. A description of the efforts used to maintain the secrecy of the information.
    6. The fact that a request has been made is exempt.
  3. The information submitted pursuant to subsection 2 is confidential. The authority shall examine the request and determine whether the information is relevant to the matter at hand and is a trade secret under the definition in section 47-25.1-01 or 44-04-18.4. If the authority determines the information is either not relevant or not a trade secret, the authority shall notify the requester and the requester may ask for the return of the information and request within ten days of the notice. If no return is sought, the information and request are a public record.

Source:

S.L. 2007, ch. 464, § 2.

54-17.7-13. Reporting requirements.

The authority shall deliver a written report on its activities to the legislative council each biennium. The authority is not subject to the requirements of chapter 54-60.1, but to ensure public accountability, the authority shall provide an annual report to the industrial commission detailing activities and expenditures incurred during the preceding year.

Source:

S.L. 2007, ch. 464, § 2.

CHAPTER 54-17.8 Outdoor Heritage Fund

54-17.8-01. Definitions.

  1. “Advisory board” means the North Dakota outdoor heritage advisory board.
  2. “Commission” means the industrial commission.
  3. “Fund” means the North Dakota outdoor heritage fund.

Source:

S.L. 2013, ch. 408, § 1.

Effective Date.

This chapter became effective July 1, 2013.

54-17.8-02. North Dakota outdoor heritage fund — Continuing appropriation.

There is created a North Dakota outdoor heritage fund that is governed by the commission. Any money deposited in the fund is appropriated on a continuing basis to the commission for the purposes of this chapter. Interest earned by the fund must be credited to the fund. The commission shall keep accurate records of all financial transactions performed under this chapter.

Source:

S.L. 2013, ch. 408, § 1.

54-17.8-03. North Dakota outdoor heritage fund purposes.

  1. The commission shall use the fund to provide grants to state agencies, tribal governments, political subdivisions, and nonprofit organizations, with higher priority given to enhance conservation practices in this state by:
    1. Providing access to private and public lands for sportsmen, including projects that create fish and wildlife habitat and provide access for sportsmen;
    2. Improving, maintaining, and restoring water quality, soil conditions, plant diversity, animal systems, and by supporting other practices of stewardship to enhance farming and ranching;
    3. Developing, enhancing, conserving, and restoring wildlife and fish habitat on private and public lands; and
    4. Conserving natural areas and creating other areas for recreation through the establishment and development of parks and other recreation areas.
  2. The commission or grantee may not use the fund, in any manner, to finance:
    1. Litigation;
    2. Lobbying activities;
    3. Any activity that would interfere, disrupt, or prevent activities associated with surface coal mining operations; sand, gravel, or scoria extraction activities; oil and gas operations; or other energy facility or infrastructure development;
    4. The acquisition of land or to encumber any land for a term longer than twenty years; or
    5. Projects outside this state or projects that are beyond the scope of defined activities that fulfill the purposes of this chapter.
  3. The commission or a grantee may not use grant funds, except after a finding of exceptional circumstances by the commission, to finance:
    1. A completed project or project commenced before the grant application;
    2. A feasibility or research study;
    3. Maintenance costs;
    4. A paving project for a road or parking lot;
    5. A swimming pool or aquatic park;
    6. Personal property that is not affixed to the land;
    7. Playground equipment, except that grant funds may be provided for up to twenty-five percent of the cost of the equipment not exceeding ten thousand dollars per project and all playground equipment grants may not exceed five percent of the total grants per year;
    8. A building, except for a building that is included as part of a comprehensive conservation plan for a new or expanded recreational project; or
    9. A project in which the applicant is not directly involved in execution and completion of the project.

Source:

S.L. 2013, ch. 408, § 1; 2015, ch. 379, § 1, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 379, S.L. 2015 became effective July 1, 2015.

54-17.8-04. Commission to staff advisory board.

The commission shall operate, manage, and control the outdoor heritage fund and provide staffing for the meetings.

Source:

S.L. 2013, ch. 408, § 1.

54-17.8-05. Powers and duties of commission.

The commission is granted all the powers necessary or appropriate to carry out and effectuate the purposes of this chapter, including the power to:

  1. Make grants to a state agency, a tribal government, a political subdivision, or a nonprofit organization;
  2. Place conditions on an offer or a grant including a limit on the duration of an offer, a requirement of matching funds, and limit the source of the matching funds, and the commission shall exclude any money appropriated from the general fund from use as matching funds unless the legislative assembly authorizes the use of general fund money as matching funds;
  3. Approve expenditures for staffing or an outside consultant to design and implement an approved project based on the documented need of the applicant and the expenditures may not exceed five percent of the grant to a grantee if the grant exceeds two hundred fifty thousand dollars and expenditures may not exceed ten percent of the grant to a grantee if the grant is two hundred fifty thousand dollars or less;
  4. Enter contracts or agreements to carry out the purposes of this chapter, including authority to contract for the administration of the fund and staffing for the advisory board;
  5. Accept donations, grants, contributions, and gifts from any public or private source; and
  6. Adopt policies and rules necessary to effectuate the purposes of this chapter.

Source:

S.L. 2013, ch. 408, § 1; 2015, ch. 379, § 2, eff July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 2 of chapter 379, S.L. is effective for taxable events beginning after June 30, 2015, except for subsection 2, which became effective April 23, 2015, pursuant to an emergency clause in section 6 of chapter 379, S.L. 2015.

54-17.8-06. North Dakota outdoor heritage advisory board — Members.

  1. There is created a North Dakota outdoor heritage advisory board consisting of twelve members. The governor shall appoint representatives from each of the groups listed in this section based upon recommendations made by the appropriate group. The advisory board consists of:
    1. Four members from the agriculture community. The governor shall appoint one member from the North Dakota farm bureau, North Dakota farmers union, the North Dakota stockmen’s association, and the North Dakota grain growers association.
    2. Two members from the energy industry. The governor shall appoint one member from the North Dakota petroleum council and one member from the lignite energy council.
    3. Four members from the conservation community. The governor shall appoint the members from the conservation community at large of statewide conservation groups.
    4. One member from the business community from the greater North Dakota chamber.
    5. One member from the North Dakota recreation and park association.
  2. The governor also shall appoint to the advisory board one representative from each of the following agencies to serve as ex officio, nonvoting technical members: the department of parks and recreation, the game and fish department, the office of the state forester, and the North Dakota association of soil conservation districts.
  3. The term of office of each member of the board is four years and members may not serve more than two consecutive terms. The terms of office commence on the first day of July. The initial terms for the advisory board members must be staggered following a method determined by the board.
  4. The advisory board shall select a chairman from among the members. Seven voting members is a quorum at any meeting.
  5. The advisory board shall have at least two regular meetings each year and additional meetings as the chairman determines necessary at a time and place to be fixed by the chairman. Special meetings must be called by the chairman on written request of any five members.
  6. The advisory board may not forward a grant application to the commission unless the application is for funding activities that fulfill the purposes of this chapter and the application receives a favorable recommendation from a majority of the advisory board members.
  7. Members of the advisory board appointed by the governor serve at the pleasure of the governor.

Source:

S.L. 2013, ch. 408, § 1; 2013, ch. 17, § 3; 2015, ch. 379, § 3, eff August 1, 2015; 2019, ch. 437, § 1, eff August 1, 2019.

Effective Date.

The 2015 amendment of this section by section 3 of chapter 379, S.L. 2015 is effective for taxable events beginning after June 30, 2015.

The 2013 amendment of this section by section 3 of chapter 17, S.L. 2013 became effective July 1, 2013.

Note.

Section 54-17.8-06 was created and amended by the 2013 Legislative Assembly. Pursuant to section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in section 1 of chapter 408, Session Laws 2013, House Bill 1278; and section 3 of chapter 17, Session Laws 2013, House Bill 1017.

54-17.8-07. Report to the budget section of the legislative management.

The advisory board shall provide a biennial report to the budget section of the legislative management.

Source:

S.L. 2013, ch. 408, § 1.

CHAPTER 54-18 North Dakota Mill and Elevator Association

54-18-01. Definition.

Whenever the word “association” is used in this chapter, it means the North Dakota mill and elevator association.

Source:

S.L. 1919, ch. 152, § 1; 1923, ch. 295, § 1; 1925, ch. 163, § 1; 1925 Supp., § 368c1; S.L. 1931, ch. 268, § 1; 1933, ch. 193, § 1; R.C. 1943, § 54-1801.

54-18-02. North Dakota mill and elevator association.

For the purpose of encouraging and promoting agriculture, commerce, and industry, the state of North Dakota shall engage in the business of manufacturing and marketing farm products. For that purpose it shall establish a system of warehouses, elevators, flour mills, factories, plants, machinery, and equipment, owned, controlled, and operated by it under the name of North Dakota mill and elevator association. The business of the association, in addition to other matters specified in this chapter, may include anything that any private individual, corporation, or limited liability company lawfully may do in conducting a similar business except as restricted by the provisions of this chapter. In the creation of the association, it is the intention of the legislative assembly that all acts of the association are the acts of the state of North Dakota functioning in its sovereign and governmental capacity. The association is not a separate agency of the sovereign power, but is the state itself functioning.

Source:

S.L. 1919, ch. 152, § 1; 1923, ch. 295, § 1; 1925, ch. 163, § 1; 1925 Supp., § 368c1; S.L. 1931, ch. 268, § 1; 1933, ch. 193, § 1; R.C. 1943, § 54-1802; S.L. 1993, ch. 54, § 106.

Notes to Decisions

Constitutionality of Tax.

The levying of taxes for the North Dakota mill and elevator association does not take property without due process of law on the ground that it is done for a private purpose. Green v. Frazier, 44 N.D. 395, 176 N.W. 11, 1920 N.D. LEXIS 93 (N.D.), aff'd, 253 U.S. 233, 40 S. Ct. 499, 64 L. Ed. 878, 1920 U.S. LEXIS 1418 (U.S. 1920).

The issuance of bonds and levying of a tax on all nonexempt property in the state to build and operate state-owned industries and utilities does not violate the Fourteenth Amendment. Green v. Frazier, 253 U.S. 233, 40 S. Ct. 499, 64 L. Ed. 878, 1920 U.S. LEXIS 1418 (U.S. 1920).

Public Purpose.

The building, owning, and operating of a state-owned elevator and flour mills for the benefit of its citizens constitutes a public purpose. Green v. Frazier, 44 N.D. 395, 176 N.W. 11, 1920 N.D. LEXIS 93 (N.D.), aff'd, 253 U.S. 233, 40 S. Ct. 499, 64 L. Ed. 878, 1920 U.S. LEXIS 1418 (U.S. 1920); State v. Bonzer, 68 N.D. 311, 279 N.W. 769, 1938 N.D. LEXIS 114 (N.D. 1938).

54-18-03. Industrial commission to operate association — Place of business — Rules made by commission.

The industrial commission shall:

  1. Operate, manage, and control the association.
  2. Locate and maintain its places of business of which the principal place must be within the state.
  3. Make and enforce orders, rules, regulations, and bylaws for the transaction of its business.

Source:

S.L. 1919, ch. 152, § 2; 1923, ch. 295, § 8; 1925, ch. 163, § 3; 1925 Supp., § 368c3; S.L. 1931, ch. 268, § 3, subs. 1; 1933, ch. 193, § 2; R.C. 1943, § 54-1803.

54-18-04. Powers and duties of industrial commission in operating association.

To accomplish the purposes of this chapter, the industrial commission shall acquire by purchase, lease, or, subject to chapter 32-15, by exercise of the right of eminent domain all necessary property or property rights and may:

  1. Construct, remodel, or repair all necessary buildings.
  2. Purchase, lease, construct, or otherwise acquire warehouses, elevators, flour mills, factories, offices, plants, machinery, equipment, and all other things necessary, incidental, or convenient in the manufacturing and marketing of all kinds of raw and finished farm products within or without the state.
  3. Dispose of all kinds of raw and finished farm products.
  4. Buy, manufacture, store, mortgage, pledge, sell, exchange, or otherwise acquire or dispose of all kinds of manufactured and raw farm and food products and byproducts.
  5. For the purpose of acquiring or disposing of all kinds of manufactured farm and food products and byproducts, establish and operate exchanges, bureaus, markets, and agencies, within or without the state, including foreign countries, on such terms and conditions and under such rules and regulations as the commission may determine.

Source:

S.L. 1919, ch. 152, § 3; 1923, ch. 295, § 8; 1925, ch. 163, § 3; 1925 Supp., § 368c3; S.L. 1931, ch. 268, § 3; 1933, ch. 193, § 3; R.C. 1943, § 54-1804; S.L. 1985, ch. 572, § 1; 1991, ch. 590, § 2; 2007, ch. 293, § 37.

54-18-04.1. Marketing functions exempt from Securities Act.

The association is exempt from the provisions of chapter 10-04 when in the performance of its authorized marketing functions. The exemption provided under this section also applies to any agency or instrumentality of the association and to any agent or employee of the association or any agency or instrumentality thereof.

Source:

S.L. 1977, ch. 488, § 1.

54-18-04.2. Confidentiality exemption. [Repealed]

Repealed by S.L. 1999, ch. 460, § 1.

54-18-05. Manager and employees of association — Industrial commission to appoint — Compensation.

The industrial commission shall obtain such assistance as in its judgment may be necessary for the establishment, maintenance, and operation of the association. To that end it shall appoint a manager and may appoint such subordinate officers and employees as it may judge expedient. It may constitute such manager its general agent, in respect to the functions of the association, but subject, nevertheless, in such agency, to the supervision, limitation, and control of the commission. It shall employ such contractors, architects, builders, attorneys, clerks, accountants, and other experts, agents, and servants as in the judgment of the commission the interests of the state may require, and shall define the duties, designate the titles, and fix the compensation and bonds of all such persons so engaged.

Source:

S.L. 1919, ch. 152, § 4; 1923, ch. 295, § 11; 1925, ch. 163, § 6; 1925 Supp., § 368c6; S.L. 1931, ch. 268, § 8, subs. 2; 1933, ch. 193, § 4; R.C. 1943, § 54-1805.

54-18-06. Manager shall appoint necessary employees.

Subject to the control and regulation of the industrial commission, the manager of the association shall appoint and employ such deputies and other subordinates and such contractors, architects, builders, attorneys, clerks, accountants, and other experts, agents, and servants as the manager finds are required by the interests of the association.

Source:

S.L. 1919, ch. 152, § 4; 1923, ch. 295, § 11; 1925, ch. 163, § 6; 1925 Supp., § 368c6; S.L. 1931, ch. 268, § 9; 1933, ch. 193, § 4; R.C. 1943, § 54-1806.

54-18-07. Compensation of employees and expenditures remain within appropriation.

The total compensation of the appointees and employees of the association, together with other expenditures for the operation and maintenance of the association, must remain within the appropriation and earnings lawfully available in each year for such purposes.

Source:

S.L. 1919, ch. 152, § 4; 1923, ch. 295, § 11; 1933, ch. 193, § 4; R.C. 1943, § 54-1807.

54-18-08. Bonds of manager and employees. [Repealed]

Repealed by S.L. 1999, ch. 113, § 24.

54-18-09. Removal and discharge of appointees.

The industrial commission may remove and discharge any and all persons appointed in the exercise of the powers granted by this chapter, whether by the commission or by the manager of the association, and any such removal may be made whenever in the judgment of the commission the public interests require it. All appointments and removals contemplated by this chapter must be made as the commission shall deem most fit to promote the efficiency of the public service.

Source:

S.L. 1919, ch. 152, § 5; 1923, ch. 295, § 11; 1925, ch. 163, § 6; 1925 Supp., § 368c6; S.L. 1931, ch. 268, § 9; 1933, ch. 193, § 5; R.C. 1943, § 54-1809.

54-18-10. Industrial commission to fix price of things bought and sold by association.

The industrial commission shall fix the buying price of all things bought, and the selling price of all things sold, incidental to the operation of the association, and shall fix all charges for any and all services rendered by the association. In fixing these prices, while all services are to be rendered, as near as may be, at cost, there must be taken into consideration, in addition to other necessary costs, a reasonable charge for depreciation of all property, all overhead expenses, and a reasonable surplus, together with all amounts required for the repayment, with interest, of funds received from the state.

Source:

S.L. 1919, ch. 152, § 6; 1933, ch. 193, § 6; R.C. 1943, § 54-1810.

54-18-11. Name in which business conducted and titles taken — Execution of written instruments.

All business of the association must be conducted under the name of “North Dakota mill and elevator association”. Title to property pertaining to the operation of the association must be obtained and conveyed in the name of the state of North Dakota, doing business as the North Dakota mill and elevator association. Written instruments must be executed in the name of the state of North Dakota, signed by any two members of the industrial commission, of whom the governor must be one, or by the manager of the association within the scope of the manager’s authority, as defined by the commission or by other officers, employees, or legal counsel of the association as authorized by the industrial commission.

Source:

S.L. 1919, ch. 152, § 7; 1923, ch. 295, § 10; 1925, ch. 163, § 5; 1925 Supp., § 368c5; S.L. 1931, ch. 268, § 4; 1933, ch. 193, § 7; R.C. 1943, § 54-1811; 2001, ch. 482, § 1.

Notes to Decisions

Cancellation of Insurance.

The industrial commission may cancel insurance carried on the state mill and elevator association, and such cancellation is effected by surrender of the policies to the insurer. State v. Hartford Steam Boiler Inspection & Ins. Co., 71 N.D. 329, 1 N.W.2d 52, 1941 N.D. LEXIS 174 (N.D. 1941).

54-18-12. Civil actions on association transactions — Names of parties — Service — Venue — Statement filing provisions inapplicable.

Civil actions may be brought against the state of North Dakota on account of claims for relief claimed to have arisen out of transactions connected with the operation of the association upon compliance with this section. In such actions the state must be designated as the state of North Dakota, doing business as North Dakota mill and elevator association, and the service of process therein must be made upon the manager of the association. Such actions must be brought in the county where the association has its principal place of business, except as provided in sections 28-04-01 through 28-04-04 and 28-04-07. Section 54-14-04 does not apply to claims against the state affected by this section.

Source:

S.L. 1919, ch. 152, § 8; 1923, ch. 295, § 13; 1925, ch. 163, § 8; 1925 Supp., § 368c8; S.L. 1931, ch. 268, § 14; 1933, ch. 193, § 8; R.C. 1943, § 54-1812; S.L. 1985, ch. 82, § 128; 1997, ch. 274, § 10.

Notes to Decisions

Diversity Jurisdiction.

The state mill and elevator association is not subject to suit by a foreign corporation in a federal court for a claim arising from an alleged breach of contract. North Dakota v. National Milling & Cereal Co., 114 F.2d 777, 1940 U.S. App. LEXIS 3211 (8th Cir. N.D. 1940).

Federal Court Actions.

Action against the North Dakota Mill and Elevator Association is an action against the state; the Eleventh Amendment of the United States Constitution provides the state immunity from such an action in the federal courts, and this section does not waive that immunity. Burlington Northern, Inc. v. North Dakota, 460 F. Supp. 140, 1978 U.S. Dist. LEXIS 14415 (D.N.D. 1978).

Tort Claim.

A civil action lies against the state, doing business as the North Dakota mill and elevator association, to recover damages for personal injuries sustained through the negligence of the association in the operation of a mill. Bakken v. State, 56 N.D. 861, 219 N.W. 834, 1928 N.D. LEXIS 209 (N.D. 1928).

54-18-13. Capital of association.

The capital of the association must be any funds procured by the industrial commission through the sale of state bonds, as may be provided by law for that purpose, and also all moneys raised by the mill tax for terminal elevators as provided in sections 2072 and 2073 of the Compiled Laws of 1913. Said moneys must be paid to the manager of said association and the manager shall place the same in the general fund of the association.

Source:

S.L. 1919, ch. 152, § 9; 1933, ch. 193, § 9; R.C. 1943, § 54-1813.

54-18-14. Annual audit of association.

The books, records, accounts, inventories, stocks of merchandise, supplies, equipment, and all affairs of the association must be audited and examined once in each year by the state auditor. The audit must be made as soon as possible after June thirtieth in each year. Said audit and the report thereof must disclose fairly and accurately the actual condition of the association as of June thirtieth of that year. Profits and losses may be computed only on such contracts and commitments, or parts thereof, as have been completed on said date, and no estimates of forecasts may be made as to the probable loss or gain on transactions to be fulfilled after said date. Inventories of grains, supplies, and stocks on hand must be computed on the basis of cost or market, on a consistent basis, in accordance with generally accepted accounting principles. The report may disclose the actual obligations and commitments of the association on existing unfulfilled contracts, and the consideration and prices fixed in said contracts, if, in the judgment of said state auditor, the same are necessary to a complete audit, but the report constitutes a factual report of existing conditions, and, to the fullest extent possible, all estimates, forecasts, and probabilities must be eliminated therefrom. Copies of such audit report upon completion must be filed with the industrial commission, the manager of the association, with the state auditor, and a consolidated balance sheet and operating statement must be made public.

Source:

S.L. 1919, ch. 152, § 10; 1923, ch. 296, § 15; 1925, ch. 163, § 6; 1925 Supp., § 368c6; S.L. 1931, ch. 268, § 11; 1933, ch. 193, § 10; 1941, ch. 222, § 1; R.C. 1943, § 54-1814; S.L. 1947, ch. 328, § 1; 1957 Supp., § 54-1814; S.L. 1959, ch. 372, § 85; 1991, ch. 591, § 1.

Notes to Decisions

Invitee.

A person who enters mill operated by the association, for the purpose of making an audit under the direction of the state board of auditors, has an implied invitation to enter such mill and is not a mere trespasser or licensee. Bakken v. State, 56 N.D. 861, 219 N.W. 834, 1928 N.D. LEXIS 209 (N.D. 1928).

54-18-15. Additional audits.

The industrial commission may direct unexpected or unscheduled audits other than the annual audit provided for in section 54-18-14 at such times and by such auditor as it shall deem proper to protect the interests of the state.

Source:

S.L. 1941, ch. 222, § 2; R.C. 1943, § 54-1815.

54-18-16. Contracts of association recognized — Property to remain vested in state. [Repealed]

Repealed by omission from this code.

54-18-17. Industrial commission to establish research and processing unit for soybeans and flaxseed.

The industrial commission shall install at the association equipment for the processing of soybeans and flaxseed and equipment designed for the conducting of research leading to the manufacture and sale of soybeans and flaxseed. Storage facilities also must be established for the storage of soybeans and flaxseed.

Source:

S.L. 1943, ch. 56, § 1; R.C. 1943, § 54-1817.

54-18-18. Contractor to be paid during progress of work — Retainage — Failure to pay — Rate of interest — Investment of retainage.

If the contractor to whom a contract for construction or the provision of equipment to the association is let properly performs the work therein designated, the mill manager, at least once in each calendar month during the continuance of the contract work, shall meet, receive, and consider estimates furnished by the agent, engineer, or architect acting for the association or if not so furnished, then by the contractor, and shall allow such estimates in an amount of the estimated value of the labor and material furnished upon the contract, and of the material then upon the ground for use in the contract, subject to retentions of ten percent of each estimate presented until the time the project is fifty percent completed, with no further retainage on estimates during the continuance of the contract. Notwithstanding the requirements of any other law, the industrial commission may authorize the mill manager to prepay for equipment prior to delivery to the construction site if the industrial commission determines:

  1. Prepayment is in the best interest of the association;
  2. The association’s interest will be adequately protected; and
  3. The equipment is of a type that is not fungible and could not be sold except at a discount to another because it is constructed to specifications required by the association.

Upon completion of ninety-five percent of the contract according to the estimates, the association may pay to the contractor ninety-five percent of the amount retained from previous estimates. Any amount retained after ninety-five percent completion of the contract must be paid to the contractor in such amounts and at such times as are approved by the association, upon estimates by its agent, engineer, or architect or the contractor, with final payment of all moneys due to the contractor to be made immediately following completion and acceptance of the project. Immediately after considering and allowing any such estimate, the association shall certify and promptly draw a warrant upon the proper fund and transmit it to the contractor entitled to it. If the association fails or neglects to receive and allow the estimate or certify any estimate or final payment upon completion and acceptance for a period of more than thirty days from the date of the estimate or completion date, then the estimate or final payment, with any retainage properly payable, shall draw interest from its date at the rate per annum of two percentage points below the Bank of North Dakota prime interest rate as set thirty days from the date of the estimate or completion date until the issuance of a proper warrant therefor. Such interest must be computed and added to the face of the estimate, final payment, or retainage by the officer required to issue the warrant, must be included in the warrant when drawn, and must be charged to the fund from which payment for the improvement is to be made. On the amounts of estimates retained, as provided herein, the association may invest or deposit the retained amounts in the Bank of North Dakota earning interest or dividends for the benefit of the contractor. Any amount so invested or deposited must remain in the name of the association until final payment of all moneys due to the contractor is to be made. Further, no contractor shall use such account in any manner whatsoever until released and received by the contractor upon completion of the contract.

Source:

S.L. 2001, ch. 483, § 1.

54-18-19. Transfer of North Dakota mill and elevator profits to general fund.

The industrial commission shall transfer to the state general fund fifty percent of the annual earnings and undivided profits of the North Dakota mill and elevator association after any transfers to other state agricultural-related programs. The moneys must be transferred on an annual basis in the amounts and at the times requested by the director of the office of management and budget.

Source:

S.L. 2009, ch. 42, § 12; 2017, ch. 39, §§ 19, 20, eff July 1, 2017.

54-18-20. Gain-sharing program.

For the purpose of this section, “gain-sharing program” means a program approved annually by the industrial commission with provisions that promote profitability, productivity, and safety. Any gain-sharing program approved by the industrial commission must include provisions that ensure that no payouts occur unless mill and elevator profits exceed one million dollars and transfers will be made to the state general fund for that program year.

Source:

S.L. 2009, ch. 42, § 12.

54-18-21. Annual transfer.

Within thirty days after the conclusion of each fiscal year, the industrial commission shall transfer five percent of the net income earned by the state mill and elevator association during that fiscal year to the agricultural products utilization fund.

Source:

S.L. 2009, ch. 46, § 34; 2013, ch. 49, § 11.

Effective Date.

The 2013 amendment of this section by section 11 of chapter 49, S.L. 2013 became effective July 1, 2013.

CHAPTER 54-19 State Industrial Alcohol Plant [Repealed]

[Repealed by S.L. 1965, ch. 349, § 1]

CHAPTER 54-20 Electrical Enterprise of State [Repealed]

[Repealed by omission from this code]

CHAPTER 54-21 State Offices, Capitol, and Capitol Grounds

54-21-01. Definition of board. [Repealed]

Repealed by S.L. 1969, ch. 440, § 13.

54-21-02. Board of administration — Members — Appointment — Term of office — Removal. [Repealed]

Repealed by S.L. 1969, ch. 440, § 13.

54-21-03. Appointive members of board to give all their time to duties of office — Oath — Bond. [Repealed]

Repealed by S.L. 1969, ch. 440, § 13.

54-21-04. Salary, mileage, and travel expense of members of the board of administration. [Repealed]

Repealed by S.L. 1969, ch. 440, § 13.

54-21-05. Chairman of the board of administration — When elected — Quorum — Offices. [Repealed]

Repealed by S.L. 1969, ch. 440, § 13.

54-21-06. Director of institutions — Appointment — Term — Additional employees — Compensation — Removal — Expenses. [Repealed]

Repealed by S.L. 1991, ch. 592, § 47.

54-21-06.1. Director of institutions to be substituted for board, members of board, and secretary of board. [Repealed]

Repealed by S.L. 1991, ch. 592, § 47.

54-21-07. Bonds required of director and his employees who have control of money. [Repealed]

Repealed by S.L. 1991, ch. 595, § 3.

54-21-08. Official seal. [Repealed]

Repealed by S.L. 1969, ch. 440, § 13.

54-21-09. Report of director to governor and office of management and budget. [Repealed]

Repealed by S.L. 1991, ch. 592, § 47.

54-21-10. Daily record. [Repealed]

Repealed by S.L. 1991, ch. 592, § 47.

54-21-11. Governor may require additional report. [Repealed]

Repealed by S.L. 1991, ch. 592, § 47.

54-21-12. Suggestions for legislation included in report. [Repealed]

Repealed by S.L. 1991, ch. 592, § 47.

54-21-13. Child welfare — Mentally deficient persons — Powers and duties of director. [Repealed]

Repealed by S.L. 1989, ch. 156, § 54.

54-21-14. Executive officer for child welfare — Authority to employ. [Repealed]

Repealed by S.L. 1961, ch. 337, § 1.

54-21-15. Regulations by board of administration for private institutions receiving state appropriations. [Repealed]

Repealed by S.L. 1959, ch. 372, § 117.

54-21-16. Financial report to board of administration of private institutions receiving state appropriations. [Repealed]

Repealed by S.L. 1959, ch. 372, § 117.

54-21-17. Construction superintendent — Appointment — Duties. [Repealed]

Repealed by S.L. 1983, ch. 511, § 8.

54-21-17.1. Superintendent to secure interior of capitol building — Issuance and return of keys.

The superintendent of the highway patrol shall see to the security of the state capitol building, and shall have control over the issuance and return of keys allowing entry to the building proper, or any door located therein. Keys to doors in the legislative wing must be issued and controlled by the legislative council when so requested by the highway patrol. The highway patrol shall determine the manner in which keys are to be issued and returned, including the procedure for receiving and recording the payment of fees in lieu of return of keys provided in section 54-06-15.

Source:

S.L. 1971, ch. 490, § 3; 1991, ch. 592, § 31; 2005, ch. 490, § 2.

Cross-References.

Failure of officials and employees working in capitol building to return keys upon termination of employment, see N.D.C.C. § 54-06-15.

Responsibility of officials and employees for keys, see N.D.C.C. § 44-08-18.

54-21-18. Office building part of capitol building — Director control of capitol grounds — Parking for pregnant employees and employees with infants — Rules — Penalty.

  1. The director of the office of management and budget shall control, manage, and maintain the state office building. The building must be considered a part of the state capitol building within the meaning of statutes relating to the custody, maintenance, and control of the state capitol building and grounds, and within the meaning of statutes requiring state departments or agencies to maintain their offices in the state capitol building.
  2. Except as otherwise provided by law, the director of the office of management and budget has charge and control of the executive mansion, the capitol, and the park and public grounds connected therewith. Except as provided by sections 39-10-48, 39-10-50, 44-08-18, and 54-21-17.1, the director may adopt rules to promote the health, safety, and general welfare, to prohibit disturbances and disorderly assemblies, to keep the peace, and to regulate nuisances on the capitol grounds and in any of the buildings located on the capitol grounds. The rules may include regulation of public assemblies and accessibility to the buildings and grounds, obstructions, fees, insurance, forms, indemnification by users, and waiver of insurance and indemnity requirements by the director. A person who violates a rule adopted by the director under this section is guilty of an infraction.
  3. The office of management and budget shall provide to a state employee a temporary permit or some other means that allow that employee to park on the capitol grounds in any parking area in which a member of the public is allowed to park, if the state employee is pregnant and employed by a state agency housed on the capitol grounds or if the state employee is allowed by a state agency housed on the capitol grounds to bring an infant to work. This subsection does not authorize a state employee to park in an emergency or fire zone, in parking for the mobility impaired, or in a zone for which another permit is required. The special parking authorized under this subsection expires when the employee is no longer pregnant or no longer authorized to bring an infant to work.

Source:

S.L. 1887, ch. 162, § 1; R.C. 1895, § 154; R.C. 1899, § 154; R.C. 1905, § 238; C.L. 1913, § 376; S.L. 1915, ch. 229, § 1; 1925 Supp., § 376; R.C. 1943, § 54-2118; S.L. 1957, ch. 341, § 1; 1957 Supp., § 54-2118; S.L. 1959, ch. 369, §§ 4, 5; 1969, ch. 440, § 9; 1981, ch. 529, § 1; 1991, ch. 592, § 32; 1997, ch. 451, § 2; 2005, ch. 490, § 3; 2015, ch. 369, § 2, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by 2 of chapter 369, S.L. 2015 became effective August 1, 2015.

Cross-References.

Information technology department, see N.D.C.C. ch. 54-59.

54-21-19. Director to furnish supplies and maintain capitol, state offices, and executive mansion — Authority to charge for services.

The director of the office of management and budget shall provide all necessary fuel, electricity, insurance, janitorial, and other services necessary to maintain the state offices on the capitol grounds as well as all necessary furniture, fuel, electricity, express, freight, drayage, and all other necessary supplies for the executive mansion and the capitol grounds and shall make all necessary repairs. The purchases must be in accordance with chapter 54-44.4. The director shall charge an amount equal to the fair value of the office space and other services rendered to all departments that receive and expend moneys from other than the general fund, except that for good cause the amounts charged may be waived by the director for a one-year period of time with the waiver subject to further annual renewals after proper application has been filed with the director.

Source:

S.L. 1890, ch. 8, § 1; 1891, ch. 11, § 1; R.C. 1895, § 338; S.L. 1897, ch. 20, § 1; 1899, ch. 26, § 1; R.C. 1899, § 338; S.L. 1901, ch. 21, § 1; 1903, ch. 28, § 1; 1905, ch. 17, § 1; R.C. 1905, § 393; S.L. 1907, ch. 10, § 1; 1909, ch. 7, § 1; C.L. 1913, § 656; R.C. 1943, § 54-2119; S.L. 1959, ch. 372, § 86; 1969, ch. 440, § 10; 1969, ch. 442, § 1; 1979, ch. 568, § 8; 1987, ch. 562, § 5; 1991, ch. 592, § 33.

54-21-20. Director authorized to acquire property for capitol park. [Repealed]

Repealed by S.L. 1991, ch. 592, § 47.

54-21-21. School for the deaf land sale. [Repealed]

Omitted.

54-21-22. Disposition of executive mansion. [Repealed]

Omitted.

54-21-23. Executive mansion — Construction — Equipment — Appropriation. [Repealed]

Omitted.

54-21-24. Additional office space may be obtained outside state capitol.

If office space in the state capitol becomes insufficient to accommodate the various state departments, agencies, and boards, the director of the office of management and budget upon request of the department, agency, or board shall negotiate for, contract for, and obtain additional office space outside the state capitol in the city of Bismarck or in the Bismarck area as is necessary in order to provide accommodations for all state departments, agencies, and boards. When office space is obtained in this manner, the department, agency, or board that occupies the office space is deemed to be located at the state capitol for purposes of statutes that require that a department, agency, or board must be maintained at the state capitol, and the director shall charge an amount equal to the fair value of the office space and other services rendered to all departments that receive and expend moneys from other than the general fund, except that for good cause the amounts charged may be waived by the director for a one-year period of time with the waiver being subject to further annual renewals after proper application has been filed with the director. The department, agency, or board for which the office space is sought must approve the office space before the director may finalize a contract or lease for the office space.

Source:

S.L. 1959, ch. 337, § 1; 1969, ch. 440, § 12; 1969, ch. 442, § 2; 1991, ch. 592, § 34; 2009, ch. 15, § 20.

54-21-24.1. Lease of additional space by state agencies, departments, offices, officers, boards, and institutions.

A lease or rental agreement or renewal of the lease or rental agreement for the lease or rental of buildings or portions of buildings for use by state agencies, departments, offices, officers, boards, and institutions, other than institutions under the board of higher education, the adjutant general and department of transportation office and storage space for field engineering and maintenance crews, unless approved may be entered by the director of the office of management and budget subject to a determination of the legal sufficiency of the lease or rental agreement. To ensure economy, efficiency, and cooperation between the state and its political subdivisions, and to limit the number of locations of state offices for the convenience of individuals traveling to the offices, the director shall promulgate rules governing the lease or rental of additional buildings or portions of the buildings by state agencies, departments, offices, officers, boards, and institutions other than those under the board of higher education, the adjutant general, and department of transportation office and storage space for field engineering and maintenance crews. The department, agency, or board for which the office space is sought must approve the office space before the director may finalize a contract or lease for the office space.

Source:

S.L. 1973, ch. 424, § 1; 1991, ch. 592, § 35; 2009, ch. 15, § 21.

54-21-25. Authority to contract with other governmental agencies for prisoners and juvenile delinquents. [Repealed]

Repealed by S.L. 1991, ch. 595, § 3.

54-21-26. Director may lease land to others. [Repealed]

Repealed by S.L. 1991, ch. 595, § 3.

54-21-26.1. Director may sell penitentiary lands. [Repealed]

Repealed by S.L. 1991, ch. 595, § 3.

54-21-27. Removal or sale of unsafe public building — Procedure.

The superintendent of the institution, the warden of the institution, the commanding general of the national guard, or the head of an agency, department, bureau, board, or commission, as the case may be, having the responsibility of supervising and maintaining a public building belonging to the state of North Dakota, may sell or remove such building whenever it is found to be obsolete, a fire hazard, in unsafe condition so as to constitute a hazard to life or limb, and is of no future use to the state where it is located, by obtaining the written approval of the state director of the office of management and budget if under the director’s supervision or the head of the department having supervision and the state fire marshal.

Economics shall dictate whether or not the sale or removal shall be by advertising for public bids and awarding same to the lowest responsible bidder. If the building is to be destroyed, every effort must be made to salvage and store any material which will be beneficial to the state or which will have a salable value.

Source:

S.L. 1971, ch. 499, § 1; 1983, ch. 511, § 4; 1991, ch. 592, § 36.

54-21-28. Space utilization studies — Office space allocation.

The director of the office of management and budget shall:

  1. Conduct a periodic comprehensive space utilization study of all executive branch staff located within the facilities on the capitol grounds.
  2. Develop a space allocation and design policy which will consider space equalization and maximize the effective use of public facilities in a cost-effective manner.
  3. Allocate and assign office space, based upon space utilization studies and the established policies, guidelines, standards, and procedures, to all executive branch staff housed and working in facilities on the capitol grounds.
  4. Include in developing standards and criteria to be used in making space allocations, considerations regarding equipment; work stations; private offices; conference rooms; reception areas; vaults; necessary arrangements of dividers, doors, and walls to increase adequate air circulation; telephones; lighting; and heating in the utilization of available space.
  5. Be consulted, and the director’s approval obtained, before any change is made within any assigned and allocated space, and before any structural alteration is made.

Source:

S.L. 1987, ch. 635, § 1; 1991, ch. 592, § 37.

CHAPTER 54-21.1 Uniform Standards Code for Mobile Homes [Repealed]

[Repealed by S.L. 1979, ch. 547, § 1]

CHAPTER 54-21.2 Energy Conservation Standards in New Building Construction

54-21.2-01. Intent.

It is the intent of the legislative assembly that building envelopes be designed with adequate thermal resistance and low air leakage and that mechanical, electrical service, and illumination systems and equipment be designed and selected to enable the effective use of energy in new buildings and structures. It is not the intent of the legislative assembly to prevent the use of any material, method of construction, design, or insulating system approved pursuant to this chapter.

Source:

S.L. 1977, ch. 490, § 1.

54-21.2-02. Scope.

  1. The powers and authority granted by this chapter shall be in addition to other local building or zoning requirements, and political subdivisions may adopt more stringent or additional requirements. This chapter applies to all new public and private buildings except as provided by this section. Additions to existing buildings or structures may be made without making the entire building or structure comply, but additions must comply with the standards adopted pursuant to this chapter. No change in the character of occupancy or the use of any building or structure which requires an increase in either fossil fuels or electrical energy to heat or cool such building or structure may be permitted unless the building or structure is brought into compliance with standards adopted pursuant to this chapter.
  2. The following buildings are exempt from the applicability of this chapter:
    1. Buildings which are neither heated nor cooled.
    2. Buildings or portions thereof used whose peak design rate of energy usage is less than one watt per square foot [929.03 square centimeters] or three and four-tenths British thermal units an hour per square foot [929.03 square centimeters] of floor area.
    3. Restored or reconstructed buildings deliberately preserved beyond their normal term of use because of historical associations, architectural interests, or public policy, or buildings otherwise qualified as a pioneer building, historical site, state monument, or other similar designation pursuant to state or local law.

Source:

S.L. 1977, ch. 490, § 2.

54-21.2-03. Energy conservation standards.

Standards for energy conservation in new building construction, for thermal design conditions and criteria for buildings, and for adequate thermal resistance in regard to the design and selection of mechanical, electrical service, and illumination systems and equipment which will enable the effective use of energy in new buildings, must be included in the state building code.

Source:

S.L. 1977, ch. 490, § 3; 1983, ch. 511, § 5; 1993, ch. 327, § 2; 2001, ch. 488, § 26; 2009, ch. 474, § 1.

54-21.2-03.1. Heating, ventilation, and air-conditioning interoperability standards for public buildings.

Except as provided in subsection 2 of section 54-21.2-02, any new construction or any remodeling of a public building which affects the heating, ventilation, or air-conditioning systems in the building and which is paid for using any state funds must be constructed to include open protocol heating, ventilation, and air-conditioning systems that provide for interoperability of the systems.

Source:

S.L. 2011, ch. 400, § 1.

54-21.2-04. Inspections.

All construction or work for which a permit is required pursuant to section 11-33-18, subsection 6 of section 40-05-02, or other similar grant of authority is subject to inspection by the local building inspector. The governing body of a city, county, or township that elects to administer and enforce an energy conservation standard shall adopt and enforce the state energy conservation standards. The state energy conservation standards may be amended by cities, counties, and townships to conform to local needs. No construction may be covered without inspection approval, and there must be a final inspection on all buildings when completed and ready for occupancy. The building inspector may cause any structure to be reinspected.

Source:

S.L. 1977, ch. 490, § 4; 1993, ch. 327, § 3.

CHAPTER 54-21.3 State Building Code

54-21.3-01. Purposes of chapter.

The purposes of this chapter are to:

  1. Provide the citizens of this state with nationally recognized standards and requirements for construction and construction materials.
  2. Eliminate restrictive, obsolete, conflicting, and unnecessary construction regulations that tend to increase construction costs unnecessarily or restrict the use of new materials, products, or methods of construction or provide preferential treatment to types or classes of materials or products or methods of construction.
  3. Ensure adequate construction of buildings throughout the state and to adequately protect the health, safety, and welfare of the people of this state.

Source:

S.L. 1979, ch. 548, § 1.

54-21.3-02. Definitions.

As used in this chapter, unless the context requires otherwise:

  1. “Agricultural purposes” includes purposes related to agriculture, farming, ranching, dairying, pasturage, horticulture, floriculture, viticulture, and animal and poultry husbandry.
  2. “Building” means a combination of any materials fixed to form a structure and the related facilities for the use or occupancy by persons, or property. The word “building” shall be construed as though followed by the words “or part or parts thereof”.
  3. “City” means any city organized under the laws of this state.
  4. “Code enforcement agency” means an agency of the state or local government with authority to inspect buildings and enforce the law, ordinances, and regulations which establish standards and requirements applicable to the construction, installation, alteration, repair, or relocation of buildings.
  5. “Construction” means the construction, erection, reconstruction, alteration, conversion, or repair of buildings.
  6. “Jurisdictional area” means the area within which a city or township has zoning jurisdiction.
  7. “State building code” means the state building code provided for in this chapter.
  8. “Temporary work camp housing” includes a modular residential structure used to house workers on a temporary basis for a maximum period of five years.

Source:

S.L. 1979, ch. 548, § 2; 1983, ch. 511, § 6; 2011, ch. 401, § 1.

Collateral References.

What is “temporary” building or structure within meaning of restrictive covenant, 49 A.L.R.4th 1018.

54-21.3-03. State building code.

  1. The department of commerce, in cooperation with the state building code advisory committee, shall adopt rules to implement, amend, and periodically update the state building code, which must consist of the international building, residential, mechanical, and fuel gas codes.
  2. The state building code advisory committee consists of:
    1. Two representatives appointed by the North Dakota building officials association, one of whom must be from a jurisdiction of fewer than ten thousand people.
    2. One representative appointed by the North Dakota chapter of the American institute of architects.
    3. One representative appointed by the North Dakota society of professional engineers.
    4. One representative appointed by the North Dakota association of builders.
    5. One representative appointed by the North Dakota association of mechanical contractors.
    6. One representative appointed by the associated general contractors.
    7. A fire marshal appointed by the state fire marshal.
    8. One individual appointed by the state electrical board.
  3. The state building code advisory committee shall meet with the department of commerce or a designee of the commissioner of commerce at least once each calendar year to address proposed amendments to the state building code. The department of commerce may not adopt an amendment to the state building code unless the amendment is approved by a majority vote of:
    1. One representative appointed by the North Dakota chapter of the American institute of architects;
    2. One representative appointed by the North Dakota society of professional engineers;
    3. One representative appointed by the North Dakota association of builders;
    4. One representative appointed by the North Dakota association of mechanical contractors;
    5. One representative appointed by the associated general contractors; and
    6. Representatives of eligible jurisdictions as established by administrative rule.
  4. The state building code or a building code adopted by a city, township, or county may not include a requirement that fire sprinklers be installed in a single family dwelling or a residential building that contains no more than two dwelling units. The state building code, plumbing code, electrical code, or an equivalent code adopted by a political subdivision must provide that a building designed for and used as a school portable classroom may be constructed and inspected as a temporary structure as defined by the state building code or may be permitted as a permanent school portable classroom. The foundation system of such a structure must comply with the recommendations of the manufacturer’s engineering report for a pre-engineered unit or a structural engineer’s report. Frost-free footings may not be required for a temporary structure that meets the requirements of the state building code unless required by an engineering report. Temporary electrical and plumbing installations may be allowed for any structure by the governmental entities governing those areas of construction or the applicable codes.
  5. For the purposes of manufactured homes, the state building code consists of the manufactured homes construction and safety standards under 24 CFR 3280 adopted pursuant to the Manufactured Housing Construction and Safety Standards Act [42 U.S.C. 5401 et seq.].
  6. The governing body of a city, township, or county that elects to administer and enforce a building code shall adopt and enforce the state building code. However, the state building code may be amended by cities, townships, and counties to conform to local needs.
  7. A modular residential structure or a prebuilt home placed in the state must be constructed in compliance with the state building code. A modular residential structure or a prebuilt home placed in a jurisdiction that has amended the state building code must be constructed in compliance with the state building code and the amendments adopted by that jurisdiction.

Source:

S.L. 1979, ch. 548, § 3; 1983, ch. 511, § 7; 1983, ch. 562, § 1; 1983, ch. 563, § 1; 1985, ch. 573, § 1; 1987, ch. 636, § 1; 1989, ch. 263, § 2; 1991, ch. 593, § 1; 1993, ch. 328, § 2; 2001, ch. 484, § 2; 2001, ch. 488, §§ 27, 59; 2003, ch. 473, § 1; 2009, ch. 475, § 1; 2011, ch. 402, § 1.

54-21.3-04. Exemptions.

  1. Except as specifically provided in this chapter, the following statewide codes are exempt from this chapter:
    1. The Standards for Electrical Wiring and Equipment, as contained in North Dakota Administrative Code article 24-02.
    2. The State Plumbing Code, as contained in North Dakota Administrative Code article 62-03.
    3. The State Fire Code, as contained in the rules of the state fire marshal as provided in section 18-01-04.
  2. The following buildings are exempt from this chapter:
    1. Buildings which are neither heated nor cooled.
    2. Buildings used whose peak design rate of energy usage is less than one watt per square foot [929.0304 square centimeters] or three and four-tenths British thermal units an hour per square foot [929.0304 square centimeters] of floor area.
    3. Restored or reconstructed buildings deliberately preserved beyond their normal term of use because of historical associations, architectural interests, or public policy, or buildings otherwise qualified as a pioneer building, historical site, state monument, or other similar designation pursuant to state or local law.
  3. Any building used for agricultural purposes, unless a place of human habitation or for use by the public, is exempt from this chapter.

Source:

S.L. 1979, ch. 548, § 4; 2011, ch. 401, § 2.

54-21.3-04.1. Accessibility standards — Automatic doors.

  1. Notwithstanding section 54-21.3-04, every building or facility subject to the federal Americans with Disabilities Act of 1990 [Pub. L. 101-336; 104 Stat. 327] must conform to the 2010 Americans with Disabilities Act standards for accessible design as contained in title 28, Code of Federal Regulations, parts 35 and 36 [28 CFR 35 and 36].
  2. A state agency or the governing body of a political subdivision shall require from any individual preparing plans and specifications for a building or facility subject to the Americans with Disabilities Act of 1990 [Pub. L. 101-336; 104 Stat. 327], a statement that the plans and specifications are, in the professional judgment of that individual, in conformance with the Americans with Disabilities Act standards for accessible design as provided under subsection 1. A statement of conformance must be submitted to the department of commerce division of community services for recording.
  3. After July 31, 2013, a newly designed and constructed building in excess of seven thousand five hundred square feet [696.77 square meters] which is classified within the state building code as assembly, business, educational, institutional, or mercantile occupancy and required by the state building code to be accessible must include at the primary exterior public entrance an automatic door or power-assisted manual door that complies with the requirements of the Americans with Disabilities Act of 1990, revised 2010. If a multiple unit building does not have a primary exterior public entrance, an individual unit within that building is not required to include an automatic door or power-assisted manual door unless that individual unit is in excess of seven thousand five hundred square feet [696.77 square meters].

Source:

S.L. 1993, ch. 5, § 20; 1993, ch. 261, § 4; 1999, ch. 475, § 4; 2001, ch. 488, § 28; 2013, ch. 409, § 1.

Effective Date.

The 2013 amendment of this section by section 1 of chapter 409, S.L. 2013 became effective August 1, 2013.

54-21.3-04.2. Notice of federal accessibility guidelines required.

A building permit issued under section 11-33-18, subsection 6 of section 40-05-02, or other similar grant of authority must contain the following statement:

Federal law may require this construction project to conform with the Americans with Disabilities Act Accessibility Guidelines for Buildings and Facilities.

Source:

S.L. 1993, ch. 261, § 5.

54-21.3-04.3. Used temporary work camp housing — Exemption.

State or local government code enforcement agencies may allow exemptions or accept alternate methods for construction and placement of temporary work camp housing that has been previously used as housing or temporary work camp housing in a different location, provided that the waiver does not substantially compromise the health or safety of workers. This authority is granted to code enforcement agencies enforcing the state building code, the State Electrical Code, and the State Plumbing Code when acting within their existing jurisdiction. This section does not apply to newly constructed temporary work camp housing.

  1. State or local government code enforcement agencies, acting within their existing jurisdiction, may conduct a nondestructive walkthrough inspection of previously used temporary work camp housing to ensure compliance with applicable codes, including the state building code, State Electrical Code, and State Plumbing Code. If the housing is found to be compliant with these codes, or to not substantially compromise the health or safety of workers pursuant to a waiver under this section, the code enforcement agency may issue a limited certificate of inspection, which is effective for a period of five years. Residents may not be permitted to move into or live in temporary work camp housing unless the housing has a current limited certificate of inspection or has been found to meet all applicable codes and requirements by any code enforcement agency having jurisdiction.
  2. The applicable codes, including the state building code, the State Electrical Code, and the State Plumbing Code, are applicable as a standard for liability in legal actions against owners or operators of temporary work camp housing if exemptions are granted.
  3. An owner of temporary work camp housing has the duty to remove that housing and all related above-grade and below-grade infrastructure within one hundred twenty days after the temporary work camp housing is vacated. Any city or county may abate any public nuisance caused by vacated temporary work camp housing within its jurisdiction. An owner of temporary work camp housing shall provide the city or county where the temporary work camp housing is installed with a surety bond, letter of credit, or other security instrument in the form and in an amount specified by the city or county. These funds must be used to cover actual expenses that may be incurred by the city or county in removal of the temporary work camp housing, including any above-grade or below-grade infrastructure. The owner is liable for any expenses that are reasonably incurred by the city or county which exceed the amount of the security.

Source:

S.L. 2011, ch. 401, § 3.

54-21.3-05. Enforcement of code by city, township, or county — Relinquishment.

A city or township may administer and enforce the state building code only within its jurisdictional area. A county may administer and enforce the state building code within those areas of the county in which the state building code is not administered by a city or township. Cities and townships may relinquish their authority to administer and enforce the state building code to the county in which they are located in the manner provided by section 11-33-20. The governing body of a city, township, or county electing to administer and enforce the state building code may designate an enforcement agency. Cities, townships, and counties may provide by agreement for joint administration and enforcement and may contract for private enforcement of the state building code.

Source:

S.L. 1979, ch. 548, § 5.

54-21.3-06. Continuing education — Responsibility. [Repealed]

Repealed by S.L. 1983, ch. 511, § 8.

54-21.3-07. Modular residential and commercial structures — Third-party inspections — Rules.

The manufacturer of a modular residential or commercial structure that is built in a factory shall contract with a third party for the inspection of the structure for compliance with all applicable building, electrical, fire, and plumbing codes and standards during the manufacturing process in the factory. A third party that conducts inspections and certifies compliance with all applicable codes and standards must be approved as a certified third-party inspector by the division of community services. The department of commerce shall adopt rules for the certification of inspectors and for the procedures to be followed in conducting inspections of modular residential and commercial structures. When a manufacturer of modular residential or commercial structures contracts with a certified third-party inspector to monitor compliance with all applicable building, electrical, fire, and plumbing codes and standards for a modular residential or commercial structure, no further inspection by state or local building, electrical, fire, or plumbing inspectors may be required for that structure during the manufacturing process in the factory. This section does not apply to a factory manufacturing fewer than two residential or commercial structures per year.

Source:

S.L. 2001, ch. 485, § 2; 2003, ch. 473, § 2; 2011, ch. 403, § 1.

54-21.3-08. Adoption of an installation program — Penalty.

The department of commerce shall adopt rules establishing a manufactured home installation program for all manufactured homes built in accordance with the manufactured homes construction and safety standards under 24 CFR 3280 adopted pursuant to the Manufactured Housing Construction and Safety Standards Act [42 U.S.C. 5401 et seq.]. The rules must establish minimum installation standards. The rules may include standards, fees, and requirements for certification and training of installers, inspections of installations, dispute resolution, penalties for noncompliance, and costs of processing complaints. The standards do not apply to manufactured homes installed before the original effective date of the rules. Manufactured homes may be installed in accordance with either standards adopted in the rules or the manufacturer’s instructions. The rules must include provisions for the enforcement of these standards. Any person who violates this section or any rule adopted under this section is guilty of a class A misdemeanor.

Source:

S.L. 2003, ch. 474, § 1; 2005, ch. 491, § 1.

CHAPTER 54-21.4 Interstate Compact on Industrialized Modular Buildings

54-21.4-01. Compact on industrialized or modular buildings.

The interstate compact on industrialized or modular buildings is entered with all jurisdictions legally joining the compact in the form substantially as follows:

Source:

S.L. 2011, ch. 404, § 1.

ARTICLE I FINDINGS AND DECLARATIONS OF POLICY

  1. The compacting states find that:
    1. Industrialized or modular buildings are constructed in factories in the various states and are a growing segment of the nation’s affordable housing and commercial building stock.
    2. The regulation of industrialized or modular buildings varies from state to state and locality to locality, which creates confusion and burdens state and local building officials and the industrialized or modular building industry.
    3. Regulation by multiple jurisdictions imposes additional costs, which are ultimately borne by the owners and users of industrialized or modular buildings, restricts market access, and discourages the development and incorporation of new technologies.
  2. It is the policy of each of the compacting states to:
    1. Provide the states which regulate the design and construction of industrialized or modular buildings with a program to coordinate and uniformly adopt and administer the states’ rules and regulations for such buildings, all in a manner to assure interstate reciprocity.
    2. Provide to the United States Congress assurances that would preclude the need for a voluntary preemptive federal regulatory system for modular housing, as outlined in section 572 of the Housing and Community Development Act of 1987, including development of model standards for modular housing construction, such that design and performance will ensure quality, durability, and safety; will be in accordance with lifecycle cost-effective energy conservation standards; all to promote the lowest total construction and operating costs over the life of such housing.
  3. “Interim reciprocal agreement” means a formal reciprocity agreement between a noncompacting state wherein the noncompacting state agrees that labels evidencing compliance with the model rules and regulations for industrialized or modular buildings, as authorized in article VIII, section 9, shall be accepted by the state and its subdivisions to permit installation and use of industrialized or modular buildings. Further, the noncompacting state agrees that by legislation or regulation, and appropriate enforcement by uniform administrative procedures, the noncompacting state requires all industrialized or modular building manufacturers within that state to comply with the model rules and regulations for industrialized or modular buildings.
  4. “State” means a state of the United States, territory or possession of the United States, the District of Columbia, or the Commonwealth of Puerto Rico.
  5. “Uniform administrative procedures” means the procedures adopted by the commission, after consideration of any recommendations from the rules development committee, which state and local officials, and other parties, in one state, will utilize to assure state and local officials, and other parties in other states, of the substantial compliance of industrialized or modular building construction with the construction standard of requirements of such other states; to assess the adequacy of building systems; and to verify and assure the competency and performance of evaluation and inspection agencies.
  6. “Model rules and regulations for industrialized or modular buildings” means the construction standards adopted by the commission, after consideration of any recommendations from the rules development committee, which govern the design, manufacture, handling, storage, delivery, and installation of industrialized or modular buildings and building components. The construction standards and any amendments thereof shall conform insofar as practicable to model building codes and referenced standards generally accepted and in use throughout the United States.
  7. Assist and support organizations which train state and local government and other program personnel in the use of uniform industrialized or modular building plan review and inspection programs.
  8. Encourage and promote coordination of state regulatory action relating to manufacturers, public, or private inspection programs.
  9. Create and sell labels to be affixed to industrialized or modular building units, constructed in or regulated by compacting states, where such labels will evidence compliance with the model rules and regulations for industrialized or modular buildings, enforced in accordance with the uniform administrative procedures. The commission may use receipts from the sale of labels to help defray the operating expenses of the commission.
  10. Assist and support compacting states’ investigations into and resolutions of consumer complaints which relate to industrialized or modular buildings constructed in one compacting state and sited in another compacting state.
  11. Borrow, accept, or contract for the services of personnel from any state or the United States or any subdivision or agency thereof, from any interstate agency, or from any institution, association, person, firm, or corporation.
  12. Accept for any of its purposes and functions under this compact any and all donations, and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any state or the United States or any subdivision or agency thereof, from any interstate agency, or from any institution, person, firm, or corporation, and may receive, utilize, and dispose of the same.
  13. Establish and maintain such facilities as may be necessary for the transacting of its business. The commission may acquire, hold, and convey real and personal property and any interest therein.
  14. Enter into contracts and agreements, including interim reciprocal agreements with noncompacting states.

ARTICLE II DEFINITIONS

As used in this compact, unless the context clearly requires otherwise:

1. “Commission” means the interstate industrialized or modular buildings commission.

2. “Industrialized or modular building” means any building which is of closed construction, i.e., constructed in such a manner that concealed parts or processes of manufacture cannot be inspected at the site, without disassembly, damage or destruction, and which is made or assembled in manufacturing facilities, off the building site, for installation, or assembly and installation, on the building site. “Industrialized or modular building” includes modular housing which is factory-built single-family and multifamily housing, including closed wall panelized housing, and other modular, nonresidential buildings. “Industrialized or modular building” does not include any structure subject to the requirements of the National Manufactured Home Construction and Safety Standards Act of 1974.

ARTICLE III CREATION OF COMMISSION

The compacting states hereby create the interstate industrialized or modular buildings commission, hereinafter called commission. Said commission shall be a body corporate of each compacting state and an agency thereof. The commission shall have all the powers and duties set forth herein and such additional powers as may be conferred upon it by subsequent action of the respective legislatures of the compacting states.

ARTICLE IV SELECTION OF COMMISSIONERS

The commission shall be selected as follows. As each state becomes a compacting state, one resident shall be appointed as commissioner. The commissioner shall be selected by the governor of the compacting state, being designated from the state agency charged with regulating industrialized or modular buildings or, if such state agency does not exist, being designated from among those building officials with the most appropriate responsibilities in the state. The commissioner may designate another official as an alternate to act on behalf of the commissioner at commission meetings which the commissioner is unable to attend.

Each state commissioner shall be appointed, suspended, or removed and shall serve subject to and in accordance with the laws of the state which said commissioner represents; and each vacancy occurring shall be filled in accordance with the laws of the state wherein the vacancy exists.

When three state commissioners have been appointed in the manner described, those state commissioners shall select one additional commissioner who shall be a representative of manufacturers of industrial-use or commercial-use industrialized or modular buildings. When six state commissioners have been appointed in the manner described, the state commissioners shall select a second additional commissioner who shall be a representative of consumers of industrialized or modular buildings. With each addition of three state commissioners, the state commissioners shall appoint one additional representative commissioner, alternating between a representative of manufacturers of industrialized or modular buildings and consumers of industrialized or modular buildings. The ratio between state commissioners and representative commissioners shall be three to one. In the event states withdraw from the compact or, for any other reason, the number of state commissioners is reduced, the state commissioners shall remove the last added representative commissioner as necessary to maintain a ratio of state commissioners to representative commissioners of three to one.

Upon a majority vote of the state commissioners, the state commissioners may remove, fill a vacancy created by, or replace any representative commissioner, provided that any replacement is made from the same representative group and a three-to-one ratio is maintained. Unless provided otherwise, the representative commissioners have the same authority and responsibility as the state commissioners.

In addition, the commission may have as a member one commissioner representing the United States government if federal law authorizes such representation. Such commissioner shall not vote on matters before the commission. Such commission shall be appointed by the President of the United States, or in such other manner as may be provided by Congress.

ARTICLE V VOTING

Each commissioner, except the commissioner representing the United States government, shall be entitled to one vote on the commission. A majority of the commissioners shall constitute a quorum for the transaction of business. Any business transacted at any meeting of the commission must be by affirmative vote of a majority of the quorum present and voting.

ARTICLE VI ORGANIZATION AND MANAGEMENT

The commission shall elect annually, from among its members, a chairman, a vice chairman, and a treasurer. The commission shall also select a secretariat, which shall provide an individual who shall serve as secretary of the commission. The commission shall fix and determine the duties and compensation of the secretariat.

The commissioners shall serve without compensation, but shall be reimbursed for their actual and necessary expenses from the funds of the commission.

The commission shall adopt a seal.

The commission shall adopt bylaws, rules, and regulations for the conduct of its business, and shall have the power to amend and rescind these bylaws, rules, and regulations.

The commission shall establish and maintain an office at the same location as the office maintained by the secretariat for the transaction of its business and may meet at any time, but in any event must meet at least once a year. The chairman may call additional meetings and upon the request of a majority of the commissioners of three or more of the compacting states shall call an additional meeting.

The commission annually shall make the governor and legislature of each compacting state a report covering its activities for the preceding year. Any donation or grant accepted by the commission or services borrowed shall be reported in the annual report of the commission and shall include the nature, amount, and conditions, if any, of the donation, gift, grant, or services borrowed and the identity of the donor or lender. The commission may make additional reports as it may deem desirable.

ARTICLE VII COMMITTEES

The commission will establish such committees as it deems necessary, including the following:

1. An executive committee which functions when the full commission is not meeting, as provided in the bylaws of the commission. The executive committee will ensure that proper procedures are followed in implementing the commission’s programs and in carrying out the activities of the compact. The executive committee shall be elected by vote of the commission. It shall be comprised of at least three and no more than nine commissioners, selected from those commissioners who are representatives of the governor of their respective state.

2. A rules development committee appointed by the commission. The committee shall be consensus-based and consist of not less than seven nor more than twenty-one members. Committee members will include state building regulatory officials; manufacturers of industrialized or modular buildings; private, third-party inspection agencies; and consumers. This committee may recommend procedures which state and local officials, and other parties in one state may utilize to assure state and local officials, and other parties in other states of the substantial compliance of industrialized or modular building construction with the construction standard requirements of such other states; to assess the adequacy of building systems; and to verify and assure the competency and performance of evaluation and inspection agencies. This committee may also recommend construction standards for the design, manufacture, handling, storage, delivery, and installation of industrialized or modular buildings and building components. The committee will submit its recommendations to the commission, for the commission’s consideration in adopting and amending the uniform administrative procedures and the model rules and regulations for industrialized or modular buildings. The committee may also review the regulatory programs of the compacting states to determine whether those programs are consistent with the uniform administrative procedures or the model rules and regulations for industrialized or modular buildings and may make recommendations concerning the states’ programs to the commission. In carrying out its functions, the rules committee may conduct public hearings and otherwise solicit public input and comment.

3. Any other advisory, coordinating, or technical committees, membership on which may include private persons, public officials, associations, or organizations. Such committees may consider any matter of concern to the commission.

4. Such additional committees as the commission’s bylaws may provide.

ARTICLE VIII POWER AND AUTHORITY

In addition to the powers conferred elsewhere in this compact, the commission shall have power to:

1. Collect, analyze, and disseminate information relating to industrialized or modular buildings.

2. Undertake studies of existing laws, codes, rules and regulations, and administrative practices of the states relating to industrialized or modular buildings.

3. Assist and support committees and organizations which promulgate, maintain, and update model codes or recommendations for uniform administrative procedures or model rules and regulations for industrialized or modular buildings.

4. Adopt and amend uniform administrative procedures and model rules and regulations for industrialized or modular buildings.

5. Make recommendations to compacting states for the purpose of bringing such states’ laws, codes, rules and regulations, and administrative practices into conformance with the uniform administrative procedures or the model rules and regulations for industrialized or modular buildings, provided that such recommendations shall be made to the appropriate state agency with due consideration for the desirability of uniformity while also giving appropriate consideration to special circumstances which may justify variations necessary to meet unique local conditions.

6. Assist and support the compacting states with monitoring of plan review programs and inspection programs, which will assure that the compacting states have the benefit of uniform industrialized or modular building plan review and inspection programs.

ARTICLE IX FINANCE

The commission shall submit to the governor or designated officer or officers of each compacting state a budget of its estimated expenditures for such period as may be required by the laws of that state for presentation to the legislature thereof.

Each of the commission’s budgets of estimated expenditures shall contain specific recommendations of the amounts to be appropriated by each of the compacting states. The total amount of appropriations requested under any such budget shall be apportioned among the compacting states as follows: one-half in equal shares; one-fourth among the compacting states in accordance with the ratio of their populations to the total population of the compacting states, based on the last decennial federal census; and one-fourth among the compacting states in accordance with the ratio of industrialized or modular building units manufactured in each state to the total of all units manufactured in all of the compacting states.

The commission shall not pledge the credit of any compacting state. The commission may meet any of its obligations in whole or in part with funds available to it by donations, grants, or sale of labels provided that the commission takes specific action setting aside such funds prior to incurring any obligation to be met in whole or in part in such manner. Except if the commission makes use of funds available to it by donations, grants, or sale of labels, the commission shall not incur any obligation prior to the allotment of funds by the compacting states adequate to meet the same.

The commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the commission shall be subject to the audit and accounting procedures established under its bylaws. All receipts and disbursements of funds handled by the commission shall be audited yearly by a certified or licensed public accountant, and the report of the audit shall be included in and become part of the annual report of the commission.

The accounts of the commission shall be open at any reasonable time for inspection by duly constituted officers of the compacting states and any person authorized by the commission.

Nothing contained in this article shall be construed to prevent commission compliance relating to audit or inspection of accounts by or on behalf of any government contributing to the support of the commission.

ARTICLE X ENTRY INTO FORCE AND WITHDRAWAL

This compact shall enter into force when enacted into law by any three states. Thereafter, this compact shall become effective as to any other state upon its enactment thereof. The commission shall arrange for notification of all compacting states whenever there is a new enactment of the compact.

Any compacting state may withdraw from this compact by enacting a statute repealing the same. No withdrawal shall affect any liability already incurred by or chargeable to a compacting state prior to the time of such withdrawal.

ARTICLE XI RECIPROCITY

If the commission determines that the standards for industrialized or modular buildings prescribed by statute, rule, or regulation of compacting state are at least equal to the commission’s model rules and regulations for industrialized or modular buildings, and that such state standards are enforced by the compacting state in accordance with the uniform administrative procedures, industrialized or modular buildings approved by such a compacting state shall be deemed to have been approved by all the compacting states for placement in those states in accordance with procedures prescribed by the commission.

ARTICLE XII EFFECT ON OTHER LAWS AND JURISDICTION

Nothing in this compact shall be construed to:

1. Withdraw or limit the jurisdiction of any state or local court or administrative officer or body with respect to any person, corporation, or other entity or subject matter, except to the extent that such jurisdiction pursuant to this compact, is expressly conferred upon another agency or body.

2. Supersede or limit the jurisdiction of any court of the United States.

ARTICLE XIII CONSTRUCTION AND SEVERABILITY

This compact shall be liberally construed so as to effectuate the purposes thereof. The provisions of this compact shall be severable and if any phrase, clause, sentence, or provision of this compact is declared to be contrary to the constitution of any state or of the United States or the applicability thereof to any government, agency, person, or circumstances is held invalid, the validity of the remainder of this compact and the applicability thereof to any government, agency, person, or circumstance shall not be affected thereby. If this compact shall be held contrary to the constitution of any state participating therein, the compact shall remain in full force and effect as to the remaining party states and in full force and effect as to the state affected as to all severable matters. If this compact shall be held contrary to the constitution of any state participating therein, the compact shall remain in full force and effect as to the remaining party states and in full force and effect as to the state affected as to all severable matters.

CHAPTER 54-22 Purchasing Agent [Repealed]

[Repealed by S.L. 1959, ch. 372, § 117]

CHAPTER 54-23 Institutions Under Control of Director of Institutions [Repealed]

[Each section of this chapter has been repealed or omitted as not of a general or permanent nature. The repeals may be found at S.L. 1957, ch. 196, § 22; S.L. 1959, ch. 372, § 117; S.L. 1965, ch. 181, § 33; S.L. 1965, ch. 203, § 86; S.L. 1977, ch. 420, § 3; S.L. 1979, ch. 568, § 11; S.L. 1989, ch. 156, § 54; S.L. 1991, ch. 592, § 47; S.L. 1991, ch. 595, § 3]

CHAPTER 54-23.1 State Communications System [Repealed]

[Repealed by S.L. 1987, ch. 562, § 13]

CHAPTER 54-23.2 State Radio Broadcasting System [Repealed]

[Repealed by S.L. 2009, ch. 309, § 2]

Cross-References.

See now N.D.C.C. ch. 37-17.3.

54-23.2-01. Definitions. [Repealed]

Repealed by S.L. 2009, ch. 309, § 2.

54-23.2-02. State radio broadcasting system. [Repealed]

Repealed by S.L. 2009, ch. 309, § 2.

54-23.2-03. Political subdivisions may furnish receiving and transmitting sets for enforcement purposes. [Repealed]

Repealed by S.L. 2009, ch. 309, § 2.

54-23.2-04. Broadcasting dispatches — Reports required. [Repealed]

Repealed by S.L. 2009, ch. 309, § 2.

54-23.2-04.1. Lost or runaway children and missing persons. [Repealed]

Repealed by S.L. 2009, ch. 309, § 2.

54-23.2-04.2. School enrollment procedures to aid identification and location of missing children. [Repealed]

Repealed by S.L. 2009, ch. 309, § 2.

54-23.2-05. Emergency service for certain messages. [Repealed]

Repealed by S.L. 2009, ch. 309, § 2.

54-23.2-06. Law enforcement radio equipment on private automobiles prohibited without permit. [Repealed]

Repealed by S.L. 2009, ch. 309, § 2.

54-23.2-07. Maintenance of radio system — Personnel, equipment, and expense. [Repealed]

Repealed by S.L. 2009, ch. 309, § 2.

54-23.2-08. Payment for law enforcement system. [Repealed]

Repealed by S.L. 2009, ch. 309, § 2.

54-23.2-09. Mobile data terminal and 911 service fees. [Repealed]

Repealed by S.L. 2009, ch. 309, § 2.

CHAPTER 54-23.3 Department of Corrections and Rehabilitation

54-23.3-01. Department of corrections and rehabilitation — Creation — Duties — Programs.

There is hereby created a department of corrections and rehabilitation that is responsible to the governor. The department is responsible for the direction and general administrative supervision, guidance, and planning of adult and juvenile correctional facilities and programs within the state. The department includes a division of adult services, a division of juvenile services, and such other divisions as are determined necessary for the effective and efficient operation of the department. Programs and facilities included in the department are the North Dakota state penitentiary or any of its affiliated facilities, parole and probation for adult offenders, North Dakota youth correctional center, community programs and services for juvenile offenders under the division of juvenile services, and any other programs developed by the department.

Source:

S.L. 1989, ch 156, § 53; 1991, ch. 116, § 22; 1991, ch. 592, § 40; 1995, ch. 120, § 25.

54-23.3-01.1. Definitions.

As used in this chapter:

  1. “Director” means the director of the department of corrections and rehabilitation. The director may designate officers of the department to assist in carrying out the director’s duties.
  2. “Inmate” means an offender who the district court has committed to the legal and physical custody of the department of corrections and rehabilitation and who is confined in the North Dakota state penitentiary or its affiliated facilities or is confined in another state’s correctional facility, a federal correctional facility, a county correctional facility or regional corrections center, a private correctional facility, or has been placed in a community placement program, treatment facility, or transitional center by the department.
  3. “Juvenile offender” means an offender who is supervised by an officer of the juvenile court or has been adjudicated unruly or delinquent by the juvenile court and placed in the custody of the division of juvenile services.
  4. “Offender” means a person who has been committed to the legal and physical custody of the department of corrections and rehabilitation, or placed under the supervision and management of the department by a district court, by the parole board, or through the interstate compact for the supervision of adult offenders.
  5. “Parolee” means an offender who has been placed under the supervision and management of the department of corrections and rehabilitation by the parole board or through the interstate compact for the supervision of adult offenders.
  6. “Probationer” means an offender who has been placed under the supervision and management of the department of corrections and rehabilitation by a district court or through the interstate compact for the supervision of adult offenders.

Source:

S.L. 2005, ch. 108, § 25.

54-23.3-02. Purpose.

The purpose of the department of corrections and rehabilitation is:

  1. To develop a statewide correctional philosophy that will provide direction, goals, and standards for corrections.
  2. To provide for the care, custody, discipline, training, and treatment of persons committed to state correctional facilities and programs.
  3. To coordinate and provide a continuum of correctional services to both adult and juvenile clients.
  4. To promote and develop close communication and mutual understanding of corrections issues and concerns between the courts and the department.
  5. To provide joint training of staff and career opportunities for corrections staff.
  6. To work with local and state entities to develop alternatives to conventional incarceration for those offenders who can be dealt with more effectively in less restrictive, community-based facilities and programs.

Source:

S.L. 1989, ch. 156, § 53.

54-23.3-03. Director — Appointment — Qualifications — Compensation.

The chief administrative officer of the department is the director of the department of corrections and rehabilitation, who must be appointed by the governor. The position of director is not a classified position and the director shall serve at the pleasure of the governor. The person appointed as director must hold at least a bachelor’s degree from an accredited college or university and must have held a management position in correctional or related work for at least five years. The governor shall set the salary of the director within the limits of legislative appropriations.

Source:

S.L. 1989, ch. 156, § 53; 1991, ch. 592, § 41; 1995, ch. 512, § 1.

54-23.3-04. Director — Powers and duties.

The director of the department of corrections and rehabilitation has the following powers and duties:

  1. To manage and control all institutions and programs within the department and to administer and enforce the laws with which the department is charged.
  2. To promote a unified criminal justice system and develop a statewide correctional philosophy in cooperation with the courts, law enforcement, and other entities in the criminal justice system.
  3. To develop necessary programs and services for adult and juvenile offenders, within legislative appropriations, to provide for their treatment and rehabilitation and to recognize their special needs.
  4. To develop, maintain, and revise as required a comprehensive master plan for the state’s correctional system which must indicate the system’s needs and resources.
  5. To establish policies and procedures necessary to carry out the responsibilities of the department.
  6. To organize the department into an adult services division, a juvenile services division, and such other divisions that will enable it to function most effectively and efficiently.
  7. To exercise general supervisory and appointing authority over all department employees, subject to any applicable personnel laws and rules.
  8. To employ and remove the director of the division of juvenile services, the director of the division of adult services, and other division directors and personnel who may be deemed necessary by the director of the department. Until the director of the department of corrections and rehabilitation has been granted the full-time equivalent positions within the department’s budget for the division director positions, or when the positions are vacant, the responsibilities of these positions must be assumed by the director of the department of corrections and rehabilitation or by the director’s designee.
  9. To delegate authority to subordinates as necessary and appropriate, clearly delineating the delegated authority and limitations.
  10. To promote the development of alternatives to conventional incarceration for those offenders who can be dealt with more effectively in less restrictive, community-based facilities and programs.
  11. To contract for correctional services, and to provide such services, with the United States, Canada, other states, and any of their governmental subdivisions and agencies and with another agency or governmental unit in this state, or with any private or public correctional or treatment facility or agency. The director shall reimburse the entity at an amount based upon the services required for the housing and treatment of inmates. The director may also contract to provide services, without cost to the state, for persons held by any of the jurisdictions mentioned in this section. If a treaty is in effect between the United States and a foreign country for the transfer and exchange of offenders, the director of the department of corrections and rehabilitation, upon recommendation of the warden and the approval of the governor, may on behalf of the state under the terms of the treaty transfer or exchange offenders and take any action necessary for the state to participate in the treaty.
  12. To lease land owned by the state under the jurisdiction of the department of corrections and rehabilitation. A lease by the director is not subject to the conditions of this subsection. The director may sell or exchange, with the governor’s approval, selected portions of land owned by the state under the jurisdiction of the department of corrections and rehabilitation and may sell, trade, lease, or grant mining easements to extract and remove any resources found on, in, or under said department of corrections and rehabilitation lands, including clay, coal, oil, gas, gravel, sand, dirt, and sod, under the following conditions:
    1. Any such sale, exchange, or transaction must allow for the submission of bids pursuant to a notice published in at least one official county newspaper. The sale, exchange, or transaction is exempt from the provisions of sections 54-01-05.2 and 54-01-05.5.
    2. Any such sale, exchange, or transaction may not be made for less than the appraised value, and the state reserves the right to reject any and all bids.
    3. The commissioner of university and school lands or the commissioner’s designee shall provide technical assistance and advice to the director of the department of corrections and rehabilitation in any transaction.
    4. All legal documents, papers, and instruments required by any transaction must be reviewed and approved as to form and legality by the attorney general.
    5. Any of these transactions can be entered into on any terms and conditions permitted by law and approved by the governor.
    6. All funds and proceeds realized from any of these transactions must be placed in an interest-bearing fund in the state treasury, designated as the North Dakota state penitentiary land fund to be used for the acquisition of additional land and facilities; to maintain, expand, or develop affiliated facilities; to relocate the Missouri River correctional center and the farming and ranching operations of the North Dakota state penitentiary; or for penitentiary renovation.
  13. To provide meals at a fair value or without a charge to officers and employees of the department as required by their job assignments.
  14. To accept property forfeited or seized in accordance with law.
  15. To collect costs and fees from persons on correctional supervision for the supervision services, control devices, and programs as implemented by the department to assist in making community corrections an effective alternative to incarceration. A person on active supervision is presumed able to pay assessed fees unless the director, giving due consideration to the fiscal obligations and resources of the probationer, determines otherwise. A person with the ability to pay assessed fees who refuses to pay must be returned to the court for a judicial determination. In addition to any other remedies allowed by law, the department may enforce and collect any unpaid supervision costs and fees imposed as a condition of parole, probation, or under a program implemented under this section in a civil judgment entered by a district court of this state and may employ licensed collection agencies to enforce and collect any unpaid supervision costs and fees.
  16. To collect the costs of any presentence investigation and report incurred under subsection 11 of section 12.1-32-02, giving due consideration to the financial obligations and resources of the defendant.
  17. To employ personnel and to establish policies and procedures to supervise sexually dangerous individuals released to community placement on an outpatient basis in accordance with section 25-03.3-24.

Source:

S.L. 1989, ch. 156, § 53; 1991, ch. 595, § 2; 1993, ch. 128, § 5; 1993, ch. 129, § 4; 1993, ch. 131, § 3; 1999, ch. 113, § 17; 2001, ch. 139, § 2; 2003, ch. 476, § 1; 2011, ch. 405, § 2.

Notes to Decisions

Disciplinary Decision.

After a deputy warden’s initial suspension became final, there was no statutory support for subsequent review or further discipline. Although the director of the Department of Corrections and Rehabilitation may not have agreed with the state penitentiary warden’s disciplinary decision, the director delegated her authority to the warden, and the director did not have any authority to review the warden’s decision or to impose further discipline for the same conduct once the warden’s decision became final. Heier v. N.D. Dep't of Corr. & Rehab., 2012 ND 171, 820 N.W.2d 394, 2012 N.D. LEXIS 168 (N.D. 2012).

Prisoner Transfers.

Right to a hearing before a prison transfer, is “sufficiently embraced within Fourteenth Amendment ‘liberty’” to entitle a prisoner to minimum procedures ensuring that this right is not arbitrarily abrogated. In North Dakota, this statutorily created right exists only when the prisoner does not consent to the transfer. Having consented, prisoner had neither a statutory nor a constitutional right to a hearing. Former N.D.C.C. § 54-21-25. Kelley v. Powers, 477 N.W.2d 586, 1991 N.D. LEXIS 201 (N.D. 1991).

Collection of Fees.

Fees collected by director of department of corrections under subsection (16) (now subsection (15)) is a civil fee for the cost of rehabilitative and supervision services for probationers, and is not a new condition of probation which would violate the separation of powers doctrine by delegating the judicial duty to impose conditions of probation. Glaspie v. Little, 1997 ND 108, 564 N.W.2d 651, 1997 N.D. LEXIS 109 (N.D. 1997).

Collection of fees by director of department of corrections under subsection (16) (now subsection (15)) from persons on probation prior to the effective date of that statute is not a retroactive application of the statute in violation of N.D.C.C. § 1-02-10, where the fees do not apply to transactions prior to the statute’s effective date. Glaspie v. Little, 1997 ND 108, 564 N.W.2d 651, 1997 N.D. LEXIS 109 (N.D. 1997).

Inapplicability of Administrative Agencies Practice Act.

Under N.D.C.C. § 28-32-01, the director of institutions (now director of department of corrections and rehabilitation) is excluded from the definition of an “administrative agency,” and therefore, is not subject to the provisions of the Administrative Agencies Practice Act. Jensen v. Little, 459 N.W.2d 237, 1990 N.D. LEXIS 157 (N.D. 1990).

DECISIONS UNDER PRIOR LAW

Interstate Transfer of Prisoners.

Prisoners convicted and sentenced to prison in this state may not be constitutionally transferred to a prison in another state, except in emergency situations, without compliance with minimum procedural due process standards of notice and hearing. State ex rel. Olson v. Maxwell, 259 N.W.2d 621, 1977 N.D. LEXIS 192 (N.D. 1977).

Valid Contracts.

Where the board exercised its honest judgment, accepted the bids of and entered into contracts with the lowest bidders, such contracts were valid even though the method followed in determining the lowest bidder and letting the contracts was not that contemplated by statute. Washburn Lignite Coal Co. v. Murphy, 54 N.D. 113, 208 N.W. 837, 1926 N.D. LEXIS 121 (N.D. 1926).

54-23.3-05. Appointment and removal of officers.

The director of the department of corrections and rehabilitation with the approval of the governor may appoint a director of the division of juvenile services, a director of the division of adult services, and other division directors and personnel as deemed necessary for the effective and efficient operation of the department. The director of the division of juvenile services, the director of the division of adult services, and other division directors who may be appointed shall meet qualifications as established for the classified service. All other officers and employees of each division must be appointed and removed by the director of the department of corrections and rehabilitation. All officers and employees of the department of corrections and rehabilitation are subject to the provisions of the state personnel policies.

Source:

S.L. 1989, ch. 156, § 53; 1991, ch. 592, § 42; 2003, ch. 493, § 5; 2013, ch. 410, § 2.

Effective Date.

The 2013 amendment of this section by section 2 of chapter 410, S.L. 2013 became effective August 1, 2013.

54-23.3-06. Salaries of division directors and other officers.

The director of the department of corrections and rehabilitation shall determine the salary of each division director within the limits of legislative appropriations and within the salary range of the classified position as established by North Dakota human resource management services for the position. All other officers and employees shall receive salaries determined by their division director and approved by the director of the department.

Source:

S.L. 1989, ch. 156, § 53; 2003, ch. 493, § 6.

54-23.3-07. Confidentiality of selected information pertaining to department of corrections and rehabilitation employees. [Repealed]

Repealed by S.L. 1995, ch. 428, § 3.

54-23.3-07.1. Exemption of certain internal investigation records.

Notwithstanding subsection 6 of section 44-04-18.1 and except as required under subsection 1 of section 44-04-18.11, records relating to the department of corrections and rehabilitation’s internal investigations are exempt if:

  1. The records could reasonably be used to identify victims, witnesses, employees providing investigative information, or individuals providing information as correctional confidential informants; and
  2. Disclosure would cause a credible threat of violence or other harm.

Source:

S.L. 2021, ch. 405, § 1, eff August 1, 2021.

54-23.3-08. Authority to lease land under the jurisdiction of the department.

The department of corrections and rehabilitation may lease land under the jurisdiction of the department for the purpose of the construction and operation of a prerelease center. Subsection 12 of section 54-23.3-04 does not apply to the lease authorized by this section. The lease expires when the leased property is no longer used for a prerelease center, when the lease operator breaches any material part of the lease, or twenty years after the date of the lease, whichever occurs first, and all rights, title, and interest in any buildings, fixtures, and improvements vest and remain with the state.

Source:

S.L. 2001, ch. 41, § 3.

54-23.3-09. Reports regarding new programs. [Repealed]

Source:

S.L. 2001, ch. 41, § 12; 2009, ch. 482, § 98; Repealed by 2017, ch. 373, § 4, eff August 1, 2017.

54-23.3-10. Community behavioral health program — Reports to legislative management and governor. [Effective through August 31, 2022]

  1. The department of corrections and rehabilitation shall establish and implement a community behavioral health program to provide comprehensive community-based services for individuals who have serious behavioral health conditions, as a term and condition of parole under chapter 12-59, and as a sentencing alternative under section 12.1-32-02.
  2. In developing the program under this section, the department of corrections and rehabilitation shall collaborate with the department of human services to:
    1. Establish a referral and evaluation process for access to the program.
    2. Establish eligibility criteria that includes consideration of recidivism risk and behavioral health condition severity.
    3. Establish discharge criteria and processes, with a goal of establishing a seamless transition to postprogram services to decrease recidivism.
    4. Develop program oversight, auditing, and evaluation processes that must include:
      1. Oversight of case management services through the department of human services;
      2. Outcome and provider reporting metrics; and
      3. Annual reports to the legislative management and the governor on the status of the program.
    5. Establish a system through which:
      1. The department of human services:
        1. Contracts with and pays behavioral health service providers; and
        2. Supervises, supports, and monitors referral caseloads and the provision of services by contract behavioral health service providers.
      2. Contract behavioral health service providers accept all eligible referrals, provide individualized care delivered through integrated multidisciplinary care teams, and continue services on an ongoing basis until discharge criteria are met.
      3. Contract behavioral health service providers receive payments on a per-month per-referral basis. The payment schedule must be based on a pay-for-performance model that includes consideration of identified outcomes and the level of services required.
      4. Contract behavioral health service providers bill third-parties for services and direct payment to the general fund.
  3. The department of human services may adopt rules as necessary to implement this program.

Source:

S.L. 2017, ch. 40, § 9, eff July 1, 2017.

54-23.3-10. Community behavioral health program — Reports to legislative management and governor. [Effective September 1, 2022]

  1. The department of corrections and rehabilitation shall establish and implement a community behavioral health program to provide comprehensive community-based services for individuals who have serious behavioral health conditions, as a term and condition of parole under chapter 12-59, and as a sentencing alternative under section 12.1-32-02.
  2. In developing the program under this section, the department of corrections and rehabilitation shall collaborate with the department of health and human services to:
    1. Establish a referral and evaluation process for access to the program.
    2. Establish eligibility criteria that includes consideration of recidivism risk and behavioral health condition severity.
    3. Establish discharge criteria and processes, with a goal of establishing a seamless transition to postprogram services to decrease recidivism.
    4. Develop program oversight, auditing, and evaluation processes that must include:
      1. Oversight of case management services through the department of health and human services;
      2. Outcome and provider reporting metrics; and
      3. Annual reports to the legislative management and the governor on the status of the program.
    5. Establish a system through which:
      1. The department of health and human services:
        1. Contracts with and pays behavioral health service providers; and
        2. Supervises, supports, and monitors referral caseloads and the provision of services by contract behavioral health service providers.
      2. Contract behavioral health service providers accept all eligible referrals, provide individualized care delivered through integrated multidisciplinary care teams, and continue services on an ongoing basis until discharge criteria are met.
      3. Contract behavioral health service providers receive payments on a per-month per-referral basis. The payment schedule must be based on a pay-for-performance model that includes consideration of identified outcomes and the level of services required.
      4. Contract behavioral health service providers bill third-parties for services and direct payment to the general fund.
  3. The department of health and human services may adopt rules as necessary to implement this program.

Source:

S.L. 2017, ch. 40, § 9, eff July 1, 2017; 2021, ch. 352, § 486, eff September 1, 2022.

54-23.3-11. Prioritization of admission of inmates — Report to legislative management.

  1. The department of corrections and rehabilitation may refuse to admit inmates sentenced to the physical custody of the department when the admission of inmates will exceed the maximum operational capacity of the penitentiary and its affiliated facilities and result in the department exceeding its authorized legislative appropriation for contracting for housing inmates in other correctional facilities.
  2. For purposes of this section, maximum operational capacity of the department means the total number of inmates that may be imprisoned at the same time in the penitentiary and its affiliated facilities.
  3. The department shall develop a prison population management plan to prioritize admissions based on sentences and the availability of space in the penitentiary and its affiliated facilities. If the plan includes the use of a local jail or correctional facility, the department shall negotiate the terms of the agreement with each facility. An agreement under this section must include a minimum daily rate per inmate, including medical costs, to be paid by the department to the governing body of the jail or correctional facility beginning the day after the department receives notice from the district court of an order placing an individual in the care and custody of the department and ending on the admission date provided by the department.
  4. The department shall report annually to the legislative management on the prison population management plan and inmate admissions and the number of inmates the department has not admitted after sentencing.

Source:

S.L. 2017, ch. 40, § 10, eff July 1, 2017; 2021, ch. 406, § 1, eff August 1, 2021.

54-23.3-12. Faith-based programming. [Effective through August 31, 2022]

  1. The department of corrections and rehabilitation, with contracts through the department of human services and through the implementation of the community behavioral health program, shall allow faith-based organizations to provide services to individuals who need addiction treatment services.
  2. For purposes of this section “faith-based organization” means a nonprofit corporation or association operated by a religious or denominational organization, including an organization operated for religious, educational, or charitable purposes and which is operated, supervised, or controlled by or in connection with a religious organization, or an organization that has a mission statement, policies, or practices clearly demonstrating the organization is guided or motivated by faith.

Source:

S.L. 2017, ch. 108, § 18, eff July 1, 2017.

54-23.3-12. Faith-based programming. [Effective September 1, 2022]

  1. The department of corrections and rehabilitation, with contracts through the department of health and human services and through the implementation of the community behavioral health program, shall allow faith-based organizations to provide services to individuals who need addiction treatment services.
  2. For purposes of this section “faith-based organization” means a nonprofit corporation or association operated by a religious or denominational organization, including an organization operated for religious, educational, or charitable purposes and which is operated, supervised, or controlled by or in connection with a religious organization, or an organization that has a mission statement, policies, or practices clearly demonstrating the organization is guided or motivated by faith.

Source:

S.L. 2017, ch. 108, § 18, eff July 1, 2017; 2021, ch. 352, § 487, eff September 1, 2022.

CHAPTER 54-23.4 Crime Victims Compensation

54-23.4-01. Definitions.

As used in this chapter, unless the context or subject matter otherwise requires:

  1. “Bodily injury” means any harm that requires medical treatment and results in economic loss and includes pregnancy and nervous shock.
  2. “Claimant” means a victim, a dependent of a deceased victim, or a representative of either, who claims compensation under this chapter.
  3. “Collateral source” means a source of benefits or advantages for economic loss otherwise reparable under this chapter which the claimant has received, or which is readily available to the claimant. The first twenty-five thousand dollars of a life insurance policy are not a collateral source if they are payable to a dependent beneficiary or to a parent, legal guardian, or conservator of a dependent victim.
  4. “Criminally injurious conduct” means conduct that results in bodily injury or death, and is punishable by fine, imprisonment, or death, or would be so punishable but for the fact that the person engaging in the conduct was a minor or lacked capacity to commit the crime. The term includes an act of terrorism, as defined under Public Law No. 102-572 [106 Stat. 4506; 18 U.S.C. 2331], committed outside of the United States against a resident of this state. The term does not include conduct arising out of the ownership, maintenance, or use of a motor vehicle except when intended to cause personal injury or death or when the division determines that the conduct was in violation of section 12.1-16-02, 12.1-16-03, 39-08-01, 39-08-03, 39-08-04, or 39-08-06.
  5. “Dependent” means a natural person wholly or partially dependent upon a victim for care or support and includes a child of a victim born after the victim’s death.
  6. “Division” means the division of adult services of the department of corrections and rehabilitation.
  7. “Economic loss” means economic detriment consisting only of allowable expense, work loss, replacement services loss, and, if injury causes death, dependent’s economic loss and dependent’s replacement services loss. Noneconomic detriment is not loss. The term includes economic detriment caused by pain and suffering or physical impairment.
    1. “Allowable expense” means reasonable charges incurred for reasonably needed products, services, and accommodations required due to the injury, including those for medical care, rehabilitation, rehabilitative occupational training, and other remedial treatment and care. The term includes a total charge not in excess of five thousand dollars for expenses in any way related to funeral, cremation, and burial. The term does not include that portion of a charge for a room in a hospital, clinic, convalescent or nursing home, or any other institution engaged in providing nursing care and related services, in excess of a reasonable and customary charge for semiprivate accommodations, unless the excess represents costs of other accommodations that are medically required.
    2. “Dependent’s economic loss” means loss after a victim’s death of contributions of things of economic value to a victim’s dependent, not including services the dependent would have received from the victim if the victim had not suffered the fatal injury, less expenses of the dependent avoided by reason of the victim’s death.
    3. “Dependent’s replacement services loss” means loss reasonably incurred by a dependent after a victim’s death in obtaining ordinary and necessary services in lieu of those the victim would have performed for the dependent’s benefit if the victim had not suffered the fatal injury, less expenses of the dependent avoided by reason of the victim’s death and not subtracted in calculating the dependent’s economic loss.
    4. “Noneconomic detriment” means pain, suffering, inconvenience, physical impairment, and other nonpecuniary damage.
    5. “Replacement services loss” means expenses reasonably incurred in obtaining ordinary and necessary services in lieu of those the victim would have performed, not for income but for the benefit of the victim or the victim’s family, if the victim had not been injured.
    6. “Work loss” means loss of income from work the victim would have performed if the victim had not been injured, and expenses reasonably incurred by the victim in obtaining services in lieu of those the victim would have performed for income, reduced by any income from substitute work actually performed by the victim or by income the victim would have earned in available appropriate substitute work the victim was capable of performing but unreasonably failed to undertake.
  8. “Victim” means a person who suffers bodily injury or death as a result of criminally injurious conduct, the good-faith effort of any person to prevent criminally injurious conduct, or the good-faith effort of any person to apprehend a person suspected of engaging in criminally injurious conduct. The term includes a resident of this state who is injured or killed by an act of terrorism, as defined under Public Law No. 102-572 [106 Stat. 4506; 18 U.S.C. 2331], committed outside of the United States. The term does not mean a person who suffers bodily injury or death as a result of operating a motor vehicle, when, at the time of the injury or death, the person was not in compliance with applicable state laws and rules concerning motor vehicle insurance coverage and the person was at least partially at fault for causing the accident.

Source:

S.L. 1993, ch. 135, § 1; 1995, ch. 513, § 2; 1997, ch. 452, § 1; 2009, ch. 477, § 1.

54-23.4-02. Award of compensation.

The division shall award compensation for economic loss arising directly from criminally injurious conduct if satisfied by a preponderance of the evidence that the requirements for compensation have been met.

Source:

S.L. 1993, ch. 135, § 2; 1995, ch. 513, § 2.

54-23.4-03. No award paid to inmates.

The division may not make an award of any kind under this chapter to a victim convicted of a crime and injured while confined in a jail, prison, or other correctional facility.

Source:

S.L. 1993, ch. 135, § 3; 1997, ch. 452, § 2.

54-23.4-04. Powers and duties of the division.

  1. In addition to its other powers and duties, the division shall:
    1. Establish and maintain a principal office and other necessary offices within this state, appoint employees and agents as necessary, and prescribe the duties and compensation of the employees and agents.
    2. Adopt and enforce rules necessary to implement this chapter. All fees on claims for legal, medical, mental health, and hospital services, and the manner in which economic loss benefits are calculated, must be in accordance with the schedules of fees adopted by the division.
    3. Prescribe forms for applications for compensation.
    4. The duty to hear and determine all matters relating to claims for compensation, and the power to reinvestigate or reopen claims without regard to statutes of limitations or periods of prescription.
    5. Publicize widely the availability of compensation and information regarding the filing of compensation claims.
  2. The division may:
    1. Request from prosecuting attorneys and law enforcement officers investigations and data to enable the division to determine whether, and the extent to which, a claimant qualifies for compensation. A statute providing confidentiality for a claimant’s or victim’s juvenile court records does not apply to proceedings under this chapter.
    2. Take notice of judicially cognizable facts and general, technical, and scientific facts within its specialized knowledge.

Source:

S.L. 1993, ch. 135, § 4; 1995, ch. 513, § 2.

54-23.4-05. Restitution funds, gifts, grants, and bequests — Restitution and gift fund.

The division may accept on behalf of the state all restitution funds, gifts, grants, or bequests of property tendered to the state for any purpose pertaining to the activities of the division in implementing this chapter. The crime victims restitution and gift fund is established as a special fund in the state treasury. All restitution funds, gifts, grants, and bequests of property or money, and any interest occurring thereon, must be placed in the crime victims restitution and gift fund. Subject to legislative appropriation, the fund may be used and disbursed by the division in accordance with the terms of the payment or donation or, if there are no terms, for costs and expenses incurred by the division in the implementation of this chapter.

Source:

S.L. 1993, ch. 135, § 5; 1995, ch. 513, § 1.

54-23.4-06. Application for compensation — Awards — Limitations on awards.

  1. An applicant for an award of compensation shall apply in writing in a form that conforms substantially to that prescribed by the division. If a resident of this state is a victim of criminally injurious conduct, but the criminally injurious conduct occurred outside the geographical boundaries of this state, the resident has the same rights under this chapter as if the criminally injurious conduct occurred within this state upon a showing that the state, territory, country, or political subdivision of the country in which the criminally injurious conduct occurred does not have a crime victims compensation law which covers the bodily injury or death of the victim.
  2. A claim for compensation must be filed within one year from the date the criminally injurious conduct was reported to a law enforcement officer. The division may extend the time for filing if it determines that the interests of justice so require. There is no appeal from a decision of the division not to extend the filing time, not to reopen, or not to reinvestigate a claim.
  3. Compensation may not be awarded to a claimant who is the offender or an accomplice of the offender, nor to any claimant if the award would unjustly benefit the offender or an accomplice.
  4. Compensation may not be awarded unless the criminally injurious conduct resulting in injury or death was reported to a law enforcement officer within ninety-six hours after its occurrence or the division finds there was good cause for the failure to report within that time. In the case of child abuse or sexual molestation of a child, the criminally injurious conduct must be reported to a law enforcement officer within three years after the child reaches the age of majority.
  5. The division, upon finding that the claimant has not fully cooperated with appropriate law enforcement agencies, may deny, reconsider, or reduce an award of compensation.
  6. Compensation otherwise payable to a claimant must be reduced or denied:
    1. To the extent the economic loss upon which the claim is based is recouped from other persons, including collateral sources;
    2. To the extent the division deems reasonable because of the contributory misconduct of the claimant or of a victim on whose behalf compensation is claimed; and
    3. To the extent the division deems reasonable when it is determined that a victim was under the influence of an alcoholic beverage or a controlled substance at the time the criminally injurious conduct occurred and the victim’s intoxication was a factor causing the criminally injurious conduct.
  7. Compensation for work loss, replacement services loss, dependent’s economic loss, and dependent’s replacement services loss may not exceed three hundred dollars per week.
  8. Compensation payable to a victim and to all other claimants sustaining economic loss because of injury to or death of that victim may not exceed twenty-five thousand dollars in the aggregate. If a resident of this state is the victim of criminally injurious conduct outside the geographical boundaries of this state and the total amount of crime victims compensation benefits payable where the criminally injurious conduct occurred is less than twenty-five thousand dollars, the division may pay additional compensation to the victim. The maximum additional compensation the division may pay is the difference between twenty-five thousand dollars and the total amount of crime victims compensation benefits payable where the criminally injurious conduct occurred.

Source:

S.L. 1993, ch. 135, § 6; 1995, ch. 513, § 2; 1997, ch. 452, § 3; 2013, ch. 411, § 1.

Effective Date.

The 2013 amendment of this section by section 1 of chapter 411, S.L. 2013 became effective August 1, 2013.

54-23.4-07. Informal hearing — Rehearing.

After an informal hearing on the papers submitted, at which the claimant need not be present, the division may accept, deny, or reduce a claim or set it for rehearing. If a claim is reduced or denied by the division, the claimant may request a rehearing or appeal the decision. The claimant must be notified of the right to rehearing or appeal.

Source:

S.L. 1993, ch. 135, § 7.

54-23.4-08. Evidence of physical condition.

  1. There is no privilege, except privileges arising from the attorney-client relationship, as to communications or records relevant to an issue of the physical, mental, or emotional condition of the victim in a proceeding under this chapter in which that condition is an element.
  2. If the mental, physical, or emotional condition of a claimant is material to a claim, the division may order the claimant to submit to a mental or physical examination by a doctor or psychologist, and may order an autopsy of a deceased victim. The order may be made for good cause shown upon notice to the person to be examined and to all persons who have appeared. The order must specify the time, place, manner, conditions, and scope of the examination or autopsy and the person by whom it is to be made, and must require the person who performs the examination to file with the division a detailed written report of the examination or autopsy. The report must set out the examining person’s findings, including results of all tests made, diagnoses, prognoses, and other conclusions and reports of earlier examinations of the same conditions.
  3. On request of the person examined, the division shall furnish that person with a copy of the examination report. If a deceased victim is autopsied, the division, on request, shall furnish the claimant a copy of the autopsy report.
  4. The division may require the claimant to supplement the application with any reasonably available medical or psychological reports relating to the injury for which compensation is claimed.

Source:

S.L. 1993, ch. 135, § 8; 1995, ch. 513, § 2.

54-23.4-09. Enforcement of division’s orders.

If a person refuses to comply with an order under this chapter or asserts a privilege, except privileges arising from the attorney-client relationship, to withhold or suppress evidence relevant to a claim, the division may make any just order including denial of the claim, but may not find the person in contempt. If necessary to carry out any of its powers and duties, the division may petition the district court for an appropriate order, but the court may not find a person in contempt for refusal to submit to a medical or physical examination.

Source:

S.L. 1993, ch. 135, § 9.

54-23.4-10. Award and payment of compensation.

  1. An award may be made whether or not any person is prosecuted or convicted. Proof of conviction of a person whose acts give rise to a claim is conclusive evidence that the crime was committed, unless an application for rehearing, an appeal of the conviction, or certiorari is pending, or a rehearing or new trial has been ordered.
  2. The division may suspend the proceedings pending disposition of a criminal prosecution that has been commenced or is imminent, but may make a tentative award under section 54-23.4-14.
  3. A claim for crime victims compensation benefits is presumed closed if the division has not paid any benefit or received a demand for payment of benefits for a period of five years from the date a payment was last made on a claim. A claim that is presumed closed may not be reopened for payment of any further benefits unless the presumption is rebutted by a preponderance of the evidence that the criminally injurious conduct is the principal cause of the current symptoms.
  4. A claim for crime victims compensation benefits must be closed ten years after benefits have last been paid and may not be reopened.
  5. This section applies to all claims for crime victims compensation benefits, irrespective of the date of the criminally injurious conduct.

Source:

S.L. 1993, ch. 135, § 10; 1995, ch. 513, § 2; 1997, ch. 452, § 4.

54-23.4-11. Attorney’s fees.

The division shall determine and award reasonable attorney’s fees, commensurate with services rendered, to be paid by the state to the attorney representing the claimant if the claimant prevails after a petition for reconsideration or rehearing under section 28-32-40 from an order reducing or denying crime victims compensation benefits. A district court may award attorney’s fees in an appeal pursuant to section 28-32-42 if the claimant prevails on appeal from an order reducing or denying benefits. Attorney’s fees are allowable for settlement of a disputed claim. Attorney’s fees are not allowable for assisting a claimant in filing a claim. An award of attorney’s fees is in addition to an award of compensation. An award of attorney’s fees may not exceed the lesser of twenty percent of the compensation awarded or one thousand dollars. No attorney may contract for or receive any larger sum than the amount allowed.

Source:

S.L. 1993, ch. 135, § 11; 1995, ch. 513, § 2; 1997, ch. 452, § 5; 2001, ch. 293, § 28.

54-23.4-12. Subrogation — Actions — Allocation of expenses.

  1. If compensation is awarded, the division is subrogated to all the claimant’s rights to receive or recover benefits or advantages, for economic loss for which and to the extent only that compensation is awarded, from a source that is, or, if readily available to the claimant, would be, a collateral source.
  2. Before bringing an action to recover damages related to criminally injurious conduct for which compensation is claimed or awarded, the claimant shall give the division written notice of the proposed action. If a claimant brings an action for the recovery of damages related to criminally injurious conduct for which compensation is claimed or awarded, the division is subrogated to the rights of the claimant up to the total amount the division has paid. When there has been a recovery of damages, the costs of the action, to be paid by the division from the recovery, exclusive of attorney’s fees, must be prorated and adjusted on the percentage of the total subrogation interest of the division recovered to the total recovery. If there is a recovery, the division shall pay attorney’s fees to the claimant’s attorney from the recovery in the amount of twenty-five percent of the subrogation interest recovered. For purposes of this section, recovery includes proceeds paid pursuant to a settlement, confession of judgment, or judgment of a court. The division may intervene in the action to recover compensation awarded. The division has a lien on a recovery to the extent it has paid compensation. The division is not liable for costs or attorney’s fees when the claimant has not provided the division prior written notice of the commencement of an action. If a claimant does not bring an action for damages within six months from the date the division awarded benefits, the division may bring an action or claim for relief in the division’s name and may retain as the division’s subrogation interest the full amount the division has paid in compensation and benefits to a claimant. The division may bring an action within two years from the date the division first awarded benefits, notwithstanding any other statute of limitation. This section does not limit the claimant’s right to bring an action to recover for other damages.
  3. If a judgment or verdict indicates separately economic loss and noneconomic detriment, payments on the judgment must be allocated between them in proportion to the amounts indicated. In an action in a court of this state arising out of criminally injurious conduct, the judge, on timely motion, shall direct the jury to return a special verdict, indicating separately the awards for noneconomic detriment, punitive damages, and economic loss.

Source:

S.L. 1993, ch. 135, § 12; 1995, ch. 513, § 2; 1997, ch. 452, § 6; 2001, ch. 41, § 13.

54-23.4-13. Manner of payment — Nonassignability and exemptions.

  1. The division may provide for the payment of an award in a lump sum or in installments. The part of an award equal to the amount of economic loss accrued to the date of the award must be paid in a lump sum. An award for allowable expense that would accrue after the award is made may not be paid in a lump sum. Except as provided in subsection 2, the part of an award that may not be paid in a lump sum must be paid in installments.
  2. At the request of the claimant, the division may commute future economic loss, other than allowable expense, to a lump sum, but only upon a finding by the division that:
    1. The award in a lump sum will promote the interests of the claimant; or
    2. The present value of all future economic loss other than allowable expense does not exceed one thousand dollars.
  3. An award for future economic loss payable in installments may be made only for a period as to which the division can reasonably determine future economic loss. The division may reconsider and modify an award for future economic loss payable in installments, upon its finding that a material and substantial change of circumstances has occurred.
  4. An assignment or agreement to assign a right to compensation for loss accruing in the future is unenforceable, except:
    1. An assignment of a right to compensation for work loss to secure payment of alimony, maintenance, or child support; or
    2. An assignment of a right to compensation for allowable expense to the extent that the benefits are for the cost of products, services, or accommodations necessitated by the injury or death on which the claim is based and are provided or to be provided by the assignee.
  5. No funds may be placed in reserve by the division on any claim.

Source:

S.L. 1993, ch. 135, § 13; 1995, ch. 513, § 2.

54-23.4-14. Tentative awards.

If the division determines that the claimant will suffer financial hardship unless a tentative award is made, and it appears likely that a final award will be made, an amount may be paid to the claimant which must be deducted from the final award or repaid by and recoverable from the claimant to the extent that it exceeds the final award.

Source:

S.L. 1993, ch. 135, § 14.

54-23.4-15. Reconsideration and review of decisions.

  1. The division, on its own motion or on request of the claimant, may reconsider a decision making or denying an award or determining its amount. The division shall reconsider at least annually every award being paid in installments. An order on reconsideration of an award may not require refund of amounts previously paid unless the award was obtained by fraud.
  2. The right of reconsideration does not affect the finality of a decision of the division for the purpose of judicial review.

Source:

S.L. 1993, ch. 135, § 15.

54-23.4-16. Reports.

The division shall prepare and transmit biennially to the governor and the legislative assembly a report of its activities, including a brief description of the facts, the amount of compensation awarded in each case, and a statistical summary of claims and awards made and denied.

Source:

S.L. 1993, ch. 135, § 16; 1995, ch. 513, § 2.

54-23.4-17. Confidentiality of records.

Juvenile or law enforcement records obtained under chapter 27-20.4 may be released to the parties, their counsel, and representatives of the parties in proceedings before the division and must be sealed at the conclusion of the proceedings. All other records of the division concerning the application for or award of compensation under this chapter are confidential and are not open to public disclosure. Inspection of these records, however, must be permitted by:

  1. Law enforcement officers when necessary for the discharge of their official duties.
  2. Representatives of a claimant, whether an individual or an organization, who may review a claim file or receive specific information from the file upon the presentation of the signed authorization of the claimant.
  3. Physicians or health care providers treating or examining persons claiming benefits under this title, or physicians giving medical advice to the division regarding any claim, at the discretion of the division.
  4. Any person who is rendering assistance to the division at any stage of the proceedings on any matter pertaining to the administration of this chapter.
  5. Juvenile or law enforcement records obtained under chapter 27-20.4 may be released to the parties, their counsel, and representatives in proceedings before the division and must be sealed at the conclusion of the proceedings.

Source:

S.L. 1993, ch. 135, § 17; 1995, ch. 513, § 2; 2021, ch. 245, § 43, eff July 1, 2021.

54-23.4-18. Filing false claim or false statements — Penalty.

Any claimant who knowingly makes a false claim, or a false statement in connection with any claim, is guilty of a class A misdemeanor. In addition to any other penalties provided by law, the claimant who violates this section forfeits any compensation paid under this chapter and must reimburse the program for any benefits paid.

Source:

S.L. 1993, ch. 135, § 18.

CHAPTER 54-24 State Library Commission

54-24-01. State library — State librarian appointed by the superintendent of public instruction.

The superintendent of public instruction shall appoint an executive officer to be known as the state librarian, who shall report to the superintendent and must receive a salary within the amount appropriated for salaries by the legislative assembly. The state librarian shall control the work and is the director of the state library. The position of state librarian is included in the classified service, as provided in section 54-44.3-20. The state library is an autonomous agency and retains a budget and staff separate from that of the superintendent of public instruction.

Source:

S.L. 1927, ch. 261, § 1; R.C. 1943, § 54-2401; S.L. 1979, ch. 550, § 7; 1981, ch. 535, § 15; 1989, ch. 239, § 14; 1997, ch. 13, § 23.

54-24-02. Library offices.

The state library must be furnished with adequate office room, with such suitable quarters as may be necessary for the proper shelving of its library materials.

Source:

S.L. 1907, ch. 243, § 8; 1909, ch. 156, § 8; C.L. 1913, § 1537; R.C. 1943, § 54-2402; S.L. 1979, ch. 550, § 8; 1997, ch. 453, § 1.

54-24-03. Powers and duties of state librarian.

The state librarian shall:

  1. Make rules for the operation of the state library.
  2. Provide and care for all books and library materials in all collections of the state library and work to focus the collections.
  3. Employ qualified library personnel to care for all library procedures.
  4. Make library materials available to libraries throughout the state, to individuals connected with departments of state, and to citizens of North Dakota who do not have adequate library facilities, under the rules of the state library.
  5. Work to improve library services to citizens by providing assistance to librarians and library trustees and staff and by encouraging the extension of networking and regional and statewide cooperation among libraries.
  6. Coordinate the efforts of librarianship throughout the state, advising and assisting the extension of qualified public libraries into centers of county or multicounty libraries.
  7. Compile statistics on all North Dakota public libraries and their services and their larger counterparts of county and multicounty libraries, regional library cooperatives, and multitype library authorities. Make a full biennial report to the superintendent of public instruction and the governor of the work done at the state library. The state librarian may not require a private sector library to submit information relating to the provisions of this subsection.
  8. Collect, maintain, and make available informational materials that supplement and support the needs of all libraries in the state, either by direct loan or by consultation, and that form a reference source for the officers of the state in performing their duties.
  9. Assist libraries in developing local standards and guidelines defining the basic level of service that they will provide.
  10. Conduct, or have conducted, research into the conditions of library service in the state and produce written plans for the development and betterment of that service.
  11. Promote and assist in the development of regional library cooperatives, including multitype library authorities.
  12. Establish levels of certification for libraries of the state that meet the standards recommended by the American library association and the North Dakota library association.
  13. Promote and assist libraries in this state in developing and maintaining a computerized, comprehensive, bibliographic statewide database for storing bibliographic records of libraries which allows residents unmediated, seamless, direct access to library catalogs with a common interface and a common set of commands and the ability to search the library collections of the entire state at one time or only the collections of the local library, regional libraries, or select group of libraries.
  14. Coordinate interlibrary loan activities throughout this state.
  15. Arrange for continuing education and training programs for library personnel.
  16. Provide technical assistance and counsel to library personnel.
  17. Distribute grants to libraries within the limits of legislative appropriations for the purpose of developing or improving library services or programs.
  18. Provide staff services to the North Dakota library coordinating council.

Source:

S.L. 1907, ch. 243, § 5; 1909, ch. 156, § 5; C.L. 1913, § 1534; R.C. 1943, § 54-2403; S.L. 1965, ch. 352, § 8; 1979, ch. 550, § 9; 1989, ch. 239, § 15; 1997, ch. 453, § 2; 2007, ch. 465, § 1; 2011, ch. 406, § 1.

54-24-03.1. Acceptance of federal aid.

The state library is hereby authorized to accept and to expend in accordance with the terms thereof any grant of federal funds which may become available to the state for library purposes. For the purpose of qualifying to receive such grants, the state library is authorized to make such applications and reports as may be required by the federal government as a condition thereto.

Source:

S.L. 1949, ch. 320, § 1; R.C. 1943, 1957 Supp., § 54-24031; S.L. 1979, ch. 550, § 10.

54-24-03.2. State library operating fund.

The state library’s operating fund is a special fund in the state treasury. All moneys received for book replacement, cataloging services, and other miscellaneous library services must be deposited in this fund. Moneys in the fund are to be used pursuant to legislative appropriation for provision of services under this chapter.

History. S.L. 2015, ch. 47, § 21, eff July 1, 2015.

Effective Date.

This section became effective July 1, 2015.

54-24-04. Who may borrow books from state library. [Repealed]

Repealed by S.L. 1965, ch. 352, § 10.

54-24-05. Commission to give advice and aid. [Repealed]

Repealed by S.L. 1965, ch. 352, § 10.

54-24-06. Records kept by commission — Report to the governor and secretary of state. [Repealed]

Repealed by S.L. 1965, ch. 352, § 10.

54-24-07. Printing of state library — How paid. [Repealed]

Repealed by S.L. 1997, ch. 453, § 20.

54-24-08. Library contracts for library services.

The state library is hereby authorized and empowered to cooperate with, and to contract with, cities, governmental subdivisions, and agencies of the state of North Dakota and other states of the United States, in the extension of library services.

Source:

S.L. 1957, ch. 352, § 6; R.C. 1943, 1957 Supp., § 54-2408; S.L. 1967, ch. 389, § 1; 1979, ch. 550, § 12.

54-24-09. Distribution of certain state publications for certain libraries required.

The office of management and budget shall arrange to deposit with the state library eight copies of all publications issued by all executive, legislative, and judicial agencies of state government intended for general public distribution. These publications must be provided to the state library without charge. If expense and limited supply of state publications, particularly audiovisual items, make compliance with the depository requirement impossible, the state library shall accept as many copies as an agency can afford to provide. However, each agency shall provide no less than two copies to the state library. State publications refer to any informational materials regardless of format, method of reproduction, or source, originating in or produced with the imprint of, by the authority of, or at the total or partial expense of, any state agency. The definition incorporates those publications that may or may not be financed by state funds but are released by private bodies such as research and consultant firms under contract with or supervision of any state agency. In circumstances not directly involving the office of management and budget, a state agency shall comply with the depository requirement by arranging with the necessary parties for the printing and deposit of eight copies of any state publication issued. State publications are specifically defined as public documents appearing as reports, directories, statistical compendiums, bibliographies, laws or bills, rules, regulations, newsletters, bulletins, state plans, brochures, periodicals, committee minutes, transcripts of public hearings, other printed matter, audiotapes, videotapes, films, filmstrips, or slides, but not those administrative or training materials used only within the issuing agency. As the document acquisition and distribution agency, the state library shall retain for its document collection two copies of every state document received and transmit the remaining copies to the depository libraries. These are the libraries of the state historical society, the university of North Dakota, North Dakota state university, library of Congress, and two others to be designated by the state library. All nondepository North Dakota libraries may receive state documents under an optional selection program developed by the state library. The state library shall catalog state publications and arrange for their conversion to microfilm or to optical disk storage prescribed by the state records administrator and shall make available for distribution the same to the designated depository libraries.

Source:

S.L. 1965, ch. 352, § 1; 1971, ch. 503, § 1; 1977, ch. 492, § 1; 1979, ch. 550, § 13; 1991, ch. 624, § 4; 1997, ch. 453, § 3; 1999, ch. 474, § 8; 2001, ch. 503, § 16.

Law Reviews.

Article: The Uniform Electronic Legal Material Act: “Desirable And Practicable” For North Dakota? 87 N.D. L. Rev. 325 (2011).

CHAPTER 54-24.1 Interstate Library Compact

54-24.1-01. Interstate Library Compact.

The Interstate Library Compact is hereby enacted into law and entered into by this state with all states legally joining therein in the form substantially as follows:

Source:

S.L. 1965, ch. 353, § 1; 1993, ch. 54, § 106.

ARTICLE I POLICY AND PURPOSE

Because the desire for the services provided by libraries transcends governmental boundaries and can most effectively be satisfied by giving such services to communities and people regardless of jurisdictional lines, it is the policy of the states party to this compact to cooperate and share their responsibilities; to authorize cooperation and sharing with respect to those types of library facilities and services which can be more economically or efficiently developed and maintained on a cooperative basis; and to authorize cooperation and sharing among localities, states, and others in providing joint or cooperative library services in areas where the distribution of population or of existing and potential library resources make the provision of library service on an interstate basis the most effective way of providing adequate and efficient service.

ARTICLE II DEFINITIONS

As used in this compact:

  1. “Library agreement” means a contract establishing an interstate library district pursuant to this compact or providing for the joint or cooperative furnishing of library services.
  2. “Private library agency” means any nongovernmental entity which operates or assumes a legal obligation to operate a library.
  3. “Public library agency” means any unit or agency of local or state government operating or having power to operate a library.
    1. Undertake, administer, and participate in programs or arrangements for securing, lending, or servicing of books and other publications, any other materials suitable to be kept or made available by libraries, library equipment or for the dissemination of information about libraries, the value and significance of particular items therein, and the use thereof.
    2. Accept for any of its purposes under this compact any and all donations and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any state or the United States or any subdivision or agency thereof, or interstate agency, or from any institution, person, firm, corporation, or limited liability company, and receive, utilize, and dispose of the same.
    3. Operate mobile library units or equipment for the purpose of rendering bookmobile service within the district.
    4. Employ professional, technical, clerical, and other personnel, and fix terms of employment, compensation, and other appropriate benefits; and, where desirable, provide for the inservice training of such personnel.
    5. Sue and be sued in any court of competent jurisdiction.
    6. Acquire, hold, and dispose of any real or personal property or any interest or interests therein as may be appropriate to the rendering of library service.
    7. Construct, maintain, and operate a library, including any appropriate branches thereof.
    8. Do such other things as may be incidental to or appropriate for the carrying out of any of the foregoing powers.

ARTICLE III INTERSTATE LIBRARY DISTRICTS

1. Any one or more public library agencies in a party state in cooperation with any public library agency or agencies in one or more other party states may establish and maintain an interstate library district. Subject to the provisions of this compact and any other laws of the party states which pursuant hereto remain applicable, such district may establish, maintain, and operate some or all of the library facilities and services for the area concerned in accordance with the terms of a library agreement therefor. Any private library agency or agencies within an interstate library district may cooperate therewith, assume duties, responsibilities, and obligations thereto, and receive benefits therefrom as provided in any library agreement to which such agency or agencies become party.

2. Within an interstate library district, and as provided by a library agreement, the performance of library functions may be undertaken on a joint or cooperative basis or may be undertaken by means of one or more arrangements between or among public or private library agencies for the extension of library privileges to the use of facilities or services operated or rendered by one or more of the individual library agencies.

3. If a library agreement provides for joint establishment, maintenance, or operation of library facilities or services by an interstate library district, such district shall have power to do any one or more of the following in accordance with such library agreement:

ARTICLE IV INTERSTATE LIBRARY DISTRICTS GOVERNING BOARD

1. An interstate library district which establishes, maintains, or operates any facilities or services in its own right shall have a governing board of not more than five members to be selected by the boards of the participating agencies which shall direct the affairs of the district and act for it in all matters relating to its business. Each participating public library agency in the district must be represented on the governing board which must be organized and conduct its business in accordance with provision therefor in the library agreement; but, in no event may a governing board meet less often than twice a year.

2. Any private library agency or agencies party to a library agreement establishing an interstate library district may be represented on or advise with the governing board of the district in such manner as the library agreement may provide.

ARTICLE V STATE LIBRARY AGENCY COOPERATION

Any two or more state library agencies of two or more of the party states may undertake and conduct joint or cooperative library programs, render joint or cooperative library services, and enter into and perform arrangements for the cooperative or joint acquisition, use, housing, and disposition of items or collections of materials which, by reason of expense, rarity, specialized nature, or infrequency of demand therefor would be appropriate for central collection and shared use. Any such programs, services, or arrangements may include provision for the exercise on a cooperative or joint basis of any power exercisable by an interstate library district and an agreement embodying any such program, service, or arrangement must contain provisions covering the subjects detailed in Article VI of the compact for interstate library agreements.

ARTICLE VI LIBRARY AGREEMENTS

1. In order to provide for any joint or cooperative undertaking pursuant to this compact, public and private library agencies may enter into library agreements. Any agreement executed pursuant to the provisions of this compact must, as among the parties to the agreement:

a. Detail the specific nature of the services, programs, facilities, arrangements, or properties to which it is applicable.

b. Provide for the allocation of costs and other financial responsibilities.

c. Specify the respective rights, duties, obligations, and liabilities of the parties.

d. Set forth the terms and conditions for duration, renewal, termination, abrogation, disposal of joint or common property, if any, and all other matters which may be appropriate to the proper effectuation and performance of the agreement.

2. No public or private library agency may undertake to exercise itself, or, jointly with any other library agency, by means of a library agreement, any power prohibited to such agency by the constitution or statutes of its state.

3. No library agreement becomes effective until filed with the compact administrator of each state involved, and approved in accordance with Article VII of this compact.

ARTICLE VII APPROVAL OF LIBRARY AGREEMENTS

1. Every library agreement made pursuant to this compact must, prior to and as a condition precedent to its entry into force, be submitted to the attorney general of each state in which a public library agency party thereto is situated, who shall determine whether the agreement is in proper form and compatible with the laws of that state. The attorneys general shall approve any agreement submitted to them unless they shall find that it does not meet the conditions set forth herein and shall detail in writing addressed to the governing bodies of the public library agencies concerned the specific respects in which the proposed agreement fails to meet the requirements of law. Failure to disapprove an agreement submitted hereunder within ninety days of its submission constitutes approval thereof.

2. In the event that a library agreement made pursuant to this compact deals in whole or in part with the provision of services or facilities with regard to which an officer or agency of the state government has constitutional or statutory powers of control, the agreement must, as a condition precedent to its entry into force, be submitted to the state officer or agency having such power of control and must be approved or disapproved by the officer or agency as to all matters within the officer’s or agency’s jurisdiction in the same manner and subject to the same requirements governing the action of the attorneys general pursuant to subsection 1. This requirement of submission and approval is in addition to and not in substitution for the requirement of submission to and approval by the attorneys general.

ARTICLE VIII OTHER LAWS APPLICABLE

Nothing in this compact or in any library agreement may be construed to supersede, alter, or otherwise impair any obligation imposed on any library by otherwise applicable law, nor to authorize the transfer or disposition of any property held in trust by a library agency in a manner contrary to the terms of such trust.

ARTICLE IX APPROPRIATIONS AND AID

1. Any public library agency party to a library agreement may appropriate funds to the interstate library district established thereby in the same manner and to the same extent as to a library wholly maintained by it and, subject to the laws of the state in which such public library agency is situated, may pledge its credit in support of an interstate library district established by the agreement.

2. Subject to the provisions of the library agreement pursuant to which it functions and the laws of the states in which such district is situated, an interstate library district may claim and receive any state and federal aid which may be available to library agencies.

ARTICLE X COMPACT ADMINISTRATOR

Each state shall designate a compact administrator with whom copies of all library agreements to which the administrator’s state or any public library agency thereof is party must be filed. The administrator shall have such other powers as may be conferred upon the administrator by the laws of the administrator’s state and may consult and cooperate with the compact administrators of other party states and take such steps as may effectuate the purposes of this compact. If the laws of a party state so provide, such state may designate one or more deputy compact administrators in addition to its compact administrator.

ARTICLE XI ENTRY INTO FORCE AND WITHDRAWAL

1. This compact enters into force and effect immediately upon its enactment into law by any two states. Thereafter, it enters into force and effect as to any other state upon the enactment thereof by such state.

2. This compact continues in force with respect to a party state and remains binding upon such state until six months after such state has given notice to each other party state of the repeal thereof. Such withdrawal may not be construed to relieve any party to a library agreement entered into pursuant to this compact from any obligation of that agreement prior to the end of its duration as provided therein.

ARTICLE XII CONSTRUCTION AND SEVERABILITY

This compact must be liberally construed so as to effectuate the purposes thereof. The provisions of this compact are severable and if any phrase, clause, sentence, or provision of this compact is declared to be contrary to the constitution of any party state or of the United States or the applicability thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact and applicability thereof to any government, agency, person, or circumstance is not affected thereby. If this compact is held contrary to the constitution of any state party thereto, the compact must remain in full force and effect as to the remaining states and in full force and effect as to the state affected as to all severable matters.

54-24.1-02. Must comply with state and local laws.

No city, township, or county of this state may be party to a library agreement which provides for the construction or maintenance of a library pursuant to subdivision g of subsection 3 of Article III of the compact, nor pledge its credit in support of such a library, or contribute to the capital financing thereof, except after compliance with any laws applicable to such cities, townships, or counties relating to or governing capital outlays and the pledging of credit.

Source:

S.L. 1965, ch. 353, § 2.

54-24.1-03. Definition.

As used in the compact, “state library agency”, with reference to this state, means the state library.

Source:

S.L. 1965, ch. 353, § 3; 1979, ch. 550, § 14.

Cross-References.

State library, see N.D.C.C. ch. 54-24.

54-24.1-04. Entitled to state aid.

An interstate library district lying partly within this state may claim and be entitled to receive state aid in support of any of its functions to the same extent and in the same manner as such functions are eligible for support when carried on by entities wholly within this state. For the purposes of computing and apportioning state aid to an interstate library district, this state will consider that portion of the area which lies within this state as an independent entity for the performance of the aided function or functions and compute and apportion the aid accordingly. Subject to any applicable laws of this state, such a district also may apply for and be entitled to receive any federal aid for which it may be eligible.

Source:

S.L. 1965, ch. 353, § 4.

54-24.1-05. Interstate library compact director — Appointment — Deputy.

The governor shall appoint an officer of this state who must be the compact administrator pursuant to Article X of the compact. The governor shall also appoint one or more deputy compact administrators pursuant to said article.

Source:

S.L. 1965, ch. 353, § 5.

54-24.1-06. Duties of governor in case of withdrawal.

In the event of withdrawal from the compact the governor shall send and receive any notices required by subsection 1 of Article XI of the compact.

Source:

S.L. 1965, ch. 353, § 6.

CHAPTER 54-24.2 State Aid to Public Libraries

54-24.2-01. Eligibility.

Public libraries eligible to receive financial aid under this chapter are limited to those public libraries that:

  1. Apply to the state library for such financial aid.
  2. Are established and operated in accordance with chapter 40-38.
  3. Participate in the North Dakota network for knowledge interlibrary loan and information network.

Source:

S.L. 1979, ch. 551, § 1.

54-24.2-02. Grant formula.

Grants to eligible public libraries must be in accordance with the following formula:

  1. One dollar, or a percentage thereof, for each person residing in the city or county operating or providing financial support for the public library, as determined by the latest official federal census; and
  2. Five dollars per square mile [259.00 hectares], or a percentage thereof, of land within the geographical boundaries of each county operating or providing financial support for a public library.

Source:

S.L. 1979, ch. 551, § 2.

54-24.2-02.1. Other public funds defined.

“Other public funds”, as used in sections 54-24.2-03 and 54-24.2-05, means moneys appropriated for public library services by the governing body of the political subdivision providing public library services under chapter 40-38 in addition to the mill levy made for public library services.

Source:

S.L. 1981, ch. 418, § 5.

54-24.2-02.2. Maintenance of local effort.

  1. A public library is not eligible to receive funds under this chapter during a fiscal year if the governing body has diminished, from the average of the three preceding fiscal years, the appropriation, in dollars, derived from the mill levy for public library services under section 40-38-02.
  2. If the governing body is levying the maximum number of mills it can levy without having an election to increase the mill levy and the appropriation is diminished below the average of the three preceding fiscal years solely because of a reduction in the taxable valuation, then the public library is eligible to receive funds under this chapter.

Source:

S.L. 2007, ch. 466, § 1.

Note.

Section 3 of chapter 466, S.L. 2007 provides: “ APPLICATION OF ACT. This Act applies to distributions of funds for state aid to public libraries made after the effective date of this Act.”

54-24.2-03. Incentive for local funding.

To provide for increased local funding, public libraries eligible to receive funds under section 54-24.2-02 shall have the funds allocated to them modified in accordance with the following formula:

Cities levying 8.00 or more mills 150 percent of allocation 6.00 — 7.99 mills 125 percent of allocation 4.00 — 5.99 mills 100 percent of allocation 3.00 — 3.99 mills 75 percent of allocation 2.00 — 2.99 mills 50 percent of allocation 1.00 — 1.99 mills 33 percent of allocation 0.01 — 0.99 mills 25 percent of allocation 0.00 — mills 0 percent of allocation Counties levying 4.00 or more mills 150 percent of allocation 3.00 — 3.99 mills 125 percent of allocation 2.00 — 2.99 mills 100 percent of allocation 1.50 — 1.99 mills 75 percent of allocation 1.00 — 1.49 mills 50 percent of allocation 0.50 — 0.99 mills 33 percent of allocation 0.01 — 0.49 mills 25 percent of allocation 0.00 — mills 0 percent of allocation

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The computation of mills must be based upon the levy on the taxable valuation and the mill levy equivalent of other public funds received and deposited in the library fund for the operation of the library by the governing body during the preceding fiscal year as certified by the auditor of the city or county operating the library.

Source:

S.L. 1979, ch. 551, § 3; 1983, ch. 593, § 33.

54-24.2-04. Maintenance of local effort. [Repealed]

Repealed by S.L. 2007, ch. 466, § 2.

54-24.2-05. Limitations.

For public libraries operated by cities, funds granted under this chapter may not exceed thirty-three percent of the total expenditure of mill levy moneys and other public funds during the preceding year. For public libraries operated by counties, funds granted under this chapter may not exceed the following percent of the total expenditure of mill levy moneys and other public funds during the preceding year:

less than $10,000 100 percent $10,000 — $19,999 75 percent $20,000 — $29,999 67 percent $30,000 — $50,000 50 percent over $50,000 33 percent

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Source:

S.L. 1979, ch. 551, § 5; 1981, ch. 418, § 7.

54-24.2-06. Use of funds — Reporting.

Funds appropriated under this chapter may be expended by public libraries for the purchase of library materials, supplies and equipment, salaries of library staff, and services. No funds may be used for land acquisition, construction, or investment.

Each public library receiving funds under the chapter shall submit to the state library an annual report detailing the expenditures of these funds and all other funds expended by the library within the calendar year. Such report is due within ninety days after the close of the calendar year.

Source:

S.L. 1979, ch. 551, § 6; 2005, ch. 492, § 11.

54-24.2-07. State aid to libraries — Reimbursement.

Expired under S.L. 2007, ch. 467, § 2.

CHAPTER 54-24.3 Regional Library Cooperatives

54-24.3-01. Definitions.

In this chapter, unless the context otherwise requires:

  1. “Academic library” means a library that is part of a college or university that is publicly or privately funded and whose primary role is to provide resources to enrich and support the school’s curricula and the research needs of students and faculty.
  2. “Library resource center” means a central service unit, whose location is to be agreed upon by members of the regional library cooperative and which is responsible for extending special services to support members of the regional library cooperative, while meeting all cooperative standards.
  3. “Multitype library authority” means a geographic subdivision within which multitype libraries are organized for the purpose of providing library and information services through cooperation and mutual support.
  4. “Participant library” means any library agreeing to join a regional library cooperative.
  5. “Public library” means a library that is supported with funds derived from taxation and which maintains a balanced collection of materials to serve the lifelong information, reading, and recreational needs of the general population.
  6. “Regional library cooperative” means an organization of one or more types of library organized under Article VI of section 54-24.1-01, or a multitype library authority.
  7. “School library media center” means a learning center operated as part of a publicly or privately supported school or school district and whose role is to provide instruction, cooperatively design learning strategies, and provide resources that support and enrich the curriculum, following the North Dakota school library media guidelines.
  8. “Special library” means a public or private sector library whose collection is specialized and limited in scope and size and whose role is to provide information to a limited clientele.

Source:

S.L. 1991, ch. 596, § 1; 1997, ch. 453, § 4.

54-24.3-02. Committee — Membership — Compensation. [Repealed]

Repealed by S.L. 1997, ch. 453, § 20.

54-24.3-03. North Dakota library coordinating council powers and duties.

In the administration of this chapter, the North Dakota library coordinating council may:

  1. Adopt rules for the conduct of business.
  2. Provide guidance for the development, implementation, and improvement of regional library cooperatives.
  3. Enter contracts necessary for establishing and governing regional library cooperatives.
  4. Use the staff of the state library in consultation with the state librarian.
  5. Adopt a compensation plan for staff as necessary for establishing and governing regional library cooperatives.
  6. Set the terms and conditions of statewide service contracts with libraries.
  7. Determine necessary or desirable regional or statewide library programs or services.
  8. Propose standards for service.
  9. Set reimbursement formulas among regional library cooperatives for reciprocal borrowing and other cooperative plans and set statewide policies for reimbursement formulas for reciprocal borrowing.
  10. Conduct periodic performance reviews of all categories of coordinating council grant-funded projects and make service revisions.

Source:

S.L. 1991, ch. 596, § 3; 1997, ch. 453, § 5.

54-24.3-04. Regional library cooperatives — Establishment.

The North Dakota library coordinating council may establish regional library cooperatives. In establishing the cooperatives, the council shall consider:

  1. Population;
  2. Population density;
  3. Number and types of libraries;
  4. Library information resources, including existing libraries, staff, and collections;
  5. Marketing and transportation patterns;
  6. Proximity of municipalities;
  7. Geographic size of the authority;
  8. Finances; and
  9. Any other matter not inconsistent with this section.

Source:

S.L. 1991, ch. 596, § 4; 1997, ch. 453, § 6.

54-24.3-05. Regional library cooperative interim planning committee — Establishment.

The North Dakota library coordinating council shall appoint an interim planning committee for a proposed regional library cooperative. The interim planning committee must consist of two lay representatives residing within the cooperative and five librarians. The librarians, as far as practical, must represent public libraries, academic libraries, school library media centers, and special libraries.

Source:

S.L. 1991, ch. 596, § 5; 1997, ch. 453, § 7.

54-24.3-06. Regional library cooperative interim planning committee — Duties.

In the administration of this chapter, the regional library cooperative interim planning committee may:

  1. Elect provisional officers;
  2. Identify all librarians eligible to be members of the regional library cooperative;
  3. Hold informational meetings;
  4. Distribute and receive applications for memberships in the regional library cooperative;
  5. Draft interim bylaws for the regional library cooperative;
  6. Prepare papers of incorporation;
  7. Publicize activities;
  8. Prepare a three-year plan for the development of services within the cooperative and present it to the North Dakota library coordinating council for review and approval; and
  9. Exercise any other duty that is necessary to carry out this chapter.

Source:

S.L. 1991, ch. 596, § 6; 1997, ch. 453, § 8.

54-24.3-07. Regional library cooperative — Membership.

To join the regional library cooperative, a library must obtain official approval from its board and submit an application to the interim planning committee. A library that agrees to provide to any person residing within the cooperative access to its collection on the premises, reciprocal borrowing privileges, and interlibrary loan service, may apply for membership. To be eligible for membership, a library must have defined service objectives, a fixed location, regular hours of service, an organized collection of information and materials accessible for use by its designated clientele, and a qualified and responsible staff. The library must have an identifiable organizational structure and a legal basis for operation. The library must be willing and able to participate in appropriate services and programs as set forth by the regional library cooperative. The regional library cooperative interim planning committee shall review all applications and approve applicants for membership.

Source:

S.L. 1991, ch. 596, § 7; 1997, ch. 453, § 9.

54-24.3-08. Regional library cooperative — Board.

Each participating library shall designate a representative to sit on the board of the regional library cooperative. At its first meeting, the board shall elect a president, vice president, treasurer, and any other officer it determines to be necessary. The director of the designated library resource center shall serve as an ex officio nonvoting member of the board. The board shall meet at least six times a year and has the power to contract, hire staff and set compensation levels, and adopt bylaws for the conduct of its business. The term of office for all officers of the board is one year, commencing on the January first after election.

Source:

S.L. 1991, ch. 596, § 8; 1997, ch. 453, § 10.

54-24.3-09. Regional library cooperative — Powers and duties.

In the administration of this chapter, each regional library cooperative may:

  1. Sue and be sued in the name of the cooperative.
  2. Designate for the cooperative a central library resource center with responsibility to extend special services to cooperative members while meeting all cooperative standards.
  3. Designate an administrative officer for the regional library cooperative.
  4. Establish, manage, maintain, and operate library facilities.
  5. Employ necessary personnel to carry out this chapter.
  6. Purchase supplies and equipment.
  7. Acquire and hold property by purchase, devise, lease, gift, or otherwise and sell, exchange, or otherwise dispose of property.
  8. Prepare and adopt a budget.
  9. Receive and account for funds from cooperative members.
  10. Adopt rules.
  11. Make an annual report to each member regarding the budget and expenditures, services rendered, program, development plans, audits, and any other information.
  12. Enter into contracts necessary to fulfill this chapter.
  13. Establish and collect rates and charges for services rendered.
  14. Invest excess funds.
  15. Establish special funds.
  16. Join and participate in civic and professional organizations.

Source:

S.L. 1991, ch. 596, § 9; 1997, ch. 453, § 11.

54-24.3-10. Regional library cooperative members — Rights and responsibilities.

All members of a regional library cooperative are entitled to receive supplementary reference services, delivery service for library materials, interlibrary loan services, and assistance with citation and location of materials, and reciprocal borrowing privileges among the users of member libraries. All members of a regional library cooperative shall share resources with the exception that rare or restricted materials may be exempt, implementing use standards and protocols; avail themselves of continuing education and training opportunities provided by the cooperative; participate in reference, referral, and interlibrary loan services using communication systems for information exchanged among all types of libraries; maintain total expenditures for library operation, excluding capital improvements, at a level not lower than the preceding fiscal year, or maintain the same or higher mill levy or mill rate equivalency as the preceding fiscal year; and participate in cooperative bibliographic projects.

Source:

S.L. 1991, ch. 596, § 10; 1997, ch. 453, § 12.

54-24.3-11. Voting rights of members.

Each academic, institutional, public, school, and special library has one vote on the board of the regional library cooperative. Each operating public school district has one vote on the board of the cooperative and represents all public school media centers located within the district. Private and parochial school media centers located within each public school district are a single entity and shall elect one voting representative from among themselves.

Source:

S.L. 1991, ch. 596, § 11; 1997, ch. 453, § 13.

54-24.3-12. Withdrawal of membership.

To discontinue participation in a regional library cooperative, a library cooperative member shall give, in advance, a one-year written notice to the board of the cooperative and the North Dakota library coordinating council. No member may withdraw unless it has been a participant in the regional library cooperative for at least two years at the time of termination. The withdrawing member shall return all property of the regional library cooperative.

Source:

S.L. 1991, ch. 596, § 12; 1997, ch. 453, § 14.

54-24.3-13. Regional library cooperatives — Operating grants.

Each regional library cooperative, upon formation, may apply to the North Dakota library coordinating council for grant funds available for disbursement by the council.

Source:

S.L. 1991, ch. 596, § 13; 1997, ch. 453, § 15.

54-24.3-14. Fiscal controls and reports.

The board of a regional library cooperative shall develop appropriate accounting and record management policies and procedures documenting the operations of the cooperative. These policies and procedures must provide that:

  1. All records for the regional library cooperative and board, including those of the board treasurer, are to be maintained at the cooperative headquarters.
  2. Copies of the regional library cooperative board minutes are sent to each member library, the North Dakota library coordinating council, and the state librarian.
  3. The fiscal year runs from July first to June thirtieth and financial records and activities are maintained in accordance with accepted accounting practices. A record of all bills, payments, and receipts must be presented to the regional library cooperative board by the treasurer at regular meetings and at any other meeting as required by the board.
  4. An annual report of cooperative operations, including an accounting of all revenues and expenses, must be filed with the North Dakota library coordinating council and the state librarian at the close of each fiscal year.

Source:

S.L. 1991, ch. 596, § 14; 1997, ch. 453, § 16.

54-24.3-15. Cooperative services and activities.

  1. Each regional library cooperative shall include as part of its five-year plan for development provisions for:
    1. Reference services to supplement those provided by each local library, including interlibrary reference and referral services to residents of the cooperative.
    2. Interlibrary loan services on behalf of residents of the cooperative.
    3. Delivery services for library materials.
    4. Citation and location services for library materials.
  2. Each cooperative may provide for:
    1. Consultant services and shared staff expertise;
    2. Cooperative or coordinated acquisition of library materials or subject specialization programs;
    3. Reciprocal borrowing between member librarians;
    4. Staff development and inservice training programs;
    5. Centralized ordering, cataloging, and processing of the library materials;
    6. Cooperative storage of library materials and lost-copy protection programs;
    7. Access to computerized literature citation and information data bases;
    8. Preservation of library materials programs;
    9. Public relations services; and
    10. Any other services not inconsistent with this section.

Source:

S.L. 1991, ch. 596, § 15; 1997, ch. 453, § 17.

54-24.3-16. Dissolution of the regional library cooperative.

If the need for a regional library cooperative ceases to exist, the board of the cooperative, by a two-thirds vote of its members, may declare its intent to dissolve the organization and file with the North Dakota library coordinating council a plan for affecting the dissolution. Upon receipt of the dissolution plan, the council shall determine if the area of service can be allocated to other regional library cooperatives, determine whether the assets and liabilities of the regional library cooperative seeking to dissolve can be assumed and absorbed by adjoining regional library cooperatives, and consider any other factors that relate to the operation and functioning of the regional library cooperative seeking to dissolve. If the council determines that the regional library cooperative should be dissolved, the dissolution takes effect when all legal and fiscal obligations of the regional library cooperative have been satisfied.

Source:

S.L. 1991, ch. 596, § 16; 1997, ch. 453, § 18.

CHAPTER 54-24.4 Library Coordinating Council

54-24.4-01. North Dakota library coordinating council — Members — Term.

The North Dakota library coordinating council consists of eleven members. The president of the North Dakota library association, or the president’s designee, is an ex officio voting member of the council. The state librarian is an ex officio nonvoting member of the council. The governor shall appoint nine members to the council; one of whom must represent a public or private higher education institution library; two of whom must represent libraries at large; one of whom must represent school libraries; two of whom must represent public libraries; one of whom must represent disabled, economically disadvantaged, and minority populations; and two must be citizens at large. All appointed members, except citizens at large, must be practicing librarians. The governor shall take into account reasonable geographic considerations when appointing members of the council. The term of each member is three years. If at any time during a member’s term the member ceases to possess the qualifications required by this section, the member’s office is deemed vacant, and the governor shall appoint a qualified representative to complete the term of office. No member may be appointed to serve more than two consecutive three-year terms.

Source:

S.L. 1997, ch. 453, § 19; 2001, ch. 486, § 1; 2005, ch. 493, § 1; 2015, ch. 380, § 1, eff August 1, 2015; 2021, ch. 407, § 1, eff August 1, 2021.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 380, S.L. 2015 became effective August 1, 2015.

54-24.4-02. North Dakota library coordinating council — Compensation and expense reimbursement.

Each member of the North Dakota library coordinating council is entitled to receive as compensation sixty-two dollars and fifty cents per day, together with expenses as provided in sections 44-08-04 and 54-06-09, while attending meetings or performing duties directed by the council. No compensation may be paid under this section to any council member who receives compensation as a regular state official or employee.

Source:

S.L. 1997, ch. 453, § 19; 1997, ch. 432, § 27.

54-24.4-03. North Dakota library coordinating council — Meetings.

The North Dakota library coordinating council shall hold at least one meeting each calendar year for the purpose of awarding grants or contracts. The council shall give notice to the press and the public of any council meeting at least thirty days in advance of the meeting. Awarding of any grant or contract requires approval by two-thirds of the members of the council.

Source:

S.L. 1997, ch. 453, § 19.

54-24.4-04. North Dakota library coordinating council — Powers.

The North Dakota library coordinating council may elect from its members an executive committee to assist it in performing its duties. The council, in consultation with the state librarian, may request assistance from the staff of the state library in performing its powers and duties.

Source:

S.L. 1997, ch. 453, § 19.

54-24.4-05. North Dakota library coordinating council — Duties.

The North Dakota library coordinating council shall:

  1. Assist in planning, coordinating, and evaluating the services and programs of libraries in the state.
  2. Serve as the state advisory council on libraries as required by Public Law No. 101-254.
  3. Approve the distribution of grants to libraries, except for grants distributed under chapter 54-24.2.
  4. Facilitate the development of a comprehensive statewide online library catalog, promote statewide resource sharing, and encourage electronic networking among all types of libraries.
  5. Strengthen the state library in its role of coordinating and enriching library service in the state.
  6. Support and strengthen library cooperative ventures, including consortia, regional associations, and partnerships, in their role of extending and improving library services in the state.
  7. Promote equitable access to information resources and library services to persons throughout the state.
  8. Promote the services of libraries and librarians.
  9. Take action necessary to carry out chapter 54-24.3 and this chapter.

Source:

S.L. 1997, ch. 453, § 19; 2005, ch. 493, § 2.

CHAPTER 54-25 State Institutions — Regulation As to Sale and Use of Dairy Products [Repealed]

[Repealed by S.L. 1969, ch. 445, § 1]

CHAPTER 54-26 State Census [Repealed]

[Repealed by omission from this code]

CHAPTER 54-27 Fiscal Administration

54-27-01. Fiscal year — Reports — When made.

The fiscal year for the state of North Dakota commences on the first day of July and ends on the thirtieth day of June of the following year. All reports required annually or biennially of any state officer or from any private corporation or limited liability company, unless otherwise provided, must be made to and must include the thirtieth day of June preceding. All accounts of such officers must be closed and balanced to that date.

Source:

S.L. 1893, ch. 67, § 1; R.C. 1895, §§ 302, 5144; R.C. 1899, §§ 302, 5144; R.C. 1905, §§ 375, 6730; C.L. 1913, §§ 632, 7318; R.C. 1943, § 54-2701; S.L. 1993, ch. 54, § 106.

54-27-02. County treasurers must remit state funds collected or in their hands.

All funds collected by or in the hands of the treasurer of any county in this state must be remitted promptly by the county treasurer in the manner provided by law, without expense to the state, and at the risk of the county treasurer. The county treasurer must be allowed actual expenses by the board of county commissioners.

Source:

S.L. 1899, ch. 152, § 1; R.C. 1899, § 326; R.C. 1905, § 2383; C.L. 1913, § 3256; R.C. 1943, § 54-2702.

Notes to Decisions

County’s Failure to Impose Fines.

The law gives the state the right to money collected as fines and the county treasurer has an obligation to promptly remit such money, but there is no statutory authority for the collection of money from a county when the county court has not imposed a mandatory fine. State ex rel. Rayl v. Hettinger County, 467 N.W.2d 98, 1991 N.D. LEXIS 53 (N.D. 1991).

State’s Right to Recover Fines.

In order to prevail in a suit to recover fines alleged to have been improperly retained by a county, the state must establish a legal right to recover from the county. Because the state did not contest the county court’s jurisdiction over DUI proceedings or bond forfeitures, it was barred from collaterally attacking the county court judgments in an attempt to “correct” the court’s alleged improper designation of penalties as costs rather than fines. Because the state could not collaterally attack the judgments, any right in the money sought had to be established independent of the judgments. State ex rel. Rayl v. Hettinger County, 467 N.W.2d 98, 1991 N.D. LEXIS 53 (N.D. 1991).

There is no statutory authority which gives the state the right to collect from a county when the county court has not imposed a mandatory fine. State ex rel. Rayl v. Hettinger County, 467 N.W.2d 98, 1991 N.D. LEXIS 53 (N.D. 1991).

DECISIONS UNDER PRIOR LAW

County Treasurer’s Capacity.

A county treasurer collecting state taxes acted merely as a person designated to make the collection, and not as an agent of either the state or county, and hence the county could not be required to answer for such funds collected on the theory of agency. State v. Grand Forks County, 71 N.D. 355, 300 N.W. 827, 1941 N.D. LEXIS 177 (N.D. 1941).

54-27-03. County auditors to furnish office of management and budget with abstract of tax list. [Repealed]

Repealed by S.L. 1991, ch. 658, § 2.

54-27-04. County treasurers to transmit state taxes.

The county treasurer, as an agent of the state, shall, on or before the fifteenth of each month, transmit in full to the state treasurer all state taxes collected in the previous month together with a report thereon. The original report must be forwarded with the remittance to the state treasurer.

The state treasurer shall furnish a receipt to the county treasurer for the funds received, send a duplicate of the receipt to the county auditor, and cover the amounts to the state taxes distribution fund.

The director of the office of management and budget, on or before the last day of same month shall, by drawing appropriate warrants on the state taxes distribution fund, transfer the funds to the general fund and other funds in accordance with the purposes for which the taxes were levied and collected.

Source:

S.L. 1890, ch. 183, § 3; 1891, ch. 1, § 1; R.C. 1895, § 324; R.C. 1899, § 324; R.C. 1905, § 2381; C.L. 1913, § 3254; R.C. 1943, § 54-2704; S.L. 1959, ch. 372, § 100; 1967, ch. 390, § 1; 2005, ch. 494, § 1.

DECISIONS UNDER PRIOR LAW

Analysis

Authority to Withhold Taxes.

Where state taxes were collected by a county treasurer and demand was duly made upon him for the same by the state officers authorized to receive them, he could not withhold such taxes and apply them in satisfaction of a claim of the county against the state for prior overpayments made to it. State ex rel. Strutz v. Nelson, 72 N.D. 402, 7 N.W.2d 735, 1943 N.D. LEXIS 77 (N.D. 1943).

County Treasurer’s Capacity.

The county treasurer in collecting state taxes did not act as the agent of the county but as an individual designated by his official name to collect for the state, and the taxes thus collected were held by him subject to the orders of the state officers authorized to receive them. State ex rel. Strutz v. Nelson, 72 N.D. 402, 7 N.W.2d 735, 1943 N.D. LEXIS 77 (N.D. 1943).

54-27-05. Office of management and budget to deliver to state treasurer order on county treasurer for taxes collected. [Repealed]

Repealed by S.L. 1967, ch. 390, § 2.

54-27-06. State treasurer to notify county treasurer of amount due state for taxes collected. [Repealed]

Repealed by S.L. 1967, ch. 390, § 2.

54-27-07. Apportionment of moneys belonging to counties — How made.

The apportionment of all moneys paid into the state treasury, any part of which is required by law to be paid to the several counties or to political subdivisions, must be made by the office of management and budget and state treasurer. The office of management and budget and state treasurer shall keep an account with each county or political subdivision, crediting it with all such apportionments and charging it with all sums paid to it. The office of management and budget shall draw an order on the state treasurer for the amount so credited, and shall forward the same to the county treasurer of such county or the clerk or auditor of such political subdivision, and at the same time shall send a written notice to the county auditor or the clerk or auditor of the political subdivision stating the amount so apportioned.

Source:

S.L. 1890, ch. 183, § 8; R.C. 1895, § 328; R.C. 1899, § 328; R.C. 1905, § 380; C.L. 1913, § 640; R.C. 1943, § 54-2707; S.L. 1959, ch. 372, § 103.

54-27-08. How moneys paid from state treasury — Warrants — When not necessary.

Except as otherwise provided, moneys may be paid from the state treasury only upon the warrant or order prepared by the office of management and budget drawn on the state treasurer. The director of the office of management and budget shall recommend a form for order and warrant-check of the state government which must conform, so far as consistent with statutory requirements, to approved banking practice to facilitate handling of such instruments by banks and other depositories. When an order and warrant-check is signed by the state auditor, the state treasurer shall accept the order or warrant with the treasurer’s signature, making the order and warrant-check negotiable. No warrant upon the treasurer may be delivered or mailed to the payee or the payee’s agent or representative until the warrant has been signed by the treasurer and entered on the treasurer’s books as a check drawn on a bank depository. A record must be maintained specifying upon what fund or from what apportionment each warrant is to be paid. The state treasurer may redeem outstanding bonds or pay interest on bonds when due without the warrant of the office of management and budget, retaining the bond or interest coupon as a voucher for the payment until the next settlement. With respect to electronic records and electronic signatures, the state treasurer shall utilize the services provided by the information technology department.

Source:

S.L. 1890, ch. 183, § 9; R.C. 1895, § 329; R.C. 1899, § 329; R.C. 1905, § 381; C.L. 1913, § 641; R.C. 1943, § 54-2708; S.L. 1955, ch. 98, § 11; 1957 Supp., § 54-2708; S.L. 1959, ch. 372, § 104; 1979, ch. 187, § 99; 1983, ch. 555, § 3; 2001, ch. 5, § 4; 2003, ch. 465, § 3.

Cross-References.

State funds deposited in Bank of North Dakota, see N.D.C.C. § 6-09-07.

54-27-09. Office of management and budget to cancel unexpended appropriations — When they may continue. [Repealed]

Repealed by S.L. 1965, ch. 358, § 20.

54-27-09.1. Standing and continuing appropriations. [Repealed]

Repealed by omission from this code.

54-27-09.2. Appropriations for certain buildings and improvements not to revert if unused. [Repealed]

Repealed by omission from this code.

54-27-10. Appropriations — When available.

Unless otherwise authorized as provided in this section, seventy-five percent of the appropriations made by the legislative assembly for the line items of salaries and wages and operating expenses for any state institution, department, board, commission, or bureau in the executive branch of state government for the biennium, except institutions under the jurisdiction and supervision of the state board of higher education, shall become available on the first day of July next succeeding the enactment by the legislative assembly. The remaining twenty-five percent of any such appropriations shall be available only at the beginning of the fourth quarter of the biennium. No state institution, department, board, commission, or bureau in the executive branch of government for which an appropriation for salaries and wages and operating expenses is made may disburse more than seventy-five percent of such appropriation during the first eighteen months of the biennium nor incur any expense or liability which shall be discharged from such appropriation or for which such appropriation shall become available. Whenever it is made to appear to the emergency commission by a verified petition submitted by a state institution, department, board, commission, or bureau in the executive branch of state government that the percentage of the appropriation for operating expenses allocated for the first three-quarters of the biennium will not be adequate to properly perform its duties and functions, because of seasonal or other unusual circumstances, it may authorize a revision of the allocated percentage in any such items, except salaries and wages, provided it will not deprive such state institution, department, board, commission, or bureau from maintaining its office for the fourth quarter of the biennium.

Source:

S.L. 1893, ch. 67, § 2; R.C. 1895, § 303; R.C. 1899, § 303; R.C. 1905, § 376; C.L. 1913, § 635; S.L. 1937, ch. 12, § 1; 1941, ch. 22, § 1; R.C. 1943, § 54-2710; S.L. 1965, ch. 120, § 4; 1971, ch. 504, § 1; 1979, ch. 552, § 1; 1983, ch. 82, § 133.

Cross-References.

Emergency commission, see N.D.C.C. ch. 54-16.

54-27-11. Appropriation — Record kept by office of management and budget — Duties and limitations.

The office of management and budget shall keep a record showing:

  1. The total amount appropriated for maintenance for each state officer or agency, and of each separate item thereof.
  2. The amount equal to seventy-five and twenty-five percent of the total appropriated and each separate item thereof.
  3. The amount expended and the balance on hand. The term expended includes amounts which are payable for which funds have not yet been disbursed.

The office of management and budget may not allow any expenditure or issue any warrant during the first eighteen months of each biennium in excess of seventy-five percent of any item appropriated for salaries and wages and operating expenses for any state official or state agency in the executive branch of government. The duties and limitations imposed upon the office of management and budget apply only to the total amount appropriated for salaries and wages and operating expenses for the biennium but not to separate amounts appropriated for those line items, for all penal and charitable institutions of this state and all institutions under the jurisdiction and supervision of the state board of higher education. The administrative department, office, or board shall keep a record showing the amount, equal to seventy-five and twenty-five percent, respectively, of the total amount and of each separate item appropriated for salaries and wages and operating expenses for all such institutions under its control and is responsible for the enforcement of the restrictions upon the expenditure of all moneys appropriated to such institutions for such purposes.

Source:

S.L. 1937, ch. 12, § 2; 1941, ch. 22, § 2; R.C. 1943, § 54-2711; S.L. 1959, ch. 372, § 106; 1965, ch. 120, § 5; 1965, ch. 203, § 83; 1979, ch. 552, § 2; 1983, ch. 82, § 134; 1983, ch. 555, § 4; 2009, ch. 478, § 1.

54-27-12. Expenditure of amount in excess of appropriation for state institutions — Unlawful.

The administrative department, office, or board of any penal or charitable state institution, or the state board of higher education, or any person thereof, in the transaction of the business of any state institution under its direction or control, may not make nor authorize knowingly any expenditure in the matter of the erection or improvement of any public building or structure, or the purchase of any real property, in excess of any appropriation made by the legislative assembly for such purpose. The president, superintendent, or managing officer of any state institution conducted under the direction or control of any department, office, or board, or the state board of higher education may not connive nor conspire knowingly with such departments, offices, or boards, nor with any member thereof, to procure to be expended in the matter of the erection or improvement of any public building or structure, or the purchase of any real property at the state institution of which the person is president, superintendent, or managing officer, any sum in excess of the appropriation therefor as made by the legislative assembly.

Source:

S.L. 1929, ch. 225, § 1; R.C. 1943, § 54-2712; S.L. 1965, ch. 203, § 84.

Notes to Decisions

In General.

The board may not spend more money than appropriated by the legislature for the erection or improvement of any public building or structure, or for the purchase of any real property, or divert money appropriated by the legislature for one institution to another institution. Leadbetter v. Rose, 467 N.W.2d 431, 1991 N.D. LEXIS 49 (N.D. 1991), overruled, Bulman v. Hulstrand Constr. Co., 521 N.W.2d 632, 1994 N.D. LEXIS 202 (N.D. 1994).

54-27-13. Penalty for expenditure in excess of appropriation for state institutions.

Any person violating the provisions of section 54-27-12 is guilty of a class B misdemeanor, and is, upon conviction, subject to summary removal from office by the governor, except elected officials who shall be subject to impeachment.

Source:

S.L. 1929, ch. 225, § 2; R.C. 1943, § 54-2713; S.L. 1965, ch. 203, § 85; 1975, ch. 106, § 587.

54-27-14. Cancellation of outstanding warrants. [Repealed]

Repealed by S.L. 1989, ch. 649, § 2.

54-27-15. Procedure when canceled warrant presented for payment. [Repealed]

Repealed by S.L. 1989, ch. 649, § 2.

54-27-15.1. State treasurer’s checks, warrants, and warrant-checks — Cancellation — Deposit to common schools trust fund — Subsequent payment — Continuing appropriation.

The state treasurer, at the beginning of each fiscal year, shall prepare a list of the checks, warrants, and warrant-checks drawn on various depositories which are more than two years old which remain outstanding and unpaid and shall show the number, date, payee, with address of payee if available, amount, and fund, if available, against which said instrument was drawn. A copy of such list must then be used as an authority for writing a receipt of the total of such check or checks and shall credit such amount to the common schools trust fund pursuant to chapter 47-30.2. One copy of such receipt with list of instruments affected must be provided to the administrator of unclaimed properties. In the event such check, warrant, or warrant-check is at any subsequent time presented for payment, or a claim is made by any person for the amount of any such instrument, further proceedings must be conducted in accordance with chapter 47-30.2. These expenditures are hereby subject to a standing and continuing appropriation.

Source:

S.L. 1945, ch. 292, § 1; R.C. 1943, 1957 Supp., § 54-27151; S.L. 1959, ch. 372, § 109; 1989, ch. 649, § 1; 1993, ch. 520, § 1; 1995, ch. 514, § 1; 2021, ch. 337, § 18, eff July 1, 2021.

54-27-15.2. Subsequent payment. [Repealed]

Repealed by S.L. 1959, ch. 372, § 117.

54-27-15.3. Checks of the state department of health and consolidated laboratories — Cancellation — Deposit to general fund. [Repealed]

Repealed by S.L. 1989, ch. 649, § 2.

54-27-15.4. Subsequent payment. [Repealed]

Repealed by S.L. 1989, ch. 649, § 2.

54-27-16. Permission of industrial commission necessary for investment of public funds.

No officer, nor the head of any board, bureau, commission, institution, or industry of the state, except the Bank of North Dakota, may buy, sell, exchange, or in any manner acquire or dispose of any stocks, bonds, certificates of indebtedness, notes, mortgages, or other evidence of debt, in which any of the public funds of said officer, board, bureau, commission, institution, department, or industry are or may be invested, without first having obtained permission from the industrial commission of the state. Such permission must be granted by a resolution duly adopted. The provisions of this section do not apply to loans and investments made by the board of university and school lands or by the state investment board on behalf of the funds enumerated in section 21-10-06.

Source:

S.L. 1937, ch. 189, § 1; R.C. 1943, § 54-2716; S.L. 1963, ch. 205, § 5.

Cross-References.

Industrial commission, see N.D.C.C. ch. 54-17.

54-27-17. Penalty for investment of public funds without consent of industrial commission.

Any officer, or the head of any board, bureau, commission, department, institution, or industry of the state violating any of the provisions of section 54-27-16, is guilty of a class B misdemeanor.

Source:

S.L. 1937, ch. 189, § 2; R.C. 1943, § 54-2717; S.L. 1975, ch. 106, § 588.

54-27-18. State a preferred creditor.

The state is a preferred creditor in all cases of payments due to the state under any contracts.

Source:

S.L. 1901, ch. 200, § 1; R.C. 1905, § 10389; C.L. 1913, § 11248; R.C. 1943, § 54-2718.

54-27-19. Highway tax distribution fund — State treasurer to make allocation to state, counties, and cities.

A highway tax distribution fund is created as a special fund in the state treasury into which must be deposited the moneys available by law from collections of motor vehicle registration and related fees, fuels taxes, special fuels taxes, use taxes, and special fuels excise taxes. The state treasurer shall transfer the first five million five hundred thousand dollars per biennium from the highway tax distribution fund to the state highway fund for the purpose of providing administrative assistance to other transferees. After the transfer of the first five million five hundred thousand dollars, any moneys in the highway tax distribution fund must be allocated and transferred monthly by the state treasurer, as follows:

  1. Sixty-one and three-tenths percent must be transferred monthly to the state department of transportation and placed in a state highway fund.
  2. Two and seven-tenths percent must be transferred monthly to the township highway fund.
  3. One and five-tenths percent must be transferred monthly to the public transportation fund.
  4. Thirty-four and five-tenths percent must be allocated to the counties of this state in proportion to the number of vehicle registrations credited to each county. Each county must be credited with the certificates of title of vehicles registered by residents of the county. The state treasurer shall compute and distribute the counties’ share monthly after deducting the incorporated cities’ share. All the moneys received by the counties from the highway tax distribution fund must be set aside in a separate fund called the “highway tax distribution fund” and must be appropriated and applied solely for highway purposes in accordance with section 11 of article X of the Constitution of North Dakota. The state treasurer shall compute and distribute monthly the sums allocated to the incorporated cities within each county according to the formulas in this subsection using the incorporated cities’ populations as determined by the last official regular or special federal census or the census taken in accordance with the provisions of chapter 40-02 in case of a city incorporated subsequent to the census.
    1. For counties having no cities with a population of ten thousand or more, twenty-seven percent of the total county allocation must be distributed to all of the incorporated cities within the county on a countywide per capita basis. The remaining county allocation amount must be transferred into the county highway tax distribution fund.
    2. For each county having a city with a population of ten thousand or more, the amount transferred each month into the county highway tax distribution fund must be the difference between the amount allocated to that county pursuant to this subsection and the total amount allocated and distributed to the incorporated cities in that county as computed according to the following formula:
      1. A statewide per capita average as determined by calculating twenty-seven percent of the amount allocated to all of the counties under this subsection divided by the total population of all of the incorporated cities in the state.
      2. The share distributed to each city in the county having a population of less than one thousand must be determined by multiplying the population of that city by the product of 1.50 times the statewide per capita average computed under paragraph 1.
      3. The share distributed to each city in the county having a population of one thousand to four thousand nine hundred ninety-nine, inclusive, must be determined by multiplying the population of that city by the product of 1.25 times the statewide per capita average computed under paragraph 1.
      4. The share distributed to each city in the county having a population of five thousand or more must be determined by multiplying the population of that city by the statewide per capita average for all such cities, which per capita average must be computed as follows: the total of the shares computed under paragraphs 2 and 3 for all cities in the state having a population of less than five thousand must be subtracted from the total incorporated cities’ share in the state as computed under paragraph 1 and the balance remaining must then be divided by the total population of all cities of five thousand or more in the state.
  5. The moneys allocated to the incorporated cities must be distributed to them monthly by the state treasurer and must be deposited by the cities in a separate fund and may only be used in accordance with section 11 of article X of the Constitution of North Dakota and an incorporated city may use the fund for the construction, reconstruction, repair, and maintenance of public highways within or outside the city pursuant to an agreement entered into between the city and any other political subdivision as authorized by section 54-40-08.

Source:

S.L. 1967, ch. 304, § 7; 1971, ch. 505, § 1; 1973, ch. 425, § 1; 1989, ch. 72, § 19; 2005, ch. 495, § 1; 2009, ch. 40, § 18; 2009, ch. 479, § 1; 2011, ch. 407, § 1; 2015, ch. 381, § 1, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 381, S.L. 2015 became effective August 1, 2015.

54-27-19.1. Township highway aid fund — Distribution.

The state treasurer shall no less than quarterly allocate and distribute all moneys in the township highway aid fund to the counties of the state based on the length of township roads in each county compared to the length of all township roads in the state. To receive any funds under this section, organized townships must provide fifty percent matching funds. The county treasurer shall allocate the funds received to the organized townships in the county which provide fifty percent matching funds based on the length of township roads in each of those organized townships compared to the length of all township roads in the county. The funds received must be deposited in the township road and bridge fund and used for highway and bridge purposes. If a county does not have organized townships, or has some organized and some unorganized townships, the county shall retain a pro rata portion of the funds received based on the length of roads in unorganized townships compared to the length of township roads in organized townships in the county. Moneys retained by a county for the benefit of unorganized townships under this section must be deposited in the county road and bridge fund. Moneys retained by the county treasurer due to the failure of organized townships to provide required matching funds must be returned to the state treasurer who shall deposit the funds in the highway tax distribution fund. The board of county commissioners shall certify to the state treasurer any change in township road mileage when a change occurs and shall, by July first of each even-numbered year, certify the total number of township road mileage in each of the county’s organized and unorganized townships. The state treasurer shall prescribe the form and manner by which the certification is made.

Source:

S.L. 1983, ch. 664, § 5; 1989, ch. 650, § 1; 2009, ch. 40, § 19.

54-27-19.2. Reporting of number of motor vehicles registered on Indian reservations — Use for determining each county’s share of highway tax distribution fund.

Before the tenth day of each month, each governing body of an Indian reservation having a motor vehicle registration ordinance may report the number of motor vehicles registered on the reservation to the director of the department of transportation. The director of the department of transportation shall multiply the number of motor vehicles reported by a factor that represents the portion of funds in the highway tax distribution fund derived from taxes on motor fuels and other special fuels during the most recent fiscal year. The director of the department of transportation shall report the resulting product to the state treasurer for incorporation into the county distribution formula in subsection 2 of section 54-27-19 as follows:

  1. Where the boundaries of the Indian reservation do not encompass more than one county, the director of the department of transportation shall credit the total product to that county.
  2. Where the boundaries of the Indian reservation encompass more than one county, the director of the department of transportation shall allocate the product to each county containing a portion of the Indian reservation in the ratio of the number of reservation registered motor vehicles in that county to the total of reservation registered motor vehicles in all the counties containing a portion of that Indian reservation. If the number of reservation registered motor vehicles in a county containing a portion of an Indian reservation is not available, the director of the department of transportation shall allocate the product to each county containing a portion of an Indian reservation in the ratio of the number of miles of county roads, as designated under section 24-05-16, within the county on the reservation to the total of the number of miles of county roads on the reservation.

Source:

S.L. 1993, ch. 521, § 1.

54-27-20. Revenue sharing trust fund.

A revenue sharing trust fund is hereby created in the state treasury for deposit of all payments received by the state under the Fiscal Assistance to State and Local Governments Act (federal-state revenue sharing) [Pub. L. 92-512; 86 Stat. 919] and acts amendatory thereto. Interest earned on these deposits must be deposited in the trust fund and disbursed in accordance with federal and state law. Moneys in the trust fund must be disbursed as authorized by legislative appropriations and federal and state law upon vouchers prepared by the director of the office of management and budget.

Source:

S.L. 1973, ch. 426, § 1.

Note.

Fiscal Assistance to State and Local Governments Act, see 31 USCS § 6702 et seq.

54-27-20.1. State revenue sharing. [Repealed]

Repealed by S.L. 1987, ch. 35, § 5.

54-27-20.2. State revenue sharing distribution formula. [Repealed]

Repealed by S.L. 1997, ch. 19, § 3.

54-27-20.3. Disbursement of local funds — Reports. [Repealed]

Repealed by S.L. 1997, ch. 19, § 3.

54-27-21. Fixed asset minimum reporting value.

All state departments, agencies, boards, bureaus, commissions, industries, and institutions shall include all fixed assets under their control in their financial statements, except those having a value of five thousand dollars or less. The state auditor is authorized to provide for the written exemption of specific fixed assets having a value of more than five thousand dollars when an exemption is justified upon generally accepted accounting principles.

Source:

S.L. 1975, ch. 478, § 1; 1977, ch. 493, § 1; 1985, ch. 574, § 1; 1993, ch. 522, § 1; 2001, ch. 517, § 1.

54-27-21.1. Documentation of asset acquisitions.

Any state agency or institution that acquires the use of an asset as the result of a lease arrangement shall prepare a written analysis documenting the decision to acquire the use of the asset. The agency or institution shall make the analysis available to the auditor for review during the audit for the fiscal period during which the decision was made.

Source:

S.L. 1995, ch. 515, § 1.

54-27-22. Revolving fund for prepayment of consulting and planning fees for capital improvements.

Funds must be made available to all state agencies, institutions, and departments from a preliminary planning revolving fund in the state treasury under the control of the director of the office of management and budget for studies, planning, architectural programming, schematic designs, and cost estimates relating to proposed new capital improvements and major remodeling of existing facilities. State agencies, institutions, and departments interested in obtaining planning moneys shall submit a written request detailing the scope and purpose of such project to the director of the office of management and budget. The director shall file such request with, and shall present the director’s recommendations regarding the proposed project and necessary planning moneys to the legislative assembly or the budget section if the legislative assembly is not in session. Funds may be advanced only if an authorization has first been received from the legislative assembly or the budget section. Any request considered by the budget section must comply with section 54-35-02.9. Such funds advanced must be repaid to the preliminary planning revolving fund as moneys become available through legislative appropriation or other sources for the commencement of the project.

Source:

S.L. 1975, ch. 479, § 1; 2001, ch. 487, § 1; 2009, ch. 482, § 98; 2019, ch. 438, § 13, eff August 1, 2019.

54-27-23. Cash flow financing.

In order to effectively meet the cyclical cash flow needs of state government, the office of management and budget upon approval of the emergency commission is hereby authorized to issue certificates in anticipation of revenue, notes, or bonds, to special funds on deposit in the state treasury. Any issue of such certificates, notes, or bonds must be approved by the emergency commission and are to be used for cash flow financing only, and not to offset projected deficits in state finances unless first approved by the legislative assembly or the budget section if the legislative assembly is not in session. The budget section may approve additional cash flow financing not to exceed eighty percent of estimated general fund revenues relating to sales or production occurring prior to June thirtieth, to be collected in July and August after the end of the biennium. Such additional cash flow financing is only effective for sixty days unless an extension or reapproval is received from the legislative assembly or the budget section if the legislative assembly is not in session. Any request considered by the budget section must comply with section 54-35-02.9. If a revenue shortfall of greater than five percent occurs, the office of management and budget shall order budget allotments under section 54-44.1-12 prior to approval by the legislative assembly or the budget section of such additional cash flow financing. It is the intent of the legislative assembly that all borrowing must be repaid by the end of the biennium. The terms of any specific issue of such certificates, notes, or bonds may not exceed one hundred eighty days from the date of issuance whereupon the principal and interest on the certificates, notes, or bonds must be paid in full from the state general fund or from another issue of a similar nature. All principal and interest on such issues made during a biennial period must be repaid in full at the close of the biennial period from the state general fund. When certificates, notes, or bonds are issued for cash flow purposes to funds which otherwise would be invested, with the investment income accruing to the special fund, the certificate must bear an investment rate of return which must be agreed upon by the state investment board, and must be at a level commensurate with the yield to be reasonably expected by such fund if invested in alternate securities.

Source:

S.L. 1983, ch. 565, § 1; 1987, ch. 40, § 5; 2009, ch. 482, § 98; 2019, ch. 438, § 14, eff August 1, 2019.

54-27-24. Paying refunds from the general fund.

Each office, agency, or institution that must deposit funds collected in the general fund shall pay refunds from the general fund.

The office of management and budget shall establish accounting requirements for paying refunds from the general fund in accordance with the central accounting system.

Source:

S.L. 1991, ch. 660, § 1; 1997, ch. 454, § 1.

54-27-25. Tobacco settlement trust fund — Interest on fund — Uses.

There is created in the state treasury a tobacco settlement trust fund. The fund consists of the tobacco settlement dollars obtained by the state under subsection IX(c)(1) of the master settlement agreement and consent agreement adopted by the east central judicial district court in its judgment entered December 28, 1998 [Civil No. 98-3778] in State of North Dakota, ex rel. Heidi Heitkamp v. Philip Morris, Inc. Moneys received by the state under subsection IX(c)(1) must be deposited in the fund. Moneys in the fund must be transferred within thirty days of receipt by the state to a community health trust fund. Moneys in the fund may be appropriated for community-based public health programs and other public health programs, including programs with emphasis on preventing or reducing tobacco usage in this state.

Source:

S.L. 1999, ch. 461, § 1; 2003, ch. 43, § 11; I.M., approved November 4, 2008; 2015, ch. 37, § 12, eff July 1, 2015; 2017, ch. 11, § 39, eff July 1, 2017; 2017, ch. 29, § 13, eff July 1, 2017; 2017, ch. 193, § 2, eff July 1, 2017; 2019, ch. 37, § 9, eff July 1, 2019; 2021, ch. 32, § 9, eff July 1, 2021.

Effective Date.

The 2015 amendment of this section by section 12 of chapter 37, S.L. 2015 became effective July 1, 2015.

Note.

Section 54-27-25 was amended 3 times by the 2017 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 13 of Chapter 29, Session Laws 2017, Senate Bill 2004; Section 2 of Chapter 193, Session Laws 2017, Senate Bill 2024; and Section 39 of Chapter 11, Session Laws 2017, House Bill 1012.

Collateral References.

Validity, Construction, Application, and Effect of Master Settlement Agreement (MSA) Between Tobacco Companies and Various States, and State Statutes Implementing Agreement; Use and Distribution of MSA Proceeds. 25 A.L.R.6th 435.

54-27-25.1. Water development trust fund expenditures. [Repealed]

Source:

S.L. 2009, ch. 15, § 39; Repealed by 2021, ch. 32, § 13, eff July 1, 2021.

54-27-26. Report on transportation funding and expenditures.

Each county, city, and township shall provide to the tax commissioner an annual report on funding and expenditures relating to transportation projects and programs. The report must be provided within ninety days after the close of a calendar year. The report must contain by fund the beginning balance, revenues by major source, expenditures by major category, the ending balance, and any other information requested by the tax commissioner. A township may provide a copy of the appropriate annual township financial report that was provided to the county as the annual report.

Source:

S.L. 2009, ch. 40, § 20; 2011, ch. 408, § 1.

54-27-27. Report on federal grant applications by state agency.

Each state agency, excluding entities under the control of the state board of higher education, shall report to the office of management and budget before applying for a federal grant for which the agency may receive estimated funding of twenty-five thousand dollars or more. The report must include the purpose of the grant; the potential amount of the grant; any additional employees that may be required because of the grant; the time period covered by the grant; and grant requirements, including state matching requirements or maintenance of effort. The state agency shall provide updates on the status of the grant application as required by the office of management and budget. At each meeting of the budget section of the legislative management, the office of management and budget shall report to the budget section on the reports received from state agencies under this section.

Source:

S.L. 2011, ch. 41, § 29; 2015, ch. 382, § 2, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 2 of chapter 382, S.L. 2015 became effective August 1, 2015.

54-27-27.1. Report on federal funds by state agency — Legislative management report.

  1. Biennially, each executive branch state agency, excluding entities under the control of the state board of higher education, receiving federal funds, shall report to the office of management and budget a plan to operate the state agency when federal funds are reduced by five percent or more of the total federal funds the state agency receives. The report must include information on whether the agency will request state funds to offset the decrease in federal funds. The report is not required to address a reduction in federal funds received by the agency which is a result of:
    1. A decrease in caseloads or cost per case;
    2. A change in the anticipated project completion date for a construction project qualifying for federal fund reimbursement; or
    3. The completion of a one-time project funded in whole or in part by federal funds.
  2. The office of management and budget shall report to the legislative management by October fifteenth of each even-numbered year on the reports received from state agencies under this section. The report must include a summary of the reports received from state agencies on how each agency will operate with the reduction in federal funds.

History. S.L. 2015, ch. 382, § 1, eff August 1, 2015.

Effective Date.

This section became effective August 1, 2015.

54-27-27.2. Federal funding requirements — State agency analysis.

Each state agency, excluding entities under the control of the state board of higher education, prior to applying for or accepting federal grant funds, shall:

  1. Consider the federal requirements that the state must comply with as a condition of receipt of the federal funds;
  2. Determine that acceptance of the federal funds does not subject the state to undue federal oversight or regulations; and
  3. Determine that the federal requirements are not in conflict with legislative intent.

Source:

S.L. 2017, ch. 395, § 1, eff August 1, 2017.

54-27-28. Interest earnings of closed funds.

Unless otherwise directed, interest earned on moneys remaining in a fund which has been closed must be credited to the general fund.

Source:

S.L. 2011, ch. 409, § 1.

54-27-29. Effective date of census data — Tax distributions.

Unless otherwise provided by this code, the effective date for federal decennial census data on any population-based tax distributions made by the state treasurer is July first following the release of the federal decennial census data.

Source:

S.L. 2011, ch. 407, § 2.

Note.

Section 3 of chapter 407, S.L. 2011 provides: “ RETROACTIVE APPLICATION . Section 2 of this Act is retroactive in application to March 1, 2011.”

54-27-30. Definitions for the foundation aid stabilization fund — Uses of the foundation aid stabilization fund.

  1. For the purposes of section 24 of article X of the Constitution of North Dakota:
    1. “Education-related purposes” means purposes related to public elementary and secondary education.
    2. “State aid to school districts” means:
      1. The general fund appropriations to the department of public instruction for state school aid, transportation aid, and special education aid; and
      2. The general fund appropriations to the department of career and technical education for grants to school districts and area centers.
  2. Any accessible funds in the foundation aid stabilization fund, exceeding the required reserves under section 24 of article X of the Constitution of North Dakota, may be used only for education-related purposes, including state aid to school districts, career and technical education grants to school districts and area centers, and education-related property tax relief.

Source:

S.L. 2017, ch. 368, § 7, eff July 1, 2017.

CHAPTER 54-27.1 Federal Aid Coordinator [Repealed]

[Repealed by S.L. 1983, ch. 570, § 13; S.L. 1985, ch. 82, § 162]

CHAPTER 54-27.2 Budget Stabilization Fund

54-27.2-01. Budget stabilization fund.

The budget stabilization fund is a special fund in the state treasury. The state investment board shall supervise investment of the budget stabilization fund in accordance with chapter 21-10. Any interest or other budget stabilization fund earnings must be credited to the fund. Any amounts provided by law for deposit in the fund and any interest or earnings of the fund which would bring the balance in the fund at the end of any fiscal year to an amount greater than fifteen percent of the current biennial state general fund budget, as finally approved by the most recently adjourned special or regular session of the legislative assembly, may not be deposited in or credited to the fund but must be deposited instead in the state general fund.

Source:

S.L. 1987, ch. 638, § 1; 1991, ch. 597, § 1; 2007, ch. 26, § 2; 2011, ch. 483, § 7; 2015, ch. 383, § 1, eff July 1, 2015; 2017, ch. 394, § 1, eff April 18, 2017.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 383, S.L. 2015 became effective July 1, 2015, pursuant to an emergency clause in section 4 of chapter 383, S.L. 2015.

54-27.2-02. Certain general fund revenues to be deposited in the budget stabilization fund.

Notwithstanding any other provision of law except section 54-27.2-01, any amount in the state general fund in excess of sixty-five million dollars at the end of any biennium, after deducting any amounts that would otherwise be transferred to the general fund under section 54-27.2-01, must be transferred by the state treasurer to the budget stabilization fund. For purposes of this section, “at the end of any biennium” means after cancellation of unexpended appropriations under section 54-44.1-11.

Source:

S.L. 1987, ch. 638, § 2; 1991, ch. 597, § 2; 1995, ch. 37, § 12; 1997, ch. 15, § 32; 1999, ch. 37, § 34; 2015, ch. 383, § 2, eff July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 2 of chapter 383, S.L. 2015 became effective July 1, 2015, pursuant to an emergency clause in section 4 of chapter 383, S.L. 2015.

54-27.2-03. Transfers and expenditures from budget stabilization fund.

  1. The governor may order transfers from the budget stabilization fund to the general fund as follows:
    1. After general fund allotments totaling at least three percent have been made during the biennium under section 54-44.1-12, the governor may order a transfer up to an amount equal to three percent of general fund appropriations.
    2. If the maximum transfer from the budget stabilization fund is made to the general fund under subdivision a and an additional general fund allotment of at least one percent is made under section 54-44.1-12, the governor may order a transfer up to an amount equal to two percent of general fund appropriations.
    3. If the maximum transfer from the budget stabilization fund is made to the general fund under subdivision b and an additional general fund allotment of at least one percent is made under section 54-44.1-12, the governor may order a transfer up to an amount equal to three percent of general fund appropriations.
    4. If the maximum transfer from the budget stabilization fund is made to the general fund under subdivision c and an additional general fund allotment of at least one percent is made under section 54-44.1-12, the governor may transfer any remaining funds in the budget stabilization fund to the general fund.
    5. The amount of a transfer made under any subdivision of this subsection may not exceed the difference between the general fund revenue projections for the biennium of the most recently adjourned special or regular session of the legislative assembly and the revised general fund revenue projections for the biennium, less the amounts of any allotments ordered under section 54-44.1-12 during the biennium, as determined by the director of the office of management and budget. For purposes of this subsection, “general fund revenue projections for the biennium” includes the general fund balance at the beginning of the biennium.
    6. For purposes of this subsection, the calculation of total percentage general fund allotments made under section 54-44.1-12 must be based on total general fund allotments after any allotment exemption granted by the director of the budget compared to total general fund appropriations.
  2. Any amounts transferred from the budget stabilization fund upon order of the governor to the state general fund may be expended within the limits of legislative guidelines and general fund appropriations of the most recently adjourned special or regular session of the legislative assembly. For purposes of this section, “general fund appropriations” includes total biennium general fund appropriations approved by the most recently adjourned special or regular session of the legislative assembly. The director of the office of management and budget must provide a report to the budget section of the legislative management when a transfer is made under this section.

Source:

S.L. 1987, ch. 638, § 3; 1991, ch. 597, § 3; 2009, ch. 482, § 98; 2017, ch. 394, § 2, eff April 18, 2017.

CHAPTER 54-28 Capitol Building Certificates [Repealed]

[Omitted as statutes not of a general and permanent nature]

CHAPTER 54-29 State Bonds, General Provisions

54-29-01. State bonds — Where payable.

All state bonds issued under the provisions of this title are payable at a place or places specified in the resolution or other related documents of the industrial commission.

Source:

S.L. 1923, ch. 293, § 1; 1925 Supp., § 2284a1; R.C. 1943, § 54-2901; 1989, ch. 651, § 1.

Collateral References.

Power of state to issue bonds as implying power to refund them, 1 A.L.R.2d 134.

54-29-02. When state bonds may be canceled and destroyed.

Any bonds issued by the state and the interest coupons accompanying them, if any, must be canceled and destroyed according to the provisions of the resolution or other related documents of the industrial commission.

Source:

S.L. 1923, ch. 289, § 1; 1925 Supp., § 2284a2; R.C. 1943, § 54-2902; S.L. 1983, ch. 566, § 1; 1989, ch. 651, § 2.

54-29-03. Filing of certificate showing destruction.

Within thirty days after the destruction of bonds issued by the state and the coupons accompanying them, if any, there must be filed in the office of the industrial commission, there to be kept on file with the resolution or other related documents to which it refers, a certificate, executed by the person or persons responsible for the destruction, showing the destruction of such bonds and coupons, if any, to have been done and performed in accordance with the terms of the resolution or other related documents of the industrial commission.

Source:

S.L. 1923, ch. 289, § 1; 1925 Supp., § 2284a2; R.C. 1943, § 54-2903; S.L. 1983, ch. 566, § 2; 1989, ch. 651, § 3.

54-29-04. Reissuance of bonds when canceled and destroyed. [Repealed]

Repealed by S.L. 1989, ch. 651, § 4.

54-29-05. Issuance of coupon bond — Authorizing exchange. [Repealed]

Repealed by S.L. 1989, ch. 651, § 4.

CHAPTER 54-30 Bonds of North Dakota, Real Estate Series

54-30-01. Authority for issuing bonds of North Dakota, real estate series — Purpose of issue.

An issue of bonds of the state of North Dakota, to be known as “bonds of North Dakota, real estate series”, is authorized and directed under the conditions and in the manner and for the purposes set forth in this chapter. Such issue of bonds is authorized for the purpose of making delivery thereof to the industrial commission of North Dakota, as provided in this chapter, to the end that the commission, by negotiation and sale of the bonds, may procure necessary funds for the Bank of North Dakota, thus replacing in the Bank the funds employed by it from time to time in making loans upon first mortgages of real estate.

Source:

S.L. 1923, ch. 292, §§ 1, 5; 1925 Supp., §§ 2290c1, 2290c5; R.C. 1943, § 54-3001.

Notes to Decisions

Constitutionality.

The issuance of bonds and levying of a tax on all nonexempt property in the state to build and operate state-owned industries and utilities does not violate the Fourteenth Amendment to the United States Constitution. Green v. Frazier, 253 U.S. 233, 40 S. Ct. 499, 64 L. Ed. 878, 1920 U.S. LEXIS 1418 (U.S. 1920).

Under the act authorizing the issuance of bonds to finance the Bank of North Dakota, the property of taxpayers is not taken without due process of law on the ground that the taxes are imposed for private purposes. Green v. Frazier, 253 U.S. 233, 40 S. Ct. 499, 64 L. Ed. 878, 1920 U.S. LEXIS 1418 (U.S. 1920).

Collateral References.

Power of state to issue bonds as implying power to refund them, 1 A.L.R.2d 134.

54-30-02. Assignment of first mortgages by Bank of North Dakota to state as security for bonds.

Whenever first mortgages upon real estate are held by the Bank of North Dakota securing a total amount of unpaid mortgage loans in the sum of at least one hundred thousand dollars, the industrial commission may cause such mortgages, or such of them as it shall think proper, but not less than the total amount of one hundred thousand dollars, to be assigned, together with the obligations thereby secured, to the state treasurer. The assignment of each such mortgage and obligation must be executed by the president of the Bank of North Dakota and must recite that it is made to “The state treasurer of North Dakota, and successors in office in trust, as security for bonds to be issued under the designation of bonds of North Dakota, real estate series, as provided by law”. The assignment must be duly recorded by the president in each county in which the lands affected by the mortgage are situated. As soon as such assignments are recorded, they, with the instruments assigned, must be delivered to the state treasurer, and at the same time the president of the Bank shall deliver to the state treasurer a verified statement showing the principal amount remaining unpaid on each such obligation secured by the mortgages so delivered.

Source:

S.L. 1923, ch. 292, § 2; 1925 Supp., § 2290c2; R.C. 1943, § 54-3002; S.L. 1983, ch. 567, § 1.

54-30-03. State treasurer to inspect assignment and prepare bonds — Governor and treasurer to issue bonds.

Upon receiving the assignments provided for in section 54-30-02, the state treasurer shall notify the governor, the state auditor, and the secretary of state, each of whom immediately shall inspect them or cause them to be inspected. Thereupon, the state treasurer immediately shall prepare for issue, and the governor and the state treasurer thereafter shall issue, negotiable bonds of North Dakota in an amount not exceeding the principal amount remaining unpaid of the outstanding loans secured by the mortgages so delivered to the state treasurer plus costs of issuance and any reasonably required reserve funds.

Source:

S.L. 1923, ch. 292, § 3; 1925 Supp., § 2290c3; R.C. 1943, § 54-3003; S.L. 1983, ch. 567, § 2.

54-30-04. Bonds — Series designation — Terms — Execution.

Each issue of bonds must be designated by series figure or figures, or by series letter or letters, or by a combination of both figures and letters, and such designation must be different from that of every other issue. All mortgages securing the bond issues must be given a series designation. Each of the bonds so issued must contain a recital that it is secured by real estate first mortgages deposited with the state treasurer of North Dakota under this chapter which may be cited as the Second Real Estate Bond Act of North Dakota. The bonds must be executed by the governor and the state treasurer under the great seal of the state and must be attested by the secretary of state. The state auditor and the secretary of state shall endorse and sign on each bond issued a certificate showing that it was issued pursuant to law and is within the debt limit. The bonds so issued must be designated “bonds of North Dakota, real estate series”.

Source:

S.L. 1923, ch. 292, § 3; 1925 Supp., § 2290c3; R.C. 1943, § 54-3004; S.L. 1983, ch. 567, § 3.

54-30-05. Denominations — Maturity — Interest rate.

The bonds issued under this chapter must be payable in not more than thirty years from the date of issue. The terms of the bonds as to denominations, period of maturity, and rate of interest must be fixed by the commission.

Source:

S.L. 1923, ch. 292, § 4; 1925, ch. 100, § 1; 1925 Supp., § 2290c4; S.L. 1927, ch. 104, § 1; R.C. 1943, § 54-3005; S.L. 1983, ch. 567, § 4.

DECISIONS UNDER PRIOR LAW

Analysis

Constitutionality.

The state does not impair the obligation of contract or violate the due process clause by calling the bonds after five years through the industrial commission. Catholic Order of Foresters v. State, 67 N.D. 228, 271 N.W. 670, 1937 N.D. LEXIS 76 (N.D.), cert. denied, 301 U.S. 665, 57 S. Ct. 796, 81 L. Ed. 1331, 1937 U.S. LEXIS 309 (U.S. 1937).

Public Notice.

The public notice required by this statute means reasonable notice to the public generally as distinguished, from notice personally to the holders of the bonds. Catholic Order of Foresters v. State, 67 N.D. 228, 271 N.W. 670, 1937 N.D. LEXIS 76 (N.D.), cert. denied, 301 U.S. 665, 57 S. Ct. 796, 81 L. Ed. 1331, 1937 U.S. LEXIS 309 (U.S. 1937).

Time of Call of Bonds.

The industrial commission cannot exercise the option at any time prior to the expiration of the five-year period, nor can it waive the right of exercising it at the time the bonds are issued. Catholic Order of Foresters v. State, 67 N.D. 228, 271 N.W. 670, 1937 N.D. LEXIS 76 (N.D.), cert. denied, 301 U.S. 665, 57 S. Ct. 796, 81 L. Ed. 1331, 1937 U.S. LEXIS 309 (U.S. 1937).

The option may be exercised at any time after five years from the date of the issue of the bonds and before the date of their stated maturity. Catholic Order of Foresters v. State, 67 N.D. 228, 271 N.W. 670, 1937 N.D. LEXIS 76 (N.D.), cert. denied, 301 U.S. 665, 57 S. Ct. 796, 81 L. Ed. 1331, 1937 U.S. LEXIS 309 (U.S. 1937).

54-30-06. Interest rate of bonds. [Repealed]

Repealed by S.L. 1981, ch. 269, § 34.

54-30-07. Bonds — Where payable — Presentment for payment.

The principal and interest of bonds issued under this chapter must be payable at or by the office of the state treasurer in Bismarck, or at or by a bank or trust company designated in accordance with section 54-30-16. Each bond and coupon must be presented at the office where the same is payable within ten years from the date of its maturity.

Source:

S.L. 1923, ch. 292, § 4; 1925, ch. 100, § 1; 1925 Supp., § 2290c4; S.L. 1927, ch. 104, § 1; R.C. 1943, § 54-3007; S.L. 1983, ch. 567, § 5.

54-30-08. Bonds delivered to industrial commission.

In furtherance of the purposes of this chapter, the governor and the state treasurer, after the issue, execution, sealing, and attestation of bonds, shall deliver them to the industrial commission, in such denominations and amounts, bearing interest at such rates, and running to such period of maturity, as may be required by the commission, within the limitations provided in this chapter.

Source:

S.L. 1923, ch. 292, § 6; 1925 Supp., § 2290c6; R.C. 1943, § 54-3008.

54-30-09. Sale and delivery of bonds by industrial commission.

The industrial commission, in connection with and in addition to its other powers and duties, shall act as the agent of the state for the negotiation, sale, and delivery of the bonds issued under the provisions of this chapter. It shall sell them at not less than ninety-eight percent of par value for cash in such manner and at such times as in its sound discretion it shall deem most advantageous to the interests of the state. The commission may receive all moneys paid by buyers of the bonds, upon the sale thereof, and upon receipt of the purchase price may deliver to each purchaser the bonds purchased by that purchaser according to law. The moneys so derived and received from the sale of the bonds must be placed by the commission in the funds of the Bank of North Dakota. When any bonds issued under the provisions of this chapter are sold at a premium, such moneys to the extent of the amount of such premium must be delivered to the reimbursement of the Bank of North Dakota for the expenses of conducting the work in the department.

Source:

S.L. 1923, ch. 292, § 6; 1925 Supp., § 2290c6; R.C. 1943, § 54-3009; S.L. 1979, ch. 554, § 2.

Notes to Decisions

Discount Sale.

The industrial commission cannot sell at a discount bonds which this statute requires to be sold at par and for cash. Currie v. Frazier, 48 N.D. 600, 186 N.W. 244, 1921 N.D. LEXIS 135 (N.D. 1921).

54-30-10. Credit of state of North Dakota pledged for payment of bonds.

Upon the delivery of bonds purchased and paid for under the provisions of this chapter, the faith and credit of the state of North Dakota is pledged for the payment thereof, both principal and interest, to the lawful holder and owner thereof, upon presentment for payment.

Source:

S.L. 1923, ch. 292, § 6; 1925 Supp., § 2290c6; R.C. 1943, § 54-3010.

Notes to Decisions

Deficiency.

Since the state’s credit is pledged for payment of bonds the trustee must recover the best price upon foreclosure on lands assigned to him as security, because any deficiency in the real estate bond sinking fund must be made up out of taxes. Herr v. Rudolf, 75 N.D. 91, 25 N.W.2d 916, 1947 N.D. LEXIS 49 (N.D. 1947).

54-30-11. Payment of assigned mortgage.

After the Bank, under this chapter, has assigned any mortgage, and the obligation thereby secured, all payments thereon must be made to the Bank in trust for:

  1. The security and payment of bonds to be issued as provided in this chapter; and
  2. Delivery to the general fund of the state of such remaining part or balance thereof as may come within this chapter.

Source:

S.L. 1923, ch. 292, § 7; 1925 Supp., § 2290c7; S.L. 1929, ch. 182, § 1; R.C. 1943, § 54-3011; S.L. 1953, ch. 307, § 1; 1957 Supp., § 54-3011; S.L. 1983, ch. 567, § 6.

Notes to Decisions

Transfer of Funds.

A transfer of five hundred thousand dollars from the hail fund to the real estate bond interest payment fund with provisions for repayment was an unconstitutional diversion of the hail fund. Brye v. Dale, 64 N.D. 41, 250 N.W. 99, 1933 N.D. LEXIS 244 (N.D. 1933).

54-30-12. Bank of North Dakota to furnish state treasurer with record of payments and balance due on all mortgages.

The Bank shall certify to the state treasurer, from time to time, a list of obligations and mortgages delivered to the state treasurer under this chapter showing the payments made and amounts remaining unpaid.

Source:

S.L. 1923, ch. 292, § 9; 1925, ch. 100, § 2; 1925 Supp., § 2290c9; S.L. 1929, ch. 182, § 2; R.C. 1943, § 54-3012; S.L. 1983, ch. 567, § 7.

54-30-13. Bank of North Dakota to turn over to treasurer all payments made to it — Payments may be made to treasurer — Report to bank. [Repealed]

Repealed by S.L. 1983, ch. 567, § 16.

54-30-14. Money paid on assigned mortgage held in separate fund by Bank of North Dakota.

The Bank shall deposit the moneys paid on a mortgage assigned under this chapter into a separate fund designated as the real estate bond sinking fund. In this fund must be placed all sums collected for the purpose of retiring the principal of the bonds at their maturity and paying the interest thereon when due, except an administration fee which may be retained by the Bank. Payments may be made out of the fund only for the purpose for which it is created. The fund must be kept apart from all other funds in the possession of the Bank. The Bank also shall keep in the fund, as a part thereof for the same purpose, in the same manner, and under the same limitations and conditions, all moneys received whether from the proceeds of taxes or from payments made by the industrial commission or from legislative appropriations or otherwise, which must be by law or by other authoritative designation made applicable to the payment of the principal of the bonds or the interest thereon.

Source:

S.L. 1923, ch. 292, § 7; 1925 Supp., § 2290c7; S.L. 1929, ch. 182, § 1; R.C. 1943, § 54-3014; S.L. 1983, ch. 567, § 8.

54-30-15. Investment of bond sinking fund.

The state treasurer, with the approval of the industrial commission, shall invest the fund designated as the real estate bond sinking fund in any securities designated as legal investments by section 15-03-04. At the request of the commission, the state treasurer shall redeem and take up out of the real estate bond sinking fund any series of real estate bonds outstanding which may be called by the commission. Upon notification of the call, the state treasurer shall cause to be published a notice of call as directed by the commission but not less than forty-five days prior to the date of call. No other disposition by appropriation, or otherwise, ever may be made of the money in the fund until the bonds are paid fully or until the time limit provided by law for the payment thereof has expired, but if any of the bonds issued and delivered to the commission, as hereinbefore provided, are returned to the state treasurer not sold, then the returned bonds may not be deemed a part of the bond issue secured by the fund.

Source:

S.L. 1923, ch. 292, § 7; 1925 Supp., § 2290c7; S.L. 1929, ch. 182, § 1; R.C. 1943, § 54-3015; S.L. 1983, ch. 567, § 9; 1987, ch. 190, § 13.

54-30-16. Payment of interest or principal on bonds at maturity — Where made — Report — Made from real estate bond payment fund — Appropriation.

The state treasurer shall pay interest on bonds issued under this chapter when due, or upon presentation of the coupon for interest when due, and shall redeem the bonds upon their maturity by paying the principal thereof. All payments must be made from the fund, without a warrant. Each payment so made, in addition to other accounting as provided by law, must be reported by the Bank. The governor may designate a bank or trust company as the fiscal agent of the state at which or by whom or to whom bond principal or interest may be payable. Such agent shall act for the state in the making of such payments under such rules as shall be made by the governor. All moneys in the fund, except the administration fee required to be paid to the Bank, are appropriated for the payment of interest and principal of the bonds. This appropriation may not be repealed, and no provisions made in this chapter for the payment of the bonds and interest may be discontinued until the debt evidenced by the bonds, both principal and interest, has been paid.

Source:

S.L. 1923, ch. 292, § 8; 1925 Supp., § 2290c8; R.C. 1943, § 54-3016; S.L. 1959, ch. 372, § 111; 1983, ch. 567, § 10.

54-30-17. Bank of North Dakota to collect obligations secured by mortgage.

If the obligation secured by any mortgage held by the state treasurer under the provisions of this chapter is not performed by the mortgagor according to its terms, or if any condition expressed in any such mortgage is not performed and kept according to its terms, the state treasurer shall certify the facts to the president of the Bank of North Dakota, who shall proceed as agent of the state treasurer as trustee for the state of North Dakota, by foreclosure or otherwise, to make collection of the obligation secured. The Bank of North Dakota shall make collection of the principal and interest on all mortgages taken under the provisions of this chapter.

Source:

S.L. 1923, ch. 292, § 9; 1925, ch. 100, § 2; 1925 Supp., § 2290c9; S.L. 1929, ch. 182, § 2; R.C. 1943, § 54-3017.

54-30-17.1. Land acquired by state treasurer — Sale or lease by the Bank of North Dakota or board of university and school lands — Deposit of net proceeds in bond sinking fund.

The Bank of North Dakota or the board of university and school lands, as agent of the state treasurer as trustee for the state of North Dakota, shall manage all lands acquired in the name of the state treasurer as trustee for the state of North Dakota under this chapter and, with the approval of the state treasurer, shall have full power to sell or lease such lands. All instruments executed by the Bank or board in furtherance of this authority must be executed by an authorized officer or employee of the Bank or board in the name of “The Bank of North Dakota or the board of university and school lands as agent for the state treasurer as trustee for the state of North Dakota”. The Bank or board may charge a fee and may be reimbursed for all actual costs incurred in the management and sale of these lands. The net proceeds from the sale or lease of these lands must be deposited in the real estate bond sinking fund established by this chapter. The sale and leasing of these lands must be done in accordance with chapter 15-07. In the case of a lease by the party holding the right of redemption, that party has the right to buy at any time.

Source:

S.L. 1989, ch. 652, § 1.

54-30-18. Foreclosure of mortgage by Bank of North Dakota — Sale by bank. [Repealed]

Repealed by S.L. 1983, ch. 567, § 16.

54-30-19. Foreclosure — Power of attorney not required — Costs — Property bid in for state when bid is not sufficient. [Repealed]

Repealed by S.L. 1983, ch. 567, § 16.

54-30-20. Transfer of land covered by mortgage to state by mortgagor.

The Bank of North Dakota, instead of foreclosing, may take a conveyance from the owner to the state treasurer as trustee for the state of North Dakota in payment of the mortgage covering the land conveyed.

Source:

S.L. 1923, ch. 292, § 9; 1925, ch. 100, § 2; 1925 Supp., § 2290c9; S.L. 1929, ch. 182, § 2; R.C. 1943, § 54-3020.

54-30-21. Bonds bought with proceeds of foreclosure sale. [Repealed]

Repealed by S.L. 1983, ch. 567, § 16.

54-30-22. When sheriff’s deed issued to state on foreclosure sale — Taxes suspended. [Repealed]

Repealed by S.L. 1983, ch. 567, § 16.

54-30-23. Land acquired by state through foreclosure sold by state — Proceeds of sale — Where deposited — Sale approved. [Repealed]

Repealed by S.L. 1977, ch. 138, § 12.

54-30-24. Cash balance in hands of state treasurer — Information — Mortgages substituted for those paid. [Repealed]

Repealed by S.L. 1983, ch. 567, § 16.

54-30-24.1. Bonds as legal investments and security.

Notwithstanding any restrictions contained in any other law, the state and all public officers, boards, and agencies, and political subdivisions and agencies thereof, all national banking associations, state banks, trust companies, savings banks and institutions, savings and loan associations, investment companies, and other persons carrying on a banking business, and all executors, administrators, guardians, trustees, and other fiduciaries, may legally invest any sinking funds, moneys, or other funds belonging to them or within their control in any bonds issued pursuant to this chapter, and the bonds are authorized security for all public deposits.

Source:

S.L. 1983, ch. 567, § 11; 1985, ch. 317, § 79.

54-30-25. Bonds and certificates of indebtedness exempt from taxation.

All bonds and certificates of indebtedness issued under this chapter are exempt from state, county, and municipal taxes of all kinds.

Source:

S.L. 1923, ch. 292, § 11; 1925 Supp., § 2290c11; R.C. 1943, § 54-3025; S.L. 1983, ch. 567, § 12.

54-30-26. Industrial commission to make annual statement of condition of funds — Tax for deficiency in funds or indicated deficiency.

The industrial commission, in July of each year, shall prepare a statement showing the condition of the real estate bond sinking fund and the real estate bond interest payment fund. Such statement must be approved by the state treasurer and must be presented to the state board of equalization at its annual meeting of the same year, together with the recommendation of the commission. If an actual deficit exists in either or both of said funds, the board shall make an annual levy of taxes sufficient to make good the deficit in such fund, including a levy to restore the fund to solvency as hereinafter defined. If at the time the statement is made, an actual deficit does not exist, but by reason of adverse crop conditions, or for any other reason, the commission shall anticipate a deficit in either or both of said funds during the ensuing year, it shall recommend tax levies to meet such anticipated deficits, and the board shall make such levies in accordance with such recommendation.

Source:

S.L. 1923, ch. 292, § 12; 1925, ch. 100, § 3; 1925 Supp., § 2290c12; S.L. 1929, ch. 182, § 3; R.C. 1943, § 54-3026.

54-30-27. Certificate of indebtedness issued to meet interest due on bonds.

If there are not sufficient funds in the real estate bond sinking fund to meet the payment of principal and interest due on real estate series bonds on any principal or interest payment date, the state treasurer may borrow sufficient funds by the issuance of certificates of indebtedness of the state to make such payment. Such certificates shall be issued in anticipation of taxes to be levied, must be signed by the governor and the state treasurer, must mature not more than thirty months from date of issuance, and must bear interest at a rate not to exceed twelve percent per annum if sold at private sale, with no interest rate ceiling if sold at public sale. Such certificates of indebtedness must be in the form prescribed by the state treasurer. When such money is borrowed by the state, the fund is to be reimbursed annually as provided in section 54-30-26.

Source:

S.L. 1923, ch. 292, § 12; 1925, ch. 100, § 3; 1925 Supp., § 2290c12; S.L. 1929, ch. 182, § 3; R.C. 1943, § 54-3027; S.L. 1983, ch. 567, § 13.

54-30-28. Amount of bonds which may be issued.

The powers herein granted may be exercised repeatedly and the duties following thereon likewise shall be performed from time to time, as the occasion may arise under this chapter, but at no time may the amount of bonds issued and outstanding pursuant to this chapter exceed the amount of one hundred fifty million dollars.

Source:

S.L. 1923, ch. 292, § 13; 1925 Supp., § 2290c13; S.L. 1929, ch. 182, § 4; 1931, ch. 102, § 1; R.C. 1943, § 54-3028; S.L. 1983, ch. 567, § 14.

54-30-29. Real estate bond funds.

The real estate bond funds on deposit with the state treasurer must be maintained in the sums needed to pay outstanding valid enforceable real estate series bonds of the state of North Dakota and lawful interest thereon. All money in said funds not needed for such bonds and interest must upon the effective date of sections 54-30-29 through 54-30-33 be transferred by the state treasurer to the general fund in accordance with the provisions of subsection 2 of section 54-30-11.

Source:

S.L. 1961, ch. 194, § 1.

54-30-30. Transfer of real estate bond trust. [Repealed]

Repealed by S.L. 1983, ch. 567, § 16.

54-30-30.1. Transfer to board of university and school lands. [Repealed]

Repealed by S.L. 1983, ch. 567, § 16.

54-30-31. Consideration. [Repealed]

Repealed by S.L. 1983, ch. 567, § 16.

54-30-32. Management of the trust.

During the intervals between remittances to the state treasurer for the state general fund, funds available therefor may be invested as other moneys of the Bank of North Dakota are invested. The president of the Bank of North Dakota shall collect upon and enforce to the fullest extent all rights, things, and properties belonging or accruing to the trust in the president’s custody. The president may foreclose mortgages by advertisement under power of sale in the manner that mortgages of the state school funds are foreclosed, and all remedies and procedures available to the state or any department thereof are available to the president to protect, manage, and conduct the trust. No special power of attorney nor affidavit as to attorney’s fees is required.

Source:

S.L. 1961, ch. 194, § 4; 1969, ch. 121, § 7.

54-30-33. Remittances to the state general fund.

Following each calendar quarter for which the president of the Bank of North Dakota receives funds of said trust over and above costs and expenses of the Bank of North Dakota incident thereto and exceeding a proper portion of the regular Bank appropriation and a reasonable reserve for contingencies, the Bank of North Dakota shall remit such funds to the state treasurer for deposit in the general fund of the state. Such remittances must be deemed credited against money borrowed to service and pay real estate bonds of the state of North Dakota heretofore issued.

Source:

S.L. 1961, ch. 194, § 5; 1969, ch. 121, § 8.

CHAPTER 54-31 Bonds of North Dakota, Mill and Elevator Series [Repealed]

[Repealed by S.L. 1985, ch. 575, § 1]

CHAPTER 54-32 North Dakota Mill and Elevator Refunding Bonds [Repealed]

[Repealed by S.L. 1985, ch. 575, § 1]

CHAPTER 54-33 Postwar Planning Board [Repealed]

[Repealed by omission from this code]

CHAPTER 54-34 Economic Development

54-34-01. Purpose of chapter. [Repealed]

Repealed by S.L. 1991, ch. 95, § 48.

54-34-02. Appointment of director of the economic development commission. [Repealed]

Repealed by S.L. 1991, ch. 95, § 48.

54-34-03. Economic development commission — Membership — Appointment and removal — Expenses. [Repealed]

Repealed by S.L. 1991, ch. 95, § 48.

54-34-03.1. Initial commission membership. [Repealed]

Repealed by S.L. 1991, ch. 95, § 48.

54-34-04. Meeting and duties of commission. [Repealed]

Repealed by S.L. 1991, ch. 95, § 48.

54-34-05. Appointment of special committees. [Repealed]

Repealed by S.L. 1969, ch. 446, § 8.

54-34-05.1. Appointment of special committees. [Repealed]

Repealed by S.L. 1991, ch. 95, § 48.

54-34-06. Duties of the director. [Repealed]

Repealed by S.L. 1991, ch. 95, § 48.

54-34-06.1. Certain architects and engineers to be provided product listing of in-state manufacturers. [Repealed]

Repealed by S.L. 1999, ch. 462, § 3.

54-34-07. Director to receive all property of research foundation. [Repealed]

Omitted.

54-34-08. Patents and profits. [Repealed]

Repealed by S.L. 1991, ch. 95, § 48.

54-34-09. Office of economic opportunity. [Repealed]

Repealed by S.L. 1969, ch. 433, § 2.

54-34-10. International marketing efforts of state agencies — Legislative intent. [Repealed]

Repealed by S.L. 1981, ch. 528, § 22.

54-34-11. Statement of purpose.

The purpose of sections 54-34-11 through 54-34-15 is to improve the dissemination of information regarding informal investment opportunities to potential investors and entrepreneurs, and thereby stimulate the growth of small businesses in the state.

Source:

S.L. 1987, ch. 639, § 1.

54-34-12. Division of economic development and finance to establish venture capital network — Duties and functions.

The department of commerce division of economic development and finance may establish, from funds appropriated to or otherwise available to the department of commerce, the venture capital network as a clearinghouse for information on informal risk capital investment opportunities in the state. The division of economic development and finance may:

  1. Enter service contracts on a competitive bid basis with public and private agencies, institutions, organizations, and individuals for the purpose of establishing and operating the venture capital network.
  2. Receive and approve contract proposals for the purpose of establishing the venture capital network.
  3. Solicit the support and contributions of public and private agencies, organizations, institutions, and individuals.
  4. Accept and administer contributions for the purpose of operating the venture capital network.
  5. Advertise and promote the venture capital network.

Source:

S.L. 1987, ch. 639, § 2; 1991, ch. 95, § 36; 2001, ch. 488, § 29.

54-34-13. Duties and functions of venture capital network.

The venture capital network may:

  1. Solicit, compile, profile, and maintain current information describing opportunities for risk capital investment in new or emerging business ventures.
  2. Identify active informal investors and profile their distinguishing investment objectives.
  3. Provide, for a reasonable fee, a timely, confidential, and objective referral system serving both entrepreneurs and investors.
  4. Maintain statistics on the operation of the venture capital network, including the number of profiled entrepreneurs and investors, referrals, and referrals resulting in investment.

Source:

S.L. 1987, ch. 639, § 3.

54-34-14. Limitations.

  1. The venture capital network may not serve any fiduciary, advisory, or evaluative function in making referrals.
  2. The remedies and causes of action provided under the securities laws of the United States and this state apply to any conduct or activity of the venture capital network.

Source:

S.L. 1987, ch. 639, § 4.

54-34-15. Private sponsor.

The department of commerce division of economic development and finance may endeavor to locate a private sector sponsor or group of sponsors to assume administration of the venture capital network.

Source:

S.L. 1987, ch. 639, § 5; 1991, ch. 95, § 37; 2001, ch. 488, § 30.

CHAPTER 54-34.1 State Planning Division [Repealed]

[Repealed by S.L. 1969, ch. 447, § 2; S.L. 1977, ch. 495, § 7; S.L. 1979, ch. 553, § 20; S.L. 1983, ch. 82, § 154]

CHAPTER 54-34.2 Indian Development Fund [Repealed]

[Repealed by S.L. 1995, ch. 516, § 1]

CHAPTER 54-34.3 Division of Economic Development and Finance

54-34.3-01. Department of commerce division of economic development and finance established — Mission.

The department of commerce division of economic development and finance is established to assume the functions, powers, and duties of the department of economic development and finance with respect to programs and other efforts intended to enhance the economic development of the state. The mission of the division is to develop strategies and programs to:

  1. Facilitate the growth, diversification, and expansion of existing enterprises and the attraction and creation of new wealth-generating enterprises in the state;
  2. Promote economic diversification and innovation within the basic industries and economic sectors of this state, including strategies and programs designed to specialize and focus the state’s economy on identified target industries;
  3. Promote increased productivity and value-added products, processes, and services in the state, and the export of those goods and services by North Dakota enterprises to the nation and to the world;
  4. Maintain and revitalize economically depressed rural areas by working in close collaboration with local communities and by encouraging communities to enter into cooperative relationships for more efficient and effective education, health care, government service, and infrastructure maintenance;
  5. Forge a supportive partnership with the Bank of North Dakota, the board of higher education and the state’s institutions of higher education, regional planning councils, local development organizations and authorities, the state’s nonprofit development corporations, and other appropriate private and public sector organizations in achieving the economic goals of the state; and
  6. Identify those statutes, administrative rules, and policies that impede the attraction, creation, and expansion of businesses and job creation in this state.

Source:

S.L. 1991, ch. 95, § 38; 2001, ch. 488, § 31; 2009, ch. 480, § 2.

Notes to Decisions

Constitutionality.

Economic development statutes contained in N.D.C.C. chs. 11-11.1, 15-69, 40-57.4, 54-34.3, 54-60, 54-60.1 constitute an enterprise; thus, a local economic development agency’s activities did not violate the prohibition in N.D. Const. Art. X, § 18 against gifts of public funds. Moreover, the public purpose component of N.D. Const. Art. X, § 18 and due process under the Fourteenth Amendment were satisfied because economic development programs promote the prosperity and general welfare of the people within a governmental entity. Hale v. State, 2012 ND 148, 818 N.W.2d 684, 2012 N.D. LEXIS 135 (N.D. 2012), cert. denied, 568 U.S. 1087, 133 S. Ct. 847, 184 L. Ed. 2d 655, 2013 U.S. LEXIS 566 (U.S. 2013).

54-34.3-02. Definitions.

As used in this chapter, unless the context or subject matter otherwise requires:

  1. “Department” means the department of commerce.
  2. “Director” means the director of the department of commerce division of economic development and finance.
  3. “Division” means the department division of economic development and finance.

Source:

S.L. 1991, ch. 95, § 38; 2001, ch. 488, § 32.

54-34.3-03. Division structure.

The division consists of:

  1. Offices established by statute; and
  2. Offices the director organizes and establishes as necessary to carry out most efficiently and effectively the mission and duties of the division.

Source:

S.L. 1991, ch. 95, § 38; 1993, ch. 42, § 16; 1999, ch. 462, § 1; 2001, ch. 488, § 33; 2005, ch. 46, § 35; 2009, ch. 480, § 3.

54-34.3-04. Director — Compensation — Duties.

A director shall supervise and control the division. The director shall:

  1. Manage the internal operations of the division and establish policies that promote the orderly and efficient administration of the division;
  2. Appoint personnel as may be determined necessary to carry out this chapter and fix their compensation within the limits of legislative appropriations;
  3. Assume central responsibility to develop, implement, and coordinate within state government a comprehensive program of economic development consistent with the mission of the division;
  4. Coordinate that program of economic development with all other appropriate state and local government departments, agencies, institutions, and organizations that perform research, develop and administer programs, gather statistics, or perform other functions relating to economic development, and those government entities shall advise, cooperate, and provide reasonable assistance to the director in carrying out this chapter;
  5. Advise, and cooperate with, departments and agencies of the federal government and of other states, private business and agricultural organizations and associations, research institutions, and any individual or other private or public entity, and call upon those entities or individuals for consultation and assistance in their respective fields of endeavor or interest in order that the division and the state may benefit from up-to-date technical advice, information, and assistance;
  6. Cooperate with individuals and both public and private entities, including the state’s congressional delegation, in identifying and pursuing potential sources of funding and to receive those funds to be expended for purposes consistent with this chapter;
  7. Have authority to enter into contracts upon terms and conditions as determined by the director to be reasonable and to effectuate the purposes of this chapter;
  8. Identify and coordinate sources of capital and financial assistance, including lending programs of the Bank of North Dakota, and administer programs of financial assistance placed under the administration of the division, to business and industry, local governments, and other entities and individuals in the state consistent with the mission of the division; and
  9. Have authority to do any and all other things necessary and proper to carry out this chapter.

Source:

S.L. 1991, ch. 95, § 38; 1999, ch. 462, § 2; 2001, ch. 488, § 34; 2009, ch. 480, § 4.

54-34.3-05. Finance office. [Repealed]

Repealed by S.L. 2009, ch. 480, § 16.

54-34.3-06. Division offices.

The director shall organize and establish other offices as necessary to carry out most efficiently and effectively the mission and duties of the division.

Source:

S.L. 1991, ch. 95, § 38; 1993, ch. 42, § 18; 2001, ch. 488, § 36; 2005, ch. 46, § 36; 2007, ch. 493, § 5.

54-34.3-07. Division of science and technology — Deputy director — Duties. [Repealed]

Repealed by S.L. 1997, ch. 48, § 19.

54-34.3-08. Patents.

The division of economic development and finance, the North Dakota development fund, incorporated, and the North Dakota agricultural products utilization commission may hold or assign for remuneration all or a portion of their interest in patents or royalty rights acquired in the course of their operation and performance of duties as provided by law.

Source:

S.L. 1991, ch. 95, § 38; 1993, ch. 42, § 20; 1995, ch. 21, § 9; 1997, ch. 48, § 15; 2001, ch. 488, § 37.

54-34.3-09. Cooperation with other agencies or private entities to jointly publish or mail publications. [Repealed]

Repealed by S.L. 2001, ch. 488, § 58.

54-34.3-10. Commission on the status of women — Appointment — Expenses — Duties.

  1. There is established a commission on the status of women. This commission consists of five members. The governor shall appoint each member for a term of four years, staggered so that the term of at least one member expires July first of each year. A vacancy occurring other than by reason of the expiration of a term must be filled in the same manner as original appointments, except that the appointment may be made for only the remainder of the unexpired term.
  2. The members are entitled to be paid for mileage and actual expenses incurred in attending meetings and in performance of their official duties in amounts provided by law for other state officers and employees.
  3. This commission shall:
    1. Coordinate activities and serve as a clearinghouse and an advisory group to the division for information relating to economic development programs that focus on career development for women.
    2. Provide a biennial report by September first of each even-numbered year to the director of the department of commerce division of economic development and finance and the governor on the findings and recommendations of the commission and any proposed legislation necessary to implement the recommendations.
    3. Prepare for and perform followup duties in connection with state, regional, and national conferences, encourage interest, participation, and cooperation with state departments, agencies, and other organizations in developing needed services, facilities, and opportunities, and provide consultant help to local organizations created for the purpose of coordinating activities for the economic and career development of women.

Source:

S.L. 1995, ch. 458, § 8; 2001, ch. 488, § 38; 2017, ch. 393, § 1, eff August 1, 2017.

54-34.3-11. Mutual fund capital pool — Authorization.

The division of economic development and finance, in conjunction with the agricultural products utilization commission, may establish a mutual fund capital pool to attract farm and nonfarm investments in value-added processing projects.

Source:

S.L. 1999, ch. 19, § 14; 2001, ch. 488, § 39.

54-34.3-12. Value-added agriculture promotion board. [Repealed]

Repealed by S.L. 2011, ch. 439, § 7.

54-34.3-13. Rural growth incentive program.

  1. The department shall manage and administer the rural growth incentive program. A city with a population of less than two thousand five hundred may apply to the department to be designated as a rural growth incentive city. A rural growth incentive city may be eligible for a loan, grant, or both under this section.
  2. The department shall designate an applicant city as a rural growth incentive city eligible for a loan if the city raises funds in the amount of a dollar-for-dollar match for the amount requested in the loan and meets any additional program requirements provided by rule. The source of city funds used for loan matching funds may be any combination of public and private funds. If the department designates a city as a rural growth incentive city eligible for a loan under this section, subject to the availability of funds, the state shall make a loan to the city in an amount not less than twenty-five thousand dollars and not more than seventy-five thousand dollars. The department shall establish the amount of the interest rate for loans provided to a city under this subsection. The funding source of the state loan is the North Dakota development fund. The city shall distribute the city and state funds to qualifying new or expanded businesses in the city. A qualifying business in the city includes a business that provides essential services to the city. For purposes of this subsection, a business that provides essential services does not include a public utility. The governing body of the city determines whether a new or expanded business qualifies for funding, and the director of the department determines whether a business that provides essential services to the city qualifies for funding. The state shall distribute a loan to a rural growth incentive city once the city establishes the city has chosen a specified qualified business to receive funding.
  3. The department shall designate an applicant city as a rural growth incentive city eligible for a grant if the city raises funds in the amount of a dollar-for-dollar match for the amount requested in the grant application and meets any additional program requirements provided by rule. The source of city funds used for grant matching funds may be any combination of public and private funds. If the department designates a city as a rural growth incentive city eligible for a grant under this section, subject to availability of funds, the state shall make a grant to the city in an amount not to exceed ten thousand dollars. The recipient rural growth incentive city shall use the grant money received to conduct a feasibility study for the location of a new business, including an expansion of a business with the primary place of business outside the rural growth incentive city. The funding source of the state grant is the North Dakota development fund. Total grants awarded by the department under this subsection may not exceed one hundred thousand dollars per biennium.
  4. The city may not use city or state funds raised or provided under this section for costs associated with administering the rural growth incentive city. The department shall provide the rural growth incentive city with training to assist the city in expanding businesses, locating new businesses, and working with state economic development programs.

Source:

S.L. 2001, ch. 489, § 1; 2003, ch. 478, § 1; 2005, ch. 496, § 1; 2009, ch. 480, § 5; 2021, ch. 46, § 11, eff July 1, 2021.

Note.

Section 2 of chapter 489, S.L. 2001, provides:

NORTH DAKOTA DEVELOPMENT FUND ALLOCATIONS. A portion of the amount available in the North Dakota development fund relating to the transfer of regional rural development revolving loan fund moneys may be used for the purpose of providing state loan funds under section 1 [this section] of this Act.”

54-34.3-14. International business and trade office — Advisory board. [Repealed]

Repealed by S.L. 2007, ch. 493, § 9.

54-34.3-15. Local economic developer certification and education programs.

The director may implement certification and education programs through which the division provides training to assist local economic developers and community leaders in meeting the needs of businesses. The director may contract with a third-party service provider to assist in implementing the program. The director may set and charge a fee for the receipt of services under this program.

Source:

S.L. 2005, ch. 46, § 38; 2009, ch. 480, § 6.

54-34.3-16. Life science industries — Promotion — Exemption.

The commissioner of commerce shall promote the development of life science industries in this state. Life science industries include biotechnology, biomedical sciences, and biopharmaceuticals. If any entity owns or operates an animal or research facility, the ownership or operation does not violate the requirements of chapter 10-06.1, provided the commissioner annually certifies to the secretary of state that:

    1. The facility is licensed or registered with the United States department of agriculture animal and plant health inspection service, as required by the Animal Welfare Act;
    2. The facility has an assurance on file with the United States public health service; or
    3. The facility is accredited by the association for assessment and accreditation of laboratory animal care; and
  1. The primary purpose of the facility involves the production of products for uses other than human food consumption.

Source:

S.L. 2009, ch. 481, § 1.

CHAPTER 54-34.4 Division of Tourism

54-34.4-01. Division of tourism — Director.

The division of tourism is established to foster and promote tourism to, and within, the state and the full development of the state’s tourism resources and to serve as a planning and coordinating agency for tourism-related programs of the state and the state’s tourism partners. The director shall supervise and control the division of tourism.

Source:

S.L. 1993, ch. 80, § 17; 2001, ch. 488, § 40; 2009, ch. 480, § 7.

54-34.4-02. Duties of director.

The director of the department of commerce division of tourism, within the limits of legislative appropriations, shall:

  1. Implement the state’s tourism policy;
  2. Prepare and update annually a tourism marketing plan for the promotion and expansion of tourism in the state which identifies the state’s tourism resources, estimates the impact of tourism on the state’s economy, and proposes a marketing strategy for activities of the division;
  3. Work with industry groups to prepare a long-term strategic plan each biennium;
  4. Measure and forecast visitor volume, receipts, and related social and economic impacts;
  5. Work with the private sector and local, state, and federal agencies to develop the state’s tourism-related infrastructure, facilities, services, and attractions, including the state’s highways, parks, and historic sites;
  6. Organize and coordinate programs designed to promote tourism to, and within, the state through various means. Those means may include:
    1. Print advertising in magazines, newspapers, and direct mail;
    2. Advertising on radio, on television, online, in displays, or using other advertising media;
    3. Publishing pamphlets, brochures, and other graphic and pictorial materials;
    4. Designing the tourism side of the state highway map;
    5. Aiding and assisting representatives of the media to ensure greater coverage of the state’s visitor attractions, events, and recreational opportunities; and
    6. Other marketing activities and events aimed at increasing visitor volume;
  7. Work with the department of transportation to improve visitor services along highways in the state and in state rest areas;
  8. Develop opportunities for professional and technical education and training in the visitor industry;
  9. Foster an understanding among the state’s residents of the economic importance to the state of hospitality and tourism;
  10. Provide advice and technical assistance to local, public, and private tourism organizations in promoting and developing tourism; and
  11. Monitor the policies and programs of state agencies that significantly affect the visitor industry, notify those agencies of the effects of their actions on travel to, and within the state, and if necessary recommend programs or policy changes to those agencies.

Source:

S.L. 1993, ch. 80, § 17; 2001, ch. 488, § 41; 2009, ch. 480, § 8.

54-34.4-03. State tourism policy.

  1. The legislative assembly declares that:
    1. This state is endowed with scenic beauty, historical sites, cultural resources, local festivals, attractions, recreational facilities, and a population whose ethnic diversity and traditions are attractive to visitors;
    2. Tourism contributes to economic well-being by creating job opportunities, generating revenues for local businesses, and creating new wealth in the economy;
    3. Tourism instills state pride and a sense of common interest among the state’s residents;
    4. Tourism enhances the quality of life and well-being of the state’s residents by affording opportunities for recreation, new experiences, and relief from job stress;
    5. Tourism advertising and marketing improves the image of North Dakota and helps educate and create awareness among residents and visitors alike;
    6. Tourism promotes international understanding and good will, and contributes to intercultural appreciation;
    7. The development of a strong and competitive state visitor industry depends upon the availability of trained personnel, necessary infrastructure, and a receptive climate for tourism investment; and
    8. A comprehensive tourism policy is essential if tourism in the state is to grow in an orderly manner.
  2. The legislative assembly declares it is the policy of this state to:
    1. Promote and encourage the orderly growth and development of tourism to, and within, the state;
    2. Promote the availability of reliable public highways and transport services between the state’s principal tourism destinations and the main tourism-generating markets;
    3. Promote a sense of history in the state’s young people by encouraging family visits to state historic sites, and promoting the preservation and restoration of historic sites, trails, buildings, and districts;
    4. Promote the mental, emotional, and physical well-being of the American people by encouraging outdoor recreational activities within the state;
    5. Facilitate tourism to, and within, the state by developing an essential tourism infrastructure, providing investment incentives to tourism businesses, and encouraging city and county officials to plan for tourism needs and capitalize on local tourism resources;
    6. Encourage the holding of conventions, trade shows, and expositions throughout the state;
    7. Take measures to protect wildlife and natural resources in the preservation of geological, archaeological, and cultural treasures in tourist areas;
    8. Encourage, assist, and coordinate when possible the tourism activities of local and area promotional organizations and tribes;
    9. Provide hospitality training opportunities for frontline employees and provide resources to law enforcement personnel, border security, transportation security administration officials, and all state employees to assist, whenever possible, the tourism industry in helping visitors enjoy their North Dakota experience; and
    10. Ensure that the tourism interest of the state is considered fully by state agencies and the legislative assembly in their deliberations; and harmonize to the maximum extent possible, all state activities in support of tourism with the needs of the general public, the political subdivisions of the state, and the visitor industry.

Source:

S.L. 1993, ch. 80, § 17; 2009, ch. 480, § 9; 2011, ch. 439, § 1.

54-34.4-04. North Dakota motion picture development office — Advisory board. [Repealed]

Repealed by S.L. 2009, ch. 480, § 16.

54-34.4-05. Copyright and trademark.

The director of the department of commerce division of tourism may obtain copyright or trademark protection for anything that may be used to promote the policies listed in section 54-34.4-03. The director may license and charge a fee for photographs and logos and anything with copyright or trademark protection.

Source:

S.L. 2001, ch. 44, § 20.

CHAPTER 54-35 Legislative Management

54-35-01. Legislative management — Created — Members — Vacancy — Terms.

  1. The North Dakota legislative management consists of the majority and minority leaders of the house and of the senate, the speaker of the house, and six senators and six representatives chosen biennially before the close of each regular legislative session.
  2. In the house of representatives the majority leader shall appoint to the legislative management members elected by the political party with the largest number of members in the house and the minority leader of the house shall appoint to the legislative management members elected by the political party with the next largest number of members in the house. The majority and minority leaders of the house of representatives shall make the appointments so as to give the two political parties having the most members in the house the same total proportionate representation on the legislative management as prevails in the house. In allocating the membership on the legislative management to each political party, the total number of members in the house of representatives must be divided by six; the resulting quotient must then be divided into the number of members of each of the two political parties of the house; the resulting quotient for each party of the house, rounded to the nearest whole number, is the number of members of that political party in the house to be on the legislative management. Notwithstanding this allocation, the minority political party in the house of representatives must be represented by at least two members on the legislative management.
  3. In the senate the majority leader shall appoint to the legislative management members elected by the political party with the largest number of members in the senate and the minority leader shall appoint to the legislative management members elected by the political party with the next largest number of members in the senate. The majority and minority leaders of the senate shall make the appointments so as to give the two political parties having the most members in the senate the same total proportionate representation on the legislative management as prevails in the senate. In allocating the membership on the legislative management to each political party, the total number of members in the senate must be divided by six; the resulting quotient must then be divided into the number of members of each of the two political parties of the senate; the resulting quotient for each party of the senate, rounded to the nearest whole number, is the number of members of that political party in the senate to be on the legislative management. Notwithstanding this allocation, the minority political party in the senate must be represented by at least two members on the legislative management.
  4. Any vacancy occurring when the legislative assembly is not in session must be filled by the selection of another member of the legislative assembly belonging to the same party as the member originally appointed, the selection to be made by the remaining senate or house members of the legislative management, depending upon which body has the vacancy. Each senator and each representative chosen to serve on the legislative management shall serve until a new legislative management has been selected at the next regular legislative session; provided, however, that no senator, not a holdover, who is not re-elected to the senate, and no representative, who is not re-elected to the house of representatives, may serve as a member of the legislative management beyond the closing day of the term to which elected. Any vacancy occurring because any member of the legislative management is not re-elected must be filled for the period from the beginning of the session until a new legislative management is selected, in the same manner as the original legislative management is selected.

Source:

S.L. 1945, ch. 289, § 1; 1947, ch. 324, § 1; R.C. 1943, 1957 Supp., § 54-3501; S.L. 1969, ch. 448, § 1; 1983, ch. 82, § 135; 1991, ch. 598, § 1; 1999, ch. 463, § 1; 2009, ch. 482, § 48; 2011, ch. 410, § 1; 2017, ch. 385, § 1, eff April 10, 2017.

Note.

Section 97 of chapter 482, S.L. 2009 provides: “The legislative council may replace ‘chairman of the legislative council’ or ‘legislative council chairman’ with ‘chairman of the legislative management’ in North Dakota Century Code sections 4-05.1-16, 4-35-30, 14-09-09.7, 15-10.2-02, 15-52-03, 15.1-27-41, 16.1-13-10, 20.1-16-02, 24-02-37.2, 27-05.2-09, 44-02-02, 53-12.1-04, 54-03-20, 54-06-25, 54-35-20, 54-35-24, 54-61-01, and 57-39.4-31 and in any other provisions of the code.”

Section 98 of chapter 482, S.L. 2009 provides: “The legislative council may replace “budget section of the legislative council” with “budget section of the legislative management” in North Dakota Century Code sections 15-03-04, 15-10-12.1, 15-69-02, 15-69-05, 17-02-01, 20.1-02-05.1, 25-04-02.2, 40-23-22.1, 40-63-07, 47-30.1-24.1, 48-01.2-25, 50-06-05.1, 54-14-03.1, 54-16-04, 54-16-04.1, 54-16-04.2, 54-16-09, 54-23.3-09, 54-27-22, 54-27-23, 54-27.2-03, 54-44-04, 54-44-16, 54-44.1-13.1, 54-59-05, 57-38-01.29, 57-38-01.30, 64-04-03.1, and 65-08.1-02 and in any other provisions of the code.”

54-35-02. Powers and duties.

In addition to the other applicable provisions of this chapter, the legislative management has the following powers and duties:

  1. To study, consider, accumulate, compile, and assemble information on any subject upon which the legislative assembly may legislate, and upon such subjects as the legislative assembly may by concurrent or joint resolution authorize or direct, or any subject requested by a member of the legislative assembly; provided, that the legislative management may screen and prioritize studies assigned by concurrent or joint resolution to maintain its workload within the limitations of time and legislative appropriations.
  2. To collect information concerning the government and general welfare of the state and of its political subdivisions.
  3. To study and consider important issues of public policy and questions of general interest.
  4. To study and promote uniformity of legislation in the United States upon subjects upon which uniformity is desirable and to receive, review, and make recommendations on uniform and model laws recommended to it by the state commission on uniform state laws.
  5. To prepare proposed bills and resolutions for consideration of the succeeding legislative assembly.
  6. To call to its assistance other members of the legislative assembly, and it may create committees consisting of its own members, or one or more of its own members and one or more other members of the legislative assembly and delegate by written resolution to such committees such of its powers and rights as it may deem advisable. Committees of the legislative management may also include nonlegislator members. Any member of the legislative assembly has the right to attend any meeting of the legislative management and may present that member’s views on any subject which the legislative management may at any particular time be considering.
  7. To issue subpoenas or subpoenas duces tecum in the manner provided in sections 54-03.2-08 and 54-03.2-09. Committees of the legislative management may issue subpoenas and subpoenas duces tecum in the same manner if specifically authorized by the legislative management. Failure to obey a subpoena issued by the legislative management, or one of its committees, is contempt.
  8. To control the use of the legislative chambers and permanent displays in memorial hallway. Guidelines may be established pursuant to this subsection and the legislative council shall administer any guidelines that are established.
  9. To determine access to legislative information services and impose fees for providing legislative information services and copies of legislative documents. This authority may not be exercised in a manner that contravenes access to legislative documents as otherwise provided by law.

Source:

S.L. 1945, ch. 289, § 2; R.C. 1943, 1957 Supp., § 54-3502; S.L. 1969, ch. 448, § 2; 1973, ch. 410, § 5; 1979, ch. 556, § 1; 1981, ch. 529, § 2; 1985, ch. 576, § 1; 1991, ch. 483, § 2; 1993, ch. 89, § 31; 2009, ch. 482, § 49.

Cross-References.

Arrangement, correction and publication of laws, see N.D.C.C. §§ 46-03-10, 46-03-11, 46-03-15.

Constitutional amendments, reconciliation of conflicting proposals, see N.D.C.C. § 1-02-09.2.

54-35-02.1. Legislative audit and fiscal review committee.

For the purposes of studying and reviewing the financial transactions of this state; to assure the collection and expenditure of its revenues and moneys in compliance with law and legislative intent and sound financial practices; and to provide the legislative assembly with formal, objective information on revenue collections and expenditures for a basis of legislative action to improve the fiscal structure and transactions of this state, the legislative management shall appoint the legislative audit and fiscal review committee. The members of the committee must be appointed in the same manner as other members of interim committees of the legislative management.

Source:

S.L. 1973, ch. 427, § 1; 1983, ch. 82, § 136; 1997, ch. 455, § 1; 2009, ch. 482, § 50.

54-35-02.2. Powers and duties of the legislative audit and fiscal review committee.

The legislative audit and fiscal review committee shall study and review audit reports as selected by the committee from those submitted by the state auditor, confer with the auditor and deputy auditors in regard to such reports, and when necessary, confer with representatives of the department, agency, or institution audited in order to obtain full and complete information in regard to any and all fiscal transactions and governmental operations of any department, agency, or institution of the state. The committee shall meet at least once each calendar quarter during each interim. Each department, agency, or institution shall furnish to the committee such aid, information, and assistance in regard to fiscal transactions and governmental operations as it may from time to time request. Whenever the committee may determine or have reason to believe that there may have been a violation of law relating to the receipt, custody, or expenditure of public funds by any state officer or employee, the committee shall present such evidence or information as may be in its possession to the attorney general. The attorney general shall receive and accept such evidence or information and shall immediately commence such additional investigation as the attorney general determines necessary. Upon completion of the investigation, if the evidence supplied by the committee and through the investigation indicates the probability of a violation of law by any state official or employee, the attorney general immediately shall prosecute such official or employee as provided by law. Whenever the committee may determine that a state agency, department, or institution has failed to correct an audit finding within two bienniums which the committee determines critically important, the committee may recommend the legislative assembly reduce the state agency, department, or institution’s appropriation as compared with the amount appropriated to the agency, department, or institution for the previous biennium. The legislative management, through its committee on legislative audit and fiscal review, or such persons as may be directed or employed by the legislative council, is authorized, within the limits of legislative appropriations, to make such audits, examinations, or studies of the fiscal transactions or governmental operations of departments, agencies, or institutions of the state as the legislative management may determine necessary.

Source:

S.L. 1973, ch. 427, § 2; 2009, ch. 482, § 51; 2017, ch. 392, § 1, eff August 1, 2017; 2021, ch. 395, § 5, eff July 1, 2021.

Cross-References.

Assistance by legislative budget analyst and auditor, see N.D.C.C. § 54-35-14.

54-35-02.3. Employee benefits programs committee — Appointment — Selection of chairman.

The legislative management, during each biennium, shall appoint an employee benefits programs committee in the same manner as the legislative management appoints other interim committees. The legislative management shall appoint seven members of the house of representatives and six members of the senate to the committee. The legislative management shall designate the chairman of the committee. The committee shall operate according to the statutes and procedure governing the operation of other legislative management interim committees.

Source:

S.L. 1977, ch. 494, § 1; 1991, ch. 599, § 1; 2009, ch. 482, § 52; 2011, ch. 41, § 30.

54-35-02.4. Employee benefits programs committee — Powers and duties.

  1. The employee benefits programs committee shall consider and report on those legislative measures and proposals over which it takes jurisdiction and which affect, actuarially or otherwise, the retirement programs of state employees or employees of any political subdivision, and health and retiree health plans of state employees or employees of any political subdivision. The committee shall make a thorough review of any measure or proposal which it takes under its jurisdiction, including an actuarial review. The committee shall take jurisdiction over any measure or proposal that authorizes an automatic increase or other change in benefits beyond the ensuing biennium which would not require legislative approval. The committee must include in the report of the committee a statement that the proposal would allow future changes without legislative involvement. The committee shall report its findings and recommendations, along with any necessary legislation, to the legislative management and to the legislative assembly.
  2. To carry out its responsibilities, the committee, or its designee, may:
    1. Enter contracts, including retainer agreements, with an actuary or actuarial firm for expert assistance and consultation. Each retirement, insurance, or retiree insurance program shall pay, from its retirement, insurance, or retiree health benefits fund, as appropriate, and without the need for a prior appropriation, the cost of any actuarial report required by the committee which relates to that program.
    2. Call on personnel from state agencies or political subdivisions to furnish such information and render such assistance as the committee may from time to time request.
    3. Establish rules for its operation, including the submission and review of proposals and the establishing of standards for actuarial review.
  3. The committee may solicit draft measures and proposals from interested persons during the interim between legislative sessions, and may also study measures and proposals referred to it by the legislative assembly or the legislative management.
  4. A copy of the committee’s report concerning any legislative measure shall, if that measure is introduced for consideration by a legislative assembly, be appended to the copy of that measure which is referred to a standing committee.
  5. A legislative measure affecting a public employees retirement program, public employees health insurance program, or public employee retiree health insurance program may not be introduced in either house unless it is accompanied by a report from the committee. A majority of the members of the committee, acting through the chairman, has sole authority to determine whether any legislative measure affects a program.
  6. Any amendment made during a legislative session to a legislative measure affecting a public employees retirement program, public employees health insurance program, or public employee retiree health insurance program may not be considered by a standing committee unless it is accompanied by a report from the employee benefits programs committee.
  7. Any legislation enacted in contravention of this section is invalid and of no force and effect, and any benefits provided under such legislation must be reduced to the level current prior to enactment.

Source:

S.L. 1977, ch. 494, § 2; 1981, ch. 530, § 1; 1987, ch. 641, § 1; 1991, ch. 599, § 2; 1999, ch. 464, § 1; 2009, ch. 482, § 53.

54-35-02.5. Administrative rules committee.

The legislative management, during each biennium, shall appoint an administrative rules committee in the same manner as the legislative management appoints other interim committees. The legislative management shall designate the chairman of the committee. The committee shall operate according to the statutes and procedure governing the operation of other legislative management interim committees. The membership of the administrative rules committee must include at least one of the members who served during the most recently completed regular session of the legislative assembly from each of the standing committees of either the house of representatives or the senate.

Source:

S.L. 1979, ch. 557, § 1; 1991, ch. 600, § 10; 1997, ch. 456, § 1; 2009, ch. 482, § 54.

54-35-02.6. Rules reviewed by administrative rules committee — Committee responsibility.

The administrative rules committee shall review administrative rules adopted under chapter 28-32. The committee shall consider oral and written comments received concerning administrative rules. The committee shall study and review administrative rules and related statutes to determine whether:

  1. Administrative agencies are properly implementing legislative purpose and intent.
  2. There is dissatisfaction with administrative rules or with statutes relating to administrative rules.
  3. There are unclear or ambiguous statutes relating to administrative rules.

The committee may make rule change recommendations to the adopting agency and may make recommendations to the legislative management for the amendment or repeal of statutes relating to administrative rules. The committee’s failure to review proposed rules prior to publication in the North Dakota Administrative Code does not prevent rules from taking effect. Except for action pursuant to section 28-32-17 or 28-32-18, the recommendations or opinions of the committee do not affect the legality of any rule as determined by the attorney general.

Source:

S.L. 1979, ch. 557, § 2; 1981, ch. 343, § 3; 1995, ch. 517, § 1; 2001, ch. 293, § 29; 2009, ch. 482, § 55.

54-35-02.7. Water topics overview committee — Duties.

The legislative management, during each interim, shall appoint a water topics overview committee in the same manner as the legislative management appoints other interim committees. The committee must meet quarterly and is responsible for legislative overview of water topics and related matters, the Garrison diversion project, and for any necessary discussions with adjacent states on water topics. The committee shall work collaboratively with the state water commission and may meet with the state water commission. The committee shall report on the committee’s project prioritization process, provide updates on allocated program expenditures, and report on the fund balances of projects, grants, and contracts. The legislative management shall designate the chairman of the committee. The committee shall operate according to the statutes and procedure governing the operation of other legislative management interim committees.

Source:

S.L. 1981, ch. 531, § 1; 1983, ch. 82, § 137; 1987, ch. 642, § 1; 2003, ch. 479, § 1; 2009, ch. 482, § 56; 2009, ch. 502, § 1; 2011, ch. 496, § 1; 2013, ch. 20, § 17; 2013, ch. 486, § 1; 2013, ch. 490, § 3; 2015, ch. 54, § 31, eff July 1, 2015; 2015, ch. 384, § 1, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 31 of chapter 54, S.L. 2015 became effective July 1, 2015.

The 2015 amendment of this section by section 1 of chapter 384, S.L. 2015 became effective August 1, 2015.

The 2013 amendment of this section by section 17 of chapter 20, S.L. 2013 became effective July 1, 2013.

The 2013 amendment of this section by section 1 of chapter 486, S.L. 2013 became effective August 1, 2013.

The 2013 amendment of this section by section 3 of chapter 490, S.L. 2013 became effective July 1, 2013.

Note.

Section 54-35-02.7 was amended 2 times by the 2015 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 31 of Chapter 54, Session Laws 2015, Senate Bill 2020; and Section 1 of Chapter 384, Session Laws 2015, House Bill 1061.

Section 54-35-02.7 was amended 3 times by the 2013 Legislative Assembly. Pursuant to section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in section 17 of chapter 20, Session Laws 2013, House Bill 1020; section 1 of chapter 486, Session Laws 2013, Senate Bill 2049; and section 3 of chapter 490, Session Laws 2013, Senate Bill 2233.

One of the 2013 amendments to this section was to remove the expiration date of November 30, 2013.

Section 2 of chapter 502, S.L. 2009 provides: “ EXPIRATION DATE. This Act is effective through November 30, 2013, and after that date is ineffective.”

Cross-References.

Garrison diversion conservancy district, see N.D.C.C. ch. 61-24.

54-35-02.8. Legislative ethics committee.

The legislative management, during each biennium, shall appoint an ethics committee to consider or prepare a legislative code of ethics. The committee must include members of the majority and minority parties of each house. The committee may recommend legislation relating to legislative ethics. The committee shall operate according to the laws and procedures governing the operation of other legislative management interim committees.

Source:

S.L. 1995, ch. 518, § 1; 2009, ch. 482, § 57; 2017, ch. 391, § 1, eff August 1, 2017.

54-35-02.9. Budget section — Appointment — Powers and duties.

  1. To provide for flexibility in the management of state funds between regular sessions of the legislative assembly and to minimize the need for and the expense of a special session, the legislative management, during each biennium, shall appoint a budget section.
  2. The membership of the budget section must include:
    1. The majority leader and the assistant majority leader of the house of representatives;
    2. The majority leader and the assistant majority leader of the senate;
    3. The minority leader and the assistant minority leader of the house of representatives;
    4. The minority leader and the assistant minority leader of the senate;
    5. The speaker of the house of representatives; and
    6. Each member of the legislative assembly appointed to serve on the appropriations committees of the house of representatives and the senate.
  3. The legislative management shall designate the chairman of the budget section. The budget section shall operate according to the statutes and procedures governing the operation of other legislative management interim committees. The budget section shall meet at least quarterly upon the call of the chairman.
  4. The legislative assembly, by law, may provide the authority for the budget section to approve specific actions, projects, and transfers.
    1. When evaluating state agency requests, the budget section shall consider criteria applicable to the request, including whether:
      1. The request is for a specific purpose;
      2. The request is for a specific amount of funds and for a specific time frame, not to continue beyond the end of the current biennium;
      3. The request conforms with legislative intent;
      4. The request is consistent with related statutory provisions;
      5. The request supports state priorities;
      6. The request improves state efficiencies and promotes effective state government;
      7. If the request is for a new program, the program does not extend beyond the current biennium; and
      8. The request addresses a state emergency.
    2. The budget section shall gather documentation that addresses each of the applicable criterion included in subdivision a from the agency requesting budget section approval.

Source:

S.L. 2019, ch. 438, § 15, eff August 1, 2019.

54-35-02.10. Legislative audit and fiscal review committee — Auditing guidelines.

Each biennium, the legislative audit and fiscal review committee, in consultation with the state auditor, shall review updates to government auditing standards and develop guidelines for the contents of state agency audit reports. The legislative audit and fiscal review committee shall consider the following when developing the guidelines:

  1. Applicable auditing standards;
  2. Sound financial practices;
  3. Compliance with laws and legislative intent;
  4. Data analyses; and
  5. The opportunity to improve the efficient and effective operations of state agencies.

Source:

S.L. 2021, ch. 395, § 6, eff July 1, 2021.

54-35-03. State departments, officers, and employees to cooperate.

Each department, board, commission, agency, officer, or employee in the state government shall furnish such information and render such assistance to the legislative council and to the legislative management as the legislative council or the legislative management or its committees may from time to time request.

Source:

S.L. 1945, ch. 289, § 3; R.C. 1943, 1957 Supp., § 54-3503; S.L. 1969, ch. 448, § 3; 2009, ch. 482, § 58.

54-35-04. Meetings — When held — How called — Quorum.

The legislative management or committee appointed by it, may sit at such time and place as it may deem advisable, but the legislative management shall meet at least once in each year and shall meet at any time upon the call of the chairman or a call signed by seven members of the legislative management. At any meeting of the legislative management, seven members constitute a quorum and a majority of such quorum has the authority to act in any matter falling within the jurisdiction of the legislative management.

Source:

S.L. 1945, ch. 289, § 4; R.C. 1943, 1957 Supp., § 54-3504; S.L. 1969, ch. 448, § 4; 2009, ch. 482, § 59.

54-35-05. Governor sending messages to meetings.

The governor may send messages to such meetings of the legislative management as the governor determines advisable.

Source:

S.L. 1945, ch. 289, § 5; R.C. 1943, 1957 Supp., § 54-3505; S.L. 1969, ch. 448, § 5; 2009, ch. 482, § 60.

54-35-06. Officers — Accept funds — Expenditures.

The legislative management shall select a chairman and a vice chairman from its own members and may prescribe its own rules of procedure. The legislative management may appoint a secretary who need not be a member, and shall appoint a director who must be in charge of the legislative council and who must be paid such salary as the legislative management may determine. The director may employ such persons and obtain the assistance of such research agencies as determined necessary. The director may use available funds for salary adjustments to assist with staff recruitment, retention, and recognition of exceptional performance. The legislative management and the legislative council may accept and use any funds made available through the terms of any agreement made with any agency whatsoever for the accomplishment of the purpose of this chapter. Expenditures of funds made available by legislative appropriation must be made in accordance with rules or motions duly approved by the legislative management.

Source:

S.L. 1945, ch. 289, § 6; R.C. 1943, 1957 Supp., § 54-3506; S.L. 1969, ch. 448, § 6; 2009, ch. 482, § 61; 2015, ch. 1, § 8, eff April 27, 2015.

Effective Date.

The 2015 amendment of this section by section 8 of chapter 1, S.L. 2015 became effective April 27, 2015, pursuant to an emergency clause in section 13 of chapter 1, S.L. 2015.

54-35-07. Records — Reports.

The legislative management shall keep minutes of its meetings and a record of all its transactions and shall at the beginning of each biennial legislative session, and may at any other time, make a report of its activities and recommendations to the members of the legislative assembly and to the governor.

Source:

S.L. 1945, ch. 289, § 7; R.C. 1943, 1957 Supp., § 54-3507; S.L. 1969, ch. 448, § 7; 2009, ch. 482, § 62.

54-35-08. Recommended legislation may be required in advance.

The legislative management may require that any recommendation for legislation, which is to be presented by any department, board, commission, agency, officer, official, or employee of the state desiring the consideration of the legislative management, be presented to it at least sixty days in advance of any regular legislative session.

Source:

S.L. 1945, ch. 289, § 8; R.C. 1943, 1957 Supp., § 54-3508; S.L. 1969, ch. 448, § 8; 2009, ch. 482, § 63.

54-35-09. Recommendations — When made public — Distribution.

The recommendations of the legislative management must be completed and made public prior to any session of the legislative assembly at which such recommendations are to be submitted; and a copy of the recommendations must be distributed to each member-elect of the legislative assembly, to each elective state officer, and to the state law library.

Source:

S.L. 1945, ch. 289, § 9; R.C. 1943, 1957 Supp., § 54-3509; S.L. 1969, ch. 448, § 9; 2009, ch. 482, § 64.

54-35-10. Compensation of members and leadership.

  1. The members of the legislative management and the members of any committee of the legislative management are entitled to be compensated for the time spent in attendance at sessions of the legislative management and of its committees at the rate of one hundred eighty-nine dollars through June 30, 2022, and one hundred ninety-three dollars thereafter per day and must also be paid for expenses incurred in attending said meetings and in the performance of their official duties in the amounts provided by law for other state officers.
  2. In addition to the compensation provided in subsection 1, the chairman of the legislative management is entitled to receive an additional five dollars for each day spent in attendance at sessions of the legislative management and of its committees, and the chairman of each of the legislative management’s committees is entitled to receive five dollars for each day spent in attendance at sessions of the legislative management or of the committee which the person chairs.

Source:

S.L. 1945, ch. 289, § 10; 1949, ch. 323, § 1; R.C. 1943, 1957 Supp., § 54-3510; S.L. 1967, ch. 391, § 1; 1969, ch. 448, § 10; 1969, ch. 449, § 1; 1971, ch. 487, § 4; 1975, ch. 481, § 1; 1979, ch. 536, § 2; 1981, ch. 520, § 2; 1985, ch. 558, § 3; 1999, ch. 465, § 1; 2001, ch. 490, § 1; 2007, ch. 453, §§ 5, 6; 2007, ch. 1, § 11; 2009, ch. 386, §§ 8, 9; 2009, ch. 482, § 65; 2011, ch. 1, §§ 10, 11; 2013, ch. 32, §§ 8, 9; 2015, ch. 1, § 9, eff July 1, 2015; 2015, ch. 1, § 10, eff July 1, 2016; 2019, ch. 1, § 9, eff July 1, 2019; 2019, ch. 1, § 10, eff July 1, 2020; 2021, ch. 29, § 7, eff July 1, 2021.

Effective Date.

The 2015 amendment of this section by section 9 of chapter 1, S.L. 2015 became effective July 1, 2015, pursuant to an emergency clause in section 13 of chapter 1, S.L. 2015.

The 2015 amendment of this section by section 10 of chapter 1, S.L. 2015 becomes effective July 1, 2016, pursuant to an emergency clause in section 13 of chapter 1, S.L. 2015.

The 2013 amendment of this section by section 9 of chapter 32, S.L. 2013 becomes effective July 1, 2014.

The 2013 amendment of this section by section 8 of chapter 32, S.L. 2013 became effective July 1, 2013.

Note.

Section 54-35-10 was amended 2 times by the 2015 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 10 of Chapter 1, Session Laws 2015, House Bill 1001; and Section 9 of Chapter 1, Session Laws 2015, House Bill 1001.

Section 54-35-10 was amended 2 times by the 2013 Legislative Assembly. Pursuant to section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in section 8 of chapter 32, Session Laws 2013, Senate Bill 2001; and section 9 of chapter 32, Session Laws 2013, Senate Bill 2001.

54-35-11. Preparation for and assistance to legislative assembly — Custody of equipment — Approval of delayed vouchers.

The legislative council, on behalf of the legislative assembly, may make all necessary arrangements before each legislative session for the procurement of necessary supplies, equipment, services other than the employment of legislative employees, building space, or any other preparations or arrangements the legislative council determines necessary or desirable to be made before the commencement of each legislative session in order to facilitate the proper convening and operation of the legislative assembly. The legislative council shall act as the custodial agency to ensure the proper storage and safekeeping of legislative supplies and equipment during the interim periods between legislative sessions, and may approve vouchers on behalf of the legislative assembly for the payment from legislative appropriations of delayed billings or other billings for legislative expenses during periods when the legislative assembly is not in session. The legislative council shall carry out such duties or projects and provide such service and assistance to the legislative assembly or its committees, the legislative management or its committees, and members of the legislative assembly as may be requested by concurrent resolution of the legislative assembly or determined necessary or desirable in assisting the legislative assembly or the legislative management in meeting its responsibilities and carrying out its duties during the legislative session or the interim between sessions.

Source:

S.L. 1965, ch. 356, § 1; 1969, ch. 448, § 11; 2009, ch. 482, § 66.

54-35-12. Legislative budget analyst and auditor.

The legislative management shall appoint a legislative budget analyst and auditor. A person is not eligible for the appointment unless the person holds a baccalaureate degree from a recognized institution of higher learning, is a certified public accountant, or has had five years’ experience in government accounting. The appointment of the legislative auditor must be based upon qualifications of eligible persons without reference to partisan politics. The salary of the legislative budget analyst and auditor must be determined by the legislative council and it may employ additional persons as necessary to carry out sections 54-35-12 through 54-35-14.

Source:

S.L. 1965, ch. 357, § 1; 1969, ch. 448, § 12; 2009, ch. 482, § 67.

54-35-13. Personnel — Compensation — Expenses.

The salaries, travel, and other expenses of the legislative budget analyst and auditor and other personnel within the legislative budget analyst and auditor’s office must be submitted, approved, and paid in the same manner as other employees of the legislative council.

Source:

S.L. 1965, ch. 357, § 2; 1969, ch. 448, § 13.

54-35-14. Powers and duties of legislative budget analyst and auditor.

The legislative budget analyst and auditor shall attend all budget hearings carried on by the executive budget officer and shall have access to all budget material submitted to, and all studies carried on by, the executive budget officer. The legislative budget analyst and auditor shall analyze the executive budget when prepared, with special reference to sources of revenue, trends in governmental spending and finance, policies followed and inconsistencies in such policies, and proposed new or substantially expanded or reduced areas of spending and prepare a report of that analysis for the legislative assembly. The legislative budget analyst and auditor shall report thereon to the appropriations committees of the senate and house of representatives in joint meeting and shall perform such services for such committees during the legislative session as they shall reasonably request. The legislative audit and fiscal review committee may call upon the legislative budget analyst and auditor for such assistance as it may deem necessary in the analysis of any audit submitted to such committee. Each department, institution, and agency shall furnish such records and information to the legislative budget analyst and auditor as requested by the legislative budget analyst and auditor in the performance of official duties.

Source:

S.L. 1965, ch. 357, § 3; 1969, ch. 448, § 14.

54-35-15. Information technology program — Staff — Powers and duties.

  1. The legislative council shall provide information technology research and staff services to the legislative branch. The services must be provided in accordance with the existing statutory authority of the legislative council and within the framework of its other staff services.
  2. The legislative council shall provide information technology services, may hire such staff as are necessary, and set compensation for any additional staff within the limits of legislative appropriations.
  3. The legislative council shall structure the provision of information technology services and assistance to the legislative assembly and shall receive such cooperation and assistance from other state agencies as the council reasonably may request.

Source:

S.L. 1981, ch. 532, § 1; 1997, ch. 457, § 5; 1999, ch. 483, § 21; 2009, ch. 482, § 68.

54-35-15.1. Information technology committee — Appointment.

The legislative management, during each biennium, shall appoint an information technology committee in the same manner as the legislative management appoints other interim committees. The legislative management shall appoint six members of the house of representatives and five members of the senate to the committee. The chief information officer of the state is an ex officio, nonvoting member of the committee. The legislative management shall designate the chairman of the committee. The committee shall operate according to the statutes and procedure governing the operation of other legislative management interim committees.

Source:

S.L. 1999, ch. 466, § 1; 2003, ch. 503, § 1; 2009, ch. 482, § 69.

54-35-15.2. Information technology committee — Powers and duties.

The information technology committee has continuing existence and may meet and conduct its business during the legislative session and in the interim between sessions. The committee shall:

  1. Meet at least once each calendar quarter.
  2. Receive a report from the chief information officer of the state at each meeting.
  3. Review the business plan of the information technology department.
  4. Review macro-level issues relating to information technology.
  5. Review the activities of the information technology department.
  6. Review statewide information technology standards.
  7. Review the statewide information technology plan.
  8. Review information technology efficiency and security.
  9. Review established or proposed information technology programs and information technology acquisition by the executive and judicial branches.
  10. Except as provided in subsection 11, receive and review information, including a project startup report summarizing the project description, project objectives, business need or problem, cost-benefit analysis, and project risks and a project closeout report summarizing the project objectives achieved, project budget and schedule variances, and lessons learned, from the information technology department and the affected agency regarding any major information technology project of an executive branch agency. For the purposes of this subsection, a major project is a project with a total cost of five hundred thousand dollars or more.
    1. Receive and review information, including a project startup report summarizing the project description, project objectives, business need or problem, cost-benefit analysis, and project risks and a project closeout report summarizing the project objectives achieved, project budget and schedule variances, and lessons learned, from the state board of higher education regarding any major project of the state board of higher education or any institution under the control of the state board of higher education if the project:
      1. Significantly impacts the statewide wide area network, including the campus access routers;
      2. Impacts the statewide library system; or
      3. Is an administrative project. An administrative project is a project that directly collects, aggregates, modifies, stores, or reports institutional student, financial, or human resources records or data and is provided primarily for administrative purposes.
    2. For the purposes of this subsection, a major project is a project with a total cost of five hundred thousand dollars or more.
  11. Receive and review information from the information technology department and the affected agency regarding any information technology project of an executive branch agency with a total cost of between one hundred thousand and five hundred thousand dollars as determined necessary by the information technology department.
  12. Receive a report from the chief information officer regarding the recommendations of the state information technology advisory committee relating to the prioritization of proposed major information technology projects and other information technology issues.
  13. Receive and review information, including a project startup report summarizing the project description, project objectives, business need or problem, cost-benefit analysis, and project risks and a project closeout report summarizing the project objectives achieved, project budget and schedule variances, and lessons learned, from the affected legislative or judicial branch agency regarding any information technology project of the legislative or judicial branch with a total cost of five hundred thousand dollars or more.
  14. Receive information from the state board of higher education regarding higher education information technology planning, services, and major projects.

Source:

S.L. 1999, ch. 466, § 2; 2001, ch. 500, § 1; 2007, ch. 490, § 1; 2007, ch. 491, § 2; 2007, ch. 21, § 10; 2007, ch. 154, § 3; 2013, ch. 412, § 1; 2015, ch. 385, § 1, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 385, S.L. 2015 became effective August 1, 2015.

The 2013 amendment of this section by section 1 of chapter 412, S.L. 2013 became effective August 1, 2013.

54-35-15.3. Information technology project quality assurance — Information technology committee review — Suspension of funds.

The information technology committee may review any information technology project or information technology plan. If the committee determines that the project or plan is at risk of failing to achieve its intended results, the committee may recommend to the office of management and budget the suspension of the expenditure of moneys appropriated for a project or plan. The office of management and budget may suspend the expenditure authority if the office of management and budget agrees with the recommendation of the committee.

Source:

S.L. 1999, ch. 466, § 3.

54-35-15.4. Information technology committee — Information technology reviews.

The information technology committee may request the state auditor to conduct an information technology compliance review. The review may consist of an audit of an agency’s information technology management, information technology planning, compliance with information technology plans, and compliance with information technology standards and policies or an audit of statewide compliance with specific information technology standards and policies.

Source:

S.L. 2003 Sp., ch. 665, § 15.

54-35-16. Authority to determine if legislative assembly meets.

The legislative management may issue a call for the legislative assembly to convene after it has adjourned under subsection 2 of section 54-03-02. The length of a legislative session called under this section may not exceed the number of natural days available under the constitution which have not been used by that legislative assembly. The legislative management may exercise this authority, and the legislative assembly shall meet, regardless of whether the motion to close the regular session of the legislative assembly was to recess to a time certain, adjourn to a time certain, or adjourn sine die.

Source:

S.L. 1995, ch. 494, § 3; 2009, ch. 482, § 70.

54-35-17. Retention of legal counsel.

When the legislative assembly is in session, either house by resolution may authorize, or both houses by concurrent resolution may direct, the legislative council to appoint or retain legal counsel to appear in, commence, prosecute, defend, or intervene in any action, suit, matter, cause, or proceeding in any court or agency when determined necessary or advisable to protect the official interests of the legislative branch. When the legislative assembly is not in session, the legislative management, by a majority vote, may authorize the legislative council to appoint or retain legal counsel to appear in, commence, prosecute, defend, or intervene in any action, suit, matter, cause, or proceeding in any court or agency when determined necessary or advisable to protect the official interests of the legislative branch. Section 54-12-08 does not apply to a person appointed or retained under this section.

Source:

S.L. 1995, ch. 1, § 3; 1995, ch. 519, § 1; 1997, ch. 456, § 2; 2009, ch. 482, § 71.

54-35-18. Energy development and transmission committee.

The legislative management, during each biennium, shall appoint an energy development and transmission committee in the same manner as the legislative management appoints other interim committees. The legislative management shall appoint six members of the house of representatives, four of whom must be from the majority political party and two of whom must be from the minority political party, and six members of the senate, four of whom must be from the majority political party and two of whom must be from the minority political party. The chairman of the legislative management shall designate the chairman of the committee. The committee shall operate according to the statutes and procedure governing the operation of other legislative management interim committees. The committee shall study the impact of a comprehensive energy policy for the state and the development of each facet of the energy industry, from the obtaining of the raw natural resource to the sale of the final product in this state, other states, and other countries. The study may include the review of and recommendations relating to policy affecting extraction, generation, processing, transmission, transportation, marketing, distribution, and use of energy.

Source:

S.L. 1997, ch. 458, § 1; 2003, ch. 36, § 19; 2007, ch. 468, § 1; 2007, ch. 204, § 4; 2009, ch. 482, § 72; 2011, ch. 411, § 1.

54-35-18.1. Electric industry competition committee — Composition.

Expired under S.L. 2003, ch. 36, § 20.

54-35-18.2. Electric industry competition committee — Study areas.

Expired under S.L. 2003, ch. 36, § 21.

54-35-18.3. Electric industry competition committee — Recommendations. [Repealed]

Expired pursuant to S.L. 1999, ch. 467, § 3.

54-35-19. Use of fees — Appropriation.

All fees received by the legislative council and the legislative assembly for providing legislative information services and copies of legislative documents must be deposited in the legislative services fund in the state treasury. The legislative services fund is a revolving fund with an authorized ceiling of two hundred fifty thousand dollars. All moneys transferred into the fund, moneys deposited in the fund, and earnings on moneys in the fund are appropriated to the legislative council for use in improving and enhancing legislative information services and the preparation of legislative documents. The fund is not subject to section 54-44.1-11.

Source:

S.L. 1997, ch. 30, § 3.

54-35-20. National conference of insurance legislators — Appointment of representatives.

The chairman of the legislative management, in consultation with the insurance commissioner, shall appoint two members of the house of representatives and two members of the senate to represent the state at functions of the national conference of insurance legislators. Each member shall serve a two-year term. If a member is unable to complete the member’s term, the chairman of the legislative management shall appoint another member to complete the term. The insurance commissioner shall pay the necessary expenses of the legislative members for attending functions of the national conference of insurance legislators.

Source:

S.L. 1999, ch. 32, § 7; 2009, ch. 482, § 97.

54-35-21. No Child Left Behind Act of 2001 — Interim committee — Appointment — Duties. [Repealed]

Repealed by S.L. 2007, ch. 162, § 18.

54-35-22. Workers’ compensation review committee.

  1. During each interim, a legislative management’s interim workers’ compensation review committee must be appointed as follows: two members of the senate appointed by the majority leader of the senate of the legislative assembly; one member of the senate appointed by the minority leader of the senate of the legislative assembly; two members of the house of representatives appointed by the majority leader of the house of representatives; and one member of the house of representatives appointed by the minority leader of the house of representatives. The chairman of the legislative management shall designate the chairman of the committee. The committee shall operate according to the laws and procedures governing the operation of other legislative management interim committees. The committee may recommend legislation relating to workers’ compensation. The committee shall meet once each calendar quarter or less often if the committee chairman determines a meeting that quarter is not necessary because there are no claims to review.
  2. The committee shall review workers’ compensation claims that are brought to the committee by injured workers for the purpose of determining whether changes should be made to the laws relating to workers’ compensation. A claim may not be reviewed by the committee unless workforce safety and insurance has issued a final determination and either the injured worker has exhausted the administrative and judicial appeals process or the period for appeal has expired. In order for the committee to review a claim, the injured worker must first sign a release of information for constituent authorization to allow the committee and legislative council to review the injured worker’s workforce safety and insurance records and to allow the committee members and workforce safety and insurance representatives to discuss the records in an interim committee hearing. Notwithstanding any open meeting requirements, except as otherwise provided under this section, the workforce safety and insurance records of an injured worker whose case is reviewed by the committee are confidential. However, pursuant to the constituent’s authorization, information contained in the records may be discussed by the committee members and workforce safety and insurance representatives in an interim committee hearing.
  3. The committee shall accept testimony of an injured worker and of a representative designated by the injured worker. After the committee has received the testimony of the injured worker and the injured worker’s representative, the committee shall request that workforce safety and insurance provide testimony.

Source:

S.L. 2005, ch. 499. § 1; 2007, ch. 469, § 1; 2009, ch. 482, § 73.

Note.

The 2007 amendment to this section removed the expiration date.

Section 2 of chapter 499 provides: “ EXPIRATION DATE. This Act is effective through July 31, 2007 and after that date is ineffective.”

54-35-23. Committee on tribal and state relations — Membership — Duties.

  1. The committee on tribal and state relations is composed of seven members as follows:
    1. A chairman designated by the chairman of the legislative management;
    2. Three members of the house of representatives, two of whom must be selected by the leader representing the majority faction of the house of representatives and one of whom must be selected by the leader representing the minority faction of the house of representatives; and
    3. Three members of the senate, two of whom must be selected by the leader representing the majority faction of the senate and one of whom must be selected by the leader representing the minority faction of the senate.
  2. The committee shall meet at such times and places as determined by the chairman. The legislative council shall provide staffing for the committee.
  3. The committee shall conduct joint meetings with the North Dakota tribal governments’ task force to study tribal-state issues, including government-to-government relations, human services, education, corrections, and issues related to the promotion of economic development. After the joint meetings have concluded, the committee shall meet to prepare a report on its findings and recommendations, together with any legislation required to implement those recommendations, to the legislative management.
  4. The members of the committee are entitled to compensation from the legislative council for attendance at committee meetings at the rate provided for members of the legislative assembly for attendance at interim committee meetings and are entitled to reimbursement for expenses incurred in attending the meetings in the amounts provided by law for other state officers.
    1. The North Dakota tribal governments’ task force is composed of six members as follows:
      1. The executive director of the Indian affairs commission, or the executive director’s designee;
      2. The chairman of the Standing Rock Sioux Tribe, or the chairman’s designee;
      3. The chairman of the Spirit Lake Tribe, or the chairman’s designee;
      4. The chairman of the Three Affiliated Tribes of the Fort Berthold Reservation, or the chairman’s designee;
      5. The chairman of the Turtle Mountain Band of Chippewa Indians, or the chairman’s designee; and
      6. The chairman of the Sisseton-Wahpeton Oyate of the Lake Traverse Reservation, or the chairman’s designee.
    2. If the executive director of the Indian affairs commission or any of the tribal chairmen appoint a designee to serve on the task force, only one individual may serve as that designee during the biennium. A substitute designee may be appointed by the executive director of the Indian affairs commission or a tribal chairman in the event of the death, incapacity, resignation, or refusal to serve of the initial designee.

Source:

S.L. 2005, ch. 500, § 1; 2007, ch. 470, § 1; 2009, ch. 482, § 74; 2009, ch. 503, § 1; 2011, ch. 412, § 1; 2013, ch. 413, § 1; 2017, ch. 14, § 31, eff July 1, 2017.

Effective Date.

The 2013 amendment of this section by section 1 of chapter 413, S.L. 2013 became effective August 1, 2013.

Note.

Pursuant to 2019 S.L. ch. 506, §§ 3 and 6, section 54-35-23 is suspended from August 1, 2019 through July 31, 2021. [suspension period ended]

Pursuant to 2017 S.L. ch. 14, §§ 31 and 38, section 54-35-23 is suspended from July 1, 2017 through July 31, 2019.

The 2013 amendment of this section removed the expiration date of July 31, 2013.

The 2011 amendment of this section extended the expiration date to July 31, 2013.

The 2007 amendment of this section extended the expiration date to July 30, 2009.

Section 2 of chapter 500 S.L. 2005 provides: “ EXPIRATION DATE. This Act is effective through July 31, 2007 and after that date is ineffective.”

54-35-25. Legislative promotional expenses.

The legislative management shall establish a policy regarding promotional expenses made on behalf of the legislative assembly. Any expenditure made pursuant to this section must be reported to the legislative management. An expenditure under this section may not be construed as a gift for purposes of section 18 of article X of the Constitution of North Dakota.

Source:

S.L. 2013, ch. 32, § 10.

Effective Date.

This section is effective July 1, 2013.

54-35-26. Legislative interim committee review of economic development tax incentives.

The legislative assembly enacts economic development tax incentives with the intent to encourage businesses to locate, grow, and remain in the state; to enhance employment opportunities for citizens; and to foster the most advantageous direction, diversity, and growth of the state economy. The legislative assembly requires systematic, detailed analysis of enacted economic development tax incentives to assure that incentives are, and will continue, serving the intended purposes in a cost-effective and equitable manner consistent with the intent of the legislative assembly. To serve this intent and requirement:

  1. During each interim, the legislative management shall assign to a legislative management interim committee study responsibility that includes completing the analysis of economic development tax incentives as provided in this section and reporting its findings and any associated recommended legislation to the legislative management.
  2. The legislative management interim committee assigned the study responsibility under this section shall analyze each incentive, applying considerations relevant to the perceived goals of the incentive, including any or all of the following:
    1. The extent of achievement of the goals of the incentive and whether unintended consequences have developed in its application.
    2. Whether the design and application of the incentive can be improved.
    3. The extent of complementary or duplicative effect of other incentives or governmental programs.
    4. Whether the incentive has a positive influence on business behavior or rewards business behavior that is likely to have occurred without the incentive.
    5. The effect of the incentive on the state economy, including the extent of primary sector operation of the recipient and any competitive disadvantage imposed or benefit conferred on other state businesses, any benefit or burden created for local government, and the extent of the incentive’s benefit that flows to out-of-state concerns.
    6. The employment opportunities generated by the incentive and the extent those represent career opportunities.
    7. Whether the incentive is the most effective use of state resources to achieve desired goals.
    8. If the committee’s analysis of the incentive is constrained by lack of data, whether statutory or administrative changes should be made to improve collection and availability of data.
  3. The legislative management interim committee assigned the study responsibility under this section may examine economic development tax incentives, shall complete analysis of the incentives it designates for analysis during the interim, and shall approve a plan to provide that each of the economic development tax incentives listed in this subsection is subject to a complete analysis within each six-year period. The interim committee may include in its recommendations any amendments to this section, including amendments to add or remove incentives from the list of incentives subject to analysis under this subsection. Analysis must be completed for economic development tax incentives, including each of the following:
    1. Renaissance zone credits and exemptions.
    2. Research expense credit.
    3. Agricultural commodity processing facility investment credit.
    4. Biodiesel fuel production facility construction or retrofit credit, biodiesel fuel blending credit, and biodiesel fuel equipment credit.
    5. Seed capital investment credit.
    6. Internship program credit.
    7. Angel fund investment credit.
    8. Workforce recruitment credit.
    9. Soybean or canola crushing facility construction or retrofit credit.
    10. Manufacturing automation equipment credit.
    11. New or expanding business exemption.
    12. Manufacturing and recycling equipment sales tax exemption.
    13. Coal severance and conversion tax exemptions.
    14. Oil and gas gross production and oil extraction tax exemptions.
    15. Fuel tax refunds for certain users.
    16. New jobs credit from income tax withholding.
    17. Development or renewal area incentives.
    18. Sales and use tax exemption for materials used to construct a fertilizer or chemical processing facility.
    19. Sales and use tax exemption for materials used in compressing, gathering, collecting, storing, transporting, or injecting carbon dioxide for use in enhanced recovery of oil or natural gas.
    20. Sales and use tax exemption for enterprise information technology equipment and computer software used in a qualified data center.
  4. By October first of each odd-numbered year, the interim committee assigned the study responsibility under this section shall determine and approve:
    1. The economic development tax incentives under subsection 3 which will be designated for analysis during that interim and a plan to provide for analysis of the remaining economic development tax incentives under subsection 3 within the six-year period.
    2. The perceived goals of the legislative assembly in creating or altering each incentive designated for analysis, for use as a baseline for committee analysis of the incentive.
    3. The data and testimony that will be required to conduct an effective analysis of each incentive designated for analysis.
  5. The department of commerce, tax commissioner, economic development foundation, and any other state agency or instrumentality shall provide data and analysis as requested by the interim committee conducting the analysis under this section.
    1. If data is not available, the entity requested to provide the information shall advise the committee how the data could be obtained and the estimated cost of obtaining the data.
    2. If data is available but cannot be shared with the committee, the entity requested to provide the information shall explain the reason and whether there are options that could be used to obtain the data or an adequate substitute for the data.
  6. The interim committee conducting the analysis under this section shall report its findings and recommendations together with any legislation required to implement those recommendations to the legislative management.

Source:

S.L. 2015, ch. 386, § 1, eff August 1, 2015; 2017, ch. 390, § 1, eff for taxable years beginning after December 31, 2016; 2017, ch. 389, § 1. eff for taxable years beginning after December 31, 2016; 2017, ch. 277, § 5, eff August 1, 2017.

Effective Date.

This section became effective August 1, 2015.

Note.

Section 54-35-26 was amended 3 times by the 2017 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 1 of Chapter 389, Session Laws 2017, House Bill 105; Section 1 of Chapter 390, Session Laws 2017, House Bill 1149; and Section 5 of Chapter 277, Session Laws 2017, Senate Bill 2166.

54-35-27. Legislative interim committee review of state agency fees.

  1. The legislative management shall assign to one or more interim committees a study of selected state agency fees as provided in this section.
    1. By July 1, 2022, each state agency that is authorized to impose forty fees or fewer shall submit a report to the office of management and budget including:
      1. The amount of each fee;
      2. When the fee was implemented;
      3. Why the fee is set at the specific dollar amount;
      4. Where the fee is deposited; and
      5. Whether the fee is critical for the budget of the agency.
    2. By July 1, 2024, each state agency that is authorized to impose more than forty fees shall submit a report to the legislative management including:
      1. The amount of each fee;
      2. When the fee was implemented;
      3. Why the fee is set at the specific dollar amount;
      4. Where the fee is deposited; and
      5. Whether the fee is critical for the budget of the agency.
    3. By September first in the year the reports are received, the office of management and budget shall compile all of the reports into a single report and provide the report to the legislative management.
  2. In addition to the report required under subsection 1, each state agency shall provide an analysis of each fee. The analysis must include:
    1. A comparison of revenue generated by the fee to the cost incurred to provide the services associated with the fee;
    2. The history of the fee, including when it was created and any subsequent changes;
    3. The appropriateness of the fee amount and the affordability of the fee to the public; and
    4. The appropriateness of using other government revenues to pay a portion of services associated with the fee and the effect of the use of other revenues.
  3. An interim committee assigned a fee study shall:
    1. Make a recommendation regarding the fee which identifies whether the fee should remain unchanged or be eliminated, increased, decreased, or otherwise modified and the rationale for the recommendation.
    2. Report its findings and recommendations to the legislative management. As part of its recommendations, the committee shall identify potential state agency fees to be reviewed during the subsequent interim.
  4. Any state agency authorized by the legislative assembly to impose a fee shall provide data, analysis, and other information as requested by the interim committee conducting a study under this section.
  5. Fees to be examined under this section include those deposited in the general fund or the agency operating budget.
  6. If a state agency is unable to meet the deadline imposed under subsection 1, the state agency may appeal to the legislative management for an extension.
  7. Notwithstanding any other provision of law, state agencies may not establish any new fees under chapter 28-32 unless the fee was approved by the legislative assembly, the budget section, or the emergency commission.
  8. By July first of each even-numbered year, each agency that has fees shall provide a report to the legislative management indicating whether any fees were added, deleted, or changed during the course of the biennium.

Source:

S.L. 2021, ch. 408, § 1, eff April 22, 2021.

CHAPTER 54-35.1 Legislative Audit and Fiscal Review Committee [Repealed]

[Repealed by S.L. 1973, ch. 427, § 3]

CHAPTER 54-35.2 State Advisory Commission on Intergovernmental Relations

54-35.2-01. Task force on intergovernmental issues — Membership — Meetings.

  1. The legislative management may appoint task forces on intergovernmental issues assigned by the legislative management based on a study directive of a legislative bill or resolution and may appoint to each task force representatives of political subdivisions, the governor or the governor’s designee, and members of the legislative assembly. The majority of the members of any task force appointed must be members of the legislative assembly. Task force appointees as representatives of political subdivisions may be selected from nominees of the North Dakota league of cities, association of counties, township officers association, recreation and park association, and school boards association.
  2. The legislative management shall designate the chairman and vice chairman and the study directive of each task force.
  3. Each task force shall meet at the call of its chairman.

Source:

S.L. 1989, ch. 654, § 1; 2001, ch. 491, § 1; 2009, ch. 482, § 75; 2015, ch. 420, § 1, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 420, S.L. 2015 became effective August 1, 2015.

54-35.2-02. Functions and duties.

Each task force on intergovernmental issues shall serve as a forum for the discussion of resolution of issues relating to its study directive.

Source:

S.L. 1989, ch. 654, § 2; 2009, ch. 482, § 76; 2015, ch. 420, § 2, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 2 of chapter 420, S.L. 2015 became effective August 1, 2015.

54-35.2-02.1. Local government efficiency planning grants. [Repealed]

Repealed by S.L. 1999, ch. 468, § 1.

54-35.2-03. Staff services.

Each task force on intergovernmental issues may request provision of appropriate staff services from the legislative council.

Source:

S.L. 1989, ch. 654, § 3; 2015, ch. 420, § 3, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 3 of chapter 420, S.L. 2015 became effective August 1, 2015.

54-35.2-04. Compensation and expenses.

A member of the task force on intergovernmental issues who is a member of the legislative assembly is entitled to receive, from funds available to the task force, compensation per day for each day spent in attendance at task force meetings in the same amount as provided for members of interim committees of the legislative management and reimbursement for travel and other necessary expenses incurred in the performance of official duties in the amounts provided by law for other state officers. Members of the task force on intergovernmental issues who represent political subdivisions may be reimbursed for attendance at task force meetings by the organization they represent.

Source:

S.L. 1989, ch. 654, § 4; 1997, ch. 432, § 28; 2009, ch. 482, § 77; 2015, ch. 420, § 4, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 4 of chapter 420, S.L. 2015 became effective August 1, 2015.

54-35.2-05. Reports.

Each task force on intergovernmental issues shall report its findings and recommendations and any proposed legislation necessary to implement the recommendations to the legislative management by the deadline provided by the legislative management when the task force was appointed. A majority of the members of each task force and a majority of the legislative assembly members of each task force must vote in favor of any proposed legislation before the proposed legislation may be recommended to the legislative management.

Source:

S.L. 1989, ch. 654, § 5; 2009, ch. 482, § 78; 2015, ch. 420, § 5, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 5 of chapter 420, S.L. 2015 became effective August 1, 2015.

CHAPTER 54-36 Indian Affairs Commission

54-36-01. Commission — Members — Officers — Expenses of members.

The North Dakota Indian affairs commission consists of the governor, three members appointed by the governor from the state at large, two of whom must be of Indian descent, must be enrolled members of a tribe, and must be current voting residents of the state, and the chairperson, or the chairperson’s designee, of the Standing Rock Sioux Tribe; the Spirit Lake Tribe; the Three Affiliated Tribes of the Fort Berthold Reservation; the Turtle Mountain Band of Chippewa Indians; and the Sisseton-Wahpeton Oyate of the Lake Traverse Reservation. The governor is the chairperson of the commission. The commission shall meet quarterly or as otherwise agreed. Members of the commission or the chairperson’s designee are entitled to receive mileage and expenses for attending each meeting as are allowed other state officers.

Source:

S.L. 1949, ch. 324, § 1; 1955, ch. 314, § 1; R.C. 1943, 1957 Supp., § 54-3601; S.L. 1959, ch. 370, § 1; 1961, ch. 332, § 23; 1967, ch. 74, § 17; 1969, ch. 450, § 1; 1971, ch. 507, § 1; 1975, ch. 483, § 1; 1981, ch. 528, § 19; 1987, ch. 643, § 1; 1991, ch. 95, § 39; 1991, ch. 602, § 2; 2007, ch. 476, § 1; 2009, ch. 505, § 1.

Cross-References.

Mileage and travel expenses of state officers, see N.D.C.C. §§ 44-08-03 to 44-08-05.1, 54-06-09.

Law Reviews.

Indian Law Symposium, 48 N.D. L. Rev. 533.

Indian Law Symposium, 51 N.D. L. Rev. 11 (1974).

Tribal Administration of Natural Resource Development, Russel L. Barsh and J. Youngblood Henderson, 52 N.D. L. Rev. 307 (1976).

54-36-02. Employees — Duties — Compensation.

The governor, after consultation with the members of the commission, shall appoint an executive director of the Indian affairs commission who must serve at the pleasure of the governor. The governor may employ such other personnel, as the governor deems necessary, and shall prescribe duties and fix compensation.

Source:

S.L. 1949, ch. 324, § 2; R.C. 1943, 1957 Supp., § 54-3602; 1991, ch. 602, § 3.

54-36-03. Powers and duties — Continuing appropriation.

The Indian affairs commission may assist and mobilize the support of state and federal agencies in assisting Indian individuals and groups in North Dakota, especially the five tribal councils, as the Indian individuals and tribal councils seek to develop their own goals, project plans for achieving those goals, and implement those plans. The commission may accept gifts, grants, donations, and services from any source which are appropriated on a continuing basis for the purposes of the commission. The commission’s duties are to:

  1. Investigate any phase of Indian affairs and to assemble and make available the facts needed by tribal, state, and federal agencies to work effectively together.
  2. Assist tribal, state, and federal agencies in developing programs whereby Indian citizens may achieve more adequate standards of living.
  3. Assist tribal groups in developing increasingly effective institutions of self-government.
  4. Work for greater understanding and improved relationships between Indians and non-Indians.
  5. Seek increased participation by Indian citizens in local and state affairs.
  6. Confer with and coordinate officials and agencies of other governmental units and congressional committees with regard to Indian needs and goals.
  7. Encourage and propose agreements and accords between federal, state, and local agencies and the several tribal governments, and, pursuant to chapter 54-40.2, to assist in monitoring and negotiating agreements and accords when requested by an affected tribe.

Source:

S.L. 1949, ch. 324, § 3; R.C. 1943, 1957 Supp., § 54-3603; S.L. 1971, ch. 507, § 2; 1991, ch. 602, § 4; 2009, ch. 505, § 2.

54-36-04. Public officers to cooperate.

All public officers, both state and local, shall upon request furnish the Indian affairs commission such available information as it may require for its purposes.

Source:

S.L. 1949, ch. 324, § 4; R.C. 1943, 1957 Supp., § 54-3604.

54-36-05. Meetings — Quorum.

At any meeting of the commission a majority of the members constitutes a quorum and a majority of the quorum may act in any matter falling within the jurisdiction of the commission.

Source:

S.L. 1949, ch. 324, § 5; R.C. 1943, 1957 Supp., § 54-3605; S.L. 1991, ch. 602, § 5.

54-36-06. Report and recommendations.

The Indian affairs commission may submit its recommendations to the legislative assembly in the form of proposed legislation or resolutions and may submit a report to the governor and the secretary of state in accordance with section 54-06-04.

Source:

S.L. 1949, ch. 324, § 6; R.C. 1943, 1957 Supp., § 54-3606; S.L. 1963, ch. 346, § 64; 1973, ch. 403, § 49; 1975, ch. 466, § 52; 1995, ch. 350, § 48.

54-36-07. Appropriation. [Repealed]

Omitted.

54-36-08. Indian affairs commission printing fund for publications — Appropriation.

There is created a revolving fund known as the Indian affairs commission printing fund. All moneys collected by the commission from fees from persons purchasing publications and informal and educational materials produced or distributed by the commission and moneys received from any person for producing and distributing publications and informational and educational materials must be deposited into the Indian affairs commission printing fund. Money in the Indian affairs commission printing fund and earnings on the money in the fund are appropriated on a continuing basis to the commission to defray expenses incurred by the commission in producing and distributing publications and informational and educational materials. This fund is not subject to section 54-44.1-11. If on the first day of July in any year the amount of money in the Indian affairs commission printing fund is more than twenty-five thousand dollars, the amount in excess of twenty-five thousand dollars must be transferred to the general fund.

Source:

S.L. 2003, ch. 5, § 2.

54-36-09. Publications — Fees.

The commission may produce and distribute publications and informational and educational materials and may charge a fee for the publication. The fee must be established at an amount equal to the postage and printing costs of the publication.

Source:

S.L. 2003, ch. 5, § 2.

54-36-10. North Dakota American Indian business development office.

A North Dakota American Indian business development office is established within the commission to assist North Dakota American Indian tribal and individual economic development representatives, businesses, and entrepreneurs with access to state and federal programs designed to assist these business interests. The commission shall cooperate with the department of commerce in the administration of the office. The office shall provide services to assist in the formation of partnerships between American Indian and non-American Indian businesses. The commission may contract with a third party for the provision of services for the office. If the commission contracts with a third party under this section, all data and databases collected and created by the third party in performing services for the office are the property of the commission and the third party.

History. S.L. 2015, ch. 5, § 3, eff July 1, 2015.

Effective Date.

This section became effective July 1, 2015.

CHAPTER 54-37 Veterans Adjusted Compensation Bonds (World War II Bonus) [Repealed]

[Omitted as a statute not of a general and permanent nature]

CHAPTER 54-38 Alcoholism and Drug Abuse

54-38-01. Definitions. [Effective through August 31, 2022]

In this chapter, unless the context or subject matter otherwise requires:

  1. “Alcoholic” means any person who chronically and habitually uses alcoholic beverages to the extent that the person has lost the power of self-control with respect to the use of such beverages, or while chronically or habitually under the influence of alcoholic beverages, endangers public morals, health, safety, or welfare.
  2. “Alcoholism” means the pathological condition attendant upon the excessive and habitual use of alcoholic beverages.
  3. “Department” means the department of human services.
  4. “Drug abuse” means the use of drugs solely for their stimulant, depressant, or hallucinogenic effect upon the higher functions of the central nervous system and not as a therapeutic agent prescribed in the course of medical treatment or in a program of research operated under the direction of a physician or pharmacologist.
  5. “Drug dependent persons” means any person who has developed a state of psychic or physical dependence, or both, upon a drug following administration of that drug upon a repeated periodic or continuous basis.
  6. “Patients” means persons who are under the supervision or care of the department.

Source:

S.L. 1951, ch. 310, § 1; R.C. 1943, 1957 Supp., § 54-3801; S.L. 1971, ch. 508, § 1; 1981, ch. 486, § 30; 1987, ch. 570, § 44.

Cross-References.

Substance abuse treatment programs, N.D.C.C. ch. 50-31.

Alcoholic counseling services, N.D.C.C. § 5-01-05.4.

Commitment procedures, N.D.C.C. ch. 25-03.1.

Collateral References.

Alcoholic as entitled to public assistance under poor laws, 43 A.L.R.3d 554.

Pretrial diversion: Statute or court rule authorizing suspension or dismissal of criminal prosecution on defendant’s consent to noncriminal alternative, 4 A.L.R.4th 147.

Law Reviews.

The Drive to Stop the Drinker from Driving: Suggested Civil Approaches, 59 N.D. L. Rev. 391 (1983).

54-38-01. Definitions. [Effective September 1, 2022]

In this chapter, unless the context or subject matter otherwise requires:

  1. “Alcoholic” means any person who chronically and habitually uses alcoholic beverages to the extent that the person has lost the power of self-control with respect to the use of such beverages, or while chronically or habitually under the influence of alcoholic beverages, endangers public morals, health, safety, or welfare.
  2. “Alcoholism” means the pathological condition attendant upon the excessive and habitual use of alcoholic beverages.
  3. “Department” means the department of health and human services.
  4. “Drug abuse” means the use of drugs solely for their stimulant, depressant, or hallucinogenic effect upon the higher functions of the central nervous system and not as a therapeutic agent prescribed in the course of medical treatment or in a program of research operated under the direction of a physician or pharmacologist.
  5. “Drug dependent persons” means any person who has developed a state of psychic or physical dependence, or both, upon a drug following administration of that drug upon a repeated periodic or continuous basis.
  6. “Patients” means persons who are under the supervision or care of the department.

Source:

S.L. 1951, ch. 310, § 1; R.C. 1943, 1957 Supp., § 54-3801; S.L. 1971, ch. 508, § 1; 1981, ch. 486, § 30; 1987, ch. 570, § 44; 2021, ch. 352, § 488, eff September 1, 2022.

54-38-02. Alcoholism and drug abuse division. [Repealed]

Repealed by S.L. 1987, ch. 570, § 45.

54-38-03. Meetings — When held — Compensation and expenses of members. [Repealed]

Repealed by S.L. 1971, ch. 508, § 7.

54-38-04. Executive director — Appointment — Duties — Salary and expenses. [Repealed]

Repealed by S.L. 1971, ch. 508, § 7.

54-38-05. Duties of department.

The department shall:

  1. Study alcoholism and drug abuse and related problems, including methods and facilities available for the care, custody, detention, treatment, employment, and rehabilitation of resident alcoholics and drug dependent persons.
  2. Promote meetings and programs for the discussion of alcoholism and drug abuse or any of their aspects, disseminate information on the subject of alcoholism and drug abuse for the guidance and assistance of individuals, courts, and public or private agencies for the prevention of alcoholism and drug abuse, and inform and educate the general public on problems of alcoholism and drug abuse, their prevention and treatment, to the end that alcoholism and drug abuse may be prevented and that persons suffering from alcoholism or drug dependency may be disposed to seek available treatment.
  3. Conduct, promote, and finance, in full or in part, studies, investigations, and research, independently or in cooperation with universities, colleges, scientific organizations, and public or private agencies.
  4. Accept for examination, diagnosis, guidance, and treatment, insofar as funds permit, any resident of the state coming to the department of that person’s own volition for advice and guidance. For purposes of this subsection, “any resident” includes veterans and nonveterans who have a brain injury.
  5. Establish, from time to time, policies governing the evaluation, acceptance, care, and treatment of alcoholics and drug dependent persons.
  6. Develop, through consultation with the director of the department of transportation, a policy governing programs for persons who, subsequent to being convicted for traffic offenses, are referred to educational courses on alcohol, drugs, and driving.

Source:

S.L. 1951, ch. 310, § 5; R.C. 1943, 1957 Supp., § 54-3805; S.L. 1963, ch. 346, § 65; 1971, ch. 508, § 3; 1981, ch. 486, § 31; 1987, ch. 460, § 15; 2009, ch. 418, § 8; 2015, ch. 334, § 10, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 10 of chapter 334, S.L. 2015 became effective August 1, 2015.

54-38-06. Department may contract for services of other agencies — Training of personnel.

The department may contract for such educational, research, casework, institutional and medical facilities, personnel and services of public or private agencies as may be necessary to carry out the provisions of this chapter. It may accept for training under its direction such medical, technical, and clinical personnel as may be desirable.

Source:

S.L. 1951, ch. 310, § 6; R.C. 1943, 1957 Supp., § 54-3806; S.L. 1971, ch. 508, § 4.

54-38-07. Facilities for treatment of alcoholism — Contracts.

The department may establish new facilities for the treatment of alcoholics and drug dependent persons in areas of the state where a need exists and no private facilities are available to contract for chemical abuse or dependency treatment services. The department may contract for the treatment of alcohol and drug dependent persons by eligible vendors who meet the standards of operations established by the department. When the department chooses to contract, the department shall select eligible vendors who can provide economical and appropriate treatment for alcohol and drug dependent persons. The department shall contract for these services on the basis of the same unit costs incurred by the department in delivering like services. Each contract entered into pursuant to this section must provide that the private vendor-contractor will accept and treat each chemically dependent or chemical-abusing client referred to the vendor pursuant to the contract. As used in this section, “standards of operations” includes a determination by the department that the vendor is financially responsible and will continue to provide services throughout the contract period.

Source:

S.L. 1951, ch. 310, § 7; R.C. 1943, 1957 Supp., § 54-3807; S.L. 1971, ch. 508, § 5; 1991, ch. 603, § 1.

54-38-08. Voluntary admission for treatment — Rules and regulations — Records confidential. [Repealed]

Repealed by S.L. 1971, ch. 508, § 7.

54-38-09. Reimbursement for treatment — Rates — Disposition of revenue and aid — Expenditures — Appropriation.

The department, insofar as may be possible, shall seek to be reimbursed by the patient or persons liable for the support of the patient for any or all items of expense incurred by the department in connection with the care, custody, treatment, and rehabilitation and may make such financial arrangements concerning necessary expenses as it deems best. No patient may be charged at a rate greater than actual cost of the care, treatment, or rehabilitation furnished the patient. The department may accept funds, property, or services from any source, and all revenue received from gifts and grants-in-aid must be deposited in the state treasury and may be spent only pursuant to an appropriation first made by the legislative assembly.

Source:

S.L. 1951, ch. 310, § 9; R.C. 1943, 1957 Supp., § 54-3809; S.L. 1959, ch. 214, § 10; 1971, ch. 508, § 6; 1989, ch. 116, § 5.

CHAPTER 54-39 Korean Conflict Bonus Bond Issue [Repealed]

[Omitted as a statute not of a general and permanent nature]

CHAPTER 54-40 Joint Exercise of Governmental Powers

54-40-01. Agreement — Exercise of joint powers — Bonds.

  1. Two or more governmental units or municipal corporations having in common any portion of their territory or boundary, by agreement entered into through action of their governing bodies, may jointly or cooperatively exercise their respective separate powers, or any power common to the contracting parties or any similar powers, including those which are the same except for the territorial limits within which they may be exercised for the purpose of acquiring, constructing, and maintaining any building for their joint use. The term “governmental unit” as used in this section includes every city, county, park district, school district, states and United States governments and departments of each thereof, and all other political subdivisions even though not specifically named or referred to herein.
  2. Two or more counties or cities, or any combination of counties or cities, whether or not they have in common any portion of their territory or boundary, by agreement entered into through action of their governing bodies, may jointly or cooperatively exercise their respective separate powers, or any power common to the contracting parties or any similar powers, for the purpose of acquiring equipment or constructing roads, bridges, and road and bridge improvements.
  3. An agency, department, or institution of this state may enter an agreement with the state of South Dakota to form a bistate authority to jointly exercise any function that the entity is authorized by law to perform. Any agreement entered under this subsection must be submitted to the legislative assembly or, if the legislative assembly is not in session, to the legislative management for approval or rejection and may not become effective until approved by the legislative assembly or the legislative management.
  4. Counties or cities, or any combination of counties or cities, may jointly issue bonds in the same manner and for the purposes provided for in chapter 21-03.

Source:

S.L. 1955, ch. 309, § 1; 1957, ch. 331, § 1; R.C. 1943, 1957 Supp., § 54-4001; S.L. 1987, ch. 73, § 33; 1989, ch. 656, § 1; 1997, ch. 15, § 33; 1999, ch. 50, § 71; 2009, ch. 482, § 79.

Cross-References.

Library services, city-county agreement for joint provision not authorized under this chapter, see N.D.C.C. § 40-38-11.

Municipal electric utilities, agreements for joint undertakings exempt from this chapter, see N.D.C.C. § 40-33.2-11.

54-40-02. Agreement to state purpose.

Such agreement must state the purpose of the agreement or the power or powers to be exercised, and it must provide for the method by which the purpose sought shall be accomplished or the manner in which the power or powers shall be exercised.

Source:

S.L. 1955, ch. 309, § 2; R.C. 1943, 1957 Supp., § 54-4002.

54-40-02.1. Building management commission for county and city building — Lease authority.

Any agreement entered into between a county and a city under this chapter for the acquisition, construction, and maintenance of a building for their joint use by bonds issued pursuant to section 54-40-03 must provide for a building management commission composed of elected officials of the county, elected officials of the city, and representatives of the public, with the exact number of each to be specified in the agreement. The agreement must specify the powers to be exercised by the building management commission with respect to the acquisition, construction, and maintenance of the building, and with respect to any lease entered into by the commission and any noncounty and noncity governmental entity for use of a portion of the building. Notwithstanding section 48-08-07, a lease of a portion of any building used jointly by a county and a city pursuant to this section may be for a term longer than two years.

Source:

S.L. 1979, ch. 558, § 1; 1985, ch. 512, § 2.

54-40-03. Disbursement of funds — Issuance of bonds.

The parties to such agreement may provide for disbursements from public funds, including funds already raised to buy real estate for public buildings, proceeds of bonds issued pursuant to chapter 21-03, and other proper funds or properties already on hand, to carry out the purposes of the agreement. The total amount of bonds issued by a county and a city under this section must be in proportion to the joint usage of the building by the county and the city and must also consider the tax base of the county and the tax base of the city. When a county and a city wholly within the county boundaries propose to issue bonds for the purpose of a building for their joint use, the governing body of the county may submit to its qualified voters the proposition of issuing bonds in the total amount required to be borrowed for the building, under an initial resolution and ballot stating the maximum total principal amount of the bonds and the maximum principal amount thereof for which the city shall be obligated. In this event the governing body of the city shall adopt an ordinance or resolution stating the maximum amount of the obligation proposed to be incurred by the city and the other matters of information required for an initial resolution for bonds under the provisions of section 21-03-09, which ordinance or resolution shall be subject to referral to the qualified electors of the city by petition of the percentage of the qualified electors referred to in chapter 40-12 and upon the conditions and in the manner therein set forth. If the issuance of the bonds is approved by the required majority of the qualified electors of the county voting thereon, and if the city ordinance or resolution is not referred or is approved by a majority of the qualified electors of the city voting thereon, the bonds may be issued by the county and the obligation incurred by the city. The principal amount of the obligation incurred by the city to the county, as provided in the agreement, must be a general obligation and indebtedness of the city as referred to and limited by section 21-03-04 and by section 15 of article X of the Constitution of North Dakota, and must be deducted from the principal amount of the bonds in determining the net indebtedness incurred by the county in the issuance thereof. The city shall levy a direct, annual, irrepealable tax for the payment of its obligation and the interest thereon as required for the payment of general obligation bonds under the provisions of section 21-03-15, which tax must be retained by the county auditor in the sinking and interest fund for the county bonds as provided in section 21-03-41. Each payment of principal, interest, and premium, if any, due with respect to the county bonds must be the obligation of the city in the proportion that the original principal amount of the city’s obligation bears to the original principal amount of the bonds, for the purpose of ascertaining the amount of net indebtedness of the city and the county outstanding at any time, of determining the amounts of taxes required to be assessed and collected annually by the city and the county for the bond sinking and interest fund, and of determining the amounts of income from the investment of the sinking and interest fund which are to be credited against the obligations of the city and county, respectively, and for all other purposes whatsoever. Nothing herein requires the city-county agreement to be executed before the authorization of the bonds and the city’s obligation thereon. The agreement when executed must fix the relative contributions of the city and county to the capital cost of the building in a manner consistent with the maximum net indebtedness authorized to be incurred by each of them, respectively. If so provided in the agreement, the city may evidence its obligation by the issuance of general obligation bonds of the city and appropriate the proceeds of its bonds for expenditure in accordance with the terms of the agreement, and the amount of the county bonds may be reduced by the amount issued by the city. Funds other than taxes for debt service may be paid to and disbursed by such agency as may be agreed upon, but the method of disbursement must agree as far as practicable with the method provided by law for the disbursement of funds by the parties to the agreement. Strict accountability of all funds and report of all receipts and disbursements must be provided for.

Source:

S.L. 1955, ch. 309, § 3; R.C. 1943, 1957 Supp., § 54-4003; S.L. 1979, ch. 558, § 2; 1985, ch. 235, § 96.

54-40-04. Termination of agreement.

Such agreement may be continued for a definite term or until rescinded or terminated in accordance with its terms.

Source:

S.L. 1955, ch. 309, § 4; R.C. 1943, 1957 Supp., § 54-4004.

54-40-05. Agreement shall provide for disposition of property.

Such agreement must provide for the disposition of any property acquired as the result of such joint or cooperative exercise of powers, and the return of any surplus moneys in proportion to contributions of the several contracting parties after the purpose of the agreement has been completed.

Source:

S.L. 1955, ch. 309, § 5; R.C. 1943, 1957 Supp., § 54-4005.

54-40-06. Residence requirement.

Residence requirements for holding office in any governmental unit do not apply to any officer appointed to carry out any such agreement.

Source:

S.L. 1955, ch. 309, § 6; R.C. 1943, 1957 Supp., § 54-4006.

54-40-07. Clarification of constitutional authority and effect of other statutes. [Repealed]

Repealed by S.L. 1993, ch. 401, § 53.

54-40-08. Agreements for the use by political subdivisions of buildings and facilities of the state.

  1. Any county, city, township, city park district, school district, or other political subdivision of this state may enter into an agreement with any agency, board, or institution of the state for the use of buildings and facilities under the control of that state agency, board, or institution for a period of time as the parties may determine to be necessary. Before an agreement pursuant to this section is effective, the respective governing body or officer of the state agency, board, or institution must approve the agreement and the attorney general must determine that the agreement is legally sufficient.
  2. The political subdivision, pursuant to an agreement for the use of buildings and facilities, may make improvements to the buildings or facilities instead of any rental or other payments, but all improvements must first be approved by the governing body or officer of the state agency, board, or institution. The buildings and facilities may be moved or replaced at any time during the term of an agreement, and the political subdivision may use the buildings and facilities constructed in place of the original buildings and facilities for the remainder of the term of the agreement.

Source:

S.L. 1963, ch. 353, § 1; 1969, ch. 451, § 1; 1971, ch. 509, § 1; 1975, ch. 484, § 1; 1993, ch. 401, § 50.

Notes to Decisions

Option to Purchase Realty.

City had power to grant an option on the purchase of real property for use in building low-cost housing. Dahl v. Grafton, 286 N.W.2d 774, 1979 N.D. LEXIS 322 (N.D. 1979).

54-40-09. Human service centers — Powers — Duties. [Renumbered]

Redesignated as section 50-06-05.3.

54-40-10. Human services — Certification — Standards. [Repealed]

Repealed by S.L. 1981, ch. 486, § 37.

54-40-11. County social service board collocation with human service centers — Fiscal incentives. [Repealed]

Repealed by S.L. 1981, ch. 486, § 37.

54-40-12. Joint agreements for heat from a central heating source.

Any political subdivision, nonprofit hospital, or nursing home of this state, through its governing body, may enter into an agreement with any state agency or institution to furnish or receive heat from a central heating source. The director of the office of management and budget or any supervisory state agency must be the contracting party in an agreement involving a state institution under the director’s or health officer’s control. Political subdivisions, nonprofit hospitals, nursing homes, and state agencies and institutions are encouraged to enter into agreements pursuant to this section.

Source:

S.L. 1981, ch. 533, § 1; 1991, ch. 592, § 43.

CHAPTER 54-40.1 Regional Planning Councils

54-40.1-01. Legislative findings and purpose.

The legislative assembly finds that the citizens of the state have a fundamental interest in the orderly development of the state and its resources. This finding recognizes the fact that the mobility of the population, changes in economic forces, and governmental mandates within and without the state present problems that cannot always be met by individual counties or cities and that local government planning and development efforts can be strengthened when aided by studies, planning, and implementation of both a statewide and regional character.

The legislative assembly further finds that the state has a positive interest in the establishment, preparation, and maintenance of a long-term, continuing, comprehensive planning and development process for the physical, social, and economic development of the state and each of its regions to serve as a guide for activities of state and local governmental units.

It is the purpose of this chapter to establish a consistent, comprehensive statewide policy for planning, economic development, program operations, coordination, and related cooperative activities of state and local governmental units and to enhance the ability of and opportunity for local governmental units to resolve issues and problems transcending their individual boundaries. In furtherance of this purpose, the legislative assembly finds that the governor is required to assure orderly and harmonious coordination of state and local plans and programs with federal, state, and regional planning and programming.

Source:

S.L. 1977, ch. 495, § 1; 1979, ch. 553, § 16; 1983, ch. 570, § 10; 1987, ch. 644, § 1; 1991, ch. 95, § 40; 1993, ch. 525, § 1.

54-40.1-02. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

  1. “City” means any city incorporated under the laws of this state.
  2. “Governing body” means the city council or the board of city commissioners or the board of county commissioners.
  3. “Industry” includes agriculture and business.
  4. “Member-at-large” means a person who represents the general citizenry of the county.
  5. “Minority group” means any identifiable group of people, regardless of numerical size, whose members are denied or limited in employment, education, or training opportunities because of sex, race, creed, color, religion, national origin, or low income.
  6. “Organized local development corporation” means any group organized for the purpose of promoting economic development which has filed for incorporation as such with the secretary of state.
  7. “Region” means the area delineated by executive order of the governor.
  8. “Regional comprehensive plan” means a long-range guide for the economic, physical, and social development of a region which identifies regional goals, objectives, and opportunities and embodies the policies of the regional council.
  9. “Regional council” means the council for comprehensive planning and development established in each region pursuant to this chapter.
  10. “Units of general local government” means cities, counties, and organized townships.

Source:

S.L. 1977, ch. 495, § 2; 1979, ch. 553, § 17; 1983, ch. 570, § 11; 1987, ch. 644, § 2; 1991, ch. 95, § 41; 1993, ch. 525, § 2; 2001, ch. 55, § 21.

54-40.1-03. Regional council — Membership.

  1. Total membership on a regional council must be determined by the participating units of general local government, subject to the following minimum criteria of membership:
    1. A majority of the full regional council membership must be composed of existing elected city officials and county commissioners. Selection of these members must be by their respective governing bodies.
    2. One member of the regional council may represent identifiable and organized minority groups existing in the region. Selection of the member may be made by the minority groups upon invitation from the regional council.
    3. One soil conservation district supervisor from each county must be appointed to the regional council to represent the agricultural and natural resource interests of the region. The appointment of the soil conservation district supervisor must be made by the respective boards of soil conservation districts. If any county contains more than one soil conservation district, either in whole or in part, the concerned boards shall meet and jointly agree upon a single appointment to the regional council.
    4. One or more members of the regional council, selected by the local development corporations, shall represent the organized local development corporations existing in the region.
    5. The chairman of the regional employment training council or the chairman’s designee must be appointed to the regional council.
    6. An alternate must be selected for each regular member of the regional council in the same manner as the regular member is selected. The alternate member is to serve on the regional council when the regular member is absent and shall enjoy the same responsibilities and privileges as a regular member enjoys.
  2. The term of office of each member of the regional council must be as determined by the regional council and specified in its agreements, rules, or procedures. However, if a person is a member of the regional council as the result of being a member of the governing body of a city or a county, that person’s term on the regional council expires at the same time that person’s term of public office expires and another person must be appointed to the regional council in the same manner as the selection was made for the member whose term expires.
  3. Special or standing committees may be appointed to assist and advise the regional council. Members of special or standing committees must be appointed by the regional council. Membership on special or standing committees is not limited to the members of the regional council.
  4. The regional council may elect an executive board from the members of the regional council. The executive board shall perform the administrative duties prescribed in the agreements, rules, or procedures of the regional council.
  5. The regional council shall determine the rate at which expenses of regional council members and members of any special or standing committees must be paid for expenses incurred in attending meetings of the regional council and the committees and in the performance of their official duties, but the amounts may not exceed the amounts provided by law for state officers.

Source:

S.L. 1977, ch. 495, § 3; 1987, ch. 644, § 3; 1991, ch. 605, § 1; 1993, ch. 525, § 3.

54-40.1-04. Regional council — Powers and duties.

A regional council shall:

  1. Adopt agreements, rules, or procedures as may be necessary to effectuate planning and development in the region.
  2. Coordinate planning and development within the region for all matters of regional concern as determined by the regional council, including land use, social and economic planning, economic development, transportation, health, environmental quality, water and sewerage, solid waste, flood relief, parks and open spaces, hospitals, and public buildings.
  3. Participate with other public agencies and private organizations in regard to research for planning activities relevant to the region.
  4. For the purpose of coordination, work with state departments, agencies, and institutions in reviewing and commenting on all plans and federal aid applications as to their impact on the region.
  5. Develop guidelines for the coordination of land use plans and ordinances within the region.
  6. Prepare a regional comprehensive plan and upon the preparation of such a plan or any phase, amendment, revision, extension, addition, functional part, or part thereof, file such plan, phase, functional part, amendment, revision, extension, addition, or part thereof with the office, all local planning agencies within the region, and other planning agencies in adjoining areas.
  7. Develop an annual budget for operations during a fiscal year.
  8. Receive and expend federal, state, and local funds, and contract for services with units of general local government and private individuals and organizations, consistent with the scope and objectives of planning and development functions.
  9. Upon availability of funds, hire an executive director who must be given full control over the staff of the regional council. The executive director shall act as a liaison between the regional council and the staff of the regional council and shall advise and assist the regional council in the selection of staff.
  10. Provide technical assistance for primary sector business development by leveraging local funds to assist in product development, product testing, business plan development, feasibility studies, gaining patent protection, legal services, market strategy development, and other needs to stimulate business development.
  11. Host business outreach forums to stimulate entrepreneurship and interchange with potential investment and forums on other matters of importance to the local area.
  12. Upon request, facilitate the financing of local economic development activities, such as interest buydown programs and local revolving loan fund programs, without regard to the fiscal source.
  13. Act as a regional development corporation as provided by the individual regional council’s bylaws.
  14. Have authority to purchase, own, and manage real property for the purpose of the business incubator and regional council administrative functions.

Source:

S.L. 1977, ch. 495, § 4; 1979, ch. 553, § 18; 1983, ch. 570, § 12; 1991, ch. 95, § 42; 1991, ch. 605, § 2; 1993, ch. 525, § 4.

54-40.1-05. Reports.

Each regional council shall prepare an annual report within one hundred twenty days after the end of each fiscal year. The regional council shall submit copies of the report to the participating units of general local government, to the governor or the governor’s designee, and to members of the legislative assembly in each region. To the extent practicable, the report must include projects completed or in progress and sources of funding.

Source:

S.L. 1977, ch. 495, § 5; 1987, ch. 644, § 4; 1991, ch. 95, § 43; 1993, ch. 525, § 5; 1997, ch. 444, § 4.

54-40.1-06. Dissolution of regional council.

A regional council may be dissolved as prescribed in the agreements, rules, or procedures of the regional council. Upon dissolution, all properties of the regional council will be converted to cash or evaluated as to worth and divided among participating units of general local government in proportion to the amount of their financial participation.

Source:

S.L. 1977, ch. 495, § 6; 1993, ch. 525, § 6.

CHAPTER 54-40.2 Agreements Between Public Agencies and Indian Tribes

54-40.2-01. Definitions.

In this chapter:

  1. “Public agency” means any political subdivision, including municipalities, counties, school districts, and any agency or department of North Dakota.
  2. “Secretary” means the secretary of interior of the United States.
  3. “Tribal government” means the officially recognized government of any Indian tribe, nation, or other organized group or community located in North Dakota exercising self-government powers and recognized as eligible for services provided by the United States. The term does not include any entity owned, organized, or chartered by a tribe which exists as a separate entity authorized by a tribe to enter agreements of any kind without further approval by the government of the tribe.

Source:

S.L. 1983, ch. 568, § 1; 1999, ch. 469, § 1.

54-40.2-02. Authorization to enter agreements — General contents.

  1. Any one or more public agencies may enter into an agreement with any one or more tribal governments to perform any administrative service, activity, or undertaking that any of the public agencies or tribal governments are authorized to perform by law and to resolve any disputes, in accordance with this chapter or any other law that authorizes a public agency to enter an agreement. The agreement must set forth fully the powers, rights, obligations, and responsibilities of the parties to the agreement.
  2. The Indian affairs commission may propose agreements entered into pursuant to this chapter and may assist, at the request of any tribe affected by such an agreement, in the negotiation and development of such agreements.
  3. If the public agency contemplating entering into an agreement under this chapter is a school district, the school district shall:
    1. Provide written notice to the superintendent of public instruction that it is contemplating entering into an agreement under this chapter; and
    2. Consider written recommendations that the superintendent makes regarding the agreement.
  4. This chapter does not apply to agreements entered into under section 24-02-02.3 and chapter 54-38 or agreements entered with one or more tribal governments pursuant to a state or federally funded program or other activity, including any publicly announced offer of a grant, loan, request for proposal, bid, or other contract originating with a public agency, for which the tribal government is otherwise eligible under federal, state, or local law.

Source:

S.L. 1983, ch. 568, § 2; 1991, ch. 606, § 1; 1995, ch. 259, § 2; 1999, ch. 469, § 2; 2005, ch. 521, § 11.

54-40.2-03. Specifications of agreement. [Repealed]

Repealed by S.L. 1991, ch. 606, § 10.

54-40.2-03.1. Agreement — Notice.

  1. After the parties to an agreement have agreed to its contents, the public agency involved shall publish a notice containing a summary of the agreement in the official newspaper of each county of the state reasonably expected to be affected by the agreement. The notice must also be published in any newspaper of general circulation for the benefit of the members of any tribe affected by the agreement. The notice must also be posted plainly at the tribal office of any tribe affected by the agreement and in the county courthouse of any county affected by the agreement. The notice must state that the public agency will hold a public hearing concerning the agreement upon the request of any resident of the county in which the notice is published if the request is made within thirty days of the publication of the notice.
  2. If the public agency contemplating entering into an agreement under this chapter is a school district, the school district must also provide the superintendent of public instruction a copy of the notice.

Source:

S.L. 1987, ch. 645, § 1; 1991, ch. 606, § 2; 2005, ch. 521, § 2.

54-40.2-03.2. Public hearing — Notice.

  1. If the public agency receives a request pursuant to section 54-40.2-03.1, the public agency shall hold a public hearing prior to the submission of the agreement to the governor at which any persons interested in the agreement may be heard. Notice of the time, place, and purpose of the hearing must be published prior to the hearing in the official newspaper of each county of the state reasonably expected to be affected by the agreement. The notice of the public hearing must also be published in any newspaper of general circulation published for the benefit of the members of any tribe affected by the agreement. The notice must also be posted plainly at the tribal office of any tribe affected by the agreement and in the county courthouse of any county affected by the agreement. The notice must describe the nature, scope, and purpose of the agreement and must state the times and places at which the agreement will be available to the public for inspection and copying.
  2. If the public agency contemplating entering into an agreement under this chapter is a school district, the school district must also provide the superintendent of public instruction a copy of the notice.

Source:

S.L. 1987, ch. 645, § 2; 1991, ch. 606, § 3; 2005, ch. 521, § 3.

54-40.2-04. Approval of agreement by governor and tribes — Approval by legislative assembly for tax collection agreements.

As a condition precedent to an agreement made under this chapter becoming effective, it must have the approval of the governor of North Dakota and the governing bodies of the tribes involved. If the agreement is a tax collection agreement between the tax commissioner and one or more tribes, the agreement also is subject to confirmation by a majority of members elected to the house of representatives and the senate and does not become effective until its legislative confirmation date or the effective date in the agreement, whichever is later. Each tax collection agreement presented for legislative confirmation must contain an expiration date not more than sixteen years after its effective date and the expiration date must be March thirty-first of an odd-numbered year. If the agreement obtains the approvals under this section and, if required, legislative confirmation under this section, it may be submitted to the secretary for approval.

Source:

S.L. 1983, ch. 568, § 4; 1991, ch. 606, § 4; 2015, ch. 421, § 1, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 421, S.L. 2015 became effective August 1, 2015.

Note.

Section 3 of chapter 421, S.L. 2015 provides, “EFFECTIVE DATE . This Act is effective for agreements entered after July 31, 2015.

Section 7 of chapter 466, S.L. 2015 provides, “WAIVER OF LEGISLATIVE CONFIRMATION REQUIREMENT FOR CERTAIN STATE-TRIBAL TAX COLLECTION AGREEMENTS. The requirement of legislative confirmation of state-tribal tax collection agreements under section 57-51.2-01 do not apply, for adjustment of an existing agreement attributable to the changes in the oil extraction tax under this Act, and for agreements under section 54-40.2-04 do not apply, for adjustment of an existing agreement regarding application of tribal tax authority to bulk delivery of dyed or undyed special fuels within the exterior boundaries of the reservation.”

54-40.2-05. Filing of agreement.

After approval by the governor and by the tribe or tribes affected by the agreement and, if required, legislative confirmation, and prior to commencement of its performance, an agreement made pursuant to this chapter must be filed with:

  1. The secretary.
  2. The clerk of court of each county where the principal office of one of the parties to the agreement is located.
  3. The secretary of state.
  4. The affected tribal government.

Source:

S.L. 1983, ch. 568, § 5; 1991, ch. 606, § 5; 2015, ch. 421, § 2, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 421, S.L. 2015 became effective August 1, 2015.

Note.

Section 3 of chapter 421, S.L. 2015 provides, “ EFFECTIVE DATE . This Act is effective for agreements entered after July 31, 2015.”

54-40.2-05.1. Review of agreement — Report.

Upon the request of any political subdivision or any tribe affected by an approved agreement, the Indian affairs commission shall make findings concerning the utility and effectiveness of the agreement taking into account the original intent of the parties and may make findings as to whether the parties are in substantial compliance with all provisions of the agreement. In making its findings, the Indian affairs commission shall provide an opportunity, after public notice, for the public to submit written comments concerning the execution of the agreement. The Indian affairs commission shall prepare a written report of its findings made pursuant to this section and shall submit copies of the report to the affected political subdivision or public agency, the governor, and the affected tribes. The findings of the Indian affairs commission made under this section are for informational purposes only. In any administrative hearing or legal proceeding in which the performance of any party to the agreement is at issue, the findings may not be introduced as evidence, or relied upon, or cited as controlling by any party, court, or reviewing agency, nor may any presumption be drawn from the findings for the benefit of any party.

Source:

S.L. 1987, ch. 645, § 3; 1991, ch. 600, § 11; 1991, ch. 606, § 6.

54-40.2-06. Revocation of agreement.

Any agreement made pursuant to this chapter must include provisions for revocation.

Source:

S.L. 1983, ch. 568, § 6; 1991, ch. 606, § 7.

54-40.2-07. Authorization to appropriate funds for purpose of agreement.

Any public agency entering into an agreement pursuant to this chapter may appropriate funds for and may sell, lease, or otherwise give or supply material to any entity created for the purpose of performance of the agreement and may provide such personnel or services therefore as is within its legal power to furnish.

Source:

S.L. 1983, ch. 568, § 7.

54-40.2-08. Specific limitations on agreements.

Nothing in this chapter may be construed to:

  1. Authorize an agreement that enlarges or diminishes the jurisdiction over civil or criminal matters that may be exercised by either North Dakota or tribal governments located in North Dakota.
  2. Authorize a public agency or tribal government, either separately or pursuant to agreement, to expand or diminish the jurisdiction presently exercised by the government of the United States to make criminal laws for or enforce criminal laws in Indian country.
  3. Authorize a public agency or tribal government to enter into an agreement except as authorized by their own organizational documents or enabling laws.
  4. Authorize an agreement that provides for the alienation, financial encumbrance, or taxation of any real or personal property, including water rights, belonging to any Indian or any Indian tribe, band, or community that is held in trust by the United States or is subject to a restriction against alienation imposed by the United States.

Source:

S.L. 1983, ch. 568, § 8; 1991, ch. 606, § 8.

Notes to Decisions

Illustrative Cases.

Tribal court lacked jurisdiction over tribe members' claims against school district and its employees; pursuant to this section, district's operational agreements with tribe could not confer jurisdiction on tribal court, and as district was complying with its duty under N.D. Const. art. VIII, § 1 to make public education open to all children of North Dakota when it entered into agreements, they were not within the ambit of first exception of Montana v. United States, 450 U.S. 544 (1981), to general rule that tribe's sovereign powers did not extend to nonmembers' activities. Belcourt Pub. Sch. Dist. v. Herman, 786 F.3d 653, 2015 U.S. App. LEXIS 8017 (8th Cir. N.D. 2015).

Particular Cases.

Tribal Court did not have jurisdiction over a nonmember parent's claims against the school district because, under the Montana exceptions, jurisdiction was not conferred by an agreement between the district and the Tribe to provide services for students residing on the reservation, both Indian and non-Indian. Fort Yates Pub. Sch. Dist. #4 v. Murphy, 786 F.3d 662, 2015 U.S. App. LEXIS 8015 (8th Cir. N.D. 2015).

54-40.2-09. Validity of existing agreements.

This chapter does not affect the validity of any agreement entered into between a tribe and a public agency before August 1, 1999.

Source:

S.L. 1983, ch. 568, § 9; 1991, ch. 606, § 9; 1999, ch. 469, § 3.

CHAPTER 54-40.3 Joint Powers Agreements

54-40.3-01. Joint powers agreements — General authority.

  1. Any county, city, township, city park district, school district, or other political subdivision of this state, upon approval of its respective governing body, may enter into an agreement with any other political subdivision of this state for the cooperative or joint administration of any power or function that is authorized by law or assigned to one or more of them. Any political subdivision of this state may enter into a joint powers agreement with a political subdivision of another state or political subdivision of a Canadian province if the power or function to be jointly administered is a power or function authorized by the laws of this state for a political subdivision of this state and is authorized by the laws of the other state or province. A joint powers agreement may provide for:
    1. The purpose of the agreement or the power or function to be exercised or carried out.
    2. The duration of the agreement and the permissible method to be employed in accomplishing the partial or complete termination of the agreement and for disposing of any property upon the partial or complete termination.
    3. The precise organization, composition, and nature of any separate administrative or legal entity, including an administrator or a joint board, committee, or joint service council or network, responsible for administering the cooperative or joint undertaking. Two or more political subdivisions which enter into a number of joint powers agreements may provide a master administrative structure for the joint administration of any number of those agreements, rather than creating separate administrative structures for each agreement. However, no essential legislative powers, taxing authority, or eminent domain power may be delegated by an agreement to a separate administrative or legal entity.
    4. The manner in which the parties to the agreement will finance the cooperative or joint undertaking and establish and maintain a budget for that undertaking. The parties to the agreement may expend funds pursuant to the agreement, use unexpended balances of their respective current funds, enter into a lease-option to buy and contract for deed agreements between themselves and with private parties, accumulate funds from year to year for the provision of services and facilities, and otherwise share or contribute property in accordance with the agreement in cooperatively or jointly exercising or carrying out the power or function. The agreement may include the provision of personnel, equipment, or property of one or more of the parties to the agreement that may be used instead of other financial support.
    5. The manner of acquiring, holding, or disposing of real and personal property used in the cooperative or joint undertaking.
    6. The acceptance of gifts, grants, or other assistance and the manner in which those gifts, grants, or assistance may be used for the purposes set forth in the agreement.
    7. The process to apply for federal or state aid, or funds from other public and private sources, to the parties for furthering the purposes of the agreement.
    8. The manner of responding for any liability that might be incurred through performance of the agreement and insuring against that liability.
    9. Any other necessary and proper matters agreed upon by the parties to the agreement.
  2. Any county, city, township, city park district, school district, or other political subdivision of this state may enter into an agreement in the manner provided in subsection 1 with any agency, board, or institution of the state for the undertaking of any power or function which any of the parties is permitted by law to undertake. Before an agreement entered into pursuant to this subsection is effective, the respective governing body or officer of the state agency, board, or institution must approve the agreement and the attorney general must determine that the agreement is legally sufficient.
  3. An agreement made pursuant to this chapter does not relieve any political subdivision or the state of any obligation or responsibility imposed by law except to the extent of actual and timely performance by a separate administrative or legal entity created by the agreement. This actual and timely performance satisfies the obligation or responsibility of the political subdivision.

Source:

S.L. 1993, ch. 401, § 49.

Notes to Decisions

Agreement Between City and County.

Because Minot Code of Ordinances § 2-71 and N.D.C.C. § 40-20-02 did not conflict and the language for supersession in N.D.C.C. § 40-05.1-05 did not apply, the city retained the power applicable to all municipalities under N.D.C.C. § 40-20-02 to appoint assistant city attorneys and the city had the statutory authority and power to contract with a county under N.D.C.C. §§ 54-40.3-01 and 40-18-15.1 for municipal prosecution services. City of Minot v. Rudolph, 2008 ND 231, 758 N.W.2d 731, 2008 N.D. LEXIS 201 (N.D. 2008).

54-40.3-02. Clarification of constitutional authority and effect of other statutes — Construction.

  1. The specificity of this chapter, chapter 54-40, or any other law may not be construed to limit the general authority of a political subdivision to enter into agreements pursuant to section 10 of article VII of the Constitution of North Dakota, except for specific limitations on that authority, and subject to specific procedural requirements, imposed by this chapter, any other law, or a home rule charter.
  2. This chapter does not dispense with the procedural requirements of any other statute providing for the joint or cooperative exercise of any governmental power.

Source:

S.L. 1993, ch. 401, § 49.

54-40.3-03. Political subdivisions encouraged to file agreements with advisory commission on intergovernmental relations. [Repealed]

Source:

S.L. 1993, ch. 401, § 49; Repealed by 2017, ch. 57, § 20, eff August 1, 2017.

54-40.3-04. Joint exercise of police power.

A state or a local criminal justice agency of this state, with the approval of its governing body, may enter an agreement in the manner provided in section 54-40.3-01 with another state or a political subdivision of another state, for the joint exercise of peace officer duties. A peace officer acting under an agreement pursuant to this section must be licensed under chapter 12-63, or if the peace officer is from another state, the officer must be licensed or certified by the other state’s licensing or certifying authority. A peace officer acting under an agreement pursuant to this section has full peace officer authority in any jurisdiction that is a party to the agreement. Before an agreement entered under this section is effective, the governing body for each criminal justice agency must have approved the agreement and the attorney general must have determined the agreement is legally sufficient.

Source:

S.L. 2011, ch. 337, § 2.

54-40.3-05. Application of open records law.

If a joint powers agreement is entered into between a political subdivision of this state and a political subdivision of another state which creates a joint emergency services communications system, the joint powers agreement must address which jurisdiction’s open records law will apply in the event a request is made for records that originated from the partner state but is in the possession of the joint emergency services communications system located in North Dakota. The agreement may provide that the emergency services records may be provided pursuant to the open records law of the originating state. If the joint powers agreement does not address this matter, it will be presumed that records will be provided pursuant to North Dakota law.

Source:

S.L. 2011, ch. 332, § 10.

CHAPTER 54-40.4 County-City Home Rule

54-40.4-01. County-city home rule — City participation.

One or more counties and one or more cities within each county may frame and adopt a home rule charter to form a single unit of local government pursuant to this chapter. A county-city home rule charter may include a city that participates in proposing the charter if a majority of the qualified electors of the city voting on the question approve the proposed charter.

Source:

S.L. 1993, ch. 401, § 51; 1997, ch. 108, § 31.

54-40.4-02. Method of proposing home rule charter.

The process for drafting and submitting a county-city home rule charter may be initiated by:

  1. Separate motions by one or more boards of county commissioners and one or more city governing bodies within each of those counties;
  2. The execution of a joint powers agreement; or
  3. A petition filed with the governing body of each county and city and signed by ten percent or more of the total number of qualified electors of each county and city voting for governor at the most recent gubernatorial election. The petition must be signed by at least ten percent of the electors residing within each participating city and ten percent of the electors residing in the remainder of the county.

Source:

S.L. 1993, ch. 401, § 51.

54-40.4-03. Charter commission alternatives — Powers and limitations — Charter contents.

  1. Within sixty days after proceedings are initiated for a county-city home rule charter, the governing bodies of the affected counties and cities shall enter into a joint powers agreement specifying the procedure for framing the charter, which may include the establishment of a single, cooperative charter commission with membership representing each county and city. As an alternative, the governing body of each county and city may establish a charter commission to frame the charter in cooperative study with the charter commissions of the other counties or cities. The governing bodies shall designate one of the members as chair of the charter commission.
  2. Each governing body may, whether separate charter commissions are established or another procedural arrangement is established through execution of a joint powers agreement, set the compensation and expenses of charter commission members and, from its general funds, furnish the charter commission with office space, supplies, and legal, clerical, and other assistance.
  3. A charter commission, during its deliberation, may hold public hearings and community forums and use other suitable means to disseminate information, receive suggestions and comments, and encourage public discussion on the subject of the proposed county-city home rule charter, and may report periodically to the affected governing bodies on its progress. In preparing the charter, the charter commission may:
    1. Include all, or any part, of the available powers enumerated by sections 11-09.1-05 and 40-05.1-06 for county and city home rule in the county-city charter, subject to the limitations of those provisions. A unified county-city government may not levy any tax that would not otherwise be authorized within the jurisdiction of a city or county pursuant to section 11-09.1-05 or 40-05.1-06, and city taxes may be levied only within areas of the unified government which are designated as participating cities;
    2. Provide for adjustment of existing bonded indebtedness and other obligations in a manner that will provide for a fair and equitable burden of taxation for debt service;
    3. Provide for the transfer or other disposition of property and other rights, claims, assets, and franchises of local governments unified under the charter;
    4. Provide for the reorganization, abolition, or adjustment of boundaries of any existing boards, commissions, agencies, and special districts of the unified governments;
    5. Include provisions for transition in implementing the charter, including elements that consider the reasonable expectations of current officeholders such as delayed effective dates for implementation at the end of a current term or a future term, upon the occurrence of a vacancy, or on a date certain;
    6. Include provisions for the limited application or temporary implementation of the charter, including provisions that permit implementation on a trial or experimental basis such as the expiration of the charter on a date certain in the future, required reapproval of the charter by the electors at a future date, or a phased-in implementation of various aspects of the charter; and
    7. Include other provisions that the charter commission decides to include and which are consistent with state law.
  4. A county-city home rule charter may not diminish the term of office for which a current county officer was elected, redesignate that elected office during that term as appointed, or reduce the salary of the office for that term.
  5. A county-city home rule charter may not diminish the future term of office, or redesignate an elected office as appointed, with respect to any person who, on August 1, 1993, holds an elected county office and continues to hold that specific office for future terms on an uninterrupted basis. This subsection does not apply after January 1, 2002, or if the person holding the affected office consents in writing to the proposed charter and submits that written document prior to the scheduled implementation of the charter to a district judge serving the judicial district in which the county is located.
  6. The charter commission shall submit a single, joint report and proposed charter within one year after appointment, unless a later submission date is agreed to by the affected governing bodies. The proposed charter or accurate summary of the charter must be published in the official newspaper of each affected county and city, at the expense of each county and city, at least once during two different weeks within the thirty-day period immediately preceding the date of election. However, a city with a population of one thousand or less may, instead of publishing the charter in a newspaper, distribute copies of the charter door-to-door and have them posted and available at prominent locations in the city.

Source:

S.L. 1993, ch. 401, § 51.

54-40.4-04. Submission of charter to electors.

At least sixty days, but not more than two years, after submission of the proposed charter to the affected governing bodies, the proposed charter must be submitted to a vote of the qualified electors of each affected county and city at a primary or general election held concurrently. The question on the ballot at the election must be framed in a manner that fairly and accurately describes the substance of the proposed charter. If the proposed charter has been submitted to a vote of the qualified electors of a county or city, the governing body may call a special election to resubmit the proposed charter to a vote of the qualified electors, and the special election must take place at least sixty days after the call for the special election.

Source:

S.L. 1993, ch. 401, § 51.

54-40.4-05. Ratification by majority vote — Effect of unification — Former powers preserved — Supersession of existing charters and conflicting state laws — Filing of copies of new charter.

  1. If a majority of the qualified electors of the county and a majority of the qualified electors of at least one city in the county voting on the question approves the charter, it is ratified and becomes the organic law of the area on the first day of January or July next following the election. However, the proposed charter may condition the approval of the charter on separate approval by any number of specified counties or cities participating in the charter process.
  2. On the effective date, the separate corporate existence of the county and of each participating city are unified into one unit of local government. The unified government shall succeed to, possess, and own all of the assets and, except as otherwise provided in the charter, becomes responsible for all the obligations and liabilities of each affected county and city. Any provision of law authorizing contributions or aid of any kind from the state or federal government to an affected county and city remains in full force and effect with respect to the unified county-city government. All powers granted any county or city by general law are granted to a home rule county-city.
  3. The county-city home rule charter and the ordinances made pursuant to the charter must be liberally construed to supersede, within the territorial limits and jurisdiction of the affected area, any conflicting state law. The charter may not authorize the enactment of ordinances to diminish the authority of boards of supervisors of a township or to change the structure of township government in any organized civil township, without the consent of the board of supervisors of the township. Any ordinance of a unified county-city government does not supersede any specific statutory limitation imposed on a home rule county or city.
  4. One copy of the charter as ratified must be filed with the secretary of state, one with the recorder, unless the board of county commissioners designates a different official, for any affected county or city, and one with the officer of unified county-city government responsible for maintaining permanent records. Courts shall take judicial notice of the charter.

Source:

S.L. 1993, ch. 401, § 51; 1997, ch. 108, § 32; 1999, ch. 278, § 78; 2001, ch. 120, § 1.

54-40.4-06. Amendment or repeal — Discontinuance of participation.

  1. A county-city home rule charter may be amended or repealed by a proposal submitted by the governing body of the unified county-city government or by a petition filed with the governing body signed by ten percent or more of the total number of qualified electors within the jurisdiction of the county-city government who voted in the last preceding general election. The governing body may appoint a charter commission to draft amendments to the charter. The proposals must be submitted to a vote of the qualified electors of the unified county-city government at the next primary or general election. The voters may accept or reject any amendment or a repeal by a majority vote of the qualified electors of the unified government voting on the question at the election.
  2. A participating county or city may discontinue its participation in the unified county-city government by filing with the governing body a petition proposing the action that is signed by ten percent or more of the total number of qualified electors within the county or city. The proposal must be submitted to a vote of the qualified electors at the next primary or general election. The voters may accept or reject the proposal by a majority vote of the qualified electors of the county or city voting on the question at the election.

Source:

S.L. 1993, ch. 401, § 51; 1997, ch. 108, § 33.

54-40.4-07. Manner of calling and holding elections.

The elections provided for in this chapter are subject to the laws applicable to other elections. All qualified electors of any affected county and city are eligible to vote at the election. The charter commission, for proposals to adopt a home rule charter, or the governing body, for proposals to amend or repeal a home rule charter, shall prescribe the form of ballot so that the voter may signify whether the voter is for or against the proposed home rule charter or the amendment or repeal.

Source:

S.L. 1993, ch. 401, § 51.

54-40.4-08. Vested property — Rights of action — Actions saved.

The adoption of any charter or amendment does not destroy any property, action, right of action, claim, or demand of any nature vested in the county-city. All rights of action, claims, or demands are preserved to the county-city, and to any persons asserting any claims against the county-city as though the charter or amendment had not been adopted. The adoption of any charter or amendment affects neither the right of the county-city to collect special assessments previously levied under any law or charter for the purpose of public improvements, nor impairs the obligation of any existing contract to which the county-city is a party.

Source:

S.L. 1993, ch. 401, § 51.

54-40.4-09. Effect of amendment or repeal on salary or term of office.

On the first day of January following repeal of a county-city home rule charter any affected county and city reverts to the form of government in place immediately preceding adoption of the home rule charter. If positions to which officials were elected under the home rule charter are substantially the same as positions under the form of government to which the county and city revert upon repeal, the elected officials shall continue to exercise the authority of their positions for the salary prescribed by the home rule charter until expiration of their terms of office as prescribed by the home rule charter. An amendment of a home rule charter may not diminish the term for which any official was elected, redesignate that elected office during that term as appointed, or reduce the salary of the office for that term.

Source:

S.L. 1993, ch. 401, § 51.

CHAPTER 54-40.5 Local Government Powers Transfer

54-40.5-01. Purpose.

The purpose of this chapter is to provide procedures for political subdivisions by mutual agreement to transfer the administrative, legal, and financial responsibility for any powers or functions to the county, as authorized by section 10 of article VII of the Constitution of North Dakota. Nothing in this chapter may be construed to affect the authority of political subdivisions to enter into joint powers agreements for the cooperative or joint administration of powers or functions or other contracts as permitted by law.

Source:

S.L. 1993, ch. 401, § 52.

54-40.5-02. Definitions.

As used in this chapter:

  1. “County” means the county in which a political subdivision is located.
  2. “Political subdivision” means a city, township, city park district, school district, or other unit of local government or special district or authority in this state.

Source:

S.L. 1993, ch. 401, § 52.

54-40.5-03. Transfer of powers or functions to the county.

A political subdivision may enter into an agreement for the transfer of the legal, administrative, and financial responsibilities for carrying out a power or function of the political subdivision as required or permitted by law or home rule charter. The agreement must include:

  1. The nature of the power or function to be transferred;
  2. The effective date of the proposed transfer;
  3. The responsibility for administration of the power or function to be transferred;
  4. The manner in which affected employees currently engaged in the performance of the power or function will be transferred, reassigned, or otherwise treated;
  5. The manner in which real property, facilities, equipment, or other personal property required in the exercise of the power or function are to be transferred, sold, or otherwise disposed of;
  6. The method of financing, establishing, and maintaining a budget for the power or function; and
  7. Other legal, financial, and administrative arrangements necessary to affect the transfer in an orderly and equitable manner.

Source:

S.L. 1993, ch. 401, § 52.

54-40.5-04. Revocation of transfer.

An agreement may be amended by further agreement of the parties in the same manner as the original agreement was made. An agreement may be terminated as provided in the agreement or, if no provision is made for the termination, by joint action of all parties, or by an individual party not less than one year after its notice in writing to all other parties. If a political subdivision that is a party to the agreement is dissolved, the agreement may be terminated as provided in this section by the governing body of the political subdivision upon its reincorporation or re-establishment, by a petition submitted to the county and signed by a majority of the electors residing within the previous territorial jurisdiction of the dissolved political subdivision, or in some other manner specified in the agreement.

A township or city that unilaterally transferred its zoning authority to the county may reacquire that zoning authority by mutual agreement between the board of county commissioners and the board of township supervisors or city governing body.

Source:

S.L. 1993, ch. 401, § 52; 2015, ch. 422, § 1, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 422, S.L. 2015 became effective August 1, 2015.

CHAPTER 54-41 North Dakota Coat of Arms

54-41-01. Designation of coat of arms.

A coat of arms of the state of North Dakota is designated and described as follows:

Device: On an Indian arrowhead point to base or a bend vert charged with three mullets of the first, in base a fleur-de-lis of the second.

Crest: On a wreath or and azure, a sheaf of three arrows argent armed and flighted gules behind a stringed bow fessways or with grip of the second (gules).

Motto: Strength from the soil.

Source:

S.L. 1957, ch. 330, § 1; R.C. 1943, 1957 Supp., § 54-4101.

54-41-02. Significant elements of coat of arms.

The colors of yellow gold and green are indicative of the great agricultural state of North Dakota and has particular reference to ripening grain and the abundant grazing areas. The Indian arrowhead forms the shield of the coat of arms and symbolizes the “Sioux State”. The three stars denote the trinity of government: legislative, executive, and judicial. Each star in the bend is given the heraldic value of thirteen which signifies the thirteen original colonies of the United States, and the cumulative numerical value of the three stars indicates that North Dakota was the thirty-ninth state admitted to the Union. The stars also allude to the history of the territory under three foreign flags. Three stars are borne upon the coat of arms of Meriwether Lewis of the Lewis and Clark expedition and also on the coat of arms of Lord Selkirk, head of the first permanent settlement in this state. The fleur-de-lis alludes to LaVerendrye, a French explorer who was the first known white man to visit the territory of this state. The blue and gold wreath in the crest reflects the history of the territory as part of the Louisiana purchase. The crest which shall constitute the military crest of the state of North Dakota is a motif taken from the state seal and to the Sioux Indian tribes signifies mighty warriors.

Source:

S.L. 1957, ch. 330, § 2; R.C. 1943, 1957 Supp., § 54-4102.

54-41-03. Authorized use.

The coat of arms of this state may be used in a manner consistent with the respect and dignity due a state coat of arms and its symbolic values by the following persons, organizations, and agencies:

  1. The governor of North Dakota.
  2. The North Dakota national guard.
  3. Departments and agencies of the state of North Dakota.
  4. North Dakota veterans organizations.
  5. Officially recognized North Dakota educational institutions, systems, or divisions thereof.
  6. Recognized North Dakota patriotic organizations.
  7. The legislative assembly.

Source:

S.L. 1957, ch. 330, § 3; R.C. 1943, 1957 Supp., § 54-4103; 2005, ch. 507, § 1.

54-41-04. Employment as motif for color or standard — Use by governor.

When the coat of arms is employed as the motif of a pennant, color, or standard it must be superimposed upon a pennant of green, as identified by cable number 65007, in the center one-third horizontally, and the center two-thirds vertically. The motif must in the main be golden yellow as identified by cable number 65001. The pennant must be fringed by the same golden yellow as the coat of arms. The color cable numbers must be the same as are on file in the office of the quartermaster general of the army, Washington, D.C.

The proportion of the pennant, color, or standard must be as 1 width hoist is to 1.9 fly. When used by the governor the coat of arms upon any pennant, standard, or placard must have a white star embroidered or emblazoned on each of the four corners of the pennant, standard, or placard.

Source:

S.L. 1957, ch. 330, § 4; R.C. 1943, 1957 Supp., § 54-4104.

54-41-05. Unauthorized use — Penalty.

A person may not place or cause to be placed upon the coat of arms of this state any advertisement of any nature; or expose such coat of arms to public view when any advertisement has been attached thereto; or expose to public view for sale or any other purpose or have in that person’s possession for sale, gift, or other purpose, any article of merchandise or receptacle for carrying merchandise upon which the coat of arms of this state has been produced or attached for the purpose of advertising or calling attention to such article. Any person violating the provisions of this section is guilty of an infraction.

Source:

S.L. 1957, ch. 330, § 5; R.C. 1943, 1957 Supp., § 54-4105; S.L. 1975, ch. 106, § 589.

CHAPTER 54-42 North Dakota Merit System Council [Repealed]

[Repealed by S.L. 1997, ch. 461, § 12]

CHAPTER 54-43 Theodore Roosevelt Centennial Commission [Repealed]

[Omitted as a statute not of a general and permanent nature]

CHAPTER 54-44 Office of Management and Budget

54-44-01. Responsibility of the office of management and budget.

The office of management and budget is to be a central authority, vested with the control and supervision of the fiscal administration of the executive branch of the government, and is directly responsible to the governor. The office of the state auditor has the primary responsibility of conducting a true independent postaudit of all the executive departments and agencies. The responsibility of collecting additional taxes is consolidated and vested in the office of the state tax commissioner.

This chapter must be liberally construed in a manner which will implement this section.

Source:

S.L. 1959, ch. 372, § 1; 1981, ch. 534, § 5.

Notes to Decisions

Constitutionality of Education Funding.

Although no one of the various statutes for distributing funding for primary or secondary education, by itself, is unconstitutional, nor does the constitution require equal dollar funding per pupil throughout the state, the impact of the distribution of funding does not bear a close correspondence to the goals of providing an equal educational opportunity and of supporting elementary and secondary education from state funds based on educational costs per pupil; therefore, the overall impact of the entire statutory method for distributing funding for education in North Dakota is unconstitutional. Bismarck Pub. Sch. Dist. #1 v. State, 511 N.W.2d 247, 1994 N.D. LEXIS 26 (N.D. 1994).

54-44-02. State office of management and budget.

There is an office of management and budget vested with the duties, powers, and responsibilities necessary to supervise and administer the fiscal transactions of the various state departments, agencies, boards, and commissions.

Source:

S.L. 1959, ch. 372, § 1.

54-44-03. Director of the office of management and budget.

There must be a director of the office of management and budget who must be appointed by and serve at the will of the governor. The salary of the director must be set by the governor within the limits of the amount appropriated for salaries by the legislative assembly, and the director and other employees of the office must be reimbursed for expenses incurred in carrying out the duties of their office at the same rate and in the same manner as other state officials. The director is empowered to adopt rules, not inconsistent with law or rules established by the governor, for the administration of the office of management and budget, the conduct of its employees, the distribution and performance of its business, and the custody, use, and preservation of the records, documents, and property pertaining thereto. The director is empowered to set up such divisions or other internal organization within the office that the director determines necessary in order to efficiently carry out the duties, powers, and responsibilities of the office.

Source:

S.L. 1959, ch. 372, § 1; 1981, ch. 535, § 16; 1999, ch. 113, § 18.

54-44-04. Powers and duties of the director of the office of management and budget.

The director of the office of management and budget, or such subordinate officer as the director shall designate:

  1. Shall examine the budget affecting the legislative and judicial branches of the state government, but only for the purpose of determining the sufficiency of funds to meet the contemplated expenditures of these branches of state government or their officers or agencies.
  2. Shall keep the general accounts, reflecting for each fund the resources and balance, together with current revenues and expenditures, and shall provide for an accrual accounting system.
  3. Shall, acting as director of the office of the budget, process all claims for submittal to the office of management and budget, which may conduct the preaudit of all claims from the executive branch of the government before payment and the director shall conduct the current audit of all revenues, which must include the supervision of the collection of all moneys due the state.
  4. Except as otherwise provided by law, shall prepare warrants for payment of all claims.
  5. May, in anticipation of federal revenues to be received within fifteen days, prepare warrants to be signed by the state auditor in payment of duly authorized vouchers even though funds at such time do not exist to honor the warrants. Warrants so issued are payable by the state treasurer out of any funds in the treasurer’s hands other than sinking funds or funds dedicated by the Constitution of North Dakota for other purposes.
  6. Is vested with the duties, powers, and responsibilities involved in the development and installation of financial records and procedures for all state departments and agencies.
  7. Shall coordinate the development of accounting and financial related systems.
  8. Shall create an accounting manual and provide sufficient training of current and potential users concerning the functions and use of a statewide accounting and reporting system.
  9. Shall provide for the maintaining of accounting records which will identify the revenues and expenditures of the state in accordance with the requirements of the state’s central accounting system.
  10. Shall provide for expenditures from general and special fund appropriations to be made in accordance with the requirements of the state’s central accounting system.
  11. May provide for federal fund receipts and disbursements to be deposited and disbursed from a state federal fund in accordance with the requirements of the state’s central accounting system.
  12. Shall conduct such interval audits of accounts in the several departments of the state as the director deems necessary.
  13. Shall issue current reports to administrative officials concerning the status of revenue, expenditures, and appropriation accounts, and shall make periodic financial reports to the governor, administrative officials, the legislative assembly, and the public.
  14. Shall prepare on an annual basis comprehensive financial statements of the state of North Dakota.
  15. Shall, when requested, give information in writing to either house of the legislative assembly relating to the fiscal affairs of the state or to the administration of the office of management and budget.
  16. Shall submit to the governor at the close of each business day, or at such times as the governor may request, a report showing the current condition of each fund and appropriation.
  17. Shall keep an account between the state and state treasurer, and charge the state treasurer therein with the balance in the treasury when the treasurer came into office, and with all moneys received by the state treasurer, and credit the treasurer with all warrants drawn on and paid by the treasurer.
  18. Is vested with the duties, powers, and responsibilities involved in the operation of a centralized purchasing service.
  19. Shall maintain and operate such supply rooms as may be found desirable to supply the several departments with office supplies and other commonly used commodities; however, this subsection may not be construed as authorizing the establishment of a warehousing system.
  20. Shall distribute federal and state surplus property pursuant to sections 54-44-04.5 and 54-44-04.6.
  21. Shall establish and operate a central duplicating service and central mechanical or electronic data processing facilities.
  22. Shall perform such other duties as are or may be prescribed by law.
  23. Shall account for and monitor all funds received by the state from any tobacco settlement dollars described in section 54-27-25 and all associated settlements and related funds and shall report to the budget section of the legislative management on the status of such funds, settlements, offsets, and net resulting revenues and any other related information the budget section requires.
  24. Shall prepare and submit to the legislative council by October 1, 2010, a report including the location, expenses, and square footage requirements of all facilities occupied by each state agency. The report must include recommendations for relocation of any entity to achieve improvements in service to the public along with optimal efficiencies in usage of space and cost. The report must include recommendations within the master plan for construction of buildings on the capitol grounds.
  25. Shall prepare and submit a quarterly report to the legislative management of each executive branch agency that gives any full-time state employee salary increases between April 1, 2021, and June 30, 2023, which cumulatively are fifteen percent or more over the employee’s base salary as of March 31, 2021. The report must include the name of each employee receiving the increase and any relevant salary information.

Source:

S.L. 1959, ch. 372, § 1; 1963, ch. 346, § 67; 1965, ch. 358, § 20; 1969, ch. 452, § 1; 1973, ch. 403, § 51; 1975, ch. 466, § 54; 1979, ch. 541, §§ 1, 2; 1979, ch. 560, § 1; 1979, ch. 568, § 10; 1981, ch. 1, §§ 9, 10; 1981, ch. 537, § 1; 1983, ch. 555, § 5; 1991, ch. 609, § 1; 1999, ch. 461, § 2; 2009, ch. 482, § 98; 2009, ch. 506, § 1; 2021, ch. 15, § 30, eff July 1, 2021.

Cross-References.

Director of office of management and budget ex officio director of the budget, see N.D.C.C. § 54-44.1-02.

State purchasing practices, see N.D.C.C. ch. 54-44.4.

Notes to Decisions

Institutions Under Board of Administration.

This chapter did not relieve the board of administration (predecessor to director of institutions) of all responsibility for overseeing accounts and purchases of institutions under its control; rather, the department of accounts and purchases (predecessor to office of management and budget) is to work through the board of administration with respect to such institutions. State ex rel. Joos v. Guy, 125 N.W.2d 468, 1963 N.D. LEXIS 132 (N.D. 1963).

54-44-04.1. The director of the office of management and budget shall have authority to withhold or deduct certain amounts from employees’ compensation.

The director of the office of management and budget, in addition to other deductions or withholdings authorized or permitted by law, is authorized to withhold or deduct from the employees’ monetary compensation such amounts as may be determined by the employer and employees to participate in tax-favored or tax-sheltered annuity programs which are authorized by the federal Internal Revenue Code.

Source:

S.L. 1969, ch. 453, § 1.

54-44-04.2. Unemployment compensation assessments to departments and institutions.

Beginning July 1, 1979, all departments and institutions of the state of North Dakota shall pay to the office of management and budget one percent of the first six thousand dollars of each employee’s earnings. Such assessments must be paid to the office of management and budget in accordance with guidelines established by the office of the budget, from the general fund and special funds appropriated for salaries and wages to the individual departments and institutions. The moneys received from such assessments must be deposited by the office of management and budget into a fund for the purpose of paying unemployment compensation claims. The director of the office of management and budget may decrease or suspend the assessments provided for in this section upon determination that the funds deposited pursuant to this section are sufficient to offset anticipated obligations.

Source:


S.L. 1979, ch. 582, § 2; N.D.C.C. § 54-44-04.3.

54-44-04.3. Appropriation of unemployment compensation assessments. [Repealed]

Repealed by S.L. 1989, ch. 116, § 7.

54-44-04.4. Payment of unemployment compensation claims.

The office of management and budget shall quarterly reimburse job service North Dakota for the amount of actual claims paid by job service North Dakota to eligible recipients previously employed by state departments and institutions. Each department and institution shall verify and certify the validity of each unemployment claim prior to the reimbursement of funds to job service North Dakota.

Source:


S.L. 1979, ch. 58, § 4; N.D.C.C. § 54-44-04.5; S.L. 1989, ch. 116, § 6.

54-44-04.5. Federal surplus property — Office of management and budget responsible for distribution — Powers and duties of director.

  1. The office of management and budget is responsible for the fair and equitable distribution, through donation, of all federal surplus property transferred to the state in accordance with the Federal Property and Administrative Services Act of 1949, as amended [63 Stat. 378; 40 U.S.C. 484(j)], hereinafter referred to as the federal Act.
  2. The director of the office of management and budget, or the director’s designee:
    1. May receive, investigate, and make recommendations on applications for federal surplus property available under the federal Act.
    2. May acquire any federal surplus property transferred to the state under the federal Act.
    3. May distribute any federal surplus property pursuant to the federal Act to:
      1. Any public agency for use in carrying out or promoting for the residents of a given political subdivision one or more public purposes; or
      2. Nonprofit educational institutions, public health institutions, or organizations which are exempt from taxation under section 501 of the federal Internal Revenue Code, for purposes of education or public health or research for those purposes.
    4. May store the federal surplus property.
    5. Shall develop, submit, and implement a state plan of operation for distribution of federal surplus property and comply with the federal Act and rules and regulations adopted thereunder. Provided, the director may continue the state plan of operation developed by the department of public instruction.
    6. May cooperate and enter into agreements with other surplus property agencies and federal agencies to screen and acquire surplus property and exchange property, facilities, personnel, and services.
    7. May provide information and assistance for acquiring federal surplus property to entities listed in subdivision c.
    8. May assess and collect service charges from participating recipients to cover direct and reasonable cost of services under this section. The service charges must be deposited with the state treasurer in a surplus property special fund and used pursuant to the federal Act. The state treasurer shall credit all interest earned to the fund if the director requests the state treasurer to invest portions of the fund.
    9. Adopt rules and take other action necessary to distribute federal surplus property pursuant to the federal Act.
  3. The director of the office of management and budget or the director’s designee may purchase available federal property under applicable federal property management regulations for distribution according to this section.

Source:

S.L. 1981, ch. 537, § 2; 1999, ch. 474, § 9.

54-44-04.6. State surplus property — Department heads to inform director — Disposition of property — Proceeds — Exchange of property.

  1. The person in charge of any department, agency, or institution of the state shall inform the director of the office of management and budget or the director’s designee whenever that department, agency, or institution possesses property surplus to its needs, whether originally obtained with state or other funds.
  2. Political subdivisions may provide their surplus property to the office of management and budget for disposition according to subsections 3, 4, and 5.
  3. Surplus property must be transferred at fair market value to state agencies, political subdivisions, and nonprofit organizations eligible to receive federal surplus property under the Federal Property Administrative Services Act of 1949, as amended. Eligible organizations must be notified of the availability of property on a regular basis.
  4. If not disposed of under subsection 3, then by sale on sealed bids or at public auction to the highest and best bidder for property valued at more than three thousand dollars, with no money deposit required prior to sale, or by sealed bids, public auction, or negotiation at fair value for property valued at less than three thousand dollars. The office of management and budget may establish a program for the recycling and disposal of surplus property determined to be unsalable and may assess and collect service charges from the department, agency, institution, or political subdivision from which the property was received to cover direct and reasonable costs of this service.
  5. All proceeds received from the transfer, sale, recycling, or disposal of surplus property must be deposited with the state treasurer for deposit in the surplus property operating fund. For each piece of property sold for less than three thousand dollars, all proceeds must be retained in the surplus property operating fund unless the office of management and budget determines the sale proceeds are subject to special requirements for distribution. For each piece of property sold for three thousand dollars or more, the office of management and budget shall transfer to the agency from which the property was received an amount equal to the proceeds of the sale less the administrative expenses of the sale. The agency shall deposit the proceeds into the fund from which the property was originally purchased. At the end of each biennium, the office of management and budget shall transfer all funds in the surplus property operating fund that exceed the amount needed for operating the surplus property function for one year to the general fund.

Source:

S.L. 1981, ch. 537, § 3; 1989, ch. 657, § 1; 1991, ch. 610, § 1; 1999, ch. 37, § 35; 1999, ch. 474, § 10; 2003, ch. 490, § 1; 2009, ch. 507, § 1.

54-44-04.7. Responsibility to administer unassigned statutory functions of state government.

The office of management and budget shall administer all statutory functions assigned to the executive branch of state government but not statutorily placed with any specific state entity.

Source:

S.L. 1981, ch. 534, § 6.

54-44-04.8. Purchase of state motor vehicles. [Repealed]

Repealed by S.L. 1991, ch. 611, § 1.

54-44-04.9. Financial reporting.

To ensure that sufficient information is provided to the office of management and budget for preparing an annual comprehensive financial statement and to ensure that the statewide accounting system and budget system are compatible, the person in charge of any department, agency, board, commission, college, university, or institution shall report all revenues and expenditures through the use of the statewide accounting system. The revenues and expenditures referred to in this section include all funds, including funds not appropriated.

Notwithstanding any other provision of law, if any statutory provision provides for maintenance of a special fund in the state treasury the office of management and budget may require that it not be maintained as a separate fund in the state treasury but that it be maintained as a separate account for accounting purposes.

Any department, agency, board, commission, college, university, or institution that is not presently using the statewide payroll system shall provide the director with current salary information for all permanent and part-time employees when required to do so, in the format designed by the director.

Source:

S.L. 1987, ch. 646, § 1; 1991, ch. 612, § 1.

54-44-05. Warrants — Numbered — Show funds on which drawn — Not drawn unless authorized.

Warrants drawn by the office of management and budget and signed by the state auditor on the state treasurer must be numbered consecutively in the order in which they are drawn. Every warrant must be drawn upon the fund out of which it is payable. A warrant may not be drawn by the office of management and budget and signed by the state auditor unless authorized by law, and unless there are funds in the treasury applicable to the payment thereof to meet the same. In case of an emergency, and in anticipation of taxes already levied and in the process of collection, the office of management and budget may prepare warrants to be signed by the state auditor in payment of duly authorized vouchers even though funds at such time do not exist to honor the warrants. Warrants so issued shall be payable by the state treasurer out of any funds in the state treasurer’s possession other than sinking funds or funds dedicated by the Constitution of North Dakota for other purposes.

Source:

S.L. 1959, ch. 372, § 1; 1965, ch. 345, § 2.

54-44-06. Duties as to school fund. [Repealed]

Source:

S.L. 1959, ch. 372, § 1; Repealed by 2015, ch. 49, § 36, eff August 1, 2015.

Effective Date.

The repeal of this section by section 36 of chapter 49, S.L. 2015 became effective July 1, 2015.

54-44-07. Office to set up account against person who fails to render account.

Whenever any person has received moneys or has moneys or other personal property which belongs to the state by escheat or otherwise, or has been entrusted with the collection, management, or disbursement of any moneys, bonds, or interest accruing therefrom, belonging to or held in trust by the state, and fails to render an account thereof to and make settlement with the office of management and budget within the time prescribed by law, or when no particular time is specified, fails to render such account and make such settlement, or fails, within twenty days after request by the office of management and budget to pay into the state treasury any money belonging to the state, the office of management and budget shall state an account with such person, charging interest at the rate of twelve percent per annum from the time of the failure. A copy of such account is prima facie evidence in any suit of the things therein stated. If the office of management and budget, for want of information, cannot state an account, that fact may be alleged and the amount of money or other property which is due or which belongs to the state may be stated generally.

Source:

S.L. 1959, ch. 372, § 1.

54-44-08. Director to institute suits in name of state.

The director of the office of management and budget shall institute suit in the name of the state against:

  1. Officials for all official delinquencies in relation to the assessment, collection, and payment of the revenue.
  2. Persons who by any means have become possessed of public moneys or property and who fail or neglect to pay for or deliver the same.
  3. All persons indebted to the state.

Source:

S.L. 1959, ch. 372, § 1.

54-44-09. Supplies for institutions under control of the office of management and budget. [Repealed]

Repealed by S.L. 1999, ch. 474, § 18.

54-44-10. Legislative inspection of books of office of management and budget.

Whenever required the office of management and budget shall submit its books, accounts, and vouchers to the inspection of the legislative assembly, or any committee thereof authorized to request such documents.

Source:

S.L. 1959, ch. 372, § 1.

54-44-11. Office’s operating funds creation — Continuing appropriation.

  1. The office of management and budget shall establish a state purchasing operating fund to be used for the procurement and maintenance of an inventory of equipment and supplies for the state departments and agencies. Funds in the state purchasing operating fund are appropriated on a continuing basis and may be spent by the office of management and budget for the procurement and maintenance of an inventory of equipment and supplies as provided in this subsection. The director of the office of management and budget shall transfer any unobligated balance in the fund, in excess of one hundred twenty-five thousand dollars, to the state general fund at the end of each fiscal year.
  2. The office of management and budget shall establish a state printing operating fund to be used for the procurement and maintenance of an inventory of printing equipment and supplies for the state departments and agencies.
  3. The office of management and budget shall establish a state personnel training and development operating fund to be used for the coordination of employee training and career development data, supplies, equipment, and services and for providing or arranging necessary training and development programs to state departments and agencies. Funds in the state personnel training and development operating fund are appropriated on a continuing basis to the office of management and budget and may be spent for the purposes identified in this subsection. Any surplus in this fund in excess of one hundred thousand dollars on June thirtieth of each year must be transferred to the state general fund.
  4. Each office, agency, or institution provided with printing or personnel training services, unless exempted by law, shall pay to the office of management and budget a proportionate share of the cost of such service as determined by the director of the office of management and budget, based on actual costs and actual usage. The amounts paid to the office of management and budget by the various offices, agencies, and institutions must be deposited in the appropriate operating fund and must be expended in accordance with legislative appropriations.

Source:

S.L. 1959, ch. 214, § 2; 1967, ch. 392, § 1; 1969, ch. 454, § 7; 1975, ch. 486, § 1; 1979, ch. 561, § 1; 1981, ch. 534, § 7; 1981, ch. 538, § 1; 1983, ch. 569, § 1; 1987, ch. 562, § 7; 1989, ch. 642, § 2; 1991, ch. 614, § 1; 1991, ch. 615, § 1; 1997, ch. 459, § 1; 1999, ch. 470, § 1; 1999, ch. 483, § 22; 2021, ch. 15, § 31, eff July 1, 2021.

54-44-12. Deposit and disbursement of funds of occupational and professional boards — Appropriation.

All occupational and professional boards, associations, and commissions created by law shall deposit all fees and other moneys received in any bank selected by the majority vote of the governing body of the board, association, or commission. Checks may be drawn against the bank account, opened pursuant to this section, for the authorized expenditures of the board, association, or commission on the signature or signatures of the person or persons authorized to so act by the governing body. All moneys in accounts opened pursuant to this section are hereby appropriated for the use of the occupational or professional board, association, or commission opening the account.

Source:

S.L. 1971, ch. 510, § 14.

54-44-13. Failure of political subdivisions to repay natural disaster overpayments — Office of management and budget authorized to withhold funds.

Whenever an overpayment made to any state political subdivision under the Disaster Relief Act of 1970 [Pub. L. 91-606; 84 Stat. 1744], and all acts amendatory and supplemental thereto, is not repaid by the following July first, the state office of management and budget shall:

  1. Upon certification from the governor’s natural disaster representative that a political subdivision is delinquent in repaying such overpayment, withhold all funds, grants-in-aid, tax shares, and other similar moneys due the subdivision from the state until the subdivision repays either the federal or state government.
  2. Cease to withhold funds when the governor’s natural disaster representative certifies that the subdivision has repaid the overpayment.

Source:

S.L. 1971, ch. 511, § 1.

Note.

The Disaster Relief Act of 1974 (P.L. 93-288, 88 Stat. 143, 42 USCS § 5121 et seq.) substantially repealed the Disaster Relief Act of 1970 referred to in this section.

54-44-14. Director may sell, lease, exchange, or transfer title or use to all or part of the san haven properties.

The director of the office of management and budget, with the approval of the governor, is authorized to sell, lease, exchange, or transfer title or use of any part or all of the san haven facilities and properties, located in sections nineteen, twenty-nine, and thirty, township one hundred sixty-two north, range seventy-two west, located in Rolette County, North Dakota, to the federal government or any public or private agency, organization, or business enterprise or any worthy undertaking, under the following provisions:

  1. The transaction is exempt from the provisions of sections 54-01-05.2 and 54-01-05.5.
  2. All required legal documents, papers, and instruments in any transaction must be reviewed and approved as to form and legality by the attorney general.
  3. Any funds realized by any transaction must be deposited in the state’s general fund.

Source:

S.L. 1991, ch. 616, § 1.

54-44-15. Reimbursement from institutions of higher education for state’s share of default costs.

  1. If the state is required to pay a fee to the United States secretary of education to offset the secretary’s default costs relating to an institution of higher education located in North Dakota with a cohort default rate exceeding twenty percent for the most recent fiscal year for which rates are calculated, the director of the office of management and budget, or the director’s designee, shall:
    1. Provide notice by certified mail to each institution of higher education in this state that participates in the federal family education loan program or the federal direct student loan program, under title IV of the Higher Education Act of 1965 [Pub. L. 89-329; 79 Stat. 1245; 20 U.S.C. 1070 et seq.] of any assessment necessary to reimburse the state for the institution’s proportionate share of any fee charged to the state by the secretary of education under the Higher Education Act of 1965 [Pub. L. 89-329; 79 Stat. 1230; 20 U.S.C. 1001 et seq.].
    2. The amount of reimbursement due from any institution must be based upon a fee structure approved by the United States secretary of education which has been provided to the director of the office of management and budget by the student loan guarantee agency. The student loan guarantee agency shall submit the fee structure to the director of the office of management and budget prior to implementation. The fee charged must be determined based upon the fee structure established by the student loan guarantee agency and must be based on the institution’s cohort default rate and the state’s risk of loss as provided by section 4201 of the Omnibus Budget Reconciliation Act of 1993 [Pub. L. 103-66; 107 Stat. 370; 20 U.S.C. 1078(n)].
  2. The student loan guarantee agency may adopt rules to implement this section. The rules may provide for a process and standards to exempt an institution from reimbursement or allow an adjustment of the required reimbursement if the institution demonstrates that exceptional mitigating circumstances contributed to the cohort default rate. Prior to implementing any exemption process and standards, the student loan guarantee agency shall obtain comments on the exemption process and standards from the director of the office of management and budget. Chapter 28-32 does not apply to rules adopted under this section.
  3. If any institution fails to reimburse the office of management and budget within sixty days of receiving an assessment under subsection 1, the amount of the assessment plus interest on the assessment at the rate of nine percent from the date of receipt of the assessment and reasonable collection costs, including attorney’s fees, constitutes a lien against all assets of the institution. The lien has priority over all other liens and encumbrances acquired after the date the institution was notified of the required reimbursement by the office of management and budget. The state may enforce any lien created under this subsection against real property in the manner provided in chapter 35-22, against personal property in the manner provided in chapter 32-20, or against the owner of any institution by garnishment in the manner provided in chapter 32-09.1, except that the restrictions of subsection 1 of section 32-09.1-03 do not apply to a garnishment commenced to collect an assessment established under this section.

Source:

S.L. 1995, ch. 521, § 1.

54-44-16. Oil and gas tax revenue put options.

Upon request of the director of the office of management and budget and upon approval by the industrial commission, the state investment board may purchase oil put options for the office of management and budget. The purchase of put options must be designed to offset reduced state general fund oil and gas tax revenues due to oil and gas prices falling below selected levels. Put options may be purchased only at such times that the purchase assures that oil tax revenues plus the revenues from the sale of put options will be in excess of the oil tax revenues estimated for that level of production by the most recently adjourned legislative assembly. The office of management and budget shall report any purchases of put options to the budget section of the legislative management.

Source:

S.L. 2003, ch. 491, § 1; S.L. 2005, ch. 42, § 34; 2009, ch. 482, § 98.

Note.

Pursuant to 2003 S.L. 491, section 3, this section was to expire on June 30, 2005. However, 2003 S.L. 491, section 3 was repealed by 2005 S.L. 42, section 34.

54-44-17. State property and institution alternative use grant program.

State institutions may work with local communities and stakeholders to develop proposed property or institution alternative use plans, including partnerships with private industry and not-for-profit organizations, to be reviewed by the office of management and budget. In accordance with the provisions of the community and institution approved plan, the office of management and budget shall introduce any statutory and constitutional changes necessary to implement the plan and request funding for the grant under this section for consideration by the legislative assembly. Subject to approval of all necessary statutory and constitutional changes and necessary legislative appropriations, the office of management and budget shall provide a grant up to the present value of the total estimated savings to the state for the next ten years resulting from converting the property or institution to an alternative use. The office of management and budget shall consider the estimated cost to the state of continuing to provide the service of the institution or property to state residents when calculating the estimated savings to the state. The office of management and budget shall use the rate of interest earned on state funds deposited at the Bank of North Dakota for calculating the present value of the estimated savings to the state. The grant is to assist the institution and community in the transition to an alternative use.

Source:

S.L. 2009, ch. 508, § 1.

CHAPTER 54-44.1 Office of the Budget

54-44.1-01. Definition.

As used in this chapter, unless the context otherwise requires, the term “budget unit” means a department, institution, board, commission, agency, or other unit of government for which separate or distinct appropriations are made.

Source:

S.L. 1965, ch. 358, § 1.

54-44.1-02. Office of the budget — Director — Employees — Powers.

The office of the budget is hereby established in the office of management and budget, for the purpose of promoting economy and efficiency in the fiscal management of the state government. The director of the office of management and budget is ex officio director of the budget.

The director of the budget shall appoint a budget analyst who must hold a baccalaureate degree from a recognized institution of higher learning and the appointment must be based upon the qualifications of eligible persons. The position of budget analyst is not a classified position and the budget analyst shall serve at the pleasure of the director of the budget. The budget director shall employ such other professional, technical, and clerical personnel as the director deems necessary to carry out the duties prescribed in this chapter and shall fix the salary of all employees within the office of the budget within the limits of the legislative appropriations. All personnel within the office of the budget must be allowed their actual and necessary travel expenses at the same rate as for other employees of the state.

Source:

S.L. 1965, ch. 358, § 2; 1995, ch. 512, § 2.

54-44.1-03. Powers and duties of the director of the budget.

The director of the budget, or such subordinate officer as the director of the budget shall designate, shall:

  1. Be vested with the duties, powers, and responsibilities involved in securing budget estimates and work programs from the several departments and agencies of the state government.
  2. Be vested with the duties, powers, and responsibilities involved in the preparation of revenue and fixed expense estimates.
  3. Develop financial policies and plans as the basis for budget recommendations to the legislative assembly, and prepare detailed documents in accordance with such financial policies and plans for presentation to the legislative assembly.
  4. Coordinate the fiscal affairs and procedures of the state to assure the carrying out of the financial plans and policies approved by the legislative assembly.
  5. Exercise continual control over the execution of the budget affecting the departments, institutions, and agencies of the executive branch of the state government involving approval of all commitments for conformity with the program provided in the budget, frequent comparison of actual revenues and budget estimates, and control of the rate of expenditures through a system of semiannual, quarterly, or monthly allotments.
  6. Investigate, examine, and make exhaustive studies:
    1. Of the structure and operation of the entire executive branch of government and of every office, institution, and agency thereof.
    2. Of all the functions, duties, and services of all executive branch offices, departments, institutions, industries, boards, bureaus, and commissions.
    3. Of all the books, records, and methods of accounting of each office or agency of the executive branch to ascertain and determine whether their policies, practices, and systems of accounting are sound, necessary, practical, and efficient.
  7. Develop a long-term capital improvements budget for consideration by the legislative assembly.
  8. Have the authority to procure from the various officers, departments, agencies, and employees such information as may be necessary for the preparation and execution of the budget.
  9. Provide such assistance as the legislative assembly may request and be available to assist its appropriations committees with any needed information or material and make its records and information available at all times to the legislative assembly and its committees and designees.
  10. Perform all other necessary duties to carry out the provisions of this chapter and of chapter 54-14.

Source:

S.L. 1965, ch. 358, § 3; 1973, ch. 110, § 10.

54-44.1-04. Budget estimates of budget units filed with the office of the budget — Deadline.

The head of each budget unit, not later than July fifteenth of each year next preceding the session of the legislative assembly, shall submit to the office of the budget, estimates of financial requirements of the person’s budget unit for the next two fiscal years, on the forms and in the manner prescribed by the office of the budget, with such explanatory data as is required by the office of the budget and such additional data as the head of the budget unit wishes to submit. The estimates of financial requirements for budget units under the control of the state board of higher education must be made using the same forms, supporting information, and documentation as other budget units. Any request for a new full-time or part-time permanent position included in a budget unit’s estimate of its financial requirements for the next two fiscal years must include documentation justifying the need for the position. The documentation must describe the circumstances resulting in the need for the position and identify the number of hours the position will be involved in specific types of activities and the anticipated outcomes of the activities. The estimates so submitted must bear the approval of the board or commission of each budget unit for which a board or commission is constituted. The director of the budget may extend the filing date for any budget unit if the director finds there is some circumstance that makes it advantageous to authorize the extension. If a budget unit has not submitted its estimate of financial requirements by the required date or within a period of extension set by the director of the budget, the director of the budget shall prepare the budget unit’s estimate of financial requirements except the estimate may not exceed ninety percent of the budget unit’s previous biennial appropriation. The director of the budget or a subordinate officer as the director shall designate shall examine the estimates and shall afford to the heads of budget units reasonable opportunity for explanation in regard thereto and, when requested, shall grant to the heads of budget units a hearing thereon which must be open to the public.

Source:

S.L. 1965, ch. 358, § 4; 1981, ch. 539, § 1; 2001, ch. 28, § 25; 2003, ch. 3, § 35; 2005, ch. 522, § 1; 2007, ch. 477, § 1; 2009, ch. 157, § 2; 2011, ch. 427, § 1; 2013, ch. 429, § 1; 2015, ch. 3, § 21, eff July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 21 of chapter 3, S.L. 2015 became effective July 1, 2015.

The 2013 amendment of this section by section 1 of chapter 429, S.L. 2013 became effective August 1, 2013.

Note.

The 2011 amendment to this section further extended the expiration date for the amendments by S.L. 2001, ch. 28, § 25 from July 31, 2011, to July 31, 2013.

Cross-References.

Budget of North Dakota firemen’s association, see N.D.C.C. § 18-03-05.

Budget of state highway department, see N.D.C.C. § 24-02-09.

DECISIONS UNDER PRIOR LAW

Duty to File Statements.

Heads of state hail insurance fund, state bonding fund, state fire and tornado fund, and workmen’s compensation fund had duty of filing statements of funds needed as prescribed by former section 54-15-05. LANGER v. STATE, 69 N.D. 129, 284 N.W. 238, 1939 N.D. LEXIS 137 (N.D. 1939).

54-44.1-05. Federal aid budget requests — Filed with the office of the budget.

Every agency of the state government when making requests for budgets to be submitted to the federal government for funds, equipment, material, or services shall have such request or budget filed in the office of the budget before submitting it to the proper federal authority. When such federal authority has approved the request or budget, in whole or in part, the agency of the state government shall resubmit it to the office of the budget for recording before any allotment or encumbrance of the federal funds can be made.

Source:

S.L. 1965, ch. 358, § 5.

Cross-References.

Budget director to receive quarterly reports from treasurer of agricultural college, see N.D.C.C. § 15-12-06.1.

54-44.1-06. Preparation of the budget data — Contents.

The director of the budget, through the office of the budget, shall prepare budget data which must contain and include the following:

  1. Summary statements of the financial condition of the state, accompanied by the detailed schedules of assets and liabilities as the director of the budget determines desirable, which must include the following:
    1. Summary statements of fund balances and assets showing in detail for each fund the surplus or deficit at the beginning of each of the two fiscal years of the previous biennium and the first fiscal year of the present biennium, the actual revenue for those years, the total appropriations for the previous and present biennium, and the total expenditures for those fiscal years; and
    2. Similar summary statements of the estimated fund balances and assets for the current fiscal year and each of the fiscal years of the next biennium.
  2. Statements of actual revenue for the previous biennium, the first year of the present biennium, and the estimated revenue of the current fiscal year and of the next biennium, and a statement of unappropriated surplus expected to have accrued in the state treasury at the beginning of the next fiscal year. The statement of unappropriated surplus for the general fund must reflect any projected deficiency appropriations relating to expenditures from the general fund for the present biennium. The statements of revenue and estimated revenue must be classified by sources and by budget unit collecting them. Existing sources of revenue must be analyzed as to their equity, productivity, and need for revision, and any proposed new sources of revenue must be explained.
  3. Summary statements of expenditures of the previous biennium and first year of the present biennium, itemized by budget units and classified as prescribed by the director of the budget.
  4. Detailed comparative statements of expenditures and requests for appropriations by funds, budget units and classification of expenditures, showing the expenditures for the previous biennium, the first fiscal year of the present biennium, the budget of the current biennium, and the governor’s recommendation for appropriations for each budget unit for the next biennium, all distributed according to the prescribed classification of expenditures. Following the lists of actual and proposed expenditures of each budget unit there must be a brief explanation of the functions of the unit and comments on its policies and plans and on any considerable differences among the amounts recommended, with any descriptive, quantitative, comparative, and other data as to work done, unit costs, and like information as may be considered necessary or desirable. For capital outlay expenditures involving construction projects to be completed in two or more fiscal years, there must be shown the total estimated cost of each such project and the amount thereof recommended to be appropriated and expended in each ensuing fiscal year until completion of the project. Capital outlay needs may be projected for at least two years beyond the period covered by the budget. The detailed comparative statements of budget units under the control of the state board of higher education must include the same information presented for other budget units.
  5. A detailed statement showing the estimate of all moneys required to be raised or appropriated for the payment of interest upon the funded debt of the state and its other obligations bearing interest, and the amount of money required to be contributed in the two next ensuing fiscal years to the general sinking funds maintained for the redemption and payment of the debts of the state.
  6. A summary statement of the unappropriated fund balance estimated to be available at the beginning of the next biennium, and the estimated revenue of the next biennium, as compared with the total recommended amounts of appropriation for all classes of expenditures for the next biennium, and if the total of the recommended expenditures exceeds the total of the estimated resources, recommendations as to how the deficiency is to be met and estimates of any proposed additional revenue.
  7. Drafts of a proposed general appropriations act and special appropriations acts embodying the budget data and recommendations of the governor for appropriations for the next biennium and drafts of such revenues and other acts recommended by the governor for putting into effect the proposed financial plan. The recommended general appropriation for each budget unit must be specified in a separate section of the general appropriations act.
  8. A list of every individual asset or service, excluding real estate, with a value of at least fifty thousand dollars and every group of assets and services comprising a single system with a combined value of at least fifty thousand dollars acquired through a capital or operating lease arrangement or debt financing arrangement by a state agency or institution. The list must include assets or services acquired in the current biennium and anticipated assets or services to be acquired in the next biennium.
  9. The number of permanent full-time employee positions and permanent part-time employee positions authorized for each budget unit for the previous biennium and the current biennium and proposed for the next biennium.
  10. Any other information as the director of the budget determines desirable or as is required by law.

Summary statements may include a comparative consolidated balance sheet showing all the assets and liabilities of the state and the surplus or deficit, as the case may be, at the close of the first fiscal year of the current biennium.

Source:

S.L. 1965, ch. 358, § 6; 1979, ch. 562, § 1; 1995, ch. 515, § 2; 1999, ch. 471, § 1; 2001, ch. 28, § 26; 2003, ch. 3, § 36; 2003, ch. 36, § 22; 2005, ch. 522, § 2; 2007, ch. 477, § 2; 2009, ch. 157, § 3; 2011, ch. 427, § 2; 2013, ch. 429, § 2; 2015, ch. 3, § 22, eff July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 22 of chapter 3, S.L. 2015 became effective July 1, 2015.

The 2013 amendment of this section by section 2 of chapter 429, S.L. 2013 became effective August 1, 2013.

Note.

The 2011 amendment to this section further extended the expiration date for the amendments by S.L. 2001, ch. 28, § 26 from July 31, 2011, to July 31, 2013.

54-44.1-06.1. Contents of capital construction bill.

The office of management and budget shall continue to prepare capital construction budgets and a capital construction bill. All future capital construction bills may only include projects involving bonding. All other capital projects funded with general fund moneys or special funds must be included in the appropriate agency’s appropriation bill.

Source:

S.L. 1995, ch. 52, § 6.

54-44.1-07. Presentation of budget data — How presented to the legislative assembly.

The director of the budget or the director’s designee shall present the budget data information in section 54-44.1-06, except the drafts of acts required by subsection 7 of that section, and make available sufficient copies thereof to the legislative assembly at the organizational session. The drafts of acts required by subsection 7 of section 54-44.1-06 must be submitted to the legislative council within seven days after the day of adjournment of the organizational session. The budget data must be completed and made available to the legislative assembly in such form as may be prescribed by the legislative council. The legislative council shall set the time and place at which such budget data is to be presented.

Source:

S.L. 1965, ch. 358, § 7; 1969, ch. 448, § 26; 1981, ch. 540, § 1; 1989, ch. 632, § 2; 2003, ch. 492, § 1.

DECISIONS UNDER PRIOR LAW

Budget As Official Record.

The budget of appropriations prepared by the auditor was an official record, of which the courts would take judicial notice. State ex rel. Wallace v. Jorgenson, 34 N.D. 527, 159 N.W. 35, 1916 N.D. LEXIS 60 (N.D. 1916).

54-44.1-08. Budget report — Contents — When submitted to legislative assembly.

The official budget report must be transmitted by the governor to all holdover legislators and legislators-elect not later than three days after the commencement of the session of the legislative assembly. Such report is not a third-class item under section 46-02-05. The budget director shall provide for the duplication or other satisfactory reproduction or printing of the official budget report, so as to ensure delivery of same as provided in this section. Such reports must contain the budget and revenue proposals recommended by the governor and the information required in subsections 1, 2, 3, 5, and 6 of section 54-44.1-06 and all other data and information as the governor shall decide. The budget director shall make available any and all information regarding budget data to the governor, the legislative assembly and its designees, legislators, and to the governor-elect as may be requested. The governor may present any additional budget information in any manner to the legislative assembly as the governor may desire.

Source:

S.L. 1965, ch. 358, § 8; 1967, ch. 393, § 1; 1973, ch. 430, § 1.

54-44.1-09. All expenditures must be appropriated.

All expenditures of the state and of its budget units of moneys drawn from the state treasury must be made under authority of biennial appropriations acts, which must be based upon a budget as provided by law, and no money may be drawn from the treasury, except by appropriation made by law as required by section 12 of article X of the Constitution of North Dakota.

Source:

S.L. 1965, ch. 358, § 9.

54-44.1-09.1. Insurance recoveries appropriated.

Any payment to a state budget unit for a loss under chapter 26.1-22 or for any loss covered by any property and casualty insurance is hereby appropriated to that budget unit to be used solely for the repair, rebuilding, or replacement of the destroyed or damaged building, property, or equipment. Insurance proceeds may be used for purposes other than the repair, rebuilding, or replacement of the destroyed property with the approval of the emergency commission or as appropriated by the legislative assembly.

Source:

S.L. 1997, ch. 460, § 1.

54-44.1-10. Payments made pursuant to law only.

No payment may be made and no obligation may be incurred against any appropriation unless such payment or obligation has been authorized as provided by law. Every official authorizing payments in violation of this chapter is subject to the penalties and provisions of chapter 12.1-23.

Source:

S.L. 1965, ch. 358, § 10; 1977, ch. 496, § 1.

54-44.1-11. Office of management and budget to cancel unexpended appropriations — When they may continue. (Effective through July 31, 2023)

Except as otherwise provided by law, the office of management and budget, thirty days after the close of each biennial period, shall cancel all unexpended appropriations or balances of appropriations after the expiration of the biennial period during which they became available under the law. Unexpended appropriations for the state historical society are not subject to this section and the state historical society shall report on the amounts and uses of funds carried over from one biennium to the appropriations committees of the next subsequent legislative assembly. Unexpended appropriations for the North Dakota university system are not subject to this section and the North Dakota university system shall report on the amounts and uses of funds carried over from one biennium to the next to subsequent appropriations committees of the legislative assembly. The chairmen of the appropriations committees of the senate and house of representatives of the legislative assembly with the office of the budget may continue appropriations or balances in force for not more than two years after the expiration of the biennial period during which they became available upon recommendation of the director of the budget for:

  1. New construction projects.
  2. Major repair or improvement projects.
  3. Purchases of new equipment costing more than ten thousand dollars per unit if it was ordered during the first twelve months of the biennium in which the funds were appropriated.
  4. The purchase of land by the state on a “contract for deed” purchase if the total purchase price is within the authorized appropriation.
  5. Purchases by the department of transportation of roadway maintenance equipment costing more than ten thousand dollars per unit if the equipment was ordered during the first twenty-one months of the biennium in which the funds were appropriated.
  6. Authorized ongoing information technology projects.

Office of management and budget to cancel unexpended appropriations - When they may continue. (Effective after July 31, 2023) The office of management and budget, thirty days after the close of each biennial period, shall cancel all unexpended appropriations or balances of appropriations after the expiration of the biennial period during which they became available under the law. Unexpended appropriations for the state historical society are not subject to this section and the state historical society shall report on the amounts and uses of funds carried over from one biennium to the appropriations committees of the next subsequent legislative assembly. The chairmen of the appropriations committees of the senate and house of representatives of the legislative assembly with the office of the budget may continue appropriations or balances in force for not more than two years after the expiration of the biennial period during which they became available upon recommendation of the director of the budget for:

1. New construction projects.

2. Major repair or improvement projects.

3. Purchases of new equipment costing more than ten thousand dollars per unit if it was ordered during the first twelve months of the biennium in which the funds were appropriated.

4. The purchase of land by the state on a “contract for deed” purchase if the total purchase price is within the authorized appropriation.

5. Purchases by the department of transportation of roadway maintenance equipment costing more than ten thousand dollars per unit if the equipment was ordered during the first twenty-one months of the biennium in which the funds were appropriated.

6. Authorized ongoing information technology projects.

Source:

S.L. 1965, ch. 358, § 11; 1979, ch. 563, § 1; 1983, ch. 555, § 6; 2001, ch. 28, § 27; 2003, ch. 3, § 37; 2005, ch. 23, § 6; 2005, ch. 523, § 1; 2005, ch. 524, § 1; 2005, ch. 540, § 1; 2007, ch. 478, § 1; 2009, ch. 157, § 4; 2011, ch. 428, § 1; 2013, ch. 34, § 19; 2015, ch. 3, § 23, eff July 1, 2015; 2017, ch. 28, § 12, eff July 1, 2017; 2019, ch. 3, § 18, eff July 1, 2019; 2021, ch. 31, § 15, eff July 1, 2021.

Effective Date.

The 2015 amendment of this section by section 23 of chapter 3, S.L. 2015 became effective July 1, 2015.

The 2013 amendment of this section by section 19 of chapter 34, S.L. 2013 became effective July 1, 2013.

Note.

The 2015 amendment by section 23 of chapter 3, S.L. 2015, to this section was to extend the expiration date from July 31, 2015 to July 31, 2017.

The 2013 amendment to this section further extended the expiration date for the amendments by S.L. 2001, ch. 28, § 27 from July 31, 2013, to July 31, 2015.

The 2011 amendment to this section further extended the expiration date for the amendments by S.L. 2001, ch. 28, § 27 from July 31, 2011, to July 31, 2013.

Cross-References.

Domestic violence prevention fund not subject to this section, see N.D.C.C. § 14-07.1-15.

Inapplicability to surface mining and reclamation fund, see N.D.C.C. § 38-14.1-39.

Notes to Decisions

Judicial Review.

Any time an allotment is made reducing agency budgets, the actual availability of additional revenues will not be discerned until very late in the biennium, and there is a strong probability that the biennium will end, the thirty-day period specified in this section will run, and the appropriation will lapse and be canceled before a legal challenge in the courts can work its way through the trial and appellate court processes; accordingly, because the inherent nature of the appropriation and allotment process set forth in this chapter virtually assures repetition of this issue without a meaningful opportunity for judicial review, an appeal based upon the failure to transfer funds to meet certain appropriations will not be rendered moot simply because the appropriation had lapsed and been canceled. North Dakota Council of Sch. Adm'rs v. Sinner, 458 N.W.2d 280, 1990 N.D. LEXIS 132 (N.D. 1990).

54-44.1-12. Control over rate of expenditures. [Effective through August 31, 2022]

  1. The director of the budget shall exercise continual control over the execution of the budget affecting the departments and agencies of state government, with the exception of the legislative and judicial branches. Execution means the analysis and approval of all commitments for conformity with the program provided in the budget, frequent comparison of actual revenues and budget estimates, and on the basis of these analyses and comparisons control the rate of expenditures through a system of allotments. The allotment must be made by specific fund and all departments and agencies that receive moneys from that fund must be allotted on a uniform percentage basis except as follows:
    1. The following appropriations may be allotted only to the extent that the allotment can be offset by transfers from the foundation aid stabilization fund:
      1. General fund appropriations to the department of public instruction for state school aid, transportation aid, and special education aid; and
      2. General fund appropriations to the department of career and technical education for grants to school districts.
    2. After allotments of two and one-half percent have been ordered during a biennium, the director of the budget may exempt the following appropriations from up to one percent of an allotment each biennium:
      1. General fund appropriations to the department of corrections and rehabilitation; and
      2. General fund appropriations to the department of human services for direct care programs.
  2. Before an allotment is made which will reduce the amount of funds which can be disbursed pursuant to an appropriation or before an allotment disallowing a specific expenditure is made, the director shall find one or more of the following circumstances to exist:
    1. The moneys and estimated revenues in a specific fund from which the appropriation is made are insufficient to meet all legislative appropriations from the fund.
    2. The payment or the obligation incurred is not authorized by law.
    3. The expenditure or obligation is contrary to legislative intent as recorded in any reliable legislative records, including:
      1. Statements of legislative intent expressed in enacted appropriation measures or other measures enacted by the legislative assembly; and
      2. Statements of purpose of amendment explaining amendments to enacted appropriation measures, as recorded in the journals of the legislative assembly.
    4. Circumstances or availability of facts not previously known or foreseen by the legislative assembly which make possible the accomplishment of the purpose of the appropriation at a lesser amount than that appropriated.

Source:

S.L. 1965, ch. 358, § 12; 1967, ch. 394, § 1; 1987, ch. 647, § 1; 1995, ch. 522, § 1; 1999, ch. 35, § 33; 2015, ch. 423, § 1, eff August 1, 2015; 2017, ch. 368, § 6, eff July 1, 2017; 2017, ch. 394, § 3, eff April 18, 2017.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 423, S.L. 2015 became effective August 1, 2015.

Note.

Section 54-44.1-12 was amended 2 times by the 2017 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 3 of Chapter 394, Session Laws 2017, House Bill 1155; and Section 6 of Chapter 368, Session Laws 2017, Senate Bill 2272.

Notes to Decisions

Constitutionality.

Since the legislature has not given the director of the budget power to make a law, but only the authority to execute the law within the parameters established by the legislature, this section does not constitute an unconstitutional delegation of legislative authority with regard to Article X, Section 12 of the Constitution. North DakotaCouncil of Sch. Adm'rs v. Sinner, 458 N.W.2d 280 (N.D. 1990).

Duty of Director.

This section specifically provides that the director of the budget may make an allotment which reduces available funds for an appropriation if one or more of the four guidelines is met. It does not, however, provide an express or implicit duty upon the director to “unallot” funds if the reason for the allotment subsequently abates. North Dakota Council of Sch. Adm'rs v. Sinner, 458 N.W.2d 280, 1990 N.D. LEXIS 132 (N.D. 1990).

54-44.1-12. Control over rate of expenditures. [Effective September 1, 2022]

  1. The director of the budget shall exercise continual control over the execution of the budget affecting the departments and agencies of state government, with the exception of the legislative and judicial branches. Execution means the analysis and approval of all commitments for conformity with the program provided in the budget, frequent comparison of actual revenues and budget estimates, and on the basis of these analyses and comparisons control the rate of expenditures through a system of allotments. The allotment must be made by specific fund and all departments and agencies that receive moneys from that fund must be allotted on a uniform percentage basis except as follows:
    1. The following appropriations may be allotted only to the extent that the allotment can be offset by transfers from the foundation aid stabilization fund:
      1. General fund appropriations to the department of public instruction for state school aid, transportation aid, and special education aid; and
      2. General fund appropriations to the department of career and technical education for grants to school districts.
    2. After allotments of two and one-half percent have been ordered during a biennium, the director of the budget may exempt the following appropriations from up to one percent of an allotment each biennium:
      1. General fund appropriations to the department of corrections and rehabilitation; and
      2. General fund appropriations to the department of health and human services for direct care programs.
  2. Before an allotment is made which will reduce the amount of funds which can be disbursed pursuant to an appropriation or before an allotment disallowing a specific expenditure is made, the director shall find one or more of the following circumstances to exist:
    1. The moneys and estimated revenues in a specific fund from which the appropriation is made are insufficient to meet all legislative appropriations from the fund.
    2. The payment or the obligation incurred is not authorized by law.
    3. The expenditure or obligation is contrary to legislative intent as recorded in any reliable legislative records, including:
      1. Statements of legislative intent expressed in enacted appropriation measures or other measures enacted by the legislative assembly; and
      2. Statements of purpose of amendment explaining amendments to enacted appropriation measures, as recorded in the journals of the legislative assembly.
    4. Circumstances or availability of facts not previously known or foreseen by the legislative assembly which make possible the accomplishment of the purpose of the appropriation at a lesser amount than that appropriated.

Source:

S.L. 1965, ch. 358, § 12; 1967, ch. 394, § 1; 1987, ch. 647, § 1; 1995, ch. 522, § 1; 1999, ch. 35, § 33; 2015, ch. 423, § 1, eff August 1, 2015; 2017, ch. 368, § 6, eff July 1, 2017; 2017, ch. 394, § 3, eff April 18, 2017; 2021, ch. 352, § 489, eff September 1, 2022.

54-44.1-12.1. Implementation of legislative intent — Legislative objection to execution of budget — Effect of objection.

  1. The budget section of the legislative management may object to any allotment made under section 54-44.1-12, any expenditure of a budget unit, or any failure to make an allotment or expenditure if the budget section determines that the allotment or expenditure or the failure to make an allotment or expenditure is contrary to legislative intent as recorded in any reliable legislative records. The budget section shall file that objection in certified form with the legislative council. The filed objection must contain a concise statement of the budget section’s reasons for the objection.
  2. The legislative council shall attach to each objection a certification of the time and date of the filing of the objection and, as soon as possible, shall transmit a copy of the objection and the certification to the director of the budget and the affected budget unit. The legislative council shall maintain a permanent register of all objections under this section.
  3. Within fourteen days after the filing of an objection, the affected budget unit shall respond in writing to the budget section. After receipt of that response, the budget section may withdraw or modify its objection.
  4. After the filing of an objection, the burden of persuasion is upon the budget unit in any action for judicial review of whether the allotment or expenditure or the failure to make an allotment or expenditure is contrary to law. If the budget unit fails to meet its burden of persuasion, the court shall render judgment against the budget unit for court costs. These court costs must include reasonable attorney’s fees and must be payable from the appropriation of the budget unit.

Source:

S.L. 1995, ch. 522, § 2; 2009, ch. 482, § 80.

54-44.1-13. Budget requests for legislative and judicial branches.

The budget requests and expenditures for the legislative and judicial branches of this state are not subject to the provisions of this chapter and such budget requests must be submitted directly to the legislative assembly with informational copies of such budgets provided to the director of the budget not later than November fifteenth in each even-numbered year preceding a session of the legislative assembly.

Source:

S.L. 1965, ch. 358, § 13; 1991, ch. 617, § 1; 1993, ch. 527, § 1.

54-44.1-13.1. Apportionment of reductions in spending authority caused by an initiative or referendum action.

If as a result of any action taken pursuant to article III of the Constitution of North Dakota the moneys available in the state general fund or in any special fund in the state treasury are or will be reduced or eliminated, the director of the budget shall reduce the moneys available to all departments, agencies, and institutions for which moneys have been appropriated or are otherwise available from the affected fund for the current biennial period. The director of the budget shall reduce affected budgets by a percentage sufficient to cover the estimated losses caused by the initiative or referendum action, subject to the approval of the legislative assembly or the budget section if the legislative assembly is not in session. Any request considered by the budget section must comply with section 54-35-02.9. Notwithstanding the provisions of section 54-44.1-13, the authority to make reductions pursuant to this section applies equally to all entities of the executive, legislative, and judicial branches.

Source:

S.L. 1987, ch. 648, § 1; 2009, ch. 482, § 98; 2019, ch. 438, § 16, eff August 1, 2019.

54-44.1-14. Biennial report to legislative assembly.

The director of the budget or such member of that office as the director of the budget designates may prepare and transmit to the governor and, upon approval by the governor, may transmit to the members of the legislative assembly at least sixty days prior to the commencement of an ensuing legislative session a report which must contain definite and specific proposals and recommendations to accomplish the following purposes:

  1. To simplify the governmental structure of the state so as to render it more economical and efficient.
  2. To eliminate all obsolete and unnecessary offices, departments, institutions, boards, bureaus, and commissions of the state.
  3. To consolidate the functions, services, and activities of state offices and agencies thereof so as to eliminate duplication of service and expense wherever it exists.
  4. To correlate the functions and services of the several offices and agencies of the state government.
  5. To eliminate obsolete methods, unnecessary functions and services carried on by the state government and to render those functions and services which are determined to be absolutely essential and more economical and efficient.

Source:

S.L. 1965, ch. 358, § 14.

54-44.1-15. Indirect cost recoveries from federal programs and special funds.

The office of management and budget shall develop a statewide central service indirect cost allocation plan according to federal cost allocation principles. Any state agency receiving federal funds shall seek reimbursement from the federal programs for indirect costs appropriately allocated to the agency in the plan. Any recoveries of central service indirect costs must be deposited in the state general fund at least once annually by the agency as determined by the office of management and budget. The office of management and budget may exclude an agency or agencies from the requirements of this section.

The office of management and budget may bill special fund agencies for central service indirect costs as determined in the cost allocation plan in the ratio that the agency’s special funds are to its total budget. Appropriation authority to cover the billings must be included in the budgets of the special fund agencies.

Source:

S.L. 1987, ch. 649, § 1.

Note.

Section 8 of chapter 35, S.L. 1999, effective July 1, 1999, provides:

INDIRECT COST ALLOCATION. Notwithstanding section 54-44.1-15 [this section], the department of public instruction may deposit indirect cost recoveries in its operating account.”

54-44.1-16. Office of the budget and information technology department — New building construction cost-benefit analyses.

The office of the budget shall complete a cost-benefit analysis for each new building construction project included in budget requests submitted by state agencies, departments, and institutions. The analysis must review options for co-locating with other state agencies, departments, or institutions and consider information on related technology costs and savings. The office of the budget shall obtain the assistance of the information technology department, and that department shall review the technology costs and savings involved in the proposed building and provide the analysis to the office of the budget. The office of the budget shall report on the cost-benefit analyses for building projects included in the governor’s budget recommendation to the legislative assembly at the same time as the governor’s budget and revenue proposals are presented.

Source:

S.L. 2001, ch. 15, § 28.

54-44.1-17. Bank of North Dakota transfers to the general fund — Restoration.

Notwithstanding section 54-27.2-02 and subject to the availability of funds in the general fund, at the end of the biennium the director of the budget shall return to the Bank of North Dakota any funds transferred from the Bank to the general fund in response to a projected shortfall of general fund revenues pursuant to a contingent authorization by the legislative assembly. The amount returned to the Bank as required by this section must be the amount of the contingent transfer or the unobligated balance of the general fund at the end of the biennium, whichever is less. For purposes of this section “at the end of the biennium” means after cancellation of unexpended appropriations under section 54-44.1-11.

Source:

S.L. 2005, ch. 525, § 1.

54-44.1-18. Searchable database of expenditures.

  1. The director of the budget shall develop and make publicly available an aggregate and searchable budget database website that includes the following information for the biennium:
    1. Each budget unit making expenditures.
    2. The amount of funds expended.
    3. The source of the funds expended.
    4. The budget program of the expenditure.
    5. Any other information determined relevant by the director of the budget.
  2. The director of the budget shall include the name and city of the recipient of each expenditure in the budget database website after the director has completed implementation of a business intelligence component to the state’s financial reporting system.
  3. The director of the budget may not include in the database any information that is confidential or exempt under state or federal law.
  4. The director of the budget may update the budget database website as new data becomes available. Each state agency shall provide to the director of the budget any data required to be included in the budget database website no later than thirty days after the data becomes available to the agency.
  5. By January first of each even-numbered year, the director of the budget shall add data for the previous biennium to the budget database website. The director of the budget shall ensure that all data added to the budget database website remains accessible to the public for a minimum of ten years.
  6. The budget database website may not redirect users to any other government website, unless the website has information from all budget units and each category of information required can be searched electronically by field in a single search.

Source:

S.L. 2009, ch. 46, § 35; 2013, ch. 15, § 26; 2015, ch. 62, § 16, eff August 1, 2015; 2021, ch. 15, § 32, eff July 1, 2021.

Effective Date.

The 2015 amendment of this section by section 16 of chapter 62, S.L. 2015 became effective August 1, 2015.

The 2013 amendment of this section by section 26 of chapter 15, S.L. 2013 became effective January 1, 2014.

CHAPTER 54-44.2 Information Services Division [Repealed]

[Repealed by S.L. 1999, ch. 483, § 33]

CHAPTER 54-44.3 Central Personnel System

54-44.3-01. Purpose of chapter.

The general purpose of this chapter is to create North Dakota human resource management services in order to establish a unified system of human resource management for the classified service of the state based upon merit principles and scientific methods, governing the position classification, pay administration, and transfer of its employees. All appointments and promotions to positions in the state classified service must be made without regard to sex, race, color, national origin, age, religious affiliations, or political opinions on the basis of merit and fitness.

Source:

S.L. 1975, ch. 487, § 1; 2003, ch. 493, § 7.

54-44.3-01.1. Compensation relationships — Policy.

It is the policy of this state to establish equitable, nondiscriminatory compensation relationships among all positions and classes within the state’s classification plan.

Source:

S.L. 1989, ch. 659, § 1.

54-44.3-01.2. Compensation philosophy statement.

The compensation program for classified state employees must be designed to recruit, retain, and motivate a quality workforce for the purpose of providing efficient and effective services to the citizens of North Dakota. For purposes of this section, “compensation” is defined as base salary and related fringe benefits.

The compensation program must:

  1. Provide a competitive employee compensation package based on job content evaluation, internal equity, and external competitiveness balanced by the state’s fiscal conditions.
  2. Be based on principles of fairness and equity.
  3. Include a consistent compensation policy which allows for multiple pay structures to address varying occupational specialties.
  4. Set the external competitiveness target for salary range midpoints at a competitive level of relevant labor markets. For purposes of this section, “relevant labor markets” is defined as the labor markets from which the state attracts employees in similar positions and the labor markets to which the state loses employees in similar positions.
  5. Include a process for providing compensation adjustments that considers a combination of factors, including achievement of performance objectives or results, competency determinations, recognition of changes in job content, and acquisition and application of advanced skills or knowledge.
  6. Provide funding for compensation adjustments based on the dollar amounts determined necessary to provide competitive compensation in accordance with the state’s compensation philosophy. Funding for compensation adjustments may not be provided as a statewide percentage increase attributable to all employees nor as part of a statewide pool of funds designated for addressing equity issues.
  7. Consider the needs of the state as an employer and the tax effect on North Dakota citizens.

The office of management and budget shall develop and consistently administer the compensation program for classified state employees and ensure that state agencies adhere to the components of the state’s compensation philosophy. The office of management and budget shall regularly conduct compensation comparisons to ensure that the state’s compensation levels are competitive with relevant labor markets. Any salary information collected from private businesses for the purpose of conducting compensation comparisons is exempt from public disclosure. Records naming private businesses from which salary information is collected are open.

The legislative assembly recognizes the importance of providing annual compensation adjustments to employees based on performance and equity to maintain the market competitiveness of the compensation system.

Source:

S.L. 2011, ch. 429, § 1; 2017, ch. 239, § 5, eff August 1, 2017.

54-44.3-02. Definitions.

As used in this chapter, unless the context clearly requires otherwise:

  1. “Appointing authority” means the authority to appoint to positions in the classified service and is reserved to officials and heads of departments and agencies within the government.
  2. “Board” means the state personnel board.
  3. “Director” means the director of North Dakota human resource management services.
  4. “Division” means North Dakota human resource management services.
  5. “Employee” means any person who occupies a position in the classified service.
  6. “Officer” means an employee of the state government who is appointed and serves at the pleasure of an official, board, or commission.
  7. “Official” means a member of the state government elected by popular vote.

Source:

S.L. 1975, ch. 487, § 2; 2003, ch. 493, § 8.

54-44.3-03. State personnel board — Composition — Terms — Vacancies — Qualifications.

  1. The state personnel board is composed of the director, who must be the chairman of the board; one member appointed by the governor; two members elected by employees classified under sections 54-44.3-19 and 54-44.3-20; and one member with a professional human resource background appointed by the governor.
  2. The term of each member of the board, except the director, must be for six years. The director’s term coincides with employment as director. Any permanent vacancy in office must be filled by the eligible person who received the next highest vote total in the previous election. If the eligible person is not available for the unexpired term the permanent vacancy in office must be filled in the same manner as the selection of the person vacating the office.
  3. Each member of the board must be a resident of the state for at least sixty days and must be known to be in sympathy with the application of merit principles to public employment. No member of the board may have held a position in a political party within four years immediately preceding the member’s appointment or election to the board, and those members of the board elected by classified employees must be full-time employees in good standing of the classified service.

Source:

S.L. 1975, ch. 487, § 3; 1977, ch. 497, § 1; 1981, ch. 541, § 1; 1987, ch. 650, § 1; 1995, ch. 524, § 1; 1999, ch. 472, § 1; 2017, ch. 239, § 6, eff August 1, 2017.

Notes to Decisions

Conflict of Interest.

An aggrieved state employee must show more than a relationship between a member of the personnel board and the agency of the state involved in the proceeding to establish a conflict of interest, since by definition, members of the state personnel board are mostly state officials and employees. Domek v. North Dakota State Personnel Bd., 430 N.W.2d 339, 1988 N.D. LEXIS 200 (N.D. 1988).

Status of Board.

State personnel board is an administrative agency as defined in N.D.C.C. § 28-32-01, and is not an office or division of the office of management and budget. Hammond v. North Dakota State Personnel Bd., 332 N.W.2d 244 (N.D. 1983), decided prior to the amendment to N.D.C.C. § 54-44.3-07, by Session Laws 1991, ch. 607.

54-44.3-04. Compensation and expenses of members of board.

Each member of the board is entitled to compensation at the rate of fifty dollars for each day employed in the official duties of the board and other expenses as provided for by law.

Source:

S.L. 1975, ch. 487, § 4.

54-44.3-05. Secret ballot election — Guidelines.

The secretary of state shall develop guidelines for a secret ballot election among all employees eligible under sections 54-44.3-19 and 54-44.3-20 to carry out the election of the two members of the board elected by classified employees. All elections of members of the board are the responsibility of the director who will ensure that proper and due notification is given to all employees in sufficient time to enable potential candidates to initiate necessary petitions and conduct campaigns. Nominees for candidacy are required to submit petitions containing no less than one hundred names of employees in good standing classified under sections 54-44.3-19 and 54-44.3-20. All elections will be conducted through a secret ballot process.

Source:

S.L. 1975, ch. 487, § 5; 1981, ch. 541, § 2; 2017, ch. 239, § 7, eff August 1, 2017.

54-44.3-06. Meetings.

The board shall organize annually at the first meeting of each fiscal year. It shall meet at least once a year and at such times and places as are specified by call of the chairman or any three members of the board. All meetings must be open to the public. Three members constitute a quorum for the transaction of business. Three favorable votes are necessary for the passage of any resolutions or taking of any official action by the board at any meeting.

Source:

S.L. 1975, ch. 487, § 6; 1997, ch. 461, § 5.

54-44.3-07. Duties of board.

The primary responsibility of the board is to foster and assure a system of personnel administration in the classified service of state government. In carrying out this function, the board shall:

  1. Adopt any rules and hold any hearings as are necessary to properly perform the duties, functions, and powers imposed on or vested in the board by law. The adoption of rules must be accomplished in accordance with chapter 28-32.
  2. Hear, consider, and determine appeals by nonprobationary employees in the classified service related to position classifications and pay grade assignments.
  3. Ensure that the director includes the activities of the board in the office of management and budget’s biennial report.
  4. Keep minutes and maintain records necessary to assure the equitable administration of this chapter.

Source:

S.L. 1975, ch. 487, § 7; 1991, ch. 607, § 2; 1995, ch. 350, § 50; 1995, ch. 524, § 2; 2005, ch. 526, § 1.

Notes to Decisions

Administrative Rules.

Although employee and State Industrial School (SIS) orally agreed job was for one year, SIS representatives did not have the authority to circumvent the six-month probationary period and reduction-in-force provisions in administrative rules promulgated to govern the terms and conditions of the employment of classified employees of state government, and employee was charged with knowledge of SIS’s hiring authority. Knight v. North Dakota State Indus. Sch., 540 N.W.2d 387, 1995 N.D. LEXIS 212 (N.D. 1995).

Appeal of Board Orders.

Former subsection (3) (now subsection (2)) of this section authorizes the state personnel board to determine disputed issues between employer and employee but does not make a board order final; construing subsection (3) of this section and former N.D.C.C. 28-32-15(1) (now N.D.C.C. § 28-32-42) together, they authorize nonprobationary, classified state employees and their employers to appeal from orders by the board. Southeast Human Serv. Ctr., Dep't of Human Servs. v. Eiseman, 525 N.W.2d 664, 1994 N.D. LEXIS 267 (N.D. 1994).

Nonprobationary State Employees.

By its own terms, former subsection (3) of this section and its “any needed remedy” clause are limited to appeals “by nonprobationary employees.” Berger v. State Personnel Bd., 502 N.W.2d 539, 1993 N.D. LEXIS 131 (N.D. 1993).

A candidate for employment who prevailed in a sex discrimination suit, who was not now, nor was she ever, a state employee, did not fall within the necessary category of former subsection (3) of this section and could not be awarded attorney’s fees. Berger v. State Personnel Bd., 502 N.W.2d 539, 1993 N.D. LEXIS 131 (N.D. 1993).

Review of Personnel Issues.

State personnel board has authority under the statewide appeal mechanism implemented pursuant to N.D.C.C. § 54-44.3-12.2 to review dismissals of classified state employees. Hammond v. North Dakota State Personnel Bd., 332 N.W.2d 244 (N.D. 1983), decided prior to the amendment to this section, by Session Laws 1991, ch. 607.

The authority given the state personnel board under this section, together with N.D.C.C. § 54-44.3-12.2, authorizes the state personnel board, upon development and implementation of the statewide appeal mechanism by the central personnel division, to review all personnel issues subject to review under that mechanism. Hammond v. North Dakota State Personnel Bd., 332 N.W.2d 244 (N.D. 1983), decided prior to the amendment to this section by Session Laws 1991, ch. 607.

Although classified state employee presented evidence which raised an inference he was demoted in retaliation for his opposition to supervisor’s plan, because state personnel board resolved conflicting evidence against employee and in favor of department, board’s decision was affirmed, where its findings of fact were supported by a preponderance of the evidence and its conclusions of law were supported by its findings of fact. Jacobs v. North Dakota State Personnel Bd., 551 N.W.2d 779, 1996 N.D. LEXIS 179 (N.D. 1996).

54-44.3-08. Testimony — Call witnesses — Request production of papers.

The board, as a body, may invite and hear witnesses, and request the production of books and papers or any other physical evidence pertinent to any investigation or hearing authorized by this chapter. Witnesses who testify at the invitation of the board shall receive remuneration in the same amount and manner received by witnesses in North Dakota district courts.

Source:

S.L. 1975, ch. 487, § 8.

Cross-References.

Witness fees and mileage, see N.D.C.C. § 31-01-16.

54-44.3-09. Board secretariat.

The division shall serve as the secretariat to the board.

Source:

S.L. 1975, ch. 487, § 9; 1997, ch. 461, § 6.

54-44.3-10. Action to secure compliance with chapter.

The board may maintain such action or proceeding at law or in equity as the board considers necessary or appropriate to secure compliance with this chapter and its rules and orders thereunder. The attorney general may assign an assistant attorney general as legal adviser and counsel to both the board and the division. The attorney general is responsible for representing the personnel system in all legal contexts.

Source:

S.L. 1975, ch. 487, § 10.

54-44.3-11. North Dakota human resource management services — Director — Appointment — Removal.

North Dakota human resource management services is created within the office of management and budget under the supervision and control of a director who is responsible for the performance and exercise of the duties, functions, and powers imposed upon the division.

  1. The director must be experienced in the field of human resource management and shall hold considerable knowledge of merit principles, goals, and their methods of operation.
  2. The director of the office of management and budget shall appoint the director. The position of director is not a classified position and the director shall serve at the pleasure of the director of the office of management and budget.

Source:

S.L. 1975, ch. 487, § 11; 1995, ch. 512, § 4; 2003, ch. 493, § 9.

54-44.3-12. Duties of director.

The director shall direct and supervise, with the approval of the director of the office of management and budget, all the administrative and technical activities of the division. In addition to the duties imposed elsewhere in this chapter, the director shall:

  1. Establish general policies, rules, and regulations, subject to the approval of the board, which are binding on the agencies affected, and which apply to the employees in the classified service. These rules must provide for:
    1. Establishing and maintaining a classification plan.
    2. Establishing and maintaining a compensation plan.
    3. Promoting a consistent application of personnel policies.
    4. Enhancing greater uniformity in matters relating to probationary periods, hours of work, leaves of absence, separations, transfers, disciplinary actions, grievance procedures, and performance management.
    5. Ensuring fair treatment and compliance with equal employment opportunity and nondiscrimination laws.
  2. Establish and maintain a roster of all employees in the state classified service in which there must be set forth, as to each employee, the class title of the position occupied, the salary or pay, change in class title, and any other personnel data that the division deems necessary.
  3. Select for appointment under this chapter such employees of the division and such experts and special assistants as are necessary to carry out effectively the provisions of this chapter. Salaries and positions of personnel in the division must conform to the classification and pay plan provided by this chapter.
  4. Assist the employee-appointing authorities, in accordance with the provisions of this chapter and the rules adopted thereunder, in the preparation and administration of appropriate selection procedures.
  5. Encourage and assist in the development of personnel administration within the various departments and agencies of the state.
  6. Cooperate with employee-appointing authorities and other supervisory officers in the conduct of employee training programs.
  7. Develop procedures that, notwithstanding any other law, must be followed by all state agencies and institutions for employees in the state classified service, to ensure that all salaries are paid in a manner consistent with the state’s compensation, classification, and salary administration policies.
  8. Consult with state agencies and institutions in the development of salary administration procedures for employees in the state classified service.
  9. Recognize knowledge, skills, complexity, accountability, and working condition hazards as compensable factors of the state’s classification plan, required in the performance of work for all positions in the state classified service.
  10. Develop guidelines for allowing exceptions to the rules of the classification and compensation plans for use when the market salaries of specific positions are not consistent with the state’s compensation policy.
  11. Conduct in-state and out-of-state labor market surveys that are representative of the state’s classified service occupations to enable the state to position itself accurately against the market.
  12. Communicate classification and compensation policies to the managers and employees in the state-classified service by providing written information on the state’s classification and compensation procedures.
  13. Adopt rules, subject to the approval of the board, to ensure compliance with and resolve compliance issues relating to agencies required by state or federal law or rule to be subject to a merit personnel system.

Source:

S.L. 1975, ch. 487, § 12; 1989, ch. 660, § 1; 1989, ch. 661, § 1; 1991, ch. 608, § 2; 1997, ch. 461, § 7.

Notes to Decisions

Administrative Rules.

Although employee and State Industrial School (SIS) orally agreed job was for one year, SIS representatives did not have the authority to circumvent the six-month probationary period and reduction-in-force provisions in administrative rules promulgated to govern the terms and conditions of the employment of classified employees of state government, and employee was charged with knowledge of SIS’s hiring authority. Knight v. North Dakota State Indus. Sch., 540 N.W.2d 387, 1995 N.D. LEXIS 212 (N.D. 1995).

54-44.3-12.1. Revisions to compensation plan.

Revisions to the compensation plan may only be made on July first, following the close of a regular legislative session, except that new classifications may be added to the compensation plan during a biennium when deemed necessary by the director. Revisions to the compensation plan for county employees covered by the plan become effective on January first of the first full calendar year following the revision or on July first following the close of a regular legislative session, based on official action by the board of county commissioners. Revisions to the compensation plan may only be made to the extent the legislative assembly appropriates funds to implement such plans.

Source:

S.L. 1979, ch. 566, § 1; 1981, ch. 542, § 1; 1991, ch. 620, § 1; 2005, ch. 23, § 7.

54-44.3-12.2. Employee complaints — Cooperation in development and implementation of basic agency grievance procedures and a statewide appeal mechanism — Appeals.

It is the intent of the state of North Dakota to assure fair and equitable treatment and promote harmony between and among all classified employees by requiring affected agencies to adopt grievance procedures and through the creation of a statewide appeals mechanism with primary jurisdiction to entertain and resolve classified employee appeals. It is the policy of this state to resolve bona fide employee complaints as quickly as possible. The division shall cooperate with and assist the various departments, agencies, and institutions of the state in the development and implementation of basic agency grievance procedures and a statewide appeal mechanism. The division shall certify appeals from nonprobationary employees in the classified service which are related to discrimination, merit system qualification, reprisals, reduction in force, forced relocation, demotion with loss of pay, suspension without pay, and dismissal, and from applicants for positions in the classified service and probationary employees in the classified service which are related to discrimination or reprisal. Upon receipt of an appeal, the division shall submit a written request to the director of the office of administrative hearings to designate an administrative law judge for the division to conduct the hearing and related proceedings, including receiving evidence and preparing findings of fact, conclusions of law, and issuing a final decision. The moving party in the initial action bears the burden of proof in the appeal. An appeal to the district court from the determination of the administrative law judge must be filed according to chapter 28-32, including proper service upon the division, but neither the division nor the office of administrative hearings may be named as a party to the appeal under chapter 28-32 unless an employee of one of those two agencies is involved in the grievance.

Source:

S.L. 1979, ch. 566, § 2; 1995, ch. 524, § 3; 1999, ch. 472, § 2; 2001, ch. 55, § 22; 2009, ch. 510, § 1.

Notes to Decisions

Perfecting Appeal.

Service of a notice of appeal and specifications of error on the North Dakota Human Resource Management Services is necessary to properly perfect an appeal from administrative law judge decisions under the North Dakota Central Personnel System Act, N.D.C.C. ch. 54-44.3; N.D.C.C. § 54-44.3-12.2 simply imposes an additional service requirement to those contained in N.D.C.C. § 28-32-42(4) in appeals brought under N.D.C.C. ch. 54-44.3. Therefore, a former employee failed to properly perfect his appeal when the requirements of N.D.C.C. § 54-44.3-12.2 were not met. Meier v. N.D. Dep't of Human Servs., 2012 ND 134, 818 N.W.2d 774, 2012 N.D. LEXIS 144 (N.D. 2012).

Review of Personnel Issues.

Although classified state employee presented evidence which raised an inference he was demoted in retaliation for his opposition to supervisor’s plan, because state personnel board resolved conflicting evidence against employee and in favor of department, board’s decision was affirmed, where its findings of fact were supported by a preponderance of the evidence and its conclusions of law were supported by its findings of fact. Jacobs v. North Dakota State Personnel Bd., 551 N.W.2d 779, 1996 N.D. LEXIS 179 (N.D. 1996).

Review by the Supreme Court is limited to whether an administrative law judge’s findings are supported by a preponderance of the evidence, the conclusions of law are supported by the findings of fact, and the decision is in accordance with the law. Developmental Ctr. v. Central Personnel Div., 2000 ND 7, 604 N.W.2d 230, 2000 N.D. LEXIS 4 (N.D. 2000).

Where the Administrative Law Judge (ALJ) found that a DOT employee had committed a theft of $53 worth of scrap metal, but determined that termination was not justified, the ALJ’s conclusions of law were not in accordance with N.D. Admin. Code § 4-07-19-04, and thus the district court properly reversed the ALJ’s decision ordering reinstatement of the employee. North Dakota DOT v. Central Personnel Div., 1999 ND 198, 600 N.W.2d 861, 1999 N.D. LEXIS 213 (N.D. 1999).

Director of a state health agency could not assert a federal claim for violation of procedural due process when the director did not pursue a grievance under the procedure that was in place under this section. Vukelic v. Bartz, 245 F. Supp. 2d 1068, 2003 U.S. Dist. LEXIS 2640 (D.N.D. 2003).

State Personnel Board’s Authority.

The authority given the state personnel board under N.D.C.C. § 54-44.3-07, together with this section, authorizes the state personnel board, upon development and implementation of the statewide appeal mechanism by the central personnel division, to review all personnel issues subject to review under that mechanism. Hammond v. North Dakota State Personnel Bd., 332 N.W.2d 244 (N.D. 1983), decided prior to the amendment to N.D.C.C. § 54-44.3-07, by Session Laws 1991, ch. 607.

54-44.3-13. Records and information to be furnished.

All departments and agencies covered by the personnel system shall furnish any reasonably necessary, nonprivileged records and information to the division which the division requests, except records made confidential by statute.

Source:

S.L. 1975, ch. 487, § 13.

54-44.3-14. Records public.

The records of the division and the board, except such records as the statutes may require to be held confidential, are public records and must be open to public inspection, subject to regulations as to the time and manner of inspection which may be prescribed by the division or board.

Source:

S.L. 1975, ch. 487, § 14.

Cross-References.

Access to public records, see N.D.C.C. § 44-04-18.

Collateral References.

Payroll records of individual government employees as subject to disclosure to public, 100 A.L.R.3d 699.

54-44.3-14.1. Mediation — Open records exemption — Retaliation prohibition.

Records of the division relating to mediation services provided by the division are exempt from section 44-04-18. An employee may not be discharged, disciplined, or penalized concerning the employee’s compensation, conditions, location, or other privileges of employment because of the employee’s request for or participation in the mediation services provided by the division.

Source:

S.L. 2003, ch. 494, § 1.

Cross-References.

Access to public records, see N.D.C.C. § 44-04-18.

54-44.3-15. Payment disapproved by director.

The director may disapprove the payment for personal service for any person holding a position in the classified service, except a person appointed to a position for the duration of an emergency, if the director determines that the person named therein has not been classified and is not imminently to receive classification in accordance with the provisions of this chapter and the rules and orders thereunder or that the rate of pay is not authorized.

Source:

S.L. 1975, ch. 487, § 15; 1999, ch. 472, § 3.

54-44.3-16. Agency personnel officers.

The elected or appointed chief officer of each agency or department of the service shall designate a staff employee to serve as personnel officer for that division of the service to assist the chief officer in that person’s duty to administer personnel responsibilities specified in this chapter and by the personnel rules. The designated personnel officer of each agency or department shall certify to the agency elected or appointed chief officer that each person holding a position in the classified service authorized for payment through payroll has been classified in accordance with the provisions of this chapter and the rules and orders under this chapter and that the rate of pay is within established current salary ranges or excepted from the ranges by written authorization by the director.

Source:

S.L. 1975, ch. 487, § 16; 1999, ch. 472, § 4.

54-44.3-17. Grant-in-aid programs.

Whenever the provisions of any law, rule, order, or regulation of the United States or of any federal agency or authority providing or administering federal funds for use in North Dakota require civil service or merit standards or classifications other than those required by the provisions of this chapter and rules and regulations promulgated under this chapter, then the provisions of such law, rule, order, or regulation must prevail and must govern the employees affected thereby. The division shall provide those services necessary to comply with merit standards for federal grant-in-aid agencies.

Source:

S.L. 1975, ch. 487, § 17.

54-44.3-18. Authority to provide services to cities and political subdivisions.

The division may enter into agreement with any city or political subdivision of the state to furnish services and facilities of the division to the city or political subdivision in the administration of its personnel on merit principles. Any such agreement must provide for the reimbursement to the state of the cost of the services and facilities furnished, such reimbursements to be deposited to the credit of the general fund. All cities and political subdivisions of the state may enter into such agreements.

Source:

S.L. 1975, ch. 487, § 18.

54-44.3-19. Board authority to provide service to cities, political subdivisions, and other entities.

The board may enter into agreement with any city or political subdivision of this state to furnish any of its services and facilities, other than factfinding or conciliation services, and the agreement must provide for reimbursement to the state of the cost of the services and facilities furnished. All cities and political subdivisions of this state may enter into the agreements. The board and division shall provide coverage to other agencies or political subdivisions as may by federal laws or regulations be required to be subject to a personnel system in order to obtain federal grants-in-aid. The board and division shall provide coverage to political subdivisions upon the request of the subdivisions. Other agencies, departments, or divisions or positions may be placed under the complete or limited board and division personnel plan in the manner and to the extent the legislative assembly shall by law direct.

Source:

S.L. 1975, ch. 487, § 19; 1981, ch. 486, § 35; 1981, ch. 543, § 1.

54-44.3-20. Categories of positions in the state service.

All positions in the state service are included in the classified service, except:

  1. Each official elected by popular vote and each person appointed to fill vacancies in an elective office, one principal assistant, and one private secretary.
  2. Members of boards and commissions required by law.
  3. Administrative heads of departments required by law, other than the superintendent of North Dakota vision services-school for the blind, the superintendent of the school for the deaf, and the state librarian.
  4. Officers and employees of the legislative branch of government.
  5. Members of the judicial branch of government of the state of North Dakota and their employees and jurors.
  6. Persons temporarily employed in a professional or scientific capacity as consultants or to conduct a temporary and special inquiry, investigation, or examination for the legislative branch of government or a department of the state government.
  7. Positions deemed to be inappropriate to the classified service due to the special nature of the position as determined by the division and approved by the board.
  8. Employees of the institutions of higher education under the control of the state board of higher education.
  9. Members and employees of occupational and professional boards.
  10. Officers and employees of the North Dakota mill and elevator association.
  11. Positions referred to under law as serving at the pleasure of or at the will of the appointing authority.
  12. Licensed teachers engaged in teaching at the North Dakota youth correctional center, North Dakota vision services-school for the blind, and the school for the deaf.
  13. Officers of workforce safety and insurance.
  14. Officers and employees of the department of commerce.
  15. Attorneys employed by the insurance commissioner.
  16. Engineers, engineering technicians, and geologists employed by the director of mineral resources.
  17. Officers and employees of the Bank of North Dakota.

Source:

S.L. 1975, ch. 487, § 20; 1983, ch. 33, § 4; 1995, ch. 199, § 5; 1995, ch. 458, § 9; 1995, ch. 524, § 4; 1995, ch. 525, § 1; 1997, ch. 13, § 24; 1999, ch. 19, § 12; 1999, ch. 162, § 45; 1999, ch. 473, § 1; 2001, ch. 10, § 9; 2001, ch. 257, § 6; 2001, ch. 488, § 44; 2003, ch. 561, § 3; 2009, ch. 511, § 1; 2009, ch. 611, § 1; 2013, ch. 45, § 25; 2017, ch. 335, § 4, eff August 1, 2017; 2019, ch. 457, § 1, eff August 1, 2019.

Effective Date.

The 2013 amendment of this section by section 25 of chapter 45, S.L. 2013 became effective July 1, 2013.

54-44.3-21. Employment only under approved class title.

No person may be appointed to or employed in a position in the classified service under a class title which has not been approved by the director as appropriate to the duties to be performed.

Source:

S.L. 1975, ch. 487, § 21.

54-44.3-22. Limitations on inquiries in application or test — Discrimination prohibited.

No question in any form of application or in any test may be so framed as to elicit any information concerning the political or religious opinions or affiliations of any applicant, nor may any inquiry be made concerning such opinions or affiliations. All disclosures thereof must be discountenanced. No discrimination may be exercised, threatened, or promised by any person in the employ of any division of the service or of the personnel division against or in favor of any applicant, eligible, or employee because of sex, race, color, national origin, age, or religious or political opinions or affiliations.

Source:

S.L. 1975, ch. 487, § 22.

54-44.3-23. Veterans’ preferences.

Veterans’ preferences must be in accordance with chapter 37-19.1.

Source:

S.L. 1975, ch. 487, § 23.

54-44.3-24. Application of chapter to existing employees.

All employees in positions which are in the classified service as defined in this chapter and who, prior to July 1, 1975, have served continuously for a period of six months or more, or as regular seasonal employees have satisfactorily served in such positions through one seasonal service period, shall be certified to such positions, and grades and classifications, under the personnel system, and shall not be subject to examination or trial service periods of employment.

Source:

S.L. 1975, ch. 487, § 24.

54-44.3-25. Prohibited conduct.

  1. No person may make any false statement, certificate, mark, rating, or report with regard to any test, certification, or appointment made under this chapter, or in any manner commit or attempt to commit any fraud preventing the impartial execution of this chapter and the rules.
  2. No person may, directly or indirectly, give, render, pay, offer, solicit, or accept any money, service, or other valuable consideration for or on account of any appointment, proposed appointment, promotion, or proposed promotion to, or any advantage in, a position in the classified service.
  3. No employee of the division, examiner, or other person may defeat, deceive, or obstruct any person in that person’s right to examination, eligibility, certification, or appointment under this chapter, or furnish to any person any special or confidential information for the purpose of affecting the rules or prospects of any person with respect to employment in the classified service.

Source:

S.L. 1975, ch. 487, § 25.

54-44.3-26. Penalty.

Any person who intentionally violates any provision of this chapter is guilty of an infraction and, upon conviction thereof, is, for a period of one year, ineligible for appointment or employment in the classified service.

Source:

S.L. 1975, ch. 487, § 26.

54-44.3-27. Transfer of records of merit system council.

All personnel and records of the North Dakota merit system council are hereby transferred to the division created by this chapter.

Source:

S.L. 1975, ch. 487, § 27.

54-44.3-28. College student cooperative education or intern program — Eligibility.

The director shall establish and administer within the executive and legislative branches of state government a program through which college students may receive stipends and academic credit for participating in a cooperative education or internship program. The program must be open to any student enrolled in a public or private educational institution in this state which has been accredited by an agency recognized by the United States department of education. The director shall establish classifications and develop uniform application procedures for the cooperative education or internship program.

Source:

S.L. 1995, ch. 526, § 1.

54-44.3-29. Acceptance of federal funds.

The director is authorized to accept federal funds through grant-aided agencies or directly for the purpose of operating or ensuring operation of a merit personnel system.

Source:

S.L. 1997, ch. 461, § 8.

54-44.3-30. Agencies subject to merit system. [Effective through August 31, 2022]

All personnel employed by the department of human services, the regional offices of that department, job service North Dakota, North Dakota human resource management services, the state department of health, department of environmental quality, and other agencies or political subdivisions as may by federal law or rule be required to be subject to a merit system in order to obtain federal grants-in-aid are covered by the merit system provided in this chapter. Merit system coverage must also be provided to personnel employed as purchasing agents or buyers in the purchasing division of the office of management and budget. Other agencies, departments, or divisions and positions must be placed under a merit system in the manner and to the extent required by law.

Source:

S.L. 1997, ch. 461, § 9; 2003, ch. 493, § 10; 2017, ch. 199, § 59, eff April 29, 2019.

Note.

This section is effective upon the receipt by the legislative council of the certification by the chief of the environmental health section of the state department of health attesting that all necessary federal approvals have been obtained and all necessary federal and other agreements have been amended to ensure the state will continue to meet the primacy requirements it currently satisfies after the transfer of authority, powers, and duties from the state department of health to the department of environmental quality provided under S.L. 2017, ch. 199, § 75. [Contingency met in 2019]

54-44.3-30. Agencies subject to merit system. [Effective September 1, 2022]

All personnel employed by the department of health and human services, the regional offices of that department, job service North Dakota, North Dakota human resource management services, department of environmental quality, and other agencies or political subdivisions as may by federal law or rule be required to be subject to a merit system in order to obtain federal grants-in-aid are covered by the merit system provided in this chapter. Merit system coverage must also be provided to personnel employed as purchasing agents or buyers in the purchasing division of the office of management and budget. Other agencies, departments, or divisions and positions must be placed under a merit system in the manner and to the extent required by law.

Source:

S.L. 1997, ch. 461, § 9; 2003, ch. 493, § 10; 2017, ch. 199, § 59, eff April 29, 2019; 2021, ch. 352, § 490, eff September 1, 2022.

54-44.3-31. Political subdivision may request to be exempted from state merit system. [Effective through August 31, 2022]

A political subdivision subject to the merit system under this chapter may file a request with the division and the director of the department of human services to be exempted from the merit system. The request must describe a plan and policy that assures the political subdivision has developed a merit system plan that meets federal standards for personnel administration. The division and the director of the department of human services shall authorize the political subdivision plan within sixty days of receiving a request under this section if the plan and policies meet federal requirements. If the division and the director of the department of human services determine that the proposed plan and policies fail to meet the federal requirements, the division and the director shall deny the request and notify the requester of the specific reasons for the denial.

Source:

S.L. 2007, ch. 479, § 1.

54-44.3-31. Political subdivision may request to be exempted from state merit system. [Effective September 1, 2022]

A political subdivision subject to the merit system under this chapter may file a request with the division and the executive director of the department of health and human services to be exempted from the merit system. The request must describe a plan and policy that assures the political subdivision has developed a merit system plan that meets federal standards for personnel administration. The division and the executive director of the department of health and human services shall authorize the political subdivision plan within sixty days of receiving a request under this section if the plan and policies meet federal requirements. If the division and the executive director of the department of health and human services determine that the proposed plan and policies fail to meet the federal requirements, the division and the executive director shall deny the request and notify the requester of the specific reasons for the denial.

Source:

S.L. 2007, ch. 479, § 1; 2021, ch. 352, § 491, eff September 1, 2022.

54-44.3-32. Political subdivision merit system compliance. [Effective through August 31, 2022]

The division and the department of human services shall develop oversight and audit procedures for political subdivision merit systems to assure compliance with federal merit system principles. If the division and the department of human services determine that a political subdivision has failed to maintain compliance with federal merit system principles, the division and the department shall notify the political subdivision of the noncompliance and order the political subdivision to take corrective action. If a political subdivision does not take the necessary corrective action to comply with federal merit system principles, the division and the department of human services shall revoke the political subdivision’s exemption from the state merit system and return the political subdivision to the state merit system. The political subdivision is responsible for any penalty assessed by a federal authority for a noncompliant political subdivision merit system.

Source:

S.L. 2007, ch. 479, § 1.

54-44.3-32. Political subdivision merit system compliance. [Effective September 1, 2022]

The division and the department of health and human services shall develop oversight and audit procedures for political subdivision merit systems to assure compliance with federal merit system principles. If the division and the department of health and human services determine that a political subdivision has failed to maintain compliance with federal merit system principles, the division and the department shall notify the political subdivision of the noncompliance and order the political subdivision to take corrective action. If a political subdivision does not take the necessary corrective action to comply with federal merit system principles, the division and the department of health and human services shall revoke the political subdivision’s exemption from the state merit system and return the political subdivision to the state merit system. The political subdivision is responsible for any penalty assessed by a federal authority for a noncompliant political subdivision merit system.

Source:

S.L. 2007, ch. 479, § 1; 2021, ch. 352, § 492, eff September 1, 2022.

CHAPTER 54-44.4 State Purchasing Practices

54-44.4-01. Declaration of policy — Definitions.

It is state policy to provide comprehensive purchasing services based upon sound procurement practices and principles wherein, through full competition with fair and equal opportunity to all qualified persons to sell to the state, each state agency and institution shall obtain its necessary commodities and services at competitive cost, consistent with quality, time, and performance requirements, except as otherwise provided by law. As used in this chapter, unless the context requires otherwise:

  1. “Commodities” means all property, including equipment, supplies, materials, printing, insurance, and leases of equipment.
  2. “Procurement officer” means an individual duly authorized to enter and administer purchasing contracts and make written determinations with respect thereto and also includes an authorized representative acting within the limits of authority.
  3. “Professional services” means those services requiring special knowledge, education, or skills when the qualifications and experience of the individual rendering the services are of primary importance and the individual is required to exercise professional judgment. Professional services providers include appraisers, attorneys, accountants, psychologists, physicians, dentists, planners, analysts, and consultants. The term includes human services under which a person provides direct health or social welfare services to the citizens on behalf of the state. The term does not include services defined in section 54-44.7-01.
  4. “Purchasing agency” means a governmental entity in the executive branch of government other than the office of management and budget which is authorized by this chapter, rules adopted under this chapter, written policy of the office of management and budget, or by way of delegation from the office of management and budget to enter purchasing contracts for commodities and services.
  5. “Services” means the furnishing of labor, time, or effort by a contractor, not involving the delivery of a specific end product other than reports that are merely incidental to the required performance. The term includes professional services.

Source:

S.L. 1979, ch. 568, § 1; 2003, ch. 495, §§ 2, 3.

54-44.4-01.1. Elected officials — Bidder — Communication.

The office of management and budget shall develop guidelines for a person interested in conducting business with the state. The guidelines must address communications between interested persons and purchasing agencies before, during, and after the procurement process. Procurements conducted by the office of management and budget or a purchasing agency must have a procurement officer who serves as the point of contact for all correspondence related to the procurement. A person that is interested in submitting a bid or has submitted a bid or proposal to provide commodities or services to the state in response to an active procurement should ensure all communications related to the procurement are only with the designated point of contact. This section does not restrict an interested person’s communication with state officials or any member of the legislative assembly unless the state official or member of the legislative assembly is involved directly with the procurement for which the person is interested or has submitted a bid or proposal.

Source:

S.L. 2021, ch. 437, § 1, eff August 1, 2021.

54-44.4-02. Office of management and budget purchasing services.

The office of management and budget shall purchase or lease or otherwise arrange for the procurement, for all state agencies and institutions in the executive branch of state government, all materials, furniture, fixtures, printing, insurance, services, and other commodities. The International Peace Garden may participate in the procurement authorized by this section. The following commodities and services, however, are not subject to the procurement requirements of this chapter:

  1. Land, buildings, space, or the rental thereof.
  2. Telephone and telegraph service and electrical light and power services.
  3. Public books, maps, periodicals, and technical pamphlets.
  4. Department of transportation materials, equipment, and supplies in accordance with section 24-02-16.
  5. Procurements by the industrial commission for energy-related programs under chapters 17-05, 54-17.5, 54-17.6, 54-17.7, 54-63, and 54-63.1 and under those statutes in title 38 authorizing the industrial commission to perform well and hole pluggings, reclamation work, equipment removal, leak prevention, and similar work.
  6. Services for the maintenance or servicing of equipment by the manufacturer or authorized servicing agent of that equipment when the maintenance or servicing can best be performed by the manufacturer or authorized service agent, or when such a contract would otherwise be advantageous to the state.
  7. Emergency purchases the office of management and budget or a purchasing agency cannot make within the required time and which involve public health or public safety, or when immediate expenditures are necessary for repairs of state property to protect it against further loss or damage, or to prevent or minimize serious disruption in state services.
    1. Emergency purchases made under this subsection must treat all bidders fairly and promote competition as is practicable under the circumstances;
    2. The procurement file must contain a written determination of:
      1. The basis for the emergency; and
      2. The basis for the selection of the particular contractor.
    3. If the emergency circumstances warrant a noncompetitive purchase, the office of management and budget or the purchasing agency shall document within the procurement file a written determination of the basis for the noncompetitive purchase, including the circumstances that justified the noncompetitive purchase.
    4. If the emergency purchase is subject to federal funding reimbursement, the office of management and budget or the purchasing agency shall ensure the procurement procedures and documentation are adequate to satisfy requirements for federal reimbursement.
    5. If time allows, emergency purchases for commodities under this subsection may require a sample for use in determining whether an offered product meets specifications.
  8. Commodities and services costing less than a specified amount as determined by written directive by the director of the office of management and budget.
  9. Specified commodities and services as determined by written directive by the director of the office of management and budget.
  10. Employee benefit services, trust-related services, and investment management services obtained by an agency with a fiduciary responsibility regarding those services.

All purchases made by the office of management and budget or a state agency or institution to which authority to purchase has been delegated by the office of management and budget must be made in accordance with this chapter, rules adopted under this chapter, and written policies of the office of management and budget.

Source:

S.L. 1979, ch. 568, § 2; 1997, ch. 459, § 2; 1999, ch. 474, § 12; 2001, ch. 492, § 1; 2001, ch. 493, § 2; 2003, ch. 495, §§ 4, 5; 2005, ch. 527, § 3; 2007, ch. 314, § 6; 2007, ch. 413, § 6; 2007, ch. 464, § 3; 2007, ch. 45, § 7; 2009, ch. 521, § 1; 2021, ch. 437, § 2, eff August 1, 2021; 2021, ch. 448, § 4, § 4, eff July 1, 2021.

Note.

Section 54-44.4-02 was amended 2 times by the 2021 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 4 of Chapter 448, Session Laws 2021, House Bill 1452; and Section 2 of Chapter 437, Session Laws 2021, Sente Bill 2162.

Cross-References.

Office equipment held by state under lease-purchase agreement, conversion of agreement, see N.D.C.C. § 54-06-17.

54-44.4-02.1. Procurement of services.

All services purchased by the office of management and budget or by an agency or institution in the executive branch of state government must comply with the standards and guidelines for procurement of services established by the office of management and budget.

Source:

S.L. 2003, ch. 495, § 6; 2017, ch. 239, § 8, eff August 1, 2017.

54-44.4-02.2. Specified exempt commodities and services - Report to the budget section.

The director of the office of management and budget shall report to the budget section in December of even-numbered years on specified commodities and services exempted by written directive of the director from the procurement requirements of chapter 54-44.4.

Source:

S.L. 2003, ch. 36, § 42.

54-44.4-03. Director of the office of management and budget may delegate purchasing authority.

The director of the office of management and budget or the director’s designee may delegate to state agencies and institutions the authority to make purchases of items not otherwise exempted by law. Any delegation of purchasing authority must be in writing and must specify what may be purchased by the agency or institution and the duration of the delegation.

Source:

S.L. 1979, ch. 568, § 3; 1997, ch. 459, § 3; 1999, ch. 474, § 13.

54-44.4-04. Office of management and budget — Rules.

The office of management and budget shall adopt, in accordance with the procedures provided by chapter 28-32, rules necessary to administer this chapter. The written directives issued by the director exercising authority provided in sections 54-44.4-02 and 54-44.4-03 need not be adopted in accordance with chapter 28-32.

Source:

S.L. 1979, ch. 568, § 4; 1991, ch. 600, § 12; 2001, ch. 493, § 3; 2003, ch. 495, § 7.

54-44.4-05. Competitive, limited competitive, noncompetitive, and negotiated purchases — Exempt records.

  1. Except as otherwise provided in section 44-08-01, chapter 25-16.2, and this chapter, purchasing contracts must be awarded through a competitive bidding process to the lowest responsible bidder considering conformity with specifications, terms of delivery, and quality and serviceability, unless it is determined to be advantageous to the state to select a contractor through a competitive proposal process using other or additional criteria. The procurement officer may reject any or all bids or negotiate for a lower price with a successful bidder. Each bid received, with the name of the bidder, must be recorded. The office of management and budget may enter into term contracts for the acquisition of commodities or services and may make multiple awards for term commodity or service contracts when it deems a multiple award to be in the best interests of the state. All bids received under this chapter pursuant to a competitive sealed bid are exempt records under subsection 5 of section 44-04-17.1 until the date and time the bids are opened.
  2. The office of management and budget shall adopt rules specifying the circumstances under which competition may be waived or limited, when negotiation may be used, and specifying the required justifications and procedures for using those methods of purchasing. The office of management and budget shall adopt rules related to sending notice of intent to make limited competitive, noncompetitive, and negotiated purchases in accordance with this chapter. The notice must describe the needed commodity or service and the intended procurement method and must state that vendors are permitted to submit bids or proposals for contracts to be awarded under this section. The circumstances that may permit limited competitive, noncompetitive, or negotiated purchases include:
    1. The commodity or service is available from only one source.
    2. The commodity or service is to be purchased for experimentation or trial.
    3. No acceptable bid or proposal was received pursuant to a competitive bidding or competitive proposal process.
    4. Commodities are being purchased for over-the-counter resale.
    5. Acceptable commodities or services are produced or provided by correctional institutions or other government agencies or a work activity center as defined in section 25-16.2-01.
    6. The anticipated cost of purchasing specified commodities or services is less than an amount determined by the office of management and budget which would justify the expense of a competitive bidding or competitive proposal process.
    7. A used commodity is advantageous to the state and the commodity is available only on short notice.
    8. The commodity is a component or replacement part for which there is no commercially available substitute and which can be obtained only from the manufacturer.
    9. Compatibility with equipment currently owned by the state is essential to the proper functioning of that equipment.
    10. The agency provides documentation indicating that the services or the circumstances are of such a nature that deviation from the procurement procedure is appropriate.

Source:

S.L. 1979, ch. 568, § 5; 1991, ch. 621, § 1; 1999, ch. 474, § 15; 2001, ch. 492, § 2; 2003, ch. 495, § 8; 2005, ch. 527, § 4; 2005, ch. 528, § 1; 2011, ch. 209, §§ 5, 6.

Note.

Section 4 of chapter 492, S.L. 2001, provides:

LEGISLATIVE INTENT. It is the intent of the fifty-seventh legislative assembly that the office of management and budget in consultation with the attorney general develop standards and guidelines for the procurement of contracts for services and if appropriate, submit proposed legislation to the fifty-eighth legislative assembly regarding those standards and guidelines. State agencies are encouraged to follow the standards and guidelines as set forth by the office of management and budget and develop agency guidelines for procurement of contracts for service.”

54-44.4-06. All purchases to be made in accordance with specifications — Multistep sealed bids.

  1. For purposes of this chapter, specification means a description of all required physical, design, performance, functional, and other characteristics of a commodity or service the purchaser requires and, consequently, what a bidder must offer. The office of management and budget and institutions of higher education shall develop similar specifications for purchases of commodities and services of high common usage. State agencies and institutions shall provide such assistance as may be requested by the office of management and budget and the institutions of higher education in the development of specifications. The office of management and budget and the institutions of higher education shall implement such procedures as are necessary for the inspection, testing, and acceptance of commodities or services to determine that those received are in conformity with contract specifications.
  2. When it is determined to be impractical to initially prepare a purchase description to support an award based on price, a solicitation may be issued requesting the submission of unpriced offers to be followed by a competitive bidding or competitive proposal process limited to those bidders or offerors found to be qualified under the criteria set forth in the first solicitation.

Source:

S.L. 1979, ch. 568, § 5; 1987, ch. 329, § 5; 2003, ch. 495, § 9.

54-44.4-07. Procurement of environmentally preferable products.

  1. The office of management and budget, the institutions of higher education, and any other state agency or institution that has authority to purchase products are encouraged to purchase environmentally preferable products.
    1. When practicable, specifications for purchasing newsprint printing services should specify the use of soybean-based ink. The North Dakota soybean council and the agriculture commissioner shall assist the office of management and budget in locating suppliers of soybean-based inks and in collecting data on the purchase of soybean-based inks.
    2. When practicable, biobased products should be specified.
  2. The office of management and budget, in coordination with the state board of higher education, shall develop guidelines for a biobased procurement program.

Source:

S.L. 1989, ch. 329, § 5; 1999, ch. 474, § 16; 2007, ch. 481, § 1; 2021, ch. 15, § 33, eff July 1, 2021.

54-44.4-08. Purchase of recycled paper products.

When practicable, the office of management and budget, and any state agency or institution that has authority to purchase paper and paper products, should specify at least twenty-five percent recycled material.

Source:

S.L. 1991, ch. 622, § 1; 1999, ch. 474, § 17; 2005, ch. 529, § 1; 2021, ch. 15, § 34, eff July 1, 2021.

54-44.4-09. Approved vendors.

  1. The office of management and budget shall establish and maintain current lists of persons that desire to provide commodities or services to the state. Every person that desires to bid or submit a proposal on contracts for commodities or services awarded under this chapter must be an approved vendor in order to be placed on the bidders list. The office of management and budget or the purchasing agency shall use the list when issuing invitation for bids or request for proposals over the amount established for small purchases, except as otherwise provided in this section. The office of management and budget or the purchasing agency shall use the list when sending notice of intent to make cooperative, limited competitive, noncompetitive, and negotiated purchases.
  2. To become an approved vendor a person shall file an application with the office of management and budget. The application must contain information requested by the office of management and budget, including business and persons’ names, telephone numbers, addresses, federal tax identification numbers, type of business organization, the types of commodities or services for which the applicant is interested in receiving solicitations, and other business information the office of management and budget determines relevant. The application must also contain a statement appointing the secretary of state as the applicant’s agent for service of process pursuant to subsection 3. The application must be signed and certified by an owner, partner, or company officer authorized by company bylaws or other organizational document to bind the company. The signature requirement may include the use of an electronic signature as defined in section 9-16-01 when authorized under section 9-16-17. The office of management and budget may require proof of the signing person’s authority by certified copy of appropriate company documents.
  3. At the time of filing the application to become an approved vendor, the applicant, if organized as a corporation, limited liability company, limited liability partnership, or limited partnership, must be properly and currently registered with the secretary of state according to its type of business organization as a corporation under chapter 10-19.1, a limited liability company under chapter 10-32.1, a limited liability partnership under chapter 45-22, or a limited partnership under chapter 45-10.2. Any exemptions to registration under the above chapters that would otherwise apply to those entities organized as such do not apply to this section and registration must be made for the applicant to become an approved vendor. Applicants for approved vendor status using a trade name or a fictitious partnership name must be in full compliance with chapter 47-25 or 45-11 at the time of making the application. Whenever any registration required by this section is canceled, revoked, or not renewed, the vendor ceases to be an approved vendor.
  4. The procurement officer may authorize receipt of a bid or proposal from a vendor that is not on the list of approved vendors if the procurement officer makes a written determination that it is in the best interest of the state to receive the bid or proposal. The successful bidder or offeror must become approved before the award and the existence of this approval requirement must be stated in the solicitation. If an unapproved vendor is selected for award, the vendor’s bid or proposal may be rejected if that vendor fails to become approved within sixty days or within a shorter period as specified in writing by the procurement officer. Before issuing a solicitation, the procurement officer may waive the approval requirement if the procurement officer determines, in consultation with the secretary of state, that registration with the secretary of state and appointment of an agent for service of process in this state are not required. The waiver of the approval requirement must be stated in the solicitation. In the event that two or more bids contain identical pricing or receive identical evaluation scores, preference must be given pursuant to section 44-08-01.1. If the application of section 44-08-01.1 does not result in the award of a contract, preference must be given to bids submitted by vendors approved under this section.

By signing and filing the application, the vendor applicant appoints the secretary of state as its true and lawful agent for service of process in this state upon whom may be served all lawful process in any action or proceeding against the vendor if the vendor or its registered agent cannot be found for service of process in this state. The signed application is written evidence of the applicant’s consent that any process served against the applicant that is so served upon the secretary of state is of the same legal force and effect as if served upon the applicant personally within this state. Within ten days after service of the summons upon the secretary of state pursuant to this subsection, notice of the service with the summons and complaint in the action must be sent to the defendant vendor at the vendor’s last-known address by certified mail with return receipt requested and proof of mailing must be attached to the summons. The secretary of state shall keep a record of all process served upon the secretary of state under this section showing the day and hour of service. When service of process is made as provided in this subsection, the court, before entering a default judgment, or at any stage of the proceeding, may order a continuance as may be necessary to afford the defendant vendor reasonable opportunity to defend any action pending against the vendor.

Source:

S.L. 1999, ch. 474, § 14; 2001, ch. 492, § 3; 2003, ch. 495, § 13; 2005, ch. 528, § 2; 2005, ch. 381, § 2; 2005, 384, § 18; 2015, ch. 87, § 40, eff July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 40 of chapter 87, S.L. 2015 became effective July 1, 2015.

54-44.4-10. Competitive sealed proposals — Exempt records.

  1. A contract for commodities or services may be entered by competitive sealed proposals when a determination is made that the use of competitive sealed bidding is either not practicable or not advantageous to the state. The request for proposal must state the relative importance of price and other factors and subfactors, if any.
  2. Proposals must be opened so as to avoid disclosure of contents to competing offerors during the process of negotiation. All proposals received pursuant to a competitive sealed proposal process are exempt records under subsection 5 of section 44-04-17.1 until an award is made.
  3. Discussions may be conducted with responsible offerors who submit proposals determined to be reasonably susceptible of being selected for award for the purpose of clarification to assure full understanding of, and responsiveness to, the solicitation requirements. Offerors must be accorded fair and equal treatment with respect to any opportunity for discussion and revision of proposals, and revisions may be permitted after submissions and before award for the purpose of obtaining best and final offers. In conducting discussions, there may be no disclosure of any information derived from proposals submitted by competing offerors.
  4. Unless all proposals are rejected, award must be made to the responsible offeror whose proposal conforms to the solicitation and is determined, in writing, to be the most advantageous to the state, taking into consideration price and the evaluation factors set forth in the request for proposals. No other factors or criteria may be used in the evaluation. The contract file must contain the basis on which the award is made. Written notice of the award of the contract to the successful offeror must be promptly given to all offerors.

Source:

S.L. 2003, ch. 495, § 10.

54-44.4-11. Small purchases.

  1. A procurement not exceeding the amount established by written directive of the director of the office of management and budget or by the state board of higher education under subsection 5 of section 15-10-17 may be made in accordance with small purchase procedures.
  2. A small purchase need not be made through competitive sealed bidding or competitive sealed proposals. However, small purchases must be made with competition that is practicable under the circumstances.
  3. Procurement requirements may not be artificially divided as to constitute a small purchase under this section.

Source:

S.L. 2003, ch. 495, § 11; 2007, ch. 391, § 5.

54-44.4-12. Resolution of protested solicitations and awards.

  1. An interested party may protest the award of a contract, the notice of intent to award a contract, or a solicitation for commodities or services by the office of management and budget or purchasing agency under this chapter. The protest must be submitted in writing to the procurement officer responsible for the contract or solicitation within seven calendar days after the protestor knows or should have known of the facts giving rise to the protest.
  2. If a contract has been awarded, the procurement officer immediately shall give notice of a protest to the contractor. In the case of pending award, a stay of award may be requested. A stay must be granted unless a written determination is made that the award of the contract without delay is necessary to protect the interests of the state.
  3. If the protest is not resolved by mutual agreement, the procurement officer promptly shall send by certified mail to the protestor a written decision containing the basis for the decision and inform the protestor of the protestor’s right to appeal.
  4. The protestor may file an appeal of the decision rendered by the procurement officer with the director of the office of management and budget or designee. An appeal must be filed in writing within seven calendar days after the protestor receives the decision rendered by the procurement officer of the office of management and budget or the purchasing agency. The appeal must include a copy of the decision being appealed and the basis for the appeal. Within seven calendar days the director of the office of management and budget or the director’s designee shall send by certified mail written notice of the decision to the protestor.

Source:

S.L. 2003, ch. 495, § 12.

54-44.4-13. Cooperative purchasing.

  1. The office of management and budget shall purchase commodities or services as requested by agencies and institutions under the jurisdiction of the state board of higher education and the legislative and judicial branches of state government.
  2. The office of management and budget and the agencies and institutions under the jurisdiction of the state board of higher education shall make joint purchases of like commodities or services of high common usage when the office of management and budget and the state board of higher education determine it is in the best interest of the state.
  3. The director of the office of management and budget or the director’s designee may agree to purchase commodities or services under contracts entered into by the United States general services administration or contracts of other government entities if it is determined to be in the best interest of the state after consideration of price, contractual terms and conditions, and the availability of competition from approved vendors under section 54-44.4-09.
  4. The director of the office of management and budget or the director’s designee may participate in, sponsor, or administer a cooperative purchasing agreement with one or more government entities or a nonprofit organization established on behalf of public entities for the procurement of commodities or services in accordance with an agreement entered into between the participants.
  5. The director of the office of management and budget or the director’s designee may coordinate with the director of the department of transportation or the director’s designee to establish or participate in contracts which may be made available to entities that have been determined by the department of transportation to be transportation providers under chapter 39-04.2 eligible to receive state funds or federal funds for public transportation.
  6. Cooperative purchasing may include open-ended contracts that are available to other government entities, nonprofit organizations established on behalf of public entities, tribal agencies, or transportation providers determined to be eligible under this section.
  7. Before entering into a cooperative purchasing agreement under this section, the office of management and budget must determine that the contracts were awarded through full and open competition or source selection methods specified in section 54-44.4-05 and shall send notice to approved vendors of the office’s intent to make a cooperative purchase in accordance with this chapter.

Source:

S.L. 2005, ch. 527, § 2; 2013, ch. 430, § 2.

Effective Date.

The 2013 amendment of this section by section 2 of chapter 430, S.L. 2013 became effective March 27, 2013, pursuant to an emergency clause in section 3 of chapter 430, S.L. 2013.

54-44.4-13.1. Purchases — Payment.

The purchasing agency and the vendor may negotiate payment terms for all commodities and services procured. If a date for payment is not specified by the contract, payment must be made pursuant to section 13-01.1-01.

Source:

S.L. 2021, ch. 437, § 3, eff August 1, 2021.

54-44.4-14. Procurement information — Website.

  1. The office of management and budget shall establish and maintain a procurement information website on the internet. This procurement information website must provide current information regarding North Dakota government procurement opportunities in order to inform potential vendors of the commodities and services sought by state agencies and institutions. Notwithstanding section 54-44.4-09, for each purchase of services or commodities over the amount established for small purchases, the office of management and budget and every purchasing agency shall provide procurement information on the website. The time period and manner of providing procurement information on the website must be in accordance with rules adopted by the office of management and budget. The office of management and budget may contract with a third party to assist in providing or maintaining the procurement information website.
  2. A state agency or institution may elect to use the procurement information website for the purchase of services and commodities that are not subject to the procurement requirements of this chapter, including:
    1. Commodities and services exempted under section 54-44.4-02;
    2. Public improvements under title 48;
    3. Architect, engineer, construction management, and land surveying services under chapter 54-44.7; and
    4. Concessions under chapter 48-09.
  3. The office of management and budget shall establish and maintain a standardized procedure for the submission of electronic bids and proposals through the procurement information website. The office of management and budget, in consultation with the office of the attorney general, shall develop standardized solicitation documents. The documents must be made available on the procurement information website. When drafting a solicitation, the office of management and budget and purchasing agencies shall use their best efforts to minimize the length of the solicitation by ensuring only those sections from the standardized solicitation documents applicable to the procurement are included.

Source:

S.L. 2005, ch. 151, § 6; 2021, ch. 437, § 4, eff August 1, 2021.

CHAPTER 54-44.5 Division of Community Services

54-44.5-01. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

  1. “Community action agency” means a not-for-profit corporation that has authority under its charter and bylaws to receive funds to administer community action programs and which was officially designated as a community action agency or a community action program under section 210 of the Economic Opportunity Act of 1964 [Pub. L. 88-452; 78 Stat. 508; 42 U.S.C. 2701 et seq.] or any federal law concerning a block grant program or other appropriate federal funding of social or community services, unless the community action agency or a community action program lost its designation as a result of failure to comply with the provisions of federal law.
  2. “Community action program” means a community-based and operated program that includes an intake assessment and referral capability in each of its counties and is designed to include a number of projects or components to provide a range of services and activities having a measurable and potentially major impact on causes and conditions of poverty in the community or those areas of the community where poverty is a particularly acute problem. These services and activities may include activities designed to provide opportunities for eligible persons to:
    1. Secure and retain meaningful employment;
    2. Attain an adequate education;
    3. Make better use of available income;
    4. Obtain and maintain adequate housing and suitable living environment;
    5. Obtain emergency assistance through grants and loans to meet immediate and urgent individual and family needs, including the need for health services, nutritious food, housing, and employment-related assistance;
    6. Maximize the role community action agencies play in supportive mechanisms available to North Dakota families;
    7. Remove obstacles and solve problems that block achievement of self-sufficiency;
    8. Achieve greater participation in the affairs of the community;
    9. Make more effective use of other programs; and
    10. Engage in activities eligible for federal funding, including funding through a block grant for social or community services.
  3. “Department” means the department of commerce.
  4. “Director” means the director of the division.
  5. “Division” means the department division of community services.

Source:

S.L. 1983, ch. 570, § 1; 1997, ch. 462, § 1; 1999, ch. 475, § 5; 2001, ch. 488, § 45; 2005, ch. 530, § 1.

54-44.5-02. Division of community services — Creation.

The division of community services is established in the department to provide technical assistance to local governments, state agencies, and the executive branch in the area of community and rural planning and development, policy research and development, and grant program implementation. The commissioner shall appoint a director of the division upon the basis of education and experience. The position of director is not a classified position and the director shall serve at the pleasure of the commissioner. The director of the division may employ such other professional, technical, and clerical persons as may be necessary and may fix their compensation within the limits of legislative appropriation. All personnel within the division must be allowed their actual and necessary travel expenses at the same rate as for other employees of the state.

Source:

S.L. 1983, ch. 570, § 2; 1995, ch. 512, § 5; 1999, ch. 475, § 6; 2001, ch. 488, § 46.

54-44.5-03. Powers and duties of the director.

The director shall direct and supervise, with the approval of the commissioner, all the administrative and technical activities of the division.

Source:

S.L. 1983, ch. 570, § 3; 1999, ch. 475, § 7; 2001, ch. 488, § 47.

54-44.5-04. Division of community services — Powers and duties.

The division of community services shall:

  1. Provide relevant information on pertinent topics and issues which relate to public policy development, interpretation, modification, and implementation.
  2. Develop state energy conservation policy and manage federal energy conservation program activities between all levels of the public and private sectors regarding the prudent and efficient use of energy resources.
  3. Develop, implement, and administer federal categorical and block grant programs assigned to the division.
  4. Advise, coordinate, and assist cities, political subdivisions, and the state in all phases of state and local planning for the physical development of the state.
  5. Render financial assistance to any government planning agency within federal law or regulation.
  6. Advise, consult, coordinate, assist, and contract with or on behalf of the various planning agencies in developing and harmonizing planning activities of the state.
  7. Implement a state facility energy improvement program.

Source:

S.L. 1983, ch. 570, § 4; 1999, ch. 458, § 2; 1999, ch. 475, § 8; 2011, ch. 439, § 2.

54-44.5-05. Continuing appropriation.

There is hereby appropriated as a standing and continuing appropriation to the department for the purpose of carrying out the provisions of this chapter, including the administration of such provisions, all moneys returned as repayments of federal or other funds granted under the community development loan fund, and all earnings from the investment of such moneys, which may be received from time to time by the division. Administrative expenses may only be charged against such moneys to the extent permitted by federal law or regulations.

Source:

S.L. 1991, ch. 623, § 1; 1999, ch. 475, § 9; 2001, ch. 488, § 48.

54-44.5-05.1. Energy conservation grant fund — Continuing appropriation.

The energy conservation grant fund is a special fund in the state treasury. All funds in the energy conservation grant fund are appropriated to the department on a continuing basis for the purpose of providing grants to political subdivisions for energy conservation projects in nonfederal public buildings. The department shall develop guidelines to qualify for a grant under this section which must include a requirement that projects have a combined payback period of ten years or less, a matching requirement of one dollar of matching funds for every dollar of grant funds, and a maximum grant amount of one hundred thousand dollars. Interest earned by the fund must be credited to the fund.

Source:

S.L. 2013, ch. 45, § 26.

Effective Date.

This section is effective July 1, 2013.

54-44.5-06. Community action agency board of directors — Qualifications — Powers — Duties.

Each community action agency must have a board of directors, as provided by the bylaws of the corporation, that is consistent with federal law concerning community action agencies that are eligible to receive federal funding through a block grant or other appropriate federal sources for social or community services. The board shall determine personnel, fiscal, and program policies and shall approve proposals of financial assistance and the disbursement of funds.

Source:

S.L. 1997, ch. 462, § 2; 2005, ch. 530, § 2.

54-44.5-07. Funding — Community action agency’s share of funds — How determined.

  1. If the Congress of the United States approves a block grant system to fund social or community programs, the state may use, subject to legislative appropriation, the block grant funds or in-kind services to provide a level of financial assistance for community action agencies to carry out community action programs through the community services block grants pursuant to the federal Community Services Block Grant Act [Pub. L. 97-35; 95 Stat. 511; 42 U.S.C. 9903] or any other block grant or other federal funding sources that may be appropriate.
  2. The division shall distribute the federal community services block grant funds received under the federal Community Services Block Grant Act [Pub. L. 97-35; 95 Stat. 511; 42 U.S.C. 9903] or any other block grant or other appropriate federal funding source and shall allocate the funds as follows, unless a different amount is mandated by federal law:
    1. At least ninety percent must be allocated to community action agencies;
    2. The greater of fifty-five thousand dollars or five percent may be allocated for state administrative expenses; and
    3. Not more than five percent may be allocated for state discretionary projects.
  3. Each community action agency, in accordance with procedures established by the division, is entitled to receive a portion of available federal Community Services Block Grant Act [Pub. L. 97-35; 95 Stat. 511; 42 U.S.C. 9903] or any other block grant funds or other appropriate federal funding source, if it is consistent with federal law, based on that agency’s poverty population relative to the state’s total poverty population. The division shall determine poverty levels using criteria established by the United States office of management and budget.
  4. Each community action agency is governed by procedures established by the division as it relates to the community services block grant program.

Source:

S.L. 1997, ch. 462, § 2; 1999, ch. 475, § 10; 2005, ch. 530, § 3.

54-44.5-08. State facility energy improvement program.

By August fifteenth of each odd-numbered year, the office shall inform all state agencies and institutions of the state facility energy improvement program. The office shall work with interested agencies and institutions to identify potential state facility energy improvement programs and select facilities for indepth energy audits designed to provide information on project costs along with estimated energy savings from implementation of those projects. The office shall notify affected utilities to discuss the potential impact on the utility and its customers of the proposed energy savings or conservation project. Upon completion of the energy audit, the office, in consultation with the interested agencies or institutions, shall submit a list of proposed projects to the governor, accompanied with the estimated cost of each project and energy savings resulting from the projects. The office shall submit a report listing the proposed energy savings or conservation projects to the governor by September first of each even-numbered year. The governor shall include the proposed energy efficiency or conservation projects in the biennial budget. The governor shall make available to the legislative assembly a report prepared by the office on each energy efficiency or conservation project, a description of the improvements to be financed, the estimated cost of each project, the total cost of the program, and the proposed method of financing the program. If the office proposes that evidences of indebtedness be issued to finance the energy efficiency or conservation improvements, the office shall provide an assurance that energy savings resulting from the improvements will be sufficient to equal or exceed the annual debt service of the evidences of indebtedness. In determining whether the energy savings will be sufficient to equal or exceed the annual debt service, the office, in consultation with the interested agencies or institutions, may analyze state agency utility data to identify potential projects; perform detailed energy audits of state facilities, including contracting for audits if necessary; and provide training to facility maintenance staff to ensure that sufficient cost-savings are realized from projects to cover the debt service. The governor shall include in the executive budget recommendation for each state agency or institution participating in the state facility energy improvement program an estimate of the annual energy cost-savings expected for that agency, and, if needed, a projection of the debt service on program bonds that is apportioned to that agency. The executive budget recommendation must then reduce the current level of utility appropriations by the amount needed for debt service retirement and recommend an appropriation of that amount to the state building authority. Any appropriation of an amount needed for debt service retirement to the state building authority is not subject to the limitation contained in section 54-17.2-23.

Source:

S.L. 1999, ch. 458, § 3.

54-44.5-09. Office of renewable energy and energy efficiency.

The office of renewable energy and energy efficiency is established within the division of community services. The office shall assist in the development of renewable energy within this state to provide secure, diverse, sustainable, and competitive renewable energy supplies and promote the conservation of energy and the wise use of energy resources in both the public and private sectors. The office shall communicate and disseminate information concerning state and federal energy conservation and renewable energy incentives, including tax credits, financing and grants to business entities seeking to invest in wind-generated power and transmission, ethanol production and distribution, and the development of biodiesel, green diesel, biomass, solar, hydropower, geothermal, and other renewable energy sources. The office also shall manage and distribute all production incentive payments as authorized by chapter 17-02.

Source:

S.L. 2005, ch. 46, § 39; 2011, ch. 460, § 7.

CHAPTER 54-44.6 Forms Management

54-44.6-01. Declaration of legislative intent.

The legislative assembly finds and declares that there is a need to minimize the governmental paperwork burden for state and local government entities, individuals, businesses, and others; that the costs of collecting, maintaining, using, and disseminating information are constantly escalating due to the increasingly voluminous and complex nature of state statutes and regulations; that there is a need to coordinate, integrate, and to the extent practicable and appropriate, make uniform the information policies and practices in North Dakota; and that the governmental paperwork burden can best be eased by establishing a statewide forms management program within the information technology department.

Source:

S.L. 1983, ch. 571, § 3; 2003, ch. 496, § 1.

54-44.6-02. Definitions.

As used in this chapter, unless the context or subject matter otherwise requires:

  1. “Agency” means any department, office, commission, board, or other unit, however designated, of the executive branch of state government.
  2. “Form” means any document designed to record information and containing blank spaces and which may contain headings, captions, boxes, or other printed or written devices to guide the entry and interpretation of the information.

Source:

S.L. 1983, ch. 571, § 3.

54-44.6-03. State forms manager.

The chief information officer of the state shall serve as the state forms manager. The manager shall administer in the executive branch of state government the forms management program established by this chapter. The program must apply efficient and economical management methods to the creation and utilization of state forms.

Source:

S.L. 1983, ch. 571, § 3; 1991, ch. 614, § 2; 1999, ch. 483, § 23.

54-44.6-04. Duties of manager.

The manager shall:

  1. Establish a statewide forms management program, prescribing the standards and procedures for forms creation and utilization.
  2. Conduct surveys of forms management practices to identify forms which can be standardized, consolidated, or eliminated as duplicative and unnecessary.
  3. Assist agencies in the design of those forms which cannot be eliminated to minimize the effort and costs required to complete them.
  4. Establish a forms management program to provide agencies with forms design and revision services and to develop and implement standards for design, typography, format, data sequence, analysis, and numbering of state forms.
  5. Establish a central state form numbering system and a central cross-index filing system of state forms.
  6. Provide training for agency forms coordinators.

Source:

S.L. 1983, ch. 571, § 3.

54-44.6-05. Duties of agencies.

Each agency shall:

  1. Establish and maintain an active, continuing program for the economical and efficient management of forms and cooperate with the manager in the conduct of forms management surveys.
  2. Implement forms management rules and procedures issued by the manager.
  3. Designate an agency forms coordinator who shall cooperate with the manager in the development of the content requirements of the form design process and who shall otherwise assist the agency and the office in implementing the provisions of this chapter.

Source:

S.L. 1983, ch. 571, § 3.

54-44.6-06. Forms review.

Agencies must submit any proposed new or revised form to the manager for review. The manager shall analyze the form, advise the affected agency of comments and recommendations, and assist the agency with any recommended revision of the form.

Source:

S.L. 1983, ch. 571, § 3.

54-44.6-07. Assistance to legislative and judicial branches.

Upon request, the manager shall assist and advise in the establishment of forms management programs in the legislative and judicial branches of state government and shall, as required by them, provide services similar to those available to the executive branch of state government.

Source:

S.L. 1983, ch. 571, § 3.

54-44.6-08. Rules.

The manager may adopt any rules in accordance with chapter 28-32 necessary to effectuate the purposes of this chapter.

Source:

S.L. 1983, ch. 571, § 3; 2019, ch. 458, § 1, eff August 1, 2019.

CHAPTER 54-44.7 Architect, Engineer, and Land Surveying Services

54-44.7-01. Definition.

“Architect, engineer, construction management, and land surveying services” are those professional services associated with the practice of architecture, professional engineering, professional land surveying, landscape architecture, interior design pertaining to construction, and construction management, as defined by the laws of this state, as well as incidental services that members of these professions and those in their employ may logically or justifiably perform, including studies, investigations, surveys, evaluations, consultations, planning, programming, conceptual designs, plans and specifications, cost estimates, inspections, construction management, shop drawing reviews, sample recommendations, preparation of operating and maintenance manuals, and other related services, except for professional services related to prefabricated steel for bridge purposes.

Source:

S.L. 1985, ch. 578, § 1; 2001, ch. 411, § 2.

54-44.7-02. Applicability — Policy.

Architect, engineer, construction management, and land surveying services must be procured as provided in this chapter. It is the policy of this state that all North Dakota state agencies shall negotiate contracts for services on the basis of demonstrated competence and qualification for the particular type of services required.

Source:

S.L. 1985, ch. 578, § 2; 2001, ch. 411, § 3.

54-44.7-03. Procurement procedures.

  1. Each using agency shall establish its own architect, engineer, construction management, and land surveying services selection committee hereinafter referred to as the agency selection committee, which must be composed of those individuals whom the agency head determines to be qualified to make an informed decision as to the most competent and qualified firm for the proposed project. The head of the using agency or that person’s qualified, responsible designee shall sit as a member of the agency selection committee for the purpose of coordinating and accounting for the committee’s work.
  2. The agency selection committee is responsible for all of the following:
    1. Developing a description of the proposed project.
    2. Enumerating all required professional services for that project.
    3. Preparing a formal invitation to firms for submission of information. The invitation must include, but not be limited to, the project title, the general scope of work, a description of all professional services required for that project, and the submission deadline. The invitation or notice thereof must be published. Upon written request, the agency shall also mail copies of the invitation to any interested party. The manner in which this must be published, the content of the publication, and the frequency of the publication, must be established by regulation of the agency selection committee.
  3. The date for submission of information from interested persons or firms in response to an invitation must be not less than twenty-one days after publication of the invitation. Interested architect, engineer, and land surveying persons or firms must be required to respond to the invitation with the submission of the information required in general services administration form SF 330, architect-engineer qualifications for specific project, or similar information as the agency selection committee may prescribe by rule.
  4. Following receipt of information from all interested persons and firms, the agency selection committee shall hold interviews with at least three persons or firms who have responded to the committee’s advertisement and who are deemed most qualified on the basis of information available prior to the interviews. If less than three persons or firms have responded to the advertisement, the committee shall readvertise or hold interviews with those who did respond. The agency selection committee’s determination as to which will be interviewed must be in writing and must be based upon its review and evaluation of all submitted materials. The written report of the committee must specifically list the names of all persons and firms that responded to the advertisement and enumerate the reasons of the committee for selecting those to be interviewed. This written report must be available to the public upon written request. The purpose of the interviews must be to provide such further information as may be required by the agency selection committee to fully acquaint itself with the relative qualifications of the several interested persons or firms.
  5. The agency selection committee shall evaluate each of the persons or firms interviewed on the basis of the following criteria:
    1. Past performance.
    2. The ability of professional personnel.
    3. Willingness to meet time and budget requirements.
    4. Location, with higher priority given to firms headquartered in North Dakota.
    5. Recent, current, and projected workloads of the persons or firms.
    6. Related experience on similar projects.
    7. Recent and current work for the agency.
  6. The agency selection committee shall submit its written report ranking the interviewed persons or firms to the governing body of the using agency for its evaluation and approval. When it is determined that the ranking report is final by the agency, written notification of the selection and order of preference must be immediately sent to all of those that responded to the agency selection committee’s invitation to submit information.
  7. The governing body of the using agency or its designee shall negotiate a contract for services with the most qualified person or firm, at a compensation which is fair and reasonable to the state, after notice of selection and ranking. Should the governing body of the using agency or its designee be unable to negotiate a satisfactory contract with this person or firm, negotiations must be formally terminated. Negotiations must commence in the same manner with the second and then the third most qualified until a satisfactory contract has been negotiated. If no agreement is reached, three additional persons or firms in order of their competence and qualifications must be selected after consultation with the agency selection committee, and negotiations must be continued in the same manner until agreement is reached.

Based upon these evaluations, the agency selection committee shall select the three which, in its judgment, are most qualified, ranking the three in priority order. The agency selection committee’s report ranking the interviewed persons or firms must be in writing and must include data substantiating its determinations. This data must be available to the public upon written request.

Source:

S.L. 1985, ch. 578, § 3; 2001, ch. 411, § 4; 2013, ch. 49, § 12; 2017, ch. 57, § 11, eff August 1, 2017; 2017, ch. 380, § 1, eff August 1, 2017.

Effective Date.

The 2013 amendment of this section by section 12 of chapter 49, S.L. 2013 became effective July 1, 2013.

Note.

Section 54-44.7-03 was amended 2 times by the 2017 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 1 of Chapter 380, Session Laws 2017, House Bill 1189; and Section 11 of Chapter 57, Session Laws 2017, House Bill 1043.

54-44.7-04. Exception.

  1. All state agencies securing architect, engineer, construction management, or land surveying services for projects for which the fees are estimated not to exceed thirty-five thousand dollars may employ the architects, engineers, construction managers, and land surveyors by direct negotiation and selection, taking into account all of the following:
    1. The nature of the project.
    2. The proximity of the architect, engineer, construction management, or land surveying services to the project.
    3. The capability of the architect, engineer, construction manager, or land surveyor to produce the required services within a reasonable time.
    4. Past performance.
    5. Ability to meet project budget requirements.
  2. Fees paid pursuant to this section during the twelve-month period immediately preceding negotiation of the contract by any single state agency for professional services performed by any one architectural, engineering, or land surveying person or firm may not exceed seventy thousand dollars. All persons or firms seeking to render professional services pursuant to this section shall furnish the state agency with which the firm is negotiating a list of professional services, including the fees paid, performed for the state agency during the twelve months immediately preceding the contract being negotiated.

This procedure shall still follow state policy set forth above.

Source:

S.L. 1985, ch. 578, § 4; 2001, ch. 411, § 5; 2007, ch. 480, § 1; 2017, ch. 380, § 2, eff August 1, 2017.

54-44.7-05. Splitting projects or services contracts prohibited.

No using agency may separate service contracts or split or break projects for the purpose of circumventing the provisions of this chapter.

Source:

S.L. 1985, ch. 578, § 5.

CHAPTER 54-44.8 Communications-Impaired Telecommunications Services

54-44.8-01. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Administrator” means the individual employed by the chief information officer of the state to oversee administration of the program.
  2. “Commission” means the public service commission.
  3. “Communications impaired” means the condition of an individual who is deaf, hearing impaired, speech impaired, or mobility impaired so as to be unable to use a telephone readily purchased from a retail store.
  4. “Department” means the information technology department.
  5. “Disadvantaged” means residing in a household that has a median income not more than the applicable median income in this state, except the term includes residing in a household that has a median income not more than one hundred fifty percent of the applicable median income in this state if the resident is deaf.
  6. “Local exchange company” means a telecommunications company that provides telephone access lines to members of the general public who are its customers.
  7. “Program” means the program established under section 54-44.8-03.
  8. “Radio communications access” means the radio access between a customer of a radio communications service provider and the provider.
  9. “Radio communications service provider” means a telecommunications company that provides radio communication service or cellular service to members of the general public who are its customers.
  10. “Specialized telecommunications equipment” means a dedicated telecommunications device that, when connected to a telephone, enables or assists a person who is communications impaired to communicate with another person utilizing the telephone network. The term may include telecommunications devices for the deaf, amplifiers, and signaling devices. Specialized telecommunications equipment provided under this chapter to an individual may not exceed two thousand dollars in total cost per device.
  11. “Telecommunications relay service” means a statewide service through which a communications-impaired individual, using specialized telecommunications equipment, may send and receive messages to and from a noncommunications-impaired individual whose telephone is not equipped with specialized telecommunications equipment and through which a noncommunications-impaired individual, by using voice communication, may send and receive messages to and from a communications-impaired individual.
  12. “Telephone access line” means the facilities between a serving central office and the customer of a local exchange company which are required to provide access to the local and toll network.

Source:

S.L. 1993, ch. 529, § 1; 1999, ch. 476, § 1; 1999, ch. 483, § 24; 2005, ch. 12, § 19.

54-44.8-02. Responsibilities of the administrator.

The administrator shall oversee the department’s administration of the program. The administrator shall:

  1. Review and recommend policies and procedures governing administration of the program and ensure the program is in compliance with any applicable state or federal law or rule;
  2. Prepare a budget for administration of services under the program;
  3. Monitor the expenditures of funds for the program;
  4. Monitor the quality of the program and the satisfaction of the users; and
  5. Perform any other duties necessary to oversee administration of the program.

Source:

S.L. 1993, ch. 529, § 2; 1999, ch. 483, § 25.

54-44.8-03. Program established — Purpose. [Effective through August 31, 2022]

  1. The department shall establish and administer a program to provide telecommunications relay service to persons who are communications impaired.
  2. The program shall provide a telecommunications relay service to allow persons who are communications impaired to communicate via the telecommunications network with noncommunications-impaired persons.
  3. The department of human services shall furnish specialized telecommunications equipment to meet the needs of individuals who are communications impaired and who might be otherwise disadvantaged in their ability to obtain such equipment. The department of human services shall determine eligibility and may provide the specialized telecommunications equipment to individuals determined eligible within the limits of funding made available to the department of human services through gifts and grants received under section 54-44.8-06 and from funding made available by the information technology department from the surcharge collected pursuant to section 54-44.8-08, which are appropriated.

Source:

S.L. 1993, ch. 529, § 3; 1999, ch. 476, § 2; 1999, ch. 483, § 26.

54-44.8-03. Program established — Purpose. [Effective September 1, 2022]

  1. The department shall establish and administer a program to provide telecommunications relay service to persons who are communications impaired.
  2. The program shall provide a telecommunications relay service to allow persons who are communications impaired to communicate via the telecommunications network with noncommunications-impaired persons.
  3. The department of health and human services shall furnish specialized telecommunications equipment to meet the needs of individuals who are communications impaired and who might be otherwise disadvantaged in their ability to obtain such equipment. The department of health and human services shall determine eligibility and may provide the specialized telecommunications equipment to individuals determined eligible within the limits of funding made available to the department of health and human services through gifts and grants received under section 54-44.8-06 and from funding made available by the information technology department from the surcharge collected pursuant to section 54-44.8-08, which are appropriated.

Source:

S.L. 1993, ch. 529, § 3; 1999, ch. 476, § 2; 1999, ch. 483, § 26; 2021, ch. 352, § 493, eff September 1, 2022.

54-44.8-04. Responsibilities of the department.

The department shall:

  1. Develop rules, policies, and procedures, as may be necessary, to govern administration of the program.
  2. Implement the telecommunications relay service as described in subsection 2 of section 54-44.8-03 by July 26, 1993, to the extent funds generated by the surcharge described in section 54-44.8-10 are available.
  3. Perform any other duties necessary to properly administer the program.

Source:

S.L. 1993, ch. 529, § 4; 1999, ch. 483, § 27.

54-44.8-05. Telecommunications relay service — Requirements.

  1. The department shall contract with a qualified provider to design and implement a telecommunications relay service that fulfills the requirement of subsection 2 of section 54-44.8-03. The department shall award the contract for this service to the offeror whose proposal is the most advantageous to the state; considering price, the interests of the communications-impaired community in having access to a high quality and technologically advanced telecommunications system, and all other factors listed in the request for proposals.
  2. Except in cases of willful misconduct, gross negligence, or bad faith, neither the department nor the provider of the telecommunications relay service, nor the employees of the provider, are liable for any damages or claims for relief arising out of or resulting from the establishment of, participation in, or operation of the telecommunications relay service.
  3. The department shall require, under the terms of the contract, that:
    1. The service be available statewide for operation seven days a week, twenty-four hours per day, including holidays, for both interstate and intrastate calls.
    2. The service relay all messages promptly and accurately.
    3. The service maintain the privacy of persons using the system.
    4. The provider preserve the confidentiality of all telephone communications.
    5. The service conform to any standards established by applicable state or federal laws or rules.

Source:

S.L. 1993, ch. 529, § 5; 1999, ch. 483, § 28.

54-44.8-06. Gifts and grants. [Effective through August 31, 2022]

The department of human services may accept contributions and gifts and may apply for and accept grants, in money or otherwise, to the program. Monetary contributions, gifts, and grants must be deposited in the state treasury to be credited to the department of human services operating account.

Source:

S.L. 1993, ch. 529, § 6; 1999, ch. 476, § 3.

54-44.8-06. Gifts and grants. [Effective September 1, 2022]

The department of health and human services may accept contributions and gifts and may apply for and accept grants, in money or otherwise, to the program. Monetary contributions, gifts, and grants must be deposited in the state treasury to be credited to the department of health and human services operating account.

Source:

S.L. 1993, ch. 529, § 6; 1999, ch. 476, § 3; 2021, ch. 352, § 494, eff September 1, 2022.

54-44.8-07. Telecommunications services account for the communications impaired.

The telecommunications services account for the communications impaired consists of all surcharges billed and collected pursuant to section 54-44.8-08. Subject to legislative appropriation, the department may expend moneys from the account for purposes of implementing this chapter.

Source:

S.L. 1993, ch. 529, § 7; 1999, ch. 483, § 29.

54-44.8-08. Telephone access line and radio communications access surcharge.

  1. Before May first of each year, the department shall report all cost data and other information to the commission. Each local exchange company and radio communications service provider shall report all information requested by the department in order to determine the number of telephone access lines and radio communications access service numbers. Before June first of each year, the commission shall determine the amount of a surcharge, not to exceed eleven cents per telephone access line per month, based upon available cost data and other information provided by the department necessary to cover the costs of providing intrastate telecommunications relay service as provided in section 401 of the federal Americans with Disabilities Act of 1990 [47 U.S.C. 225], including the cost of implementing and administering this chapter which includes the provision of specialized equipment to eligible persons, and taking into consideration any surplus in the telecommunications services account. The surcharge is imposed effective on its determination by the commission and must be billed and collected as provided in this chapter. The surcharge is subject to section 49-21-01.3. Funding for the interstate portion of the state telecommunications relay service must be provided in a manner consistent with rules and orders adopted by the federal communications commission in implementing the federal Americans with Disabilities Act. The department shall notify each local exchange company and radio communications service provider, in writing, of the amount of the monthly surcharge determined by the commission.
  2. Each local exchange company and radio communications service provider shall include and identify the surcharge determined under subsection 1 in its monthly billing for service to a customer of the company or provider.
  3. Each customer of a local exchange company or radio communications service provider is liable for payment to the local exchange company or radio communications service provider of any surcharge imposed pursuant to this chapter. The local exchange company or radio communications service provider is not liable for any uncollected surcharge, nor does the company have an obligation to take any legal action to enforce the collection of any surcharge that is unpaid by its customers.
  4. No customer of a local exchange company may be required to pay the surcharge on more than one hundred telephone access lines per account and no customer of a radio communications service provider may be required to pay the surcharge on more than one hundred radio communications access service numbers per account in this state.
  5. Except as provided in subsection 6, a local exchange company or radio communications service provider shall transmit all surcharges billed and collected to the department no later than the last day of the month following the end of the calendar quarter in which the surcharge is collected. The administrator shall remit the surcharges received to the state treasurer. The state treasurer shall deposit all surcharges received in the state treasury to the credit of the telecommunications services account for the communications impaired.
  6. Each local exchange company or radio communications service provider may deduct and retain five percent of the total surcharges billed and collected each month to cover its administrative expense in complying with the requirements of subsections 2, 3, 4, and 5.

Source:

S.L. 1993, ch. 529, § 8; 1999, ch. 483, § 30.

54-44.8-09. Records — Audit.

Each local exchange company or radio communications service provider shall maintain a record of the surcharges billed and collected pursuant to section 54-44.8-08 for a period of three years from the date of billing or collection, respectively. The commission may audit each local exchange company’s or radio communications service provider’s records to assure compliance with this chapter.

Source:

S.L. 1993, ch. 529, § 9.

CHAPTER 54-45 Civil Air Patrol

54-45-00.1. Civil air patrol defined — Declaration of policy.

“Civil air patrol” means the private nonprofit corporation chartered under federal law [36 U.S.C. 201-208]. It is the purpose of this chapter to declare the intent of the state of North Dakota to continue to provide financial support to the North Dakota wing of the civil air patrol to enable the civil air patrol to continue to provide to the state of North Dakota communications services, cadet training, disaster relief, search and rescue missions or assistance, and other related functions within the scope of the activity of the civil air patrol and administrative support personnel necessary to support these services and functions.

Source:

S.L. 1991, ch. 613, § 1.

54-45-01. Department of civil air patrol — Commanding officer. [Repealed]

Repealed by S.L. 1991, ch. 613, § 5.

54-45-02. Cooperation with state and federal governments. [Repealed]

Repealed by S.L. 1991, ch. 613, § 5.

54-45-03. Expenditure of funds — Limitation.

The commanding officer, North Dakota wing, civil air patrol, may expend appropriated grant funds as administered by the adjutant general. A report of expenditure of grant funds must be issued to the adjutant general annually. A general fund grant line item must be appropriated within the adjutant general’s budget. These funds may be expended to support the mission of the civil air patrol as determined by the commanding officer. No funds may be expended for uniforms or personal equipment of any member of the civil air patrol. All state equipment on inventory with the civil air patrol on July 7, 1991, and related to the mission of the civil air patrol must be transferred to the North Dakota wing of the civil air patrol.

Source:

S.L. 1959, ch. 364, §§ 3, 4; 1977, ch. 498, § 1; 1979, ch. 569, § 2; 1991, ch. 613, § 2; 1995, ch. 39, § 7.

54-45-04. Workmen’s compensation coverage authorized. [Repealed]

Repealed by S.L. 1991, ch. 613, § 5.

CHAPTER 54-46 Records Management

54-46-01. Short title.

This chapter must be known as the Records Management Act.

Source:

S.L. 1961, ch. 333, § 1.

Law Reviews.

North Dakota’s Historic Preservation Law, Robert E. Beck, 53 N.D. L. Rev. 177 (1976).

54-46-02. Definitions.

As used in this chapter, unless the context or subject matter otherwise requires:

  1. “Agency” means any department, office, commission, board, or other unit, however designated, of the executive branch of state government, including the state board of higher education and the entities under the control of the state board of higher education.
  2. “Record” means document, book, paper, photograph, sound recording or other material, regardless of physical form or characteristics, made or received pursuant to law or in connection with the transaction of official business. Library and museum material made or acquired and preserved solely for reference or exhibition purposes, extra copies of documents preserved only for convenience of reference, and stocks of publications and of processed documents are not included within the definition of records as used in this chapter.
  3. “State record” means:
    1. A record of a department, office, commission, board, or other agency, however designated, of the state government.
    2. A record of the state legislative assembly held by an agency.
    3. A record of any court of record, whether of statewide or local jurisdiction.
    4. Any other record designated or treated as a state record under state law.

Source:

S.L. 1961, ch. 333, § 3; 2011, ch. 430, § 1; 2015, ch. 130, § 2, eff July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 2 of chapter 130, S.L. 2015 became effective July 1, 2015.

Law Reviews.

Article: The Uniform Electronic Legal Material Act: “Desirable And Practicable” For North Dakota? 87 N.D. L. Rev. 325 (2011).

54-46-03. State records administrator.

The chief information officer of the state or an individual designated by the chief information officer shall serve as the state records administrator, in this chapter referred to as the administrator. The administrator shall establish and administer in the executive branch of state government a records management program, which will apply efficient and economical management methods to the creation, utilization, maintenance, retention, and final disposition of state records.

Source:

S.L. 1961, ch. 333, § 4; 1977, ch. 502, § 14; 1985, ch. 82, § 129; 1991, ch. 614, § 3; 1999, ch. 483, § 31.

Cross-References.

Central microfilm unit, administrator to establish and operate, see N.D.C.C. § 54-46.1-01.

54-46-03.1. Transfer of records management functions authorized. [Repealed]

Repealed by S.L. 1985, ch. 82, § 162.

54-46-04. Duties of administrator.

The administrator shall, with due regard for the functions of the agencies concerned:

  1. Establish standards, procedures, and techniques for effective management of records.
  2. Make continuing surveys of paperwork operations and recommend improvements in current records management practices including the use of space, equipment, and supplies employed in creating, maintaining, storing, and servicing records.
  3. Establish standards for the preparation of schedules providing for the retention of state records of continuing value and for the final disposition of state records no longer possessing administrative, legal, or fiscal value.
  4. Obtain reports from agencies as are required for the administration of the program.

Source:

S.L. 1961, ch. 333, § 5; 1977, ch. 502, § 15.

54-46-05. Duties of agency heads.

The head of each agency shall:

  1. Establish and maintain an active, continuing program for the economical and efficient management of the records of the agency.
  2. Make and maintain records containing adequate and proper documentation of the organization, functions, policies, decisions, procedures, and essential transactions of the agency designed to furnish information to protect the legal and financial rights of the state and of persons directly affected by the agency’s activities.
  3. Submit to the administrator, in accordance with the standards adopted by the administrator, schedules proposing the length of time each state record series warrants retention for administrative, legal, or fiscal purposes after it has been received by the agency.
  4. Submit to the administrator lists of state records in the custody of the agency which are not needed in the transaction of current business and which do not have administrative, legal, or fiscal value.
  5. Cooperate with the administrator in the conduct of surveys made by the administrator pursuant to this chapter.
  6. Comply with the rules, standards, and procedures adopted by the administrator.

Source:

S.L. 1961, ch. 333, § 6; 1977, ch. 502, § 16; 1991, ch. 614, § 4.

54-46-06. Assistance to legislative and judicial branches.

Upon request, the administrator shall assist and advise in the establishment of records management programs in the legislative and judicial branches of state government and shall, as required by them, provide program services similar to those available to the executive branch of state government pursuant to the provisions of this chapter.

Source:

S.L. 1961, ch. 333, § 7.

54-46-07. Records not to be destroyed or removed.

All records made or received by or under the authority of or coming into the custody, control, or possession of public officials of this state in the course of their public duties are the property of the state and may not be mutilated, destroyed, transferred, removed, sold, or otherwise damaged or disposed of, in whole or in part, except as provided by law. Each state agency and political subdivision of this state shall notify the state records management administrator of unlawful actions affecting records. Public records that have been unlawfully removed must be returned to the office of origin or to the state archivist.

Source:

S.L. 1961, ch. 333, § 8; 2011, ch. 430, § 2.

Cross-References.

Juvenile court records, authorization of destruction, see N.D.C.C. § 27-20-54.

54-46-08. Determination necessary for final disposition of records.

Prior to the final disposition of any type or class of record, the administrator, after consultation with the official or department head concerned, the attorney general, the state auditor, and the state archivist, shall determine that the type or class of record has no further administrative, legal, or fiscal value and is subject to final disposition under section 54-46-08.1 or section 54-46-09. If a statute requiring retention of a record does not either provide a specific retention period or specifically provide that the record be permanently retained, the administrator, after completing the consultation required by this section, shall establish a specific retention period for the record. The administrator shall annually survey the state agencies and shall order final disposition under section 54-46-08.1 or section 54-46-09 of any records which have been determined to have no further administrative, legal, or fiscal value pursuant to this section.

Source:

S.L. 1961, ch. 333, § 9; 1971, ch. 512, § 1; 1977, ch. 502, § 17; 1993, ch. 530, § 1.

54-46-08.1. Preservation of records found to be archival resources.

The official or department head concerned and the state archivist shall review any records determined to be subject to final disposition under section 54-46-08. Any records found to be of permanent value for research, reference, or other use appropriate to document the organization, function, policies, and transactions of government must be transferred to the state archivist for preservation as archival resources.

Source:

S.L. 1973, ch. 431, § 1; 1977, ch. 502, § 18.

Cross-References.

State archivist, see N.D.C.C. ch. 55-02.1.

Law Reviews.

Article: The Uniform Electronic Legal Material Act: “Desirable And Practicable” For North Dakota? 87 N.D. L. Rev. 325 (2011).

54-46-09. Destruction of nonrecord materials and nonarchival resources.

Nonrecord materials or materials not included within the definition of records as contained in this chapter may, if not otherwise prohibited by law, be destroyed at any time by the agency in possession of such materials without the prior approval of the administrator. The administrator may formulate procedures and interpretation to guide in the disposition of nonrecord materials. Records determined to be subject to final disposition under section 54-46-08 and not found to be of value as archival resources under section 54-46-08.1 must be destroyed by any suitable means as determined by the administrator.

Source:

S.L. 1961, ch. 333, § 10; 1977, ch. 502, § 19.

54-46-10. Rules and regulations.

The administrator shall promulgate such rules and regulations as are necessary or proper to effectuate the purposes of this chapter.

Source:

S.L. 1961, ch. 333, § 11.

54-46-11. Annual report.

The annual report of the information technology department made in accordance with section 54-59-19 must describe the status and progress of programs established pursuant to this chapter and must include the recommendations of the administrator for improvements in the management of records in the state government.

Source:

S.L. 1961, ch. 333, § 12; 1963, ch. 346, § 68; 1973, ch. 403, § 52; 1975, ch. 466, § 55; 1985, ch. 82, § 130; 1995, ch. 350, § 51; 2007, ch. 492, § 1.

54-46-12. County, city, and park district records — Uniform program established by administrator.

The administrator shall establish a uniform program of standards, procedures, and techniques for the effective management of county, city, and park district records. All county, city, and park district offices, departments, and agencies may establish, utilize, and maintain the uniform program prescribed by the administrator.

Source:

S.L. 1963, ch. 354, § 1; 1977, ch. 502, § 20; 1989, ch. 293, § 3; 2019, ch. 458, § 2, eff August 1, 2019.

54-46-13. Rules for state and human service zone records — Administrator to adopt. [Effective through August 31, 2022]

The administrator shall adopt rules in accordance with chapter 28-32 for state and human service zone records. The rules adopted by the administrator must be consistent with records retention requirements imposed by federal law with respect to those records. The administrator, prior to adoption, amendment, or repeal of rules concerning state and human service zone records, shall consult with the executive director of the department of human services.

Source:

S.L. 1965, ch. 189, § 2; 1977, ch. 502, § 21; 1993, ch. 531, § 1; 2019, ch. 391, § 131, eff January 1, 2020.

54-46-13. Rules for state and human service zone records — Administrator to adopt. [Effective September 1, 2022]

The administrator shall adopt rules in accordance with chapter 28-32 for state and human service zone records. The rules adopted by the administrator must be consistent with records retention requirements imposed by federal law with respect to those records. The administrator, prior to adoption, amendment, or repeal of rules concerning state and human service zone records, shall consult with the executive director of the department of health and human services.

Source:

S.L. 1965, ch. 189, § 2; 1977, ch. 502, § 21; 1993, ch. 531, § 1; 2019, ch. 391, § 131, eff January 1, 2020; 2021, ch. 352, § 495, eff September 1, 2022.

54-46-14. Continued confidentiality of records.

The head of an agency may provide, and the administrator may receive, any record necessary to effect the purposes of this chapter without regard to the confidential or secret nature of the information in the record. However, the administrator and agents or employees of the administrator involved with records management under this chapter are subject to the same restrictions and penalties regarding the dissemination of the information as are the personnel of the agency involved.

Source:

S.L. 1991, ch. 614, § 5.

CHAPTER 54-46.1 Central Microfilm Unit

54-46.1-01. Central microfilm unit — Contracting for services.

The state records administrator shall establish and maintain a central microfilm unit and microfilm any record of any state office, agency, or department in either the executive, legislative, or judicial branch of state government, if the administrator determines the cost of the microfilming is reasonable in relation to the record’s historical significance or the frequency and type of use of the record. If the administrator and the office of management and budget determine that the services called for in this chapter can be provided more efficiently and economically through contracting with private contractors, the administrator may enter into such contracts or require an agency to use the services of a contractor as allowed by section 54-46.1-05. Release of records to a contractor for microfilming under this section or section 54-46.1-05 is not a violation of section 12.1-13-01, 54-46.1-07, or any other law that provides for any civil or criminal penalty for the release of certain records. A contractor hired by the administrator under this section or by an agency under section 54-46.1-05 may not disclose any information from any record, disclose any record the contractor receives for microfilming services, or make or retain a copy or other reproduction of a record not required by the contract to be made. Any contractor hired by the administrator under this section or by an agency under section 54-46.1-05 is subject to the penalties provided by law for unauthorized release of public records, and the contractor must agree to fully comply with all applicable state or federal laws or rules prohibiting release of public records. Each office, agency, and department shall reimburse the central microfilm unit for the actual costs incurred in microfilming its records. The administrator shall deposit moneys received under this section in the information technology operating account. The administrator shall employ professional, technical, and clerical personnel as the administrator determines to be necessary to carry out the duties prescribed in this chapter and, within the limits of the legislative appropriation, shall fix the salaries of all employees within the central microfilm unit. All personnel within the central microfilm unit must be allowed their actual and necessary travel expenses at the same rate as for other employees of the state. The administrator may perform microfilm services for any state institution and for any county, when the institution or county requests such services and the administrator agrees that the request is consistent with good records management practices.

Source:

S.L. 1971, ch. 513, § 1; 1973, ch. 432, § 1; 1981, ch. 544, § 1; 1985, ch. 82, § 131; 1991, ch. 614, § 6; 1999, ch. 477, § 1; 1999, ch. 483, § 32.

54-46.1-02. Transfer of equipment — Exception — Alternative services. [Repealed]

Repealed by S.L. 1991, ch. 614, § 9.

54-46.1-02.1. Optical data storage authorized.

Any public entity may adopt and use an optical data storage process for the storage of records by optical disk mediums when the use of the process is consistent with good records management practices. The state records administrator may prescribe such practices, except for specialized commercial databases such as those used in libraries. As used in this chapter, an optical data storage process includes the optical disk software and hardware used in that process and the records stored by that process after the entity involved has established a records management program with respect to optical data storage.

Source:

S.L. 1991, ch. 624, § 5.

54-46.1-03. Reproductions admissible in evidence — Preparation of copies.

A photographic, microphotographic, or microfilm copy of any record, a paper or microfilm reproduction of any record stored by optical disk, or a certified copy thereof, is admissible as evidence in any court or proceeding and has the same force and effect as though the original record has been produced and proved. The custodian of such records shall prepare enlarged copies of microphotographic or microfilm copies of the records and paper copies of records stored by optical disk and shall document the accuracy of the processes whenever their production is required by law.

Source:

S.L. 1971, ch. 513, § 3; 1991, ch. 624, § 6.

54-46.1-04. Duplicate storage of microfilm records.

Whenever any record or document is copied or reproduced as provided in this chapter, the state records administrator shall provide for duplicate storage of the photographic reproductions. The administrator may enter into contracts for duplicate storage services if, in the administrator’s judgment, such contracts are necessary for the safekeeping of photographic reproductions.

Source:

S.L. 1971, ch. 513, § 4; 1985, ch. 82, § 133; 1991, ch. 614, § 7.

54-46.1-05. Restriction on purchases and contracts for microfilm equipment and services — Alternative services.

Except for the institutions and entities under the jurisdiction of the board of higher education, no state office, agency, or department may enter into any contract or agreement for the purchase or lease of any microfilm equipment or services without the express approval of the state records administrator. The administrator may authorize an office, agency, or department to make other arrangements for microfilm services if the central microfilm unit is unable to perform the services required or if, in the administrator’s judgment, the special needs of the office, agency, or department justify such an authorization.

Source:

S.L. 1971, ch. 513, § 5; 1973, ch. 432, § 2; 1985, ch. 82, § 134; 1991, ch. 614, § 8.

54-46.1-06. Adoption of rules.

The state records administrator may adopt rules to establish standard procedures and practices in the development and use of the central microfilm unit, including the proper use of any optical data storage process.

Source:

S.L. 1971, ch. 513, § 6; 1985, ch. 82, § 135; 1991, ch. 624, § 7.

54-46.1-07. Secrecy provision.

The personnel of the central microfilm unit are hereby authorized to receive from the various departments and the employees of the various departments are hereby authorized to provide for the central microfilm unit, any information from the files and records of the various departments necessary to effect the purposes of this chapter without regard to the confidential or secret nature of the information; provided, however, the personnel of the central microfilm unit are subject to the same restrictions and penalties regarding the dissemination of this information as are the personnel of the department involved.

Source:

S.L. 1971, ch. 513, § 7.

Cross-References.

Penalty for unauthorized disclosure of confidential information, N.D.C.C. § 12.1-13-01.

CHAPTER 54-47 Continuity of Government, Executive, Judiciary, and Political Subdivisions [Repealed]

[Repealed by S.L. 1985, ch. 579, § 1]

CHAPTER 54-48 Continuity of Government, Legislative Assembly [Repealed]

[Repealed by S.L. 1985, ch. 579, § 1]

CHAPTER 54-49 Natural Resources and Environmental Management Council [Repealed]

[Repealed by S.L. 1973, ch. 433, § 1]

CHAPTER 54-49.1 Natural Resources Council [Repealed]

[Repealed by S.L. 1981, ch. 365, § 8]

CHAPTER 54-50 Peace Officers’ Commission [Repealed]

[Repealed by S.L. 1967, ch. 117, § 8]

CHAPTER 54-51 Interchange of Government Employees

54-51-01. Declaration of policy.

The state of North Dakota recognizes that intergovernmental cooperation is an essential factor in resolving problems affecting this state and that the interchange of personnel between and among governmental agencies at the same or different levels of government is a significant factor in achieving such cooperation and increasing the skills and efficiency of governmental personnel.

Source:

S.L. 1965, ch. 360, § 1.

54-51-02. Definitions.

For the purposes of this chapter the following words and phrases have the meanings ascribed to them in this chapter:

  1. “Receiving agency” means any department or agency of the federal government or a state government which receives an employee of another government under this chapter.
  2. “Sending agency” means any department or agency of the federal government or a state government which sends any employee thereof to another government agency under this chapter.

Source:

S.L. 1965, ch. 360, § 2.

54-51-03. Authority to interchange employees.

Any department, agency, or instrumentality of the state is authorized to participate in a program of interchange of employees with departments, agencies, or instrumentalities of the federal government, or another state, as a sending or receiving agency.

Source:

S.L. 1965, ch. 360, § 3.

54-51-04. Duration of exchange.

The period of individual assignment or detail under an interchange program may not exceed four years. Details relating to any matter covered in this chapter may be the subject of an agreement between the sending and receiving agencies. Elected officials may not be assigned from a sending agency nor detailed to a receiving agency.

Source:

S.L. 1965, ch. 360, § 4; 1991, ch. 625, § 1.

54-51-05. Status of employees of this state.

Employees of a sending agency participating in an exchange of personnel as authorized in section 54-51-03 may be considered during such participation to be on detail to regular work assignments of the sending agency.

Source:

S.L. 1965, ch. 360, § 5.

54-51-06. Salary and benefits.

Employees who are on detail are entitled to the same salary and benefits to which they would otherwise be entitled and shall remain employees of the sending agency for all other purposes except that the supervision of their duties during the period of detail may be governed by agreement between the sending agency and the receiving agency.

Source:

S.L. 1965, ch. 360, § 6.

54-51-07. Death or injury of employee.

Any employee who participates in an exchange under the terms of this section who suffers disability or death as a result of personal injury arising in the course of an exchange, or sustained in performance of duties in connection therewith, must be treated, for the purposes of the sending agency’s employee compensation program, as an employee, as defined in such act, who has sustained such injury in the performance of such duty, but may not receive benefits under that act for any period for which the employee is entitled to and elects to receive similar benefits under the receiving agency’s employee compensation program.

Source:

S.L. 1965, ch. 360, § 7.

54-51-08. Travel expenses of employees of this state.

A sending agency in this state may, in accordance with the travel regulations of the state, pay the travel expenses of employees assigned to a receiving agency on either a detail or leave basis, but may not pay the travel expenses of such employees incurred in connection with their work assignments at the receiving agency. During the period of assignment, the sending agency may pay a per diem allowance to the employee on assignment or detail.

Source:

S.L. 1965, ch. 360, § 8.

Cross-References.

Expense allowances for state officers and employees, see N.D.C.C. §§ 44-08-03 to 44-08-05.1, and 54-06-09.

54-51-09. Status of employees of other governments.

The following provisions control the status of any employees within the state under this chapter:

  1. When any unit of government of this state acts as a receiving agency, employees of the sending agency who are assigned under authority of this chapter may be considered to be on detail to the receiving agency.
  2. Appointments of persons so assigned may be made without regard to the laws or regulations governing the selection of employees of the receiving agency. The person is in the unclassified service of the state.
  3. Employees who are detailed to the receiving agency may not by virtue of the detail be considered to be employees thereof, except as provided in subsection 4. The supervision of the duties of those employees during the period of detail may be governed by agreement between the sending agency and the receiving agency.
  4. Any employee of a sending agency assigned in this state who suffers disability or death as a result of personal injury arising out of and in the course of the assignment, or sustained in the performance of duties in connection therewith, must be treated as an employee for the purpose of the receiving agency’s employee compensation program, but may not receive benefits for any period for which the employee elects to receive similar benefits as an employee under the sending agency’s employee compensation program.
  5. A receiving agency may with the agreement of the sending agency pay an employee from a sending agency a full or supplemental salary or wage not to exceed the appropriate pay for an equivalent position in the receiving or sending agency.

Source:

S.L. 1965, ch. 360, § 9; 1991, ch. 625, § 2.

54-51-10. Travel expenses of employees of other governments.

A receiving agency in this state may, in accordance with the travel regulations of the state, pay travel expenses of persons assigned thereto under this chapter during the period of such assignments on the same basis as if they were regular employees of the receiving agency.

Source:

S.L. 1965, ch. 360, § 10.

54-51-11. Reports of participating agencies.

Each department, agency, or instrumentality of the state which participates in the interchange of employees as provided in this chapter shall annually report the details of the travel expenses of each employee and same must be reported to the office of management and budget.

Source:

S.L. 1965, ch. 360, § 11.

CHAPTER 54-52 Public Employees Retirement System

54-52-01. Definition of terms.

As used in this chapter, unless the context otherwise requires:

  1. “Account balance” means the total contributions made by the employee, vested employer contributions under section 54-52-11.1, the vested portion of the vesting fund as of June 30, 1977, and interest credited thereon at the rate established by the board.
  2. “Beneficiary” means any person in receipt of a benefit provided by this plan or any person designated by a participating member to receive benefits.
  3. “Correctional officer” means a participating member who is employed as a correctional officer by a political subdivision.
  4. “Eligible employee” means all permanent employees who meet all of the eligibility requirements set by this chapter and who are eighteen years or more of age, and includes appointive and elective officials under sections 54-52-02.5, 54-52-02.11, and 54-52-02.12, and nonteaching employees of the superintendent of public instruction, including the superintendent of public instruction, who elect to transfer from the teachers’ fund for retirement to the public employees retirement system under section 54-52-02.13, and employees of the state board for career and technical education who elect to transfer from the teachers’ fund for retirement to the public employees retirement system under section 54-52-02.14. Eligible employee does not include nonclassified state employees who elect to become members of the retirement plan established under chapter 54-52.6 but does include employees of the judicial branch and employees of the board of higher education and state institutions under the jurisdiction of the board.
  5. “Employee” means any individual employed by a governmental unit, whose compensation is paid out of the governmental unit’s funds, or funds controlled or administered by a governmental unit, or paid by the federal government through any of its executive or administrative officials; licensed employees of a school district means those employees eligible to participate in the teachers’ fund for retirement who, except under subsection 2 of section 54-52-17.2, are not eligible employees under this chapter.
  6. “Employer” means a governmental unit.
  7. “Firefighter” means a participating member who is employed as a firefighter by a political subdivision and, notwithstanding subsection 13, for an individual employed after July 31, 2017, is employed at least thirty-two hours per week and at least twenty weeks each year of employment. A firefighter who is a participating member of the law enforcement retirement plan created by this chapter who begins employment after July 31, 2017, is ineligible to participate concurrently in any other retirement plan administered by the public employees retirement system. The term does not include a firefighter employee of the North Dakota national guard.
  8. “Funding agent” or “agents” means an investment firm, trust bank, or other financial institution which the retirement board may select to hold and invest the employers’ and members’ contributions.
  9. “Governmental unit” means the state of North Dakota, except the highway patrol for members of the retirement plan created under chapter 39-03.1, or a participating political subdivision thereof.
  10. “National guard security officer or firefighter” means a participating member who is:
    1. A security police employee of the North Dakota national guard; or
    2. A firefighter employee of the North Dakota national guard.
  11. “Participating member” means an eligible employee who through payment into the plan has established a claim against the plan.
  12. “Peace officer” means a participating member who is a peace officer as defined in section 12-63-01 and is employed as a peace officer by the bureau of criminal investigation or by a political subdivision and, notwithstanding subsection 13, for persons employed after August 1, 2005, is employed thirty-two hours or more per week and at least twenty weeks each year of employment. A peace officer who is a participating member of the law enforcement retirement plan created by this chapter who begins employment after August 1, 2005, is ineligible to participate concurrently in any other retirement plan administered by the public employees retirement system.
  13. “Permanent employee” means a governmental unit employee whose services are not limited in duration and who is filling an approved and regularly funded position in an eligible governmental unit, and is employed twenty hours or more per week and at least twenty weeks each year of employment.
  14. “Prior service” means service or employment before July 1, 1966.
  15. “Prior service credit” means such credit toward a retirement benefit as the retirement board may determine under the provisions of this chapter.
  16. “Public employees retirement system” means the retirement plan and program established by this chapter.
  17. “Retirement” means the acceptance of a retirement allowance under this chapter upon either termination of employment or termination of participation in the retirement plan.
  18. “Retirement board” or “board” means the governing authority created under section 54-52-03.
  19. “Seasonal employee” means a participating member who does not work twelve months a year.
  20. “Service” means employment on or after July 1, 1966.
  21. “Service benefit” means the credit toward retirement benefits as determined by the retirement board under the provisions of this chapter
  22. “Temporary employee” means a governmental unit employee who is not eligible to participate as a permanent employee, who is at least eighteen years old and not actively contributing to another employer-sponsored pension fund, and, if employed by a school district, occupies a noncertified teacher’s position.
  23. “Wages” and “salaries” means the member’s earnings in eligible employment under this chapter reported as salary on the member’s federal income tax withholding statements plus any salary reduction or salary deferral amounts under 26 U.S.C. 125, 401(k), 403(b), 414(h), or 457. “Salary” does not include fringe benefits such as payments for unused sick leave, personal leave, vacation leave paid in a lump sum, overtime, housing allowances, transportation expenses, early retirement incentive pay, severance pay, medical insurance, workforce safety and insurance benefits, disability insurance premiums or benefits, or salary received by a member in lieu of previously employer-provided fringe benefits under an agreement between the member and participating employer. Bonuses may be considered as salary under this section if reported and annualized pursuant to rules adopted by the board.

Source:

S.L. 1965, ch. 361, § 1; 1969, ch. 456, § 4; 1969, ch. 457, § 3; 1971, ch. 515, § 1; 1973, ch. 120, § 60; 1973, ch. 246, §§ 4 to 6; 1977, ch. 499, § 1; 1979, ch. 570, § 1; 1979, ch. 572, § 2; 1981, ch. 545, § 1; 1983, ch. 572, § 1; 1983, ch. 573, § 1; 1985, ch. 222, § 4; R.M. disapproved December 5, 1989, S.L. 1991, ch. 740; S.L. 1989, ch. 662, § 1; 1989, ch. 663, § 1; 1989, ch. 664, § 1; 1991, ch. 626, § 2; 1993, ch. 532, § 1; 1995, ch. 527, § 1; 1995, ch. 528, § 1; 1995, ch. 529, § 1; 1999, ch. 162, § 46; 1999, ch. 478, § 1; 1999, ch. 482, § 1; 2003, ch. 34, § 15; 2003, ch. 497, § 1; 2003, ch. 498, § 2; 2003, ch. 561, § 3; 2005, ch. 531, § 7; 2007, ch. 483, § 2; 2009, ch. 512, § 1; 2013, ch. 431, § 4; 2015, ch. 56, § 4, eff July 1, 2015; 2017, ch. 57, § 12, eff August 1, 2017; 2017, ch. 372, § 2, eff August 1, 2017; 2017, ch. 379, § 1, eff August 1, 2017.

Effective Date.

The 2015 amendment of this section by section 4 of chapter 56, S.L. 2015 became effective July 1, 2015.

The 2013 amendment of this section by section 4 of chapter 431, S.L. 2013 becomes effective October 1, 2013.

Note.

Section 54-52-01 was amended 3 times by the 2017 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 2 of Chapter 372, Session Laws 2017, Senate Bill 2053; Section 1 of Chapter 379, Session Laws 2017, House Bill 1148; and Section 12 of Chapter 57, Session Laws 2017, House Bill 1043.

Section 19 of chapter 431, S.L. 2013 provides in part: “EXPIRATION DATE — SUSPENSION. Sections 4, 12, and 14 of this Act are effective through July 31, 2017, and after that date are ineffective.”

Collateral References.

Disciplinary suspension of public employee as affecting computation of length of service for retirement or pension purposes, 6 A.L.R.2d 506.

Rights and liabilities as between employer and employee with respect to general pension or retirement plan, 42 A.L.R.2d 461, 471.

Vested right of pensioner to pension, 52 A.L.R.2d 437.

Retroactive change in rate of employee’s contribution to public pension fund, validity of, 78 A.L.R.2d 1197.

Relationship between performance of official duties and subsequent disability or death for purpose of pension or survivorship benefits of government employee other than fireman, policeman, or military personnel, 85 A.L.R.2d 1048.

Heirs: rights in survival benefits under public pension or retirement plan as between designated beneficiary and heirs, legatees or personal representative of deceased employee, 5 A.L.R.3d 644.

Right to unemployment compensation as affected by receipt of pension, 56 A.L.R.3d 520.

Mandatory retirement of public officer or employee based on age, 81 A.L.R.3d 811.

Employee retirement pension benefits as exempt from garnishment, attachment, levy, execution, or similar proceedings, 93 A.L.R.3d 711.

Validity of statutory classifications based on population — governmental employee salary or pension statutes, 96 A.L.R.3d 538.

What constitutes “salary,” “wages,” “pay,” or the like, within pension law basing benefits thereon, 91 A.L.R.5th 225.

54-52-02. Formulation of plan — Exclusion of employees covered by plans in existence.

All departments, boards, institutions, commissions, or agencies of the state of North Dakota, the Garrison Diversion Conservancy District, district health units, the supreme court, and the district courts, hereinafter referred to as agency, shall participate in a retirement system which will provide for the payment of benefits to state and political subdivision employees or to their beneficiaries thereby enabling the employees to care for themselves and their dependents and which by its provisions will improve state and political subdivision employment, reduce excessive personnel turnover, and offer career employment to high-grade men and women. However, a city health department providing health services in a city-county health district formed under chapter 23-35 is not required to participate in the public employees retirement system but may participate in the public employees retirement system under section 54-52-02.1. Employees presently covered by a pension plan or retirement plan to which the state is contributing, except social security, are not eligible for duplicate coverage except as provided under sections 39-03.1-14.1 and 54-52-17.2.

Source:

S.L. 1965, ch. 361, § 2; 1971, ch. 515, § 2; 1973, ch. 246, § 7; R.M. disapproved December 5, 1989, S.L. 1991, ch. 740; 1989, ch. 665, § 1; 1999, ch. 242, § 5; 2003, ch. 498, § 3.

Cross-References.

Judges’ retirement, see N.D. Const., Art. VI, § 12; N.D.C.C. ch. 27-17.

54-52-02.1. Political subdivisions authorized to join public employees retirement system.

  1. A political subdivision may, on behalf of its permanent employees, on behalf of its peace officers, firefighters, and correctional officers separately from its other employees, and permanent noncertified employees only in the case of school districts, enter agreements with the retirement board for the purpose of extending the benefits of the public employees retirement system, as provided in this chapter, to those employees. The agreement may, in accordance with this chapter, contain provisions relating to benefits, contributions, effective date, modification, administration, and other appropriate provisions as the retirement board and the political subdivision agree upon, but the agreement must provide:
    1. The political subdivision will contribute on behalf of each eligible employee an amount equal to that provided in section 54-52-06 or 54-52-06.3 for peace officers, firefighters, and correctional officers participating separately from other political subdivision employees.
    2. A portion of the moneys paid by the political subdivision may be used to pay administrative expenses of the retirement board.
  2. Notwithstanding any other provision of law, a political subdivision having an existing police or firefighter pension plan may merge that plan into the public employees retirement system under rules adopted by and in a manner determined by the board.
  3. Notwithstanding any other provision of this chapter, a political subdivision of this state not currently participating in the public employees retirement system may not become a participant in the retirement system until an actuarial study is performed under the direction of the board to calculate the required employer contribution for any past service liability and the required employer contribution must be an amount determined sufficient to amortize and fund any past service liability over a period not to exceed thirty years as determined by the board. Any fees incurred in performing the actuarial study must be paid for by the political subdivision in a manner determined by the board.

Source:

S.L. 1969, ch. 456, § 1; 1969, ch. 457, § 1; 1971, ch. 516, § 1; 1977, ch. 499, § 2; 1979, ch. 571, § 1; 1981, ch. 545, § 2; R.M. disapproved December 5, 1989, S.L. 1991, ch. 740; S.L. 1989, ch. 665, § 2; 1995, ch. 528, § 2; 2003, ch. 497, § 2; 2011, ch. 431, § 5; 2017, ch. 379, § 2, eff August 1, 2017.

54-52-02.2. Employee referendum — Authorization and supervision.

On their own motion or upon petition by twenty percent of the permanent political subdivision employees or the permanent noncertified employees of any school district, the political subdivision shall authorize and supervise a referendum of the permanent employees employed by that political subdivision on the question whether the employees elect to participate in the retirement system. If the majority of the employees vote in favor of participation in the retirement system, the political subdivision, notwithstanding anything to the contrary in chapter 40-46, may in its discretion enter into the agreement provided for in section 54-52-02.1. Notwithstanding provisions to the contrary in chapters 18-05, 18-11, and 40-45, the police department of any city, the fire department of any city, or both, may hold referendums among their employees on the question of whether their department should join the remaining city employees in participation in the retirement system established by this chapter. If a majority of the city police or city firefighters, or both, vote in favor of such participation, the governing body of the city must include the police and firefighters within any agreement entered into pursuant to section 54-52-02.1 and must arrange for discontinuance of any existing police or firefighters’ pension fund as provided by law.

Source:

S.L. 1969, ch. 456, § 2; 1969, ch. 457, § 2; 1977, ch. 499, § 3; 1995, ch. 528, § 3.

54-52-02.3. Newly elected supreme and district court judges.

After July 1, 1973, any person elected or appointed to the office of judge of the supreme court or judge of the district court for the first time must, from and after the date that person qualifies and takes office, be a participating member of the public employees retirement system. Any person so elected or appointed is not eligible for membership in or for receipt of benefits from the retirement program provided by chapter 27-17. As used in this section, the phrase “for the first time” means a person elected or appointed, who, after July 1, 1973, does not hold office as a judge of the supreme court or the district court at the time of the person’s election or appointment.

Source:

S.L. 1973, ch. 246, § 1; 1977, ch. 499, § 4.

54-52-02.4. Participation by certain employees — Requirements. [Repealed]

Repealed by S.L. 1987, ch. 651, § 1.

54-52-02.5. Newly elected and appointed state officials.

After December 31, 1999, a person elected or appointed to a state office for the first time must, from and after the date that person qualifies and takes office, be a participating member of the public employees retirement system unless that person makes an election at any time during the first six months after the date the person takes office to participate in the retirement plan established under chapter 54-52.6. As used in this section, the phrase “for the first time” means a person appointed, who, after December 31, 1999, does not hold office as an appointed official at the time of that person’s appointment.

Source:

S.L. 1979, ch. 572, § 1; 1999, ch. 482, § 2; 2003, ch. 498, § 4.

54-52-02.6. Repurchase of past service upon reemployment.

An individual who terminates participation in the plan may elect to receive a refund of the member’s account balance under subsection 7 of section 54-52-17 and thus forfeit all rights under the retirement plan. An individual upon re-employment may elect to repurchase the forfeited past service for retirement and the retiree health benefits program in accordance with rules established by the board.

Source:

S.L. 1981, ch. 546, § 1; 1987, ch. 652, § 1; 1989, ch. 666, § 1; 1991, ch. 627, § 1; 1993, ch. 532, § 2.

54-52-02.7. Purchase of service by former employees of mental health and retardation centers. [Repealed]

Repealed by S.L. 1987, ch. 651, § 1.

54-52-02.8. Purchase of service. [Repealed]

Repealed by S.L. 1987, ch. 651, § 1.

54-52-02.9. Participation by temporary employees.

  1. Within one hundred eighty days of beginning employment, a temporary employee may elect to participate in the public employees retirement system and receive credit for service after enrollment. Monthly, the temporary employee shall pay to the fund an amount equal to eight and twelve-hundredths percent times the temporary employee’s present monthly salary. The amount required to be paid by a temporary employee increases by two percent times the temporary employee’s present monthly salary beginning with the monthly reporting period of January 2012, and with an additional two percent increase, beginning with the reporting period of January 2013, and with an additional increase of two percent, beginning with the monthly reporting period of January 2014.
  2. If the temporary employee first enrolled:
    1. Before January 1, 2020, in addition the temporary employee shall pay the required monthly contribution to the retiree health benefit fund established under section 54-52.1-03.2. This contribution must be recorded as a member contribution pursuant to section 54-52.1-03.2.
    2. After December 31, 2019, the temporary employee shall pay to the fund an additional amount equal to one and fourteen-hundredths percent times the temporary employee’s present monthly salary.
  3. An employer may not pay the temporary employee’s contributions. A temporary employee may continue to participate as a temporary employee in the public employees retirement system until termination of employment or reclassification of the temporary employee as a permanent employee. A temporary employee may not purchase any additional credit, including additional credit under section 54-52-17.4 or past service under section 54-52-02.6.

Source:

S.L. 1989, ch. 664, § 2; 1991, ch. 630, § 3; 2007, ch. 482, § 6; 2009, ch. 513, § 1; 2011, ch. 432, § 3; 2013, ch. 431, § 5; 2019, ch. 459, § 1, eff July 1, 2019.

Effective Date.

The 2013 amendment of this section by section 5 of chapter 431, S.L. 2013 became effective July 1, 2013.

54-52-02.10. Members of the legislative assembly. [Repealed]

Deleted by R.M. December 5, 1989.

Note.

Section 54-52-02.10 was enacted by S.L. 1989, ch. 223, § 5, and disapproved by R.M. December 5, 1989, S.L. 1991, ch. 740.

54-52-02.11. Participation requirements for nonstate elected officials.

Elected officials of participating counties, at their individual option, may enroll in the defined benefit plan within the first six months of their term.

Source:

S.L. 2003, ch. 498, § 5.

54-52-02.12. Participation requirements for nonstate appointed officials.

Nonstate appointed officials of participating employers appointed on or after August 1, 1999, who meet the participation requirements of this chapter must be enrolled in the defined benefit plan effective within the first month of taking office.

Source:

S.L. 2003, ch. 498, § 6.

54-52-02.13. Participation by nonteaching employees of the office of the superintendent of public instruction.

Notwithstanding any other provision of law, between July 1, 2003, and five p.m. on August 29, 2003, a nonteaching employee of the superintendent of public instruction, including the superintendent of public instruction, who is otherwise eligible to participate in the public employees retirement system may file an election with the staff of the retirement and investment office to transfer from the teachers’ fund for retirement to the public employees retirement system. The teachers’ fund for retirement shall certify the employees who are eligible to transfer. An election to transfer is irrevocable for as long as the employee remains employed with the superintendent of public instruction. The teachers’ fund for retirement shall certify a transferring employee’s salary, service credit, contribution history, account balance, and any other necessary information to the public employees retirement system. The amount to be transferred is the greater of the actuarial present value of the employee’s accrued benefit as of July 1, 2003, plus interest at the rate of seven and one-half percent from July 1, 2003, until the date the amount is transferred to the public employees retirement system or the employee’s account balance as of the date of transfer. The public employees retirement system shall credit the transferring employee with the service credit specified by the teachers’ fund for retirement and shall convert the annual salary history from the teachers’ fund for retirement to a monthly salary for the period. An employee becomes a member of the public employees retirement system as of the date the funds are transferred. To be eligible to transfer, an employee must be employed by the office of the superintendent of public instruction at the date of the transfer. The superintendent of public instruction shall begin making retirement contributions, and the public employees retirement system shall begin receiving those retirement contributions, on behalf of employees who have elected to transfer to the public employees retirement system to that system the first of the month following the date of transfer.

Source:

S.L. 2003, ch. 34, § 16.

54-52-02.14. Participation by employees of the state board for career and technical education.

Notwithstanding any other provision of law, between July 1, 2007, and five p.m. on August 31, 2007, an employee of the state board for career and technical education who is otherwise eligible to participate in the public employees retirement system may file an election with the staff of the retirement and investment office to transfer from the teachers’ fund for retirement to the public employees retirement system. The teachers’ fund for retirement shall certify the employees who are eligible to transfer. An election to transfer is irrevocable for as long as the employee remains employed with the state board for career and technical education. The teachers’ fund for retirement shall certify a transferring employee’s salary, service credit, contribution history, account balance, and any other necessary information to the public employees retirement system. The amount to be transferred is the greater of the actuarial present value of the employee’s accrued benefit as of July 1, 2007, plus interest at the rate of seven and one-half percent from July 1, 2007, until the date the amount is transferred to the public employees retirement system or the employee’s account balance on the date of transfer. The public employees retirement system shall credit the transferring employee with the service credit specified by the teachers’ fund for retirement and shall convert the annual salary history from the teachers’ fund for retirement to a monthly salary for the period. An employee becomes a member of the public employees retirement system as of the date the funds are transferred. To be eligible to transfer, an employee must be employed by the state board for career and technical education on the date of the transfer. The state board for career and technical education shall begin making retirement contributions, and the public employees retirement system shall begin receiving those retirement contributions, on behalf of employees who have elected to transfer to the public employees retirement system to that system the first of the month following the date of transfer.

Source:

S.L. 2007, ch. 483, § 3.

54-52-03. Governing authority.

A state agency is hereby created to constitute the governing authority of the system to consist of a board of nine individuals known as the retirement board. No more than one elected member of the board may be in the employ of a single department, institution, or agency of the state or in the employ of a political subdivision. An employee of the public employees retirement system or the state retirement and investment office may not serve on the board.

  1. Two members of the legislative assembly must be appointed by the chairman of the legislative management to serve on the board.
    1. If the same political party has the greatest number of members in both the house and senate, one member must be from that majority party and one member from the political party with the next greatest number of members in the house and senate.
    2. If the same political party does not have the greatest number of members in both the house and senate, one member must be from the majority party in the house and one member must be from the majority party in the senate.
  2. One member of the board must be appointed by the governor to serve a term of five years. The appointee must be a North Dakota citizen who is not a state or political subdivision employee and who by experience is familiar with money management. The citizen member is chairman of the board.
  3. One member of the board must be appointed by the attorney general from the attorney general’s legal staff and shall serve a term of five years.
  4. The state health officer appointed under section 23-01-05 or the state health officer’s designee is a member of the board.
  5. Three board members must be elected by and from among the active participating members, members of the retirement plan established under chapter 54-52.6, members of the retirement plan established under chapter 39-03.1, and members of the job service North Dakota retirement plan. Employees who have terminated their employment for whatever reason are not eligible to serve as elected members of the board under this subsection. Board members must be elected to a five-year term pursuant to an election called by the board. Notice of board elections must be given to all active participating members. The time spent in performing duties as a board member may not be charged against any employee’s accumulated annual or any other type of leave.
  6. One board member must be elected by and from among those individuals who are receiving retirement benefits under this chapter. The board shall call the election and must give prior notice of the election to the individuals eligible to participate in the election pursuant to this subsection. The board member shall serve a term of five years.
  7. The members of the board are entitled to receive one hundred forty-eight dollars per day compensation and necessary mileage and travel expenses as provided in sections 44-08-04 and 54-06-09. This is in addition to any other pay or allowance due the chairman or a member, plus an allowance for expenses they may incur through service on the board.
  8. A board member shall serve a five-year term and until the board member’s successor qualifies. Each board member is entitled to one vote, and five of the nine board members constitute a quorum. Five votes are necessary for resolution or action by the board at any meeting.

Source:

S.L. 1965, ch. 361, § 3; 1967, ch. 395, § 1; 1969, ch. 456, § 5; 1969, ch. 457, § 4; 1975, ch. 489, § 1; 1977, ch. 499, § 6; 1985, ch. 580, § 1; 1989, ch. 663, § 2; 1993, ch. 532, § 3; 1997, ch. 432, § 29; 2009, ch. 514, § 7; 2011, ch. 48, § 6; 2011, 431, § 6; 2015, ch. 56, § 5, eff July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 5 of chapter 56, S.L. 2015 became effective July 1, 2015.

54-52-04. Board authority.

  1. The board shall adopt rules necessary to implement this chapter, and to manage the system, subject to the limitations of this chapter. The board has the powers and privileges of a corporation, including the right to sue and be sued in its own name as the board. The venue of all actions in which the board is a party must be Burleigh County, North Dakota.
  2. The board shall appoint an executive director to serve at its discretion. The executive director shall perform such duties as assigned by the board.
  3. The board shall authorize the creation of whatever staff it deems necessary for sound and economical administration of the system. The executive director shall hire the staff, subject to the approval of the board.
  4. The board shall arrange for actuarial and medical advisers for the system. The board shall cause a qualified, competent actuary to be retained on a consulting basis. The actuary shall make an annual valuation of the liabilities and reserves of the system and a determination of the contributions required by the system to discharge its liabilities and pay the administrative costs under this chapter, and to recommend to the board rates of employer and employee contributions required, based upon the entry age normal cost method, to maintain the system on an actuarial reserve basis; once every five years make a general investigation of the actuarial experience under the system including mortality, retirement, employment turnover, and other items required by the board, and recommend actuarial tables for use in valuations and in calculating actuarial equivalent values based on such investigation; and perform other duties as may be assigned by the board.
  5. The state shall provide the board with the retirement systems office or offices to be used for the meetings of the board and for the general purposes of the administrative personnel.
  6. The funds necessary for paying prior service and service benefits, consultant fees, and making withdrawal payments and refunds are hereby appropriated from the retirement fund for those purposes. The amount necessary to pay the consulting fees and insurance benefits related to the uniform group insurance program is hereby appropriated from the insurance premiums received by the board.
  7. The board shall administer chapters 39-03.1, 54-52.1, and 54-52.2, and may administer other optional employee benefit programs, including a flexible benefits plan, an optional employee short-term disability plan, a long-term care plan, or other optional employee benefit programs as the board deems appropriate. The board shall also administer the retirement plan established in 1961 and frozen to new entrants in 1980 for employees of job service North Dakota under chapter 52-11.
  8. The board shall annually report the investment performance of the fund and distribute a copy to each participant.
  9. The board may distribute the employer contribution and applicable interest for any employee of any development foundation associated with a public institution of higher education in this state who may previously have been included in the public employees retirement system while employed by such foundation. Such employee is entitled to have that employee’s contribution and the contribution of the development foundation, with interest.
  10. The board may audit any books, papers, accounts, bills, vouchers, and other documents or property of any and all departments, boards, commissions, political subdivisions, financial institutions, contractors, health care organizations, and consultants relating to their participation in services provided to programs administered by the board.
  11. The board shall fund the administrative expenses of chapter 54-52.2 from funds collected under chapters 54-52, 54-52.1, and 54-52.3 and from fines and fees collected from deferred compensation services providers, including any fees paid for by participant funds, subject to appropriation by the legislative assembly.
  12. Except as provided by section 54-52-17.7, the board may adjust service and make any correction of member, retiree, or beneficiary records and benefits after an error or inequity has been determined.
  13. The board may use any amount credited to the separate uniform group insurance program fund created by section 54-52.1-06 in excess of the costs of administration of the uniform group insurance program to reduce the amount of premium amounts paid monthly by enrolled members of the uniform group insurance program, to reduce any increase in premium amounts paid monthly by enrolled members, or to provide increased insurance coverage to the members, as the board may determine.
  14. The board may create and implement an Internal Revenue Code section 115 trust health care savings plan for all supreme and district court judges participating in the public employees retirement system if seventy-five percent of the total active participating supreme and district court judges vote to approve the program. If approved, the contribution level specified in the vote applies to all current and future participating supreme and district court judges and must be paid pursuant to the plan document developed by the board. The contribution level may only be changed by a vote of seventy-five percent of the total active participating supreme and district court judges at that time.
  15. The board shall establish policies and implement procedures to make and collect payments in the most cost-effective manner, including the use of electronic transfer of funds.

Source:

S.L. 1965, ch. 361, § 4; 1967, ch. 395, § 2; 1969, ch. 456, § 6; 1969, ch. 457, § 5; 1971, ch. 517, § 11; 1975, ch. 490, § 1; 1977, ch. 499, § 7; 1983, ch. 419, § 3; 1985, ch. 285, § 3; 1985, ch. 581, § 1; 1987, ch. 653, § 1; 1989, ch. 662, § 2; 1989, ch. 667, § 11; 1991, ch. 628, § 4; 1991, ch. 629, § 1; 1993, ch. 532, § 4; 1995, ch. 527, § 2; 1995, ch. 533, § 1; 1999, ch. 113, § 19; 2001, ch. 494, § 1; 2001, ch. 496, § 1; 2003, ch. 447, § 2; 2009, ch. 515, § 1; 2013, ch. 432, § 3; 2017, ch. 22, § 11, eff July 1, 2017.

Effective Date.

The 2013 amendment of this section by section 3 of chapter 432, S.L. 2013 became effective July 1, 2013.

Cross-References.

Investment and disbursement of moneys of retiree health benefits fund and administrative expenditures, see N.D.C.C. § 54-52.1-03.2.

Uniform group insurance program for state employees, see N.D.C.C. ch. 54-52.1.

54-52-05. Membership and assessments — Employer payment of employee contributions.

  1. Every eligible participating political subdivision employee, at the time the political subdivision joins the plan must so state in writing if the employee concurs in the plan and all future eligible employees of the participating political subdivision are participating members in the plan and must be enrolled in the plan within the first month of employment. Except as otherwise provided by law, every other eligible governmental unit employee of a participating governmental unit is a participating member in the plan and must be enrolled in the plan within the first month of employment. An employee who was not enrolled in the retirement system when eligible to participate must be enrolled immediately upon notice of the employee’s eligibility, unless the employee waives in writing the employee’s right to participate for the previous time of eligibility, to avoid contributing to the fund for past service. An employee who is eligible for normal retirement who accepts a retirement benefit under this chapter and who subsequently becomes employed with a participating employer other than the employer with which the employee was employed at the time the employee retired under this chapter may, before being re-enrolled in the retirement plan within the first month of employment, elect to permanently waive future participation in the retirement plan and the retiree health program and maintain that employee’s retirement status. An employee making this election is not required to make any future employee contributions to the public employees retirement system nor is the employee’s employer required to make any further contributions on behalf of that employee.
  2. Each member must be assessed and required to pay monthly four percent of the monthly salary or wage paid to the member, and such assessment must be deducted and retained out of such salary in equal monthly installments commencing with the first month of employment. Member contributions increase by one percent of the monthly salary or wage paid to the member beginning with the monthly reporting period of January 2012, and with an additional increase of one percent, beginning with the monthly reporting period of January 2013, and with an additional increase of one percent, beginning with the monthly reporting period of January 2014.
  3. Each employer, at its option, may pay all or a portion of the employee contributions required by subsection 2 and sections 54-52-06.1, 54-52-06.2, 54-52-06.3, and 54-52-06.4 or the employee contributions required to purchase service credit on a pretax basis pursuant to subsection 5 of section 54-52-17.4. Employees may not receive the contributed amounts directly once the employer has elected to pay the employee contributions. The amount paid must be paid by the employer in lieu of contributions by the employee. If the state determines not to pay the contributions, the amount that would have been paid must continue to be deducted from the employee’s compensation. If contributions are paid by the employer, they must be treated as employer contributions in determining tax treatment under this code and the federal Internal Revenue Code. If contributions are paid by the employer, they may not be included as gross income of the employee in determining tax treatment under this code and the Internal Revenue Code until they are distributed or made available. The employer shall pay these employee contributions from the same source of funds used in paying compensation to the employee. The employer shall pay these contributions by effecting an equal cash reduction in the gross salary of the employee or by an offset against future salary increases or by a contribution of a reduction in gross salary and offset against future salary increases. If employee contributions are paid by the employer, they must be treated for the purposes of this chapter in the same manner and to the same extent as employee contributions made prior to the date on which employee contributions were assumed by the employer. An employer exercising its option under this subsection shall report its choice to the board in writing.
  4. For compensation earned after August 1, 2009, all employee contributions required under section 54-52-06.1 and the job service North Dakota retirement plan, and not otherwise paid under subsection 3, must be paid by the employer in lieu of contributions by the member. All contributions paid by the employer under this subsection must be treated as employer contributions in determining tax treatment under this code and the Internal Revenue Code. Contributions paid by the employer under this subsection may not be included as gross income of the member in determining tax treatment under this code and the Internal Revenue Code until the contributions are distributed or made available. Contributions paid by the employer in accordance with this subsection must be treated for the purposes of this chapter in the same manner and to the same extent as member contributions made before the date the contributions were assumed by the employer. The employer shall pay these member contributions from the same source of funds used in paying compensation to the employee. The employer shall pay these contributions by effecting an equal cash reduction in the gross salary of the employee. The employer shall continue making payments under this section unless otherwise specifically provided for under the agency’s biennial appropriation or by amendment to law.

Source:

S.L. 1965, ch. 361, § 5; 1969, ch. 456, § 7; 1969, ch. 457, § 6; 1973, ch. 120, § 59; 1973, ch. 246, § 8; 1977, ch. 499, § 8; 1979, ch. 570, § 2; 1983, ch. 217, § 4; 1983, ch. 573, § 2; 1989, ch. 662, § 3; 1991, ch. 626, § 3; 1995, ch. 527, § 3; 1995, ch. 528, § 4; 1999, ch. 479, § 1; 2003, ch. 497, § 3; 2003, ch. 498, § 7; 2005, ch. 531, § 8; 2005, ch. 532, § 1; 2009, ch. 512, § 2; 2009, ch. 514, § 8; 2011, ch. 432, § 4; 2013, ch. 431, § 6; 2015, ch. 259, § 5, eff August 1, 2015; 2017, ch. 57, § 13, eff August 1, 2017.

Effective Date.

The 2015 amendment of this section by section 5 of chapter 259, S.L. 2015 became effective August 1, 2015.

The 2013 amendment of this section by section 6 of chapter 431, S.L. 2013 became effective July 1, 2013.

Notes to Decisions

Increased Employer Contributions to Plan As Result of Salary Reduction Agreement.

Salary reduction plan authorized by state board of higher education whereby employees agreed to a reduction in base salary of an amount equal to their contributions to the retirement plan in exchange for increased employer contributions to the plan in a like amount, thereby giving employees a tax benefit by deferring the federal income tax on all contributions, was permissible under this section, and did not constitute an unlawful exercise of legislative power by the state board since the salary reduction plan still satisfied the required statutory amount of the contributions and was merely a manner of executing the law that was within the administrative discretion of the state board. University of North Dakota v. United States, 603 F.2d 702, 1979 U.S. App. LEXIS 12919 (8th Cir. N.D. 1979).

Wages and Salaries.

Increased employer contributions to the retirement plan did not constitute employee salaries or wages subject to federal tax withholding under the Internal Revenue Code where the increased contributions were the result of an agreement whereby the employees agreed to a reduction in their base salary of an amount equal to their contributions to the plan in exchange for employer’s increased contributions to the plan in a like amount. University of North Dakota v. United States, 603 F.2d 702, 1979 U.S. App. LEXIS 12919 (8th Cir. N.D. 1979).

54-52-06. Employer’s contribution to retirement plan — Report to the legislative assembly.

  1. Each governmental unit shall contribute an amount equal to four and twelve-hundredths percent of the monthly salary or wage of a participating member. Governmental unit contributions increase by one percent of the monthly salary or wage of a participating member beginning with the monthly reporting period of January 2012; with an additional increase of one percent, beginning with the reporting period of January 2013; and with an additional increase of one percent, beginning with the monthly reporting period of January 2014. For a participating member who first enrolls after December 31, 2019, the governmental unit shall contribute an additional amount equal to one and fourteen-hundredths percent of the monthly salary or wage of the participating member.
  2. For those members who elect to exercise their rights under section 54-52-17.14, the employing governmental unit, or in the case of a member not presently under covered employment the most recent employing governmental unit, shall pay the associated employer contribution. If the employee’s contribution is paid by the governmental unit under subsection 3 of section 54-52-05, the employer unit shall contribute, in addition, an amount equal to the required employee’s contribution. Each governmental unit shall pay the contribution monthly, or in the case of an election made pursuant to section 54-52-17.14 a lump sum, into the retirement fund from the governmental unit’s funds appropriated for payroll and salary or any other funds available for these purposes. Any governmental unit failing to pay the contributions monthly, or in the case of an election made pursuant to section 54-52-17.14 a lump sum, or failing to otherwise comply with the board’s established wage reporting or payroll reporting process requirements, is subject to a civil penalty of fifty dollars and, as interest, one percent of the amount due for each month of delay or fraction of a month after the payment became due. In lieu of assessing a civil penalty or one percent per month, or both, interest at the actuarial rate of return may be assessed for each month the contributions are delinquent. If contributions are paid within ninety days of the date the contributions became due, penalty and interest to be paid on delinquent contributions may be waived.
  3. An employer is required to submit contributions for any past eligible employee who was employed after July 1, 1977, for which contributions were not made if the employee would have been eligible to become vested had the employee participated and if the employee elects to join the public employees retirement system. Employer contributions may not be assessed for eligible service that an employee has waived pursuant to subsection 1 of section 54-52-05.
  4. The board shall report to each session of the legislative assembly the contributions necessary, as determined by the actuarial study, to maintain the fund’s actuarial soundness.

Source:

S.L. 1965, ch. 361, § 6; 1969, ch. 456, § 8; 1969, ch. 457, § 7; 1973, ch. 246, § 9; 1975, ch. 490, § 2; 1977, ch. 499, § 9; 1983, ch. 217, § 5; 1989, ch. 445, § 2; 1991, ch. 600, § 13; 1991, ch. 630, § 4; 1995, ch. 527, § 4; 2005, ch. 531, § 9; 2011, ch. 432, § 5; 2013, ch. 431, § 7; 2019, ch. 459, § 2, eff July 1, 2019; 2021, ch. 438, § 1, eff August 1, 2021.

Effective Date.

The 2013 amendment of this section by section 7 of chapter 431, S.L. 2013 became effective July 1, 2013.

Cross-References.

Contribution to retiree health benefits fund, see N.D.C.C. § 54-52.1-03.2.

54-52-06.1. Contribution by supreme and district court judges — Employer contribution.

Each judge of the supreme or district court who is a member of the public employees retirement system must be assessed and required to pay monthly five percent of the judge’s monthly salary. Member contributions increase by one percent of the judge’s monthly salary beginning with the monthly reporting period of January 2012, and with an additional increase of one percent, beginning with the reporting period of January 2013, and with an additional increase of one percent, beginning with the monthly reporting period of January 2014. The assessment must be deducted and retained out of the judge’s salary in equal monthly installments. The state shall contribute an amount equal to fourteen and fifty-two one-hundredths percent of the monthly salary of a supreme or district court judge who is a participating member of the system, which matching contribution must be paid from its funds appropriated for salary, or from any other funds available for such purposes. State contributions increase by one percent of the monthly salary of a supreme or district court judge who is a participating member of the system beginning with the monthly reporting period of January 2012, and with an additional increase of one percent, beginning with the monthly reporting period of January 2013, and with an additional increase of one percent, beginning with the monthly reporting period of January 2014. If the judge’s contribution is paid by the state under subsection 3 of section 54-52-05, the state shall contribute, in addition, an amount equal to the required judge’s contribution.

Source:

S.L. 1973, ch. 246, § 10; 1977, ch. 499, § 10; 1983, ch. 217, § 6; 1983, ch. 576, § 2; 1985, ch. 582, § 1; 1989, ch. 445, § 3; 1991, ch. 627, § 2; 2011, ch. 432, § 6; 2013, ch. 431, § 8.

Effective Date.

The 2013 amendment of this section by section 8 of chapter 431, S.L. 2013 became effective July 1, 2013.

54-52-06.2. Contribution by national guard security officers or firefighters — Employer contribution.

Each national guard security officer or firefighter who is a member of the public employees retirement system is assessed and shall pay monthly four percent of the employee’s monthly salary. Member contributions increase by one-half of one percent of the member’s monthly salary beginning with the monthly reporting period of January 2014. Effective August 1, 2015, each national guard security officer or firefighter who is a participating member of the plan under this section becomes a participating member of the plan under section 54-52-06.4 and the board shall thereafter manage any account balance associated with those participating members under section 54-52-06.4. After July 31, 2015, a new eligible employee may not become a participating member of the plan under this section. The assessment must be deducted and retained out of the employee’s salary in equal monthly installments. The national guard security officer’s or firefighter’s employer shall contribute an amount determined by the board to be actuarially required to support the level of benefits specified in section 54-52-17. The employer’s contribution must be paid from funds appropriated for salary or from any other funds available for such purposes. If the security officer’s or firefighter’s assessment is paid by the employer under subsection 3 of section 54-52-05, the employer shall contribute, in addition, an amount equal to the required national guard security officer’s or firefighter’s assessment.

Source:

S.L. 1991, ch. 626, § 4; 1993, ch. 533, § 1; 2013, ch. 431, § 9; 2015, ch. 424, § 1, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 424, S.L. 2015 became effective August 1, 2015.

The 2013 amendment of this section by section 9 of chapter 431, S.L. 2013 became effective July 1, 2013.

54-52-06.3. Contribution by peace officers, firefighters, and correctional officers employed by political subdivisions — Employer contribution.

Each peace officer, firefighter, or correctional officer employed by a political subdivision that enters an agreement with the retirement board on behalf of its peace officers, firefighters, and correctional officers separately from its other employees and who is a member of the public employees retirement system is assessed and shall pay monthly four percent of the employee’s monthly salary. Peace officer, firefighter, or correctional officer contributions increase by one-half of one percent of the member’s monthly salary beginning with the monthly reporting period of January 2012, and with an additional increase of one-half of one percent, beginning with the monthly reporting period of January 2013, and with an additional increase of one-half of one percent, beginning with the monthly reporting period of January 2014. The assessment must be deducted and retained out of the employee’s salary in equal monthly installments. The peace officer’s, firefighter’s, or correctional officer’s employer shall contribute an amount determined by the board to be actuarially required to support the level of benefits specified in section 54-52-17. If the peace officer’s, firefighter’s, or correctional officer’s assessment is paid by the employer under subsection 3 of section 54-52-05, the employer shall contribute, in addition, an amount equal to the required peace officer’s, firefighter’s, or correctional officer’s assessment.

Source:

S.L. 2003, ch. 497, § 4; 2011, ch. 432, § 7; 2013, ch. 431, § 10; 2017, ch. 379, § 3, eff August 1, 2017.

Effective Date.

The 2013 amendment of this section by section 10 of chapter 431, S.L. 2013 became effective July 1, 2013.

54-52-06.4. Contribution by peace officers employed by the bureau of criminal investigation or security officers employed by the national guard — Employer contribution.

Each peace officer employed by the bureau of criminal investigation who is a member of the public employees retirement system is assessed and shall pay monthly four percent of the employee’s monthly salary. Peace officer contributions increase by one percent of the member’s monthly salary beginning with the monthly reporting period of January 2012, and with an additional increase of one percent, beginning with the reporting period of January 2013. Effective August 1, 2015, each national guard security officer who is a member of the public employee’s retirement system is assessed and monthly shall pay six percent of the employee’s monthly salary. National guard security officer contributions decrease by one-half of one percent of the member’s monthly salary beginning with the monthly reporting period of January 2016. The assessment must be deducted and retained out of the employee’s salary in equal monthly installments. The peace officer’s or security officer’s employer shall contribute an amount determined by the board to be actuarially required to support the level of benefits specified in section 54-52-17. The employer’s contribution must be paid from funds appropriated for salary or from any other funds available for such purposes. If the peace officer’s or security officer’s assessment is paid by the employer under subsection 3 of section 54-52-05, the employer shall contribute, in addition, an amount equal to the required peace officer’s or security officer’s assessment.

Source:

S.L. 2009, ch. 512, § 3; 2011, ch. 432, § 8; 2015, ch. 424, § 2, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 2 of chapter 424, S.L. 2015 became effective August 1, 2015.

54-52-06.5. Reduction in member and employer contributions.

The required increase in the amount of member and employer contributions under sections 54-52-02.9, 54-52-05, 54-52-06, 54-52-06.1, 54-52-06.3, 54-52.6-02, and 54-52.6-09 must be reduced to the rate in effect on July 1, 2013, effective on the July first that follows the first valuation of the public employees retirement system main system showing a ratio of the actuarial value of assets to the actuarial accrued liability of the public employees retirement system main system that is equal to or greater than one hundred percent.

Source:

S.L. 2013, ch. 431, § 11; 2015, ch. 424, § 3, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 3 of chapter 424, S.L. 2015 became effective August 1, 2015.

This section became effective July 1, 2013.

54-52-07. Governmental unit contribution is retirement contribution.

The governmental unit contribution to a retirement plan must be considered a retirement contribution and not an additional compensation. This applies specifically to elected and appointed officials whose maximum annual compensation is set by statute or by state, county, city, or school district governing bodies, boards, or commissions. The retirement contribution may not be considered by the employee as income in computing the employee’s net income for purposes of state income tax until the moneys come under the control of the employee.

Source:

S.L. 1965, ch. 361, § 7; 1969, ch. 456, § 9; 1969, ch. 457, § 8; 1995, ch. 528, § 5.

54-52-08. State income tax deductions.

For the purposes of state income tax, the assessment imposed by this chapter on the employee must be treated in accordance with existing state statutes on state income tax.

Source:

S.L. 1965, ch. 361, § 8.

54-52-09. Exemption from state premium tax.

Premiums, consideration for annuities, and membership fees are exempt from premium taxes payable pursuant to section 26.1-03-17.

Source:

S.L. 1965, ch. 361, § 9; 1983, ch. 319, § 32.

54-52-10. Allocation of funds.

The board shall maintain such funds and accounts as may be necessary to administer the provisions of this chapter. Any and all expenses incurred by or for the operation of the retirement plan must be paid from the funds contributed pursuant to sections 54-52-06 and 54-52-06.1.

Source:

S.L. 1965, ch. 361, § 10; 1969, ch. 456, § 10; 1969, ch. 457, § 9; 1973, ch. 246, § 11; 1977, ch. 499, § 11.

54-52-10.1. Payment of benefits and other costs.

The board shall use funds under its control both before and after July 1, 1977, to administer this chapter and pay benefits authorized by this chapter.

Source:

S.L. 1977, ch. 499, § 12.

54-52-11. Vesting — Vesting schedule of agency, county, city, or school district contribution. [Repealed]

Repealed by S.L. 1977, ch. 499, § 17.

54-52-11.1. Vesting of employer contributions.

Except for supreme and district court judges, who are not eligible for benefits under this section, a member’s account balance includes vested employer contributions equal to the member’s contributions to the deferred compensation plan for public employees under chapter 54-52.2, or member contributions to other participating employer supplemental Internal Revenue Code section 457 or 403(b) retirement programs as approved by the board, with the minimum member contribution being twenty-five dollars. However, the vested employer contribution may not exceed:

  1. For months one through twelve of service credit, twenty-five dollars or one percent of the member’s monthly salary, whichever is greater.
  2. For months thirteen through twenty-four of service credit, twenty-five dollars or two percent of the member’s monthly salary, whichever is greater.
  3. For months twenty-five through thirty-six of service credit, twenty-five dollars or three percent of the member’s monthly salary, whichever is greater.
  4. For service exceeding thirty-six months, twenty-five dollars or four percent of the member’s monthly salary, whichever is greater.
  5. The vested employer contribution may not exceed four percent of the member’s monthly salary.

Vested employer contributions must be credited monthly to the member’s account balance.

Source:

S.L. 1999, ch. 478, § 9.

54-52-12. Exemption from taxation and judicial process — Prohibition of assignment. [Repealed]

Repealed by S.L. 1987, ch. 386, § 2.

54-52-13. Deposit of moneys — Appropriation.

All moneys, including but not limited to employers’ contributions, employees’ contributions, grants, donations, legacies, and devises for the benefit of the fund, must be deposited in the public employees retirement fund account with the Bank of North Dakota. All of said moneys, not otherwise appropriated, are hereby appropriated for the purpose of making investments for the employees retirement fund and to make payments to beneficiaries under the program.

Source:

S.L. 1965, ch. 361, § 13; 1967, ch. 395, § 3; 1973, ch. 246, § 13; 1983, ch. 577, § 1.

54-52-13.1. Retirement benefits — Continuing appropriation.

The funds necessary for paying prior service and service benefits, consultant fees, and making withdrawal payments and refunds, are hereby appropriated from the retirement fund for those purposes.

Source:

S.L. 1993, ch. 532, § 8.

54-52-14. Acceptance of money and property by the board.

The board may take by gift, grant, devise, or bequest, any money or real or personal property or any other thing of value for the benefit of the employees retirement fund, and when received, said property becomes a part of such fund.

Source:

S.L. 1965, ch. 361, § 14.

54-52-14.1. Investment of moneys in fund.

Investment of the fund is under the supervision of the state investment board in accordance with chapter 21-10. Such moneys must be placed for investment only with a firm or firms whose endeavor is money management, and only after a trust agreement or contract has been executed. Investment costs may be paid directly from the fund, and are hereby appropriated for that purpose, in accordance with section 21-10-06.2.

Source:

S.L. 1989, ch. 667, § 12.

54-52-14.2. Interest and earnings attributable to administered funds.

All interest and earnings on funds administered by the retirement board established under chapters 39-03.1, 54-52, 54-52.1, 54-52.2, and 54-52.3 must be credited to the respective fund.

Source:

S.L. 1995, ch. 527, § 7.

54-52-14.3. Public employee retirement funds — Use and investment.

Any provision of law relating to the use and investment of public employee retirement funds must be deemed a part of the employment contracts of the employees participating in any public employee retirement system. All moneys from any source paid into any public employee retirement system fund created by the laws of this state must be used and invested only for the exclusive benefit of the members, retirees, and beneficiaries of that system, including the payment of system administrative costs.

Source:

S.L. 1995, ch. 530, § 1.

54-52-15. Accounting requirements. [Repealed]

Repealed by S.L. 1969, ch. 458, § 1.

54-52-16. Insurance contracts — Trust agreements.

For the purpose of establishing the funding agent or agents, the board may enter into an insurance contract, agreement, or purchase an insurance policy or policies covering all or any part of the retirement plan adopted, provided the assuring company is a North Dakota corporation or authorized to do business in the state of North Dakota, or may enter into a contract with any qualified trust company or companies, or combinations of insurance contracts and trust contracts.

Source:

S.L. 1965, ch. 361, § 16; 1967, ch. 395, § 4.

54-52-17. Formulation of plan.

Participating members shall receive benefits according to this section and according to rules adopted by the board, not inconsistent with this chapter. No person is entitled to receive a prior service benefit if the person was not continuously employed by a governmental unit in North Dakota for a period of not less than two years immediately prior to eligibility for retirement.

  1. Participating members shall receive credit for full-time employment or its equivalent from the date they attain eligibility until their normal retirement date, postponed retirement date, or early retirement date, as defined in this section. Part-time employment will be recognized as full-time employment on a prorated basis as the board may prescribe.
  2. Retirement benefits are calculated from the participating member’s final average salary, which is the average of the highest salary received by the member for any thirty-six months employed during the last one hundred twenty months of employment. For members who terminate employment on or after August 1, 2010, final average salary is the average of the highest salary received by the member for any thirty-six months employed during the last one hundred eighty months of employment. For members who terminate employment between July 31, 2005, and August 1, 2010, final average salary is the average of the highest salary received by the member for any thirty-six months employed during the period for which the board has appropriate and accurate salary records on the board’s electronic database, but that period may not be more than the last one hundred eighty months of employment. For members who terminate employment after December 31, 2019, final average salary is the higher of the final average salary calculated on December 31, 2019, or the average salary earned in the three highest periods of twelve consecutive months employed during the last one hundred eighty months of employment. Months without earnings are excluded for the purpose of computing an average. If the participating member has worked for less than thirty-six months at the normal retirement date, the final average salary is the average salary for the total months of employment.
  3. Retirement dates are defined as follows:
    1. Normal retirement date, except for a national guard security officer or firefighter, a firefighter employed by a political subdivision, or a peace officer or correctional officer employed by the bureau of criminal investigation or by a political subdivision, is:
      1. The first day of the month next following the month in which the member attains the age of sixty-five years; or
      2. When the member has a combined total of years of service credit and years of age equal to eighty-five and has not received a retirement benefit under this chapter.
    2. Normal retirement date for members first enrolled after December 31, 2015, except for a national guard security officer or firefighter, a firefighter employed by a political subdivision, or a peace officer or correctional officer employed by the bureau of criminal investigation or by a political subdivision, or a supreme court or district court judge, is:
      1. The first day of the month next following the month in which the member attains the age of sixty-five years; or
      2. When the member has a combined total of years of service credit and years of age equal to ninety and the member attains a minimum age of sixty and has not received a retirement benefit under this chapter.
    3. Normal retirement date for a national guard security officer or firefighter is:
      1. The first day of the month next following the month in which the national guard security officer or firefighter attains the age of fifty-five years and has completed at least three eligible years of employment; or
      2. When the national guard security officer or firefighter has a combined total of years of service credit and years of age equal to eighty-five and has not received a retirement benefit under this chapter.
    4. Normal retirement date for a peace officer, firefighter, or correctional officer employed by a political subdivision is:
      1. The first day of the month next following the month in which the peace officer, firefighter, or correctional officer attains the age of fifty-five years and has completed at least three eligible years of employment; or
      2. When the peace officer, firefighter, or correctional officer has a combined total of years of service credit and years of age equal to eighty-five and has not received a retirement benefit under this chapter.
    5. Normal retirement date for a peace officer employed by the bureau of criminal investigation is:
      1. The first day of the month next following the month in which the peace officer attains the age of fifty-five years and has completed at least three eligible years of employment; or
      2. When the peace officer has a combined total of years of service credit and years of age equal to eighty-five and has not received a retirement benefit under this chapter.
    6. Postponed retirement date is the first day of the month next following the month in which the member, on or after July 1, 1977, actually severs or has severed the member’s employment after reaching the normal retirement date.
    7. Early retirement date, except for a national guard security officer or firefighter, a firefighter employed by a political subdivision, or a peace officer or correctional officer employed by the bureau of criminal investigation or by a political subdivision, is the first day of the month next following the month in which the member attains the age of fifty-five years and has completed three years of eligible employment. For a national guard security officer or firefighter, early retirement date is the first day of the month next following the month in which the national guard security officer or firefighter attains the age of fifty years and has completed at least three years of eligible employment. For a firefighter employed by a political subdivision or a peace officer or correctional officer employed by the bureau of criminal investigation or by a political subdivision, early retirement date is the first day of the month next following the month in which the peace officer, firefighter, or correctional officer attains the age of fifty years and has completed at least three years of eligible employment.
    8. Disability retirement date is the first day of the month after a member becomes permanently and totally disabled, according to medical evidence called for under the rules of the board, and has completed at least one hundred eighty days of eligible employment. For supreme and district court judges, permanent and total disability is based solely on a judge’s inability to perform judicial duties arising out of physical or mental impairment, as determined pursuant to rules adopted by the board or as provided by subdivision a of subsection 3 of section 27-23-03.
      1. A member is eligible to receive disability retirement benefits only if the member became disabled during the period of eligible employment and applies for disability retirement benefits within twelve months of the date the member terminates employment.
      2. A member is eligible to continue to receive disability benefits as long as the permanent and total disability continues and the member submits the necessary documentation and undergoes medical testing required by the board, or for as long as the member participates in a rehabilitation program required by the board, or both. If the board determines a member no longer meets the eligibility definition, the board may discontinue the disability retirement benefit. The board may pay the cost of any medical testing or rehabilitation services the board deems necessary and these payments are appropriated from the retirement fund for those purposes. A member’s receipt of disability benefits under this section is limited to receipt from the fund to which the member was actively contributing at the time the member became disabled.
  4. The board shall calculate retirement benefits as follows:
    1. Normal retirement benefits for all retirees, except supreme and district court judges, reaching normal retirement date equal an annual amount, payable monthly, comprised of a service benefit and a prior service benefit, as defined in this chapter, which is determined as follows:
      1. For members first enrolled:
        1. Before January 1, 2020, service benefit equals two percent of final average salary multiplied by the number of years of service employment.
        2. After December 31, 2019, service benefit equals one and seventy-five hundredths percent of final average salary multiplied by the number of years of service employment.
      2. Prior service benefit equals two percent of final average salary multiplied by the number of years of prior service employment.
    2. Normal retirement benefits for all supreme and district court judges under the public employees retirement system reaching normal retirement date equal an annual amount, payable monthly, comprised of a benefit as defined in this chapter, determined as follows:
      1. Benefits must be calculated from the time of appointment or election to the bench and must equal three and one-half percent of final average salary multiplied by the first ten years of judicial service, two and eighty hundredths percent of final average salary multiplied by the second ten years of judicial service, and one and one-fourth percent of final average salary multiplied by the number of years of judicial service exceeding twenty years.
      2. Service benefits must include, in addition, an amount equal to the percent specified in subdivision a of final average salary multiplied by the number of years of nonjudicial employee service and employment.
    3. Postponed retirement benefits are calculated as for single life benefits for those members who retired on or after July 1, 1977.
    4. Early retirement benefits are calculated as for single life benefits accrued to the date of termination of employment, but must be actuarially reduced to account for benefit payments beginning before the normal retirement date, as determined under subsection 3. Except for a national guard security officer or firefighter, a firefighter employed by a political subdivision, a peace officer or correctional officer employed by the bureau of criminal investigation or by a political subdivision, or a supreme court or district court judge, early retirement benefits for members first enrolled after December 31, 2015, are calculated for single life benefits accrued to the date of termination of employment, but must be reduced by fixed rate of eight percent per year to account for benefit payments beginning before the normal retirement date. A retiree, other than a supreme or district court judge, is eligible for early retirement benefits only after having completed three years of eligible employment. A supreme or district court judge retiree is eligible for early retirement benefits only after having completed five years of eligible employment.
    5. Except for supreme and district court judges, disability retirement benefits are twenty-five percent of the member’s final average salary. Disability retirement benefits for supreme and district court judges are seventy percent of final average salary reduced by the member’s primary social security benefits and by any workforce safety and insurance benefits paid. The minimum monthly disability retirement benefit under this section is one hundred dollars.
  5. Upon termination of employment after completing three years of eligible employment, except for supreme and district court judges, who must complete five years of eligible employment, but before normal retirement date, a member who does not elect to receive early retirement benefits is eligible to receive deferred vested retirement benefits payable commencing on the member’s normal retirement date in one of the optional forms provided in subsection 9. Members who have delayed or inadvertently failed to apply for retirement benefits to commence on their normal retirement date may choose to receive either a lump sum payment equal to the amount of missed payments, or an actuarial increase to the form of benefit the member has selected, which increase must reflect the missed payments.
  6. If before retiring a member dies after completing three years of eligible employment, except for supreme and district court judges, who must have completed five years of eligible employment, the board shall pay the member’s account balance to the member’s designated beneficiary as provided in this subsection. If the member has designated an alternate beneficiary with the surviving spouse’s written consent, the board shall pay the member’s account balance to the named beneficiary. If the member has named more than one primary beneficiary, the board shall pay the member’s account balance to the named primary beneficiaries in the percentages designated by the member or, if the member has not designated a percentage for the beneficiaries, in equal percentages. If one or more of the primary beneficiaries has predeceased the member, the board shall pay the predeceased beneficiary’s share to the remaining primary beneficiaries. If any beneficiary survives the member, yet dies before distribution of the beneficiary’s share, the beneficiary must be treated as if the beneficiary predeceased the member. If there are no remaining primary beneficiaries, the board shall pay the member’s account balance to the contingent beneficiaries in the same manner. If there are no remaining designated beneficiaries, the board shall pay the member’s account balance to the member’s estate. If the member has not designated an alternate beneficiary or the surviving spouse is the beneficiary, the surviving spouse of the member may select a form of payment as follows:
    1. If the member was a supreme or district court judge, the surviving spouse may select one of the following optional forms of payment:
      1. A lump sum payment of the member’s retirement account as of the date of death.
      2. Payments as calculated for the deceased member as if the member was of normal retirement age at the date of death, payable until the spouse dies.
    2. The surviving spouse of all other members may select one of the following options:
      1. A lump sum payment of the member’s retirement account as of the date of death.
      2. Payment of a monthly retirement benefit equal to fifty percent of the deceased member’s accrued single life retirement benefits until the spouse dies.
      3. If the member dies on or after the member’s normal retirement date, the payment of a monthly retirement benefit equal to an amount that would have been paid to the surviving spouse if the member had retired on the day of the member’s death and had selected a one hundred percent joint and survivor annuity, payable until the spouse dies. A surviving spouse who received a benefit under this subsection as of July 31, 1995, is entitled to the higher of that person’s existing benefit or the equivalent of the accrued benefit available under the one hundred percent joint and survivor provision as if the deceased member were of normal retirement age, with the increase payable beginning August 1, 1995.
  7. If a member not coming under the provisions of subsection 6 terminates employment because of death, permanent and total disability, or any voluntary or involuntary reason prior to retirement, the member or the member’s designated beneficiary is entitled to the member’s account balance at termination. The board automatically shall refund a member’s account balance if the member has completed less than three years of eligible employment, has an account balance of less than one thousand dollars, and was not a supreme or district court judge. If the member was a supreme or district court judge, the board automatically shall refund a member’s account balance if the member completed less than five years of eligible employment. A member may waive the refund if the member submits a written statement to the board, within thirty days after termination, requesting that the member’s account balance remain in the fund.
  8. The surviving spouse of a member receiving retirement benefits must be the member’s primary beneficiary unless there is no surviving spouse or the surviving spouse designates an alternate beneficiary in writing. If a member receiving retirement benefits or the member’s surviving spouse receiving retirement benefits dies before the total amount of benefits paid to either or both equals the amount of the member’s account balance at retirement, the difference must be paid to the named beneficiary of the recipient or, if there is no named beneficiary, to the recipient’s estate. A benefit payment owed to the member, surviving spouse, or alternate beneficiary which was not paid before the death of the member, surviving spouse, or alternate beneficiary must be paid to the named beneficiary of the recipient or, if there is no named beneficiary, to the recipient’s estate.
  9. The board shall adopt rules providing for the receipt of retirement benefits in the following optional forms:
    1. Single life.
    2. An actuarially equivalent joint and survivor option, with fifty percent or one hundred percent options.
    3. Actuarially equivalent life with ten-year or twenty-year certain options.
    4. An actuarially equivalent partial lump sum distribution option with a twelve-month maximum lump sum distribution.
    5. An actuarially equivalent graduated benefit option with either a one percent or two percent increase to be applied the first day of January of each year.
  10. The fund may accept rollovers from other eligible plans under rules adopted by the board for the purchase of additional service credit, but only to the extent the transfer is a rollover contribution that meets the requirement of section 408 of the Internal Revenue Code.
  11. The board may accept trustee-to-trustee transfers as permitted by Internal Revenue Code section 403(b)(13) and section 457(e)(17) from an Internal Revenue Code section 403(b) annuity or Internal Revenue Code section 457 deferred compensation plan for the purchase of permissive service credit, as defined in Internal Revenue Code section 415(n)(3)(A) or as repayment of a cashout from a governmental plan under Internal Revenue Code section 415(k)(3).
  12. The board may establish individual retirement accounts and individual retirement annuities as permitted under section 408(q) of the Internal Revenue Code to allow employees to make voluntary employee contributions. The board may adopt rules to implement and administer the accounts and annuities under this section.

Except for supreme and district court judges, unless a member specifically requests that the member receive benefits according to one of these options at the time of applying for retirement, all retirement benefits must be in the form of a single life benefit. For supreme and district court judges, unless a member specifically requests that the member receive benefits according to one of these options at the time of applying for retirement, all retirement benefits must be in the form of a lifetime monthly pension with fifty percent of the benefit continuing for the life of the surviving spouse, if any.

Source:

S.L. 1965, ch. 361, § 17; 1977, ch. 499, § 13; 1979, ch. 571, § 2; 1979, ch. 573, § 1; 1979, ch. 574, § 1; 1979, ch. 575, § 1; 1981, ch. 547, § 1; 1981, ch. 548, § 1; 1981, ch. 549, §§ 1, 2; 1981, ch. 550, §§ 1, 2; 1981, ch. 551, § 1; 1983, ch. 572, § 2; 1983, ch. 576, § 3; 1983, ch. 578, § 1; 1983, ch. 579, § 1; 1985, ch. 583, § 1; 1985, ch. 584, § 1; 1985, ch. 585, § 1; 1985, ch. 586, § 1; 1987, ch. 652, §§ 2-5; R.M. disapproved December 5, 1989, S.L. 1991, ch. 740; S.L. 1989, ch. 69, § 61; 1989, ch. 666, §§ 2-4; 1989, ch. 668, §§ 1, 2; 1989, ch. 669, § 1; 1989, ch. 670, § 1; 1991, ch. 626, § 5; 1991, ch. 627, § 3; 1991, ch. 631, § 1; 1993, ch. 532, § 5; 1993, ch. 533, § 2; 1993, ch. 534, §§ 1-3; 1995, ch. 527, § 5; 1995, ch. 531, §§ 1, 2; 1995, ch. 532, § 1; 1997, ch. 51, § 38; 1997, ch. 463, §§ 1, 2; 1999, ch. 478, §§ 2 to 6; 1999, ch. 480, §§ 2, 3; 2001, ch. 494, § 2; 2001, ch. 495, §§ 1, 2, 3; 2003, ch. 497, § 5; 2003, ch. 498, § 8; 2003, ch. 561, § 3; 2005, ch. 531, § 10; 2005, ch. 533, § 3; 2007, ch. 482, § 7; 2009, ch. 512, § 4; 2009, ch. 514, §§ 9, 10; 2011, ch. 431, § 7; 2013, ch. 432, § 4; 2015, ch. 424, § 4; 2015, ch. 259, § 6; 2015, ch. 49, §§ 27, 28, eff July 1, 2015; 2017, ch. 372, § 3, eff August 1, 2017; 2017, ch. 379, § 4, eff August 1, 2017; 2019, ch. 460, § 2, eff August 1, 2019; 2019, ch. 461, § 1, eff August 1, 2019; 2021, ch. 439, § 3, eff August 1, 2021.

Effective Date.

The 2015 amendment of this section by section 4 of chapter 424, S.L. 2015 became effective August 1, 2015.

The 2015 amendment of this section by section 6 of chapter 259, S.L. 2015 became effective August 1, 2015.

The 2015 amendment of this section by section 27 and 28 of chapter 49, S.L. 2015 became effective July 1, 2015.

The 2013 amendment of this section by section 4 of chapter 432, S.L. 2013 became effective July 1, 2013.

Note.

Section 54-52-17 was amended 2 times by the 2019 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 1 of Chapter 461, Session Laws 2019, Senate Bill 2047; and Section 2 of Chapter 460 Session Laws 2019, Senate Bill 2049.

Section 54-52-17 was amended 2 times by the 2017 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 3 of Chapter 372, Session Laws 2017, Senate Bill 2053; and Section 4 of Chapter 379, Session Laws 2017, House Bill 1148.

Section 54-52-17 was amended 4 times by the 2015 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 6 of Chapter 259, Session Laws 2015, House Bill 1062; Section 4 of Chapter 424, Session Laws 2015, Senate Bill 2102; Section 28 of Chapter 49, Session Laws 2015, Senate Bill 2015; and Section 27 of Chapter 49, Session Laws 2015, Senate Bill 2015.

Cross-References.

Eligibility for retiree health benefits, see N.D.C.C. § 54-52.1-03.3.

54-52-17.1. Actuarial studies required.

Before making changes in benefit levels the legislative assembly and the board shall have an actuarial study conducted to determine the total cost of such changes.

Source:

S.L. 1977, ch. 499, § 14.

54-52-17.2. Multiple plan membership — Eligibility for benefits — Amount of benefits.

    1. For the purpose of determining eligibility for benefits under this chapter, an employee’s years of service credit is the total of the years of service credit earned in the public employees retirement system and the years of service credit earned in any number of the following:
      1. The teachers’ fund for retirement.
      2. The highway patrolmen’s retirement system.
      3. The teachers’ insurance and annuity association of America - college retirement equities fund (TIAA-CREF), for service credit earned while employed by North Dakota institutions of higher education.
    2. Pursuant to rules adopted by the board, an employee who has service credit in the system and in any of the plans described in paragraphs 1 and 2 of subdivision a is entitled to benefits under this chapter. The benefits of a temporary employee employed after July 31, 2015, must be calculated using the benefit formula in section 54-52-17. A permanent employee or a temporary employee employed before August 1, 2015, may elect to have benefits calculated using the benefit formula in section 54-52-17 under either of the following methods:
      1. The final average salary as calculated in section 54-52-17. If the participating member has worked for less than thirty-six months at retirement, the final average salary is the average salary for the total months of employment.
      2. The final average salary as calculated in section 54-52-17 for employment with any of the three eligible employers under this subdivision, with service credit not to exceed one month in any month when combined with the service credit earned in the alternate retirement system.
    1. If an employee who is eligible to participate in the public employees retirement system is also employed in any position when membership in an alternate retirement system is required, then, for purposes of current participation, the employee is a member of each applicable retirement system. The employer shall pay over to each retirement system the member assessment and employer contributions at the rates currently existing for that retirement system.
    2. If an employee described in subdivision a was employed prior to August 1, 2003, and has dual membership rights, the employee may elect to begin participation in the alternate plan pursuant to the plan provisions on August 1, 2003, or may continue participation according to the plan provisions in effect on July 31, 2003. An employee’s election under this subdivision is ineffective unless delivered to the public employees retirement system administrative offices by five p.m. on October 31, 2003. If an election is not received by the public employees retirement system, the participation and benefit calculation requirements in effect on July 31, 2003, apply to that employee.

Service credit may not exceed twelve months of credit per year.

The board shall calculate benefits for an employee under this subsection by using only those years of service credit earned under this chapter.

Source:

S.L. 1985, ch. 222, § 5; 1987, ch. 223, § 3; R.M. disapproved December 5, 1989, S.L. 1991, ch. 740; S.L. 1989, ch. 671, § 1; 2003, ch. 498, § 9; 2015, ch. 259, § 7, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 7 of chapter 259, S.L. 2015 became effective August 1, 2015.

54-52-17.3. Purchase of legislative service credit.

A member may purchase service credit for the time during each legislative session spent serving as a member of the legislative assembly while holding eligible employment under this chapter. The member shall pay for this service credit an amount equal to the required member assessments and employer contributions plus interest as established by the board. Service credit for legislative sessions prior to July 1, 1985, must be purchased before January 1, 1986. Service credit for each later legislative session must be purchased within one year after the adjournment of that legislative session.

Source:

S.L. 1985, ch. 587, § 6; R.M. disapproved December 5, 1989, S.L. 1991, ch. 740.

54-52-17.4. Purchase of additional credit.

  1. A participating member may elect to purchase credit for years of service and prior service for which the participating member is not presently receiving credit. A participating member is entitled to purchase additional credit under this section for the following service or prior service, except this service is not eligible for credit if the years claimed also qualify for retirement benefits from another retirement system:
    1. Active prior employment in the armed forces of the United States, except as provided in section 54-52-17.14, for up to four years of credit.
    2. Employment as a permanent employee by a public employer either within or outside the state of North Dakota.
    3. Employment as a permanent employee by a political subdivision participating in the public employees retirement system which did not pay the cost of past service benefits under section 54-52-02.1.
    4. Service the participating member did not elect to repurchase upon re-employment under section 54-52-02.6.
    5. Service of an eligible employee, who exercised the privilege to withdraw from the predecessor plan to the public employees retirement system under subsection 10 of section 54-52-17 as created by section 13 of chapter 499 of the 1977 Session Laws.
    6. Employment as a permanent employee by the federal government.
  2. A participating member may elect to purchase credit for the following absences for which the participating member is not receiving service credit:
    1. Employer-approved leave of absence; or
    2. Months away from work while participating as a seasonal employee.
  3. Supreme and district court judges under the public employees retirement system may elect to purchase credit for the following years of service:
    1. Except as provided in section 54-52-17.14, for up to four years of credit for active employment in the armed forces of the United States.
    2. As a county judge in a county or counties that did not participate in the public employees retirement system under this chapter.
    3. Participation in the public employees retirement system as a county judge may be converted to credit in the judges’ retirement system.
  4. The participating member may purchase credit under this section, or the participating member’s employer may purchase for the participating member, by paying to the board an amount equal to the actuarial cost to the fund of providing the credit. If the participating member purchases credit pursuant to subdivision d of subsection 1, the participating member must pay to the board an amount equal to the greater of the actuarial cost to the fund of providing the credit, or the amount the participating member received upon taking a refund of the participating member’s account balance, plus interest at the actuarial rate of return from the time the participating member was issued the refund. If the participating member is not repurchasing all of the credit originally refunded, the participating member must pay a pro rata amount of the refunded amount determined by dividing the refunded amount by the number of months of credit refunded, multiplying that amount times the number of months of credit the participating member seeks to repurchase, and adding interest at the actuarial rate of return. The participating member or the participating member’s employer shall also pay to the retiree health benefits fund established under section 54-52.1-03.2 an amount equal to the actuarial cost to that fund for the additional credit. This contribution must be recorded as a member contribution pursuant to section 54-52.1-03.2. The board shall adopt rules governing the purchase of additional credit under this section.
  5. Pursuant to rules adopted by the board, the board may allow a participating member to purchase service credit with either pretax or aftertax moneys, at the board’s discretion. If the participating member elects to purchase service credit using pretax moneys, the requirements and restrictions in subsection 3 of section 54-52-05 apply to the purchase arrangement.
  6. In addition to service credit identified in this section, a vested participating member may purchase up to five years of service credit unrelated to any other eligible service.

Source:

S.L. 1989, ch. 672, § 1; 1991, ch. 630, § 5; 1991, ch. 633, § 1; 1993, ch. 532, § 6; 1995, ch. 54, § 42; 1995, ch. 527, § 6; 1997, ch. 464, § 3; 2001, ch. 494, §§ 3, 4; 2003, ch. 34, § 17; 2003, ch. 498, §§ 10, 11; 2005, ch. 531, § 11; 2007, ch. 482, § 8.

54-52-17.5. Postretirement adjustments.

An individual or the individual’s beneficiary who, on July 31, 2001, is receiving retirement benefits under subdivision a, c, d, or e of subsection 4 of section 54-52-17 is entitled to receive an increase in benefits equal to six percent of the individual’s present benefits with the increase payable beginning August 1, 2001.

Source:

S.L. 1989, ch. 668, § 3; 1997, ch. 463, § 3; 1999, ch. 478, § 7; 2001, ch. 494, § 5.

54-52-17.6. Benefit payments to alternate payee under qualified domestic relations order.

  1. The board shall pay retirement benefits in accordance with the applicable requirements of any qualified domestic relations order. The board shall review a domestic relations order submitted to it to determine if the domestic relations order is qualified under this section and under rules established by the board for determining the qualified status of domestic relations orders and administering distributions under the qualified orders. Upon determination that a domestic relations order is qualified, the board shall notify the participating member and the named alternate payee of its receipt of the qualified domestic relations order.
  2. A “qualified domestic relations order” for purposes of this section means any judgment, decree, or order, including approval of a property settlement agreement, which relates to the provision of child support, spousal support, or marital property rights to a spouse, former spouse, child, or other dependent of a participating member, is made pursuant to a North Dakota domestic relations law, and which creates or recognizes the existence of an alternate payee’s right to, or assigns to an alternate payee the right to, receive all or a part of the benefits payable to the participating member. A qualified domestic relations order may not require the board to provide any type or form of benefit, or any option, not otherwise provided under the public employees retirement system, or to provide increased benefits as determined on the basis of actuarial value. However, a qualified domestic relations order may require the payment of benefits at the early retirement date notwithstanding that the participating member has not terminated eligible employment. A qualified domestic relations order must specify:
    1. The name and the last-known mailing address of the participating member and the name and mailing address of each alternate payee covered by the order;
    2. The amount or percentage of the participating member’s benefits to be paid by the plan to each alternate payee;
    3. The number of payments or period to which the order applies; and
    4. Each retirement plan to which the order applies.

Source:

S.L. 1989, ch. 392, § 4.

Cross-References.

Inapplicability of certain exemptions from process, etc., see N.D.C.C. §§ 28-22-03.1, 28-22-19.

54-52-17.7. Employment records.

The years of service and prior service credit for each member as indicated in the records of the public employees retirement system as of July 1, 1991, are deemed correct and recognized as creditable years of service and prior service credit for purposes of calculating retirement benefits under this chapter and may not be reduced. However, the records may be corrected to reflect additional months of creditable service and prior service credit upon proper verification.

Source:

S.L. 1991, ch. 630, § 6.

54-52-17.8. Benefit limitations. [Repealed]

Repealed by S.L. 2003, ch. 498, § 22.

54-52-17.9. Prior service retiree adjustment. [Repealed]

Repealed by S.L. 2001, ch. 494, § 10.

54-52-17.10. Prior service retiree adjustment.

Prior service retirees who are receiving benefits under this chapter on July 31, 2001, are entitled to receive an increase in benefits equal to six percent of the individual’s present benefit, with the increased benefits payable beginning August 1, 2001. A prior service retiree is a former participating employee who receives a supplemental monthly payment from the retirement system based upon the original prior service credit system.

Source:

S.L. 1993, ch. 534, § 5; 1997, ch. 463, § 4; 1999, ch. 478, § 8; 2001, ch. 494, § 6.

54-52-17.11. Judges postretirement adjustments.

A supreme or district court judge or that person’s beneficiary who, on December 31, 2007, is receiving retirement benefits under subdivision b of subsection 4 of section 54-52-17, is entitled to receive an increase in benefits equal to two percent of the individual’s present benefits with the increase payable beginning January 1, 2008. A supreme or district court judge or that person’s beneficiary who, on December 31, 2008, is receiving retirement benefits under subdivision b of subsection 4 of section 54-52-17, is entitled to receive an increase in benefits equal to two percent of the individual’s present benefits with the increase payable beginning January 1, 2009. The increases allowed by this section may only be given if the public employees retirement board determines there is actuarial margin sufficient to pay the increases.

Source:

S.L. 1997, ch. 465, § 1; 2001, ch. 495, § 4; 2007, ch. 484, § 2.

54-52-17.12. Judges postretirement adjustments. [Repealed]

Repealed by S.L. 2001, ch. 495, § 5.

54-52-17.13. Supplemental retiree benefit payment.

If the board determines that the fund has obtained a total return on investments of nine and six hundredths percent or higher for the fiscal year ending June 30, 2007, or June 30, 2008, the board shall authorize an additional payment equal to seventy-five percent of the January retirement allowance following the fiscal yearend to each eligible retiree in pay status as of that January, excluding judicial retirees and beneficiaries, but including joint and survivor and term certain beneficiaries, under this chapter. The board may only make one payment to each retiree under this section.

Source:

S.L. 2005, ch. 533, § 4; 2007, ch. 484, § 3.

54-52-17.14. Military service under the Uniformed Services Employment and Reemployment Rights Act — Member retirement credit.

A member re-employed under the Uniformed Services Employment and Re-employment Rights Act of 1994, as amended [Pub. L. 103-353; 108 Stat. 3150; 38 U.S.C. 4301-4333], is entitled to receive retirement credit for the period of qualified military service. The required contribution for the credit, including payment for retiree health benefits, must be made in the same manner and by the same party as would have been made had the employee been continuously employed. If the salary the member would have received during the period of service is not reasonably certain, the member’s average rate of compensation during the twelve-month period immediately preceding the member’s period of service or, if shorter, the period of employment immediately preceding that period, times the number of months of credit being purchased must be used. Employees must be allowed up to three times the period of military service or five years, whichever is less, to make any required payments. This provision applies to all qualifying periods of military service since October 1, 1994. Effective for years after December 31, 2008, compensation for purposes of Internal Revenue Code section 415 [26 U.S.C. 415], as amended, includes military differential wage payments, as defined in Internal Revenue Code section 3401(h) [26 U.S.C. 3401(h)], as amended. Any payments made by the member to receive qualifying credit inconsistent with this provision must be refunded. Employees shall make application to the employer for credit and provide a DD Form 214 to verify service. If a participating member dies after December 31, 2006, while performing qualified military service, as defined in section 414(u)(5) [26 U.S.C. 414(u)(5)] of the Internal Revenue Code, as amended, the deceased member’s beneficiaries are entitled to any death benefits, other than credit for years of service for purposes of benefits, that would have been provided under the plan if the participating member had resumed employment and then terminated employment on account of death. The period of such member’s qualified military service is treated as vesting service under the plan.

Source:

S.L. 2005, ch. 531, § 12; 2015, ch. 259, § 8, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 8 of chapter 259, S.L. 2015 became effective August 1, 2015.

Note.

Section 16 of chapter 259, S.L. 2015 provides, “ RETROACTIVE APPLICATION . Sections 2, 8, (which amended this section) and 14 are retroactive in application.

54-52-18. Apportionment of benefits. [Repealed]

Repealed by S.L. 1977, ch. 499, § 17.

54-52-19. Prior service. [Repealed]

Repealed by S.L. 1977, ch. 499, § 17.

54-52-19.1. Continuance of prior service benefits earned under former plan.

Any retired employee receiving prior service benefits under former section 54-52-19 is entitled to continue to receive those benefits. For the purposes of this section only, section 54-52-19 is deemed to remain in effect. The amount of benefits to which the employee is entitled is double that computed under original section 54-52-19.

Source:

S.L. 1977, ch. 499, § 15; 1987, ch. 655, § 1.

54-52-19.2. Grant of prior service credit after refund. [Repealed]

Repealed by S.L. 2005, ch. 531, § 19.

54-52-20. Prior service — Register — Benefits. [Repealed]

Repealed by S.L. 1977, ch. 499, § 17.

54-52-21. Plan not employment contract.

The adoption of or participation in a retirement plan may not be deemed to give an employee the right to be retained in the employ of a governmental unit or to interfere with the right of the governmental unit to discharge any employee at any time.

Source:

S.L. 1965, ch. 361, § 21; 1977, ch. 499, § 16.

54-52-22. Interpretation clause.

This chapter may not be construed so as to commit the state of North Dakota, or any county, city, or school district or the agency to any liability either moral or legal for any benefits to any beneficiary under the plan or plans resulting from enactment of this chapter, nor as exemption from any regulatory laws of the state of North Dakota.

Source:

S.L. 1965, ch. 361, § 22; 1967, ch. 395, § 5; 1969, ch. 456, § 12; 1969, ch. 457, § 11.

54-52-23. Savings clause — Plan modifications.

If the board determines that any section of this chapter does not comply with applicable federal statutes or rules, the board shall adopt appropriate terminology with respect to that section as will comply with those federal statutes or rules, subject to the approval of the employee benefits programs committee. Any plan modifications made by the board pursuant to this section are effective until the effective date of any measure enacted by the legislative assembly providing the necessary amendments to this chapter to ensure compliance with the federal statutes or rules.

Source:

S.L. 1965, ch. 361, § 23; 1991, ch. 630, § 8; 2013, ch. 432, § 5.

Effective Date.

The 2013 amendment of this section by section 5 of chapter 432, S.L. 2013 became effective July 1, 2013.

54-52-24. Planning and organizing funds. [Repealed]

Repealed by S.L. 1969, ch. 456, § 13; S.L. 1969, ch. 457, § 12.

54-52-25. Limitation of powers. [Repealed]

Repealed by S.L. 1989, ch. 667, § 13.

54-52-26. Confidentiality of records.

All records relating to the retirement benefits of a member or a beneficiary under this chapter, chapter 54-52.2, and chapter 54-52.6 are confidential and are not public records. Information and records may be disclosed, under rules adopted by the board, only to:

  1. A person to whom the member has given written consent to have the information disclosed.
  2. A person legally representing the member, upon proper proof of representation, and unless the member specifically withholds consent.
  3. A person authorized by a court order.
  4. A member’s participating employer, limited to information concerning the member’s years of service credit and years of age. The board may share other types of information as needed by the employer to validate the employer’s compliance with existing state or federal laws. Any information provided to the member’s participating employer under this subsection must remain confidential except as provided under subsection 6.
  5. The administrative staff of the retirement and investment office for purposes relating to membership and benefits determination.
  6. State or federal agencies for purposes of reporting on a service provider’s provision of services or when the employer must supply information to an agency to validate the employer’s compliance with existing state or federal laws.
  7. Member interest groups approved by the board on a third-party blind list basis, limited to information concerning the member’s participation, name, and address.
  8. The member’s spouse or former spouse, that individual’s legal representative, and the judge presiding over the member’s dissolution proceeding for purposes of aiding the parties in drafting a qualified domestic relations order under section 54-52-17.6. The information disclosed under this subsection must be limited to information necessary for drafting the order.
  9. Beneficiaries designated by a participating member or a former participating member to receive benefits after the member’s death, but only after the member’s death. Information relating to beneficiaries may be disclosed to other beneficiaries of the same member.
  10. The general public, but only after the board has been unable to locate the member for a period in excess of one year, and limited to the member’s name and the fact the board has been unable to locate the member.
  11. Any person if the board determines disclosure is necessary for treatment, operational, or payment purposes, including the completion of necessary documents.
  12. A government child support enforcement agency for purposes of establishing paternity or establishing, modifying, or enforcing a child support obligation of the member.
  13. A person if the information relates to an employer service purchase, but the information must be limited to the member’s name and employer, the retirement program in which the member participates, the amount of service credit purchased by the employer, and the total amount expended by the employer for that service credit purchase, and that information may only be obtained from the member’s employer.

Source:

S.L. 1987, ch. 224, § 3; 1993, ch. 532, § 7; 1997, ch. 464, § 5; 1999, ch. 482, § 3; 2001, ch. 494, § 7; 2003, ch. 498, § 14; 2005, ch. 415, § 22; 2007, ch. 482, § 9; 2021, ch. 439, § 4, eff August 1, 2021.

54-52-27. Purchase of sick leave credit.

A member is entitled to credit in the retirement system for each month of unused sick leave, as certified by the member’s employer, if the member or the member’s employer pays an amount equal to the member’s final average salary, times the number of months of sick leave converted, times the percent of employer and employee contributions to the retirement program of the member, plus the required contribution for the retiree health benefits program. Hours of sick leave equal to a fraction of a month are deemed to be a full month for purposes of conversion to service credit. A member may convert all of the member’s certified sick leave or a part of the member’s certified sick leave.

Source:

S.L. 1995, ch. 531, § 3; 1997, ch. 464, § 6; 2003, ch. 498, § 15; 2007, ch. 482, § 10; 2009, ch. 513, § 2; 2011, ch. 431, § 8.

54-52-28. Internal Revenue Code compliance.

The board shall administer the plan in compliance with the following sections of the Internal Revenue Code, as amended, as it applies for governmental plans.

  1. Section 415, including the defined benefit dollar limitation under section 415(b)(1)(A) of the Internal Revenue Code.
    1. The defined benefit dollar limitation under section 415(b)(1)(A) of the Internal Revenue Code, as approved by the legislative assembly, must be adjusted under section 415(d) of the Internal Revenue Code, effective January first of each year following a regular legislative session. The adjustment of the defined benefit dollar limitation under section 415(d) applies to participating members who have had a separation from employment, but that member’s benefit payments may not reflect the adjusted limit prior to January first of the calendar year in which the adjustment applies.
    2. If a participating member’s benefit is increased by plan amendment after the commencement of benefit payments, the member’s annual benefit may not exceed the defined benefit dollar limitation under section 415(b)(1)(A) of the Internal Revenue Code, as adjusted under section 415(d) for the calendar year in which the increased benefit is payable.
    3. If a participating member is, or ever has been, a participant in another defined benefit plan maintained by the employer, the sum of the participant’s annual benefits from all the plans may not exceed the defined benefit dollar limitation under section 415(b)(1)(A) of the Internal Revenue Code. If the participating member’s employer-provided benefits under all such defined benefit plans would exceed the defined benefit dollar limitation, the benefit must be reduced to comply with section 415 of the Internal Revenue Code. The reduction must be made pro rata between the plans, in proportion to the participating member’s service in each plan.
  2. The minimum distribution rules under section 401(a)(9) of the Internal Revenue Code, including the incidental death benefit requirements under section 401(a)(9)(G), and the regulations issued under that provision to the extent applicable to governmental plans. Accordingly, benefits must be distributed or begin to be distributed no later than a member’s required beginning date, and the required minimum distribution rules override any inconsistent provision of this chapter. For a member who attains age seventy and one-half before January 1, 2020, the member’s required beginning date is April first of the calendar year following the later of the calendar year in which the member attains age seventy and one-half or terminates employment. For a member who attains age seventy and one-half after December 31, 2019, the member’s required beginning date is April first of the calendar year following the later of the calendar year in which the member attains age seventy-two or terminates employment.
  3. The annual compensation limitation under section 401(a)(17) of the Internal Revenue Code, as adjusted for cost-of-living increases under section 401(a)(17)(B).
  4. The rollover rules under section 401(a)(31) of the Internal Revenue Code. Accordingly, a distributee may elect to have an eligible rollover distribution, as defined in section 402(c)(4) of the Internal Revenue Code, paid in a direct rollover to an eligible retirement plan, as defined in section 402(c)(8)(B) of the Internal Revenue Code, specified by the distributee. For purposes of this section, “distributee” includes a beneficiary, other than a spouse, of a deceased member, provided however, in the case of a beneficiary other than a spouse, the direct rollover may be made only to an individual retirement account or individual retirement annuity described in section 408 or 408A of the Internal Revenue Code which is established on behalf of the beneficiary and will be treated as an inherited individual retirement account or individual retirement annuity under section 402(c)(11) of the Internal Revenue Code.
  5. If the plan of retirement benefits set forth in this chapter is terminated or discontinued, the rights of all affected participating members to accrued retirement benefits under this chapter as of the date of termination or discontinuance is nonforfeitable, to the extent then funded.

Source:

S.L. 2003, ch. 498, § 12; 2005, ch. 531, § 13; 2007, ch. 482, § 11; 2009, ch. 514, § 11; 2011, ch. 431, § 9; 2013, ch. 432, § 6; 2015, ch. 259, § 9, eff August 1, 2015; 2017, ch. 372, § 4, eff August 1, 2017; 2021, ch. 439, § 5, eff August 1, 2021.

Effective Date.

The 2015 amendment of this section by section 9 of chapter 259, S.L. 2015 became effective August 1, 2015.

The 2013 amendment of this section by section 6 of chapter 432, S.L. 2013 became effective July 1, 2013.

54-52-29. Employer service purchases.

A participating employer may purchase additional service credit on behalf of a member under the following conditions:

  1. The member may not be given the option to choose between an employer service purchase and an equivalent amount paid in cash.
  2. The member must meet one of the following conditions at the time the purchase is made:
    1. The member’s age plus service credit must be equal to or greater than seventy-five; or
    2. The member’s age must be at least fifty-five and the member must have at least three years of service credit.
  3. The board must determine the purchase price on an actuarially equivalent basis, taking into account the contributions necessary for both the retirement program and the retiree health benefits fund.
  4. The purchase must be completed before the member’s retirement.
  5. The employer may purchase a maximum of five years of service credit on behalf of the member.
  6. The employer must pay the purchase price for the service credit purchased under this section in a lump sum.

Source:

S.L. 2003, ch. 498, § 13; 2007, ch. 482, § 12.

CHAPTER 54-52.1 Uniform Group Insurance Program

54-52.1-01. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Board” means the public employees retirement board.
  2. “Carrier” means:
    1. For the hospital benefits coverage, an insurance company authorized to do business in the state, or a nonprofit hospital service association, or a prepaid group practice hospital care plan authorized to do business in the state, or the state if a self-insurance health plan is used for providing hospital benefits coverage.
    2. For the medical benefits coverage, an insurance company authorized to do business in the state, or a nonprofit medical service association, or a prepaid group practice medical care plan authorized to do business in the state, or the state if a self-insurance health plan is used for providing medical benefits coverage.
    3. For the life insurance benefits coverage, an insurance company authorized to do business in the state.
  3. “Department, board, or agency” means the departments, boards, agencies, or associations of this state. The term includes the state’s charitable, penal, and higher educational institutions; the Bank of North Dakota; the state mill and elevator association; and counties, cities, district health units, and school districts.
  4. “Eligible employee” means every permanent employee who is employed by a governmental unit, as that term is defined in section 54-52-01. “Eligible employee” includes members of the legislative assembly, judges of the supreme court, paid members of state or political subdivision boards, commissions, or associations, full-time employees of political subdivisions, elective state officers as defined by section 54-06-01, and disabled permanent employees who are receiving compensation from the North Dakota workforce safety and insurance fund. As used in this subsection, “permanent employee” means one whose services are not limited in duration, who is filling an approved and regularly funded position in a governmental unit, and who is employed at least seventeen and one-half hours per week and at least five months each year or for those first employed after August 1, 2003, is employed at least twenty hours per week and at least twenty weeks each year of employment. For purposes of sections 54-52.1-04.1, 54-52.1-04.7, 54-52.1-04.8, and 54-52.1-11, “eligible employee” includes retired and terminated employees who remain eligible to participate in the uniform group insurance program pursuant to applicable state or federal law.
  5. “Health insurance benefits coverage” means hospital benefits coverage or medical benefits coverage, or both.
  6. “Health maintenance organization” means an organization certified to establish and operate a health maintenance organization in compliance with chapter 26.1-18.1.
  7. “Hospital benefits coverage” means a plan that either provides coverage for, or pays, or reimburses expenses for hospital services incurred in accordance with the uniform contract.
  8. “Life insurance benefits coverage” means a plan that provides both term life insurance and accidental death and dismemberment insurance in amounts determined by the board, with a minimum of one thousand dollars provided for the term life insurance portion of the coverage.
  9. “Medical benefits coverage” means a plan that either provides coverage for, or pays, or reimburses expenses for medical services in accordance with the uniform contract.
  10. “Member contribution” means the payment by the member into the retiree health benefits fund pursuant to sections 54-52-02.9 and 54-52-17.4.
  11. “Member’s account balance” means the member’s contributions plus interest at the rate set by the board.
  12. “Self-insurance health plan” means a plan of self-insurance providing health insurance benefits coverage under section 54-52.1-04.2.
  13. “Temporary employee” means a governmental unit employee who is not filling an approved and regularly funded position in an eligible governmental unit and whose services may or may not be limited in duration.

Source:

S.L. 1971, ch. 517, § 1; 1981, ch. 312, § 12; 1981, ch. 552, §§ 2, 3; 1983, ch. 319, § 33; 1983, ch. 580, § 1; 1987, ch. 657, § 1; 1987, ch. 658, § 1; 1989, ch. 69, § 62; 1989, ch. 664, § 3; 1989, ch. 665, § 3; 1989, ch. 673, § 1; 1989, ch. 674, § 1; 1991, ch. 630, § 9; 2001, ch. 496, § 2; 2003, ch. 48, § 35; 2003, ch. 499, § 1; 2003, ch. 561, § 3; 2019, ch. 462, § 3, eff March 7, 2019.

54-52.1-02. Uniform group insurance program created — Formation into subgroups.

In order to promote the economy and efficiency of employment in the state’s service, reduce personnel turnover, and offer an incentive to high-grade individuals to enter and remain in the service of state employment, there is created a uniform group insurance program. The uniform group must be composed of eligible and retired employees and be formed to provide hospital benefits coverage, medical benefits coverage, and life insurance benefits coverage in the manner set forth in this chapter. The uniform group may be divided into the following subgroups at the discretion of the board:

  1. Medical and hospital benefits coverage group consisting of active eligible employees and retired employees not eligible for Medicare, except for employees who first retire after July 1, 2015, and are not eligible for Medicare on their retirement. In determining premiums for coverage under this subsection for retired employees not eligible for Medicare, the rate for a non-Medicare retiree single plan is one hundred fifty percent of the active member single plan rate, the rate for a non-Medicare retiree family plan of two people is twice the non-Medicare retiree single plan rate, and the rate for a non-Medicare retiree family plan of three or more persons is two and one-half times the non-Medicare retiree single plan rate.
  2. In addition to the coverage provided in subsection 1, another coverage option may be provided for retired employees not eligible for Medicare, except for employees who first retire after July 1, 2015, and are not eligible for Medicare on their retirement, provided the option does not increase the implicit subsidy as determined by the governmental accounting standards board’s other postemployment benefit reporting procedure. In offering this additional option, the board may have an open enrollment but thereafter enrollment for this option must be as specified in section 54-52.1-03.
  3. Retired Medicare-eligible employee group medical and hospital benefits coverage.
  4. Active eligible employee life insurance benefits coverage.
  5. Retired employee life insurance benefits coverage.
  6. Terminated employee continuation group medical and hospital benefits coverage.
  7. Terminated employee conversion group medical and hospital benefits coverage.
  8. Dental benefits coverage.
  9. Vision benefits coverage.
  10. Long-term care benefits coverage.
  11. Employee assistance benefits coverage.
  12. Prescription drug coverage.

Source:

S.L. 1971, ch. 517, § 2; 1987, ch. 658, § 2; 1989, ch. 675, § 1; 1995, ch. 533, § 2; 1999, ch. 481, § 1; 2007, ch. 486, § 1; 2011, ch. 433, § 1; 2013, ch. 433, § 1.

Note.

This section is set out above to reflect a correction since the 2015 cumulative supplement. The contingent effect on this section was met and is now in effect as presented.

54-52.1-03. Employee participation in plan — Employee to furnish information — Benefits to continue upon retirement or termination.

  1. Any eligible employee may be enrolled in the uniform group insurance program created by this chapter by requesting enrollment with the employing department. If an eligible employee does not enroll in the uniform group insurance program at the time of beginning employment, in order to enroll at a later time the eligible employee must meet minimum requirements established by the board. An employing department may not require an active eligible employee to request coverage under the uniform group insurance program as a prerequisite to receive the minimum employer-paid life insurance benefits coverage or employee assistance program benefits coverage.
  2. A retiree who has accepted a periodic distribution from the defined contribution retirement plan pursuant to section 54-52.6-13 who the board determines is eligible for participation in the uniform group insurance program or has accepted a retirement allowance from the public employees retirement system, the highway patrolmen’s retirement system, the teachers’ insurance and annuity association of America - college retirement equities fund for service credit earned while employed by North Dakota institutions of higher education, the retirement system established by job service North Dakota under section 52-11-01, the judges’ retirement system established under chapter 27-17, or the teachers’ fund for retirement may elect to participate in the uniform group under this chapter without meeting minimum requirements at age sixty-five, when the member’s spouse reaches age sixty-five, upon the receipt of a benefit, or when the spouse terminates employment. If a retiree or surviving spouse does not elect to participate at the times specified in this subsection, the retiree or surviving spouse must meet the minimum requirements established by the board. Subject to sections 54-52.1-03.2 and 54-52.1-03.3, each retiree or surviving spouse shall pay directly to the board the premiums in effect for the coverage then being provided. A retiree or surviving spouse who has met the initial eligibility requirements of this subsection to begin participation in the uniform group insurance program remains eligible as long as the retiree maintains the retiree’s participation in the program by paying the required premium pursuant to rules adopted by the board.
  3. Upon the termination of employment when the employee is not eligible to participate under subsection 2 or 4 or applicable federal law, that employee cannot continue as a member of the uniform group.
  4. A member or former member of the legislative assembly or that individual’s surviving spouse may elect to continue membership in the uniform group within the applicable time limitations after either termination of eligible employment as a member of the legislative assembly or termination of other eligible employment or, for a surviving spouse, upon the death of the member or former member of the legislative assembly. The member or former member of the legislative assembly or that individual’s surviving spouse shall pay the premiums in effect for the coverage provided directly to the board.
  5. Each eligible employee requesting enrollment shall furnish the appropriate individual in the employing department, board, or agency with such information and in such form as prescribed by the board to enable the enrollment of the employee, or employee and dependents, in the uniform group insurance program created by this chapter.
  6. If the participating employee is a faculty member in a state charitable, penal, or educational institution who receives a salary or wages on less than a twelve-month basis and has signed a contract to teach for the next ensuing school year, the agency shall make arrangements to include that employee in the insurance program on a twelve-month basis and make the contribution authorized by this section for each month of the twelve-month period.

Source:

S.L. 1971, ch. 517, § 3; 1975, ch. 491, § 1; 1983, ch. 194, § 3; 1985, ch. 205, § 3; 1985, ch. 588, § 1; 1987, ch. 659, § 1; 1989, ch. 445, § 4; 1989, ch. 675, § 2; 1993, ch. 535, § 1; 2001, ch. 496, § 3; 2003, ch. 499, § 2; 2009, ch. 514, § 12; 2011, ch. 431, § 10; 2015, ch. 259, § 10, eff August 1, 2015; 2017, ch. 372, § 5, eff August 1, 2017.

Effective Date.

The 2015 amendment of this section by section 10 of chapter 259, S.L. 2015 became effective August 1, 2015.

54-52.1-03.1. Certain political subdivisions authorized to join uniform group insurance program — Employer contribution.

If eligible under federal law, a political subdivision may extend the benefits of the uniform group insurance program under this chapter to its permanent employees, subject to minimum requirements established by the board and a minimum period of participation of sixty months. If the political subdivision withdraws from participation in the uniform group insurance program, before completing sixty months of participation, unless federal or state laws or rules are modified or interpreted in a way that makes participation by the political subdivision in the uniform group insurance program no longer allowable or appropriate, the political subdivision shall make payment to the board in an amount equal to any expenses incurred in the uniform group insurance program that exceed income received on behalf of the political subdivision’s employees as determined under rules adopted by the board. The Garrison Diversion Conservancy District, and district health units required to participate in the public employees retirement system under section 54-52-02, shall participate in the uniform group insurance program under the same terms and conditions as state agencies. A retiree who has accepted a retirement allowance from a participating political subdivision’s retirement plan may elect to participate in the uniform group under this chapter without meeting minimum requirements at age sixty-five, when the employee’s spouse reaches age sixty-five, upon the receipt of a benefit, when the political subdivision joins the uniform group insurance plan if the retiree was a member of the former plan, or when the spouse terminates employment. If a retiree or surviving spouse does not elect to participate at the times specified in this section, the retiree or surviving spouse must meet the minimum requirements established by the board. Each retiree or surviving spouse shall pay directly to the board the premiums in effect for the coverage then being provided. The board may require documentation that the retiree has accepted a retirement allowance from an eligible retirement plan other than the public employees retirement system.

Source:

S.L. 1981, ch. 552, § 1; 1989, ch. 665, § 4; 1989, ch. 673, § 2; 1993, ch. 535, § 2; 1995, ch. 528, § 6; 2003, ch. 499, § 3; 2003, ch. 500, § 1; 2007, ch. 485, § 2; 2013, ch. 434, § 1; 2015, ch. 259, § 11, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 11 of chapter 259, S.L. 2015 became effective August 1, 2015.

The 2013 amendment of this section by section 1 of chapter 434, S.L. 2013 became effective August 1, 2013.

54-52.1-03.2. Retiree health benefits fund — Appropriation.

    1. The board shall establish a retiree health benefits fund account with the Bank of North Dakota for the purpose of prefunding and providing hospital benefits coverage, medical benefits coverage, and prescription drug coverage under any health insurance program and dental, vision, and long-term care benefits coverage under the uniform group insurance program for retired eligible employees or surviving spouses of retired eligible employees and their dependents as provided in this chapter.
    2. The state shall contribute monthly to the retiree health benefits fund an amount equal to one and fourteen hundredths percent of the monthly salaries and wages of all participating members of the highway patrolmen’s retirement system under chapter 39-03.1, and one and fourteen hundredths percent of the monthly salaries of all supreme or district court judges who are participating members of the public employees retirement system under chapter 54-52.
    3. Each governmental unit that contributes to the public employees retirement system fund under section 54-52-06 or the retirement plan under chapter 54-52.6 shall contribute monthly to the retiree health benefits fund an amount equal to one and fourteen-hundredths percent of the monthly salaries or wages of all participating members of the public employees retirement system under chapter 54-52 or chapter 54-52.6, except for:
      1. Members first enrolled after December 31, 2019, for which a governmental unit contributes to the public employees retirement system fund under section 54-52-06 or the retirement plan under chapter 54-52.6; and
      2. Nonteaching employees of the superintendent of public instruction who elect to participate in the public employees retirement system pursuant to section 54-52-02.13 and employees of the state board for career and technical education who elect to participate in the public employees retirement system pursuant to section 54-52-02.14.
    4. For nonteaching employees of the superintendent of public instruction who elect to participate in the public employees retirement system pursuant to section 54-52-02.13, the superintendent of public instruction shall contribute monthly to the retiree health benefits fund an amount equal to three and twenty-four hundredths percent of the monthly salaries or wages of those nonteaching employee members, beginning on the first of the month following the transfer under section 54-52-02.13 and continuing thereafter for a period of eight years, after which time the superintendent of public instruction shall contribute one and fourteen- hundredths percent of the monthly salary or wages of those nonteaching employee members.
    5. For employees of the state board for career and technical education who elect to participate in the public employees retirement system pursuant to section 54-52-02.14, the state board for career and technical education shall contribute monthly to the retiree health benefits fund an amount equal to two and ninety-nine hundredths percent of the monthly salary or wages of those employee members, beginning on the first of the month following the transfer under section 54-52-02.14 and continuing thereafter for a period of eight years, after which time the state board for career and technical education shall contribute one and fourteen-hundredths percent of the monthly salary or wages of those employee members.
    6. The employer of a national guard security officer or firefighter shall contribute monthly to the retiree health benefits fund an amount equal to one and fourteen-hundredths percent of the monthly salaries or wages of all national guard security officers or firefighters participating in the public employees retirement system under chapter 54-52.
    7. Job service North Dakota shall reimburse monthly the retiree health benefits fund for credit received under section 54-52.1-03.3 by members of the retirement program established by job service North Dakota under section 52-11-01.
    8. The board, as trustee of the fund and in exclusive control of its administration, shall:
      1. Provide for the investment and disbursement of moneys of the retiree health benefits fund and administrative expenditures in the same manner as moneys of the public employees retirement system are invested, disbursed, or expended.
      2. Adopt rules necessary for the proper administration of the retiree health benefits fund, including enrollment procedures.
  1. All moneys deposited in the fund established under subsection 1, not otherwise appropriated, are hereby appropriated to the board for the purpose of making investments for the fund and to make contributions toward hospital and medical benefits coverage and prescription drug coverage under any health insurance program and for any dental, vision, and long-term care benefits coverage under any insurance program for eligible retired employees or surviving spouses of eligible retired employees and their dependents as elected.
  2. If a member terminates employment because of death, permanent and total disability, or any voluntary or involuntary reason before retirement, the member or the member’s designated beneficiary is entitled to the member’s account balance at termination. If a member’s account balance is withdrawn, the member relinquishes all rights to benefits under the retiree health benefits fund.

Source:

S.L. 1989, ch. 445, § 5; 1991, ch. 626, § 6; 1991, ch. 627, § 4; 1991, ch. 630, § 10; 1991, ch. 634, § 1; 1993, ch. 536, § 1; 1999, ch. 482, § 4; 2003, ch. 34, § 18; 2007, ch. 483, § 4; 2009, ch. 513, § 3; 2013, ch. 433, § 2; 2019, ch. 459, § 3, eff July 1, 2019; 2021, ch. 439, § 6, eff August 1, 2021.

54-52.1-03.3. Eligibility for retiree health benefits — Fixed contribution and reduction factors.

  1. The following individuals are entitled to receive credit for hospital benefits coverage, medical benefits coverage, and prescription drug coverage under any health insurance program and for any dental, vision, and long-term care benefits coverage under any insurance program:
    1. A member or surviving spouse of the highway patrolmen’s retirement system is eligible for the credit beginning on the date retirement benefits are effective.
    2. If the member first enrolled before January 1, 2020, a member or surviving spouse of the public employees retirement system is eligible for the credit beginning on the date retirement benefits are effective.
    3. A member or surviving spouse of the retirement program established by job service North Dakota under section 52-11-01 is eligible for the credit beginning on the date retirement benefits are effective.
    4. A retired judge or surviving spouse of the retirement program established under chapter 27-17 is eligible for the credit beginning on the date retirement benefits are effective.
    5. If the former participating member first enrolled before January 1, 2020, a former participating member of the defined contribution retirement plan receiving retirement benefits, or the surviving spouse of a former participating member of that retirement plan who was eligible to receive or was receiving benefits, under section 54-52.6-13, is eligible as determined by the board pursuant to the board’s rules.
  2. The board shall calculate the allowable monthly credit toward hospital benefits coverage, medical benefits coverage, and prescription drug coverage under any health insurance program and toward dental, vision, and long-term care benefits coverage under any insurance program under subsection 1 in an amount equal to five dollars multiplied by the member’s or deceased member’s number of years of credited service under the highway patrolmen’s retirement system, the public employees retirement system, the retirement program established by job service North Dakota under section 52-11-01, or the judges’ retirement program established under chapter 27-17. For a member of the public employees retirement system receiving an early retirement benefit or the surviving spouse of that member, or a former participating member of the defined contribution retirement plan who is receiving a periodic distribution and would not meet the normal retirement provisions of the public employees retirement system, the allowable monthly credit must be reduced by three percent if the member terminates employment within one year before attaining the age of sixty-five and an additional reduction factor of six percent applies for each year the member terminates employment before attaining the age of sixty-four. For a member of the highway patrolmen’s retirement system receiving an early retirement benefit or the surviving spouse of that member, the allowable monthly credit must be reduced by three percent if the member terminates employment within one year before attaining the age of fifty-five and an additional reduction factor of six percent applies for each year the member terminates employment before attaining the age of fifty-four. For a member of the retirement program established by job service North Dakota under section 52-11-01 receiving an early retirement benefit or a discontinued service annuity under the plan provisions of that retirement program or the surviving spouse of that member, the allowable monthly credit must be reduced by three percent if the member terminates employment within one year before attaining the age of sixty-five and an additional reduction factor of six percent applies for each year the member terminates employment before attaining the age of sixty-four.
  3. The board shall apply the credit allowable under subsection 2 as elected by the eligible participant to the payment of monthly premiums required of each individual eligible under subsection 1 for hospital benefits coverage , medical benefits coverage, and prescription drug coverage under any health insurance program and for dental, vision, and long-term care benefits coverage under any insurance program. The board shall allow spouses who each have credit under subsection 2 to combine the spouses’ credits and shall apply the combined credit to the required monthly premiums as elected pursuant to this subsection. However, if the allowable credit under any circumstance exceeds the monthly premium in effect for selected coverage, that amount of the credit which exceeds the premium is forfeited and may not be used for any other purpose.
  4. As an alternative to the calculation of the allowable monthly credit under subsection 2, the board may provide actuarially reduced benefit options for the member and the member’s surviving spouse, including a one hundred percent joint and survivor option or a fifty percent joint and survivor option.

Source:

S.L. 1989, ch. 445, § 5; 1991, ch. 627, § 5; 1991, ch. 633, § 2; 1991, ch. 634, § 2; 1993, ch. 536, § 3; 1997, ch. 466, § 1; 2001, ch. 496, § 4; 2003, ch. 498, § 16; 2007, ch. 486, § 2; 2009, ch. 513, § 4; 2013, ch. 433, § 3; 2017, ch. 372, § 6, eff August 1, 2017; 2019, ch. 461, § 4, eff July 1, 2019; 2019, ch. 463, § 2, eff August 1, 2019; 2021, ch. 439, § 7, eff August 1, 2021.

Note.

Section 54-52.1-03.3 was amended 2 times by the 2019 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 4 of Chapter 459, Session Laws 2019, Senate Bill 2046; and Section 2 of Chapter 463, Session Laws 2019, Senate Bill 2045.

54-52.1-03.4. Temporary employees and employees on unpaid leave of absence. [Contingent expiration date – See note]

A temporary employee employed before August 1, 2007, may elect to participate in the uniform group insurance program by completing the necessary enrollment forms and qualifying under the medical underwriting requirements of the program if such election is made before January 1, 2015, and if the temporary employee is participating in the uniform group insurance program on January 1, 2015. In order for a temporary employee employed after July 31, 2007, to qualify to participate in the uniform group insurance program, the employee must be employed at least twenty hours per week; must be employed at least twenty weeks each year of employment; must make the election to participate before January 1, 2015; and must be participating in the uniform group insurance program as of January 1, 2015. To be eligible to participate in the uniform group insurance program, a temporary employee first employed after December 31, 2014, or any temporary employee not participating in the uniform group insurance program as of January 1, 2015, must meet the definition of a full-time employee under section 4980H(c)(4) of the Internal Revenue Code [26 U.S.C. 4980H(c)(4)]. Monthly, the temporary employee or the temporary employee’s employer shall pay to the board the premiums in effect for the coverage being provided. In the case of a temporary employee who is an applicable taxpayer as defined in section 36B(c)(1)(A) of the Internal Revenue Code [26 U.S.C. 36B(c)(1)(A)], the temporary employee’s required contribution for medical and hospital benefits self-only coverage may not exceed the maximum employee required contribution specified under section 36B(c)(2)(C) of the Internal Revenue Code [26 U.S.C. 36B(c)(2)(C)], and the employer shall pay any difference between the maximum employee required contribution for medical and hospital benefits self-only coverage and the cost of the premiums in effect for this coverage. An employer may pay health or life insurance premiums for a permanent employee on an unpaid leave of absence. A political subdivision, department, board, or agency may make a contribution for coverage under this section.

Source:

S.L. 1989, ch. 664, § 4; 1993, ch. 537, § 1; 2007, ch. 486, § 3; 2009, ch. 514, § 13; 2013, ch. 434, § 2; 2015, ch. 259, § 12, eff August 1, 2015.

Note.

Section 11 of chapter 372, S.L. 2017 provides, “ CONTINGENT EFFECTIVE DATE - EXPIRATION DATE. Section 7 of this Act becomes effective on the date identified by the executive director of the public employees retirement system in a certification to the legislative council as the effective date of a repeal of sections 4980H(a) and 4980H(b) of the Internal Revenue Code [ 26 U.S.C. 4980H(a) and 490H(b)] or the effective date of an amendment of sections 4980H(a) and 4980H(b) of the Internal Revenue Code [26 U.S.C. 4980H(a) and 490H(b)] resulting in the assessable payments under sections 4980H(a) and 4980H(b) [26 U.S.C. 4980H(a) and 490H(b)] becoming zero dollars. If this certification does not occur before August 1, 2019, Section 7 of this Act expires and is ineffective.”

Effective Date.

The 2015 amendment of this section by section 12 of chapter 259, S.L. 2015 became effective August 1, 2015.

The 2013 amendment of this section by section 2 of chapter 434, S.L. 2013 became effective August 1, 2013.

54-52.1-03.4. Temporary employees and employees on unpaid leave of absence. [Contingent effective date – See note]

  1. A temporary employee employed before August 1, 2007, may elect to participate in the uniform group insurance program by completing the necessary enrollment forms and qualifying under the medical underwriting requirements of the program if such election is made before January 1, 2015, and if the temporary employee is participating in the uniform group insurance program on January 1, 2015.
  2. In order for a temporary employee employed after July 31, 2007, to qualify to participate in the uniform group insurance program, the employee must be employed at least twenty hours per week; must be employed at least twenty weeks each year of employment; must make the election to participate before January 1, 2015; and must be participating in the uniform group insurance program as of January 1, 2015.
  3. A temporary employee first employed after December 31, 2014, or any temporary employee employed before the effective date of this section of this Act but not participating in the uniform group insurance program on the effective date of this section of this Act, does not qualify to participate in the uniform group insurance program, unless the employee is employed at least thirty hours per week for at least twenty weeks each year of employment. Notwithstanding contrary provisions of this subsection, a temporary employee participating in the uniform group insurance program on the effective date of this section of this Act remains eligible through the end of the calendar year during which the effective date of this section of this Act occurs and after that calendar year the temporary employee is subject to the eligibility provisions of subsection 1, 2, or 3, as applicable.
  4. Monthly, the temporary employee or the temporary employee’s employer shall pay to the board the premiums in effect for the coverage being provided. An employer may pay health or life insurance premiums for a permanent employee on an unpaid leave of absence. A political subdivision, department, board, or agency may make a contribution for coverage under this section.

Source:

S.L. 1989, ch. 664, § 4; 1993, ch. 537, § 1; 2007, ch. 486, § 3; 2009, ch. 514, § 13; 2013, ch. 434, § 2; 2015, ch. 259, § 12, eff August 1, 2015; 2017, ch. 372, § 7.

54-52.1-03.5 Emergency responders who die in the line of duty — Health benefits.

  1. As used in this section:
    1. “Correctional facility staff” has the same meaning as provided under section 12-44.1-01.
    2. “Dies in the line of duty” means a death occurring as a direct and proximate result of a personal injury sustained by an emergency responder while engaged in a line of duty activity or which arose out of and as a result of the individual’s performance of a line of duty activity.
    3. “Emergency responder” means a peace officer, member of a correctional facility staff, emergency medical services personnel, or firefighter, who is employed by the state, a political subdivision of the state, or an institution under the control of the state board of higher education. The term does not include a national guard security officer or national guard firefighter.
    4. “Line of duty activity” means an employment-related action taken by an emergency responder which is required or authorized by law, rule, regulation, or condition of employment and for which compensation is provided by the employing entity or would have been eligible to have been provided by the employing entity if the emergency responder had been on duty at the time the action in question was taken.
    5. “Peace officer” has the same meaning as provided under section 12-63-01. The term includes a game warden.
  2. At no charge, the board shall offer health insurance benefits coverage, including drug benefits coverage, to the surviving spouse and dependent child of an emergency responder who dies in the line of duty. The provision of health insurance benefits coverage under this section includes coverage of a child of the emergency responder who is born within ten months of the date of the death.
  3. The provision of health insurance benefits coverage under this section must continue for the:
    1. Surviving spouse until the surviving spouse reaches age sixty-five; and
    2. Dependent child until the dependent child reaches age twenty-six.
  4. An employer shall notify the board of the qualifying event of an emergency responder dying in the line of duty.
  5. This section does not affect eligibility for benefits under title 65.

Source:

S.L. 2021, ch. 440, § 1, eff August 1, 2021.

Note.

Section 2 of chapter 440, S.L. 2021, provides, “ RETROACTIVE APPLICATION. This Act applies retroactively to the qualifying event of an emergency responder dying in the line of duty on or after January 1, 2010; however, the benefits under this Act do not begin before August 1, 2021.”

54-52.1-04. Board to contract for insurance.

  1. The board shall receive bids for the providing of hospital benefits coverage, medical benefits coverage, life insurance benefits coverage for a specified term, and employee assistance program services; may receive bids separately for all or part of the prescription drug benefits coverage component of medical benefits coverage; and shall accept one or more bids of and contract with the carriers the board determines best serve the interests of the state and the state’s eligible employees. Solicitations must be made not later than ninety days before the expiration of an existing uniform group insurance contract. Bids must be solicited by advertisement in a manner selected by the board which will provide reasonable notice to prospective bidders. In preparing bid proposals and evaluating bids, the board may utilize the services of consultants on a contract basis in order that the bids received may be uniformly compared and properly evaluated. In determining which bid, if any, will best serve the interests of eligible employees and the state, the board shall give adequate consideration to the following factors:
    1. The economy to be effected.
    2. The ease of administration.
    3. The adequacy of the coverages.
    4. The financial position of the carrier, with special emphasis on the solvency of the carrier.
    5. The reputation of the carrier and any other information available tending to show past experience with the carrier in matters of claim settlement, underwriting, and services.
  2. The board may reject any or all bids received under this section. If the board rejects all bids received, the board shall again solicit bids as provided in this section.
  3. Under sections 54-52.1-04.1 and 54-52.1-04.2 the board may contract for health benefits coverage through a health maintenance organization or establish a self-insurance health plan.

Source:

S.L. 1971, ch. 517, § 4; 1983, ch. 580, § 2; 1997, ch. 467, § 1; 2007, ch. 486, § 4; 2011, ch. 433, § 2; 2019, ch. 462, § 4, eff March 7, 2019.

54-52.1-04.1. Health maintenance organization contract — Membership option.

Notwithstanding the provisions of section 54-52.1-04, the board may contract with one or more health maintenance organizations to provide eligible employees the option of membership in a health maintenance organization. If it makes such a contract, the board may not require that the health maintenance organization be federally qualified if the health maintenance organization has a certificate of authority issued by the North Dakota insurance commissioner. The contract or contracts must be included in the uniform group insurance program.

Source:

S.L. 1981, ch. 312, § 11; 1989, ch. 676, § 1.

54-52.1-04.2. Self-insurance health plan.

  1. This section applies to a self-insurance health plan for:
    1. Health insurance and prescription drug benefits coverage;
    2. Health insurance benefits coverage, excluding all or part of prescription drug benefits coverage; or
    3. All or part of prescription drug benefits coverage.
  2. Except for prescription drug coverage under subdivision c of subsection 1, a self-insurance health plan established by the board under this section must be provided under an administrative services only (ASO) contract or a third-party administrator (TPA) contract under the uniform group insurance program. The board may not establish a self-insurance health plan unless the board determines the self-insurance health plan best serves the interests of the state and the state’s eligible employees. If the board determines it is in the best interest of the plan, individual stop-loss coverage insured by a carrier authorized to do business in this state may be made part of a self-insurance health plan.

Source:

S.L. 1983, ch. 580, § 4; 1985, ch. 69, § 5; 1987, ch. 660, § 1; 1989, ch. 677, § 1; 2011, ch. 433, § 3; 2019, ch. 462, § 5, eff March 7, 2019; 2019, ch. 463, § 3, eff August 1, 2019; 2021, ch. 441, § 1, eff March 9, 2021.

Note.

Section 2 of chapter 441, S.L. 2021, provides, “ APPLICATION. This Act applies to self-insurance health plans effective on or after the effective date of this Act.”

Section 54-52.1-04.2 was amended 2 times by the 2019 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 3 of Chapter 463, Session Laws 2019, Senate Bill 2045; and Section 5 of Chapter 462, Session Laws 2019, House Bill 1028.

54-52.1-04.3. Self-insurance health plan — Reserve fund — Continuing appropriation — Benefits — Insurance commissioner.

  1. Pursuant to chapter 26.1-36.6, the board shall establish and maintain under a self-insurance health plan a reserve fund to provide for adverse fluctuations in future charges, claims, costs, or expenses of the uniform group insurance program. Upon the initial changeover from a contract for insurance pursuant to section 54-52.1-04 or a health maintenance organization pursuant to section 54-52.1-04.1 to a self-insurance health plan pursuant to section 54-52.1-04.2, the board must have a plan in place which is reasonably calculated to meet within sixty months of the changeover the funding requirements of chapter 26.1-36.6. All moneys in the reserve fund, not otherwise appropriated, are appropriated to the board for the payment of claims and other costs of the uniform group insurance program during periods of adverse claims or cost fluctuations.
  2. A self-insurance health plan must comply with section 26.1-36.6-03 and must provide the same benefits required of a fully insured plan.
  3. The insurance commissioner shall ensure compliance with and enforce the provisions of this section pursuant to chapter 26.1-36.6.

Source:

S.L. 1989, ch. 677, § 2; S.L. 1991, ch. 600, § 14; 2011, ch. 433, § 4; 2019, ch. 462, § 6, eff March 7, 2019.

54-52.1-04.4. Insurance to cover mammogram examinations. [Repealed]

Source:

S.L. 1989, ch. 367, § 2; 1999, ch. 267, § 2; Repealed by 2019, ch. 462, § 10, eff March 7, 2019.

54-52.1-04.5. Insurance to cover involuntary complications of pregnancy. [Repealed]

Source:

S.L. 1989, ch. 368, § 2; Repealed by 2019, ch. 462, § 10, eff March 7, 2019.

54-52.1-04.6. Coverage for treatment of certain disorders. [Repealed]

Source:

S.L. 1989, ch. 369, § 2; 1995, ch. 290, § 2; Repealed by 2019, ch. 462, § 10, eff March 7, 2019.

54-52.1-04.7. Uniform group insurance program — Vision and dental plans.

The board may establish a dental plan, a vision plan, or both, for eligible employees. The board shall receive bids for the plan or plans pursuant to section 54-52.1-04. The board may reject any or all bids and provide a plan of self-insurance. Premiums for this coverage must be paid by the eligible employee. Any refund, rebate, dividend, experience rating allowance, discount, or other reduction of premium must be credited as provided by section 54-52.1-06.

Source:

S.L. 1995, ch. 533, § 3.

54-52.1-04.8. Uniform group insurance program — Long-term care plan.

The board may establish a long-term care plan for eligible employees. The board shall receive bids for the plan under section 54-52.1-04. The board may reject any or all bids and provide a plan of self-insurance. Premiums for this plan must be paid by the eligible employee. Any refund, rebate, dividend, experience rating allowance, discount, or other reduction of premium must be credited as provided by section 54-52.1-06.

Source:

S.L. 1995, ch. 533, § 4.

54-52.1-04.9. Uniform group insurance program — Employee assistance program.

The board shall establish an employee assistance program available to persons in the medical and hospital benefits coverage group. The premium for this coverage must be paid as provided by section 54-52.1-06. The board shall receive bids for this program under section 54-52.1-04. Each department, board, or agency shall obtain employee assistance program services through the board for eligible employees and may not enter into any agreement to obtain employee assistance program services with a third-party provider except that a department, board, or agency may use its own employee assistance program services to the extent such services are provided by personnel of that department, board, or agency. As used in this section, “employee assistance program” means an employer-sponsored service for employees under which a professional employee assistance program staff assists employees and their families in finding help for emotional, drug, alcohol, family, health, and other personal or job-related problems that may be affecting their work performance.

Source:

S.L. 1995, ch. 533, § 5; 1997, ch. 467, § 2.

54-52.1-04.10. Insurance to cover dental anesthesia and hospitalization. [Repealed]

Source:

S.L. 1999, ch. 269, § 2; Repealed by 2019, ch. 462, § 10, eff March 7, 2019.

54-52.1-04.11. Insurance to cover foods and food products for inherited metabolic diseases. [Repealed]

Source:

S.L. 1999, ch. 268, § 2; Repealed by 2019, ch. 462, § 10, eff March 7, 2019.

54-52.1-04.12. Insurance to cover medical services related to intoxication. [Repealed]

Source:

S.L. 2009, ch. 256, § 4; Repealed by 2019, ch. 462, § 10, eff March 7, 2019.

54-52.1-04.13. Coverage of telehealth services. [Repealed]

Source:

S.L. 2015, ch. 425, § 1, eff August 1, 2015; 2017, ch. 219, § 2, eff August 1, 2017; Repealed by 2019, ch. 462, § 10, eff March 7, 2019.

54-52.1-04.14. Coverage of cancer treatment medications. [Repealed]

Source:

S.L. 2015, ch. 218, § 2, eff August 1, 2015; Repealed by 2019, ch. 462, § 10, eff March 7, 2019.

54-52.1-04.15. Health insurance benefits coverage — Prescription drug coverage — Transparency — Audits — Confidentiality.

  1. If the prescription drug coverage component of a health insurance benefits coverage contract received in response to a request for bids under section 54-52.1-04 utilizes the services of a pharmacy benefits manager, either contracted directly with a pharmacy benefits manager or indirectly through the health insurer, in addition to the factors set forth under section 54-52.1-04 the board shall consider and give preference to an insurer’s contract that:
    1. Provides the board or the board’s auditor with a copy of the insurer’s current contract with the pharmacy benefits management company which controls the prescriptions drug coverage offered as part of the health insurance benefits coverage, and if the contract is revised or a new contract is entered, requires the insurer to provide the board with the revision or new contract within thirty days of the change.
    2. Provides the board with monthly claims data and information on all programs being implemented or modified, including prior authorization, step therapy, mandatory use of generic drugs, or quantity limits.
    3. Describes the extent to which the board may customize the benefit plan design, including copayments, coinsurance, deductibles, and out-of-pocket limits; the drugs that are covered; the formulary; and the member programs implemented.
    4. Describes the audit rights of the board.
  2. The board may conduct annual audits to the extent permitted under the contract terms agreed to under subsection 1. The audits must include:
    1. A review of a complete set of electronic prescription coverage claims data reflecting all submitted claims, including information fields identified by the board.
    2. A review of a list of all programs that have been implemented or modified during the audit period under subsection 1, and in connection with each program the auditor shall report on the cost, the cost savings or avoidance, member disruption, the process for and number of overrides or approvals and disapprovals, and clinical outcomes.
    3. Recommendations for proposed changes to the prescription drug benefit programs to decrease costs and improve plan beneficiaries’ health care treatment.
  3. Information provided to the board under the contract provisions required under this section are confidential; however, the board may disclose the information to retained experts and the information retains its confidential status in the possession of these experts.
  4. The board may retain an auditor of the board’s choice which is not a competitor of the pharmacy benefits manager; a pharmaceutical manufacturer representative; or any retail, mail, or specialty drug pharmacy representative or vendor.

Source:

S.L. 2017, ch. 378, § 1, eff August 1, 2017.

54-52.1-04.16. Prescription drug coverage — Performance audits.

  1. Except for Medicare part D, prescription drug coverage, the board may not enter or renew a contract for prescription drug coverage unless the contract authorizes the board during the term of the contract to conduct a performance audit of the prescription drug coverage and any related pharmacy benefits management services. The contract must provide:
    1. The board must have full access to data regarding:
      1. The total dollars paid to the pharmacy benefits manager by the carrier and the board;
      2. The total amount of dollars paid to the pharmacy benefits manager by the carrier which were not subsequently paid to a licensed pharmacy in the state; and
      3. Payments made to all pharmacy providers.
    2. The board must have full access to data regarding the average reimbursement, by drug ingredient cost, dispensing fee, and any other fee paid by a pharmacy benefits manager to licensed pharmacies with which the pharmacy benefits manager shares common ownership or control or is affiliated.
    3. The board must have full access to data regarding the average reimbursement, by drug ingredient cost, dispensing fee, and any other fee paid by a pharmacy benefits manager to pharmacies licensed in the state.
    4. The board must have full access to data regarding any direct and indirect fees, charges, or recoupment, or any kind of assessments imposed by the pharmacy benefits manager on pharmacies licensed with which the pharmacy benefits manager shares common ownership or control or is affiliated.
    5. The board must have full access to data regarding any direct and indirect fees, charges, or recoupment, or any kind of assessments imposed by the pharmacy benefits manager, on pharmacies licensed in the state.
    6. The contract must provide that all drug rebates, financial incentives, fees, and discounts must be disclosed to the board.
  2. The board shall use an independent auditor who has no conflict of interest with the carrier, pharmacy benefits manager, or board . The board's auditor, the insurance department, and the employee benefits programs committee may access any information the board may access under this section. All information accessed by the board, board's auditor, insurance department, or employee benefits programs committee which is trade secret is a confidential record. This subsection does not limit the information required to be disclosed to the board under subsection 1.
  3. Except for Medicare part D, if the board contracts directly with a pharmacy benefits manager or provides prescription drug coverage through a self-insurance plan, the contract must provide the pharmacy benefits manager shall disclose to the board and the board’s auditor all rebates and any other fees that provide the pharmacy benefits manager with sources of income under the contract, including under related contracts the pharmacy benefits manager has with third parties, such as drug manufacturers.
  4. Anything the board has access to under this section, the insurance department and employee benefits programs committee has access to.

Source:

S.L. 2019, ch. 464, § 2, eff March 7, 2019; 2021, ch. 442, § 1, eff August 1, 2021.

Note.

Section 4 of chapter 464, S.L. 2019 provides, “ APPLICATION. Section 2 of this Act applies to contracts entered by the public employees retirement system board on and after the effective date of this Act.”

54-52.1-04.17. Self-insurance health plan — Bank of North Dakota line of credit — Continuing appropriation.

The Bank of North Dakota shall extend to the board a line of credit not to exceed fifty million dollars. The board shall repay the line of credit from health insurance premium revenue or repay the line of credit from other funds appropriated by the legislative assembly. The board may access the line of credit to the extent necessary to provide adequate claims payment funds, to purchase stop-loss coverage, and to defray other expenditures of administration of the self-insurance health plan. All loan funds received by the board from the Bank under this section, not otherwise appropriated, are appropriated to the board for the repayment of claims and other costs of the uniform group insurance program.

Source:

S.L. 2019, ch. 462, § 7, eff March 7, 2019.

54-52.1-05. Provisions of contract — Term of contract.

  1. Each uniform group insurance contract entered by the board must be consistent with the provisions of this chapter, must be signed for the state of North Dakota by the chairman of the board, and must include the following:
    1. As many optional coverages as deemed feasible and advantageous by the board.
    2. A detailed statement of benefits offered, including maximum limitations and exclusions, and such other provisions as the board may deem necessary or desirable.
  2. The initial term or the renewal term of a uniform group insurance contract through a contract for insurance, health maintenance organization, or self-insurance health plan for hospital benefits coverage, medical benefits coverage, or prescription drug benefits coverage may not exceed two years.
    1. The board may renew a contract subject to this subsection without soliciting a bid under section 54-52.1-04 if the board determines the carrier’s performance under the existing contract meets the board’s expectations, the proposed premium renewal amount does not exceed the board’s expectations, and renewal best serves the interests of the state and the state’s eligible employees.
    2. In making a determination under this subsection, the board shall:
      1. Use the services of a consultant to concurrently and independently prepare a renewal estimate the board shall consider in determining the reasonableness of the proposed premium renewal amount.
      2. Review the carrier’s performance measures, including payment accuracy, claim processing time, member service center metrics, wellness or other special program participation levels, and any other measures the board determines relevant to making the determination and shall consider these measures in determining the board’s satisfaction with the carrier’s performance.
      3. Consider any additional information the board determines relevant to making the determination.
    3. The board may determine the carrier’s performance under the existing contract does not meet the board’s expectations, the proposed premium renewal amount exceeds the board’s expectations, or renewal does not best serve the interests of the state or the state’s eligible employees and the board therefore may decide to solicit a bid under section 54-52.1-04.

Source:

S.L. 1971, ch. 517, § 5; 2015, ch. 56, § 6, eff July 1, 2015; 2019, ch. 462, § 8, eff March 7, 2019.

Effective Date.

The 2015 amendment of this section by section 6 of chapter 56, S.L. 2015 became effective July 1, 2015.

54-52.1-05.1 Health insurance benefits coverage — Insured and provider data disclosure.

Except as necessary for treatment, payment, or health care operations, a carrier providing health insurance benefits coverage under this chapter may not disclose identifiable or unidentifiable insured or provider data or information to a related or unrelated health care delivery entity. The board may establish exceptions to the disclosure limitations under this section for the limited purpose of addressing public interest and benefit activities; for the limited purpose of addressing research, public health, or health care operations; or for the solicitation of bids pursuant to section 54-52.1-04. An exception established by the board under this section may not be more permissive than allowed under state and federal privacy laws.

History. S.L. 2015, ch. 56, § 7, eff July 1, 2015; 2021, ch. 443, § 1, eff April 13, 2021.

Effective Date.

This section became effective July 1, 2015.

54-52.1-06. State contribution — Penalty.

  1. Each department, board, or agency shall pay to the board each month from its funds appropriated for payroll and salary amounts a state contribution in the amount as determined by the primary carrier of the group contract for the full single rate monthly premium for each of its eligible employees enrolled in the uniform group insurance program and the full rate monthly premium, in an amount equal to that contributed under the alternate family contract, including major medical coverage, for hospital and medical benefits coverage for spouses and dependent children of its eligible employees enrolled in the uniform group insurance program pursuant to section 54-52.1-07. The board then shall pay the necessary and proper premium amount for the uniform group insurance program to the proper carrier or carriers on a monthly basis.
  2. Any refund, rebate, dividend, experience rating allowance, discount, or other reduction of premium amount must be credited at least annually to a separate fund of the uniform group insurance program to be used by the board to reimburse the administrative expense and benefit fund of the public employees retirement program for the costs of administration of the uniform group insurance program.
  3. If an enrolled eligible employee is not entitled to receive salary, wages, or other compensation for a particular calendar month, that employee may make direct payment of the required premium to the board to continue the employee’s coverage, and the employing department, board, or agency shall provide for the giving of a timely notice to the employee of that employee’s right to make such payment at the time the right arises.
  4. A governmental unit that fails to pay the contributions by the board’s established due date is subject to a civil penalty of fifty dollars and, as interest, one percent of the amount due for each month of delay or fraction of a month after the payment became due.

Source:

S.L. 1971, ch. 517, § 6; 1973, ch. 434, § 1; 1973, ch. 435, § 1; 1979, ch. 576, § 1; 1983, ch. 580, § 3; 2001, ch. 496, § 5; 2021, ch. 438, § 2, eff August 1, 2021.

54-52.1-06.1. Uniform group insurance program benefits — Continuing appropriation.

The funds necessary to pay the consulting fees and health insurance benefits related to the uniform group insurance program are hereby appropriated from insurance premiums received by the board.

Source:

S.L. 1993, ch. 532, § 9.

54-52.1-07. Optional coverage for employee’s family.

Each eligible employee enrolled in the uniform group insurance program may elect to include that person’s spouse and all qualified dependents, as provided for in the plan, within the hospital benefits coverage and medical benefits coverage, the state to pay the cost of such coverage as provided in section 54-52.1-06.

Source:

S.L. 1971, ch. 517, § 7; 1979, ch. 576, § 2.

54-52.1-08. Administration — Board to promulgate rules and regulations.

It is the responsibility of the board to account for and disburse premium payments, maintain records, prepare reports, and to perform such other functions as may be necessary to carry out the provisions of this chapter. The board may promulgate such rules and regulations as may be necessary to carry out the provisions of this chapter.

Source:

S.L. 1971, ch. 517, § 8.

Cross-References.

Administration by board, see N.D.C.C. § 54-52-04.

54-52.1-08.1. Administrative — Nondiscrimination testing for health and life insurance programs.

The board shall be responsible for the nondiscrimination testing required under section 89 of the Internal Revenue Code. The board may engage the services of a consultant to assist the board in its administration of this section. The various state departments, boards, agencies, and commissions shall provide the board with requested information so the board may carry out its duties under this section.

Source:

S.L. 1989, ch. 678, § 1.

54-52.1-08.2. Uniform group insurance program — Compliance with federal requirements — Group purchasing arrangements.

If the board determines that any section or the phraseology of any section of this chapter does not comply with applicable federal statutes or rules, the board shall adopt appropriate terminology with respect to that section to comply with the federal statutes or rules, subject to the approval of the legislative management’s employee benefits programs committee. The board may assume responsibility for group purchasing arrangements as provided by federal law. Any plan modifications made by the board under this section are effective until the effective date of any measure enacted by the legislative assembly providing the necessary amendments to this chapter to ensure compliance with the federal statutes or rules.

Source:

S.L. 1995, ch. 534, § 1; 2009, ch. 482, § 81.

54-52.1-09. Reports.

Each department, board, or agency shall keep such records, make such certifications, and furnish the board or carriers with such information and reports as may be necessary to enable the board or carriers to carry out their functions under the provisions of this chapter. Carriers that have entered into a contract with the board are required to furnish such reasonable reports as the board determines to be necessary, and to permit the board to examine those records that relate to the uniform group insurance program.

Source:

S.L. 1971, ch. 517, § 9.

54-52.1-09.1. Health insurance utilization reports.

Upon request by a political subdivision that receives benefits under the uniform group insurance program, the board shall provide that political subdivision with a health insurance utilization report that is substantively the same as a report required under subsection 1 of section 26.1-36.4-09. The board shall provide the report in a manner that is in compliance with the federal Health Insurance Portability and Accountability Act of 1996 [Pub. L. 104-191; 110 Stat. 1936; 29 U.S.C. 1181 et seq.].

Source:

S.L. 2021, ch. 443, § 2, eff April 13, 2021.

54-52.1-10. Exemption from state premium tax.

All premiums, consideration for annuities, policy fees, and membership fees collected under this chapter are exempt from the tax payable pursuant to section 26.1-03-17.

Source:

S.L. 1971, ch. 517, § 10; 1983, ch. 319, § 34.

54-52.1-11. Confidentiality of employee records.

In addition to the confidentiality requirements in section 26.1-36-12.4, information pertaining to an eligible employee’s group medical records for claims, employee premium payments made, salary reduction amounts taken, history of any available insurance coverage purchased, and amounts and types of insurance applied for under the supplemental life insurance coverage under this chapter is confidential and is not a public record. The information and records may be disclosed, under rules adopted by the board, only to:

  1. A person to which the eligible employee has given written authorization to have the information disclosed.
  2. A person legally representing the eligible employee, upon proper proof of representation, and unless the eligible employee specifically withholds authorization.
  3. A person authorized by a court order.
  4. A person to which the board is required to disclose information pursuant to federal or state statutes or regulations.
  5. Any person if the purpose of the disclosure is for treatment, payment, or health care operations.

Source:

S.L. 1987, ch. 224, § 4; 2001, ch. 496, § 6; 2003, ch. 499, § 5; 2019, ch. 462, § 9, eff March 7, 2019.

54-52.1-12. Ownership and confidentiality of the uniform group health insurance medical records of employees, retirees, and dependents.

The medical records and related data of the employees, retirees, and dependents, obtained as the result of enrollment in the uniform group insurance program, are the property of the public employees retirement system. The records and data are confidential and are not public records. However, the board may allow administrators of administrative services only contracts or third-party administrators contracts access to the records and data where it is required in the performance of the administrator’s duties pursuant to the contract. No administrator may be held liable for furnishing to the board information with respect to any patient, or any physician, hospital, or other health care provider.

Source:

S.L. 1987, ch. 23, § 3.

54-52.1-13. Uniform prescription drug cards.

The board shall provide for issuance of uniform prescription drug cards under a contract for insurance pursuant to section 54-52.1-04 or under a self-insurance plan pursuant to section 54-52.1-04.2 in the same manner as provided under section 26.1-36-43.

Source:

S.L. 2001, ch. 275, § 2.

54-52.1-14. Wellness program.

The board shall develop an employer-based wellness program. The program must encourage employers to adopt a board-developed wellness program by either charging extra health insurance premium to nonparticipating employers or reducing premium for participating employers.

Source:

S.L. 2003, ch. 499, § 4.

54-52.1-15. Acceptance and expenditure of third-party payments — Continuing appropriation.

The board may receive moneys from third parties, including the federal government, pursuant to one or more federal programs. Any money received from a third party by the board is appropriated to the board on a continuing basis for the board’s use in paying benefits, premiums, or administrative expenses under the uniform group insurance program.

Source:

S.L. 2005, ch. 531, § 14.

54-52.1-16. Uniform group insurance program — Collaborative drug therapy program — Continuing appropriation.

  1. The board may establish a collaborative drug therapy program available to individuals in the medical and hospital benefits coverage group. The purpose of the collaborative drug therapy program is to improve the health of individuals in identified health populations and to manage health care expenditures.
  2. Under the program, the board may involve physicians, pharmacists, and other health professionals to coordinate health care for individuals in identified health populations in order to improve health outcomes and reduce spending on care for the identified health problem. Under the program, pharmacists and other health professionals may be reimbursed for providing face-to-face collaborative drug therapy services to covered individuals in the identified health population. To encourage enrollment in the plan, the board may provide incentives to covered individuals in the identified health population which may include waived or reduced copayment for related treatment drugs and supplies.
  3. The board may request the assistance of the North Dakota pharmacists association or a specified delegate to implement a formalized disease management program with the approval of the prescriptive practices committee established in section 43-15-31.4, which must serve to standardize chronic disease care and improve patient outcomes. This program must facilitate enrollment procedures, provide standards of care, enable consistent documentation of clinical and economic outcomes, and structure an outcomes reporting system.
  4. The board may seek and accept private contributions, gifts, and grants-in-aid from the federal government, private industry, and other sources for a collaborative drug therapy program for identified health populations. Any funds that may become available through contributions, gifts, grants-in-aid, or other sources to the board for a collaborative drug therapy program are appropriated to the board on a continuing basis.

Source:

S.L. 2007, ch. 487, § 1.

54-52.1-17. Uniform group insurance program — Collaborative drug therapy program — Funding.

  1. The board shall establish a collaborative drug therapy program that is to be available to individuals in the medical and hospital benefits coverage group. The purpose of the collaborative drug therapy program is to improve the health of individuals with diabetes and to manage health care expenditures.
  2. The board shall involve physicians, pharmacists, and certified diabetes educators to coordinate health care for covered individuals with diabetes in order to improve health outcomes and reduce spending on diabetes care. Under the program, pharmacists and certified diabetes educators may be reimbursed for providing face-to-face collaborative drug therapy services to covered individuals with diabetes. To encourage enrollment in the plan, the board shall provide incentives to covered individuals who have diabetes which may include waived or reduced copayment for diabetes treatment drugs and supplies.
  3. The North Dakota pharmacists association or a specified delegate shall implement a formalized diabetes management program with the approval of the prescriptive practices committee established in section 43-15-31.4, which must serve to standardize diabetes care and improve patient outcomes. This program must facilitate enrollment procedures, provide standards of diabetes care, enable consistent documentation of clinical and economic outcomes, and structure an outcomes reporting system.
  4. The board shall fund the program from any available funds in the uniform group insurance program and if necessary the fund may add up to a two dollar per month charge on the policy premium for medical and hospital benefits coverage. A state agency shall pay any additional premium from the agency’s existing appropriation.

Source:

S.L. 2007, ch. 488. § 1.

54-52.1-18. High-deductible health plan alternative with health savings account option.

  1. The board shall develop and implement a high-deductible health plan as an alternative to the plan under section 54-52.1-02. The high-deductible health plan alternative with a health savings account must be made available to state employees by January 1, 2012. After June 30, 2015, at the board’s discretion, the high-deductible health plan alternative may be offered to political subdivisions for coverage of political subdivision employees. If a political subdivision elects this high-deductible option the political subdivision may not offer the plan under section 54-52.1-02.
  2. Health savings account fees for participating state employees must be paid by the employer.
    1. Except as provided in subdivision b, subject to the limits of section 223(b) of the Internal Revenue Code [26 U.S.C. 223(b)], the difference between the cost of the single and family premium for eligible state employees under section 54-52.1-06 and the premium for those employees electing to participate under the high-deductible health plan under this section must be deposited in a health savings account for the benefit of each participating employee.
    2. If the public employees retirement system is unable to establish a health savings account due to the employee’s ineligibility under federal or state law or due to failure of the employee to provide necessary information in order to establish the account, the system is not responsible for depositing the health savings account contribution. The member will remain a participant in the high-deductible health plan regardless of whether a health savings account is established.
    3. If a member closes the health savings account established for that member under this section, the system is not responsible for depositing the health savings account contribution after that closure.
  3. Each new state employee must be provided the opportunity to elect the high-deductible health plan alternative. At least once each biennium, the board shall provide an open enrollment period allowing existing state employees or a political subdivision to change their coverage.

Source:

S.L. 2011, ch. 434, § 1; 2013, ch. 434, § 3; 2015, ch. 259, § 13, eff August 1, 2015; 2017, ch. 372, § 8, eff August 1, 2017.

Effective Date.

The 2015 amendment of this section by section 13 of chapter 259, S.L. 2015 became effective August 1, 2015.

The 2013 amendment of this section by section 3 of chapter 434, S.L. 2013 became effective August 1, 2013.

CHAPTER 54-52.2 Deferred Compensation Plan for Public Employees

54-52.2-08 Employer contribution.

54-52.2-01. Deferred compensation program for public employees — Contract.

The state or any county, city, or other political subdivision may, by contract, agree with any employee to defer, in whole or in part, any portion of that employee’s compensation and may subsequently, with the consent of the employee, fund a deferred compensation program for the employee. The deferred compensation program may consist of a contract, purchase, or investment in a fixed or variable life insurance or annuity contract from any life underwriter duly licensed by this state who represents an insurance company licensed to contract business in this state, a savings account at a federally insured financial institution or the Bank of North Dakota, an account with or managed by a dealer registered under chapter 10-04, or any combination of contracts or accounts authorized by this section, as specified by the employee. The public employees retirement board shall specify methods of payment of deferred compensation funds to be selected by individual employees. That board shall determine the number of employees participating in a deferred compensation program necessary to qualify for automatic payroll deduction.

Source:

S.L. 1973, ch. 436, § 1; 1983, ch. 581, § 1; 1985, ch. 589, § 1; 1987, ch. 653, § 2.

54-52.2-02. Deferred employee’s compensation — Agreements.

The public employees retirement board, acting on behalf of each state agency, department, board, commission, or institution, may enter into contractual agreements with employees of a state agency, department, board, commission, or institution on behalf of the state to defer any portion of that employee’s compensation allowed under section 457 of the Internal Revenue Code [26 U.S.C. 457].

Source:

S.L. 1973, ch. 436, § 2; 1983, ch. 581, § 2; 1987, ch. 653, § 3.

54-52.2-03. Deferred compensation program — Administration — Contract for services.

The administration of the deferred compensation program for each state agency, department, board, commission, or institution is under the direction of the public employees retirement board. Each county, city, or other political subdivision shall designate an officer to administer the deferred compensation program or appoint the public employees retirement board to administer the program on its behalf. Payroll reductions must be made in each instance by the appropriate payroll officer. The public employees retirement board shall administer the deferred compensation program based on one or more plans in compliance with the appropriate provisions of the Internal Revenue Code and regulations adopted under those provisions. Not later than January 1, 1999, all plan assets and income must be held in trust, custodial accounts, or contracts as described in section 401(f) of the Internal Revenue Code [26 U.S.C. 401(f)] for the exclusive benefit of participants and their beneficiaries as required by section 457 of the Internal Revenue Code [26 U.S.C. 457]. Once the trust, custodial account, or contract is established as required by this section, the board shall act as fiduciary of the plan to the extent required by section 457 of the Internal Revenue Code [26 U.S.C. 457] and the board is authorized to do all things necessary for the proper administration of the plan to ensure that the plan maintains its qualified status.

Source:

S.L. 1973, ch. 436, § 3; 1983, ch. 581, § 3; 1985, ch. 589, § 2; 1987, ch. 653, § 4; 1997, ch. 464, § 7; 2001, ch. 494, § 8.

54-52.2-03.1. Deferred compensation program — Executive director — Staff — Funding. [Repealed]

Repealed by S.L. 1987, ch. 653, § 5.

54-52.2-03.2. Deferred compensation program — Board authority — Provider information.

  1. The board shall adopt rules necessary to implement this chapter and to manage the deferred compensation plan subject to the limitations of this chapter.
  2. The board shall do all things necessary to preserve the tax-exempt status of the plan.
  3. All providers must be authorized to do business in this state and all agents of providers must be licensed by the appropriate licensing authority or authorities in this state.
  4. To continue to participate in the program, each provider must report annually, in a form and manner specified by the board, information related to their products, administrative and management fees, contract and maintenance charges, withdrawal penalties, market rating, and such other information the board may require.
  5. The board may suspend participation of any provider that does not meet the requirements of this chapter or the rules adopted by the board.
  6. The board has the authority to establish a deferred compensation advisory committee which shall include active providers who have signed a provider administrative agreement with the state of North Dakota deferred compensation plan.

Source:

S.L. 1993, ch. 538, § 1.

54-52.2-03.3. Benefit payments to alternate payee under qualified domestic relations order.

  1. The board or a vendor contracted for by the board shall apportion a participating member’s account in the deferred compensation plan under this chapter in accordance with the applicable requirements of any qualified domestic relations order. The board shall review a domestic relations order submitted to the board to determine if the domestic relations order is qualified under this section and pursuant to the plan document established by the board for determining the qualified status of domestic relations orders and administering distributions under the qualified orders.
  2. A “qualified domestic relations order” for purposes of this section means any judgment, decree, or order, including approval of a property settlement agreement, which relates to the provision of child support, spousal support, or marital property rights to a spouse, former spouse, child, or other dependent of a participating member, is made pursuant to a North Dakota domestic relations law, and which creates or recognizes the existence of an alternate payee’s right to, or assigns to an alternate payee the right to, receive all or a part of the benefits payable to the participating member. A qualified domestic relations order may not require the board to provide any type or form of benefit, or any option, not otherwise provided under this chapter, or to provide increased benefits. A qualified domestic relations order must specify:
    1. The name and the last-known mailing address of the participating member and the name and mailing address of each alternate payee covered by the order;
    2. The amount or percentage of the participating member’s benefits to be paid by the plan to each alternate payee;
    3. That the alternate payee must take a lump sum payment of the benefits allocated to the alternate payee within one hundred twenty days of the later of the board’s acceptance of the qualified domestic relations order or the entry of the order by the court; and
    4. Each plan to which the order applies.

Source:

S.L. 2003, ch. 498, § 17.

Cross-References.

Exemptions from legal process, see N.D.C.C. § 28-22-19.

No exemptions from enforcement of order to pay spousal support or child support, see N.D.C.C. § 28-22-03.1.

54-52.2-04. Definition — Employee.

For the purpose of this chapter, “employee” means any person, whether appointed, elected, or under contract, employed by the state or a political subdivision, who is at least eighteen years of age and employed in an approved and regularly funded position of unlimited duration for twenty hours or more per week and at least five months each year. For purposes of this chapter, “employee” also means a member of the legislative assembly.

Source:

S.L. 1973, ch. 436, § 4; 2001, ch. 494, § 9.

54-52.2-05. Administrators authorized to make payments or investments.

Notwithstanding any other provision of law to the contrary, those persons designated to administer the deferred compensation program are hereby authorized to make payments or investments under the deferred compensation program as specified by the employee in accordance with section 54-52.2-01. The payments or investments may not be construed to be a prohibited use of the general assets of the state, county, city, or other political subdivision.

Source:

S.L. 1973, ch. 436, § 5; 1983, ch. 581, § 4.

54-52.2-06. Deferred compensation program — Benefits — Taxation — Exemption from judicial process — Assignment.

The deferred compensation program established by this chapter shall exist and serve in addition to retirement, pension, or benefit systems established by the state, county, city, town, or other political subdivision, and no deferral of income under the deferred compensation program shall effect a reduction of any retirement, pension, or other benefit provided by law. However, any sum deferred under the deferred compensation program is not subject to taxation until distribution is actually made to the employee. Any unpaid benefits under the deferred compensation program established by this chapter are not subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency laws, or other process of law whatsoever, except as provided by section 54-52.2-03.3. Neither the employee, the employee’s beneficiary, nor any designee of the employee or the employee’s beneficiary has the right to commute, sell, assign, transfer, or otherwise convey the right to receive payments under this chapter.

Source:

S.L. 1973, ch. 436, § 6; 1983, ch. 581, § 5; 2003, ch. 498, § 20.

54-52.2-07. Liability under deferred compensation program.

The financial liability of the state, county, city, or other political subdivision under a deferred compensation program is limited in each instance to the value of the employee’s deferred compensation account, and the state, county, city, or other political subdivision is not responsible for any loss which may result from investment of the deferred compensation under the deferred compensation program.

Source:

S.L. 1973, ch. 436, § 7; 1983, ch. 581, § 6.

54-52.2-08 Employer contribution.

Employer contributions to the deferred compensation program established under this chapter are authorized as permitted under the Internal Revenue Code.

Source:

S.L. 2019, ch. 463, § 4, eff August 1, 2019.

CHAPTER 54-52.3 Pretax Benefits Program

54-52.3-01. Pretax benefits program for public employees.

The public employees retirement system board may establish a pretax benefits program for all state employees and employees of district health units, including members of the legislative assembly, under which an employee may reduce the employee’s salary and elect benefits to the extent of the reduction. A participating district health unit shall comply with the program conditions and pay all fees established by the board.

Source:

S.L. 1989, ch. 679, § 1; 1997, ch. 468, § 1; 2001, ch. 497, § 1.

54-52.3-02. Authority of board.

The board shall determine benefits to be offered under the pretax benefits program, accept proposals from qualified providers, retain consultants, and do all things necessary to administer the pretax benefits program and preserve its tax-exempt status.

Source:

S.L. 1989, ch. 679, § 1.

54-52.3-03. Employer savings used to defray expenses of administering program — Continuing appropriation.

The office of management and budget shall transfer funds from the savings accruing to the agencies’ salaries and wages line item, as a result of the diminution of the state’s employer contribution for the Federal Insurance Contribution Act tax, to a payroll clearing account. The office of management and budget shall transfer funds from the payroll clearing account to the board as necessary to defray the reasonable expenses of administering the pretax benefits program established under this chapter, including expenses associated with the program’s medical spending account. Any revenue collected by the board from participating district health units must be used, and is hereby appropriated, to defray the expenses of administering the program. The amount necessary to pay consultants retained by the board, vendors retained by the board to provide claims administration services, any insurance costs associated with the medical spending account, and medical reimbursements for the medical spending account if funds are insufficient to pay claims are hereby appropriated from the savings and revenue generated by the program. All other expenses of administering the program must be paid in accordance with the agency’s appropriation authority as established by the legislative assembly. The director of the office of management and budget may decrease or suspend the transfer of the savings accruing to the agencies’ salaries and wages line item to the payroll clearing account upon determination that the funds deposited under this section are sufficient to offset anticipated obligations. Notwithstanding other provisions in this section, the public employees retirement system board, or any successor state agency, may not establish, enroll, or administer any pretax benefits program for a political subdivision or any other public or private business or entity, except for any program established specifically for employees of the state and employees of district health units.

Source:

S.L. 1989, ch. 679, § 1; 1991, ch. 635, § 1; 1997, ch. 468, § 2; 2013, ch. 432, § 7.

Effective Date.

The 2013 amendment of this section by section 7 of chapter 432, S.L. 2013 became effective July 1, 2013.

54-52.3-04. Effect of participation on other state-administered employee benefits programs.

For all purposes under any state-administered retirement program, disability program, life insurance program, or other employee benefits program, the compensation or gross compensation of any employee participating in any pretax benefits program is deemed to be the compensation or gross compensation which the employee would have received if the employee was not participating in the pretax benefits program.

Source:

S.L. 1989, ch. 679, § 1.

54-52.3-05. Confidentiality of program records.

Any records and information pertaining to a public employee’s medical and dependent care reimbursement under the pretax benefits program are confidential and are not public records subject to section 44-04-18 and section 6 of article XI of the Constitution of North Dakota. The records and information may be disclosed, under rules adopted by the board, only to:

  1. A person to whom the employee has given written authorization to have the information disclosed.
  2. A person legally representing the employee, upon proper proof of representation.
  3. A person authorized by a court order.
  4. A person or entity to which the board is required to disclose information pursuant to federal or state statutes or regulations.
  5. Any person or entity if the purpose of the disclosure is for health care treatment, payment, or operations.

Source:

S.L. 1991, ch. 635, § 2; 2003, ch. 499, § 6.

54-52.3-06. Deposit of program moneys — Appropriation.

All moneys collected pursuant to elections made by public employees under the pretax benefits program for the medical spending account and the dependent care account must be deposited in an account with the Bank of North Dakota. All moneys deposited in the account, not otherwise appropriated, are hereby appropriated for the purpose of making payments to employees participating in the program. The board shall transfer any surplus in the pretax benefits account at the end of the plan year to the payroll clearing account.

Source:

S.L. 1991, ch. 635, § 3.

CHAPTER 54-52.4 State Employee Leave Policies

54-52.4-01. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Child” means a child by birth, an adopted or foster child, a stepchild, or a legal ward, who is:
    1. Less than eighteen years of age; or
    2. More than seventeen years of age and incapable of providing self-care because of a serious health condition.
  2. “Employee” means an individual employed in this state by an employer, who has been employed by the employer for at least twelve months, and who has worked at least one thousand two hundred fifty hours for the employer over the previous twelve months.
  3. “Employer” means the state but does not include any political subdivision of the state.
  4. “Employment benefit” means all benefits provided or made available to employees by an employer, including education, health care, insurance, leave, and retirement benefits.
  5. “Health care provider” means a registered nurse licensed under chapter 43-12.1, a physician licensed under chapter 43-17, a psychologist licensed under chapter 43-32, or a licensed certified social worker licensed under chapter 43-41.
  6. “Health care services” means services rendered by a health care provider within the scope of the provider’s license, including long-term care and hospice and hospital care.
  7. “Parent” means a birth parent, foster parent, adoptive parent, or stepparent.
  8. “Serious health condition” means a disabling physical or mental illness, injury, impairment, or condition involving:
    1. Inpatient care in a hospital licensed under chapter 23-16 or operated by the United States or this state, long-term care facility as defined in section 50-10.1-01, or hospice program licensed under chapter 23-17.4; or
    2. Outpatient care that requires continuing treatment by a health care provider.
  9. “Spouse” means an employee’s husband or wife.

Source:

S.L. 1989, ch. 680, § 1; 2003, ch. 501, § 1.

54-52.4-02. Family leave.

  1. An employer shall grant an employee’s request for a family leave of absence for any of the following reasons:
    1. To care for the employee’s child by birth, if the leave concludes within twelve months of the child’s birth.
    2. To care for a child placed with the employee, by a child-placing agency licensed under chapter 50-12, for adoption or as a precondition to adoption under section 14-15-12, but not both, or for foster care, if the leave concludes within twelve months of the child’s placement.
    3. To care for the employee’s child, spouse, or parent if the child, spouse, or parent has a serious health condition.
    4. Because of the employee’s serious health condition that makes the employee unable to perform the functions of the employee’s job.
    5. Because of the death of the employee’s child, if the leave concludes within six months of the child’s death.
  2. Except as otherwise provided under this section, for any combination of reasons specified in subsection 1, an employee may take family leave in any twelve-month period for not more than twelve workweeks. The twelve weeks of family leave may be taken intermittently for leave under subdivision a or b of subsection 1 if approved by the employer. The twelve weeks of family leave may be taken intermittently for leave under subdivision c or d of subsection 1 if the leave is medically necessary. The twelve weeks of family leave taken under subdivision e of subsection 1 may be taken intermittently if approved by the employer. If an employee normally works a part-time schedule or variable hours, the amount of leave to which an employee is entitled must be determined on a pro rata or proportional basis by comparing the new schedule with the employee’s normal schedule.
  3. In any case in which a husband and wife entitled to family leave under this chapter are employed by the same employer, the aggregate period of family leave to which both are entitled may be limited by the employer to twelve workweeks during any twelve-month period.
  4. An employee reasonably shall consider the needs of the employer in scheduling family leave under this section or in using leave under section 54-52.4-03.
  5. The family leave required by this chapter is not required to be granted with pay unless otherwise specified by agreement between the employer and employee, by collective bargaining agreement, or by employer policy.
  6. The family leave required by this chapter supplements any leave otherwise available to an employee.

Source:

S.L. 1989, ch. 680, § 2; 2003, ch. 501, § 2; 2019, ch. 465, § 1, eff August 1, 2019.

Collateral References.

Adequacy of notice to employer of need for leave under Federal Family and Medical Leave Act of 1993, 184 A.L.R. Fed. 171.

54-52.4-03. Use of other available leave for bereavement of child or care of parent, spouse, or child.

An employer that provides leave for its employees for illnesses or other medical or health reasons shall grant an employee’s request to use that leave for the purposes authorized under subsection 1 of section 54-52.4-02. Except as otherwise provided under this section, an employee may take no more than four hundred eighty hours of leave under this section in any twelve-month period. Any leave for bereavement is limited to one hundred sixty hours and must be taken within six months following the death of the child. The employer shall compensate the employee for leave used by the employee under this section on the same basis as the employee would be compensated if the leave had been taken due to the employee’s own illness or other medical or health reason.

Source:

S.L. 1989, ch. 680, § 3; 2011, ch. 435, § 1; 2015, ch. 369, § 3, eff August 1, 2015; 2019, ch. 465, § 2, eff August 1, 2019.

Effective Date.

The 2015 amendment of this section by section 3 of chapter 369, S.L. 2015 became effective August 1, 2015.

54-52.4-04. Notice to employer.

  1. If an employee intends to take family leave for the reasons specified in subdivision a or b of subsection 1 of section 54-52.4-02, the employee, in a reasonable and practicable manner, shall give the employer advance notice of the expected birth or placement.
  2. If an employee intends to take family leave for the reasons specified in subdivision c or d of subsection 1 of section 54-52.4-02, the employee shall:
    1. Make a reasonable effort to schedule the planned care or treatment so the leave does not unduly disrupt the employer’s operations, subject to the approval of the health care provider to the child, spouse, parent, or employee; and
    2. Give the employer advance notice of the planned care or treatment in a reasonable and practicable manner.
  3. If an employee intends to take family leave for the reason specified in subdivision e of subsection 1 of section 54-52.4-02, the employee shall make a reasonable effort to schedule the leave so the leave does not unduly disrupt the employer’s operations and, as appropriate, give the employer advance notice of the leave in a reasonable and practicable manner.

Source:

S.L. 1989, ch. 680, § 4; 2003, ch. 501, § 3; 2019, ch. 465, § 3, eff August 1, 2019.

54-52.4-05. Certification for leave to care for child, spouse, parent, or employee’s serious health condition.

  1. If an employee requests family leave for the reasons described in subdivision c or d of subsection 1 of section 54-52.4-02 or leave under section 54-52.4-03, the employer may require the employee to provide certification, as described in subsection 2, from the provider of health care to the child, spouse, parent, or employee.
  2. An employer may not require certification of more than:
    1. That the child, spouse, parent, or employee has a serious health condition.
    2. The date the serious health condition commenced and its probable duration.
    3. Within the knowledge of the health care provider, the medical facts regarding the serious health condition.

Source:

S.L. 1989, ch. 680, § 5; 2003, ch. 501, § 4.

54-52.4-06. Continued health coverage.

During a period that an employee takes family leave, the employer shall continue to make any group health insurance coverage or health care plan for its employees and their dependents available to the employee and the employee’s dependents under the conditions that applied immediately before the family leave began. The employer is not required to pay any cost of insurance or health care for that employee and the employee’s dependents while the employee is on family leave.

Source:

S.L. 1989, ch. 680, § 6.

54-52.4-07. Position upon return from leave.

  1. When an employee returns from family leave the employer shall immediately place the employee in an employment position as follows:
    1. If the employment position the employee held immediately before the family leave began is vacant, in that position.
    2. If the employment position which the employee held immediately before the family leave began is not vacant, in an employment position having equivalent compensation, benefits, hours of employment, and other terms and conditions of employment.
    3. If, during the family leave, the employer experiences a layoff and the employee would have lost a position had the employee not been on leave, pursuant to the good-faith operation of a bona fide layoff and recall system, including a system under a collective bargaining agreement, the employee is not entitled to reinstatement in the former or equivalent position. In such circumstances, the employee retains all rights under the layoff and recall system, including a system under a collective bargaining agreement, as if the employee had not taken the leave.
  2. If an employee on family leave requests a return to work before the end of the leave as scheduled, the employer shall place the employee in an employment position of the type described in subsection 1 within a reasonable time not exceeding the duration of the leave as scheduled.
  3. No employer may, because an employee received family leave, reduce or deny an employment benefit that accrued to the employee before the employee’s leave began or accrued after the employee’s leave began. However, this chapter does not entitle a returning employee to a right, employment benefit, or employment position to which the employee would not have been entitled had the employee not taken family leave or to the accrual of any seniority or employment benefit during a period of family leave, unless otherwise provided by a collective bargaining or other agreement between the employer and employee.

Source:

S.L. 1989, ch. 680, § 7.

54-52.4-08. Prohibited acts — Individual remedies.

No person may interfere with, restrain, or deny the exercise of any right provided under this chapter. In addition to any remedies otherwise provided by law, any person injured by a violation of this chapter has a claim for relief to recover any damages, together with costs and disbursements, including reasonable attorney’s fees, and may receive injunctive and other equitable relief as determined by the court.

Source:

S.L. 1989, ch. 680, § 8.

54-52.4-09. Scope.

  1. This chapter does not prohibit an employer from providing employees with rights to family leave which are more generous to the employee than the rights provided by this chapter.
  2. This chapter does not limit or diminish an employee’s rights or benefits under chapters 52-01 through 52-07.1.

Source:

S.L. 1989, ch. 680, § 9.

54-52.4-10. Application.

This chapter first applies, with respect to any employee covered by a collective bargaining agreement on January 1, 1990, on the day after that collective bargaining agreement expires or is extended or renewed.

Source:

S.L. 1989, ch. 680, § 10.

CHAPTER 54-52.5 State Retirement and Investment Office

54-52.5-01. North Dakota state retirement and investment office.

The state retirement and investment office is created to coordinate the activities of the state investment board and teachers’ fund for retirement.

Source:

S.L. 1989, ch. 667, § 1; 1991, ch. 628, § 1.

54-52.5-02. Governing authority.

The state investment board shall govern the state retirement and investment office. The state investment board is responsible for overseeing and operating the agency and may do all things necessary to coordinate the activities of the state investment board and the teachers’ fund for retirement. The board of trustees of the teachers’ fund for retirement and the state investment board shall maintain their legal identities and authority as otherwise provided by law.

Source:

S.L. 1989, ch. 667, § 1; 1991, ch. 628, § 1.

54-52.5-03. State retirement and investment fund — Cost of operation of agency.

A special fund known as the “state retirement and investment fund” is established for the purpose of defraying administrative expenses of the state retirement and investment office. The actual amount of administrative expenses incurred by the state retirement and investment office must be paid from the respective funds listed under section 21-10-06 and are hereby appropriated to the state retirement and investment fund in proportion to the services rendered for each fund as estimated by the state investment board. The amount necessary to pay all administrative expenses of the state retirement and investment office must be paid from the state retirement and investment fund in accordance with the agency’s appropriation authority. Any interest income earned on the state retirement and investment fund must be credited to the fund.

Source:

S.L. 1989, ch. 667, § 1; 1991, ch. 628, § 1.

CHAPTER 54-52.6 Defined Contribution Retirement Plan

54-52.6-01. Definition of terms.

As used in this chapter, unless the context otherwise requires:

  1. “Board” means the public employees retirement system board.
  2. “Deferred member” means a person who elected to receive deferred vested retirement benefits under chapter 54-52.
  3. “Eligible employee” means a permanent state employee, except an employee of the judicial branch or an employee of the board of higher education and state institutions under the jurisdiction of the board, who is eighteen years or more of age and who is in a position not classified by North Dakota human resource management services. If a participating member loses permanent employee status and becomes a temporary employee, the member may still participate in the defined contribution retirement plan.
  4. “Employee” means any person employed by the state, whose compensation is paid out of state funds, or funds controlled or administered by the state or paid by the federal government through any of its executive or administrative officials.
  5. “Employer” means the state of North Dakota.
  6. “Participating member” means an eligible employee who elects to participate in the defined contribution retirement plan established under this chapter.
  7. “Permanent employee” means a state employee whose services are not limited in duration and who is filling an approved and regularly funded position and is employed twenty hours or more per week and at least five months each year.
  8. “Wages” and “salaries” means earnings in eligible employment under this chapter reported as salary on a federal income tax withholding statement plus any salary reduction or salary deferral amounts under 26 U.S.C. 125, 401(k), 403(b), 414(h), or 457. “Salary” does not include fringe benefits such as payments for unused sick leave, personal leave, vacation leave paid in a lump sum, overtime, housing allowances, transportation expenses, early retirement, incentive pay, severance pay, medical insurance, workforce safety and insurance benefits, disability insurance premiums or benefits, or salary received by a member in lieu of previously employer-provided fringe benefits under an agreement between an employee and a participating employer. Bonuses may be considered as salary under this section if reported and annualized pursuant to rules adopted by the board.

Source:

S.L. 1999, ch. 482, § 5; 2003, ch. 493, § 11; 2003, ch. 561, § 3; 2005, ch. 531, § 15; 2013, ch. 431, § 12.

Effective Date.

The 2013 amendment of this section by section 12 of chapter 431, S.L. 2013 becomes effective October 1, 2013.

Note.

Section 19 of chapter 431, S.L. 2013 provides in part: “EXPIRATION DATE — SUSPENSION. Sections 4, 12, and 14 of this Act are effective through July 31, 2017, and after that date are ineffective.”

54-52.6-02. Election.

  1. The board shall provide an opportunity for each eligible employee who is a member of the public employees retirement system on September 30, 2001, and who has not made a written election under this section to transfer to the defined contribution retirement plan before October 1, 2001, to elect in writing to terminate membership in the public employees retirement system and elect to become a participating member under this chapter. Except as provided in section 54-52.6-03, an election made by an eligible employee under this section is irrevocable. The board shall accept written elections under this section from eligible employees during the period beginning on July 1, 1999, and ending 12:01 a.m. December 14, 2001. An eligible employee who does not make a written election or who does not file the election during the period specified in this section continues to be a member of the public employees retirement system. An eligible employee who makes and files a written election under this section ceases to be a member of the public employees retirement system effective twelve midnight December 31, 2001; becomes a participating member in the defined contribution retirement plan under this chapter effective 12:01 a.m. January 1, 2002; and waives all of that person’s rights to a pension, annuity, retirement allowance, insurance benefit, or any other benefit under the public employees retirement system effective December 31, 2001. This section does not affect a person’s right to health benefits or retiree health benefits under chapter 54-52.1. An eligible employee who is first employed and entered upon the payroll of that person’s employer after September 30, 2001, may make an election to participate in the defined contribution retirement plan established under this chapter at any time during the first six months after the date of employment. If the board, in its sole discretion, determines that the employee was not adequately notified of the employee’s option to participate in the defined contribution retirement plan, the board may provide the employee a reasonable time within which to make that election, which may extend beyond the original six-month decision window.
  2. If an individual who is a deferred member of the public employees retirement system on September 30, 2001, is re-employed and by virtue of that employment is again eligible for membership in the public employees retirement system under chapter 54-52, the individual may elect in writing to remain a member of the public employees retirement system or if eligible to participate in the defined contribution retirement plan established under this chapter to terminate membership in the public employees retirement system and become a participating member in the defined contribution retirement plan established under this chapter. An election made by a deferred member under this section is irrevocable. The board shall accept written elections under this section from a deferred member during the period beginning on the date of the individual’s re-employment and ending upon the expiration of six months after the date of that re-employment. If the board, in its sole discretion, determines that the employee was not adequately notified of the employee’s option to participate in the defined contribution retirement plan, the board may provide the employee a reasonable time within which to make that election, which may extend beyond the original six-month decision window. A deferred member who makes and files a written election to remain a member of the public employees retirement system retains all rights and is subject to all conditions as a member of that retirement system. A deferred member who does not make a written election or who does not file the election during the period specified in this section continues to be a member of the public employees retirement system. A deferred member who makes and files a written election to terminate membership in the public employees retirement system ceases to be a member of the public employees retirement system effective on the last day of the payroll period that includes the date of the election; becomes a participating member in the defined contribution retirement plan under this chapter effective the first day of the payroll immediately following the date of the election; and waives all of that person’s rights to a pension, an annuity, a retirement allowance, insurance benefit, or any other benefit under the public employees retirement system effective the last day of the payroll that includes the date of the election. This section does not affect any right to health benefits or retiree health benefits to which the deferred member may otherwise be entitled.
  3. An eligible employee who elects to participate in the retirement plan established under this chapter must remain a participant even if that employee returns to the classified service or becomes employed by a political subdivision that participates in the public employees retirement system. The contribution amount must be as provided in this chapter, regardless of the position in which the employee is employed. Notwithstanding the irrevocability provisions of this chapter, if a member who elects to participate in the retirement plan established under this chapter becomes a supreme or district court judge, becomes a member of the highway patrol, becomes employed in a position subject to teachers’ fund for retirement membership, or becomes an employee of the board of higher education or state institution under the jurisdiction of the board who is eligible to participate in an alternative retirement program established under subsection 6 of section 15-10-17, the member’s status as a member of the defined contribution retirement plan is suspended, and the member becomes a new member of the retirement plan for which that member’s new position is eligible. The member’s account balance remains in the defined contribution retirement plan, but no new contributions may be made to that account. The member’s service credit and salary history that were forfeited as a result of the member’s transfer to the defined contribution retirement plan remain forfeited, and service credit accumulation in the new retirement plan begins from the first day of employment in the new position. If the member later returns to employment that is eligible for the defined contribution plan, the member’s suspension must be terminated, the member again becomes a member of the defined contribution retirement plan, and the member’s account resumes accepting contributions. At the member’s option, and pursuant to rules adopted by the board, the member may transfer any available balance as determined by the provisions of the alternate retirement plan into the member’s account under this chapter.
  4. After consultation with its actuary, the board shall determine the method by which a participating member or deferred member may make a written election under this section. If the participating member or deferred member is married at the time of the election, the election is not effective unless the election is signed by the individual’s spouse. However, the board may waive this requirement if the spouse’s signature cannot be obtained because of extenuating circumstances.
  5. If the board receives notification from the internal revenue service that this section or any portion of this section will cause the public employees retirement system or the retirement plan established under this chapter to be disqualified for tax purposes under the Internal Revenue Code, then the portion that will cause the disqualification does not apply.
  6. A participating member who becomes a temporary employee may still participate in the defined contribution retirement plan upon filing an election with the board within one hundred eighty days of transferring to temporary employee status. The participating member may not become a member of the defined benefit plan as a temporary employee. The temporary employee electing to participate in the defined contribution retirement plan shall pay monthly to the fund an amount equal to eight and twelve-hundredths percent times the temporary employee’s present monthly salary. The amount required to be paid by a temporary employee increases by two percent times the temporary employee’s present monthly salary beginning with the monthly reporting period of January 2012, and with an additional increase of two percent, beginning with the monthly reporting period of January 2013, and with an additional increase of two percent, beginning with the monthly reporting period of January 2014. The temporary employee shall also pay the required monthly contribution to the retiree health benefit fund established under section 54-52.1-03.2. This contribution must be recorded as a member contribution pursuant to section 54-52.1-03.2. An employer may not pay the temporary employee’s contributions. A temporary employee may continue to participate as a temporary employee until termination of employment or reclassification of the temporary employee as a permanent employee.
  7. A former participating member who has accepted a retirement distribution pursuant to section 54-52.6-13 and who subsequently becomes employed by an entity different from the employer with which the member was employed at the time the member retired but which does participate in any state-sponsored retirement plan may, before re-enrolling in the defined contribution retirement plan, elect to permanently waive future participation in the defined contribution retirement plan, whatever plan in which the new employing entity participates, and the retiree health program and maintain that member’s retirement status. Neither the member nor the employer are required to make any future retirement contributions on behalf of that employee.

Source:

S.L. 1999, ch. 482, § 5; 2001, ch. 498, § 1; 2001, ch. 499, § 1; 2005, ch. 531, § 16; 2005, ch. 532, § 2; 2011, ch. 432, § 9; 2013, ch. 431, §§ 13, 14.

Effective Date.

The 2013 amendment of this section by section 13 of chapter 431, S.L. 2013 became effective July 1, 2013.

The 2013 amendment of this section by section 14 of chapter 431, S.L. 2013 becomes effective October 1, 2013.

Note.

Section 19 of chapter 431, S.L. 2013 provides in part: “EXPIRATION DATE — SUSPENSION. Sections 4, 12, and 14 of this Act are effective through July 31, 2017, and after that date are ineffective.”

The reference to “subsection 6 of section 15-10-17” was originally enacted as “subsection 13 of section 15-10-17”. Due to the amendment of section 15-10-17 by section 1 of chapter 162, S.L. 2001, the code revisor has made this change.

54-52.6-03. Transfer of accumulated fund balances.

For an individual who elects to terminate membership in the public employees retirement system under chapter 54-52, the board shall transfer a lump sum amount from the retirement fund to the participating member’s account in the defined contribution retirement plan under this chapter. However, if the individual terminates employment prior to receiving the lump sum transfer under this section, the election made under section 54-52.6-02 is ineffective and the individual remains a member of the public employees retirement system under chapter 54-52 and retains all the rights and benefits provided under that chapter. The board shall calculate the amount to be transferred for persons employed before October 1, 2001, using the two following formulas, and shall transfer the greater of the two amounts obtained:

  1. The actuarial present value of the individual’s accumulated benefit obligation under the public employees retirement system based on the assumption that the individual will retire under the earliest applicable normal retirement age, plus interest from January 1, 2001, to the date of transfer, at the rate of one-half of one percent less than the actuarial interest assumption at the time of the election; or
  2. The actual employer contribution made, less vested employer contributions made pursuant to section 54-52-11.1, plus compound interest at the rate of one-half of one percent less than the actuarial interest assumption at the time of the election plus the employee account balance.

The board shall calculate the amount to be transferred for persons employed after September 30, 2001, using only the formula contained in subsection 2.

Source:

S.L. 1999, ch. 482, § 5; 2001, ch. 498, § 2; 2001, ch. 499, § 2; 2013, ch. 431, § 19.

Note.

Section 19 of chapter 431, S.L. 2013 provides in part: “ EXPIRATION DATE — SUSPENSION. Section 54-52.6-03 is suspended from October 1, 2013, through July 31, 2017. Section 54-52.6-03, as it existed on September 30, 2013, becomes effective on August 1, 2017.”

54-52.6-03.1. Changes to election.

  1. In this section the term “participating member” is limited in application to a participating member who elected to participate in the defined contribution retirement plan established under this chapter as an active employee of a participating employer, is an actively participating member of the defined contribution plan as of July 1, 2015, and is an active employee with a participating employer on the date an election is made under this section. The term does not include a participant who is not actively employed with a participating employer on the date of transfer of the funds under this section, has taken a distribution from the defined contribution plan, is retired, is no longer actively employed with a participating employer, or who is a member who has a qualified domestic relations order or other court order on the member’s account.
  2. Notwithstanding any other provision of law, the board shall provide an opportunity for each participating member to elect in writing to terminate membership in the defined contribution retirement plan under this chapter and to elect to become a participating member in the public employees retirement system under chapter 54-52.
  3. The board shall establish a three-calendar-month election period beginning not later than February 1, 2016. A participating member who does not make a written election or who does not file the election with the North Dakota public employees retirement system office during the period specified in this section continues to be a member of the defined contribution plan. A participating member who makes and files a written election with the North Dakota public employees retirement system office under this section ceases to be a member of the defined contribution plan upon receipt by the public employees retirement system of the accumulated fund balance of the member’s defined contribution plan under this chapter and waives all rights to that employee’s accumulated fund balance under the defined contribution plan. If the executive director of the North Dakota public employees retirement system determines a participating member was not adequately notified of the option to make an election under this section, the executive director may provide that participating member a reasonable time, not to exceed three months, within which to make that election.
  4. The public employees retirement system shall credit the transferring employee with the service credit and salary history reflected on the public employees retirement system’s electronic database.
  5. The board shall determine the method by which a participating member may make a written election under this section. If the participating member is married at the time of the election, the election is not effective unless the election is signed by the individual’s spouse. However, the executive director of the North Dakota public employees retirement system may waive this spousal signature requirement if the spouse’s signature cannot be obtained because of extenuating circumstances.
  6. For a participating member who elects to terminate membership in the defined contribution plan under this section, the board shall transfer that member’s accumulated fund balance, less any rollovers from other plans made into the defined contribution plan, to the public employees retirement system under chapter 54-52. If funds are transferred from the defined contribution plan to the defined benefit plan under an election made under this section, the board shall record this transfer to the defined benefit plan as employee and employer contributions in the same manner as transferred by the defined contribution provider. If a participating member has a separate account attributable to rollover contributions to the defined contribution plan pursuant to section 54-52.6-09.1, the participating member shall make an election to receive a distribution of the entire amount held in the rollover account at the time of transfer.
  7. A participating member who elects a transfer under this section is entitled to vested employer contribution amounts under section 54-52-11.1 prospectively from the date of transfer. A participating member who elects a transfer under this section must be assessed and required to pay monthly to the defined benefit plan an additional employee contribution of an additional two percent of the monthly salary or wages paid to the member.

History. S.L. 2015, ch. 49, § 29, eff July 1, 2015.

Effective Date.

This section became effective July 1, 2015.

54-52.6-04. Administration.

The board shall administer the defined contribution retirement plan established under this chapter and the board or vendors contracted for by the board shall invest the assets of the plan. The board is the fiduciary and the trustee of the plan. The board has the exclusive authority and responsibility to employ or contract with personnel and for services that the board determines necessary for the proper administration of and investment of assets of the plan, including managerial, professional, legal, clerical, technical, and administrative personnel or services.

Source:

S.L. 1999, ch. 482, § 5.

54-52.6-05. Direction of investments.

Each participating member shall direct the investment of the individual’s accumulated employer and employee contributions and earnings to one or more investment choices within available categories of investment provided by the board.

Source:

S.L. 1999, ch. 482, § 5.

54-52.6-06. Administrative expenses — Continuing appropriation.

Participating members shall pay the administrative expenses of the plan in a manner determined by the board. The board, or vendors contracted for by the board, may charge reasonable administrative expenses and deduct those expenses from a participating member’s account in the defined contribution retirement plan established under this chapter. The board may also pay the administrative expenses of the plan from fines and fees collected from vendors in a manner determined by the board. The board shall place vendor fines and fees and any money deducted from participating members’ accounts in an administrative expenses account with the state treasurer. The board may use funds from the payroll clearing account established pursuant to section 54-52.3-03 to pay for consulting expenses. All moneys in the payroll clearing account, not otherwise appropriated, or so much of the moneys as may be necessary, are appropriated to the board on a continuing basis for the purpose of retaining a consultant as required for the administration of this chapter.

Source:

S.L. 1999, ch. 482, § 5; 2017, ch. 372, § 9, eff August 1, 2017.

54-52.6-07. Participation in other plans.

A participating member may not participate in any other public sector retirement benefits plan for simultaneous service rendered to the same public sector employer. However, this section does not prohibit a participating member from participating in a retirement plan established by this state or other public sector employer under the federal Internal Revenue Code.

Source:

S.L. 1999, ch. 482, § 5.

54-52.6-08. Credit of transfers.

The board shall promptly credit the plan account of a participating member who makes an election under this chapter to terminate membership in the public employees retirement system under chapter 54-52 with any amount transferred from the public employees retirement system.

Source:

S.L. 1999, ch. 482, § 5.

54-52.6-09. Contributions — Penalty.

  1. Each participating member shall contribute monthly four percent of the monthly salary or wage paid to the participant, and this assessment must be deducted from the participant’s salary in equal monthly installments commencing with the first month of participation in the defined contribution retirement plan established under this chapter. Participating member contributions increase by one percent of the monthly salary or wage paid to the participant beginning with the monthly reporting period of January 2012; with an additional increase of one percent, beginning with the reporting period of January 2013; and with an additional increase of one percent, beginning with the monthly reporting period of January 2014.
  2. The employer shall contribute an amount equal to four and twelve-hundredths percent of the monthly salary or wage of a participating member. Employer contributions increase by one percent of the monthly salary or wage of a participating member beginning with the monthly reporting period of January 2012; with an additional increase of one percent, beginning with the monthly reporting period of January 2013; and with an additional increase of one percent, beginning with the monthly reporting period of January 2014. For members first enrolled after December 31, 2019, the employer contribution includes an additional increase of one and fourteen-hundredths percent. If the employee’s contribution is paid by the employer under subsection 3, the employer shall contribute, in addition, an amount equal to the required employee’s contribution. Monthly, the employer shall pay such contribution into the participating member’s account from the employer’s funds appropriated for payroll and salary or any other funds available for such purposes. If the employer fails to pay the contributions monthly, or fails to otherwise comply with the board’s established wage reporting or payroll reporting process requirements, the employer is subject to a civil penalty of fifty dollars and, as interest, one percent of the amount due for each month of delay or fraction of a month after the payment became due. In lieu of assessing a civil penalty or one percent per month, or both, interest at the actuarial rate of return may be assessed for each month the contributions are delinquent. If contributions are paid within ninety days of the date the contributions became due, penalty and interest to be paid on delinquent contributions may be waived.
  3. Each employer, at its option, may pay the employee contributions required by this section for all compensation earned after December 31, 1999. The amount paid must be paid by the employer in lieu of contributions by the employee. If the employer decides not to pay the contributions, the amount that would have been paid will continue to be deducted from the employee’s compensation. If contributions are paid by the employer, they must be treated as employer contributions in determining tax treatment under this code and the federal Internal Revenue Code. Contributions paid by the employer may not be included as gross income of the employee in determining tax treatment under this code and the federal Internal Revenue Code until they are distributed or made available. The employer shall pay these employee contributions from the same source of funds used in paying compensation to the employee. The employer shall pay these contributions by effecting an equal cash reduction in the gross salary of the employee or by an offset against future salary increases or by a combination of a reduction in gross salary and offset against future salary increases. Employee contributions paid by the employer must be treated for the purposes of this chapter in the same manner and to the same extent as employee contributions made before the date on which employee contributions were assumed by the employer. An employer shall exercise its option under this subsection by reporting its choice to the board in writing.

Source:

S.L. 1999, ch. 482, § 5; 2011, ch. 432, § 10; 2011, ch. 431, § 11; 2013, ch. 431, § 15; 2017, ch. 372, § 10, eff August 1, 2017; 2019, ch. 459, § 5, eff July 1, 2019; 2021, ch. 438, § 3, eff August 1, 2021.

Effective Date.

The 2013 amendment of this section by section 15 of chapter 431, S.L. 2013 became effective July 1, 2013.

54-52.6-09.1. Acceptance of rollovers.

The plan may allow a participating member to transfer or rollover funds from other qualified plans into the member’s account under rules adopted by the board.

Source:

S.L. 2001, ch. 498, § 3.

54-52.6-09.2. Additional employer contributions.

Additional lump sum contributions by an employer to a participating member’s defined contribution retirement plan account may be made if the participating member has not retired and has not received a retirement benefit under this chapter. Contributions may be made in an amount actuarially equivalent to the amounts determined pursuant to chapter 54-52 as follows:

  1. For the conversion of sick leave pursuant to section 54-52-27 if the participating member has four or more years of service.
  2. The equivalent of up to five years of service credit unrelated to any other eligible service as provided in subsection 5 of section 54-52-29 if the participating member has twenty-five or more years of service.

Source:

S.L. 2003, ch. 498, § 18; 2007, ch. 482, § 13.

54-52.6-09.3. Contributions for military service. [Repealed]

Repealed by S.L. 2005, ch. 531, § 20.

54-52.6-09.4. Military service under the Uniformed Services Employment and Reemployment Rights Act — Member retirement credit.

A member re-employed under the Uniformed Services Employment and Re-employment Rights Act of 1994, as amended [Pub. L. 103-353; 108 Stat. 3150; 38 U.S.C. 4301-4333], is entitled to receive retirement credit for the period of qualified military service. The required contribution for the credit, including payment for retiree health benefits, must be made in the same manner and by the same party as would have been made had the employee been continuously employed. If the salary the member would have received during the period of service is not reasonably certain, the member’s average rate of compensation during the twelve-month period immediately preceding the member’s period of service or, if shorter, the period of employment immediately preceding that period, times the number of months of credit being purchased must be used. Employees must be allowed up to three times the period of military service or five years, whichever is less, to make any required payments. This provision applies to all qualifying periods of military service since October 1, 1994. Effective for years after December 31, 2008, compensation for purposes of Internal Revenue Code section 415 [26 U.S.C. 415], as amended, includes military differential wage payments, as defined in Internal Revenue Code section 3401(h) [26 U.S.C. 3401(h)], as amended. Any payments made by the member to receive qualifying credit inconsistent with this provision must be refunded. Employees shall make application to the employer for credit and provide a DD Form 214 to verify service. After December 31, 2006, if a participating member dies while performing qualified military service, as defined in section 414(u)(5) of the Internal Revenue Code [26 U.S.C. 414(u)(5)], as amended, the deceased member’s beneficiaries are entitled to any death benefits, other than credit for years of service for purposes of benefits, which would have been provided under the plan if the participating member had resumed employment and then terminated employment on account of death. The period of that member’s qualified military service is treated as vesting service under the plan.

Source:

S.L. 2005, ch. 531, § 17; 2015, ch. 259, § 14, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 14 of chapter 259, S.L. 2015 became effective August 1, 2015.

Note.

Section 16 of chapter 259, S.L. 2015 provides, “ RETROACTIVE APPLICATION . Sections 2, 8, and 14 (which amended this section) are retroactive in application.”

54-52.6-10. Vesting.

A participating member is immediately one hundred percent vested in that member’s contributions made to that member’s account under this chapter. A participating member vests in the employer contributions made on that member’s behalf to an account under this chapter according to the following schedule:

  1. Upon completion of two years of service, fifty percent.
  2. Upon completion of three years of service, seventy-five percent.
  3. Upon completion of four years of service, one hundred percent.

A participating member also becomes one hundred percent vested in the employer contributions upon reaching age sixty-five. A participating member who was a member or deferred member of the public employees retirement system under chapter 54-52 who makes an election to participate in the defined contribution retirement plan pursuant to this chapter must be credited with the years of service accrued under the public employees retirement system on the effective date of participation in the defined contribution retirement plan for the purpose of meeting vesting requirements for benefits under this section. Any forfeiture as a result of the failure of a participating member to vest in the employer contribution must be deposited in the administrative expenses account.

Source:

S.L. 1999, ch. 482, § 5; 2007, ch. 482, § 14.

54-52.6-11. Refund beneficiaries.

A participating or former participating member may nominate one or more individuals as a refund beneficiary by filing written notice of nomination with the board. If the participating member or former participating member is married at the time of the nomination and the participant’s spouse is not the refund beneficiary for one hundred percent of the account, the nomination is not effective unless the nomination is signed by the participant’s spouse. However, the board may waive this requirement if the spouse’s signature cannot be obtained because of extenuating circumstances.

Source:

S.L. 1999, ch. 482, § 5.

54-52.6-12. Qualified domestic relations orders.

  1. The board or a vendor contracted for by the board shall apportion a participating member’s account in the defined contribution retirement plan under this chapter in accordance with the applicable requirements of any qualified domestic relations order. The board shall review a domestic relations order submitted to it to determine if the domestic relations order is qualified under this section and under rules adopted by the board for determining the qualified status of domestic relations orders, administering distributions, and apportioning accounts under the qualified orders. Upon determination of the domestic relations order as qualified, the board shall notify the participating member, the named alternate payee, and the vendor, if applicable, of its receipt of the qualified domestic relations order.
  2. A “qualified domestic relations order” for purposes of this section means any judgment, decree, or order, including approval of a property settlement agreement, which relates to the provision of child support, spousal support, or marital property rights to a spouse, former spouse, child, or other dependent of a participating member, is made pursuant to a North Dakota domestic relations law, which creates or recognizes the existence of an alternate payee’s right to, or assigns to an alternate payee the right to, receive all or a part of a participating member’s account in the defined contribution retirement plan under this chapter. A qualified domestic relations order may not require the board to provide any type or form of benefit, or any option, not otherwise allowed under this chapter. However, a qualified domestic relations order may require distribution from an account in the defined contribution retirement plan under this chapter notwithstanding that the participating member has not terminated eligible employment. A qualified domestic relations order must specify:
    1. The name and last-known mailing address of the participating member and the name and the mailing address of each alternate payee covered by the order;
    2. The amount or percentage of the participating member’s account to be paid to each alternate payee;
    3. The number of payments or period to which the order applies; and
    4. Each retirement plan to which the order applies.

Source:

S.L. 1999, ch. 482, § 5.

54-52.6-13. Distributions.

  1. A participating member is eligible to receive distribution of that person’s accumulated balance in the plan upon becoming a former participating member.
  2. Upon the death of a participating member or former participating member, the board shall pay the accumulated account balance of that deceased participant to the deceased participant’s refund beneficiary, if any, as provided in this subsection. If the deceased participant designated an alternate refund beneficiary with the surviving spouse’s written consent, the board shall distribute the accumulated balance to the named beneficiary. If the deceased participant named more than one primary beneficiary with the surviving spouse’s written consent, the board shall pay the accumulated account balance to the named primary beneficiaries in the percentages designated by the deceased participant or, if the deceased participant had not designated a percentage for the beneficiaries, in equal percentages. If one or more of the primary beneficiaries has predeceased the deceased participant, the board shall pay the predeceased beneficiary’s share to the remaining primary beneficiaries. If any beneficiary survives the deceased participant, yet dies before distribution of the beneficiary’s share, the beneficiary must be treated as if the beneficiary predeceased the deceased participant. If there is no remaining primary beneficiary, the board shall pay the accumulated account balance of that deceased participant to the contingent beneficiaries in the same manner. If there is no remaining designated beneficiary, the board shall pay the accumulated account balance of that deceased participant to the deceased participant’s estate. If the deceased participant had not designated an alternate refund beneficiary or the surviving spouse is the refund beneficiary, the surviving spouse of the deceased participant may select a form of payment as provided in subdivision d of subsection 3.
  3. A former participating member may elect one or a combination of several of the following methods of distribution of the accumulated balance:
    1. A lump sum distribution to the recipient.
    2. A lump sum direct rollover to another qualified plan, to the extent allowed by federal law.
    3. Periodic distributions, as authorized by the board.
    4. No current distribution, in which case the accumulated balance must remain in the plan until the former participating member or refund beneficiary elects a method or methods of distribution under this section, to the extent allowed by federal law.
  4. If the former participating member’s vested account balance is less than one thousand dollars, the board shall automatically refund the member’s vested account balance upon termination of employment. The member may waive the refund if the member submits a written statement to the board, within one hundred twenty days after termination, requesting that the member’s vested account balance remain in the plan.

A surviving spouse beneficiary may elect one or a combination of several of the methods of distribution provided in subdivisions a, b, or c if the surviving spouse is the sole refund beneficiary. If the surviving spouse is not the sole refund beneficiary, the refund beneficiary may only choose a lump sum distribution of the accumulated balance.

Source:

S.L. 1999, ch. 482, § 5; 2001, ch. 498, § 4; 2003, ch. 498, § 21; 2005, ch. 531, § 18; 2007, ch. 482, § 15; 2013, ch. 432, § 8.

Effective Date.

The 2013 amendment of this section by section 8 of chapter 432, S.L. 2013 became effective July 1, 2013.

54-52.6-14. Disability benefits.

The board shall allow distribution of the participating member’s vested account balance if the board determines that the participating member has become totally and permanently disabled. If approved, the disabled member has the same distribution options as provided in subdivisions a and c of subsection 3 of section 54-52.6-13. However, if the member chooses the periodic distribution option, the member may only receive distributions for as long as the disability continues and the member submits the necessary documentation and undergoes medical testing required by the board, or for as long as the member participates in a rehabilitation program required by the board, or both. If the board determines that a member no longer meets the eligibility definition, the board shall discontinue the disability retirement benefit.

Source:

S.L. 1999, ch. 482, § 5; 2001, ch. 498, § 5.

54-52.6-15. Board to provide information.

The board shall provide information to employees who are eligible to elect to become participating members under this chapter. The information must include at a minimum the employee’s current account balance, the assumption of investment risk under a defined contribution retirement plan, administrative and investment costs, coordination of benefits information, and a comparison of projected retirement benefits under the public employees retirement system under chapter 54-52 and the retirement plan established under this chapter. Notwithstanding any other provision of law, the board is not liable for any election or investment decision made by an employee based upon information provided to an employee under this chapter.

Source:

S.L. 1999, ch. 482, § 5.

54-52.6-16. State income tax deductions.

For the purposes of state income tax, the assessment imposed by this chapter on the employee must be treated in accordance with existing state statutes on state income tax.

Source:

S.L. 1999, ch. 482, § 5.

54-52.6-17. Exemption from state premium tax.

Premiums, consideration for annuities, and membership fees are exempt from premium taxes payable pursuant to section 26.1-03-17.

Source:

S.L. 1999, ch. 482, § 5.

54-52.6-18. Savings clause.

If the board determines that any section of this chapter does not comply with applicable federal statutes or rules, the board shall adopt appropriate terminology with respect to that section as will comply with those federal statutes or rules. Any plan modifications made by the board pursuant to this section are effective until the effective date of any measure enacted by the legislative assembly providing the necessary amendments to this chapter to ensure compliance with the federal statutes or rules.

Source:

S.L. 1999, ch. 482, § 5.

54-52.6-19. Overpayments.

The board has the right of setoff to recover overpayments made under this chapter and to satisfy any claims arising from embezzlement or fraud committed by a participating member, deferred member, refund beneficiary, or other person who has a claim to a distribution or any other benefit from a plan governed by this chapter.

Source:

S.L. 1999, ch. 482, § 5.

54-52.6-20. Correction of records.

The board shall correct errors in the records and actions in plans under this chapter and shall seek to recover overpayments and shall seek to collect underpayments.

Source:

S.L. 1999, ch. 482, § 5.

54-52.6-21. Internal Revenue Code compliance.

The board shall administer the plan in compliance with the following sections of the Internal Revenue Code, as amended, as they apply to governmental plans:

  1. Section 415, including the defined contribution limitations under section 415(c)(1)(A) and (B) of the Internal Revenue Code and the Treasury Regulations thereunder, which are incorporated herein by reference.
    1. In accordance with the defined contribution limitations under section 415(c) of the Internal Revenue Code, annual additions (as defined in section 415(c)(2) of the Internal Revenue Code) under this plan may not exceed the limitations set forth in section 415(c) (1)(A) and (B), as adjusted under section 415(d) of the Internal Revenue Code, effective January first of each year following a regular legislative session.
    2. If a participating member’s aggregate annual additions exceed the defined contribution limitations under section 415(c) of the Internal Revenue Code, the member’s annual additions must be reduced to the extent necessary to comply with section 415(c) of the Internal Revenue Code and the Treasury Regulations thereunder.
  2. The minimum distribution rules under section 401(a)(9) of the Internal Revenue Code and the regulations issued under that provision to the extent applicable to governmental plans. Accordingly, benefits must be distributed or begin to be distributed no later than a member’s required beginning date, and the required minimum distribution rules override any inconsistent provision of this chapter. For a member who attains age seventy and one-half before January 1, 2020, the member’s required beginning date is April first of the calendar year following the later of the calendar year in which the member attains age seventy and one-half or terminates employment. For a member who attains age seventy and one-half after December 31, 2019, the member’s required beginning date is April first of the calendar year following the later of the calendar year in which the member attains age seventy-two or terminates employment.
  3. The annual compensation limitation under section 401(a)(17) of the Internal Revenue Code, as adjusted for cost-of-living increases under section 401(a)(17)(B).
  4. The rollover rules under section 401(a)(31) of the Internal Revenue Code. Accordingly, a distributee may elect to have an eligible rollover distribution, as defined in section 402(c)(4) of the Internal Revenue Code, paid in a direct rollover to an eligible retirement plan, as defined in section 402(c)(8)(B) of the Internal Revenue Code, specified by the distributee.
  5. If the plan of retirement benefits set forth in this chapter is terminated or discontinued, the rights of all affected participating members to accrued retirement benefits under this chapter as of the date of termination or discontinuance is nonforfeitable, to the extent then funded.

Source:

S.L. 2013, ch. 432, § 9; 2015, ch. 259, § 15, eff August 1, 2015; 2021, ch. 439, § 8, eff August 1, 2021.

Effective Date.

The 2015 amendment of this section by section 15 of chapter 259, S.L. 2015 became effective August 1, 2015.

This section became effective July 1, 2013.

CHAPTER 54-53 Upper Great Plains Transportation Institute

54-53-01. Upper great plains transportation institute — Establishment.

There is hereby established an upper great plains transportation institute. Such institute must be administered by and in conjunction with the North Dakota state university of agriculture and applied science. The president and administration of the North Dakota state university of agriculture and applied science are responsible for the selection of personnel for and the administration of the institute.

Source:

S.L. 1967, ch. 396, § 1.

54-53-02. Advisory transportation council — Composition.

  1. There is established a transportation council that shall serve in an advisory capacity to the upper great plains transportation institute. The director of the institute shall serve as the executive secretary of the council. The council shall elect its own chairman. The council membership consists of one representative from and appointed by the following:
    1. The North Dakota chamber of commerce.
    2. The North Dakota public service commission.
    3. The North Dakota farmers union.
    4. The North Dakota grain growers association.
    5. The North Dakota wheat commission.
    6. The North Dakota department of commerce.
    7. The North Dakota grain dealers association.
    8. The North Dakota motor carriers association.
    9. The North Dakota aeronautics commission.
    10. The North Dakota department of transportation.
    11. The North Dakota department of agriculture.
    12. The associated general contractors of North Dakota.
    13. The North Dakota railway industry, appointed by the council.
    14. The North Dakota primary sector of manufacturing, appointed by the council.
    15. The North Dakota association of counties.
    16. The North Dakota league of cities.
    17. The lignite energy council.
    18. A North Dakota member of the dakota transit association.
    19. The North Dakota corn council.
  2. Members of the council shall serve without pay, but they may receive reimbursement for actual and necessary expenses incurred in the performance of their duties, if authorized by the director.
  3. The council shall consult with the institute in matters of policy affecting the administration of this chapter and in the development of transportation in the state of North Dakota. The council shall meet at the call of the chairman or director or upon the written request of three or more members of the council.

Source:

S.L. 1967, ch. 396, § 2; 1991, ch. 95, § 44; 2001, ch. 488, § 49; 2003, ch. 502, § 1; 2007, ch. 489, § 1; 2009, ch. 516, § 1; 2011, ch. 436, § 1.

54-53-03. Purpose — Powers and duties.

The purpose of the institute must be to conduct and supervise research in the field of transportation and logistics in order to facilitate acquisition of a wider knowledge and understanding of marketing factors associated with the geographical location of the state of North Dakota and the upper great plains in the field of transportation and their influence on the socioeconomic systems of the state, region, and country. Research areas must include the study of commodity and other freight movements into and out of the state in order to better know and understand the various factors affecting the marketing of area products and services. The institute shall make public its findings and conclusions in regard thereto together with any suggested solutions. In the administration of its duties under this chapter, the institute shall consult and coordinate with various governmental and nongovernmental agencies, shipper and producer groups, and carriers, in this state and in other states, interested in the field of transportation.

Source:

S.L. 1967, ch. 396, § 3; 2003, ch. 502, § 2.

54-53-04. Gifts and grants.

In order to carry out its duties under this chapter, the institute may contract for and accept private contributions and gifts and grants-in-aid from the federal government and other sources.

Source:

S.L. 1967, ch. 396, § 4.

CHAPTER 54-54 Council on the Arts

54-54-01. Legislative purpose and policy.

It is the finding of the legislative assembly that many of our citizens lack the opportunity to view, enjoy, or participate in living theatrical performances, musical concerts, operas, dance and ballet recitals, art exhibits, examples of fine architecture, and the performing and fine arts generally. It is further found that, with increasing leisure time, the practice and enjoyment of the arts are of increasing importance and that the general welfare of the people of the state will be promoted by giving further recognition to the arts as a vital aspect of our culture and heritage and as a valued means of expanding the scope of our educational programs.

It is declared to be the policy of the state to join with private patrons and with institutions and professional organizations concerned with the arts to ensure that the role of the arts in the life of our communities will continue to grow and will play an evermore significant part in the welfare and educational experience of our citizens.

Source:

S.L. 1967, ch. 397, § 1.

54-54-02. Council — Members — Appointment.

The North Dakota council on the arts consists of nine members, broadly representative of all fields of the performing and fine arts, who are to be appointed by the governor as provided in this chapter, from among the citizens of the state who are widely known for their competence and experience in connection with the performing and fine arts. In making these appointments, due consideration must be given to the recommendations made by representative civic, educational, and professional associations and groups, concerned with or engaged in the production or presentation of the performing and fine arts generally.

Source:

S.L. 1967, ch. 397, § 2; 1979, ch. 577, § 2; 1983, ch. 582, § 3; 1995, ch. 535, § 1.

Cross-References.

Governor’s power to appoint majority of members of council, see N.D.C.C. § 54-07-01.2.

54-54-03. Term of office — Filling vacancies — Chairman — Vice chairman — Expenses.

The term of office of each member is five years; provided, however, that of the members first appointed after August 1, 1995, three must be appointed for terms of two years, three for terms of three years, and three for terms of five years. If a vacancy to be filled occurs otherwise than by the expiration of the term of office of a member of the council, the appointment must be made for the balance of the term only. Other than the chairman, no member of the council who serves a full five-year term is eligible for reappointment during a one-year period following the expiration of the term. The governor shall designate a chairman and a vice chairman from the members of the council who shall serve at the pleasure of the governor. The chairman is the chief executive officer of the council. The members of the council may not receive any compensation for their services, but must be reimbursed for their travel expenses in the same manner and at the same rates as provided by law for other state officials for necessary travel in the performance of their duties as members of the council.

Source:

S.L. 1967, ch. 397, § 3; 1987, ch. 73, § 34; 1987, ch. 661, § 1; 1995, ch. 535, § 2.

54-54-04. Other employees — Appointment — Compensation.

The chairman with the approval of the council may employ such officers, experts, and other employees as may be needed to carry out the provisions of this chapter. The executive director shall serve at the pleasure of the chairman and the chairman shall fix the compensation of the executive director.

Source:

S.L. 1967, ch. 397, § 4; 2005, ch. 38, § 6.

54-54-05. Duties of council.

The duties of the council are:

  1. To stimulate and encourage throughout the state the study and presentation of the performing and fine arts and public interest and participation therein.
  2. To make such surveys as may be deemed advisable of public and private institutions engaged within the state in artistic and cultural activities, including but not limited to, music, theater, dance, painting, sculpture, architecture, and allied arts and crafts, and to make recommendations concerning appropriate methods to encourage participation in and appreciation of the arts to meet the legitimate needs and aspirations of persons in all parts of the state.
  3. To take such steps as may be necessary and appropriate to encourage public interest in the cultural heritage of our state and to expand the state’s cultural resources.
  4. To encourage and assist freedom of artistic expression essential for the well-being of the arts.
  5. To determine the artistic value of property as provided by section 1-08-04.1.

Source:

S.L. 1967, ch. 397, § 5; 1987, ch. 76, § 4.

54-54-06. Hearings — Contracts — Gifts.

The council is hereby authorized and empowered to hold public hearings, to enter into contracts, within the limit of funds available therefor, with individuals, organizations, and institutions for services furthering the educational objectives of the council’s programs; to enter into contracts, within the limit of funds available therefor, with local and regional associations for joint endeavors furthering the educational objectives of the council’s programs; to accept gifts, contributions, and bequests of unrestricted funds from individuals, foundations, corporations, limited liability companies, and other organizations or institutions for the purpose of furthering the educational objectives of the council’s programs; to make and sign any agreements; and to do and perform any acts that may be necessary to carry out the purposes of this chapter. The council may request and may receive from any department, division, board, bureau, commission, or agency of the state such information and data as will enable it to properly carry out its powers and duties.

Source:

S.L. 1967, ch. 397, § 6; 1993, ch. 54, § 106.

54-54-07. Funds from national foundation on the arts.

The council is the official agency of this state to receive and disburse any funds made available by the national foundation on the arts.

Source:

S.L. 1967, ch. 397, § 7.

54-54-08. Legislative intent relating to state funds. [Repealed]

Repealed by S.L. 1971, ch. 520, § 1.

54-54-08.1. Cultural endowment fund — Purposes.

The North Dakota cultural endowment fund is hereby established to improve the intrinsic quality of the lives of the state’s citizens now and in the future through programs approved by the council on the arts. Such programs must:

  1. Increase cultural awareness by the state’s citizens through programs in arts, crafts, theater, ethnic and folk arts, literature, journalism, public media, historic preservation and interpretation, visual arts, and architecture.
  2. Make the items named in subsection 1 more available to the state’s citizens.
  3. Encourage the development of talent in the areas named in subsection 1 within the state.
  4. Preserve and increase understanding of North Dakota’s heritage and future.

Source:

S.L. 1979, ch. 578, § 1.

54-54-08.2. Cultural endowments — Limitations.

Investment of the cultural endowment fund must be under the supervision of the state investment board in accordance with chapter 21-10. Funds will be expended from the cultural endowment fund only to the limits of accrued interest on state general fund appropriations and other public and private funds received. The expenditure of endowment funds must occur at the direction of the North Dakota council on the arts. The council may seek the counsel and assistance of a group or groups of private citizens of the council’s choosing to aid it in arriving at expenditure decisions when private funds are involved. Section 54-54-06 applies to private donations to the cultural endowment fund; provided, that gifts, donations, and bequests can be dedicated as principal of the fund in perpetuity or for a term of years, in which case only the income earned as a result of investment of those funds can be expended pursuant to section 54-54-08.1 and this section.

Source:

S.L. 1979, ch. 578, § 2; 2005, ch. 38, § 7.

54-54-09. Report.

The council shall submit a biennial report as provided in subsection 1 of section 54-06-04. The report is also subject to the requirements of subsections 2, 4, and 5 of section 54-06-04.

Source:

S.L. 1967, ch. 397, § 9; 2003, ch. 459, § 6.

CHAPTER 54-55 Commission on Uniform State Laws

54-55-01. Commission on uniform state laws — Membership.

The commission on uniform state laws consists of an individual engaged in the practice of law in this state, the dean or a full-time member of the faculty of the law school of the university of North Dakota, a law-trained judge of a court of record in this state, a member of the house of representatives and a member of the senate of the legislative assembly, and a member of the legislative council. The attorney general may appoint a member of the commission. The commission also consists of any residents of this state who, because of long service in the cause of uniformity of state legislation, have been elected life members of the national conference of commissioners on uniform state laws, and may also consist of any residents of this state who have been previously appointed to at least five years of service on the commission. Except for the member appointed by the attorney general, the members of the legislative assembly, the member of the legislative council, and life members, commissioners must be appointed by the governor for terms of four years each, commencing on the first day of September following each presidential election, and shall serve until their respective successors are appointed. Commissioners first appointed after July 21, 2011, must be residents of the state. The members of the legislative assembly on the commission must be appointed by the legislative management for a term not to exceed four years as prescribed by the legislative management, and the member of the legislative council must be appointed by the chairman of the legislative management. The term of the member appointed by the attorney general may not extend beyond the term of that attorney general.

Source:

S.L. 1981, ch. 553, § 1; 1987, ch. 662, § 1; 1995, ch. 536, § 1; 2009, ch. 482, § 82; 2011, ch. 437, § 1; 2015, ch. 426, § 1, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 426, S.L. 2015 became effective August 1, 2015.

Law Reviews.

Article: The Uniform Electronic Legal Material Act: “Desirable And Practicable” For North Dakota? 87 N.D. L. Rev. 325 (2011).

54-55-02. Vacancies.

The office of any appointed commissioner becomes vacant upon death, resignation, or failure or refusal to serve. The appointing authority shall make an appointment to fill the vacancy for the unexpired term of the former appointee.

Source:

S.L. 1981, ch. 553, § 2.

54-55-03. Meeting and organization.

The commissioners shall meet at least once each two-year period and shall organize by electing one of their number as chairman and another as secretary. The chairman and secretary shall hold their respective offices for a term of two years and until their successors are elected.

Source:

S.L. 1981, ch. 553, § 3.

54-55-04. Duties of commissioners and commission.

Each commissioner shall attend the annual meeting of the national conference of commissioners on uniform state laws and shall promote uniformity in state laws on those subjects where uniformity may be deemed desirable and practicable. The commission shall also promote as far as practicable the uniform judicial application and construction of all uniform state laws. During the interim between legislative sessions, the commission may submit its recommendations for enactment of uniform and model laws to the legislative management for its review and recommendation. Commissioners shall provide such assistance to the legislative management as the legislative management requests with respect to its review of uniform and model laws. During each biennial legislative session, and at any other time as the commission may deem proper, the commission shall report to the legislative assembly an account of its transactions and its advice and recommendations for legislation. The report must include the recommendations of the legislative management with respect to uniform and model laws recommended by the commission.

Source:

S.L. 1981, ch. 553, § 4; 1985, ch. 576, § 2; 1991, ch. 600, § 15; 2009, ch. 482, § 83.

54-55-05. No compensation for commissioners.

The commissioners shall serve without compensation for services as commissioners. The commissioners who are appointed to the commission and the commissioners who have been elected life members of the national conference, except those who are appointed by virtue of having served five years on the commission but who have not served at least twenty years in the legislative assembly, are entitled to be reimbursed, from moneys appropriated for that purpose, for necessary expenses incurred in performing their duties at the rates provided in sections 44-08-04 and 54-06-09. Warrant-checks for expense reimbursement must be prepared by the office of management and budget upon vouchers submitted by the commissioners.

Source:

S.L. 1981, ch. 553, § 5; 1987, ch. 662, § 2; 1999, ch. 147, § 2.

CHAPTER 54-56 Children’s Services Coordinating Committee [Repealed]

Source:

Repealed by S.L. 2017, ch. 373, § 4, eff August 1, 2017.

54-56-01. Children’s services coordinating committee — Membership. [Repealed]

Source:

S.L. 1989, ch. 681, § 1; 1991, ch. 592, § 44; 1991, ch. 636, § 1; 1991, ch. 714, § 20; 1993, ch. 62, § 17; 1993, ch. 539, § 1; 1997, ch. 43, § 9; 1997, ch. 51, § 39; 2003, ch. 138, § 95; Repealed by 2017, ch. 373, § 4, eff August 1, 2017.

54-56-02. Staff — Support services. [Repealed]

Source:

S.L. 1989, ch. 681, § 2; Repealed by 2017, ch. 373, § 4, eff August 1, 2017.

54-56-03. Functions. [Repealed]

Source:

S.L. 1989, ch. 681, § 3; 1995, ch. 502, § 2; 1997, ch. 43, § 10; 2005, ch. 534, § 1; Repealed by 2017, ch. 373, § 4, eff August 1, 2017.

54-56-04. Charter public corporations — Duties. [Repealed]

Source:

S.L. 1989, ch. 681, § 4; 1991, ch. 98, § 45; 1995, ch. 502, § 3; 1997, ch. 43, § 11; 2005, ch. 534, § 2; Repealed by 2017, ch. 373, § 4, eff August 1, 2017.

54-56-05. Authority to accept and expend funds, grants, or gifts. [Repealed]

Repealed by S.L. 1997, ch. 43, § 13.

54-56-06. Regional or tribal children’s services coordinating committee — Functions. [Repealed]

Source:

S.L. 1997, ch. 43, § 12; 2003, ch. 14, § 6; 2005, ch. 534, § 3; Repealed by 2017, ch. 373, § 4, eff August 1, 2017.

54-56-07. Operating fund balance. [Repealed]

Repealed by S.L. 2005, ch. 534, § 4.

CHAPTER 54-57 Office of Administrative Hearings

54-57-09 Case processing tracking and reporting.

54-57-01. Office of administrative hearings — Agency defined — Administrative agency defined.

  1. A state office of administrative hearings is created.
  2. The office is under the direction of a director of administrative hearings who must be free of any association that would impair the director’s ability to function officially in a fair and objective manner. The director must be an attorney at law in good standing, admitted to the bar in this state, and currently licensed by the state board of law examiners. The director of administrative hearings must be appointed by the governor and confirmed by the senate and shall hold office for a term of six years, the term beginning July first of the year of appointment and ending June thirtieth of the sixth calendar year after appointment.
  3. The director of administrative hearings may preside as an administrative law judge at administrative hearings and may employ or appoint additional administrative law judges to serve in the office as necessary to fulfill the duties of office as described in section 54-57-04 and section 28-32-31 and to provide administrative law judges to preside at administrative hearings as requested by agencies. The director of administrative hearings may employ or appoint only such additional administrative law judges who are attorneys at law in good standing, admitted to the bar in the state, and currently licensed by the state board of law examiners. Administrative law judges employed by the director before August 1, 1995, need not be attorneys at law and may be designated by the director to preside at any administrative proceedings or adjudicative proceedings under section 54-57-03. The director may delegate to an employee the exercise of a specific statutory power or duty as deemed advisable, subject to the director’s control, including the powers and duties of a deputy director. All administrative law judges must be classified employees, except that the director of administrative hearings must be an unclassified employee who only may be removed, during a term of office, for cause. Each administrative law judge must have a demonstrated knowledge of administrative practices and procedures and must be free of any association that would impair the person’s ability to function officially in a fair and objective manner.
  4. The director of administrative hearings may employ the necessary support staff required by the office. Support staff must be classified employees.
  5. The director of administrative hearings shall develop categories of positions in the classified service under class titles for the appointment or employment of administrative law judges and support staff in consultation with and approved by the director of North Dakota human resource management services, including the salary to be paid for each position or category of position.
  6. The director shall file a report with the governor and the state advisory council for administrative hearings not later than the first day of December of each odd-numbered year. The report must provide information regarding all administrative hearings conducted by the office of administrative hearings during the previous biennium. The report must provide information regarding meeting case processing guidelines for each agency, the cost of hearings for each agency, the decisions issued for each agency, and the results of the office of administrative hearings’ service survey.
  7. In this chapter, unless the context or subject matter otherwise requires, “agency” means each board, bureau, commission, department, or other administrative unit of the executive branch of state government whether headed by an appointed or elected official.
  8. In this chapter, unless the context or subject matter otherwise requires, “administrative agency” means that term as defined in section 28-32-01.

Source:

S.L. 1991, ch. 637, § 1; 1995, ch. 313, § 8; 2001, ch. 286, § 21; 2001, ch. 293, § 30; 2003, ch. 493, § 12; 2005, ch. 535, § 1; 2009, ch. 611, § 2.

Notes to Decisions

Appointment of Attorneys as ALJs.

An employee’s petition for a writ of mandamus to compel the Director of the Office of Administrative Hearings to appoint an attorney to preside over the employee’s hearing was properly denied; the employee could have raised the issue on appeal and therefore had a plain, speedy and adequate remedy in the ordinary course of the law. Wutzke v. Hoberg, 2004 ND 42, 675 N.W.2d 179, 2004 N.D. LEXIS 54 (N.D. 2004).

Judicial Review of ALJ Decisions.

Where an agency requests that the Office of Administrative Hearings designate an ALJ to issue a final decision, judicial review of the ALJ’s factual findings should involve the same standard of review used for agency decisions, but the ALJ’s legal conclusions must be reviewed in the same manner as legal conclusions generally, without special deference to the ALJ. North Dakota Sec. Comm'r v. Juran & Moody, Inc. (In re Juran & Moody, Inc.), 2000 ND 136, 613 N.W.2d 503, 2000 N.D. LEXIS 145 (N.D. 2000).

54-57-02. Temporary administrative law judges.

When regularly appointed administrative law judges are not available, the director of administrative hearings may contract on a temporary basis with qualified individuals to serve as administrative law judges for the office of administrative hearings. Temporary administrative law judges are not employees of the state.

Source:

S.L. 1991, ch. 637, § 2; 1995, ch. 313, § 9.

54-57-03. Hearings before administrative law judges.

  1. Notwithstanding the authority granted in chapter 28-32 allowing agency heads or other persons to preside in an administrative proceeding, all adjudicative proceedings of administrative agencies under chapter 28-32, except those of the public service commission, the industrial commission, the insurance commissioner, the department of water resources, the department of transportation, job service North Dakota, and the labor commissioner, must be conducted by the office of administrative hearings in accordance with the adjudicative proceedings provisions of chapter 28-32 and any rules adopted pursuant to chapter 28-32. But, appeals hearings pursuant to section 61-03-22 and drainage appeals from water resource boards to the department of water resources pursuant to chapter 61-32 must be conducted by the office of administrative hearings. Additionally, hearings of the department of corrections and rehabilitation for the parole board in accordance with chapter 12-59, regarding parole violations; job discipline and dismissal appeals to the board of higher education; Individuals With Disabilities Education Act and section 504 due process hearings of the superintendent of public instruction; and chapter 37-19.1 veterans’ preferences hearings for any agency must be conducted by the office of administrative hearings in accordance with applicable laws.
  2. The agency head shall make a written request to the director requesting the designation of an administrative law judge to preside for each administrative proceeding or adjudicative proceeding to be held.
  3. Informal disposition of an administrative proceeding or adjudicative proceeding may be made by an agency at any time before or after the designation of an administrative law judge from the office of administrative hearings.
  4. If a party to an administrative proceeding or adjudicative proceeding is in default, the agency may issue a default order and a written notice of default, including a statement of the grounds for default, prior to the hearing. The agency shall determine all the issues involved. If issued, the default notice and order must be served upon all the parties and the administrative law judge, if one has been designated to preside. After service of the default notice and order, if a hearing is necessary to complete the administrative action with or without the participation of the party in default, an administrative law judge from the office of administrative hearings must preside.
  5. When designating administrative law judges to preside in an administrative proceeding or adjudicative proceeding, the director shall attempt to assign an administrative law judge having expertise in the subject matter to be dealt with.
  6. The director of administrative hearings may assign an administrative law judge to preside in an administrative proceeding or adjudicative proceeding, upon request, to any agency exempted from the provisions of this section, to any agency, or part of any agency, that is not an administrative agency subject to the provisions of chapter 28-32, to any unit of local government in this state, to any tribal government in this state, to the judicial branch, or to any agency to conduct a rulemaking hearing.

Source:

S.L. 1991, ch. 637, § 3; 1993, ch. 540, § 1; 1995, ch. 313, § 10; 2001, ch. 293, § 31; 2001, ch. 296, § 4; 2003, ch. 102, § 5; 2003, ch. 561, § 3; 2009, ch. 611, § 3; 2021, ch. 488, § 23, eff August 1, 2021.

Notes to Decisions

Finality.

Administrative law judge’s (ALJ) decision that plaintiff was unable to return to his pre-injury employment would be deemed a recommendation, where record did not show that workers compensation bureau’s request for ALJ to preside over proceeding asked ALJ to issue final order. Blanchard v. North Dakota Workers Compensation Bureau, 1997 ND 118, 565 N.W.2d 485, 1997 N.D. LEXIS 129 (N.D. 1997).

Where the Workers Compensation Bureau requested a hearing officer to issue recommended findings of fact and conclusions of law with regard to whether the claimant was entitled to a higher permanent partial impairment award, the officer’s decision was a recommendation, not a final order. Feist v. North Dakota Workers Compensation Bureau (Northern Bottling Co.), 1997 ND 177, 569 N.W.2d 1, 1997 N.D. LEXIS 196 (N.D. 1997).

Hearing Officer.

Board of podiatric medicine’s action in adopting recommendations of hearing officer appointed pursuant to this section did not mean the board was acting as a “hearing officer” under former N.D.C.C. § 28-32-12.2(1) (now N.D.C.C. § 28-32-28). Gale v. North Dakota Bd. of Podiatric Med., 1997 ND 83, 562 N.W.2d 878, 1997 N.D. LEXIS 85 (N.D. 1997).

54-57-03.1. Hearings after judgment.

The office of administrative hearings may not hold hearings on the same issue involving the same parties as the original hearing after a judgment has been rendered by a court concerning that issue unless authorized to or directed to by that court.

Source:

S.L. 1997, ch. 47, § 3.

54-57-04. Duties of administrative law judges.

All administrative law judges shall comply with the duties of hearing officers under section 28-32-31 for all hearings of administrative agencies under chapter 28-32, as well as for all hearings of administrative agencies not under chapter 28-32, in accordance with applicable laws.

Source:

S.L. 1991, ch. 637, § 4; 1995, ch. 313, § 11; 2001, ch. 293, § 32.

54-57-05. Uniform rules of administrative practice or procedure — Effective date — Administrative law judge rules.

  1. The director of administrative hearings shall adopt, in accordance with chapter 28-32, rules of administrative hearings practice or procedure which implement chapter 28-32 and which aid in the course and conduct of all administrative hearings and related proceedings conducted by administrative agencies under chapter 28-32. The uniform rules must be used by all administrative agencies subject to chapter 28-32 which do not have their own rules of administrative hearings practice or procedure governing the course and conduct of hearings. If an administrative agency’s rules are silent on any aspect of the agency’s administrative hearings practice or procedure, the applicable uniform rule governs.
  2. The director of administrative hearings may adopt rules to further establish qualifications for administrative law judges; to establish procedures for requesting and designating administrative law judges; and to facilitate the performance of duties and responsibilities conferred by this chapter. Any rules adopted by the director of administrative hearings pursuant to this subsection must be adopted in accordance with chapter 28-32.

Source:

S.L. 1991, ch. 637, § 5; 1995, ch. 313, § 12.

54-57-06. Transfer and transition provisions. [Repealed]

Repealed by S.L. 1995, ch. 313, § 14.

54-57-07. Compensation for provision of administrative law judges — Special fund established — Continuing appropriation.

  1. The office of administrative hearings shall require payment for services rendered by any administrative law judge provided by it to any agency, to any unit of local government in this state, to any tribal government in this state, or to the judicial branch, in the conduct of an administrative hearing and related proceedings, and those entities must make the required payment to the office. Payment must include payment for support staff necessary to render administrative law judge services. Moneys received by the office of administrative hearings in payment for providing an administrative law judge to conduct an administrative hearing and related proceedings must be deposited into the operating fund of the office of administrative hearings.
  2. The office of administrative hearings shall require payment for mileage, meals, and lodging in connection with services rendered by an administrative law judge provided to any agency, to any unit of local government in this state, to any tribal government in this state, or to the judicial branch, in the conduct of an administrative hearing and related proceedings, and those entities must make the required payment to the office. Payment for meals and lodging must be in the amounts allowable under section 44-08-04. Payment for mileage when using state vehicles must be in amounts set for user charges under section 24-02-03.5. All other payments must be in amounts allowed for other state officials and employees. Either general fund or special fund moneys, or other income, may be used for the payment of mileage, meals, and lodging under this subsection.
  3. A special fund is established in the state treasury and designated as the administrative hearings fund. The office of administrative hearings shall deposit in the fund all moneys received by it in payment for providing services rendered by any administrative law judge in the conduct of an administrative hearing and related proceedings under this chapter, as well as all moneys received by the office in payment for mileage, meals, and lodging in connection with providing any administrative law judge to conduct an administrative hearing and related proceedings. The moneys in the fund are a standing and continuing appropriation and are appropriated, as necessary, for the following purposes:
    1. For the office of administrative hearings to pay for salaries, wages, benefits, operating expenses, and equipment, including payment to temporary administrative law judges, as necessary, for the purpose of providing requested administrative law judges to agencies, to any unit of local government in this state, to any tribal government in this state, or to the judicial branch.
    2. For the office of administrative hearings to pay mileage, meals, and lodging to any administrative law judges, as necessary, in connection with the services to be provided under this chapter.

Source:

S.L. 1991, ch. 637, § 7; 1993, ch. 540, § 2; 1995, ch. 243, § 2; 1995, ch. 313, § 13; 1997, ch. 47, § 4; 1997, ch. 469, § 1.

54-57-08. Advisory council.

There is created a state advisory council for administrative hearings. The advisory council must be a committee or subcommittee of the state bar association of North Dakota, appointed by its president. The advisory council shall meet with the director at least semiannually and shall advise the director on policy matters affecting the office of administrative hearings and on rules adopted by the director.

Source:

S.L. 1991, ch. 637, § 8.

54-57-09 Case processing tracking and reporting.

  1. The office of administrative hearings shall track the time elapsed between the date the office receives a file from workforce safety and insurance and the date of the administrative law judge’s decision, and monthly calculate a rolling six-month average of time elapsed.
  2. The office of administrative hearings shall adopt case processing standards and policies, including provisions intended to meet a goal of an average of two hundred fifteen days or less per case. Administrative law judges have an average of two hundred fifteen days to issue a decision for any injured worker case from the date the office of administrative hearings receives a file from workforce safety and insurance. The date of the last assigned file is the date of assignment for all consolidated files.
  3. The office of administrative hearings and workforce safety and insurance shall report statistical information regarding results under the case processing standards and policies to the legislative management and the state advisory council each quarter. The reports must include the information required under subsection 1.

Source:

S.L. 2019, ch. 466, § 1, eff August 1, 2019.

CHAPTER 54-58 Tribal-State Gaming Compact

54-58-01. Tribal-state gaming compact — Definition.

A tribal-state gaming compact is a duly executed agreement between the state and a federally recognized Indian tribe as approved by the secretary of the department of interior of the United States pursuant to the Indian Gaming Regulatory Act of 1988 [Pub. L. 100-497; 102 Stat. 2467; 25 U.S.C. 2701 et seq.].

Source:

S.L. 1997, ch. 470, § 1.

54-58-02. Tribal gaming records not subject to disclosure — Exceptions.

Except as provided in each tribal-state gaming compact, all tribal gaming records, including trade secret and proprietary information as defined in section 44-04-18.4, submitted to an agency of this state are confidential and are not public records subject to section 44-04-18 and section 6 of article XI of the Constitution of North Dakota.

Source:

S.L. 1997, ch. 470, § 2.

54-58-03. Tribal-state gaming compact — Creation, renewals, and amendments.

The governor or the governor’s designee may represent the state in any gaming negotiation in which the state is required to participate pursuant to 25 U.S.C. 2701 et seq. by any federally recognized Indian tribe and, on behalf of the state, may execute a gaming compact between the state and a federally recognized Indian tribe, subject to the following:

  1. If the legislative assembly is not in session at the time gaming negotiations are being conducted, the chairman and vice chairman of the legislative management or the designee of the chairman or vice chairman may attend all negotiations and brief the legislative management on the status of the negotiations.
  2. If the legislative assembly is in session at the time negotiations are being conducted, the majority and minority leaders of both houses, or their designees, may attend all negotiations and brief their respective houses on the status of the negotiations.
  3. The compact may authorize an Indian tribe to conduct gaming that is permitted in the state for any purpose by any person, organization, or entity.
  4. For the purposes of this chapter, the term “gaming that is permitted in the state for any purpose by any person, organization, or entity” includes any game of chance that any Indian tribe was permitted to conduct under a tribal-state gaming compact that was in effect on August 1, 1997.
  5. The compact may not authorize gaming to be conducted by an Indian tribe at any off-reservation location not permitted under a tribal-state gaming compact in effect on August 1, 1997, except that in the case of the tribal-state gaming compact between the Turtle Mountain Band of Chippewa and the state, gaming may be conducted on land within Rolette County held in trust for the Band by the United States government which was in trust as of the effective date of the Indian Gaming Regulatory Act of 1988 [Pub. L. 100-497; 102 Stat. 2467; 25 U.S.C. 2701 et seq.].
  6. The compact may not obligate the state to appropriate state funds; provided, however, the state may perform services for reimbursement.
  7. The negotiations between the tribe and the state must address the possibility of a mutual effort of the parties to address the issue of compulsive gambling.
  8. If the legislative assembly is not in session when the negotiations are concluded, the governor shall forward a copy of the compact as finally negotiated to each member of the legislative management at least twenty-one days before the compact is signed.
  9. If the legislative assembly is in session when the negotiations are concluded, the governor shall forward a copy of the compact as finally negotiated to each member of the legislative assembly at least twenty-one days before the compact is signed.
  10. Before execution of any proposed tribal-state gaming compact or amendment thereto, the governor shall conduct one public hearing on the proposed compact or amendment.

Source:

S.L. 1997, ch. 470, § 3; 2009, ch. 482, § 84.

CHAPTER 54-59 Information Technology Department

54-59-01. Definitions.

As used in this chapter:

  1. “Agency” or “entity” does not include any agricultural commodity promotion group or any occupational or professional board.
  2. “Cybersecurity” means processes or capabilities, wherein, systems, communications, and information are protected and defended against damage, unauthorized use or modification, and exploitation.
  3. “Cybersecurity strategy” means a vision, plan of action, or guiding principles. Unless otherwise defined in this chapter, the term does not mean an associated operational plan.
  4. “Department” means the information technology department.
  5. “Information technology” means the use of hardware, software, services, and supporting infrastructure to manage and deliver information using voice, data, and video.
  6. “Network services” means the equipment, software, and services necessary to transmit voice, data, or video.

Source:

S.L. 1999, ch. 483, § 1; 2019, ch. 468, § 1, eff August 1, 2019.

54-59-02. Information technology department — Responsibility — Public policy.

The information technology department is established with the responsibility for all wide area network services planning, selection, and implementation for all state agencies, including institutions under the control of the board of higher education, counties, cities, and school districts in this state. With respect to a county, city, or school district, wide area network services are those services necessary to transmit voice, data, or video outside the county, city, or school district. In exercising its powers and duties, the department is responsible for computer support services, host software development, statewide communications services, standards for providing information to other state agencies and the public through the internet, technology planning, process redesign, and quality assurance. The department may not exercise its powers and duties in a manner that competes or otherwise interferes with the provision of telecommunications service to a private, charitable, or nonprofit entity by a privately or cooperatively owned telecommunications company.

Source:

S.L. 1999, ch. 483, § 2; 2003 ch. 503, § 2; 2003 Sp., ch. 665, § 17.

54-59-02.1. Prioritization of proposed major information technology projects.

The department shall submit information regarding proposed major information technology projects for executive branch state agencies, departments, and institutions, excluding institutions under control of the state board of higher education and agencies of the judicial and legislative branches to the state information technology advisory committee. The committee shall review the projects and rank those projects that receive the committee’s affirmative recommendation. The chief information officer shall submit recommendations of the committee regarding the prioritization of major information technology projects to the information technology committee, the office of management and budget, and the appropriations committees of the legislative assembly. The judicial and legislative branches shall notify biennially the committee on their major information technology projects and priorities.

Source:

S.L. 2003 Sp., ch. 665, § 16; 2007, ch. 490, § 2.

54-59-02.2. Distributed ledger technologies — Authorization — Pilot program — Report.

The department shall research and develop the use of distributed ledger-enabled platform technologies, such as blockchains, for computer-controlled programs, data transfer and storage, and program regulation to protect against falsification, improve internal data security, and identify external hacking threats. Research must include efforts to protect the privacy of personal identifying information maintained within distributed ledger programs. The department shall select a state agency, upon the request of the state agency, to serve as a pilot program for the implementation and use of distributed ledger-enabled platform technologies. Before June first of each even-numbered year, the chief information officer shall report to the legislative management regarding the implementation of distributed ledger technologies.

Source:

S.L. 2019, ch. 469, § 1, eff August 1, 2019.

54-59-03. Chief information officer of the state.

The governor shall appoint the chief information officer of the state. The governor shall appoint the chief information officer on the basis of education, experience, and other qualifications in information technology and administration. The position of chief information officer is not a classified position. The chief information officer serves at the pleasure of the governor. The governor shall set the salary of the chief information officer within the limits of legislative appropriations.

Source:

S.L. 1999, ch. 483, § 3.

54-59-04. Duties of chief information officer.

The chief information officer shall:

  1. Administer the department.
  2. Employ any personnel determined to be necessary to carry out the responsibilities of the department and duties as prescribed by law.
  3. Fix the salaries of all employees within the department, within the limits of legislative appropriation. All personnel within the department are entitled to actual and necessary travel expenses at the same rate as for other employees of the state.

Source:

S.L. 1999, ch. 483, § 4.

54-59-05. Powers and duties of department. [Effective through July 31, 2023]

The department:

  1. Shall provide, supervise, and regulate information technology of all executive branch state entities, excluding the institutions under the control of the state board of higher education and the veterans’ home.
  2. Shall provide network services in a way that ensures the network requirements of a single entity do not adversely affect the functionality of the whole network, facilitates open communications with the citizens of the state, minimizes the state’s investment in human resources, accommodates an ever-increasing amount of traffic, supports rapid detection and resolution of problems, protects the network infrastructure from damage and security breaches, provides for the aggregation of data, voice, video, and multimedia into a statewide transport mechanism or backbone, and provides for the network support for the entity to carry out its mission.
  3. May review and approve additional network services that are not provided by the department.
  4. May purchase, finance the purchase, or lease equipment, software, or implementation services or replace, including by trade or resale, equipment or software as may be necessary to carry out this chapter. With the exception of agreements entered related to the statewide interoperable radio network, an agreement to finance the purchase of software, equipment, or implementation services may not exceed a period of five years. The department shall submit any intended financing proposal for the purchase of software, equipment, or implementation services under this subsection, which is in excess of one million dollars, to the legislative assembly or the budget section if the legislative assembly is not in session before executing a financing agreement. Any request considered by the budget section must comply with section 54-35-02.9. If the legislative assembly or the budget section does not approve the execution of a financing agreement, the department may not proceed with the proposed financing arrangement. With the exception of financing for the statewide interoperable radio network, the department may finance the purchase of software, equipment, or implementation services only to the extent the purchase amount does not exceed seven and one-half percent of the amount appropriated to the department during that biennium.
  5. Shall review requests for lease, purchase, or other contractual acquisition of information technology as required by this subsection. Each executive branch agency or institution, excluding the institutions under the control of the board of higher education, shall submit to the department, in accordance with guidelines established by the department, a written request for the lease, purchase, or other contractual acquisition of information technology. The department shall review requests for conformance with the requesting entity’s information technology plan and compliance with statewide policies and standards. If the request is not in conformance or compliance, the department may disapprove the request or require justification for the departure from the plan or statewide policy or standard.
  6. Shall provide information technology, including assistance and advisory service, to the executive, legislative, and judicial branches. If the department is unable to fulfill a request for service from the legislative or judicial branch, the information technology may be procured by the legislative or judicial branch within the limits of legislative appropriations.
  7. Shall request and review information, including project startup information summarizing the project description, project objectives, business need or problem, cost-benefit analysis, and project risks and a project closeout information summarizing the project objectives achieved, project budget and schedule variances, and lessons learned, regarding any major information technology project of an executive branch agency. The department shall present the information to the information technology committee on request of the committee.
  8. May request and review information regarding any information technology project of an executive branch agency with a total cost of between one hundred thousand and five hundred thousand dollars as determined necessary by the department. The department shall present the information to the information technology committee on request of the committee.
  9. Shall study emerging technology and evaluate its impact on the state’s system of information technology.
  10. Shall develop guidelines for reports to be provided by each agency of the executive, legislative, and judicial branches, excluding the institutions under the control of the board of higher education, on information technology in those entities.
  11. Shall collaborate with the state board of higher education on guidelines for reports to be provided by institutions under control of the state board of higher education on information technology in those entities.
  12. Shall perform all other duties necessary to carry out this chapter.
  13. May provide wide area network services to a state agency, city, county, school district, or other political subdivision of this state. The information technology department may not provide wide area network service to any private, charitable, or nonprofit entity except the information technology department may continue to provide the wide area network service the department provided to the private, charitable, and nonprofit entities receiving services from the department on January 1, 2003.
  14. Shall assure proper measures for security, firewalls, and internet protocol addressing at the state’s interface with other facilities.
  15. Notwithstanding subsection 13, may provide wide area network services for a period not to exceed four years to an occupant of a technology park associated with an institution of higher education or to a business located in a business incubator associated with an institution of higher education.
  16. Shall advise and oversee cybersecurity strategy for all executive branch state agencies, including institutions under the control of the state board of higher education, counties, cities, school districts, or other political subdivisions. For purposes of this subsection, the department shall consult with the attorney general  on cybersecurity strategy.
  17. Shall advise and consult with the legislative and judicial branches regarding cybersecurity strategy.
  18. Notwithstanding chapter 54-40.2, may enter a memorandum of understanding with other state, local, tribal, or territorial governments of the United States for purposes of ensuring the confidentiality, availability, and integrity of state, local, and tribal information systems and data, including consulting, developing cybersecurity strategy, prevention of cybersecurity incidents, and response strategies to cybersecurity incidents. The department may charge an amount equal to the cost of the services rendered by the department to all agencies that receive and expend moneys from other than the general fund.
  19. Notwithstanding chapter 54-40.2, may enter a mutual aid agreement with other state, local, tribal, or territorial governments of the United States agreeing to the reciprocal exchange of resources and services for mutual benefit of the parties related to cybersecurity efforts for the purposes of responding to or mitigating active cybersecurity incidents. The department may receive in-kind benefits that reduce cybersecurity risks to information technology or shall charge an amount equal to the cost of the services rendered by the department to all agencies that receive and expend moneys from other than the general fund.

Source:

S.L. 1999, ch. 483, § 5; 2001, ch. 500, § 2; 2003, ch. 18, § 24; 2003 ch. 503, §§ 3, 4; 2003 Sp., ch. 665, §§ 18, 19; 2005, ch. 49, § 8; 2007, ch. 491, § 3; 2007, ch. 154, § 4; 2009, ch. 482, § 98; 2009, ch. 517, § 1; 2013, ch. 412, § 2; 2017, ch. 247, § 3, eff July 1, 2017; 2019, ch. 438, § 17, eff August 1, 2019; 2019, ch. 468, § 2, eff August 1, 2019; 2021, ch. 444, § 1, eff May 10, 2021; 2021, ch. 35, § 5, eff July 1, 2021; 2021, ch. 49, § 6, eff July 1, 2021.

Effective Date.

The 2013 amendment of this section by section 2 of chapter 412, S.L. 2013 became effective August 1, 2013.

Note.

Section 54-59-05 was amended 3 times by the 2021 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 5 of Chapter 35, Session Laws 2021 , Senate Bill 2007; Section 1 of Chapter 444, Session Laws 2021, House Bill 1417; and Section 6 of Chapter 49, Session Laws 2021, Senate Bill 2021.

Section 54-59-05 was amended 2 times by the 2019 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 17 of Chapter 438, Session Laws 2019, Senate Bill 2055; and Section 2 of Chapter 468, Session Laws 2019, Senate Bill 2110.

54-59-05. Powers and duties of department. [Effective August 1, 2023]

The department:

  1. Shall provide, supervise, and regulate information technology of all executive branch state entities, excluding the institutions under the control of the state board of higher education and the veterans’ home.
  2. Shall provide network services in a way that ensures the network requirements of a single entity do not adversely affect the functionality of the whole network, facilitates open communications with the citizens of the state, minimizes the state’s investment in human resources, accommodates an ever-increasing amount of traffic, supports rapid detection and resolution of problems, protects the network infrastructure from damage and security breaches, provides for the aggregation of data, voice, video, and multimedia into a statewide transport mechanism or backbone, and provides for the network support for the entity to carry out its mission.
  3. May review and approve additional network services that are not provided by the department.
  4. May purchase, finance the purchase, or lease equipment, software, or implementation services or replace, including by trade or resale, equipment or software as may be necessary to carry out this chapter. An agreement to finance the purchase of software, equipment, or implementation services may not exceed a period of five years. The department shall submit any intended financing proposal for the purchase of software, equipment, or implementation services under this subsection, which is in excess of one million dollars, to the legislative assembly or the budget section if the legislative assembly is not in session before executing a financing agreement. Any request considered by the budget section must comply with section 54-35-02.9. If the legislative assembly or the budget section does not approve the execution of a financing agreement, the department may not proceed with the proposed financing arrangement. The department may finance the purchase of software, equipment, or implementation services only to the extent the purchase amount does not exceed seven and one-half percent of the amount appropriated to the department during that biennium.
  5. Shall review requests for lease, purchase, or other contractual acquisition of information technology as required by this subsection. Each executive branch agency or institution, excluding the institutions under the control of the board of higher education, shall submit to the department, in accordance with guidelines established by the department, a written request for the lease, purchase, or other contractual acquisition of information technology. The department shall review requests for conformance with the requesting entity’s information technology plan and compliance with statewide policies and standards. If the request is not in conformance or compliance, the department may disapprove the request or require justification for the departure from the plan or statewide policy or standard.
  6. Shall provide information technology, including assistance and advisory service, to the executive, legislative, and judicial branches. If the department is unable to fulfill a request for service from the legislative or judicial branch, the information technology may be procured by the legislative or judicial branch within the limits of legislative appropriations.
  7. Shall request and review information, including project startup information summarizing the project description, project objectives, business need or problem, cost-benefit analysis, and project risks and a project closeout information summarizing the project objectives achieved, project budget and schedule variances, and lessons learned, regarding any major information technology project of an executive branch agency. The department shall present the information to the information technology committee on request of the committee.
  8. May request and review information regarding any information technology project of an executive branch agency with a total cost of between one hundred thousand and five hundred thousand dollars as determined necessary by the department. The department shall present the information to the information technology committee on request of the committee.
  9. Shall study emerging technology and evaluate its impact on the state’s system of information technology.
  10. Shall develop guidelines for reports to be provided by each agency of the executive, legislative, and judicial branches, excluding the institutions under the control of the board of higher education, on information technology in those entities.
  11. Shall collaborate with the state board of higher education on guidelines for reports to be provided by institutions under control of the state board of higher education on information technology in those entities.
  12. Shall perform all other duties necessary to carry out this chapter.
  13. May provide wide area network services to a state agency, city, county, school district, or other political subdivision of this state. The information technology department may not provide wide area network service to any private, charitable, or nonprofit entity except the information technology department may continue to provide the wide area network service the department provided to the private, charitable, and nonprofit entities receiving services from the department on January 1, 2003.
  14. Shall assure proper measures for security, firewalls, and internet protocol addressing at the state’s interface with other facilities.
  15. Notwithstanding subsection 13, may provide wide area network services for a period not to exceed four years to an occupant of a technology park associated with an institution of higher education or to a business located in a business incubator associated with an institution of higher education.
  16. Shall advise and oversee cybersecurity strategy for all executive branch state agencies, including institutions under the control of the state board of higher education, counties, cities, school districts, or other political subdivisions. For purposes of this subsection, the department shall consult with the attorney general on cybersecurity strategy.
  17. Shall advise and consult with the legislative and judicial branches regarding cybersecurity strategy.
  18. Notwithstanding chapter 54-40.2, may enter a memorandum of understanding with other state, local, tribal, or territorial governments of the United States for purposes of ensuring the confidentiality, availability, and integrity of state, local, and tribal information systems and data, including consulting, developing cybersecurity strategy, prevention of cybersecurity incidents, and response strategies to cybersecurity incidents. The department may charge an amount equal to the cost of the services rendered by the department to all agencies that receive and expend moneys from other than the general fund.
  19. Notwithstanding chapter 54-40.2, may enter a mutual aid agreement with other state, local, tribal, or territorial governments of the United States agreeing to the reciprocal exchange of resources and services for mutual benefit of the parties related to cybersecurity efforts for the purposes of responding to or mitigating active cybersecurity incidents. The department may receive in-kind benefits that reduce cybersecurity risks to information technology or shall charge an amount equal to the cost of the services rendered by the department to all agencies that receive and expend moneys from other than the general fund.

54-59-06. Business plan.

The department shall develop and maintain a business plan. The business plan must:

  1. Define the department’s overall organization, mission, and delivery of services.
  2. Define the department’s short-term and long-term goals and objectives based on customer needs.
  3. Outline the strategies and activities necessary to meet the goals and objectives of the department while improving the efficiency of the department and improving service to customers.
  4. Define rates and funding mechanisms necessary to finance the proposed activities of the department.
  5. Define a method for evaluating progress toward the goals outlined in the business plan.
  6. Determine the specific strategies and processes to ensure that agencies share information, systems, and the statewide network.
  7. Address the processes that will be put in place to ensure that the department exercises its powers and duties with minimal delay, cost, and procedural burden to an entity receiving services from the department; to ensure that the department provides prompt, high-quality services to an entity receiving services from the department; to ensure that an entity receiving services from the department is aware of the technology available and to ensure training on its use; and to foster information technology innovation by state entities.

Source:

S.L. 1999, ch. 483, § 6; 2001, ch. 500, § 3.

54-59-07. State information technology advisory committee.

The state information technology advisory committee consists of the chief information officer; the commissioner of higher education or the commissioner’s designee; the attorney general or the attorney general’s designee; the secretary of state or the secretary of state’s designee; the tax commissioner or the commissioner’s designee; the chief justice of the supreme court or the chief justice’s designee; two members of the legislative assembly appointed by the legislative management, of which one member must be the chairman of the information technology committee; a minimum of eight members representing state agencies, appointed by the governor; and two members with technology management expertise representing private industry, appointed by the governor. The appointees of the governor serve at the pleasure of the governor. The chief information officer and chairman of the information technology committee shall serve as co-chairmen of the state information technology advisory committee. Additional members may be asked to participate at the request of the chairmen. The department shall provide staff services to the committee. The members of the committee representing private industry are entitled to be compensated for time spent in attendance at meetings of the committee and for other travel as approved by the chairmen of the committee at the rate of sixty-two dollars and fifty cents per day and are entitled to reimbursement for actual and necessary expenses incurred in the same manner as other state officials. The compensation and expenses are to be paid from appropriations for the department. The committee shall advise the department regarding statewide information technology planning and budgeting, services of the information technology department, and statewide information technology initiatives and policy and shall review reports on major information technology projects as required by this chapter and policies, standards, and guidelines developed by the department. The chief information officer shall submit recommendations of the committee regarding information technology issues to the information technology committee for its consideration.

Source:

S.L. 1999, ch. 483, § 7; 2001, ch. 500, § 5; 2003, ch. 503, § 5; 2005, ch. 536, § 1; 2007, ch. 490, § 3; 2009, ch. 482, § 85; 2021, ch. 49, § 7, eff July 1, 2021.

54-59-08. Required use of wide area network services.

Each state agency and institution that desires access to wide area network services and each county, city, and school district that desires access to wide area network services to transmit voice, data, or video outside that county, city, or school district shall obtain those services from the department. The chief information officer may exempt from the application of this section a county, city, or school district that demonstrates its current wide area network services are more cost-effective for or more appropriate for the specific needs of that county, city, or school district than wide area network services available from the department. For purposes of enhanced 9-1-1 and next generation 9-1-1 communications services, governmental entities are exempt from the provisions of this section. In selecting enhanced 9-1-1 and next generation 9-1-1 communication network providers, governmental entities shall select providers that are cost-effective, demonstrably reliable, and which follow interoperable standards set by the emergency services communications coordinating committee.

Source:

S.L. 1999, ch. 483, § 8; 2009, ch. 517, § 2; 2013, ch. 435, § 1.

Effective Date.

The 2013 amendment of this section by section 1 of chapter 435, S.L. 2013 became effective August 1, 2013.

54-59-09. Information technology standards.

Based on information from state agencies and institutions, the department and the office of management and budget shall develop statewide information technology policies, standards, and guidelines. The policies, standards, and guidelines must recognize the uniqueness of certain agencies and state which agencies are included or exempted from the policies, standards, and guidelines. The policies, standards, and guidelines must be reviewed by the state information technology advisory committee. Each executive branch state agency and institution, excluding the institutions under the control of the board of higher education, shall comply with the policies and standards developed by the department and the office of management and budget unless the chief information officer exempts an agency from the policies, standards, and guidelines to address situations unique to that agency. Unless an exemption is granted by the chief information officer, each entity receiving wide area network services provided by the department shall comply with the policies and standards developed by the department with respect to access to or use of wide area network services.

Source:

S.L. 1999, ch. 483, § 9; 2003 Sp., ch. 665, § 20; 2007, ch. 154, § 5; 2007, ch. 490, § 4.

54-59-10. Information technology coordinators.

Each agency or institution shall appoint an information technology coordinator. The coordinator shall maintain liaison with the department and assist the department in areas related to making the most economical use of information technology.

Source:

S.L. 1999, ch. 483, § 10.

54-59-11. Information technology plans.

Each executive branch state agency or institution, excluding the institutions under the control of the board of higher education, unless the chief information officer grants an exemption, shall participate in the information technology planning process based on guidelines developed by the department. The plan must be submitted to the department by August fifteenth of each even-numbered year unless the chief information officer grants an extension. The department shall review each entity’s plan for compliance with statewide information technology policies and standards and may require an entity to change its plan to comply with statewide policies or standards or to resolve conflicting directions among plans. Agencies of the judicial and legislative branches shall file their information technology plans with the department by August fifteenth of each even-numbered year. Based on the plans, the department shall prepare a statewide information technology plan and distribute copies of that plan to members of the legislative assembly as requested by the legislative council. The statewide information technology plan must be developed with emphasis on long-term strategic goals, objectives, and accomplishments.

Source:

S.L. 1999, ch. 483, § 11; 2001, ch. 500, § 6; 2003, ch. 503, § 6; 2007, ch. 491, § 4; 2007, ch. 154, § 6; 2009, ch. 482, § 86; 2009, ch. 517, § 3.

54-59-11.1. Information technology project planning.

Each executive branch state agency, excluding entities under the control of the state board of higher education, considering the development of an information technology project with an estimated cost of one hundred thousand dollars or more shall involve the information technology department in the planning and study of the project. A state agency must receive a recommendation from the information technology department prior to proceeding with any study relating to the project.

Source:

S.L. 2013, ch. 52, § 5.

Effective Date.

This section became effective July 1, 2013.

54-59-12. Coordination of activities — Reports.

The department shall cooperate with each state entity providing access to any computer database or electronically filed or stored information under subsection 4 of section 44-04-18 to assist in providing economical, efficient, and compatible access. The chief information officer shall conduct conferences and meetings with political subdivisions to review and coordinate information technology. The chief information officer and the chief information officer of the North Dakota university system shall meet at least twice each year to plan and coordinate their information technology. The chief information officer and the chief information officer of the North Dakota university system shall consider areas in which joint or coordinated information technology may result in more efficient and effective state government operations. Upon request, the chief information officer shall report to the legislative management regarding the coordination of services with political subdivisions, and the chief information officer and the chief information officer of the North Dakota university system shall report to the legislative management regarding their findings and recommendations.

Source:

S.L. 1999, ch. 483, § 12; 2009, ch. 482, § 87; 2015, ch. 385, § 2, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 2 of chapter 385, S.L. 2015 became effective August 1, 2015.

54-59-13. Compliance reviews. [Repealed]

Repealed by S.L. 2003, ch. 665, § 21.

54-59-14. Information technology operating account.

The department shall establish a state information technology operating account in the state treasury to be used, in accordance with legislative appropriation, for procuring and maintaining information technology and network services and for providing information technology, network services, and central microfilm unit services to state entities and network services to users of the state network. Unless exempted by law, each agency or institution provided with information technology or network services shall pay to the department the charges as determined by the department. The department shall deposit the amounts received in the information technology operating account or the information technology development account, as appropriate.

Source:

S.L. 1999, ch. 483, § 14; 2003, ch. 503, § 7.

54-59-15. Acceptance of funds.

The department may accept federal or other funds, which must be deposited in the information technology operating account or other accounts specified by the office of management and budget and which may be spent subject to legislative appropriation. The department may apply for any public or private grants available for the improvement of information technology.

Source:

S.L. 1999, ch. 483, § 15; 2013, ch. 52, § 6.

Effective Date.

The 2013 amendment of this section by section 6 of chapter 52, S.L. 2013 became effective July 1, 2013.

54-59-16. Confidentiality.

The department may receive from various agencies and various agencies may provide to the department any information from the agencies necessary to effect the purposes of this chapter without regard to the confidential nature of the information. Each agency shall notify the department regarding the confidential nature of any information submitted to the department. The department is subject to the same restrictions and penalties regarding the dissemination of this information as the entity involved. Except for a request for access authorized by section 54-10-22.1 or a request to access information collected to carry out section 54-59-09, 54-59-11, or 54-59-13, the department shall refer a request for access to or inspection of information provided by an agency to that agency for response. Referral to the agency satisfies any responsibility of the department to provide that information under open records requirements. Upon court order, the department shall provide access to or inspection of this information in accordance with restrictions of that entity involved governing dissemination of that information.

Source:

S.L. 1999, ch. 483, § 16; 2001, ch. 500, § 7.

Note.

Section 54-59-13, referred to above, was repealed by S.L. 2003, Sp., ch. 665, § 21.

54-59-17. Educational technology council — Meetings — Compensation. [Repealed]

Source:

S.L. 2001, ch. 501, § 6; 2003, ch. 138, § 96; 2003, ch. 504, § 1; Repealed by 2019, ch. 144, § 4, eff August 1, 2019.

54-59-18. North Dakota educational technology council — Powers and duties. [Repealed]

Source:

S.L. 2001, ch. 501, § 7; 2007, ch. 156, § 10; Repealed by 2019, ch. 144, § 4, eff August 1, 2019.

54-59-19. Information technology department annual report.

The department shall prepare and present an annual report to the information technology committee. The report must contain:

  1. A list of all projects for which financing agreements have been executed.
  2. A comparison of the department’s rates charged for services compared to rates charged for comparable services in other states and in the private sector.
  3. Information regarding the delivery of services to agencies, including service dependability, agency complaints, and information technology department responsiveness.
  4. A description of the status and progress of programs established pursuant to chapter 54-46 and as specifically required by section 54-46-11.

Source:

S.L. 2001, ch. 500, § 8; 2007, ch. 63, § 4; 2007, ch. 492, § 2; 2007, ch. 491, § 5; 2017, ch. 373, § 2, eff August 1, 2017.

54-59-20. Security background information.

The chief information officer may require as a condition of employment or as a condition of contracting with the department that individuals, including any individuals employed by the contractor or a subcontractor to perform work under the contract, who have unescorted physical access to the facilities or other security-sensitive areas of the department designated by the chief information officer submit to a criminal history record check in accordance with section 12-60-24. The chief information officer may require as a condition of contracting with the department or other state agency or department with respect to an information technology project that any individual employed by the contractor or a subcontractor to perform the work under the contract submit to a criminal history record check in accordance with section 12-60-24.

Source:

S.L. 2003, ch. 505, § 1; 2005, ch. 111, § 11; 2007, ch. 491, § 6; 2007, ch. 115, § 20; 2019, ch. 470, § 1, eff August 1, 2019.

54-59-21. Criminal justice information sharing board — Membership — Duties and powers — Director — Exempt records. [Repealed]

Source:

S.L. 2003, ch. 506, § 1; 2007, ch. 491, § 7; 2007, ch. 30, § 18; 2009, ch. 518, § 1; Repealed by 2015, ch. 37, § 15, eff July 1, 2015.

Effective Date.

The repeal of this section by section 15 of chapter 37, S.L. 2015 became effective July 1, 2015.

54-59-22. Required use of electronic mail, file and print server administration, database administration, application server, and hosting services.

Each state agency and institution, excluding the legislative and judicial branches, the institutions under the control of the state board of higher education, the attorney general, the veterans’ home, and any entity exempted by the office of management and budget after advisement by the information technology department, shall obtain electronic mail, file and print server administration, database administration, storage, application server, and hosting services through a delivery system established by the information technology department in conjunction with the office of management and budget. The office of management and budget, after receiving advice from the information technology department, shall establish policies and guidelines for the delivery of services, including the transition from existing systems to functional consolidation, with consideration given to the creation of efficiencies, cost-savings, and improved quality of service.

Source:

S.L. 2003 Sp., ch. 665, § 16; 2013, ch. 52, § 7; 2021, ch. 35, § 6, eff July 1, 2021.

Effective Date.

The 2013 amendment of this section by section 7 of chapter 52, S.L. 2013 became effective July 1, 2013.

54-59-22.1. Required use of centralized desktop support services.

  1. The following state agencies shall obtain centralized desktop support services from the information technology department:
    1. Office of administrative hearings.
    2. Office of the governor.
    3. Commission on legal counsel for indigents.
    4. Public employees retirement system.
    5. North Dakota university system office.
    6. Department of career and technical education.
    7. Department of financial institutions.
    8. Department of veterans’ affairs.
    9. Aeronautics commission.
    10. Council on the arts.
    11. Agriculture commissioner.
    12. Department of labor and human rights.
    13. Indian affairs commission.
    14. Protection and advocacy project.
    15. Secretary of state.
    16. State treasurer.
    17. State auditor.
    18. Securities department.
  2. The office of management and budget, after receiving advice from the information technology department, shall establish policies and guidelines for the delivery of desktop support services, including the transition from existing systems to functional consolidation, with consideration given to the creation of efficiencies, cost-savings, and improved quality of service. For purposes of this section “desktop support services” means technical assistance and device management relating to the use of personal computers and peripheral devices.

History. S.L. 2015, ch. 21, § 7, eff July 1, 2015; 2017, ch. 193, § 3, eff July 1, 2017.

Effective Date.

This section became effective July 1, 2015.

54-59-23. Information technology projects — Reports.

  1. An executive, legislative, or judicial branch agency, except for institutions under the control of the state board of higher education, shall report to the state information technology advisory committee according to guidelines developed by the department and reviewed by the state information technology advisory committee regarding the plan for and status of any information technology project that is estimated to cost more than five hundred thousand dollars.
  2. During the life of the project, the agency shall notify the state information technology advisory committee if:
    1. At a project milestone, the amount expended on project costs exceeds the planned budget for that milestone by twenty percent or more; or
    2. At a project milestone, the project schedule extends beyond the planned schedule to attain that milestone by twenty percent or more.
  3. A report under subsection 2 must specify corrective measures being undertaken to address any cost or time of completion issue. If the agency has not taken adequate corrective measures within ninety days after the report, the agency shall submit a report to the legislative management’s information technology committee regarding the project.
  4. Upon completion of the project, the agency shall notify the state information technology advisory committee if:
    1. The budget for the project exceeded the original budget by twenty percent or more; or
    2. The final project completion date extended beyond the original project scheduled completion date by twenty percent or more.

Source:

S.L. 2005, ch. 536, § 2; 2009, ch. 482, § 88; 2013, ch. 412, § 3.

Effective Date.

The 2013 amendment of this section by section 3 of chapter 412, S.L. 2013 became effective August 1, 2013.

54-59-24. Borrowing authority — E-rate funding — Emergency commission approval.

Notwithstanding the limitations provided in section 54-59-05 and upon the approval of the emergency commission, the department may borrow from the Bank of North Dakota an amount necessary to pay telecommunications costs for connecting approved schools and libraries in the event e-rate funding is not received by the department from the schools and libraries division of the universal service administrative company. In addition to the principal repayment, the Bank of North Dakota is entitled to receive interest on the loan at a rate equal to other state agency borrowings. If at the end of the biennium a balance exists on any loan obtained pursuant to this section and funds are not anticipated to be available from the schools and libraries division of the universal service administrative company to repay the loan, the department shall request a deficiency appropriation from the legislative assembly to repay the loan.

Source:

S.L. 2007, ch. 21, § 11.

54-59-25. Health information technology advisory committee — Duties. [Effective through August 31, 2022]

  1. The health information technology advisory committee consists of the state chief information officer or the chief information officer’s designee, the state health officer or the state health officer’s designee, the governor or the governor’s designee, the executive director of the department of human services or the executive director’s designee, the chairman of the house human services committee and the chairman of the senate human services committee or if either or both of them are unwilling or unable to serve then the chairman of the legislative management shall appoint a replacement who is a member of the same legislative chamber as the individual being replaced, and individuals appointed by the governor to represent a broad range of public and private health information technology  committee member who is not an ex officio member, designee of an ex officio member, state employee, or legislator is entitled to mileage and expenses as provided by law for state officers and employees, to be paid by the health information technology office. A committee member who is an ex officio member, designee of an ex officio member, state employee, or legislator is entitled to receive that member’s regular salary and receive mileage and expenses, to be paid by the employing agency.
  2. The health information technology advisory committee shall collaborate with and make recommendations to the health information technology office, as provided under sections 6-09-43, 54-59-26, and 54-59-27.
  3. As requested by the health information technology advisory committee, the department shall provide or arrange for administrative services to assist the health information technology advisory committee.
  4. The health information technology advisory committee may employ an executive director who serves at the pleasure of and under the direct supervision of the health information technology advisory committee. The executive director may employ personnel as necessary for the administration of this section.
  5. The health information technology advisory committee may accept private contributions, gifts, and grants from any source to carry out the purposes of the committee and the health information technology office.

Source:

S.L. 2009, ch. 519, § 3; 2011, ch. 438, § 2; 2015, ch. 427, § 1, 2, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 2 of chapter 427, S.L. 2015 became effective August 1, 2015.

The 2015 amendment of this section by section 1 of chapter 427, S.L. 2015 became effective August 1, 2015.

Note.

Section 54-59-25 was amended 2 times by the 2015 Legislative Assembly. Pursuant to Section 1-02-09.1 , the section is printed above to harmonize and give effect to the changes made in Section 2 of Chapter 427, Session Laws 2015, Senate Bill 2364; and Section 1 of Chapter 427, Session Laws 2015, Senate Bill 2364.

54-59-25. Health information technology advisory committee — Duties. [Effective September 1, 2022]

  1. The health information technology advisory committee consists of the state chief information officer or the chief information officer’s designee, the state health officer or the state health officer’s designee, the governor or the governor’s designee, the executive director of the department of health and human services or the executive director’s designee, the chairman of the house human services committee and the chairman of the senate human services committee or if either or both of them are unwilling or unable to serve then the chairman of the legislative management shall appoint a replacement who is a member of the same legislative chamber as the individual being replaced, and individuals appointed by the governor to represent a broad range of public and private health information technology stakeholders. A committee member who is not an ex officio member, designee of an ex officio member, state employee, or legislator is entitled to mileage and expenses as provided by law for state officers and employees, to be paid by the health information technology office. A committee member who is an ex officio member, designee of an ex officio member, state employee, or legislator is entitled to receive that member’s regular salary and receive mileage and expenses, to be paid by the employing agency.
  2. The health information technology advisory committee shall collaborate with and make recommendations to the health information technology office, as provided under sections 6-09-43, 54-59-26, and 54-59-27.
  3. As requested by the health information technology advisory committee, the department shall provide or arrange for administrative services to assist the health information technology advisory committee.
  4. The health information technology advisory committee may employ an executive director who serves at the pleasure of and under the direct supervision of the health information technology advisory committee. The executive director may employ personnel as necessary for the administration of this section.
  5. The health information technology advisory committee may accept private contributions, gifts, and grants from any source to carry out the purposes of the committee and the health information technology office.

Source:

S.L. 2009, ch. 519, § 3; 2011, ch. 438, § 2; 2015, ch. 427, § 1, 2, eff August 1, 2015; 2021, ch. 352, § 496, eff September 1, 2022.

54-59-26. Health information technology office — Duties — Loan and grant programs. [Effective through August 31, 2022]

  1. The health information technology office is created in the department. The health information technology advisory committee shall make recommendations to the health information technology office for implementing an interoperable health information infrastructure that is consistent with emerging national standards; promote the adoption and use of electronic health records and other health information technologies; and promote interoperability of health information systems for the purpose of improving health care quality, patient safety, and the overall efficiency of health care and public health services.
  2. The health information technology office director, in collaboration with the health information technology advisory committee, shall:
    1. Apply for federal funds that may be available to assist the state and health care providers in implementing and improving health information technology.
    2. Implement and administer a health information exchange that utilizes information infrastructure and systems in a secure and cost-effective manner to facilitate the collection, storage, and transmission of health records.
    3. Adopt rules under chapter 28-32 for the use of health information, use of the health information exchange, and participation in the health information exchange.
    4. Adopt rules under chapter 28-32 for accessing the health information exchange to ensure appropriate and required privacy and security protections and relating to the authority of the director to suspend, eliminate, or terminate the right to participate in the health information exchange.
    5. Establish a health information technology planning loan program to provide low-interest loans to health care entities to assist those entities in improving their health information technology infrastructure under section 6-09-43.
    6. Facilitate and expand electronic health information exchange in the state, directly or by awarding grants.
    7. Establish an application process and eligibility criteria for and accept and process applications for loans and grants under subdivisions e and f. The eligibility criteria must be consistent with federal requirements associated with federal funds received under subdivision a. The eligibility criteria for loans under subdivision f must include a requirement that the recipient’s approved health information technology be strategically aligned with the state’s health information technology plan and the associated federal standards and that the recipient has passed an onsite electronic medical record readiness assessment conducted by an assessment team determined by the health information technology advisory committee and the health information technology office director.
    8. Determine fees and charges for access and participation in the health information exchange. Any moneys collected under this subdivision must be deposited in the electronic health information exchange fund.
    9. Consult and coordinate with the state department of health and the department of human services to facilitate the collection of health information from health care providers and state agencies for public health purposes, including identifiable health information that may be used by state agencies, departments, or institutions to comply with applicable state or federal laws.
  3. If the health information technology advisory committee determines that establishing a health information exchange with another state or states will assist in providing health information exchange services in a cost-effective manner, the health information technology office director, in collaboration with the health information technology advisory committee, may join with another state or states to establish, implement, and administer a health information exchange consistent with other provisions of this chapter.

Source:

S.L. 2009, ch. 519, § 4; 2011, ch. 438, § 3; 2015, ch. 427, §§ 3, 4, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by sections 3 and 4 of chapter 427, S.L. 2015 became effective August 1, 2015.

Note.

Section 54-59-26 was amended 2 times by the 2015 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 4 of Chapter 427, Session Laws 2015, Senate Bill 2364; and Section 3 of Chapter 427, Session Laws 2015, Senate Bill 2364.

54-59-26. Health information technology office — Duties — Loan and grant programs. [Effective September 1, 2022]

  1. The health information technology office is created in the department. The health information technology advisory committee shall make recommendations to the health information technology office for implementing an interoperable health information infrastructure that is consistent with emerging national standards; promote the adoption and use of electronic health records and other health information technologies; and promote interoperability of health information systems for the purpose of improving health care quality, patient safety, and the overall efficiency of health care and public health services.
  2. The health information technology office director, in collaboration with the health information technology advisory committee, shall:
    1. Apply for federal funds that may be available to assist the state and health care providers in implementing and improving health information technology.
    2. Implement and administer a health information exchange that utilizes information infrastructure and systems in a secure and cost-effective manner to facilitate the collection, storage, and transmission of health records.
    3. Adopt rules under chapter 28-32 for the use of health information, use of the health information exchange, and participation in the health information exchange.
    4. Adopt rules under chapter 28-32 for accessing the health information exchange to ensure appropriate and required privacy and security protections and relating to the authority of the director to suspend, eliminate, or terminate the right to participate in the health information exchange.
    5. Establish a health information technology planning loan program to provide low-interest loans to health care entities to assist those entities in improving their health information technology infrastructure under section 6-09-43.
    6. Facilitate and expand electronic health information exchange in the state, directly or by awarding grants.
    7. Establish an application process and eligibility criteria for and accept and process applications for loans and grants under subdivisions e and f. The eligibility criteria must be consistent with federal requirements associated with federal funds received under subdivision a. The eligibility criteria for loans under subdivision f must include a requirement that the recipient’s approved health information technology be strategically aligned with the state’s health information technology plan and the associated federal standards and that the recipient has passed an onsite electronic medical record readiness assessment conducted by an assessment team determined by the health information technology advisory committee and the health information technology office director.
    8. Determine fees and charges for access and participation in the health information exchange. Any moneys collected under this subdivision must be deposited in the electronic health information exchange fund.
    9. Consult and coordinate with the department of health and human services to facilitate the collection of health information from health care providers and state agencies for public health purposes, including identifiable health information that may be used by state agencies, departments, or institutions to comply with applicable state or federal laws.
  3. If the health information technology advisory committee determines that establishing a health information exchange with another state or states will assist in providing health information exchange services in a cost-effective manner, the health information technology office director, in collaboration with the health information technology advisory committee, may join with another state or states to establish, implement, and administer a health information exchange consistent with other provisions of this chapter.

Source:

S.L. 2009, ch. 519, § 4; 2011, ch. 438, § 3; 2015, ch. 427, §§ 3, 4, eff August 1, 2015; 2021, ch. 352, § 497, eff September 1, 2022.

54-59-27. Health information technology office — Electronic health information exchange fund.

  1. There is created an electronic health information exchange fund. The fund consists of moneys deposited in the fund from federal or other sources or moneys transferred into the fund as directed by the legislative assembly. The health information technology office shall administer this fund and shall distribute moneys in the fund accordingly. The moneys in the fund must be used to facilitate and expand electronic health information exchange. Moneys in the fund may be used, subject to legislative appropriations, to provide services directly, for grants as provided under this section, and for the costs of administration of the fund.
  2. A grant applicant shall submit an application to the health information technology office, which shall determine the applicant’s eligibility based upon criteria established by the health information technology office director in collaboration with the health information technology advisory committee.
  3. This section does not create an entitlement to any funds available for grants under this section. The health information technology office may award these grants to the extent funds are available and, within the office’s discretion, to the extent such applications are approved.

Source:

S.L. 2009, ch. 519, § 5.

54-59-28. Participation in the health information exchange by executive branch state agencies and institutions of higher education.

  1. Before January 1, 2015, each executive branch state agency and each institution of higher education that implements, acquires, or upgrades health information technology systems shall use health information technology systems and products that meet minimum standards adopted by the health information technology office for accessing the health information exchange. A state agency or institution of higher education that participates in or has health information that supports or develops the health information exchange shall provide access to patient-specific data to complete the patient record within the health information exchange. Notwithstanding any other provision of law, each participating agency and institution shall provide patient-specific data to the health information exchange.
  2. Participation in the health information exchange by a state agency or institution has no effect on the content, use, or disclosure of health information of patient participants which is held in locations other than the exchange. This section does not limit or change the obligation of an agency or institution to exchange health information in accordance with other applicable federal and state laws or rules.

Source:

S.L. 2011, ch. 438, § 4.

54-59-29. Health information exchange — Confidential and exempt records.

Information submitted to, stored in, or transmitted by the health information exchange under this chapter and any such data or record in the possession of the health information technology office is an exempt record under chapter 44-04 unless the information is confidential under applicable federal or state law.

Source:

S.L. 2011, ch. 438, § 5; 2015, ch. 427, § 5, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 5 of chapter 427, S.L. 2015 became effective August 1, 2015.

54-59-30. Immunity for reliance on data from the health information exchange.

A health care provider that relies in good faith upon any information provided through the health information exchange in the treatment of a patient is immune from criminal or civil liability arising from any damages caused by that good-faith reliance. The immunity granted under this section does not apply to acts or omissions constituting gross negligence or reckless, wanton, or intentional misconduct.

Source:

S.L. 2011, ch. 438, § 6.

54-59-31. Certified electronic health records systems.

  1. An executive branch state agency, an institution of higher education, and any health care provider or other person participating in the health information exchange may use only an electronic health record system for use in the exchange which is certified under rules adopted by the office of the national coordinator for health information technology.
  2. Subsection 1 does not apply if:
    1. The office of the national coordinator for health information technology does not require certification of the electronic health record system for that type of provider; or
    2. The North Dakota health information technology director waives the certification requirement.

Source:

S.L. 2011, ch. 438, § 7; 2017, ch. 46, § 8, eff July 1, 2017.

Effective Date.

This section becomes effective January 1, 2015.

54-59-32. Major information technology projects — Appointment of executive steering committees.

  1. An executive branch state agency, excluding institutions under the control of the state board of higher education, proposing to conduct a major information technology project as described in subsection 10 of section 54-35-15.2, the department, and the office of management and budget, in consultation with the attorney general, shall collaborate on the procurement, contract negotiation, and contract administration of the project. The agency, the department, and the office of management and budget, in consultation with the attorney general, shall approve the solicitation, contract, or agreement, and any amendments relating to the project before submission to the executive steering committee as provided in subsection 3.
  2. The procurement officer and primary project manager for a major information technology project must meet the qualifications established by the department and the office of management and budget.
  3. An executive steering committee must be appointed to oversee each major information technology project. The agency project sponsor shall serve as chairman of the committee. The executive steering committee must consist of the director of the office of management and budget or a designee of the director, the chief information officer or a designee of the officer, the head of the agency contracting for the project or a designee, the project sponsor, and a large project oversight analyst designated by the chief information officer. The executive steering committee shall monitor the overall status of the project and review project decisions, including negotiation and execution of contracts, approval of project budgets, implementation of project schedules, assessment of project quality, and consideration of scope changes. Any project decision declared by a member of the committee to be a major project decision requires at least four affirmative votes.
  4. An agreement or contract, including an amendment, revision, or scope change, for a major information technology project may not be entered unless signed by the head of the contracting agency or a designee and the chief information officer or a designee of the officer.

Source:

S.L. 2013, ch. 436, § 1.

Effective Date.

This section became effective August 1, 2013.

54-59-33. Statewide longitudinal data system committee — Membership. [Effective through August 31, 2022]

  1. The statewide longitudinal data system committee consists of:
    1. The commissioner of the board of higher education or the commissioner’s designee;
    2. The superintendent of public instruction or the superintendent’s designee;
    3. The chief information officer or the officer’s designee;
    4. The director of the department of career and technical education or the director’s designee;
    5. The director of job service North Dakota or the director’s designee;
    6. The commissioner of commerce or the commissioner’s designee;
    7. The director of the department of human services or the director’s designee;
    8. The executive director of the North Dakota council of educational leaders or the executive director’s designee;
    9. The director of the North Dakota workforce development council or the director’s designee; and
    10. Two members of the legislative assembly appointed by the chairman of the legislative management.
  2. The governor shall designate the chairman of the committee.

History. S.L. 2015, ch. 141, § 2, eff July 1, 2015; 2019, ch. 144, § 3, eff August 1, 2019.

Effective Date.

This section became effective July 1, 2015.

54-59-33. Statewide longitudinal data system committee — Membership. [Effective September 1, 2022]

  1. The statewide longitudinal data system committee consists of:
    1. The commissioner of the board of higher education or the commissioner’s designee;
    2. The superintendent of public instruction or the superintendent’s designee;
    3. The chief information officer or the officer’s designee;
    4. The director of the department of career and technical education or the director’s designee;
    5. The director of job service North Dakota or the director’s designee;
    6. The commissioner of commerce or the commissioner’s designee;
    7. The executive director of the department of health and human services or the director’s designee;
    8. The executive director of the North Dakota council of educational leaders or the executive director’s designee;
    9. The director of the North Dakota workforce development council or the director’s designee; and
    10. Two members of the legislative assembly appointed by the chairman of the legislative management.
  2. The governor shall designate the chairman of the committee.

History. S.L. 2015, ch. 141, § 2, eff July 1, 2015; 2019, ch. 144, § 3, eff August 1, 2019; 2021, ch. 352, § 498, eff September 1, 2022.

54-59-34. Statewide longitudinal data system committee — Duties.

  1. The statewide longitudinal data system committee shall manage a statewide longitudinal data system that:
    1. Provides for the dissemination of management information to stakeholders and partners of state education, training, and employment systems;
    2. Is required to provide on an annual basis to education and workforce development programs, to the extent permitted by federal law, the wage record interchange system 2 data sharing agreement and the state wage interchange system data sharing agreement and state performance reports that measure the aggregate outcomes of participants in the workforce and continuing education programs, including private workforce and education programs that request the reports; and
    3. Uses data from educational and workforce systems as central sources of statewide longitudinal data.
  2. The statewide longitudinal data system committee shall establish policies and adopt rules addressing access to and the collection, storage, and sharing of information and the systems necessary to perform those functions, subject to applicable federal and state privacy laws and interagency agreements and restrictions relating to confidential information required to conform to applicable federal and state privacy laws.
  3. The statewide longitudinal data system committee shall provide operational oversight for information sharing activities and make recommendations for and provide oversight of information sharing budgets.
  4. The statewide longitudinal data system committee in consultation with the information technology department shall:
    1. Establish the terms and conditions under which a person may be authorized to access data through the statewide longitudinal data system;
    2. Direct that all statewide longitudinal data system administrators implement approved data protection practices to ensure the security of electronic and physical data, provided that the practices include requirements for encryption and staff training;
    3. Provide for biennial privacy and security audits of the statewide longitudinal data system;
    4. Establish protocols, including procedures, for the notification of students and parents in the event of a data breach involving the statewide longitudinal data system;
    5. Require that data retention and disposition by the statewide longitudinal data system be governed by the same policies as those instituted for the information technology department; and
    6. Require the provision of annual training regarding data protection to any individuals who have access to the statewide longitudinal data system, including school district employees, employees of the North Dakota university system office and institutions under the control of the state board of higher education, and elected or appointed state or local governmental officials.

History. S.L. 2015, ch. 141, § 3, eff July 1, 2015; 2017, ch. 46, § 9, eff July 1, 2017.

Effective Date.

This section became effective July 1, 2015.

54-59-35. Statewide longitudinal data system committee — Powers.

  1. The statewide longitudinal data system committee may authorize studies to benefit and improve workforce training and education.
  2. The statewide longitudinal data system committee may appoint additional work groups and task forces to serve in an advisory capacity.

History. S.L. 2015, ch. 141, § 4, eff July 1, 2015.

Effective Date.

This section became effective July 1, 2015.

54-59-36. Statewide longitudinal data system committee — Report to legislative management.

During each interim the statewide longitudinal data system committee shall provide a report regarding the statewide longitudinal data system to one or more committees designated by the legislative management and shall provide recommendations for further development, cost proposals, proposals for legislation, and recommendations for data sharing governance.

History. S.L. 2015, ch. 141, § 5, eff July 1, 2015.

Effective Date.

This section became effective July 1, 2015.

54-59-37. Statewide longitudinal data system committee — Continuing appropriation.

The statewide longitudinal data system committee may solicit and receive gifts, grants, and donations from public and private sources. Any moneys received in accordance with this section are appropriated on a continuing basis for the support of the statewide longitudinal data system.

History. S.L. 2015, ch. 141, § 6, eff July 1, 2015.

Effective Date.

This section became effective July 1, 2015.

54-59-38. Statewide longitudinal data system committee — Information technology department.

  1. The information technology department, at the direction of the statewide longitudinal data system committee, shall maintain a statewide longitudinal data system among education, workforce, and training entities.
  2. The information technology department and the statewide longitudinal data system committee may, subject to federal and state privacy laws, enter interagency agreements, including agreements designating authorized representatives of the educational agencies participating in the system, pursuant to the Family Educational Rights and Privacy Act [20 U.S.C. 1232 G; 34 CFR 99].
  3. The information technology department shall staff and provide other necessary support to the statewide longitudinal data system committee.

History. S.L. 2015, ch. 141, § 7, eff July 1, 2015.

Effective Date.

This section became effective July 1, 2015.

54-59-39. State agencies — Mandatory provision of information — Confidentiality.

  1. The information technology department may request from any state agency:
    1. All information required by 20 U.S.C. 9871(e)(2)(D);
    2. Any other educational information the statewide longitudinal data system committee determines is required for a longitudinal data system to comply with state or federal law; and
    3. Unemployment insurance wage data from job service North Dakota for education and workforce development program evaluations, except that the information technology department may not redisclose any data identifying an individual unless the redisclosure is expressly permitted by a written agreement between job service North Dakota and the department or is otherwise expressly permitted or required by federal or state law.
  2. Subject to applicable restrictions on the use and disclosure of confidential information required to comply with federal and state privacy laws, any state agency receiving a request for information under subsection 1 shall provide the information at the time and in the manner required by the information technology department.

History. S.L. 2015, ch. 141, § 8, eff July 1, 2015; 2015, ch. 21, § 6, eff July 1, 2015; 2017, ch. 374, § 1, eff August 1, 2017.

Effective Date.

The 2015 amendment of this section by section 6 of chapter 21, S.L. 2015 became effective July 1, 2015.

This section became effective July 1, 2015.

Note.

Section 54-39-59 was enacted and amended by the 2015 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 6 of Chapter 21, Session Laws 2015, House Bill 1021; and Section 8 of Chapter 141, Session Laws 2015, Senate Bill 2326.

CHAPTER 54-60 Department of Commerce

54-60-01. Definitions.

In this chapter, unless the context or subject matter otherwise requires:

  1. “Cabinet” means the North Dakota commerce cabinet.
  2. “Commissioner” means the commissioner of commerce.
  3. “Department” means the department of commerce.
  4. “Foundation” means the North Dakota economic development foundation.

Source:

S.L. 2001, ch. 488, § 43.

Notes to Decisions

Constitutionality.

Economic development statutes contained in N.D.C.C. chs. 11-11.1, 15-69, 40-57.4, 54-34.3, 54-60, 54-60.1 constitute an enterprise; thus, a local economic development agency’s activities did not violate the prohibition in N.D. Const. art. X, § 18 against gifts of public funds. Moreover, the public purpose component of N.D. Const. art. X, § 18 and due process under the Fourteenth Amendment were satisfied because economic development programs promote the prosperity and general welfare of the people within a governmental entity. Hale v. State, 2012 ND 148, 818 N.W.2d 684, 2012 N.D. LEXIS 135 (N.D. 2012), cert. denied, 568 U.S. 1087, 133 S. Ct. 847, 184 L. Ed. 2d 655, 2013 U.S. LEXIS 566 (U.S. 2013).

54-60-02. Department of commerce — Divisions.

The North Dakota department of commerce is created.

  1. The department must consist of:
    1. A division of community services;
    2. A division of economic development and finance;
    3. A division of tourism;
    4. A division of workforce development; and
    5. Any division or office the commissioner determines necessary to carry out this chapter.
  2. The commissioner shall appoint the director of each division of the department. Each director appointed by the commissioner serves at the pleasure of the commissioner and is entitled to receive a salary set by the commissioner within the limits of legislative appropriations.

Source:

S.L. 2001, ch. 488, § 43; 2007, ch. 18, § 35; 2011, ch. 439, § 3.

54-60-03. Commissioner of commerce — Duties.

With the advice and counsel of the North Dakota development foundation, the governor shall appoint a commissioner to supervise, control, and administer the department. The commissioner serves at the pleasure of the governor and receives a salary set by the governor within the limits of legislative appropriations. The commissioner:

  1. Shall file an oath of office in the usual form before commencing to perform the duties of the commissioner;
  2. Shall serve as chairman of the cabinet;
  3. Shall appoint personnel as may be determined necessary to carry out the duties of the department;
  4. Shall manage the operations of the department and oversee each of the divisions;
  5. Shall assume central responsibilities to develop, implement, and coordinate a working network of commerce service providers;
  6. Shall coordinate the department’s services with commerce-related services of other state agencies;
  7. Shall advise and cooperate with departments and agencies of the federal government and of other states; private businesses, agricultural organizations, and associations; research institutions; and with any individual or other private or public entity;
  8. May enter contracts upon terms and conditions as determined by the commissioner to be reasonable and to effectuate the purposes of this chapter;
  9. Shall report between the first and tenth legislative days of each regular legislative session to a standing committee of each house of the legislative assembly as determined by the legislative management and shall report annually to the foundation:
    1. On the department’s goals and objectives since the last report;
    2. On the department’s goals and objectives for the period until the next report;
    3. On the department’s long-term goals and objectives;
    4. On the department’s activities and measurable results occurring since the last report; and
    5. On commerce benchmarks, including the average annual wage in the state, the gross state product exclusive of agriculture, and the number of primary sector jobs in the state;
  10. May not certify as a primary sector business a compassion center registered under chapter 19-24.1;
  11. Shall adopt rules necessary to implement this chapter; and
  12. May take any actions necessary and proper to implement this chapter.

Source:

S.L. 2001, ch. 488, § 43; 2009, ch. 482, § 89; 2009, ch. 480, § 10; 2017, ch. 171, § 2, eff April 18, 2017.

54-60-04. North Dakota economic development foundation — Executive committee — Duties.

The North Dakota economic development foundation is created.

  1. The foundation is composed of a minimum of fifteen and a maximum of thirty members appointed by the governor for two-year terms, except the governor shall appoint approximately one-half of the initial foundation members to one-year terms in order to initiate a cycle of staggered terms. Appointment of the foundation members must ensure a cross section of business, tourism, and economic development representation, and must ensure that at least one member represents rural concerns.
  2. The foundation members shall elect an executive committee with a minimum of five and a maximum of seven foundation members, which shall include a chairman, vice chairman, secretary, treasurer, and up to three members at large.
  3. The foundation shall seek funding for administrative expenses from private sector sources and shall seek and distribute private sector funds for use in commerce-related activities of the state. The private sector funds are not public moneys for any purpose and are not subject to section 12 of article X of the Constitution of North Dakota.
  4. The foundation shall:
    1. Provide the governor advice and counsel in selecting the commissioner.
    2. Serve in an advisory role to the commissioner.
    3. Develop a strategic plan for economic development in the state and set accountability standards, measurements, and benchmarks to evaluate the effectiveness of the department in implementing the strategic plan.
    4. Monitor economic development activities and initiatives of the department.
    5. Recommend state and federal legislation relating to strengthening the state’s economy and increasing the state’s population.
    6. Monitor state and federal legislation and initiatives that may impact the state’s economy and population.
    7. Serve as a source of expertise for developing public and private initiatives to strengthen the state’s economy and increase the state’s population.

Source:

S.L. 2001, ch. 488, § 43; 2003, ch. 507, § 1; 2007, ch. 493, § 7; 2009, ch. 480, § 11; 2011, ch. 439, § 4.

54-60-05. Compensation and reimbursement of foundation members.

The foundation may establish the level of compensation to which a foundation member is entitled. A foundation member is entitled to reimbursement for mileage and expenses as provided for state officers.

Source:

S.L. 2001, ch. 488, § 43.

54-60-06. Commerce cabinet.

The North Dakota commerce cabinet is created. The cabinet is composed of the directors of each of the department divisions and of the executive heads, or other authorized representatives, of the state board for career and technical education, the state board of higher education, the Bank of North Dakota, the department of agriculture, workforce safety and insurance, the department of transportation, job service North Dakota, the game and fish department, and of any other state agency appointed by the commissioner. The commissioner is the chairman of the cabinet and shall determine which agencies are members of the cabinet. The cabinet shall:

  1. Coordinate and communicate economic development and tourism efforts of the agencies represented.
  2. Meet at times determined by the commissioner.

Source:

S.L. 2001, ch. 488, § 43; 2003, ch. 138, § 97; 2003, ch. 561, § 3; 2009, ch. 480, § 12.

54-60-07. Cooperation with other agencies or private entities to jointly publish or mail publications.

The department may cooperate with other state agencies or with a private entity for the purpose of jointly publishing or distributing information or publications as provided in section 54-06-04.3.

Source:

S.L. 2001, ch. 488, § 43.

54-60-08. Workforce safety and insurance commerce data. [Repealed]

Repealed by S.L. 2005, ch. 606, § 3.

54-60-09. Division of workforce development — Duties.

The division of workforce development shall:

  1. Actively monitor local, regional, and national private and public workforce development initiatives.
  2. Develop and implement the state’s talent strategy.
  3. Develop and implement a statewide intelligence coordination strategy.

Source:

S.L. 2003, ch. 507, § 2; 2007, ch. 18, § 36.

54-60-10. Career guidance and job opportunities — Internet website — Fees — Continuing appropriation. [Repealed]

Repealed by S.L. 2007, ch. 493, § 9.

54-60-11. Target industries — Report to legislative council. [Repealed]

Repealed by S.L. 2009, ch. 480, § 16.

54-60-12. North Dakota image information program.

The commissioner shall implement a program for use by state agencies to assist state agencies and state agencies’ employees to present to the public a positive image of the state. The commissioner may expand the program to include use of the program by the private sector.

Source:

S.L. 2005, ch. 46, § 41.

54-60-13. Business hotline.

The commissioner shall create and implement a business hotline program. The program must provide for a telephone number through which the department shall provide, during regular business hours, in-state and out-of-state callers with information regarding how to do business in the state, the services and assistance available to businesses, the advantages of doing business in the state, and information on state and other resources that provide assistance to businesses in the state. In addition to directly providing information, the department may use the business hotline as a clearinghouse through which to refer callers to other federal, state, local, or private sector economic developers. The program must include an in-state and out-of-state marketing campaign in support of the program. The commissioner shall follow up on business leads gained through the program and shall gather data on the results of calls, including business expansion, location, and startup.

Source:

S.L. 2005, ch. 46, § 42.

54-60-14. North Dakota American Indian business development office. [Repealed]

Source:

S.L. 2007, ch. 493, § 1; Repealed by 2015, ch. 5, § 4, eff July 1, 2015.

Effective Date.

The repeal of this section by section 4 of chapter 5, S.L. 2015 became effective July 1, 2015.

54-60-15. North Dakota women’s business development office.

A North Dakota women’s business development office is established within the department to develop and administer the North Dakota women’s business program, to establish and fund the women’s business leadership council, certify women-owned businesses for federal or state contracting, and to recruit, train, and assist women entrepreneurs to develop and diversify their businesses. The office must have an administrator and staff sufficient to implement the office’s programs. The commissioner may contract with a third party for the provision of services for the office. If the commissioner contracts with a third party under this section, all data and databases collected and created by the third party in performing services for the office are the property of the department and the third party.

Source:

S.L. 2007, ch. 493, § 1.

54-60-16. International business and trade office — Advisory board. [Repealed]

Source:

S.L. 2007, ch. 493, § 1; 2009, ch. 46, § 36; 2011, ch. 439, § 5; Repealed by 2021, ch. 46, § 13, eff July 1, 2021.

54-60-17. Division of workforce development — Internships, apprenticeships, and work experience opportunities.

The division of workforce development shall administer a program to increase use of internships, apprenticeships, and work experience opportunities for higher education students, high school students enrolled in grade eleven or twelve, and educators. The primary focus of this program must be higher education internships in target industries. This program shall provide services to employers, communities, and business organizations to increase internship, apprenticeship, and work experience opportunities. The department shall maintain records of the number of internship, apprenticeship, and work experience opportunities subsidized within each funding recipient.

Source:

S.L. 2007, ch. 18, § 37; 2009, ch. 46, § 37; 2009, ch. 480, § 13; 2011, ch. 376, § 3; 2015, ch. 18, § 24, eff July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 24 of chapter 18, S.L. 2015 became effective July 1, 2015.

54-60-17.1. Internship fund — Continuing appropriation.

The internship fund is a special fund in the state treasury. All funds in the internship fund are appropriated to the department of commerce on a continuing basis for the purpose of implementing and administering section 54-60-17. Interest earned by the fund must be credited to the fund.

Source:

S.L. 2011, ch. 50, § 10.

54-60-18. Division of workforce development — Career specialist.

The division of workforce development, in consultation with the department of career and technical education, job service North Dakota, and the superintendent of public instruction, shall develop and implement a program to assist public schools in promoting North Dakota career opportunities to students in grades nine through twelve.

Source:

S.L. 2007, ch. 18, § 37.

54-60-19. Division of workforce development — Talent strategy — Performance and accountability. [Effective through August 31, 2022]

  1. The division of workforce development, in developing and implementing the state’s talent strategy, shall:
    1. Consult with partners in the state’s system for workforce development, workforce training, and talent attraction, including job service North Dakota, the department of career and technical education, the superintendent of public instruction, the state board of higher education, the department of human services, and other divisions of the department of commerce.
    2. Develop a comprehensive, consolidated biennial statewide strategic plan for the state’s system for workforce development, workforce training, and talent attraction.
    3. Continuously review, identify how to improve, and implement improvements to the state’s system for workforce development, workforce training, and talent attraction.
    4. Develop linkages between partners of the state’s system for workforce development, workforce training, and talent attraction, to assure coordination and nonduplication of programs and services provided in the state.
  2. The division of workforce development shall develop and implement a system of performance and accountability measures for the state’s system for workforce development, workforce training, and talent attraction. Each partner of the state’s system for workforce development, workforce training, and talent attraction shall cooperate in providing the division the data necessary to implement these measures.

Source:

S.L. 2007, ch. 18, § 37.

54-60-19. Division of workforce development — Talent strategy — Performance and accountability. [Effective September 1, 2022]

  1. The division of workforce development, in developing and implementing the state’s talent strategy, shall:
    1. Consult with partners in the state’s system for workforce development, workforce training, and talent attraction, including job service North Dakota, the department of career and technical education, the superintendent of public instruction, the state board of higher education, the department of health and human services, and other divisions of the department of commerce.
    2. Develop a comprehensive, consolidated biennial statewide strategic plan for the state’s system for workforce development, workforce training, and talent attraction.
    3. Continuously review, identify how to improve, and implement improvements to the state’s system for workforce development, workforce training, and talent attraction.
    4. Develop linkages between partners of the state’s system for workforce development, workforce training, and talent attraction, to assure coordination and nonduplication of programs and services provided in the state.
  2. The division of workforce development shall develop and implement a system of performance and accountability measures for the state’s system for workforce development, workforce training, and talent attraction. Each partner of the state’s system for workforce development, workforce training, and talent attraction shall cooperate in providing the division the data necessary to implement these measures.

Source:

S.L. 2007, ch. 18, § 37; 2021, ch. 352, § 499, eff September 1, 2022.

54-60-20. Beginning again North Dakota pilot program — Continuing appropriation — Report to legislative council.

Expired under S.L. 2007, ch. 18, § 53.

54-60-21. Workforce enhancement council.

The workforce enhancement council consists of the private sector members of the workforce development council, the director of the department of career and technical education, and the director of the division of workforce development, who shall serve as chairman.

Source:

S.L. 2007, ch. 19, § 8.

54-60-22. Workforce enhancement council — Grants.

The workforce enhancement council shall recommend to the commissioner the approval of grants to institutions of higher education assigned primary responsibility for workforce training in this state to be used to create or enhance training programs that address workforce needs of private sector companies. A grant made under this section may be used for curriculum development, equipment, recruitment of participants, and training and certification for instructors but may not be used to supplant funding for current operations. The department may distribute funds under this section after:

  1. The division of workforce development certifies that a proposed training program meets a critical workforce shortage in a target industry or other high-demand occupation and is expected to lead to employment in this state; and
  2. The proposed recipient provides the department with detailed documentation of private sector participation, including the availability of one dollar of matching funds for each dollar of state funds.

Source:

S.L. 2007, ch. 19, § 9.

54-60-23. Workforce enhancement fund — Continuing appropriation.

The workforce enhancement fund is a special fund in the state treasury. All funds in the workforce enhancement fund are appropriated to the department of commerce on a continuing basis for the purpose of implementing and administering sections 54-60-21 and 54-60-22. Interest earned by the fund must be credited to the fund.

Source:

S.L. 2007, ch. 19, § 10.

54-60-24. Rural development office.

  1. The commissioner shall administer the rural development office. The purpose of the office is to assist in the development of rural North Dakota communities.
  2. The commissioner may contract with a third party for the provision of services for the rural development office. If the commissioner contracts with a third party under this subsection, all data and databases collected and created by the third party in performing services for the office are the property of the department and the third party.
  3. The department may seek and accept any gift, grant, or donation of funds, property, services, or other assistance from public or private sources for the purpose of furthering the objectives of the rural development office.

Source:

S.L. 2009, ch. 480, § 14.

54-60-25. North Dakota rural development council — Composition.

The North Dakota rural development council is created.

  1. The North Dakota rural development council is composed of a minimum of nine and a maximum of seventeen members. The commissioner is an ex officio voting member of the council. The governor shall appoint council members for two-year terms, except the governor shall appoint approximately one-half of the initial council members to one-year terms in order to initiate a cycle of staggered terms. Appointment of the council members must ensure representation from four regions designated by the commissioner. Members of the council serve at the pleasure of the governor.
  2. The council shall select its own officers who shall serve for a term of two years commencing on October first of each year.
  3. The council shall have at least two meetings each year and such additional meetings as the chairman determines necessary at a time and place to be fixed by the chairman. Special meetings must be called by the chairman on written request of any four members. A simple majority of the council constitutes a quorum and may act upon any matter coming before the council. Members of the council are entitled to reimbursement in the same manner and at the same rate provided by law for other state officials.
  4. The council, in cooperation with the rural development office, shall:
    1. Facilitate collaboration among federal, state, local, and tribal governments and the private and nonprofit sectors in the planning and implementation of programs and policies that have an impact on rural areas of the state;
    2. Monitor, report, and comment on policies and programs that address, or fail to address, the needs of the rural areas of the state; and
    3. Facilitate the development of strategies to reduce or eliminate conflicting or duplicative administrative or regulatory requirements of federal, state, local, and tribal governments.

Source:

S.L. 2009, ch. 480, § 15; 2011, ch. 439, § 6.

54-60-26. Division of workforce development — Annual reports — North Dakota workforce development council — Budget acceptance.

  1. Annually, job service North Dakota, the department of career and technical education, the department, and the state board of higher education each shall submit a report to the division of workforce development relating to the respective agency’s current workforce initiatives and activities and that agency’s plan for future workforce initiatives and activities. The division of workforce development shall consider these reports in preparing the consolidated biennial statewide strategic plan for the state’s system for workforce development, workforce training, and talent attraction required under section 54-60-19.
  2. Before November first of each even-numbered year, job service North Dakota, the department of career and technical education, the department, and the state board of higher education each shall present the respective agency’s workforce-related budget initiatives for the upcoming biennium, including alignment of these initiatives with the consolidated biennial statewide strategic plan, to the North Dakota workforce development council, created by governor’s executive order 1995-01, dated January 3, 1996. The North Dakota workforce development council members shall consider potential areas for collaboration.

Source:

S.L. 2009, ch. 46, § 38.

54-60-27. Division of workforce development — Pilot program — Higher education electronic portfolio system. [Repealed]

Expired under S.L. 2011, ch. 50, § 36.

54-60-28. Unmanned aircraft systems program — Report to legislative management.

The department may establish and administer an unmanned aircraft systems test site, contingent upon receiving official designation by the federal aviation administration. The department shall cooperate with the university of North Dakota, the North Dakota aeronautics commission, the adjutant general, and private parties appointed by the governor in the administration of the test site. The department may charge fees sufficient to operate the test site. The department shall, to the extent possible, use competitive bidding in the establishment and administration of the test site. The commissioner may charter a public corporation to operate the test site. The corporation must possess all of the powers of a business corporation consistent with this chapter. The department shall report to the legislative management semiannually on the status of the program.

Source:

S.L. 2013, ch. 49, § 13.

Effective Date.

This section became effective July 1, 2013.

54-60-29. Unmanned aircraft systems program fund — Continuing appropriation.

  1. There is created in the state treasury a special fund known as the unmanned aircraft systems fund, which may be used to defray the expenses of the:
    1. Operations of an unmanned aircraft systems test site officially designated by the federal aviation administration;
    2. Beyond visual line of sight unmanned aircraft system program; and
    3. Enhanced use lease grant program.
  2. The fund consists of fees collected for the administration of the test site and other funds appropriated by the legislative assembly. All moneys in the fund are appropriated to the department of commerce on a continuing basis for the purpose of defraying the expenses of the programs identified in subsection 1. Interest earned on moneys in the fund must be credited to the fund.

Source:

S.L. 2013, ch. 49, § 14; 2021, ch. 46, § 12, eff July 1, 2021.

Effective Date.

This section became effective July 1, 2013.

54-60-29.1. Beyond visual line of sight unmanned aircraft system program — Requirements — Report to legislative management.

The department may establish and administer a beyond visual line of sight unmanned aircraft system program for the design, purchase, implementation, and operating costs of a beyond visual line of sight unmanned aircraft system. The department shall require any entity receiving funding for this program which is operating the beyond visual line of sight unmanned aircraft system to provide quarterly payments to the state treasurer equal to three percent of the entity’s gross income associated with the operation of the beyond visual line of sight unmanned aircraft system as reported in the entity’s prior year financial statements. The state treasurer shall deposit any funds received under this section in the state general fund. The department shall provide semiannual reports to the legislative management regarding the development of the beyond visual line of sight unmanned aircraft system program and the total amount deposited by the state treasurer in the state general fund.

Source:

S.L. 2019, ch. 18, § 13, eff May 2, 2019.

54-60-30. Boundary and annexation survey reporting.

At the discretion of each political subdivision, the department shall act on behalf of political subdivisions to deliver a consolidated response to the boundary and annexation survey and provide legal boundary geography data to the United States census bureau. The department shall coordinate with political subdivisions to ensure consistent, accurate, and integrated geography is provided to the United States census bureau.

Source:

S.L. 2017, ch. 375, § 1, eff August 1, 2017.

CHAPTER 54-60.1 Business Incentives, Agreements, and Reports

54-60.1-01. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Benefit date” means the date on which the recipient receives the business incentive. If the business incentive involves the purchase, lease, or donation of physical equipment, the benefit date is the date when the recipient puts the equipment into service. If the business incentive is for improvements to property, the benefit date is the earlier of either when the improvements are finished for the entire project or when a business occupies the property. If a business occupies the property and the business incentive grantor expects that other businesses will also occupy the same property, the grantor may assign a separate benefit date for each subsequent business when that subsequent business first occupies the property.
  2. “Business incentive” means a state or political subdivision direct cash transfer, loan, or equity investment; contribution of property or infrastructure; reduction or deferral of any tax or any fee; guarantee of any payment under any loan, lease, or other obligation; or preferential use of government facilities given to a business. To be considered a business incentive, the total assistance in all forms must be valued at twenty-five thousand dollars or more committed within a year. Unless specifically provided otherwise, the term does not include:
    1. Assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, or similar criteria.
    2. Incentives resulting from Bank of North Dakota programs unless the incentive requires job creation to fulfill a requirement of the incentive.
    3. Public improvements to buildings or lands owned by the state or political subdivision which serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made.
    4. Assistance provided for the sole purpose of renovating old or decaying building stock or bringing such building stock up to code and assistance provided for designated historic preservation districts, provided that the assistance does not exceed seventy-five percent of the total cost.
    5. Assistance to provide job-readiness and training services if the sole purpose of the assistance is to provide those services.
    6. Assistance for housing.
    7. Assistance for pollution control or abatement.
    8. Assistance for energy conservation.
    9. Tax reductions resulting from conformity with federal tax law.
    10. Benefits derived from regulation.
    11. Indirect benefits derived from assistance to educational institutions.
    12. Assistance for a collaboration between a North Dakota institution of higher education and a business.
    13. Redevelopment if the recipient’s investment in the purchase of the site and in site preparation is seventy percent or more of the assessor’s current year’s estimated market value.
    14. General changes in tax increment financing law and other general tax law changes of a principally technical nature.
    15. Federal assistance provided through the state or a political subdivision until the assistance has been repaid to, and reinvested by, the state or political subdivision.
    16. Federal or state assistance for the lignite research, development, and marketing program under chapter 54-17.5.
    17. Federal or state assistance for the oil and gas research, development, and marketing program under chapter 54-17.6.
    18. Federal or state assistance for the renewable energy program under chapter 54-63.
  3. “Compensation” means the value of an employee’s:
    1. Earnings, including wages, salary, bonus, and commissions; and
    2. Benefits, including:
      1. Health, disability, life, and retirement benefits or insurance premium paid by the employer;
      2. An employee’s share of payroll taxes paid by the employer; and
      3. Other fringe benefits such as housing allowance and transportation expenses.
  4. “Department” means the department of commerce.
  5. “Grantor” means the state or any political subdivision that directly or indirectly grants a business incentive to a recipient.
  6. “Political subdivision” means a unit of local government in this state which has direct or indirect authority to grant a business incentive. The term includes any authority, agency, special district, or entity created by, authorized by, under the jurisdiction of, or contracting with a political subdivision.
  7. “Public purpose” includes assisting community development, increasing the tax base, directly creating employment opportunities, or indirectly creating employment opportunities through increased economic activity. Job retention is only a public purpose in cases in which job loss is specific and demonstrable.
  8. “Recipient” means any individual or business entity that receives a business incentive.
  9. “State” means any North Dakota state government agency that has the authority to directly or indirectly award business incentives.

Source:

S.L. 2005, ch. 537, § 2; 2007, ch. ch. 494, § 1; 2007, ch. 464, § 4; 2007, ch. 18, § 39; 2009, ch. 109, § 4; 2009, ch. 521, § 2; 2011, ch. 398, § 3; 2021, ch. 446, § 1, eff August 1, 2021.

Effective Date.

The 2011 amendment of this section by section 3 of chapter 398, S.L. 2011 became effective July 1, 2011 and expires June 30, 2013.

Note.

Section 5 of chapter 109, S.L. 2009 provides: “ EXPIRATION DATE. Sections 3 and 4 of this Act are effective through July 31, 2015 and after that date are ineffective.”

Notes to Decisions

Constitutionality.

Economic development statutes contained in N.D.C.C. chs. 11-11.1, 15-69, 40-57.4, 54-34.3, 54-60, 54-60.1 constitute an enterprise; thus, a local economic development agency’s activities did not violate the prohibition in N.D. Const. art. X, § 18 against gifts of public funds. Moreover, the public purpose component of N.D. Const. art. X, § 18 and due process under the Fourteenth Amendment were satisfied because economic development programs promote the prosperity and general welfare of the people within a governmental entity. Hale v. State, 2012 ND 148, 818 N.W.2d 684, 2012 N.D. LEXIS 135 (N.D. 2012), cert. denied, 568 U.S. 1087, 133 S. Ct. 847, 184 L. Ed. 2d 655, 2013 U.S. LEXIS 566 (U.S. 2013).

54-60.1-02. Scope — Public purpose — Notice.

  1. The application of this chapter is limited to business incentives provided by grantors to recipients, unless otherwise provided.
  2. A grantor may not grant a business incentive to a recipient unless that business incentive meets a public purpose.
  3. A state business incentive in the form of a direct cash transfer that is not a structured grant under state or federal law must be structured as a loan, a forgivable loan, or as a preferred share that includes provisions for surrender.
  4. A political subdivision business incentive in the form of a cash transfer of money may be structured as a loan, a forgivable loan, or as a preferred share that includes provisions for surrender.

Source:

S.L. 2005, ch. 537, § 2; 2007, ch. 494, § 2.

54-60.1-03. Business incentive agreement.

  1. A recipient must enter a business incentive agreement with each grantor of a business incentive. The grantor and the recipient shall sign the agreement.
  2. If a business incentive benefits more than one recipient, the grantor shall assign a proportion of the business incentive to each recipient that signs a business incentive agreement. The proportion assessed to each recipient must reflect a reasonable estimate of the recipient’s share of the total benefits of the project.
  3. A business incentive agreement must include:
    1. A description of the business incentive, including the value of the business incentive, which may be the amount of the incentive, the fair market value of the property conveyed to the recipient, or the fair market value of other in-kind benefits provided to the recipient; the type of incentive; and the type of district if the incentive is tax increment financing.
    2. A statement of the public purposes of the business incentive.
    3. Goals for the business incentive. The goals must include the number of jobs to be created and the average compensation of the new jobs created. The information on average compensation must include identification of the average benefits and the average earnings to be provided by the employer on all jobs to be created or retained in association with the incentive. The job and average compensation goals may include separate goals for the number of part-time or full-time jobs to be created or, in cases in which potential job loss is specific and demonstrable, goals for the number of jobs to be retained. In addition to other specific goal timeframes, the job and average compensation goals must contain specific goals to be attained within two years of the benefit date.
    4. A description of the financial obligation of the recipient if the goals are not met. This financial obligation must include an exception for any unmet goal that results from an act of God or terrorism.
    5. A commitment by the recipient to continue operations in the jurisdiction in which the business incentive is used for five years or more after the benefit date.
    6. The name and address of the parent company of the recipient, if any.
    7. A list of all financial assistance by all grantors for the project.
    8. The recipient’s obligation if the recipient does not fulfill the business incentive agreement.

Source:

S.L. 2005, ch. 537, § 2.

54-60.1-04. Failure to meet goals — Modification of goals.

  1. At a minimum, the financial obligation provision of a business incentive agreement must require a recipient that fails to meet business incentive agreement goals to pay back to the grantor the assistance, prorated to reflect any partial fulfillment of goals. A grantor may extend for up to one year the period for meeting the business incentive agreement goals if the grantor determines that circumstances have made it impossible for the recipient to achieve the required goals. A grantor may extend the period for meeting business incentive agreement goals by another additional year by documenting in writing the reason for the extension and attaching a copy of the documentation to the grantor’s next annual report. Notwithstanding the five-year commitment in the business incentive agreement, a grantor may authorize a recipient to move from the jurisdiction in which the business incentive is used within the five-year period after the benefit date if, after a public hearing, the grantor approves the recipient’s request to move. If after extending the period for achieving the goals of the business incentive agreement for two years a grantor determines that a business incentive agreement goal of creation or retention of jobs has changed and justifies a decrease, after a public hearing, the grantor may decrease the job goals in the agreement to a lesser number or to zero and may adjust the average compensation goals to reflect changed circumstances. Justification for decreasing job goals may include that other public benefits adequately offset the failure to meet the initial job goals.
  2. A recipient that fails to meet the terms of a business incentive agreement may not receive a business incentive from any grantor for a period of five years from the date of failure or until a recipient satisfies the repayment obligation under this section, whichever occurs first. For purposes of this subsection, if the recipient is an individual, the disqualification attaches to the individual and if the recipient is a business entity, the disqualification attaches to the business and to each owner or shareholder of twenty percent or more of the business.

Source:

S.L. 2005, ch. 537, § 2.

54-60.1-05. State grantor recipient reports.

  1. The department shall create state grantor recipient report forms that include:
    1. The name and address of the recipient;
    2. The type, public purpose, and value of the business incentive;
    3. The number of new jobs to be created or retained in association with the business incentive;
    4. The average compensation of all jobs to be created or retained in association with the business incentive, including identification of the average benefits and the average earnings provided by the employer on all jobs created or retained in association with the business incentive;
    5. The date the job and average compensation goals are expected to be reached;
    6. A statement of goals identified in the business incentive agreement and an update on achievement of these goals, including the actual number of jobs created or retained and the average compensation of jobs created or retained at that point, including identification of the average benefits actually provided and the average earnings actually provided by the employer on all jobs created or retained;
    7. The location of the recipient prior to receiving the business incentive;
    8. The name and address of the parent corporation of the recipient, if any;
    9. A list of business incentives by all grantors for the project; and
    10. Other information the department and grantor may request.
  2. Each state grantor shall use recipient report forms created by the department to monitor the progress by each state grantor recipient in achieving business incentive agreement goals. At a minimum, each of these recipients shall provide the state grantor with an annual recipient report for two years following the benefit date or until the goals are met, whichever is later. If the business incentive agreement goals are not met, the state grantor recipient shall continue to provide recipient reports to the state grantor until the incentive is repaid. A state grantor shall file with the department a copy of each completed recipient report.
  3. Before sixty days after the anniversary of the benefit date, a state grantor recipient shall file with the state grantor the recipient report for the previous twelve months. If a state grantor recipient fails to file a recipient report before the sixtieth day after the anniversary of the benefit date, the state grantor shall mail the recipient a warning letter. If a noncompliant state grantor recipient fails to file the recipient report within fourteen days of the postmarked date of the warning letter, the recipient shall pay to the state grantor a penalty of one hundred dollars for each subsequent day until the report is filed. The maximum penalty under this section may not exceed one thousand dollars.

Source:

S.L. 2005, ch. 537, § 2; 2015, ch. 428, § 1, eff August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 428, S.L. 2015 became effective August 1, 2015.

54-60.1-06. State grantor reports.

Before April 1, 2007, and each April first thereafter, each state agency that has granted a business incentive within the last five calendar years shall file an annual state grantor report with the department. The department shall create the state grantor report form required under this section. A state grantor report must include a list of all recipients, each recipient’s business incentive agreement goals, and a report on each recipient’s progress toward the goals. If the department does not receive a state grantor report before May first, the department shall issue a warning letter to the noncompliant grantor. If the department has not received a state grantor report from the noncompliant grantor before June first, that noncompliant grantor may not award any business incentive until the past-due grantor report is filed with the department.

Source:

S.L. 2005, ch. 537, § 2.

54-60.1-07. Compilation and summary — Report to legislative council.

  1. Beginning in 2007 and annually thereafter, the department shall publish a compilation and summary of the results of the state grantor reports for the previous calendar year. Beginning in 2007 and annually thereafter, the department of commerce shall file the reports of the state grantors and the compilation and summary with the legislative council. The department shall organize the compilation and summary so that useful comparisons across time periods and across grantors can be made. The department may add other information to the compilation and summary as deemed necessary to evaluate business incentives.
  2. The compilation and summary must include:
    1. The number of jobs targeted to be created or retained by each recipient receiving a business incentive in that year.
    2. The number of jobs achieved in comparison to the jobs targeted for each business year by year.
    3. The average compensation of jobs targeted to be created or retained by each recipient that year, including identification of the average benefits and average earnings to be provided by the employer for these jobs.
    4. The average compensation of jobs created or retained compared to the targeted average compensation for each business year by year.
    5. A distribution of business incentives by type of business and by public purpose.
    6. The percentage of business incentives that reached goals within two, three, four, and five years from the benefit date.
    7. The percentage of business incentives that did not meet goals and that did not receive repayment.

Source:

S.L. 2005, ch. 537, § 2.

54-60.1-08. Political subdivision grantor annual reports.

  1. A political subdivision shall maintain records of business incentives provided to recipients.
  2. Before April 1, 2007, and each April first thereafter, each political subdivision that granted a business incentive during the previous calendar year shall prepare an annual political subdivision grantor report. This annual report must include:
    1. The names of the businesses receiving business incentives during that year;
    2. The number of jobs expected to be created or retained by each business as a result of the business incentives;
    3. The average compensation expected to be provided by the employer for the jobs expected to be created or retained as a result of the business incentives, including identification of the average benefits and average earnings to be provided by the employer for these jobs; and
    4. The total dollar value of all business incentives provided by the political subdivision during that year.

Source:

S.L. 2005, ch. 537, § 2.

54-60.1-09. Appropriation requests.

A state agency may not request an appropriation for the purpose of providing a business incentive in the form of a direct cash transfer unless the agency includes with the request a statement of the expected benefits associated with the direct cash transfer.

Source:

S.L. 2005, ch. 537, § 2.

CHAPTER 54-60.2 Workforce Development Grant for Tribally Controlled Community Colleges

54-60.2-01. Establishment of workforce development grant for tribally controlled community colleges.

There is established within the division of workforce development of the department of commerce a program to provide workforce development grants to tribally controlled community colleges in North Dakota. A tribally controlled community college in this state may apply to the department of commerce for a job training grant in such manner as the department of commerce prescribes. The department of commerce shall consult with the executive director of the Indian affairs commission to determine eligible tribally controlled community colleges and shall award grants based on the documented job placement rates at each eligible college.

Source:

S.L. 2013, ch. 437, § 1; 2013, ch. 49, § 22; 2017, ch. 376, § 1, eff July 1, 2017.

Effective Date.

This chapter became effective July 1, 2013.

The 2013 amendment of this section by section 22 of chapter 49, S.L. 2013 became effective July 1, 2013.

Note.

Section 54-60.2-01 was created and amended by the 2013 Legislative Assembly. Pursuant to section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in section 1 of chapter 437, Session Laws 2013, Senate Bill 2218; and section 22 of chapter 49, Session Laws 2013, Senate Bill 2018.

54-60.2-02. Purpose of grants.

Any grant awarded under section 54-60.2-01 may be used at the discretion of the college:

  1. For development of programs that assist in providing certificates or degrees to North Dakota students attending the college that qualify the student to obtain jobs for which applicants are being sought within the state, as identified by the department of commerce, job service North Dakota, or any of the federally recognized Indian tribes within North Dakota; or
  2. To assist any North Dakota student attending the college to establish, or to assist in establishing, a new business operating within North Dakota that will employ North Dakota citizens.

Any funds provided to tribally controlled community colleges must be used to supplement, not supplant, any existing program or funding source of the college.

Source:

S.L. 2013, ch. 437, § 2; 2015, ch. 429, § 1, eff August 1, 2015; 2017, ch. 376, § 2, eff July 1, 2017.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 429, S.L. 2015 became effective August 1, 2015.

Note.

Section 2 of chapter 429, S.L. 2015 provides, “ EXPIRATION DATE . This Act is effective through July 31, 2017, and after that date is ineffective.”

54-60.2-03. Cooperation and collaboration with other agencies.

To the maximum extent possible, a tribally controlled community college that receives a grant under this chapter must endeavor to cooperate, collaborate, or partner with other tribal, state, or federal agencies or institutions that are providing economic development assistance or workforce training and development within the state, and the department of commerce shall assist in facilitating such cooperation and partnerships.

Source:

S.L. 2013, ch. 437, § 3.

54-60.2-04. Use of grants.

A grant awarded under this chapter may be used to carry out the purposes specified in section 54-60.2-02, including maintenance and operation of the program; development costs associated with any new or redesigned courses of instruction at the college; costs of instruction, including special programs for individuals with disabilities; and academic instruction and associated materials.

Source:

S.L. 2013, ch. 437, § 4.

54-60.2-05. Reports to the department of commerce.

On an annual basis, within sixty days of the end of each fiscal year of the biennium for which funds are appropriated under this chapter, each tribally controlled community college receiving a grant under this chapter shall provide to the department of commerce, in the form prescribed by the department, the following information:

  1. A detailed report of expenditures under the grant;
  2. The number of students assisted by the grant;
  3. The graduation rate of students assisted by the grant and the graduation rate for all students at the college;
  4. A description of any new or improved training or other program leading to a certificate or a degree which was developed by the college with funds provided by the grant and the types of jobs for which the new or improved training program is designed;
  5. The placement rate of graduates of the college assisted by the grant in relation to the placement rate of all graduates of the college;
  6. The rate of students assisted by the grant who pursue further educational opportunities immediately after graduation from the college; and
  7. The number of jobs or businesses created as a result of funds provided by the grant.

Source:

S.L. 2013, ch. 437, § 5.

CHAPTER 54-60.3 Agricultural Products Utilization Commission [Repealed]

54-60.3-01. Agricultural products utilization commission — Composition — Appointment. [Repealed]

Source:

S.L. 2017, ch. 61, § 10, eff July 1, 2017; Repealed by 2019, ch. 58, § 2, eff August 1, 2019.

54-60.3-02. Agricultural products utilization commission — Authority. [Repealed]

Source:

S.L. 2017, ch. 61, § 10, eff July 1, 2017; Repealed by 2019, ch. 58, § 2, eff August 1, 2019.

54-60.3-03. Agricultural products utilization commission — Meetings — Personnel — Reports. [Repealed]

Source:

S.L. 2017, ch. 61, § 10, eff July 1, 2017; Repealed by 2019, ch. 58, § 2, eff August 1, 2019.

54-60.3-04. Agricultural products utilization commission — Reimbursement — Compensation. [Repealed]

Source:

S.L. 2017, ch. 61, § 10, eff July 1, 2017; Repealed by 2019, ch. 58, § 2, eff August 1, 2019.

54-60.3-05. Agricultural products utilization commission — Administrative expenses. [Repealed]

Source:

S.L. 2017, ch. 61, § 10, eff July 1, 2017; Repealed by 2019, ch. 58, § 2, eff August 1, 2019.

54-60.3-06. Agricultural products utilization fund — Purposes. [Repealed]

Source:

S.L. 2017, ch. 61, § 10, eff July 1, 2017; Repealed by 2019, ch. 58, § 2, eff August 1, 2019.

CHAPTER 54-61 Commission on Legal Counsel For Indigents

54-61-01. Commission on legal counsel for indigents — Membership.

  1. The commission on legal counsel for indigents is established for the purpose of developing and monitoring a process for the delivery of state-funded legal counsel services for indigents which are required under the Constitution of North Dakota and the United States Constitution and any applicable statute or court rule. The commission shall provide indigent defense services for indigent individuals determined by the court to be eligible for and in need of those services pursuant to the standards and policies of the commission governing eligibility for such services.
  2. The commission consists of the following members:
    1. Two members appointed by the governor, one of whom must be appointed from a county with a population of not more than ten thousand.
    2. Two members of the legislative assembly, one from each house, appointed by the chairman of the legislative management.
    3. Two members appointed by the chief justice of the supreme court, one of whom must be appointed from a county with a population of not more than ten thousand.
    4. One member appointed by the board of governors of the state bar association of North Dakota.
  3. Appointing authorities shall make their initial appointments to the commission before August 1, 2005.
  4. Initially, as determined by lot, one member will serve for one year, three members will serve for two years, and three members will serve for three years. At the expiration of the initial terms, the appointing authorities designated in subsection 2 shall make appointments for three-year terms. A member may not serve more than two consecutive three-year terms plus any initial term of less than three years.
  5. Individuals appointed to the commission should have experience in the defense of criminal cases or other cases in which appointed counsel services are required or should have demonstrated a commitment to quality representation in indigent defense matters. Membership of the commission may not include any individual, or the employee of that individual, who is actively serving as a judge, state’s attorney, assistant state’s attorney, contract counsel or public defender, or law enforcement officer.
  6. A member of the commission is entitled to reimbursement for travel and expenses as provided by law for other state officers. If not otherwise employed by the state of North Dakota, a member is entitled to receive per diem compensation of sixty-two dollars and fifty cents for each day devoted to attending meetings or performing other duties relating to the official business of the commission. A member of the commission who is a member of the legislative assembly is entitled to receive per diem compensation at the rate as provided under section 54-35-10 for each day devoted to attending meetings or performing other duties relating to the official business of the commission. The legislative council shall pay the per diem compensation and reimbursement for travel and expenses as provided by law for any member of the commission who is a member of the legislative assembly.
  7. One of the two appointees of the chief justice, as determined by the chief justice, shall convene the commission’s first meeting no later than August 15, 2005. The members of the commission shall select the chairman of the commission within thirty days after the commission’s first meeting and annually thereafter.

Source:

S.L. 2005, ch. 538, § 1; 2009, ch. 482, § 97; 2009, ch. 520, § 1; 2015, ch. 22, § 3, eff July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 3 of chapter 22, S.L. 2015 became effective July 1, 2015.

Cross-References.

Payment of expenses for defense of indigents, see N.D.C.C. § 29-07-01.1.

Right to counsel, generally, N.D.R.Crim.P. Rule 44.

54-61-02. Commission responsibilities.

  1. The commission shall:
    1. Develop standards governing the delivery of indigent defense services, including:
      1. Standards governing eligibility for indigent defense services;
      2. Standards for maintaining and operating regional public defender offices if established;
      3. Standards prescribing minimum experience, training, and other qualifications for contract counsel and public defenders;
      4. Standards for contract counsel and public defender caseloads;
      5. Standards for the evaluation of contract counsel and public defenders;
      6. Standards for independent, competent, and efficient representation of clients whose cases present conflicts of interest;
      7. Standards for the reimbursement of expenses incurred by contract counsel; and
      8. Other standards considered necessary and appropriate to ensure the delivery of adequate indigent defense services.
    2. Establish and implement a process of contracting for legal counsel services for indigents.
    3. Establish public defender offices in the regions of the state as the commission considers necessary and appropriate.
    4. Establish a method for accurately tracking and monitoring caseloads of contract counsel and public defenders.
    5. Approve and submit a biennial budget request to the office of the budget.
  2. Upon the request of a county or city, the commission may agree to provide indigent defense services in the county or city for those cases in which the county or city is otherwise required to provide such services. Moneys received by the commission in accordance with an agreement under this subsection must be deposited in the indigent defense administration fund.
  3. The commission shall adopt rules for the exercise of its authority under this chapter in a manner generally consistent with the notice and comment provisions of section 28-32-11.
  4. Notwithstanding any provision of state law making the records confidential, but subject to any prohibitions in federal law, in addition to or in lieu of a subpoena, in determining eligibility for public defender services the commission may obtain access, relevant to making an eligibility determination for indigent defense services, to:
    1. All records of other state and local government agencies relevant to determination of eligibility for indigent defense services, including:
      1. Vital statistics, including records of marriage, birth, and divorce;
      2. Local tax and revenue records, including information on residence address, employer, income, and assets;
      3. Records concerning real and titled personal property;
      4. Records of occupational and professional licenses and records concerning the ownership and control of corporations, partnerships, and other business entities;
      5. Employment security records;
      6. Workforce safety and insurance records pursuant to a release signed by an individual or as otherwise provided in section 65-05-32;
      7. Records of all agencies administering public assistance programs;
      8. Records of the department of transportation, which access is not subject to the requirements in section 39-16-03;
      9. Corrections records;
      10. Law enforcement records; and
      11. Subject to an agreement with the state tax commissioner, state tax and revenue records, including information on residence address, employer, income, and assets; and
    2. Certain information contained in records held by private entities, subject to safeguards on privacy and information security, consisting of:
      1. The name, address, social security number, and other requested relevant income or asset information of the individual and the name and address of the employer of the individual, as appearing in customer records of public utilities, including cellular and wireless telephone service providers and cable television companies, pursuant to an administrative subpoena if requested; and
      2. Information on assets and liabilities of the individual held by financial institutions.
  5. If a government agency or private entity denies the commission access to records under subsection 4, the denial must include a statement of the legal authority for the denial.

Source:

S.L. 2005, ch. 538, § 2; 2017, ch. 377, §§ 1, 2, eff August 1, 2017.

54-61-02.1. Contract services.

The commission on legal counsel for indigents shall contract for public defender services at a minimum level of fifty percent of its biennial caseload.

Source:

S.L. 2009, ch. 51, § 2.

54-61-03. Commission director — Responsibilities.

  1. The commission shall appoint a director who must be chosen on the basis of training, experience, and other qualifications considered appropriate. The director must be an attorney licensed and eligible to practice law in this state at the time of appointment and at all times during service as director. The director may be removed for cause by a majority vote of commission members.
  2. The director shall:
    1. Assist the commission in developing standards for the delivery of adequate indigent defense services;
    2. Administer and coordinate delivery of indigent defense services and supervise compliance with commission standards;
    3. Recommend the establishment of public defender offices when considered necessary and appropriate to the delivery of adequate indigent defense services;
    4. Conduct regular training programs for contract counsel and public defenders;
    5. Subject to policies and procedures established by the commission, hire the professional, technical, and support personnel, including attorneys to serve as public defenders, considered reasonably necessary for the efficient delivery of indigent defense services;
    6. Prepare and submit to the commission a proposed biennial budget for the provision of indigent defense services; an annual report containing pertinent data on the operation, needs, and costs of the indigent defense contract system and any established public defender offices; and any other information as the commission may require;
    7. Submit the annual report required under subdivision f to the legislative council; and
    8. Perform other duties as the commission may assign.

Source:

S.L. 2005, ch. 538, § 3.

54-61-04. Records, files, and information — Accessibility — Confidentiality.

Except as otherwise provided in this section, any file, record, or information regarding representation of a party under sections 54-61-01 through 54-61-03 which is attorney work-product or otherwise subject to any attorney-client privilege is confidential and may not be disclosed except in accordance with a court order or in response to applicable discovery rules. Any file, record, or information regarding representation of a party under this chapter which is attorney work product or otherwise subject to any attorney - client privilege may be disclosed to the party to whom representation was provided, the attorney who provided the representation, and newly assigned counsel with consent of the represented party. All other case-related records are exempt from disclosure except as otherwise provided in rules adopted by the commission. Information or records obtained by the commission relating to allegations of misconduct by an attorney in the employ of, or providing indigent services for, the commission are exempt from disclosure except as otherwise provided in rules adopted by the commission unless and until the matter is referred for formal disposition under rules adopted by the supreme court.

Source:

S.L. 2005, ch. 538, § 4; 2007, ch. 495, § 1; 2009, ch. 520, § 2; 2019, ch. 471, § 1, eff August 1, 2019.

54-61-05. Criminal history record checks.

The commission may require a volunteer or final applicant for employment to submit to a statewide and nationwide criminal history record check. The nationwide criminal history record check must be conducted in the manner provided in section 12-60-24.

Source:

S.L. 2021, ch. 447, § 2, eff August 1, 2021.

CHAPTER 54-62 Faith-Based And Community Initiatives

54-62-01. Office of faith-based and community initiatives established.

The office of faith-based and community initiatives is established within the department of commerce. The office of faith-based and community initiatives has lead responsibility to establish policies, priorities, and objectives for the state’s comprehensive effort to enlist, equip, enable, empower, and expand the work of faith-based and community organizations to the extent permitted by law. The commissioner of the department of commerce shall designate a member of the department of commerce staff to serve as director of the office of faith-based and community initiatives. The department of commerce shall provide other staff services to assist the director.

Source:

S.L. 2005, ch. 539, § 1; 2007, ch. 28, § 8.

54-62-02. Functions.

The principal functions of the office of faith-based and community initiatives are to:

  1. Develop, lead, and coordinate the state’s policy agenda affecting faith-based and community programs and initiatives; expand the role of those efforts in communities; and increase their capacity through executive action, legislation, federal and private funding, and regulatory relief;
  2. Coordinate public education activities designed to mobilize public support for faith-based and community initiatives through volunteerism, special projects, demonstration pilots, and public and private partnerships;
  3. Encourage private charitable giving to support faith-based and community initiatives;
  4. Bring concerns, ideas, and policy options to the governor and legislative assembly for assisting, strengthening, and replicating successful faith-based and community programs;
  5. Provide policy and legal education to state, local, and community policymakers and public officials seeking ways to empower faith-based and community organizations and to improve the opportunities, capacity, and expertise of those groups;
  6. Develop and implement strategic initiatives to strengthen the institutions of civil society and the state’s families and communities;
  7. Encourage innovative grassroots, nonprofit organizations, and civic initiatives; and
  8. Ensure that the efforts of faith-based and community organizations meet high standards of excellence and accountability.

Source:

S.L. 2005, ch. 539, § 2.

54-62-03. Advisory commission. [Repealed]

Repealed by S.L. 2013, ch. 177, § 4.

Effective Date.

The repeal of this section by section 4 of chapter 177, S.L. 2013 became effective August 1, 2013.

CHAPTER 54-63 Renewable Energy Council

54-63-00.1. Definitions.

As used in this chapter, “advanced biofuel” means fuel derived from renewable biomass and includes:

  1. Biofuel derived from cellulose, hemicellulose, or lignin;
  2. Biofuel derived from sugar and starch other than ethanol derived from corn kernel starch;
  3. Biofuel derived from waste material, including crop residue, other vegetative waste material, animal waste, food waste, and yard waste;
  4. Diesel-equivalent fuel derived from renewable biomass, including vegetable oil and animal fat;
  5. Biogas, including landfill gas and sewage waste treatment gas, produced through the conversion of organic matter from renewable biomass;
  6. Butanol or other alcohols produced through the conversion of organic matter from renewable biomass; and
  7. Other fuel derived from cellulosic biomass.

Source:

S.L. 2009, ch. 521, § 3.

54-63-01. Renewable energy council — Composition.

The industrial commission shall consult with the renewable energy council in matters of policy affecting the administration of the renewable energy development fund.

  1. The renewable energy council consists of:
    1. The commissioner of commerce or the commissioner’s designee.
    2. A member with a substantial interest in the agriculture industry appointed by the governor.
    3. A member with a substantial interest in the biodiesel industry appointed by the governor representing biodiesel interests.
    4. A member with a substantial interest in the biomass industry appointed by the governor representing biomass interests.
    5. A member with a substantial interest in the wind industry appointed by the governor representing wind interests.
    6. A member with a substantial interest in the ethanol industry appointed by the governor representing ethanol interests.
    7. A member with a substantial interest in advanced biofuel and sugar-based biofuel, appointed by the governor.
  2. Subject to subsection 6, the terms of office for members of the council are three years but of those first appointed, two serve for one year, two serve for two years, and two serve for three years.
  3. The commissioner of commerce shall serve as chairman.
  4. The council shall have at least one regular meeting each year and such additional meetings as the chairman determines necessary at a time and place to be fixed by the chairman. Special meetings must be called by the chairman on written request of any three members. Four members constitute a quorum.
  5. The council shall recommend to the industrial commission the approval of grants, loans, or other financial assistance necessary or appropriate for funding, research, development, marketing, and educational projects or activities and any other matters related to this chapter.
  6. Members of the council serve at the pleasure of the governor.

Source:

S.L. 2007, ch. 496, § 7; 2009, ch. 521, § 4.

Law Reviews.

North Dakota Law Review: Energy Symposium: Article: Rethinking A Twenty-First Century Model For Energy Development, 87 N.D. L. Rev. 691 (2011).

54-63-02. Access to council records.

  1. Materials and data submitted to, or made or received by, the council or industrial commission, to the extent that the council or industrial commission determines the materials or data consist of trade secrets or commercial, financial, or proprietary information of individuals or entities applying to or contracting with the commission or receiving council or industrial commission services under this chapter, are subject to section 44-04-18.4.
    1. A person or entity must file a request with the council or industrial commission to have material designated as confidential under subsection 1. The request must contain any information required by the council or industrial commission and must include at least:
      1. A general description of the nature of the information sought to be protected.
      2. An explanation of why the information derives independent economic value, actual or potential, from not being generally known to other persons.
      3. An explanation of why the information is not readily ascertainable by proper means by other persons.
      4. A general description of a person or entity that may obtain economic value from disclosure or use of the information, and how the person or entity may obtain this value.
      5. A description of the efforts used to maintain the secrecy of the information.
    2. The fact that a request has been made is exempt.
  2. The information submitted pursuant to subsection 2 is confidential. The council or industrial commission shall examine the request and determine whether the information is relevant to the matter at hand and is a trade secret under the definition in section 47-25.1-01 or 44-04-18.4. If the council or industrial commission determines the information is either not relevant or not a trade secret, the council or industrial commission shall notify the requester and the requester may ask for the return of the information and request within ten days of the notice. If no return is sought, the information and request are a public record.
  3. The names or identities of independent technical reviewers on a project or program and the names of council members making recommendations are confidential, may not be disclosed by the council, and are not public records subject to section 44-04-18 or section 6 of article XI of the Constitution of North Dakota.

Source:

S.L. 2007, ch. 496, § 7.

54-63-03. Industrial commission powers.

  1. The industrial commission may:
    1. Make grants or loans, and provide other forms of financial assistance as necessary or appropriate, to qualified persons for funding research, development, marketing, and educational projects or activities, feasibility studies, applied research and demonstrations, venture capital investments, and low-interest loans and loan buydowns to foster the development of renewable energy, including wind, biofuels, biomass, solar, hydroelectric, geothermal, and hydrogen, that is produced from the foregoing renewable energy sources. Any financial assistance that the commission awards to a project must not be the project’s sole support. Any financial assistance the commission awards must be conditioned on the assurance that the applicant or a third party will support the project by either monetary or nonmonetary means. The amount of this additional support is at the commission’s discretion.
    2. Provide incentives for multifeed facilities to process corn ethanol, cellulosic ethanol, canola biodiesel, and soy biodiesel.
    3. Provide incentives for scaleable technologies.
    4. Provide incentives to increase research and utilization of renewable energy coproduct utilization for livestock feed, human food products, and industrial use technologies.
    5. Execute contracts and all other instruments necessary or convenient for the performance of its powers and functions under this chapter.
    6. Accept aid, grants, or contributions of money or other things of value from any source, to be held, used, and applied to carry out this chapter, subject to the conditions upon which the aid, grants, or contributions are made, including aid, grants, or contributions from any department, agency, or instrumentality of the United States for any purpose consistent with this chapter.
    7. Establish interest buydown programs for equipment needed for production, harvest, storage, and transport under the special private lands open to sportsmen pilot program for native grass stands.
    8. Fund technical assistance from the university system and private entities to producers.
    9. Establish incentive programs that have as their purpose demonstrating to the agriculture community the commercial feasibility of producing, harvesting, storing, and delivering biomass feedstock. The program may include providing funds to producers of perennial biomass crops, including native grasses, so that such producers have an income during the time needed for these plants to mature and become ready for harvest.
    10. Provide incentives to support research and demonstration projects and obtain matching grants for projects involving advanced biofuels and sugar-based biofuels.
  2. The industrial commission shall contract with the department of commerce to provide technical assistance to the renewable energy council and the industrial commission to carry out and effectuate the purposes of this chapter, including pursuit of aid, grants, or contributions of money or other things of value from any source for any purpose consistent with this chapter. The department may contract with a public or private third party to provide any or all of the technical assistance necessary to implement the purposes of this chapter.

Source:

S.L. 2007, ch. 496, § 7; 2009, ch. 521, § 5.

54-63-04. Renewable energy development fund — Continuing appropriation.

The renewable energy development fund is a special fund in the state treasury. All funds in the renewable energy development fund are appropriated to the industrial commission on a continuing basis for the purpose of carrying out and effectuating this chapter. Interest earned by the fund must be credited to the fund.

Source:

S.L. 2007, ch. 496, § 7.

Chapter 54-63.1 Clean Sustainable Energy Authority

54-63.1-01. Definitions.

As used in this chapter:

  1. “Authority” means the clean sustainable energy authority.
  2. “Clean” means a technology or concept that reduces emissions to the air, water, or land and meets or exceeds state and federal environmental regulations.
  3. “Commission” means the industrial commission.
  4. “Fund” means the clean sustainable energy fund.
  5. “Program” means the clean sustainable energy program.
  6. “Sustainable” means a technology or concept that allows the use of a natural resource to be maintained or enhanced through increased efficiency and life cycle benefits while either increasing or not adversely impacting energy security, affordability, reliability, resilience, or national security.

Source:

S.L. 2021, ch. 448, § 3, eff July 1, 2021; 2021, ch. 15, § 29, eff July 1, 2021.

54-63.1-02. Clean sustainable energy authority — Purpose.

There is created the clean sustainable energy authority to support research, development, and technological advancements through partnerships and financial support for the large scale development and commercialization of projects, processes, activities, and technologies that reduce environmental impacts and increase sustainability of energy production and delivery. The purpose of the financial support is to enhance the production of clean sustainable energy, to make the state a world leader in the production of clean sustainable energy, and to diversify and grow the state's economy.

Source:

S.L. 2021, ch. 448, § 3, eff July 1, 2021; 2021, ch. 15, § 29, eff July 1, 2021.

54-63.1-03. Clean sustainable energy authority — Membership — Meetings.

  1. The clean sustainable energy authority consists of sixteen members, including eight voting members and eight nonvoting technical advisors.
  2. The eight voting members consist of:
    1. One member appointed by the legislative management to serve as chairman;
    2. Two members appointed by the lignite research council;
    3. Two members appointed by the oil and gas research council;
    4. Two members appointed by the renewable energy council; and
    5. One member appointed by the western Dakota energy association.
  3. The eight nonvoting technical advisors consist of:
    1. One member appointed by the North Dakota outdoor heritage fund advisory board;
    2. The commissioner of commerce or the commissioner's designee;
    3. The director of the department of environmental quality or the director's designee;
    4. The director of mineral resources or the director's designee;
    5. The director of the North Dakota pipeline authority or the director's designee;
    6. The director of the North Dakota transmission authority or the director's designee;
    7. The director of the state energy research center or the director's designee;
    8. The president of the Bank of North Dakota or the president's designee;
  4. The term of office for the chairman is two years. The term of office for the other voting members is four years, and the other voting members may not serve more than two consecutive terms. The terms of office for the voting members commence on July first. The initial terms for the voting members of the authority must be staggered following a method determined by the authority.
  5. The authority shall meet at least semiannually. The chairman shall call a meeting upon written request from three voting members of the authority. Five voting members is a quorum at any meeting.
  6. The authority may not forward a recommendation to the commission unless the recommendation fulfills the purposes of this chapter and is approved by a majority of the voting members of the authority.

Source:

S.L. 2021, ch. 448, § 3, eff July 1, 2021; 2021, ch. 15, § 29, eff July 1, 2021.

54-63.1-04. Clean sustainable energy authority — Duties — Report.

  1. The authority shall make recommendations to the commission for program guidelines, including eligibility criteria for entities to receive funding under this chapter.
  2. The nonvoting technical advisors shall develop a process to review and evaluate projects to determine the technical merits and feasibility of any application, including potential benefits of the development of low-emission technology, the expansion of the development of the state's natural resources or energy production, and the contribution to the economic diversity in the state.
  3. The authority may develop a loan program or a loan guarantee program under the clean sustainable energy fund. The Bank of North Dakota shall administer the loan program or loan guarantee program. The interest rate of a loan under this program may not exceed two percent per year. The maximum term of a loan under this section must be approved by the commission based on a recommendation from the authority. The Bank shall review applications for loans or loan guarantees and shall consider the business plan, financial statements, and other information necessary to evaluate the application. To be eligible for a loan or loan guarantee, an entity shall agree to provide the Bank of North Dakota with information as requested. The Bank of North Dakota may develop policies for loan participation with local financial institutions.
  4. The authority shall make recommendations to the commission for grant awards, loan approvals, or other financial assistance to provide funding to support research, development, and technological advancements for the large scale development and commercialization of projects, processes, activities, and technologies that reduce environmental impacts and increase sustainability of energy production and delivery in accordance with this chapter. Any projects, processes, activities, and technologies selected by the commission for funding must have been recommended by the authority, must demonstrate feasibility based on a technical review conducted by the nonvoting technical advisors of the authority, must have other sources of financial support, and must achieve the priorities and purposes of the program. At the request of the authority, the Bank of North Dakota shall provide a recommendation regarding the economic feasibility of a project, process, activity, or technology under consideration by the authority. The Bank shall review the business plan, financial statements, and other information necessary to provide a recommendation.
  5. The authority may consult with any other state agency necessary to carry out the purposes under this chapter.
  6. Each biennium, the authority shall provide a written report to the legislative management regarding its activities and the program's financial impact on state revenues and the state's economy.

Source:

S.L. 2021, ch. 448, § 3, eff July 1, 2021; 2021, ch. 15, § 29, eff July 1, 2021.

54-63.1-05. Clean sustainable energy program — Powers and duties of the commission.

  1. The commission is granted all the powers necessary to carry out the purposes of this chapter, including the power to:
    1. Provide grants, loans, or other forms of financial assistance to qualified entities for the research, demonstration, development, and commercialization of projects, processes, activities, and technologies that reduce environmental impacts and use energy sources derived from within the state. Other forms of financial assistance include venture capital investments and interest rate buydowns. The commission must require an entity to provide assurance of financial and other types of support that demonstrate a commitment to the project, process, activity, or technology. The commission may develop policies for the approval of loans or loan guarantees issued from the clean sustainable energy fund.
    2. Enter into contracts or agreements to carry out the purposes of this chapter, including contracting for the administration of the program.
    3. Keep accurate records of all financial transactions performed under this chapter.
    4. Cooperate with any private, local, state, or national organization to make contracts and agreements for programs that advance the mission of the program.
    5. Accept loan repayments, donations, grants, contributions, or gifts from any public or private source to carry out the purposes of this chapter, which must be deposited in the clean sustainable energy fund.
    6. Make guidelines necessary to carry out the purposes of this chapter, including guidelines relating to the ownership of intellectual property.
    7. Borrow from the Bank of North Dakota, as authorized by the legislative assembly, to make loans or loan guarantees under a loan program or loan guarantee program developed by the clean sustainable energy authority.
  2. The commission may acquire, purchase, hold, use, lease, license, sell, transfer, or dispose of any interest in an asset necessary for clean sustainable energy technology development to facilitate the production, transportation, distribution, or delivery of clean energy commodities produced in the state as a purchases of last resort.
  3. The commission shall provide administrative support to the authority for the operation of the program, including the preparation of forms, review of applications, and ongoing review of any contracts. The commission may contract with a public or private entity to provide technical assistance necessary to implement the purposes of this chapter.
  4. The commission is not subject to the reporting requirements under chapter 54-60.1.

Source:

S.L. 2021, ch. 448, § 3, eff July 1, 2021; 2021, ch. 15, § 29, eff July 1, 2021.

Note.

Section 54-63.1-05 was amended 2 times by the 2021 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 3 of Chapter 448, Session Laws 2021, House Bill 1452; and Section 29 of Chapter 15, Session Laws 2021, Bill 1015.

54-63.1-06. Clean sustainable energy program — Access to records.

  1. To the extent the commission or authority determines the materials or data consist of trade secrets or commercial, financial, or proprietary information of individuals or entities applying to or contracting with the commission or receiving commission services under this chapter, materials and data submitted to, made by, or received by the commission or authority, are not public records subject to section 44-04-18 and section 6 of article XI of the Constitution of North Dakota, and are subject to section 44-04-18.4.
  2. A person or entity may file a request with the commission to have material designated as confidential under subsection 1. The request must contain any information required by the commission and must include at least the following:
    1. A general description of the nature of the information sought to be protected.
    2. An explanation of why the information derives independent economic value, actual or potential, from not being generally known to other persons.
    3. An explanation of why the information is not readily ascertainable by proper means of other persons.
    4. A general description of any person that may obtain economic value from disclosure or use of the information, and how the person may obtain this value.
    5. A description of the efforts used to maintain the secrecy of the information.
  3. Any request under subsection 2 is confidential. The commission shall examine the request and determine whether the information is relevant to the matter at hand and is a trade secret under the definition in section 47-25.1-01 or 44-04-18.4. If the commission determines the information is either not relevant or not a trade secret, the commission shall notify the requester and the requester may ask for the return of the information and the request within ten days of the notice. If no return is sought, the information and request are public record.
  4. The names or identities of independent technical reviewers on a project or program are confidential, may not be disclosed by the commission, and are not public records subject to section 44-04-18 or section 6 of article XI of the Constitution of North Dakota.

Source:

S.L. 2021, ch. 448, § 3, eff July 1, 2021; 2021, ch. 15, § 29, eff July 1, 2021.

54-63.1-07. Clean sustainable energy fund — Continuing appropriation — Line of credit — Loans — Repayments.

  1. There is created in the state treasury the clean sustainable energy fund. The fund consists of all moneys transferred to the fund by the legislative assembly; loan proceeds; interest upon moneys in the fund; principal and interest payments to the fund; and donations, grants, and other contributions received by the commission for deposit in the fund. All moneys in the fund are appropriated to the commission on a continuing basis to provide grants, loans, and other financial assistance and for administrative and operating costs of the authority and program pursuant to the provisions under this chapter.
  2. Any bond proceeds deposited in the fund must be used for loans or loan guarantees. The Bank of North Dakota shall deposit in the fund all principal and interest paid on the loans made from the fund. The Bank may use a portion of the interest paid on the outstanding loans as a servicing fee to pay for administrative costs, not to exceed one-half of one percent of the amount of the interest payment. The Bank shall contract with a certified public accounting firm to audit the fund annually if the fund has any outstanding loans. The cost of the audit must be paid from the fund.
  3. The Bank of North Dakota shall extend a line of credit to the industrial commission to support loans or loan guarantees issued from the clean sustainable energy fund. The line of credit may not exceed two hundred fifty million dollars, and the interest rate associated with the line of credit must be the prevailing interest rate charged to North Dakota governmental entities. The industrial commission shall repay the line of credit from moneys available in the clean sustainable energy fund derived from payments received on loans issued under this chapter or other sources. If the moneys available from the clean sustainable energy fund on June 30, 2025, are not sufficient to repay the line of credit, the industrial commission shall request from the legislative assembly a deficiency appropriation to repay the line of credit or the industrial commission may repay the line of credit from other funds, as appropriated by the legislative assembly.
  4. The industrial commission may access the line of credit to the extent needed through June 30, 2025, to provide funding as authorized by the legislative assembly to support loans or loan guarantees issued from the clean sustainable energy fund. Any moneys borrowed from the Bank of North Dakota pursuant to this section must be transferred to the clean sustainable energy fund to support loans or loan guarantees.

Source:

S.L. 2021, ch. 448, § 3, eff July 1, 2021; 2021, ch. 15, § 29, eff July 1, 2021.

Note.

Section 54-63.1-07 was amended 2 times by the 2021 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 3 of Chapter 448, Session Laws 2021, House Bill 1452; and Section 29 of Chapter 15, Session Laws 2021, Bill 1015.

CHAPTER 54-64 Individual Development Accounts

54-64-01. Definitions.

In this chapter, unless the context otherwise requires:

  1. “Community action agency” has the meaning as provided in section 54-44.5-01.
  2. “Division” means the department of commerce division of community services.
  3. “Eligible educational institution” means a division-approved institution of higher education or approved area vocational education school.
  4. “Household” means all individuals who share use of a dwelling unit as primary quarters for living and eating separate from other individuals.
  5. “Individual development account” means a matched savings account opened by a household participating in the North Dakota individual development account program.
  6. “Permissible use” means any of the following:
    1. Tuition at an eligible educational institution and expenses at an eligible educational institution, including books, eligible supplies, and equipment required for courses of instruction.
    2. For first-time home buyers, acquisition costs of acquiring or constructing a principal residence, including any usual or reasonable settlement, financing, or other closing costs. As used in this subdivision, acquisition costs of a principal residence has the same meaning as under section 1034 of the Internal Revenue Code of 1986 which do not exceed one hundred twenty percent of the average area purchase price applicable to the residence determined according to section 143(e)(2) and (3) of the Internal Revenue Code of 1986.
    3. Business capitalization expenses for expenditures on capital, plant, equipment, working capital, and inventory expenses of a legitimate business pursuant to a business plan approved by a community action agency.

Source:

S.L. 2009, ch. 522, § 2.

54-64-02. Funds awarded.

The division shall allocate state funds to participating community action agencies to provide matching funds for eligible individual development accounts. The division shall allocate funds to achieve geographic balance in the eight regions served by this program. The division shall document the capacity of participating community action agencies to manage the program and to raise the private match.

Source:

S.L. 2009, ch. 522, § 2.

54-64-03. Community action agency duties.

In order to be eligible to participate in this program, a community action agency shall:

  1. Provide a separate account for the immediate deposit of program funds;
  2. Establish a process to select participants and describe any priorities for participation;
  3. Enter an individual development account agreement with the household to establish the terms of participation;
  4. Provide households with economic literacy education;
  5. Provide households with asset-specific education;
  6. Provide matching deposits for participating household;
  7. Coordinate with other related public and private programs; and
  8. Establish a process to appeal and mediate disputes.

Source:

S.L. 2009, ch. 522, § 2.

54-64-04. Household eligibility — Participation.

To be eligible for matching funds under this chapter, a household:

  1. Shall sign an individual development account agreement that includes the amount of scheduled deposits into the household’s individual development account, the proposed use of the funds, and the proposed savings goal;
  2. Shall agree to complete an economic literacy training program and asset-specific training; and
  3. At the time of application, must have an income that does not exceed two hundred percent of the federal poverty line.

Source:

S.L. 2009, ch. 522, § 2.

54-64-05. Withdrawal — Matching — Permissible uses.

  1. To receive a match, a participating household must transfer funds withdrawn from the household’s individual development account to the household’s matching fund custodial account held by the community action agency, according to the individual development account agreement. The community action agency shall determine if the participating household’s match request is for a permissible use consistent with the household’s individual development account agreement.
  2. At least quarterly and at the time of an approved withdrawal, the community action agency shall ensure the household’s custodial account contains the applicable matching funds to match the balance in the household’s individual development account, not including interest.
  3. Matches must be provided as follows:
    1. From matching funding provided under this chapter, a matching contribution of no more than one dollar for every one dollar of funds withdrawn from the household’s individual development account, not to exceed a lifetime limit of two thousand dollars; and
    2. From nonstate funds, a matching contribution of no less than one dollar for every one dollar of funds withdrawn from the household’s individual development account, not to exceed a lifetime limit of two thousand dollars.
  4. Upon receipt of transferred custodial account funds, the community action agency shall make a direct payment to the vendor of the goods or services for the permissible use.

Source:

S.L. 2009, ch. 522, § 2.

54-64-06. Consideration for assistance programs.

A state-administered, means-tested program may not adversely consider a household’s individual development account savings and matching funds in determining eligibility for the program.

Source:

S.L. 2009, ch. 522, § 2.

54-64-07. Program reporting.

Quarterly, the fiscal agent on behalf of each community action agency participating in a North Dakota individual development account under this chapter shall report to the division, identifying the participants with accounts; the number of accounts; the amount of savings and matches for each participant’s account; the uses of the account; and the number of businesses, homes, and educational services paid for with money from the account, as well as other information that may be required for the division to administer the program.

Source:

S.L. 2009, ch. 522, § 2.

CHAPTER 54-65 Centers of Research Excellence [Repealed]

Source:

Repealed by S.L. 2019, SB2224, § 5, eff July 1, 2021.

CHAPTER 54-66 State Government Ethics

Source:

S.L. 2019, ch. 472, § 25, eff July 1, 2019.

54-66-01. Definitions.

As used in this chapter, unless the context otherwise requires:

  1. “Accused individual” means a lobbyist, public official, candidate for public office, political committee, or contributor who is alleged to have violated article XIV of the Constitution of North Dakota, this chapter, or another law or rule regarding transparency, corruption, elections, or lobbying.
  2. “Complainant” means a North Dakota resident who, in writing or verbally, submits a complaint to the commission.
  3. “Complaint” means a verbal or written allegation to the commission that a lobbyist, public official, candidate for public office, political committee, or contributor has violated article XIV of the Constitution of North Dakota, this chapter, or another law or rule regarding transparency, corruption, elections, or lobbying.
  4. “Ethics commission” or “commission” means the North Dakota ethics commission established by article XIV of the Constitution of North Dakota.
  5. “Gift” means any item, service, or thing of value not given in exchange for fair market consideration including travel and recreation, except:
    1. Purely informational material;
    2. A campaign contribution; and
    3. An item, service, or thing of value given under conditions that do not raise ethical concerns, as set forth in rules adopted by the ethics commission, to advance opportunities for state residents to meet with public officials in educational and social settings in the state.
  6. “Influence state government action” means promoting or opposing the adoption of a rule by an administrative agency or the commission under chapter 28-32.
  7. “Lobby” means an activity listed in subsection 1 of section 54-05.1-02.
  8. “Lobbyist” means an individual required to register under section 54-05.1-03.
  9. “Public official” means an elected or appointed official of the state’s executive or legislative branch, members of the commission, members of the governor’s cabinet, and employees of the legislative branch.
  10. “Receives the complaint” means one or more members of the commission learn of the complaint.
  11. “Ultimate and true source” means the person that knowingly contributed over two hundred dollars solely to lobby or influence state government action.

Source:

S.L. 2019, ch. 472, § 25, eff July 1, 2019; 2021, ch. 449, § 1, eff August 1, 2021.

54-66-02. Disclosure of ultimate and true source of funds.

  1. A lobbyist who expends an amount greater than two hundred dollars to lobby shall file with the secretary of state a report that includes the known ultimate and true source of funds for the expenditure. The report must be filed with the lobbyist expenditure report required under subsection 2 of section 54-05.1-03.
  2. A person that expends an amount greater than two hundred dollars, not including the individual’s own travel expenses and membership dues, to influence state government action shall file with the secretary of state a report including the known ultimate and true source of funds for the expenditure. A report under this subsection must be filed on or before the August first following the date of the expenditure. The secretary of state shall provide a form for reports under this subsection and make the form electronically accessible to the public. The secretary of state also shall charge and collect fees for late filing of the reports as follows:
    1. Twenty-five dollars for a report filed within sixty days after the deadline; or
    2. Fifty dollars for a report filed more than sixty days after the deadline.
  3. The secretary of state shall compile the reports required under this section and make the reports electronically accessible to the public.
  4. A resident taxpayer may commence an action in a district court of this state against a person required to comply with this section to compel compliance if all other enforcement measures under this chapter have been exhausted and the taxpayer reasonably believes the person has failed to comply with this section.
  5. The secretary of state shall determine adjustments for inflation of the reporting thresholds in this section and instruct persons submitting reports under this section of the adjustments. On January first of each year, the secretary shall determine whether the accumulated change in the consumer price index for all urban consumers (all items, United States city average), as applied to each reporting threshold in this section, would result in an adjustment of at least ten dollars of the threshold in effect on that date. If so, the secretary of state shall deem the reporting threshold adjusted by ten dollars.

Source:

S.L. 2019, ch. 472, § 25, eff January 5, 2021.

54-66-03. Lobbyist gifts — Penalty.

  1. A lobbyist may not give, offer, solicit, initiate, or facilitate a gift knowingly to a public official, and a public official may not accept a gift from a lobbyist knowingly.
  2. The prohibition in subsection 1 does not apply when a lobbyist gives, offers, solicits, initiates, or facilitates, or a public official accepts a gift to or from a family member.
  3. The commission may assess a civil penalty upon any individual who violates this section.
    1. If the gift has a value of five hundred dollars or more, the civil penalty may be up to two times the value of the gift.
    2. If the gift has a value of less than five hundred dollars, the civil penalty may be two times the value of the gift and may be up to one thousand dollars.

Source:

S.L. 2019, ch. 472, § 25, eff January 5, 2021; 2021, ch. 450, § 2, eff April 20, 2021.

54-66-04. Ethics commission member terms — Meetings — Code of ethics — Compensation — Office.

  1. The terms of the initial members of the ethics commission must be staggered to ensure no more than two members’ terms expire in one year. The terms of the initial members may be less than four years to accommodate the required staggering of terms.
  2. Unless the complaint at issue has resulted in the imposition of a penalty or referral for enforcement under section 54-66-09, any portion of a meeting during which commission members discuss complaints, informal resolutions, attempts to informally resolve complaints, investigations, or referrals under this chapter, the identity of an accused individual or complainant, or any other matter arising from a complaint are closed meetings.
  3. The commission shall abide by a code of ethics adopted in a public meeting. The code of ethics must specify when a commission member is disqualified from participating in matters before the commission.
  4. Ethics commission members are entitled to:
    1. Compensation for each day necessarily spent conducting commission business in the amount provided for members of the legislative management under section 54-35-10; and
    2. Payment for mileage and travel expenses necessarily incurred in the conduct of commission business as provided under sections 44-08-04 and 54-06-09.
  5. The director of the office of management and budget shall allocate office space in the state capitol for the ethics commission, or, if office space in the capitol is unavailable, shall negotiate for, contract for, and obtain office space for the ethics commission in the city of Bismarck or in the Bismarck area. The ethics commission’s office space may not be located in the office space of any other government agency, board, commission, or other governmental entity, and must provide sufficient privacy and security for the ethics commission to conduct its business. The director shall charge the ethics commission an amount equal to the fair value of the office space and related services the office of management and budget renders to the ethics commission.

Source:

S.L. 2019, ch. 472, § 25, eff July 1, 2019.

54-66-04.1. Commission delegation of duties.

The commission may delegate duties to the commission’s executive director as necessary to assure the efficient administration of the commission’s responsibilities. Delegation of duties to the executive director must be made through rules adopted by the commission at a public meeting. The commission may reconsider, modify, or reverse actions taken by the executive director pursuant to a delegated duty.

Source:

S.L. 2021, HB1043, § 8, eff August 1, 2021.

54-66-04.2. Advisory opinions — Authority — Effect.

  1. In response to a request from a public official, candidate for elected office, or lobbyist, the ethics commission may provide a written advisory opinion regarding the application of the following to specified hypothetical facts or prospective conduct:
    1. Article XIV of the Constitution of North Dakota; or
    2. State statutes and ethics commission rules related to transparency, corruption, elections, and lobbying.
  2. Within fourteen days after receiving a request for a written advisory opinion, the ethics commission shall notify the requester whether the commission will provide an opinion.
  3. Within ninety days after notifying a requester a written advisory opinion will be provided, the ethics commission shall issue the opinion.
  4. Criminal and civil penalties may not be imposed upon an individual for an action taken in accordance with an opinion issued under this section if:
    1. The individual acts in good faith; and
    2. The material facts surrounding the action taken are substantially the same as the conduct presented in the opinion.
  5. Opinions and requests for opinions under this section are open records, except names of persons in the opinions and requests are exempt records.
  6. The ethics commission shall publish all written advisory opinions issued under this section on a website that is accessible to the public.

Source:

S.L. 2021, ch. 449, § 9, eff August 1, 2021; 2021, ch. 451, § 1, eff August 1, 2021.

Note.

Section 54-66-04.2 was amended 2 times by the 2021 Legislative Assembly. Pursuant to Section 1-02-09.1, the section is printed above to harmonize and give effect to the changes made in Section 9 of Chapter 449, Session Laws 2021, House Bill 1043; and Section 1 of Chapter 451, Session Laws 2021, Senate Bill 2034.

54-66-05. Making a complaint — Summary dismissal of complaint.

  1. A complaint may be made to the commission orally or in writing. If a complainant does not provide the complainant’s name, address, and telephone number with the complaint, the ethics commission may not investigate or take other action regarding the complaint. The commission shall summarize each oral complaint in writing unless the complaint must be disregarded under this section.
  2. Upon receipt of a complaint or information regarding a violation, the commission may summarily dismiss the complaint or decline to proceed with a complaint if the alleged violation does not fall within the commission’s jurisdiction, is insufficient to identify a possible violation, or fails to comply with rules adopted by the commission. In lieu of summary dismissal, the commission may refer the matter under section 54-66-08.
  3. If a complainant would like the complainant’s identity to remain confidential, the commission may not release the complainant’s name and address to the accused individual without the authorization of the complainant. If the complainant does not authorize release of the complainant’s name and address to the accused individual, the statement of the complainant may not be used as evidence of a violation.
  4. If the commission receives an anonymous complaint that contains documentary or real evidence of possible criminal conduct, the commission may refer the matter to the appropriate law enforcement agency as provided under section 54-66-08, and may not otherwise divulge the documentary or real evidence.

Source:

S.L. 2019, ch. 472, § 25, eff July 1, 2019; 2021, ch. 449, § 2, eff August 1, 2021.

54-66-06. Informing the accused individual — Written response permitted.

The commission shall inform an accused individual of the complaint and include the written complaint or written summary of the oral complaint, witness statements, and other documentary evidence considered as soon as reasonably possible but no later than twenty calendar days after the commission receives the complaint. The accused individual may respond to the complaint in writing within twenty calendar days of receipt of the complaint or summary of the complaint.

Source:

S.L. 2019, ch. 472, § 25, eff July 1, 2019; 2021, ch. 449, § 3, eff August 1, 2021.

54-66-07. Informal resolution.

The commission shall attempt to negotiate or mediate an informal resolution between the accused individual and the complainant unless the commission summarily dismissed the complaint under section 54-66-05 . The accused individual may be accompanied by legal counsel in a negotiation or mediation.

Source:

S.L. 2019, ch. 472, § 25, eff July 1, 2019; 2021, ch. 449, § 4, eff August 1, 2021.

54-66-08. Investigations — Referrals.

  1. If an informal resolution is not reached under section 54-66-07, the ethics commission may:
    1. Dismiss the complaint;
    2. Require ethics commission staff to investigate the allegations in the complaint; or
    3. Engage an outside investigator to investigate allegations in the complaint.
  2. If the commission believes a complaint contains allegations of criminal conduct, the matter must be coordinated with the appropriate law enforcement agency with jurisdiction over the offense. If the law enforcement agency agrees to accept a referral for possible criminal prosecution, the commission may not take further action on the complaint until the law enforcement agency informs the commission law enforcement proceedings regarding the complaint are complete. If the law enforcement agency declines a referral for prosecution, the commission may investigate the complaint under the rules adopted by the commission. Unless the agency accepting the referral objects, the commission shall inform the complainant and respondent as soon as reasonably possible of a referral and the nature of the referred allegations.
  3. The commission may require the testimony of a witness or the production of a book, record, document, data, or other object at any of the commission’s investigator interviews or proceedings held in connection with the investigation of a complaint.

Source:

S.L. 2019, ch. 472, § 25, eff July 1, 2019; 2021, ch. 449, § 5, eff August 1, 2021.

54-66-09. Investigation findings — Ethics commission determinations.

  1. An investigator, other than a law enforcement agency, of a complaint shall provide written findings of the investigation to the ethics commission within a reasonable amount of time. The ethics commission shall provide copies of the written findings and evidence considered to the accused individual, who may respond to the commission in person or in writing within a reasonable time. If the accused individual responds in person, no fewer than three members of the commission shall meet in a closed meeting with the accused individual. An accused individual may be accompanied by legal counsel when responding to the commission in person.
  2. After providing a reasonable time for an accused individual to respond to the investigation findings and considering any response to the findings, the ethics commission shall determine whether a violation of article XIV of the Constitution of North Dakota, this chapter, or another law or rule regarding transparency, corruption, elections, or lobbying occurred, and inform the accused individual of the determination. If the commission determined a violation occurred, the commission may impose a penalty authorized by law for the violation or refer the matter to the agency with enforcement authority over the violation.
  3. The commission may not terminate the employment of a public official or otherwise remove a public official from the public official’s public office.
  4. The ethics commission may not reconsider, invalidate, or overturn a decision, ruling, recommended finding of fact, recommended conclusion of law, finding of fact, conclusion of law, or order by a hearing officer under chapter 28-32 on the grounds the hearing officer failed to grant a request for disqualification under section 28-32-27 or failed to comply with subsection 5 of section 2 of article XIV of the Constitution of North Dakota.

Source:

S.L. 2019, ch. 472, § 25, eff July 1, 2019; 2021, ch. 449, § 6, eff August 1, 2021.

54-66-10. Appeals.

An accused individual may appeal a finding of the ethics commission to the district court of the county where the accused individual resides.

Source:

S.L. 2019, ch. 472, § 25, eff July 1, 2019.

54-66-11. Rulemaking.

When adopting rules, the ethics commission shall follow the provisions in chapter 28-32 which are specifically applicable to the commission.

Source:

S.L. 2019, ch. 472, § 25, eff July 1, 2019.

54-66-12. Confidential information.

  1. The following information is a confidential record as defined in section 44-04-17.1, unless the commission has determined the accused individual violated article XIV of the Constitution of North Dakota, this chapter, or another law or rule regarding transparency, corruption, elections, or lobbying, and a court affirmed the determination if appealed, except the information may be disclosed as required by law or as necessary to conduct an investigation arising from a complaint:
    1. Information revealing the contents of a complaint;
    2. Information that reasonably may be used to identify an accused individual; and
    3. Information relating to or created as part of an investigation of a complaint.
  2. If a complaint is informally resolved under section 54-66-07, the following information is a confidential record as defined in section 44-04-17.1:
    1. Information revealing the contents of the complaint;
    2. Information that reasonably may be used to identify the accused individual;
    3. Information relating to or created as part of the process leading to the informal resolution; and
    4. Information revealing the informal resolution.
  3. Information that reasonably may be used to identify the complainant is confidential unless the complainant waives confidentiality, authorizes its disclosure, or divulges information that reasonably would identify the complainant. Information, including evidence under consideration by the investigator or commission, deemed confidential under this subsection may be disclosed as required by law or as necessary to conduct an investigation arising from a complaint to include disclosure of evidence being considered to an accused individual.
  4. The information deemed confidential in subsections 1 and 2 may be disclosed by the ethics commission if the accused individual agrees to the disclosure.

Source:

S.L. 2019, ch. 472, § 25, eff July 1, 2019; 2021, ch. 449, § 7, eff August 1, 2021.

54-66-13. Restriction on lobbying by public officials — Penalty.

A knowing violation of subsection 2 of section 2 of article XIV of the Constitution of North Dakota is a class A misdemeanor. The ethics commission shall assess a civil penalty of up to one thousand dollars on any individual who knowingly violates the subsection.

Source:

S.L. 2019, ch. 472, § 25, eff July 1, 2019.

54-66-14. Attorney general to provide legal services.

The attorney general shall serve as legal counsel for the commission unless the commission objects to representation by the attorney general in a specific matter. When a conflict of interest prevents the attorney general from providing legal services to the commission, the attorney general may appoint a special assistant attorney general to serve as legal counsel for the commission.

Source:

S.L. 2019, ch. 472, § 25, eff July 1, 2019.

54-66-15. Prohibition on delivering campaign contributions — Penalty.

A lobbyist may not deliver knowingly a campaign contribution made by another person in violation of subsection 3 of section 2 of article XIV of the Constitution of North Dakota. For a first violation, the commission may assess a civil penalty of five hundred dollars upon any individual who knowingly violates this section. For a second and subsequent knowing violation of this section, the person is guilty of a class B misdemeanor, and, if the lobbyist is a registered lobbyist and the secretary of state is notified of the violation by the commission, a state’s attorney, or a court, the secretary of state shall revoke the lobbyist’s registration. For purposes of this section, “deliver” means to transport, transfer, or otherwise transmit, either physically or electronically. This prohibition does not apply to an individual who delivers a campaign contribution to the individual’s own campaign or to the campaign of the individual’s immediate family member. This prohibition may not be interpreted to prohibit any person from making a campaign contribution, encouraging others to make a campaign contribution, or otherwise supporting or opposing a candidate.

Source:

S.L. 2019, ch. 472, § 25, eff July 1, 2019; 2021, ch. 450, § 3, eff April 20, 2021.

54-66-16. Removal of ethics commission members.

  1. An ethics commission member may be removed from office for:
    1. Substantial neglect of duty;
    2. Gross misconduct in office;
    3. Violation of the commission’s code of ethics; or
    4. Willful or habitual neglect or refusal to perform the duties of the member.
  2. Removal of an ethics commission member under subsection 1 requires agreement by a majority of:
    1. The governor;
    2. The majority leader of the senate; and
    3. The minority leader of the senate.

Source:

S.L. 2019, ch. 472, § 25, eff July 1, 2019.

54-66-17. Participation in quasi-judicial proceedings.

For purposes of subsection 5 of section 2 of article XIV of the Constitution of North Dakota, an individual is not disqualified from participating in any capacity in a quasi-judicial proceeding, including an adjudicative proceeding under chapter 28-32, due to an investment in a mutual fund, an ownership interest in one of the parties to the proceeding which is shared by the general public, and an investment or ownership interest in a retirement account of one of the parties to the proceeding.

Source:

S.L. 2019, ch. 472, § 25, eff July 1, 2019.