15-01-01. Board — Membership — Officers.

The governor, secretary of state, state treasurer, attorney general, and superintendent of public instruction shall constitute the “board of university and school lands”. The governor must be the chairman, the secretary of state must be the vice chairman, and the commissioner of university and school lands must be the secretary of the board. In the absence of the commissioner at any meeting of the board, the deputy commissioner of university and school lands shall act as secretary. When acting as the board of university and school lands, the members of the board shall act in person and may not be represented by any assistant, clerk, or deputy.

Source: S.L. 1893, ch. 118, § 2; R.C. 1895, § 169; R.C. 1899, § 169; R.C. 1905, § 152; C.L. 1913, § 284; S.L. 1917, ch. 203, § 1; 1925 Supp., § 284; R.C. 1943, § 15-0101; S.L. 1987, ch. 187, § 1.

Cross-References.

Constitution and powers of board of university and school lands, see N.D. Const., art. IX, § 3.

Law Reviews.

State Lands: What Are We Doing? Thomas O. Smith, 51 N.D. L. Rev. 477 (1975).

15-01-02. Powers — Control of public lands and permanent funds.

The board has:

1. Full control of the selection, appraisement, rental, sale, disposal, and management of:
   1. Lands donated or granted by or received from the United States or from any other source for the support and maintenance of the common schools.
   2. All lands which fall to the state by escheat.
   3. All lands donated or granted by or received from the United States or from any other source for the maintenance of the educational, penal, or charitable institutions.
   4. All lands acquired by the state through the investment of the permanent school funds of the state as the result of mortgage foreclosure or otherwise.
2. Full control of the investment of the permanent funds derived from the sale of any of the lands described in subsection 1.
3. Full control of such percent of the proceeds of any sale of public lands as may be granted to the state by the United States on such sale.
4. Full control of the proceeds of any property that fall to the state by escheat and of the proceeds of all gifts and donations to the state for the support or maintenance of the common schools, and of all other property otherwise acquired by the state for the maintenance of the common schools. Any gift to the state not specifically appropriated to any other purpose must be considered as a gift for the support and maintenance of the common schools.
5. Authority to expend moneys for the purpose of making refunds in cases in which an error has been made by the board, or a person dealing with the board, with regard to any of the lands, minerals, funds, proceeds, or any other kind of property managed by the board. Moneys expended to make refunds must come from the same fund or account into which the money to be refunded was originally placed.
6. Authority to award and distribute energy infrastructure and impact grants from moneys deposited in the oil and gas impact grant fund, except that grants awarded annually may not exceed sixty percent of the biennial appropriation for energy infrastructure and impact grants. The board may create an advisory committee to assist the board in making its grant award determinations.

Source: S.L. 1893, ch. 118, § 3; R.C. 1895, § 170; R.C. 1899, § 170; R.C. 1905, § 153; C.L. 1913, § 285; R.C. 1943, § 15-0102; S.L. 1971, ch. 159, § 1; 1989, ch. 188, § 1; 2011, ch. 13, § 5.

Note.

Section 1 of chapter 532, S.L. 2001, provides:

“ Board of university and school lands — Transfer of certain mineral interests to the lands and minerals trust fund. The board of university and school lands shall transfer the ‘state addition’ and ‘state second addition’ mineral interests in Stark County to the lands and minerals trust fund.”

Cross-References.

Consultation with state investment board or director on investment policies, see N.D.C.C. § 21-10-06.

Exchange of lands for other lands of state or its subdivisions, see N.D. Const., art. IX, § 6.

Exchange of lands in Roosevelt National Park with United States, see N.D.C.C. § 54-01-13.1.

Exchange of lands with game and fish department, see N.D.C.C. § 20.1-11-12.

Exchange of lands with United States government, see N.D. Const., art. IX, § 6; N.D.C.C. § 15-06-19.1.

Mineral leasing, board to oversee, see N.D.C.C. §§ 38-11-02.1 to 38-11-02.4.

School and public lands, see N.D. Const., Art. IX.

15-01-02.1. Board of university and school lands to set and establish fees — Collections.

The board of university and school lands shall have authority to set and establish fees in amounts equal to the cost of the issuance of patents, deeds, leases, assignments, land contracts, holding land sales, furnishing documents, receiving and processing all loans made by the board, managing property acquired under chapter 15-08.1, and managing property for other state entities. All fees provided for in this section must be deposited in the state lands maintenance fund.

Source: S.L. 1971, ch. 160, § 1; 1975, ch. 132, § 1; 1987, ch. 187, § 2; 1995, ch. 162, § 1; 2009, ch. 153, § 1.

15-01-03. Meetings of board — Quorum.

The board shall meet on the last Thursday of each month. If it appears a quorum will not be present for any meeting of the board, the meeting may be rescheduled by the commissioner upon reasonable notice to all members. Special meetings of the board may be held at any time at the written call of the chairman, the commissioner, or any two members of the board. Three members of the board constitute a quorum.

Source: S.L. 1893, ch. 118, § 4; R.C. 1895, § 171; R.C. 1899, § 171; R.C. 1905, § 154; C.L. 1913, § 286; R.C. 1943, § 15-0103; S.L. 1987, ch. 187, § 3; 1989, ch. 189, § 1.

15-01-04. Record of meeting.

The secretary of the board shall enter in a suitable book kept for that purpose a full and correct record of all the proceedings of the board at each session thereof. The record, when approved by the board, must be signed by the chairman or presiding officer of the meeting and by the secretary.

Source: S.L. 1893, ch. 118, § 6; R.C. 1895, § 173; R.C. 1899, § 173; R.C. 1905, § 156; C.L. 1913, § 289; R.C. 1943, § 15-0104; S.L. 1987, ch. 187, § 4.

15-01-05. Expenses of board — How paid — Limitations.

Necessary incidental expenses of the board, within the limits of any appropriation made therefor by the legislative assembly, must be paid by the office of management and budget from the state land maintenance fund upon satisfactory vouchers. The office of management and budget shall issue its warrant for such expenses.

Source: S.L. 1893, ch. 118, § 10; R.C. 1895, § 177; R.C. 1899, § 177; R.C. 1905, § 161; C.L. 1913, § 294; R.C. 1943, § 15-0105; S.L. 1971, ch. 161, § 4.

15-02-01. Commissioner of university and school lands — Appointment — Oath.

The board of university and school lands shall appoint a commissioner of university and school lands. All of the official acts of the commissioner are subject to the approval and supervision of the board. Before entering upon the duties of the commissioner, the commissioner shall take the oath prescribed for civil officers.

Source: S.L. 1893, ch. 118, § 3; R.C. 1895, § 170; R.C. 1899, § 170; R.C. 1905, § 153; C.L. 1913, § 285; R.C. 1943, § 15-0201; S.L. 1999, ch. 113, § 3.

Cross-References.

Bonding of public officers, see N.D.C.C. §§ 44-01-07 to 44-01-12, and N.D.C.C. ch. 26.1-21.

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

15-02-02. Term of office — Vacancy.

The term of office of the commissioner is four years beginning July first of the year following the general election of the governor and ending June thirtieth of the fourth calendar year after appointment or until a successor is appointed and qualified. The commissioner may be removed for cause at any time during the commissioner’s term of office, by a vote of four or more board members. Upon vacancy by death, resignation, or removal, the board shall appoint a commissioner for the remainder of the four-year term.

Source: S.L. 1893, ch. 118, § 12; R.C. 1895, § 179; R.C. 1899, § 179; R.C. 1905, § 163; C.L. 1913, § 296; R.C. 1943, § 15-0202; S.L. 1999, ch. 150, § 1; 2017, ch. 122, § 1, effective August 1, 2017.

15-02-03. Commissioner — Salary.

The salary of the commissioner of university and school lands must be within the amount appropriated for salaries by the legislative assembly.

Source: S.L. 1893, ch. 118, § 13; R.C. 1895, § 180; S.L. 1897, ch. 144, § 1; R.C. 1899, § 180; S.L. 1905, ch. 127, § 1; R.C. 1905, § 164; S.L. 1911, ch. 39, § 1; C.L. 1913, § 297; S.L. 1933, ch. 196, § 1; 1943, ch. 190, § 1; R.C. 1943, § 15-0203; S.L. 1949, ch. 314, § 4; 1981, ch. 535, § 3.

15-02-04. Deputy commissioner — Appointment — Oath.

The commissioner, with the consent of the board, may appoint a deputy. Before entering upon any duties, the deputy shall take and subscribe the oath of office required by law for civil officers.

Source: S.L. 1893, ch. 118, § 14; R.C. 1895, § 181; R.C. 1899, § 181; R.C. 1905, § 165; S.L. 1907, ch. 163, § 1; C.L. 1913, § 298; R.C. 1943, § 15-0204; S.L. 1999, ch. 113, § 4.

Cross-References.

Bonding of public officers, see N.D.C.C. §§ 44-01-07 to 44-01-12, and N.D.C.C. ch. 26.1-21.

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

15-02-05. Powers and duties in general.

The commissioner, under such directions as may be given by the board of university and school lands, shall:

1. Have general charge and supervision of all lands described in section 15-01-02.
2. Act as general agent of the board in the performance of its duties.
3. Have the custody of all maps, books, and papers relating to any of the lands mentioned in this title.
4. Procure the books, maps, and plats required to keep a complete record of all such lands, and keep true records of all the sales, leases, permits, patents, deeds, and other conveyances of lands under the commissioner’s supervision made by the state showing the amount of money paid, the date of sale and of payment, the description of lands sold or leased, the number of acres [hectares] thereof, the name of the purchaser, and the designation of the fund to be credited therewith.
5. Direct all appraisements, sales, and leases, and execute all contracts of sale, leases, permits, and other evidences of disposal of lands, subject to approval by the board.
6. Certify the book and page number of all contracts, leases, or permits recorded by the commissioner.

Source: S.L. 1893, ch. 118, §§ 3, 15; R.C. 1895, §§ 170, 182; R.C. 1899, §§ 170, 182; S.L. 1901, ch. 116, § 1; R.C. 1905, § 166; C.L. 1913, §§ 285, 299; R.C. 1943, § 15-0205.

Cross-References.

Investment of funds, see N.D.C.C. §§ 15-03-04 to 15-03-07.

15-02-05.1. Additional duties of commissioner.

In all cases under section 54-01-05.5 involving legislative bills dealing with the sale or exchange of state land, the commissioner of university and school lands may provide the legislative assembly with an assessment regarding the highest and best use of the land involved. As used in this section, “highest and best use” means that use of a parcel of land which will most likely produce the greatest benefit to the state. The commissioner’s assessment may include an evaluation of soils capability, vegetation, wildlife use, mineral characteristics, public use, recreational use, commercial or industrial use, aesthetic values, cultural values, surrounding land use, proximity to urban areas, and any other relevant resource, zoning, or planning information.

Source: S.L. 1977, ch. 137, § 1; 1981, ch. 516, § 2; 2017, ch. 122, § 2, effective August 1, 2017.

15-02-05.2. Administrator of abandoned property — Employment.

The commissioner of university and school lands shall act as or employ an administrator of abandoned property and shall employ other personnel as necessary for the proper administration of chapter 47-30.2 and shall set their salaries, within limits of legislative appropriations. All public officers shall assist the administrator in carrying out the administration of chapter 47-30.2.

Source: S.L. 1985, ch. 510, § 41; 2021, ch. 337, § 4, effective July 1, 2021.

15-02-06. Recording of clear lists of original grant lands — Fees.

The commissioner of university and school lands shall cause the government clear lists of selected lands, or certified copies thereof, to be recorded in the offices of the recorders of the respective counties in which such lands have been selected. No fees may be charged or collected by the recorders for recording such lists.

Source: S.L. 1915, ch. 240, §§ 1, 2; 1925 Supp., §§ 287a1, 287a2; R.C. 1943, § 15-0206; S.L. 1981, ch. 516, § 2; 2001, ch. 120, § 1.

15-02-07. Custody of abstracts and conveyances to state.

All abstracts and conveyances of title to the state of North Dakota, when the lands are held for penal, educational, charitable, or school purposes, must be deposited with and must remain in the control of the commissioner of university and school lands.

Source: S.L. 1893, ch. 118, § 47; R.C. 1895, § 214; R.C. 1899, § 214; R.C. 1905, § 198; C.L. 1913, § 332; R.C. 1943, § 15-0207.

15-02-08. Commissioner to keep record of permanent funds — Biennial report.

The commissioner shall keep a record in suitable books showing a detailed quarterly statement of the condition of all of the permanent funds under the control of the board of university and school lands, the amount of each fund, how invested, when due, interest paid, and all acts connected with the management of such funds. All records and record books are open at all times for inspection by the public. The commissioner may submit a biennial report to the governor and the secretary of state in accordance with section 54-06-04. If submitted, the report must show all investments of the several funds, the work done during the preceding fiscal biennium, the number of acres of land sold or leased by the department, the amount received therefor, the amount of proceeds received to the credit of the several funds, the expense of administration of the department, and all other matters relating to the commissioner’s office as are necessary to disclose fully the operation of the department.

Source: S.L. 1893, ch. 118, § 15; R.C. 1895, § 182; R.C. 1899, § 182; S.L. 1901, ch. 116, § 1; R.C. 1905, § 166; C.L. 1913, § 299; R.C. 1943, § 15-0208; S.L. 1963, ch. 346, § 14; 1973, ch. 403, § 9; 1975, ch. 466, § 9; 1995, ch. 350, § 9; 2009, ch. 153, § 2.

15-02-08.1. Investment reports — Report to budget section.

The commissioner shall prepare annual reports on the investment performance of each fund under its control. The reports must be comparable to the reports prepared by the state investment board under section 21-10-06.1. The reports must identify the expenses deducted from each fund, including details on investment management fees, advisory fees, transaction fees, the agency’s expenses attributed to the fund, and any other costs. The commissioner shall report at least annually to the budget section on the status of its investment performance.

Source: S.L. 2019, ch. 13, § 6, effective July 1, 2019.

15-02-09. Commissioner to have seal — Seal as evidence.

The commissioner shall have an official seal. Such seal affixed to any contract of purchase, a receipt, or any other instrument issued and duly countersigned by the commissioner is prima facie evidence of the due execution of such contract or other instrument.

Source: S.L. 1893, ch. 118, § 15; R.C. 1895, § 182; R.C. 1899, § 182; S.L. 1901, ch. 116, § 1; R.C. 1905, § 166; C.L. 1913, § 299; R.C. 1943, § 15-0209.

15-02-10. Fees for lease, contracts, patents — Collection. [Repealed]

Repealed by S.L. 1971, ch. 160, § 2.

15-03-01. Permanent funds — State treasurer.

All moneys belonging to the permanent funds of the common schools and other public institutions derived from the sale of any of the lands described in section 15-01-02 or from any other source must be paid over to the state treasurer and are subject to the order of the board of university and school lands. Such moneys must be paid over on the order of the board for investment as provided in this chapter whenever the board requires the same.

Source: S.L. 1893, ch. 118, § 7; R.C. 1895, § 174; R.C. 1899, § 174; R.C. 1905, § 157; C.L. 1913, § 290; R.C. 1943, § 15-0301; S.L. 1977, ch. 138, § 1; 1987, ch. 189, § 1.

Cross-References.

Consultation with state investment board or director on investment policies, see N.D.C.C. § 21-10-06.

Collateral References.

Procedural issues concerning public school funding cases, 115 A.L.R.5th 563.

15-03-01.1. Creation of maintenance fund.

There is created a special fund designated as the state lands maintenance fund, which is funded by the trust fund assets under the control of the board of university and school lands. All expenses paid out of the state lands maintenance fund are subject to legislative appropriation.

Source: S.L. 1971, ch. 161, § 1; 2009, ch. 153, § 3.

15-03-01.2. Payment of salaries and expenses from maintenance fund — Vouchers and warrants.

All administrative salaries and operating expenses of the office of the commissioner of university and school lands must be paid from the state lands maintenance fund upon itemized vouchers in duplicate, approved by the commissioner, setting forth the accounts covered, one copy to be retained in the commissioner’s office and the other to be filed with the office of management and budget, and warrants for the payment drawn by the office of management and budget upon the fund.

Source: S.L. 1971, ch. 161, § 2; 2003, ch. 129, § 1.

Effective Date.

The 2003 amendment of this section by section 1 of chapter 129, S.L. 2003 became effective July 1, 2003.

15-03-01.3. Apportionment of maintenance fund balances quarterly. [Repealed]

Repealed by S.L. 2003, ch. 129, § 10.

Note.

Section 10 of chapter 129, S.L. 2003, repealed this section effective July 1, 2003.

15-03-02. Proceeds from trust fund assets.

All proceeds from the sale and management of any assets under the control of the board of university and school lands must be deposited in the trust fund for which the assets were granted or earned and are pledged specifically for the maintenance of the institution for which such assets were granted or earned. The cost of administering a trust fund may be paid out of the fund, in accordance with section 1 of article IX of the Constitution of North Dakota.

Source: S.L. 1890, ch. 158, § 13; 1890, ch. 159, § 1; 1890, ch. 160, § 18; 1891, ch. 89, § 2; R.C. 1895, §§ 906, 930, 949; S.L. 1897, ch. 89, § 8; R.C. 1899, §§ 906, 930, 949, 975; S.L. 1903, ch. 50; R.C. 1905, §§ 1075, 1113, 1173; S.L. 1911, ch. 61, § 3; C.L. 1913, §§ 1580, 1617, 1726; R.C. 1943, § 15-0302; S.L. 1971, ch. 161, § 5; 2009, ch. 153, § 4.

15-03-03. State treasurer to have custody of certain school funds. [Repealed]

Repealed by S.L. 1987, ch. 189, § 7.

15-03-04. Legal investments.

Subject to the provisions of section 15-03-05, the board of university and school lands shall apply the prudent investor rule in investing the permanent funds under its control. The “prudent investor rule” means that in making investments the board shall exercise the same judgment and care, under the circumstances then prevailing and limitations of North Dakota and federal law, that an institutional investor of ordinary prudence, discretion, and intelligence exercises in the management of large investments entrusted to it, not in regard to speculation but in regard to the permanent disposition of funds, considering probable safety of capital as well as probable investment returns. Notwithstanding any investments made before July 1, 1997, the board may not use any funds entrusted to it to purchase, as sole owner, commercial or residential real property in North Dakota without prior 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. The board may also lend securities held by the permanent funds, including the authority to pledge a security interest in the securities in the possession of a custodian agent. These securities must be collateralized as directed by the board.

Source: S.L. 1893, ch. 118, § 5; R.C. 1895, § 172; S.L. 1897, ch. 128, § 1; R.C. 1899, § 172; R.C. 1905, § 155; S.L. 1907, ch. 224, § 1; 1907, ch. 228, § 1; 1909, ch. 106, § 1; C.L. 1913, § 287; S.L. 1915, ch. 241, § 1; 1917, ch. 204, § 1; 1919, ch. 198, § 1; 1921, ch. 108, § 1; 1925 Supp., § 287; S.L. 1929, ch. 215, § 1; R.C. 1943, § 15-0304; S.L. 1953, ch. 124, § 1; 1957 Supp., § 15-0304; S.L. 1965, ch. 121, § 1; 1971, ch. 159, § 2; 1971, ch. 162, § 1; 1973, ch. 129, § 1; 1975, ch. 133, § 1; 1977, ch. 138, § 2; 1987, ch. 141, § 29; 1987, ch. 190, § 1; 1989, ch. 190, § 1; 1989, ch. 191, § 1; 1997, ch. 42, § 6; 2003, ch. 130, § 1; 2009, ch. 153, § 5; 2009, ch. 482, § 98; 2019, ch. 438, § 1, effective August 1, 2019.

15-03-04.1. Loan pool account.

There is hereby created in the Bank of North Dakota a loan pool account. The board of university and school lands may purchase first mortgage farm loans made in accordance with this chapter from the Bank of North Dakota. All purchased farm loans must be managed and serviced by the Bank of North Dakota. The loans must be credited to the loan pool account and the investments, repayments, interest, and income must be credited to the various land department trust funds in the proportion that each participates therein. The loan pool account shall consist of current loans whenever possible. The board may authorize the Bank of North Dakota to renegotiate the mortgages in the loan pool account, including debt restructuring and reamortization, so long as the renegotiation is consistent with sound banking practices and the rules, regulations, and guidelines of the board. In the event foreclosures are necessary, the Bank of North Dakota shall handle foreclosures in accordance with standard banking practices and proceeds must be properly credited to the loan pool account and income accounts. The Bank of North Dakota shall charge such fee for the management of each loan as the Bank of North Dakota and the board of university and school lands shall agree. Such fee may only be deducted from interest payments received on loans. Loans purchased by the board of university and school lands may have originated in the Bank of North Dakota or other financial institutions. The Bank of North Dakota shall certify that all loans purchased by the board of university and school lands are first mortgages and that there are no prior judgments, mortgages, liens, or other encumbrances against the security for such first mortgages.

Source: S.L. 1977, ch. 138, § 3; 1987, ch. 189, § 2.

15-03-04.2. Board authority over farm loans.

The board of university and school lands has authority to promulgate policies, rules, and regulations for the purchase of first mortgage farm loans. The board shall set such terms, conditions, interest rates, and other guidelines as it may desire commensurate with its fiduciary responsibilities.

Source: S.L. 1977, ch. 138, § 4.

15-03-04.3. Loan pool account — Management by Bank of North Dakota.

Subject to this chapter, the Bank of North Dakota, in accordance with standard banking practices, shall manage all loans in the loan pool account and execute all instruments on behalf of the board of university and school lands that pertain to real estate mortgages in the loan pool account, including reamortization agreements, satisfactions, and partial releases. The Bank of North Dakota shall also act as agent for the board and shall execute all instruments, including reamortization agreements, satisfactions, and partial releases, that pertain to mortgages previously issued by the board. All instruments must be executed in the same manner as specified in section 6-09-26. This section is self-executing and no assignment, power of attorney, or other instrument of transfer is necessary to establish the authority of the Bank of North Dakota to act on behalf of the board of university and school lands under this section.

Source: S.L. 1979, ch. 204, § 1; 1987, ch. 189, § 3; 1991, ch. 54, § 5.

15-03-05. One-half of permanent funds to be invested in farm loans — Exception.

At least one-half of the whole amount of the several permanent funds, as computed by the commissioner of university and school lands at the end of each fiscal year, must be invested in first mortgages on farmlands and rangelands in this state if there is a sufficient demand for investment in farm loans. First mortgage loans on farmlands and rangelands must be made only in accordance with the provisions of this chapter.

Source: S.L. 1893, ch. 118, § 5; R.C. 1895, § 172; S.L. 1897, ch. 128, § 1; R.C. 1899, § 172; R.C. 1905, § 155; S.L. 1907, ch. 224, § 1; 1907, ch. 228, § 1; 1909, ch. 106, § 1; C.L. 1913, § 287; S.L. 1915, ch. 241, § 1; 1917, ch. 204, § 1; 1919, ch. 198, § 1; 1921, ch. 108, § 1; 1925 Supp., § 287; S.L. 1929, ch. 215, § 1; R.C. 1943, § 15-0305; S.L. 1977, ch. 138, § 5; 1985, ch. 199, § 1.

15-03-05.1. Calculation of fund income — Coal development trust fund. [Repealed]

Source: S.L. 1989, ch. 190, § 2; 1993, ch. 157, § 1; 2009, ch. 153, § 6; repealed by 2017, ch. 403, § 2, effective August 1, 2017.

15-03-05.2. Distribution of fund income. [Repealed]

Repealed by S.L. 2009, ch. 153, § 8.

15-03-06. Farm loans — Procedure in negotiating and completing loans. [Repealed]

Repealed by S.L. 1977, ch. 138, § 12.

15-03-07. Limitations on farm loans.

Farm loans secured by a first mortgage may be made only upon farmland and rangeland in this state, and only to persons or other legal entities who are actual residents of this state and who are actively engaged in the business of farming or ranching.

Source: S.L. 1893, ch. 118, § 5; R.C. 1895, § 172; S.L. 1897, ch. 128, § 1, subs. 2; R.C. 1899, § 172, subs. 2; R.C. 1905, § 155, subs. 2; S.L. 1907, ch. 224, § 1, subs. 2; 1907, ch. 228, § 1, subs. 2; 1909, ch. 106, § 1, subs. 2; C.L. 1913, § 287, subs. 2; S.L. 1915, ch. 241, § 1, subs. 2; 1917, ch. 204, § 1, subs. 3; 1919, ch. 198, § 1, subs. 2; 1921, ch. 108, § 1, subs. 2; 1925 Supp., § 287, subs. 2; S.L. 1929, ch. 215, § 1, subs. 2; R.C. 1943, § 15-0307; S.L. 1953, ch. 124, § 2; 1957 Supp., § 15-0307; S.L. 1963, ch. 133, § 1; 1973, ch. 129, § 2; 1977, ch. 138, § 6.

15-03-08. Warrant for amount of loan — Payable to state land commissioner — Disbursement. [Repealed]

Repealed by S.L. 1977, ch. 138, § 12.

15-03-09. Term, interest, payment of farm loans. [Repealed]

Repealed by S.L. 1977, ch. 138, § 12.

15-03-10. Assignment of mortgage — Regulations governing — Execution. [Repealed]

Repealed by S.L. 1977, ch. 138, § 12.

15-03-11. Satisfaction of mortgages. [Repealed]

Repealed by S.L. 1977, ch. 138, § 12.

15-03-12. Foreclosure of mortgages.

Mortgages acquired by the state under the provisions of this chapter may be foreclosed either by action or advertisement in the manner provided by the laws of this state. An action to foreclose a mortgage must be brought and prosecuted in the name of the state.

Source: S.L. 1893, ch. 118, § 8; R.C. 1895, § 175; R.C. 1899, § 175; S.L. 1901, ch. 193, § 1; R.C. 1905, § 159; C.L. 1913, § 292; S.L. 1925, ch. 178, § 1; 1925 Supp., § 292; S.L. 1929, ch. 214, § 1; 1931, ch. 234, § 2; R.C. 1943, § 15-0312.

Cross-References.

Foreclosure by action, see N.D.C.C. ch. 32-19.

Foreclosure by advertisement, see N.D.C.C. ch. 35-22.

15-03-13. Redemption after foreclosure.

When a mortgage acquired under the provisions of this chapter has been foreclosed, the mortgagor or a redemptioner may redeem the property from the purchaser within one year after the sale, in the following manner:

1. By paying the purchaser the amount of that person’s purchase with interest at the rate provided in the mortgage;
2. By paying the amount of any insurance premiums, assessments, taxes, utilities, or other items which the purchaser has paid thereon after the purchase, and the interest thereon at the same rate; and
3. If the purchaser is also a creditor having a lien prior to that of the redemptioner, other than the mortgage under which the purchase was made, by paying the amount of the lien with interest.

Source: S.L. 1893, ch. 118, § 8; R.C. 1895, § 175; R.C. 1899, § 175; S.L. 1901, ch. 193, § 1; R.C. 1905, § 159; C.L. 1913, § 292; S.L. 1925, ch. 178, § 1; 1925 Supp., § 292; S.L. 1929, ch. 214, § 1; 1931, ch. 234, § 2; R.C. 1943, § 15-0313; S.L. 1985, ch. 200, § 1.

Cross-References.

Redemption after foreclosure by advertisement, see § 35-22-20.

Redemption of real estate, see N.D.C.C. ch. 28-24.

15-03-14. Conveyance of mortgaged land to state — Effect.

When a mortgage held by the state as security for the investment of permanent school funds of the state is in default and the foreclosure thereof is deemed advisable, the Bank of North Dakota, acting on behalf of the board of university and school lands, may accept from the owner of the record title of the land covered by the mortgage a deed conveying the land to the state. Such deed transfers and extinguishes all title, interest, and right of redemption of the grantor but does not extinguish the mortgage lien on the land. Such lien may be foreclosed subsequently in the manner provided by law. The deed may be recorded in the office of the recorder of the county wherein the land is situated, and the mortgage held by the state may be released and satisfied. A deed of conveyance from the date of its execution has the same legal effect for all purposes as a sheriff’s deed would have if the mortgage involved had been foreclosed.

Source: S.L. 1935, ch. 254, § 1; R.C. 1943, § 15-0314; S.L. 1977, ch. 138, § 7; 2001, ch. 120, § 1.

15-03-14.1. Quieting title to certain state lands. [Repealed]

Repealed by omission from this code.

15-03-15. Meeting to consider investments and approval of farm loans — Notice — Vote required. [Repealed]

Repealed by S.L. 1995, ch. 163, § 5.

15-03-16. Continuing appropriation for investments.

There is appropriated annually the amounts necessary to pay costs related to investments controlled by the board of university and school lands, including management, trustee, consulting, custodial, and performance measurement fees; expenses associated with money manager searches and onsite audits and reviews of investment managers; expenses associated with building repairs, maintenance, and renovations; and payments in lieu of taxes for the building and grounds. Each payment must be made from the trust fund for which the cost was incurred.

Source: S.L. 1893, ch. 118, § 11; R.C. 1895, § 178; R.C. 1899, § 178; R.C. 1905, § 162; C.L. 1913, § 295; R.C. 1943, § 15-0316; S.L. 1987, ch. 189, § 4; 1995, ch. 163, § 2; 1999, ch. 151, § 1; 2003, ch. 129, § 2; 2019, ch. 133, § 1, effective July 1, 2019.

15-03-17. Redemption of bonds by political subdivisions.

The board of university and school lands shall allow any county, city, park district, township, or school district to redeem, at any time after two years from the date of issue, at par with accrued interest, any bonds issued by it which the state has purchased and holds as an investment of any of the permanent school funds of the state.

Source: S.L. 1915, ch. 270, § 1; 1925 Supp., § 4037a; S.L. 1939, ch. 106, § 1; R.C. 1943, § 15-0317; S.L. 1987, ch. 189, § 5.

15-03-18. Commissioner to maintain records of investments.

The commissioner of university and school lands shall keep a complete record of all investments of the board.

Source: S.L. 1893, ch. 118, § 15; R.C. 1895, § 182; R.C. 1899, § 182; S.L. 1901, ch. 116, § 1; R.C. 1905, § 166; C.L. 1913, § 299; R.C. 1943, § 15-0318; S.L. 1971, ch. 159, § 4; 1977, ch. 138, § 9; 1987, ch. 189, § 6.

15-03-19. Board authorizing drawing of warrant upon investment of permanent funds — Record of warrant. [Repealed]

Repealed by S.L. 1987, ch. 189, § 7.

15-03-20. Reducing or canceling interest due on contracts and mortgages. [Repealed]

Repealed by S.L. 1977, ch. 138, § 12.

15-03-21. State treasurer — Duty to collect — Report to board — Duty of attorney general. [Repealed]

Repealed by S.L. 1987, ch. 189, § 7.

15-04-01. Leasing of school and other public lands — Rent.

All lands granted by the United States to this state for the establishment and support of common schools and of educational, penal, or charitable institutions may be leased for pasturage and meadow purposes at public auction after notice as provided by this chapter. The lease may be for a period of not more than five years. Grant lands which have never been placed under cultivation by a contract purchaser, in the event such contract is canceled, may be leased for pasturage or meadow purposes for a period of not more than five years. Grant lands which have been placed under cultivation by a contract purchaser, in the event such contract is canceled, may be leased at the discretion and under the control of the board of university and school lands for other than pasturage and meadow purposes until the land is resold. All rents are payable annually in advance.

Source: S.L. 1893, ch. 118, § 50; R.C. 1895, § 217; R.C. 1899, § 217; S.L. 1901, ch. 135, § 1; R.C. 1905, § 202; C.L. 1913, § 336; S.L. 1925, ch. 177, § 1; 1925 Supp., § 336; S.L. 1939, ch. 218, § 1; R.C. 1943, § 15-0401; S.L. 1959, ch. 149, § 1.

Cross-References.

Authority to lease grant lands, see N.D. Const., art. IX, § 8.

15-04-02. Lease of cultivated lands for summer fallow. [Repealed]

Source: S.L. 1899, ch. 166, § 1; R.C. 1899, § 217a; R.C. 1905, § 203; C.L. 1913, § 337; R.C. 1943, § 15-0402; repealed by 2019, ch. 134, § 1, effective August 1, 2019.

15-04-03. Rent for cultivated lands. [Repealed]

Repealed by S.L. 1995, ch. 162, § 8.

15-04-04. Failure to summer-fallow cultivated lands cause for cancellation of lease. [Repealed]

Source: S.L. 1899, ch. 166, § 3; R.C. 1899, § 217a; R.C. 1905, § 203; C.L. 1913, § 337; R.C. 1943, § 15-0404; S.L. 1995, ch. 162, § 2; repealed by 2019, ch. 134, § 1, effective August 1, 2019.

15-04-05. Removal of or payment for improvements upon termination or lease of land. [Repealed]

Repealed by S.L. 1961, ch. 151, § 2.

15-04-06. Board of appraisers to appraise land in county — Return of appraisement.

The board of county appraisers shall appraise such lands of this state in its county as the board of university and school lands may direct. On or before the first day of July of the year in which the appraisals are made, the board of appraisers shall make a return of all such appraisals in the form prescribed and on the blanks furnished by the board of university and school lands.

Source: S.L. 1893, ch. 118, § 51; R.C. 1895, § 218; R.C. 1899, § 218; R.C. 1905, § 204; C.L. 1913, § 338; R.C. 1943, § 15-0406.

Cross-References.

Compensation of county board of appraisers, see N.D.C.C. § 15-08-03.

County boards of appraisers, see N.D. Const., Art. IX, § 4; N.D.C.C. § 15-06-02.

15-04-07. Minimum rentals.

The board of university and school lands shall set the minimum rental for uncultivated and cultivated lands, which is subject to review and change when deemed necessary by said board.

Source: S.L. 1893, ch. 118, § 51; R.C. 1895, § 218; R.C. 1899, § 218; R.C. 1905, § 204; C.L. 1913, § 338; R.C. 1943, § 15-0407; S.L. 1959, ch. 149, § 2.

15-04-08. Selection of lands to be leased. [Repealed]

Repealed by S.L. 1959, ch. 149, § 3.

15-04-09. Notice of leasing — Publication — Posting.

Each year at such time as in its judgment is for the best interests of the state, the board of university and school lands shall advertise and offer for lease the lands to be leased. All lands to be leased or offered for lease within the respective counties must be advertised for lease by the board by publication once each week for a period of three weeks prior to the day of leasing in the official county newspaper where said land is situated and in such other newspapers as the board deems appropriate. A list of the lands to be offered for leasing must be filed with the county treasurer of the county wherein such lands are situated at least ten days prior to the day of leasing. If, in the opinion of the board, the land that will be leased in any county will not be sufficient to warrant the expense of advertisement in a newspaper by description of each tract or parcel, the notice may be given by general advertisement.

Source: N. D. Const., §§ 158, 161; R.C. 1895, § 220; R.C. 1899, § 220; S.L. 1901, ch. 192, § 1; R.C. 1905, § 206; C.L. 1913, § 340; R.C. 1943, § 15-0409; S.L. 1959, ch. 149, § 4; 1977, ch. 140, § 1.

15-04-10. Leasing to be by auction — Requirements governing.

The commissioner of university and school lands, or such other person appointed by the commissioner, shall conduct the leasing of the lands. The leasing must be at public auction, to the highest bidder, and must be held at the county seat. The auction must commence on the day and time specified in the advertisement for the leasing. Notice must be given when the land is offered for lease that all bids are subject to approval by the board.

Source: S.L. 1893, ch. 118, § 54; R.C. 1895, § 221; R.C. 1899, § 221; R.C. 1905, § 207; C.L. 1913, § 341; R.C. 1943, § 15-0410; S.L. 1959, ch. 149, § 5; 1987, ch. 191, § 1; 1989, ch. 192, § 1; 1993, ch. 158, § 1; 1995, ch. 162, § 3; 1999, ch. 152, § 1.

15-04-11. Amount of bid deposited at time of leasing — Minimum bid.

The highest bidder for any parcel of land shall deposit the amount of the bid for one year’s rental at the auction. No bid may be accepted which is less than the minimum price fixed pursuant to the provisions of section 15-04-07.

Source: S.L. 1893, ch. 118, § 55; R.C. 1895, § 222; S.L. 1897, ch. 145, § 1; R.C. 1899, § 222; R.C. 1905, § 208; C.L. 1913, § 342; R.C. 1943, § 15-0411; S.L. 1959, ch. 149, § 6; 1995, ch. 162, § 4.

15-04-12. Adjournment of auction for leasing.

If the board of university and school lands finds that the interests of the state will be subserved by the adjournment of the auction of lands for lease, it may adjourn the auction.

Source: S.L. 1893, ch. 118, § 56; R.C. 1895, § 223; R.C. 1899, § 223; R.C. 1905, § 209; C.L. 1913, § 343; R.C. 1943, § 15-0412.

15-04-13. Approval of leases by board — Execution of lease contracts.

The board of university and school lands shall approve and confirm such leases as in its judgment should be made and shall certify to the commissioner a list of the approved leases by December thirty-first. The commissioner shall execute contracts of lease in the form prescribed by the board and shall forward same to the lessee.

Source: S.L. 1893, ch. 118, § 57; R.C. 1895, § 224; S.L. 1897, ch. 145, § 1; R.C. 1899, § 224; R.C. 1905, § 210; C.L. 1913, § 344; R.C. 1943, § 15-0413; S.L. 1979, ch. 205, § 1; 1995, ch. 162, § 5.

15-04-13.1. Liability of lessee to public.

Whenever the board of university and school lands includes a provision in a lease authorizing public access to leased lands, the lessee is not liable to any person injured on the land except for gross negligence or malicious acts.

Source: S.L. 1983, ch. 185, § 1.

15-04-14. Failure to lease lands after advertisement — Board may make rental contracts.

If any of the lands in any county remain unleased after the date advertised for the leasing, the board of university and school lands may make contracts of lease for the lands with the first applicant therefor at not less than the minimum price fixed by the board as provided in this chapter.

Source: S.L. 1893, ch. 118, § 57; R.C. 1895, § 224; S.L. 1897, ch. 145, § 1; R.C. 1899, § 224; R.C. 1905, § 210; C.L. 1913, § 344; R.C. 1943, § 15-0414.

15-04-15. Collection of rentals.

The lessee of any land leased under the provisions of this chapter, or the lessee’s heirs, executors, administrators, or assigns shall pay to the state commissioner of university and school lands at the commissioner’s office in Bismarck, North Dakota, or to the commissioner’s duly appointed agent any amounts that may become due from time to time upon the lease.

Source: S.L. 1893, ch. 118, § 41; R.C. 1895, § 208; R.C. 1899, § 208; R.C. 1905, § 192; S.L. 1909, ch. 207, § 1; C.L. 1913, § 326; S.L. 1931, ch. 229, § 1; R.C. 1943, § 15-0415; S.L. 1963, ch. 135, § 1; 1979, ch. 205, § 2.

15-04-16. Report by county treasurer of rentals collected. [Repealed]

Repealed by S.L. 1995, ch. 162, § 8.

15-04-17. County treasurer’s bond to indemnify state for collections of rentals. [Repealed]

Repealed by S.L. 1995, ch. 162, § 8.

15-04-18. Destruction of timber by lessee prohibited — Exception — Penalty.

No lessee of any of the lands authorized to be leased under the provisions of this chapter, nor the lessee’s heirs or assigns, may cut down, take away, or cause another person to take away from the leased tract any timber, trees, or wood. The lessee may cut down or use such amount of dead or prostrate trees or timber as may be sufficient to supply the lessee with fuel for the lessee’s family or for the families of the lessee’s employees actually residing upon the tract. Any person violating the provisions of this section forfeits that person’s lease and all rights and interests thereunder, and is liable to the state for damages sustained by the state by reason thereof, and that person is guilty of a class B misdemeanor.

Source: S.L. 1893, ch. 118, § 59; R.C. 1895, § 225; R.C. 1899, § 225; S.L. 1901, ch. 137, § 1; R.C. 1905, § 211; C.L. 1913, § 345; R.C. 1943, § 15-0418; S.L. 1975, ch. 106, § 118.

15-04-19. Lessee not to break or plow uncultivated land — Penalty.

No lessee of land leased under the provisions of this chapter, or the lessee’s heirs or assigns, may break, plow, or cultivate any unbroken land on any tract leased, nor cause nor permit it to be done by any other person. Any person who violates the provisions of this section shall incur the forfeitures and liabilities provided in section 15-04-18 and is guilty of a class B misdemeanor.

Source: S.L. 1893, ch. 118, § 60; R.C. 1895, § 226; R.C. 1899, § 226; R.C. 1905, § 212; C.L. 1913, § 346; R.C. 1943, § 15-0419; S.L. 1975, ch. 106, § 119.

15-04-20. Permits to cut hay and to remove timber.

When in its judgment the best interests of the state will be served, the board of university and school lands may sell the right to cut grass or standing timber or both on any of the lands mentioned in this chapter and may sell any down and dead timber on the lands for such price and upon such terms and conditions as it deems proper. Standing timber may only be sold under a management plan developed by the board of university and school lands after consultation with a committee composed of the state forester, the director of the game and fish department, and the commissioner of university and school lands. All permits must be for the current season only, which must be between June fifteenth and April first of the following year. No control or right of occupancy of the land may be other than that specified in the permit. All permits must be paid for in advance.

Source: S.L. 1893, ch. 118, § 62; R.C. 1895, § 228; S.L. 1897, ch. 145, § 1; R.C. 1899, § 228; R.C. 1905, § 214; C.L. 1913, § 348; R.C. 1943, § 15-0420; S.L. 1959, ch. 149, § 7; 1991, ch. 157, § 1.

15-04-21. Recovery of possession — Actions.

When any person holds or continues in possession of any of the land mentioned in this chapter, contrary to the conditions or covenants of any lease or written agreement, the person is liable in an action for the recovery of possession of the lands, and damages for detention of the same.

Source: S.L. 1893, ch. 118, § 36; R.C. 1895, § 203; R.C. 1899, § 203; R.C. 1905, § 187; C.L. 1913, § 321; R.C. 1943, § 15-0421.

15-04-22. Fraudulent bidding — Penalty.

Any person who, at any leasing auction held pursuant to section 15-04-10, makes a successful bid and then willfully fails or refuses to make the deposit on the day of the sale as required by section 15-04-11 is guilty of a class B misdemeanor.

Source: S.L. 1959, ch. 149, § 8; 1975, ch. 106, § 120.

15-04-23. County services benefiting school trust lands — Payment — Continuing appropriation.

On or before March first of each year, the board of university and school lands shall pay a fee to the board of county commissioners of each county in which the state retains original grant lands if that county has requested payment under this section and included certification of the number of mills levied for county road and bridge purposes. The board of county commissioners shall forward a prorated portion of any fee received under this section to the organized townships in which the original grant lands are located for use in the repair, maintenance, and construction of roads and bridges and shall use the remainder of the fee for the repair, maintenance, and construction of roads and bridges in unorganized townships in which original grant lands are located. The total fees paid under this section may not be in an amount greater than the amount of property taxes that would have been payable if the original grant lands in the county had been subject to property tax levies. There is appropriated annually the amounts necessary to pay all fees under this section. Each payment must be made from the trust fund for which the land is held.

Source: S.L. 1999, ch. 152, § 2; 2003, ch. 129, § 4; 2007, ch. 151, § 1.

Effective Date.

The 2007 amendment of this section by section 1 of chapter 151, S.L. 2007 became effective July 1, 2007.

The 2003 amendment of this section by section 4 of chapter 129, S.L. 2003 became effective July 1, 2003.

15-04-24. Appropriation for land expenses — Continuing appropriation.

There is appropriated annually the amounts necessary to pay expenses for trust lands controlled by the board of university and school lands, including appraisal fees, survey costs, surface lease refunds, weed and insect control costs, clean-up costs, capital improvement rent credits, rural fire district reimbursements for fire protection, land rental or land value survey costs, and expenses determined by the board as necessary to manage, preserve, and enhance the value of the trust asset. Each payment must be made from the trust fund for which the land is held.

Source: S.L. 2003, ch. 129, § 3.

Effective Date.

This section became effective July 1, 2003.

15-05-01. Coal lands or coal in tracts — Leases — Term.

The board of university and school lands may lease any lands or coal in tracts that may be contained in lands sold with a reservation of coal deposits under its control for coal mining purposes. Any lease made under this chapter must be for a period of time as the board may determine. Lands or coal in tracts that may be contained in lands sold with a reservation of coal deposits must be leased for coal mining purposes for a royalty upon the coal as the board may deem fair and in the best interest of the state. The royalty applies only to coal actually mined and saved from the leased premises. If the board owns or controls a smaller interest than the entire and undivided coal estate, the royalty must be paid to it only in proportion to which its interest bears to the entire undivided fee. The board may lease land or coal in tracts for the purpose of prospecting for and mining coal for an annual rental of not less than one dollar per acre [.40 hectare] per year. The rental paid for any year may not be deducted from the royalties as they accrue. The board may adjust the royalty of existing coal leases as the board determines fair and in the best interest of the state.

Source: S.L. 1903, ch. 176, § 1; R.C. 1905, § 216; C.L. 1913, § 350; R.C. 1943, § 15-0501; S.L. 1975, ch. 135, § 1; 2013, ch. 130, § 1.

Cross-References.

Authority to lease grant lands, see N.D. Const., art. IX, § 8.

Exploration and production on publicly owned lands, see N.D.C.C. ch. 38-09.

Lease of minerals on public lands, see N.D.C.C. ch. 38-11.

15-05-02. Rental for coal lands — Regulations governing. [Repealed]

Repealed by S.L. 1975, ch. 135, § 3.

15-05-03. Lease for coal mining purposes not to interfere with right to lease for pasture — Exception. [Repealed]

Repealed by S.L. 1975, ch. 135, § 3.

15-05-04. Lands containing coal leased for agricultural purposes — Contents of lease.

When any lands containing coal are leased for agricultural purposes, the lease must contain a provision authorizing the board of university and school lands to lease the same land for coal mining purposes and must reserve to the board the right to use and occupy or to lease for use and occupancy so much of the surface of the land as the lessee of the land for coal mining purposes requires for the extracting, mining, and marketing of the coal.

Source: S.L. 1903, ch. 176, § 6; R.C. 1905, § 221; C.L. 1913, § 355; R.C. 1943, § 15-0504; S.L. 1975, ch. 135, § 2.

15-05-05. Board to make rules and regulations governing coal leasing.

The board of university and school lands may make such rules and regulations consistent with the provisions of this code as it deems necessary to determine the amount of rent due under any coal lease, to fix the manner and time of payment thereof, and to regulate the leasing of coal lands.

Source: S.L. 1903, ch. 176, § 4; R.C. 1905, § 219; C.L. 1913, § 353; R.C. 1943, § 15-0505.

15-05-06. Valuable deposits found on school and public institution lands — Disposal.

Any lands belonging to the state, or lands known as school lands and public institution lands, in which is discovered any valuable deposit of coal or minerals of any kind, clay, gravel, or stone, are and remain the property of the state until provision for the sale or leasing thereof is especially provided for by law.

Source: S.L. 1901, ch. 8, § 12; R.C. 1905, § 1132; C.L. 1913, § 1673; R.C. 1943, § 15-0506.

Cross-References.

Exploration and production on publicly owned lands, see N.D.C.C. ch. 38-09.

15-05-07. State geologist to determine lands on which coal exists.

The board of university and school lands may request that the state geologist determine the quantity and description of all lands under its control on which coal exists.

Source: S.L. 1903, ch. 176, § 7; R.C. 1905, § 222; C.L. 1913, § 356; R.C. 1943, § 15-0507; 2009, ch. 154, § 1.

Decisions Under Prior Law

Board Determination.

Determination by board of university and school lands that common school lands were not “coal lands” was conclusive, and deed conveying such lands was not void. Haag v. State, 219 N.W.2d 121, 1974 N.D. LEXIS 198 (N.D. 1974).

15-05-08. Penalty for mining and prospecting in violation of requirements governing.

Any person who mines, removes, or causes to be mined or removed, from any lands subject to the control of the board of university and school lands, any coal, lignite, uranium, oil and gas, or potash, unless mined or removed pursuant to the provisions of this chapter, or any person who prospects or explores for coal, lignite, uranium, oil and gas, or potash without permission from the board of university and school lands, is guilty of theft as defined in chapter 12.1-23. The offense is a class C felony. In addition, such person is civilly liable for trespass pursuant to chapter 15-08.

Source: S.L. 1903, ch. 176, § 8; R.C. 1905, § 223; C.L. 1913, § 357; R.C. 1943, § 15-0508; S.L. 1975, ch. 106, § 121; 1977, ch. 142, § 1.

15-05-09. Leases for oil, gas, and other products.

The board of university and school lands may lease any lands under its control believed to contain oil, gas, coal, cement materials, sodium sulfate, sand and gravel, road material, building stone, chemical substances, metallic ores, colloidal or other clays, or other naturally occurring elements and their compounds, and may make and establish rules and regulations for development, drilling, and mining operations.

Source: S.L. 1927, ch. 249, § 1; 1931, ch. 232, § 1; R.C. 1943, § 15-0509; 2021, ch. 277, § 1, effective August 1, 2021.

15-05-10. Royalties from oil and gas leases — Obligation to pay — Rents from other leases — Breach — Rules.

1. Oil and gas leases must be made by the board of university and school lands at such annual minimum payments as are determined by the board, but the royalty may not be less than twelve and one-half percent of the gross output of oil from the lands leased. Oil and gas leases made by the board may authorize a royalty of less than twelve and one-half percent for production from stripper well properties or individual stripper wells and qualifying secondary recovery and qualifying tertiary recovery projects as defined in section 57-51.1-01. Leases issued by the board under section 15-05-09 for products other than oil and gas must provide for adequate rental payments and other provisions as determined by the board.
2. The obligation arising under an oil and gas lease to pay oil or gas royalties to the board of university and school lands, to deliver oil or gas to a purchaser to the credit of the board, or to pay the market value thereof is of the essence in the lease contract, and breach of the obligation may constitute grounds for the cancellation of the lease in any case in which it is determined by the court that the equities of the case require cancellation. If the lessee or the lessee’s representative or assignee under an oil and gas lease fails to pay oil or gas royalties to the board within the time prescribed by administrative rule and cancellation of the lease is not sought, the lessee or the lessee’s representative or assignee thereafter shall pay interest on the unpaid royalties at a rate of three-quarters of one percent per month, not to exceed nine percent per annum. The commissioner may waive all or a portion of the interest under this subsection for good cause.
3. If a lessee or the lessee’s representative or assignee fails to respond or refuses to file an amended royalty statement and pay the royalty owed within ninety days of receiving written notice by mail of an underpayment, as provided by rule 4 of the North Dakota Rules of Civil Procedure, the board may impose a penalty of one-half percent per month, not to exceed six percent per annum. A party is deemed to have failed to respond if the party has not responded within ninety days of receipt of the written notice, or the party in response to the notice affirmatively indicates the intent not to pay the royalty or amounts due. The commissioner may waive all or a portion of the interest under this subsection for good cause.
4. If a lessee or the lessee’s representative or assignee disputes a royalty assessment or demand by the board, the lessee or the lessee’s representative or assignee may tender full payment of the disputed amount under protest any time after an assessment or demand is made by the board. Upon payment of the disputed amount under protest, all interest and penalties must cease to accrue. If it is determined that the payment of the disputed amount resulted in an overpayment, the party that made the payment is entitled to a refund of the overpayment amount plus interest at the rate established under section 28-20-34.
5. If a lessee or the lessee’s representative or assignee fails or refuses to comply with demands by the board to pay royalties, interest, or penalties under this chapter, the board may file an action to cancel the lease, recover unpaid royalties, and recover interest and penalties on the unpaid royalties. Notwithstanding chapter 28-01, an action under this subsection must be commenced within seven years of the date oil or gas was produced under a lease. An action to cancel a lease, recover unpaid royalties, or recover interest or penalties on unpaid royalties may not be filed for production that occurred under a lease before August 1, 2013.
6. The board may adopt rules regarding rental payments and royalties under this section.

Source: S.L. 1927, ch. 249, § 2; 1931, ch. 232, § 2; R.C. 1943, § 15-0510; S.L. 1993, ch. 159, § 1; 2013, ch. 473, § 1; 2021, ch. 119, § 1, effective August 1, 2021; 2021, ch. 277, § 2, effective August 1, 2021.

Effective Date.

The 2013 amendment of this section by section 1 of chapter 473, S.L. 2013 is effective for taxable events occurring after June 30, 2013.

Note.

Section 15-05-10 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 2 of Chapter 277, Session Laws 2021, Senate Bill 2065; and Section 1 of Chapter 119, Session Laws 2021, House Bill 1080.

15-05-11. Improvements defined.

The word “improvements” must be construed to mean surface improvements, machinery, and other equipment used and necessary for the operation of drilling on the land for oil or gas and the extraction of coal, cement materials, sodium sulfate, sand and gravel, road materials, building stone, chemical substances, metallic ores, or colloidal or other clays, and work performed in the development of the property for such purposes when the development work is of practical value for future operation and drilling upon the land. Wells drilled for oil or gas which do not produce oil or gas in commercial quantities may not be considered improvements.

Source: S.L. 1927, ch. 249, § 3; 1931, ch. 232, § 3; R.C. 1943, § 15-0511.

15-05-12. Sale or lease of land on which improvements have been made — Right of owner of improvements. [Repealed]

Repealed by S.L. 1977, ch. 141, § 3.

Note.

For present provisions, see § 15-05-12.1.

15-05-12.1. Improvements made on lands by a mineral lessee.

The board of university and school lands may provide by rule or lease term for the sale, disposal, removal, or acquisition of improvements placed on lands by a lessee.

Source: S.L. 1977, ch. 141, § 1.

15-05-13. Oil, gas, and other leases separate from grazing and farming leases.

All leases made for the purpose of obtaining and extracting oil, gas, coal, cement materials, sodium sulfate, sand and gravel, road material, building stone, chemical substances, metallic ores, or colloidal or other clays must be separate and distinct from any lease of the land for grazing and farming purposes and the regulations made by the board of university and school lands must provide for the use of the lands for grazing and farming purposes without interference on the part of the lessee for the purposes aforesaid.

Source: S.L. 1927, ch. 249, § 4; 1931, ch. 232, § 4; R.C. 1943, § 15-0513.

15-05-14. Bonds for rents and royalties.

The board of university and school lands may require the lessee to execute a good and sufficient bond conditioned for the payment of all moneys, rentals, and royalties stipulated by the terms of the lease and for the full compliance with and observance of all rules and regulations established by the board and of all other terms set forth in the lease.

Source: S.L. 1927, ch. 249, § 5; 1931, ch. 232, § 5; R.C. 1943, § 15-0514.

15-05-15. Assignment of lease only with consent of board.

Leases made for the purpose of obtaining or extracting oil, gas, coal, cement materials, sodium sulfate, sand and gravel, road material, building stone, chemical substances, metallic ores, or colloidal or other clays may not be assigned nor transferred except with the written consent of the board of university and school lands.

Source: S.L. 1927, ch. 249, § 5; 1931, ch. 232, § 5; R.C. 1943, § 15-0515.

15-05-16. Reports — State geologist — State department of health — Department of environmental quality. [Effective through August 31, 2022]

The state geologist, state department of health, or department of environmental quality, on the request of the board of university and school lands, shall visit any land leased under section 15-05-09 and shall make a report of the visit to the board. The state geologist, state department of health, or department of environmental quality may not receive a fee for making the examination and report but must be paid necessary expenses incurred in connection with the examination.

Source: S.L. 1927, ch. 249, § 6; 1931, ch. 232, § 6; R.C. 1943, § 15-0516; S.L. 1995, ch. 54, § 6; 2017, ch. 199, § 9, effective 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]

15-05-16. Reports — State geologist — Department of health and human services — Department of environmental quality. [Effective September 1, 2022]

The state geologist, department of health and human services, or department of environmental quality, on the request of the board of university and school lands, shall visit any land leased under section 15-05-09 and shall make a report of the visit to the board. The state geologist, department of health and human services, or department of environmental quality may not receive a fee for making the examination and report but must be paid necessary expenses incurred in connection with the examination.

Source: S.L. 1927, ch. 249, § 6; 1931, ch. 232, § 6; R.C. 1943, § 15-0516; S.L. 1995, ch. 54, § 6; 2017, ch. 199, § 9, effective April 29, 2019; 2021, ch. 352, § 66, effective September 1, 2022.

15-05-17. Lessee first establishing oil well has preference as to leasing of adjacent lands. [Repealed]

Repealed by S.L. 1977, ch. 322, § 9.

15-05-18. Leases of sand and gravel, construction aggregate, and other construction minerals.

Notwithstanding the provisions of chapter 38-09, the board of university and school lands may enter into mineral leasing agreements for sand and gravel, road material, building stone, and construction aggregate or colloidal or other clays under rules adopted by the board. No lease under this section may be issued by the board for less than fair market value, nor may any lease under this section be issued for a period of more than five years.

Source: S.L. 1987, ch. 192, § 1; 2005, ch. 137, § 1.

15-05-19. Appropriation for lease expenses — Continuing appropriation.

There is appropriated annually the amounts necessary to pay expenses for minerals controlled by the board of university and school lands, including appraisal fees, consulting fees, refunds, and expenses determined by the board as necessary to manage, preserve, and enhance the value of the trust asset. Each payment must be made from the trust fund for which the land is held.

Source: S.L. 2003, ch. 129, § 5.

15-06-01. Original grant lands defined.

The term “original grant lands” means all of the public lands which heretofore have been or hereafter may be granted to the state by the United States for the support and maintenance of the common schools or for the support and maintenance of the university, the school of mines, the North Dakota youth correctional center, North Dakota state university, the school for the deaf, any normal school, or any other educational, penal, or charitable institution, and any lands which have been obtained by the state through a trade of any such lands for other lands. Original grant lands which have been sold on contract retain their character as such grant lands until the contract has been paid up and a patent issued therefor.

Source: N.D. Const., §§ 153, 159; R.C. 1943, § 15-0601; S.L. 1971, ch. 162, § 2; 1995, ch. 120, § 25.

Cross-References.

Sale of grant lands authorized, see N.D. Const., art. IX, § 5.

15-06-02. County board of appraisers — How composed.

The county superintendent of schools, the chairman of the board of county commissioners, and the county auditor of each county constitutes the county board of appraisers of the original grant lands of the state in their respective counties. The county director of tax equalization shall serve as an assistant in making the appraisals.

Source: S.L. 1893, ch. 118, § 16; R.C. 1895, § 183; R.C. 1899, § 183; R.C. 1905, § 167; S.L. 1911, ch. 261, § 1; C.L. 1913, § 300; R.C. 1943, § 15-0602; S.L. 1983, ch. 186, § 1.

Cross-References.

Compensation of county board of appraisers, see N.D.C.C. § 15-08-03.

Designation of land to be appraised, return of appraisals, see N.D.C.C. § 15-04-06.

Duties of county boards of appraisers, see N.D. Const., Art. IX, § 4.

15-06-03. Appraisement of lands by county board of appraisers — Regulations governing. [Repealed]

Repealed by S.L. 1947, ch. 160, § 12.

15-06-04. Certification and verification of appraisal — Penalty for false statement. [Repealed]

Repealed by S.L. 1947, ch. 160, § 12.

15-06-05. When lands remaining unsold reappraised. [Repealed]

Repealed by S.L. 1947, ch. 160, § 12.

15-06-06. Selecting and certifying lands for sale — Time of sale. [Repealed]

Repealed by S.L. 1947, ch. 160, § 12.

15-06-07. Notice of sale — Contents — Publication. [Repealed]

Repealed by S.L. 1947, ch. 160, § 12.

15-06-08. Manner of sale — Purchase price. [Repealed]

Repealed by S.L. 1947, ch. 160, § 12.

15-06-09. Postponement of sale — Order for — Publication of notice. [Repealed]

Repealed by S.L. 1947, ch. 160, § 12.

15-06-10. Terms of sale — Sale to highest bidder — Penalty for failure to make first payment. [Repealed]

Repealed by S.L. 1947, ch. 160, § 12.

15-06-11. Withdrawal of lands from sale — Notice to county auditor — Public notice. [Repealed]

Repealed by S.L. 1947, ch. 160, § 12.

15-06-12. County auditor to act as clerk at sale — Report of sale. [Repealed]

Repealed by S.L. 1947, ch. 160, § 12.

15-06-13. Execution of contract with purchaser — Notice — Failure to execute. [Repealed]

Repealed by S.L. 1947, ch. 160, § 12.

15-06-14. Subdivision of land into small tracts or lots. [Repealed]

Repealed by S.L. 1947, ch. 160, § 12.

15-06-15. Sale of lots and parcels — New appraisal — Terms of sale. [Repealed]

Repealed by S.L. 1947, ch. 160, § 12.

15-06-16. Recording of corrected map when tract divided into parcels or lots. [Repealed]

Repealed by S.L. 1947, ch. 160, § 12.

15-06-17. Prepayments on contracts permitted — Payment for townsite lands. [Repealed]

Repealed by S.L. 1947, ch. 160, § 12.

15-06-18. Resale to original contractholder or heirs or assigns — Condition and terms.

When land has been sold on contract as provided in this chapter and the purchaser, or the purchaser’s heirs or assigns, have been unable to pay for the land purchased within twenty years after the date of purchase and such contract is in default and subject to cancellation, and when such inability to pay under the contract has been caused in whole or in part by reason of successive crop failures, the board of university and school lands, if requested so to do by such purchaser, or the purchaser’s heirs or assigns, after it has declared such contract terminated, may resell the land described therein to such purchaser, or to the purchaser’s heirs or assigns, for the amount of the unpaid principal of the original purchase price plus the amount of unpaid accrued interest, but in no case may the resale price be more than the original sale price. Upon such resale, a contract of resale must be issued to the purchaser upon the same terms as were contained in the original contract except that the contract of resale may provide that the purchaser may pay the first one-fifth of the resale price in five equal successive annual installments, the first to be paid at the time of execution of the contract, and that such contract shall bear interest at the rate of three percent per annum payable annually.

Source: N.D. Const., § 158; Const. Amd. Art. 50, June 28, 1938, S.L. 1939, p. 495; R.C. 1943, § 15-0618.

15-06-19. Reconveyance to the United States of lands improperly conveyed.

When lands have been certified or conveyed erroneously or improperly to the state of North Dakota for school or other purposes by the United States, the governor of the state may reconvey or relinquish the title which the state may have to the lands by the execution, under the governor’s hand and with the seal of the state, of such conveyances as may be necessary.

Source: S.L. 1893, ch. 118, § 37; R.C. 1895, § 204; R.C. 1899, § 204; R.C. 1905, § 188; C.L. 1913, § 322; R.C. 1943, § 15-0619.

15-06-19.1. Exchange of lands with the United States.

Original grant school or institutional lands and any other lands controlled by the board of university and school lands may be exchanged for lands of like character and value belonging to the United States government when it appears that such exchange will be advantageous to the state of North Dakota and will effect an increase in the value of such lands by consolidation or by making lands more accessible. 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, and the lands so acquired are subject to the trust to which the lands exchanged therefor were subject.

Source: S.L. 1967, ch. 121, § 1.

15-06-20. Coal lands not to be sold but may be leased. [Repealed]

Repealed by S.L. 1995, ch. 162, § 8.

15-06-21. Description of school lands withdrawn from sale except for park purposes. [Repealed]

Repealed by S.L. 1963, ch. 136, § 1.

15-06-22. Offer to purchase original grant land — Appraisal — Continuing appropriation.

When an offer to purchase any particular tract of original grant land has been made to the board of university and school lands, the commissioner shall request the county board of appraisers to appraise such tract. Upon receipt of such request by the county auditor, the auditor shall immediately notify the members of the county board of appraisers, who shall, within ten days, proceed to view and appraise such tract. There is appropriated annually the amounts necessary to pay all expenses under this section. Each payment must be made from the trust fund for which the land is held.

Source: S.L. 1947, ch. 160, § 1; R.C. 1943, 1957 Supp., § 15-0622; S.L. 2003, ch. 129, § 6.

15-06-23. Certification and verification of appraisal.

The county board of appraisers shall certify to the correctness of the appraisal and file the same with the county auditor who shall immediately transmit the same to the commissioner of university and school lands. The appraisal must be verified by each of the appraisers and must disclose any real or contingent interest that any of the appraisers has in the tract appraised.

Source: S.L. 1947, ch. 160, § 2; R.C. 1943, 1957 Supp., § 15-0623; S.L. 1975, ch. 106, § 122.

15-06-24. When reappraisal unnecessary in land remaining unsold.

If any tract so appraised is not sold immediately, it may again be offered and sold without reappraisement if sold within two years of such appraisement.

Source: S.L. 1947, ch. 160, § 3; R.C. 1943, 1957 Supp., § 15-0624.

15-06-25. Notice of sale — Contents — Publication.

The board of university and school lands shall cause a notice of sale of such tract to be published once each week for a period of three weeks prior to the day of sale in the official county newspaper where said land is situated and in such other newspapers as the board deems appropriate. Such notice must describe the land to be sold, and must state the amount bid therefor, and the terms and conditions of sale.

Source: S.L. 1947, ch. 160, § 4; R.C. 1943, 1957 Supp., § 15-0625; S.L. 1977, ch. 140, § 2.

Cross-References.

Notice of sale, see N.D. Const., art. IX, § 6.

15-06-26. Manner of sale — Purchase price.

At the time appointed for the sale, the commissioner of university and school lands, the commissioner’s deputy, or any other person appointed by the commissioner shall proceed to sell or offer for sale the land so advertised to be sold at public auction to the highest bidder. The sale must be held at the county seat, in the county in which the land is situated. A tract may not be sold for less than the fair market value thereof or for less than ten dollars per acre [.40 hectare].

Source: S.L. 1947, ch. 160, § 5; R.C. 1943, 1957 Supp., § 15-0626; S.L. 1993, ch. 158, § 2; 1999, ch. 152, § 3.

Cross-References.

Manner of sale, N.D. Const., art. IX, § 6.

15-06-27. Terms of sale — Sale to highest bidder — Penalty for failure to make first payment.

The board of university and school lands may sell original grant land either for cash or under contract. The highest bidder for any tract of land offered for sale under this chapter must be declared the purchaser thereof. A purchaser under contract shall pay twenty percent of the purchase price at the time the contract is executed; thereafter annual payments must be made of not less than six percent of the original purchase price. An amount equal to not less than three percent per annum of the unpaid principal must be credited to interest and the balance must be applied as payment on principal as credit on the purchase price. If the purchaser fails to pay the amount required to be paid at the time of sale, the commissioner or other person conducting the sale may reoffer the tract for sale immediately, but no bid may be received from the person failing to pay as aforesaid. Any person refusing or neglecting to make such initial payment after purchase shall forfeit an amount equal to ten percent of the purchase price or final bid to be recovered for the benefit of the fund to which the land belongs by civil suit in the name of the state.

Source: S.L. 1947, ch. 160, § 6; R.C. 1943, 1957 Supp., § 15-0627; S.L. 1963, ch. 137, § 1; 1993, ch. 160, § 1.

15-06-28. Execution of contract — Failure.

Immediately upon the sale by the board of university and school lands, the purchaser shall execute a purchase agreement for a cash sale or a contract in the form prescribed by the board. The failure of a purchaser to execute a purchase agreement or a contract constitutes a forfeiture of the payment made at or before the sale. When a purchase agreement or contract is executed properly by the commissioner, a copy must be delivered to the purchaser.

Source: S.L. 1947, ch. 160, § 7; R.C. 1943, 1957 Supp., § 15-0628; S.L. 1993, ch. 160, § 2.

15-06-29. Subdivision of land into small tracts or lots.

Whenever the interests of the state will be promoted by dividing any portion of the land under its control into small parcels or city lots, the board of university and school lands may order the commissioner to cause the same to be done and to have the land appraised in the manner prescribed in this chapter.

Source: S.L. 1947, ch. 160, § 8; R.C. 1943, 1957 Supp., § 15-0629.

15-06-30. Sale of lots and parcels — New appraisal — Terms of sale.

All parcels or lots appraised in accordance with sections 15-06-22 and 15-06-23 are subject to sale in the same manner, upon the same terms and conditions, and at the prices not less than that at which they are appraised severally until a new appraisal is made, and the contract of purchase shall have the same effect. The board of university and school lands may order a new appraisal of such lands to be made at any time in the manner provided in this chapter and with like effect. No lots or parcels so appraised may be sold for less than the minimum price of the land established in this chapter.

Source: S.L. 1947, ch. 160, § 9; R.C. 1943, 1957 Supp., § 15-0630.

15-06-31. Recording of correct map when tract divided into parcels or lots.

When the commissioner of university and school lands divides any tract of land into small parcels or lots as provided in this chapter, the commissioner shall cause a correct map of the land to be entered of record in the county where the land is situated.

Source: S.L. 1947, ch. 160, § 10; R.C. 1943, 1957 Supp., § 15-0631.

15-06-32. Prepayments on contracts permitted.

The purchaser may pay all or any installments of principal not yet due to any interest-paying date. If the purchaser so desires, the purchaser may pay the entire balance due on the contract, plus accrued interest to date of payment, at any time, and the purchaser will then be entitled to proper conveyance. Payment for school or institutional lands purchased under the provisions of chapter 15-09 may be made at any time.

Source: S.L. 1947, ch. 160, § 11; R.C. 1943, 1957 Supp., § 15-0632.

15-06-32.1. Contracts — Renegotiation.

The board of university and school lands may renegotiate the terms of any contract made under this chapter when requested by a purchaser who has paid at least thirty percent of the purchase price and is unable to make the payments as required by the contract. The renegotiation may include restructuring and reamortization so long as the resulting contract is consistent with the fiduciary responsibilities of the board.

Source: S.L. 1987, ch. 193, § 1.

15-06-33. Sale of stumpage near Garrison dam authorized. [Repealed]

Repealed by S.L. 1987, ch. 193, § 5.

15-06-34. Applications to purchase. [Repealed]

Repealed by S.L. 1987, ch. 193, § 5.

15-06-35. Procedure. [Repealed]

Repealed by S.L. 1987, ch. 193, § 5.

15-06-36. Sale at public auction. [Repealed]

Repealed by S.L. 1987, ch. 193, § 5.

15-06-37. Conveyance. [Repealed]

Repealed by S.L. 1987, ch. 193, § 5.

15-06-38. Forest management authorized — Discontinuance.

The board of university and school lands may, in its discretion, designate any original grant lands more readily suitable for forestry than for agricultural purposes and suitable for forest management, and may direct the state forester to assume full control over the same and to apply accepted good forestry practices in the care, reforestation, fire control, and management thereof. The board may, at the end of any five-year period of such control discontinue such control and assume sole control of any lands so placed in the control of the state forester, provided that the return of such control to the board of university and school lands does not interrupt a program of forest management already in progress for which additional time is needed.

Source: S.L. 1951, ch. 124, § 1; R.C. 1943, 1957 Supp., § 15-0638; S.L. 1963, ch. 138, § 1.

15-06-39. State forester to control lands designated for forest management.

The state forester shall assume control over all lands so designated and proceed to develop and improve the same by applying thereto accepted good forestry practices in the management and improvement thereof for the purpose of protecting and improving the forest potential of such lands and producing income through sustained yield management by the sale of forest products produced thereon, such sales to be made under the direction and at the discretion of the state forester. The state forester further may issue permits for the cutting and removal of hay on and from the land under the state forester’s control at a price to be determined by the board of university and school lands, subject to the rules and regulations adopted by the state forester and board of university and school lands.

Source: S.L. 1951, ch. 124, § 2; R.C. 1943, 1957 Supp., § 15-0639; S.L. 1963, ch. 138, § 2.

15-06-40. Application of income.

The state forester shall apply the income so derived first to the payment of the cost of all care and development of such land, and, second, the net annual income must be paid to the board of university and school lands for the credit of the permanent school funds, the same to be properly apportioned among the several funds therein.

Source: S.L. 1951, ch. 124, § 3; R.C. 1943, 1957 Supp., § 15-0640; 2009, ch. 153, § 7.

15-06-41. Reports by state forester to board of university and school lands.

The state forester shall report annually to the board of university and school lands the nature of the improvements, the conditions of the forest, the number of trees cut and the disposition thereof, the proceeds derived from the sale of forest products and the disposition thereof, the amount of forest products undisposed of, and all expenses paid or incurred. The state forester shall also report such other matters pertaining to said lands as the board of university and school lands may require. Such report must be made with respect to each separate school section so controlled by the state forester.

Source: S.L. 1951, ch. 124, § 4; R.C. 1943, 1957 Supp., § 15-0641.

15-07-01. Definitions.

The terms “other than original grant lands” or “nongrant lands” mean all lands obtained by the board of university and school lands in any manner other than that described in section 15-06-01.

Source: R.C. 1943, § 15-0701.

Law Reviews.

State Lands: What Are We Doing? Thomas O. Smith, 51 N.D. L. Rev. 477 (1975).

15-07-02. Rules and regulations for sale of nongrant lands — Powers of board.

The board of university and school lands may make such rules and regulations not in conflict with the provisions of this title as it deems necessary as to the manner, place, and time of payment of principal and interest, the conduct of the business of selling and disposing of lands other than original grant lands, and the terms and conditions of those sales. The board may sell nongrant lands on amortized payment contracts, and renegotiate the terms of those contracts, so long as the purchaser, at the time renegotiation is requested, has paid at least thirty percent of the purchase price and the resulting contract is consistent with this chapter and with the board’s fiduciary responsibilities.

Source: S.L. 1893, ch. 118, §§ 8, 34; R.C. 1895, §§ 175, 201; R.C. 1899, §§ 175, 201; S.L. 1901, ch. 193, § 1; R.C. 1905, §§ 159, 185; C.L. 1913, §§ 292, 319; S.L. 1925, ch. 178, § 1; 1925, ch. 179, § 1; 1925 Supp., §§ 292, 319; S.L. 1929, ch. 214, § 1; 1931, ch. 233, § 1; 1931, ch. 234, § 2; 1941, ch. 252, § 2; R.C. 1943, § 15-0702; S.L. 1987, ch. 193, § 2.

15-07-03. Sale of nongrant lands authorized.

The board of university and school lands may sell nongrant land at either private or public sale as provided in this chapter. Any sale is subject to any existing lease of the land.

Source: S.L. 1893, ch. 118, §§ 8, 33, 34; R.C. 1895, §§ 175, 200, 201; S.L. 1897, ch. 143, § 1; R.C. 1899, §§ 175, 200, 201; S.L. 1901, ch. 193, § 1; R.C. 1905, §§ 159, 184, 185; C.L. 1913, §§ 292, 318, 319; S.L. 1925, ch. 178, § 1; 1925, ch. 179, § 1; 1925 Supp., §§ 292, 319; S.L. 1929, ch. 214, § 1; 1931, ch. 233, § 1; 1931, ch. 234, § 2; R.C. 1943, § 15-0703.

15-07-04. Sale requirements.

Any land sold under the provisions of this chapter must be by public auction or sealed bids, except purchases under the provisions of section 15-07-10.

Source: S.L. 1893, ch. 118, §§ 8, 33, 34; R.C. 1895, §§ 175, 200, 201; S.L. 1897, ch. 143, § 1; R.C. 1899, §§ 175, 200, 201; S.L. 1901, ch. 193, § 1; R.C. 1905, §§ 159, 184, 185; C.L. 1913, §§ 292, 318, 319; S.L. 1925, ch. 178, § 1; 1925, ch. 179, § 1; 1925 Supp., §§ 292, 319; S.L. 1929, ch. 214, § 1; 1931, ch. 233, § 1; 1931, ch. 234, § 2; R.C. 1943, § 15-0704; S.L. 1955, ch. 129, § 1; 1957 Supp., § 15-0704; S.L. 1987, ch. 193, § 3; 1987, ch. 194, § 2; 1989, ch. 192, § 2.

15-07-05. Public sale of lands other than original grant lands — Notice. [Repealed]

Repealed by S.L. 1987, ch. 193, § 5.

15-07-06. Public sale of nongrant lands — Terms and conditions of sale — Contract. [Repealed]

Repealed by S.L. 1987, ch. 193, § 5.

15-07-07. Conveyance to purchaser upon payment in full of purchase price.

When the purchase price of any nongrant land sold under the provisions of this chapter, together with any interest on deferred payments due under such contract, has been paid in full, the lands purchased must be conveyed to the purchaser, or the purchaser’s heirs or assigns, by quitclaim deed executed in the name of the state of North Dakota by the commissioner of university and school lands, attested by the secretary of state, with the great seal of the state of North Dakota affixed.

Source: S.L. 1893, ch. 118, §§ 8, 33, 34; R.C. 1895, §§ 175, 200, 201; S.L. 1897, ch. 143, § 1; R.C. 1899, §§ 175, 200, 201; S.L. 1901, ch. 193, § 1; R.C. 1905, §§ 159, 184, 185; C.L. 1913, §§ 292, 318, 319; S.L. 1925, ch. 178, § 1; 1925, ch. 179, § 1; 1925 Supp., §§ 292, 319; S.L. 1929, ch. 214, § 1; 1931, ch. 233, § 1; 1931, ch. 234, § 2; 1939, ch. 224, § 2, subs. 20; 1941, ch. 252, § 1, subs. 6; R.C. 1943, § 15-0707; S.L. 1947, ch. 158, § 1; 1957 Supp., § 15-0707.

15-07-07.1. Former conveyances confirmed.

In all cases where nongrant lands have been conveyed by conveyances executed otherwise than is provided by section 15-07-07, such conveyances are hereby in all things ratified and confirmed.

Source: S.L. 1947, ch. 158, § 4; R.C. 1943, 1957 Supp., § 15-07071.

15-07-08. Sale of nongrant lands on crop payment contract — Conditions precedent to sale. [Repealed]

Repealed by S.L. 1987, ch. 193, § 5.

15-07-09. Sale of nongrant lands on crop payment contract — Payment of purchase price. [Repealed]

Repealed by S.L. 1987, ch. 193, § 5.

15-07-10. Mortgagor has right to repurchase.

If any mortgagor or a member of the mortgagor’s immediate family, including a father, mother, son, daughter, brother, sister, or spouse, desires to repurchase land lost through foreclosure or by a deed given in lieu of foreclosure, such repurchase may be made by matching the highest bid within one hour after public sale. The terms and conditions of any sale under this section must be established by the board of university and school lands, consistent with this title and the fiduciary responsibilities of the board.

Source: S.L. 1939, ch. 224, § 2, subs. 12; R.C. 1943, § 15-0710; S.L. 1987, ch. 193, § 4; 1995, ch. 164, § 1.

Cross-References.

Terms and prices on repurchase, see N.D.C.C. § 15-07-04.

15-07-11. Purchaser of farmlands purchased on crop share payment contract — Account of farm income — Assignability of contract. [Repealed]

Repealed by S.L. 1987, ch. 193, § 5.

15-07-12. Use of lands purchased on crop payment contract for other than income purposes. [Repealed]

Repealed by S.L. 1987, ch. 193, § 5.

15-07-13. Applicant for purchase on crop payment contract to pay appraisal fee — Private sale authorized on crop payment contract. [Repealed]

Repealed by S.L. 1987, ch. 193, § 5.

15-07-14. State has lien on produce of lands sold on crop payment contract. [Repealed]

Repealed by S.L. 1987, ch. 193, § 5.

15-07-15. Sale of nongrant lands on amortized payment plan — Conditions of sale. [Repealed]

Repealed by S.L. 1987, ch. 193, § 5.

15-07-16. Application to purchase nongrant lands on amortization contract. [Repealed]

Repealed by S.L. 1987, ch. 193, § 5.

15-07-17. Terms of sale of nongrant lands sold on amortization contract. [Repealed]

Repealed by S.L. 1987, ch. 193, § 5.

15-07-18. Contract of sale on amortized payment plan. [Repealed]

Repealed by S.L. 1987, ch. 193, § 5.

15-07-19. Islands owned by state — Lease and sale. [Repealed]

Repealed by omission from this code.

15-07-20. Leasing of nongrant lands.

The board of university and school lands may lease nongrant lands under reasonable rules as it may establish. The rules may provide for leasing with or without advertisement or competitive bidding. Leases made under this section must be for cash only, and the rental must be collected in advance except that the board may collect a share of a conservation reserve program payment paid by the federal government. A lease of nongrant lands may not extend for a period of more than five years, except any land accepted into the conservation reserve program may have a lease term that coincides with the term of the conservation reserve program contract if so provided in the lease. Leases may be renewed at the discretion of the board. When nongrant lands are leased without advertisement or competitive bidding, the board shall determine the rental by taking into consideration the nature and adaptability of the lands and the improvements thereon.

Source: R.C. 1943, § 15-0720; S.L. 1983, ch. 187, § 1; 1989, ch. 192, § 3; 1999, ch. 152, § 4.

15-07-21. Cancellation of leases of nongrant lands.

Leases of nongrant lands are subject to cancellation upon like conditions and in like manner as leases of original grant lands.

Source: R.C. 1943, § 15-0721.

Cross-References.

Failure to summer-fallow land as ground for cancellation, see N.D.C.C. § 15-04-04.

15-07-22. Appropriation for expenses — Continuing appropriation.

There is appropriated annually the amounts necessary to pay expenses for trust land controlled by the board of university and school lands, including appraisal fees, survey costs, clean-up or demolition costs, weed and insect control costs, rural fire district reimbursements for fire protection, and expenses determined by the board as necessary to manage, preserve, and enhance the value of the trust asset. Each payment must be made from the trust fund for which the land is held.

Source: S.L. 2003, ch. 129, § 7.

15-08-01. Permanent and interest and income funds. [Repealed]

Repealed by S.L. 2009, ch. 153, § 8.

15-08-01.1. Oil and gas bonus payments — Apportionment and distribution. [Repealed]

Repealed by S.L. 1985, ch. 82, § 162.

15-08-02. Township and district assessors to examine state lands — Compensation.

All township and district assessors shall examine any lands designated by the commissioner of university and school lands and report thereon in the manner and form prescribed by the commissioner. Such assessors must be paid at the rate of three dollars per day for time actually devoted to making such examinations, upon vouchers approved by the commissioner.

Source: S.L. 1893, ch. 118, § 46; R.C. 1895, § 213; R.C. 1899, § 213; R.C. 1905, § 197; C.L. 1913, § 331; R.C. 1943, § 15-0802.

15-08-03. Compensation of board of appraisers.

For performing any duties as members of the county board of appraisers, the county auditor and county superintendent of schools shall receive only their necessary traveling expenses, and the chairman of the board of county commissioners shall receive the same mileage and per diem as when serving on the board of county commissioners.

Source: S.L. 1893, ch. 118, § 5; R.C. 1895, § 172; S.L. 1897, ch. 128, § 1; R.C. 1899, § 172; R.C. 1905, § 155; S.L. 1907, ch. 224, § 1; 1907, ch. 228, § 1; 1909, ch. 106, § 1; C.L. 1913, § 287; S.L. 1915, ch. 241, § 1; 1917, ch. 204, § 1; 1919, ch. 198, § 1; 1921, ch. 108, § 1; 1925 Supp., § 287; S.L. 1929, ch. 215, § 1; R.C. 1943, § 15-0803.

Cross-References.

County boards of appraisers, see N.D. Const., Art. IX, § 4; N.D.C.C. § 15-06-02.

15-08-04. Surveys to be made when necessary — Continuing appropriation for expenses.

If it appears necessary in order to ascertain the true boundaries of any tract of land or to enable the commissioner of university and school lands to describe or dispose of the same in suitable and convenient lots, the board of university and school lands may order all necessary surveys to be made. There is appropriated annually the amounts necessary to pay all expenses under this section. Each payment must be made from the trust fund for which the land is held.

Source: S.L. 1893, ch. 118, § 26; R.C. 1895, § 193; R.C. 1899, § 193; R.C. 1905, § 177; C.L. 1913, § 310; R.C. 1943, § 15-0804; 2003, ch. 129, § 8.

15-08-05. Sale of public lands subject to confirmation.

Each sale of lands under the supervision of the board of university and school lands is subject to approval and confirmation by the board. No sale may be approved or confirmed by the board unless, from an examination of the certified lists and other information received and investigation made, it appears to the board that the sale was made in accordance with the provisions of this title and without fraud or collusion.

Source: S.L. 1893, ch. 118, § 23; R.C. 1895, § 190; R.C. 1899, § 190; R.C. 1905, § 174; C.L. 1913, § 307; R.C. 1943, § 15-0805.

15-08-06. Void sales — Surrender of contract — Refunding of money.

Any sale made by mistake, or not in accordance with law, or obtained by fraud is void, and the purchase agreement or contract of purchase issued thereon is of no effect. In such case, the holder of the purchase agreement or contract shall be required to surrender it to the board of university and school lands, and the board, except in case of fraud on the part of the purchaser, shall cause the money to be refunded to the holder of the void purchase agreement or contract.

Source: S.L. 1893, ch. 118, § 25; R.C. 1895, § 192; R.C. 1899, § 192; R.C. 1905, § 176; C.L. 1913, § 309; R.C. 1943, § 15-0806; S.L. 1993, ch. 160, § 3.

15-08-07. Contracts of purchase — Rights of holder — Recording.

A contract of purchase of lands, made pursuant to the provisions of this title, entitles the purchaser, or the purchaser’s heirs or assigns, to the possession of the lands therein described and to maintain actions for injuries done to the lands or to recover possession thereof, unless the contract has been canceled and not redeemed. A contract of purchase in force may be recorded in the manner provided by law for recording of deeds of conveyance.

Source: S.L. 1893, ch. 118, § 30; R.C. 1895, § 197; R.C. 1899, § 197; R.C. 1905, § 181; C.L. 1913, § 314; R.C. 1943, § 15-0807; S.L. 1987, ch. 195, § 1.

15-08-08. Assignee or successor in interest of purchaser — Rights and liabilities — Judicial sale — Subrogation.

An assignee of a bona fide purchaser of any of the lands mentioned in this title is subject to and governed by the provisions of this chapter applicable to the purchaser of whom the person is an assignee, and has the same rights in all respects as an original purchaser of the same class of lands. When the interest of a purchaser of any such lands is levied upon or attached in an action brought to recover a debt due from the purchaser, and when such interest is sold under execution and a certificate of sale is issued by the sheriff, the holder of the sheriff’s certificate, after the expiration of one year from the date of sale, may obtain and present to the commissioner of university and school lands a certificate of the sheriff of the county in which the land is situated, setting forth:

1. That the sale has been made;
2. The name and address of the purchaser at the sale;
3. That one year has elapsed since the sale;
4. That no redemption has been made by or on behalf of the original purchaser of the land, or the purchaser’s assignees or successors in interest; and
5. That no claim of homestead exemption has been made as to the land by any person.

After the filing of such certificate in the office of the commissioner of university and school lands, the person who bought the interest of the purchaser of the land at such judicial sale is subrogated to the contract of the original purchaser and to all rights of the purchaser in and to the land. The person so subrogated may carry out and perform the contract of purchase with the state in all particulars and on full performance thereof the person shall receive a conveyance of the land from the state.

Source: S.L. 1893, ch. 118, § 31; R.C. 1895, § 198; R.C. 1899, § 198; R.C. 1905, § 182; S.L. 1907, ch. 227, § 1; C.L. 1913, § 315; R.C. 1943, § 15-0808.

15-08-09. Contracts may be surrendered and two or more contracts issued in lieu thereof.

When the holder of a contract of purchase surrenders the same to the commissioner of university and school lands with a written request to have it divided into two or more contracts, the commissioner, when the application has been approved by the board of university and school lands, may issue new contracts accordingly, but no new contracts may be issued:

1. When any interest, principal, or taxes on the contract or the land described therein are due and unpaid; or
2. When the commissioner is of the opinion, after an examination of the land, if such examination is necessary, that the security would be impaired or endangered by the proposed division.

When any application proposes the division of the land into irregular tracts or tracts other than the regular government subdivisions, the applicant shall file with the commissioner a plat of the land showing the boundaries and area in acres [hectares] of each subdivision. The commissioner shall collect a fee of five dollars for each new contract issued under the provisions of this section.

Source: S.L. 1893, ch. 118, § 32; R.C. 1895, § 199; R.C. 1899, § 199; R.C. 1905, § 183; S.L. 1907, ch. 226, § 1; C.L. 1913, § 316; R.C. 1943, § 15-0809.

15-08-10. Surrender of contract and issuance of new contract and deed for railroad right of way.

The board of university and school lands may cause a new contract to be issued to the holder of any contract for the purchase of land subject to its control and a conveyance to be made to a railroad company for railroad right of way when the holder of the contract shall:

1. Surrender the original contract to the board;
2. Present satisfactory evidence that a railroad has been located and established across the land included in the contract after the issuance thereof;
3. File a plat of the land showing the exact location, width, and area in acres [hectares] of the land required for the right of way;
4. Pay to the commissioner the balance of the purchase price under the contract and all interest and taxes thereon to date for the acreage [hectarage] required for the right of way; and
5. Make application in writing for the cancellation of the contract and the issuance to the applicant of a new contract for the land, less the acreage [hectarage] required for the right of way.

The commissioner of university and school lands shall collect a fee of five dollars for each new contract and for each conveyance made under the provisions of this section.

Source: S.L. 1907, ch. 225, § 1; C.L. 1913, § 317; R.C. 1943, § 15-0810.

15-08-11. Contract payments made to commissioner — Report to state treasurer.

The purchaser of any land sold by the board of university and school lands, or the purchaser’s heirs, executors, administrators, or assigns, shall pay to the commissioner of university and school lands any amounts that may become due from time to time upon the contract for principal, interest, and penalties. The commissioner shall report and pay to the state treasurer daily all collections of principal, interest, and penalty payments. At the time of such payment to the state treasurer, the commissioner shall apportion the amounts paid to the funds to which the same are applicable and shall certify such apportionment.

Source: S.L. 1893, ch. 118, § 41; R.C. 1895, § 208; R.C. 1899, § 208; R.C. 1905, § 192; S.L. 1909, ch. 207, § 1; C.L. 1913, § 326; S.L. 1931, ch. 229, § 1; R.C. 1943, § 15-0811; S.L. 1979, ch. 205, § 4.

15-08-12. Cancellation of contracts of sale for default — Notice — Recording cancellation.

If the annual interest or any installment of the purchase price is not paid within thirty days after the same becomes due under the provisions of any contract for sale, or if the taxes are not paid upon the lands described in said contract in accordance with the provisions of the contract, the contract is voidable from the time of any such default. The board of university and school lands, in the case of any voidable contract, may declare the contract canceled by a resolution adopted for that purpose. Upon such declaration of cancellation, the board shall notify the holder of the contract by a written notice mailed to the holder’s post-office address as shown by its records and shall cause a certified copy of such resolution to be forwarded to the county auditor. A certified copy of the resolution may be recorded in the office of the recorder. The resolution operates as a complete and final cancellation of the contract without any order or decree of a court except that the purchaser’s rights and liabilities continue until the expiration of the period of redemption. Upon the expiration of the period of redemption after cancellation of any such contract, the board shall order the commissioner to take possession of the land described in the contract and serve notice of the expiration of the period of redemption upon the purchaser and the county auditor. When a contract has been canceled and not redeemed, the land described therein may not be listed thereafter for taxation until it has been resold.

Source: S.L. 1893, ch. 118, §§ 8, 33, 34; R.C. 1895, §§ 175, 200, 201; S.L. 1897, ch. 143, § 1; R.C. 1899, §§ 175, 200, 201; S.L. 1901, ch. 193, § 1; R.C. 1905, §§ 159, 184, 185; C.L. 1913, §§ 292, 318, 319; S.L. 1925, ch. 178, § 1; 1925, ch. 179, § 1; 1925 Supp., §§ 292, 319; S.L. 1929, ch. 214, § 1; 1931, ch. 233, § 1; 1931, ch. 234, § 2; 1939, ch. 224, § 2, subs. 18; 1941, ch. 252, § 1, subs. 8; R.C. 1943, § 15-0812; S.L. 1987, ch. 195, § 2; 2001, ch. 120, § 1.

15-08-13. Redemption from cancellation of contracts.

When a contract has been canceled under the provisions of this chapter, the purchaser or the purchaser’s heirs or assigns, during a period of one year from the date of such cancellation, may pay to the commissioner of university and school lands all past-due payments on principal and the amount of interest due and payable on the contract, together with all costs which have been incurred in addition thereto, and interest at the rate of four percent per annum on the interest and costs so due from the date of delinquency to the date of payment, and such payment operates as a redemption of the rights of such purchaser or the purchaser’s heirs or assigns, and such contract, from the time of such payment, is reinstated. As a part of such redemption, the purchaser shall pay taxes due or delinquent at the time of the redemption. When a redemption has been made from the cancellation of any contract, a certified copy of the resolution of the board of university and school lands rescinding the resolution of cancellation must be forwarded to the county auditor. A certified copy of such resolution may be recorded in the office of the recorder in the county in which such land is situated.

Source: S.L. 1893, ch. 118, §§ 8, 33, 34; R.C. 1895, §§ 175, 200, 201; S.L. 1897, ch. 143, § 1; R.C. 1899, §§ 175, 200, 201; S.L. 1901, ch. 193, § 1; R.C. 1905, §§ 159, 184, 185; C.L. 1913, §§ 292, 318, 319; S.L. 1925, ch. 178, § 1; 1925, ch. 179, § 1; 1925 Supp., §§ 292, 319; S.L. 1929, ch. 214, § 1; 1931, ch. 233, § 1; 1931, ch. 234, § 2; 1939, ch. 224, § 2, subs. 19; 1941, ch. 252, § 1, subs. 10; R.C. 1943, § 15-0813; S.L. 1963, ch. 139, § 1; 1987, ch. 195, § 3; 2001, ch. 120, § 1.

Cross-References.

Sale of nongrant lands, terms and prices, see N.D.C.C. § 15-07-04.

15-08-14. Redemption of lands not listed for taxation. [Repealed]

Repealed by S.L. 1987, ch. 195, § 7.

15-08-15. Fee title in state until contract is fulfilled — Unlawful detainer.

The fee of each parcel of land sold on contract must remain in the state until a patent or deed is issued therefor as provided in this title. After a failure on the part of the purchaser, or the purchaser’s heirs or assigns, to comply with the terms of the contract or with the provisions of law applicable thereto, any person being or continuing in possession of any such lands without the written permission of the commissioner must be deemed to detain the land forcibly and without right and to be a trespasser thereon.

Source: S.L. 1893, ch. 118, § 35; R.C. 1895, § 202; R.C. 1899, § 202; R.C. 1905, § 186; C.L. 1913, § 320; R.C. 1943, § 15-0815.

15-08-16. Patents for public lands — Execution.

Patents for original grant lands sold under the provisions of this title must be issued to the purchaser or the purchaser’s heirs or assigns, when payment is made in full for the lands and all the terms of the contract of purchase are performed. All such patents must be signed by the governor and attested by the secretary of state with the seal of the state and must be countersigned by the commissioner of university and school lands with the commissioner’s seal affixed.

Source: S.L. 1893, ch. 118, § 38; R.C. 1895, § 205; R.C. 1899, § 205; R.C. 1905, § 189; S.L. 1911, ch. 261, § 5; C.L. 1913, § 323; R.C. 1943, § 15-0816; S.L. 1947, ch. 158, § 3; 1957 Supp., § 15-0816.

15-08-16.1. Patents to public lands issued to a person who died before date of patent — Effect.

When patents for public lands have been or may be issued, in pursuance of any law of this state, to a person who has died before the date of such patent, the title of the land designated therein inures to and vests in the heirs, devisees, or assignees of such deceased patentees as if the patent had been issued to the deceased person during life.

Source: S.L. 1947, ch. 157, § 1; R.C. 1943, 1957 Supp., § 15-08161.

15-08-17. Patents — Recording — Effect.

The recorders of the several counties are authorized to record all patents issued by the governor pursuant to the provisions of this title, and the record thereof has the same effect as the record of other conveyances executed according to the laws of this state.

Source: S.L. 1893, ch. 118, § 39; R.C. 1895, § 206; R.C. 1899, § 206; R.C. 1905, § 190; C.L. 1913, § 324; R.C. 1943, § 15-0817; S.L. 2001, ch. 120, § 1.

15-08-18. Notice of sale to county auditors for taxation purposes.

As soon as possible after a sale of lands, the commissioner of university and school lands shall transmit to the auditor of the county in which the land is located a detailed description of the land and the name of the purchaser, and the county auditor shall enter the land upon the tax records for the purpose of taxation, and such land must be assessed in the name of the contract purchaser on the first day of April next succeeding the date of the contract.

Source: S.L. 1893, ch. 18, §§ 8, 33, 34, 40; R.C. 1895, §§ 175, 200, 201, 207; S.L. 1897, ch. 143, § 1; R.C. 1899, §§ 175, 200, 201, 207; S.L. 1901, ch. 168, § 1; 1901, ch. 193, § 1; R.C. 1905, §§ 159, 184, 185, 191; S.L. 1911, ch. 261, § 6; C.L. 1913, §§ 292, 318, 319, 325; S.L. 1925, ch. 178, § 1; 1925, ch. 179, § 1; 1925 Supp., §§ 292, 319; S.L. 1929, ch. 214, § 1; 1931, ch. 233, § 1; 1931, ch. 234, § 2; 1939, ch. 224, § 2, subs. 15; 1941, ch. 252, § 1, subs. 7; R.C. 1943, § 15-0818.

15-08-18.1. Taxation of public lands sold on contract — Cancellation.

When real property owned by the state of North Dakota as trustee of permanent school funds for the use and benefit thereof is sold upon contract providing for a future conveyance, the department or office making such contract on the part of the vendor shall immediately notify the county auditor of the county wherein the real property is situated, of the making of the contract, the description of the real property therein described, and the name of the vendee. The real property must be put upon the tax rolls of the county and assessed and the taxes must be levied thereon, based upon its taxable value on the first day of February next succeeding the date of the contract. In the event that the contract is canceled by the vendor and not redeemed, the taxes must be immediately canceled and stricken from the tax rolls by the county auditor upon notice of such expiration of the period of redemption being reported to the county auditor by the vendor.

Source: S.L. 1945, ch. 309, §§ 1, 2; R.C. 1943, 1957 Supp., §§ 15-08181, 15-08182; S.L. 1983, ch. 593, § 8; 1983, ch. 598, § 1; 1987, ch. 195, § 4; 2005, ch. 138, § 1.

15-08-18.2. Cancellation of taxes upon cancellation of contract. [Repealed]

Repealed by omission from this code.

15-08-18.3. Taxation upon sale to vendee under preference right.

In the event that a vendee governed by the provisions of section 15-08-18.1, or the vendee’s heirs, purchases real property under the terms and conditions of any law granting a preference right of purchase, the taxes levied upon the real property under the provisions of section 15-08-18.1 are a lien upon the interest of the vendee and the vendee’s heirs, but not as against the vendor, and become delinquent and must be collected as other real property taxes become delinquent and are collected. Immediately upon real property being repurchased as herein provided, the vendor shall notify the county auditor in the same manner as is provided for by section 15-08-18.1 and the real property must be assessed and taxes levied thereon, subject to further subsequent cancellation of the reinstated or new contract, and the resulting cancellation of the taxes on the property concerned. If real property is repurchased for cash by a vendee or the vendee’s heirs under a preference right to do so, the taxes levied against the interest of the vendee must be paid in addition to any sum required to be paid by the law under which the purchaser is granted a preference right of purchase.

Source: S.L. 1945, ch. 309, §§ 3 to 5; R.C. 1943, 1957 Supp., §§ 15-08183 to 15-08185; S.L. 1987, ch. 195, § 5.

15-08-18.4. Taxation after reinstatement. [Repealed]

Repealed by omission from this code.

15-08-18.5. Payment of tax before conveyance. [Repealed]

Repealed by omission from this code.

15-08-18.6. Exception.

The provisions of sections 15-08-18.1 and 15-08-18.3 shall not apply if the real property involved is purchased at a public sale.

Source: S.L. 1945, ch. 309, § 6; R.C. 1943, 1957 Supp., § 15-08186.

15-08-19. Taxation of and foreclosure of tax lien on property sold by state on deferred payment contract.

Property contracted to be sold by the state is subject to taxation from the date of the contract, and the taxes assessed thereon must be collected and enforced in the same manner as taxes against other property. If the contract is not canceled or if the contract has been canceled and the period of redemption has not yet run, the property upon which taxes are delinquent is subject to foreclosure of tax lien. After two years from the date the tax became due, and after notice of foreclosure has been given as required in title 57, on the date of foreclosure, the county shall acquire such rights and interests as belonged to the holder and owner of the contract issued under the provisions of this chapter and only such rights. The county may assign its rights and interest at any time, and the assignee shall have the rights given by this section to the county. No tax deed may be issued upon any tax sale certificate while the legal title to the lands remains in the state of North Dakota.

Source: S.L. 1893, ch. 118, §§ 8, 33, 34, 40; R.C. 1895, §§ 175, 200, 201, 207; S.L. 1897, ch. 143, § 1; R.C. 1899, §§ 175, 200, 201, 207; S.L. 1901, ch. 168, § 1; 1901, ch. 193, § 1; R.C. 1905, §§ 159, 184, 185, 191; S.L. 1911, ch. 261, § 6; C.L. 1913, §§ 292, 318, 319, 325; S.L. 1925, ch. 178, § 1; 1925, ch. 179, § 1; 1925, Supp., §§ 292, 319; S.L. 1929, ch. 214, § 1; 1931, ch. 233, § 1; 1931, ch. 234, § 2; 1939, ch. 224, § 2, subs. 16; 1941, ch. 252, § 1, subs. 9; R.C. 1943, § 15-0819; S.L. 1987, ch. 195, § 6; 1999, ch. 503, § 4; 2007, ch. 510, § 1.

15-08-19.1. Organized event.

1. Upon written request, the commissioner of university and school lands may allow by written agreement or permit, an organized event involving public access or activity on trust lands if the event:
   1. Is an appropriate use of trust lands;
   2. Does not damage trust lands;
   3. Does not have a negative impact on the value or financial return of the trust lands in violation of the board of university and school lands' fiduciary duty to the applicable trusts as determined by the commissioner;
   4. Protects the state from liability and other claims for damage; and
   5. Has been approved by the current surface land lessee, if the trust lands are leased.
2. The commissioner may refuse to issue or renew a permit if the permit applicant has repeatedly violated the provisions of this chapter or rules or orders of the commissioner.

Source: S.L. 2021, ch. 120, § 4, effective August 1, 2021.

15-08-19.2. Public access.

1. Nonvehicular public access to leased and unleased trust lands is allowed if in the best interests of the trusts, unless:
   1. Specifically prohibited by the commissioner; or
   2. A lessee of any lands under the control of the board of university and school lands posts the land with signage issued by the department, which:
      1. Requires notification to the lessee before entry by the public; or
      2. Closes the trust lands to all public access.
2. A lessee of any lands under the control of the board may not lease, sell, or otherwise be compensated for access to, on, across, or over leased trust lands.

Source: S.L. 2021, ch. 120, § 2, effective August 1, 2021.

15-08-19.3. Vehicular access.

The use of vehicles on trust lands is prohibited, except:

1. Within thirty-three feet [10.06 meters] of section lines;
2. As allowed by the terms of a lease, permit, or easement issued by the board of university and school lands;
3. When used for travel on a public road easement issued by the board;
4. When used by government personnel in the performance of official duties; or
5. When hunting under a special permit issued by the director of the game and fish department to shoot from a stationary vehicle and with written permission from the lessee and commissioner.

Source: S.L. 2021, ch. 120, § 1, effective August 1, 2021.

15-08-19.4. Prohibited activities — Penalty

1. The following activities and items are prohibited on trust lands:
   1. Target shooting, explosives, and exploding targets;
   2. Camping, picnicking, or campfires;
   3. Unattended trail cameras, hunting blinds, tree stands, and screw-in steps unless otherwise authorized by the commissioner of university and school lands;
   4. Using bait to attract, lure, feed, or habituate wildlife for any purpose. For purposes of this subsection “bait” includes grains, screenings, minerals, salt, fruits, vegetables, hay, or any other natural or manufactured feeds, but not the use of lures, scents, or liquid attractants for hunting;
   5. Disturbing or removing artifacts or any cultural, historical, archeological, or paleontological resources found on trust lands without written permission from the board of university and school lands;
   6. Disposing of refuse, including garbage, bottles, cans, trees, branches, or other waste materials;
   7. Dog training;
   8. Metal detecting;
   9. Guiding and outfitting;
   10. Collecting plant parts for sale or other commercial purposes;
   11. Trapping, unless authorized in writing by the commissioner;
   12. Tree cutting and firewood gathering, unless authorized in writing by the commissioner;
   13. Beehives, unless specifically authorized in a surface land lease; and
   14. Organized events for which the commissioner has not issued a written agreement or permit in accordance with section 15-08-19.1.
2. An individual who violates subdivision n of subsection 1 is guilty of a class B misdemeanor.

Source: S.L. 2021, ch. 120, § 3, effective August 1, 2021.

15-08-20. Willful and casual trespass — Civil action for damages.

Any person who commits any trespass upon any of the surface or subsurface lands and resources controlled by the board of university and school lands is liable in treble damages in an action to be brought in the name of the state, if the trespass is adjudged to have been willful, but single damages only may be recovered in the action if the trespass is adjudged to have been casual and involuntary.

Source: S.L. 1893, ch. 118, § 63; R.C. 1895, § 229; R.C. 1899, § 229; R.C. 1905, § 215; C.L. 1913, § 349; R.C. 1943, § 15-0820; S.L. 1977, ch. 142, § 2.

Cross-References.

Liability for mining, removing or prospecting without board permission, see N.D.C.C. § 15-05-08.

15-08-21. Willful trespass — Penalty. [Repealed]

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

15-08-21.1. Willful trespass — Penalty.

Any person who willfully trespasses upon any of the lands subject to control of the board of university and school lands, either by cutting down or destroying any timber or wood standing or growing thereon, or by carrying away any timber or wood therefrom, or by mowing or cutting or removing any hay or grass standing or growing or being thereon, or who injures or removes any buildings, fences, improvements, or other property belonging or appertaining to the land, or who unlawfully breaks or cultivates any of the lands, or who unlawfully tampers with any portion of the subsurface estate, or aids, directs, or countenances a trespass or other injury, is guilty of a class A misdemeanor.

Source: S.L. 1977, ch. 142, § 3.

15-08-22. Seizure and sale of articles severed from land after trespass.

In addition to the penalties provided in this chapter for trespass upon lands, the commissioner of university and school lands may seize and take, or cause to be seized and taken, without legal process, any timber, grass, wood, or other property unlawfully severed from the lands, whether the same has been removed from the lands or not. The commissioner may dispose of the property seized either at public or private sale, in the manner most conducive to the interests of the state. After deducting the reasonable and necessary expenses of the seizure and sale, all moneys remaining must be made a part of the interest and income fund of the institution for the support of which the land was granted.

Source: S.L. 1893, ch. 118, § 65; R.C. 1895, § 231; R.C. 1899, § 231; R.C. 1905, § 225; C.L. 1913, § 359; R.C. 1943, § 15-0822.

15-08-23. State’s attorneys to report and prosecute trespasses.

The state’s attorneys of the several counties shall report promptly to the commissioner all cases of trespass committed upon lands controlled by the board of university and school lands which may come to their knowledge. When directed by the attorney general, the state’s attorney shall prosecute all actions for any trespass or injury or for recovery of possession of such lands.

Source: S.L. 1893, ch. 118, § 68; R.C. 1895, § 233; R.C. 1899, § 233; R.C. 1905, § 227; C.L. 1913, § 361; R.C. 1943, § 15-0823.

15-08-24. Damages recovered paid into school fund.

All damages recovered for trespass or other injury upon or to any of the lands mentioned in this chapter must be paid to the state treasurer for the benefit of the fund to which the same properly belongs.

Source: S.L. 1893, ch. 118, § 67; R.C. 1895, § 232; R.C. 1899, § 232; R.C. 1905, § 226; C.L. 1913, § 360; R.C. 1943, § 15-0824.

15-08-25. Lease or sale of public lands traversed or bisected by a highway, road, railroad, canal, river, or lake.

All boards, departments, and officials of government are authorized and permitted to lease or sell school and public lands traversed or bisected by a highway, road, or railroad, canal, river, or lake as two or more separate parcels, each of which may be leased or sold separately or together with an adjoining tract. Lands consisting of less than one hundred usable acres [40.47 hectares] may either be leased or sold separately or with tracts in the same section or adjacent section.

Source: S.L. 1947, ch. 159, § 1; R.C. 1943, 1957 Supp., § 15-0825; S.L. 1987, ch. 191, § 2; 1995, ch. 162, § 6.

15-08-26. Removal of or payment for improvements upon termination of lease.

The lessee of any lands under the control of the board of university and school lands, within one hundred twenty days after the expiration date or cancellation date of a lease may remove any nonpermanent improvements placed upon the lands by the lessee if the removal can be accomplished without material damage to the land. Permanent improvements may not be placed on the land without written consent of the commissioner of university and school lands. A lessee requesting a permit to place permanent improvements on the land shall complete an application form prepared by the commissioner. The cost of completing the permanent improvement is the lessee’s expense. The commissioner may approve depreciation of all or a portion of the cost of the permanent improvement over a period not to exceed ten years. The commissioner may also require the lessee to submit all documentation deemed necessary by the commissioner to determine the cost. The cost may not include any reimbursements to the lessee. The next lessee or purchaser, in addition to paying the purchase price or rental of the land, shall pay to the preceding lessee the undepreciated cost, if any. The commissioner may cancel any undepreciated cost of constructing a permanent improvement if the lessee fails to offer the minimum bid for the land and the land is not leased at the next auction at which the land is offered or if the lessee fails to comply with the conditions of the lease agreement.

Permanent improvements placed on the property must be deemed the property of the state. For purposes of this section, permanent improvements include buildings, wells, dams, waterholes, waterlines, and trees and nonpermanent improvements include fences, corrals, water tanks, and feed bunks.

Source: S.L. 1961, ch. 151, § 1; 1971, ch. 163, § 1; 1977, ch. 141, § 2; 1991, ch. 158, § 1; 1999, ch. 153, § 1.

15-08-27. Reservations and exceptions on the sale of land.

In all sales of nongrant land under control of the board of university and school lands, the same reservations and exceptions to the state of North Dakota must be made as in the sales of grant land. Any such sale which does not contain such reservations and exceptions must be construed as if such reservations and exceptions were contained therein.

Source: S.L. 1973, ch. 130, § 1; 1977, ch. 143, § 1.

15-08-28. Penalty.

An individual who violates any provision of this chapter, for which another penalty is not specifically provided for a substantially similar offense, is guilty of a noncriminal offense for which a fee of one hundred dollars must be assessed.

Source: S.L. 2021, ch. 120, § 5, effective August 1, 2021.

15-08.1-01. Declaration of policy and intent.

It is declared to be the policy and intent of this state to provide for proper and economic management of its lands. Therefore, certain possessory interests in real property acquired by the state of North Dakota in the past or in the future shall be transferred to the board of university and school lands in trust for the state of North Dakota in accordance with this chapter. Lands managed pursuant to this chapter are not subject to the leasing and sale provisions found elsewhere in this code.

Source: S.L. 1977, ch. 138, § 10.

15-08.1-02. Transfer of present possessory interests in real property. [Repealed]

Repealed by S.L. 1989, ch. 114, § 8.

15-08.1-02.1. Transfer of present possessory interests — Self-executing.

All possessory interests in real property other than minerals which were conveyed by this chapter to the state of North Dakota acting by and through the board of university and school lands prior to July 12, 1989, and which are still held by the board on July 12, 1989, are hereby conveyed to the state of North Dakota doing business as the Bank of North Dakota. This transfer is self-executing and no evidence other than the provisions of this chapter are required to establish the transfer of title to the Bank.

Source: S.L. 1989, ch. 114, § 6.

15-08.1-03. Transfer of future possessory interests in real property.

All mineral interests that may be acquired by the Bank of North Dakota, together with future increments, accruals, and recoveries coming, arising, or resulting from any of such property or from dealing therewith in whatever form, must be transferred, assigned, conveyed, and granted to the state of North Dakota, acting by and through the board of university and school lands. All transfers made in accordance with this section are self-executing; no evidence other than the provisions of this chapter may be required to establish the fact of transfer of title to the state of North Dakota, acting by and through the board of university and school lands. Proper and sufficient delivery of all title documents must be conclusively presumed.

Source: S.L. 1977, ch. 138, § 10; 1989, ch. 114, § 2.

15-08.1-04. Exceptions to transfers. [Repealed]

Repealed by S.L. 1989, ch. 114, § 8.

15-08.1-05. Existing contracts and encumbrances recognized.

The transfers made by this chapter are subject to all existing contracts, rights, easements, and encumbrances made or sanctioned by the Bank of North Dakota or the board of university and school lands.

Source: S.L. 1977, ch. 138, § 10; 1989, ch. 114, § 3.

15-08.1-05.1. Validation of conveyances.

All conveyances of interests in real property to the board of university and school lands which were effected by this chapter prior to July 12, 1989, are hereby validated and confirmed, and all contracts, agreements, conveyances, or other transfers of interests in real property made by the board of university and school lands under the authority of this chapter prior to July 12, 1989, are hereby validated and confirmed, and are binding upon the Bank of North Dakota.

Source: S.L. 1989, ch. 114, § 7.

15-08.1-06. Duties and powers of the board.

The board of university and school lands shall manage, operate, and supervise all properties transferred to it by this chapter; has full power of sale or lease with respect to any and all such property; and may establish, charge, and collect fees for the management of property acquired under this chapter. The board shall pay the costs incurred in carrying out its duties under this chapter from the fees and income derived under this chapter.

Source: S.L. 1977, ch. 138, § 10; 1987, ch. 187, § 6; 1989, ch. 114, § 4.

15-08.1-07. Rulemaking authority. [Repealed]

Repealed by S.L. 1989, ch. 114, § 8.

15-08.1-08. Income — Expenses — Reimbursement — Creation of strategic investment and improvements fund — Legislative intent.

The income derived from the sale, lease, and management of the mineral interests acquired by the board of university and school lands pursuant to this chapter and other funds as provided by law must, after deducting the expenses of sale, lease, and management of the property, be deposited in a fund to be known as the strategic investment and improvements fund. The corpus and interest of such trust may be expended as the legislative assembly may provide for one-time expenditures relating to improving state infrastructure or for initiatives to improve the efficiency and effectiveness of state government. It is the intent of the legislative assembly that moneys in the fund may be included in draft appropriation acts under section 54-44.1-06 and may be appropriated by the legislative assembly, but only to the extent that the moneys are estimated to be available at the beginning of the biennium in which the appropriations are authorized.

Source: S.L. 1977, ch. 138, § 10; 1987, ch. 187, § 7; 1989, ch. 114, § 5; 2011, ch. 483, § 5; 2015, ch. 463, § 1, effective July 1, 2015; 2015, ch. 467, § 1, effective July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 467, S.L. 2015 became effective July 1, 2015, pursuant to an emergency clause in section 9 of chapter 467, S.L. 2015.

The 2015 amendment of this section by section 1 of chapter 463, S.L. 2015 became effective July 1, 2015.

Note.

Section 7 of chapter 463, S.L. 2015 provides, in part, “EFFECTIVE DATE. Section 1 of this Act (which amended this section) is effective for tax collections received by the tax commissioner and for royalty, bonus, and other revenues received for deposit into the strategic investment and improvements fund after June 30, 2015.”

Section 15-08.1-08 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 1 of Chapter 467, Session Laws 2015, House Bill 1377; and Section 1 of Chapter 463, Session Laws 2015, House Bill 1176.

15-08.1-09. Strategic investment and improvements fund — Continuing appropriation. [Repealed]

Source: S.L. 2005, ch. 41, § 8; 2011, ch. 483, § 6; repealed by 2019, ch. 54, § 13, effective August 1, 2019.

15-09-01. Public lands — Application to acquire for public or quasi-public purpose.

The state of North Dakota or any person, firm, limited liability company, or public or private corporation, desiring to acquire any school or institution lands of the state for:

1. Townsite purposes;
2. Schoolhouse sites;
3. Church sites;
4. Cemetery sites;
5. Sites for other educational or charitable institutions;
6. Sites for public parks;
7. Sites for fairgrounds;
8. Public highway purposes;
9. Fish hatcheries;
10. Airports;
11. Railroad right of way or other railroad uses and purposes;
12. Reservoirs for the storage of water for irrigation;
13. Drainage ditches;
14. Irrigation ditches; or
15. Any of the other purposes for which the right of eminent domain may be exercised under the constitution and laws of the state,

may make written application to the board of university and school lands therefor. Such application shall state briefly the purposes for which the land is required, describe the land as accurately as practicable, and shall be accompanied by a map showing the land desired. The application shall be verified by the applicant, or, if the applicant is a public or private corporation, by some officer thereof, or, if the applicant is a limited liability company, by some manager thereof, or, if the applicant is the state of North Dakota, by an officer of the commission, board, or department desiring to acquire the land.

Source: S.L. 1915, ch. 242, § 1; 1925 Supp., § 335a1; S.L. 1929, ch. 217, § 1; R.C. 1943, § 15-0901; S.L. 1993, ch. 54, § 76.

Cross-References.

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

15-09-02. Appraisal of lands described in application.

Unless the land described in an application made under the provisions of this chapter has been appraised within two years prior to the filing of the application, the board of university and school lands shall have the same appraised in accordance with the provisions of this title, and if the land described in the application is a fractional part of an appraised tract, an appraisal thereof must be made in any event.

Source: S.L. 1915, ch. 242, §§ 2, 3; 1925 Supp., §§ 335a2, 335a3; R.C. 1943, § 15-0902.

15-09-03. Notice of hearing on application — Publication — Hearing and right to appear.

The board of university and school lands shall cause public notice to be given of the time when and place where it will hear an application made under this chapter. Such notice must describe the land involved and must state the purpose for which it is sought to purchase the same. The notice must be published in the official newspaper of the county in which the land is situated once each week for three consecutive weeks before the date set for hearing the application. At the time and place set for the hearing, the board shall consider the application. Any citizen may appear and show cause why the land should not be sold or why the price fixed is insufficient.

Source: S.L. 1915, ch. 242, §§ 2, 4; 1925 Supp., §§ 335a2, 335a4; R.C. 1943, § 15-0903.

15-09-04. Board to fix price for lands described in application — Conveyance.

The board of university and school lands may sell the property described in the application to the applicant at a price not less than the appraised value if the board concludes that the land described in the application is required for the purposes stated in such application and that a conveyance of the property is consistent with this title and the fiduciary responsibilities of the board. If the land described in the application is less than an entire tract, the board, in fixing the price at which such partial tract will be conveyed, shall take its value into consideration together with all detriment caused to the remaining portions of the tract by the conveyance of the partial tract. If the applicant agrees to the price fixed by the board for the land described in the application and pays the full purchase price therefor, the board shall cause the tract to be conveyed to the applicant.

Source: S.L. 1915, ch. 242, §§ 2, 3; 1925 Supp., §§ 335a2, 335a3; R.C. 1943, § 15-0904; S.L. 1993, ch. 161, § 1; 1995, ch. 165, § 1.

Cross-References.

Payment at any time, see N.D.C.C. § 15-06-32.

15-09-05. Disagreement as to purchase price — Condemnation — Procedure — Fixing values.

If the applicant is unwilling to pay the price for a conveyance fixed by the board of university and school lands, the applicant may maintain an action in the district court against the state to condemn the land under chapter 32-15. The amount awarded by the court or jury as damages for the taking of an entire tract, however, may not be less than the appraised value thereof, and the board, court, or jury, in fixing the amount to be paid for an entire tract or a part thereof, shall take into consideration the appraised value of the land, its actual value for all ordinary purposes, and any increased value it may have for any special and unusual purpose by reason of the existence of the facts authorizing the exercise of the power of eminent domain. If the land is desired for a gravel pit, its value may be estimated with reference to the existence of a demand for gravel, taking into consideration the necessities of the person seeking to acquire the land. If the land is desired for townsite purposes, consideration must be given to the value of the land to the state if it were used by the state for that purpose, and consideration also must be given to the necessity for a townsite at the place in question warranting the exercise of the power of eminent domain for that purpose. If the land is desired for other purposes, similar elements of value must be considered.

Source: S.L. 1915, ch. 242, § 5; 1925 Supp., § 335a5; R.C. 1943, § 15-0905; 2007, ch. 293, § 9.

15-10-01. State board of higher education — Institutions administered by board.

The state board of higher education shall have the control and administration of the following state educational institutions:

1. The state university and the school of mines at Grand Forks, with their substations.
2. The North Dakota state university of agriculture and applied science and the agricultural experiment station at Fargo, with their substations or centers.
3. The school of science at Wahpeton.
4. The Valley City state university, Mayville state university, Minot state university, and Dickinson state university.
5. The following colleges: Bismarck state college, Dakota college at Bottineau, Lake Region state college, and Williston state college.
6. And such other state institutions of higher education as may be established.

Source: N.D. Const. Amd. Art. 54, § 1, June 28, 1938, S.L. 1939, p. 499, § 1; R.C. 1943, § 15-1001; S.L. 1973, ch. 131, § 1; 1983, ch. 192, § 1; 1987, ch. 3, § 13; 1987, ch. 197, § 1; 1989, ch. 34, § 15; 1999, ch. 439, § 1; 2009, ch. 155, § 1.

Cross-References.

Board of Higher Education, see N.D. Const., art. VIII, § 6.

Experiment stations, see N.D.C.C. ch. 4-05 and N.D.C.C. § 15-12-10.

School of forestry, see N.D.C.C. ch. 15-16.

School of science, see N.D.C.C. ch. 15-15.

State normal schools, see N.D.C.C. ch. 15-13.

State university and school of mines, see N.D.C.C. ch. 15-11.

State university of agriculture and applied science, see N.D.C.C. ch. 15-12.

15-10-01.1. Board of higher education to assume jurisdiction over junior colleges and off-campus educational centers. [Repealed]

Repealed by S.L. 1999, ch. 154, § 2.

15-10-01.2. North Dakota university system — Unified system of higher education.

The institutions of higher education under the control of the state board of higher education are a unified system of higher education, as established by the board, and are designated as the North Dakota university system.

Source: S.L. 2001, ch. 159, § 1.

15-10-02. Membership of state board of higher education — Advisers.

1. The state board of higher education consists of eight members, all of whom must be appointed by the governor in accordance with section 6 of article VIII of the Constitution of North Dakota.
2. The council of college faculties shall annually appoint one individual to serve as an adviser to the state board. The adviser may attend and participate in all meetings of the state board but may not vote.
3. The staff senate annually shall appoint one individual to serve as an adviser to the state board. The adviser may attend and participate in all meetings of the state board but may not vote.

Source: N.D. Const. Amd. Art. 54, § 2, subs. a, June 28, 1938, S.L. 1939, p. 499; R.C. 1943, § 15-1002; S.L. 1977, ch. 145, § 1; 1983, ch. 193, § 1; 1991, ch. 159, § 1; 1991, ch. 160, § 1; 1993, ch. 162, § 1; 1999, ch. 154, § 1; 2011, ch. 116, § 1.

15-10-03. Terms of office. [Repealed]

Repealed by S.L. 1999, ch. 154, § 2.

15-10-04. Failure of senate to confirm nomination to board — Procedure. [Repealed]

Repealed by S.L. 1999, ch. 154, § 2.

15-10-05. Appointments to fill vacancies when legislative assembly not in session. [Repealed]

Repealed by S.L. 1999, ch. 154, § 2.

15-10-06. Removal — Impeachment only. [Repealed]

Repealed by S.L. 1999, ch. 154, § 2.

15-10-07. Oath of office — Quorum.

Before entering upon the duties of their offices, the members appointed to the state board of higher education shall take and subscribe the oath required of civil officers. A majority of the members appointed to the board constitutes a quorum for the transaction of business.

Source: R.C. 1943, § 15-1007.

Cross-References.

Oath of civil officers, see N.D. Const., art. XI, § 4, and N.D.C.C.§ 44-01-05.

15-10-08. Compensation of board members — Expenses — Legislative appropriations.

Each member of the state board of higher education, except the student member, is entitled to receive as compensation one hundred forty-eight dollars per day for each calendar day actually spent devoted to the duties of office, and necessary expenses in the same manner and amounts as other state officials for attending meetings and performing other functions of office. The legislative assembly shall provide adequate funds to carry out the functions and duties of the board.

Source: N.D. Const. Amd. Art. 54, §§ 4, 5, June 28, 1938, S.L. 1939, p. 500; R.C. 1943, § 15-1008; S.L. 1977, ch. 146, § 1; 1997, ch. 155, § 1; 1997, ch. 432, § 11; 2003, ch. 3, § 33; 2011, ch. 3, § 16.

15-10-09. President and secretary of board — Appointment — Term.

The state board of higher education shall elect one of its members annually to serve as president of the board for a term of one year. It shall elect a competent person as secretary, who shall hold office at the will of the board and shall reside, during the secretary’s term of office, in the city of Bismarck.

Source: N.D. Const. Amd. Art. 54, § 6, subs. a, June 28, 1938, S.L. 1939, p. 501; R.C. 1943, § 15-1009.

15-10-10. State commissioner of higher education — Qualification — Appointment — Term — Removal.

The state board of higher education, as soon as practicable, shall appoint, for a term of not to exceed three years, a state commissioner of higher education whose principal office must be at the state capitol. The commissioner of higher education is responsible to the board and is removable by the board for cause. The commissioner must be a graduate of some reputable college or university who by training and experience is familiar with the problems peculiar to higher education. The commissioner must be the chief executive officer of the board and shall perform such duties as must be prescribed by it.

Source: N.D. Const. Amd. Art. 54, § 7, subss. a, b, c, June 28, 1938, S.L. 1939, p. 502; R.C. 1943, § 15-1010.

Cross-References.

State board for Indian scholarships, commissioner as member, see N.D.C.C. § 15-63-01.

15-10-11. Authority and general powers of board.

The state board of higher education has full authority over the institutions under its control with the right to prescribe, limit, or modify the courses offered at the several institutions. In furtherance of its powers, the board has the power to delegate to its employees details of the administration of the institutions under its control. The board has authority to organize or reorganize, within constitutional and statutory limitations, the work of each institution under its control, and to do everything necessary and proper for the efficient and economical administration thereof.

Source: N.D. Const. Amd. Art. 54, § 6, subs. 6, June 28, 1938, S.L. 1939, p. 501; R.C. 1943, § 15-1011.

15-10-12. Board may accept gifts and bequests — Deposit of funds. (Effective after June 30, 2013)

The state board of higher education may, subject to the limitations of section 15-10-12.1, receive donations, gifts, grants, and bequests offered or tendered to or for the benefit of any institution of higher education under its control or subject to its administration, and all moneys coming into the hands of the board as donations, gifts, grants, and bequests must be used for the specific purpose for which they are donated or given. A special revenue fund, for each institution of higher education under the control of the board or subject to its administration, must be maintained within the state treasury and all institutional income from tuition collections must be placed in the special fund for the use of the institution for which the money was raised. All rent, interest, or income from land, money, or property, donated or granted by the United States and allocated to specific institutions of higher learning under the terms of the Enabling Act and the Constitution of North Dakota must be deposited in the special revenue fund of each institution and expended in accordance with section 1 of article IX of the Constitution of North Dakota. Moneys in the special revenue fund are subject to legislative appropriations. All other funds, unless restricted by the terms of a grant, donation, or bequest, received by the institutions from federal, state, and local grants and contracts, indirect cost recoveries, special student fees, room and board fees and other auxiliary enterprise fees, student activity fees, continuing education program fees, internal service fund revenues, and all other revenues must be deposited in the institution special revenue funds. The state treasurer shall immediately transfer the funds deposited in the special revenue funds to institution accounts in the Bank of North Dakota. Biennial estimates of revenue and expenditures of the other funds by source of funds must be presented at the same time biennial budget requests for appropriations from the special revenue fund and state general fund are prepared and submitted to the office of the budget. Payments from each institution’s general fund appropriation must be made in amounts as may be necessary for the operation and maintenance of each institution, except that at the close of the biennium the balance of funds not paid from the general fund appropriation must be deposited in the special revenue funds of the institutions. All such appropriations are subject to proration in the same manner as other appropriations are prorated if insufficient funds are available to meet expenditures from the general fund. Sinking funds for the payment of interest and principal of institutional revenue bonds must be deposited pursuant to section 15-55-06.

Source: S.L. 1897, ch. 89, §§ 13, 16; R.C. 1899, § 981; R.C. 1905, § 1178; C.L. 1913, § 1731; R.C. 1943, § 15-1012; S.L. 1965, ch. 120, § 2; 1969, ch. 155, § 1; 1971, ch. 164, § 1; 1983, ch. 82, § 19; 1983, ch. 555, § 1; 1995, ch. 3, § 14; 1999, ch. 155, § 1; 2001, ch. 28, § 24; 2003, ch. 3, § 34; 2005, ch. 139, § 1; 2007, ch. 152, § 1; 2009, ch. 157, § 1; 2011, ch. 117, § 1.

Cross-References.

Authority for devises, bequests, legacies, and gifts to state institutions, see N.D.C.C.§ 1-08-02.

Validating devises, bequests, legacies, and gifts to state institutions, see N.D.C.C.§ 1-08-03.

15-10-12.1. Acceptance of buildings and campus improvements — Legislative approval.

The state board of higher education may authorize campus improvements and building maintenance on land under the control of the board which are financed by donations, gifts, grants, and bequests if the cost of the improvement or building maintenance is not more than seven hundred thousand dollars. The consent of the legislative assembly is required for construction of any building or any addition to a building on land under the control of the board which is financed by donations, gifts, grants, and bequests. The consent of the legislative assembly is required for campus improvements or building maintenance financed by donations, gifts, grants, and bequests if the cost of the improvements or maintenance is more than seven hundred thousand dollars. During the time the legislative assembly is not in session, except for the six months preceding the convening of a regular session and the three months following the close of a regular session, and unless otherwise restricted by previous legislative action or other law, the budget section may authorize the use of land under the control of the board and construct buildings financed by donations, gifts, grants, and bequests and campus improvements and building maintenance financed by donations, gifts, grants, and bequests if the cost of the improvement or maintenance is more than seven hundred thousand dollars. Any project request submitted to the budget section for the construction of a building financed by donations, gifts, grants, and bequests must include the removal of a building or buildings with an equivalent or greater total number of square feet compared to the proposed building. The budget section approval must comply with section 54-35-02.9 and must include a specific dollar limit for each building, campus improvement project or maintenance project. The state board of higher education may authorize the sale of any real property or buildings which an institution of higher learning has received by gift or bequest. The board shall prescribe such conditions for the sale of the property as it determines necessary. The conditions must include requiring an appraisal and public auction or advertisement for bids, unless the gift instrument requires a different process. If the state board of higher education submits a request for campus improvements, building maintenance, or to construct buildings under this section to the budget section for approval, the legislative council shall notify each member of the legislative assembly of the date of the budget section meeting at which the request will be considered and provide a copy of the meeting agenda to each member of the legislative assembly. The chairman of the budget section shall allow any member of the legislative assembly an opportunity to present testimony to the budget section regarding any such request.

Source: S.L. 1971, ch. 164, § 2; 1983, ch. 82, § 20; 1997, ch. 156, § 1; 1999, ch. 156, § 1; 2001, ch. 160, § 1; 2009, ch. 482, § 98; 2013, ch. 357, § 1; 2017, ch. 123, § 1, effective August 1, 2017; 2019, ch. 3, § 7, effective July 1, 2019; 2019, ch. 438, § 2, effective August 1, 2019.

15-10-12.2. College and university investment income.

All income earned on college and university funds not deposited in the state treasury must be retained by those funds.

Source: S.L. 1991, ch. 578, § 2.

15-10-12.3. Capital construction projects — Local fund sources — Local matching funds — Report to budget section.

If any institution under the control of the state board of higher education undertakes a capital construction project, including any renovation or expansion, with the approval of the legislative assembly, all local funds to be used for the project must be derived from sources that have been presented to and approved by the legislative assembly or the budget section pursuant to section 15-10-12.1. The source of any local matching funds required for state-funded or bonded projects must be funds raised and designated for the project and may not include funding from the state general fund, state and federal grant and contract funds, tuition or fees, endowment or investment income, institutional sales and services income including indirect and administrative costs, or transfers or loans from other institutions’ funds or agency funds unless the institution has received prior approval from the legislative assembly or from the budget section pursuant to section 15-10-12.1. Each institution undertaking a capital construction project that was approved by the legislative assembly and for which local funds are to be used shall present a biennial report to the budget section of the legislative management detailing the source of all funds used in the capital construction project, including local funds. This section applies to projects approved after July 1, 2001.

Source: S.L. 2001, ch. 15, § 24; 2009, ch. 482, § 98.

15-10-13. Faculties of institutions under supervision of state board of higher education — Rules and regulations.

In each institution of higher education under the control and subject to the administration of the state board of higher education, the faculty shall consist of the president, instructors, teachers, and assistants. The faculty shall adopt, subject to such rules and regulations as the state board of higher education may establish, all necessary rules and regulations for the government of the school.

Source: S.L. 1890, ch. 158, § 4; 1890, ch. 160, § 10; 1891, ch. 89, § 17; R.C. 1895, §§ 917, 926, 942; S.L. 1897, ch. 89, §§ 17, 18; R.C. 1899, §§ 917, 926, 942, 982; S.L. 1903, ch. 50, § 1; R.C. 1905, §§ 1086, 1095, 1108, 1179; S.L. 1907, ch. 240, § 5; 1911, ch. 61, § 13; C.L. 1913, §§ 1590, 1599, 1612, 1732; R.C. 1943, § 15-1013.

15-10-13.1. Faculty — English language proficiency.

Any professor, instructor, teacher, assistant, or graduate assistant at a state institution of higher education must exhibit written and verbal proficiency in the English language. Any deficiency must be remedied by special training or coursework provided by the institution.

Source: S.L. 1987, ch. 198, § 1; 1993, ch. 163, § 1.

15-10-13.2. Public institutions of higher education — Faculty members — Oath or affirmation.

1. Before entering upon the discharge of duties, every faculty member employed by an institution of higher education under the control of the state board of higher education shall take the following oath or affirmation:
2. The faculty member shall execute the oath or affirmation in duplicate. One copy of the oath or affirmation must be filed with the state board of higher education. The faculty member shall retain the other copy.

I do solemnly swear (or affirm) that I will support the Constitution of the United States and the Constitution of the state of North Dakota, and that I will faithfully discharge the duties of my position, according to the best of my ability.

Source: S.L. 2001, ch. 161, § 2.

15-10-13.3. Public institutions of higher education — Alien faculty members — Oath or affirmation.

Before entering upon the discharge of duties, an individual who is not a citizen of the United States but who is a faculty member employed by an institution of higher education under the control of the state board of higher education shall take an oath or affirmation to support the institutions and policies of the United States during the period of the individual’s employment within the state.

Source: S.L. 2001, ch. 161, § 3.

15-10-14. Accounts and records of institutions — Examination and audit. [Repealed]

Repealed by S.L. 2001, ch. 162, § 7.

15-10-14.1. Higher education reports.

The state board of higher education shall submit the reports required pursuant to section 15-10-14.2 and such other reports as may be requested by the legislative assembly or governor.

Source: S.L. 1973, ch. 132, § 2; 1975, ch. 466, § 10; 1995, ch. 350, § 10; 1999, ch. 157, § 1.

15-10-14.2. Higher education system strategic plan — Reports.

1. The state board of higher education shall adopt a strategic planning process and develop a strategic plan to define and prioritize university system goals and objectives. The board shall provide an annual performance and accountability report regarding performance and progress toward the goals outlined in the university system’s strategic plan and accountability measures.
2. The state board of higher education shall report to the legislative assembly during each regular legislative session regarding the status of higher education in this state.
   1. Student performance on nationally recognized examinations in their major fields compared to the national averages.
   2. First-time licensure pass rates compared to other states.
   3. Alumni-reported and student-reported satisfaction with preparation in selected major, acquisition of specific skills, and technology knowledge and abilities.
   4. Employer-reported satisfaction with preparation of recently hired graduates.
   5. Biennial report on employee satisfaction relating to the university system and local institutions.
   6. Student graduation and retention rates.
3. Student access, including number and proportion of enrollments in courses offered by nontraditional methods.
4. Student affordability, including:
   1. Tuition and fees on a per student basis compared to the regional average.
   2. Tuition and fees as a percentage of median North Dakota household income.
   3. Cost per student in terms of general fund appropriations and total university system funding.
   4. Per capita general fund appropriations for higher education.
   5. State general fund appropriation levels for university system institutions compared to peer institutions general fund appropriation levels.
5. Financial operations, including:
   1. Cost per student and percentage distribution by major function.
   2. Ratio measuring the funding derived from operating and contributed income compared to total university system funding.
   3. Ratio measuring the amount of expendable net assets as compared to the amount of long-term debt.
   4. Research expenditures in proportion to the amount of revenue generated by research activity and funding received for research activity.
   5. Ratio measuring the amount of expendable fund balances divided by total expenditures and mandatory transfers.
   6. Ratio measuring net total revenues divided by total current revenues.”
   7. Student graduation and retention rates.

Source: S.L. 1989, ch. 193, § 1; 1991, ch. 600, § 1; 1995, ch. 166, § 1; 1995, ch. 167, § 1; 1999, ch. 158, § 1; 2001, ch. 159, § 2.

Note.

Section 17 of chapter 1003, S.L. 2007, effective July 1, 2007, provides:

“LEGISLATIVE INTENT — HIGHER EDUCATION ACCOUNTABILITY MEASURES. It is the intent of the legislative assembly that the state board of higher education’s performance and accountability report as required by section 15-10-14.2 include an executive summary and information regarding:

1. Education excellence, including:

2. Economic development, including:

a. Enrollment in entrepreneurship courses and the number of graduates of entrepreneurship programs.

b. Percentage of university system graduates obtaining employment appropriate to their education in the state.

c. Number of businesses and employees in the region receiving training.

Section 18 of chapter 3, S.L. 2003, effective July 1, 2003, provides:

“LEGISLATIVE INTENT — HIGHER EDUCATION ACCOUNTABILITY MEASURES. It is the intent of the legislative assembly that the board of higher education’s performance and accountability report as required by section 15-10-14.2 include an executive summary and information regarding:

1. Education excellence, including:

a. Student performance on nationally recognized exams in their major fields compared to the national averages.

b. First-time licensure pass rates compared to other states.

c. Alumni-reported and student-reported satisfaction with preparation in selected major, acquisition of specific skills, and technology knowledge and abilities.

d. Employer-reported satisfaction with preparation of recently hired graduates.

e. Biennial report on employee satisfaction relating to the university system and local institutions.

f. Ratio of faculty and staff to students.

2. Economic development, including:

a. Enrollment in entrepreneurship courses and the number of graduates of entrepreneurship programs.

b. Percentage of university system graduates obtaining employment appropriate to their education in the state.

c. Number of businesses and employees in the region receiving training.

3. Student access, including:

a. Proportion of residents of the state who are within a forty-five-minute drive of a location at which they can receive educational programs from a provider.

b. Number and proportion of enrollments in courses offered by nontraditional methods.

4. Student affordability, including:

a. Tuition and fees on a per student basis compared to the regional average.

b. Tuition and fees as a percentage of median North Dakota household income.

c. Cost per student in terms of general fund appropriations and total university system funding.

d. Administrative, instructional, and other cost per student.

e. Per capita general fund appropriations for higher education.

f. State general fund appropriation levels for university system institutions compared to peer institutions general fund appropriation levels.

5. Financial operations, including:

a. Percentage of total university system funding used for instruction, research, and public service.

b. Percentage of total university system funding used for institutional support, operations, and maintenance of physical plant.

c. Ratio measuring the funding derived from operating and contributed income compared to total university system funding.

d. Deferred maintenance ratio measuring the size of the university system’s outstanding maintenance as compared to its expendable net assets.

e. Viability ratio measuring the amount of expendable net assets as compared to the amount of long-term debt.

f. Research expenditures in proportion to the amount of revenue generated by research activity and funding received for research activity.

g. New construction and major renovation capital projects for which specific appropriations are made, including budget to actual comparison, use of third-party funding, and related debt.”

15-10-15. Budget requests — Duties of institution heads. [Repealed]

Repealed by S.L. 2001, ch. 162, § 7.

15-10-16. Control of funds and appropriations of educational institutions.

The state board of higher education has the control of the expenditure of the funds belonging and allocated to the institutions under its control and also of those appropriated by the legislative assembly for such institutions, but funds appropriated by the legislative assembly and specifically designated for any one or more of such institutions may not be used for any other institution.

Source: N.D. Const. Amd. Art. 54, § 6, subs. e, June 28, 1938, S.L. 1939, p. 502; R.C. 1943, § 15-1016.

Cross-References.

Expenditure of amount in excess of appropriation unlawful, see N.D.C.C.§ 54-27-12.

15-10-16.1. Loans from Bank of North Dakota.

Institutions under the board of higher education are authorized to borrow, and the Bank of North Dakota is authorized to loan to those institutions, amounts not to exceed ninety percent of the value of an institution’s certificate of deposit held by the Bank. The term of the loan may not exceed the term of the certificate of deposit offered as security for the loan. The loans are subject to such additional terms and conditions as may be established by the Bank.

Source: S.L. 1997, ch. 155, § 2.

15-10-17. Specific powers and duties of the state board of higher education.

The state board of higher education has all the powers and shall perform all the duties necessary to the control and management of the institutions described in this chapter. In addition to the powers and duties specified in section 6 of article VIII of the Constitution of North Dakota, the board may:

1. 1. Appoint and remove the president or other faculty head, and the professors, instructors, teachers, officers, and other employees of the several institutions under the board’s control, fix the salaries for those positions within the limits of legislative appropriations; and fix the terms of office and prescribe the duties of the positions.
   2. Appoint and remove the commissioner of higher education, fix the commissioner’s salary within the limits of legislative appropriations, and prescribe the commissioner’s duties.
   3. Appoint and remove all university system office personnel, fix their salaries within the limits of legislative appropriations, fix their terms of office, and prescribe their duties.
   4. The board may hold an executive session to consider the appointment or removal of the commissioner of higher education, or a president or other faculty head, professor, instructor, teacher, officer, or other employee of an institution under the board’s control unless the individual involved requests the meeting be open to other individuals or the public.
2. Authorize the employment of law enforcement officers having jurisdiction on property owned or leased by the state board of higher education to enforce laws and regulations at its institutions, or as otherwise provided in this subsection.
   1. A law enforcement officer employed by North Dakota state university has jurisdiction on all property owned or leased by the state board of higher education and property on and within the boundaries of the intersection of nineteenth avenue north and Dakota drive south to eighth avenue north, eighth avenue north east to tenth street north, tenth street north north to nineteenth avenue north, nineteenth avenue north west to Dakota drive.
   2. A law enforcement officer employed by the university of North Dakota has jurisdiction on all property owned or leased by the state board of higher education and property on and within the boundaries of the intersection of demers avenue and north fifty-fifth street, north fifty-fifth street north to university avenue, university avenue east to north forty-second street, north forty-second street north to gateway drive, gateway drive east to north columbia road, north columbia road south to tenth avenue north, tenth avenue north east to north twenty-fifth street, north twenty-fifth street south to sixth avenue north, sixth avenue north east to north twentieth street, north twentieth street south to fifth avenue north, fifth avenue north west to north twenty-third street, north twenty-third street south to university avenue, university avenue east to north twenty-first street, north twenty-first street south to dyke avenue, dyke avenue east to north washington street, north washington street south to demers avenue, and demers avenue west to north fifty-fifth street. Jurisdiction under this subdivision includes Grand Forks international airport.
   3. A law enforcement officer employed by the North Dakota state college of science has jurisdiction on all property owned or leased by the state board of higher education and property on and within the boundaries of the intersection of seventh avenue north and eleventh street north, eleventh street north to sixteenth avenue north, sixteenth avenue north west to fourth street north, and fourth street north south to seventh avenue north.
   4. A law enforcement officer employed by Bismarck state college has jurisdiction on all property owned or leased by the state board of higher education and property on and within the boundaries of the area delineated by the intersections of schafer street and canary avenue, canary avenue and edwards avenue, edwards avenue and schafer street, edwards avenue and ward road, ward road and college drive, and college drive and schafer street.
   5. A law enforcement officer employed by an institution under the control of the state board of higher education who is in “fresh pursuit” may continue beyond the jurisdictional boundaries of each institution to make an arrest, in compliance with a warrant or without a warrant under the conditions of section 29-06-15, if obtaining the aid of peace officers having jurisdiction beyond that limit would cause a delay permitting escape. As used in this subdivision, “fresh pursuit” has the same meaning as in section 29-06-07.
   6. The state board of higher education may enter a joint powers agreement with a political subdivision to enable law enforcement from the political subdivision and law enforcement from the institution to provide secondary response to each other outside the jurisdictional boundaries provided in this subsection.
   7. Notwithstanding any other provision of law or joint powers agreement, any misdemeanor or felony violation of law occurring in or on property owned or leased by the state board of higher education or within the extraterritorial jurisdiction must be filed in district court unless the primary law enforcement officer involved is not employed by the state board of higher education. An infraction or noncriminal offense occurring in or on property owned or leased by the state board of higher education or within the extraterritorial jurisdiction may be filed in municipal court.
3. Set tuition and fees.
4. 1. Establish a retirement program as an alternative to chapter 15-39.1 for university system employees subject to the following guidelines:
      1. Benefits under the program must be provided through annuity contracts purchased by the board but which become the property of the participants;
      2. The cost of the annuity contracts must be defrayed by contributions made pursuant to rules of the state board of higher education;
      3. Eligible employees appointed before July 1, 1973, shall participate in the alternate retirement program only by their individual election. When the electing eligible employee is a member of the teachers’ fund for retirement, the employee’s assessments and employer’s contributions together with interest credited at the current rate for one-year certificates then being paid by the Bank of North Dakota must be transferred to the employee’s account in the alternate program. The election must be made before July 1, 1980, and shall relinquish all rights the eligible employee or the employee’s beneficiary may have to benefits provided in chapters 15-39 and 15-39.2; and
      4. Employees of the university system who are members of the public employees retirement system under chapter 54-52 or 54-52.6 and who become entitled to participate in the alternate retirement program are entitled to a special annuity purchase in the alternate retirement program in accordance with this subdivision. An eligible employee who consents to have that employee’s contribution included is entitled to have that employee’s contribution and employer’s contribution, with interest, in the public employees retirement system fund, used by the retirement board of the public employees retirement system to purchase for that employee an annuity in the alternate retirement program in lieu of any other rights under the public employees retirement fund. However, before the employer’s contribution may be used for an annuity purchase, the employee’s combined years of service with the public employees retirement system and the alternate retirement program must equal or exceed the years of service necessary to be eligible for retirement benefits under the public employees retirement system. An employee who transferred from the public employees retirement system before March 30, 1987, and who received a refund of that employee’s contribution is entitled to have the employer’s contribution, with interest, used to purchase an annuity even if that employee did not purchase an annuity in the alternate employee program with the employee’s contribution. If an employee makes the election allowed under this subdivision, that employee relinquishes all rights the employee or any of the employee’s beneficiaries may have had to benefits provided under chapters 54-52 and 54-52.6.
   2. Provide for the administration of the alternate retirement program and establish rules for the program consistent with this subsection. This subsection does not derogate any existing retirement programs approved by the board.
5. Determine policy for purchasing by the university system in coordination with the office of management and budget as provided by law.
6. Establish by rule an early retirement program for faculty and officers of the board as defined by the board. The limitations on severance pay pursuant to section 54-14-04.3 and on requiring the employee to pay contributions to continue on the state uniform group insurance program upon retirement or upon termination of employment pursuant to section 54-52.1-03 do not apply to the early retirement program.
7. Adopt rules to protect the confidentiality of student records, medical records, and, consistent with section 44-04-18.4, trade secret, proprietary, commercial, and financial information.
8. Authorize and encourage university system entities to enter into partnerships, limited liability companies, joint ventures, or other contractual arrangements with private business and industry for the purpose of business or industrial development or fostering basic and applied research or technology transfer.
9. Adopt rules promoting research, encouraging development of intellectual property and other inventions and discoveries by university system employees, and protecting and marketing the inventions and discoveries. The rules must govern ownership or transfer of ownership rights and distribution of income that may be derived from an invention or discovery resulting from research or employment in the university system. The rules may provide for transfer of ownership rights or distribution of income to a private, nonprofit entity created for the support of the university system or one of its institutions.

Source: S.L. 1883, Sp., ch. 40, §§ 3, 5, 8, 12; 1883 Sp., ch. 42, § 2; 1887, ch. 168, § 1; 1890, ch. 158, §§ 4, 5; 1890, ch. 160, §§ 6, 9; 1891, ch. 89, §§ 14, 15; R.C. 1895, §§ 878, 881, 884, 890, 893, 914, 915, 926, 927, 939, 941; S.L. 1897, ch. 89, §§ 17, 18; R.C. 1899, §§ 878, 881, 884, 890, 893, 914, 915, 926, 927, 939, 941, 982; S.L. 1903, ch. 50, § 1; R.C. 1905, §§ 1043, 1046, 1049, 1055, 1058, 1083, 1084, 1095, 1096, 1105, 1107, 1179; S.L. 1907, ch. 240, § 3; 1911, ch. 61, §§ 10, 11; C.L. 1913, §§ 1542, 1545, 1548, 1554, 1557, 1587, 1588, 1599, 1600, 1609, 1611, 1732; S.L. 1915, ch. 237, § 7; 1925 Supp., § 364a7; R.C. 1943, § 15-1017; S.L. 1971, ch. 165, § 1; 1971, ch. 166, § 1; 1973, ch. 132, § 3; 1973, ch. 133, § 1; 1979, ch. 206, § 1; 1979, ch. 207, § 1; 1979, ch. 568, § 7; 1983, ch. 194, § 1; 1983, ch. 319, § 10; 1985, ch. 204, § 1; 1985, ch. 205, § 1; 1987, ch. 3, § 14; 1987, ch. 197, § 2; 1987, ch. 199, § 1; 1987, ch. 200, § 1; 1989, ch. 194, § 1; 1989, ch. 195, § 1; 1993, ch. 54, § 106; 1995, ch. 168, § 1; 1995, ch. 243, § 2; 1995, ch. 329, § 1; 1999, ch. 157, § 2; 1999, ch. 439, § 2; 2001, ch. 162, § 1; 2011, ch. 431, § 1; 2017, ch. 87, § 2, effective April 5, 2017; 2021, ch. 121, § 1, effective August 1, 2021; 2021, ch. 122, § 1, effective August 1, 2021; 2021, ch. 123, § 1, effective August 1, 2021.

Note.

Section 15-10-17 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 1 of Chapter 123, Session Laws 2021, Senate Bill 2168; Section 1 of Chapter 122, Session Laws 2021, Senate Bill 2167; and Section 1 of Chapter 121, Session Laws 2021, House Bill 1220.

Section 1 of chapter 134, S.L. 2003, provides:

“ TRANSFER OF LAND AUTHORIZED.

1. The state board of higher education for the benefit of lake region state college, formerly known as university of North Dakota — lake region and formerly known as lake region community college, may convey the land described in this subsection to the city of Devils Lake, North Dakota, for the price and on the terms as determined by the state board of higher education. The land to be conveyed is described as follows:

A parcel of land situated in the E1/2 of the W1/2 of Section 27, Township 154 North, Range 64 West of the 5th principal meridian, Ramsey County, North Dakota, being more particularly described as follows: All that portion of said section 27 lying west of the east line of the W1/2of said Section 27 and east of the easterly right of way line of the Burlington Northern Railroad. Said parcel is approximately 8 feet in width and 2,900 feet in length. Said parcel contains 26,303 square feet, more or less.

2. The provisions of sections 54-01-05.2 and 54-01-05.5 do not apply to the transfer authorized by this Act.”

Sections 1 and 2 of chapter 163, S.L. 2001, effective January 30, 2001, provide:

“ SECTION 1. Construction of student housing on the North Dakota state university campus — Appropriation. The state board of higher education may authorize North Dakota state university to provide for the construction of a student housing apartment building on the university campus. North Dakota state university may utilize any available local funds or funds received from other sources, including fire insurance recovery proceeds resulting from the F court building fire at that campus, for this project. There is appropriated for this project from local funds or other sources the sum of $2,310,000.”

“ SECTION 2. Renovation of Robinson hall on the North Dakota state university campus — Appropriation. The state board of higher education may authorize North Dakota state university to provide for the renovation of Robinson hall on the university campus. North Dakota state university may utilize any available federal, private, or local funds or funds received from other sources for this project. There is appropriated for this project from available federal, private, or local funds or other funds the sum of $560,000.”

Section 1 of chapter 49, S.L. 1999, effective April 2, 1999, provides:

“ CONSTRUCTION OF BUILDING ON UNIVERSITY OF NORTH DAKOTA CAMPUS — APPROPRIATION. The state board of higher education may authorize the university of North Dakota to provide for the construction of a building on the campus for use as a university bookstore and for retail businesses other than for the off-sale of alcoholic beverages. There is appropriated the sum of $4,500,000, or so much of the sum as may be necessary, from special funds, including donations, gifts, the sale of revenue bonds by or a loan from the university of North Dakota foundation, the sale of existing bookstore inventory, and bookstore reserves, to the university of North Dakota for the construction of a building for a university bookstore and for use for retail businesses other than for the off-sale of alcoholic beverages. The board and the university may lease the building to other entities for use as a bookstore and to retail businesses other than for the off-sale of alcoholic beverages. Any funds received for the lease are appropriated for use in operating and maintaining the building and other institutional needs. Neither the board nor the university may use funds other than the revenue derived from the lease of the building for the operation and maintenance of the building.”

Section 1 of chapter 159, S.L. 1999, effective March 29, 1999, provides:

“ Lease of land — Construction of arena — Authority. The state board of higher education may negotiate the terms of and enter into an agreement with the university of North Dakota foundation or other entity for the lease of approximately thirty-two acres [12.95 hectares] of land, which was originally gifted to the university of North Dakota, and may do all things necessary and proper to approve the terms of the lease, the plans and design, the title of the building and parking area, and to facilitate the construction with private sector dollars of a winter sports facility at the university of North Dakota, and to provide for its subsequent operation and management.”

Chapter 15-39, referred to in this section, was repealed by section 2 of chapter 184, S.L. 1971. However, section 2 of chapter 184, S.L. 1971, provided that reference could be made to chapter 15-39 to determine rights arising prior to the effective date of chapter 184 (July 1, 1971). As to the teachers’ fund for retirement, see now chapter 15-39.1.

Cross-References.

Contracts for medical education, see N.D.C.C. § 15-52-30.

Exclusion of students from social security coverage, see N.D.C.C. § 52-10-03.1.

Oath required of teachers employed by state supported institutions of higher education, see N.D.C.C. § 15.1-13-15.

Patenting inventions by faculty, officials and employees, see N.D.C.C. ch. 47-28.

15-10-17.1. Conduct of students and others and use of facilities of state colleges and universities. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-10-17.2. Claims against institutions of higher education — Continuing appropriation. [Repealed]

Repealed by S.L. 1995, ch. 329, § 14.

15-10-17.3. Political advertising — Student housing.

A state institution of higher education may not include in student housing leases provisions that prohibit lessees from placing political advertisements on the leased property. A political advertising sign placed on student housing property must be placed in compliance with any applicable city ordinance relating to signs.

Source: S.L. 1991, ch. 163, § 1.

15-10-17.4. Contract — Preparation and provision of meals — Policy.

1. An institution under the control of the state board of higher education may enter a contract to prepare and provide meals, snacks, or other food services for persons or programs not affiliated with the institution and may provide catering services for an event if the event is organized predominantly for persons affiliated with the institution, the event is held predominantly for persons enrolled in the institution, or the event is held under the auspices of the institution, provided the institution first establishes a policy regarding such services and specifically addresses issues related to competition with private sector entities.
2. The limitations provided under subsection 1 do not apply to an institution under the control of the state board of higher education if no private sector entity located in the same city as the institution is capable and willing to meet the facility or personnel requirements necessary to:
   1. Prepare and provide the meals, snacks, or other food services for a specific event; or
   2. Provide the catering services for a specific event.
3. An institution under the control of the state board of higher education may not advertise to the general public its willingness to provide the services permitted under this section.
4. Nothing in this section may be construed to limit the activities of a private sector entity that provides meals, snacks, or other food services to an institution of higher education under the provisions of a contract.

Source: S.L. 2003, ch. 36, § 13; 2007, ch. 153, § 1.

15-10-17.5. Quorums of state board of higher education committees.

1. The state board of higher education may create committees comprised of voting members of the board. The scope of authority for a committee created under this section must be defined in a policy adopted by the board, and the committee’s actions may not exceed that scope.
2. If a committee comprised of voting members of the board constitutes a quorum of the board, a properly noticed meeting of the committee does not constitute a meeting of the board. Actions of the committee do not constitute actions of the board.
3. If a committee comprised of voting members of the board constitutes, in whole or in part, a quorum of another committee of the board, a properly noticed meeting of one committee’s meeting does not constitute a meeting of the other committee, unless the meeting of the other committee also is properly noticed. Actions taken at the meeting are limited to the scope of authority of the committee for which the meeting was noticed properly.

Source: S.L. 2021, ch. 121, § 2, effective August 1, 2021.

15-10-18. Tuition of nonresidents at schools under control of state board of higher education.

At all state institutions of higher education, tuition must be charged and collected from each nonresident student in such amount as must be determined by the state board of higher education.

Source: S.L. 1939, ch. 214, §§ 1, 3, 4; R.C. 1943, § 15-1018; S.L. 1965, ch. 122, § 1; 1973, ch. 134, § 1; 1983, ch. 82, § 21; 1999, ch. 161, § 1.

Cross-References.

Reciprocal higher education agreements affecting tuition, see N.D.C.C.§§ 15-10-28 , 15-10-28.2 , 15-52-30 and N.D.C.C. ch. 15-10.1.

Collateral References.

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.

Increase in tuition as actionable in suit by student against college or university, 99 A.L.R.3d 885.

Absence from or inability to attend school or college as affecting liability for tuition or board, 20 A.L.R.4th 303.

15-10-18.1. Waiver of tuition at state institutions for North Dakota youth correctional center graduates. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-10-18.2. Definitions.

1. “Dependent” for purposes of section 15-10-18.3 means:
   1. A child, stepchild, spouse, widow, or widower of a resident veteran, as “veteran” is defined in section 37-01-40, who was killed in action or died from wounds or other service-connected causes, has a one hundred percent service-connected disability as determined by the department of veterans’ affairs, has an extra-schedular rating to include individual unemployability that brings the veteran’s total disability rating to one hundred percent as determined by the department of veterans’ affairs, died from service-connected disabilities, was a prisoner of war, or was declared missing in action;
   2. A child, stepchild, spouse, widow, or widower of a veteran, as defined in section 37-01-40, who was killed in action or died from wounds or other service-connected causes, has a one hundred percent service-connected disability as determined by the department of veterans’ affairs, has an extra-schedular rating to include individual unemployability that brings the veteran’s total disability rating to one hundred percent as determined by the department of veterans’ affairs, died from service-connected disabilities, was a prisoner of war, or was declared missing in action, provided the spouse, widow, or widower, or the child’s or stepchild’s other parent, has been a resident of this state and was a resident of this state at the time of death or determination of total disability of the veteran; or
   3. A child, stepchild, spouse, widow, or widower of a veteran, as defined in section 37-01-40, who was killed in action or died from wounds or other service-connected causes, has a one hundred percent service-connected disability as determined by the department of veterans’ affairs, has an extra-schedular rating to include individual unemployability that brings the veteran’s total disability rating to one hundred percent as determined by the department of veterans’ affairs, died from service-connected disabilities, was a prisoner of war, or was declared missing in action, provided the spouse, widow, or widower, or the child’s or stepchild’s other parent, establishes residency in this state and maintains that residency for a period of five years immediately preceding the spouse’s, widow’s, widower’s, child’s, or stepchild’s enrollment at an institution under the control of the state board of higher education.
2. “Resident veteran” means a veteran who:
   1. Was born in and lived in this state until entrance into the armed forces of the United States;
   2. Was born in, but was temporarily living outside this state, not having abandoned residence therein prior to entrance into the armed forces of the United States;
   3. Was born elsewhere but had resided within this state for at least six months prior to entrance into military service and had prior to or during such six-month period:
      1. Registered for voting, or voted in this state;
      2. Being an unemancipated minor during such period of residence, had lived with a parent or person standing in loco parentis who had acquired a residence as set forth in this section; or
      3. If not registered for voting in this state, not registered for voting in another state; or
   4. Has been a resident of this state for the five years prior to the request for tuition waiver.
3. “Stepchild’s other parent” means the spouse, widow, or widower of a veteran.

Source: S.L. 1973, ch. 135, § 1; 1979, ch. 215, § 1; 1985, ch. 397, § 1; 1987, ch. 201, § 1; 1991, ch. 161, § 1; 2005, ch. 140, § 1; 2009, ch. 158, § 1; 2011, ch. 447, § 1; 2021, ch. 124, § 1, effective August 1, 2021.

15-10-18.3. Free tuition in North Dakota institutions of higher education.

Any dependent, as defined in section 15-10-18.2 upon being duly accepted for enrollment into any undergraduate degree or certificate program of a North Dakota state institution of higher education, must be allowed to obtain a bachelor’s degree or certificate of completion, for so long as the dependent is eligible, free of any tuition and fee charges if the bachelor’s degree or certificate of completion is earned within a forty-five-month or ten-semester period or its equivalent and if tuition and fee charges do not include costs for aviation flight charges or expenses. Once an individual qualifies as a dependent under sections 15-10-18.2 and 15-10-18.3, the dependent may not be disqualified from the benefits of this section:

1. Due to the return of the prisoner of war;
2. Due to the return of the individual missing in action; or
3. Because the veteran through whom the benefit was obtained had a one hundred percent service-connected disability at the time of death.

Source: S.L. 1973, ch. 135, § 2; 1979, ch. 215, § 2; 1983, ch. 195, § 1; 1991, ch. 3, § 13; 1993, ch. 165, § 1; 2003, ch. 138, § 14; 2005, ch. 141, § 1; 2013, ch. 132, § 1.

15-10-18.4. Definitions.

For purposes of section 15-10-18.5:

1. “Firefighter” means a person who is a member of a paid or volunteer fire department that is a part of, or administered by, this state, any political subdivision of this state, or a rural fire protection district.
2. “Peace officer” means any person who is employed by a state law enforcement agency or a political subdivision of the state who is charged with the prevention and detection of crime and the enforcement of the criminal laws of the state, and who has full power of arrest.
3. “Stepchild” means a child of the decedent’s spouse or predeceased spouse, and not of the decedent.
4. “Survivor” means, at the time of the firefighter’s or peace officer’s death, the firefighter’s or peace officer’s biological or adopted child under the age of twenty-one, stepchild under the age of twenty-one, and spouse.

Source: S.L. 1987, ch. 202, § 1; 2017, ch. 124, § 1, effective August 1, 2017.

15-10-18.5. Free tuition in North Dakota institutions of higher education for survivor of firefighter, emergency medical services personnel, or peace officer.

If a firefighter, an emergency medical services personnel as defined under section 23-27-04.3, or a peace officer dies as a direct result of injuries received while engaged in the performance of official duties under circumstances dangerous to human life, the survivor, upon being duly accepted for enrollment into any undergraduate degree or certificate program of a North Dakota state institution of higher education, must be allowed to obtain a bachelor’s degree or certificate of completion, for so long as the dependent is eligible, free of any tuition and fee charges; provided, however, that the bachelor’s degree or certificate of completion is earned within a forty-five-month or ten-semester period or its equivalent; and further provided that tuition and fee charges may not include costs for aviation flight charges or expenses.

Source: S.L. 1987, ch. 202, § 2; 1991, ch. 3, § 14; 1993, ch. 165, § 2; 2003, ch. 138, § 15; 2005, ch. 141, § 2.

15-10-19. Nonresident student for tuition purposes defined — Exceptions. [Repealed]

Repealed by S.L. 1993, ch. 166, § 2.

Note.

For present provisions, see N.D.C.C. § 15-10-19.1.

15-10-19.1. Nonresident and resident student for tuition purposes defined.

1. A “nonresident student” for tuition purposes means any student other than a resident student.
2. A “resident student” for tuition purposes means:
   1. An individual whose guardian, custodial parent, or parents are legal residents of this state and have resided in this state for twelve months, or a dependent child whose custodial parent moved into the state with the intent to establish legal residency for a period of years within the last twelve months immediately prior to the beginning of the academic term;
   2. An individual of age eighteen or over who is a legal resident of this state and has resided in this state after reaching age eighteen for twelve months immediately prior to the beginning of the academic term;
   3. An individual who graduated from a North Dakota high school;
   4. 1. A full-time active duty member of the armed forces;
      2. A member of the national guard;
      3. A member of the armed forces reserve component; or
      4. A veteran, as defined in section 37-01-40;
   5. A benefited employee of the North Dakota university system;
   6. The spouse of:
      1. A full-time active duty member of the armed forces;
      2. A member of the national guard;
      3. A member of the armed forces reserve component;
      4. A veteran, as defined in section 37-01-40, including a veteran eligible to transfer entitlement under the Post 9-11 Veterans Educational Assistance Act of 2008 [38 U.S.C. 3301];
      5. A benefited employee of the North Dakota university system; or
      6. Any other individual who is a resident for tuition purposes;
   7. A dependent of:
      1. A full-time active duty member of the armed forces;
      2. A member of the national guard;
      3. A member of the armed forces reserve component;
      4. A veteran, as defined in section 37-01-40, including a veteran eligible to transfer entitlement under the Post 9-11 Veterans Educational Assistance Act of 2008 [38 U.S.C. 3301]; or
      5. A benefited employee of the North Dakota university system;
   8. An individual who was a legal resident of this state for at least three consecutive years within six years of the beginning of the academic term;
   9. A child, spouse, widow, or widower of a veteran as defined in section 37-01-40 who was killed in action or died from wounds or other service-connected causes, was totally disabled as a result of service-connected causes, died from service-connected disabilities, was a prisoner of war, or was declared missing in action; or
   10. A covered individual as defined by section 702 of Public Law No. 113-146 [128 Stat. 1797; 38 U.S.C. 3679].
3. A temporary absence from the state for vacation or other special or temporary purposes may not be considered an abandonment of residency in this state, provided a residence is maintained in this state during the temporary absence. However, a student who leaves the state and resides in another state for a period of months is not considered a resident of this state during those months if the student does not maintain a place of residence in this state during the student’s absence.

Source: S.L. 1993, ch. 166, § 1; 1995, ch. 169, § 1; 2001, ch. 164, § 1; 2005, ch. 142, § 1; 2009, ch. 158, § 2; 2013, ch. 134, § 1; 2013, ch. 133, § 1; 2015, ch. 129, § 1; 2021, ch. 125, § 1, effective August 1, 2021.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 129, S.L. 2015 became effective March 12, 2015, pursuant to an emergency clause in section 2 of chapter 129, S.L. 2015.

15-10-20. Tuition at model schools in higher educational institutions — Attendance authorized by district school board. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-10-21. Military instruction required. [Repealed]

Repealed by S.L. 1991, ch. 162, § 1.

15-10-22. Course in cooperatives required. [Repealed]

Repealed by S.L. 1991, ch. 162, § 1.

15-10-23. Lease of building sites on educational institution grounds. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-10-24. Monthly statements of institutional expenditures and payroll to board of higher education. [Repealed]

Repealed by S.L. 1973, ch. 132, § 6.

15-10-25. Abstracts of expenditures and payroll to the office of management and budget. [Repealed]

Repealed by S.L. 2001, ch. 162, § 7.

15-10-25.1. Out-of-state travel by persons employed by the institutions under the control of the board of higher education. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-10-26. Appropriations. [Repealed]

Repealed by S.L. 1965, ch. 120, § 6.

15-10-27. Appropriations for specific purposes — Payment. [Repealed]

Repealed by S.L. 1965, ch. 120, § 6.

15-10-28. Agreements with other states’ institutions of higher learning and regional education compacts.

The state board of higher education may enter into agreements with institutions of higher learning in other states and regional education compacts. The board, subject to the limits of legislative appropriations, may make such expenditures as are necessary for the purpose of utilizing the educational facilities of such institutions for teaching North Dakota students. In addition, the board may enter into agreements with institutions of higher learning in other states and regional education compacts for the acceptance of students from other states in North Dakota institutions of higher learning.

Source: S.L. 1959, ch. 141, § 1; 1973, ch. 137, § 1; 1977, ch. 148, § 1; 1983, ch. 197, § 1.

Cross-References.

Contracts for medical education, see N.D.C.C. § 15-52-30.

Supplemental authority for reciprocal higher education agreements, see N.D.C.C. ch. 15-10.1.

15-10-28.1. Board of higher education to require note from veterinary medicine, optometry, or dental student — Repayment. [Repealed]

Repealed by S.L. 1983, ch. 198, § 1.

15-10-28.2. Regional veterinary medical education program — Authority to enter agreements — Limitations.

1. The state board of higher education may enter into agreements with the university of Nebraska board of regents and with the appropriate governing boards or institutions of higher education in other states to provide a program of regional veterinary medical education and services.
2. Any agreements entered pursuant to subsection 1 may provide for the following:
   1. Service by the university of Nebraska as the degree-granting institution.
   2. Assumption by the university of Nebraska of final responsibility for the overall governance and administration of the educational aspects of the program.
   3. Cooperation by the North Dakota state university of agriculture and applied science in providing input in the establishment of policies relating to curriculum, academic standards, student admissions, and other matters.
3. Within the limits of legislative appropriations, any agreements entered pursuant to subsection 1 may provide for the payment by the state board of higher education of North Dakota’s share of the cost of facility construction in Nebraska based upon the proportion of North Dakota students in the program, provided any such payment is based upon a per student annual facilities use charge.
4. Within the limits of legislative appropriations, any agreements entered pursuant to subsection 1 may provide for the payment by the state board of higher education of North Dakota’s share of the operating costs during the planning, startup, and full operational phases, based upon the proportion of North Dakota students in the program.

Source: S.L. 1979, ch. 216, § 1.

15-10-29. Higher education facilities commission — Membership — Appointment — Term — Vacancies. [Repealed]

Repealed by S.L. 1977, ch. 158, § 4.

15-10-30. Powers and duties. [Repealed]

Repealed by S.L. 1977, ch. 158, § 4.

15-10-31. Federal money received by commission — Where deposited — How appropriated — How expended. [Repealed]

Repealed by S.L. 1977, ch. 158, § 4.

15-10-32. Compensation of commission members — Travel expenses. [Repealed]

Repealed by S.L. 1977, ch. 158, § 4.

15-10-33. Granting easements to state-owned land by the state board of higher education. [Repealed]

Repealed by S.L. 1973, ch. 406, § 2.

15-10-34. Authorization of contingency funds at institutions under the board of higher education. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-10-35. Investment of endowment funds by the institutions under the control of the board of higher education. [Repealed]

Repealed by S.L. 1975, ch. 182, § 10.

Note.

For present provisions, see N.D.C.C. ch. 15-67.

15-10-36. Student registration with selective service system.

No person who is required by the Military Selective Service Act [Pub. L. 759; 62 Stat. 604; 50 U.S.C. App. 451 et seq.] to register with the selective service system may receive student financial aid funds from the state until that person has registered. The state board of higher education may adopt rules to achieve the purpose of this section.

Source: S.L. 1987, ch. 204, § 1.

15-10-37. Technology occupations student loan program. [Repealed]

Source: S.L. 2001, ch. 165, § 1; 2003, ch. 131, § 1; 2005, ch. 143, § 1; 2009, ch. 31, § 35; 2017, ch. 125, § 1, effective August 1, 2017; repealed by 2019, ch. 3, § 19, effective July 1, 2019.

15-10-38. Loans — Teacher shortages — Loan forgiveness. [Repealed]

Source: S.L. 2001, ch. 166, § 1; 2005, ch. 143, § 2; 2017, ch. 14, § 21, effective July 1, 2017; 2017, ch. 125, § 2, effective August 1, 2017; repealed by 2019, ch. 146, § 4, effective July 1, 2019.

15-10-38.1. Skilled workforce student loan repayment program — Skilled workforce student loan repayment program fund — Continuing appropriation — Report. [Repealed effective July 1, 2023]

1. There is created in the state treasury the skilled workforce student loan repayment program fund. The fund consists of moneys transferred into the fund by the legislative assembly, matching funds received, and loan repayments. Moneys in the fund are appropriated to the state board of higher education on a continuing basis for the purpose of distributing student loan repayment grants directly to the Bank of North Dakota or other participating lender to repay outstanding student loan principal balances for eligible applicants.
2. The state board of higher education shall adopt policies and procedures to develop, implement, promote, and administer a skilled workforce student loan repayment program in cooperation with the Bank of North Dakota and the North Dakota workforce development council with the intent of attracting and retaining individuals for professional or technical skills in high demand in this state.
3. The North Dakota workforce development council in cooperation with job service North Dakota shall use available labor market information to determine annually the eligible high-demand professional and technical skills and emerging occupations in this state.
4. Graduates of degree or certificate programs from institutions or entities in any state may apply for the skilled workforce student loan repayment program. To be eligible to receive student loan repayment grants under the program, the applicant:
   1. Must have successfully completed an educational program from an institution of higher education;
   2. Must have a student loan with the Bank of North Dakota or other participating lender;
   3. Following completion of an educational program, must reside and work in this state in an eligible high-demand or emerging occupation; and
   4. Must have met and shall continue to meet any requirements established in applicable state board of higher education procedures.
5. The state board of higher education shall adopt procedures to ensure compliance with residency and occupation requirements after completion of the educational program.
6. The state board of higher education shall distribute student loan repayment grants from the skilled workforce student loan repayment program fund directly to the Bank of North Dakota or other participating lender to repay outstanding student loan principal balances for eligible applicants. The maximum annual student loan repayment grant amount for which an applicant may qualify is five thousand six hundred sixty-seven dollars, or one-third of the applicant’s outstanding student loan principal balance upon initial application for the program, whichever is less. The maximum total student loan repayment grant amount for which any applicant may qualify is seventeen thousand dollars.
7. If an individual is receiving loan forgiveness under any other state program, the individual may not receive a student loan repayment grant under this section during the same application year. An individual who received a skilled workforce scholarship under section 15-10-38.2 is not eligible for loan forgiveness under this section.
8. An individual may receive a combined total of no more than seventeen thousand dollars under this section and the skilled workforce scholarship program under section 15-10-38.2.
9. The skilled workforce student loan repayment program must be a joint public and private effort. The state board of higher education shall provide one dollar of funding for each one dollar of funding raised from the private sector. Any matching funds received must be deposited in the skilled workforce student loan repayment program fund.
10. The state board of higher education shall provide a biennial program report to the legislative management by September first of each even-numbered year. The report must include information regarding:
    1. The eligible high-demand professional and technical skills and emerging occupations;
    2. The number of applicants, eligible applicants, and applicants receiving awards;
    3. The amount of private funding raised; and
    4. The average and total amounts awarded under the program.

Source: S.L. 2019, ch. 136, § 1, effective April 26, 2019; 2021, ch. 126, § 1, effective July 1, 2021; repealed by 2021, ch. 126, § 5, effective July 1, 2023.

Note.

Section 15-10-38.1 was amended 1 time and repealed by the 2021 Legislative Assembly. Pursuant to Section 1-2-09.1, the section is treated as repealed. Section 1 of Chapter 126, Session Laws 2021, Senate Bill 2272; and Section 5 of Chapter 126, Session Laws 2021, Senate Bill 2272.

This section is set out above to reflect a correction from the state since the 2019 cumulative supplement. In subsection 8, “section 2 of this Act” was changed to “ section 15-10-38.2”.

15-10-38.2. Skilled workforce scholarship program — Skilled workforce scholarship fund — Continuing appropriation — Report. [Repealed effective July 1, 2023]

1. There is created in the state treasury the skilled workforce scholarship fund. The fund consists of moneys transferred into the fund by the legislative assembly, matching funds received, and scholarship repayments. Moneys in the fund are appropriated to the state board of higher education on a continuing basis for the purpose of providing grants to institutions of higher education related to skilled workforce scholarships. Institutions of higher education include institutions under the control of the state board of higher education, North Dakota nonpublic accredited institutions of higher education, tribally controlled community colleges, state-approved educator training programs, and North Dakota institutions approved to operate by the North Dakota board of career and technical education.
2. The state board of higher education shall adopt policies and procedures to develop, implement, promote, and administer a skilled workforce scholarship program in cooperation with the Bank of North Dakota and the North Dakota workforce development council with the intent of attracting and retaining individuals for professional or technical skills in high demand in this state.
3. The North Dakota workforce development council in cooperation with job service North Dakota shall use available labor market information to determine annually the eligible high-demand professional and technical skills and emerging occupations in this state.
4. The state board of higher education and the workforce development council shall compile a list of qualifying educational programs annually. A qualifying educational program is a program resulting in attainment of an associate’s degree or lower credential upon successful completion or a program that may be completed within four semesters or six quarters. A qualifying educational program also must pertain to the professional and technical skills and emerging occupations in high demand in this state, as determined under subsection 3. Qualifying educational programs may include degree or certificate programs.
5. Individuals enrolled in a qualifying educational program in this state may apply for a scholarship under this section. Scholarships are limited to the amount charged each quarter, semester, or term by the educational institution for the tuition, fees, books, and supplies required for the qualifying educational program. The scholarships are intended to supplement any other scholarship or financial aid grant received by a student to assist the student with the costs of the qualifying educational program. An individual may not receive a combined total exceeding seventeen thousand dollars under this section and the skilled workforce loan repayment program under section 15-10-38.1.
6. To be eligible for a scholarship and payment under this section, a student must be enrolled full time in an eligible program and have at least a 2.5 cumulative grade point average, based on a 4.0 grading system, or maintain academic progress in the program according to program requirements. A student may not receive scholarships under this section for more than the equivalent of four semesters of full-time enrollment or six quarters of full-time enrollment.
7. Upon completion of a qualifying educational program, a student who received a scholarship under this section must reside and work in this state in an eligible high-demand or emerging occupation for a minimum of three years.
8. An individual shall repay the scholarship pursuant to the terms in the individual’s scholarship award agreement if the individual fails to maintain either a 2.5 cumulative grade point average or academic progress according to program requirements while enrolled, withdraws voluntarily or involuntarily before the completion of the program for which a scholarship has been received, or fails to reside and work in this state in an eligible high-demand or emerging occupation for at least three years following degree or certificate completion.
9. The state board of higher education, in conjunction with the Bank of North Dakota, may allow an individual who received payment under this section to delay or cancel repayment under this section due to financial difficulty, military service, death, or total disability.
10. Each quarter, semester, or term, the state board of higher education shall distribute grants to institutions of higher education to provide the amounts necessary for the scholarships awarded to the students enrolled in each institution.
11. The skilled workforce scholarship program must be a joint public and private effort. The state board of higher education may distribute grants only to the extent that the private sector has provided one dollar of matching funds for each dollar of funding provided by the state. Any matching funds received must be deposited in the skilled workforce scholarship fund.
12. The state board of higher education shall provide a biennial program report to the legislative management by September first of each even-numbered year. The report must include information regarding:
    1. The eligible high-demand professional and technical skills and emerging occupations;
    2. The qualifying educational programs;
    3. The number of applicants, eligible applicants, and applicants receiving awards;
    4. The amount of private funding raised; and
    5. The average and total amounts awarded under the program.

Source: S.L. 2019, ch. 136, § 2, effective April 26, 2019; 2021, ch. 126, § 2, effective July 1, 2021.

Note.

Section 15-10-38.2 was amended 1 time and repealed by the 2021 Legislative Assembly. Pursuant to Section 1-2-09.1, the section is treated as repealed. Section 2 of Chapter 126, Session Laws 2021, Senate Bill 2272; and Section 5 of Chapter 126, Session Laws 2021, Senate Bill 2272.

15-10-38.2. Skilled workforce scholarship program — Skilled workforce scholarship fund — Continuing appropriation — Report. [Repealed effective July 1, 2023]

Source: S.L. 2019, ch. 136, § 2, effective April 26, 2019; 2021, ch. 126, § 2, effective July 1, 2021; repealed by 2021, ch. 126, § 5, effective July 1, 2023.

15-10-38.3. Scholarship and loan forgiveness administrative costs — Continuing appropriation. (Effective through July 31, 2023)

The state board of higher education shall retain up to one and one-half percent of any funds appropriated to the board under subsection 1 of section 15-10-38.1 and subsection 1 of section 15-10-38.2. The retained funds must be used for promotion and administration of the programs under those sections.

15-10-38.3. Scholarship and loan forgiveness administrative costs — Continuing appropriation. (Effective August 1, 2023)

The state board of higher education shall retain up to one-half of one percent of any funds appropriated to the board under subsection 1 of section 15-10-38.1 and subsection 1 of section 15-10-38.2. The retained funds must be used for administration of the programs under those sections.

Source: S.L. 2021, ch. 126, § 3, effective July 1, 2021; 2021, ch. 126, § 4, effective August 1, 2023.

Note.

Section 15-10-38.3 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 126, Session Laws 2021, Senate Bill 2272; and Section 4 of Chapter 126, Session Laws 2021, Senate Bill 2272.

15-10-38.4. Dual-credit courses — Tuition scholarship program — Administered by the board.

1. The state board of higher education shall administer a dual-credit tuition scholarship program to offer a tuition scholarship to students. The board shall adopt procedures to administer the program.
2. An eligible student may apply to the board to receive a scholarship toward the cost of tuition and fees at the in-state public, private, or tribal institution of higher education at which the student is enrolled. To be eligible to receive a scholarship, an individual must:
   1. Be enrolled and have completed at least one semester, quarter, or term at a public, private, or tribal institution of higher education in the state;
   2. Have:
      1. Graduated from a high school in the state;
      2. Graduated from a high school in a bordering state under chapter 15.1-29;
      3. Graduated from a nonpublic high school in a bordering state while residing with a custodial parent in this state; or
      4. Completed a program of home education under chapter 15.1-23; and
   3. Have completed at least one dual-credit course provided by an institution under the control of the state board of higher education while enrolled in high school or a program of home education in the state.
3. The state board of higher education shall provide an eligible student with a tuition scholarship equal to fifty percent of the cost of the dual-credit courses provided by an institution under the control of the state board of higher education, and completed by the student while in high school or a program of home education, in an amount up to seven hundred fifty dollars. A scholarship received by a student during any semester, quarter, or term of enrollment under this section may not exceed the cost of tuition and fees for the semester, quarter, or term. A student is not eligible to receive more than seven hundred fifty dollars under this section.

Source: S.L. 2021, ch. 127, § 1, effective July 1, 2021.

15-10-39. Fees — Room and meals — Authorization.

An institution of higher education may charge a fee for room and meals when provided by the institution in connection with summer programs at the institution for which high school credit is awarded. If a student or the student’s parent or guardian is unable to pay the fee for room and meals, the institution shall waive the fee.

Source: S.L. 2003, ch. 132, § 1.

15-10-40. Long-term lease and leaseback transaction revenue.

The board shall use revenue earned from long-term lease and leaseback transactions under chapter 54-01 for the repair and upkeep of campus buildings commonly referred to as deferred maintenance projects.

Source: S.L. 2003, ch. 342, § 2.

15-10-41. Centers of excellence. [Repealed]

Repealed by S.L. 2005, ch. 151, § 16.

15-10-42. Faculty — English pronunciation — Policy — Report.

The state board of higher education shall create a policy for all institutions under its control, relating to the assessment of faculty and teaching assistant communication skills, including the ability to speak English clearly and with good pronunciation, the notification to students of opportunities to file complaints, the process for responding to student complaints, and the resolution of reported communication problems.

Source: S.L. 2005, ch. 144, § 1; 2009, ch. 482, § 5.

15-10-43. Veterinary medical education program — Kansas state university — Contract.

1. In addition to any contracts under section 15-10-28.2, the state board of higher education may contract with Kansas state university to provide an opportunity for up to five eligible students to enroll in the veterinary medical education program at Kansas state university.
2. Eligible students must be residents of this state and must have been selected for enrollment by an admissions committee consisting of one faculty member appointed by the vice president for agricultural affairs at North Dakota state university, one veterinarian practicing in this state, one member of the legislative assembly, and one livestock producer, all of whom must be appointed by the legislative management, and the chairman of the admissions committee at the Kansas state university school of veterinary medicine. The legislative management and the chairman of the admissions committee at the Kansas state university school of veterinary medicine may select an alternative for each of the designated positions to serve as necessary.
3. The admissions committee shall determine the criteria to be used in the selection of eligible students, with eligible students interested in large animal veterinary medicine receiving a priority.

Source: S.L. 2005, ch. 145, § 1; 2007, ch. 3, §§ 26, 27; 2009, ch. 482, § 6; 2019, ch. 137, § 1, effective August 1, 2019.

Note.

Section 29 of chapter 3, Session Laws 2007 provides: “ RETROACTIVE APPLICATION . Section 27 of this Act [which amends this section] applies retroactively to students participating in the Kansas state university veterinary medicine program.”

15-10-43.1. Professional student exchange programs — Bank of North Dakota — Agreements — Repayment. [Repealed]

Source: S.L. 2019, ch. 3, § 12, effective July 1, 2019; repealed by 2021, ch. 128, § 2, effective May 10, 2021.

15-10-43.2. Professional student exchange programs — Repayment waiver.

The state board of higher education shall waive repayment requirements for individuals participating in a professional student exchange program in veterinary medicine, dentistry, or optometry who entered an agreement with the state board of higher education pursuant to repealed section 15-10-43.1 during the biennium beginning July 1, 2019, and ending June 30, 2021.

Source: S.L. 2021, ch. 128, § 1, effective May 10, 2021.

15-10-44. Higher education information technology — Board duties — Reports.

1. The state board of higher education shall manage and regulate information technology planning and services for institutions under its control, including:
   1. Development of information technology policies, standards, and guidelines in coordination with the information technology department.
   2. Implementation of a process for project management oversight and reporting.
   3. Integration of higher education information technology planning and reporting with the board’s strategic planning process and annual performance and accountability report required by section 15-10-14.2.
   4. Participation in internet2 or other advanced higher education or research-related networking projects as provided in section 54-59-08.
   5. Development of an annual report concerning higher education information technology planning and services.
   6. Requiring utilization by each institution under the control and supervision of the board of systemwide electronic mail services provided by the board for all public business electronic correspondence.
   7. Development and implementation of an electronic mail retention policy for the board and institutions under the supervision and control of the board which requires retention of nonstudent employee electronic mail messages for at least two years after the creation or receipt of the message.
2. The state board of higher education shall collaborate with the information technology department to coordinate higher education information technology planning with statewide information technology planning.
3. The state board of higher education shall provide advice to the information technology department regarding the development of policies, standards, and guidelines relating to access to or use of wide area network services as provided by section 54-59-09.
4. The state board of higher education shall present information regarding higher education information technology planning, services, and major projects to the information technology committee on request of the committee.

Source: S.L. 2007, ch. 154, § 1; 2015, ch. 130, § 1, effective July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 130, S.L. 2015 became effective July 1, 2015.

15-10-44.1. Required use of electronic mail, file server administration, database administration, application server, and hosting services.

Each institution and entity under the control of the state board of higher education shall obtain electronic mail, file server administration, database administration, research computing, storage, application server, and hosting services through a delivery system established by the board. The board 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.

History. S.L. 2015, ch. 3, § 8, effective July 1, 2015.

Effective Date.

This chapter became effective July 1, 2015.

15-10-44.2. Audits of computer systems — Penalty.

1. Any auditor hired to conduct audits of the state board of higher education and the entities under the control and supervision of the board may:
   1. Conduct a review and assessment of any computer system or related security system of the state board of higher education or any entity under the control and supervision of the board. A review and assessment under this section may include an assessment of system vulnerability, network penetration, any potential security breach, and the susceptibility of the system to cyber attack or cyber fraud.
   2. Disclose the findings of a review and assessment to an individual or committee designated by the state board of higher education or to the board. Any record relating to a review and assessment, including a working paper or preliminary draft of a review and assessment report and a report of the findings of a review and assessment, and any record that may cause or perpetuate vulnerability of a computer system or related security system which is obtained or created during a review and assessment is an exempt record.
   3. In conjunction with the state board of higher education or a committee designated by the board, procure the services of a specialist in information security systems or any other contractor deemed necessary in conducting a review and assessment under this section.
2. Any person hired or contracted to provide services in relation to a review and assessment under this section is subject to the privacy and confidentiality provisions of subsection 1 and any other section of law, including section 44-04-27, and for the purposes of section 12.1-13-01, is a public servant.

History. S.L. 2015, ch. 3, § 9, effective May 14, 2015.

Effective Date.

This section became effective May 14, 2015, pursuant to an emergency clause in section 48 of chapter 3, S.L. 2015.

15-10-44.3. Internal auditors’ working papers.

For purposes of this section, “higher education internal auditor” means an internal auditor of the North Dakota university system and the institutions under the control of the state board of higher education. Working papers of a higher education internal auditor are not public records and are exempt from section 44-04-18. Working papers include records kept by a higher education internal auditor of the procedures applied, the tests performed, the information obtained, draft audit reports, and the pertinent conclusions reached in the audit engagement. At the discretion of a higher education internal auditor, working papers of a higher education internal auditor may be made available for inspection. 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. The issued audit report is public information. The working papers of an issued audit report are public except for any information designated as confidential or exempt from disclosure by state or federal law. At the discretion of a higher education internal auditor, all or a portion of the working papers of the higher education internal auditor of an issued audit report may be declared confidential. The declaration of confidentiality must state the reason for the confidentiality and the date, as reasonably may be determined at the time, when the working papers will be made public.

Source: S.L. 2021, ch. 129, § 1, effective August 1, 2021.

15-10-45. Telecommunications and information services competition prohibited — Report.

1. The northern tier network, part of a national research network infrastructure, serves entities within and outside this state. The North Dakota university system may use the northern tier network infrastructure only for the purpose of supporting the research and education missions of the North Dakota university system. The North Dakota university system may not use the northern tier network infrastructure for traditional internet, voice, video, or other telecommunications services beyond those required for research networks.
2. The North Dakota university system or any entity associated with the university system may not resell any portion of the northern tier network infrastructure to nonuniversity entities other than research collaborators.
3. The northern tier network may not replace any wide area network services to any city, county, or school district which are provided by the information technology department under section 54-59-08.
4. The North Dakota university system shall provide a comprehensive biennial report of northern tier network activities for the 2007-09 biennium and must submit to a biennial audit of the northern tier network activities beginning with the 2009-11 biennium.

Source: S.L. 2007, ch. 154, § 2.

15-10-46. University of North Dakota fighting Sioux nickname and logo. [Repealed]

Repealed by S.L. 2011 Sp., ch. 580, § 2.

15-10-46.1. University of North Dakota athletic nickname and logo.

Neither the state board of higher education nor the university of North Dakota may adopt or implement an athletic nickname or corresponding logo before January 1, 2015.

Source: S.L. 2011 Sp., ch. 580, § 1.

Effective Date.

This section became effective December 1, 2011.

15-10-47. Construction projects at institutions of higher education — Variance reports.

1. Whenever any new construction, renovation, or repair, valued at more than two hundred fifty thousand dollars is underway on the campus of an institution of higher education under the control of the state board of higher education, the board shall provide semiannual project variance reports to the director of the office of management and budget. Each report must include:
   1. The name or a description of the project;
   2. The expenditure authorized by the legislative assembly;
   3. The amount of the original contract;
   4. The amount of any change orders;
   5. The amount of any potential or anticipated change orders;
   6. The sum of subdivisions c through e and the amount by which that sum varies from the expenditure authorized by the legislative assembly;
   7. The total expended for the project to date; and
   8. The scheduled date of completion as noted in the original contract and the latest available scheduled date of completion.
2. The state board of higher education also shall provide to the director of the office of management and budget, at the same time as the project variance report required by subsection 1:
   1. A brief description of each change order included in subdivision d of subsection 1; and
   2. A list of each public and nonpublic entity that has a contractually reflected financial obligation with respect to the project.
3. The office of management and budget shall review the information received under this section and provide reports to the budget section of the legislative management upon request.

Source: S.L. 2011, ch. 119, § 1; 2013, ch. 34, § 4.

15-10-48. Advancement of academics — Matching grants — University of North Dakota and North Dakota state university.

1. 1. Subject to legislative appropriations, each biennium during the period beginning July first of each odd-numbered year and ending December thirty-first of each even-numbered year, the state board of higher education shall award one dollar in matching grants for every two dollars raised by the institutional foundations of the university of North Dakota and North Dakota state university for projects dedicated exclusively to the advancement of academics.
   2. To be eligible for a matching grant, an institution must demonstrate that:
      1. Its foundation has raised at least fifty thousand dollars in cash or monetary pledges for a qualifying project; and
      2. The project has been approved by the grant review committee established in section 15-10-51.
      3. The institution is not sponsoring, partnering with, applying for grants with, or providing a grant subaward to any person or organization that performs, or promotes the performance of, an abortion unless the abortion is necessary to prevent the death of the woman, and not participating in or sponsoring any program producing, distributing, publishing, disseminating, endorsing, or approving materials of any type or from any organization, that between normal childbirth and abortion, do not give preference, encouragement, and support to normal childbirth. This paragraph does not apply to agreements entered into with medical hospitals and clinics by the university of North Dakota school of medicine and health sciences or by any nursing education program at an institution under the control of the state board of higher education.
   3. The board may award up to one million seven hundred thousand dollars in matching grants each to the university of North Dakota and North Dakota state university; and up to one million five hundred thousand dollars in matching grants for projects at the university of North Dakota school of medicine and health sciences.
2. 1. If any available dollars have not been awarded by the board before January first of each odd-numbered year, in accordance with subsection 1, either the university of North Dakota or North Dakota state university may apply for an additional matching grant.
   2. An application submitted under this subsection must meet the same criteria as an original application.
   3. The board shall consider each application submitted under this subsection in chronological order.
   4. If the remaining dollars are insufficient to provide a matching grant in the amount of one dollar for every two dollars raised by the institutional foundation, the board shall award a lesser amount.
3. The state board of higher education shall retain up to one-quarter of one percent of any grant awarded under this section to assist with administrative expenses incurred in the grant review process.

Source: S.L. 2013, ch. 34, § 5; 2015, ch. 131, § 1; 2017, ch. 28, § 4, effective July 1, 2017; 2019, ch. 3, § 8, effective July 1, 2019; 2021, ch. 31, §§ 10, 17, effective July 1, 2021; 2021, ch. 130, §§ 2, 3, 6, effective July 1, 2021.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 131, S.L. 2015 became effective July 1, 2015.

Note.

Section 15-10-48 was amended 5 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 31 of Chapter 28, Session Laws 2021, Senate Bill 2003; Section 10 of Chapter 31, Session Laws 2021, Senate Bill 2003; Section 3 of Chapter 130, Session Laws 2021, Senate Bill 2030; Section 6 of Chapter 130, Session Laws 2021, Senate Bill 2030; and Section of Chapter 130, Session Laws 2021, Senate Bill 2030.

Section 6 of chapter 130, S.L. 2021, provides: “ REPEAL. Subdivision d of subsection 1 of section 15-10-48 of the North Dakota Century Code is repealed.”

The 2015 amendment to this section by section 1 of chapter 131, S.L. 2015, removed the expiration date of the section.

15-10-48.1. Clinical legal education, including indigent legal services, and faculty recruitment and retention — Matching grants — University of North Dakota school of law.

1. 1. Subject to legislative appropriations, each biennium the state board of higher education shall award one dollar in matching grants for every two dollars raised by the institutional foundation of the university of North Dakota for projects dedicated exclusively to clinical legal education, including indigent legal services, or the recruitment and retention of faculty at the school of law.
   2. To be eligible for a matching grant, the institution shall demonstrate:
      1. Its foundation has raised at least twenty-five thousand dollars in cash or monetary pledges for a qualifying project; and
      2. The project has been approved by the grant review committee established in section 15-10-51.
   3. The board may award up to two hundred fifty thousand dollars in matching grants under this section.
   4. If the remaining dollars are insufficient to provide a matching grant in the amount of one dollar for every two dollars raised by the institutional foundation, the board shall award a lesser amount.
2. The state board of higher education shall retain up to one-quarter of one percent of any grant awarded under this section to assist with the administrative expenses incurred in the grant review process.

Source: S.L. 2019, ch. 3, § 9, effective July 1, 2019.

15-10-49. Advancement of academics — Matching grants — Two-year and four-year institutions of higher education.

1. 1. Subject to legislative appropriations, each biennium during the period beginning July first of each odd-numbered year and ending December thirty-first of each even-numbered year, the state board of higher education shall award one dollar in matching grants for every two dollars raised by the institutional foundations of Bismarck state college, Dakota college at Bottineau, Dickinson state university, Lake Region state college, Mayville state university, Minot state university, North Dakota state college of science, Valley City state university, and Williston state college for projects dedicated exclusively to the advancement of academics.
   2. To be eligible for a matching grant, an institution must demonstrate that:
      1. Its foundation has raised at least twenty-five thousand dollars in cash or monetary pledges for a qualifying project; and
      2. The project has been approved by the grant review committee established in section 15-10-51.
      3. The institution is not sponsoring, partnering with, applying for grants with, or providing a grant subaward to any person or organization that performs, or promotes the performance of, an abortion unless the abortion is necessary to prevent the death of the woman, and not participating in or sponsoring any program producing, distributing, publishing, disseminating, endorsing, or approving materials of any type or from any organization, that between normal childbirth and abortion, do not give preference, encouragement, and support to normal childbirth. This paragraph does not apply to agreements entered into with medical hospitals and clinics by the university of North Dakota school of medicine and health sciences or by any nursing education program at an institution under the control of the state board of higher education.
   3. The board may award up to:
      1. Nine hundred fifty thousand dollars each to Bismarck state college, Minot state university, and the North Dakota state college of science;
      2. Seven hundred thousand dollars each to Dickinson state university, Mayville state university, and Valley City state university; and
      3. Three hundred fifty thousand dollars each to Dakota college at Bottineau, Lake Region state college, and Williston state college.
2. 1. If any available dollars have not been awarded by the board before January first of each odd-numbered year, in accordance with subsection 1, any institution listed in subsection 1 may apply for an additional matching grant.
   2. An application submitted under this subsection must meet the same criteria as an original application.
   3. The board shall consider each application submitted under this subsection in chronological order.
   4. If the remaining dollars are insufficient to provide a matching grant in the amount of one dollar for every two dollars raised by the institutional foundation, the board shall award a lesser amount.
3. The state board of higher education shall retain up to one-quarter of one percent of any grant awarded under this section to assist with administrative expenses incurred in the grant review process.

Source: S.L. 2013, ch. 34, § 6; 2015, ch. 131, § 2; 2017, ch. 28, § 5, effective July 1, 2017; 2019, ch. 3, § 10, effective July 1, 2019; 2021, ch. 130, § 4, effective July 1, 2021.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 131, S.L. 2015 became effective July 1, 2015.

Note.

The 2015 amendment to this section by section 2, of chapter 131, S.L. 2015 removed the expiration date of the section.

15-10-50. Liability for pledged amount.

If in accordance with section 15-10-48, 15-10-48.1, or 15-10-49, the state board of higher education provides grant funds to an institution, on the basis of a monetary pledge, and if the amount forthcoming is less than the amount pledged, the institutional foundation is liable to the institution for any shortfall.

Source: S.L. 2013, ch. 34, § 7; 2015, ch. 131, § 3; 2019, ch. 3, § 11, effective July 1, 2019.

Effective Date.

The 2015 amendment of this section by section 3 of chapter 131, S.L. 2015 became effective July 1, 2015.

Note.

The 2015 amendment to this section by section 3 of chapter 131, S.L. 2015, removed the expiration date of the section.

15-10-51. Grant review committee.

1. There is created a grant review committee consisting of:
   1. The governor, or the governor’s designee, who shall serve as the chairman;
   2. Two members of the house of representatives appropriations committee, selected by the majority leader of the house of representatives;
   3. Two members of the senate appropriations committee, selected by the majority leader of the senate;
   4. Two members appointed by the governor, with the consent of the legislative management; and
   5. Two members appointed by the state board of higher education, with the consent of the legislative management.
2. The gubernatorial appointees must have an understanding of higher education’s role in advancing agriculture, the arts, commerce and finance, manufacturing, mineral extraction, natural resources, and the professions.
3. The grant review committee shall establish its rules of operation and procedure and shall develop and publish the criteria upon which all requests for matching grants will be reviewed.
4. 1. A request for a matching grant may be presented to the committee by :
      1. The president of the institution; or
      2. A designee of the president.
   2. Either presenter may be accompanied by other individuals having an expertise with respect to the project.
   3. If the request is to be presented by a designee of a president, the designee must provide to the committee a written statement signed by the president and certifying that the president has full knowledge of all aspects of the request, as it is presented.

Source: S.L. 2013, ch. 34, § 8; 2015, ch. 131, § 4, effective July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 4 of chapter 131, S.L. 2015 became effective July 1, 2015.

Note.

The 2015 amendment to this section by section 4, of chapter 131, S.L. 2015, was to remove the expiration date of the section.

15-10-52. Grant review committee — Compensation.

Each member of the grant review committee is entitled to receive compensation in the amount of one hundred thirty-five dollars per day plus reimbursement for expenses as provided by law for state officers if the member is attending meetings or performing duties directed by the committee. The compensation provided for in this section may not be paid to any member of the committee who receives a salary or other compensation as an employee or official of this state if the individual is serving on the committee by virtue of the individual’s state office or state employment.

Source: S.L. 2013, ch. 34, § 9; 2015, ch. 131, § 5, effective July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 5 of chapter 131, S.L. 2015 became effective July 1, 2015.

Note.

The 2015 amendment to this section by section 5, of chapter 131, S.L. 2015, was to remove the expiration date of the section.

15-10-53. Definition.

For purposes of sections 15-10-48 through 15-10-52, projects dedicated to the advancement of enhanced academics include investments in research, scholarships, technology, endowed chairs, and investments in educational infrastructure, but exclude scholarships intended solely for the benefit of athletics, campus facility repair projects, and new capital construction projects.

Source: S.L. 2013, ch. 34, § 10; 2015, ch. 131, § 6, effective July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 6 of chapter 131, S.L. 2015 became effective July 1, 2015.

Note.

The 2015 amendment to this section by section 6, of chapter 131, S.L. 2015, was to remove the expiration date of the section.

15-10-54. Assessment of institutions. [Expired]

Source: S.L. 2013, ch. 135, § 2.

15-10-55. Student journalists — Freedom of expression — Civil remedy.

1. As used in this section:
   1. “Protected activity” means an expression of free speech or freedom of the press.
   2. “School-sponsored media” means any material that is prepared, substantially written, published, or broadcast by a student journalist at a public institution of higher education, distributed or generally made available to members of the student body, and prepared under the direction of a student media adviser. The term does not include any media intended for distribution or transmission solely in the classroom in which the media is produced.
   3. “Student journalist” means a student of a public institution of higher education who gathers, compiles, writes, edits, photographs, records, or prepares information for dissemination in school-sponsored media.
   4. “Student media adviser” means an individual employed, appointed, or designated by a public institution of higher education to supervise or provide instruction relating to school-sponsored media.
2. Except as provided in subsection 3, a student journalist has the right to exercise freedom of speech and of the press in school-sponsored media, regardless of whether the media is supported financially by the institution or by use of facilities of the institution or produced in conjunction with a class in which the student is enrolled. Subject to subsection 3, a student journalist is responsible for determining the news, opinion, feature, and advertising content of school-sponsored media. This subsection may not be construed to prevent a student media adviser from teaching professional standards of English and journalism to student journalists. A student media adviser may not be dismissed, suspended, or disciplined for acting to protect a student journalist engaged in a protected activity or for refusing to infringe on a protected activity.
3. This section does not authorize or protect expression by a student that:
   1. Is libelous, slanderous, or obscene;
   2. Constitutes an unwarranted invasion of privacy;
   3. Violates federal or state law; or
   4. So incites students as to create a clear and present danger of the commission of an unlawful act, the violation of institution or state board of higher education policies, or the material and substantial disruption of the orderly operation of the institution.
4. An expression of free speech or freedom of the press made by a student journalist under this section may not be construed as an expression of school policy. A school, school official, employee, or parent or legal guardian of a student journalist may not be liable in any civil or criminal action for an expression of free speech or freedom of the press made by a student journalist, except in the case of willful or wanton misconduct.

History. S.L. 2015, ch. 133, § 1, effective August 1, 2015; 2017, ch. 126, § 1, effective August 1, 2017.

Effective Date.

This section became effective August 1, 2015.

15-10-56. Disciplinary proceedings — Right to counsel for students and organizations — Appeals.

1. Any student enrolled at an institution under the control of the state board of higher education has the right to be represented, at the student’s expense, by the student’s choice of either an attorney or a nonattorney advocate, who may fully participate during any disciplinary proceeding or during any other procedure adopted and used by that institution to address an alleged violation of the institution’s rules or policies. This right applies to both the student who has been accused of the alleged violation and to the student who is the accuser or victim. This right only applies if the disciplinary proceeding involves a violation that could result in a suspension or expulsion from the institution. This right does not apply to matters involving academic misconduct. Before the disciplinary proceeding is scheduled, the institution shall inform the students in writing of the students’ rights under this section.
2. Any student organization officially recognized by an institution under the control of the state board of higher education has the right to be represented, at the student organization’s expense, by the student organization’s choice of either an attorney or nonattorney advocate, who may fully participate during any disciplinary proceeding or during any other procedure adopted and used by the institution to address an alleged violation of the institution’s rules or policies. This right only applies if the disciplinary proceeding involves a violation that could result in the suspension or the removal of the student organization from the institution. This right applies to both the student organization that has been accused of the alleged violation and to the accuser or victim.
3. 1. Any student who is suspended or expelled from an institution under the control of the state board of higher education for a violation of the rules or policies of that institution and any student organization that is found to be in violation of the rules or policies of that institution must be afforded an opportunity to appeal the institution’s initial decision to an institutional administrator or body that did not make the initial decision for a period of one year after receiving final notice of the institution’s decision. The right to appeal the result of the institution’s disciplinary proceeding also applies to the student who is the accuser or victim.
   2. The right of the student or the student organization under subsection 1 or 2 to be represented, at the student’s or the student organization’s expense, by the student’s or the student organization’s choice of either an attorney or a nonattorney advocate, also applies to the appeal.
   3. The issues that may be raised on appeal include new evidence, contradictory evidence, and evidence that the student or student organization was not afforded due process. The institutional body considering the appeal may consider police reports, transcripts, and the outcome of any civil or criminal proceeding directly related to the appeal.
4. Upon consideration of the evidence, the institutional body considering the appeal may grant the appeal, deny the appeal, order a new hearing, or reduce or modify the suspension or expulsion. If the appeal results in the reversal of the decision or a lessening of the sanction, the institution may reimburse the student for any tuition and fees paid to the institution for the period of suspension or expulsion which had not been previously refunded.
5. For purposes of this section, “fully participate” includes the opportunity to make opening and closing statements, to examine and cross-examine witnesses, and to provide the accuser or accused with support, guidance, and advice. This section does not require an institution to use formal rules of evidence in institutional disciplinary proceedings. The institution, however, shall make good faith efforts to include relevant evidence and exclude evidence which is neither relevant or probative.
6. This section does not affect the obligation of an institution to provide equivalent rights to a student who is the accuser or victim in the disciplinary proceeding under this section, including equivalent opportunities to have others present during any institutional disciplinary proceeding, to not limit the choice of attorney or nonattorney advocate in any meeting or institutional disciplinary proceeding, and to provide simultaneous notification of the institution’s procedures for the accused and the accuser or victim to appeal the result of the institutional disciplinary proceeding.

History. S.L. 2015, ch. 134, § 1, effective August 1, 2015.

Effective Date.

This section became effective August 1, 2015.

15-10-57. Unified workforce, vocational, and technical education program system.

The state board of higher education shall establish and maintain a unified system to offer workforce training, vocational education, and technical education programs at institutions under its control. The board shall periodically review programs offered by institutions under its control and revise program offerings based on the workforce needs of the state identified by the workforce education advisory council. The board shall develop administrative arrangements that make possible the efficient use of facilities and staff. The board shall limit administrative costs by eliminating duplicative administrative positions.

History. S.L. 2015, ch. 3, § 10, effective July 1, 2015.

Effective Date.

This section became effective July 1, 2015.

15-10-58. Workforce education advisory council — Membership — Duties.

The state board of higher education shall establish a workforce education advisory council to advise the board regarding skills and qualifications needed for workforce training, vocational, and technical education programs offered at institutions under the control of the board. The council is composed of a representative of the department of career and technical education, a representative of job service North Dakota, a representative of the department of commerce, and eight members representing business and industry in the state. The eight members representing business and industry shall be appointed by the chairman of the legislative management. The North Dakota university system office shall provide staff services for the advisory council and members of the council who are not employees of the state are entitled to expense reimbursement from the board, as provided by law for state officers, for attending meetings of the council.

History. S.L. 2015, ch. 3, § 11, effective July 1, 2015.

Effective Date.

This section became effective July 1, 2015.

15-10-59. Annual report — Scholarships. [Effective through July 31, 2024]

The state board of higher education shall provide to the legislative management an annual report regarding the number of North Dakota scholarships, North Dakota academic scholarships, and North Dakota career and technical education scholarships provided and demographic information pertaining to the recipients.

History. S.L. 2015, ch. 3, § 12, effective July 1, 2015; 2021, ch. 159, § 1, effective August 1, 2021.

Effective Date

This section became effective July 1, 2015.

Note.

Section 15-10-59 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 2 of Chapter 159, Session Laws 2021, Senate Bill 2289; and Section of Chapter 159, Session Laws 2021, Senate Bill 2289.

15-10-59. Annual report — Scholarships. [Effective August 1, 2024]

The state board of higher education shall provide to the legislative management an annual report regarding the number of North Dakota scholarships provided and demographic information pertaining to the recipients.

History. S.L. 2015, ch. 3, § 12, effective July 1, 2015; 2021, ch. 159, § 1, effective August 1, 2021; 2021, ch. 159, § 2, effective August 1, 2024.

15-10-60. Scholarship endowment fund — Rules. [Repealed]

History. S.L. 2015, ch. 153, § 1, effective May 14, 2015; repealed by 2017, ch. 368, § 9, effective April 10, 2017.

15-10-61. Dual-credit courses — Pilot program. [Repealed]

Source: S.L. 2017, ch. 127, § 1, effective July 1, 2017; repealed by 2019, ch. 3, § 19, effective July 1, 2019.

15-10-62. Nickel trophy.

To promote national recognition and statewide enthusiasm, the legislative assembly encourages the university of North Dakota and the North Dakota state university of agriculture and applied science to play for the nickel trophy during the course of a national collegiate athletic association football game. If the athletic director or president of either institution elects not to play for the nickel trophy, the nickel trophy must be permanently displayed in the heritage center.

Source: S.L. 2017, ch. 28, § 7, effective July 1, 2017.

15-10-63. Capital projects.

1. An institution under the control of the state board of higher education may undertake a facility renovation project only if the project will reduce the deferred maintenance amount of the facility by no less than seventy five percent of the total cost of the renovation. The institution shall maintain documentation that demonstrates the cost and scope of the deferred maintenance reduction that results directly from the renovation. This subsection does not apply to projects undertaken solely to correct building code deficiencies or to installations of infrastructure determined by the board to be essential to the mission of the institution.
2. Facility construction and renovation projects undertaken by an institution under the control of the state board of higher education must conform to campus master plan and space utilization requirements approved by the state board of higher education.

Source: S.L. 2017, ch. 28, § 6, effective July 1, 2017.

Note.

Section 6 of chapter 28, S.L. 2017, pertaining to capital project and capital lease requests was vetoed by the Governor. Chapter 450, S.L. 2017. In letter opinion 2017-L-04, the Attorney General opined the Governor's veto of subsections 1, 2, and 5 of Section 6 of chapter 28, S.L. 2017 is authorized by law; and the Governor's veto of subsections 3 and 4 of Section 6 of chapter 28, S.L. 2017 is not authorized by the Constitution of North Dakota and is not effective.

This section is set out above to reflect a correction from the state since the 2017 cumulative supplement. The final determination on the validity of the 2017 veto was made, and subsequent effect was given only to former subsections (3) and (4).

15-10-64. University of North Dakota men’s varsity golf program.

If certain real property known as the Ray Richards golf course or Ray Richards golf course addition, 3801 demers avenue, lot 1, block 1, and Ray Richards golf course addition, 3501 demers avenue, lot 2, block 1, in the records of the city of Grand Forks, or any portion of the property, is conveyed, fifty-three and fifty-seven one hundredths percent of the sale price must be transferred to a permanent endowment fund named the Ray Richards golf endowment fund, which must be controlled and administered by the university of North Dakota alumni foundation for the sole benefit of the university of North Dakota men’s varsity golf program in honor of the Ray Richards family. If the university of North Dakota men’s varsity golf program has been terminated prior to the conveyance, so much of the funds in the Ray Richards golf endowment fund as necessary must be used to reinstate the program, and the remainder must be used for the sole benefit of the program.

Source: S.L. 2019, ch. 3, § 13, effective July 1, 2019.

15-10-65. Student voting documents.

An institution of higher education under the control of the state board of higher education may issue students enrolled at the institution a printable document containing the institution’s letterhead or seal using a self-service process. The document must contain the student’s legal name, current residential address in the state, the date the residential address was established, and date of birth. When issuing the document to students, an institution of higher education under the control of the state board of higher education shall provide each student with information regarding voter eligibility requirements.

Source: S.L. 2021, ch. 165, § 1, effective August 1, 2021.

15-10.1-01. Declaration of legislative intent.

In order to make the most provident utilization of state institutions of higher education and private colleges in North Dakota, and public and private colleges and universities in contiguous states, and to avoid duplication of facilities, it is desirable to provide means which will enable a student resident within the areas served by such institutions of higher education to obtain desired courses in the most expedient manner and at the least possible cost.

Source: S.L. 1969, ch. 159, § 1.

Cross-References.

Contracts for medical education, see N.D.C.C. § 15-52-30.

Interstate agreements, see § 15-10-28.

Regional veterinary medical education program, see § 15-10-28.2.

15-10.1-01.1. Legislative intent on reciprocity.

It is the intent of the legislative assembly that the board of higher education thoroughly investigate the possibility of entering into appropriate reciprocal agreements with the appropriate institutions in the states of South Dakota, Montana, and Minnesota, and that such agreements, if found feasible, be entered into by the board. It is further declared to be the intent of the legislative assembly that before entering into any such agreement which necessitates the expenditure of state funds, the state board of higher education return to the legislative assembly for approval of such expenditures.

Source: S.L. 1975, ch. 137, § 2.

15-10.1-02. Agreements — Reciprocal basis.

The state board of higher education may enter into agreements with public or private institutions of higher education, or the governing boards thereof, in this state and in contiguous states on a reciprocal basis in order to accomplish the following:

1. To enable a student at any institution party to such an agreement to take a specialized course or courses at a different institution from that in which the student is enrolled, with or without the payment of tuition charges at the other institution.
2. To enable a student enrolled in any of the institutions party to the agreement to attend another institution party to such agreement without being required to pay nonresident tuition fees and in accordance with the terms of such agreement.

Source: S.L. 1969, ch. 159, § 2; 1999, ch. 161, § 2.

15-10.1-03. Remission of nonresident tuition — Agreements.

The state board of higher education may enter into agreements for the remission of nonresident tuition for designated categories of students at state institutions of higher education. Such agreements must have as their purpose the mutual improvement of educational advantages for residents of this state and such other states or institutions of other states with whom agreements are made.

Source: S.L. 1969, ch. 159, § 3; 1999, ch. 161, § 3.

15-10.1-04. Procedures — Limitations.

The state board of higher education may prescribe the procedures for carrying out the authority conferred by sections 15-10.1-02 and 15-10.1-03. An agreement entered into pursuant to this chapter must provide for approximately equal advantages between the contracting institutions or the contracting states.

Source: S.L. 1969, ch. 159, § 4; 1975, ch. 137, § 1.

15-10.1-05. Supplementary authority.

The authority granted the state board of higher education by this chapter is supplemental to the authority granted such board by section 15-10-28.

Source: S.L. 1969, ch. 159, § 5.

15-10.2-01. Midwestern regional higher education compact. [Repealed]

Source: S.L. 1999, ch. 3, § 24; repealed by 2017, ch. 28, § 13, effective June 30, 2017.

15-10.2-02. Midwestern higher education commission — Terms — Vacancies. [Repealed]

Source: S.L. 1999, ch. 3, § 24; 2009, ch. 482, § 97; repealed by 2017, ch. 28, § 13, effective June 30, 2017.

15-10.3-01. Definitions.

For purposes of this chapter, unless the context otherwise requires:

1. “Fee” means any monetary charge, other than tuition, that a student is assessed for a specific purpose or supplemental service.
2. “Tuition” means the monetary charge that a student is assessed in order to be enrolled in a class or program for which a student generally earns academic credit.

Source: S.L. 2011, ch. 120, § 1.

15-10.3-02. Mandatory fees — Fees for optional purposes or services — Publication for comparison purposes.

The state board of higher education shall publish on its website in a clear and comprehensible form that allows for ease of comparison among all institutions under its control:

1. The amount of mandatory fees that each institution has determined it shall assess each full-time and part-time student during the ensuing academic year, together with a breakdown of the fees by purpose or service;
2. The amount of any program-specific fees that each institution has determined it shall assess each student in a particular program during the ensuing academic year; and
3. The amount of fees for optional purposes or services that each institution has determined it may assess a full-time or a part-time student during the ensuing academic year, together with a breakdown of the fees by purpose or service.

Source: S.L. 2011, ch. 120, § 1.

15-10.3-03. Mandatory fees — Limitation on increases — Exemption.

1. The total amount of mandatory fees, other than program-specific fees, which an institution under the control of the state board of higher education assesses each full-time and part-time student, may not increase from one academic year to the ensuing academic year by more than one percent of the latest available average full-time, resident, on-campus, undergraduate tuition rate at that institution, unless the state board determines that an exemption from the requirements of this section is necessitated as a result of student demand, as evidenced by a campuswide student election or formal action by an institution’s student governing board or committee.
2. 1. Before mandatory fees on students may be increased to support the construction or renovation of a campus building valued at more than one million dollars, the use must be approved by a majority of the students voting on the question at a campuswide election.
   2. This subsection does not apply to any construction or renovation for which the use of mandatory fees was authorized before July 1, 2013.

Source: S.L. 2011, ch. 120, § 1; 2013, ch. 136, § 1.

15-10.3-04. Mandatory fee increases — Criteria — Explanation.

1. Before the state board of higher education may approve an institution’s request to increase a mandatory fee, other than a program-specific fee, the institution shall provide to the board the following information:
   1. The estimated revenue collection to be generated by the proposed fee increase;
   2. The specific purpose to which the generated revenue will be allocated;
   3. Other anticipated tuition and fee increases;
   4. A delineation of fee increases during the preceding five-year period and the revenues collected as a result of each increase;
   5. The extent to which students were allowed to participate in the decisionmaking process that preceded and resulted in the request for a fee increase; and
   6. The approximate number of students that would be assessed the fee each year.
2. The board shall examine the information provided by the requesting institution and shall support its decision to grant or deny a request for a mandatory fee increase with specific reference to each piece of information required by this section.

Source: S.L. 2011, ch. 120, § 1.

15-10.4-01. Definitions.

As used in this chapter:

1. “Constitutional time, place, and manner restrictions” means restrictions on the time, place, and manner of free speech which do not violate the First Amendment to the United States Constitution or section of article I of the Constitution of North Dakota and which are reasonable, content- and viewpoint-neutral, and narrowly tailored to satisfy a significant institutional interest, and leave open alternative channels for the communication of the information or message.
2. “Faculty” means an individual, regardless of whether the individual is compensated by an institution, and regardless of political affiliation, who is tasked with providing scholarship, academic research, or teaching, including tenured and nontenured professors, adjunct professors, visiting professors, lecturers, graduate student instructors, and those in comparable positions. “Faculty” does not mean an individual whose primary responsibilities are administrative or managerial, unless the individual also teaches at least one credit-hour.
3. “Free speech” means speech, expression, and assemblies protected by the First Amendment to the United States Constitution or section 4 of article I of the Constitution of North Dakota, including all forms of peaceful assembly, protests, demonstrations, rallies, vigils, marches, public speaking, distribution of printed materials, carrying signs, displays, or circulating petitions. “Free speech” does not include the promotion, sale, or distribution of a product or service, unless the promotion, sale, or distribution of the product or service is incidental to the exercise of free speech.
4. “Institution” means an institution under the control of the state board of higher education.
5. “Student” means an individual enrolled in at least one course offered by an institution.
6. “Student organization” means an officially recognized organization at an institution, or an organization seeking official recognition, comprised of admitted students receiving or are seeking to receive benefits through the institution.

Source: S.L. 2019, ch. 138, § 1, effective August 1, 2019.

15-10.4-02. Adoption of campus free speech policy.

The state board of higher education and each institution shall adopt a policy that:

1. Protects students’ rights to free speech, assembly, and expression;
2. Permits institutions to establish and enforce reasonable and constitutional time, place, and manner restrictions on free speech, assembly, and expression;
3. Protects the academic freedom and free speech rights of faculty by guaranteeing, at a minimum, no faculty member will face adverse employment action for classroom speech, unless the speech is not reasonably germane to the subject matter of the class as broadly construed and comprises a substantial portion of classroom instruction;
4. Prohibits student-on-student discriminatory harassment consistent with the following requirements:
   1. An institution may not enforce the student-on-student discriminatory harassment policy by disciplining or otherwise imposing any sanction on a student for a violation of the policy stemming from expression unless:
      1. The speech or expression is unwelcome, targets the victim on a basis protected under federal, state, or local law, and is so severe, pervasive, and objectively offensive that a student effectively is denied equal access to educational opportunities or benefits provided by the institution; or
      2. The speech or expression explicitly or implicitly conditions a student’s participation in an education program or activity or bases an educational decision on the student’s submission to unwelcome sexual advances or requests for sexual favors;
   2. An institution may sanction or discipline student-on-student speech or expression that does not meet the definition of student-on-student harassment only when the speech or expression is not protected under the First Amendment to the United States Constitution or section 4 of article I of the Constitution of North Dakota; and
   3. An institution may respond to student-on-student speech that is not discriminatory harassment by taking nonpunitive actions designed to promote a welcoming, inclusive environment; and
5. Complies with the following principles of free speech:
   1. An institution shall maintain the generally accessible, open, outdoor areas of the institution’s campus as traditional public forums for free speech by students, faculty, and invited guests, subject to reasonable time, place, and manner restrictions on free speech, assembly, and expression which are applicable to the publicly accessible outdoor areas of campus, do not violate the First Amendment to the United States Constitution or section 4 of article I of the Constitution of North Dakota, and are clear, published, reasonable, content-neutral, viewpoint-neutral, and narrowly tailored to satisfy a significant institutional interest, and leave open alternative channels for the communication of information or a message;
   2. An institution may not restrict students’ free speech to particular areas of campus, sometimes known as “free speech zones”;
   3. An institution may not deny student activity fee funding to a student organization based on the viewpoints the student organization advocates;
   4. An institution may not establish permitting requirements prohibiting spontaneous outdoor assemblies or outdoor distribution of literature, except an institution may maintain a policy granting an individual or organization the right to reserve the exclusive use of certain outdoor spaces, and may prohibit spontaneous assemblies or distribution of literature inside reserved outdoor spaces;
   5. An institution may not charge students or student organizations security fees based on the content of the student’s or student organization’s speech, the content of the speech of guest speakers invited by students, or the anticipated reaction or opposition of listeners to the speech. Any security fees charged to a student or student organization may not exceed the actual costs incurred by the institution, and the institution shall refund any overpayment. Institutions shall set forth empirical and objective criteria for calculating security fees and shall make the criteria available to the public;
   6. An institution shall allow students, student organizations, and faculty to invite guest speakers to campus to engage in free speech regardless of the views of the guest speakers or viewpoint or content of the anticipated speech;
   7. An institution may not retract or compel a student, student organization, or faculty member to retract a guest speaker’s invitation to speak at the institution based on the guest speaker’s viewpoints or the content of the anticipated speech; and
   8. An institution may not discriminate against a student organization with respect to a benefit available to any other student organization based on a requirement of the organization that leaders or voting members of the organization:
      1. Adhere to the organization’s viewpoints or sincerely held beliefs; or
      2. Be committed to furthering the organization’s beliefs or religious missions.

Source: S.L. 2019, ch. 138, § 1, effective August 1, 2019; 2021, ch. 131, § 1, effective July 1, 2021.

15-10.5-01. Midwestern regional higher education compact.

The midwestern regional higher education compact is adopted as follows:

ARTICLE I - PURPOSE

The purpose of the midwestern higher education compact is to provide greater higher education opportunities and services in the midwestern region, with the aim of furthering regional access to, research in, and choice of higher education for the citizens residing in the states that are parties to this compact.

ARTICLE II - THE COMMISSION

1. The compacting states create the midwestern higher education commission, hereinafter called the commission. The commission is a body corporate of each compacting state. The commission has all the responsibilities, powers, and duties set forth in this chapter, including the power to sue and be sued, and any additional powers conferred upon it by subsequent action of the respective legislative assemblies of the compacting states in accordance with the terms of this compact.
2. The commission consists of the following five resident members from each state: the governor or the governor’s designee who serves during the tenure of office of the governor; two legislators, one from each house, except for Nebraska, which may appoint two legislators from its legislative assembly, who serve two-year terms and are appointed by the appropriate appointing authority in each house of the legislative assembly; and two other at large members, at least one of whom is to be selected from the field of higher education. The at large members are to be appointed as provided by the laws of the appointing state. One of the two at large members initially appointed in each state serves a two-year term. The other, and any regularly appointed successor to either at large member, serves a four-year term. All vacancies are to be filled in accordance with the laws of the appointing states. Any commissioner appointed to fill a vacancy serves until the end of the incomplete term.
3. The commission shall select annually, from among its members, a chairman, a vice chairman, and a treasurer.
4. The commission shall appoint an executive director who serves at its pleasure and who is secretary to the commission. The treasurer, the executive director, and other personnel as the commission determines must be bonded in the amounts required by the commission.
5. The commission shall meet at least once each calendar year. The chairman may call additional meetings and upon the request of a majority of the commission members of three or more compacting states, shall call additional meetings. The commission shall give public notice of all meetings. All meetings must be open to the public.
6. Each compacting state represented at any meeting of the commission is entitled to one vote. A majority of the compacting states constitute a quorum for the transaction of business, unless a larger quorum is required by the bylaws of the commission.
7. The commission may enter agreements with any other interstate education organization or agency, with institutions of higher education located in nonmember states, and with any of the various states to provide adequate programs and services in higher education for the citizens of the respective compacting states. After negotiations with interested institutions and interstate organizations or agencies, the commission shall determine the cost of providing the programs and services in higher education for use in these agreements.
8. The commission may establish and maintain offices in one or more of the compacting states.
9. The commission may establish committees and hire staff as necessary to carry out its functions.
10. The commission may provide for actual and necessary expenses for the attendance of its members at official meetings of the commission or of its designated committees.

ARTICLE III - POWERS AND DUTIES OF THE COMMISSION

1. The commission shall adopt bylaws governing its management and operations.

2. Notwithstanding the laws of any compacting state, the commission shall provide for the personnel policies and programs of the compact in its bylaws.

3. The commission shall submit a budget to the governor and legislative assembly of each compacting state at the time and for the period required by each state. The budget must contain recommendations regarding the amount to be appropriated by each compacting state.

4. The commission shall report annually to the legislative assemblies and governors of the compacting states, to the midwestern governors’ conference, and to the midwestern legislative conference of the council of state governments regarding the activities of the commission during the preceding year. The reports must include any recommendations that have been adopted by the commission.

5. The commission may borrow, accept, or contract for the services of personnel from any state or from the United States, or from any subdivision or agency thereof, from any interstate agency, or from any person.

6. The commission may accept for any of its purposes and functions under the compact donations and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any state or the United States or from any subdivision or agency thereof, from an interstate agency, or from any person, and may receive, use, and dispose of the same.

ARTICLE IV - ACTIVITIES OF THE COMMISSION

1. The commission shall collect data on the long-range effects of the compact on higher education. By the end of the fourth year from the effective date of the compact and every two years thereafter, the commission shall review its accomplishments and make recommendations to the governors and legislative assemblies of the compacting states regarding continuance of the compact.

2. The commission shall study higher education issues that are of particular concern to the midwestern region. The commission also shall study the need for higher education programs and services in the compacting states and the resources for meeting those needs. The commission shall prepare reports, on its research, for presentation to the governors and legislative assemblies of the compacting states, as well as to other interested parties. In conducting the studies, the commission may confer with any national or regional planning body. The commission may draft and recommend to the governors and legislative assemblies of the various compacting states suggested legislation addressing issues in higher education.

3. The commission shall study the need for the provision of adequate programs and services in higher education, such as undergraduate, graduate, or professional student exchanges in the region. If a need for exchange in a field is apparent, the commission may enter agreements with any institution of higher education and with any compacting state to provide programs and services in higher education for the citizens of the respective compacting states. After negotiating with interested institutions and the compacting states, the commission shall determine the cost of providing the programs and services in higher education for use in its agreements. The contracting states shall contribute funds not otherwise provided, as determined by the commission, to carry out the agreements. The commission may also serve as the administrative and fiscal agent in carrying out agreements for higher education programs and services.

4. The commission shall serve as a clearinghouse for information regarding higher education activities among institutions and agencies.

5. The commission may provide services and research in any other area of regional concern.

ARTICLE V - FINANCE

1. The compacting states will appropriate the amount necessary to finance the general operations of the commission, not otherwise provided for, when authorized by their respective legislative assemblies. The amount must be apportioned equally among the compacting states.

2. The commission may not incur any obligations prior to the passage of appropriations adequate to meet the same; nor may the commission pledge the credit of any of the compacting states, except by and with the authority of the compacting state.

3. The commission shall keep accurate accounts of its receipts and disbursements. The receipts and disbursements of the commission are subject to the audit and accounting procedures established under its bylaws. All receipts and disbursements handled by the commission must be audited yearly by a certified or licensed public accountant and the report of the audit must be included in and become part of the annual report of the commission.

4. The accounts of the commission must be open at any reasonable time for inspection by duly authorized representatives of the compacting states and by persons authorized by the commission.

ARTICLE VI - ELIGIBLE PARTIES AND ENTRY INTO FORCE

1. The states of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin are eligible to become parties to this compact. Additional states may be eligible if approved by a majority of the compacting states.

2. This compact becomes effective, as to any eligible party state, when its legislative assembly enacts the compact into law.

3. An amendment to the compact becomes effective upon its enactment by the legislative assemblies of all compacting states.

ARTICLE VII - WITHDRAWAL, DEFAULT, AND TERMINATION

1. A compacting state may withdraw from the compact by enacting a statute repealing the compact, but the withdrawal may not become effective until two years after the enactment of such statute. A withdrawing state is liable for any obligation that it incurred on account of its party status, up to the effective date of withdrawal, except that if the withdrawing state has specifically undertaken or committed itself to any performance of an obligation extending beyond the effective date of withdrawal, it remains liable to the extent of the obligation.

2. If a compacting state at any time defaults in the performance of its obligations, assumed or imposed, in accordance with this compact, all rights, privileges, and benefits conferred by this compact or by agreements made under the compact are suspended from the effective date of the default, as fixed by the commission. The commission shall stipulate the conditions and maximum time for compliance under which the defaulting state may resume its regular status. Unless the default is remedied under the stipulations and within the time period set by the commission, the compact may be terminated with respect to the defaulting state by affirmative vote of a majority of the other member states. A defaulting state may be reinstated by performing all acts and obligations required by the commission.

ARTICLE VIII - SEVERABILITY AND CONSTRUCTION

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 compacting state or of the United States or its applicability to any person or circumstance is held invalid, the validity of the remainder of the compact and its applicability to any person or circumstance may not be affected. If the compact is found to be contrary to the constitution of any compacting state, the compact remains 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. The provisions of the compact must be liberally construed to effectuate the purpose of the compact.

Source: S.L. 2019, ch. 3, § 6, effective July 1, 2019.

15-10.5-02. Midwestern higher education commission - Terms - Vacancies.

1. The members of the midwestern higher education commission representing this state are:
   1. The governor or the governor’s designee.
   2. One member of the senate and one member of the house of representatives, appointed by the chairman of the legislative management.
   3. Two at-large members, one of whom must be knowledgeable about the field of higher education, appointed by the governor.
2. The term of each legislative appointee is two years. One initial at-large member must be appointed for a term of two years and the other for a term of four years. Thereafter, the term of each at-large member is four years.
3. If a member vacates the position to which the member was appointed, the position must be filled for the remainder of the unexpired term in the same manner as that position was filled initially.

Source: S.L. 2019, ch. 3, § 6, effective July 1, 2019.

15-11-01. State university — Where located.

The state university of North Dakota established and located at the city of Grand Forks shall be the university of the state.

Source: S.L. 1883 Sp., ch. 40, § 1; N.D. Const., § 215; R.C. 1895, § 875; R.C. 1899, § 875; R.C. 1905, § 1040; C.L. 1913, § 1539; R.C. 1943, § 15-1101.

Cross-References.

Control and administration of university by state board of higher education, see N.D.C.C. § 15-10-01.

Establishment and location of university, see N.D. Const., art. IX, § 12.

Patenting inventions by faculty, officials and employees, see N.D.C.C. ch. 47-28.

15-11-02. Colleges may be united with university. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-11-02.1. Supervision of the junior college located at Devils Lake. [Repealed]

Repealed by S.L. 1999, ch. 439, § 12.

15-11-03. Powers of president and faculty. [Repealed]

Repealed by S.L. 2001, ch. 162, § 7.

15-11-04. Objects and departments of the university. [Repealed]

Repealed by S.L. 1991, ch. 162, § 1.

15-11-05. Courses of instruction. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-11-06. Scandinavian language to be taught. [Repealed]

Repealed by S.L. 1991, ch. 162, § 1.

15-11-07. Persons eligible as students. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-11-08. Geological and natural history survey — Duty of board. [Repealed]

Repealed by S.L. 1989, ch. 646, § 12.

Note.

For present provisions, see N.D.C.C. ch. 54-17.4.

15-11-09. State geologist — Appointment of deputy. [Repealed]

Repealed by S.L. 1989, ch. 646, § 12.

Note.

For present provisions, see N.D.C.C. ch. 54-17.4.

15-11-10. Salary of state geologist and deputy state geologist. [Repealed]

Repealed by S.L. 1953, ch. 128, § 1.

15-11-11. Geological survey — Extent — Analysis. [Repealed]

Repealed by S.L. 1989, ch. 646, § 12.

Note.

For present provisions, see N.D.C.C. ch. 54-17.4.

15-11-11.1. Authority of the state geologist — Acquisition of geophysical data — Confidentiality. [Repealed]

Repealed by S.L. 1989, ch. 646, § 12.

Note.

For present provisions, see N.D.C.C. ch. 54-17.4.

15-11-12. Geological map of the state. [Repealed]

Repealed by S.L. 1989, ch. 646, § 12.

Note.

For present provisions, see N.D.C.C. ch. 54-17.4.

15-11-13. Specimens collected — Exhibited — Exchanged. [Repealed]

Repealed by S.L. 1989, ch. 646, § 12.

Note.

For present provisions, see N.D.C.C. ch. 54-17.4.

15-11-14. Biennial report by state board of higher education on surveys. [Repealed]

Repealed by S.L. 1989, ch. 646, § 12.

Note.

For present provisions, see N.D.C.C. ch. 54-17.4.

15-11-15. Tests of state mineral and other resources — Duty of state board of higher education — Bulletins published.

The state board of higher education shall provide at the university of North Dakota suitable means for experimentation and practical testing of the mineral and other allied resources of the state in order to demonstrate their fitness for mining and manufacturing industries.

Source: S.L. 1907, ch. 236, § 1; C.L. 1913, § 1573; R.C. 1943, § 15-1115; S.L. 2001, ch. 162, § 2.

15-11-16. Discoveries at school of mines and substations to be patented and assigned. [Repealed]

Repealed by S.L. 1961, ch. 296, § 5.

15-11-17. Penalty for failure to patent discovery or to transfer patent. [Repealed]

Repealed by S.L. 1961, ch. 296, § 5.

15-11-18. Assignment of patent or permitting use thereof. [Repealed]

Repealed by S.L. 1961, ch. 296, § 5.

15-11-19. Library of law college — Supervision. [Repealed]

Repealed by S.L. 2001, ch. 162, § 7.

15-11-20. Annual inventory of law library. [Repealed]

Repealed by S.L. 1983, ch. 200, § 1.

15-11-21. Board of higher education to furnish supreme court reports to law school. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-11-22. State university alumni building — Construction on campus — Power of state board of higher education.

The alumni association of the university of North Dakota, a corporation, with the advice and consent of the state board of higher education, may select a space and plat of ground upon the campus of the university, not exceeding three hundred feet [91.44 meters] in length and one hundred fifty feet [45.72 meters] in width, for the purpose of erecting and maintaining thereon an alumni building by the alumni association, to cost not less than seventy-five thousand dollars.

Source: S.L. 1921, ch. 114, § 1; 1925 Supp., § 1577b1; R.C. 1943, § 15-1122.

15-11-23. Alumni building — Application for site — Duty of state board of higher education. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-11-24. Alumni building — Authority as to building on campus — Rules and regulations. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-11-25. Alumni building — Contract for heat and light. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-11-26. Alumni building — Title to site — Title to building.

The title to the ground selected by the alumni association for an alumni building must remain forever in the state, subject to the purposes specified. The title to the alumni building must remain in the alumni association until it may be relinquished or granted formally to the state.

Source: S.L. 1921, ch. 114, § 5; 1925 Supp., § 1577b5; R.C. 1943, § 15-1126; S.L. 1971, ch. 167, § 1.

15-11-27. Transfer of license of university radio station authorized. [Repealed]

Repealed by S.L. 2001, ch. 162, § 7.

15-11-28. Hockey admission receipts may be pledged for purchase of artificial ice equipment. [Repealed]

Repealed by S.L. 2001, ch. 162, § 7.

15-11-29. Matching funds for bequests to university of North Dakota.

In any case wherein any person, corporation, or limited liability company shall have made any gift to the university of North Dakota, whether by donation, bequest, devise, or otherwise, upon condition that the university of North Dakota must raise a matching, equivalent, or counterpart fund held to the same purposes as the original gift in order to enjoy such gift, the university of North Dakota alumni association, incorporated, is hereby empowered to raise such equivalent, matching, or counterpart fund by any practicable and lawful means, and to hold such equivalent, matching, or counterpart fund so raised in trust for the same purposes as the original gift; and such equivalent, matching, or counterpart fund shall be deemed both in law and equity to have been raised by the university of North Dakota. For this purpose the university of North Dakota alumni association, incorporated, is hereby declared to be an agent of the university of North Dakota. Nothing in this section shall be construed to allow the university of North Dakota alumni association, incorporated, any power or authority to alter or change the provisions of any instrument of trust or agreement wherein it is named custodian or trustee of any funds or securities or given any legal power with respect thereto, and nothing in this section shall be deemed to permit the university of North Dakota alumni association, incorporated, to enlarge, amend, or derogate from any conditions such instrument of trust or agreement imposes, or to devote any trust funds in its possession to any purpose other than those stipulated by the settlers of such trust.

Source: S.L. 1957, ch. 124, § 1; R.C. 1943, 1957 Supp., § 15-1129; S.L. 1993, ch. 54, § 106.

15-11-30. Sale of university land to fraternal societies.

The state board of higher education is hereby authorized to plat and replat, and after such platting, to sell and convey tracts of land lying within the east thirty-one acres [12.55 hectares] of the north half of the southwest quarter of section five in township one hundred fifty-one north, range fifty west of the fifth meridian, in Grand Forks County, North Dakota, of such size as may in the judgment of said board be for the best interests of the university, at such prices as may be determined by said board to be adequate and proper in the light of the cost thereof and of the improvements provided, to fraternities, sororities, and institutional dormitory corporations for use solely and only as sites for fraternity houses, sorority houses, dormitories, and like buildings, for the housing of students and faculty of the university of North Dakota.

All such deeds of conveyance must contain a provision for the reversion of the title thereto to the state of North Dakota should said premises ever be used for purposes other than those above provided.

Conveyances of said property must be executed in the name of the state of North Dakota by the governor and attested by the secretary of state, under the great seal of the state of North Dakota, upon resolution duly adopted by the state board of higher education and filed with the secretary of state.

Source: S.L. 1957, ch. 125, §§ 1 to 3; R.C. 1943, 1957 Supp., § 15-1130.

Collateral References.

Regulation as to fraternities and similar associations connected with educational institutions, 10 A.L.R.3d 389.

15-11-31. Assembly hall on university campus. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-11-32. Child welfare research bureau — Establishment — Director.

A child welfare research bureau is hereby established. The bureau must be administered and funded by and in conjunction with the university of North Dakota. The university shall appoint a director.

Source: S.L. 1987, ch. 205, § 1; 2001, ch. 162, § 3.

15-11-33. Functions.

The purpose of the child welfare research bureau is to conduct applied research on matters pertaining to the welfare of children and youth in this state. The bureau may render services consistent with its purpose, including:

1. Compilation, analysis, publication, and dissemination of statistics, summaries, and other information relating to research conducted on matters pertaining to the welfare of children and youth.
2. Technical assistance to public and nonprofit private agencies and organizations to assist them in planning, improving, developing, and carrying out programs and activities that serve children and youth.

Source: S.L. 1987, ch. 205, § 2.

15-11-34. Gifts and grants. [Repealed]

Repealed by S.L. 2001, ch. 162, § 7.

15-11-35. Fetal alcohol syndrome center established.

1. There is established at the university of North Dakota school of medicine a fetal alcohol syndrome center.
2. The state board of higher education shall appoint a director of the fetal alcohol syndrome program. The director shall prepare an annual report on the status of fetal alcohol syndrome in North Dakota.
3. The fetal alcohol syndrome center shall develop prevention activities in groups that are at high risk for fetal alcohol syndrome. The center may enlist the aid of other agencies, persons, or organizations in its activities.
4. The responsibilities of the fetal alcohol syndrome program include:
   1. Developing incidence and prevalence data on fetal alcohol syndrome in this state.
   2. Conducting research on prevention and management of fetal alcohol syndrome and maternal alcohol ingestion during pregnancy.
   3. Developing a center for the evaluation of children with fetal alcohol syndrome from this state in cooperation with the child evaluation and treatment program at the university of North Dakota medical center and operating followup clinics as funding allows.
   4. Providing consultation and training across the state on fetal alcohol syndrome.
   5. Conducting other activities as may be directed by a state fetal alcohol syndrome task force.
5. The fetal alcohol syndrome center shall coordinate a study of the prevalence of fetal alcohol syndrome in school-age children in this state. The study must review the prevalence of fetal alcohol syndrome in both rural and urban North Dakota communities, including North Dakota Indian reservations.

Source: S.L. 1993, ch. 167, §§ 1, 2; 2001, ch. 162, § 4.

15-11-36. Evaluation of children with fetal alcohol syndrome.

The child evaluation and treatment program at the university of North Dakota medical center shall develop a clinic to provide both initial diagnostic assessment and re-evaluation of children with fetal alcohol syndrome. The diagnostic assessment must include a comprehensive multidisciplinary assessment of psychological, speech and language, educational, occupational therapy, physical therapy, optometric, and audiological evaluations. Re-evaluations must be individualized according to a child’s needs. The center shall provide consultative services to schools, community agencies, and parents to assist in serving children diagnosed with fetal alcohol syndrome.

Source: S.L. 1993, ch. 167, § 3; 2001, ch. 162, § 5.

15-11-37. Acceptance of gifts by dean of medical school.

Notwithstanding any other provisions of law, the dean of the university of North Dakota medical school may accept and receive gifts, grants, bequests, and donations that are hereby appropriated for use by the university of North Dakota medical school.

Source: S.L. 1997, ch. 32, § 19.

15-11-38. Ralph Engelstad arena.

The hockey arena constructed on the campus of the university of North Dakota with funds donated by Ralph and Betty Engelstad is officially named the Ralph Engelstad arena.

Source: S.L. 2003, ch. 135, § 1.

15-11-39. Nursing education consortium — Continuing appropriation.

1. The university of North Dakota college of nursing shall establish and administer a nursing education consortium for the purpose of addressing common concerns in nursing education which produce obstacles in meeting the state’s current and future nursing needs, with a focus on the specific needs of rural communities.
2. The consortium membership must include representation of the university of North Dakota college of nursing, the university of North Dakota center for rural health, and the board of nursing. In addition, each nursing program in this state which is approved by the board of nursing and each nursing program with approval pending which is located in this state must be invited to have representation in the consortium. The consortium members may invite interested persons to join the consortium membership or to participate in consortium activities. Interested persons may include the North Dakota nurses association nursing practice council leadership team; North Dakota hospital association; workforce partners, including job service North Dakota, the department of commerce division of workforce development, rural leadership of North Dakota, and the North Dakota workforce development council; employer partners; and other interested public and private parties. The consortium members shall select the chairman.
3. The consortium shall advise university of North Dakota officials regarding strategies to address common concerns in nursing education which produce obstacles in meeting the state’s current and future nursing needs, specific needs of rural communities, and development of a strategic plan for the ongoing activities of the simulation laboratory initiative, including goals and benchmarks for the implementation of the simulation laboratory initiative.
4. The consortium may contract with a third party in conducting the duties of the consortium and may seek, receive, and accept from any source aid or contributions of money, property, labor, or other things of value to be held, used, and applied to carry out the purposes of the consortium. Any money received by the consortium as gifts, grants, or donations is appropriated as a continuing appropriation for the purpose of funding the simulation laboratory program and the activities of the consortium.

Source: S.L. 2007, ch. 155, § 1; 2009, ch. 159, § 1; 2009, ch. 482, § 7.

Note.

Section 3 of chapter 155, S.L. 2007 provides: “ STATE BOARD OF HIGHER EDUCATION—LEGISLATIVE INTENT. It is the intent of the legislative assembly that the state board of higher education establish and implement a policy and procedure for institutions of higher education under the control of the board to participate in systemwide initiatives.”

Section 4 of chapter 155, S.L. 2007 provides: “ COMPETITIVE GRANT ELIGIBILITY—LEGISLATIVE INTENT. It is the intent of the legislative assembly that the nursing education consortium apply for public and private grants to assist in financing section 1 of this act and that state agencies interpret grant application guidelines broadly to allow the nursing education consortium to be eligible to apply for grants.”

15-11-40. State energy research center — Report. [Expires June 30, 2027]

1. The state energy research center at the university of North Dakota energy and environmental research center is created for the purpose of conducting exploratory, transformational, and innovative research that advances future energy opportunities and benefits the state’s economy and environment through:
   1. Exploratory research of technologies and methodologies that facilitate the prudent development, and clean and efficient use, of the state’s energy resources;
   2. Greater access to energy experts for timely scientific and engineering studies to support the state’s interests; and
   3. Education and outreach related to the state’s energy resources.
2. The state energy research center shall report all research activities and accomplishments annually to the interim legislative energy development and transmission committee and to the industrial commission. Upon request, the state energy research center shall report all research activities and accomplishments to the appropriations committees of the legislative assembly.
3. To effectuate the purposes of this section, the energy and environmental research center may:
   1. Select the research topics and projects to be pursued;
   2. Enter contracts or agreements with other North Dakota institutions of higher education to support select research topics and projects;
   3. Enter contracts or agreements with federal, private, and nonprofit organizations to carry out selected research topics and projects; and
   4. Accepting donations, grants, contributions, and gifts from any source to carry out the selected research topics and projects.
4. The state energy research center may not conduct research or pursue projects that will result in the exploration, storage, treatment, or disposal of high-level radioactive waste in North Dakota.

Source: S.L. 2019, ch. 139, § 1, effective July 1, 2019; 2021, ch. 42, § 21, eff July 1, 2021; Expired by 2019, ch. 139, § 3, as amended by 2021 ch. 42, § 21, eff June 30, 2027.

15-12-01. Location and name.

The North Dakota state university of agriculture and applied science must be located in the city of Fargo in the county of Cass. Wherever the term agricultural college appears in this code, it means the North Dakota state university of agriculture and applied science.

Source: N.D. Const., § 215; S.L. 1890, ch. 160, § 1; R.C. 1895, § 934; R.C. 1899, § 934; R.C. 1905, § 1100; C.L. 1913, § 1604; R.C. 1943, § 15-1201; S.L. 1961, ch. 152, § 1.

Cross-References.

Control and administration by state board of higher education, see N.D.C.C. § 15-10-01.

Control of state, see N.D. Const., art. VIII, § 5.

Establishment and location of university, see N.D. Const., art. IX, § 12.

Patenting inventions by faculty, officials and employees, see N.D.C.C. ch. 47-28.

15-12-02. Objects and courses of instruction. [Repealed]

Repealed by S.L. 1991, ch. 162, § 1.

15-12-03. President — Duties. [Repealed]

Repealed by S.L. 2001, ch. 162, § 7.

15-12-04. Faculty — Rules and regulations. [Repealed]

Repealed by S.L. 2001, ch. 162, § 7.

15-12-05. Faculty — Annual report to board. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-12-06. Treasurer — Bond. [Repealed]

Repealed by S.L. 1999, ch. 113, § 24.

15-12-06.1. Treasurer to receive funds appropriated by Congress.

Pursuant to section 2 of an Act of Congress of the United States signed August 30, 1890, providing for the further endowment and support of colleges of agriculture and the mechanic arts, the treasurer of the North Dakota state university of agriculture and applied science, Fargo, North Dakota, is hereby designated as the officer to receive from the secretary of the treasury all funds appropriated for North Dakota by the Congress under authority of the said Act and of any amendments to said Act, and of any enactments supplementary to said Act. The treasurer shall make quarterly reports of all funds so received to the director of the budget.

Source: S.L. 1951, ch. 126, § 1; R.C. 1943, 1957 Supp., § 15-12061; S.L. 1965, ch. 358, § 16.

15-12-07. Land grants — Acceptance.

The grants of land accruing to this state by virtue of an Act of Congress donating public lands for the use and support of agricultural colleges, approved February 22, 1889, are accepted with all the conditions and provisions in said Act contained.

Source: N.D. Const., § 205; S.L. 1890, ch. 160, § 18; R.C. 1895, § 949; R.C. 1899, § 949; R.C. 1905, § 1113; C.L. 1913, § 1617; R.C. 1943, § 15-1207.

15-12-08. Legislative assent to grant by Congress.

The assent of the legislative assembly is hereby given in pursuance of the requirements of section 9 of said Act of Congress, approved March 2, 1887, to the grant of money therein made and to the establishing of an agricultural experiment station in accordance with section 1 of said Act, and assent is hereby given to carrying out the provisions of such Act.

Source: S.L. 1890, ch. 160, § 17; R.C. 1895, § 948; R.C. 1899, § 948; R.C. 1905, § 1116; C.L. 1913, § 1620; R.C. 1943, § 15-1208; S.L. 1989, ch. 34, § 17.

15-12-09. Legislative assent to certain Acts of Congress and acceptance of grants thereunder.

The legislative assent of the state of North Dakota is hereby given to:

1. The provisions of the Act of Congress entitled, “An Act to authorize the more complete endowment of agricultural experiment stations, and for other purposes” approved February 24, 1925.
2. The provisions of the Act of Congress entitled, “To provide for the further development of agricultural extension work between the agricultural colleges in the several states receiving the benefits of the act entitled ‘An Act donating public lands to the several states and territories which may provide colleges for the benefit of agriculture and mechanic arts’, approved July 2, 1862, and all acts supplemental thereto, and the United States department of agriculture” approved May 26, 1928.

Source: S.L. 1927, ch. 1, § 1; 1929, ch. 2, § 1; R.C. 1943, § 15-1209.

15-12-10. Experiment station — Administered by board — Purpose.

The agricultural experiment station established in connection with the North Dakota state university of agriculture and applied science must be operated under the direction of the state board of higher education for the purpose of conducting experiments in agriculture according to the provisions of section 1 of the Act of Congress approved March 2, 1887, entitled “An act to establish agricultural experiment stations in connection with the colleges established in the several states under the provisions of an act approved July 2, 1862, and of the acts supplementary thereto”.

Source: S.L. 1890, ch. 160, § 16; R.C. 1895, § 947; R.C. 1899, § 947; R.C. 1905, § 1115; C.L. 1913, § 1619; R.C. 1943, § 15-1210.

Cross-References.

Dickinson research center, see N.D.C.C. § 4-05.1-06.

North central research center, see N.D.C.C. § 4-05.1-12.

Williston research center, see N.D.C.C. § 4-05.1-07.

15-12-11. List of North Dakota state university publications furnished to county auditor. [Repealed]

Repealed by S.L. 2011, ch. 121, § 1.

15-12-12. North Dakota state university services and publications — Publication of information. [Repealed]

Source: S.L. 1915, ch. 3, § 2; 1925 Supp., § 1618a7; R.C. 1943, § 15-1212; S.L. 1987, ch. 206, § 1; repealed by 2017, ch. 128, § 1, effective August 1, 2017.

15-12-13. Economic survey to be made on completion of topographic maps. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-12-14. Who shall be state director of economic survey. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-12-15. State director to collect samples. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-12-16. Economic maps to be published. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-12-17. Publish reports of North Dakota agricultural experiment station. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-12-18. Construction of chapter. [Repealed]

Repealed by S.L. 1989, ch. 646, § 12.

Note.

For present provisions, see N.D.C.C. ch. 54-17.4.

15-12-19. Name of survey. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-12-20. Veterinary diagnostic laboratory.

The veterinary diagnostic laboratory is located at and is under the supervision and direction of the North Dakota state university of agriculture and applied science. The laboratory shall conduct diagnosis of farm and domestic animals and poultry suspected of having diseases and report the findings as directed. The laboratory also shall perform rabies tests as required by section 23-36-03.

Source: S.L. 1953, ch. 130, §§ 1 to 3; R.C. 1943, 1957 Supp., § 15-1220; 2009, ch. 160, § 1.

Cross-References.

Professor of veterinary science to act as bacteriologist and consulting veterinarian to livestock sanitary board, see N.D.C.C. § 36-01-07.

15-12-21. State toxicologist — Duties — Fees — Confidentiality. [Repealed]

Repealed by S.L. 1993, ch. 236, § 9.

15-12-22. Economic feasibility institute — Establishment — Director.

There is established an economic feasibility institute to be administered in conjunction with North Dakota state university of agriculture and applied science. The university shall appoint a director of the economic feasibility institute.

Source: S.L. 1989, ch. 197, § 1; 2001, ch. 162, § 6.

15-12-23. Purpose of the institute.

The purpose of the economic feasibility institute is to initiate, encourage, and enhance the commercial development of both agricultural and nonagricultural products, processes, commodities, and services in North Dakota through the supervision and performance of economic feasibility research.

Source: S.L. 1989, ch. 197, § 2.

15-12-24. Powers and duties of the institute.

The institute shall render services and exercise powers consistent with its purpose which include, but are not limited to:

1. Providing prefeasibility analyses and reports, including:
   1. Initial consultations;
   2. The establishment of levels of funding participation, the level of analysis, and the duration of services to be provided under sections 15-12-22 through 15-12-26; and
   3. Information dissemination activities.
2. Conducting short-turnaround economic feasibility studies and business and market plan analyses.
3. Conducting complete feasibility studies directed at analyzing the technical and economic feasibility of approved projects.
4. Developing and maintaining data bases and making projections to aid state and local planning and policy development.
5. Evaluating alternatives for providing and financing public services, including community leadership training.
6. Collaborating for expertise and analysis with other components of North Dakota state university of agriculture and applied science, other universities and colleges, and other public entities and the private sector. The institute may not duplicate services or capabilities available through or provided by other public entities.
7. Contracting for professional and other services necessary to carry out the purpose of sections 15-12-22 through 15-12-26.

Source: S.L. 1989, ch. 197, § 3.

15-12-25. Grants and contributions — Continuing appropriation.

The economic feasibility institute may contract for, accept, and receive grants, gifts, and contributions of money, property, services, or other things of value from individuals, the federal government, limited liability companies, private and public corporations, political subdivisions of the state, and other sources. All revenue received from gifts, grants, and contributions is hereby appropriated for use by the economic feasibility institute in carrying out the provisions of sections 15-12-22 through 15-12-26.

Source: S.L. 1989, ch. 197, § 4; 1991, ch. 95, § 24; 1993, ch. 42, § 14; 1993, ch. 54, § 106; 2011, ch. 54, § 2.

15-12-26. Access to institute records.

Materials and data submitted to, or made or received by, the economic feasibility institute, to the extent that the materials or data consist of trade secrets, or commercial, financial, or proprietary information of individuals and entities contracting with the institute or receiving institute 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.

Source: S.L. 1989, ch. 197, § 5.

15-12-27. Eighteenth street development fund. [Repealed]

Repealed by S.L. 2007, ch. 3, § 28.

15-12-28. Dairy diagnostic teams.

The North Dakota state university extension service shall appoint regional dairy diagnostic teams consisting of agricultural business management professionals, dairy extension specialists, and dairy industry partners such as nutrition specialists, reproductive specialists, and animal health specialists. At the request of a dairy producer, a dairy diagnostic team shall conduct a site visit, offer the dairy producer educational and technological assistance, and develop a strategic plan to enhance the producer’s productivity and profitability.

Source: S.L. 1999, ch. 21, § 9.

15-12-29. Beef systems center of excellence.

1. North Dakota state university may establish a beef systems center of excellence in the department of animal and range science. The beef systems center of excellence may:
   1. Create a model for the development of an integrated meat processing industry;
   2. Enhance North Dakota state university’s ability to provide research related to:
      1. The effects of genetics, management, and nutrition regimens on carcass yield, quality, and sensory characteristics;
      2. Food safety and nutrition of the resulting meat products;
      3. New and emerging technologies in slaughter, fabrication, processing, and value-added products; and
      4. Meat and meat product marketing; and
   3. Provide training, education, and outreach opportunities to students, businesses, and beef cattle producers.
2. North Dakota state university may accept gifts, grants, and donations from public and nonpublic sources to support and benefit the creation and efforts of the beef systems center of excellence, and any gifts, grants, and donations so received are appropriated to North Dakota state university for purposes of the beef systems center of excellence.

Source: S.L. 2003, ch. 136, § 1.

15-12.1-01. Definitions.

In this chapter, unless the context otherwise requires:

1. “Agricultural experiment station” means the North Dakota state university main research center, the Dickinson research extension center, the Williston research extension center, the Langdon research extension center, the central grasslands research extension center, the Carrington research extension center, the Hettinger research extension center, the north central research extension center, the agronomy seed farm, and any other department or agency designated by the state board of higher education.
2. “Center director” means the administrator in charge of a research or research extension center.
3. “Station director” means the administrator of the agricultural experiment station.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-02. Agricultural experiment station.

The state board of agricultural research and education and the president of North Dakota state university shall control and administer the North Dakota agricultural experiment station subject to the supervision of the state board of higher education. Funds appropriated to the agricultural experiment station may not be commingled with funds appropriated to North Dakota state university. Appropriation requests to defray expenses of the agricultural experiment station must be separate from appropriation requests to defray expenses of North Dakota state university.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-03. Center directors — Research and research extension centers — Records and information.

The station director has jurisdiction over the research and research extension centers of the agricultural experiment station. The center director shall administer each research or research extension center. The center director shall report to the station director. Each research or research extension center shall keep detailed records of all research activities. The research or research extension center shall publish and disseminate research results and information for the benefit of this state.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-04. Reports.

Each center director shall submit an annual report to the station director. Each report must set forth in detail the investigations and experiments made during the preceding year, recommendations for the welfare of the center, the financial condition of the center, how all moneys have been expended during the preceding year, and the results of all experiments that have been completed during the preceding year. By September first of each year, the station director shall submit these reports, with a report of the North Dakota state university main research center, to the state board of agricultural research and education and the state board of higher education.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-05. North Dakota state university main research center position adjustments — Budget section report.

The North Dakota state university main research center must be located on the campus of North Dakota state university of agriculture and applied science. The center is the administrative location of the agricultural experiment station. The center shall conduct research and coordinate all research activities of the agricultural experiment station. The research must have, as a purpose, the development and dissemination of technology important to the production and utilization of food, feed, fiber, and fuel from crop and livestock enterprises. The research must provide for the enhancement of quality of life, sustainability of production, and protection of the environment. The station director may adjust or increase full-time equivalent positions to carry out activities to accomplish the mission of the agricultural experiment station, subject to the availability of funds. All full or partial positions must be separate from North Dakota state university. The station director shall report annually to the office of management and budget and to the budget section any adjustments or increases made under this section. The center may conduct baseline research, including production and processing in conjunction with the research and extension centers of the state, regarding industrial hemp and other alternative industrial use crops. The center may collect feral hemp seed stock and develop appropriate adapted strains of industrial hemp which contain less than three-tenths of one percent tetrahydrocannabinol in the dried flowering tops. The agriculture commissioner shall monitor the collection of feral hemp seed stock and industrial hemp strain development and shall certify appropriate stocks for licensed commercial cultivation.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-06. Dickinson research extension center.

The Dickinson research extension center must be located in or near Dickinson in Stark County. The center shall conduct research:

1. On increasing the carrying capacity of native rangeland, with emphasis on conservation and preservation for future generations;
2. On grass production to determine how to best compensate for the vagaries of the weather as it influences forage production in the agriculture of western North Dakota;
3. At the ranch location in Dunn County with beef cattle and swine on breeding, feeding, management, and disease control for the benefit of livestock producers of western North Dakota and the entire state; and
4. Designed to increase productivity of all agricultural products of the soil by maintaining or improving the soil resource base in the agricultural region of southwestern North Dakota by:
   1. The identification of adapted crop species and superior crop cultivars;
   2. Propagation and distribution of selected seed stock; and
   3. Development of profitable cropping systems that achieve the necessary balance between profitability and conservation of all natural resources.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-07. Williston research extension center.

The Williston research extension center must be located in or near Williston in Williams County. The center shall conduct research designed to increase productivity of all agricultural products of the soil while maintaining or improving the soil resource base in the agricultural region of northwestern North Dakota by:

1. The identification of adapted crop species and superior crop cultivars;
2. Propagation and distribution of selected seed stocks; and
3. Development of profitable cropping systems that achieve the necessary balance between profitability and conservation of all natural resources.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-08. Langdon research extension center.

The Langdon research extension center must be located in or near Langdon in Cavalier County. The center shall conduct research designed to increase productivity of all agricultural products of the soil while maintaining or improving the soil resource base in the agricultural region of northeastern North Dakota by:

1. The identification of adapted crop species and superior crop cultivars;
2. Propagation and distribution of selected seed stocks; and
3. Development of profitable cropping systems that achieve the necessary balance between profitability and conservation of all natural resources.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-09. Central grasslands research extension center.

The central grasslands research extension center must be located within an area bounded by the Missouri River on the west and the James River on the east. The center shall conduct research:

1. Designed to fulfill needs within an area bounded by the Missouri River on the west and the James River on the east; and
2. To increase the range-carrying capacity of native range, with emphasis on:
   1. The conservation and preservation for future generations;
   2. The stabilization of grass production to discover how to best compensate for the vagaries of the weather and precipitation as it influences forage production in agriculture;
   3. The identification of the impact of different management systems upon beef production in the central region of the state; and
   4. The exploration of increased use of crop residues and byproducts for the maintenance of the cowherd.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-10. Carrington research extension center.

The Carrington research extension center must be located in or near Carrington in Foster County. The center shall conduct research designed to:

1. Determine the potential of irrigated agriculture in the region proposed for irrigation development in the state which must be related to both crop and livestock production; and
2. Increase productivity of all agricultural products of the soil while maintaining or improving the soil resource base in the agricultural region of east central North Dakota by:
   1. The identification of adapted crop species and superior crop cultivars;
   2. Propagation and distribution of selected seed stocks; and
   3. Development of profitable cropping and integrated crop and livestock systems that achieve the necessary balance between profitability and conservation of all natural resources.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-11. Hettinger research extension center.

The Hettinger research extension center must be located in or near Hettinger in Adams County. The center shall develop the best available technology in breeding, feeding, management, and disease control pertinent to the production of sheep in the state. The center shall conduct research designed to increase productivity of all agricultural products of the soil while maintaining or improving the soil resource base in southwestern North Dakota by:

1. The identification of adapted crop species and superior crop cultivars;
2. Propagation and distribution of selected seed stocks; and
3. Development of profitable cropping systems that achieve the necessary balance between profitability and conservation of all natural resources.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-12. North central research extension center.

The north central research extension center must be located in or near Minot in Ward County. The center shall conduct research designed to increase productivity of all agricultural products of the soil while maintaining or improving the soil resource base in the agricultural region of north central North Dakota by:

1. The identification of adapted crop species and superior crop cultivars;
2. Propagation and distribution of selected seed stocks; and
3. Development of profitable cropping systems which achieve the necessary balance between profitability and conservation of all natural resources.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-13. Agronomy seed farm — Investment of reserve income fund.

At the direction of the center director of the agronomy seed farm with the approval of the station director, the state treasurer shall provide for the investment of available moneys in the agronomy seed farm reserve income fund. The state treasurer shall credit the investment income to the agronomy seed farm reserve income fund. The moneys in the fund may be spent only within the limits of legislative appropriation.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-14. State board of agricultural research and education — Membership — Terms.

1. The state board of agricultural research and education consists of:
   1. The president of North Dakota state university or the president’s designee;
   2. The vice president of agricultural affairs at North Dakota state university, who serves in an ex officio nonvoting capacity;
   3. The administrator of the agricultural experiment station, who serves in an ex officio nonvoting capacity;
   4. The five persons appointed to the state board of agricultural research and education by the ag coalition;
   5. The five persons appointed to the state board of agricultural research and education by the extension service’s multicounty program units;
   6. The agriculture commissioner, who serves in an ex officio nonvoting capacity;
   7. The director of the North Dakota state university extension service, who serves in an ex officio nonvoting capacity; and
   8. Two members of the legislative assembly appointed by the chairman of the legislative management. The chairman shall appoint one member from each political faction. The terms of members are for two years and members may be reappointed. The legislative council shall pay the compensation and expense reimbursement for the legislative members.
2. 1. The initial five members appointed by the ag coalition shall select their terms by lot so that one member serves for one year, one member serves for two years, one member serves for three years, one member serves for four years, and one member serves for five years.
   2. The initial five members appointed by the extension service’s multicounty program units shall select their terms by lot so that one member serves for one year, one member serves for two years, one member serves for three years, one member serves for four years, and one member serves for five years.
3. At the completion of each initial term, the term of office for each member is four years, beginning on July first. An individual may be reappointed to a second four-year term.
4. 1. At least ninety days before the term of a member appointed by the ag coalition expires, the ag coalition shall provide to the state board of higher education a list of one or more names from which the state board of higher education shall appoint a successor. The state board of higher education shall ensure four out of the five seats are held by agricultural producers.
   2. At least ninety days before the term of a member appointed by the extension service’s multicounty program units expires, the units through their advisory groups shall provide to the state board of higher education a list of one or more names from which the state board of higher education shall appoint a successor. The state board of higher education shall ensure four out of the five seats are held by agricultural producers.
5. If an appointed position becomes vacant, the vacancy must be filled for the unexpired portion of the term in the same manner as the initial appointment except that the ninety-day requirement is waived. An individual appointed under this subsection is eligible to serve two full terms after completing the unexpired term for which the individual was appointed.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-15. Compensation of board members — Expenses.

Each appointed member of the state board of agricultural research and education is entitled to receive one hundred thirty-five dollars per day as compensation for the time actually spent devoted to the duties of office and is entitled to receive necessary expenses in the same manner and amounts as state officials for attending meetings and performing other functions of office.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-16. State board of agricultural research and education — Chairman — Meetings.

The state board of agricultural research and education shall elect one of its members annually to serve as chairman. The board shall meet at the times and locations designated by the chairman in consultation with the vice president of agricultural affairs at North Dakota state university.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-17. State board of agricultural research and education — Duties.

Within the policies of the state board of higher education, the state board of agricultural research and education is responsible for budgeting and policymaking associated with the agricultural experiment station and the North Dakota state university extension service. The state board of agricultural research and education shall:

1. Determine the causes of any adverse economic impacts on crops and livestock produced in this state;
2. Develop ongoing strategies for the provision of research solutions and resources to negate adverse economic impacts on crops and livestock produced in this state;
3. Develop proactive strategies for the extension service to fulfill the mission of improving the lives and livelihood of the citizens of North Dakota by providing research-based education;
4. Implement the strategies developed under subsections 2 and 3, subject to approval by the state board of higher education;
5. Develop, with the agricultural experiment station and the North Dakota state university extension service, an annual budget for the operations of these entities;
6. Develop a biennial budget request based on its prioritized needs list and submit that request to the president of North Dakota state university and the state board of higher education, and forward its prioritized needs list and request without modification to the office of management and budget and the appropriations committees of the legislative assembly;
7. Maximize the use of existing financial resources, equipment, and facilities to generate the greatest economic benefit from research and extension efforts and to promote efficiency;
8. Annually evaluate the results of research and extension activities and expenditures and report the findings to the legislative management and the state board of higher education;
9. Advise the president of North Dakota state university regarding the recruitment, selection, and performance of the vice president of agricultural affairs, the extension service director, and the station director; and
10. Provide a status report to the budget section of the legislative management.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-18. Agricultural research fund — Continuing appropriation.

The agricultural research fund is a special fund in the state treasury. Moneys in the fund are appropriated to the state board of agricultural research and education for purposes of agricultural research. Any interest earned by the fund must be returned to the fund.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-12.1-19. State board of agricultural research and education — Apportionment of research funds.

1. The state board of agricultural research and education may use up to ten percent of the moneys in the agricultural research fund, not to exceed fifty thousand dollars per year, for administrative expenses and annually shall apportion the remaining proceeds of the agricultural research fund as follows:
   1. Seventy percent to research activities affecting North Dakota agricultural commodities that account for at least two percent of the gross sales of all agricultural commodities grown or produced in the state. The percentage of the dollars available for each agricultural commodity under this section may not exceed the percentage that the gross sales of the agricultural commodity bear to the North Dakota gross sales of all agricultural commodities grown or produced during the previous year, as determined by the agricultural statistics service;
   2. Eighteen percent to research activities affecting North Dakota animal agriculture; and
   3. Twelve percent to research activities affecting new and emerging crops in North Dakota.
2. The state board of agricultural research and education shall solicit proposals for research from the public and private sectors and shall appoint committees to review the proposals and award the agricultural research grants on a competitive basis. Each committee must consist of a majority of agricultural producers selected in consultation with the agricultural commodity groups representing commodities that are the subjects of the proposed research and may include researchers and other individuals knowledgeable about the proposed area of research. Whenever possible, the committees shall require a grant recipient commit matching funds.
3. The state board of agricultural research and education shall develop policies regarding the award of research grants, including requirements for matching funds, cooperation with other in-state and out-of-state researchers, and coordination with other in-state and out-of-state proposed or ongoing research projects.

Source: S.L. 2017, ch. 61, § 8, effective July 1, 2017.

15-13-01. Normal schools — Location — Names.

The state normal schools established at Valley City in the county of Barnes, at Mayville in the county of Traill, at Minot in the county of Ward, and at Dickinson in the county of Stark, and any other normal schools that may be established by law, are the normal schools of the state. The name of the normal school at Valley City is Valley City state university, the name of the normal school at Mayville is Mayville state university, the name of the normal school at Minot is Minot state university, and the name of the normal school at Dickinson is Dickinson state university.

Source: N.D. Const., §§ 215, 216; S.L. 1891, ch. 89, § 1; R.C. 1895, § 905; R.C. 1899, § 905; R.C. 1905, § 1074; S.L. 1911, ch. 61, § 1; C.L. 1913, § 1578; R.C. 1943, § 15-1301; S.L. 1963, ch. 142, § 1; 1987, ch. 3, § 16.

Cross-References.

Control and administration of normal schools by state board of higher education, see § 15-10-01.

15-13-02. Purpose of normal schools. [Repealed]

Repealed by S.L. 1991, ch. 162, § 1.

15-13-03. Courses of study — Limitation. [Repealed]

Repealed by S.L. 1991, ch. 162, § 1.

15-13-04. President — Duties. [Repealed]

Repealed by S.L. 2001, ch. 162, § 7.

15-13-05. Annual report of normal school president. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-13-06. Degrees — Diplomas. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-13-07. Separate funds for allocations to several normal schools. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-13-08. State normal school students’ loan fund. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-13-09. Administration of students’ loan fund. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-13-10. Participation in students’ loan fund — Loans limited. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-13-11. Board of higher education to make rules governing students’ loan funds. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-13-12. Authorization to pledge rentals. [Repealed]

Repealed by S.L. 1999, ch. 157, § 4.

15-15-01. School of science — Location.

The school of science must be located at Wahpeton, North Dakota.

Source: S.L. 1890, ch. 158, § 1; R.C. 1895, § 923; R.C. 1899, § 923; S.L. 1903, ch. 50, § 1; R.C. 1905, § 1092; S.L. 1907, ch. 100, § 1; C.L. 1913, § 1596; 1925 Supp., § 1596; R.C. 1943, § 15-1501.

Cross-References.

Control and administration by state board of higher education, see N.D.C.C. § 15-10-01.

15-15-02. Object — Courses of instruction. [Repealed]

Repealed by S.L. 1991, ch. 162, § 1.

15-16-01. School of forestry — Location.

The school of forestry must be located at Dakota college, Bottineau, North Dakota.

Source: S.L. 1897, ch. 129, § 1; R.C. 1899, § 1020g; R.C. 1905, § 1231; S.L. 1907, ch. 100, § 1; C.L. 1913, § 1674; R.C. 1943, § 15-1601; 2009, ch. 155, § 2.

Cross-References.

State board of higher education to control and administer school of forestry, see N.D.C.C. § 15-10-01.

State forester, see N.D.C.C. § 4-19-01.

15-16-02. Object and courses of study. [Repealed]

Repealed by S.L. 1991, ch. 162, § 1.

15-17-01. Institutional holding associations authorized.

Nonprofit corporations to be known as institutional holding associations may be formed in the manner, for the purposes, and with the powers, obligations, and limitations prescribed by the applicable provisions of chapter 10-33, except as otherwise provided in this chapter.

Source: S.L. 1927, ch. 258, § 1; 1929, ch. 102, § 1; 1939, ch. 120, § 1; R.C. 1943, § 15-1701; S.L. 1957, ch. 103, § 5; 1957 Supp., § 15-1701; S.L. 1997, ch. 105, § 4.

15-17-02. Powers of institutional holding association.

An institutional holding association has the power:

1. To erect, equip, operate, manage, lease, or sell, as provided in this chapter, dormitories and their necessary equipment and appurtenances to be located upon the campus of the university, of the state university, or of any of the normal schools, or other state educational institutions, or upon sites in the vicinity of any such campus, purchased or otherwise acquired by the association, either as a new dormitory or as an addition to an existing dormitory at any such educational institution. Such dormitory at all times must be used and operated solely for educational purposes in connection with such educational institution.
2. To borrow money or contract debts for any or all of the purposes mentioned in subsection 1 and to issue bonds or other evidences of indebtedness therefor.
3. To secure the payment of evidences of indebtedness issued by it by mortgaging or pledging any or all of its property and the income therefrom.
4. To perform all acts necessary or convenient to exercise the powers granted in this section and to accomplish the purposes of this chapter and to obtain loans from federal lending corporations or other federal agencies upon such terms and conditions consistent with the law of this state as such lending corporations or agencies may impose.
5. To accept grants of money, materials, or property of any kind from the United States of America, or any agency thereof, upon such terms and conditions consistent with the law of this state as the United States or any such agency may impose, and the value of such grants must be omitted from consideration in determining the cost of site, building, and equipment.

Source: S.L. 1929, ch. 102, § 2; 1939, ch. 120, § 2; R.C. 1943, § 15-1702.

15-17-03. Limitations on powers of institutional holding association.

An institutional holding association is subject to the following limitations and restrictions:

1. Dormitories and their equipment and appurtenances must be erected and installed only according to plans and specifications therefor approved by the state board of higher education and at a cost for site, building, and equipment to be fixed by the board within the maximum limit provided in this section.
2. Such dormitories and their equipment and appurtenances must be owned, managed, operated, and conducted at all times by the association, its successors or assigns, solely for the educational purpose provided in this chapter in connection with one of the state educational institutions and must be under the control and supervision of the state board of higher education, and operated according to such rules and regulations, including rental charges, as must be prescribed by the board, but such rental charges may not be less than an amount sufficient to pay the interest on the bonded indebtedness and the serial bonds of the association as they mature.
3. An institutional holding association must be nonprofit sharing, shall issue no corporate stock, and no member of the association may have or acquire any divisional or other share or interest in any of its property.
4. The income of such association must be applied only to the payment of its debts and operating expenses, including necessary repairs and upkeep of its properties.
5. When all of the debts against any site, dormitory, and equipment are paid, all of the right, title, and interest of the association or its successors or assigns therein terminates immediately, and the same becomes the property of and must be conveyed to the state.
6. Any transfer or encumbrance of the property of an institutional holding association, except as permitted in this chapter, is prohibited and is null and void.
7. The amount of money borrowed or debts contracted by an institutional holding association may not exceed the aggregate cost of the site, dormitory, and equipment as fixed by the state board of higher education, and the payment thereof may not extend over a period of more than fifty years. The terms and conditions of such loans or debts, except as herein provided, must be fixed and approved by the board.
8. Dormitories must be erected only at the state educational institutions herein named within the cost limits for site, building, and equipment herein specified:
   1. One at or near the university at a cost of not more than two hundred thousand dollars.
   2. One at or near the North Dakota state university of agriculture and applied science at a cost of not more than two hundred thousand dollars.
   3. One at or near each of the normal schools located at Valley City, Mayville, Minot, and Dickinson at a cost of not more than one hundred fifty thousand dollars.
   4. One at or near the state school of science at Wahpeton at a cost of not more than one hundred thousand dollars.
   5. One at or near Dakota college, Bottineau at a cost of not more than fifty thousand dollars.
9. No dormitory may be erected upon the campus of any state educational institution until a written permit therefor first is granted and issued to the association by the state board of higher education. Such permit must describe the ground to be used and must provide that the dormitory to be erected thereon must be erected, owned, and operated only by the association, its successors and assigns. The association and its successors and assigns shall acquire no right, title, or interest in and to the campus site, the dormitory erected thereon, or the equipment thereof, except the right to operate the dormitory solely for the educational purposes, in the manner, and upon the terms and conditions provided in this chapter.

Source: S.L. 1927, ch. 258, § 3; 1929, ch. 102, § 2, subs. 8; 1939, ch. 120, § 2, subs. 8; R.C. 1943, § 15-1703; S.L. 1973, ch. 131, § 2; 2009, ch. 155, § 3.

15-17-04. Articles of incorporation of institutional holding associations.

The articles of incorporation of an institutional holding association must contain the following:

1. The name of the association.
2. The place, which must be within this state, where its business will be transacted, and the name of the educational institution in connection with which it will operate.
3. The term for which it is to exist.
4. A provision that it is formed under this chapter to carry out the objects and purposes thereof.
5. The number of its members and the condition of membership and succession in the association.
6. The number of its trustees, who may or may not be members, and the names and residences of the persons who shall serve as trustees until their successors are elected and qualified.

Source: S.L. 1927, ch. 258, § 2; 1929, ch. 102, § 3; 1939, ch. 120, § 3; R.C. 1943, § 15-1704.

15-17-05. State board of higher education may lease or purchase dormitory — State to incur no liability.

The state board of higher education has the power, and the state shall incur no liability whatever by reason of the exercise of the authority granted to the board of higher education by this chapter:

1. To take all necessary and proper action and proceedings to carry out the terms and provisions of this chapter and to do and perform all of the acts and duties imposed upon said board.
2. To lease from an institutional holding association, its successors or assigns, the site, dormitory, and equipment, or any of them, for a term of not to exceed fifty years, to be used and operated by the board solely for educational purposes in connection with one of the educational institutions enumerated in this chapter. Such lease must provide for the payment to such association, its successors or assigns, of a net cash annual rental of not more than fifteen percent of the cost of the site, dormitory, and equipment, but at least equal to an amount sufficient to pay the interest on the bonded indebtedness of the association and to retire its serial bonds as they mature. The annual rental shall be payable solely and exclusively out of the income derived from the operation of the dormitory.
3. To purchase from an institutional holding association, its successors or assigns, the site, dormitory, and equipment, or any of them, at a price not to exceed the cost of the same, to be used and operated by said board solely for educational purposes in connection with one of the educational institutions enumerated in this chapter. Such purchase price shall be payable for not more than fifty years, in annual installments of not more than fifteen percent of the purchase price, at a rate of interest of not more than five percent per annum, payable semiannually, and shall be payable solely and exclusively out of the income derived from the operation of such dormitory.

Source: S.L. 1929, ch. 102, § 4; 1939, ch. 120, § 4; R.C. 1943, § 15-1705.

15-17-06. Property of and evidence of indebtedness issued by institutional holding association exempt from taxation.

Any site, dormitory, equipment, or appurtenances acquired, purchased, erected, installed, owned, operated, or maintained by an institutional holding association, its successors or assigns, as provided in this chapter, and all bonds or other evidences of indebtedness issued lawfully by such association, are exempt from taxation.

Source: S.L. 1929, ch. 102, § 5; 1939, ch. 120, § 5; R.C. 1943, § 15-1706.

15-18-01. Junior colleges authorized. [Repealed]

Repealed by S.L. 1983, ch. 192, § 15.

15-18-02. Election to establish junior college. [Repealed]

Repealed by S.L. 1983, ch. 192, § 15.

15-18-03. School district tax levy authorized to finance residual or other junior college fiscal obligations. [Repealed]

Repealed by S.L. 1999, ch. 154, § 2.

15-18-04. Supervision of junior colleges. [Repealed]

Repealed by S.L. 1983, ch. 192, § 15.

15-18-04.1. Establishment of off-campus educational center — Tuition and fees — Use of tuition and fee revenue. [Repealed]

Repealed by S.L. 1983, ch. 192, § 15.

15-18-04.2. School district tax levy authorized to finance residual or other off-campus educational center obligations. [Repealed]

Repealed by S.L. 1999, ch. 154, § 2.

15-18-05. County levy to aid in the financing of residual or other fiscal obligations of a junior college or educational center authorized. [Repealed]

Repealed by S.L. 1999, ch. 154, § 2.

15-18-06. Proceeds of levy to be certified to special school district.

The proceeds of any tax levy hereby authorized must be certified quarterly to the clerk of any special school district which maintained a junior college or off-campus educational center pursuant to this chapter as it existed on June 30, 1984. The proceeds must be placed in a special junior college fund or an off-campus center fund and must be used to finance any residual or other fiscal obligations of the special school district under the terms of an agreement between the district and the state board of higher education.

Source: S.L. 1957, ch. 127, § 3; R.C. 1943, 1957 Supp., § 15-1806; S.L. 1961, ch. 155, § 2; 1975, ch. 144, § 5; 1983, ch. 192, § 11; 2001, ch. 55, § 6.

15-18-07. State aid for community or junior colleges or educational centers. [Repealed]

Repealed by S.L. 1983, ch. 192, § 15.

15-18-08. Standards for state aid — Review of budgets — Audit of expenditures. [Repealed]

Repealed by S.L. 1983, ch. 192, § 15.

15-18-09. Method of payment. [Repealed]

Repealed by S.L. 1983, ch. 192, § 15.

15-18-10. Junior college boards of control — Expenditures — Budget — Members — Terms — Compensation. [Repealed]

Repealed by S.L. 1983, ch. 192, § 15.

15-18-11. Curtis and Annette Hofstad agricultural center.

The agricultural center constructed on the campus of Lake Region state college is officially named the Curtis and Annette Hofstad agricultural center.

Source: S.L. 2019, ch. 3, § 14, effective July 1, 2019.

15-18.1-01. Definitions.

As used in this chapter:

1. “Authorization to operate” or like term means approval of the board to operate or to contract to operate a postsecondary educational institution in this state.
2. “Board” means the state board of higher education.
3. “Education” or “educational services” or like term includes any class, course, or program of training, instruction, or study.
4. “Educational credentials” means degrees, diplomas, certificates, transcripts, reports, documents, or letters of designation, marks, appellations, series of letters, numbers, or words which signify, purport, or are generally taken to signify enrollment, attendance, progress, or satisfactory completion of the requirements or prerequisites for education at a postsecondary educational institution operating in this state.
5. “Postsecondary educational institution” means an academic, technical, home study, business, professional or other school, college, or university, or other person, operating in this state, offering educational credentials or offering instruction or educational services, primarily to any individual who has completed or terminated secondary education or who is beyond the age of compulsory high school attendance, for attainment of educational, or professional objectives at the associate in arts level or higher.
6. “To grant” includes awarding, selling, conferring, bestowing, or giving.
7. “To offer” includes, in addition to its usual meanings, advertising, publicizing, soliciting, or encouraging any individual, directly or indirectly, in any form, to perform the act described.
8. “To operate” an educational institution, or like term, means to establish, keep, or maintain any facility or location in this state where, from, or through which, education is offered or given, or educational credentials are offered or granted, and includes contracting with any person to perform any such act.

Source: S.L. 2013, ch. 137, § 1.

15-18.1-02. Exemptions.

The following education and educational schools or institutions are exempted from the provisions of this chapter:

1. Education sponsored by a bona fide trade, business, professional, or fraternal organization, so recognized by the board, solely for that organization’s membership, or offered on a no-fee basis.
2. Education offered by charitable institutions, organizations, or agencies, so recognized by the board, provided the education is not advertised or promoted as leading toward educational credentials.
3. Postsecondary educational institutions established, operated, and governed by this or any other state or its political subdivisions, as determined by the board and any educational consortium that includes one or more of the institutions.
4. Private four-year institutions chartered or incorporated and operating in the state prior to July 1, 1977, so long as the institutions retain accreditation by national or regional accrediting agencies recognized by the United States office of education.
5. Schools of nursing regulated under chapter 43-12.1.
6. Native American colleges operating in this state, established by federally recognized Indian tribes.
7. Postsecondary educational institutions not operating in this state.
8. Institutions whose only physical presence in this state consists of students enrolled in practicums, internships, clinicals, or student teaching in this state.
9. Postsecondary career schools regulated under chapter 15-20.4.

Source: S.L. 2013, ch. 137, § 1.

15-18.1-03. Voluntary application for authorization to operate.

Although a postsecondary educational institution not operating in this state is exempt from this chapter by section 15-18.1-02, the institution may subject itself to the requirements of this chapter by applying for and being awarded an authorization to operate by the board. An authorization to operate, as applied to a postsecondary educational institution not operating in this state, means approval of the board to offer to students in this state educational services leading to educational credentials.

Source: S.L. 2013, ch. 137, § 1.

15-18.1-04. Board powers and duties.

The board shall:

1. Establish and require compliance with minimum standards and criteria for postsecondary educational institutions under this chapter. The standards and criteria must include quality of education, ethical and business practices, health and safety and fiscal responsibility, which applicants for authorization to operate shall meet:
   1. Before such authorization may be issued; and
   2. To continue such authorization in effect.
2. Prescribe forms and conditions for, receive, investigate as it may deem necessary, and act upon applications for authorization to operate postsecondary educational institutions.
3. Maintain a list of postsecondary educational institutions authorized to operate in this state.
4. Consider entering interstate reciprocity agreements with similar agencies in other states.
5. Receive and maintain a permanent file, copies of academic records specified by the board in the event any postsecondary educational institution required to have an authorization to operate under this chapter proposes to discontinue its operation.
6. Adopt policies for the conduct of its work and the implementation of this chapter.
7. Adopt policies to investigate on its own initiative or in response to any complaint lodged with it, any person subject to, or reasonably believed by the board to be subject to, the jurisdiction of this chapter. The board may, after hearing, revoke or suspend authorizations to operate.
8. Require fees or bonds from postsecondary educational institutions in such sums and under such conditions as it may establish.
9. Apply fees received under this chapter to implement and manage its duties under this chapter.
10. Take any action necessary to carry out the provisions of this chapter.

Source: S.L. 2013, ch. 137, § 1.

15-18.1-05. Minimum standards.

All postsecondary educational institutions must be accredited by national or regional accrediting agencies recognized by the United States department of education. The board may additionally require such further evidence and make such further investigation as in its judgment may be necessary. Any postsecondary educational institution operating in this state seeking its first authorization to operate may be issued a provisional authorization to operate on an annual basis until the institution becomes eligible for accreditation by a recognized accrediting agency. Institutions issued a provisional authorization to operate must demonstrate a substantial good-faith showing of progress toward such status. Only upon accreditation may an institution become eligible for a regular authorization to operate. An institution shall give written notification to the board within thirty days of any change to the institution’s accreditation status.

Source: S.L. 2013, ch. 137, § 1; 2015, ch. 135, § 1, effective August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 135, S.L. 2015 became effective August 1, 2015.

15-18.1-06. Prohibition — Penalty.

1. A person may not:
   1. Operate, in this state, a postsecondary educational institution not exempted from the provisions of this chapter, unless the institution has a currently valid authorization to operate issued under this chapter.
   2. Instruct or educate, or offer to instruct or educate, including advertising or soliciting for such purpose, enroll or offer to enroll, contract or offer to contract with any person for such purpose, or award any educational credential, or contract with any institution or party to perform any such act, at a facility or location in this state unless such person, group, or entity observes and is in compliance with the minimum standards and criteria established by the board and the policies adopted by the board.
   3. Use the term “university”, “institute”, or “college” without authorization to do so from the board.
   4. Grant, or offer to grant, educational credentials, without authorization to do so from the board.
2. A person who violates this section, or who fails or refuses to deposit with the board the records required by the board under this chapter, is subject to a civil penalty not to exceed one hundred dollars for each violation. Each day’s failure to comply with these provisions is a separate violation. The fine may be imposed by the board in an administrative proceeding or by any court of competent jurisdiction.
3. A person who willfully violates this section, or who willfully fails or refuses to deposit with the board the records required by the board under this chapter, is guilty of a class B misdemeanor. The criminal sanctions may be imposed by a court of competent jurisdiction in an action brought by the attorney general of this state or a state’s attorney pursuant to section 15-18.1-12.

Source: S.L. 2013, ch. 137, § 1.

15-18.1-07. Refund of tuition fees.

Postsecondary educational institutions shall refund tuition and other charges, other than a reasonable application fee, in accordance with the schedule determined by the board.

Source: S.L. 2013, ch. 137, § 1.

15-18.1-08. Cancellation of contract for instrument.

A person has the right for any cause to rescind, revoke, or cancel a contract for educational services at any postsecondary educational institution within seven days after entering the contract without incurring any tort or contract liability.

Source: S.L. 2013, ch. 137, § 1.

15-18.1-09. Remedy of defrauded student — Treble damages.

A person defrauded by an advertisement or circular issued by a postsecondary educational institution, or by a person who sells textbooks to the institution or to the pupils thereof, may recover from the institution or person three times the amount paid.

Source: S.L. 2013, ch. 137, § 1.

15-18.1-10. Board review.

A person aggrieved by a decision of the board respecting denial or revocation of an authorization to operate, or the placing of conditions thereon, whether on initial application or on application for renewal may appeal to the board in the manner provided by the board.

Source: S.L. 2013, ch. 137, § 1.

15-18.1-11. Jurisdiction of courts — Service of process.

A postsecondary educational institution not exempt from this chapter, which has a place of business in this state, and which instructs or educates, or offers to instruct or educate, enrolls or offers to enroll, or contracts or offers to contract, to provide instructional or educational services in this state, whether the instruction or services are provided in person or by correspondence, to a resident of this state, or which offers to award or awards educational credentials to a resident of this state, submits the institution, and if an individual, the individual’s personal representative, to the jurisdiction of the courts of this state, concerning any claim for relief arising therefrom, and for the purpose of enforcement of this chapter by injunction pursuant to section 15-18.1-12. Service of process upon the institution subject to the jurisdiction of the courts of this state may be made by personally serving the summons upon the defendant within or outside this state, in the manner prescribed by the North Dakota Rules of Civil Procedure, with the same force and effect as if the summons had been personally served within this state.

Source: S.L. 2013, ch. 137, § 1.

15-18.1-12. Enforcement — Injunction.

1. The attorney general of this state, or the state’s attorney of any county in which a postsecondary educational institution is found, at the request of the board or on the attorney general’s own motion, may bring any appropriate action or proceeding, including injunctive proceedings or criminal proceedings, in any court of competent jurisdiction for the enforcement of the provisions of this chapter.
2. Whenever it appears to the board that a person is about to, or has been violating any of the provisions of this chapter or any policies or orders of the board, the board may, on its own motion or on the written complaint of any individual, file a petition for injunction in the name of the board in any court in this state against a person, for the purpose of enjoining such violation or for an order directing compliance with this chapter, and any policies or orders issued by the board. It is not necessary that the board allege or prove that it has no adequate remedy at law. The right of injunction provided in this section is in addition to any other legal remedy which the board has, and is in addition to any right of criminal prosecution provided by law; provided, however, the board may not obtain a temporary restraining order without notice to the person affected.

Source: S.L. 2013, ch. 137, § 1.

15-18.1-13. Unlawful to issue, manufacture, or use false academic degrees — Penalty.

1. It is unlawful for a person to knowingly advertise to sell, issue, or manufacture a false academic degree. A person that violates this subsection is guilty of a class C felony. This subsection does not apply to a newspaper, television or radio station, or other commercial medium that is not the source of the advertisement.
2. 1. It is unlawful for an individual to knowingly use or claim to have a false academic degree:
      1. To obtain employment;
      2. To obtain a promotion or higher compensation in employment;
      3. To obtain admission to an institution of higher learning; or
      4. In connection with any business, trade, profession, or occupation.
   2. An individual who violates this subsection is guilty of a class A misdemeanor.
3. As used in this section, “false academic degree” means a document such as a degree or certification of completion of a degree, coursework, or degree credit, including a transcript, that provides evidence or demonstrates completion of a course of instruction or coursework that results in the attainment of a rank or level of associate or higher which is issued by a person that is not a duly authorized institution of higher learning.
4. As used in this section, “duly authorized institution of higher learning” means an institution that:
   1. Has accreditation recognized by the United States secretary of education or has the foreign equivalent of such accreditation;
   2. Has an authorization to operate under this chapter or under chapter 15-20.4;
   3. Operates in this state, and is exempt from this chapter under section 15-18.1-02 or is exempt from chapter 15-20.4 under section 15-20.4-02;
   4. Does not operate in this state and is:
      1. Licensed by the appropriate state agency; and
      2. An active applicant for accreditation by an accrediting body recognized by the United States secretary of education; or
   5. Has been found by the state board of higher education or the state board for career and technical education to meet standards of academic quality comparable to those of an institution located in the United States that has accreditation recognized by the United States secretary of education to offer degrees of the type and level claimed.

Source: S.L. 2013, ch. 137, § 1.

15-18.1-14. Unlawful to use degree or certificate when coursework not completed — Penalty.

1. An individual may not knowingly use a degree, certificate, diploma, transcript, or other document purporting to indicate that the individual has completed an organized program of study or completed courses when the individual has not completed the organized program of study or the courses as indicated on the degree, certificate, diploma, transcript, or document:
   1. To obtain employment;
   2. To obtain a promotion or higher compensation in employment;
   3. To obtain admission to an institution of higher learning; or
   4. In connection with any business, trade, profession, or occupation.
2. An individual who violates this section is guilty of a class A misdemeanor.

Source: S.L. 2013, ch. 137, § 1.

15-18.1-15. Consumer protection — False academic degrees.

The North Dakota university system, in collaboration with the state board for career and technical education, shall provide information via internet websites to protect students, businesses, and others from persons that issue, manufacture, or use false academic degrees.

Source: S.L. 2013, ch. 137, § 1.

15-18.1-16. Unlawful to operate accreditation mill — Penalty.

1. A person may not operate an accreditation mill in North Dakota.
2. As used in this section:
   1. “Accreditation mill” means an accrediting entity that is not recognized by the United States department of education, the state board of higher education, or the state board for career and technical education.
   2. “Operate” includes to use an address, telephone number, facsimile number, or other contact point located in North Dakota.
3. A person that violates this section is guilty of a class C felony.

Source: S.L. 2013, ch. 137, § 1.

15-18.1-17. Compliance with professional board registration and certification requirements.

A postsecondary educational institution shall give written notification to potential students applying for enrollment in a course or program that customarily leads to professional registration or certification of the status of the course or program compliance with the registration or certification requirements of the appropriate professional board in the state. A postsecondary educational institution shall give written notification to all students enrolled in a program or course that customarily leads to professional registration or certification of any change in the status of the course or program compliance with the registration or certification requirements of the appropriate professional board in the state.

History. S.L. 2015, ch. 135, § 2, effective August 1, 2015.

Effective Date.

This section became effective August 1, 2015.

15-18.2-01. Credit-hours — Determination.

1. For each institution under its control, the state board of higher education shall determine the number of credit-hours completed by students during the two-year period ending June thirtieth of each odd-numbered year.
2. For purposes of this section, a completed credit-hour is one for which a student met all institutional requirements and obtained a passing grade.

Source: S.L. 2013, ch. 138, § 1.

15-18.2-02. Weighted credit-hours — Determination — Instructional program classification factors — Submission to legislative management.

1. In order to determine the weighted credit-hours for each institution under its control, the state board of higher education shall multiply each of an institution’s completed credit-hours, as determined under section 15-18.2-01, by an instructional program classification factor, as set forth in this section.
   1. The factors for credits completed in agriculture are:
      1. 1.9 for lower division credits;
      2. 3.8 for upper division credits;
      3. 5.7 for professional level credits; and
      4. 7.6 for graduate level credits.
   2. The factors for credits completed in architecture are:
      1. 1.8 for lower division credits;
      2. 3.6 for upper division credits;
      3. 5.4 for professional level credits; and
      4. 7.2 for graduate level credits.
   3. The factors for credits completed in transportation are:
      1. 1.9 for lower division credits;
      2. 3.8 for upper division credits;
      3. 5.7 for professional level credits; and
      4. 7.6 for graduate level credits.
   4. The factors for credits completed in the biological and physical sciences are:
      1. 1.9 for lower division credits;
      2. 3.8 for upper division credits;
      3. 5.7 for professional level credits; and
      4. 7.6 for graduate level credits.
   5. The factors for credits completed in business are:
      1. 1.9 for lower division credits;
      2. 3.8 for upper division credits;
      3. 5.7 for professional level credits; and
      4. 7.6 for graduate level credits.
   6. The factors for credits completed in education are:
      1. 1.9 for lower division credits;
      2. 3.8 for upper division credits;
      3. 5.7 for professional level credits; and
      4. 7.6 for graduate level credits.
   7. The factors for credits completed in engineering are:
      1. 2.5 for lower division credits;
      2. 5.0 for upper division credits;
      3. 7.5 for professional level credits; and
      4. 10.0 for graduate level credits.
   8. The factors for credits completed in the health sciences are:
      1. 3.0 for lower division credits;
      2. 6.0 for upper division credits;
      3. 9.0 for professional level credits;
      4. 12.0 for graduate level credits; and
      5. 34.5 for medical school credits.
   9. The factors for credits completed in legal studies are:
      1. 3.5 for lower division credits;
      2. 7.0 for upper division credits;
      3. 14.0 for professional level credits; and
      4. 14.0 for graduate level credits.
   10. The factors for credits completed in the core disciplines are:
       1. 1.0 for lower division credits;
       2. 2.0 for upper division credits;
       3. 3.0 for professional level credits; and
       4. 4.0 for graduate level credits.
   11. The factors for credits completed in career and technical education are:
       1. 3.0 for lower division credits; and
       2. 5.0 for upper division credits.
   12. The factor for completed basic skills credits is 2.3.
2. 1. The state board of higher education shall ensure that all delineations in this section reflect the requirements of a nationally recognized and standardized instructional program classification system.
   2. Before adopting any changes to the delineations implemented in accordance with this section, the state board of higher education shall present the proposed changes to and receive the approval of the legislative management.

Source: S.L. 2013, ch. 138, § 1; 2015, ch. 3, § 13, effective July 1, 2015; 2019, ch. 3, § 15, effective July 1, 2019; 2021, ch. 31, § 11, effective July 1, 2021.

Effective Date.

The 2015 amendment of this section by section 13 of chapter 3, S.L. 2015 became effective July 1, 2015.

15-18.2-03. Credit completion factor — Determination.

1. Except as provided in subsections 2 and 3 of this section, for each institution under its control, the state board of higher education shall multiply the product determined under section 15-18.2-02 by a factor of:
   1. 1.00 if the number of credit-hours is at least 240,000;
   2. 1.05 if the number of credit-hours is at least 180,000 but less than 240,000;
   3. 1.10 if the number of credit-hours is at least 135,000 but less than 180,000;
   4. 1.15 if the number of credit-hours is at least 130,000 but less than 135,000;
   5. 1.20 if the number of credit-hours is at least 120,000 but less than 130,000;
   6. 1.30 if the number of credit-hours is at least 70,000 but less than 120,000;
   7. 1.40 if the number of credit-hours is at least 60,000 but less than 70,000;
   8. 1.50 if the number of credit-hours is at least 50,000 but less than 60,000;
   9. 1.60 if the number of credit-hours is at least 40,000 but less than 50,000;
   10. 1.70 if the number of credit-hours is at least 30,000 but less than 40,000; and
   11. 1.80 if the number of credit-hours is less than 30,000.
2. If the number of credit-hours completed by an institution would cause a decrease in the credit completion factor for that institution compared to the credit completion factor the institution was entitled to receive during the 2017-19 biennium, the state board of higher education shall multiply the product determined under section 15-18.2-02 by a credit growth factor of 1.0 for credits in excess of the factor the institution was entitled to receive during the 2017-19 biennium. Any weighted credit-hours multiplied by a credit growth factor under this section must have a weight of 1.0 under section 15-18.2-02. The state board of higher education shall multiply the remaining weighted credits by the credit completion factor the institution was entitled to receive during the 2017-19 biennium.
3. For purposes of this section, the number of credit-hours must be those determined by the state board of higher education in accordance with section 15-18.2-01.

Source: S.L. 2013, ch. 138, § 1; 2015, ch. 3, § 14, effective July 1, 2015; 2021, ch. 31, § 12, effective July 1, 2021.

Effective Date.

The 2015 amendment of this section by section 14 of chapter 3, S.L. 2015 became effective July 1, 2015.

15-18.2-04. Institutional size factor — Determination. [Repealed]

Source: S.L. 2013, ch. 138, § 1; 2015, ch. 3, § 15, effective July 1, 2015; repealed by 2021, ch. 31, § 18, effective July 1, 2021.

15-18.2-05. Base funding — Determination of state aid.

1. Except as provided under subsections 2 and 3, to determine the state aid payment to which each institution under its control is entitled, the state board of higher education shall multiply the product determined under section 15-18.2-03 by a base amount of:
   1. $61.81 in the case of North Dakota state university and the university of North Dakota;
   2. $92.60 in the case of Dickinson state university, Mayville state university, Minot state university, and Valley City state university; and
   3. $98.84 in the case of Bismarck state college, Dakota college at Bottineau, Lake Region state college, North Dakota state college of science, and Williston state college.
2. For institutions under subdivision b of subsection 1, the state board of higher education shall multiply the product determined under section 15-18.2-03 for credits completed in instructional programs under subdivision k of subsection 1 of section 15-18.2-02 by the base amount under subdivision c of subsection 1.
3. For institutions under subdivision c of subsection 1, the state board of higher education shall multiply the product determined under section 15-18.2-03 for upper division credits completed in instructional programs under subdivisions a through j of subsection 1 of section 15-18.2-02 by the base amount under subdivision b of subsection 1.

Source: S.L. 2013, ch. 138, § 1; 2015, ch. 3, § 16, effective July 1, 2015; 2017, ch. 28, § 8, effective July 1, 2017; 2019, ch. 3, § 16, effective July 1, 2019; 2021, ch. 31, § 13, effective July 1, 2021; 2021, ch. 132, § 1, effective August 1, 2021.

Effective Date.

The 2015 amendment of this section by section 16 of chapter 3, S.L. 2015 became effective July 1, 2015.

Section 15-18.2-05 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 1 of Chapter 132, Session Laws 2021, Senate Bill 2032; and Section 13 of Chapter 31, Session Laws 2021, Senate Bill 2003.

Section 2 of chapter 138, S.L. 2013 provides: “ LEGISLATIVE INTENT. In order to maintain the integrity of the funding formula established under this chapter, it is the intent of the legislative assembly that any proposed increases in the funding of institutions be achieved through the amendment of section 15-18.2-05.”

15-18.2-07. Funding — Distribution.

The state aid to which each institution is entitled under this chapter must be forwarded at the time and in the manner agreed to by the institution and the office of management and budget.

Source: S.L. 2013, ch. 138, § 1.

15-18.2-08. Statement of tuition and fees — Contents of statement.

Each tuition and fee billing statement provided to a student must include information identifying the average dollar amount of state aid per student per semester the institution receives under this chapter.

Source: S.L. 2019, ch. 140, § 1, effective August 1, 2019.

15-19-00.1. Definitions.

In this chapter, unless the context otherwise requires:

1. “Administration” includes the leadership of the center for distance education.
2. “Board” means the state board for career and technical education.
3. “Center” means the North Dakota center for distance education.
4. “Director” means the director and executive officer of the department of career and technical education.

Source: S.L. 2019, ch. 141, § 2, effective August 1, 2019.

15-19-01. North Dakota center for distance education courses — Establishment — Enrollment of students — Courses of instruction.

The state shall provide kindergarten through grade twelve courses, comprehensive educational support, and high school diplomas through the center for distance education under the following provisions:

1. A complete curriculum prescribed by state-mandated education accreditation entities which meets the requirements for digital education the superintendent of public instruction has determined to be appropriate.
2. A superintendent or an administrator of a school may deny the enrollment of a student in that district at the center for distance education except as provided in subsection 5.
3. The center for distance education may provide services to persons who are not North Dakota residents.
4. Center for distance education students shall pay fees as may be prescribed by the state board for career and technical education.
5. Students exempt from the compulsory school attendance laws pursuant to subdivision e of subsection 1 of section 15.1-20-02 may enroll in distance education courses offered through the center for distance education. These students may study their center for distance education lessons in their learning environment under the supervision of a parent.

Source: S.L. 1935, ch. 257, § 1; R.C. 1943, § 15-1901; S.L. 1955, ch. 132, § 25; 1957 Supp., § 15-1901; S.L. 1965, ch. 127, § 1; 1971, ch. 170, § 1; 1989, ch. 198, § 1; 1991, ch. 164, §§ 1, 2; 1995, ch. 171, § 1; 1999, ch. 162, § 1; 2001, ch. 161, § 4; 2003, ch. 137, § 1; 2007, ch. 156, § 1; 2019, ch. 141, § 1, effective August 1, 2019.

15-19-01.1. Distance education courses — Course lists to school districts — Notification.

The center for distance education shall provide by December thirty-first of each year, a complete list of courses offered by the center to all school districts. Each school district shall notify its students and their parents or guardians of the complete list of courses offered and the school district’s policies for course selection and related fees.

Source: S.L. 2017, ch. 46, § 5, effective July 1, 2017.

15-19-02. Administration Center for distance education — Appointment and duties.

The program of and all activities related to the center for distance education are the responsibility of the center for distance education and under the authority of the state board for career and technical education. The director of the department of career and technical education shall hire administration and staff for the center for distance education who must be classified under the state personnel merit system. The administration of the center shall carry out the responsibilities in operating the center for distance education in the manner approved by the state board for career and technical education, under the supervision of the director of the department of career and technical education, and compliant with requirements established by the superintendent of public instruction and the education standards and practices board for public school administrators and teachers. The state board for career and technical education shall administer the responsibilities of the board of a school district relating to the center for distance education.

Source: S.L. 1935, ch. 257, § 4; R.C. 1943, § 15-1902; S.L. 1955, ch. 132, § 26; 1957 Supp., § 15-1902; S.L. 1965, ch. 127, § 2; 1971, ch. 170, § 2; 1989, ch. 199, § 1; 2001, ch. 501, § 1; 2003, ch. 137, § 2; 2007, ch. 156, § 2; 2019, ch. 141, § 3, effective August 1, 2019.

15-19-02.1. Distance education clearinghouse.

The administration of the center for distance education shall establish a clearinghouse for online courses delivered to North Dakota schools for the purpose of providing:

1. A list of the online courses and providers for all North Dakota schools to access.
2. Awareness of online courses available in new and emerging careers.
3. A list of comparative prices for online courses and other online services.
4. Awareness of the differences between technological innovation and learning innovation.

Source: S.L. 2017, ch. 46, § 6, effective July 1, 2017; 2019, ch. 141, § 4, effective August 1, 2019.

15-19-03. Duties of superintendents of schools — Authorization of enrollments. [Repealed]

Source: S.L. 1935, ch. 257, § 2; R.C. 1943, § 15-1903; S.L. 1955, ch. 132, § 27; 1957 Supp., § 15-1903; S.L. 1965, ch. 127, § 3; 1971, ch. 170, § 3; 2007, ch. 156, § 3; repealed by 2019, ch. 141, § 8, effective August 1, 2019.

15-19-04. Duty of superintendent — Advertising. [Repealed]

Source: S.L. 1935, ch. 257, § 3; R.C. 1943, § 15-1904; S.L. 1965, ch. 127, § 4; 1987, ch. 39, § 3; 1991, ch. 164, § 3; 1999, ch. 162, § 2; 2001, ch. 161, § 5; 2003, ch. 137, § 3; 2007, ch. 156, § 4; repealed by 2019, ch. 141, § 8, effective August 1, 2019.

15-19-05. Study centers — Adult classes. [Repealed]

Repealed by S.L. 1965, ch. 127, § 6.

15-19-06. Special funds — Deposit of collections — Transfers from general fund appropriations.

1. A special operating fund for the center for distance education must be maintained within the state treasury and all income and fees collected by the center for distance education from any source must be remitted monthly by the director to the state treasurer and credited to the special operating fund. All expenditures from the fund must be within the limits of legislative appropriations and must be made upon vouchers, signed and approved by the director. Upon approval of the vouchers by the office of the budget, warrant-checks must be prepared by the office of management and budget.
2. The state board for career and technical education may establish an endowment and scholarship fund to provide financial grants to students enrolled in courses offered through the center for distance education. The endowment and scholarship fund may consist only of those funds specifically appropriated by the legislative assembly and property received by the center for distance education as a gift, devise, or bequest. Any gift, devise, or bequest of property received by the center for distance education which is designated by the state board for career and technical education and donor for the endowment and scholarship fund must be deposited in the scholarship fund at the Bank of North Dakota. The center for distance education may draw on the endowment and scholarship fund for the award of endowments and scholarships within the limits and rules adopted by the state board for career and technical education.

Source: S.L. 1935, ch. 257, § 5; R.C. 1943, § 15-1906; S.L. 1955, ch. 132, § 28; 1957 Supp., § 15-1906; S.L. 1961, ch. 156, § 1; 1963, ch. 200, § 1; 1965, ch. 127, § 5; 1971, ch. 170, § 4; 1979, ch. 187, § 2; 1985, ch. 206, § 1; 1989, ch. 199, §§ 2, 4; 2001, ch. 501, § 2; 2003, ch. 137, § 4; 2005, ch. 261, § 3; 2007, ch. 156, § 5; 2019, ch. 141, § 5, effective August 1, 2019.

15-19-07. Fees collected deposited in general fund. [Repealed]

Repealed by S.L. 1965, ch. 127, § 6.

15-19-08. Distance education support and services.

The amount of money appropriated by the legislative assembly for distance education support and services for a biennium, or so much thereof as may be necessary, must be expended first for work provided by distance education as determined by the center for distance education and approved by the state board for career and technical education.

Source: S.L. 1971, ch. 158, § 1; 1989, ch. 199, § 3; 1991, ch. 164, § 4; 2007, ch. 156, § 6; 2019, ch. 141, § 6, effective August 1, 2019.

15-20.1-01. Definitions.

In this chapter, unless the context otherwise requires:

1. “Career and technical education” includes vocational education.
2. “Department” means the department of career and technical education, which consists of the director and other persons appointed or designated by the state board or the director to carry out the duties of the state board.
3. “Director” means the director of career and technical education.
4. “Regulations” means regulations made by the director with the approval of the state board.
5. “State board” means the state board for career and technical education.

Source: S.L. 1971, ch. 158, § 4; 1971, ch. 171, § 1; 1973, ch. 383, § 13; 1993, ch. 62, § 3; 1997, ch. 49, § 4; 2003, ch. 138, § 16.

15-20.1-02. State board for career and technical education — Director of career and technical education — Appointment, qualifications, assistants, duties.

The state board for career and technical education consists of the members of the state board of public school education, the executive director of job service North Dakota, and the commissioner of higher education or the commissioner’s designee. The state board shall oversee the department and appoint a director and executive officer of career and technical education who are charged with the administration, under the direction and supervision of the board, of the provisions of this chapter relating to career and technical education. The state board shall designate such assistants to the director as may be necessary to carry out the provisions of this chapter. The duties, terms of office, and compensation of the director and of the director’s assistants must be determined by the state board. The director shall hold as a minimum a baccalaureate degree received from a recognized college or university. The director shall enforce such rules and regulations as the state board may adopt and shall prepare such reports concerning career and technical education as the state board may require.

Source: S.L. 1971, ch. 158, § 4; 1993, ch. 62, § 4; 1997, ch. 49, § 5; 2003, ch. 138, § 17.

Effective Date.

The 2003 amendment of this section by section 17 of chapter 138, S.L. 2003 became effective August 1, 2003.

15-20.1-03. Powers and duties of state board relating to career and technical education.

The state board shall have all authority necessary to cooperate with the United States department of education or other department or agency of the United States of America in the administration of acts of Congress relating to career and technical education, including the following powers and duties:

1. To administer any legislation enacted by the legislative assembly of this state pursuant to or in conformity with acts of Congress relating to career and technical education.
2. To administer the funds provided by the federal government and by this state for the promotion of career and technical education and to contract with:
   1. Any public or private institution or agency, board of trustees of any agricultural and training school, or school district of this state; or
   2. Any public or private institution or agency, or political subdivision, of another state.
3. To formulate plans for the promotion of career and technical education in such subjects as are an essential and integral part of the public school system of education in this state.
4. To provide for the preparation of teachers.
5. To fix the compensation of such officers and assistants as may be necessary to administer the federal acts and the provisions of this chapter relating to career and technical education and to pay the same and other necessary expenses of administration from any funds appropriated for such purpose.
6. To make studies and investigations relating to career and technical education.
7. To promote and aid in the establishment of schools, departments, or classes, and to cooperate with local communities in the maintenance of career and technical education schools, departments, or classes.
8. To prescribe the qualifications and provide for the certification of teachers, directors, and supervisors.
9. To cooperate with governing bodies of school districts and with organizations and communities in the maintenance of classes for the preparation of teachers, directors, and supervisors of career and technical education, to maintain classes for such purposes under its own direction and control, and to establish and control, by general regulations, the qualifications to be possessed by persons engaged in the training of career and technical education teachers.
10. To coordinate new and existing farm management programs offered by any state agency or entity.
11. To create and expand marketing clubs as adjuncts to new and existing farm management programs.
12. To administer and supervise the program and all activities of the center for distance education.

Source: S.L. 1971, ch. 158, § 4; 1983, ch. 82, § 22; 1997, ch. 49, § 6; 1999, ch. 163, § 1; 2003, ch. 138, § 18; 2019, ch. 141, § 7, effective August 1, 2019.

Cross-References.

Career and technical education certificate qualifications unaffected by general teacher certification requirements, see N.D.C.C. § 15.1-13-10 .

15-20.1-03.1. Postsecondary career and technical education reciprocity with Minnesota.

The state board may enter into agreements with the Minnesota higher education coordinating board or with the governing board of any public postsecondary career and technical institute in that state to enable, on a reciprocal basis, any resident of North Dakota to attend an approved career and technical education program in Minnesota and to permit any resident of Minnesota to attend an approved career and technical education program in North Dakota without being required to pay nonresident tuition fees. For the purposes of this section, “approved career and technical education program” means any postsecondary career and technical program offered by a Minnesota area career and technical institute or a district-operated junior college in North Dakota. Any agreement made pursuant to this section may provide for the transfer of funds between the states and any payment to Minnesota by North Dakota must be within the limitations of the payment due North Dakota from Minnesota under the authority contained in chapter 15-10.1. Any payment to North Dakota by Minnesota must be deposited in the state’s general fund.

Source: S.L. 1981, ch. 179, § 1; 2003, ch. 138, § 19.

15-20.1-04. Acceptance of benefits of federal acts in career and technical education — Cooperation with federal government.

The state of North Dakota hereby accepts all of the provisions and benefits of the acts of Congress to assist states to maintain, extend, and improve existing programs and develop new programs in career and technical education.

Source: S.L. 1971, ch. 158, § 4; 1973, ch. 383, § 14; 2003, ch. 138, § 20.

15-20.1-05. Custody and payment of career and technical education funds.

The state board is charged with the duty of administering all funds that are received from federal and state sources and shall accept and use gifts made unconditionally by will or otherwise for purposes of carrying out this chapter for career and technical education. All such moneys received must be placed in the custody of the state treasurer and must be paid in accordance with legislative appropriations by the office of management and budget as directed by the director of career and technical education.

Source: S.L. 1971, ch. 158, § 4; 1971, ch. 171, § 2; 1973, ch. 383, § 15; 1993, ch. 62, § 5; 2003, ch. 138, § 21.

15-20.1-06. Reimbursement of schools teaching subjects in career and technical education.

The state board may reimburse approved public or private institutions or agencies, or political subdivisions of this state or of another state, giving instruction in career and technical education from funds allocated for that purpose. The state board may prorate the sums available if funds are insufficient to reimburse at the rate established by the state board.

Source: S.L. 1971, ch. 158, § 4; 1983, ch. 201, § 1; 2003, ch. 138, § 22.

15-20.1-07. Cooperation of school boards in career and technical education.

The governing body of any school district may cooperate with the state board in the establishment and maintenance of schools, departments, or classes giving instruction in career and technical education as approved by the state board and may use any moneys raised by public taxation for such purposes in the same manner as the moneys for other school purposes are used for the maintenance and support of public schools. When any school, department, or class giving instruction in career and technical education has been approved by the state board, it may be entitled to share in any federal and state funds available for career and technical education.

Source: S.L. 1971, ch. 158, § 4; 1983, ch. 201, § 2; 2003, ch. 138, § 23.

15-20.1-08. Mill levy for vocational education programs. [Repealed]

Repealed by S.L. 1983, ch. 608, § 22.

15-20.1-09. Board membership — Powers and duties. [Repealed]

Repealed by S.L. 1993, ch. 62, § 20.

15-20.1-10. Specific powers — Tuition payments — Bond issues. [Repealed]

Repealed by S.L. 2003, ch. 138, § 104.

15-20.1-11. Curriculum — General powers and duties.

The curriculum offered students by an area career and technology center must be as determined by the school board; provided, that such curriculum must be submitted annually to the state board for approval, and only an approved curriculum may be offered.

Source: S.L. 1971, ch. 158, § 4; 2003, ch. 138, § 24.

15-20.1-12. Director of vocational rehabilitation division. [Repealed]

Repealed by S.L. 1973, ch. 383, § 17.

Note.

For present provisions on vocational rehabilitation, see N.D.C.C. ch. 50-06.1.

15-20.1-13. Administration of vocational rehabilitation. [Repealed]

Repealed by S.L. 1973, ch. 383, § 17.

15-20.1-14. Rehabilitation services provided to any disabled individual — Eligibility. [Repealed]

Repealed by S.L. 1973, ch. 383, § 17.

15-20.1-15. Rehabilitation services provided to disabled individuals requiring financial assistance. [Repealed]

Repealed by S.L. 1973, ch. 383, § 17.

15-20.1-16. Gifts — Authorization to accept and use. [Repealed]

Repealed by S.L. 1973, ch. 383, § 17.

15-20.1-16.1. Gifts — Authorization to accept and use.

The director, with the approval of the state board, may accept and use gifts made unconditionally by will or otherwise for carrying out the purposes of this chapter. Gifts made under such conditions as in the judgment of the state board are proper and consistent with the provisions of this chapter may be so accepted and must be held, invested and reinvested, and used in accordance with the conditions of the gift.

Source: S.L. 1975, ch. 142, § 1.

15-20.1-16.2. Science — Technology — Engineering — Mathematics — Grants — Continuing appropriation — Report.

1. The department of career and technical education may accept gifts, grants, and donations for the purpose of providing science, technology, engineering, and mathematics advancement grants.
2. Grant recipients shall focus on facilitating, coordinating, and advancing science, technology, engineering, and mathematics initiatives in this state, and shall work with representatives of elementary and secondary education, tribal schools, higher education, and private sector industries to strengthen educational opportunities, align the educational opportunities with economic development and workforce needs, and ensure the existence of a creative and productive workforce with the skills and knowledge to be globally competitive.
3. All moneys received under this section are appropriated on a continuing basis to the department of career and technical education for the purpose of providing science, technology, engineering, and mathematics advancement grants. The department of career and technical education shall report to the appropriations committees of each legislative assembly on funds received and the use of the funds.

Source: S.L. 2013, ch. 139, § 1.

15-20.1-17. Maintenance not assignable. [Repealed]

Repealed by S.L. 1973, ch. 383, § 17.

15-20.1-18. Hearings allowed to aggrieved persons. [Repealed]

Repealed by S.L. 1973, ch. 383, § 17.

15-20.1-19. Misuse of vocational rehabilitation lists and records. [Repealed]

Repealed by S.L. 1973, ch. 383, § 17.

15-20.1-20. Limitation of political activity. [Repealed]

Repealed by S.L. 1973, ch. 383, § 17.

15-20.1-21. Biennial report.

The state board may submit a biennial report to the governor and the secretary of state in accordance with section 54-06-04. If submitted, the report must set forth the condition of career and technical education in the state, a list of the schools to which federal and state aid for career and technical education has been given, and a detailed statement of the expenditures of federal and state funds for that purpose.

Source: S.L. 1971, ch. 158, § 4; 1973, ch. 383, § 16; 1973, ch. 403, § 11; 1975, ch. 466, § 12; 1995, ch. 350, § 11; 2003, ch. 138, § 25.

15-20.1-22. Grants for innovation.

1. The department shall provide grants to eligible recipients for the funding of:
   1. Science projects or programs;
   2. Technology projects or programs; and
   3. Innovation programs for kindergarten, elementary, or high school students.
2. An eligible recipient for purposes of this section is a teacher, a school, a school district, or an institution of higher education.
3. A grant awarded under this section is competitive, may not exceed twenty thousand dollars if the recipient is an institution of higher education, and may not exceed seven thousand five hundred dollars in the case of any other recipient.
4. In awarding a grant under this section, the department may require dollar-for-dollar matching funds. If the department requires matching funds, an eligible recipient may obtain those matching funds from any public or nonpublic source.
5. The department shall consult with the department of commerce in making award determinations under this section.

Source: S.L. 2007, ch. 18, § 29; 2011, ch. 122, § 1.

15-20.1-23. North Dakota elementary student entrepreneurship program.

1. There is created a North Dakota elementary student entrepreneurship program under the authority of the state board. The state board shall adopt policies to create a program of grants to support entrepreneurship education that is coordinated with classroom curriculum, standards, and activities encouraging and showcasing entrepreneurial activities at the elementary education level.
2. The grants must be awarded to school districts and require matching funds of up to fifty percent of the curriculum and activity costs.
3. At the request of a school district, the state board may forward the district’s grant directly to an entity providing services in accordance with this section.

Source: S.L. 2007, ch. 19, § 6; 2013, ch. 140, § 1.

15-20.1-24. Career development facilitation — Certificate — Qualifications.

1. The department shall develop a program leading to a certificate in career development facilitation. The department shall award the certificate to any individual who:
   1. Holds a baccalaureate degree from an accredited institution of higher education;
   2. Has at least a five-year employment history; and
   3. Successfully completes the department’s programmatic requirements.
2. An individual holding a certificate awarded under this section is a career advisor.

Source: S.L. 2009, ch. 175, § 1.

15-20.1-25. Career development facilitation — Provisional approval.

1. The department may provisionally approve an individual to serve as a career advisor if the individual:
   1. Holds a baccalaureate degree from an accredited institution of higher education;
   2. Has at least a five-year employment history; and
   3. Provides the department with a plan for completing the department’s programmatic requirements within a two-year period.
2. Provisional approval under subsection 1 is valid for a period of two years and may not be extended by the department.

Source: S.L. 2009, ch. 175, § 2.

15-20.2-01. Area centers — Definition of terms.

In this chapter, unless the context otherwise requires:

1. “Area career and technology center” means a program of career and technical education conducted at one or more attendance centers by three or more participating public school districts.
2. “Center board” means the governing board of an area career and technology center.
3. “Participating district” means a public school district whose students are attending an area career and technology center.
4. “School board” means a participating public school district board.
5. “State board” means the state board for career and technical education.

Source: S.L. 1975, ch. 143, § 1; 1991, ch. 165, § 1; 1993, ch. 62, § 6; 2003, ch. 138, § 26.

15-20.2-02. Submission of plan for area center — Approval by state board.

The school boards of three or more school districts may submit to the state board a proposed plan to establish an area career and technology center. Such proposal must be consistent with the state plan for career and technical education and meet the requirements, rules, standards, and procedures as adopted by the state board. The state board upon receipt of a proposed plan to establish an area career and technology center shall examine such plan and receive testimony for the purpose of examining supporting and nonsupporting evidence submitted therewith. The state board shall process the proposed plan according to procedures consistent with the state plan. Nothing in this chapter may be interpreted to prohibit school districts from entering into other kinds of administrative structures for career and technology centers approved by the state board pursuant to other provisions of law.

Source: S.L. 1975, ch. 143, § 2; 1991, ch. 165, § 2; 2003, ch. 138, § 27.

15-20.2-03. Agreement of participation in area center — Resolution of agreement.

After approval of a plan pursuant to this chapter, all participating school districts of an area career and technology center shall enter into an agreement of participation which must receive a vote of approval of the school board of each participating school district. Prior to the effective date of an approved plan, a resolution of agreement must be adopted by a majority vote of each participating school board and such resolution must be published once in the official newspaper of each county or counties of the participating school districts.

Source: S.L. 1975, ch. 143, § 3; 1991, ch. 165, § 3; 2003, ch. 138, § 28.

15-20.2-04. Center boards — Appointment of members — Terms — Compensation — Vacancies.

An area career and technology center must be operated by a center board of not less than five members nor more than a total of one member for each participating district; provided, however, that each participating school district with three hundred or more high school students must be allowed one member for each three hundred high school students or fraction thereof with a limitation of not more than three members from any one school district. Center board members must be members of the school boards. The terms of office of the members of center boards must be for at least one year and terminate upon the expiration of their terms on their respective school boards. Members are eligible for reappointment to center boards. Center board members shall receive the same compensation and expenses for attending center board meetings or for otherwise engaging in official business for the center as provided in section 15.1-09-06 for members of school boards. Compensation and expenses of center board members must be paid out of center funds.

Vacancies on a center board must be filled by the school board whose representation was lost when the vacancy occurred.

Source: S.L. 1975, ch. 143, § 4; 1979, ch. 221, § 1; 1991, ch. 165, § 4; 1999, ch. 164, § 3; 2003, ch. 138, § 29.

15-20.2-05. Special board plan for small center.

If four or fewer school districts comprise an area career and technology center and if enrollment within such school district is insufficient to provide five members in accordance with section 15-20.2-04, the boards of such school district shall agree upon the number and manner of selection of members of the center board and shall submit their plan of selection for approval by the state board pursuant to section 15-20.2-02.

Source: S.L. 1975, ch. 143, § 5; 1991, ch. 165, § 5; 2003, ch. 138, § 30.

15-20.2-06. Meetings of center boards — Election of officers — Quorum.

The initial organizational meeting of a center board must be called and conducted by the chairman of the state board, and thereafter a center board shall meet monthly. At the next meeting following the annual meeting of the school boards, the officers of a center board for the current school year must be selected. The officers of a center board must be a chairman and a vice chairman, who may not be from the same school district. The chairman shall preside at all meetings of a center board and in the chairman’s absence the vice chairman shall preside. Each center board member is entitled to one vote. A majority of the members of a center board constitutes a quorum. Any motion or resolution may be adopted only by a majority vote of the members of the center board.

Source: S.L. 1975, ch. 143, § 6.

15-20.2-07. Powers and duties of center boards.

The powers and duties of a center board are as follows:

1. To supervise, manage, and control an area career and technology center established by the cooperating school districts pursuant to this chapter.
2. To provide career and technical education programs approved by the state board.
3. To contract with, employ, and pay personnel to administer the affairs and to teach in the area career and technology center, and to remove for cause any personnel when the interests of the area career and technology center may require it; provided, that personnel employed by a center board shall have the same statutory rights as provided by law for personnel employed by public school districts.
4. To lease, acquire, or purchase career and technical education equipment for an area career and technology center.
5. To lease, acquire, purchase, or sell career and technical education facilities, including real property, for an area career and technology center; provided, that any purchase or sale of real property must first be approved by two-thirds of the school boards of the participating school districts.
6. To receive and administer any private, local, state, or federal funds provided for the operation and maintenance of an area career and technology center.
7. To enter into contracts consistent with the other powers and duties provided for by this chapter.
8. To accept real or personal property available for distribution by the United States or any of its departments or agencies and also to accept federal grants that may be made available in the field of career and technical education.

Source: S.L. 1975, ch. 143, § 7; 1991, ch. 165, § 6; 2003, ch. 138, § 31.

15-20.2-08. Assessment of participating districts for proportionate share of center expenses — Allocation of students — Civil penalty for failure to remit payment.

A center board shall, for the purpose of paying any administrative, planning, operating, or capital expenses incurred or to be incurred, assess each participating school district its proportionate share based upon its high school enrollment as compared to the total high school enrollment of all participating school districts in the area career and technology center and shall assess each nonparticipating school district receiving services its proportionate share based upon its utilization of programs. A center board shall, as nearly as possible, allocate the number of students from each participating district to be served in an area career and technology center on the same proportionate basis as is used for the assessment of expenses.

A center board utilizing mobile units solely shall, for the purpose of paying any administrative, planning, operating, or capital expenses incurred or to be incurred, assess each participating school district its proportionate share based upon its utilization of programs as compared to total program utilization of all participating school districts in such center. A center board utilizing mobile units solely shall, as nearly as possible, determine the program utilization of each participating school district to be served based upon its high school enrollment as compared to the total high school enrollment of all participating school districts in such center and the school’s accessibility to those programs.

Each participating school district shall remit payment of the assessment of its share of expenses to the center board promptly after receipt of the assessment notice, or within a period of time determined by the center board, but no later than sixty days after the official date of receipt as noted on the assessment notice. A civil penalty of one percent per month must accrue on all assessments not paid when due.

Source: S.L. 1975, ch. 143, § 8; 1979, ch. 222, § 1; 1991, ch. 165, § 7; 2003, ch. 138, § 32.

15-20.2-09. Distribution of state funds to area centers — Rules and regulations.

Funds which may be made available to the state board for distribution to area career and technology centers must be apportioned and distributed by the state board to the area career and technology centers to assist such centers in defraying the cost involved in maintaining and operating such centers. The use of such funds is subject to such rules and regulations as may be prescribed by the state board and must be in accordance with the approved state plan for career and technical education.

Source: S.L. 1975, ch. 143, § 9; 1991, ch. 165, § 8; 2003, ch. 138, § 33.

15-20.2-10. Appropriated and federal funds used for distribution.

The funds distributed to the area career and technology centers under the provisions of section 15-20.2-09 must be paid out of moneys appropriated to the state board for career and technical education, including federal funds allotted to the state to promote and attain the purposes of state and federal legislation on career and technical education.

Source: S.L. 1975, ch. 143, § 10; 1991, ch. 165, § 9; 1993, ch. 62, § 7; 2003, ch. 138, § 34.

15-20.2-11. District becoming participant in established center — Procedure.

After an area career and technology center has been established, any other school district may become a participant in the center and may be governed by the provisions of this chapter upon following a process similar to that pursued by the school districts originally forming the center, including approval of the vote of the district board, the center board, and the state board according to the procedure set forth in sections 15-20.2-12 and 15-20.2-13.

Source: S.L. 1975, ch. 143, § 11; 1991, ch. 165, § 10; 2003, ch. 138, § 35.

15-20.2-12. District board resolution to participate in established center — Publication.

A school district board may request that the state board and the center board approve such school district as a participating district in an established area career and technology center upon approval of a resolution by the school district board. When such resolution has been adopted by the school district board, it must be published once in the official newspaper of the county or counties in which the district is located.

Source: S.L. 1975, ch. 143, § 12; 1991, ch. 165, § 11; 2003, ch. 138, § 36.

15-20.2-13. Referendum on district participation in area center — Majority required for approval.

A school district board may not proceed to obtain approval as a participating district in an area career and technology center if a petition for referendum of the question of said school district participating in an area career and technology center signed by twenty percent of the qualified electors of said school district voting at the last annual school election is filed with the school board within sixty days of the publication of the resolution provided for in section 15-20.2-12. When such petition is filed, the school board may not obtain approval as a participating district in an area career and technology center until the question of whether the district shall enter into an area career and technology center has been submitted to the qualified electors of the district. If a majority of the total number of votes cast on the question within the school district is in favor of the question, the school board may proceed to obtain approval as a participating district in an area career and technology center.

Source: S.L. 1975, ch. 143, § 13; 1985, ch. 235, § 28; 1991, ch. 165, § 12; 2003, ch. 138, § 37.

15-20.2-14. Withdrawal of district from participation in center — Submission to voters — Effect of withdrawals.

The procedure for withdrawal is the same as for joining as provided for in sections 15-20.2-11 through 15-20.2-13, except that when a participating district is unable to obtain an approval of withdrawal from the center board, or the state board, or both, the participating district may submit the question to withdraw from the area career and technology center to the voters of the school district. If a majority of the total number of votes cast on the question is in favor of withdrawal, the participating school district must be released from the area career and technology center. Such withdrawal may become effective at the end of the next school year or on such a date as determined by the state board, but such withdrawal does not affect the liability of the withdrawing school district for obligations incurred during its participation.

Source: S.L. 1975, ch. 143, § 14; 1991, ch. 165, § 13; 2003, ch. 138, § 38.

15-20.2-15. Dissolution of established center.

An established area career and technology center may be dissolved in accordance with rules and procedures adopted by the state board.

Source: S.L. 1975, ch. 143, § 15; 1991, ch. 165, § 14; 2003, ch. 138, § 39.

15-20.2-16. Rules, regulations, and standards for area centers.

The state board is authorized and empowered to establish and adopt rules, regulations, standards, and procedures set forth in the state plan pertaining to the creation, operation, control, supervision, and approval of area career and technology centers.

Source: S.L. 1975, ch. 143, § 16; 1991, ch. 165, § 15; 2003, ch. 138, § 40.

15-20.4-01. Definitions.

As used in this chapter:

1. “Authorization to operate” or like term means approval of the board to operate or to contract to operate a private postsecondary career school in this state.
2. “Board” means the state board for career and technical education.
3. “Education” or “educational services” or like term includes any class, course, or program of training, instruction, or study.
4. “Educational credentials” means degrees, diplomas, certificates, transcripts, reports, documents, or letters of designation, marks, appellations, series of letters, numbers, or words which signify, purport, or are generally taken to signify enrollment, attendance, progress, or satisfactory completion of the requirements or prerequisites for education at a postsecondary career school operating in this state.
5. “Entity” includes any company, firm, society, association, partnership, corporation, limited liability company, and trust.
6. “Executive officer” means the director of career and technical education.
7. “Postsecondary career school” means a private, vocational, technical, home study, business, professional, or other private school or college, or other private organization or person, operating in this state, offering educational credentials, or offering instruction or educational services, primarily to persons who have completed or terminated their secondary education or who are beyond the age of compulsory high school attendance, for attainment of educational, professional, or vocational objectives at a level no higher than the associate of applied science level.
8. “To grant” includes awarding, selling, conferring, bestowing, or giving.
9. “To offer” includes, in addition to its usual meanings, advertising, publicizing, soliciting, or encouraging any person, directly or indirectly, in any form, to perform the act described.
10. “To operate” a career school, or like term, means to establish, keep, or maintain any facility or location in this state where, from, or through which, education is offered or given, or educational credentials are offered or granted, and includes contracting with any person, group, or entity to perform any such act.

Source: S.L. 1977, ch. 159, § 2; 1993, ch. 54, § 106; 1993, ch. 62, § 8; 1999, ch. 165, § 1; 2003, ch. 138, § 41; 2013, ch. 137, § 2.

Cross-References.

State board of public school education is state board for career and technical education, see N.D.C.C. § 15-20.1-01.

Collateral References.

Liability of private school or educational institution for breach of contract arising from provision of deficient educational instruction, 46 A.L.R.5th 581.

15-20.4-02. Exemptions.

The following education and educational schools or institutions are exempted from the provisions of this chapter:

1. Schools or institutions exclusively offering instruction at any or all levels from preschool through the twelfth grade.
2. Education sponsored by a bona fide trade, business, professional, or fraternal organization, so recognized by the board, solely for that organization’s membership, or offered on a no-fee basis.
3. Education solely avocational or recreational in nature, as determined by the board, and schools or institutions offering such education exclusively.
4. Certain education provided through short-term programs as determined by the board.
5. Education offered by charitable schools or institutions, organizations, or agencies, so recognized by the board, provided the education is not advertised or promoted as leading toward educational credentials.
6. Schools of barbering regulated under chapter 43-04.
7. Schools of cosmetology regulated under chapter 43-11.
8. Native American colleges operating in this state, established by federally recognized Indian tribes.
9. Postsecondary career schools not operating in this state.
10. Postsecondary career schools whose only physical presence in this state consists of students enrolled in practicums or internships in this state.
11. Postsecondary educational institutions regulated under chapter 15-18.1.

Source: S.L. 1977, ch. 159, § 3; 1983, ch. 546, § 1; 1985, ch. 477, § 1; 1987, ch. 588, § 1; 1993, ch. 168, § 1; 1999, ch. 165, § 2; 2009, ch. 161, § 1; 2011, ch. 123, § 1; 2013, ch. 137, § 3.

15-20.4-02.1. Voluntary application for authorization to operate.

Although a postsecondary career school not operating in this state is exempt from this chapter by section 15-20.4-02, the school may subject itself to the requirements of this chapter by applying for and being awarded an authorization to operate by the board. An authorization to operate, as applied to a postsecondary career school not operating in this state, means approval of the board to offer to students in this state educational services leading to educational credentials.

Source: S.L. 1999, ch. 165, § 6; 2013, ch. 137, § 4.

15-20.4-03. Board powers and duties.

The board has, in addition to the powers and duties now vested in it by law, the following powers and duties to:

1. Establish and require compliance with minimum standards and criteria for postsecondary career schools under this chapter. The standards and criteria must include quality of education, ethical and business practices, health and safety and fiscal responsibility, which applicants for authorization to operate shall meet:
   1. Before such authorization may be issued; and
   2. To continue such authorization in effect.
2. Prescribe forms and conditions for, receive, investigate as it may deem necessary, and act upon applications for authorization to operate postsecondary career schools.
3. Maintain a list of postsecondary career schools authorized to operate in this state under the provisions of this chapter. The list must be available for the information of the public.
4. Negotiate and enter into interstate reciprocity agreements with similar agencies in other states, if in the judgment of the board such agreements are or will be helpful in effectuating the purposes of this chapter; provided, however, that nothing contained in any such reciprocity agreement may be construed as limiting the board’s powers, duties, and responsibilities with respect to independently investigating or acting upon any application for authorization to operate, or any application for renewal of such authorization to operate, a postsecondary career school, or with respect to the enforcement of any provision of this chapter, or any of the rules or regulations promulgated hereunder.
5. Receive and cause to be maintained as a permanent file, copies of academic records specified by the board in the event any postsecondary career school required to have an authorization to operate under this chapter proposes to discontinue its operation.
6. Promulgate such rules, regulations, and procedures necessary or appropriate for the conduct of its work and the implementation of this chapter, and to hold such hearings as it may deem advisable in accordance with chapter 28-32 or as required by law in developing such rules, regulations, and procedures, or in aid of any investigation or inquiry.
7. Investigate as it may deem necessary, on its own initiative or in response to any complaint lodged with it, any person, group, or entity subject to, or reasonably believed by the board to be subject to, the jurisdiction of this chapter; and in connection therewith to subpoena any persons, books, records, or documents pertaining to such investigation. The board may require answers in writing under oath to questions propounded by the board and may administer an oath or affirmation to any person in connection with any investigation. The board may, after hearing, revoke or suspend authorizations to operate. Subpoenas issued by the board are enforceable by any district court.
8. Require fees and bonds from postsecondary career schools in such sums and under such conditions as it may establish; provided, that fees established may not exceed the reasonable cost of the service being provided.
9. Exercise other powers and duties implied but not enumerated in this section but in conformity with the provisions of this chapter which, in the judgment of the board, are necessary in order to carry out the provisions of this chapter.

The criteria and standards developed will effectuate the purposes of this chapter, but will not unreasonably hinder legitimate educational innovation.

Source: S.L. 1977, ch. 159, § 4; 1999, ch. 165, § 3; 2001, ch. 167, § 1; 2009, ch. 161, § 2; 2011, ch. 123, § 2; 2013, ch. 137, § 5.

Collateral References.

Regulation and licensing of correspondence schools or their canvassers or solicitors, 92 A.L.R.2d 522.

15-20.4-03.1. Career school fee fund.

There is created a career school fee fund into which fees provided to the board upon application for authorization to operate a postsecondary career school under section 15-20.4-03 must be deposited. The fund and interest earned on the fund may be spent by the board pursuant to legislative appropriation exclusively to carry out the intent and purpose of this chapter. This fund is not subject to section 54-44.1-11.

Source: S.L. 2005, ch. 146, § 1; 2013, ch. 137, § 6.

15-20.4-04. Minimum standards — Exceptions.

1. All postsecondary career schools must be accredited by national or regional accrediting agencies recognized by the United States department of education. The board may additionally require such further evidence and make such further investigation as in its judgment may be necessary. Any postsecondary career school operating in this state seeking its first authorization to operate may be issued a provisional authorization to operate on an annual basis until the school becomes eligible for accreditation by a recognized accrediting agency. Schools issued a provisional authorization to operate must demonstrate a substantial good-faith showing of progress toward such status. Only upon accreditation shall a school become eligible for a regular authorization to operate. A school shall give written notification to the board within thirty days of any change to the school’s accreditation status.
2. This section does not apply to postsecondary career schools operating in this state that do not grant degrees and that offer mainly hands-on training in low census occupations, as determined by the board. “Degree” as used in this subsection means a document that provides evidence or demonstrates completion of a course of instruction that results in the attainment of a rank or level of associate or higher.

Source: S.L. 1977, ch. 159, § 5; 1983, ch. 82, § 23; 1993, ch. 168, § 2; 1999, ch. 165, § 4; 2005, ch. 146, § 2; 2009, ch. 161, § 3; 2013, ch. 137, § 7; 2015, ch. 135, § 3, effective August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 3 of chapter 135, S.L. 2015 became effective August 1, 2015.

15-20.4-05. Prohibition.

A person, group, or entity of whatever kind, alone or in concert with others, may not:

1. Operate, in this state, a postsecondary career school not exempted from the provisions of this chapter, unless said school has a currently valid authorization to operate issued pursuant to the provisions of this chapter.
2. Instruct or educate, or offer to instruct or educate, including advertising or soliciting for such purpose, enroll or offer to enroll, contract or offer to contract with any person for such purpose, or award any educational credential, or contract with any school or party to perform any such act, at a facility or location in this state unless such person, group, or entity observes and is in compliance with the minimum standards and criteria established by the board pursuant to subsection 1 of section 15-20.4-03, and the rules and regulations adopted by the board pursuant to subsection 6 of section 15-20.4-03.
3. Use the term “university”, “institute”, or “college” without authorization to do so from the board.
4. Grant, or offer to grant, educational credentials, without authorization to do so from the board.

Source: S.L. 1977, ch. 159, § 6; 1999, ch. 165, § 5; 2001, ch. 167, § 2; 2013, ch. 137, § 8.

15-20.4-06. Refund of tuition fees.

1. Postsecondary career schools shall refund tuition and other charges, other than a reasonable application fee, when written notice of cancellation is given by the student in accordance with the following schedule:
   1. When notice is received prior to, or within seven days after completion of the first day of instruction, or after receipt of the first correspondence lesson by the school, all tuition and other charges must be refunded to the student.
   2. When notice is received prior to, or within thirty days after completion of the first day of instruction, or prior to the completion of one-fourth of the educational services, all tuition and other charges except twenty-five percent thereof must be refunded to the student.
   3. When notice is received upon or after completion of one-fourth of the educational services, but prior to the completion of one-half of the educational services, all tuition and other charges except fifty percent thereof must be refunded to the student.
   4. When notice is received upon or after the completion of fifty percent of the educational services, no tuition or other charges may be refunded to the student.
2. The provisions of this section do not prejudice the right of any student to recovery in an action against any postsecondary career school for breach of contract or fraud.
3. A postsecondary career school may implement a refund schedule that deviates from subsection 1 if the proposed refund schedule is more favorable to the student than the schedule described in subsection 1.

Source: S.L. 1977, ch. 159, § 7; 2005, ch. 146, § 3; 2009, ch. 161, § 4; 2013, ch. 137, § 9.

15-20.4-07. Negotiation of promissory instruments. [Repealed]

Repealed by S.L. 2009, ch. 161, § 7.

15-20.4-08. Cancellation of contract for instrument.

Any person has the right for any cause to rescind, revoke, or cancel a contract for educational services at any postsecondary career school within seven days after entering into such contract without incurring any tort or contract liability. In such event, the postsecondary career school may retain the amount of tuition and other charges as set forth in subsection 1 of section 15-20.4-06.

Source: S.L. 1977, ch. 159, § 9; 2013, ch. 137, § 10.

15-20.4-09. Remedy of defrauded student — Treble damages.

Any person defrauded by any advertisement or circular issued by a postsecondary career school, or by any person who sells textbooks to the school or to the pupils thereof, may recover from such school or person three times the amount paid.

Source: S.L. 1977, ch. 159, § 10; 1999, ch. 165, § 7; 2013, ch. 137, § 11.

15-20.4-10. Board review.

Any person aggrieved by a decision of the board respecting denial or revocation of an authorization to operate, or the placing of conditions thereon, whether on initial application or on application for renewal, and any person aggrieved by the imposition of a penalty by the board under section 15-20.4-12, has the right to a hearing and review of such decision by the board and to judicial review in accordance with chapter 28-32.

Source: S.L. 1977, ch. 159, § 11; 1999, ch. 165, § 8.

15-20.4-11. Violations — Civil penalty.

Any person, group, or entity, or any owner, officer, or employee thereof, who violates the provisions of section 15-20.4-05, or who fails or refuses to deposit with the board the records required by the board under this chapter, is subject to a civil penalty not to exceed one hundred dollars for each violation. Each day’s failure to comply with the provisions of said sections is a separate violation. Such fine may be imposed by the board in an administrative proceeding or by any court of competent jurisdiction.

Source: S.L. 1977, ch. 159, § 12; 1999, ch. 165, § 9.

15-20.4-12. Violations — Criminal penalty.

Any person, group, or entity, or any owner, officer, or employee thereof, who willfully violates the provisions of section 15-20.4-05, or who willfully fails or refuses to deposit with the board the records required by the board under this chapter, is guilty of a class B misdemeanor. The criminal sanctions may be imposed by a court of competent jurisdiction in an action brought by the attorney general of this state or a state’s attorney pursuant to section 15-20.4-14.

Source: S.L. 1977, ch. 159, § 13; 1999, ch. 165, § 10.

15-20.4-13. Jurisdiction of courts — Service of process.

Any postsecondary career school not exempt from this chapter, which has a place of business in this state, and which instructs or educates, or offers to instruct or educate, enrolls or offers to enroll, or contracts or offers to contract, to provide instructional or educational services in this state, whether such instruction or services are provided in person or by correspondence, to a resident of this state, or which offers to award or awards any educational credentials to a resident of this state, submits such school, and if a natural person, the person’s personal representative, to the jurisdiction of the courts of this state, concerning any claim for relief arising therefrom, and for the purpose of enforcement of this chapter by injunction pursuant to section 15-20.4-14. Service of process upon any such school subject to the jurisdiction of the courts of this state may be made by personally serving the summons upon the defendant within or outside this state, in the manner prescribed by the North Dakota Rules of Civil Procedure, with the same force and effect as if the summons had been personally served within this state. Nothing contained in this section limits or affects the right to serve any process as prescribed by the North Dakota Rules of Civil Procedure.

Source: S.L. 1977, ch. 159, § 14; 1985, ch. 82, § 27; 1999, ch. 165, § 11; 2013, ch. 137, § 12.

15-20.4-14. Enforcement — Injunction.

1. The attorney general of this state, or the state’s attorney of any county in which a postsecondary career school is found, at the request of the board or on the attorney general’s own motion, may bring any appropriate action or proceeding, including injunctive proceedings, or criminal proceedings pursuant to section 15-20.4-12, in any court of competent jurisdiction for the enforcement of the provisions of this chapter.
2. Whenever it appears to the board that any person, group, or entity is, is about to, or has been violating any of the provisions of this chapter or any of the lawful rules, regulations, or orders of the board, the board may, on its own motion or on the written complaint of any person, file a petition for injunction in the name of the board in any court of competent jurisdiction in this state against such person, group, or entity, for the purpose of enjoining such violation or for an order directing compliance with the provisions of this chapter, and all rules, regulations, and orders issued hereunder. It is not necessary that the board allege or prove that it has no adequate remedy at law. The right of injunction provided in this section is in addition to any other legal remedy which the board has, and is in addition to any right of criminal prosecution provided by law; provided, however, the board may not obtain a temporary restraining order without notice to the person, group, or entity affected. The existence of board action with respect to alleged violations of this chapter does not operate as a bar to an action for injunctive relief pursuant to this section.

Source: S.L. 1977, ch. 159, § 15; 1999, ch. 165, § 12; 2013, ch. 137, § 13.

15-20.4-15. Unlawful to issue, manufacture, or use false academic degrees — Penalty. [Repealed]

Repealed by S.L. 2013, ch. 137, § 14.

15-20.4-16. Unlawful to use degree or certificate when coursework not completed — Penalty. [Repealed]

Repealed by S.L. 2013, ch. 137, § 14.

15-20.4-17. Consumer protection — False academic degrees. [Repealed]

Repealed by S.L. 2013, ch. 137, § 14.

15-20.4-18. Unlawful to operate accreditation mill — Penalty. [Repealed]

Repealed by S.L. 2013, ch. 137, § 14.

15-20.4-19. Compliance with professional board registration and certification requirements.

A postsecondary career school shall give written notification to potential students applying for enrollment in a course or program that customarily leads to professional registration or certification of the status of the course or program compliance with the registration or certification requirements of the appropriate professional board in the state. A postsecondary career school shall give written notification to all students enrolled in a program or course that customarily leads to professional registration or certification of any change in the status of the course or program compliance with the registration or certification requirements of the appropriate professional board in the state.

History. S.L. 2015, ch. 135, § 4, effective August 1, 2015.

Effective Date.

This section became effective August 1, 2015.

15-39.1-01. Teachers’ fund for retirement created.

There is hereby created the teachers’ fund for retirement, which, upon the effective date of this chapter shall consist of the following:

1. All moneys contained in the teachers’ insurance and retirement fund accumulated pursuant to chapter 15-39; and
2. All moneys thereafter received by the state treasurer under the provisions of this chapter.

Source: S.L. 1971, ch. 184, § 1.

15-39.1-02. Prior fund terminated.

The teachers’ insurance and retirement fund shall, on July 1, 1971, cease to exist and the board administering said fund shall no longer function. All obligations of the teachers’ insurance and retirement fund must be assumed by the newly created fund.

Source: S.L. 1971, ch. 184, § 1.

15-39.1-03. Rights under prior chapter preserved.

No person may be caused to be deprived of rights vested under the chapter superseded hereby. Any such person may elect to claim the person’s retirement benefits according to the provisions of the retirement program for teachers in effect prior to July 1, 1971.

Source: S.L. 1971, ch. 184, § 1.

15-39.1-04. Definitions.

For purposes of this chapter, unless the context or subject matter otherwise requires:

1. “Actuarial equivalent” means the amount calculated to be of equal actuarial value to the benefit otherwise payable when computed on the basis of actuarial assumptions and methods adopted by the board.
2. “Beneficiary” means a person, estate, trust, or organization designated in writing by a participating member to receive benefits provided by this plan, in receipt of benefits, or otherwise provided under section 15-39.1-17.
3. “Board” means the board of trustees of the teachers’ fund for retirement.
4. “Contract” means a written agreement with a school board or other governing body of a school district or special education unit of this state or a letter of appointment by a state institution, state agency, or other employer participating in the fund.
5. “Fund” means the teachers’ fund for retirement.
6. “Interest” as applied to member assessments is an annual rate of six percent compounded monthly and as applied to the repurchase of credit for withdrawn years is six percent compounded annually.
7. “Normal retirement age” means the age at which a member becomes eligible for monthly lifetime normal unreduced retirement benefits as provided in subsection 1 of section 15-39.1-10.
8. “Retirement” means cessation of covered employment and acceptance of a benefit under former chapter 15-39, or chapter 15-39.1 or 15-39.2.
9. “Retirement annuity” means the payments made by the fund to a member after retirement, these payments beginning on the first or fifteenth day of the month following eligibility for a benefit.
10. “Salary” means a member’s earnings in eligible employment under this chapter for teaching, supervisory, administrative, and extracurricular services during a plan year 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, 132(f), 401(k), 403(b), 414(h), or 457, as amended. “Salary” includes amounts paid to members for performance of duties, unless amounts are conditioned on or made in anticipation of an individual member’s retirement or termination. The annual salary of each member taken into account in determining benefit accruals and contributions may not exceed the annual compensation limits established under 26 U.S.C. 401(a)(17)(B), as amended, as adjusted for increases in the cost of living in accordance with 26 U.S.C. 401(a)(17)(B), as amended. A salary maximum is not applicable to members whose participation began before July 1, 1996. “Salary” does not include:
    1. Fringe benefits or side, nonwage, benefits that accompany or are in addition to a member’s employment, including insurance programs, annuities, transportation allowances, housing allowances, meals, lodging, or expense allowances, or other benefits provided by a member’s employer.
    2. Insurance programs, including medical, dental, vision, disability, life, long-term care, workforce safety and insurance, or other insurance premiums or benefits.
    3. Payments for unused sick leave, personal leave, vacation leave, or other unused leave.
    4. Early retirement incentive pay, severance pay, or other payments conditioned on or made in anticipation of retirement or termination.
    5. Teacher’s aide pay, referee pay, bus driver pay, or janitorial pay.
    6. Amounts received by a member in lieu of previously employer-provided benefits or payments that are made on an individual selection basis.
    7. Signing bonuses as defined under section 15.1-09-33.1.
    8. Other benefits or payments not defined in this section which the board determines to be ineligible teachers’ fund for retirement salary.
11. “State institution” includes North Dakota vision services — school for the blind, the school for the deaf, and the North Dakota youth correctional center.
12. “Teacher” means:
    1. All persons licensed by the education standards and practices board who are contractually employed in teaching, supervisory, administrative, or extracurricular services by a state institution, multidistrict special education unit, area career and technology center, regional education association, school board, or other governing body of a school district of this state, including superintendents, assistant superintendents, business managers, principals, assistant principals, and special teachers. For purposes of this subdivision, “teacher” includes persons contractually employed by one of the above employers to provide teaching, supervisory, administrative, or extracurricular services to a separate state institution, state agency, multidistrict special education unit, area career and technology center, regional education association, school board, or other governing body of a school district of this state under a third-party contract.
    2. The superintendent of public instruction, assistant superintendents of public instruction, county superintendents, assistant superintendents, supervisors of instruction, the professional staff of the department of career and technical education, the professional staff of the center for distance education, the executive director and professional staff of North Dakota united who are members of the fund on July 1, 1995, the professional staff of an interim school district, and the professional staff of the North Dakota high school activities association who are members of the fund on July 1, 1995.
    3. The executive director and professional staff of the North Dakota council of school administrators who are members of the fund on July 1, 1995, and licensed staff of teachers centers, but only if the person was previously a member of and has credits in the fund.
    4. Employees of institutions under the control and administration of the state board of higher education who are members of the fund on July 16, 1989.
13. “Tier one grandfathered member” for purposes of sections 15-39.1-10 and 15-39.1-12 means a tier one member who, as of June 30, 2013, is vested as a tier one member in accordance with section 15-39.1-11; and
    1. Is at least fifty-five years of age; or
    2. Has a combined total of years of service credit in the plan and years of age which equals or exceeds sixty-five.
14. “Tier one member” means a teacher who has credit in the system on July 1, 2008, and has not taken a refund pursuant to section 15-39.1-20 after June 30, 2008.
15. “Tier one nongrandfathered member” for purposes of sections 15-39.1-10 and 15-39.1-12 means a tier one member who does not qualify as a tier one grandfathered member.
16. “Tier two member” means a teacher who is not a tier one member.

Source: S.L. 1971, ch. 184, § 1; 1975, ch. 150, § 1; 1975, ch. 151, § 9; 1979, ch. 233, § 2; 1981, ch. 190, § 1; 1981, ch. 191, § 1; 1983, ch. 216, § 1; 1985, ch. 218, § 1; 1987, ch. 220, § 1; 1987, ch. 221, § 1; 1989, ch. 217, § 1; 1989, ch. 218, § 1; 1991, ch. 187, § 1; 1993, ch. 191, § 1; 1995, ch. 34, § 10; 1995, ch. 120, § 25; 1995, ch. 186, § 5; 1995, ch. 191, § 1; 1997, ch. 169, § 1; 1999, ch. 162, § 32; 1999, ch. 175, § 1; 2001, ch. 169, §§ 1, 2; 2001, ch. 257, § 6; 2003, ch. 138, § 42; 2003, ch. 140, § 1; 2003, ch. 561, § 3; 2005, ch. 147, § 1; 2007, ch. 156, § 7; 2007, ch. 157, §§ 1, 2; 2009, ch. 162, § 1; 2009, ch. 163, § 1; 2011, ch. 124, § 1; 2011, ch. 125, § 1; 2013, ch. 141, § 1; 2015, ch. 136, § 1, effective August 1, 2015; 2017, ch. 129, § 3, effective August 1, 2017.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 136, S.L. 2015 became effective August 1, 2015.

15-39.1-05. Management of fund. [Repealed]

Repealed by S.L. 1997, ch. 170, § 4.

Note.

For present provisions, see N.D.C.C. § 15-39.1-05.2.

15-39.1-05.1. Board composition — Terms — Voting.

1. The authority to set policy for the fund rests in a board of trustees composed as follows:
   1. The governor shall appoint, from a list of three nominees submitted to the governor by North Dakota united, two board members who are actively employed as elementary or secondary teachers in full-time positions not classified as school administrators. A board member appointed under this subdivision who terminates employment may not continue to serve as a member of the board.
   2. The governor shall appoint, from a list of three nominees submitted to the governor by the North Dakota council of educational leaders, one board member who is actively employed as a full-time school administrator. A board member appointed under this subdivision who terminates employment may not continue to serve as a member of the board.
   3. The governor shall appoint, from a list of three nominees submitted to the governor by the North Dakota retired teachers association, two board members who are the retired members of the fund.
   4. The state treasurer and the superintendent of public instruction.
2. All current appointees of the board shall serve the remainder of their terms as members of the board until their terms expire and their successors are appointed. The first newly appointed board member under subdivision a of subsection 1 must be appointed to serve an initial term of four years. The first newly appointed board member under subdivision c of subsection 1 must be elected to serve an initial term of five years. Newly appointed board members shall serve a term of five years. Each newly appointed term begins on July first.
3. Each board member is entitled to one vote, and four members constitute a quorum. Four votes are required for resolution or action by the board.

Source: S.L. 1997, ch. 170, § 1; 2017, ch. 129, § 4, effective August 1, 2017.

15-39.1-05.2. Board authority — Continuing appropriation.

The board:

1. Has the powers and privileges of a corporation, including the right to sue and be sued in its own name. The venue of all actions to which the board is a party must be Burleigh County.
2. Shall establish investment policy for the trust fund under section 21-10-02.1. The investment policy must include:
   1. Acceptable rates of return, liquidity, and levels of risk; and
   2. Long-range asset allocation targets.
3. Shall arrange for actuarial and medical consultants. The board shall cause a qualified, competent actuary to be retained on a consulting basis. The actuary shall:
   1. Make a valuation of the liabilities and reserves of the fund and a determination of the contributions required by the fund to discharge its liabilities and pay administrative costs;
   2. Recommend to the board rates of employer and employee contributions required, based upon the entry age normal cost or other accepted actuarial method, to maintain the fund on an actuarial reserve basis;
   3. Once every five years make a general investigation of the actuarial experience under the fund, including mortality, retirement, employment turnover, and other items required by the board;
   4. Recommend actuarial tables for use in valuations and in calculating actuarial equivalent values based on the investigation provided for in subdivision c; and
   5. Perform other duties assigned by the board.
4. May pay benefits and consultant fees as necessary which are hereby appropriated from the fund.
5. Shall submit to the legislative management’s employee benefits programs committee any necessary or desirable changes in statutes relating to the administration of the fund.
6. Shall determine appropriate levels of service to be provided to members, including benefits counseling and preretirement programs.
7. Shall, through resolution, inform the state investment board, which is the administrative board of the retirement and investment office, the levels of services, goals, and objectives expected to be provided through the retirement and investment office.

Source: S.L. 1997, ch. 170, § 2; 2009, ch. 482, § 8.

15-39.1-06. Organization of board.

The board may hold meetings as necessary for the transaction of business and a meeting may be called by the president or any two members of the board upon reasonable notice to the other members of the board. The president for the ensuing year must be elected at the first meeting following July first of each year.

Source: S.L. 1971, ch. 184, § 1; 1987, ch. 220, § 2; 1989, ch. 217, § 3; 1989, ch. 667, § 2; 1995, ch. 191, § 2.

15-39.1-07. Vacancies — Rulemaking power.

Vacancies which may occur among the appointed members of the board must be filled by the governor and the appointee shall complete the term for which the original member was selected. The board may adopt such rules as may be necessary to fulfill the responsibilities of the board.

Source: S.L. 1971, ch. 184, § 1.

15-39.1-08. Compensation of members.

Members of the board, excluding ex officio members, are entitled to receive one hundred forty-eight dollars as compensation per day and necessary mileage and travel expenses as provided in sections 44-08-04 and 54-06-09 for attending meetings of the board. No member of the board may lose regular salary, vacation pay, vacation or any personal leave, or be denied right of attendance by the state or political subdivision thereof while serving on official business of the fund.

Source: S.L. 1971, ch. 184, § 1; 1985, ch. 219, § 1; 1997, ch. 169, § 2; 2011, ch. 48, § 4.

15-39.1-09. Membership in fund and assessments — Employer payment of employee contribution. [Contingent effective date – See note]

1. Except as otherwise provided by law, every teacher is a member of the fund and must be assessed upon the teacher’s salary seven and seventy-five hundredths percent per annum, which must be deducted, certified, and paid monthly to the fund by the disbursing official of the governmental body by which the teacher is employed. Member contributions increase to nine and seventy-five hundredths percent per annum beginning July 1, 2012, and increase thereafter to eleven and seventy-five hundredths percent per annum beginning July 1, 2014. Except as otherwise provided by law, every governmental body employing a teacher shall pay to the fund eight and seventy-five hundredths percent per annum of the salary of each teacher employed by it. Contributions to be paid by a governmental body employing a teacher increase to ten and seventy-five hundredths percent per annum beginning July 1, 2012, and increase thereafter to twelve and seventy-five hundredths percent per annum beginning July 1, 2014. The required amount of member and employer contributions must be reduced to seven and seventy-five hundredths percent per annum effective on the July first that follows the first valuation showing a ratio of the actuarial value of assets to the actuarial accrued liability of the teachers’ fund for retirement that is equal to or greater than one hundred percent. The disbursing official of the governmental body shall certify the governmental body payments and remit the payments monthly to the fund.
2. Each employer, at its option, may pay the teacher contributions required by subsection 1 for all compensation earned after June 30, 1983. The amount paid must be paid by the employer in lieu of contributions by the employee. If an employer decides not to pay the contributions, the amount that would have been paid will continue to be deducted from compensation. If contributions are paid by the employer, they must be treated as employer contributions in determining income 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 teacher in determining tax treatment under this code and the Internal Revenue Code until they are distributed or made available. The employer shall pay these teacher contributions from the same source of funds used in paying compensation to the teachers. 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. If teacher 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 teacher contributions made prior to the date the contributions were assumed by the employer. The option given employers by this subsection must be exercised in accordance with rules adopted by the board.
3. A person, except the superintendent of public instruction, who is certified to teach in this state by the education standards and practices board and who is first employed and entered upon the payroll of the superintendent of public instruction after January 6, 2001, may elect to become a participating member of the public employees retirement system. An election made by a person to participate in the public employees retirement system under this subsection is irrevocable. Nonteaching employees of the superintendent of public instruction, including the superintendent of public instruction, may elect to transfer to the public employees retirement system pursuant to section 54-52-02.13. Employees of the state board for career and technical education may elect to transfer to the public employees retirement system pursuant to section 54-52-02.14.
4. An individual who is first employed and entered upon the payroll of the state board for career and technical education after July 1, 2007, may elect to become a participating member of the public employees retirement system. An election made by an individual to participate in the public employees retirement system under this subsection is irrevocable.

Source: S.L. 1971, ch. 184, § 1; 1975, ch. 151, § 1; 1977, ch. 168, § 1; 1979, ch. 234, § 1; 1983, ch. 217, § 1; 1985, ch. 222, § 1; 1987, ch. 220, § 3; 1987, ch. 222, § 1; 1989, ch. 220, § 1; 1989, ch. 221, § 1; 1991, ch. 187, § 2; 1997, ch. 171, § 1; 1999, ch. 176, § 1; 2001, ch. 170, § 1; 2003, ch. 34, § 14; 2007, ch. 483, § 1; 2007, ch. 157, § 3; 2009, ch. 22, § 4; 2011, ch. 125, § 2; 2013, ch. 142, § 1.

Note.

Section 5 of chapter ch. 22, S.L. 2009, provides: “ APPLICATION. Section 4 [which amends this section], of this Act applies to salaries earned after June 30, 2010.”

Section 7 of chapter ch. 22, S.L. 2009, provides: “ EXPIRATION DATE. Section 4 [which amends this section], of this Act is effective until the ratio of the actuarial value of assets to the actuarial accrued liability of the teachers’ fund for retirement increases to ninety percent based upon the actuarial value of assets and expires on the July first that follows the first valuation that shows a ninety percent funded ratio. The board of trustees of the teachers’ fund for retirement shall notify the legislative council of the expiration date of section 4 of this Act.”

Section 14 of chapter ch. 157, S.L. 2007 provides: “ APPLICATION. Sections 1, 6, 10, 11, 12, and 15 of this Act apply to salaries earned on and after July 1, 2007, and sections 2, 3 [which amends this section], 4, 5, 7, 8, 9, and 13 of this Act become effective on July 1, 2008.”

Section 17 of chapter ch. 157, S.L. 2007, provides: “ EXPIRATION DATE. Section 3 of this Act [which amends this section] is effective until the ratio of the actuarial value of assets to the actuarial accrued liability of the teachers’ fund for retirement increases to ninety percent based upon the actuarial value of assets and expires on the July first that follows the first valuation that shows a ninety percent funded ratio. The board of trustees of the teachers’ fund for retirement shall notify the legislative council of the expiration date of section 3 of this Act.”

Section 3 of chapter 171, S.L. 1997 provides in part:

“Section 1 of this Act does not apply to existing contracts between school districts and their employees under which the school district pays the teacher contribution pursuant to subsection 2 of section 15-39.1-09.”

15-39.1-09.1. Participation of nonpublic schoolteachers. [Repealed]

Repealed by S.L. 1993, ch. 191, § 3.

15-39.1-10. Eligibility for normal retirement benefits.

1. The following members who have acquired a vested right to a retirement annuity as set forth in section 15-39.1-11 are eligible to receive monthly lifetime normal unreduced retirement benefits under this section:
   1. All tier one and tier two members who have attained the age of sixty-five years.
   2. All tier one grandfathered members who have a combined total of years of service credit and years of age which equals or exceeds eighty-five.
   3. All tier one nongrandfathered members and tier two members who are at least sixty years of age and who have a combined total of years of service credit and years of age which equals or exceeds ninety.
2. The amount of retirement benefits is two percent of the final average monthly salary of the member multiplied by the number of years of credited service. For the purposes of this subsection, final average monthly salary for a tier one member means one thirty-sixth of the total of the member’s highest annual salaries earned between July first of a calendar year and June thirtieth of the subsequent calendar year for any three years of service credit under the fund. For purposes of this subsection, final average monthly salary for a tier two member means one sixtieth of the total of the member’s highest annual salaries earned between July first of a calendar year and June thirtieth of the subsequent calendar year for any five years of service credit under the fund.
3. Notwithstanding any other provision of this section, no member who retired on July 1, 1993, or after and is eligible to receive benefits under former chapter 15-39, chapter 15-39.1, or section 15-39.2-02, may receive benefits which are less than:
   1. Ten dollars per month per year of teaching to twenty-five years.
   2. Fifteen dollars per month per year of teaching over twenty-five years.
4. For a member who attains age seventy and one-half before January 1, 2020, the member’s required beginning date is no later than April first of the calendar year following the year the member attains age seventy and one-half or April first of the calendar year following the year the member terminates covered employment, whichever is later. For a member who attains age seventy and one-half after December 31, 2019, the member’s required beginning date is no later than April first of the calendar year following the year the member attains age seventy-two or April first of the calendar year following the year the member terminates covered employment, whichever is later. Payments must be made over a period of time which does not exceed the life expectancy of the member or the joint life expectancy of the member and the beneficiary. Payment of minimum distributions must be made in accordance with section 401(a)(9) of the Internal Revenue Code, as amended, and the regulations issued under that section, as applicable to governmental plans.

Source: S.L. 1971, ch. 184, § 1; 1975, ch. 151, § 2; 1977, ch. 168, § 2; 1979, ch. 234, § 2; 1979, ch. 235, § 2; 1983, ch. 218, § 2; 1985, ch. 220, § 1; 1987, ch. 222, § 2; 1989, ch. 221, § 2; 1989, ch. 222, § 1; 1991, ch. 189, § 1; 1993, ch. 192, § 1; 1995, ch. 191, § 3; 1997, ch. 171, § 2; 1997, ch. 172, § 1; 1999, ch. 175, § 2; 1999, ch. 177, § 1; 2001, ch. 171, § 1; 2005, ch. 147, § 2; 2007, ch. 157, § 4; 2009, ch. 162, § 2; 2011, ch. 124, § 2; 2011, ch. 125, § 3; 2013, ch. 141, § 2; 2015, ch. 136, § 2, effective August 1, 2015; 2021, ch. 133, § 1, effective August 1, 2021.

Effective Date.

The 2015 amendment of this section by section 2 of chapter 136, S.L. 2015 became effective August 1, 2015.

Note.

Section 3 of chapter 177, S.L. 1999, effective August 1, 1999, provides:

“ APPLICATION OF ACT. Subsection 2 of Section 15-39.1-10 applies only to individuals who begin receiving benefits from the fund under chapter 15-39.1 after June 30, 1999, and applies to those benefits payable after June 30, 1999.”

Section 3 of chapter 171, S.L. 1997 provides in part:

“Section 2 of this Act applies only to individuals who begin receiving benefits from the fund under chapter 15-39.1 after June 30, 1997, and applies to those benefits payable after June 30, 1997.”

Section 3 of chapter 172, S.L. 1997, provides in part:

“Section 1 of this Act applies only to individuals who begin receiving benefits from the fund under chapter 15-39.1 after June 30, 1997, and applies to those benefits payable after June 30, 1997.”

Section 4 of chapter 192, S.L. 1993, provides that section 1 of the act, which amended this section, applies only to individuals who begin receiving monthly benefits from the fund under chapter 15-39.1 after June 30, 1993, and applies to those benefits payable after June 30, 1993.

15-39.1-10.1. Postretirement adjustments.

Every person receiving monthly benefits from the fund on an account on which benefits were being paid on June 30, 1983, shall receive an increase in benefits beginning July 1, 1983, equal to fifteen percent of the person’s present annuity. The percentage must be adjusted, if necessary, so that the maximum increase would be no more than forty-five dollars per month. The fifteen percent increase in benefits must be adjusted in percentage so that no person receives less than one dollar per month per year of teaching credit.

Source: S.L. 1983, ch. 218, § 1.

15-39.1-10.2. Postretirement adjustments.

Every person receiving monthly benefits from the fund on an account on which benefits were being paid on June 30, 1985, shall receive an increase in benefits beginning July 1, 1985, equal to one percent for each year the person has been retired under the fund. No member may receive more than a ten percent or more than a forty dollar per month increase in benefits under this section.

Source: S.L. 1985, ch. 220, § 2.

15-39.1-10.3. Multiple plan membership — Eligibility for benefits — Amount of benefits.

1. 1. For the purpose of determining vesting of rights and eligibility for benefits under this chapter, a teacher’s years of service credit is the total of the years of service credit earned in the fund and the years, with twelve months of compensation equal to a year, of service employment earned in any number of the following alternate plans:
      1. The public employees retirement system.
      2. The highway patrolmen’s retirement system.
   2. If a teacher terminates eligible employment under the fund, if that teacher has not received a refund of member contributions, and if that teacher begins eligible employment in a plan described in paragraph 1 or 2 of subdivision a, that teacher may elect to remain an inactive member of the fund without refund of contributions. The board shall terminate the inactive status of a teacher under this subdivision if the teacher gains eligible employment under this chapter or if the teacher terminates eligible employment under a plan described in paragraph 1 or 2 of subdivision a.
   3. Pursuant to rules adopted by the board, a teacher who has service credit in the fund and in any number of the alternate plans described in paragraphs 1 and 2 of subdivision a is entitled to benefits under this chapter.
      1. A tier one member may elect to have benefits calculated using the benefit formula in subsection 2 of section 15-39.1-10 under either of the following calculation methods:
         1. Using the three highest certified fiscal year salaries of this plan in the computation of final average salary and all service credit earned in this plan; or
         2. Using the three highest certified fiscal year salaries of this plan combined with the alternate plan in the computation of final average salary and service credit not to exceed one year in any fiscal year when combined with the service credit earned in the alternate retirement plan.
      2. A tier two member may elect to have benefits calculated using the benefit formula in subsection 2 of section 15-39.1-10 under either of the following calculation methods:
         1. Using the five highest certified fiscal year salaries of this plan in the computation of final average salary and all service credit earned in this plan; or
         2. Using the five highest certified fiscal year salaries of this plan combined with the alternate plan in the computation of final average salary and service credit not to exceed one year in any fiscal year when combined with the service credit earned in the alternate retirement plan.
2. 1. If a teacher, who is eligible to participate in this fund, is also eligible to participate in an alternate retirement system, the employee is a member of the teachers’ fund for retirement for duties covered under this fund, and the employee is also a member of the public employees retirement system or highway patrolmen’s retirement system for duties covered by those alternate retirement systems. The employers shall pay the member and employer contributions at the rates currently existing for the applicable system.
   2. If a teacher described in subdivision a was employed prior to August 1, 2003, and has dual member rights, the teacher may elect to begin participation in the alternate plan pursuant to the plan provisions on August 1, 2003, or may continue participation pursuant to the plan provisions in effect on July 31, 2003. A plan participation election is required by five p.m. on October 31, 2003. If an election is not received by the retirement plan, the participation and benefit calculation requirements of this chapter as of July 31, 2003, continue to be in effect for the teacher.
3. Under rules adopted by the board, an individual whose service credit was canceled when that individual received a refund of assessments at termination of employment under this chapter may, while that individual participates in a plan described in paragraph 1 or 2 of subdivision a of subsection 1, repurchase that service credit that was canceled.

Service credit may not exceed one year of service in any fiscal year in determining vesting and benefit eligibility.

Source: S.L. 1985, ch. 222, § 2; 1987, ch. 223, § 1; 1989, ch. 217, § 5; R.M. disapproved December 5, 1989, S.L. 1991, ch. 740; 2003, ch. 140, § 2; 2007, ch. 157, § 5.

Note.

Section 14 of chapter 157, S.L. 2007 provides: “ APPLICATION. Sections 1, 6, 10, 11, 12, and 15 of this Act apply to salaries earned on and after July 1, 2007, and sections 2, 3, 4, 5 [which amends this section], 7, 8, 9, and 13 apply to salaries earned on and after July 1, 2008.”

15-39.1-10.4. Postretirement adjustments.

An individual who, on June 30, 1987, is receiving benefits from the fund on an account paid under former chapter 15-39 is entitled to a monthly increase in that individual’s annuity. The monthly increase is fifteen dollars plus one dollar and fifty cents for every year benefits have been drawn from the fund, but cannot exceed an increase of seventy-five dollars per month. An individual who, on June 30, 1987, is receiving benefits from the fund on an account paid under this chapter is entitled to a monthly increase of one dollar and fifty cents for every year benefits have been drawn from the fund.

Source: S.L. 1987, ch. 222, § 4.

15-39.1-10.5. Postretirement adjustments.

An individual who on June 30, 1989, is receiving monthly benefits from the fund on an account paid under this chapter or under former chapter 15-39 is entitled to receive an increase in benefits equal to five cents times the individual’s number of years of service credit under the fund times the number of years the individual has drawn benefits from the fund.

Source: S.L. 1989, ch. 222, § 2.

15-39.1-10.6. Benefit limitations.

Benefits with respect to a member participating under former chapter 15-39 or chapter 15-39.1 or 15-39.2 may not exceed the maximum benefits specified under section 415 of the Internal Revenue Code [26 U.S.C. 415], as amended, for governmental plans. The maximum dollar benefit applicable under section 415(b)(1)(A) of the Internal Revenue Code must reflect any increases in this amount provided under section 415(d) of the Internal Revenue Code, as amended. If a member’s benefit is limited by these provisions at the time of retirement or termination of employment, or in any subsequent year, the benefit paid in any following calendar year may be increased to reflect all cumulative increases in the maximum dollar limit provided under section 415(d) of the Internal Revenue Code for years after the year employment terminated or payments commenced, but not to more than would have been payable in the absence of the limits under section 415 of the Internal Revenue Code. If an annuitant’s benefit is increased by a plan amendment, after the commencement of payments, the member’s benefit may not exceed the maximum dollar benefit under section 415(b)(1)(A) of the Internal Revenue Code, adjusted for the commencement age and form of payment, increased as provided by section 415(d) of the Internal Revenue Code. If this plan must be aggregated with another plan to determine the effect of section 415 of the Internal Revenue Code on a member’s benefit, and if the benefit must be reduced to comply with section 415 of the Internal Revenue Code, then the reduction must be made pro rata between the two plans, in proportion to the member’s service in each plan.

Source: S.L. 1991, ch. 187, § 3; 2003, ch. 140, § 3; 2005, ch. 147, § 3; 2007, ch. 157, § 6; 2009, ch. 162, § 3; 2011, ch. 124, § 3; 2013, ch. 141, § 3; 2015, ch. 136, § 3, effective August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 3 of chapter 136, S.L. 2015 became effective August 1, 2015.

Note.

Section 14 of chapter ch. 157, S.L. 2007 provides: “ APPLICATION. Sections 1, 6 [which amends this section], 10, 11, 12, and 15 of this Act apply to salaries earned on and after July 1, 2007, and sections 2, 3, 4, 5, 7, 8, 9, and 13 apply to salaries earned on and after July 1, 2008.”

15-39.1-10.7. Postretirement adjustments.

An individual who on June 30, 1991, is receiving monthly benefits from the fund on an account paid under this chapter or under former chapter 15-39 is entitled to receive three dollars per month multiplied by the individual’s number of years of credited service for individuals who retired before 1980, two dollars per month multiplied by the individual’s number of years of credited service for individuals who retired after 1979 and before 1984, or one dollar per month multiplied by the individual’s number of years of credited service for individuals who retired after 1983 and who retire before July 1, 1991, or an increase of ten percent in the individual’s currently payable annuity, whichever is greater. The minimum monthly increase under this section is five dollars and the maximum monthly increase under this section is seventy-five dollars.

Source: S.L. 1991, ch. 189, § 2.

15-39.1-10.8. Postretirement adjustments.

An individual who on June 30, 1993, is receiving monthly benefits from the fund on an account paid under this chapter or under former chapter 15-39 is entitled to receive three dollars per month multiplied by the individual’s number of years of credited service for individuals who retired before 1980, two dollars and fifty cents per month multiplied by the individual’s number of years of credited service for individuals who retired after 1979 and before 1984, or one dollar per month multiplied by the individual’s number of years of credited service for individuals who retired after 1983 and who retire before July 1, 1993, or an increase of ten percent in the individual’s currently payable annuity, whichever is greater. The minimum monthly increase under this section is five dollars and the maximum monthly increase under this section is one hundred dollars.

Source: S.L. 1993, ch. 192, § 2.

15-39.1-10.9. Postretirement adjustment.

An individual who on June 30, 1997, is receiving monthly benefits from the fund on an account paid under this chapter or under former chapter 15-39 is entitled to receive an increase of thirty dollars per month.

Source: S.L. 1997, ch. 172, § 2.

Note.

This section applies to benefits payable after June 30, 1997, pursuant to section 3 of chapter 172, S.L. 1997.

15-39.1-10.10. Postretirement adjustment.

An individual who on June 30, 1999, is receiving monthly benefits from the fund on an account paid under this chapter or under former chapter 15-39 is entitled to receive a monthly increase equal to an amount determined by taking two dollars per month multiplied by the member’s number of years of service credit plus one dollar per month multiplied by the number of years since the member’s retirement.

Source: S.L. 1999, ch. 177, § 2.

Note.

This section applies to benefits payable after June 30, 1999, pursuant to section 3 of chapter 177, S.L. 1999.

15-39.1-10.11. Postretirement adjustments.

An individual who on June 30, 2001, is receiving monthly benefits from the fund on an account paid under this chapter or under former chapter 15-39 is entitled to receive a monthly increase equal to an amount determined by taking two dollars per month multiplied by the member’s number of years of service credit plus one dollar per month multiplied by the number of years since the member’s retirement. In addition, an individual who is receiving monthly benefits from the fund on an account paid under this chapter or under former chapter 15-39 is entitled to receive a seventy-five hundredths of one percent increase of the individual’s current monthly benefit with the increased benefit payable each month thereafter beginning on July 1, 2001. An individual who on June 30, 2002, is receiving monthly benefits from the fund on an account paid under this chapter or under former chapter 15-39 is entitled to receive a seventy-five hundredths of one percent increase of the individual’s current monthly benefit with the increased benefit payable each month thereafter beginning on July 1, 2002. This annual benefit adjustment is conditioned on an actuarial test performed annually by the board’s actuarial consultant to determine the actuarial adequacy of the statutory contribution rate. The board shall report the results of the actuarial test annually to the employee benefits programs committee. If the actuarial valuation indicates a shortfall between the actuarially determined benchmark contribution rate and the statutory rate, the board may reduce or suspend the conditional annual benefit adjustment. The actuarial adequacy test fails if one or more of the following are true:

1. The shortfall is greater than six-tenths of one percent in any year; or
2. The shortfall is greater than three-tenths of one percent in any two consecutive years.

Source: S.L. 2001, ch. 171, § 2.

Note.

This section applies to benefits payable after June 30, 2001, pursuant to section 3 of chapter 171, S.L. 2001.

15-39.1-10.12. Supplemental retiree benefit payment.

An individual who retired before January 1, 2009, and is receiving monthly benefits from the fund on an account paid under this chapter or under former chapter 15-39 on December 1, 2009, is entitled to receive a supplemental payment from the fund. The supplemental payment is equal to an amount determined by taking twenty dollars multiplied by the member’s number of years of service credit plus fifteen dollars multiplied by the number of years since the member’s retirement as of January 1, 2009. The supplemental payment may not exceed the greater of ten percent of the member’s annual annuity or seven hundred fifty dollars. The board shall make the supplemental payment in December 2009.

Source: S.L. 2009, ch. 164, § 1.

15-39.1-11. Vesting of rights.

When a tier one member has earned three years of service credit in this state, that member has a vested right to a retirement annuity but is not entitled to payments under this chapter until the member meets the requirements set forth in section 15-39.1-10 or 15-39.1-12. When a tier two member has earned five years of service credit in this state, that member has a vested right to a retirement annuity but is not entitled to payments under this chapter until the member meets the requirements set forth in section 15-39.1-10 or 15-39.1-12. When a tier one or tier two member has attained normal retirement age that member has a vested right to a retirement annuity under this chapter.

Source: S.L. 1971, ch. 184, § 1; 1979, ch. 234, § 3; 1983, ch. 218, § 3; 1987, ch. 222, § 3; 1999, ch. 175, § 3; 2007, ch. 157, § 7; 2013, ch. 141, § 4.

Note.

Section 14 of chapter ch. 157, S.L. 2007 provides: “ APPLICATION. Sections 1, 6, 10, 11, 12, and 15 of this Act apply to salaries earned on and after July 1, 2007, and sections 2, 3, 4, 5, 7 [which amends this section], 8, 9, and 13 apply to salaries earned on and after July 1, 2008.”

15-39.1-12. Early reduced retirement benefits.

A member who has acquired a vested right to a retirement annuity as set forth in section 15-39.1-11 and who has attained age fifty-five may retire prior to the normal retirement age as set forth in section 15-39.1-10 but the benefits to which the member is then entitled must be reduced according to the following schedule:

1. All tier one grandfathered member benefits must be reduced by six percent per annum from the earlier of:
   1. Age sixty-five; or
   2. The age at which the sum of the member’s current years of service credit and years of age equals eighty-five.
2. All tier one nongrandfathered member and tier two member benefits must be reduced by eight percent per annum from the earlier of:
   1. Age sixty-five; or
   2. The later of:
      1. Age sixty; or
      2. The age at which the sum of the member’s current years of service credit and years of age equals ninety.

Source: S.L. 1971, ch. 184, § 1; 1981, ch. 192, § 1; 1999, ch. 175, § 4; 2007, ch. 157, § 8; 2011, ch. 125, § 4.

Note.

Section 14 of chapter ch. 157, S.L. 2007 provides: “ APPLICATION. Sections 1, 6, 10, 11, 12, and 15 of this Act apply to salaries earned on and after July 1, 2007, and sections 2, 3, 4, 5, 7, 8 [which amends this section], 9, and 13 apply to salaries earned on and after July 1, 2008.”

15-39.1-12.1. Partial service retirement. [Repealed]

Repealed by S.L. 1999, ch. 175, § 9.

15-39.1-12.2. Benefit payments to alternate payee under 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 teacher 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 the teacher, which 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 teacher. 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 fund, 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 teacher has not terminated eligible employment. A qualified domestic relations order must specify:
   1. The name and last-known mailing address of the teacher and the name and mailing address of each alternate payee covered by the order;
   2. The amount or percentage of the teacher’s benefits to be paid by the board 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. 224, § 1.

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.

15-39.1-13. Exemptions from legal process. [Repealed]

Repealed by S.L. 1987, ch. 386, § 2.

15-39.1-14. Retirement not mandatory.

Nothing in this chapter may be construed as requiring retirement at any specific age. If the teacher elects to teach beyond age sixty-five, the teacher continues to earn credits at the same rate as prior to the age of sixty-five.

Source: S.L. 1971, ch. 184, § 1; 1997, ch. 169, § 3.

15-39.1-15. Withdrawal from fund — Return to teaching.

A teacher who has withdrawn from the fund as set forth in this chapter may, by returning to teach in a public school or state institution of this state, regain service credit for prior teaching by making the required payment. The required payment, if made within five years of returning to teach in covered employment, is the amount that was withdrawn with interest. In all other cases, the purchase cost must be on an actuarial equivalent basis. If the teacher returns to teach in covered employment after June 30, 2008, the teacher becomes a tier two member regardless of whether the teacher repurchases service credit earned while the teacher was a tier one member.

Source: S.L. 1971, ch. 184, § 1; 1975, ch. 151, § 3; 1981, ch. 191, § 3; 1989, ch. 225, § 1; 1997, ch. 169, § 4; 2003, ch. 140, § 4; 2007, ch. 157, § 9.

Note.

Section 14 of chapter ch. 157, S.L. 2007 provides: “ APPLICATION. Sections 1, 6, 10, 11, 12, and 15 of this Act apply to salaries earned on and after July 1, 2007, and sections 2, 3, 4, 5, 7, 8, 9 [which amends this section], and 13 apply to salaries earned on and after July 1, 2008.”

15-39.1-16. Option of teachers eligible to receive annuities.

The board shall adopt rules providing for the receipt of retirement benefits in the following optional forms:

Option one. Upon the death of the teacher, the reduced retirement allowance must be continued throughout the life of, and paid to, the teacher’s designated beneficiary named at the time of retirement. If the person designated to receive the teacher’s reduced retirement allowance predeceases the teacher, the reduced retirement allowance must be converted to a single life retirement annuity under which benefit payments, if the person designated died prior to July 1, 1989, must begin on July 1, 1989, or, if the person designated dies on or after July 1, 1989, must begin on the first day of the month following the death of the person designated.

Option two. Upon the death of the teacher, one-half of the reduced retirement allowance must be continued throughout the life of, and paid to, the teacher’s designated beneficiary named at the time of retirement. If the person designated to receive the teacher’s reduced retirement allowance predeceases the teacher, the reduced retirement allowance must be converted to a single life retirement annuity under which benefit payments, if the person designated died prior to July 1, 1989, must begin on July 1, 1989, or, if the designated beneficiary dies on or after July 1, 1989, must begin on the first day of the month following the death of the person designated.

Option three. Upon the death of the teacher within twenty years of the commencement of annuity payments, the payments must be continued for the remainder of the twenty-year period to the teacher’s designated beneficiary. This payment option is available to teachers who retire after July 31, 2003.

Option four. Upon the death of the teacher within ten years of the commencement of annuity payments, the payments must be continued for the remainder of the ten-year period to the teacher’s designated beneficiary.

Option five. Level retirement income with social security option, which is available to teachers retiring before social security is payable.

Option six. Partial lump sum distribution option. A member who is eligible for an unreduced service retirement annuity under section 15-39.1-10 and who retires after July 31, 2003, may make a one-time election to receive a portion of the retirement annuity paid in a lump sum distribution upon retirement, pursuant to rules adopted by the board.

1. The eligible member may select a standard service retirement annuity or an optional service retirement annuity described in this section, together with a partial lump sum distribution. The partial lump sum distribution option is not available to members who have selected option five, the level income retirement option. This option is not available to disabled members or beneficiaries of deceased members. The partial lump sum distribution option may be elected only once by a member and may not be elected by a retiree.
2. The amount of the partial lump sum distribution under this section is twelve months of a standard service retirement annuity computed under section 15-39.1-10 and payable at the same time that the first monthly payment of the annuity is paid.
3. The service retirement annuity selected by the member must be actuarially reduced to reflect the partial lump sum distribution option selected by the member.
4. Before a retiring member selects a partial lump sum distribution under this section, the fund shall provide a written notice to the member of the amount by which the member’s annuity will be reduced because of the selection.

The amount of the reduced retirement allowance payable upon the exercise of any of these options must be computed upon an actuarial basis through the use of standard actuarial tables and based upon the ages of the teacher and the teacher’s designated beneficiary. A member’s spouse, if designated as beneficiary, must consent in writing to the member’s choice of benefit payment option for any benefit payments commencing after June 30, 1999. The board may rely on the member’s representations about that person’s marital status in determining the member’s marital status. The spouse’s written consent must be witnessed by a notary or a plan representative. If the spouse does not consent, or cannot be located, the member’s annuity benefit must be paid using option two, the fifty percent joint and survivor option.

Source: S.L. 1971, ch. 184, § 1; 1981, ch. 193, § 1; 1985, ch. 218, § 2; 1989, ch. 222, § 3; 1989, ch. 226, § 1; 1999, ch. 175, § 5; 2001, ch. 169, § 3; 2003, ch. 140, § 5.

15-39.1-17. Death of member.

1. A member may designate a beneficiary to receive death benefits under the plan when the member dies. If the member is not married, the member may designate a person, estate, or organization as primary beneficiary to receive death benefits. If the member is married, the spouse of the member is the member’s primary beneficiary unless the spouse consents in writing to the member’s alternate primary beneficiary designation. A member also may designate contingent beneficiaries who are entitled to any remaining death benefits if the primary beneficiary dies before receiving all death benefits provided by this plan. If a member dies without naming a contingent beneficiary, the primary beneficiary may name a contingent beneficiary. If there is no named primary or contingent beneficiary, any death benefits will be paid to the estate.
2. If a member has named more than one primary beneficiary, the board shall pay any death benefits to the 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 no primary beneficiaries remain, any death benefits must be paid to the contingent beneficiaries in the same manner.
   1. If before retiring a nonvested member dies, the plan shall pay the member’s account value to the member’s beneficiary.
   2. If before retiring a vested member dies, the member’s beneficiary may select a form of payment as follows:
      1. If the member dies and was eligible for unreduced retirement benefits and if the beneficiary is one person, the beneficiary may select:
         1. A lump sum payment of the member’s account value; or
         2. A lifetime monthly annuity effective on the first of the month following the month of the member’s death. The amount of the monthly annuity is equal to an amount that would have been paid to the beneficiary under a one hundred percent joint and survivor annuity. If the beneficiary dies before receiving the guaranteed member account value, any remaining balance must be paid in a lump sum to a named contingent beneficiary, or if none, to the estate of the recipient.
      2. If the member dies and was not eligible for unreduced retirement benefits and if the beneficiary is one person, the beneficiary may select:
         1. A lump sum payment of the member’s account value; or
         2. A lifetime monthly annuity effective on the first of the month following the month of the member’s death. The amount of the monthly annuity is equal to an amount that would have been paid to the beneficiary under a one hundred percent joint and survivor annuity without reduction for early retirement and using the disability option reduction factor. If the beneficiary dies before receiving the guaranteed member account value, any remaining balance must be paid in a lump sum to a named contingent beneficiary, or if none, to the estate of the recipient.
      3. If the member dies and multiple beneficiaries are eligible for death benefits, the plan shall pay the member’s account value to the member’s beneficiaries.
   3. If a member or beneficiary receiving benefits under this plan dies before the total amount of benefits paid to either or both equals the amount of the member’s account value, the difference must be paid in a lump sum to a named beneficiary, or if none, to the estate of the recipient.

Source: S.L. 1971, ch. 184, § 1; 1975, ch. 151, § 4; 1979, ch. 233, § 4; 1981, ch. 191, § 4; 1985, ch. 218, § 3; 1999, ch. 175, § 6; 2011, ch. 124, § 4.

15-39.1-18. Disability retirements.

1. Any member may also retire and receive a disability annuity if, after a period of at least five years of service as a member in this state, the member qualifies for total disability as determined by the board.
2. The amount of the disability annuity is the amount computed by the retirement formula in section 15-39.1-10 without consideration of age. A member determined eligible for a disability annuity under this section may elect to receive an annuity under any of the options allowed in section 15-39.1-16, except the level retirement income with social security option or the partial lump sum option.
3. The disability annuity continues until the death or prior recovery of the disabled annuitant. The board shall ascertain by periodic medical examinations the continued disability status of a disabled annuitant.
4. If a disabled annuitant recovers and returns to active teaching, that annuitant is entitled to the retirement benefit credits which the annuitant earned prior to the time of disablement, and the credits which the annuitant earned after returning to active teaching must be added to those earned prior to disablement.

Source: S.L. 1971, ch. 184, § 1; 1981, ch. 194, § 1; 1983, ch. 216, § 2; 1987, ch. 221, § 2; 1989, ch. 217, § 6; 1993, ch. 192, § 3; 1995, ch. 191, § 4; 2003, ch. 140, § 6; 2011, ch. 125, § 5.

Note.

Section 4 of chapter 192, S.L. 1993, provides that section 3 of the act, which amended this section, applies only to individuals who begin receiving monthly benefits from the fund under chapter 15-39.1 after June 30, 1993, and applies to those benefits payable after June 30, 1993.

15-39.1-19. Annuities discontinued on resumption of teaching. [Repealed]

Repealed by S.L. 1979, ch. 236, § 2.

15-39.1-19.1. Retired teachers return to active service — Annuities discontinued on resumption of teaching over annual hour limit.

1. 1. Except as otherwise provided in section 15-39.1-19.2, a retired teacher who is receiving a retirement annuity under chapter 15-39, 15-39.1, or 15-39.2 may not return to covered employment until thirty calendar days have elapsed from the member’s retirement date. A retired member may then return to covered employment under an annual hour limit and continue receiving a monthly retirement benefit. The annual hour limit is based on the length of the re-employed retiree’s contract as follows:
      1. Retiree re-employment of nine months or less, annual limit is seven hundred hours;
      2. Retiree re-employment of ten months, annual limit is eight hundred hours;
      3. Retiree re-employment of eleven months, annual limit is nine hundred hours; or
      4. Retiree re-employment of twelve months, annual limit is one thousand hours.
   2. Employment as a noncontracted substitute teacher does not apply to the annual hour limit. Professional development and extracurricular duties do not apply to the annual hour limit.
   3. The retired member and the retired member’s employer must notify the fund office in writing within thirty days of the retired member’s return to covered employment.
   4. A retired member who returns to teaching shall pay the member contributions required by section 15-39.1-09 on the salary received by the retired member. The member contributions must be included in the retired member’s account value and may not be refunded except as provided under subdivision a of subsection 2 of section 15-39.1-19.1 and section 15-39.1-17.
   5. A participating employer who employs a retired member under this section shall pay the employer contributions required by section 15-39.1-09 on the salary of the retired member.
   6. A retired teacher who returns to teaching and does not exceed the annual hour limit must be treated as retired for all other purposes under this chapter. A retired teacher may not earn any additional service during the period of re-employment. The retired teacher’s benefits may not be adjusted to reflect changes in the retired teacher’s age or final average monthly salary at the end of the period of re-employment, any optional form of payment elected under section 15-39.1-16 remains effective during and after the period of re-employment, and additional benefits normally available to an active member, such as disability benefits, are not available to a retired teacher re-employed under this section.
   7. A retired teacher who returns to teaching and exceeds the annual hour limit must immediately notify the fund office in writing. Failure to notify the fund office results in the loss of one month’s annuity benefit for the member. The retired member’s monthly benefit must be discontinued the first of the month following the date the member reaches the annual hour limit.
2. Upon the retired teacher’s subsequent retirement, the member’s benefit must be resumed as follows:
   1. If the teacher subsequently retires with less than two years of additional earned credited service, the teacher’s contributions paid to the fund after the member’s benefit was suspended must be refunded in accordance with section 15-39.1-20 and the teacher is entitled to receive the discontinued annuity, plus any postretirement benefit adjustments granted during the period of re-employment, the first day of the month following the teacher’s re-retirement.
   2. If the teacher subsequently retires with two or more but less than five years of additional earned credited service, the retired person’s annuity is the greater of the sum of the discontinued annuity, plus an additional annuity computed according to this chapter based upon years of service and average salaries earned during the period of re-employment plus any postretirement benefit adjustments granted during the period of re-employment, or a recalculated annuity computed according to this chapter based on total years of service credit earned during both employment periods offset by the actuarial value of payments already received. The new annuity is payable the first day of the month following the member’s re-retirement.
   3. If the teacher subsequently retires with five or more years of additional earned credited service, the retired person’s annuity is the greater of the sum of the discontinued annuity plus an additional annuity based upon years of service and average salaries earned during the period of re-employment plus any postretirement benefit adjustments granted during the period of re-employment, or a recalculated annuity based on all years of service computed under subsection 2 of section 15-39.1-10. The new annuity is payable the first day of the month following the member’s re-retirement.

Source: S.L. 1979, ch. 236, § 1; 1983, ch. 216, § 3; 1997, ch. 169, § 5; 1999, ch. 178, § 1; 2001, ch. 169, § 4; 2001, ch. 170, § 2; 2003, ch. 140, § 7; 2007, ch. 157, § 10; 2009, ch. 162, § 4; 2011, ch. 125, § 6.

Note.

Section 14 of chapter ch. 157, S.L. 2007 provides: “ APPLICATION. Sections 1, 6, 10 [which amends this section], 11, 12, and 15 of this Act apply to salaries earned on and after July 1, 2007, and sections 2, 3, 4, 5, 7, 8, 9, and 13 apply to salaries earned on and after July 1, 2008.”

Chapter 15-39, referred to in this section, was repealed by section 2 of chapter 184, S.L. 1989. However, section 2 of chapter 184, S.L. 1971, provided that reference could be made to chapter 15-39 to determine rights arising prior to the effective date of chapter 184 (July 1, 1971).

15-39.1-19.2. Retired teachers return to active service — Critical shortage areas and disciplines — Rules.

1. A retired teacher who is receiving a retirement annuity under chapter 15-39, 15-39.1, or 15-39.2 may elect to return to teaching without losing any benefits under the provisions of this section or elect to return to teaching under the provisions of section 15-39.1-19.1. To return to teaching under this section, a retired teacher must:
   1. Return to teach in a critical shortage geographical area or subject discipline as determined by the education standards and practices board by rule;
   2. If retired after January 1, 2001, have been receiving a retirement annuity for at least one year. A retired teacher may perform noncontracted substitute teaching duties but may not engage in full-time or part-time teaching duties during the one-year separation from service; and
   3. Notify the fund office in writing within thirty days of the retired member’s return to covered employment. The retired member’s employer must also notify the fund office in writing within thirty days of the retired member’s return to covered employment.
2. A retired teacher who returns to teaching under this section shall pay the member contributions required by section 15-39.1-09 on the salary of the retired member. The member contributions must be included in the retired member’s account value and may not be refunded except as provided under section 15-39.1-17. A retired teacher who returns to teaching under the provisions of this section must be treated as retired for all other purposes under this chapter. A retired teacher may not earn any additional service during the period of re-employment. The retired teacher’s benefits may not be adjusted to reflect changes in the retired teacher’s age or final average monthly salary at the end of the period of re-employment, any optional form of payment elected under section 15-39.1-16 remains effective during and after the period of re-employment, and additional benefits normally available to an active member, such as disability benefits, are not available to a retired teacher re-employed under this section.
3. A participating employer who employs a retired member under this section shall pay the employer contributions required by section 15-39.1-09 on the salary of the retired member.

Source: S.L. 2001, ch. 170, § 3; 2005, ch. 147, § 4; 2007, ch. 157, § 11; 2011, ch. 125, § 7.

Note.

Section 14 of chapter ch. 157, S.L. 2007 provides: “ APPLICATION. Sections 1, 6, 10, 11 [which amends this section], 12, and 15 of this Act apply to salaries earned on and after July 1, 2007, and sections 2, 3, 4, 5, 7, 8, 9, and 13 apply to salaries earned on and after July 1, 2008.”

15-39.1-20. Withdrawal from fund.

When a member of the fund ceases to be eligible under the terms of this chapter to participate in the fund, the member may, after a period of one hundred twenty days, withdraw from the fund and is then entitled to receive a refund of assessments accumulated with interest. The one-hundred-twenty-day requirement may be waived by the board when it has evidence the teacher will not be returning to teach in North Dakota. The refund is in lieu of any other benefits to which the member may be entitled under the terms of this chapter, and by accepting the refund, the member is waiving any right to participate in the fund under the same provisions that existed at the time the refund was accepted regardless of whether the member later repurchases refunded service credit. A member or a beneficiary of a member may elect, at the time and under rules adopted by the board, to have any portion of an eligible rollover distribution paid directly in a direct rollover to an eligible retirement plan specified by the member or the beneficiary to the extent permitted by section 401(a)(31) of the Internal Revenue Code, as amended.

Source: S.L. 1971, ch. 184, § 1; 1975, ch. 151, § 6; 1979, ch. 233, § 5; 1981, ch. 191, § 5; 1985, ch. 218, § 4; 1989, ch. 217, § 7; 1995, ch. 191, § 5; 1997, ch. 169, § 6; 1999, ch. 175, § 7; 2003, ch. 140, § 8; 2005, ch. 147, § 5; 2007, ch. 157, § 12; 2009, ch. 162, § 5; 2011, ch. 124, § 5; 2015, ch. 136, § 4, effective August 1, 2015.

Effective Date.

The 2015 amendment of this section by section 4 of chapter 136, S.L. 2015 became effective August 1, 2015.

Note.

Section 14 of chapter ch. 157, S.L. 2007 provides: “ APPLICATION. Sections 1, 6, 10, 11, 12 [which amends this section], and 15 of this Act apply to salaries earned on and after July 1, 2007, and sections 2, 3, 4, 5, 7, 8, 9, and 13 apply to salaries earned on and after July 1, 2008.”

15-39.1-21. Effect on existing obligations.

Nothing herein contained may be construed to affect existing retirement benefits and all obligations of the teachers’ insurance and retirement fund existing on July 1, 1971, must be assumed and paid from the teachers’ fund for retirement. Amounts which persons retired on July 1, 1971, are receiving must be frozen as of that date and may not be deemed increased by this chapter.

Source: S.L. 1971, ch. 184, § 1.

15-39.1-22. Annual audit.

The board shall conduct an annual audit of the fund for the fiscal year ending the preceding June thirtieth.

Source: S.L. 1971, ch. 184, § 1; 1983, ch. 216, § 4; 1987, ch. 220, § 4; 1991, ch. 187, § 4.

15-39.1-23. Penalties for failure to make required reports and payments.

Except for unintentional reporting errors, an employing body failing to file reports required by the board or failing to pay over for credit to the fund the amounts required to be paid by this chapter is subject to a civil penalty of two hundred fifty dollars and, as interest, one percent of the amount due for each month of delay or fraction thereof after the report was required to be filed or the payment became due. The board, if satisfied the delay or underpayment was unintentional and excusable, may waive, or if paid, refund all or part of the two hundred fifty dollar penalty and may reduce the interest rate charge to the investment return rate used in the most recent actuarial valuation, compounded annually, but may not waive the entire amount of the interest. The penalty must be paid to the fund and deposited in the same manner as other receipts under this chapter.

In addition, a school district, multidistrict special education unit, area career and technology center, and regional education association may not share in the apportionment of any money from the state for any year unless the school district, multidistrict special education unit, area career and technology center, or regional education association has made the reports required by the board as permitted by this chapter, and has paid over for credit to the fund the amounts required to be paid under this chapter.

Source: S.L. 1971, ch. 184, § 1; 1977, ch. 169, § 1; 1985, ch. 218, § 5; 1997, ch. 169, § 7; 2009, ch. 163, § 2.

15-39.1-24. Purchase of additional credit.

Prior to retirement a teacher who provides proof of eligibility under rules adopted by the board may purchase additional credit for use toward retirement in the following instances and manner:

1. A teacher may purchase service credit for years of elementary or secondary teaching service at an accredited out-of-state public, private, or parochial school.
2. A teacher not qualified to receive military credit under the Uniformed Services Employment and Re-employment Rights Act of 1994 [Pub. L. 103-353; 108 Stat. 3150; 38 U.S.C. 4301-4307] or Veterans’ Re-employment Rights Act of 1991 [Pub. L. 93-508; 88 Stat. 3150] who has received an honorable discharge from military service of the United States of America may purchase military credit for no more than four years of active service, upon filing application and proof with the board.
3. A teacher may purchase service credit for credit lost while on an approved leave of absence from teaching duties.
4. A teacher 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. As an alternative to a teacher purchasing service credit under this subsection, a teacher and the governmental body employing the teacher may enter into an agreement by which payment for service credit for time spent during each legislative session by the teacher serving as a member of the legislative assembly is made pursuant to section 15-39.1-09. The agreement must provide that contributions made pursuant to section 15-39.1-09 are calculated based on the teacher’s annual salary without reduction for a leave of absence taken by the teacher during the legislative session.
5. A teacher may purchase credit for years of elementary or secondary teaching service if employed by an agency of the United States government.
6. A teacher who is elected president of a professional educational organization recognized by the board and who serves in a full-time capacity in lieu of teaching may purchase service credit for the time spent serving as president. As an alternative to purchasing service credit under this subsection, a teacher and the governmental body employing the teacher may enter into an agreement under which payment for service credit for the time spent as president of the professional educational organization is made pursuant to section 15-39.1-09. The agreement must provide that contributions made pursuant to section 15-39.1-09 are calculated based on the teacher’s annual salary as president.
7. A teacher may purchase service credit for years of elementary or secondary teaching service in an accredited North Dakota private or parochial school.
8. A teacher who has at least five years of teaching service credit in the fund may purchase credit not based on service for use toward retirement eligibility and benefits. The purchase of service credit for such nonqualified service as defined under section 415(n) of the Internal Revenue Code, as amended, is limited to an aggregate of five years.
9. A teacher who had that person’s North Dakota teaching service interrupted by military service in any branch of the United States armed forces and received an honorable discharge may receive credit for military service pursuant to applicable federal veterans’ rights acts including the Uniformed Services Employment and Re-employment Rights Act of 1994 [Pub. L. 103-353; 108 Stat. 3150; 38 U.S.C. 4301-4307] or the Veterans’ Re-employment Rights Act of 1991 [Pub. L. 93-508; 88 Stat. 3150].
10. With the exception of military service, purchased service credit is not eligible for credit if the years claimed also qualify for retirement benefits from another retirement system.
11. The fund may accept eligible rollovers, direct rollovers, and trustee-to-trustee transfers from eligible retirement plans specified under Internal Revenue Code section 402(c)(8)(B), as amended, to purchase refunded service credit under section 15-39.1-15 and to purchase additional service credit under section 15-39.1-24. The board shall adopt rules to ensure that the rollovers and transfers comply with the requirements of the Internal Revenue Code and internal revenue service regulations. The total amount rolled over or transferred into the fund may not exceed the amount due to purchase service credit.
12. The amount of additional service eligible to be purchased under this section must be credited to the teacher when the teacher has made the required payment. Except as provided in subsections 4, 6, and 9, the purchase cost must be on an actuarial equivalent basis.

Source: S.L. 1971, ch. 184, § 1; 1975, ch. 151, §§ 7, 8; 1977, ch. 169, § 2; 1979, ch. 237, § 1; 1981, ch. 191, § 6; 1981, ch. 195, § 1; 1985, ch. 587, § 1; 1987, ch. 221, § 3; 1989, ch. 227, § 1; 1989, ch. 228, § 1; 1989, ch. 229, § 1; 1991, ch. 187, § 5; 1993, ch. 191, § 2; 1995, ch. 191, § 6; 1997, ch. 169, § 8; 1999, ch. 175, § 8; 2003, ch. 140, § 9; 2015, ch. 136, §§ 5, 6, effective August 1, 2015.

Effective Date.

The 2015 amendment of this section by sections 5 and 6 of chapter 136, S.L. 2015 became effective August 1, 2015.

The 2003 amendment of this section by section 9 of chapter 140, S.L. 2003 became effective August 1, 2003.

Note.

Section 15-39.1-24 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 6 of Chapter 136, Session Laws 2015, House Bill 1064; and Section 5 of Chapter 136, Session Laws 2015, House Bill 1064.

15-39.1-25. Certain rights and obligations fixed.

Except as otherwise provided in chapter 15-39.2, the laws pertaining to the teachers’ fund for retirement, as contained in chapter 15-39.1, apply to teachers, superintendents, assistant superintendents, principals, assistant principals, special teachers, supervisors of instruction and other supervisors, presidents, deans, school librarians, and registrars employed by any state institution under the supervision and control of the state board of higher education and the commissioner of higher education, only in the form and substance as chapter 15-39 existed as of July 1, 1967, and all such persons have only such rights, benefits, and privileges as provided in chapter 15-39 as it existed on July 1, 1967. Such persons are responsible or liable for only those costs or assessments provided for in chapter 15-39 as such laws and chapter existed on July 1, 1967. The state board of higher education or any institution under the supervision or control of the state board of higher education is not liable for any costs, assessments, or payments under the provisions of chapter 15-39 in excess of that provided or required under the provisions of chapter 15-39 as such laws and chapter existed on July 1, 1967. It is hereby declared to be the intent of the legislative assembly to freeze the rights, benefits, privileges, assessments, payments, and obligations of the persons, offices, and institutions specified in this section to those rights, benefits, privileges, assessments, payments, and obligations as they existed under the provisions of chapter 15-39 as such laws and chapter existed in form and substance as of July 1, 1967, and that all legislative enactments subsequent to such date do not affect or apply to those persons, offices, and institutions specified in this section or their rights, benefits, privileges, assessments, payments, and obligations as fixed by this section.

Source: S.L. 1971, ch. 184, § 1; 1979, ch. 242, § 1.

15-39.1-26. Investment of moneys in fund — Interest and earnings attributable to fund.

Investment of the fund is under the supervision of the state investment board in accordance with chapter 21-10. The 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. All interest and earnings on funds administered by the board must be credited to the fund.

Source: S.L. 1971, ch. 184, § 1; 1983, ch. 219, § 1; 1985, ch. 223, § 1; 1987, ch. 190, § 3; 1989, ch. 667, § 3; 1999, ch. 37, § 24.

15-39.1-27. Computation of years of service.

In computing the terms of service of a member under this chapter, for a member employed full time, a year is deemed to be one hundred seventy-five days of compensation. Employment less than one hundred seventy-five days of compensation is not deemed to be a full year but only as the proportion of a year as the number of hours employed in each year of service bears to seven hundred hours.

Source: S.L. 1971, ch. 184, § 1; 1981, ch. 196, § 1; 1983, ch. 216, § 5; 1987, ch. 220, § 5.

15-39.1-28. Tax levy for teachers’ retirement.

Any school district by a resolution of its school board may use the proceeds of levies, as permitted by section 57-15-14.2, for the purposes of meeting the district’s contribution to the fund arising under this chapter and to provide the district’s share, if any, of contribution to the fund for contracted employees of either a multidistrict special education board or another school district where the contracted employees are also providing services to the taxing school district.

Source: S.L. 1971, ch. 184, § 1; 1975, ch. 152, § 1; 1979, ch. 238, § 1; 1981, ch. 197, § 1; 1983, ch. 593, § 10; 1983, ch. 606, § 23; 1983, ch. 608, § 4; 2013, ch. 13, § 21; 2015, ch. 137, § 1, effective July 1, 2015.

Effective Date.

The 2015 amendment of this section by section 1 of chapter 137, S.L. 2015 became effective July 1, 2015.

Note.

The 2015 amendment to this section by section 1, of chapter 137, S.L. 2015, was to remove the expiration date of the section.

15-39.1-29. Fraud against fund — Penalty.

Any person who knowingly makes a false statement, or falsifies or permits to be falsified any record or records of this retirement fund in any attempt to defraud such fund as a result of such act, is guilty of theft, and is punishable therefor under the laws of the state of North Dakota. Should any change or error in records result in any person receiving from the fund more or less than that person would have been entitled to receive had the records been correct, then, on the discovery of any such error, the board shall correct such error, and, as far as practicable, shall adjust the payments in such a manner that the actuarial equivalent of the benefit to which such person was correctly entitled is paid.

Source: S.L. 1979, ch. 233, § 1.

15-39.1-30. Confidentiality of records.

All records relating to the retirement benefits of a member or a beneficiary under this chapter are confidential and are not public records. The information and records may be disclosed, under rules adopted by the board, only to:

1. A person to whom the teacher has given written consent to have the information disclosed.
2. A person legally representing the teacher, upon proper proof of representation, and unless the teacher 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, years of age, employer and employee contribution amounts, and salary. The board may share other types of information as needed by the employer to validate the employer’s compliance with existing state or federal law. Any information provided to the member’s participating employer under this subsection must remain confidential except as provided in subsection 6.
5. The administrative staff of the public employees retirement system for purposes relating to membership and benefits determination.
6. State or federal agencies for the purpose of validating member eligibility or employer compliance with existing state or federal law.
7. Member interest groups approved by the board, limited to information concerning the member’s death.
8. A government child support enforcement agency for purposes of establishing paternity or establishing, modifying, or enforcing a child support obligation of the member.
9. 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 15-39.1-12.2. The information disclosed under this subsection must be limited to information necessary for drafting the order.
10. 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.
11. The general public, but only after the board has been unable to locate the member for a period in excess of two years, and limited to the member’s name and the fact that the board has been unable to locate the member.
12. Any person if the board determines disclosure is necessary for treatment, operational, or payment purposes, including the completion of necessary documents.
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. Information identified under this subsection may only be obtained from the member’s employer.

Source: S.L. 1987, ch. 224, § 1; 2001, ch. 169, § 5; 2005, ch. 415, § 7; 2009, ch. 162, § 6.

15-39.1-31. Correction of errors — Adjustment to actuarial equivalent.

If any change or error in the records of the fund or any participating employer or error in any calculation results in any person receiving from the fund more than that person would have been entitled to receive had the records been correct, the board shall correct the error and, as far as practicable, adjust the payment in such a manner that the actuarial equivalent of the benefit to which the person was entitled is paid or the board may offset the amount of the overpayment from the amount of future retirement benefit payments. However, if the person agrees to repay the fund for the cost of the error upon terms acceptable to the board, no actuarial adjustment to the person’s retirement benefit need be made.

Source: S.L. 1997, ch. 169, § 9.

15-39.1-32. Correction of errors — Lump sum payment.

If any change or error in the records of the fund or any participating employer or any error in calculation results in any person receiving less from the fund than that person would have been entitled to receive had the records been correct, the board shall correct the error and adjust the payment in such a manner that the benefit to which the person was correctly entitled is paid. In addition, the board shall remit payment to the person in a lump sum to compensate that person for the difference between what was paid and what should have been paid. No interest may be assessed against the fund for providing payment for the correction of any loss of benefits.

Source: S.L. 1997, ch. 169, § 9.

15-39.1-33. 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 tier one member’s age plus service credit must be equal to or greater than seventy-seven;
   2. The tier one member’s age must be at least fifty-five and the member must have at least three years of service credit;
   3. The tier two member’s age plus service credit must be equal to or greater than eighty-two; or
   4. The tier two member’s age must be at least fifty-five and the member must have at least five years of service credit.
3. The board must determine the purchase price on an actuarially equivalent basis.
4. The purchase must be completed before the member’s retirement.
5. The employer may purchase a maximum of three 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. 140, § 10; 2007, ch. 157, § 13.

Note.

Section 14 of chapter ch. 157, S.L. 2007 provides: “ APPLICATION. Sections 1, 6, 10, 11, 12, and 15 of this Act apply to salaries earned on and after July 1, 2007, and sections 2, 3, 4, 5, 7, 8, 9, and 13 [which amends this section] apply to salaries earned on and after July 1, 2008.”

15-39.1-34. Internal Revenue Code compliance.

1. The board shall administer the plan in compliance with section 415, section 401(a)(9), section 401(a)(17), and section 401(a)(31) of the Internal Revenue Code, as amended, and regulations adopted pursuant to those provisions as they apply to governmental plans.
2. Pursuant to the rollover rules under section 401(a)(31) of the Internal Revenue Code, a distributee may elect to have an eligible rollover distribution, as defined in section 402(f)(2)(A) 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.
   1. The definition of eligible retirement plan also applies in the case of a distribution to an alternate payee under a qualified domestic relations order, as defined in section 414(p) of the Internal Revenue Code.
   2. Any portion of a distribution that consists of after-tax employee contributions not included in gross income may not be transferred except to an individual retirement account or individual retirement annuity described in section 408 or 408 A of the Internal Revenue Code or to a qualified plan or an annuity contract described in sections 401(a) and 403(b) of the Internal Revenue Code, respectively, which agrees to separately account for such amounts, including separately accounting for the portion of the distribution which is included in gross income and the portion of the distribution which is not so included.
   3. For purposes of this section, “distributee” includes a nonspouse beneficiary of a deceased member; except in the case of a nonspouse beneficiary, the direct rollover may be made only to an individual retirement account or individual retirement annuity described in section 408 or 408 A of the Internal Revenue Code which is established on behalf of the nonspouse beneficiary and will be treated as an inherited individual retirement account or inherited individual retirement annuity pursuant to section 402(c) (11) of the Internal Revenue Code.

Source: S.L. 2005, ch. 147, § 6; 2015, ch. 136, § 7, effective August 1, 2015; 2019, ch. 142, § 1, effective August 1, 2019.

Effective Date.

The 2015 amendment of this section by section 7 of chapter 136, S.L. 2015 became effective August 1, 2015.

15-39.1-35. 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. 2013, ch. 141, § 5.

15-39.2-01. Retired teachers — Election of coverage — Eligibility — Limitation.

Notwithstanding the provisions of chapter 15-39.1, any person who retired from teaching under the teachers’ insurance and retirement fund prior to July 1, 1971, who had ten or more years of teaching credit under that program is entitled to elect to qualify for benefits under the teachers’ fund for retirement by complying with the provisions of this chapter. A college teacher who retired from teaching after July 1, 1971, may, notwithstanding the provisions of section 15-39.1-25, elect to receive benefits in accordance with chapter 15-39.1 and section 15-39.2-05. The amount of monthly benefits to which an annuitant electing to come under the 1971 law is entitled until death is equal to one and one-half percent of the monthly salary of the annuitant for the last school year for each year of service of that annuitant. Monthly salary within the meaning of this provision is deemed to be an amount equal to one-twelfth of the annual salary of the teacher. If for any reason the earnings of the teacher for the last year of teaching are shown to have been nonrepresentative of the teacher’s typical earnings, the board shall readjust the credit to be allowed for past years of service to the last year of typical earnings. As used in this section, “college teacher” means a retired teacher who is entitled to receive an annuity through the teachers’ insurance and annuity association of America — college retirement equities fund (TIAA-CREF) as a result of having participated in the North Dakota state board of higher education TIAA-CREF retirement plan for North Dakota state institutions of higher education.

Source: S.L. 1973, ch. 152, § 1; 1975, ch. 153, § 1; 1975, ch. 154, § 1; 1979, ch. 239, § 1; 1991, ch. 189, § 4.

Collateral References.

Services included in computing period of service for purpose of teachers’ seniority, salary, tenure, or retirement benefits, 56 A.L.R.5th 493.

15-39.2-01.1. Retired teachers — Minimum benefits.

Any teacher who was sixty-five years of age at retirement and who is eligible to receive or who is receiving benefits under former chapter 15-39 may receive benefits which are not less than:

1. Six dollars per month per year of teaching to twenty-five years.
2. Seven dollars and fifty cents per month per year of teaching over twenty-five years.

Teachers, superintendents, assistant superintendents, principals, assistant principals, special teachers, supervisors of instruction and other supervisors, presidents, deans, school librarians, and registrars employed by any state institution under the supervision and control of the state board of higher education and any person employed in teaching as lay faculty in a nonpublic school are not eligible for the minimum benefits provided by this section. As used in this section, the term “lay faculty” means any person who teaches elementary or high school students in a nonpublic school, and is neither a member of an ecclesiastical order or religious house, nor an ordained member of the clergy.

A teacher who retired at any time prior to sixty-five years of age is entitled to benefits not less than the minimum benefits established by this section reduced to the actuarial equivalent of the benefit credits earned to the date of early retirement.

Source: S.L. 1979, ch. 240, § 1.

15-39.2-01.2. College teachers — Military service credit purchase.

College teachers who elected to remain under the provisions of chapter 15-39 may purchase military service as credit in the fund as allowed under the provisions of section 15-39.1-24.

Source: S.L. 1983, ch. 220, § 1.

Note.

Chapter 15-39, referred to in this section, was repealed by section 2 of chapter 184, S.L. 1971. However, section 2 of chapter 184, S.L. 1971, provided that reference could be made to chapter 15-39 to determine rights arising prior to the effective date of chapter 184 (July 1, 1971). As to the teachers’ fund for retirement, see now N.D.C.C. ch. 15-39.1.

15-39.2-02. Optional increase in benefits — Alternatives.

Any person entitled to make the election provided for in section 15-39.2-01 must be permitted, in the alternative, to accept a twenty percent increase in the person’s current annuity or, if the person has at least seventeen years of teaching credit under the teachers’ insurance and retirement fund, to accept a minimum monthly annuity of one hundred dollars plus five dollars per month for each additional year of teaching credit up to a maximum of twenty-five years. Nothing in this chapter may be interpreted to permit any person to elect benefits under more than one of the options offered in this chapter or to draw benefits concurrently under more than one retirement program.

Source: S.L. 1973, ch. 152, § 2.

15-39.2-03. Limitation on elections on retirement programs.

Nothing in this chapter may be interpreted to permit any person to elect benefits under more than one of the options offered in this chapter, nor to permit any person to make more than one such election.

Source: S.L. 1973, ch. 152, § 3.

15-39.2-04. Beneficiaries of certain deceased teachers — Election — Contribution to fund.

The beneficiary of a deceased teacher may make an election pursuant to the provisions of this chapter; provided, that the beneficiary may not elect the second option provided under section 15-39.2-02, which option relates to teachers who have at least seventeen years of teaching credit under the teachers’ insurance and retirement fund. The annuity of such beneficiary must be computed in the manner in which the deceased teacher’s annuity would have been computed if the deceased teacher had lived and had made such election. For the purposes of this section, the term “beneficiary” has the same meaning as such term has in section 15-39.1-17 concerning persons entitled to a monthly annuity under the provisions of chapter 15-39.1, and the term “deceased teacher” means a teacher, deceased at the time application for an election is made, who died or retired from teaching under the teachers’ insurance and retirement fund prior to July 1, 1971. Provided, however, that in order to be eligible to make such election, a beneficiary shall pay into the teachers’ fund for retirement such amounts as the deceased teacher would have been required to pay had that teacher made the election prior to death.

Source: S.L. 1975, ch. 155, § 1.

15-39.2-04.1. Beneficiaries of deceased college teachers.

If a college teacher who is eligible to make the election provided by this chapter dies prior to receiving an annuity, the college teacher’s designated beneficiary may elect to receive a monthly annuity computed according to the provisions of this chapter in a manner which the deceased teacher’s annuity would have been computed if the deceased teacher had lived, made such an election, and selected option one as outlined in section 15-39.1-16. The designated beneficiary of a college teacher who exercised the election in section 15-10-17 is not eligible for benefits provided in this section.

Source: S.L. 1979, ch. 241, § 1.

15-39.2-05. Benefits payable — Calculation.

A retired teacher who makes the election authorized under section 15-39.2-01 shall receive from the teachers’ fund for retirement a benefit amount equal to the difference between the benefit payable under the single life annuity option to which that teacher would otherwise be entitled under the teachers’ fund for retirement and an income offset. The income offset is equal to the single life annuity income, as of the first day of the month coinciding with or next following a teacher’s retirement date under the teachers’ fund for retirement based on accumulations attributed to employee and employer contributions under the TIAA-CREF retirement plan adopted by the state board of higher education for North Dakota institutions of higher education and assuming that all such contributions were paid to TIAA.

A retired teacher who made the election authorized under section 15-39.2-01 prior to May 1, 1979, shall have a TIAA-CREF income offset which will be fixed at the value of the May 1, 1979, TIAA-CREF income offset as calculated in accordance with this section prior to its being amended.

No payment may be made from the teachers’ fund for retirement to a retired teacher affected by this section unless the board of trustees of the teachers’ fund for retirement, or its agent, has received notice of the amount of the teacher’s income offset from TIAA-CREF.

Source: S.L. 1975, ch. 154, § 2; 1979, ch. 239, § 2.

15-39.2-06. College teachers — Election — Contribution to fund.

In lieu of the election provided for by section 15-39.2-01, a college teacher may elect prior to July 1, 1980, notwithstanding the provisions of section 15-39.1-25, to receive benefits in accordance with chapter 15-39.1 and section 15-39.2-08. A teacher who elects to receive such benefits shall pay into the teachers’ fund for retirement, in the manner provided for by section 15-39.2-07, the difference between the amount actually paid to the fund by the teacher during the period from July 1, 1969, to such time as the teacher exercises the election authorized by this section, and the amount which would have been required had the teacher’s assessment rate remained the same as that of a public schoolteacher during that period. The amount must be determined by the board of trustees of the teachers’ fund for retirement.

Source: S.L. 1979, ch. 242, § 2.

15-39.2-07. Assessments — Method of payment.

A college teacher making the election provided for in section 15-39.2-06 shall make the payment of the required assessments for the period prior to the election by a single sum payment in the manner provided for by the board of trustees of the teachers’ fund for retirement. Payment of the required assessments for the period after the election must be made in the manner provided for in section 15-39.1-09.

Source: S.L. 1979, ch. 242, § 3.

15-39.2-08. Benefits.

Any college teacher making the election provided for in section 15-39.2-06 and paying the assessments provided for in section 15-39.2-07 is eligible for the same benefits as a public schoolteacher with like average salary and years of service would receive under section 15-39.1-10.

Source: S.L. 1979, ch. 242, § 4.

15-52-01. School of medicine and health sciences.

The primary purpose of the university of North Dakota school of medicine and health sciences is to educate physicians and other health professionals for subsequent service in North Dakota and to enhance the quality of life of its people. Other purposes include the discovery of knowledge that benefits the people of this state and enhances the quality of their lives.

Source: S.L. 1945, ch. 172, § 1; R.C. 1943, 1957 Supp., § 15-5201; 2009, ch. 165, § 1; 2013, ch. 34, § 11.

15-52-02. Control and operation.

The control and operation of the university of North Dakota school of medicine and health sciences is the duty and responsibility of the administrative authorities of the university of North Dakota and its medical school under the policies of the state board of higher education or its successor in authority.

Source: S.L. 1945, ch. 172, § 2; R.C. 1943, 1957 Supp., § 15-5202; S.L. 1987, ch. 234, § 1; 2009, ch. 165, § 2.

15-52-03. School of medicine and health sciences advisory council — Members, terms, meetings. [Effective through August 31, 2022]

1. To assure the proper coordination of the university of North Dakota school of medicine and health sciences with all other health activities of the state, a permanent school of medicine and health sciences advisory council is established to perform the duties in section 15-52-04.
2. The council consists of sixteen members:
   1. 1. Two members of the senate, one of whom must be from the majority party and one of whom must be from the minority party, selected by the chairman of the legislative management; and
      2. Two members of the house of representatives, one of whom must be from the majority party and one of whom must be from the minority party, to be selected by the chairman of the legislative management;
   2. One member selected by each of the following:
      1. The department of human services;
      2. The state board of higher education;
      3. The state department of health;
      4. The North Dakota medical association;
      5. The North Dakota hospital association;
      6. The veterans administration hospital in Fargo;
      7. The North Dakota center for nursing; and
      8. The university of North Dakota center for rural health; and
   3. Four members selected by the dean of the university of North Dakota school of medicine and health sciences, one from each of the four campuses of the school of medicine and health sciences with headquarters in Bismarck, Fargo, Grand Forks, and Minot.
3. The representatives named by the state agencies and boards must be selected to serve as members of the advisory council for periods of at least one year, but may not serve longer than their term of office on the public agency. The representatives from the North Dakota medical association, the North Dakota hospital association, and the North Dakota center for nursing shall serve a term of three years or until their successors are named and qualified.
4. The council shall name its own chairman and the dean of the university of North Dakota school of medicine and health sciences shall serve as executive secretary of the council. The executive secretary does not have voting privileges. The council shall meet not less than twice each year, and, from time to time, on its own motion or upon request of the university administration.

Source: S.L. 1945, ch. 172, § 3; R.C. 1943, 1957 Supp., § 15-5203; S.L. 1965, ch. 203, § 41; 1971, ch. 193, § 1; 1975, ch. 168, § 1; 1981, ch. 214, § 1; 1983, ch. 82, § 34; 1987, ch. 234, § 2; 1995, ch. 243, § 2; 2003, ch. 36, § 14; 2003, ch. 141, § 1; 2009, ch. 166, § 1; 2009, ch. 482, § 97; 2011, ch. 54, § 3; 2013, ch. 34, § 12; 2017, ch. 130, § 1, effective August 1, 2017.

Cross-References.

Governor’s power to appoint members of council, see N.D.C.C. § 54-07-01.2.

15-52-03. School of medicine and health sciences advisory council — Members, terms, meetings. [Effective September 1, 2022]

1. To assure the proper coordination of the university of North Dakota school of medicine and health sciences with all other health activities of the state, a permanent school of medicine and health sciences advisory council is established to perform the duties in section 15-52-04.
2. The council consists of sixteen members:
   1. 1. Two members of the senate, one of whom must be from the majority party and one of whom must be from the minority party, selected by the chairman of the legislative management;
      2. Two members of the house of representatives, one of whom must be from the majority party and one of whom must be from the minority party, to be selected by the chairman of the legislative management; and
      3. Two members of the department of health and human services, of which one member is appointed by the state health officer;
   2. One member selected by each of the following:
      1. The North Dakota medical association;
      2. The North Dakota hospital association;
      3. The veterans administration hospital in Fargo;
      4. The North Dakota center for nursing; and
      5. The university of North Dakota center for rural health; and
   3. Four members selected by the dean of the university of North Dakota school of medicine and health sciences, one from each of the four campuses of the school of medicine and health sciences with headquarters in Bismarck, Fargo, Grand Forks, and Minot.
3. The representatives named by the state agencies and boards must be selected to serve as members of the advisory council for periods of at least one year, but may not serve longer than their term of office on the public agency. The representatives from the North Dakota medical association, the North Dakota hospital association, and the North Dakota center for nursing shall serve a term of three years or until their successors are named and qualified.
4. The council shall name its own chairman and the dean of the university of North Dakota school of medicine and health sciences shall serve as executive secretary of the council. The executive secretary does not have voting privileges. The council shall meet not less than twice each year, and, from time to time, on its own motion or upon request of the university administration.

The state board of higher education;

Source: S.L. 1945, ch. 172, § 3; R.C. 1943, 1957 Supp., § 15-5203; S.L. 1965, ch. 203, § 41; 1971, ch. 193, § 1; 1975, ch. 168, § 1; 1981, ch. 214, § 1; 1983, ch. 82, § 34; 1987, ch. 234, § 2; 1995, ch. 243, § 2; 2003, ch. 36, § 14; 2003, ch. 141, § 1; 2009, ch. 166, § 1; 2009, ch. 482, § 97; 2011, ch. 54, § 3; 2013, ch. 34, § 12; 2017, ch. 130, § 1, effective August 1, 2017; 2021, ch. 352, § 67, effective September 1, 2022.

15-52-04. Duties of council.

1. The advisory council, in consultation with the school of medicine and health sciences and the other agencies, associations, and institutions represented on the advisory council, shall study and make recommendations regarding the strategic plan, programs, and facilities of the school of medicine and health sciences in support of its purpose as defined in section 15-52-01.
2. Biennially, the advisory council shall submit a report, together with its recommendations, to the agencies, associations, and institutions represented on the advisory council, to the university of North Dakota, and to the legislative council.
3. 1. The report must describe the advisory council’s recommendations regarding the strategic plan, programs, and facilities of the school of medicine and health sciences as developed under subsection 1. The recommendations for implementing strategies through the school of medicine and health sciences or other agencies and institutions must:
      1. Address the health care needs of the people of the state;
      2. Provide information regarding the state’s health care workforce needs; and
      3. Provide information that specifies the contributions that the university of North Dakota school of medicine and health sciences and the residency training programs in the state are making to meet the health care provider workforce needs of the state. Such information must include data regarding:
         1. The effectiveness of activities conducted throughout the state relating to the recruitment and progression of students into medical school and into the health care provider workforce;
         2. Class characteristics of the medical school matriculants, specifically to include a description of their geographic background;
         3. Residency choices of medical school graduates;
         4. Practice location choices of graduates of North Dakota residencies; and
         5. Any other relevant information that the university of North Dakota school of medicine and health sciences advisory council determines to be important and useful in assessing the degree of success of the university of North Dakota school of medicine and health sciences in meeting the health care workforce needs of the state as specified in section 15-52-01.
   2. The recommendations required under subdivision a may address:
      1. Medical education and training;
      2. The recruitment and retention of physicians and other health care professionals;
      3. Factors influencing the practice environment for physicians and other health care professionals;
      4. Access to health care;
      5. Patient safety;
      6. The quality of health care and the efficiency of its delivery; and
      7. Financial challenges in the delivery of health care.
4. The council may consult with any individual or entity in performing its duties under this section.

Source: S.L. 1945, ch. 172, § 4; R.C. 1943, 1957 Supp., § 15-5204; S.L. 1987, ch. 234, § 3; 2003, ch. 141, § 2; 2009, ch. 166, § 2; 2013, ch. 34, § 13.

15-52-05. Facilities.

The university authorities shall make the facilities of the university of North Dakota school of medicine and health sciences available to all agencies of the state, federal, and local governments engaged in health and welfare activities to the fullest extent possible within the limits of a complete and coordinated program for the use thereof on terms commensurate with the cost of services rendered and facilities furnished. The work of the school of medicine and health sciences must be coordinated with the work of the other departments of the university of North Dakota. Means must be provided whereby regularly enrolled students in other schools or departments of the university of North Dakota may, upon approval of the dean of such other school or department, enroll in elective courses in the medical school and receive credit therefor in the school or department in which they are regularly enrolled, subject to such policy and procedures as may be established by the university of North Dakota and the state board of higher education. Medical students may enroll in other departments and schools. Such action must be taken as may serve to make both the school of medicine and health sciences and the other departments and schools of the university of North Dakota more efficient and responsive to needs of the people through the mutual interchange of facilities, and service, wherever possible.

Source: S.L. 1945, ch. 172, § 5; R.C. 1943, 1957 Supp., § 15-5205; 2009, ch. 165, § 3; 2013, ch. 34, § 14.

15-52-06. Fees and charges of medical center. [Repealed]

Repealed by S.L. 1987, ch. 234, § 9.

15-52-07. Political subdivisions shall use facilities of center.

All agencies of the state, counties, and municipalities in any way concerned with health, medical care, or public welfare, shall make the fullest possible use of the facilities and services of the university of North Dakota school of medicine and health sciences and shall pay therefor the established fees and charges, and may contribute to the school of medicine and health sciences specific fees or monthly payments for specific facilities and services furnished.

Source: S.L. 1945, ch. 172, § 7; R.C. 1943, 1957 Supp., § 15-5207; S.L. 1987, ch. 234, § 4; 2009, ch. 165, § 4.

15-52-08. Center may accept grants, gifts, and rentals — Power to contract.

The university of North Dakota school of medicine and health sciences or the university of North Dakota for the use and benefit of the school of medicine and health sciences is specifically authorized to accept and use for the purposes of the school of medicine and health sciences grants, gifts, contributions, fees, rentals, and other payments from any foundation, individual, firm, corporation, limited liability company, institution, public or private agency, or from the federal government or any of its departments, agencies, or bureaus; and may, within the limits of its funds available, enter into such agreements as may be necessary to secure buildings, supplies, maintenance, material, and equipment; and may contract with public or private agencies or persons for the rental or use of facilities, services, and equipment not owned by the school of medicine and health sciences.

Source: S.L. 1945, ch. 172, § 8; R.C. 1943, 1957 Supp., § 15-5208; S.L. 1993, ch. 54, § 106; 2009, ch. 165, § 5.

15-52-09. Expenditure of proceeds of one-mill levy authorized — Limitation.

The proceeds of the one-mill tax levy established by section 10 of article X of the Constitution of North Dakota, together with any other funds that may be received by the state treasurer, from time to time, for the benefit of the university of North Dakota school of medicine and health sciences, must be expended to establish, develop, and maintain the university of North Dakota school of medicine and health sciences, as provided in this chapter, by the issuance of state warrants drawn on such funds by the director of the office of management and budget.

Source: S.L. 1949, ch. 156, § 1; 1953, ch. 141, § 1; R.C. 1943, 1957 Supp., § 15-5209; S.L. 1967, ch. 149, § 1; 1973, ch. 132, § 5; 2009, ch. 165, § 6; 2013, ch. 34, § 15.

15-52-10. School of medicine and health sciences revolving loan fund.

The school of medicine and health sciences loan fund must be administered as a revolving loan fund by the university of North Dakota under the direction and control of the state board of higher education. As used in this chapter, the word “university” means the university of North Dakota under the direction and control of the state board of higher education. All moneys transferred into the fund, interest upon moneys in the fund, and payments to the fund of principal and interest on loans made from the fund are appropriated for the purpose of providing loans to qualified applicants.

Source: S.L. 1957, ch. 143, § 1; R.C. 1943, 1957 Supp., § 15-5210; S.L. 1961, ch. 165, § 1; 1971, ch. 194, § 1; 2009, ch. 167, § 1.

15-52-11. Term of loan board. [Repealed]

Repealed by S.L. 1971, ch. 194, § 15.

15-52-12. Loan board — Officers, meetings, quorum. [Repealed]

Repealed by S.L. 1971, ch. 194, § 15.

15-52-13. Loan board minutes — Public access. [Repealed]

Repealed by S.L. 1971, ch. 194, § 15.

15-52-14. Loan board compensation. [Repealed]

Repealed by S.L. 1971, ch. 194, § 15.

15-52-15. Duties related to loan fund.

The university shall receive and pass upon, and allow or disallow, all applications for loans submitted by qualified applicants who desire to complete an education in medicine or dentistry for the purpose of entering medical or dental practice.

Source: S.L. 1957, ch. 143, § 6; R.C. 1943, 1957 Supp., § 15-5215; S.L. 1961, ch. 165, § 2; 1971, ch. 194, § 2; 2009, ch. 165, § 7; 2009, ch. 167, § 2.

15-52-16. Qualifications of loan applicants.

An applicant is deemed qualified only if the applicant:

1. Meets the criteria as a resident for tuition purposes as defined by section 15-10-19.1; and
2. Is enrolled as a medical student of the university of North Dakota school of medicine and health sciences or can present to the university satisfactory proof that the applicant is enrolled as a student of a school of dentistry accredited by the commission on dental accreditation, or will be enrolled upon payment of tuition.

Source: S.L. 1957, ch. 143, § 7; R.C. 1943, 1957 Supp., § 15-5216; S.L. 1961, ch. 165, § 3; 1971, ch. 194, § 3; 1983, ch. 234, § 1; 1987, ch. 234, § 5; 2003, ch. 141, § 3; 2009, ch. 167, § 3.

15-52-17. Loan investigations.

The university shall make a careful investigation to ascertain the truth of all matters set forth in applications received by it, including a study of the financial need of the applicant. Preference must be given to qualified applicants with demonstrated financial need.

Source: S.L. 1957, ch. 143, § 8; R.C. 1943, 1957 Supp., § 15-5217; S.L. 1961, ch. 165, § 4; 1971, ch. 194, § 4; 1983, ch. 234, § 2; 2003, ch. 141, § 4.

15-52-18. Amount of loans.

Loans may be granted to qualified applicants by the university in amounts not in excess of ten thousand dollars each year.

Source: S.L. 1957, ch. 143, § 9; R.C. 1943, 1957 Supp., § 15-5218; S.L. 1961, ch. 165, § 5; 1971, ch. 194, § 5; 1983, ch. 234, § 3; 2003, ch. 141, § 5; 2009, ch. 167, § 4.

15-52-19. Loan payments. [Repealed]

Repealed by S.L. 2003, ch. 141, § 7.

15-52-20. Loan conditions.

A loan granted by the university under section 15-52-10 and sections 15-52-15 through 15-52-28 must be upon the condition that the full amount of the loan must be repaid in cash with interest not to exceed six percent annually from the date of each payment pursuant to a loan agreement. The school of medicine and health sciences advisory council may annually establish an interest rate at a level lower than six percent. The repayment must be in yearly installments on a schedule set by the university with the first installment becoming due and payable one year from the date on which the applicant begins practice, but may not exceed six years from the date of graduation or one year from the date of graduation from a dental school if a dental student.

Source: S.L. 1957, ch. 143, § 11; R.C. 1943, 1957 Supp., § 15-5220; S.L. 1961, ch. 165, § 7; 1965, ch. 152, § 1; 1971, ch. 194, § 7; 1979, ch. 187, § 6; 1983, ch. 234, § 4; 1987, ch. 234, § 6; 2003, ch. 141, § 6; 2009, ch. 167, § 5.

15-52-21. Loan agreement — Suit — Defenses.

Each applicant before being loaned any funds hereunder shall enter into a contract with the university agreeing to the terms and conditions set forth in section 15-52-10 and sections 15-52-15 through 15-52-28 and rules and regulations promulgated thereunder. For the purposes of section 15-52-10 and sections 15-52-15 through 15-52-28, the defenses of minority and of the statutes of limitation are hereby removed as to any applicant granted a loan, and such contracts are in all respects legal and binding. The university may sue in its own name any applicant for any balance due on any such contract and is authorized to compromise or settle litigation with respect to any such contract.

Source: S.L. 1957, ch. 143, § 12; R.C. 1943, 1957 Supp., § 15-5221; S.L. 1971, ch. 194, § 8; 1979, ch. 187, § 7.

15-52-22. Loan cancellation or suspension.

The university may cancel any contract, or suspend or recall payments thereunder, if an applicant:

1. Fails in the applicant’s course of study;
2. Withdraws from the school of medicine or dentistry the applicant is attending;
3. Is expelled or suspended by such school; or
4. Otherwise becomes a clearly unsuitable risk.

Source: S.L. 1957, ch. 143, § 13; R.C. 1943, 1957 Supp., § 15-5222; S.L. 1961, ch. 165, § 8; 1971, ch. 194, § 9; 1983, ch. 234, § 5.

15-52-23. Remedies.

In the event the university finds it necessary to cancel a contract or to suspend or recall payments, it may commence legal proceedings for the recovery of all sums loaned to the applicant, together with interest thereon, the total of which sums becomes due and owing immediately upon the mailing to the applicant of written notice of the decision to cancel the contract or to suspend or recall payments thereunder.

Source: S.L. 1957, ch. 143, § 14; R.C. 1943, 1957 Supp., § 15-5223; S.L. 1971, ch. 194, § 10.

15-52-24. Loan insurance. [Repealed]

Repealed by S.L. 2003, ch. 141, § 7.

15-52-25. Deposit and payment of funds.

All funds made available to the university pursuant to the provisions of this chapter are to be deposited by it and are to be paid out only upon vouchers signed by the official properly designated by the state board of higher education.

Source: S.L. 1957, ch. 143, § 16; R.C. 1943, 1957 Supp., § 15-5225; S.L. 1971, ch. 194, § 12.

15-52-26. Availability of funds.

The state board of higher education is hereby directed and authorized to make available to the university, from the portion of the proceeds of the one-mill levy provided by section 10 of article X of the Constitution of North Dakota as the state board of higher education shall have retained in its possession pursuant to the provisions of section 15-52-09, such funds as may be required for the operation of the school of medicine and health sciences revolving loan fund, but not in excess of one hundred thousand dollars in any one year.

Source: S.L. 1957, ch. 143, § 17; R.C. 1943, 1957 Supp., § 15-5226; S.L. 1961, ch. 165, § 9; 1971, ch. 194, § 13; 2009, ch. 167, § 6.

15-52-27. Purposes of loan fund.

The purposes of section 15-52-10 and sections 15-52-15 through 15-52-28 are hereby declared to be to develop and maintain the school of medicine and health sciences by making it possible for all qualified students attending such school to complete their education in medicine or in the case of dental students who are residents of the state of North Dakota to complete their education in dentistry.

Source: S.L. 1957, ch. 143, § 18; R.C. 1943, 1957 Supp., § 15-5227; S.L. 1961, ch. 165, § 10; 1979, ch. 187, § 8; 2009, ch. 167, § 7.

15-52-28. Biennial report.

The state board of higher education may submit a biennial report to the governor and the secretary of state in accordance with section 54-06-04.

Source: S.L. 1957, ch. 143, § 19; R.C. 1943, 1957 Supp., § 15-5228; S.L. 1963, ch. 346, § 20; 1971, ch. 194, § 14; 1973, ch. 403, § 13; 1975, ch. 466, § 14; 1995, ch. 350, § 13.

15-52-29. Training of psychiatric personnel.

The university of North Dakota school of medicine and health sciences, under the policies of the state board of higher education, shall provide or encourage means for providing for the training of such psychiatrists and other psychiatric personnel as may be necessary to properly staff state institutions and agencies providing services in the field of mental health. The school of medicine and health sciences may execute contracts with any suitable public or private agency providing such training services and facilities and to pay for such services from funds of the school of medicine and health sciences as provided in section 15-52-09.

Source: S.L. 1957, ch. 144, § 1; R.C. 1943, 1957 Supp., § 15-5229; 1987, ch. 234, § 7; 2009, ch. 165, § 8.

15-52-30. Contracts or agreements authorized — Legislative intent.

1. The state board of higher education is authorized to enter into contracts or agreements, both interstate and intrastate, to provide medical education opportunities. These contracts and agreements must be made within the limits of available legislative appropriation and may be for such periods of time as the state board of higher education deems necessary.
2. It is the intent of the legislative assembly that the state of North Dakota, through its state board of higher education, provide for a comprehensive program of medical education leading to a doctor of medicine degree.

Source: S.L. 1973, ch. 164, §§ 1, 2; 1987, ch. 234, § 8; 2009, ch. 166, § 3.

15-52-31. Admission of students — Qualifications.

The faculty of the school of medicine and health sciences at the university of North Dakota may, with the advice of the school of medicine and health sciences advisory council and with the approval of the state board of higher education and in accordance with applicable accreditation requirements as specified by the liaison committee on medical education, adopt such rules and regulations governing the education and residency qualifications of applicants for admission to the school of medicine and health sciences as it deems necessary and proper to carry out its purpose as provided in section 15-52-01.

Source: S.L. 1975, ch. 169, § 1; 2009, ch. 166, § 4; 2013, ch. 34, § 16.

15-54.1-01. University system capital building fund — Creation — Continuing appropriation.

There is created in the state treasury the university system capital building fund. The university system capital building fund consists of moneys transferred to the fund and any interest and earnings of the fund. The state board of higher education may provide for the fund to be invested under the supervision of the state investment board. Moneys in the fund are appropriated to the state board of higher education on a continuing basis for allocations to the institutions under the control of the state board of higher education for capital projects as directed by the legislative assembly and in accordance with this chapter. Any interest or earnings of the fund must be allocated to the capital building fund pool within the university system capital building fund.

Source: S.L. 2021, ch. 31, § 14, effective April 26, 2021; enacted by 2021, ch. 134, § 1, effective April 26, 2021.

Note.

Section 15-54.1-01 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 14 of Chapter 31, Session Laws 2021, Senate Bill 2003; and Section 1 of Chapter 134, Session Laws 2021, Senate Bill 2033.

15-54.1-02. Capital building funds — Uses — Reports.

Subject to tier II and tier III capital building fund matching requirements under this chapter, each institution may use its allocation of funds from the university system capital building fund for projects specifically authorized by the legislative assembly to use university system capital building fund moneys. In addition, after an institution has matched and committed seventy-five percent of the funding appropriated for the institution’s tier I extraordinary repairs and subject to state board of higher education approval and matching requirements under this chapter, each institution may use its allocation of funds from the university system capital building fund for extraordinary repairs and deferred maintenance projects that do not increase the overall square footage of a building. The state board of higher education shall report biennially to the legislative management and to the appropriations committees of the legislative assembly on the use of funding in the university system capital building fund, the source of matching funds, and each institution’s five-year plan for capital construction spending.

Source: S.L. 2021, ch. 31, § 14, effective April 26, 2021; enacted by 2021, ch. 134, § 1, effective April 26, 2021.

Note.

Section 15-54.1-02 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 14 of Chapter 31, Session Laws 2021, Senate Bill 2003; and Section 1 of Chapter 134, Session Laws 2021, Senate Bill 2033.

15-54.1-03. Tier II capital building funds — Matching requirements.

The state board of higher education may allocate tier II capital building fund moneys to an institution for a project only after the institution provides one dollar of matching funds from operations or other sources for each one dollar from the university system capital building fund for the project. An institution may not use tier I extraordinary repairs funding, tier III capital building fund moneys, or state funding appropriated for a specific capital project as matching funds under this section.

Source: S.L. 2021, ch. 31, § 14, effective April 26, 2021; enacted by 2021, ch. 134, § 1, effective April 26, 2021.

Note.

Section 15-54.1-03 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 14 of Chapter 31, Session Laws 2021, Senate Bill 2003; and Section 1 of Chapter 134, Session Laws 2021, Senate Bill 2033.

15-54.1-04. Tier III capital building funds — Matching requirements.

The state board of higher education may allocate tier III capital building fund moneys to an institution only after the institution provides two dollars of matching funds from operations or other sources for each one dollar from the university system capital building fund for the project. An institution may not use tier I extraordinary repairs funding, tier II capital building fund moneys, or state funding appropriated for a specific capital project as matching funds under this section.

Source: S.L. 2021, ch. 31, § 14, effective April 26, 2021; enacted by 2021, ch. 134, § 1, effective April 26, 2021.

Note.

Section 15-54.1-04 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 14 of Chapter 31, Session Laws 2021, Senate Bill 2003; and Section 1 of Chapter 134, Session Laws 2021, Senate Bill 2033.

15-54.1-05. Capital building fund pool.

If the state board of higher education has not allocated capital building fund moneys to an institution by January first of the third biennium after the funding was appropriated or transferred to the fund, the board shall reallocate the funds to a pool within the university system capital building fund. Any institution under the control of the state board of higher education that has fully matched and committed its university system capital building fund allocation may apply for and be allocated funding from the capital building fund pool, subject to state board of higher education approval and tier III capital building fund matching requirements under this chapter.

Source: S.L. 2021, ch. 31, § 14, effective April 26, 2021; enacted by 2021, ch. 134, § 1, effective April 26, 2021.

Note.

Section 15-54.1-05 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 14 of Chapter 31, Session Laws 2021, Senate Bill 2003; and Section 1 of Chapter 134, Session Laws 2021, Senate Bill 2033.

15-55-01. Portions of campuses set aside for authorized revenue-producing buildings or other revenue-producing campus improvements.

Subject to and in accordance with the terms of this chapter, the state board of higher education, for and on behalf of the institutions under its supervision and control, from time to time, may set aside such portions of the respective campuses of said institutions as may be necessary and suitable for the construction thereon of such revenue-producing buildings or other revenue-producing campus improvements as, from time to time, may be authorized by the legislative assembly, and including additions to existing buildings or other campus improvements used for such purposes, and may construct such campus improvements and buildings or additions thereon and may equip, furnish, maintain, and operate such buildings and other campus improvements.

Source: S.L. 1947, ch. 154, § 1; R.C. 1943, 1957 Supp., § 15-5501; S.L. 1967, ch. 150, § 1.

15-55-02. Board may borrow money and issue bonds — Conditions — Bonds tax free.

For the purpose of paying all or part of, but not to exceed, the cost of construction, equipment, and furnishing of any such buildings or any addition to existing buildings, or other campus improvements, or in order to refund any outstanding bonds or interim financing issued for such purpose, the state board of higher education may borrow money on the credit of the income and revenue to be derived from the operation of the said building or buildings or other campus improvements, and, in anticipation of such collections of such income and revenues, may issue negotiable bonds in such an amount as, in the opinion of the board, may be necessary for such purposes, all within the limits of the authority granted by the legislative assembly in each instance, and may provide for the payment of such bonds and the rights of the holders thereof as provided in this chapter. The bonds may bear such date or dates; mature at such time or times not exceeding fifty years from their date; be in such denomination or denominations; be in such form, either coupon or registered; carry such registration and conversion privileges; be executed in such manner; be payable in such medium of payment at such place or places; be subject to such terms of redemption with or without premium; bear such rate or rates of interest; and be subject to such other terms or conditions as may be provided by resolution or resolutions to be adopted by the board. The bonds may be sold in such manner and at such price or prices as may be considered by the board to be advisable. The average net interest cost to maturity for any bond issues sold at private sale may not exceed twelve percent per annum. There is no interest rate ceiling on those issues sold at public sale or to the state of North Dakota or any of its agencies or instrumentalities. Any grants agreed to be made by the United States of America or any agency or instrumentality thereof to reduce the interest cost of bonds, whether or not pledged to the payment of the bonds or interest thereon as part of the income and revenue to be derived from the operation of the buildings or improvements pledged to the payment of the issue, must be considered as a reduction in the interest costs of the bonds with respect to which the grant is made, for purposes of the rate limitations on interest costs provided herein. The bonds 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 board, in its discretion, may authorize one issue of bonds hereunder for the construction, furnishing, and equipment of more than one building or other campus improvement and may make the bonds payable from the combined revenues of all buildings or other campus improvements acquired in whole or in part with the proceeds thereof, and when bonds are so issued, the words “the building”, as herein used, refers to all the buildings or other campus improvements so acquired.

Source: S.L. 1947, ch. 154, § 2; 1957, ch. 148, § 1; R.C. 1943, 1957 Supp., § 15-5502; S.L. 1961, ch. 168, § 1; 1963, ch. 176, § 1; 1967, ch. 150, § 2; 1969, ch. 182, § 1; 1971, ch. 249, § 2; 1975, ch. 174, § 1; 1981, ch. 269, § 2; 1987, ch. 235, § 1.

15-55-02.1. Refunding bonds.

Bonds may be refunded, but no bonds may be refunded under this chapter unless the bonds either mature or are callable for prior redemption under their terms within thirty years from the date of issuance of the refunding bonds, or unless the holder or holders of the bonds voluntarily surrender them for exchange or payment. Outstanding bonds of more than one issue or series and bonds for refunding and other bonds to construct, furnish, or equip any building or addition or other campus improvement for which bonds are authorized may be combined into one issue or series and may provide for and restrict the combination of future series with the issue. Except as otherwise provided in this section, the bonds must have such details and must be authorized and issued in the manner provided in this chapter. Refunding bonds so issued may carry forward for the payment of the refunding bonds such security and sources of payment as were pledged to the payment of the bonds refunded, and a combined issue of refunding and other bonds may combine such security and sources of payment with a pledge of the revenues of buildings or other campus improvements acquired in whole or in part from the proceeds of the issue, including the security and sources of payment of any future series of refunding bonds or revenues of any building or other campus improvement acquired from the proceeds of a future series if and to the extent that provision is made for combination of future series with the issue. The word “building” as used in this section means all the buildings or other campus improvements the revenues of which are pledged. Any bonds issued for refunding purposes may be delivered in exchange for the outstanding bonds authorized to be refunded, sold at either public or private sale, or sold in part and exchanged in part. There is no interest rate ceiling on those issues issued solely for refunding purposes. The sale price may exceed the principal amount of refunding bonds and the excess may be used to provide for payment of redemption premiums of the bonds to be refunded and to provide for expenses of the issuance and sale of the bonds and the retirement of the outstanding bonds. All other proceeds of the sale must be, to the extent needed, immediately applied to the retirement of the bonds to be refunded, or the proceeds or investments thereof must be placed in escrow to be held and applied to the payment of the bonds to be refunded, or in the case of crossover refunding, must be invested in securities irrevocably appropriated to the payment of principal and interest on the refunding bonds until the date the proceeds are applied to the payment or redemption of the bonds to be refunded.

The proceeds may, in the discretion or pursuant to covenant of the board, be invested in obligations of the United States of America, or in obligations fully guaranteed by the United States of America, but the obligations so purchased must have such maturities and bear such rates of interest payable at such times as will assure the existence of money sufficient to pay the bonds to be refunded when due or when redeemed pursuant to call for redemption, together with any interest and redemption premiums. The proceeds or obligations so purchased must be deposited in trust with the trustee for the refunded bonds, or with the banking corporation, association, or limited liability company which is the paying agent for the refunded bonds, or with the state treasurer, to be held, liquidated, and the proceeds of such liquidation paid out for the payment of the bonds to be refunded and interest and redemption premiums thereon as the refunded bonds become due or subject to redemption under call for redemption previously made, or upon earlier voluntary surrender thereof with the consent of the board. The determination of the board in issuing refunding bonds that the issuance and sale of refunding bonds is necessary for the best interests of the institution and that the limitations herein imposed upon the issuance of refunding bonds have been met is conclusive in the absence of fraud or arbitrary and gross abuse of discretion.

Source: S.L. 1965, ch. 154, § 1; 1967, ch. 150, § 3; 1975, ch. 175, § 1; 1987, ch. 236, § 1; 1993, ch. 54, § 106.

15-55-03. Bonds are special obligations and board may insert special provisions in bonds.

The bonds issued under the provisions of this chapter may not be an indebtedness of the state of North Dakota nor of the institution for which they are issued nor of the state board of higher education thereof, nor of the individual members, officers or agents thereof nor may any building or other campus improvement or the land upon which it is situated, or any part thereof be security for or be levied upon or sold for the payment of said bonds, but the said bonds must be special obligations payable solely from the revenues to be derived from the operation of the building or other campus improvement, and the board is authorized and directed to pledge all or any part of such revenues to the payment of principal and interest on the bonds. In order to secure the prompt payment of such principal and interest and the proper application of the revenues pledged thereto, the board is authorized by appropriate provisions in the resolution or resolutions authorizing the bonds:

1. To covenant as to the use and disposition of the proceeds of the sale of such bonds;
2. To covenant as to the operation of the building or other campus improvement and the collection and disposition of the revenues derived from such operation;
3. To covenant as to the rights, liabilities, powers, and duties arising from the breach of any covenant or agreement into which it may enter in authorizing and issuing the bonds;
4. To covenant and agree to carry such insurance on the building or other campus improvement, and the use and occupancy thereof as may be considered desirable and, in its discretion, to provide that the cost of such insurance shall be considered as part of the expense of operating the building or other campus improvement;
5. To vest in a trustee or trustees for the bondholders the right to receive all or any part of the income and revenues pledged and assigned to or for the benefit of the holder or holders of bonds issued hereunder and to hold, apply, and dispose of the same, and the right to enforce any covenant made to secure the bonds and to execute and deliver a trust agreement or agreements which may set forth the powers and duties and the remedies available to such trustee or trustees and may limit the liabilities thereof and prescribe the terms and conditions upon which such trustee or trustees or the holder or holders of the bonds in any specified amount or percentage may exercise such rights and enforce any or all such covenants and resort to such remedies as may be appropriate;
6. To fix rents, charges, and fees to be imposed in connection with and for the use of the building or other campus improvement and the facilities supplied thereby, which rents, charges, and fees shall be considered to be income and revenues derived from the operation of the building or campus improvement, and are hereby expressly required to be fully sufficient to assure the prompt payment of principal and interest on the bonds as each becomes due, and to make and enforce such rules and regulations with reference to the use of the building or campus improvement, and with reference to requiring any class or classes of students to use the buildings or other campus improvements as it may deem desirable for the welfare of the institutions and its students or for the accomplishments of the purposes of this chapter;
7. To covenant to maintain a maximum percentage of occupancy of the building or other campus improvement;
8. To covenant against the issuance of any other obligations payable from the revenues to be derived from the building or other campus improvement; and
9. To make covenants other than and in addition to those herein expressly mentioned of such character as may be considered necessary or advisable to affect the purposes of this chapter.

All such agreements and covenants entered into by the board are enforceable by appropriate action or suit at law or in equity, which may be brought by any holder or holders of bonds issued hereunder.

Source: S.L. 1947, ch. 154, § 3; R.C. 1943, 1957 Supp., § 15-5503; S.L. 1967, ch. 150, § 4.

15-55-04. Board may enter into contract with federal agencies.

The board may enter into any agreements or contracts with the United States of America or any agency or instrumentality thereof which it may consider advisable or necessary in order to obtain a grant of funds or other aid to be used in connection with the proceeds of the bonds in paying the cost of the construction, furnishing, and equipment of the building or other campus improvement.

Source: S.L. 1947, ch. 154, § 4; R.C. 1943, 1957 Supp., § 15-5504; S.L. 1967, ch. 150, § 5.

15-55-04.1. Lease of revenue-producing buildings.

The state board of higher education may, at such times as it deems necessary, enter into agreements with other persons, including any federal or state agency, for the lease of revenue-producing buildings, constructed or purchased under the provisions of this chapter, upon such terms and conditions as the board deems proper. However, any such lease entered into pursuant to this section must be limited to a maximum term of ten years.

Source: S.L. 1975, ch. 176, § 1; 1985, ch. 231, § 1.

15-55-05. Deposit and use of proceeds of bonds — Authorizing issuing of warrants — Contracts.

The proceeds from the sale of the bonds herein authorized must be deposited to the credit of the board and kept in a separate fund in the state treasury, in the Bank of North Dakota or in a bank which is a duly designated depository for state funds and is a member of the federal deposit insurance corporation. Provided, that when such funds are deposited in a bank other than the Bank of North Dakota or a bank which is not a duly designated depository for state funds, such bank must be required to pledge, as security for such deposit, securities in an amount equal to the sum by which such deposit exceeds the amount of federal deposit insurance corporation insurance. Securities which are eligible for such pledge are notes or bonds issued by the United States government, its agencies or instrumentalities, all bonds and notes guaranteed by the United States government, federal land bank bonds, or bonds issued by any state of the United States. In lieu of the deposit of such securities, a surety bond may be accepted from the bank designated as a depository in a sum equal to the amount of funds such bank may receive in excess of the amount guaranteed by the federal deposit insurance corporation. Such proceeds must be used solely for the purpose for which the bonds are authorized except that the board may invest such funds in direct obligations of, or obligations the principal of and interest on which are guaranteed by, the United States of America, or obligations of the state of North Dakota or of any municipality as defined in section 21-03-01 prior to or during building or other campus improvement construction except to the extent such investment is prohibited or restricted by any covenant made with or for the benefit of bondholders. The board is authorized to make all contracts and to cause the execution of all instruments which in its discretion may be deemed necessary or advisable to provide for the construction, furnishing, and equipment of the building or other campus improvement or for the sale of the bonds or for interim financing deemed necessary or advisable pending the sale of the bonds and pledging the proceeds of the bonds.

Source: S.L. 1947, ch. 154, § 5; R.C. 1943, 1957 Supp., § 15-5505; S.L. 1961, ch. 168, § 2; 1967, ch. 150, § 6; 1987, ch. 235, § 2.

15-55-05.1. Interim financing.

The board may provide for interim financing pending completion of revenue-producing projects at state institutions of higher learning and financing the cost thereof and may authorize the issuance and sale of special interim warrants for that essential governmental purpose, such warrants to be paid with interest from:

1. The proceeds of definitive bonds issued in accordance with this chapter;
2. Warrants issued to refund outstanding warrants; or
3. The combined net revenues to be derived from the operation of buildings and campus improvements for which bonds are outstanding with which the definitive bonds to be issued for such project will be on a parity.

The board shall arrange for the proper preparation and sale of the warrants and shall issue the warrants in an aggregate principal amount not exceeding the sum of bonds authorized and necessary to finance completion of the project. Interim warrants are subject to call and prepayment on thirty days’ prior written notice to the place of payment at par and accrued interest to date of prepayment at the option of the board; must mature not more than three years from their date; and may bear such rate or rates of interest as the board may provide, not exceeding an average net interest cost of twelve percent per annum on issues sold at private sale. There is no interest rate ceiling on warrant issues sold at public sale or to the state of North Dakota or any of its agencies or instrumentalities. Interim warrants may be sold on the basis of ninety-five percent of par plus accrued interest to date of delivery. All warrants for a particular project must mature within three years from the date of issuing the first warrants for the project. If warrants are issued to refund warrants, the refunded warrants must be paid and canceled upon the issuance of the refunding warrants, or the proceeds at the sale of the refunding warrants, excepting the accrued interest received, must be used to purchase direct obligations of the United States of America. Such obligations must mature at such time or times, with interest thereon or the proceeds received therefrom, to provide funds adequate to pay, when due or called for redemption prior to maturity, the warrants to be refunded together with the interest accrued thereon and any redemption premium due thereon. Such proceeds or obligations of the United States of America must, with all other funds legally available for such purpose, be deposited in escrow with a banking corporation or national banking association located in and doing business in the state of North Dakota, with power to accept and execute trusts, or any successor thereto, which is also a member of the federal deposit insurance corporation and of the federal reserve system. The proceeds or obligations are to be held in an irrevocable trust solely for and until the payment and redemption of the warrant to be refunded. Any balance remaining in escrow after the payment and retirement of the warrants to be refunded must be returned to the board to be used and held for use as revenues pledged for the payment of the definitive bonds. Interim warrants 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. Interim warrants are eligible for investment of funds the same as definitive bonds are or would be eligible for investment under section 15-55-08.

Such warrants may not constitute a general obligation indebtedness of the state of North Dakota nor of the institution for which they are issued nor of the state board of higher education nor of the individual members, officers, or agents thereof; are payable solely as provided in this section; and the warrants issued and sold must so state.

Source: S.L. 1971, ch. 198, § 1; 1981, ch. 269, § 3.

15-55-06. Designations of agent and depositories — Disposition and use of revenues — Funds created.

All income and revenues derived from the operation of any building or other campus improvement financed or the revenues of which are pledged in the manner provided in this chapter must be collected by such officer or agent of the institution where the building or other campus improvement is located as the state board of higher education from time to time may designate and must be accounted for by such officer or agent, deposited, and remitted as in this section provided. The said board, in its resolution authorizing the bonds or in the trust agreement or agreements executed and delivered by the board, shall provide for the disposition of and accounting for all such revenues by such officer or agent, including the designation of a depository or depositories, the payment of expenses of operation and maintenance, the remittance of revenues to the paying agent designated in the bonds for payment of principal of and interest on the bonds when due, and the investment and disposition of revenues not immediately required for payment of expenses, principal, and interest. The board may designate as a depository for such revenues and funds either the state treasury or the Bank of North Dakota or the trustee under the trust agreement for the bondholders or a bank which is a duly designated depository for state funds or as provided in section 15-55-05. The said board may, in its resolution authorizing the bonds or in the trust agreement or agreements executed and delivered by the board, provide for an expense fund to be retained by the collecting officer for the purpose of paying and may direct the collecting officer to pay the accrued or anticipated expenses of operation and maintenance of the building or campus improvement, and if the board so directs or if such expense fund is so provided, the collecting officer may pay such expenses as so directed by the board or from said fund. The funds required to be remitted to the state treasurer, if any, and any funds derived from revenues pledged to the bondholders must be held by the collecting officer or in the depository for such funds designated by the board in a special fund or funds, to be applied solely to the payment of the principal and interest on said bonds, and the establishment of a reserve for future payments until all of said bonds and interest thereon have been fully paid; provided, that to the extent not prohibited or restricted by any covenant made with or for the benefit of the bondholders, the board may invest any such funds in direct obligations of, or obligations the principal of and interest on which are guaranteed by, the United States of America, or obligations of the state of North Dakota or of any municipality as defined in section 21-03-01 and may devote revenues not currently required for payment of principal and interest, for the creation or maintenance of a debt service reserve, or for expenses of operation and maintenance to such purposes as the board from time to time may designate, including replacing the furnishings and equipment of such building or buildings or campus improvements and improving said building or buildings or campus improvements.

Source: S.L. 1947, ch. 154, § 6; R.C. 1943, 1957 Supp., § 15-5506; S.L. 1961, ch. 168, § 3; 1967, ch. 150, § 7; 1987, ch. 235, § 3.

15-55-07. Endorsement of bonds — Attorney general to approve — Incontestable — Exception.

All bonds issued under the provisions of this chapter must have endorsed thereon a statement to the effect that the same do not constitute an obligation of the state of North Dakota, the state board of higher education, nor the individual members, officers, or agents thereof, nor of the institution upon the campus of which the building or campus improvement is located, and that the said bonds are payable solely and only out of the revenues to be produced and received from the operation of said building or campus improvement. Such bonds must be submitted to the attorney general of North Dakota for examination and when such bonds have been examined and certified as legal obligations by the attorney general in accordance with such requirements as the attorney general may make, are incontestable in any court in this state unless suit thereon is brought in a court having jurisdiction thereof within thirty days from the date of such approval. Bonds so approved by the attorney general are prima facie valid and binding obligations according to their terms and the only defense which may be offered thereto in any suit instituted after such thirty-day period has expired is forgery, fraud, or violation of the constitution.

Source: S.L. 1947, ch. 154, § 7; R.C. 1943, 1957 Supp., § 15-5507; S.L. 1967, ch. 150, § 8.

15-55-08. Who may invest in bonds.

Any bank or trust company organized under the laws of this state may invest its capital and surplus in bonds issued under this chapter. Any state board, bureau, institution, or industry having the power to invest public funds or the funds of such board, bureau, institution, or industry may invest said funds in bonds issued pursuant to this chapter in the same manner and under the same restrictions as are provided by law for other investments. The officers having charge of any sinking fund of any county, city, town, township, or school district thereof may invest the sinking fund of such county, city, town, township, or school district in bonds issued under the provisions thereof. The bonds are authorized collateral security for the deposit of any public funds and for the investment of trust funds.

Source: S.L. 1947, ch. 154, § 8; R.C. 1943, 1957 Supp., § 15-5508; S.L. 1983, ch. 319, § 11.

15-55-09. Construction of chapter not to permit obligating of state.

Nothing in this chapter may be construed to authorize or permit the state board of higher education, or any officer or agency of the state, to create any state debts, or to incur any obligations of any kind or nature, except as are payable solely and only from the special funds to be created from the revenues of the building or buildings or other campus improvements erected or constructed under the terms and provisions of this chapter, nor may the state of North Dakota or any funds or moneys of this state other than the special funds derived from the income of said building or buildings or campus improvements respectively ever be deemed obligated for the payment of the said bonds or any part thereof.

Source: S.L. 1947, ch. 154, § 9; R.C. 1943, 1957 Supp., § 15-5509; S.L. 1967, ch. 150, § 9.

15-55-10. Limitation on buildings and other campus improvements and issuance of bonds.

No building or other campus improvement may be erected or constructed under this chapter, and no bonds may be issued for the payment of the cost of any building or other campus improvement under this chapter, unless authorized by legislative act, nor may any building or other campus improvement be erected at a cost exceeding the amount fixed by the legislative assembly as the maximum to be expended for the building or other campus improvement undertaken under this chapter. The legislative authorization may be aggregated and the appropriation of the proceeds of the bonds for the construction of the buildings or improvements are not subject to cancellation under section 54-44.1-11. Authorization for the issuance of bonds by the legislative assembly expires four years after the effective date of the authorization unless bonds have been issued for the construction of buildings or improvements in the amounts so authorized or a contract for the design of the building has been signed by the state board of higher education before the expiration date or the authorization specifies a different expiration date. Refunding bonds may be issued by the state board of higher education under this chapter without legislative act to refund, at or before the maturity of or pursuant to any privilege of prepayment reserved in or granted with respect to, any bonds issued to pay the cost of buildings or other campus improvements designated and authorized by legislative act.

Source: S.L. 1947, ch. 154, § 10; R.C. 1943, 1957 Supp., § 15-5510; S.L. 1963, ch. 176, § 2; 1967, ch. 150, § 10; 1969, ch. 183, § 1; 1999, ch. 156, § 2.

15-55-11. Issuance and sale of tax-exempt bonds authorized — Amount. [Repealed]

Omitted.

15-55-12. Bonds not a general obligation of state or its institutions. [Repealed]

Omitted.

15-55-13. Additional revenue-producing buildings authorized. [Repealed]

Omitted.

15-55-14. Rental income from unencumbered revenue-producing buildings or other campus improvements may be applied to bond retirement.

The state board of higher education, when issuing bonds under the provisions of this chapter and the powers herein granted, has additional powers as follows:

1. When the state board of higher education has issued bonds as provided in this chapter for the purpose of securing funds for all or part of the cost of construction, equipment, and furnishing of any new revenue-producing building or other campus improvement for any of the state-supported institutions of higher learning of the state of North Dakota, or for the purpose of refunding any such bonds, said board is hereby authorized to cover, from time to time, into the interest and principal payment fund for bonds issued, or into a fund for operation and maintenance of the building or other campus improvement so financed or into a fund for repair or replacement of the building or other campus improvement, its equipment and furnishings, the rental or income from revenue-producing buildings or other campus improvements which are not encumbered or impressed with any lien and which are located upon the campuses of such institutions.
2. In case of destruction of such revenue-producing buildings or campus improvements by fire, tornado, cyclone, or other cause, the proceeds from insurance on such revenue-producing buildings or campus improvements shall be covered into the bond payment fund for the payment of bonds issued under this chapter unless such insurance may be and is used for the repair or replacement of the building or campus improvement, its equipment and furnishings.
3. The rental income from said revenue-producing buildings or other revenue-producing campus improvements, and the proceeds of insurance thereon may be irrepealably pledged to the payment of the principal and interest of the bonds issued as in this chapter provided, or to the expenses of operation and maintenance or repair or replacement of the building or campus improvement, its equipment and furnishings.
4. The bonds issued under the provisions of this chapter may not be an indebtedness or obligation of the state of North Dakota or of any of the state institutions nor of any board, bureau, or officer of the state of North Dakota, but such bonds must be payable solely out of income and revenue as provided in this chapter.

The rental income from the revenue-producing buildings or other revenue-producing campus improvements, as defined herein, of any educational institutions of higher learning of the state shall be covered only into a fund for a revenue-producing building or other revenue-producing campus improvement for such educational institution and not to any other institution.

Source: S.L. 1949, ch. 161, §§ 1, 2; R.C. 1943, 1957 Supp., § 15-5514; S.L. 1961, ch. 168, § 4; 1965, ch. 154, § 2; 1967, ch. 150, § 11.

15-55-15. Bond issues — Amounts and purposes (1955). [Repealed]

Omitted.

15-55-16. Bond issues — Amounts and purposes (1957). [Repealed]

Omitted.

15-55-17. Bond issues — Amounts and purposes (1959). [Repealed]

Omitted.

15-55-18. School district retirement of bonds for junior colleges and off-campus educational centers. [Repealed]

Repealed by S.L. 1999, ch. 154, § 2.

15-55-19. Powers and procedure. [Repealed]

Repealed by S.L. 1999, ch. 154, § 2.

15-55-20. Financial records required.

Each institution under the control of the state board of higher education which has constructed student housing, a food service facility, or a student union under the provisions of this chapter shall maintain records of financial accounts to provide a record of revenues received and expenses incurred in the use of such revenue-producing building. The definition of “expenses incurred” includes, but is not limited to, the estimated value of heat, electricity, water, repairs, insurances, and janitorial and maintenance services provided. From the information recorded in such records, appropriate financial statements must be prepared and included in the institutions’ published and audited annual or biennial financial reports.

Source: S.L. 1971, ch. 199, § 1; 1973, ch. 170, § 1.

15-55-21. Expenses to be paid from gross revenues. [Repealed]

Repealed by S.L. 1987, ch. 3, § 17.

15-62.1-01. Guarantee student loan programs — Administration — Advisory board.

The Bank of North Dakota, hereinafter called the “agency”, is the state agency designated to administer state guarantee loan programs, as provided in this chapter. The advisory board of directors to the Bank of North Dakota shall act in an advisory capacity concerning the programs. The agency, upon recommendation of the advisory board and subject to approval of the industrial commission, shall expend moneys received and from the interest earned on the principal balance in the reserve funds established pursuant to this chapter as may be necessary to implement and administer the programs. The term “student” includes a parent borrower under this chapter and the term “coinsurance” includes reinsurance.

Source: S.L. 1969, ch. 186, § 1; 1979, ch. 267, § 1; 1981, ch. 226, § 1; 1983, ch. 119, § 2; 1991, ch. 205, § 1; 1993, ch. 45, § 6; 1995, ch. 205, § 1.

Cross-References.

Industrial commission’s acquisition of guaranteed loans, trust created, bonds authorized, see N.D.C.C. §§ 54-17-24 to 54-17-26.

Uniform Minor Student Capacity to Borrow Act, see N.D.C.C. ch. 14-10.2.

15-62.1-02. Powers and duties of the agency.

The agency has the following powers and duties under this chapter:

1. To guarantee all loans that satisfy the requirements set forth in title IV, part B, of the Higher Education Act of 1965 [20 U.S.C. 1001 et seq.; Pub. L. 89-329; 79 Stat. 1236; Pub. L. 99-498; 100 Stat. 1353; Pub. L. 105-244; 112 Stat. 1581], as amended through December 31, 1998, upon terms, conditions, and application procedures commensurate with the federal Higher Education Act of 1965 [20 U.S.C. 1001 et seq.; Pub. L. 89-329; 79 Stat. 1236; Pub. L. 99-498; 100 Stat. 1353; Pub. L. 105-244; 112 Stat. 1581], as amended through December 31, 1998, if federal coinsurance of student loans guaranteed by the agency is available. If at any time the agency determines that student loans made under the terms and conditions of federal coinsurance programs are no longer adequately serving the needs of North Dakota students attending postsecondary institutions, or if federal coinsurance is no longer available, the agency shall notify the industrial commission or its designee. Upon approval of the industrial commission or its designee, the agency shall guarantee student loans without federal coinsurance pursuant to rules made by the agency relating to terms for applicant eligibility in accordance with the provisions of this chapter. Students whose loans are guaranteed by the agency must be students who have been accepted for enrollment in postsecondary training or are attending eligible postsecondary institutions located within or outside this state, and whose loans are for the purpose of assisting them in meeting their expenses of postsecondary education. Students who are accepted for enrollment or are attending eligible proprietary or postsecondary institutions of higher education are eligible to have loans guaranteed by the agency. The agency shall, by rule, establish minimum qualifications for a person to be deemed a part-time student for purposes of this chapter.
2. To take, hold, expend, and administer, on behalf of the state from any source any real property, personal property and moneys, or any interest therein, and the income therefrom, either absolutely or in trust, for any purpose of the guarantee loan program; provided, that no guarantee obligation of the agency may be a general obligation of the state of North Dakota, nor may be payable out of any moneys except those made available to the agency under this chapter. Nothing in this chapter may be construed to authorize the agency to borrow funds for any use relating to the administration of the state guarantee loan programs.

Source: S.L. 1969, ch. 186, § 2; 1979, ch. 267, § 2; 1983, ch. 119, § 3; 1991, ch. 205, § 2; 1995, ch. 205, § 2; 1997, ch. 94, § 7; 1999, ch. 194, § 1; 2005, ch. 148, § 2; 2019, ch. 82, § 3, effective March 21, 2019.

15-62.1-03. Rates of interest permissible for guaranteed loans.

All loans guaranteed by the agency and coinsured by the federal government must bear interest at rates which are no greater than those provided under the federally coinsured loan programs. In the event that the agency guarantees student loans without federal coinsurance pursuant to section 15-62.1-02, the interest rate on such loans may be fixed or variable. Any prohibition on the capitalization of interest does not apply to loans guaranteed under this chapter. A loan guaranteed under this chapter may provide for interest which remains unpaid at the end of any period specified in the loan to be added to the principal amount of the debt and thereafter accumulate interest.

Source: S.L. 1969, ch. 186, § 3; 1983, ch. 119, § 4; 1995, ch. 205, § 3; 1997, ch. 93, § 2; 2007, ch. 158, § 1.

15-62.1-04. Repayment of loans.

The agency shall establish rules for the repayment, or deferment of repayment, of loans guaranteed under this chapter which are coinsured by the federal government consistent with the Higher Education Act of 1965, as amended. The agency shall adopt rules for the repayment, or deferment of repayment, of loans guaranteed by the agency which are not coinsured by the federal government.

Source: S.L. 1969, ch. 186, § 4; 1979, ch. 267, § 3; 1983, ch. 119, § 5; 2019, ch. 82, § 4, effective March 21, 2019.

15-62.1-05. Establishment and maintenance of adequate guarantee funds — Appropriation.

The agency may enter into an agreement with the federal government for the coinsurance of loans guaranteed under this program. The agency shall establish and at all times maintain from funds appropriated under this chapter adequate guarantee reserve funds in special accounts in the Bank of North Dakota unless required by 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; Pub. L. 105-244; 112 Stat. 1581; 20 U.S.C. 1001 et seq.], as amended through December 31, 1998, to be invested elsewhere. The fund for loans that are coinsured by the federal government must be maintained at a minimum amount equal to the requirements set forth in 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; Pub. L. 105-244; 112 Stat. 1581; 20 U.S.C. 1001 et seq.], as amended through December 31, 1998. The fund for loans that are not coinsured by the federal government will be determined by the agency but may be no less than the Bank of North Dakota historical default rate. Funds appropriated under this chapter and designated as guarantee agency reserve funds for loans that are not coinsured by the federal government must be administered separately and segregated from reserve funds for loans that are coinsured by the federal government. The securities in which the moneys in the reserve funds may be invested must meet the same requirements as those authorized for investment under the state investment board. The income from such investments must be made available for the costs of administering the respective guarantee loan programs and income in excess of that required to pay the cost of administering the programs must be deposited in the respective reserve fund that corresponds to the source of the initial invested funds. The proceeds of reserve funds received from federal, state, or private sources, for the purpose of guaranteeing loans made to students as provided in this chapter, are appropriated as a continuing appropriation for the payment of defaulted loans guaranteed by each respective fund.

Source: S.L. 1969, ch. 186, § 5; 1983, ch. 119, § 6; 1995, ch. 205, § 4; 1999, ch. 195, § 1; 2005, ch. 148, § 2.

15-62.1-06. Procedure on default of guaranteed loan.

Whenever it appears to the satisfaction of the agency that a guaranteed loan made in accordance with the provisions of this chapter is in default, and the eligible lender has certified such fact to the agency, the agency shall reimburse the eligible lender making the loan from the reserve fund to the extent the loan was guaranteed by the fund. Whenever payment of the guaranteed principal balance of any insured or guaranteed loan is demanded of the agency, the note and accompanying evidence of the loan must be tendered to the agency in manner and form to confer good title so that the loan may be collected by the agency as it may determine according to law. Neither minority nor any statute of limitations may be used as a defense against collection of any loan through court proceedings.

Source: S.L. 1969, ch. 186, § 6.

15-62.1-07. Fees for insurance and other reasonable costs.

The agency may charge reasonable fees for guarantee and insurance to students obtaining or who have obtained loans under this chapter. The agency may charge up to eighteen percent of accumulated principal and interest if the loans are in default under section 15-62.1-06. The fees collected under this section must be available to defray costs of administering the guarantee loan program. Fees in excess of the amount required to pay the cost of administering the program must be deposited in the reserve fund. The authority of the agency to charge reasonable fees under this section applies to all borrowers and cosigners for loans obtained under this chapter whenever the underlying note was executed and subject to the note providing for payments of fees and collections costs.

Source: S.L. 1969, ch. 186, § 7; 1979, ch. 267, § 4; 2017, ch. 39, § 17, effective July 1, 2017.

15-62.1-08. Contract with united student aid funds, incorporated, or similar nonprofit corporation.

The agency is authorized to appoint the united student aid funds, incorporated, or similar nonprofit corporation, as agent of the state, to assist in performing the administrative functions of the state under and subject to the terms and provisions of this chapter and to perform such other duties as may be prescribed by the agency for the proper administration of the guarantee loan program. The agency shall pay fees to the united student aid funds, incorporated, or similar nonprofit corporation, as it may determine necessary for the administration of such program. In the event that the agency has entered into an agreement with united student aid funds, incorporated, or a similar nonprofit corporation and at a later date determines that it can administer the program more economically and efficiently than can such nonprofit corporation, it shall upon proper notice terminate the agreement with such nonprofit corporation.

Source: S.L. 1969, ch. 186, § 8.

15-62.1-09. Information system.

The eligible postsecondary educational institutions in the state shall furnish to the agency and other lending institutions such information as may be necessary to properly administer the guarantee loan program and the agency shall furnish information in regard to student loan transactions on a regular basis to such postsecondary educational institutions.

Source: S.L. 1969, ch. 186, § 9; 1979, ch. 267, § 5.

15-62.1-10. Eligibility for participation in federal student loan program. [Repealed]

Source: S.L. 1969, ch. 186, § 10; 1983, ch. 119, § 7; repealed by 2019, ch. 82, § 5, effective March 21, 2019.

15-62.1-11. Coordination with federal programs relating to student loans. [Repealed]

Repealed by S.L. 1979, ch. 267, § 6.

15-62.1-12. Assistance to other state agencies — Reports to the board. [Repealed]

Repealed by S.L. 1979, ch. 267, § 6.

15-62.1-13. State scholarship revolving fund — Student loan collections — Uncollectible loans.

The funds in the state scholarship revolving fund, along with the available interest on such moneys and subsequent payments of interest and principal received from students, must be transferred by the Bank of North Dakota to a special fund in the Bank to serve as a reserve fund for a state guarantee loan program. The Bank shall continue to collect all outstanding loans and provide such other services as may be necessary to collect such loans and may cease collection efforts on loans determined uncollectible by action of the industrial commission.

Source: S.L. 1969, ch. 186, § 13; 1981, ch. 227, § 1.

15-62.1-14. Penalty. [Repealed]

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

15-62.1-15. Student loan consolidation program — Requirements — Authority to expand.

1. The agency shall develop and administer a student loan consolidation program under which the agency may refinance state, federal, and alternative education loans for eligible physicians. In order to be eligible under this subsection, a physician must:
   1. Be licensed in accordance with chapter 43-17; and
   2. Be a resident of and practice in a North Dakota city having a population that does not exceed four thousand five hundred.
2. The agency may expand the student loan consolidation program to serve individuals other than those referenced in subsection 1.

Source: S.L. 2013, ch. 143, § 1.

15-62.2-00.1. Definitions. [Repealed]

Source: S.L. 1987, ch. 241, § 1; 1989, ch. 247, § 1; 1997, ch. 185, § 1; 2003, ch. 142, § 1; 2005, ch. 149, § 1; 2007, ch. 159, § 1; 2009, ch. 168, § 1; repealed by 2015, ch. 3, § 24, effective July 1, 2015.

15-62.2-01. Student financial assistance and scholars programs — Establishment — Administrative responsibility. [Repealed]

Source: S.L. 1973, ch. 173, § 1; 1975, ch. 181, § 1; 1977, ch. 185, § 1; 1979, ch. 268, § 1; 1987, ch. 241, § 7; 1989, ch. 247, § 2; 1995, ch. 54, § 8; 2005, ch. 31, § 26; 2007, ch. 159, § 2; 2009, ch. 168, § 2; 2013, ch. 144, § 1; repealed by 2015, ch. 3, § 24, effective July 1, 2015.

15-62.2-02. State board of higher education — Powers and duties. [Repealed]

Source: S.L. 1973, ch. 173, § 2; 1979, ch. 268, § 2; 1987, ch. 241, § 8; 1989, ch. 247, § 3; 1989, ch. 248, § 1; 2005, ch. 150, § 1; 2009, ch. 31, § 36; 2013, ch. 34, § 17; repealed by 2015, ch. 3, § 24, effective July 1, 2015.

15-62.2-03. Advisory board — Membership — Appointment — Authority. [Repealed]

Source: S.L. 1973, ch. 173, § 3; 1979, ch. 268, § 3; repealed by 2015, ch. 3, § 24, effective July 1, 2015.

15-62.2-03.1. Administration of scholars program. [Repealed]

Source: S.L. 1987, ch. 241, § 2; 1989, ch. 247, § 4; repealed by 2015, ch. 3, § 24, effective July 1, 2015.

15-62.2-03.2. Reapplication eligibility — Amount of scholarships — Duration. [Repealed]

Source: S.L. 1987, ch. 241, § 3; 1989, ch. 247, § 5; 1993, ch. 206, § 1; 2003, ch. 142, § 2; repealed by 2015, ch. 3, § 24, effective July 1, 2015.

15-62.2-03.3. Selection of scholars. [Repealed]

Source: S.L. 1987, ch. 241, § 4; 1989, ch. 247, § 6; 1997, ch. 185, § 2; 2003, ch. 142, § 3; 2003, ch. 143, § 1; 2005, ch. 149, § 2; repealed by 2015, hb1003, § 24, effective July 1, 2015.

15-62.2-03.4. Payment of scholarships. [Repealed]

Source: S.L. 1987, ch. 241, § 5; 1989, ch. 247, § 7; repealed by 2015, ch. 3, § 24, effective July 1, 2015.

15-62.2-03.5. Use of funds — Refund policy. [Repealed]

Source: S.L. 1987, ch. 241, § 6; 1989, ch. 247, § 8; repealed by 2015, ch. 3, § 24, effective July 1, 2015.

15-62.2-04. Funds received by the state board of higher education — Where deposited — How appropriated — How expended. [Repealed]

Repealed by S.L. 2013, ch. 145, § 1.

Effective Date.

The repeal of this section by section 1 of chapter 145, S.L. 2013 became effective August 1, 2013.

15-62.2-05. Annual report. [Repealed]

Source: S.L. 2009, ch. 31, § 37; repealed by 2015, ch. 3, § 24, effective August 1, 2015.

15-62.3-01. Definitions. [Repealed]

Repealed by S.L. 2009, ch. 168, § 3.

15-62.3-02. Administration of tuition assistance grant program. [Repealed]

Repealed by S.L. 2009, ch. 168, § 3.

15-62.3-03. Tuition assistance grant eligibility — Application. [Repealed]

Repealed by S.L. 2009, ch. 168, § 3.

15-62.3-04. Tuition assistance grant maximum. [Repealed]

Repealed by S.L. 2009, ch. 168, § 3.

15-62.3-05. Tuition assistance grant duration. [Repealed]

Repealed by S.L. 2009, ch. 168, § 3.

15-62.3-06. Distribution of grant funds. [Repealed]

Repealed by S.L. 2009, ch. 168, § 3.

15-62.4-01. Student financial assistance program.

The state board of higher education shall administer the North Dakota student financial assistance program for the purpose of providing a grant to an individual who demonstrates significant financial need and who:

1. 1. Graduated from a high school in this state;
   2. Graduated from a high school in a bordering state, pursuant to chapter 15.1-29;
   3. Graduated from a nonpublic high school in a bordering state while residing with a custodial parent in this state;
   4. Completed a program of home education supervised in accordance with chapter 15.1-23; or
   5. Received a general educational development high school diploma from the superintendent of public instruction;
2. 1. Is enrolled at an accredited institution of higher education in this state, provided the institution offers a program of instruction equal to at least two academic years; or
   2. Because of a medically certifiable disability is enrolled at an accredited institution of higher education outside of this state which offers the individual special services or facilities not available in this state, provided the institution offers a program of instruction equal to at least two academic years; and
3. Is pursuing a course of study determined by the state board of higher education to be at least quarter-time.

History. S.L. 2015, ch. 3, § 17, effective July 1, 2015.

Effective Date.

This chapter became effective July 1, 2015.

15-62.4-02. Student financial assistance program — Criteria and procedures.

The state board of higher education shall adopt:

1. Criteria governing the application process;
2. Criteria governing the determination of financial need, which must include consideration of parental contributions to educational expenses, but may not include consideration of other scholarships or grants awarded by other public or private entities when determining the unmet financial need of the student;
3. Criteria governing the selection process; and
4. Procedures for providing fiscal control, fund accounting, and reports.

History. S.L. 2015, ch. 3, § 17, effective July 1, 2015; 2019, ch. 143, § 1, effective August 1, 2019.

15-62.4-03. Student financial assistance program — Grants.

1. The state board of higher education shall provide to each eligible student a financial assistance grant in an amount not exceeding:
   1. One thousand one hundred dollars per semester; or
   2. Seven hundred thirty-three dollars per quarter.
2. 1. A student is not entitled to receive grants under this chapter for more than the equivalent of:
      1. Eight semesters of full-time enrollment; or
      2. Twelve quarters of full-time enrollment.
   2. Notwithstanding subdivision a, a student is not entitled to receive a grant under this chapter after the student obtains a baccalaureate degree.
3. The board shall forward grants payable under this chapter directly to the institution in which the student is enrolled.

Source: S.L. 2015, ch. 3, § 17, effective July 1, 2015; 2019, ch. 3, § 17, effective July 1, 2019.

15-62.4-04. Student financial assistance program — Advisory board. [Repealed]

History. S.L. 2015, ch. 3, § 17, effective July 1, 2015; repealed by 2017, ch. 131, § 1, effective August 1, 2017.

15-62.4-05. Student financial assistance program — Gifts and grants — Acceptance.

The state board of higher education may receive, administer, and expend moneys from public and private sources for the purposes of this chapter.

History. S.L. 2015, ch. 3, § 17, effective July 1, 2015.

15-62.5-01. Scholars program.

The state board of higher education shall administer the scholars program for the purpose of providing a merit-based scholarship to an individual who:

1. 1. Graduated from a high school in this state;
   2. Graduated from a high school in a bordering state, pursuant to chapter 15.1-29;
   3. Graduated from a nonpublic high school in a bordering state while residing with a custodial parent in this state; or
   4. Completed a program of home education supervised in accordance with chapter 15.1-23;
2. On the ACT or an equivalent nationally recognized standardized test approved by the state board of higher education, achieved composite scores that ranked the individual at or above the ninety-fifth percentile among those who took the ACT or an equivalent nationally recognized standardized test approved by the state board of higher education, prior to July first in the calendar year preceding the individual’s enrollment;
3. 1. Is enrolled at an accredited institution of higher education in this state that offers a program of instruction equal to at least two academic years;
   2. Because of a medically certifiable disability is enrolled at an accredited institution of higher education outside of this state that offers the individual special services or facilities not available in this state, provided the institution offers a program of instruction equal to at least two academic years; and
4. Is pursuing a course of study determined by the board to be full-time.

History. S.L. 2015, ch. 3, § 18, effective July 1, 2015; 2021, ch. 158, § 1, effective August 1, 2021.

Effective Date.

This chapter became effective July 1, 2015.

15-62.5-02. Scholars program — Criteria and procedures.

The state board of higher education shall adopt:

1. Criteria governing the application process;
2. Criteria governing the selection process, within the requirements of section 15-62.5-03; and
3. Procedures for providing fiscal control, fund accounting, and reports.

History. S.L. 2015, ch. 3, § 18, effective July 1, 2015.

15-62.5-03. Scholars program — Ranking and selection of recipients.

1. The state board of higher education shall rank scholars program applicants by their ACT composite scores or equivalent scores on a nationally recognized standardized test approved by the state board of higher education.
2. If two or more applicants have the same composite scores, they must be ranked by the numeric sum of their four scale scores on the ACT or equivalent scores on a nationally recognized standardized test approved by the state board of higher education.
3. If two or more applicants have the same composite scores and the same numeric sum of the four scale scores, they must be ranked by the numeric sum of their English and mathematics scores.
4. The state board of higher education may establish additional criteria to rank applicants who have the same numeric sum of their English and mathematics scores.
5. Scholarships must be offered to applicants in descending order according to this ranking until available funds have been expended or until the pool of applicants has been exhausted.

History. S.L. 2015, ch. 3, § 18, effective July 1, 2015; 2021, ch. 158, § 2, effective August 1, 2021.

15-62.5-04. Scholars program — Scholarship amounts — Stipends.

1. 1. Each semester, the state board of higher education shall provide to an eligible student a scholarship in an amount not exceeding the tuition charged at the institution in which the student is enrolled, provided the amount may not exceed the highest undergraduate semester tuition charged at an institution of higher education under the control of the state board of higher education.
   2. Each quarter the state board of higher education shall provide to an eligible student a scholarship in an amount not exceeding the tuition charged per quarter at the institution in which the student is enrolled, provided the amount may not exceed two-thirds of the highest undergraduate semester tuition charged at an institution of higher education under the control of the state board of higher education.
   3. For purposes of this subsection, the rates are calculated using a traditional fall and spring academic year.
2. The scholarships provided for under this section are conditioned on the student maintaining a 3.5 cumulative grade point average, based on a 4.0 grading system.
3. Any student eligible for a scholarship under this section is also eligible for a stipend in an amount not exceeding two thousand dollars annually. The state board of higher education may distribute the stipend on a semester or a quarter basis.
4. 1. A student is not entitled to receive scholarships under this chapter for more than the equivalent of:
      1. Eight semesters of full-time enrollment; or
      2. Twelve quarters of full-time enrollment.
   2. Notwithstanding subdivision a, a student is not entitled to receive a scholarship under this chapter after the student obtains a baccalaureate degree.
5. The state board of higher education shall forward scholarships and stipends payable under this chapter directly to the institution in which the student is enrolled.

History. S.L. 2015, ch. 3, § 18, effective July 1, 2015.

15-62.5-05. Use of scholarships and stipends — Refund policy.

Scholarships and stipends awarded under this chapter may be applied to defray tuition charges, fees, room and board charges, and the cost of books and supplies, and for any other expenses incidental to attending an institution of higher education. If an individual discontinues attendance before the completion of any semester or quarter for which a scholarship or stipend has been received, the individual is subject to the refund or repayment policy of the institution at which the individual was enrolled.

History. S.L. 2015, ch. 3, § 18, effective August 1, 2015.

15-63-01. State board for Indian scholarships.

There is hereby established a state board for Indian scholarships consisting of an Indian appointed by the governor, the executive director of the state Indian affairs commission, and the commissioner of higher education or the commissioner’s designee. The commissioner of higher education or the commissioner’s designee shall serve as chairperson and the executive director of the state Indian affairs commission shall serve as secretary of the board for Indian scholarships. The state board of higher education shall request scholarship funds and staff to administer the Indian scholarship program in the board’s biennial budget request.

Source: S.L. 1963, ch. 178, § 1; 1969, ch. 187, § 1; 1971, ch. 204, § 1; 1989, ch. 249, § 1; 1991, ch. 602, § 1.

15-63-02. Duties of board.

The state board for Indian scholarships shall:

1. Award scholarship grants as provided in this chapter.
2. Make necessary rules and establish standards, requirements, and procedures for the administration of this chapter.
3. Encourage members of Indian tribes to attend and be graduated from any institution of higher learning or state career and technical education program within this state, and to make application for scholarships.

Source: S.L. 1963, ch. 178, § 2; 1979, ch. 270, § 2; 1997, ch. 186, § 1; 2003, ch. 138, § 43.

15-63-03. Number and nature of scholarships.

The state board for Indian scholarships shall provide scholarships each year for resident members of federally recognized Indian tribes to entitle persons so selected to enter and attend any institution of higher learning or state career and technical education program within this state upon compliance with all requirements for admission and to pursue any course or courses offered in such institutions or programs.

Source: S.L. 1963, ch. 178, § 3; 1967, ch. 153, § 1; 1969, ch. 187, § 2; 1973, ch. 174, § 1; 1997, ch. 186, § 2; 2003, ch. 138, § 44.

15-63-04. Eligibility of candidates — Determination.

The initial and continuing scholarship eligibility of state residents who are enrolled members of federally recognized Indian tribes must be determined by the state board for Indian scholarships after the candidate has gained admission to any institution of higher learning or state career and technical education program within this state and has had this fact certified to the board. Factors to be considered in the award of these scholarships are the candidate’s financial need and probable and continuing success as a student.

Source: S.L. 1963, ch. 178, § 4; 1969, ch. 187, § 3; 1979, ch. 270, § 3; 1997, ch. 186, § 3; 2003, ch. 138, § 45.

15-63-05. Scholarship payments — Conditions.

Upon the granting of a scholarship and acceptance thereof, the recipient is eligible for a credit in fees in the enrolling institution of higher learning or state career and technical education program to apply toward the cost of registration, health, activities, board, books, and other necessary items of not to exceed six hundred sixty-seven dollars per quarter for three quarters, or one thousand dollars per semester for two semesters, in any academic year. The board for Indian scholarships may reduce the amount of any scholarship to accord with individual financial need or funds available. After the enrolling institution or program has deducted the amount due such institution, the remaining balance must be given to the recipient for necessary expenses during the quarter or semester. At the beginning of each quarter or semester of a regular academic year, the board for Indian scholarships shall certify to the director of the office of management and budget the name of each recipient and the amount payable, and the director of the office of management and budget shall issue a warrant to the state treasurer who shall pay the amount of the scholarship to the institution of higher learning or state career and technical education program in which the recipient is enrolled. Renewal of the scholarship award is subject to the maintenance of a minimum grade average of “C” in the courses taken.

Source: S.L. 1963, ch. 178, § 5; 1967, ch. 153, § 2; 1971, ch. 204, § 2; 1973, ch. 174, § 2; 1977, ch. 186, § 1; 1979, ch. 270, § 4; 2003, ch. 138, § 46.

15-63-06. Unused scholarships. [Repealed]

Repealed by S.L. 1973, ch. 174, § 3.

15-63-07. Scholarship refunds — Use.

Any Indian scholarship refunds which are made must be credited to the appropriation for the biennium in which such refunds are received and may be awarded as additional scholarships in that biennium. Any amounts remaining in the appropriation at the end of any biennium must be canceled pursuant to section 54-44.1-11.

Source: S.L. 1977, ch. 187, § 1.

15-67-01. Definitions. [Repealed]

Repealed by S.L. 2009, ch. 589, § 9.

15-67-02. Appropriation of appreciation. [Repealed]

Repealed by S.L. 2009, ch. 589, § 9.

15-67-03. Rule of construction. [Repealed]

Repealed by S.L. 2009, ch. 589, § 9.

15-67-04. Investment authority. [Repealed]

Repealed by S.L. 2009, ch. 589, § 9.

15-67-05. Delegation of investment management. [Repealed]

Repealed by S.L. 2009, ch. 589, § 9.

15-67-06. Standard of conduct. [Repealed]

Repealed by S.L. 2009, ch. 589, § 9.

15-67-07. Release of restrictions on use or investment. [Repealed]

Repealed by S.L. 2009, ch. 589, § 9.

15-67-08. Uniformity of application and construction. [Repealed]

Repealed by S.L. 2009, ch. 589, § 9.

15-67-09. Short title. [Repealed]

Repealed by S.L. 2009, ch. 589, § 9.

15-68-01. Trust establishment.

The Indian cultural education trust is established for the purpose of generating income to benefit Indian culture.

Source: S.L. 2003, ch. 144, § 1.

15-68-02. Powers and duties of board.

The board of university and school lands may accept and administer any gift, grant, bequest, or devise of land or money, on behalf of the state, for the purposes of the Indian cultural education trust. The board may refuse to accept any gift, grant, devise, or bequest that is upon terms or circumstances unacceptable to the board. The board shall manage all land and money in the trust in the same manner that it manages its other trust land and money except as is otherwise provided in this chapter, in the donor agreement, or as may otherwise be required to satisfy the purposes of this chapter.

The board, in its sole discretion, may divest any land or money acquired under this chapter. The donor agreement which placed the land and money into the trust must provide to whom the land is to be conveyed and money disbursed in the event the board decides to divest the land or money.

Source: S.L. 2003, ch. 144, § 1.

15-68-03. Donation.

A person proposing to donate land or money for the benefit of the trust must present to the board an application and an executed donor agreement between the donor and tribal government of a federally recognized Indian tribe located in North Dakota, South Dakota, Montana, Minnesota, or Wyoming. In accepting the donor agreement, the board is not subject to the provisions of chapter 54-40.2. The board is not responsible for determining which lands have cultural resource significance or for any site preservation or maintenance measures deemed necessary by the donor or the affected tribe. The donor agreement must also make any provision deemed necessary for access to the land by Indians for educational, cultural, or religious purposes.

Source: S.L. 2003, ch. 144, § 1.

15-68-04. Trust management.

The board must be reimbursed from trust proceeds for all reasonable costs and expenses in managing land and investing trust proceeds. Such reimbursements are to be placed in the state lands maintenance fund. The net income derived from the land and money donated to the trust must be used for trust purposes, except the donor agreement may dedicate a percentage of the net income to trust principal.

The lands placed in the trust may be leased by the board only for grazing or haying purposes.

The board may maintain separate accounts in the trust if a donor agreement requires.

The donor agreement must designate the tribe entitled to receive trust proceeds. The net income from each account must be remitted annually to the designated tribe. The designated tribe is responsible for disbursements of trust proceeds. A dispute over a tribe’s use of the disbursements must be resolved by the government of the designated tribe to which the disbursement has been made.

Source: S.L. 2003, ch. 144, § 1.

15-68-05. Payments in lieu of taxation.

Net income from land and money in the trust must be used in part to pay to the county where the land is located the same amount that would have been assessed against the land for real property taxes if the land was privately owned.

Source: S.L. 2003, ch. 144, § 1.

15-68-06. Continuing appropriation.

There is appropriated annually the amounts necessary to pay expenses for lands donated under this chapter and managed by the board of university and school lands, including survey costs, surface lease refunds, weed and insect control, cleanup costs, capital improvement rent credits, in lieu of tax payments, or expenses determined by the board as necessary to manage, preserve, and enhance the value of the trust asset. Each payment must be made from the trust fund account for which the land is held.

Source: S.L. 2003, ch. 144, § 1.

15-68.1-01. American Indian language preservation committee — Membership — Meetings.

1. The American Indian language preservation committee consists of:
   1. The executive director of the Indian affairs commission, who shall serve as the chairman;
   2. The superintendent of public instruction or the superintendent’s designee;
   3. An individual employed as a faculty member at a tribal college, appointed by the governor;
   4. The director of the state historical society;
   5. The chairman of the North Dakota humanities council;
   6. The chairman of the university of North Dakota department of Indian studies or the chairman’s designee; and
   7. One individual with experience in the development of curriculum pertaining to and the teaching of American Indian languages at the elementary or high school levels, appointed by the governor.
2. The committee shall meet at least quarterly, at the call of the chairman.

Source: S.L. 2009, ch. 169, § 1.

15-68.1-02. Duties.

The committee shall:

1. Develop a process for the orderly preservation of American Indian languages spoken by the members of tribes located in this state, including:
   1. The creation or acquisition of audio recordings, picture dictionaries, and pronunciation guides;
   2. The translation of existing materials; and
   3. The acquisition, development, and dissemination of instructional materials for elementary and high school students, individuals enrolled in institutions of higher education, and other adults;
2. Pursue working relationships aimed at American Indian language preservation with public and private sector entities, including institutions of higher education, in this state and in other states and provinces; and
3. Seek the active participation of American Indians residing in this state on an individual and a tribal basis.

Source: S.L. 2009, ch. 169, § 2.

15-68.1-03. Powers — Continuing appropriation.

1. The committee may:
   1. Accept gifts, grants, and donations of money, property, and services to carry out this chapter;
   2. Expend moneys received under this section to carry out this chapter; and
   3. Contract with any person for any purpose related to this chapter.
2. Any moneys received by the committee under this section are appropriated to the committee on a continuing basis.

Source: S.L. 2009, ch. 169, § 3.

15-70-01. Definitions.

As used in this chapter:

1. “Full time” means that a student is enrolled for at least twenty-four semester hours during an academic year.
2. “Nonbeneficiary student” means a resident of North Dakota who is enrolled in a tribally controlled community college but is not an enrolled member of a federally recognized Indian tribe nor a biological child of a living or deceased member of an Indian tribe.
3. “Tribally controlled community college” means an institution of higher education in this state which is formally controlled or has been formally sanctioned or chartered by the governing body of an Indian tribe, or any combination of federally recognized Indian tribes.

Source: S.L. 2007, ch. 160, § 1; 2009, ch. 170, § 1.

15-70-02. Institutions eligible for grant assistance.

Any tribally controlled community college located in this state is eligible to receive supplemental grant assistance for nonbeneficiary students.

Source: S.L. 2007, ch. 160, § 2.

15-70-03. Grant authorization.

The state board of higher education shall make grants to tribally controlled community colleges to defray the costs of education associated with enrollment of nonbeneficiary students. Grants made pursuant to this section must go directly to the recipient institutions.

Source: S.L. 2007, ch. 160, § 3.

15-70-04. Submission of grant application — Distribution of grants.

1. In order to qualify for a grant under this chapter, a tribally controlled community college shall submit an application at the time and in the manner required by the state board of higher education. The application must:
   1. Include the name and address of each student who qualifies for financial assistance under this chapter; and
   2. Document the enrollment status of each student who qualifies for financial assistance under this chapter.
2. If an application is approved, the state board of higher education shall distribute to the tribally controlled community college, during each year of the biennium, an amount equivalent to the most recent per student payment provided in accordance with the Tribally Controlled Colleges and Universities Assistance Act of 1978 [25 U.S.C. 20] for each nonbeneficiary student who is a resident of the state. If the amount appropriated is insufficient to meet the requirements of this section, the board shall prorate the amount to be distributed. The board may distribute no more than one-half of the biennial legislative appropriation provided for grants under this section during the first year of the biennium.
3. If after meeting the requirements of this section any amount remains available for distribution at the conclusion of each year of the biennium, the state board of higher education shall provide prorated distribution based on criteria set forth in this section.
4. At the time and in the manner determined by the state board of higher education, each tribally controlled community college receiving assistance under this section shall file a report indicating:
   1. The graduation rate of nonbeneficiary students; and
   2. The ratio between the amount of funding received by the tribally controlled community college under this section and the college’s annual budget.

Source: S.L. 2007, ch. 160, § 4; 2009, ch. 170, § 2; 2011, ch. 3, § 17; 2013, ch. 34, § 18.

15-70-05. Reporting by recipient institutions — Failure to report.

Each institution receiving a grant under this chapter shall submit to the legislative council a report detailing the expenditures of the grant funds received by the institution under this chapter, a copy of the institution’s latest audit report, and documentation of the enrollment status of each student on whose account financial assistance under this chapter is sought. Any institution that fails to meet the requirements of this section is ineligible to receive future grants under this chapter until the institution submits the required information.

Source: S.L. 2007, ch. 160, § 5; 2009, ch. 170, § 3.

15-71-01. State board of higher education — Biomass energy center.

The state board of higher education is encouraged to establish or name a biomass energy center or centers at an institution or institutions under the control of the board to conduct research and provide education and technical assistance related to biomass production, harvesting, transportation, and conversion.

Source: S.L. 2007, ch. 496, § 2.

15-71-02. Biomass research responsibilities.

If established or named by the state board of higher education, the biomass energy center or centers shall:

1. Complete agronomic research to determine the most efficient perennial grasses or other plants for cellulose production and the amount of fertilization required.
2. Conduct research to determine the most efficient method of harvesting biomass.
3. Determine the benefits of biomass densification or preprocessing.
4. Complete an economic evaluation of all steps in the utilization of biomass for energy.

Source: S.L. 2007, ch. 496, § 3.

15-71-03. Ethanol and biomass incentives.

If established or named by the state board of higher education, the biomass energy center or centers shall work to identify and evaluate incentives for cellulosic ethanol production and biomass energy through the legislative assembly or at the federal level. The center or centers shall identify and evaluate incentives for producers, such as providing payment for producers to grow a dedicated bio-energy crop or support equipment, harvesting, and transportation costs.

Source: S.L. 2007, ch. 496, § 4.

15-71-04. Funding.

The biomass energy center or centers shall seek funding to continue perennial biomass production research and education.

Source: S.L. 2007, ch. 496, § 5.

15-72-01. Trust establishment.

The coal mine reclamation trust is established to reclaim coal mines at the direction of the public service commission by utilizing private assets pledged as collateral which may be used to fulfill the performance bond obligations under section 38-14.1-16 and North Dakota Administrative Code chapter 69-05.2-12. The coal mine reclamation trust may be used to fulfill the requirement of a qualified third party and the requirements of a collateral bond.

Source: S.L. 2021, ch. 135, § 1, effective May 10, 2021.

15-72-02. Powers and duties of the board — Transfer.

The board of university and school lands shall set up a coal mine reclamation trust. The coal mine reclamation trust may receive and accept assets as directed by the public service commission which are held in the public service commission’s custody under North Dakota Administrative Code section 69-05.2-12-04 as collateral in a security agreement with any person as defined in section 38-14.1-02. The commissioner of university and school lands shall consult with the public service commission in carrying out the powers and duties of administering the coal mine reclamation trust. Any expenses incurred by the board of university and school lands or the public service commission under this section must be reimbursed by the permit applicant or qualified third party.

Source: S.L. 2021, ch. 135, § 1, effective May 10, 2021.

15-72-03. Assets and custody.

1. Any person proposing to pledge assets to the public service commission’s custody under North Dakota Administrative Code chapter 69-05.2-12 shall certify to the public service commission:
   1. The trust will have first priority security interest in the pledged assets in accordance with North Dakota Administrative Code chapter 69-05.2-12.
   2. The person has authority to place the assets in custody under all applicable federal and state law.
   3. All other requirements of North Dakota Administrative Code chapter 69-05.2-12 have been satisfied.
2. Real property posted as a collateral bond by the person must:
   1. Grant the regulatory authority a first mortgage, first deed of trust, or perfected first-lien security interest in the real property with a right to sell or dispose of the real property in the event of forfeiture; and
   2. Include a schedule, submitted by the applicant, of the real property mortgaged or pledged to secure the obligations under the indemnity agreement. The schedule of the real property must allow the regulatory authority to evaluate the adequacy of the real property offered to satisfy collateral requirements. The schedule must include:
      1. A description of the property;
      2. The fair market value of the property, as determined by an independent appraisal conducted by a certified appraiser; and
      3. Proof of possession and title to the real property.

Source: S.L. 2021, ch. 135, § 1, effective May 10, 2021.

15-72-04. Trust management.

The board of university and school lands must be reimbursed from trust proceeds for all reasonable costs and expenses incurred in the management of trust assets and the investment of trust proceeds. Reimbursements to the board must be deposited in the trust fund account from which the expenses were incurred. The net income derived from the assets held in trust must be used for trust purposes. Any assets placed in the trust may be sold, leased, invested, managed, or otherwise disposed of by the board to fulfill the reclamation activities and obligations related to the performance bond. If any of the trust assets include real property, net income from the trust assets must be used in part to pay to the county where the real property is located the same amount that would have been assessed against the real property for real property taxes if the real property was privately owned. The board may maintain separate accounts in the trust if necessary. The board shall manage all assets in the trust in the same manner that the board manages the board’s other trust assets or as otherwise may be required to satisfy the purposes of this chapter.

Source: S.L. 2021, ch. 135, § 1, effective May 10, 2021.

15-72-05. Continuing appropriation for trust management.

There is appropriated annually the amounts necessary to pay expenses for assets held in trust under this chapter and managed by the board of university and school lands, including expenses for survey costs, surface lease refunds, weed and insect control, cleanup costs, capital improvement rent credits, in lieu of tax payments, or other expenses necessary to manage, preserve, and enhance the value of trust assets, as determined by the board. Payments under this section must be made from the trust fund account for which the asset is held. Upon completion of all reclamation activities and obligations, all remaining assets held by the coal mine reclamation trust must be transferred to the common schools trust fund.

Source: S.L. 2021, ch. 135, § 1, effective May 10, 2021.

TABLE OF COMPARABLE SECTIONS

Table 15 Former to Present FormerSection PresentSection 15-21-01 15.1-02-01 15-21-01.1 15.1-03-01 15-21-02 15.1-02-02 15-21-03 15.1-02-03 15-21-04 15.1-02-04 15-21-04.1 15.1-02-11 15-21-04.2 15.1-26-02 15-21-04.3 15.1-26-07 15-21-04.4 15.1-26-01 15-21-04.5 15.1-06-08 15-21-05 15.1-02-06 15-21-07 15.1-02-04 15-21-07.1 15.1-02-05 15-21-08 15.1-02-04 15-21-09 15.1-02-04 15-21-13.1 15.1-02-08 15-21-13.2 15.1-03-03 15-21-13.3 15.1-26-05 15-21-13.4 15.1-26-06 15-21-14 15.1-02-09 15-21-15 15.1-02-10 15-21-17 15.1-01-01 15-21-18 15.1-01-02 15-21-21 15.1-02-07 15-21-22 15.1-02-11 15-21.1-03 15.1-24-01 15-21.1-04 15.1-24-02 15-21.1-05 15.1-24-03 15-21.1-06 15.1-24-04 15-21.1-07 15.1-24-06 15-21.1-09 15.1-24-05 15-22-01 15.1-11-01 15-22-01.1 15.1-11-02 15-22-02 15.1-11-01 15-22-04 15.1-11-03 15-22-07 15.1-11-06 15-22-09 15.1-11-04 15-22-14 15.1-11-05 15-22-17 15.1-02-04 15-22-18 15.1-11-04 15-27.1-01 15.1-12-01 15-27.1-03 15.1-10-01 15-27.1-04 15.1-10-02 15-27.1-04 15.1-10-03 15-27.1-05 15.1-10-04 15-27.1-06 15.1-01-03 15-27.1-07 15.1-02-04 15-27.1-10 15.1-12-07 15-27.1-11 15.1-12-25 15-27.1-11 15.1-12-26 15-27.1-12 15.1-12-08 15-27.2-01 15.1-12-01 15-27.2-01 15.1-12-03 15-27.2-01 15.1-12-04 15-27.2-02 15.1-12-02 15-27.2-04 15.1-12-05 15-27.2-05 15.1-12-06 15-27.3-01.1 15.1-12-09 15-27.3-02 15.1-12-10 15-27.3-02 15.1-12-11 15-27.3-05 15.1-12-10 15-27.3-07.1 15.1-12-12 15-27.3-08 15.1-12-11 15-27.3-10 15.1-12-22 15-27.3-11 15.1-12-13 15-27.3-12 15.1-12-14 15-27.3-13 15.1-12-15 15-27.3-13.1 15.1-12-16 15-27.3-14 15.1-12-17 15-27.3-15 15.1-12-18 15-27.3-16 15.1-12-10 15-27.3-17 15.1-12-19 15-27.3-18 15.1-12-20 15-27.3-19 15.1-12-21 15-27.3-20 15.1-12-22 15-27.3-21 15.1-12-23 15-27.4-01 15.1-12-26 15-27.4-02 15.1-12-27 15-27.4-02.1 15.1-12-28 15-27.4-03 15.1-12-29 15-27.5-01 15.1-08-01 15-27.5-02 15.1-08-02 15-27.5-03 15.1-08-03 15-27.5-04 15.1-08-04 15-27.5-04 15.1-08-05 15-27.5-05 15.1-08-06 15-27.5-06 15.1-08-07 15-28-01 15.1-09-01 15-28-02 15.1-09-04 15-28-03 15.1-09-02 15-28-03 15.1-09-03 15-28-03 15.1-09-22 15-28-03 15.1-09-23 15-28-03 15.1-09-24 15-28-04 15.1-09-13 15-28-05 15.1-09-20 15-28-06 15.1-09-09 15-28-07 15.1-09-10 15-28-08 15.1-09-12 15-28-09 15.1-09-08 15-28-09 15.1-09-11 15-28-10 15.1-09-19 15-28-10 15.1-09-21 15-28-11 15.1-09-31 15-29-01 15.1-09-29 15-29-01.1 15.1-09-32 15-29-02 15.1-09-30 15-29-03 15.1-09-27 15-29-04 15.1-09-28 15-29-05 15.1-09-06 15-29-06 15.1-09-05 15-29-07 15.1-11-04 15-29-08 15.1-09-33 15-29-08 15.1-09-35 15-29-08 15.1-19-09 15-29-08.4 15.1-09-33 15-29-09 15.1-07-21 15-29-10 15.1-07-25 15-29-11 15.1-07-23 15-29-13 15.1-07-10 15-29-13 15.1-07-11 15-29-13 15.1-07-12 15-29-14 15.1-07-13 15-34.2-12 15.1-09-43 15-34.2-13 15.1-09-45 15-34.2-14 15.1-07-20 15-34.2-17 15.1-19-04 15-34.2-18 15.1-09-44 15-35-01.2 15.1-06-09 15-35-01.2 15.1-06-10 15-35-09 15.1-06-12 15-35-11 15.1-06-11 15-35-12 15.1-06-13 15-35-14 15.1-06-14 15-38-04.1 15.1-06-02 15-38-13.1 15.1-19-09 15-38-13.2 15.1-19-09 15-41-02 15.1-02-04 15-41-27 15.1-06-07 15-41.1-01 15.1-25-01 15-41.1-02 15.1-25-02 15-41.1-03 15.1-25-03 15-41.1-04 15.1-25-04 15-41.1-05 15.1-25-05 15-41.1-06 15.1-25-06 15-43-11.2 15.1-09-36 15-43-11.3 15.1-09-36 15-43-11.4 15.1-09-37 15-44-06 15.1-07-16 15-44-09 15.1-07-24 15-44-10 15.1-07-08 15-44-11 15.1-07-09 15-46-01 15.1-26-03 15-46-04 15.1-26-04 15-47-01 15.1-06-01 15-47-01.1 15.1-19-08 15-47-02.1 15.1-09-33 15-47-04 15.1-06-03 15-47-05 15.1-07-14 15-47-06 15.1-09-07 15-47-06 15.1-09-14 15-47-06 15.1-09-15 15-47-06 15.1-09-16 15-47-06 15.1-09-18 15-47-07 15.1-09-17 15-47-08 15.1-07-22 15-47-08 15.1-09-25 15-47-09 15.1-09-26 15-47-11 15.1-06-17 15-47-13 15.1-09-46 15-47-14 15.1-09-42 15-47-15 15.1-09-34 15-47-22 15.1-19-07 15-47-25 15.1-09-41 15-47-30.1 15.1-19-03 15-47-33 15.1-06-04 15-47-33.1 15.1-06-05 15-47-36 15.1-05-06 15-47-39 15.1-09-39 15-47-40.1 15.1-09-40 15-47-43 15.1-07-01 15-47-43 15.1-07-02 15-47-44.1 15.1-19-11 15-47-44.2 15.1-19-12 15-47-47 15.1-19-02 15-47-48 15.1-19-01 15-47-49 15.1-19-06 15-47-50 15.1-19-05 15-47-51 15.1-06-18 15-48-01 15.1-07-03 15-48-02 15.1-07-04 15-48-03 15.1-07-05 15-48-04 15.1-07-06 15-48-05 15.1-07-07 15-49-01 15.1-07-15 15-49-02 15.1-07-17 15-49-08 15.1-06-16 15-49-09 15.1-07-19 15-49-10.1 15.1-06-15 15-49-11 15.1-07-18 15-49-12 15.1-19-10 15-49-13 15.1-19-10 15-51-01 15.1-09-01 15-51-01 15.1-09-02 15-51-02 15.1-09-09 15-51-02 15.1-09-12 15-51-04 15.1-09-27 15-51-07 15.1-07-01 15-51-11 15.1-09-47 15-51-12 15.1-09-48 15-51-13 15.1-09-49 15-51-17 15.1-09-50 15-51-20 15.1-09-51 15-51-21 15.1-09-52 15-64-01 15.1-04-01 15-64-02 15.1-04-02 15-65-02 15.1-05-01 15-65-02 15.1-05-02 15-65-02 15.1-05-03 15-65-02 15.1-05-04 15-65-03 15.1-05-05 15-65-05 15.1-05-05 15-65-06 15.1-05-05