JAMESTOWN, N.D. — The North Dakota Legislature hit “crossover” the last week of February. This first half has seen a theme of cutting the budget, and a general distaste for bills that may cut into revenue or take new appropriations. Initially, the Appropriations Committees adopted a revised revenue forecast during the first week of session. The new forecast reduced 2017-19 estimated revenues by $170 million from the last estimate that was projected in December.In March, the next revenue projection will be presented to the Legislature. The Office of Management and Budget will lay out what they believe state revenues will be like over the next biennium by studying current trends in oil markets, agricultural markets, sales and use taxes, and tourism. It is at this point the Legislature will get a better handle on whether they are budgeting well or must continue to cut further.
Included in this report is a snapshot of the bills the NDFU Legislative team is tracking, as it relates to the organization’s priorities for the session. Keep up to date on the latest news by signing up for NDFU’s newsletter at ndfu.org. Direct any questions to
ndfulegis@ndfu.org.
AGRICULTURE
Originally, HB 1126 made significant changes to the way the Public Service Commission dealt with grain insolvencies in North Dakota. The bill removed the Commission’s regulatory duty, changed the grain insolvency process and decreased the number of grain inspectors. The House adopted amendments relating to elevators not needing to notify the PSC if they are closing or reopening, clarified the PSC no longer pays interest on claims and that the commission may use electronic communication. The rest of the bill was removed. The committee gave the bill a “do pass” recommendation.
The budget for the North Dakota State University Extension Service, Northern Crops Institute, Upper Great Plains Transportation Institute, main research center, branch research centers and agronomy seed farm is SB 2020. The budget for agricultural research in North Dakota has been slashed dramatically, and as a result, the Extension Service is currently in a hiring freeze and analyzing what programs or positions could be eliminated. Former Governor Jack Dalrymple’s proposed budget introduced a 10 percent cut in funds, which equates to about $3 million of the Service’s budget. Approximately 80 percent of its budget goes to employees. Following budget recommendations set forth by Governor Burgum, the committee cut the budget over 13 percent. This percent equates to about one-eighth of Extension’s total budget. The final budget has not been voted on in committee at press time.
SB 2289 addresses such issues as mandatory equipment and parts purchases, payment chargebacks, unfair performance requirements and dealership terminations. The bill was re-referred to the Senate Agriculture Committee to be worked this week, and amended to further define “agricultural equipment.” The bill then received a “do pass” recommendation. It has not received a final vote.
HB 1240 adds an industrial hemp applicant fee of $250 and increases the per acre fee from $5 to $40 to grow hemp in North Dakota. The Ag Department says that this cost is due to expenditures to oversee industrial hemp growing and harvest seasons and processing. Expenditures will be primarily for laboratory testing, travel, supplies, printing and postage.
Many hemp producers attended the hearing and opposed the bill due to the significantly increased fees and urged the state to look at loosening up program rules. The bill was eventually amended to include a $150 applicant fee and a per acre fee of $25 per acre. The bill passed committee and received a unanimous vote to pass the House.
RURAL QUALITY OF LIFE
HB 1012, the Human Services budget bill, includes the continuation of Medicaid Expansion. Currently almost 20,000 North Dakotans receive health insurance through Medicaid Expansion. Additionally, it has an economic impact of over $540 million that goes toward employing individuals in local community healthcare facilities. Continuing Medicaid Expansion ensures that North Dakota receives its 95 percent federal funding match to assist in the expense of covering these vulnerable individuals age 18-64, with incomes under 138 percent of the federal poverty level. Without continued expansion, some facilities could face closure, all North Dakotans will see higher insurance premiums, and individuals would certainly see more wait times and less affordable access to healthcare. The bill has not been voted out of committee.
The Department of Transportation budget is housed in SB 2012. The amended budget has a $66.4 million reduction – a 22-percent decrease in operating expenses from the $295.8 million budget. The budget includes the closing of eight maintenance shops: Starkweather, Finley, Fessenden, Gackle, Litchville, New England, Courtenay and Mayville. Lawmakers tried to attach an amendment to require the DOT to keep the shops through mid-2019, but that amendment ultimately failed. The bill has not been voted out of committee.
SB 2206 is the county social service funding bill that will transfer the cost of county social services to the State of North Dakota. The bill provides relief for the existing 12 percent property tax buy-down and removes those county mills which delivers permanent property tax reform. Governor Burgum also included this policy priority in his budget as the mechanism to deliver property tax relief. The bill has been given a “do pass” recommendation and has been referred to the Appropriations Committee.
SB 2272 and HB 1324 are the bills that house education funding. While school funding isn’t expected to decrease, the bills will be the last few through appropriations. The ultimate dollar amount will hinge on the March revenue forecast. That said, it’s important to watch appropriations for transportation grants, as it has been targeted for a 10 percent cuts.
LANDOWNER RIGHTS
HB 2225 repeals current law on the posting of land and creates the assumption that “all private land is considered posted.” North Dakota Farmers Union testified on this bill, citing that “our members have had longstanding policy in support of landowner rights, and that all land should be considered posted.” The bill has not been voted out of committee.
The Senate Energy and Natural Resources Committee listened to farmers and ranchers talk about the need for the Pipeline Restoration and Reclamation Oversight Program, SB 2236. NDFU testified in favor of the program. The committee immediately gave the bill a unanimous “do pass” recommendation after the hearing. The bill has not been voted on in the Senate.
OTHER IMPORTANT BILLS
SB 2336 states that “any person or measure committee that is soliciting or accepting a contribution for the purpose of aiding or opposing the circulation or passage of a statewide initiative or referendum petition or measure placed upon a statewide ballot by action of the legislative assembly at any election shall file a statement with the secretary of state on the first business day of each week.” It also restricts how much money a sponsoring committee can fundraise from one entity. SB 2336 was taken to the Senate floor on Monday where it failed to pass.
SB 2135 creates an initiated and referred measure study commission and would be tasked with studying the state’s initiated and referred measure process. The committee includes individuals appointed from the North Dakota Supreme Court, the Legislature, the governor’s office, the Indian Affairs Commission, North Dakota Farmers Union, North Dakota Farm Bureau, Greater North Dakota Chamber, North Dakota Newspaper Association and North Dakota United. Finally, the committee would report its findings to the Legislative Management Committee. The bill received a “do pass” recommendation, but has not been voted on by the full Senate.
SCR 4009 is a concurrent resolution requesting the Legislative Management to consider studying the formation of an independent, nonpartisan redistricting commission for the decennial redrawing of legislative district boundaries in North Dakota. The resolution received a “do not pass” recommendation and ultimately failed to be adopted.
— Kayla Pulvermacher, NDFU
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