This bill proposes the creation of a new section in chapter 57-51.2 of the North Dakota Century Code, which addresses the withholding of oil and gas tax revenue allocations. Starting in August 2025, the state treasurer will withhold all oil and gas tax revenue allocations and deposit these funds into an escrow account at the Bank of North Dakota. The withheld revenues can only be allocated after two conditions are met: first, a new agreement must be established between a tribal governing body and the governor; and second, the tribal governing body must submit all required audit reports and responses to audit findings to the federal Bureau of Indian Affairs.

The bill aims to ensure that tribal governing bodies are compliant with audit requirements and have formal agreements with the state before receiving their allocated oil and gas tax revenues. This measure is intended to promote accountability and transparency in the management of tax revenues related to oil and gas activities on tribal lands.