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. According to the new provisions, the state treasurer is mandated to withhold all oil and gas tax revenue allocations starting in August 2025 and deposit these funds into an escrow account at the Bank of North Dakota. The withheld revenues can only be allocated after specific conditions are met: a new agreement must be established between a tribal governing body and the governor, and 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 enhance accountability and oversight regarding the distribution of tax revenues related to oil and gas activities on tribal lands.