19.0406.01000
Sixty-sixth
Legislative Assembly SENATE BILL NO. 2055
of North Dakota
Introduced by
Senator Wardner
Representative Pollert
1 A BILL for an Act to create and enact a new section to chapter 54-35 of the North Dakota
2 Century Code, relating to the establishment of the budget section; to amend and reenact
3 sections 15-03-04, 15-10-12.1, 20.1-02-05.1, 20.1-02-16.1, 25-04-02.2, 37-17.1-27, 40-23-22.1,
4 47-30.1-24.1, 48-01.2-25, subsection 16 of section 50-06-05.1, subsection 18 of section
5 50-06-05.1, and sections 54-06-37, 54-27-22, 54-27-23, 54-44.1-13.1, 54-59-05, and
6 65-08.1-02 of the North Dakota Century Code, relating to agency requests for budget section
7 approval; and to repeal section 1 of chapter 67 of the 2013 Session Laws and section 10 of
8 chapter 19 of the 2017 Session Laws, relating to the authority of the state board of agricultural
9 research and education to sell certain real property and the authority of the state water
10 commission to provide payment for western area water supply loans.
11 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
12 SECTION 1. AMENDMENT. Section 15-03-04 of the North Dakota Century Code is
13 amended and reenacted as follows:
14 15-03-04. Legal investments.
15 Subject to the provisions of section 15-03-05, the board of university and school lands shall
16 apply the prudent investor rule in investing the permanent funds under its control. The "prudent
17 investor rule" means that in making investments the board shall exercise the same judgment
18 and care, under the circumstances then prevailing and limitations of North Dakota and federal
19 law, that an institutional investor of ordinary prudence, discretion, and intelligence exercises in
20 the management of large investments entrusted to it, not in regard to speculation but in regard
21 to the permanent disposition of funds, considering probable safety of capital as well as probable
22 investment returns. Notwithstanding any investments made before July 1, 1997, the board may
23 not use any funds entrusted to it to purchase, as sole owner, commercial or residential real
24 property in North Dakota without prior approval of the legislative assembly or the budget section
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1 of the legislative managementif the legislative assembly is not in session. Any request
2 considered by the budget section must comply with section 15 of this Act. The board may also
3 lend securities held by the permanent funds, including the authority to pledge a security interest
4 in the securities in the possession of a custodian agent. These securities must be collateralized
5 as directed by the board.
6 SECTION 2. AMENDMENT. Section 15-10-12.1 of the North Dakota Century Code is
7 amended and reenacted as follows:
8 15-10-12.1. Acceptance of buildings and campus improvements - Legislative
9 approval.
10 The state board of higher education may authorize campus improvements and building
11 maintenance on land under the control of the board which are financed by donations, gifts,
12 grants, and bequests if the cost of the improvement or building maintenance is not more than
13 seven hundred thousand dollars. The consent of the legislative assembly is required for
14 construction of any building or any addition to a building on land under the control of the board
15 which is financed by donations, gifts, grants, and bequests. The consent of the legislative
16 assembly is required for campus improvements or building maintenance financed by donations,
17 gifts, grants, and bequests if the cost of the improvements or maintenance is more than seven
18 hundred thousand dollars. During the time the legislative assembly is not in session, except for
19 the six months preceding the convening of a regular session and the three months following the
20 close of a regular session, and unless otherwise restricted by previous legislative action or other
21 law, the state board of higher education, with the approval of the budget section of the
22 legislative management, may authorize campus improvements and building maintenance
23 financed by donations, gifts, grants, and bequests if the cost of the improvement or
24 maintenance is more than seven hundred thousand dollars. The budget section approval must
25 comply section 15 of this Act and must include a specific dollar limit for each campus
26 improvement project or maintenance project. The state board of higher education may authorize
27 the sale of any real property or buildings which an institution of higher learning has received by
28 gift or bequest. The board shall prescribe such conditions for the sale of the property as it
29 determines necessary. The conditions must include requiring an appraisal and public auction or
30 advertisement for bids, unless the gift instrument requires a different process. If the state board
31 of higher education submits a request for campus improvements or building maintenance under
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1 this section to the budget section for approval, the legislative council shall notify each member
2 of the legislative assembly of the date of the budget section meeting at which the request will be
3 considered and provide a copy of the meeting agenda to each member of the legislative
4 assembly. The chairman of the budget section shall allow any member of the legislative
5 assembly an opportunity to present testimony to the budget section regarding any such request.
6 SECTION 3. AMENDMENT. Section 20.1-02-05.1 of the North Dakota Century Code is
7 amended and reenacted as follows:
8 20.1-02-05.1. Land acquisitions - Statewide land acquisition plan.
9 1. The director shall establish a comprehensive statewide land acquisition plan that must
10 be approved, subject to approval by the legislative assembly or the budget section of
11 the legislative managementif the legislative assembly is not in session. Every land
12 acquisition made by the department exceeding ten acres [4.05 hectares] or ten
13 thousand dollars must be approved by the legislative assembly or the budget section if
14 the legislative assembly is not in session. Any request considered by the budget
15 section must comply with section 15 of this Act.
16 2. Before a land acquisition, the department shall have the land in question appraised by
17 a certified appraiser. The department may not acquire any land for an amount that
18 exceeds the appraised value except for parcels or tracts of land less than forty acres
19 [16.19 hectares] which may be acquired for up to two hundred percent of the
20 appraised value.
21 3. Before the appraisal, the director shall give notice of the intent to purchase to every
22 landowner within one mile [1.16 kilometers] of the boundary of the land to be
23 appraised unless the landowner is within the boundary of a city, then the director shall
24 send notice to the governing body of the city or unless the landowner is within the
25 geographical boundary of a rural subdivision where the lots are ten acres [4.04
26 hectares] or less, then the director shall send notice to the governing body of the
27 township or other governing authority for the rural subdivision. The director shall send
28 notice to the board of county commissioners in the county of the land to be appraised,
29 the board of township supervisors if the land to be appraised is in an organized
30 township, and the governing body of a city within twelve miles [19.32 kilometers] of the
31 boundary of the land to be appraised. The director shall publish notice in the official
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1 newspaper of the county of the land to be appraised, once a week for two consecutive
2 weeks. The notice must contain the amount of acreage, the legal description, and the
3 fact that the department intends to purchase the land.
4 SECTION 4. AMENDMENT. Section 20.1-02-16.1 of the North Dakota Century Code is
5 amended and reenacted as follows:
6 20.1-02-16.1. Game and fish fund - Use - Required balance - Budget section approval.
7 All income of the state game and fish department deposited by the director with the state
8 treasurer must be credited to the state game and fish fund and the fund may be used only by
9 the department. All money derived from the investment of the fund, special accounts, or
10 portions of the fund must be credited to the game and fish department private land habitat and
11 access improvement fund. The department shall spend moneys in the game and fish fund within
12 the limits of legislative appropriations, only to the extent the balance of the fund is not reduced
13 below fifteen million dollars, unless otherwise authorized by the legislative assembly or the
14 budget section if the legislative assembly is not in session. Any request considered by the
15 budget section must comply with section 15 of this Act.
16 SECTION 5. AMENDMENT. Section 25-04-02.2 of the North Dakota Century Code is
17 amended and reenacted as follows:
18 25-04-02.2. Institutional sale of services - Budget section approval.
19 Subject to approval of the legislative assembly or the budget section of the legislative
20 managementif the legislative assembly is not in session, the life skills and transition center may
21 provide any service not otherwise authorized by law under contract with a governmental or
22 nongovernmental person. The life skills and transition center shall determine the rates for
23 services provided. The legislative assembly or the budget section may approve the provision of
24 a service under this section only after determining that the service is not otherwise being
25 provided by either the private or public sector. Any request considered by the budget section
26 must comply with section 15 of this Act.
27 SECTION 6. AMENDMENT. Section 37-17.1-27 of the North Dakota Century Code is
28 amended and reenacted as follows:
29 37-17.1-27. State disaster relief fund - Creation - Uses.
30 There is created in the state treasury a state disaster relief fund. Moneys in the fund are to
31 be used subject to legislative appropriations and emergency commission and budget section
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1 approval for providing the required state share of funding for expenses associated with
2 presidential-declared disasters in the state and for the purposes of reimbursing costs under
3 section 37-17.1-28. Any interest or other fund earnings must be deposited in the fund. Before
4 any expenditure is made from the fund, the agency authorized to make the expenditure shall
5 provide information on the purpose and payee of the expenditure to the appropriation
6 committees of the house of representatives and senate or to the budget section if the legislative
7 assembly is not in session.
8 SECTION 7. AMENDMENT. Section 40-23-22.1 of the North Dakota Century Code is
9 amended and reenacted as follows:
10 40-23-22.1. City flood control special assessment exemption for state property -
11 Limitations.
12 1. Notwithstanding any other provision of law, property of the state in a city subject to this
13 section is exempt from special assessments levied for flood control purposes. Upon
14 request by the governing body of the city, the exemption under this section may be
15 completely or partially waived by majority vote of the legislative assembly or the
16 budget section of the legislative managementif the legislative assembly is not in
17 session. Any request considered by the budget section must comply with section 15 of
18 this Act. A city is subject to the exemption under this section in recognition of state
19 financial assistance for flood control provided to the city pursuant to section
20 61-02.1-01 or other appropriation or commitment of state funds.
21 2. The exemption under this section does not apply to any privately owned structure,
22 fixture, or improvement located on state-owned land if the structure, fixture, or
23 improvement is used for commercial purposes unless the structure, fixture, or
24 improvement is primarily used for athletic or educational purposes at a state institution
25 of higher education. An assessment allowed under this subsection must be based on
26 the square footage or front footage of the land occupied by the structure, fixture, or
27 improvement and made against the structure, fixture, or improvement and not against
28 the land on which it is located.
29 SECTION 8. AMENDMENT. Section 47-30.1-24.1 of the North Dakota Century Code is
30 amended and reenacted as follows:
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1 47-30.1-24.1. Claims by state agencies - Budget section approval and report.
2 Within one year of receipt of state agency property, the administrator shall notify the agency
3 by certified mail. The commissioner of university and school lands shall present a report to the
4 budget section of the legislative management identifying every state agency that has not
5 submitted a claim for property belonging to that agency within one year of the receipt of the date
6 of the certified mail receipt. Upon approval of the budget section of the legislative management,
7 the agency relinquishes its right to recover its property. Any request considered by the budget
8 section must comply with section 15 of this Act.
9 SECTION 9. AMENDMENT. Section 48-01.2-25 of the North Dakota Century Code is
10 amended and reenacted as follows:
11 48-01.2-25. Authorization of expansion of public improvements by legislative
12 assembly or budget section.
13 Notwithstanding any other provision of law, a state agency or institution may not
14 significantly change or expand a public improvement beyond what has been approved by the
15 legislative assembly unless the legislative assembly approves the change or expansion of the
16 project or any additional expenditure for the project. During the time the legislative assembly is
17 not in session, and unless otherwise restricted by previous legislative action or other law, the
18 budget section of the legislative management may approve a change or expansion or any
19 additional expenditure for the project. However, the budget section of the legislative
20 management may not approve a change, expansion, or additional expenditure for the project
21 during the six months preceding the convening of a regular session or during the three months
22 following the close of a regular session except for changes in project scope and related
23 additional expenditures resulting from an unforeseen emergency event. Any request considered
24 by the budget section must comply with section 15 of this Act. For the purposes of this section,
25 a significant change or expansion includes the construction of an addition to a building,
26 including skywalks or other type of enclosed walkway, or any other substantial increase in the
27 area of the building, but does not include the construction of building entrances and stairwells.
28 SECTION 10. AMENDMENT. Subsection 16 of section 50-06-05.1 of the North Dakota
29 Century Code is amended and reenacted as follows:
30 16. To act as the official agency of the state in the administration of the supplemental
31 nutrition assistance program and to direct and supervise county administration of that
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1 program. Provided, however, that theThe department with the consent of the
2 legislative assembly or the budget section of the legislative managementif the
3 legislative assembly is not in session may terminate the program if the rate of federal
4 financial participation in administrative costs provided under Public Law 93-347 is
5 decreased or limited, or if the state or counties become financially responsible for all or
6 a portion of the coupon bonus payments under the Food Stamp Act. Any request
7 considered by the budget section must comply with section 15 of this Act. The
8 department may not deny assistance under the supplemental nutrition assistance
9 program to any individual who has been convicted of a felony offense that has as an
10 element the possession, use, or distribution of a controlled substance as defined in
11 section 102(6) of the Controlled Substances Act [21 U.S.C. 802(6)].
12 SECTION 11. AMENDMENT. Subsection 18 of section 50-06-05.1 of the North Dakota
13 Century Code is amended and reenacted as follows:
14 18. To act as the official agency of the state in the administration of the home energy
15 assistance program; to direct and supervise county administration of that program;
16 and to take such actions, give such directions, and adopt such rules, subject to review
17 in the courts of this state, as may be necessary or desirable to carry out this
18 subsection. For purposes of the administration of the energy assistance program,
19 funds are obligated at the earlier of the time a written commitment is made to pay a
20 vendor or