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Sixty-ninth Legislative Assembly of North Dakota In Regular Session Commencing Tuesday, January 7, 2025 HOUSE BILL NO. 1369 (Representatives Heinert, Richter) (Senators Lemm, Schaible) AN ACT to amend and reenact sections 15.1-27-04.1, 15.1-32-19, 15.1-36-02, 48-01.2-02.1, 48-01.2-10, and 57-15-14.2 of the North Dakota Century Code, and section 15.1-36-08 as amended by section 1 of Senate Bill No. 2149, as approved by the sixty-ninth legislative assembly, relating to the determination of state aid, boarding care costs, the coal development trust fund, the school construction assistance revolving loan fund, public improvement construction, bonds from contractors for public improvements, and school district levies; and to provide an effective date. BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA: SECTION 1. AMENDMENT. Section 15.1-27-04.1 of the North Dakota Century Code is amended and reenacted as follows: 15.1-27-04.1. Baseline funding - Establishment - Determination of state aid. (Effective through June 30, 2025) (Retroactive application - See note) 1. To determine the amount of state aid payable to each district, the superintendent of public instruction shall establish each district's baseline funding. A district's baseline funding consists of: a. All state aid received by the district in accordance with chapter 15.1-27 during the 2018-19 school year; b. An amount equal to the property tax deducted by the superintendent of public instruction to determine the 2018-19 state aid payment; c. An amount equal to seventy-five percent of the revenue received by the school district during the 2017-18 school year for the following revenue types: (1) Revenue reported under code 2000 of the North Dakota school district financial accounting and reporting manual, as developed by the superintendent of public instruction in accordance with section 15.1-02-08; (2) Mineral revenue received by the school district through direct allocation from the state treasurer and not reported under code 2000 of the North Dakota school district financial accounting and reporting manual, as developed by the superintendent of public instruction in accordance with section 15.1-02-08; (3) Tuition reported under code 1300 of the North Dakota school district financial accounting and reporting manual, as developed by the superintendent of public instruction in accordance with section 15.1-02-08, with the exception of revenue received specifically for the operation of an educational program provided at a residential treatment facility, tuition received for the provision of an adult farm management program, and beginning in the 2021-22 school year, seventeen percent of tuition received under an agreement to educate students from a school district on an air force base with funding received through federal impact aid, and an additional seventeen percent of tuition received under an agreement to educate students from a school district on an air force base with funding received through federal impact aid each school year thereafter, until the 2024-25 school year when sixty-eight percent of tuition received under an agreement to educate students from H. B. NO. 1369 - PAGE 2 a school district on an air force base with funding received through federal impact aid must be excluded from the tuition calculation under this paragraph; (4) Revenue from payments in lieu of taxes on the distribution and transmission of electric power; (5) Revenue from payments in lieu of taxes on electricity generated from sources other than coal; and (6) Revenue from the leasing of land acquired by the United States for which compensation is allocated to the state under 33 U.S.C. 701(c)(3); d. An amount equal to the total revenue received by the school district during the 2017-18 school year for the following revenue types: (1) Mobile home tax revenue; (2) Telecommunications tax revenue; and (3) Revenue from payments in lieu of taxes and state reimbursement of the homestead credit and disabled veterans credit; and e. Beginning with the 2020-21 school year, the superintendent shall reduce the baseline funding for any school district that becomes an elementary district pursuant to section 15.1-07-27 after the 2012-13 school year. The reduction must be proportional to the number of weighted student units in the grades that are offered through another school district relative to the total number of weighted student units the school district offered in the year before the school district became an elementary district. The reduced baseline funding applies to the calculation of state aid for the first school year in which the school district becomes an elementary district and for each year thereafter. For districts that become an elementary district prior to the 2020-21 school year, the superintendent shall use the reduced baseline funding to calculate state aid for the 2020-21 school year and for each year thereafter. 2. a. The superintendent shall divide the district's baseline funding determined in subsection 1 by the district's 2017-18 weighted student units to determine the district's baseline funding per weighted student unit. b. For any school district that becomes an elementary district pursuant to section 15.1-07-27 after the 2017-18 school year, the superintendent shall adjust the district's baseline funding per weighted student unit used to calculate state aid. The superintendent shall divide the district's baseline funding determined in subsection 1 by the district's weighted student units after the school district becomes an elementary district to determine the district's adjusted baseline funding per weighted student unit. The superintendent shall use the district's adjusted baseline funding per weighted student unit in the calculation of state aid for the first school year in which the school district becomes an elementary district and for each year thereafter. c. Beginning with the 2021-22 school year and for each school year thereafter, the superintendent shall reduce the district's baseline funding per weighted student unit. Each year the superintendent shall calculate the amount by which the district's baseline funding per weighted student unit exceeds the payment per weighted student unit provided in subsection 3. For the 2023-24 school year the superintendent shall reduce the district's baseline funding per weighted student unit by forty percent of the amount by which the district's baseline funding per weighted student unit exceeds the payment per weighted student unit for the 2023-24 school year. For each year thereafter, the reduction percentage is increased by an additional fifteen percent. However, the district's baseline H. B. NO. 1369 - PAGE 3 funding per weighted student unit, after the reduction, may not be less than the payment per weighted student unit provided in subsection 3. 3. a. For the 2023-24 school year, the superintendent shall calculate state aid as the greater of: (1) The district's weighted student units multiplied by ten thousand six hundred forty-six dollars; (2) One hundred two percent of the district's baseline funding per weighted student unit, as established in subsection 2, multiplied by the district's weighted student units, not to exceed the district's 2017-18 baseline weighted student units, plus any weighted student units in excess of the 2017-18 baseline weighted student units multiplied by ten thousand six hundred forty-six dollars; or (3) The district's baseline funding as established in subsection 1 less the amount in paragraph 1, with the difference reduced by forty percent and then the difference added to the amount determined in paragraph 1. b. For the 2024-25 school year and each school year thereafter, the superintendent shall calculate state aid as the greater of: (1) The district's weighted student units multiplied by eleven thousand seventy-two dollars; (2) One hundred two percent of the district's baseline funding per weighted student unit, as established in subsection 2, multiplied by the district's weighted student units, not to exceed the district's 2017-18 baseline weighted student units, plus any weighted student units in excess of the 2017-18 baseline weighted student units multiplied by eleven thousand seventy-two dollars; or (3) The district's baseline funding as established in subsection 1 less the amount in paragraph 1, with the difference reduced by fifty-five percent for the 2024-25 school year and the reduction percentage increasing by fifteen percent each school year thereafter until the difference is reduced to zero, and then the difference added to the amount determined in paragraph 1. 4. After determining the product in accordance with subsection 3, the superintendent of public instruction shall: a. Subtract an amount equal to sixty mills multiplied by the taxable valuation of the school district, except the amount in dollars subtracted for purposes of this subdivision may not exceed the previous year's amount in dollars subtracted for purposes of this subdivision by more than twelve percent, adjusted pursuant to section 15.1-27-04.3; and b. Subtract an amount equal to seventy-five percent of all revenue types listed in subdivisions c and d of subsection 1. Before determining the deduction for seventy-five percent of all revenue types, the superintendent of public instruction shall adjust revenues as follows: (1) Tuition revenue shall be adjusted as follows: (a) In addition to deducting tuition revenue received specifically for the operation of an educational program provided at a residential treatment facility, tuition revenue received for the provision of an adult farm management program, tuition received for the education of high-cost and special education students, and tuition received under an agreement to educate students from a school district on an air force base with funding received through federal impact aid H. B. NO. 1369 - PAGE 4 as directed each school year in paragraph 3 of subdivision c of subsection 1, the superintendent of public instruction also shall reduce the total tuition reported by the school district by the amount of tuition revenue received for the education of students not residing in the state and for which the state has not entered a cross-border education contract; and (b) The superintendent of public instruction also shall reduce the total tuition reported by admitting school districts meeting the requirements of subdivision e of subsection 2 of section 15.1-29-12 by the amount of tuition revenue received for the education of students residing in an adjacent school district. (2) After adjusting tuition revenue as provided in paragraph 1, the superintendent shall reduce all remaining revenues from all revenue types by the percentage of mills levied in 2022 by the school district for sinking and interest relative to the total mills levied in 2022 by the school district for all purposes. 5. The amount remaining after the computation required under subsection 4 is the amount of state aid to which a school district is entitled, subject to any other statutory requirements or limitations. 6. On or before June thirtieth of each year, the school board shall certify to the superintendent of public instruction the final average daily membership for the current school year. 7. For purposes of the calculation in subsection 4, each county auditor, in collaboration with the school districts, shall report the following to the superintendent of public instruction on an annual basis: a. The amount of revenue received by each school district in the county during the previous school year for each type of revenue identified in subdivisions c and d of subsection 1; b. The total number of mills levied in the previous calendar year by each school district for all purposes; and c. The number of mills levied in the previous calendar year by each school district for sinking and interest fund purposes. Baseline funding - Establishment - Determination of state aid. (Effective after June 30, 2025) 1. To determine the amount of state aid payable to each district, the superintendent of public instruction shall establish each district's baseline funding. A district's baseline funding consists of: a. All state aid received by the district in accordance with chapter 15.1-27 during the 2018-19 school year; b. An amount equal to the property tax deducted by the superintendent of public instruction to determine the 2018-19 state aid payment; c. An amount equal to seventy-five percent of the revenue received by the school district during the 2017-18 school year for the following revenue types: (1) Revenue reported under code 2000 of the North Dakota school district financial accounting and reporting manual, as developed by the superintendent of public instruction in accordance with section 15.1-02-08; (2) Mineral revenue received by the school district through direct allocation from the state treasurer and not reported under code 2000 of the North Dakota school district H. B. NO. 1369 - PAGE 5 financial accounting and reporting manual, as developed by the superintendent of public instruction in accordance with section 15.1-02-08; (3) Tuition reported under code 1300 of the North Dakota school district financial accounting and reporting manual, as developed by the superintendent of public instruction in accordance with section 15.1-02-08, with the exception of revenue received specifically for the operation of an educational program provided at a residential treatment facility, tuition received for the provision of an adult farm management program, and beginning in the 2025-26 school year, eighty-five percent of tuition received under an agreement to educate students from a school district on an air force base with funding received through federal impact aid, until the 2026-27 school year, and each school year thereafter, when all tuition received under an agreement to educate students from a school district on an air force base with funding received through federal impact aid must be excluded from the tuition calculation under this paragraph; (4) Revenue from payments in lieu of taxes on the distribution and transmission of electric power; (5) Revenue from payments in lieu of taxes on electricity generated from sources other than coal; and (6) Revenue from the leasing of land acquired by the United States for which compensation is allocated to the state under 33 U.S.C. 701(c)(3); and d. An amount equal to the total revenue received by the school district during the 2017-18 school year for the following revenue types: (1) Mobile home tax revenue; (2) Telecommunications tax revenue; and (3) Revenue from payments in lieu of taxes and state reimbursement of the homestead credit and disabled veterans credit.; and e. Beginning with the 2020-21 school year, the superintendent shall reduce the baseline funding for any school district that becomes an elementary district pursuant to section 15.1-07-27 after the 2012-13 school year. The reduction must be proportional to the number of weighted student units in the grades that are offered through another school district relative to the total number of weighted student units the school district offered in the year before the school district became an elementary district. The reduced baseline funding applies to the calculation of state aid for the first school year in which the school district becomes an elementary district and for each year thereafter. For districts that become an elementary district prior to the 2020-21 school year, the superintendent shall use the reduced baseline funding to calculate state aid for the 2020-21 school year and for each year thereafter. 2. a. The superintendent shall divide the district's baseline funding determined in subsection 1 by the district's 2017-18 weighted student units to determine the district's baseline funding per weighted student unit. b. For any school district that becomes an elementary district pursuant to section 15.1-07-27 after the 2017-18 school year, the superintendent shall adjust the district's baseline funding per weighted student unit used to calculate state aid. The superintendent shall divide the district's baseline funding determined in subsection 1 by the district's weighted student units after the school district becomes an elementary district to determine the district's adjusted baseline funding per weighted student unit. The superintendent shall use the district's adjusted baseline funding per weighted H. B. NO. 1369 - PAGE 6 student unit in the calculation of state aid for the first school year in which the school district becomes an elementary district and for each year thereafter. c. Beginning with the 2021-22 school year and for each school year thereafter, the superintendent shall reduce the district's baseline funding per weighted student unit. Each year the superintendent shall calculate the amount by which the district's baseline funding per weighted student unit exceeds the payment per weighted student unit provided in subsection 3. For the 2023-24 school year the superintendent shall reduce the district's baseline funding per weighted student unit by forty percent of the amount by which the district's baseline funding per weighted student unit exceeds the payment per weighted student unit for the 2023-24 school year. For each year thereafter, the reduction percentage is increased by an additional fifteen percent. However, the district's baseline funding per weighted student unit, after the reduction, may not be less than the payment per weighted student unit provided in subsection 3. 3. a. For the 2023-242025-26 school year, the superintendent shall calculate state aid as the greater of: (1) The district's weighted student units multiplied by ten thousand six hundred forty-sixeleven thousand three hundred forty-nine dollars; (2) One hundred two percent of the district's baseline funding per weighted student unit, as established in subsection 2, multiplied by the district's weighted student units, not to exceed the district's 2017-18 baseline weighted student units, plus any weighted student units in excess of the 2017-18 baseline weighted student units multiplied by ten thousand six hundred forty-sixeleven thousand three hundred forty-nine dollars; or (3) The district's baseline funding as established in subsection 1 less the amount in paragraph 1, with the difference reduced by fortyseventy percent and then the difference added to the amount determined in paragraph 1. b. For the 2024-252026-27 school year and each school year thereafter, the superintendent shall calculate state aid as the greater of: (1) The district's weighted student units multiplied by eleven thousand seventy-twosix hundred thirty-three dollars; (2) One hundred two percent of the district's baseline funding per weighted student unit, as established in subsection 2, multiplied by the district's weighted student units, not to exceed the district's 2017-18 baseline weighted student units, plus any weighted student units in excess of the 2017-18 baseline weighted student units multiplied by eleven thousand seventy-twosix hundred thirty-three dollars; or (3) The district's baseline funding as established in subsection 1 less the amount in paragraph 1, with the difference reduced by fifty-fiveeighty-five percent for the 2024-252026-27 school year and the reduction percentage increasing by fifteen percent each school year thereafter until the difference is reduced to zero, and then the difference added to the amount determined in paragraph 1. 4. After determining the product in accordance with subsection 3, the superintendent of public instruction shall: a. Subtract an amount equal to sixty mills multiplied by the taxable valuation of the school district; and b. Subtract an amount equal to seventy-five percent of all revenue types listed in subdivisions c and dsubdivision c and paragraphs 1 and 2 of subdivision d of H. B. NO. 1369 - PAGE 7 subsection 1 and revenue from payments in lieu of taxes. Before determining the deduction for seventy-five percent of all revenue types, the superintendent of public instruction shall adjust revenues as follows: (1) Tuition revenue shall be adjusted as follows: (a) In addition to deducting tuition revenue received specifically for the operation of an educational program provided at a residential treatment facility, tuition revenue received for the provision of an adult farm management program, tuition received for the education of high-cost and special education students, and tuition received under an agreement to educate students from a school district on an air force base with funding received through federal impact aid as directed each school year in paragraph 3 of subdivision c of subsection 1, the superintendent of public instruction also shall reduce the total tuition reported by the school district by the amount of tuition revenue received for the education of students not residing in the state and for which the state has not entered a cross-border education contract; and (b) The superintendent of public instruction also shall reduce the total tuition reported by admitting school districts meeting the requirements of subdivision e of subsection 2 of section 15.1-29-12 by the amount of tuition revenue received for the education of students residing in an adjacent school district. (2) After adjusting tuition revenue as provided in paragraph 1, the superintendent shall reduce all remaining revenues from all revenue types by the percentage of mills levied in 20222024 by the school district for sinking and interest relative to the total mills levied in 20222024 by the school district for all purposes. 5. The amount remaining after the computation required under subsection 4 is the amount of state aid to which a school district is entitled, subject to any other statutory requirements or limitations. 6. On or before June thirtieth of each year, the school board shall certify to the superintendent of public instruction the final average daily membership for the current school year. 7. For purposes of the calculation in subsection 4, each county auditor, in collaboration with the school districts, shall report the following to the superintendent of public instruction on an annual basis: a. The amount of revenue received by each school district in the county during the previous school year for each type of revenue identified in subdivisions c and d of subsection 1; b. The total number of mills levied in the previous calendar year by each school district for all purposes; and c. The number of mills levied in the previous calendar year by each school district for sinking and interest fund purposes. SECTION 2. AMENDMENT. Section 15.1-32-19 of the North Dakota Century Code is amended and reenacted as follows: 15.1-32-19. Boarding care costs - Reimbursement of school district. The superintendent of public instruction shall reimburse a student's school district of residence an amount equal to eighty percent of the room and board costs paid by the district for a student with disabilities who is placed in a facility that is located either within or outside of the student's school district of residence in order to receive special education services. The student's school district of H. B. NO. 1369 - PAGE 8 residence is liable for any room and board costs in excess of those reimbursed as provided in this section. The placement of a student with disabilities in a public or private facility will be made by a school district and approved by the superintendent of public instruction. The placementsuperintendent of a student with disabilities in congregate care will be made in a facility designated bypublic instruction may consult with the commissioner of the department of health and human services on congregate care facilities. SECTION 3. AMENDMENT. Section 15.1-36-02 of the North Dakota Century Code is amended and reenacted as follows: 15.1-36-02. Coal development trust fund - Board of university and school lands - School construction projects - Unanticipated construction projects and emergency repairs - Loans. 1. Up to sixty million dollars from the coal development trust fund is available to the board of university and school lands for loans under this section. 2. To be eligible for a loan under this section, the school district must demonstrate a need based on an unanticipated construction project, an unanticipated replacement project, an emergency repair, or a legislatively defined condition, and the board of a school district shall: a. Obtain the approval of the superintendent of public instruction for the construction project under section 15.1-36-01; and b. Submit to the superintendent of public instruction an application containing all information deemed necessary by the superintendent, including potential alternative sources or methods of financing the construction project. 3. The superintendent of public instruction shall consider each loan application in the order the application received approval under section 15.1-36-01. 4. If the superintendent of public instruction approves the loan, the board of university and school lands shall issue a loan from the coal development trust fund. a. For a loan made under this sectionsubsection: a.(1) TheExcept for loans provided for a school construction project on an air force base, the minimum loan amount is two hundred fifty thousand dollars and the maximum loan amount for which a school district may qualify is five million dollars; b.(2) The term of the loan is twenty years, unless the board of the school district requests a shorter term in the written loan application; and c.(3) The interest rate of the loan may not exceed two percent per year. b. During the 2025-27 biennium, a loan for a school construction project on an air force base is an allowable condition under subsection 2. For a loan made for a school construction project on an air force base under this subsection: (1) The maximum loan amount for which the school district may qualify is the lesser of twenty percent of the project cost or twenty million dollars; (2) The term of the loan is twenty years, unless the board of the school district requests a shorter term in the written loan application; (3) The interest rate of the loan may not exceed two percent per year; and (4) The school district must obtain all necessary federal authorizations and funding commitments for the project. H. B. NO. 1369 - PAGE 9 5. a. If a school district seeking a loan under this section received an allocation of the oil and gas gross production tax during the previous fiscal year in accordance with chapter 57-51, the board of the district shall provide to the board of university and school lands, and to the state treasurer, its evidence of indebtedness indicating the loan originated under this section. b. If the evidence of indebtedness is payable solely from the school district's allocation of the oil and gas gross production tax in accordance with section 57-51-15, the loan does not constitute a general obligation of the school district and may not be considered a debt of the district. c. If a loan made to a school district is payable solely from the district's allocation of the oil and gas gross production tax in accordance with section 57-51-15, the terms of the loan must require the state treasurer withhold the dollar amount or percentage specified in the loan agreement, from each of the district's oil and gas gross production tax allocations, in order to repay the principal and interest of the evidence of indebtedness. The state treasurer shall deposit the amount withheld into the fund from which the loan originated. d. Any evidence of indebtedness executed by the board of a school district under this subsection is a negotiable instrument and not subject to taxation by the state or any political subdivision of the state. 6. For purposes of this section, a "construction project" means the purchase, lease, erection, or improvement of any structure or facility by a school board, provided the acquisition or activity is within a school board's authority. SECTION 4. AMENDMENT. Section 15.1-36-08 of the North Dakota Century Code as amended by section 1 of Senate Bill No. 2149, as approved by the sixty-ninth legislative assembly, is amended and reenacted as follows: 15.1-36-08. School construction assistance revolving loan fund - Bank of North Dakota School construction projects - Continuing appropriation. 1. The school construction assistance revolving loan fund is a special revolving loan fund administered by the Bank. The fund consists of all moneys appropriated or transferred to the fund by the legislative assembly, all interest or other earnings of the fund, and all repayments of loans made from the fund. 2. Moneys in the fund, interest upon the moneys in the fund, and payments to the fund of principal and interest are appropriated to the Bank on a continuing basis for the purpose of providing low-interest school construction loans and for paying administrative costs, in accordance with this section. 3. For a school construction project not located on an air force base, to be eligible for a loan under this section, the board of a school district shall: a. Propose a new construction or remodeling project with a cost of at least one million dollars and an expected utilization of at least thirty years; b. Obtain the approval of the superintendent of public instruction for the project under section 15.1-36-01; c. (1) Publish in the official newspaper of the district the information regarding the proposed estimated additional millage and the dollar increase per one thousand dollars of taxable valuation in accordance with section 21-03-13 along with the notice of the election in accordance with section 21-03-12 or along with the initial resolution in accordance with subsection 7 of section 21-03-07; and H. B. NO. 1369 - PAGE 10 (2) Post the information on the school district's website before the date of the election or during the protest period in accordance with chapter 21-03; d. Receive authorization for a bond issue in accordance with chapter 21-03; and e. Submit a completed application to the Bank. 4. For a school construction project located on an air force base, to be eligible for a loan under this section, the board of the school district shall: a. Propose a new construction or remodeling project on an air force base which has a cost of at least one million dollars and an expected utilization of at least thirty years; b. Obtain the approval of the superintendent of public instruction for the project under section 15.1-36-01; c. Obtain all necessary federal authorizations and funding commitments for the project; and d. Submit a completed application to the Bank. 5. The superintendent of public instruction shall designate, until June 30, 2027, or until a loan is made as identified in this section, twenty million dollars of funds available for loans in the school construction assistance revolving loan fund for a loan to provide matching funds for the construction of facilities on an air force base. 6. The superintendent of public instruction shall review loan applications based on a prioritization system that includes a review of all applications filed during the twelve-month period preceding April first and gives consideration to: a. Student occupancy and academic needs in the district; b. The age of existing structures to be replaced or remodeled; c. Building design proposals that are based on safety and vulnerability assessments; d. Community support; e. Cost; and f. Any other criteria established by the superintendent of public instruction, after consultation with an interim committee appointed by the legislative management. 7.6. If the superintendent of public instruction approves the loan, the Bank shall issue a loan from the school construction assistance revolving loan fund. For a loan made under this section: a. If the school construction project totals less than seventy-five million dollars, the maximum loan amount for which a school district may qualify is fifteen millionten million dollars. However, if a school district's unobligated general fund balance on the preceding June thirtieth exceeds the limitation under section 15.1-27-35.3, the loan amount under this section may not exceed eighty percent of the project's cost up to a maximum loan amount of twelve millioneight million dollars; b. If the school construction project totals seventy-five million dollars or more, the maximum loan amount for which a school district may qualify is thirty milliontwenty million dollars. However, if a school district's unobligated general fund balance on the preceding June thirtieth exceeds the limitation under section 15.1-27-35.3, the loan amount under this section may not exceed eighty percent of the project's cost up to a maximum loan amount of twenty-four millionsixteen million dollars; H. B. NO. 1369 - PAGE 11 c. If the school construction project is on an air force base, the maximum loan amount for which the school district may qualify is the lesser of twenty percent of the project cost or twenty million dollars; d. The term of the loan is twenty years, unless the board of the school district requests a shorter term in the written loan application; and e. The interest rate of the loan may not exceed two percent per year. f. A district with a school construction loan secured on the open bond market may apply to refinance the loan when callable with the school construction assistance revolving loan fund under this subsection. 8.7. The Bank may adopt policies and establish guidelines to administer this loan program in accordance with this section. The Bank may use a portion of the interest paid on the outstanding loans as a servicing fee to pay for administration costs which may not exceed one-half of one percent of the amount of the interest payment. The Bank shall deposit principal and interest payments made by school districts for loans under this section in the school construction assistance revolving loan fund. The fund must be audited annually pursuant to section 6-09-29, and the cost of the audit must be paid from the fund. SECTION 5. AMENDMENT. Section 48-01.2-02.1 of the North Dakota Century Code is amended and reenacted as follows: 48-01.2-02.1. Public improvement construction threshold. 1. The threshold for bidding construction of a public improvement is two hundred fifty thousand dollars. The threshold for procuring plans, drawings, and specifications from an architect or engineer for construction of a public improvement is two hundred fifty thousand dollars. 2. Notwithstanding the thresholds in subsection 1, if the state or a political subdivision undertakes the construction of a public improvement and there is reason to believe that engineering or architectural services are necessary to protect the health, safety, or welfare of the public, the state or political subdivision shall consider consulting with an engineer or architect. SECTION 6. AMENDMENT. Section 48-01.2-10 of the North Dakota Century Code is amended and reenacted as follows: 48-01.2-10. Bonds from contractors for public improvements. 1. Unless otherwise provided under this chapter, a governing body authorized to enter a contract for the construction of a public improvement in excess of two hundred fifty thousand dollars shall take from the contractor a bond before permitting any work to be done on the contract. The bond must be for an amount equal at least to the price stated in the contract. The bond must be conditioned to be void if the contractor and all subcontractors fully perform all terms, conditions, and provisions of the contract and pay all bills or claims on account of labor performed and any supplies, and materials furnished and used in the performance of the contract, including all demands of subcontractors. The requirement that bills and claims be paid must include the requirement that interest of the amount authorized under section 13-01-14 be paid on bills and claims not paid within ninety days. The bond is security for all bills, claims, and demands until fully paid, with preference to labor and material suppliers as to payment. The bond must run to the governing body, but any person having a lawful claim against the contractor or any subcontractor may sue on the bond. 2. A governing body may not require any person required to provide a surety bond to obtain the surety bond from a specified insurance or surety company or insurance producer or to submit financial data to the company or producer. H. B. NO. 1369 - PAGE 12 SECTION 7. AMENDMENT. Section 57-15-14.2 of the North Dakota Century Code is amended and reenacted as follows: 57-15-14.2. School district levies. 1. The board of a school district may levy a tax not exceeding the amount in dollars that the school district levied for the prior year, plus twelve percent, up to a levy of seventy mills on the taxable valuation of the district, for any purpose related to the provision of educational services. The proceeds of this levy must be deposited into the school district's general fund and used in accordance with this subsection. The proceeds may not be transferred into any other fund. 2. The board of a school district may levy no more than twelve mills on the taxable valuation of the district, for miscellaneous purposes and expenses. The proceeds of this levy must be deposited into a special fund known as the miscellaneous fund and used in accordance with this subsection. The proceeds may not be transferred into any other fund. 3. The board of a school district may levy no more than three mills on the taxable valuation of the district for deposit into a special reserve fund, in accordance with chapter 57-19. 4. The board of a school district may levy no more than the number of mills necessary, on the taxable valuation of the district, for the payment of tuition, in accordance with section 15.1-29-15. The proceeds of this levy must be deposited into a special fund known as the tuition fund and used in accordance with this subsection. The proceeds may not be transferred into any other fund. 5. The board of a school district may levy no more than five mills on the taxable valuation of the district, pursuant to section 57-15-15.1, for purposes of developing a school safety plan in accordance with section 15.1-09-60. The proceeds of this levy must be deposited into a special fund known as the school safety plan fund and used in accordance with this subsection. 6. Nothing in this section limits the board of a school district from levying: a. Mills for a building fund, as permitted in sections 15.1-09-49 and 57-15-16; and b. Mills necessary to pay principal and interest on the bonded debt of the district, including the mills necessary to pay principal and interest on any bonded debt incurred under section 57-15-17.1 before July 1, 2013. SECTION 8. EFFECTIVE DATE. Section 7 of this Act is effective for taxable years beginning after December 31, 2024. Sections 1, 2, 5, and 6 of this Act are effective July 1, 2025. H. B. NO. 1369 - PAGE 13 ____________________________ Speaker of the House ____________________________ President of the Senate ____________________________ Chief Clerk of the House ____________________________ Secretary of the Senate This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative Assembly of North Dakota and is known on the records of that body as House Bill No. 1369. House Vote: Senate Vote: Yeas 61 Yeas 44 Nays 27 Nays 2 Absent 6 Absent 1 ____________________________ Chief Clerk of the House Received by the Governor at ________M. on _____________________________________, 2025. Approved at ________M. on __________________________________________________, 2025. ____________________________ Governor Filed in this office this ___________day of _______________________________________, 2025, at ________ o’clock ________M. ____________________________ Secretary of State
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