North DakotaHB 13692025 Regular SessionHouseWALLET

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.

Sponsored By: Pat D. Heinert (Republican)

Became Law

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 0 costs, 3 mixed.

School aid tied to student counts

The state now bases school aid on weighted student units and uses the largest of three methods each year, including a per‑student dollar rate and a 102% baseline‑per‑unit test. A transition add‑on limits sudden drops from baseline. After that, the state subtracts 60 mills times taxable value and 75% of listed local revenues after tuition and other required adjustments. Average daily membership (ADM) is computed from student hours, capped at 1.00 (full‑time virtual counts as 1.00), and aid uses the higher of this year or the three‑year average. Extra baseline per‑student amounts are phased down (40% in 2023–24, then +15 percentage points each year) and districts that convert to elementary get proportional baseline cuts; baseline per‑unit uses 2017–18 units or post‑conversion units.

State pays 80% of special-ed boarding

The state reimburses a student’s home district for 80% of room and board when a student with disabilities is placed in an approved facility for special education. The district pays the rest. The placement must be made by a district and approved by the superintendent. The superintendent may consult the health and human services commissioner for congregate care facilities.

$75 million for school construction loans

During July 1, 2025 to June 30, 2027, the state transfers $75 million from the foundation aid stabilization fund to the school construction assistance revolving loan fund. This adds money to support school construction loans across the state.

School levies capped, with options

A school board may raise the main educational services levy up to 12% over last year’s dollars, but not above 70 mills. It may also levy up to 12 mills for a miscellaneous fund, 3 mills for a special reserve fund, mills needed for tuition, and up to 5 mills for a school safety plan. Money must stay in those funds. These levy rules apply for taxable years beginning January 1, 2025. Levies for building funds and for principal and interest on bonds remain allowed and are not limited by these caps.

New bond and bid rules for public projects

For public improvement contracts over $250,000, the contractor must provide a surety bond at least equal to the contract price. The bond guarantees performance and payment to workers and suppliers, and claimants can sue on it. Officials cannot force you to use a specific surety or submit financial data to a named company. The bid and architect/engineer plan thresholds are set at $250,000, and agencies should consult engineers or architects for health or safety even below that. The bond rule starts January 1, 2025.

Sponsors & Cosponsors

Sponsor

  • Pat D. Heinert

    Republican • House

Cosponsors

  • David Richter

    Republican • House

  • Randy D. Lemm

    Republican • Senate

  • Donald Schaible

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 227 • No: 44

House vote 5/2/2025

Second reading, passed, yeas 61 nays 27

Yes: 61 • No: 27

Senate vote 5/2/2025

Second reading, passed as amended, yeas 44 nays 2

Yes: 44 • No: 2

Senate vote 4/16/2025

Second reading, passed as amended, yeas 44 nays 3

Yes: 44 • No: 3

House vote 2/25/2025

Second reading, passed, yeas 78 nays 12

Yes: 78 • No: 12

Actions Timeline

  1. Filed with Secretary Of State 05/12

    6/11/2025House
  2. Signed by Governor 05/12

    5/17/2025House
  3. Sent to Governor

    5/17/2025House
  4. Signed by Speaker

    5/2/2025House
  5. Signed by President

    5/2/2025Senate
  6. Second reading, passed as amended, yeas 44 nays 2

    5/2/2025Senate
  7. Conference committee report adopted

    5/2/2025Senate
  8. Reported back from conference committee, in place of, placed on calendar

    5/2/2025Senate
  9. Emergency clause failed

    5/2/2025House
  10. Second reading, passed, yeas 61 nays 27

    5/2/2025House
  11. Conference committee report adopted

    5/2/2025House
  12. Reported back from conference committee, in place of, placed on calendar

    5/2/2025House
  13. Appoint Rep. Vigesaa to replace Rep. Heinert on conference committee

    5/1/2025House
  14. Conference committee appointed Schaible Sorvaag Beard

    4/25/2025Senate
  15. Conference committee appointed Nathe Richter Heinert

    4/24/2025House
  16. Refused to concur

    4/24/2025House
  17. Returned to House (12)

    4/22/2025House
  18. Second reading, passed as amended, yeas 44 nays 3

    4/16/2025Senate
  19. Amendment adopted, placed on calendar

    4/16/2025Senate
  20. Reported back amended, do pass, amendment placed on calendar 15 0 1

    4/15/2025Senate
  21. Rereferred to Appropriations

    3/28/2025Senate
  22. Amendment adopted

    3/28/2025Senate
  23. Reported back amended, do pass, amendment placed on calendar 6 0 0

    3/27/2025Senate
  24. Committee Hearing 09:00

    3/17/2025Senate
  25. Introduced, first reading, referred Education Committee

    3/7/2025Senate

Bill Text

  • Adopted by the House Education Committee

  • Adopted by the Senate Education Committee

  • Enrollment

  • FIRST ENGROSSMENT

  • INTRODUCED

  • Prepared by the Legislative Council staff for Conference Committee

  • Prepared by the Legislative Council staff for House Appropriations Committee

  • Prepared by the Legislative Council staff for House Chamber

  • Prepared by the Legislative Council staff for Senator Schaible

  • SECOND ENGROSSMENT

  • SECOND ENGROSSMENT with Conference Committee Amendments

  • SECOND ENGROSSMENT with Senate Amendments

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