All Roll Calls
Yes: 227 • No: 44
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)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
8 provisions identified: 3 benefits, 2 costs, 3 mixed.
Higher state aid amounts for schools
Beginning July 1, 2025, North Dakota uses at least $11,349 per weighted student unit for 2025–26 school aid. Weighted units account for different student funding needs. The amount rises to $11,633 for 2026–27 and each year afterward. An alternative baseline calculation reduces its funding difference by 70% in 2025–26 and 85% in 2026–27. That reduction increases by 15 percentage points each year until the difference reaches zero.
School property taxes get fixed ceiling
For taxable years beginning after December 31, 2024, school districts can levy up to 70 mills for educational services. This replaces the limit based on the prior year’s levy plus 12%. Some districts gain room to raise levies, but none can exceed the new 70-mill ceiling under this authority. The money must stay in the district’s general fund. Household property taxes depend on taxable property values and the levy each district sets.
School aid deductions bring mixed changes
Beginning July 1, 2025, school aid subtracts 60 mills times taxable value without the former 12% yearly growth limit. The separate 75% revenue deduction no longer includes state reimbursements for homestead and disabled veterans property tax credits. Other listed revenues remain subject to that deduction, with debt-repayment mill shares based on 2024 rather than 2022. Baseline funding excludes 85% of qualifying Air Force base tuition in 2025–26 and 100% starting in 2026–27. That tuition must come through federal impact aid under an agreement to educate students from an Air Force base district.
Construction loans for Air Force schools
Two state loan programs finance Air Force base school projects, capped at the lesser of 20% of cost or $20 million. The coal trust fund option applies during 2025–27. Revolving fund projects must cost at least $1 million, have 30 years of expected use, and receive superintendent approval. Both require federal approvals and funding commitments; revolving fund applicants must also submit a completed Bank of North Dakota application. Loans can last up to 20 years, with annual interest no higher than 2%.
Schools gain construction loan refinancing option
School districts can apply to refinance construction loans through the state revolving loan fund. The existing loan must have been secured on the open bond market and must be callable, meaning repayable early. This option does not guarantee approval or establish a refinancing rate or amount.
State approval for special education placements
Beginning July 1, 2025, school districts make facility placements for special education, and the state superintendent must approve them. This applies to public and private facilities. The superintendent may consult the Department of Health and Human Services about group care facilities. Reimbursement stays at 80% of eligible room and board costs, with the student’s home district responsible for the rest.
Lower construction loan caps for schools
For school projects outside Air Force bases, the revolving construction loan fund lowers its maximum loans. Projects below $75 million can borrow up to $10 million; projects costing $75 million or more can borrow $20 million. Lower limits apply when the district’s unobligated general fund balance on the preceding June 30 exceeds the statutory limit. In that case, loans cannot exceed 80% of project cost or the applicable cap of $8 million or $16 million. Eligible projects must cost at least $1 million and have at least 30 years of expected use.
Fewer requirements for smaller public projects
Beginning July 1, 2025, public construction bidding and architect or engineer requirements have $250,000 thresholds, up from $200,000. State agencies and local public bodies therefore face fewer requirements for smaller projects. The mandatory contractor bond threshold also rises from $200,000 to contracts over $250,000, reducing required bond protection for smaller contracts. Required bonds must be secured before work starts and equal at least the contract price. They cover contract performance and payment claims for labor, supplies, and materials.
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
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
Filed with Secretary Of State 05/12
6/11/2025HouseSigned by Governor 05/12
5/17/2025HouseSent to Governor
5/17/2025HouseSigned by Speaker
5/2/2025HouseSigned by President
5/2/2025SenateSecond reading, passed as amended, yeas 44 nays 2
5/2/2025SenateConference committee report adopted
5/2/2025SenateReported back from conference committee, in place of, placed on calendar
5/2/2025SenateEmergency clause failed
5/2/2025HouseSecond reading, passed, yeas 61 nays 27
5/2/2025HouseConference committee report adopted
5/2/2025HouseReported back from conference committee, in place of, placed on calendar
5/2/2025HouseAppoint Rep. Vigesaa to replace Rep. Heinert on conference committee
5/1/2025HouseConference committee appointed Schaible Sorvaag Beard
4/25/2025SenateConference committee appointed Nathe Richter Heinert
4/24/2025HouseRefused to concur
4/24/2025HouseReturned to House (12)
4/22/2025HouseSecond reading, passed as amended, yeas 44 nays 3
4/16/2025SenateAmendment adopted, placed on calendar
4/16/2025SenateReported back amended, do pass, amendment placed on calendar 15 0 1
4/15/2025SenateRereferred to Appropriations
3/28/2025SenateAmendment adopted
3/28/2025SenateReported back amended, do pass, amendment placed on calendar 6 0 0
3/27/2025SenateCommittee Hearing 09:00
3/17/2025SenateIntroduced, 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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