All Roll Calls
Yes: 217 • No: 47
North DakotaSB 20032025 Regular SessionSenateWALLET
AN ACT to provide an appropriation for defraying the expenses of the North Dakota university system; to create and enact two new sections to chapter 15-10 of the North Dakota Century Code, relating to presidential searches and the state commissioner of higher education; to amend and reenact subsection 2 of section 6-09-53, subdivision a of subsection 1 of section 15-10-17, subdivision c of subsection 1 of section 15-10-48, subdivisions a and c of subsection 1 of section 15-10-48.2, subdivision c of subsection 1 of section 15-10-49, subsection 1 of section 15-10-75, subsection 1 of the new section to chapter 15-10, as created by section 1 of House Bill No. 1437, as approved by the sixty-ninth legislative assembly, paragraph 3 of subdivision h of subsection 1 of section 15-18.2-02, subsection 2 of section 15-18.2-03, subsection 1 of section 15-18.2-05, section 15-54.1-04, subsection 2 of section 15-62.5-03, and section 54-44.1-11 of the North Dakota Century Code, sections 6 and 7 of chapter 126 of the 2021 Session Laws, sections 7, 8, and 9 of chapter 3 of the 2023 Session Laws, and subsection 17 of section 1 of chapter 550 of the 2021 Special Session Session Laws, relating to the powers and duties of the state board of higher education, the economic diversification research fund, matching grants for the advancement of academics, the workforce education innovation program, academic tenure policy at institutions of higher education, state aid for institutions of higher education, university system capital building funds, the scholars program, the cancellation of unexpended appropriations, transfers from the Bank of North Dakota to the skilled workforce loan repayment program fund and the skilled workforce scholarship fund, transfers from the Bank of North Dakota to the skilled workforce loan repayment program fund, the skilled workforce scholarship fund, and to the state board of higher education for dual-credit tuition scholarships, and funding for hyperbaric oxygen therapy; to repeal section 15-10-74 of the North Dakota Century Code, relating to the naming of the Bismarck state college polytechnic center; to authorize the state board of higher education to issue and sell bonds for capital projects; to provide for a transfer; to provide for the conveyance of real property; to provide for a legislative management higher education funding review committee; to provide for a legislative management study; to provide for a report; to provide legislative intent; to provide an exemption; and to declare an emergency.
Sponsored By: Senate Appropriations
Signed by Governor
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Bill Overview
Analyzed Economic Effects
15 provisions identified: 9 benefits, 0 costs, 6 mixed.
Funding for colleges and student aid
The law provides about $3.374 billion for North Dakota higher education through June 30, 2027, including $535.35 million above base funding. Funding includes $30.92 million in student assistance grants, $5 million in supplemental grants, and $17.22 million in academic and career scholarships. It also includes $24.76 million for challenge grants and $10 million for workforce education grants. By August 1, 2025, the board must transfer operating funds from system governance and technology budgets to two colleges. Bismarck State College gets $500,000 and Lake Region State College gets $342,000; the system cannot charge colleges to recover these transfers.
Resident recruitment goal for medical students
Starting July 1, 2025, the University of North Dakota must develop and use recruitment and acceptance strategies favoring resident enrollment. The goal is 85% North Dakota residents in its medical and physician assistant programs by fall 2030. This is a goal, not a guaranteed admission quota, and can shift admissions opportunities toward residents and away from nonresidents. The university must report its strategies annually to Legislative Management during the 2025–27 budget period.
Tenure appeal rights for college faculty
By July 1, 2026, state-system colleges offering tenure must adopt policies with a hearing and appeal process. Faculty can use that process to challenge the tenure policy or a committee decision about post-tenure evaluation.
Equipment grants for oxygen therapy providers
The law provides up to $2.104121 million in federal recovery money for hyperbaric oxygen therapy equipment. The University of North Dakota medical school purchases the equipment for grants to North Dakota health care providers. Funding ends June 30, 2027. This provision does not establish patient eligibility or direct household payments.
Colleges can keep unspent project money
The university system's exemption from the usual cancellation rule lasts through July 31, 2027; it must report carried-over amounts and uses. Named unspent appropriations remain available for July 1, 2025–June 30, 2027, including 2023 capital projects and dual-credit scholarships. These also include Bismarck State's multipurpose academic and athletic center and specified federal recovery funds. Agricultural carryovers cover branch research center construction inflation, the Northern Crops Institute feed-center upgrade and pellet mill, and Waldron Hall replacement. Those agricultural carryovers include related revenue and apply only to the named projects' remaining funds.
Funding for skilled workers' student aid
Bank of North Dakota earnings and profits fund skilled-workforce scholarships and student loan repayment. For July 1, 2021–June 30, 2027, transfers provide only the amount needed, up to $2.25 million for each fund. Separate transfers provide $3.4 million to each fund for July 1, 2023–June 30, 2027. Students and workers must qualify for the respective programs; these provisions do not set individual award amounts.
Higher state aid rates for colleges
State aid formula base rates rise from $73.15 to $79.57 for the University of North Dakota and North Dakota State University. Rates rise from $103.76 to $111.55 for Dickinson, Mayville, Minot, and Valley City State Universities. Rates rise from $110.38 to $119.91 for Bismarck State, Dakota College at Bottineau, Lake Region State, the State College of Science, and Williston State. Professional-level credits receive a weight of 14.0, up from 9.0. When completed credits otherwise lower a college's completion factor below its prior two-year level, excess credits receive a 1.0 growth factor and weight.
Matching grant limits for state colleges
One matching-grant program's total award ceiling rises from $2.2 million to $2.645 million, with matching requirements still applying. Separate institutional grant limits allow up to $2.045 million each for Bismarck State, Dickinson State, Minot State, and the North Dakota State College of Science. Mayville State and Valley City State can each receive up to $1.32 million. Dakota College at Bottineau, Lake Region State, and Williston State can each receive up to $720,000. These are college award limits, not guaranteed awards or payments to students.
Tuition scholarships for dual-credit students
The law directs $1.5 million from Bank of North Dakota earnings and profits to dual-credit tuition scholarships. The transfer covers July 1, 2023, through June 30, 2027. Transfers go to the university system when requested by the higher education commissioner. The money supports eligible students, but this provision does not set individual scholarship amounts.
Workforce training grants for state colleges
The higher education board can award grants for college programs that meet North Dakota business and industry workforce needs. Each eligible college can receive up to $1.5 million per two-year budget period. Colleges must be under the board's control; the University of North Dakota and North Dakota State University are excluded. The board must create a committee, guidelines, and an application process.
New scholarship tie-break for students
North Dakota Scholars Program applicants tied under the main scoring method are ranked by their ACT or equivalent scale-score totals. An approved test without scale scores counts as zero for this tie-break. The rule can move tied applicants higher or lower in the award ranking.
College leadership and staffing rules change
The higher education board appoints college presidents and can authorize search committees and retain consultants selected by those committees. The board can contract for the higher education commissioner to become college faculty or staff after the commissioner's contract ends. The system office must pay the resulting salary and wages from its appropriation and cannot charge colleges to recover them. From July 1, 2025, through June 30, 2027, the board can adjust full-time-equivalent positions as available funds allow. The system must report those staffing changes with its 2027–29 budget request.
Colleges gain funding and spending flexibility
From July 1, 2025, through June 30, 2027, the university system can spend additional federal, private, and other funds, including tuition. This authority applies only when lawmakers have not indicated an intent to reject the money. North Dakota–Minnesota tuition reciprocity funds must reimburse system institutions. Through June 30, 2027, the budget office must move spending authority from covered college operating budgets to capital budgets when the board requests it. These moves shift money away from operations, and the board must report each move to Legislative Management.
Colleges must match building repair funds
Colleges using extraordinary-repair money must provide matching funds from operations or other sources. Most must provide $1 for each state dollar; the University of North Dakota and North Dakota State University must provide $2. The same ratios apply to Tier III capital building funds, with the match required before an allocation. Tier I repair money, Tier II building funds, and state appropriations for specific capital projects cannot count toward Tier III matches.
University land sales support campus repairs
The higher education board can sell about 20 acres at Sixth Avenue North and 42nd Street North in Grand Forks. It can also sell about 2.74 acres at 4201 James Ray Drive. The board or its designee must jointly set sale terms with the commissioner of university and school lands. Sales transfer public land to buyers, while proceeds can pay only for deferred maintenance and extraordinary repairs.
Sponsors & Cosponsors
Sponsor
Senate Appropriations
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 5/2/2025
Second reading, passed, yeas 42 nays 2, Emergency clause carried
Yes: 42 • No: 2
House vote • 5/2/2025
Second reading, passed as amended, yeas 69 nays 18
Yes: 69 • No: 18
House vote • 4/18/2025
Second reading, passed as amended, yeas 62 nays 25
Yes: 62 • No: 25
Senate vote • 2/25/2025
Second reading, passed, yeas 44 nays 2
Yes: 44 • No: 2
Actions Timeline
Filed with Secretary Of State 05/12
6/11/2025HouseSigned by Governor 05/12
5/17/2025SenateSent to Governor
5/2/2025SenateSigned by President
5/2/2025SenateSigned by Speaker
5/2/2025HouseEmergency clause carried
5/2/2025HouseSecond reading, passed as amended, yeas 69 nays 18
5/2/2025HouseConference committee report adopted
5/2/2025HouseReported back from conference committee, in place of, placed on calendar
5/2/2025HouseSecond reading, passed, yeas 42 nays 2, Emergency clause carried
5/2/2025SenateConference committee report adopted
5/2/2025SenateReported back from conference committee, in place of, placed on calendar
5/2/2025SenateConference committee appointed Swiontek Sanford Richter
4/23/2025HouseConference committee appointed Sorvaag Schaible Thomas
4/22/2025SenateRefused to concur
4/22/2025SenateReturned to Senate (12)
4/18/2025SenateEmergency clause failed
4/18/2025HouseSecond reading, passed as amended, yeas 62 nays 25
4/18/2025HouseAmendment adopted, placed on calendar
4/18/2025HouseReported back amended, do pass, amendment placed on calendar 20 0 3
4/17/2025HouseCommittee Hearing 09:00
4/4/2025HouseCommittee Hearing 02:00
3/20/2025HouseCommittee Hearing 10:30
3/20/2025HouseCommittee Hearing 09:00
3/14/2025HouseCommittee Hearing 09:00
3/14/2025House
Bill Text
Enrollment
FIRST ENGROSSMENT
FIRST ENGROSSMENT with Conference Committee Amendments
FIRST ENGROSSMENT with House Amendments
INTRODUCED
Prepared by the Legislative Council staff for Conference Committee
Prepared by the Legislative Council staff for House Appropriations - Education and Environment Division Committee
Prepared by the Legislative Council staff for House Chamber
Prepared by the Legislative Council staff for Senate Appropriations - Education and Environment Division Committee
Prepared by the Legislative Council staff for Senator Wanzek
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