Insight #5

Jan 13, 2025

Legislative Overview – January 6-10

10 Senate Bills Passed and awaiting House Response:                                                                                                      SB2038, SB2047, SB2050, SB2053, SB2054, SB2055, SB2056, SB2067, SB2072, SB2074

11 House Bills Passed and awaiting Senate Response:                                                                                                      HB1030, HB1031, HB1040, HB1045, HB1047, HB1059, HB1084, HB1085, HB1103, HB1107, HB1115

Of Interest in the business world are:

SB2047: This bill proposes amendments to section 57-38-59 of the North Dakota Century Code, relating to withholding from wages of employees.

https://ndlegis.gov/assembly/69-2025/regular/documents/25-8016-01000.pdf

Key Changes:

  1. Withholding Rules: Employers are required to withhold state income taxes from employee wages based on percentages set by the tax commissioner.
  2. New Exemption: The bill adds a new rule stating that employers cannot withhold state income tax from specific types of wages unless the employee asks them to. This means that for certain wages, employees have the option to decide whether they want taxes withheld.
  3. Specific Wages: The types of wages that are exempt from withholding are defined in another section of the law (section 57-38-30.3). While the exact types of wages aren’t detailed in the provided information, they typically refer to certain payments or benefits that may not be subject to regular income tax withholding.
Impact:
  • For Employees: This change gives employees more control over their tax withholding for specific types of wages. If they don’t want taxes taken out, they can choose not to have it withheld.
  • For Employers: Employers need to be aware of these new rules and ensure they comply by not withholding taxes from the specified wages unless instructed by the employee.

Overall, this bill aims to modify how state income tax is withheld, potentially making it easier for employees to manage their tax liabilities based on their individual.

HB 1031: Purpose of the Bill: The bill aims to fix errors, inaccuracies, and outdated references in the law. It ensures that the language in the code is clear and up-to-date.

https://ndlegis.gov/assembly/69-2025/regular/documents/25-0302-01000.pdf

Key Changes:

  1. Amendments to Definitions:
    • The bill amends definitions in section 1-01-49, which includes terms like “children,” “coal,” “compound interest,” and others to clarify their meanings.
  2. Repeals:
    • It proposes to repeal several sections that are no longer needed or are outdated. These sections include definitions and other references that may be redundant or incorrect.
  3. Technical Corrections:
    • The bill makes numerous technical corrections throughout various sections of the code to ensure that references are accurate and relevant.
  4. Effective Date:
    • The bill includes a provision for when these changes will take effect, although the specific date is not mentioned in the provided text.

Impact of the Bill:

  • Clarity: By updating definitions and removing obsolete references, the bill helps make the law easier to understand for everyone, including lawmakers, legal professionals, and the public.
  • Efficiency: Streamlining the code can improve efficiency in legal proceedings and government operations by ensuring that all references are current and applicable.
  • Legal Consistency: The corrections help maintain consistency in how laws are interpreted and enforced.

In summary, House Bill No. 1031 is about cleaning up and improving the North Dakota Century Code by fixing errors and making sure all references are accurate and relevant. This helps ensure that the laws are clear and effective for everyone involved.

HB1040:  This bill proposes amendments regarding Assistance to Livestock producers relating to eligibility for the drought disaster livestock water assistance program.

https://ndlegis.gov/assembly/69-2025/regular/documents/25-8005-01000.pdf

Key Provisions

  1. Eligibility for Assistance:
    • Livestock producers facing water supply issues due to drought can apply for assistance through this program.
  2. Application Process:
    • Applicants must first seek cost-share assistance from the U.S. Department of Agriculture (USDA) Farm Service Agency.
    • If the USDA denies this assistance, applicants can then submit their application to the state commission for further consideration.
    • A document from the USDA explaining the denial must accompany any application sent to the commission.
  3. Funding Considerations:
    • The Department of Water Resources will review all applications forwarded to them by the commission.
    • Projects that begin after applying for funding but before receiving prior approval from the department are still eligible for funding.
    • Funding will be provided based on available resources and adherence to set eligibility rules.
  4. Indian Land Eligibility:
    • Projects located on Indian land are also eligible for assistance under this program, ensuring support for tribal livestock producers affected by drought.

Impact

  • Support for Livestock Producers: This program aims to provide critical support to livestock producers who are struggling with water shortages due to drought conditions, helping them maintain their operations during challenging times.
  • Streamlined Application Process: By allowing applications to be forwarded after a USDA denial, the bill seeks to simplify access to state-level assistance.
  • Inclusivity for Tribal Lands: Including Indian lands in eligibility criteria promotes equity in disaster relief efforts across different communities in North Dakota.

This amendment is designed to enhance support mechanisms for livestock producers affected by drought, ensuring they have access to necessary resources during severe water shortages.

HB1045:  The proposed bill aims to amend Section 43-30-16 of the North Dakota Century Code, specifically addressing application fees related to online training for apprentice security officers and renewal fees for non-licensed officers and agency owners.

https://ndlegis.gov/assembly/69-2025/regular/documents/25-8021-01000.pdf

Key Provisions

  1. Application Fee for Online Training:
    • The bill establishes that the application fee for a non-live remote or online classroom instruction course for apprentice security officers cannot exceed $60.
  2. Renewal Fees:
    • The renewal fee for all non-licensed officers and owners with at least a 10% interest in a private security or detective agency is also capped at $60.
    • A late fee of up to $20 may be charged for each month the renewal fee remains unpaid.

Impact

  • Affordability of Training: By capping the application fee for online training, the bill makes it more affordable for individuals seeking to enter the security profession, potentially increasing participation in training programs.
  • Simplified Renewal Process: Establishing clear renewal fees helps streamline the process for non-licensed officers and agency owners, making it easier to maintain compliance with licensing requirements.
  • Encouragement for Compliance: The late fee structure incentivizes timely renewals, which can help ensure that security personnel are properly licensed and trained.

This amendment is designed to enhance the regulatory framework surrounding security officer training and licensing in North Dakota, promoting both accessibility and accountability within the industry.

HB1084:  The proposed bill seeks to amend sections 4.1-19-03 and 4.1-19-05 of the North Dakota Century Code, focusing on the management of eggs and poultry in the state, and it also includes the repeal of section 4.1-19-04, which pertains to licensing requirements for buyers, sellers, and producers of eggs and poultry.

https://ndlegis.gov/assembly/69-2025/regular/documents/25-8118-01000.pdf

Key Provisions

  1. Amendments to Section 4.1-19-03 (Purposes – Duties):
    • The Agriculture Commissioner will:
      • Promote better poultry breeding practices and work with the Board of Animal Health to control and eliminate poultry diseases.
      • Serve as the official state agency collaborating with federal entities to advance the state’s participation in the National Poultry Improvement Plan.
      • Oversee a federal-state grading service for poultry products sold at retail, ensuring compliance with grading regulations.
      • Enhance the welfare and marketing of the poultry industry within North Dakota.
      • Adopt necessary rules to implement these objectives.
  1. Amendments to Section 4.1-19-05 (Penalties):
    • Individuals violating any provisions or rules under this chapter can be charged with a Class A misdemeanor.
    • A civil penalty of up to $1,000may be imposed for each violation, which can be adjudicated by courts or through administrative hearings conducted by the Agriculture Commissioner.
    • The Commissioner has the authority to initiate civil actions against violators.
    • Making false statements in any related application or document is also classified as a Class A misdemeanor.
  2. Repeal of Section 4.1-19-04:
    • The bill proposes to repeal existing licensing requirements for buyers, sellers, and producers of eggs and poultry, simplifying regulatory compliance for these stakeholders.

Impact

  • Streamlined Regulations: By repealing licensing requirements, the bill aims to reduce bureaucratic hurdles for those involved in the poultry industry, potentially encouraging more participation and investment.
  • Enhanced Support for Poultry Industry: The Agriculture Commissioner’s expanded duties will likely lead to improved practices within the industry, promoting animal health and product quality.
  • Clear Penalty Structure: Establishing clear penalties for violations helps ensure compliance with poultry management regulations while providing a framework for enforcement.

Overall, this legislation is designed to modernize and improve the management of eggs and poultry in North Dakota, supporting both industry growth and animal welfare while simplifying regulatory processes.

 HB1085:  The proposed bill seeks to amend section 4.1-31-01.1 of the North Dakota Century Code, which pertains to the incorporation of federal meat inspection regulations into state law.

https://ndlegis.gov/assembly/69-2025/regular/documents/25-8119-01000.pdf

The proposed bill seeks to amend section 4.1-31-01.1 of the North Dakota Century Code, which pertains to the incorporation of federal meat inspection regulations into state law.

Key Provisions

  1. Incorporation of Federal Regulations:
    • The bill specifies that all federal meat and poultry inspection regulations effective as of July 3, 2024, will be incorporated by reference into North Dakota law. This includes regulations found in Title 9, Code of Federal Regulations, specifically parts 301-320, 325, 329, 381, 391, 416-418, 424, 430, 441, 442, and 500.
    • Notably, parts 5and 381.38 are excluded from this incorporation.

Impact

  • Alignment with Federal Standards: By aligning state regulations with updated federal standards, the bill ensures that North Dakota’s meat and poultry inspection processes remain consistent with national practices, which can enhance food safety and public health protections.
  • Regulatory Clarity: Incorporating specific parts of the federal regulations helps clarify the requirements for meat processors and producers in North Dakota, ensuring they are aware of the applicable standards they must meet.
  • Support for Local Industry: This alignment may also support local meat producers by facilitating easier compliance with regulations that are already established at the federal level.

Overall, this amendment aims to modernize and streamline North Dakota’s meat inspection framework by ensuring it reflects current federal standards while promoting food safety and industry compliance.

If any of the above affect your industry and/or you’d like more information, please contact us and we can dig deeper to get specific or put you in touch with your representatives.  Dry reading, absolutely.  But you learned something you didn’t know and now you can share it with others in your area.  We will look to do something similar each week.  They will get longer as the Session kicks into high gear, but we will keep on top of it all for you here.

Respectfully Submitted,

Jan Wangler, Executive Director