Insight #71

May 3, 2025

Legislative Overview ~ May 2, 2025

 

We made it to the finish line! 

The 69th ND Legislative Session adjourned at 4am after all-day and all-night conference committees.  Since bills bounced back and forth between chambers multiple times, it is easiest to summarize as follows:

BILLS THAT PASSED:

House Bills (11th Order)

  • HB 1003 – Passed (74–12–8) – Appropriations

  • HB 1279 – Passed (68–21–5) – Property tax adjustments

  • HB 1006 – Passed (87–3–4) – Higher education funding

  • HB 1176 – Passed (86–4–4) – Tax reform (includes emergency clause)

  • HB 1459 – Passed (63–26–5) – Critical/rare earth minerals (includes emergency clause)

  • HB 1020 – Passed (79–9–6) – General government funding (includes emergency clause)

  • HB 1013 – Passed (60–28–6) – Budget bill (EM clause failed)

  • HB 1369 – Passed (61–27–6) – Education policy (EM clause failed)

  • HB 1005 – Passed (85–4–5) – Budget measure (includes emergency clause)

  • HB 1015 – Passed (76–9–9) – State government operations (includes emergency clause)

  • HB 1377 – Passed (64–25–5) – Tax-related measure

Senate Bills (14th Order)

  • SB 2018 – Passed (66–22–6) – Commerce/Workforce funding

  • SB 2003 – Passed (69–18–7) – Higher Ed funding (includes emergency clause)

  • SB 2004 – Passed (71–19–4) – AG, ITD, and other agencies (includes emergency clause)

  • SB 2012 – Passed (86–2–6) – DHS or Health-related budget

  • SB 2014 – Passed (74–15–5) – Likely human services (includes emergency clause)

❌ BILLS THAT FAILED

  • HB 1168 – Failed (13–77–4) – Tax relief/income tax bill (had EM clause, was adopted in committee but still failed on floor)

  • HB 1377 Amendment – Amendment Rejected (23–66–5) – The amendment was defeated, though the revised bill passed later.

✅ Business-Relevant Bills That Passed

HB 1279 – Property Tax Relief Reform  –  https://ndlegis.gov/assembly/69-2025/regular/documents/25-0895-03000.pdf


Passed 68–21–5
This bill provides modifications to property tax structures, likely aimed at easing burdens on property owners, including businesses. It was amended and adopted before passing.

This Bill proposes extending the existing coal conversion facilities privilege tax, initially enacted in 2021. If passed, the bill is expected to reduce state general fund revenues by an estimated $21.35 million for the 2025-2027 biennium and $42.7 million for 2027-2029. The fiscal impact depends on production levels remaining stable. This bill could affect coal industry stakeholders, state revenue allocations, and energy sector regulations.

HB 1176 – Tax Reform Measure. –  https://ndlegis.gov/assembly/69-2025/regular/documents/25-1003-06000.pdf


Passed 86–4–4 (EM adopted)
This comprehensive tax policy bill was designed to streamline or reduce state income tax burdens. It passed with strong bipartisan support and emergency status.

This Bill was passed with the goal of providing property tax relief to North Dakota residents, but its provisions may not meet the expectations of taxpayers seeking substantial or permanent reform. The bill increases the primary residence credit from $500 to $1,600, expands eligibility for the homestead credit by raising income thresholds by $10,000, and slightly increases the renters’ refund cap from $400 to $600. It also sets a 3% annual cap on local government (excluding townships) property tax levy increases unless voters approve a higher rate. While these measures offer some short-term relief, the changes may be perceived as modest in comparison to the state’s large budget surplus and longstanding calls for more meaningful structural reductions.

Additionally, the bill creates a Legacy Earnings Fund to distribute 8% of the Legacy Fund’s five-year average balance every two years for uses including debt service, infrastructure, and property tax relief. However, critics may point out that the Legacy Fund itself remains largely untapped for direct taxpayer benefit, and that the relief in this bill does not lower property valuations or mill levies directly. The emergency clause allows for immediate implementation, but overall, the bill stops short of delivering the deep, permanent cuts many homeowners and businesses hoped to see.

HB 1459 – Critical Minerals and Rare Earth Ownership Rights  –  https://ndlegis.gov/assembly/69-2025/regular/documents/25-1038-05000.pdf


Passed 63–26–5 (EM adopted)
This bill defines ownership and royalty rights for critical minerals found in coal seams—potentially impacting mining companies, energy producers, and industrial supply chains. It ensures mineral rights are treated as part of coal leases unless explicitly severed.

This Bill defines and governs the extraction and ownership of critical and rare earth minerals found within coal seams in North Dakota. The bill establishes that these minerals—vital for technology, defense, and energy infrastructure—are part of the coal estate unless explicitly severed in recorded agreements. Coal leases will now include these minerals by default, unless specifically excluded. The bill also requires that mineral owners receive at least a 2.5% royalty on the gross proceeds from any extracted and sold critical or rare earth minerals, to be paid annually.

The legislation asserts that supporting domestic development of these minerals is in the public interest, especially given their strategic value and current reliance on foreign sources. It applies retroactively and includes an emergency clause for immediate effect. Stakeholders affected include coal producers, mineral rights holders, industrial developers, and entities involved in national supply chain security. The bill does not alter Constitutional Liberty, but it significantly shifts mineral ownership assumptions and could lead to expanded resource development in North Dakota. Many expect legal challenges.

SB 2018 – Commerce and Workforce Development Appropriations  –  https://ndlegis.gov/assembly/69-2025/regular/documents/25-0185-06000.pdf


Passed 66–22–6
Funds various Department of Commerce programs including workforce initiatives, innovation grants, and economic development efforts. Key funding for businesses and local economic zones.

This Bill encompasses a wide range of appropriations and policy changes aimed at bolstering North Dakota’s economic development, workforce initiatives, and technological advancements. The bill allocates substantial funding to various programs, including tourism marketing, workforce development, autonomous technology, and support for regional planning councils. It also introduces significant changes to existing programs, such as renaming the Office of Legal Immigration to the Global Talent Office and expanding the Uncrewed Aircraft Systems Program’s capabilities.

The affected stakeholders of SB 2018 are diverse and span multiple sectors:

  • Small Businesses and Entrepreneurs: With over 75,000 small businesses in North Dakota, employing more than 196,000 individuals, these entities stand to benefit from the bill’s provisions for entrepreneurship grants, workforce training programs, and tourism development initiatives.

  • Tourism Industry: Allocations for tourism marketing and destination development grants aim to boost the state’s tourism sector, benefiting businesses involved in hospitality, recreation, and related services.

  • Technology and Innovation Sectors: Funding for autonomous agriculture, uncrewed aircraft systems, and the Global Talent Office supports businesses and organizations involved in technological innovation and workforce development.

  • Educational Institutions: Grants for tribally controlled community colleges and technical skills training programs will impact educational institutions focusing on workforce readiness and skill development.

  • Local Communities and Regional Planning Councils: Support for regional workforce impact programs and base enhancement grants will affect local governments and planning bodies working on economic development and infrastructure projects.

SB 2003 – University System Funding  –  https://ndlegis.gov/assembly/69-2025/regular/documents/25-0170-06000.pdf


Passed 69–18–7 (EM adopted)
Ensures continued funding for higher education institutions, which partner with workforce training programs and business incubators.

This Bill allocates over $3.3 billion to the North Dakota University System, funding campus operations, building projects, scholarships, and workforce training. It includes major upgrades at UND, NDSU, and regional colleges—projects that will directly benefit construction companies, contractors, and local vendors.

For business owners, the most relevant parts are:

  • $10M in workforce education innovation grants to develop programs aligned with North Dakota industry needs (e.g., nursing, aviation, trades).

  • Expanded scholarships and financial aid, including dual-credit tuition support, increasing the pipeline of trained local workers.

  • Major campus capital projects at nearly every public college, opening up opportunities for contractors and service providers.

  • Emphasis on in-state student recruitment in healthcare fields, helping address long-term labor shortages.

This bill signals strong state investment in education as a tool for workforce and economic development.

SB 2004 – Attorney General, ITD, and Other Agencies  –  https://ndlegis.gov/assembly/69-2025/regular/documents/25-0171-04000.pdf


Passed 71–19–4 (EM adopted)
Provides funding for legal and IT infrastructure that could affect business compliance, data security, and digital operations across state agencies.

This Bill appropriates funds for the North Dakota Ethics Commission and makes several changes to strengthen ethics oversight in state government. It provides a total budget of $1.37 million for the 2025–2027 biennium, including increased staffing support and funding for a new case management system to improve complaint handling and enforcement. The bill also amends laws to clarify conflict of interest provisions, establishes new timelines for investigating complaints, and requires the Commission to submit an annual report to the Legislative Assembly outlining its findings and actions.

This bill may impact businesses that work closely with state government, bid on public contracts, or engage in lobbying or consulting with public officials. Companies whose owners or employees serve on public boards or commissions should also take note, as the clarified conflict-of-interest definitions could affect eligibility or compliance requirements. Overall, the bill increases the scrutiny of public-private interactions, encouraging greater transparency in how businesses interface with state officials.

SB 2014 – Human Services/Workforce Support Funding  –  https://ndlegis.gov/assembly/69-2025/regular/documents/25-0181-04000.pdf


Passed 74–15–5 (EM adopted)
Supports public health and workforce-related services that can affect employee support programs, benefits systems, and Medicaid administration.

This Bill provides over $137 million in funding for the Industrial Commission and its affiliated agencies, such as the Bank of North Dakota, Housing Finance Agency, and Department of Mineral Resources. Key provisions include the establishment of a rail revolving loan fund to support infrastructure projects and expanded uses for the abandoned oil and gas well plugging and site reclamation fund. These initiatives aim to enhance economic development and energy infrastructure, potentially offering new opportunities for businesses in sectors like construction, energy, and transportation.

HB1020, HB1003, HB1006, HB1005, HB1015
All passed with large margins, funding core operations for education, government services, and infrastructure—areas with downstream effects on business environments.

❌ Business-Relevant Bills That Failed

HB 1168 – Income Tax Reduction Proposal
Failed 13–77–4
Despite being adopted in committee and tagged with an emergency clause, this tax relief bill failed on the House floor. It would have likely benefited individual filers and pass-through business owners.  They chose to fail this after adopting HB 1176.

A Season of Dedication & What’s Next for NDBU

A Demanding Legislative Session
This year’s legislative session was especially rigorous, with the House convening five times yesterday and the Senate six times going well into the wee hours to address a packed agenda. Our legislators put in long hours, making significant sacrifices by spending extended periods away from their families, jobs, and communities. Their commitment deserves our recognition and thanks.

Ongoing Monitoring and Updates
As many impactful bills move into the implementation phase, we will closely monitor their effects throughout the upcoming biennium. Our goal is to keep you informed about how these legislative changes might influence the North Dakota business landscape. Expect regular updates and insights from us as the new laws take shape.

Stay Connected and Engaged
We want to hear from you! Over the next year, NDBU will host several events designed to help you and your business thrive. To make it easy to stay informed, we’re adding an event tab to our website, where you’ll find all the latest details on dates, locations, and topics. Your feedback, questions, and concerns are always welcome-please reach out or email me directly at [email protected]. And be sure to watch for our upcoming raffles that will help fund us through the coming year.

It’s been a privilege & a pleasure to learn and grow with you through this session. I hope you feel we have provided a factual non-partisan perspective.  Let’s keep the conversation going and continue building a stronger business community together.

Jan Wangler, Executive Director