The North Dakota Legislature's Conference Committee on HB 1377 convened on April 30, 2025, to discuss significant updates to the state's campaign finance laws aimed at enhancing transparency and simplifying reporting processes for candidates and political entities.

One of the key outcomes of the meeting was the introduction of a new software system designed to streamline financial tracking and reporting for campaign contributions and expenditures. This system will allow users to enter transactions in real-time, starting from January 1, rather than waiting until the end of the year. The goal is to ensure accurate reporting and reduce the burden on candidates, who will no longer need to remember individual contributions throughout the year.

The committee also discussed changes to the definitions and categories of expenditures, moving away from traditional categories to a more flexible system that allows users to define the purpose of their expenditures. This shift aims to make reporting more intuitive, akin to using a checkbook, where users can select from pre-filled categories or write their own descriptions.

Additionally, the bill proposes to raise the threshold for itemized reporting from $200 to $2.50, which will simplify the reporting process for smaller contributions. Contributions and expenditures below this threshold will be aggregated and protected from open records requests, thereby enhancing privacy for minor transactions.

The committee addressed concerns regarding the fines for late reporting, proposing an increase to make them more of a deterrent. The new structure allows a two-week grace period after the close of a reporting period before fines are imposed, with penalties set at $100, $250, and $500 for various infractions.

Secretary of State Michael Howe emphasized the need for clarity and organization in the campaign finance laws, noting that the existing regulations had become convoluted over the years. The proposed changes aim to create a more coherent framework that aligns with practices in surrounding states while maintaining North Dakota's commitment to transparency.

As the committee moves forward, these updates are expected to significantly improve the efficiency of campaign finance reporting in North Dakota, making it easier for candidates to comply with regulations and for the public to access information about campaign funding. The implementation of these changes will be closely monitored to ensure they meet the intended goals of transparency and accountability in the electoral process.