The conference committee on House Bill 1176 discussed a proposed amendment to narrow an exemption for certificates of indebtedness so it applies only to instruments issued by the Bank of North Dakota's (BND) infrastructure revolving loan fund.

The change was proposed to address concerns that a broad exemption for certificates of indebtedness under chapter 57-47 could be used to evade the bill’s 3% cap on local government levies. Aaron Burst, representing the Association of Counties, told the committee he had provided a one-page amendment showing how the sentence would read and urged adding language that names the BND infrastructure revolving loan fund specifically.

“I've handed out, 1 page amendment, with the proposed amendment, and how it would look in that whole sentence,” Aaron Burst said. He argued the bill contains caps on local government at 3% but that the Senate’s bonding exemption and the certificates-of-indebtedness language are broader than some committee members intended.

Burst said the BND revolving loan fund is limited to infrastructure uses and not for government operations. “The BND revolving loan fund is only for infrastructure, and you can read it. I won't insult your intelligence, but it's it's large infrastructure buildings. It's not for government operations,” he said. He also said he had discussed the proposed change with councils and bond counsel, who “did not see a problem with this.”

Senator Beckettall and other members noted that traditional bonds typically require voter approval at a supermajority and are often used for revenue-generating projects; certificates under chapter 57-47 do not always require voter approval, which prompted the request to narrow the exemption to BND’s infrastructure lending.

Committee Chair Hedlund said he would discuss adding the amendment to the House amendment if the committee decides to move forward. No formal motion or vote on the amendment was taken during the session.

The committee paused its work on the amendment and moved on to other items on the house amendment schedule.