North Dakota House approves judiciary pay raises, housing and corrections funding, and incentives for milk processors and oil exploration

BISMARCK, N.D. — The North Dakota House of Representatives on the floor approved a series of appropriations and policy measures Tuesday, including a judiciary budget that raises judicial salaries, a $30 million housing infrastructure grant program, funding for the 988 crisis hotline, a large corrections budget with one‑time construction spending, a value‑added milk processing incentive, and a temporary oil‑and‑gas production incentive.

The measures were offered by the House Appropriations Committee and other committees and won final passage by recorded votes during the session. Lawmakers spent the most floor time debating Senate Bill 2002, the judicial branch appropriation, and Senate Bill 20‑15, the Department of Corrections and Rehabilitation budget.

The judiciary budget (Senate Bill 2002) increases base pay for state judges and funds technology and courtroom equipment. Representative Hansen, the bill carrier from the Appropriations Committee, told the chamber the package includes IT staff increases, courtroom audio/video replacement and ‘‘long overdue salary increases’’ intended to move North Dakota Supreme Court justices and district judges toward the national midpoint. Hansen described the package as covering four major categories: IT and operations, audio/visual equipment, salary increases and enhancements to court programs, and said the committee removed a $200,000 request for credit card processing fees and instead gave courts authority to charge a service fee for card payments.

Representative Koppelman pressed for specifics on the size of the pay increases. Hansen said the adjustments represent an 11.1% increase for Supreme Court justices, a 12.1% increase for the chief justice, and a 7.7% increase for the 55 district judges. The bill also funds three new problem‑solving treatment courts (a mental health court in Mandan, a veterans court in Fargo and an Indian child welfare court in Devil’s Lake) and expands the guardian ad litem program. The House passed the final bill on a recorded vote, 73 yea, 19 nay.

Lawmakers also debated a procedural request to excuse Representative Lausser from the SB 2002 vote because of a stated family conflict; the chamber approved that excusal on a voice vote after a motion by Representative Bosch.

On housing, the House approved Senate Bill 22‑25, a $30 million housing opportunity, mobility and empowerment appropriation originating from the governor’s affordable housing proposal. Representative Murphy, speaking for the Appropriations Committee, said the committee reduced the governor’s original $50 million ask to $30 million and structured awards by community size: $6 million for communities under 5,000 residents; $12 million for communities of 5,001–20,000; $9 million for communities over 20,000; and $3 million targeted for certain metro‑adjacent areas. The bill allows political subdivisions and tribal entities to use funds for infrastructure, lot remediation or rebates for previously prepared lots; maximum awards for larger communities are capped at $1 million. The House approved SB 22‑25, 65 yea, 28 nay; the bill carried an emergency clause.

Lawmakers also passed Senate Bill 2,200 to fund the 988 crisis hotline. Representative Nelson reported the Appropriations Committee removed a proposed 5¢ per month telecommunications assessment and instead funded the $500,000 appropriation from the Community Health Trust Fund (tobacco settlement revenues). The House approved SB 2,200, 87 yea, 6 nay.

The Department of Corrections and Rehabilitation budget (Senate Bill 20‑15) passed after floor debate that emphasized overcrowding and one‑time construction needs. Representative Steeman, speaking for the Appropriations Committee, said the bill represents a roughly 28.6% ongoing general fund increase from base and a 40.4% total general fund increase. One‑time items include about $35.6 million to complete the women’s prison project, $8 million for a 72‑bed addition to the Missouri River Correctional Center, and $28.9 million in other one‑time expenditures tied to county contract beds and deferred maintenance. The bill also includes $20 million for planning and design of a medium‑security facility adjacent to the state penitentiary and a $5 million Community Health Trust Fund match for a diversion and deflection center in Fargo. The House approved SB 20‑15, 64 yea, 29 nay.

On agriculture, the House passed Senate Bill 23‑42 establishing a value‑added milk processing facility incentive program administered by the Agriculture Diversification and Development Committee and including a Bank of North Dakota line of credit. Representative Brandenburg described grants of up to $5,000,000 or 5% of construction cost (the bill text provides a mechanism and maximums tied to validated capacity) and eligible uses such as natural gas or electrical supply, roads and utility extensions; awards are post‑payment after the facility demonstrates capacity. The House approved SB 23‑42, 81 yay, 11 nay. Representative Hawley announced a personal financial interest in the bill and was excused from voting.

Finally, the House passed Senate Bill 23‑97, a finance and taxation committee vehicle that provides temporary, targeted tax incentives aimed at encouraging oil and gas exploration and technology development outside the most‑developed Bakken and Three Forks zones. The amended bill includes a temporary exemption for natural gas used on‑site or reinjected for enhanced oil recovery and a production incentive that applies to the first 300,000 barrels over the first 36 months for eligible development‑incentive wells. Proponents described the measure as an incentive to accept exploration risk and to collect data for future taxation; critics on the floor asked that the bill be considered in the broader context of prior stripper‑well exemptions and long‑term fiscal impacts. The House approved SB 23‑97, 89 yay, 5 nay.

Votes at a glance

- Senate Bill 2,002 (judiciary appropriations): Passed, 73 yea, 19 nay. Key provisions: pay increases for justices and judges (11.1% Supreme Court, 12.1% chief justice, 7.7% district judges), 5 IT staff + 2 admin, $1.6 million audio/video rotation plus $100,000 for Cass County courtroom, 3 new treatment courts, guardian ad litem expansion, authority for courts to charge a service fee in lieu of a $200,000 appropriation for card processing.

- Senate Bill 23‑42 (value‑added milk processing facility incentive): Passed, 81 yea, 11 nay. Key provisions: new grant program administered by Agriculture Diversification and Development Committee, Bank of North Dakota line of credit, post‑payment grants up to $5,000,000 or 5% of construction cost per program rules.

- Senate Bill 22‑25 (housing opportunity, mobility and empowerment): Passed, 65 yea, 28 nay. Key provisions: $30 million appropriation (reduced from $50 million request), award bands by community size, maximum awards for communities over 20,000 capped at $1,000,000, reporting to legislative management by June 30, 20XX (bill text).

- Senate Bill 2,200 (988 crisis hotline): Passed, 87 yea, 6 nay. Key provision: $500,000 appropriation funded from the Community Health Trust Fund; removed a proposed 5¢/month telecom assessment.

- Senate Bill 20‑15 (Department of Corrections & Rehabilitation): Passed, 64 yea, 29 nay. Key provisions: large ongoing and one‑time increases (ongoing general fund +28.6% from base; total general fund +40.4%), $35.6M to finish women’s prison, $8M for 72‑bed addition at Missouri River Correctional Center, $20M for planning/design of a new medium‑security facility, $5M CH Trust Fund match for a diversion center in Fargo.

- Senate Bill 23‑97 (oil & gas development incentives): Passed, 89 yea, 5 nay. Key provisions: temporary tax exemptions/incentives to encourage exploration and technology trials outside the primary Bakken/Three Forks zones, temporary exemption for on‑site gas use and reinjection, incentive volume cap of first 300,000 barrels in first 36 months for qualifying wells.

What remains next

Several items referenced dependencies or follow‑up. The judiciary amendments tied certain guardian/conservatorship staff and four new FTEs to a standalone Office of Guardianship and Conservatorship that will be addressed in separate legislation (Senate Bill 20‑29, referenced on the floor). The milk processing grants and Bank of North Dakota line of credit will require agency rulemaking and post‑award reporting as described in the bill text. Corrections one‑time construction items and larger facilities will require subsequent planning, potential deficiency requests, and intergovernmental contracting noted during debate.

The House recessed to return for further legislative business and caucus and committee notices were announced for midday meetings.