The Appropriations - Government Operations Division on an amended voice roll call on an SB 2012 DOT funding bill voted to further amend the measure to lower a township mill-levy priority threshold and to add language describing which tax data the state treasurer should use when distributing grant funds. The committee then voted to give the bill a do-pass recommendation as amended.

Committee members discussed language in the latest draft of Senate Bill 2012 that would score township road projects for grants administered by the Department of Transportation. The original draft gave "priority" to projects in organized townships that levy at least 24 mills for general-fund purposes; members raised concerns this could exclude townships that cannot reach 24 mills, including unorganized townships whose statutory maximum levy is 18 mills.

The bill’s DOT director, Ron Henke, told the committee the department intends to score applications on multiple criteria and to give higher-scoring townships a few more points for higher mill levies, rather than using a strict cutoff. "What we would do is, when we come up with all the criteria, we would give maybe somebody at 24 mills 10 points, and then somebody at 20 mills may only get 8 points, somebody at 18 would get 6, and so far, and we might go down to 4 and stop and say everybody else gets 4," Henke said, describing how the scoring would work.

North Dakota State Treasurer Thomas Beadle advised the committee on data sources for mill levies and recommended language instructing the treasurer to use tax-commissioner data for distributions. "The state treasurer shall use the most recent mill data rate published by the tax commissioner in the tax levy report," Beadle told the committee; he said the report typically contains the mill data by July 1 of even-numbered years and that using that source reduces duplication and conflicting data points.

Lawmakers debated both political and technical implications. Representative Pyle moved to replace the 24-mill priority language with an 18-mill threshold to account for unorganized townships that cannot levy above 18 mills; Representative Meyer seconded the motion. Members discussed that priority in the scoring was intended to be discretionary and that a township with critical need could still score higher than a township with a higher mill levy if the other criteria warranted it. Representative Pyle also noted grant scoring will consider reported reserves and other measures of need.

The clerk recorded a roll-call vote on the motion to further amend SB 2012; the clerk recorded yes votes from Chairman Munson, Vice Chair Brandenburg, Representatives Bosch, Fisher, Kempenick, Meyer and Pyle. The motion carried. The committee then voted to move SB 2012 as amended with a do-pass recommendation; the same named members voted yes and the motion carried.

Committee members said the updated version will be taken up in full committee on Monday; members also noted a conference committee with the Senate is likely on differences that remain. Staff said they will incorporate the treasurer’s suggested language on which tax-commissioner data the treasurer should use and the amendment reverting the mill threshold to 18 mills.

Votes at a glance

- Motion to further amend Senate Bill 2012 (replace 24-mill priority language with 18 mills for threshold for townships; add treasurer/data language): Mover: Representative Pyle; Seconder: Representative Meyer; Vote recorded: Munson (yes), Brandenburg (yes), Bosch (yes), Fisher (yes), Kempenick (yes), Meyer (yes), Pyle (yes); Outcome: approved.

- Motion to move Senate Bill 2012 as amended (do-pass as amended): Mover: Representative Brandenburg (moved earlier); Seconder: Representative Meyer; Vote recorded: Munson (yes), Brandenburg (yes), Bosch (yes), Fisher (yes), Kempenick (yes), Meyer (yes), Pyle (yes); Outcome: approved.

Why it matters: The bill sets scoring and distribution criteria for DOT-administered grants that will direct funds to township, city, and county road projects. The change from a 24-mill priority floor to language keyed to 18 mills for certain townships preserves eligibility for unorganized townships that cannot legally levy above 18 mills and adds a clear data source for mill-rate calculations, which affects how applications will be ranked and how awards are calculated.

What’s next: Staff will draft the agreed-on amendments for the full committee, and the bill as amended will be considered in full committee on Monday; conferees are expected to negotiate remaining differences with the Senate.