The Senate Appropriations — Government Operations Division voted Friday to adopt amendments (version 1,002) to the Department of Commerce budget and recommended a do-pass as amended for Senate Bill 2018.

The committee approved an amendment package that (1) authorizes the department to continue spending certain unexpended federal funds from a prior one-time $120,000,000 appropriation for weatherization and energy programs, (2) adds multiple one-time grant and operating line items from special funds and the general fund, (3) renames the Office of Legal Immigration to the Office of Global Talent, and (4) includes transfers from the State Investment Fund (SIF) that total $88,000,000 when combined with sectioned appropriations discussed during the meeting.

Why it matters: The changes carry policy and budget consequences for grant programs administered by Commerce, create new reporting requirements for some state-funded grants, and move large special-fund transfers that the committee said will affect the availability of funds later in the session.

Committee staff described a prior, one-time federal appropriation that underpinned several positions and grant programs. "Last session, there was a $120,000,000 appropriation from federal funds for weatherization and energy programs," Levi, staff member, told the committee, adding that the funds came from the Infrastructure Investment and Jobs Act and the Inflation Reduction Act and that some of the money was expected to flow to North Dakota if other states did not use their full allocations. Levi said the bill’s amendment language would permit the department to continue spending any federal funding carried forward under that appropriation in the next biennium but would not automatically continue three one-time FTE positions unless the committee specifically added them to the budget.

Senators discussed whether to add the three FTEs as a $0 net change (positions paid from carried-over one-time funds). "It would just be adding 3 FTE and $0," Levi said when describing the simple amendment mechanics. Committee members agreed the change was easy to make but could be deferred to the House; the panel opted to include the amendment language and retain the option to add the three positions.

The amendment package also adds or adjusts several one-time and ongoing funding items. Major items called out in staff materials include:
- $7,000,000 for tourism marketing awareness (of which $150,000 is for the state magazine);
- $2,000,000 (plus $1,000,000 already in base) for an Operation Intern program (bringing the total to $3,000,000 in the next biennium);
- $1,000,000 for the Office of Global Talent (half for operating, half for grants);
- $20,000,000 for tourism destination development grants from CIFF;
- $10,000,000 for Beyond Visual Line of Sight UAS grants from CIFF (noted as for Vantas in staff remarks);
- $5,000,000 each for enhanced use lease grants (Grand Sky) and Autonomous Agriculture grants;
- An increase to entrepreneurship grants and vouchers to reach $1,500,000 from the general fund when combined with the base; and
- $5,000,000 to a LIFT Fund transfer and $30,000,000 to a Development Fund transfer from SIF, which staff said brings SIF-related activity in the bill to about $88,000,000 when the transfers in sections 5 and 6 are included.

The amendment package creates a new line item described as a "new and vacant FTE pool" that agencies cannot spend directly; per the amendment language OMB would transfer money from that line into salary lines as needed under guidelines found in the OMB bill. Staff said the pool is being added uniformly across agency appropriations to reflect estimated vacancy savings and allow controlled transfers to salary lines.

The committee also approved a new reporting section, proposed by Senator Hogue and narrowed in committee, that would require Commerce to compile semiannual reports to the budget section for state-funded grants (excluding federally funded programs). The report items listed in the amendment include grant purpose, funding history, application period length, recipient names and award amounts, and distribution dates.

On procedural votes, Senator Dwyer moved adoption of the amendment package (1,002) and Senator Burkhart seconded. The roll call on the amendments recorded ayes from Senators Sickler, Eberly, Dwyer, Burkhart and Wansick. The committee then voted to recommend a do-pass as amended on Senate Bill 2018; Senator Sickler moved the do-pass as amended, seconded by Senator Eberly, and the motion passed on a recorded roll call with ayes recorded by the same group of Senators and Senator Warner also recorded as voting aye during the second roll call.

Committee members asked staff to remain alert to the final numbers as the session progresses; the chair noted uncertainty about whether a $24,000,000 item in a development fund would be available as expected and said the committee might need to revisit the package if those numbers change.

The committee adjourned after the votes.

Votes at a glance:
- Motion: Adopt amendments 1,002. Mover: Senator Dwyer; Second: Senator Burkhart. Outcome: Passed (roll call: Sickler — Aye; Eberly — Aye; Dwyer — Yes; Burkhart — Aye; Wansick — Aye).
- Motion: Do pass as amended on Senate Bill 2018. Mover: Senator Sickler; Second: Senator Eberly. Outcome: Passed (roll call: Sickler — Aye; Eberly/Herberly — Yes; Dwyer — Yes; Burkhart/Burghardt — Yes; Warner — Aye; Wansick — Aye).