The Senate Appropriations Committee, chaired by Chairman Beckettall, considered more than a dozen bills at a lengthy afternoon session and approved amendments or due-pass recommendations on most measures while postponing final action on at least one major agriculture funding bill.

The committee voted to approve or advance amendments and bills across agriculture, education, commerce, health care and rural development. Members emphasized the need for additional documentation on program results for larger appropriations, reduced some initial funding requests, and in one case removed proposed grant language pending parallel legislation. The committee also set several bills for further review on Wednesday morning.

Why it matters: The committee’s decisions affect state allocations for a $25 million agricultural diversification fund, an endowment proposed for rural community grants, infrastructure support for a North Dakota State University research park project, and expansions or rule changes in Medicaid-related programs and health services. Several votes will shape final budget negotiating positions as the session progresses.

Votes at a glance (key items considered)

- Senate Bill 02/1927 — Agricultural Diversification and Development Fund (added-value agriculture)
- Amendment: Committee approved an amendment to replace a prior “up to 5%” administrative-language cap with explicit authority for the Agriculture Commissioner to reimburse committee members for travel, per diem and related costs ‘‘as authorized under the other section of law’’ and to allow funds to be used for per diem and related costs of the Ag Infrastructure Grant Program each biennium. Motion on the amendment was carried (roll call recorded as “Motion carried”).
- Final action: Committee discussion continued; a motion for a due-pass as amended was moved but later withdrawn and the bill was set for continued discussion Wednesday morning so members could receive a projects booklet and more detail from the Department of Agriculture. No final due-pass vote on the bill occurred at this meeting.
- Notable testimony: Doug Goring, North Dakota Agriculture Commissioner, testified the $25,000,000 in the bill is intended for interest buy-downs and grants, with $15,000,000 dedicated to interest buy-downs (which would buy down roughly $256,000,000 in loans) and $10,000,000 for infrastructure grants (including the egg infrastructure program). Commissioner Goring said the program has existed about 18 months and that department staff would supply project reports to the committee.

- Senate Bill 02/1954 — School electronic device policy and DPI grant funding
- Amendment: Committee amendment struck the proposed $300,000 DPI grant line and removed language that would have required the superintendent of public instruction to identify and approve specific secured storage containers. The amendment passed on roll call and the committee moved a due-pass on the bill as amended. Final reported vote: due-pass as amended passed (14 yes, 0 no, 2 absent/other recorded).
- Rationale: Committee members said school districts should retain local control to decide whether and how to provide secured storage for student devices; the committee also noted national education groups and other states already publish guidance.

- Senate Bill 02/2396 — Independent audit of Commerce Department (development fund focus)
- Amendment: Committee reduced funding for an independent audit from $350,000 to $200,000 to allow the department and sponsor to scope the audit cost more precisely. The amendment passed on roll call (13 yes, 1 no, 2 absent/other recorded).
- Final action: Committee moved a due-pass as amended. Final recorded vote: due-pass as amended passed (13 yes, 1 no, 2 absent/other recorded). Committee discussion noted the sponsor intends to confer with the State Auditor about scope prior to the Senate floor.

- Senate Bill 02/1999 — Medicaid reimbursements for psychiatric residential treatment facilities (PTRFs)
- Action: Committee moved and adopted a due-pass recommendation (roll-call result recorded as 14 yes, 0 no, 2 absent/other). The bill directs the Department of Human Services to update Medicaid reimbursement rules for PTRFs, reclassifying certain costs (clinical supervisors, medical directors, family engagement, therapeutic leave days) so reimbursement better reflects direct care costs; fiscal note anticipated additional state and federal revenue-offsets stemming from the rule changes.

- Senate Bill 02/1956 — NDSU Research & Technology Park funding (amendment reduced request)
- Amendment: The committee amended the request from $20,000,000 to $15,000,000 for product design, prototyping and facility improvements tied to a plan to develop commercial automation and robotics capabilities. The amendment passed (roll call recorded as Motion passed 15 yes, 0 no, 1 absent).
- Final action: Committee approved a due-pass as amended (final recorded vote 13 yes, 2 no, 1 absent). Sponsor and supporters described the appropriation as one-time seed funding (SIF transfer) rather than an ongoing base appropriation.

- Senate Bill 02/2271 — Adult residential facilities (dementia/brain injury basic care)
- Amendment: Committee removed proposed inflation adjustments and a 5% operating margin from the bill so those items could be addressed during the broader Department of Human Services budget discussion; retained provisions requiring cost reports from adult residential facilities. Amendment passed and committee adopted due-pass (final recorded vote 15 yes, 0 no, 1 absent). The amendment also clarified matching federal funds for the appropriation.

- Senate Bill 02/1952 — Pilot program to allow incarcerated mothers to keep infants in custody (program details)
- Action: Committee adopted a due-pass recommendation (final recorded vote 13 yes, 1 no, 2 absent). The judiciary committee amendment removed proposed liability protections and retained the program authorization. Fiscal note projects up to $100,000 in anticipated costs in the 2027–29 biennium for basic infant care items; sponsors said much of the operational support (diapers, supplies, community donations) is expected to be covered through community contributions and 4E funds.

- Senate Bill 02/2231 — Add dental services to Medicaid expansion
- Action: Committee approved a due-pass recommendation (final recorded vote 13 yes, 1 no, 2 absent). The bill would add coverage for dental services under Medicaid expansion with FY fiscal impacts shown in the fiscal note (general fund roughly $500,000 in the upcoming biennium and additional federal funds per the expansion match).

- Senate Bill 02/1936 — Juvenile competency and assessment process
- Amendment: Committee sharply reduced an original multi-million dollar request to a smaller, $500,000 implementation scope after interim study findings showed only a small number of cases statewide would require expanded capacity; amendment passed on roll call (14 yes, 0 no, 2 absent). Committee then adopted a due-pass as amended (final recorded vote 12 yes, 1 no, 3 absent).

- Senate Bill 02/2097 — Rural community endowment fund
- Amendment: Committee reduced the requested endowment investment from $50,000,000 to an initial $5,000,000 and removed a $5,000,000 immediate grant-making line so no grants would be available until 2027. Committee adopted the amendment and then a due-pass as amended (final recorded vote recorded as Motion carries). Members cited the need to start a fund while balancing current biennium budget constraints; committee discussion noted other pending legislation that would address grant programs through regional councils.

What members asked for next: Committee chairs and members repeatedly requested written project reports, fiscal carryover language and clarity on carryforward authority for funds before final passage of larger appropriations (particularly the $25 million ag diversification fund). Several sponsors agreed to circulate booklets or project lists and to follow up with staff so members could review outcomes before final votes.

Quotes from the record
"If I understood the question ... the 25,000,000 is for interest buy down and for grants," Doug Goring, North Dakota Agriculture Commissioner, said when asked how the appropriation would be used.

"We picked a number out of the air. Basically, we felt 350,000 was too much, but I wanted to keep some funding in there for this independent audit..." Senator Dwyer said when explaining why the Commerce audit funding was reduced to $200,000.

Next steps: Several bills were carried forward to the Appropriations agenda Wednesday at 8:30 a.m., when committee members said they expected to receive supplemental materials (project reports, booklets, and scope notes) from agencies. The committee chair said members should expect more division work Tuesday to prepare for additional votes later in the week.

Ending: The committee adjourned with more than 30 bills remaining on its docket; members said they expect to spend additional days in divisions and possibly reconvene to finish work before floor deadlines.