Legislative Update | April 4, 2025
Posted: Apr 04 2025
This Week at the Legislature
It might be helpful for Taylor Swift’s song Shake it Off to be filling the halls of the Capitol this week. As tensions and emotions continue to rise, especially amidst inter-chamber disputes, it’s clear the haters of some bills will just hate, hate, hate, hate. But we’ll continue to encourage legislative champions and allies that it’s gonna be alright and to just shake it off!
Tensions are seemingly reaching a critical mass as the Senate passed its own version of the Governor’s property tax proposal, setting up a showdown in the coming weeks. With the Senate’s passage, the lines have been drawn. Additionally, emotions ran deep during what will probably be the longest debate on a single bill the entire legislative session, the Attorney General’s truth-in-sentencing bill, which after nearly two hours of debate ultimately failed by a vote of 52-41. Another interesting tidbit from the week is that the House, for the first time this session, sustained Governor Armstrong’s veto regarding giving preference to the state prison’s manufacturing business that employs inmates, just a few days after the Senate successfully voted to override that veto.
The appropriations committees continue to kick out budget bills, which always are the last bills to be acted on in the session. Next week, some of the more major appropriations bills will likely be acted on, which gives credibility to the majority leaders’ suggestion that they’d like to adjourn by day 73 (of 80), which would put adjournment on April 30.
Hearings and Other Action this Week
HB 1584 – Pharmacy Benefit Managers
The Senate Industry and Business Committee heard HB 1584 Monday afternoon. HB 1584, sponsored by Rep Jim Kasper, relates to pharmacy benefits managers (PBMs) and is intended to remove the statutory protection for Employee Retirement Income Security Act (ERISA) health plans, thereby allowing modifications to PBM laws for the benefit of pharmacies. PBMs are intermediaries who sit between individuals and their health plans. PBMs enter contracts with benefit plans and insurers to provide beneficiaries with access to prescription drugs. HB 1584 seeks to remove self-funded health plans organized under the federal ERISA laws from the definition of “covered entity,” subjecting them to state imposed healthcare mandates which would include restrictions on how PBMs contract. Rep. Kasper, Mike Schwab of the North Dakota Pharmacy Association, and Don Larson representing N.F.I.B. testified in support. GNDC’s Arik Spenser and NDBA’s Rick Clayburgh testified in opposition, explaining how the bill will increase insurance costs. BCBS’s Megan Ruby and PBM representative also testified in opposition. Deputy Insurance Commissioner John Arnold testified in a neutral position, explaining the bill does not provide the Insurance Department with the resources to administer the bill. The hearing was closed without committee action.
On Wednesday afternoon, the Senate Industry and Business Committee reopened the hearing on HB 1584. Insurance Commissioner Jon Godfread testified that his department met with Rep. Kasper and Mike Schwab to craft amendments to address the department’s concerns. The amendments were explained and offered to the committee. It is important to note the amendments do nothing to address the fact that the bill will have an adverse effect on the premium and drug costs of employer health plans. The Committee adopted the amendments and gave the bill a 4-0 do-pass recommendation. The bill was rereferred to the Senate Appropriations Committee because the amendments added an appropriation for the Insurance Department. There is a hearing scheduled Monday morning in the Senate Appropriations - Government Operations Division.
HB 1259 – Eliminating Daylight Savings Time - UPDATE
HB 1259 eliminates Daylight Saving Time in North Dakota and establishes Standard Daylight time year-round. On Thursday morning, the Senate State and Local Government Committee amended the bill to make “daylight saving” the year-round time in North Dakota. In addition, they added a trigger making the changes effective only if Congress authorizes states to observe daylight saving time year-round and Minnesota, Montana, and South Dakota each have commenced the observance of daylight-saving time. The amendments were adopted 6-0 and the bill received a 6-0 do-pass recommendation. The bill now heads to the full Senate for its action.
HB 1278 – Establishment of Cash Management Committee - UPDATE
HB 1278, sponsored by Majority Leader Mike Lefor, provides for the establishment of a cash management committee to oversee the creation of a three-tier cash management plan for the immediate, intermediate, and long-term cash flow needs of the state. The Senate amended the changing the chair of the committee from the State Treasurer to the Governor. On Wednesday afternoon, the House concurred with the Senate changes and passed the bill 90-1. The bill now heads to the Governor for his signature.
HB 1447 – Virtual Currency Kiosks - UPDATE
HB 1447 is intended to regulate crypto-currency kiosk machines in North Dakota. On Wednesday afternoon, the House concurred with the Senate changes and passed the bill 83-8. The bill now heads to the Governor for his signature.
HB 1127 – DFI Agency Update Bill - UPDATE
HB 1127 updates and clarifies sections of the Century Code relating to the removal of financial institution officers, directors, and employees; and creates a new chapter 13-01.2 to address data security for non-banks. On Wednesday afternoon, the House concurred with the Senate changes and passed the bill 89-2. The bill now heads to the Governor for his signature.
Hearings The Week of April 7, 2025
4/7/2025 9:15 AM
SB 2225 – Priority – House Appropriations
A BILL for an Act to provide an appropriation to the department of commerce for a housing for opportunity, mobility, and empowerment program (HOME). The governor’s housing plan focuses on local political subdivisions, where a community decides the type of housing they need and which contractor they want to build the project. The community, state and developer each put up 1/3 of the cost for the infrastructure. Then, the contractor builds the project.
4/7/2025 10:00 AM
HB 1584 – Priority – Senate Appropriations - Government Operations Division
Relating to pharmacy benefits managers – the bill removes the exemption of a self-funded ERISA health plan from the pharmacy benefits management statutes.
NDBA 2025 Legislative Tracking Lists