North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1265 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	25.0918.03000
	1	+	25.0918.01001
	2	+	Title.02000
	3	+	Adopted by the Education Committee
2	4		Sixty-ninth
	5	+	January 30, 2025
3	6		Legislative Assembly
4	7		of North Dakota
5	8		Introduced by
6	9		Representatives Christy, Foss, Hanson, Stemen, Toman, Warrey, O'Brien
7	10		Senators Meyer, Sickler, Davison
8	11		A BILL for an Act to create and enact a new section to chapter 15-11 and a new chapter to
9	12		title 54 of the North Dakota Century Code, relating to the state information technology research
10	13		center, advanced technology review committee, compute credits grant program, and advanced
11		-	technology grant fund.
	14	+	technology grant fund; to provide for a transfer; and to provide an appropriation.
12	15		BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
13	16		SECTION 1. A new section to chapter 15-11 of the North Dakota Century Code is created
14	17		and enacted as follows:
15	18		State information technology research center - Report.
16		-	1.The state information technology research center is ~~created to conduct exploratory,~~
17		-	transformational, and innovative research to promote ~~the development of data~~
18		-	science, data analysis, software engineering, and advanced ~~information technology in~~
19		-	the state.
	19	+	1.The state information technology research center at the university of North Dakota is
	20	+	created to conduct exploratory, transformational, and innovative research to promote
	21	+	the development of data science, data analysis, software engineering, and advanced
	22	+	information technology in the state.
20	23		2.To carry out the purposes of this section, the state information technology research
21	24		center must operate as a collaborative virtual center . The state information technology
22	25		center may:
23	26		a.Select the research topics and projects to be pursued;
24	27		b.Enter contracts or agreements with other North Dakota institutions of higher
25	28		education, the information technology department, and federal, private, and
26	29		nonprofit organizations to support research topics and projects;
27		-	c.Assist in the development of advanced technology solutions, including artificial
28		-	intelligence, machine learning, quantum computing, digital literacy, and
29		-	cybersecurity initiatives;
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31		-	REENGROSSED HOUSE BILL NO. 1265
32		-	SECOND ENGROSSMENT
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	31	+	HOUSE BILL NO. 1265
	32	+	PROPOSED AMENDMENTS TO
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	53	+	c.Assist in the development of advanced technology solutions, including artificial
	54	+	intelligence, machine learning, quantum computing, digital literacy, and
	55	+	cybersecurity initiatives;
56	56		d.Encourage the establishment of data centers in the state to enhance advanced
57	57		technology products and initiatives;
58	58		e.Use existing staff resources, to the extent authorized by legislative
59	59		appropriations, between participating state agencies for the purpose of advancing
60	60		research and development of projects selected under this section; and
61	61		f.Accept donations, grants, contributions, and gifts from any source to carry out the
62	62		selected research topics and projects, which must be deposited in the advanced
63	63		technology grant fund.
64	64		3.The state information technology research center shall report all research activities
65	65		and accomplishments by October first of each year to the legislative management's
66	66		information technology committee. Upon request, the state information technology
67	67		research center shall report all research activities and accomplishments to the
68	68		appropriations committees of the legislative assembly.
69	69		SECTION 2. A new chapter to title 54 of the North Dakota Century Code is created and
70	70		enacted as follows:
71	71		Definitions
72	72		In this chapter, unless the context otherwise requires:
73	73		1."Chief information officer" means the chief information officer of the information
74	74		technology department.
75	75		2."Commissioner" means the commissioner of the department of commerce.
76	76		3."Committee" means the advanced technology review committee.
77	77		4." Department " means the information technology department.
78	78		5."Vice chancellor for information technology" means the chief information officer and
79	79		vice chancellor for information technology of the North Dakota university system.
80	80		Advanced technology review committee - Membership - Meetings.
81	81		1.The advanced technology review committee consists of:
82	82		a.The chief information officer or a designee within the information technology
83	83		department;
84		-	b.The vice chancellor for information technology or a designee within the North
85		-	Dakota university system;
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118		-	c.One individual from the private sector with significant information and advanced
119		-	technology knowledge, appointed by the governor;
120		-	d.One individual from the private sector with significant information and advanced
121		-	technology knowledge, appointed by the majority leader of the house of
122		-	representatives;
123		-	e.One individual from the private sector with significant information and advanced
124		-	technology knowledge, appointed by the majority leader of the senate; and
125		-	f.The commissioner, or a designee within the department of commerce, who shall
126		-	serve as a nonvoting member of the committee and provide recommendations to
127		-	the committee regarding grant awards.
128		-	g.The executive director of a digital academy administered by the North Dakota
129		-	university system.
130		-	2.By July first of each odd - numbered year, the chief information officer and vice
131		-	chancellor for information technology shall compile a list of individuals with significant
132		-	private sector information and advanced technology knowledge working within the
133		-	state to be forwarded to the governor and the majority leaders of the house of
134		-	representatives and senate. The governor and the majority leaders of the house of
135		-	representatives and senate must consider the listed individuals for committee
136		-	membership appointments.
137		-	3.The chief information officer, vice chancellor for information technology, and
138		-	commissioner are permanent members of the committee. The term of office of the
139		-	members of the committee appointed from the private sector is four years except the
140		-	initial term of office of the individual appointed by the majority leader of the senate is
141		-	three years and the initial term of office of the individual appointed by the governor is
142		-	two years. Each term of office commences on August first. Members serve at the
143		-	pleasure of the appointing entity and may be reappointed for additional terms. By
144		-	August first of each year, the chairman of the legislative management shall select one
145		-	of the appointed members to serve as the chairman of the committee. The chairman of
146		-	the committee shall select a vice chair. If a committee member ceases to qualify as a
147		-	member of the appointing entity, that individual's membership on the committee
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180		-	ceases immediately and the appointing entity shall appoint a new member to the
181		-	committee for the remainder of the term.
182		-	4.A committee member representing the private sector is entitled to receive
183		-	compensation in an amount not exceeding one hundred thirty - five dollars per day and
184		-	travel and expense reimbursement as provided by law for state officers for attending
185		-	meetings of the committee, to be paid by the department within the limits of legislative
186		-	appropriations.
187		-	5.The committee shall meet at the call of the chairman to review and approve grant
188		-	applications from entrepreneurs, startup companies, and small businesses that are in
189		-	the initial phases of advanced technology product research, development, and
190		-	innovation and are unable to access financial resources for prototype product
191		-	development.
192		-	Compute credits grant program - Eligibility - Use of funds.
193		-	1.The department shall administer the compute credits grant program to provide grants
194		-	for activities identified in this chapter. The department shall provide administrative
195		-	support for the program, including the drafting of application forms, receiving
196		-	applications, reviewing applications for completeness and compliance with committee
197		-	policy, and forwarding complete applications to the committee in accordance with the
198		-	guidelines established by the committee.
199		-	2.The committee shall establish guidelines for entities to qualify for a compute credits
200		-	grant under this section.
201		-	3.In determining whether to approve an application for grant funding, the committee
202		-	shall consider the extent to which the applicant's proposal will support the
203		-	development of advanced technology solutions, including artificial intelligence,
204		-	machine learning, quantum computing, digital literacy, and cybersecurity initiatives.
205		-	The committee shall give priority to applications with a greater likelihood of attracting
206		-	other information technology businesses to the state. The committee shall consider
207		-	and process applications in a timely manner to allow applicants an opportunity to
208		-	leverage other funds.
209		-	4.Grant recipients shall use funding awarded under this section for the cost of increased
210		-	compute credits and central processing unit storage capacity that promotes the
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	117	+	b.The vice chancellor for information technology or a designee within the North
	118	+	Dakota university system;
	119	+	c.One individual from the private sector with significant information and advanced
	120	+	technology knowledge, appointed by the governor;
	121	+	d.One individual from the private sector with significant information and advanced
	122	+	technology knowledge, appointed by the majority leader of the house of
	123	+	representatives;
	124	+	e.One individual from the private sector with significant information and advanced
	125	+	technology knowledge, appointed by the majority leader of the senate; and
	126	+	f.The commissioner, or a designee within the department of commerce, who shall
	127	+	serve as a nonvoting member of the committee and provide recommendations to
	128	+	the committee regarding grant awards.
	129	+	g. The executive director of a digital academy administered by the North Dakota
	130	+	university system.
	131	+	2.By July first of each odd - numbered year, the chief information officer and vice
	132	+	chancellor for information technology shall compile a list of individuals with significant
	133	+	private sector information and advanced technology knowledge working within the
	134	+	state to be forwarded to the governor and the majority leaders of the house of
	135	+	representatives and senate. The governor and the majority leaders of the house of
	136	+	representatives and senate must consider the listed individuals for committee
	137	+	membership appointments.
	138	+	3.The chief information officer, vice chancellor for information technology, and
	139	+	commissioner are permanent members of the committee. The term of office of the
	140	+	members of the committee appointed from the private sector is four years except the
	141	+	initial term of office of the individual appointed by the majority leader of the senate is
	142	+	three years and the initial term of office of the individual appointed by the governor is
	143	+	two years. Each term of office commences on August first. Members serve at the
	144	+	pleasure of the appointing entity and may be reappointed for additional terms. By
	145	+	August first of each year, the chairman of the legislative management shall select one
	146	+	of the appointed members to serve as the chairman of the committee. The chairman of
	147	+	the committee shall select a vice chair. If a committee member ceases to qualify as a
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	181	+	member of the appointing entity, that individual's membership on the committee
	182	+	ceases immediately and the appointing entity shall appoint a new member to the
	183	+	committee for the remainder of the term.
	184	+	4.A committee member representing the private sector is entitled to receive
	185	+	compensation in an amount not exceeding one hundred thirty - five dollars per day and
	186	+	travel and expense reimbursement as provided by law for state officers for attending
	187	+	meetings of the committee, to be paid by the department within the limits of legislative
	188	+	appropriations.
	189	+	5.The committee shall meet at the call of the chairman to review and approve grant
	190	+	applications from entrepreneurs, startup companies, and small businesses that are in
	191	+	the initial phases of advanced technology product research, development, and
	192	+	innovation and are unable to access financial resources for prototype product
	193	+	development.
	194	+	Compute credits grant program - Eligibility - Use of funds.
	195	+	1.The department shall administer the compute credits grant program to provide grants
	196	+	for activities identified in this chapter. The department shall provide administrative
	197	+	support for the program, including the drafting of application forms, receiving
	198	+	applications, reviewing applications for completeness and compliance with committee
	199	+	policy, and forwarding complete applications to the committee in accordance with the
	200	+	guidelines established by the committee.
	201	+	2.The committee shall establish guidelines for entities to qualify for a compute credits
	202	+	grant under this section.
	203	+	3.In determining whether to approve an application for grant funding, the committee
	204	+	shall consider the extent to which the applicant's proposal will support the
	205	+	development of advanced technology solutions, including artificial intelligence,
	206	+	machine learning, quantum computing, digital literacy, and cybersecurity initiatives.
	207	+	The committee shall give priority to applications with a greater likelihood of attracting
	208	+	other information technology businesses to the state. The committee shall consider
	209	+	and process applications in a timely manner to allow applicants an opportunity to
	210	+	leverage other funds.
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	243	+	4.Grant recipients shall use funding awarded under this section for the cost of increased
	244	+	compute credits and central processing unit storage capacity that promotes the
244	245		program requirements in subsection 3 of this section . An entity receiving a grant under
245	246		this section may not use the funds for capital or building investments or other activities
246	247		not identified in this chapter. The funds may not be used for administrative costs or to
247	248		supplant funding for regular operations of the entity. If an entity awarded a grant no
248	249		longer conducts its activities in the state, the entity must repay the awarded grant
249	250		funding to department .
250	251		Advanced technology grant fund.
251	252		The advanced technology grant fund is a special fund in the state treasury administered by
252	253		the department. Moneys in the fund must be used for providing grants and for the payment of
253	254		committee and department administrative expenses incurred related to the requirements of this
254	255		chapter, subject to legislative appropriations. Interest earned on moneys in the fund must be
255	256		credited to the fund.
256	257		Compute credits grant program - Post-award monitoring
257	258		Upon completion of work performed from funding provided by a compute credits grant or
258	259		research completed by state information technology research center, the department shall
259	260		conduct an independent review of the results. Evaluation criteria may include how the work
260	261		performed has:
261	262		1.Promoted the development of advanced technology solutions , including artificial
262	263		intelligence, machine learning, quantum computing, digital literacy, and cybersecurity
263	264		initiatives;
264	265		2.Enhanced the ability of a company to make investments in the state, or otherwise
265	266		enticed a company to invest in or move to the state;
266	267		3.Led to a patent or research that is commercially viable; or
267	268		4.Positively affected workforce in the state.
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	269	+	SECTION 3. TRANSFER - STRATEGIC INVESTMENT AND IMPROVEMENTS FUND TO
	270	+	ADVANCED TECHNOLOGY GRANT FUND. The office of management and budget shall
	271	+	transfer $5,000,000 from the strategic investment and improvements fund to the advanced
	272	+	technology grant fund during the biennium beginning July 1, 2025, and ending June 30, 2027.
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	305	+	SECTION 4. APPROPRIATION - INFORMATION TECHNOLOGY DEPARTMENT -
	306	+	COMPUTE CREDITS GRANT PROGRAM - ONE -TIME FUNDING. There is appropriated out of
	307	+	any moneys in the advanced technology grant fund in the state treasury, not otherwise
	308	+	appropriated, the sum of $5,000,000, or so much of the sum as may be necessary, to the
	309	+	information technology department for the purpose of the compute credits grant program, for
	310	+	the biennium beginning July 1, 2025, and ending June 30, 2027. This funding is considered a
	311	+	one-time funding item.
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