North Dakota 2025-2026 Regular Session

North Dakota Senate Bill SB2158

Introduced
1/7/25  
Refer
1/7/25  
Engrossed
1/24/25  
Refer
2/13/25  
Report DNP
3/28/25  
Enrolled
4/11/25  

Caption

The distribution of the unobligated cash balance of a dissolved school district.

Impact

This legislation will hold significant implications for the management of financial resources following the dissolution of school districts. By restructuring the distribution of cash balances, the bill is designed to protect the interests of property owners, ensuring that they do not lose out financially due to administrative changes. The cash credit system aims to maintain taxpayer equity while also providing a pathway for former residents of the dissolved districts to reclaim some value from the funds that were previously allocated to their school districts. This could lead to a more streamlined process for property tax adjustments in the aftermath of a district's dissolution.

Summary

Senate Bill 2158 aims to amend the existing laws regarding the distribution of unobligated cash balances from dissolved school districts in North Dakota. It specifically outlines the procedure for how cash balances should be allocated to real property owners whose properties were previously within the boundaries of a dissolved district. The bill ensures that, after specific funds are set aside, any remaining cash balance will serve as a tax credit against taxes levied by the new district to which the properties have been attached. It also allows for optional cash refunds to property owners under certain conditions, potentially providing them with immediate financial benefits from the dissolution process.

Sentiment

The overall sentiment surrounding SB2158 appears to be supportive among its sponsors and backers, mainly due to its perceived fairness in rewarding property owners impacted by school district dissolutions. Advocates suggest that it corrects potential inequities in how funds are managed and distributed post-dissolution. However, there are likely to be concerns raised about the effectiveness of the proposed system, particularly regarding implementation and fairness across varying regions, which could foster a dialogue among legislative members and stakeholders alike.

Contention

Noteworthy points of contention may arise around the interpretation and execution of the terms laid out in the bill. Some legislators may dispute the adequacy of the provisions for distributing cash balances, questioning whether they ensure equitable treatment across all affected property owners and whether they adequately safeguard against complications related to tax obligations. The bill's framework may invite scrutiny over the balance it aims to strike between providing financial relief and adhering to established taxation policies, thereby setting the stage for further discussions on school funding and district financial stabilizations.

Companion Bills

No companion bills found.

Previously Filed As

ND HB1238

Extending the moratorium on the unobligated general fund balance deductions from state aid formula payments; and to provide for a legislative management study regarding the impact of the ending fund balance on school credit and school efficacy.

ND SB2284

School district enrollment, the definition of "probationary teacher", a school district's policy governing possession of a weapon, the definition of "dangerous weapon", modification of weighting factors, transition maximums and an increase in per student payments, and the school construction revolving loan fund; to provide for a legislative management study; to provide a legislative management report; to provide an appropriation; to provide for an exemption; to provide for a transfer; and to provide an effective date.

ND SB2309

Determination of state school aid, information displayed on property tax statements, transfer of legacy fund earnings, and deposit of oil and gas tax revenues; and to provide an effective date.

ND SB2008

The salaries of the public service commissioners, the transfer and distribution of funds in the highway tax distribution fund, and siting process administrative fees; to provide a transfer; and to declare an emergency.

ND SB2398

Baseline funding and the determination of state school aid, loans from the coal development trust fund, and evidences of indebtedness; to provide an appropriation; to provide for retroactive application; and to provide an effective date.

ND HB1365

Rural ambulance service district formation, organization, board of director powers, levies, and dissolution and withdrawal procedures, ambulance operations areas, authorization and state financial assistance for emergency medical services, and county emergency medical service levies.

ND SB2015

A transfer of Bank of North Dakota profits to a water infrastructure revolving loan fund; to provide for a transfer; to provide an exemption; to provide for a legislative management study; to provide a report; to provide a penalty; to provide for application; to provide a retroactive effective date; to provide a contingent effective date; to provide an effective date; and to declare an emergency.

ND HB1380

Determination of state school aid; to provide an appropriation; and to provide an effective date.

ND SB2066

The imposition of a flat income tax rate for individuals, estates, and trusts; to provide an effective date; and to provide an expiration date.

ND SB2013

The salary of the superintendent of public instruction, baseline funding, high-cost students, and regional library cooperative definitions; to provide for a transfer; to provide for reports; to provide an exemption; to provide an effective date; and to declare an emergency.

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