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HB 1161

A BILL for an Act to create and enact a new section to chapter 15-10 of the North Dakota Century Code, relating to funding for newly created full-time equivalent positions at institutions under the control of the state board of higher education.

69th Legislative Assembly (2025-26) Introduced by Brad Bekkedahl and 4 co-sponsors

Creates a central pool of unspent general-fund FTE authority for North Dakota public colleges and universities to fund vacant/newly created positions or temporary staff during the biennium.

Second reading, failed to pass, yeas 0 nays 44
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Bill Summary · HB 1161

HB 1161 — Summary (North Dakota)

Status: Second reading — failed to pass (yeas 0, nays 44)
Introduced: November 12, 2024
Primary sponsors (bill text): Representatives Murphy, Schreiber‑Beck, Warrey; Senators Bekkedahl, Dever

Main purpose

Create a new statutory mechanism for managing and reallocating general‑fund appropriation authority tied to vacant and newly created full‑time equivalent (FTE) positions at institutions governed by the State Board of Higher Education. The bill aims to centralize unused FTE appropriation authority into a designated pool so institutions can request funding to fill positions or hire temporary staff during the biennium.

Key provisions and changes

  • New section added to NDCC chapter 15‑10 establishing a "vacant/newly created FTE position funding pool."
  • Automatic transfer: On July 1 of each odd‑numbered year, each institution under the State Board must transfer all general fund appropriation authority for FTE positions identified as vacant and newly created as of the prior Dec. 1 (most recent even‑numbered year) into a central fund at the institution (or, in earlier drafts, to the Office of Management and Budget).
  • Pool maintenance: Institutions must maintain a designated portion of their general fund appropriation authority in this vacant‑position funding pool.
  • Request and allocation process:
    • An institution that transferred funds may request an allocation from the pool to cover salaries and wages for filling an FTE position that was vacant on Dec. 1 of the most recent even year (from hire date through the end of the biennium), or to fund a temporary employee as an alternative.
    • The Office of Management and Budget (OMB) may transfer pool funds to an institution only after the institution certifies that no federal or other funds are available for the position’s salaries/wages.
    • An institution cannot receive more from the pool than the amount it originally transferred.
    • In one version, OMB must transfer funds within 15 days of receiving a qualifying request and supporting documentation.
  • Reporting requirements:
    • Each institution must report to the State Board of Higher Education, and the State Board must report to each regular meeting of the Budget Section, on pool activity. Required information includes number of requests, amounts transferred, vacancy details (dates vacated/filled), and realized salary/wage savings or operational uses of funds.
  • Miscellaneous:
    • The bill as amended contains language clarifying the pool’s scope (vacant and newly created positions) and operational reporting.
    • The bill does not authorize new spending — it reallocates existing appropriation authority.

Who is affected

  • Institutions under the State Board of Higher Education (public colleges and universities in North Dakota) — administrative control over unspent FTE appropriation authority and a new mechanism to fund hires or temporary staffing during the biennium.
  • Office of Management and Budget (if OMB role retained in the enacted version) — oversight/transfer authority and processing of allocation requests.
  • State Board of Higher Education and the Budget Section — new reporting duties.
  • Employees and hiring processes at affected institutions — potential to speed hiring or permit temporary staffing using pooled appropriation authority.

Procedural/timeline notes

  • Key timing built into the bill:
    • Dec. 1 (even‑numbered year): cutoff date for identifying vacant/newly created positions.
    • July 1 (odd‑numbered year): transfer of appropriation authority into the pool.
    • OMB transfer deadline (in some drafts): within 15 days of a qualifying request.
  • Legislative history (selected): Education Committee adopted proposed amendments (Feb. 18, 2025). According to the supplied status, the bill reached second reading but failed to pass (0 yeas, 44 nays).

Potential fiscal/administrative impact

  • Fiscal: The bill reallocates existing appropriation authority rather than creating new appropriations; net state spending is not directly increased. Actual fiscal impacts are likely administrative and depend on institutions’ use of the pool.
  • Administrative: Institutions and (if applicable) OMB would need processes for transferring, certifying, allocating, and reporting pool activity — producing some workload and possible one‑time systems changes.

Overall, HB 1161 sought to centralize and make more flexible use of appropriation authority tied to vacant or newly created FTE positions at public higher‑education institutions, while adding certification and reporting requirements — but it did not pass at second reading per the provided status.

Compiled from official sources — confirm details with the bill’s official record.

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