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SB 2045

AN ACT to amend and reenact sections 43-07-12 and 48-01.2-05 of the North Dakota Century Code, relating to a bidding exception for water supply funds and contents of advertisement for public improvement projects.

69th Legislative Assembly (2025-26)

SB 2045 allows a limited post-bid licensing window (20 days) for PL 99-294 funded water projects, with explicit ad language and bid rejection if license isn’t obtained.

Filed with Secretary Of State 03/18
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Bill Summary · SB 2045

Summary — SB 2045 (North Dakota)

Status: Filed with Secretary of State 03/18/2025. Introduced March 7, 2025. Sponsor: Sen. Chris Balkema. Requested by: Department of Water Resources. Amends North Dakota Century Code §§ 43-07-12 and 48-01.2-05.

Purpose

To create a limited bidding/license exception for public construction projects financed with certain federal municipal, rural, and industrial water supply funds (Public Law No. 99-294; 43 U.S.C. 390a) and to require specific advertisement language for public improvement project bids reflecting that exception.

Key provisions

  • Amends section 43-07-12 (bidding/license showing)

    • Retains general requirement that bidders enclose their current contractor license/certificate in the bid bond envelope and that contractors hold the proper class license at least 10 days before bids are received.
    • Adds an explicit exception: the licensing requirement does not apply to bids submitted for projects using municipal, rural, and industrial water supply funds authorized by Public Law No. 99-294 (43 U.S.C. 390a). (Section also lists other preexisting exceptions for Dept. of Transportation, Public Service Commission, and federal-aid highway funds.)

  • Amends section 48-01.2-05 (contents of advertisement)

    • Continues to require ads to state nature/location of work; where plans/specs may be examined; place/date/time bids will be opened.
    • Requires each bid to be accompanied by a separate envelope containing the contractor’s license and bid security (bid security = 5% of bid; bidder’s bond executed by bidder and surety; countersignature not required).
    • Clarifies licensing requirements in advertisements:
    • Generally, bidders must be licensed for the full amount of the bid as required by §43-07-12.
    • For projects using funds under PL 99-294, the advertisement must state that a bidder who is the lowest responsible bidder must obtain a contractor’s license for the full amount of the bid within 20 days after being declared lowest responsible bidder; otherwise the bid will be rejected and the contract awarded to the next lowest responsible bidder.
    • Reiterates that noncompliant bids will not be read and may be returned; governing body may reject all bids and rebid.

Who is affected

  • Contractors bidding on public improvement projects in North Dakota — especially those pursuing municipal, rural, or industrial water supply projects funded under PL 99-294.
  • Local governments and other public entities that advertise and award public construction contracts (those entities must include the required advertisement language and follow the altered licensing timeline for PL 99-294 projects).
  • Department of Water Resources (bill requested by the Department) and regulators responsible for contractor licensing and public contracting compliance.

Procedural/timeline notes

  • Bill amends NDCC §§ 43-07-12 and 48-01.2-05.
  • Committee report and amendments were adopted at the request of the Department of Water Resources.
  • Sponsor: Sen. Chris Balkema.
  • Key dates in the legislative record include introduction and committee consideration in early 2025, referral to State Affairs, and filing with the Secretary of State on 03/18/2025.

Practical effect

SB 2045 preserves the state’s standard contractor licensing/bid-bond requirements for most public projects but permits a limited post-bid licensing window (20 days to obtain full license) for projects funded under federal municipal/rural/industrial water supply authorities (PL 99-294). This is intended to expand bidding eligibility for those federally funded water supply projects while requiring explicit public-advertisement notice and a mechanism to reject bids if license is not obtained.

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

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