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SB 2299

AN ACT to amend and reenact subsection 1 of section 54-10-14, subsection 1 of section 54-10-15, and sections 61-35-09 and 61-35-10 of the North Dakota Century Code, relating to oversight of water districts.

69th Legislative Assembly (2025-26) Introduced by Jose Castaneda and 5 co-sponsors

Imposes regular state audits of water districts and requires clearer, more transparent elections and bylaws, with member petitions triggering audits and ballot access.

Filed with Secretary Of State 04/03
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Bill Summary · SB 2299

Summary — SB 2299 (North Dakota) — Oversight of Water Districts

Status: Filed with Secretary of State 04/03/2025 (passed both chambers; sent to and signed by Governor per legislative actions)

Purpose
- Strengthen financial oversight and election transparency for water districts organized under chapter 61‑35 of the North Dakota Century Code by (1) subjecting them to regular state audits and (2) clarifying member nomination, election, and bylaws procedures.

Key provisions and changes
1. State auditor audits (amends NDCC §54‑10‑14(1))
- Adds “water districts subject to chapter 61‑35” to the list of political subdivisions the state auditor must audit once every two years.

  1. Audit petitions for water districts (amends NDCC §54‑10‑15(1))

    • Authorizes the state auditor to perform audits or reviews of water districts upon petition by participating members.
    • Establishes a petition threshold for water districts of either 10% of participating members or 300 participating members, whichever is fewer. (Fees for such audits are payable as provided in §54‑10‑14.)

  2. Bylaws and nominations (amends NDCC §61‑35‑09)

    • Requires districts to submit proposed bylaws within 30 days after the original board election and to provide annual meetings and advance notice.
    • Requires bylaws to entitle each participating member one vote per benefit unit.
    • Establishes candidate nomination by petition: a participating member seeking election must submit a petition with signatures of 10 participating members. Petitions must be submitted at least 45 days before the election (or by the district’s established mail‑election deadline). Qualified petitioners must be added to the ballot.

  3. Director terms, vacancies, and election procedures (amends NDCC §61‑35‑10)

    • Confirms initial boards divide members into three classes for staggered terms; successors serve three‑year terms.
    • Vacancies are filled by appointment of remaining directors until the next annual meeting, when members elect a director for the unexpired term.
    • Requires elections to be conducted so participating members can access and observe all stages of the election (voting and tabulation) in a uniform, nondiscriminatory manner.

Who is affected
- Water districts organized under NDCC chapter 61‑35 and their participating members.
- State Auditor’s Office (new audit responsibilities).
- County auditors and district boards (election administration and vacancy procedures).
- Members of water districts (easier petition access to trigger audits; clarified nomination and election rights).

Procedural/timeline notes
- Water districts added to the biennial audit cycle (every two years).
- Candidate petitions: minimum 10 signatures; submitted ≥45 days before election.
- Annual meeting notice: must be mailed to participating members and published in county official paper 10–30 days before meeting.
- Petition threshold to trigger state audit: 10% of participating members or 300 members (whichever is fewer).

Practical impact
- Increases financial oversight of water districts by mandating regular state audits and lowering/clarifying the petition threshold to request an audit.
- Expands and clarifies member rights in governance: candidate access to ballots, deadlines, and transparency of election procedures.
- Imposes procedural requirements on districts to ensure clearer, more observable elections and consistent bylaws/meeting notices.

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

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