Property; Prohibition of Unfair Service Agreements Act; recording; notice; residential real estate owners; title companies; void if recorded; effective date.

2025 Regular Session Introduced by Aaron Reinhardt and 1 co-sponsor

ND HB 1177 expands PERS to include correctional trainees enrolled in approved courses as active members from hire, before certification, boosting contributions and coverage.

Second Reading referred to Business and Insurance

Purpose / Intent

The bill clarifies and expands the statutory definition of “correctional officer” used to determine membership in the Public Employees Retirement System (PERS). Its intent is to explicitly include certain correctional facility employees who are in approved training programs but have not yet completed certification.

Key provisions

Amends NDCC § 54‑52‑01(3) (the PERS definitional section for “correctional officer”).

New/updated definition: a “correctional officer” is a participating member employed as a correctional officer by a political subdivision, and the term explicitly includes an individual employed by a correctional facility (as defined in NDCC § 12‑44.1‑01) who is enrolled in — but has not yet completed — a correctional officer course approved or certified by the North Dakota Department of Corrections and Rehabilitation.

(Exact amended language is included in the bill text.)

Who is affected

Employees of political subdivisions employed as correctional officers (county/jail staff, municipal corrections personnel, etc.).

Employees of correctional facilities (per NDCC § 12‑44.1‑01) who are currently enrolled in an approved/certified correctional officer training course but have not yet completed it.

Employers (political subdivisions) who hire such employees.

PERS — membership rolls, contribution collection, and benefit administration.

Likely impacts and implications

Administrative: Persons enrolled in approved training programs would be explicitly treated as PERS participating members from the point of employment even before course completion. Employers and PERS would need to record membership and begin contributions accordingly.

Fiscal/actuarial: Bringing trainees into PERS membership earlier could increase employer and employee contribution collections but may also increase short‑ and long‑term pension liabilities (depending on timing of vesting and benefit accrual rules). No fiscal estimate or actuarial analysis is included in the provided text.

Operational: The Department of Corrections and Rehabilitation’s role in approving/certifying courses remains central to determining which trainees are covered.

Procedural / timeline status

Introduced (per provided header): 11/12/2024.

Recorded as filed with Secretary of State: 03/24 (year not specified in the excerpt).

The bill text as provided does not state a specific effective date. (If enacted, the effective date would be determined by the final enrolled act or applicable statutory rules.)

Notes

The amendment is narrowly targeted to statutory definition language and does not itself change PERS benefit formulas, vesting rules, or contribution rates — but it changes who is classified as a PERS member, which can have downstream financial and administrative effects.

For precise fiscal impact, an actuarial analysis or fiscal note from PERS or the state budget office would be needed.

Bill