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HB 1303

Public finance; government entities; non-disclosure agreements; effective date.

2025 Regular Session Introduced by Andy Fugate

Prohibits sanctuary policies and empowers the AG to investigate, with withheld state aid and a Sanctuary Compliance Fund to penalize and potentially restore funding for violators.

Second Reading referred to Rules
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Bill Summary · HB 1303

HB 1303 — North Dakota (2025)

Summary: Amendment to NDCC §44‑08‑25; prohibition on “sanctuary” policies, enforcement mechanisms, creation of a Sanctuary Compliance Fund, and related procedural provisions.

Main purpose / intent

To strengthen and clarify North Dakota’s prohibition on sanctuary policies by (1) defining prohibited “sanctuary policy” actions, (2) authorizing the Attorney General to investigate and issue findings, (3) creating a Sanctuary Compliance Fund to receive withheld state aid from jurisdictions found in violation, and (4) providing administrative sanctions (including withholding of funds and limits on bond approvals). The act also declares any sanctuary policy void and includes a continuing appropriation for the newly created fund.

Key provisions

  • Definition: "Sanctuary policy" includes any formal or informal policy or ordinance that, among other things:

    • Limits or prohibits state/local officials from communicating or cooperating with federal immigration authorities about immigration status;
    • Grants unlawful presence/status rights contrary to federal law;
    • Violates 8 U.S.C. §1373 (communications with federal immigration authorities);
    • Restricts cooperation with U.S. Immigration and Customs Enforcement (ICE) to maintain custody / transfer of noncitizens;
    • Prevents law‑enforcement officers from asking custody persons about citizenship/immigration status.

  • Prohibition: State agencies, political subdivisions, and institutions of higher education (and their employees/agents) may not adopt or implement sanctuary policies.

  • Attorney General enforcement:

    • May investigate complaints and, if a violation is found, issue an opinion with specific findings describing the sanctuary policy.
    • After issuance, the AG must notify the implicated political subdivision and relevant state fiscal authorities.
    • If the political subdivision demonstrates compliance, the AG will issue a second opinion stating the violation is remedied.

  • Financial sanctions and fund:

    • Within 30 days of the AG’s opinion, the AG directs the State Treasurer to withhold the political subdivision’s allocation from the State Aid Distribution Fund (per ND §57‑39.2‑26.1) and deposit withheld amounts into a newly created special fund called the “Sanctuary Compliance Fund.”
    • Money in the fund is appropriated on a continuing basis to the State Treasurer and may be distributed back to the political subdivision upon compliance, or to compliant political subdivisions, using existing distribution formulas/methods.

  • Other sanctions:

    • Bonds, notes, or other evidence of indebtedness of a violating political subdivision requiring Public Finance Authority approval may not be approved while a violation notice remains on file.
    • Any policy, order, or ordinance adopted in violation of the section is void.
    • Political subdivisions may appeal the AG’s opinion to district court or provide evidence within 30 days to show compliance.

Who is affected

  • Political subdivisions (cities, counties, towns), state agencies and departments, institutions of higher education under the state board of higher education, their officers and employees.
  • State Treasurer and Public Finance Authority (administrative duties re: withholding funds and bond approvals).
  • Local law enforcement policies and practices relating to questions about citizenship/immigration status.
  • Local governments that adopt policies limiting cooperation with federal immigration enforcement.

Procedural / timeline notes

  • Introduced (per file): Nov. 13, 2024. Legislative actions occurred during 2025 (committee referrals and floor votes).
  • Enrollment documents show House passage (82–11) and Senate passage (41–5).
  • Legislative record indicates Governor’s signature and filing with the Secretary of State in mid‑April 2025 (Act notification and filing dates noted in the record).
  • Political subdivisions have 30 days after receipt of an AG opinion to appeal to district court or to provide evidence of compliance.

Potential impacts / considerations

  • Immediate practical effect: removes legal protection for local “non‑cooperation” immigration policies and establishes financial and administrative levers to enforce compliance.
  • Local governments and higher‑education institutions may need to review and revise policies and practices to avoid AG scrutiny, withheld state aid, or denial of bond approvals.
  • The statute creates an administrative path (AG opinion → withholding) and a short judicial appeal window (30 days).
  • The bill’s enforcement is complaint‑driven and largely vested in the Attorney General’s discretion.

(Prepared from enacted/engrossed bill text, committee report, enrollment and legislative action records.)

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

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