Taxes, Alcoholic Beverages - As introduced, deletes an obsolete provision relating to a tax credit for beer or ale that was destroyed in a flood occurring between May 1, 2010, and May 8, 2010. - Amends TCA Title 57 and Title 67.

114th Regular Session (2025-2026) Introduced by Ron Travis

Creates a Tribal Health Care Coordination Fund to distribute state money to ND tribes for CDC public health services and CHR programs, with audits, reporting, and compliance rules.

Taken off notice for cal in s/c Departments & Agencies Subcommittee of State & Local Government Committee

#alcoholicbeverages #taxes

Purpose / Intent

HB 1252 amends subsection 3 of section 50‑24.1‑40 of the North Dakota Century Code to clarify the rules governing the tribal health care coordination fund. The changes set conditions on how fund distributions to tribal governments may be used, establish reporting and audit requirements, define distribution timing and proportion rules, and provide enforcement mechanisms for misuse or noncompliance.

Key provisions

Establishes the tribal health care coordination fund in the state treasury and makes moneys in the fund continuously appropriated to the (statutorily designated) department for distribution to tribal governments under written agreements.

Permitted uses: funds must be used for purposes related to the ten essential public health services identified by the CDC and for development or enhancement of community health representative programs or services.

Limits on capital construction: through June 30, 2027, no more than 50% of distributed funds may be used for capital construction; thereafter the cap is 35%.

Reporting and audit requirements:

Tribal governments must submit annual reports to the department detailing use of distributed funds.
Tribal governments must submit an independent CPA audit report every two years (tribes may use fund money to pay for the audit); tribes may opt for more frequent audits.

Distribution formula and timing:

Distributions to tribes must be proportional to the federal funding the state receives from care‑coordination agreement requests arising from within each tribal nation.
The department shall distribute funds at least annually after completing any required auditing and verification steps.

Compliance and enforcement:

If a tribe fails to file required annual reports or audits on time, the department will withhold distributions until the reports are filed.
If an audit or department review finds improper use, the department will withhold future distributions in an amount equal to the funds used improperly; withheld funds will be released if a later audit shows compliant use.

Who is affected

Tribal governments in North Dakota that receive distributions from the tribal health care coordination fund.

The state department charged by statute with administering the fund (and its auditing/verification responsibilities).

Indirectly, programs and residents served by tribal public‑health and community health representative programs.

Procedural / timeline notes

Introduced: November 12, 2024.

Legislative action: Passed both chambers (House vote recorded 90–0; Senate 44–1 in enrollment record).

Governor’s approval / filing: Signed by the Governor March 17, 2025; filed with the Secretary of State March 18, 2025. Legislative records later note Act number (Act 965) and enrollment completion in April 2025.

Implementation: The statutory amendments take effect according to standard statute‑effective provisions (see enrolled act for exact effective date).

Implementation considerations

Department will need processes for proportionate allocation tied to federal care‑coordination receipts, annual distribution scheduling, report and audit intake/review, and mechanisms to track and withhold funds when required.

Tribal governments should prepare to comply with reporting and audit cycles and to account for capital‑construction limits.

Bill