HB 1013 — AN ACT to provide an appropriation for defraying the expenses of the department of public instruction, the center for distance education, the state library, the school for the deaf, and North Dakota vision services - school for the blind; to create and enact a new section to chapter 15.1-07 of the North Dakota Century Code, relating to the collection of free or reduced-price meal eligibility information; to amend and reenact sections 15.1-02-02 and 15.1-27-16 of the North Dakota Century Code, relating to the salary of the superintendent of public instruction and administrative cost-sharing; to provide for a transfer; to provide a report; to provide an exemption; and to provide an effective date.

State school aid payments for special education must be reduced by the amount of matching funds required to be paid by school districts or special education units for students participating in the Medicaid programprogram, for the biennium beginning July 1, 2025, and ending June 30, 2027.

SECTION 10.11.

The integrated formula payments line item in subdivision 1 of section 1 of this Act includes $700,000$600,000 from the general fund for the purpose of providing annual grants to regional education associations, for the biennium beginning July 1, 2025, and ending June 30, 2027.

SECTION 11.12.

The grants - program grants line item in subdivision 1 of section 1 of this Act includes $4,500,000$6,000,000 from the general fund for the purpose of providing grants to school districts to defray the expenses of providing meals, free of charge, for all students enrolled in public or nonpublic school at or below two hundred twenty-five percent of the federal poverty guideline, for the biennium beginning July 1, 2025, and ending June 30, 2027.

PageSECTION No.13.

6 25.0157.02000 Sixty-ninth Legislative Assembly SECTION 12.

SECTIONH. 13.

B.

NO.

1013 - PAGE 5 SECTION 14.

SECTION 14.15.

Notwithstanding section 54-44.1-15, the department of public instruction may deposit indirect Pagecost No.recoveries in its operating account.

7 25.0157.02000 Sixty-ninth Legislative Assembly cost recoveries in its operating account.

SECTION 15.16.

Notwithstanding section 54-44.1-11, if, after the superintendent of public instruction complies with all statutory payment obligations imposed for the 2023-25 biennium, from any moneys remaining in the integrated formula payments line item in subdivision 1 of section 1 of chapter 45 of the 2023 Session Laws, the lesser of $11,165,000$11,000,000 or the remaining amount must be continued into the 2025-27 biennium and the office of management and budget shall transfer this amount into the public instruction fund for the purpose of providing programintegrated andformula passthroughpayments grants as appropriated in subdivision 1 of section 1 of this Act.

SECTION 16.17.

SECTIONH. 17.

B.

NO.

1013 - PAGE 6 SECTION 18.

The sum of $150,000, appropriated from the general fund to the state library for building renovations in subdivision 3 of section 1 of chapter 45 of the 2023 Session Laws, is not subject to the Pageprovisions No.of section 54-44.1-11.

8 25.0157.02000 Sixty-ninth Legislative Assembly provisions of section 54-44.1-11.

SECTION 18.19.

SECTION 19.20.

SECTION 20.21.

PageSECTION No.22.

9A 25.0157.02000new section to chapter 15.1-07 of the North Dakota Century Code is created and enacted as follows:

Electronic collection of free or reduced-price meal eligibility information - Requirements.

1.

Each school district shall annually provide an electronic form to all parents or guardians of enrolled students to collect household income information necessary to determine eligibility for free or reduced-price meals under the national school lunch program and other relevant federal and state assistance programs.

2.

The electronic form must be made available to all parents or guardians at the beginning of the eligibility period or the beginning of each school year and must be designed to facilitate ease of completion and submission.

3.

A school district shall offer a paper form upon request of a parent or guardian who prefers a nonelectronic submission method.

SECTION 23.

AMENDMENT.

Section 15.1-27-16 of the North Dakota Century Code is amended and reenacted as follows:

15.1-27-16.

Per student payments - Administrative cost-sharing - Cooperating districts and special education units.

(Effective through June 30, 2026) 1.

If any school district receiving payments under this chapter cooperates with another school district for the joint provision of educational services under a plan approved by the superintendent of public instruction, the superintendent of public instruction shall, notwithstanding the provisions of section 15.1-27-03.2, create and assign a separate weighting factor that allows the cooperating districts to receive, for a period of four years, a payment rate equivalent to that which each district would have received had the cooperative plan not taken effect.

The superintendent of public instruction shall compute the separate H.

B.

NO.

1013 - PAGE 7 weighting factor to four decimal places and that weighting factor is effective for the duration of the cooperative plan.

2.

A school district that is cooperating with another school district under a cooperative plan approved by the superintendent of public instruction, and which has taxable property located in the same city as the other school district under the cooperative plan, may not be required as part of the cooperative plan to:

a.

Provide unduplicated grade level services;

or b.

Share administrative personnel.

3.

If any school district in the state receiving payments under this chapter or any special education unit in the state cooperates with another school district or special education unit to jointly employ or contract with a superintendent or a school district business manager, or both, or to jointly employ or contract with a special education unit director or a special education unit business manager, or both, the superintendent of public instruction shall provide partial reimbursement of the salary of the superintendent or the school district business manager, or both, or partial reimbursement of the salary of the special education unit director or the special education unit business manager, or both, as follows:

a.

If the salary exceeds two hundred thousand dollars, the amount of the reimbursement must be calculated based upon two hundred thousand dollars.

Each cooperating school district or special education unit shall receive a prorated share of the reimbursement percentages listed below each year for four years.

The prorated reimbursement is based on the percentage of full-time equivalency that the superintendent or school district business manager, or both, or the special education unit director or special education unit business manager, or both, are employed or contracted by each district or special education unit.

The percentage of reimbursement for the salary of the jointly hired superintendent or school district business manager, or both, or of the jointly hired special education unit director or special education unit business manager, or both, must be as follows:

(1) If two schools or special education units are cooperating, ten percent of the salary;

(2) If three schools or special education units are cooperating, fifteen percent of the salary;

(3) If four schools or special education units are cooperating, twenty percent of the salary;

and (4) If five or more schools or special education units are cooperating, twenty-five percent of the salary.

b.

To be eligible for reimbursement under this subsection, the cooperating school districts or special education units must:

(1) Have been approved by the superintendent of public instruction and have implemented their administrative cost-sharing program after June 30, 2022;

and (2) Submit the salary of the superintendent or school district business manager, or both, or the salary of the special education unit director or special education unit business manager, or both, to the superintendent of public instruction by June first of each year.

Per student payments - Cooperating districts.

(Effective after June 30, 2026) 1.

If any school district receiving payments under this chapter cooperates with another school district for the joint provision of educational services under a plan approved by the H.

B.

NO.

1013 - PAGE 8 superintendent of public instruction, the superintendent of public instruction shall, notwithstanding the provisions of section 15.1-27-03.2, create and assign a separate weighting factor that allows the cooperating districts to receive, for a period of four years, a payment rate equivalent to that which each district would have received had the cooperative plan not taken effect.

The superintendent of public instruction shall compute the separate weighting factor to four decimal places and that weighting factor is effective for the duration of the cooperative plan.

2.

A school district that is cooperating with another school district under a cooperative plan approved by the superintendent of public instruction, and which has taxable property located in the same city as the other school district under the cooperative plan, may not be required as part of the cooperative plan to:

a.

Provide unduplicated grade level services;

or b.

Share administrative personnel.

SECTION 24.

EFFECTIVE DATE.

Section 22 of this Act becomes effective July 1, 2026.

H.

B.

NO.

1013 - PAGE 9 ____________________________ ____________________________ Speaker of the House President of the Senate ____________________________ ____________________________ Chief Clerk of the House Secretary of the Senate This certifies that the within bill originated in the House of Representatives of the Sixty-ninth Legislative Assembly of North Dakota and is known on the records of that body as House Bill No.

1013.

House Vote:

Yeas 60 Nays 28 Absent 6 Senate Vote:

Yeas 46 Nays 0 Absent 1 ____________________________ Chief Clerk of the House Received by the Governor at ________M.

on _____________________________________, 2025.

Approved at ________M.

on __________________________________________________, 2025.

____________________________ Governor Filed in this office this ___________day of _______________________________________, 2025, at ________ o’clock ________M.

____________________________ Secretary of State