ND HB1125

Amends section 6-09.4-23 of the North Dakota Century Code to expand authority to withhold school district state aid payments when districts fail to pay principal or interest on indebtedness issued after July 31, 2023.

Grants the state treasurer authority to withhold funds under chapter 57-51 and the county auditor authority to withhold funds under chapters 57-33.2, 57-34, 57-55, and section 21-06-10 when school districts default on debt payments.

Requires state funds be withheld only with authorization by school board resolution, with exceptions for existing provisions related to Chapter 15.1-27 funds.

Requires notification to superintendent of public instruction, state treasurer, or county auditor at least 15 working days before payment due date, including school district name, debt issue identification, payment amount, and wire transfer instructions.

Directs superintendent of public instruction, state treasurer, and county auditor to develop detailed procedures for school districts to notify state officials of potential defaults and to request expedited payments to prevent defaults.