North Dakota
Measure 3 aims to enhance Legacy Fund
The rapid growth of the Legacy Fund and a potential opportunity to expedite that growth even further has led the North Dakota Legislature to offer Measure 3 to voters.
The measure on the Nov. 5 ballot would change some of the rules and definitions surrounding the Legacy Fund, established by voters in 2010 as a trust fund for 30% of the state’s oil and gas production taxes.
“It’s grown faster than we anticipated,” said Rep. Corey Mock, D-Grand Forks. “We didn’t think the Legacy Fund would hit a billion dollars for at least 10 years.”
The Legacy Fund currently holds more than $10 billion.
Under terms established when the fund was created in 2011, the Legislature can spend up to 15% of the principal with a two-thirds vote. The expectation was that 15% would amount to $150 million in 10 years. Given the size of the fund today, the Legislature has proposed to reduce the eligible spending of principal to 5%, which comes to $500 million, said Mock, a sponsor of the legislative resolution creating the constitutional change in Measure 3.
The reduction in principal that can be spent is one piece of Measure 3. Another piece deals with the fund’s earnings.
Earnings from the Legacy Fund could not be tapped for the first seven years, but now, earnings automatically go into the general fund on June 30 of every odd-numbered year.
A technical change in Measure 3 eliminates the June 30 distribution and replaces it with language stating the earnings will go into a Legacy earnings fund, which can be invested. Currently, earnings aren’t being invested.
Mock said market fluctuations make tying distributions to a particular date problematic. The market could be bullish or it could be the opposite, forcing the state to sell assets at a loss, he said.
“Because we were calculating everything on a specific date, it made it very difficult for the managers to budget, to predict and to invest wisely. But it’s the only fund where we do it this way,” Mock said, noting other state funds use a rolling average.
In addition to the Measure 3 resolution, the Legislature passed Senate Bill 2330, which defines Legacy earnings as 7% of the rolling five-year average of the fund balance.
“That can be liquidated and maintained in a cash account for the transfer without the risk of penalty. We’re not jeopardizing our stock positions. We’re not having to change our investment strategy because of the timing,” Mock said. “It’s far more predictable. We already know what we’re going to have for earnings next year.”
A fiscal analysis prepared by the Legislative Council using inputs from state investment managers showed the impact of the changes associated with Measure 3 and SB 2330 are significant, Mock said.
Under the current earnings definition and the fund’s 5.5% return, by 2035, the Legacy Fund would contain about $20 billion, with earnings of about $1.3 billion. By 2045, the fund would have just over $30.3 billion, with earnings of $2 billion. In 2055, the fund would have $41.3 billion, producing $2.8 billion in earnings.
With the proposed changes to principal spending and the earnings definition, as well as a 7.2% return, by 2035 the Legacy Fund could contain more than $24.6 billion, producing $1.4 billion in earnings, or about $100,000 more than not making the changes. However, by 2045, the fund would be expected to grow to $43 billion, generating earnings of more than $2.6 billion, and in 2055, the $65.5 billion fund would generate more than $4 billion.
Mock said the investment board views the 7.2% return as realistic, but even scenarios using lesser returns generate significantly more earnings than currently.
The numbers used in the projections also forecast a declining amount of oil revenue going into the fund. The projections are based on input from the North Dakota Department of Mineral Resources, Mock said.
SB 2330 passed the House and Senate without dissent. House Concurrent Resolutions 3033, which created Measure 3, passed the Senate 45-1 and House 92-1.
Voters will decide on Nov. 5 whether they also want to support the changes to the Legacy Fund in Measure 3 with a “yes” vote.
“The bill went through a lot of variations and we brought forward what we think is a very, very responsible measure,” Mock said. “People really understand the Legacy Fund is an important asset, and this minor change can have a meaningful impact.”
Measure 1 replaces
outdated language
North Dakota voters will decide on replacing outdated language in their state constitution with new definitions in Measure 1 on the Nov. 5 ballot.
Measure 1 was placed on the ballot by the 2023 Legislature.
The measure replaces “school for the deaf and dumb of North Dakota” with “school for the deaf and hard of hearing” in its constitutional reference. A “state hospital for the insane” would become “state hospital for the care of individuals with mental illness.” An “institution for the feebleminded” would become “facility for individuals with developmental disabilities,” and a “state hospital for the mentally ill” would change to “state hospital for the care of individuals with mental illness.”
A “yes” vote on Measure 1 would make those changes.
North Dakota
North Dakota Supreme Court reverses dismissal of contractors’ lawsuit against city of West Fargo
WEST FARGO — A lawsuit against the city of West Fargo will continue after the North Dakota Supreme Court on Thursday, June 25, reversed a 2025 dismissal.
In December, the Associated General Contractors of North Dakota and the American Concrete Pavement Association–North Dakota Chapter, Inc. appealed the dismissal judgment filed in favor of the city of West Fargo.
The North Dakota Supreme Court determined in its Thursday, June 25, ruling that the district court made an error by
dismissing these claims as “moot,”
with the reasoning that the construction project is completed and can’t be undone, and the court additionally erred by denying the plaintiffs the opportunity to amend their complaint “on grounds the association lacks standing to challenge a city ordinance.”
The dismissal was reversed, so the case will continue. The attorney for the plaintiffs/appellants, Nicholas Surma, said his team is very pleased with the outcome.
“(We) look forward to a decision on the merits whether the city can continue to substitute itself for private contractors or whether projects must be competitively bid to achieve the law’s intended purpose — allowing the free market to provide the best quality at the best price for West Fargo’s taxpaying citizens,” Surma said in a written statement.
David Samson / The Forum file photo
Rachel Richter Lordemann, director of communications for the city of West Fargo, said the city doesn’t comment on ongoing litigation.
The plaintiffs, collectively referred to as the “association,” originally filed a claim against West Fargo in May 2025, arguing the city violated competitive bidding requirements for a public improvement project by delegating some tasks to city staff rather than putting them up for bid.
North Dakota Century Code at the time stated the threshold for bidding the construction of a public improvement project was $200,000, according to Thursday’s Supreme Court ruling. The project in this case was expected to exceed that cost.
The plaintiffs asked the court to enter a judgment saying the city can’t self-perform any public improvement that exceeds $200,000, and violated state law by doing so in the Improvement District No. 2290 mill and overlay project. They also asked the court to prohibit West Fargo from self-performing work on that project and future projects required to be publicly bid on under state law.
West Fargo approved a contract for the project in June 2025, and the project was completed in September. After the project was finished, the city adopted an ordinance allowing the city to self-perform routine street maintenance with available funds, regardless of the estimated value, if the city feels it’s in its best interest to internally handle the job.
After the ordinance passed, the plaintiffs filed a motion to amend their complaint to include, among other things, a request for a declaration that the ordinance is invalid. The district court allowed the case to be put on hold while the plaintiffs gathered information, but denied their challenge of the ordinance.
“The court reasoned the association lacked standing to challenge the ordinance because the association had not alleged ‘an actual or threatened injury stemming from action under the ordinance’ or that ‘the City has exercised authority under the ordinance,’” the Supreme Court ruling said.
After oral arguments, the claims were dismissed without prejudice or costs awarded to either party.
Dismissals without prejudice can rarely be appealed, since plaintiffs can simply refile their case, however, the Supreme Court found an appeal was appropriate because the association has no ability to seek the relief it was when originally filing the case. The project can’t be undone.
The Supreme Court determined the public interest exception to mootness applies in this case, because “competitive bidding laws are designed to protect the public, and a decision will guide public officials administering political subdivisions across the state.”
The Supreme Court also disagreed with the district court’s ruling that the association had no ability to challenge the ordinance. It said the association has alleged facts that demonstrate the ordinance presents a threat to the interests of its members.
North Dakota
North Dakota composer launches statewide virtual choir project
GRAND FORKS — A North Dakota composer’s dream is turning into a statewide invitation.
Williston-based musician Emily Black-Driscoll was chosen as the North Dakota Music Teachers Association’s commissioned composer for 2026. She’s preparing an original composition that will premiere in August.
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North Dakota
Challengers declare victory after ND Supreme Court rules against Legislature’s attempt to alter term limits
BISMARCK — A constitutional ballot measure to amend the state’s term limits law as proposed by the Legislature will not appear on November’s ballot, the North Dakota Supreme Court ruled Thursday, siding with petitioners who argued the Legislature exceeded its authority and violated the state constitution in proposing the changes.
“The people’s voice was heard,” Grand Forks County Commissioner Terry Bjerke said in reaction to the news.
Bjerke was a member of the sponsoring committee behind the successful 2022 effort to pass a term limits initiative, which amended the state constitution by capping legislative term limits to eight years in the House and eight years in the Senate. The amendment, which became article XV of the state constitution, also included a clause barring the Legislature from making constitutional changes to term limits.
During the 2025 session, however, lawmakers narrowly approved Senate Concurrent Resolution 4008, in which the legislature proposed Constitutional Measure 1, a ballot measure to amend the term limits language to allow legislators to decide in which chamber they want to serve their 16 years, and to repeal the clause limiting the legislative assembly’s authority to propose an amendment to alter or repeal term limits.
Bjerke and former Minot legislator Oley Larsen brought the lawsuit challenging the validity of the Legislature’s action in January, and the state Supreme Court
heard oral arguments in the case
this spring.
“Those term limits may only be altered by a measure proposed by the people rather than the Legislative Assembly. And yet a few years later, the Legislative Assembly is doing what they are prohibited from doing,” attorney Zachary Wallen argued on Bjerke and Larsen’s behalf.
Tanner Ecker / The Bismarck Tribune
The Legislature’s attorneys argued the clause prohibiting legislative proposals to alter the constitutional term limits language “infringes on our republican form of government” by “limiting the people’s ability to vote on amendments proposed by their elected officials.”
Justice Jon Jensen seemed skeptical of that argument during the April 2 hearing, questioning whether a second vote was appropriate.
“The public did speak on this. The public spoke on it when it passed the original constitutional amendment and they said, ‘Legislature, you don’t even get to propose a change.’ They have already spoken on it,” Jensen said. “You want a second shot, or a second bite at the apple, not a first one, a second.”
In Thursday’s ruling, all five justices sided with Bjerke and Larsen.
“We … conclude the Legislative Assembly’s adoption of S.C.R. 4008 violated N.D. Const. art. XV … and declare S.C.R. 4008 and Constitutional Measure 1 void … We enjoin the Secretary of State from placing Constitutional Measure 1 on the November 2026 general election ballot,” the ruling said.
Bjerke thanked the legal team that worked on behalf of their lawsuit, and said he was grateful the court reached the conclusion it did.
“I’m thrilled that what the people voted on and approved has been validated,” Bjerke said.
He added that the Legislature had “multiple opportunities” to address term limits prior to 2022’s initiated measure and chose not to, and gave a nod to the country’s coming milestone and the process by which voters expressed their support for term limits.
“We’ve lasted 250 years,” Bjerke said. “I have two words for those elected leaders who think they aren’t: everyone’s replaceable.”
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