North Dakota Century Code

Title 1 — General Provisions

Chapter 01 — General Principles And Definitions

1-01-01. This act - How referred to 🗎 PDF 

This revision, whenever cited, enumerated, referred to, or amended may be designated as the "North Dakota Century Code". Where the expression "this code" appears therein without explanatory or descriptive language, it means the "North Dakota Century Code" unless the context clearly indicates a different meaning.

1-01-01.1. Adoption of North Dakota Revised Code of 1943 🗎 PDF 

Repealed by omission from this code.

1-01-01.2. Adoption of code not repeal of laws passed in 1944 Special Session 🗎 PDF 

Repealed by omission from this code.

1-01-02. Origin of law 🗎 PDF 

Law is a rule of property and of conduct prescribed by the sovereign power.

1-01-03. Expression of law 🗎 PDF 

The will of the sovereign power is expressed by:
  1. The Constitution of the United States.
  2. Treaties made under the authority of the United States.
  3. Statutes enacted by the Congress of the United States.
  4. The constitution of the state.
  5. The statutes of the state.
  6. The ordinances of other and subordinate legislative bodies.
  7. The decisions of the tribunals enforcing those rules, which, though not enacted, form what is known as customary or common law.

1-01-04. Common law divided 🗎 PDF 

The common law is divided into:
  1. Public law, or the law of nations; and
  2. Domestic or municipal law.

1-01-05. Evidence of common law 🗎 PDF 

The evidence of the common law is found in the decisions of the tribunals.

1-01-06. Code excludes common law 🗎 PDF 

In this state there is no common law in any case in which the law is declared by the code.

1-01-07. Classification of civil rights 🗎 PDF 

All original civil rights are either:
  1. Rights of person; or
  2. Rights of property.

1-01-08. Rights of property and person - How waived 🗎 PDF 

Rights of property and of person may be waived, surrendered, or lost by neglect in the cases provided by law.

1-01-09. Word defined by statute always has same meaning 🗎 PDF 

Whenever the meaning of a word or phrase is defined in any statute, such definition is applicable to the same word or phrase wherever it occurs in the same or subsequent statutes, except when a contrary intention plainly appears.

1-01-10. Quorum 🗎 PDF 

Except as otherwise provided, a majority of any board or commission shall constitute a quorum.

1-01-11. Authority of deputies 🗎 PDF 

Any duty imposed upon a ministerial officer, and any act permitted to be done by that officer, unless otherwise provided, may be performed by that officer's lawful deputy.

1-01-12. Variation from prescribed form 🗎 PDF 

If a form is prescribed, deviations therefrom not affecting the substance or calculated to mislead does not vitiate the form used.

1-01-13. Numerals 🗎 PDF 

The Roman numerals and the Arabic numerals are deemed parts of the English language.

1-01-14. Degrees of care 🗎 PDF 

There are three degrees of care and of diligence mentioned in this code, namely, slight, ordinary, and great. Each of the last two includes any lesser degree or degrees.

1-01-15. Degrees of care and diligence - Definition 🗎 PDF 

Slight care or diligence means such as a person of ordinary prudence usually exercises about that person's own affairs of slight importance. Ordinary care or diligence means such as a person usually exercises about that person's own affairs of ordinary importance. Great care or diligence means such as a person usually exercises about that person's own affairs of great importance.

1-01-16. Degrees of negligence 🗎 PDF 

There are three degrees of negligence mentioned in this code, namely, slight, ordinary, and gross. Each of the last two includes any lesser degree or degrees.

1-01-17. Degrees of negligence - Definition 🗎 PDF 

Slight negligence shall consist in the want of great care and diligence, ordinary negligence, in the want of ordinary care and diligence, and gross negligence, in the want of slight care and diligence.

1-01-18. Children - Definition 🗎 PDF 

Repealed by S.L. 2025, ch. 64, § 14.

1-01-19. Debtor and creditor - Definition 🗎 PDF 

Except as otherwise defined and used in title 13, everyone who owes to another the performance of an obligation must be called a debtor and the one to whom that person owes it must be called a creditor.

1-01-20. Valuable consideration - Definition 🗎 PDF 

Repealed by S.L. 2025, ch. 64, § 14.

1-01-21. Good faith - Definition 🗎 PDF 

Repealed by S.L. 2025, ch. 64, § 14.

1-01-22. Notice - Classification 🗎 PDF 

Notice shall be either actual or constructive.

1-01-23. Actual notice - Definition 🗎 PDF 

Actual notice shall consist in express information of a fact.

1-01-24. Constructive notice - Definition 🗎 PDF 

Constructive notice means notice imputed by the law to a person not having actual notice.

1-01-25. What deemed constructive notice 🗎 PDF 

Every person who has actual notice of circumstances sufficient to put a prudent person upon inquiry as to a particular fact and who omits to make such inquiry with reasonable diligence is deemed to have constructive notice of the fact itself.

1-01-26. False notice cannot become valid 🗎 PDF 

A notice which is false when given is not made valid by the subsequent happening of the event.

1-01-27. Paper - Definition 🗎 PDF 

Repealed by S.L. 2025, ch. 64, § 14.

1-01-28. Person - Definition 🗎 PDF 

Repealed by S.L. 1995, ch. 55, § 30; S.L. 1995, ch. 103, § 80.

1-01-29. Several - Definition 🗎 PDF 

Repealed by S.L. 2025, ch. 64, § 14.

1-01-30. Third persons - Definition 🗎 PDF 

Repealed by S.L. 2025, ch. 64, § 14.

1-01-31. Usage - Definition 🗎 PDF 

Usage is a reasonable and lawful public custom concerning transactions of the same nature as those which are to be affected thereby, existing at the place where the obligation is to be performed, and either known to the parties or so well established, general, and uniform that they must be presumed to have acted with reference thereto.

1-01-32. Usual and customary - Definition 🗎 PDF 

The words "usual" and "customary" mean "according to usage".

1-01-33. Year - Month - Week - Definition - Fraction of day disregarded 🗎 PDF 

The word "week" means seven consecutive days and the word "month" a calendar month. The word "year" means twelve consecutive months. Fractions of a year are to be computed by the number of months; thus, half a year is six months. Fractions of a day are to be disregarded in computations which include more than one day and involve no questions of priority.

1-01-34. Gender - Definition 🗎 PDF 

  1. Words of one gender include the other genders.
  2. Words used to reference an individual's gender mean the individual's sex.

1-01-35. Singular - Definition 🗎 PDF 

Words used in the singular number include the plural and words used in the plural number include the singular, except when a contrary intention plainly appears.

1-01-35.1. Tense 🗎 PDF 

Words in the present tense include the future.

1-01-36. Compound interest - Definition 🗎 PDF 

Repealed by S.L. 2025, ch. 64, § 14.

1-01-37. Written and printed - Definition 🗎 PDF 

The words "writing" and "written" include "typewriting" and "typewritten", and "printing" and "printed", except in the case of signatures and when the words are used by way of contrast to typewriting and printing. Writing may be made in any manner, except that when a person entitled to require the execution of writing demands that it be made with ink, it must be so made.

1-01-38. Seal - Definition 🗎 PDF 

When the seal of a court, public officer, or person is required by law to be affixed to any process, commission, paper, or instrument, the word "seal" includes an impression of such seal upon the paper alone as well as upon wax or a wafer affixed thereto.

1-01-39. When this code governs 🗎 PDF 

The provisions of this code, so far as they relate to procedure, or alleviate the punishment to be imposed upon conviction in any case, govern in all criminal actions in any way prosecuted or tried after the date upon which it takes effect, whether the offense was committed before or after such date.

1-01-40. Coal - Definition 🗎 PDF 

Repealed by S.L. 2025, ch. 64, § 14.

1-01-41. Verdict - Definition 🗎 PDF 

Repealed by S.L. 2025, ch. 64, § 14.

1-01-42. Verified - Definition 🗎 PDF 

Repealed by S.L. 2025, ch. 64, § 14.

1-01-43. State on Mountain Time until return of United States to Standard Time 🗎 PDF 

Repealed by omission from this code.

1-01-44. Successive weeks construed 🗎 PDF 

Whenever in any act or statute of the state of North Dakota providing for the publication of a notice the phrase "successive weeks" is used, the word weeks must be construed to mean calendar weeks, and the publication upon any day in a week is sufficient publication for that week if at least five days intervene between such publication and the publications immediately preceding and immediately following. All publications heretofore or hereafter made in accordance with the provisions of this section are deemed legal and valid.

1-01-45. Corporate surety - Definition 🗎 PDF 

Repealed by S.L. 2025, ch. 64, § 14.

1-01-46. Decree - Definition 🗎 PDF 

Repealed by S.L. 2025, ch. 64, § 14.

1-01-47. Population - Definition 🗎 PDF 

Repealed by S.L. 2025, ch. 64, § 14.

1-01-48. Division of child welfare - Definition 🗎 PDF 

Repealed by S.L. 1981, ch. 486, § 37.

1-01-49. Other general definitions 🗎 PDF 

As used in this code, unless the context otherwise requires or unless otherwise defined:
  1. "Children" includes children by birth and by adoption.
  2. "Coal" means all kinds of coal and includes what is known as lignite coal.
  3. "Compound interest" means interest added to the principal as the interest becomes due and which thereafter bears interest.
  4. "Corporate surety" means a corporation or limited liability company duly authorized under the laws of this state to transact a surety business in the state.
  5. "Decree" has the same meaning as the word "judgment".
  6. "Depose" includes every mode of written statement under oath or affirmation.
  7. "Executor" includes administrator and "administrator" includes executor.
  8. "Female" means a girl, woman, or an individual whose biological reproductive system is developed to produce ova.
  9. "Good faith" means an honest intention to abstain from taking any unconscientious advantage of another even through the forms or technicalities of law, together with an absence of all information or belief of facts which would render the transaction unconscientious.
  10. "Individual" means a human being.
  11. "Male" means a boy, man, or an individual whose biological reproductive system is developed to produce sperm.
  12. "Oath" includes "affirmation".
  13. "Organization" includes a foreign or domestic association, business trust, corporation, enterprise, estate, joint venture, limited liability company, limited liability partnership, limited partnership, partnership, trust, or any legal or commercial entity.
  14. "Paper" means any flexible material upon which it is usual to write.
  15. "Partnership" includes a limited liability partnership registered under chapter 45-22.
  16. "Penitentiary" includes any affiliated facilities.
  17. "Person" means an individual, organization, government, political subdivision, or government agency or instrumentality. The term does not include environmental elements, artificial intelligence, an animal, or an inanimate object.
  18. "Personal property" includes money, goods, chattels, things in action, and evidences of debt.
  19. "Population" means the number of inhabitants as determined by the last preceding state or federal census.
  20. "Preceding" and "following" when used by way of reference to a chapter or other part of a statute means the next preceding or next following chapter or other part.
  21. "Primary sector business" means an individual, corporation, limited liability company, partnership, or association certified by the department of commerce division of economic development and finance which through the employment of knowledge or labor adds value to a product, process, or service which results in the creation of new wealth. The term includes tourism operations demonstrating the creation of new wealth by attracting out-of-state visitors. For purposes of this subsection, "new wealth" means revenues generated by a business or tourism operation in this state through the sale of products or services to:
    1. Customers or visitors from outside this state; or
    2. Customers in this state if the products or services were previously unavailable or difficult to obtain from a business in this state.
  22. "Process" means a writ or summons issued in the course of judicial proceedings.
  23. "Property" includes property, real and personal.
  24. "Qualified elector", as used in this code concerning qualifications for signing petitions to governmental bodies, means a citizen of the United States who is eighteen years of age or older; and is a resident of this state and of the area affected by the petition.
  25. "Real property" shall be coextensive with lands, tenements, and hereditaments.
  26. "Rule" includes regulation.
  27. "Several" in relation to number means two or more.
  28. "Sex" means the biological state of being male or female, based on the individual's nonambiguous sex organs, chromosomes, or endogenous hormone profiles at birth.
  29. "Signature" or "subscription" includes "mark" when the individual cannot write, the individual's name being written near it and written by another individual who writes the individual's own name as a witness.
  30. "State" when applied to the different parts of the United States, includes the District of Columbia and the territories.
  31. "Testify" includes every mode of oral statement under oath or affirmation.
  32. "Third persons" includes all who are not parties to the obligation or transaction concerning which the phrase is used.
  33. "United States" includes the District of Columbia and the territories.
  34. "Value" or "valuable consideration" means something of value parted with, or a new obligation assumed at the time of obtaining something, which serves as substantial compensation for what is received in return.
  35. "Verdict" includes not only the verdict of a jury, but also the finding upon the facts of a judge or of a master appointed to determine the issues in a cause.
  36. "Verified" means sworn to before an officer authorized to administer oaths.
  37. "Will" includes codicils.
  38. "Writ" means an order or precept in writing, issued in the name of the state or of a court or judicial officer.

1-01-50. Filing or presentation of petitions - Time limit 🗎 PDF 

Whenever in this code provision is made for the filing or presentation of a petition with or to any officer or governing body or board of the state or any agency, instrumentality, or political subdivision thereof as a prerequisite to the calling of an election, or the performance or prohibition of any act, such petition must be filed with or presented to such officer or governing body or board not later than one year from the date such petition is first placed in circulation, or the date the first signature is affixed thereto, whichever date is the latest. If a petition is required by law to be filed or presented on or before a specific or certain date, the petition shall be filed or presented, and physically be in the possession of the person or office designated to receive such petition before four p.m. on such date. The provisions of this section shall not apply in any case in which the law governing a particular petition specifies a shorter or a longer period of time or a different time of day.

1-01-51. Qualified elector defined 🗎 PDF 

Repealed by S.L. 2025, ch. 64, § 14.

Chapter 02 — Rules Of Interpretation

1-02-01. Rule of construction of code 🗎 PDF 

The rule of the common law that statutes in derogation thereof are to be construed strictly has no application to this code. The code establishes the law of this state respecting the subjects to which it relates, and its provisions and all proceedings under it are to be construed liberally, with a view to effecting its objects and to promoting justice.

1-02-02. Words to be understood in their ordinary sense 🗎 PDF 

Words used in any statute are to be understood in their ordinary sense, unless a contrary intention plainly appears, but any words explained in this code are to be understood as thus explained.

1-02-03. Language - How construed 🗎 PDF 

Words and phrases must be construed according to the context and the rules of grammar and the approved usage of the language. Technical words and phrases and such others as have acquired a peculiar and appropriate meaning in law, or as are defined by statute, must be construed according to such peculiar and appropriate meaning or definition.

1-02-03.1. Person-first language 🗎 PDF 

The provisions of this code, unless the context otherwise requires, must be construed in person-first language and any new enactments of this code must be written in person-first language.

1-02-04. Conflict in expression of numbers 🗎 PDF 

Whenever there is a conflict between a number expressed in a statute both by figures and written words, the latter shall prevail unless such words obviously are contrary to the legislative intent.

1-02-05. Construction of unambiguous statute 🗎 PDF 

When the wording of a statute is clear and free of all ambiguity, the letter of it is not to be disregarded under the pretext of pursuing its spirit.

1-02-06. Clerical and typographical errors 🗎 PDF 

Clerical and typographical errors shall be disregarded when the meaning of the legislative assembly is clear.

1-02-06.1. Journal entry rule - Presumption of validity of legislation 🗎 PDF 

A bill or resolution passed by the senate and the house of representatives of the legislative assembly as evidenced by the journals of the senate and house is presumed to be the bill or resolution that is signed by the presiding officers of the senate and house, presented to the governor, and filed with the secretary of state. If there is a difference between versions of a bill, the legislative council shall direct the publisher of the code to publish the law according to this section. The law as published must be presumed valid until determined otherwise by an appropriate court.

1-02-07. Particular controls general 🗎 PDF 

Whenever a general provision in a statute is in conflict with a special provision in the same or in another statute, the two must be construed, if possible, so that effect may be given to both provisions, but if the conflict between the two provisions is irreconcilable the special provision must prevail and must be construed as an exception to the general provision, unless the general provision is enacted later and it is the manifest legislative intent that such general provision shall prevail.

1-02-08. Conflicting provisions found in the same statute 🗎 PDF 

Except as otherwise provided in section 1-02-07, whenever, in the same statute, several clauses are irreconcilable, the clause last in order of date or position shall prevail.

1-02-09. Irreconcilable statutes or constitutional amendments passed during the same session 🗎 PDF 

  1. Whenever the provisions of two or more statutes passed during the same session of the legislative assembly are irreconcilable, the statute latest in date of final passage by the legislative assembly, irrespective of the date on which it was approved or allowed to become law by the governor or of its effective date, prevails from the time it becomes effective. However, whenever a provision of one or more statutes repeals a law and a provision of one or more statutes passed later during the same session of the legislative assembly amends that law, the provision amending the law prevails from the time it becomes effective only if:
    1. The legislative council determines the intent of the legislative assembly was to retain the amended law as an independent law; or
    2. The provision amending the law has an earlier effective date than the effective date of the provision repealing the law, in which case the amendment prevails from its effective date until the effective date of the provision repealing the law.
  2. Whenever two or more concurrent resolutions, adopted during the same session of the legislative assembly, propose to create or amend, or amend and repeal, the same section of the Constitution of North Dakota, the secretary of state, in consultation with the attorney general, shall determine if the proposals are irreconcilable, and if they are irreconcilable, the resolution last adopted by the legislative assembly, as determined by the legislative council, must be placed on the ballot for the appropriate election for approval or disapproval by the electorate.

1-02-09.1. Multiple amendments to the same provision, one without reference to the other 🗎 PDF 

If amendments to the same statute are enacted at the same or different sessions of the legislative assembly, one amendment without reference to another, the amendments are to be harmonized, if possible, so that effect may be given to each. If the amendments are irreconcilable, the latest in date of enactment prevails.

1-02-09.2. Reconciliation of conflicting proposed amendments to the constitution 🗎 PDF 

If two or more concurrent resolutions propose to amend or create the same section of the Constitution of North Dakota, and the proposed sections are reconcilable, the legislative council shall prepare a reconciled text and submit it to the secretary of state for inclusion in the appropriate ballot.

1-02-10. Code not retroactive unless so declared 🗎 PDF 

No part of this code is retroactive unless it is expressly declared to be so.

1-02-11. Source note not part of statute 🗎 PDF 

No source note may be deemed a declaration by the legislative assembly as to the purpose, scope, or effect of any section to which such source note or revisor's note relates.

1-02-12. Caption, cross-reference note, and source note 🗎 PDF 

No caption, source note, or cross-reference note, whether designating an entire title, chapter, section, subsection, or subdivision, constitutes any part of a statute. A caption may not be used to determine legislative intent or the legislative history for any statute. An effective date or expiration date note immediately following a caption is not a part of the caption and is a part of the statute.

1-02-13. Uniform laws interpreted to effect purpose 🗎 PDF 

Any provision in this code which is a part of a uniform statute must be so construed as to effectuate its general purpose to make uniform the law of those states which enact it.

1-02-14. Majority power 🗎 PDF 

Words giving a joint authority to three or more public officers or other persons must be construed as giving such authority to a majority of them, unless it appears otherwise in the act giving the authority.

1-02-15. Computation of time 🗎 PDF 

The time in which any act provided by law is to be done is computed by excluding the first day and including the last, unless the last is a holiday, and then it also is excluded. If a number of months is to be computed by counting the months from a particular day, the period ends on the same numerical day in the concluding month as the day of the month from which the computation is begun, unless there are not that many days in the concluding month, in which case the period ends on the last day of that month.

1-02-16. Repeal does not revive act previously repealed 🗎 PDF 

Whenever any act of the legislative assembly which repealed a former act is repealed, such former act is not revived by such repeal.

1-02-17. Repeal - Effect 🗎 PDF 

The repeal of any statute by the legislative assembly, or by the people through an initiated law, does not have the effect of releasing or extinguishing any penalty, fine, liability, or forfeiture incurred under such statute, but as to cases tried before, or subsequent to, the repeal of such statute, it has the effect of extinguishing any jail or prison sentence that may be, or that has been, imposed by reason of said law, unless the repealing act provides expressly that the penalties of imprisonment shall remain in force as to crimes committed in violation of such law prior to its repeal. In other respects, such act shall remain in force only for the purpose of the enforcement of such fine, penalty, or forfeiture.

1-02-18. Pending actions or proceedings not affected by code 🗎 PDF 

No action or proceeding commenced before this code takes effect, and no right accrued, is affected by its provisions, but the proceedings therein must conform to the requirements of this code as far as applicable.

1-02-19. Effect upon former laws - Repeals 🗎 PDF 

No statute, law, or rule is continued in force because it is consistent with the provisions of this code on the same subject, but in all cases provided for by this code all statutes, laws, and rules heretofore in force in the state, whether consistent or not with the provisions of this code, unless expressly continued in force by it, are all repealed and abrogated. This repeal or abrogation does not revive any former law heretofore repealed, nor does it affect any right already existing or accrued or any action or proceeding already taken, except as in this code provided, nor does it affect any private or local statute not expressly repealed, nor any outstanding appropriation.

1-02-20. Severability 🗎 PDF 

In the event that any clause, sentence, paragraph, chapter, or other part of any title, is adjudged by any court of competent or final jurisdiction to be invalid, such judgment does not affect, impair, nor invalidate any other clause, sentence, paragraph, chapter, section, or part of such title, but is confined in its operation to the clause, sentence, paragraph, section, or part thereof directly involved in the controversy in which such judgment has been rendered.

1-02-21. Office held under provisions repealed by this code to be retained - Exceptions 🗎 PDF 

Unless a different intention plainly appears, a public officer who is in office when this code takes effect shall remain in office until the expiration of the term for which the officer was elected or appointed unless the officer is removed prior to the expiration of the term as provided by law.

1-02-22. Effect when office abolished 🗎 PDF 

When any office is abolished by the repeal of any legislative act or provision, and such act or provision is not in substance re-enacted or continued in the code, such office ceases at the time the code takes effect.

1-02-23. Limitations - How reckoned 🗎 PDF 

When a limitation or period of time prescribed in any existing statute for acquiring a right or barring a remedy, or for any other purpose, has begun to run before this code goes into effect, and the same or any limitation of time is prescribed in this code, the time which already has run is deemed part of the time prescribed as such limitation by this code.

1-02-24. Time for performance of act - How computed 🗎 PDF 

Unless otherwise specially provided, every period of time prescribed in any statute existing prior to the taking effect of this code with reference to the commencement of a proceeding or the performance of any other act, must be computed from the date of the event at which such period begins although such event happened before the taking effect of this revision. This section may not be construed so as to conflict in any manner with the provisions of section 1-02-23.

1-02-25. Continuations of existing statutes 🗎 PDF 

For purposes of historical reference and as an aid to interpretation, the provisions of this code, so far as they are substantially the same as previously existing statutes, must be construed as continuations thereof, and not as new enactments except that a revised version of such statutes contained in this code supersedes all previous statutes.

1-02-26. Effect of revision upon initiated measures 🗎 PDF 

Any provision of this code which was enacted as an initiated measure, or as a part of such a measure, notwithstanding the revision, shall remain in effect as an initiated provision and is subject to amendment, re-enactment, or repeal only as provided by section 25 of the Constitution of North Dakota.

1-02-27. Conflicts adjusted 🗎 PDF 

If the provisions of any chapter or title conflict with or contravene the provisions of any other chapter or title, the provisions of each chapter or title must prevail as to all matters in question arising thereunder out of the same subject matter.

1-02-28. Benefit of provisions of law may be waived 🗎 PDF 

Except when it is declared otherwise, the provisions of this code in respect to the rights and obligations of parties to contracts are subordinate to the intention of the parties, when ascertained in the manner prescribed by the chapter on the interpretation of contracts. The benefit thereof may be waived by any party entitled thereto, unless such waiver would be against public policy.

1-02-29. Repeal of incorporating law does not dissolve existing corporation or limited liability company 🗎 PDF 

No existing corporation or limited liability company is dissolved on account of the repeal of any statute pursuant to which it was organized, nor may the powers specified in its charter, certificate, articles of incorporation, or articles of organization be impaired or limited thereby. No repeal impairs, annuls, diverts, or disturbs any vested rights, privileges, or powers actually exercised and enjoyed in or by any corporation or limited liability company under such repealed laws.

1-02-30. Vested rights protected 🗎 PDF 

No provision contained in this code may be so construed as to impair any vested right or valid obligation existing when it takes effect.

1-02-31. Existing boundaries to remain after code takes effect 🗎 PDF 

The boundaries of every county, city, school district, and other local subdivision, shall remain the same as they were established prior to the taking effect of this code until they are changed in the manner provided in such code.

1-02-32. Existing ordinances and regulations to remain in force after code takes effect 🗎 PDF 

Every ordinance, bylaw, rule, and regulation adopted by any county, city, civil township, board, commission, or public officer, and in force when this code takes effect, if not inconsistent with the provisions of the code, shall remain in force until it is repealed or amended in the manner prescribed by law.

1-02-33. Statutes which shall be deemed subsequent to code 🗎 PDF 

Any statute other than this code, whether enacted at the 1961 session of the legislative assembly or thereafter, is deemed to have been enacted subsequently to the enactment of this code. If any such statute repeals, amends, or is inconsistent with any provision of this code, the provisions of such statute shall prevail.

1-02-33.1. Section 1-02-33 not applicable to laws enacted in 1943 session 🗎 PDF 

Repealed by omission from this code.

1-02-34. Pendency and transfer of actions and proceedings 🗎 PDF 

If at the time this code takes effect any action or proceeding properly commenced prior thereto is pending before any court, tribunal, board, commission, or public officer, and such court, tribunal, board, commission, or public officer is without jurisdiction of such action or proceeding under the provisions of this code, such action or proceeding nevertheless must be transferred, together with all the papers relating thereto, to the court, tribunal, board, commission, or public officer having jurisdiction thereof, with the same force and effect as if originally commenced before such court, tribunal, board, commission, or public officer.

1-02-35. Date of taking effect of code 🗎 PDF 

Repealed by S.L. 2021, ch. 356, § 2.

1-02-36. Registered or certified mail 🗎 PDF 

Wherever the term "registered mail" appears in the laws of the state of North Dakota it means "registered or certified mail".

1-02-37. Citations 🗎 PDF 

All amendments of and additions to the North Dakota Century Code appearing in pocket part supplements must be cited as sections of the North Dakota Century Code.

1-02-38. Intentions in the enactment of statutes 🗎 PDF 

In enacting a statute, it is presumed that:
  1. Compliance with the constitutions of the state and of the United States is intended.
  2. The entire statute is intended to be effective.
  3. A just and reasonable result is intended.
  4. A result feasible of execution is intended.
  5. Public interest is favored over any private interest.

1-02-39. Aids in construction of ambiguous statutes 🗎 PDF 

If a statute is ambiguous, the court, in determining the intention of the legislation, may consider among other matters:
  1. The object sought to be attained.
  2. The circumstances under which the statute was enacted.
  3. The legislative history.
  4. The common law or former statutory provisions, including laws upon the same or similar subjects.
  5. The consequences of a particular construction.
  6. The administrative construction of the statute.
  7. The preamble.

1-02-40. Statutory references 🗎 PDF 

A reference to any portion of a statute applies to all re-enactments, revisions, or amendments thereof.

1-02-41. References to a series 🗎 PDF 

If a statute refers to a series of numbers or letters, the first and the last numbers or letters are included.

1-02-42. Effective dates of legislation - Rules of construction 🗎 PDF 

In determining the effective date of any law enacted by the legislative assembly, a "measure" includes the entire contents of a legislative act, unless the legislative assembly specifically provides within the act that only a portion of the act is an emergency, appropriation, or tax measure. Unless a different date is specified in a measure, the measure takes effect on July first after its filing with the secretary of state if:
  1. Any portion of the measure provides an appropriation for support and maintenance of state departments and institutions; or
  2. Any portion of the measure:
      1. Provides for an enforced contribution for public purposes which is not dependent upon the will or consent of the person taxed;
      2. Imposes a fee for any purpose; or
      3. Authorizes a public official or entity to determine the level of a fee for any purpose; and
    2. Changes any statutory factor that determines the amount of a taxpayer's liability for the contribution or fee, including a full or partial exemption or credit.

Chapter 03 — Holidays

1-03-01. Holidays 🗎 PDF 

Holidays are as follows:
  1. Every Sunday.
  2. The first day of January, which is New Year's Day.
  3. The third Monday of January, which is Martin Luther King Day, in recognition of the life, legacy, and dream of Martin Luther King, Jr.
  4. The third Monday in February, in recognition of the birthday of George Washington.
  5. The Friday next preceding Easter Sunday and commonly known as Good Friday.
  6. The last Monday in May, which is Memorial Day.
  7. The fourth day of July, which is the anniversary of the Declaration of Independence.
  8. The first Monday in September, which is Labor Day.
  9. The eleventh day of November, which is Veterans' Day.
  10. The fourth Thursday in November, which is Thanksgiving Day.
  11. The twenty-fifth day of December, which is Christmas Day.
  12. Every day appointed by the President of the United States or by the governor of this state for a public holiday. Nothing in this section may be construed to prevent the holding of legislative sessions or the taking of final action on any legislative matter upon any of such holidays other than Sunday. Any action heretofore taken upon any legislative matter upon any such holiday is valid and legal for all purposes.

1-03-01.1. Closing of state offices - Christmas Eve 🗎 PDF 

State offices must be closed at twelve noon on December twenty-fourth, Christmas Eve day, unless it is a weekend or holiday pursuant to section 1-03-02.1.

1-03-02. When day following holiday shall be a holiday 🗎 PDF 

If the first day of January, the fourth day of July, the eleventh day of November, or the twenty-fifth day of December falls upon a Sunday, the Monday following shall be the holiday.

1-03-02.1. When holiday falls on a Saturday 🗎 PDF 

If any of the holidays enumerated in section 1-03-02 fall on a Saturday, the Friday immediately before shall be the holiday.

1-03-03. Sports on Memorial Day - Penalty 🗎 PDF 

No person, prior to the hour of two p.m. of the day set apart as Memorial Day, may engage in organized or commercial ball games, horseracing, sports, or any entertainment which will interfere with the proper observance of such day. Any violation of this section is an infraction.

1-03-04. Business days 🗎 PDF 

All days other than those mentioned in sections 1-03-01, 1-03-02, and 1-03-02.1 are to be deemed business days for all purposes. However, any bank may remain closed on any one business day of each week, as it may from time to time elect. Any day upon which a bank is so closed shall be, with respect to such bank, a holiday and not a business day. Any act authorized, required, or permitted to be performed at or by or with respect to such bank on such day, may be performed on the next succeeding business day, and no liability or loss of rights shall result from such delay. Notice of intention on the part of any bank to remain closed on a business day of the week shall be posted in a conspicuous place in the lobby of the bank at least ten days prior to the establishment of such practice and similar notice shall be given when a bank elects to change the day of the week on which it remains closed. Any state bank establishing the practice, as hereinbefore provided, of closing one day a week shall give ten days' notice in writing to the commissioner of financial institutions, in addition to posting the notice in the lobby. However, any bank may elect to remain closed on a business day of the week without any prior notice in the event of the following emergencies: any act of God, death of an officer, or a robbery.

1-03-05. Act due on Saturday or holiday performed on next day 🗎 PDF 

Whenever an act of a secular nature, other than a work of necessity or mercy, is appointed by law or contract to be performed upon a particular day, that falls upon a Saturday or a holiday, the act may be performed upon the next business day with the same effect as if it had been performed upon the day appointed.

1-03-06. Mothers' Day 🗎 PDF 

The governor each year shall designate the second Sunday in May as Mothers' Day. The governor shall issue a proclamation requesting the people of the state to assemble on that Sunday in their churches, or at such other place or places as may be most convenient and proper, for the purpose of paying respect and tribute to our mothers.

1-03-07. Arbor Day 🗎 PDF 

In order to promote and encourage the planting of trees in this state, the first Friday in May of each year is hereby designated and established as "Arbor Day" for the state of North Dakota.

1-03-08. Bird Day 🗎 PDF 

To promote and encourage the conservation and enjoyment of one of nature's most attractive features, and to honor the birth and work of naturalist John James Audubon who made America's birds known to the world through his drawings and vivid prose, April twenty-sixth of each year is hereby designated as "Bird Day" in the state of North Dakota.

1-03-09. Martin Luther King Day 🗎 PDF 

Repealed by S.L. 1991, ch. 55, § 2.

1-03-10. Workers' Memorial Day 🗎 PDF 

The twenty-eighth day of April of each year is designated as Workers' Memorial Day in remembrance of American workers who have been killed, injured, or diseased on the job.

1-03-11. Gold Star Mothers' Day 🗎 PDF 

Each year the governor shall issue a proclamation designating the last Sunday of September as Gold Star Mothers' Day in honor of mothers whose sons or daughters served and died in the line of duty in the armed forces of the United States of America or its allies, or died as a result of injury sustained in such service.

1-03-12. Four Chaplains Sunday 🗎 PDF 

Each year the governor shall issue a proclamation designating the first Sunday of February as Four Chaplains Sunday in honor of the four United States army chaplains, George L. Fox, Alexander D. Goode, Clark V. Poling, and John P. Washington, who sacrificed their own lives to save the lives of other servicemen on the Dorchester, a United States army troop transport ship that was sunk off the coast of Greenland on February 3, 1943.

1-03-13. Indigenous Peoples Day 🗎 PDF 

To recognize the indigenous peoples of the State of North Dakota and their contributions to the state and to the United States, the governor shall issue a proclamation each year designating the Friday before the second Monday in October as Indigenous Peoples Day.

1-03-14. Vietnam Veterans' Day 🗎 PDF 

March twenty-ninth of each year is Vietnam Veterans' Day. Each year the governor shall issue a proclamation on March twenty-ninth in honor and remembrance of surviving and departed Vietnam veterans, including the one hundred ninety-eight individuals from North Dakota whose names are listed on the Vietnam Veterans Memorial wall in Washington, District of Columbia, and those veterans who are or were missing in action or prisoners of war.

1-03-15. Women Veterans' Month 🗎 PDF 

March of each year is Women Veterans' Month. Each year the governor shall issue a proclamation on March first in honor and remembrance of surviving and departed women veterans who have served honorably and with courage on behalf of the United States of America since the American Revolutionary War.

1-03-16. Firefighters memorial weekend 🗎 PDF 

Each year the governor shall issue a proclamation designating the dates of the national fallen firefighters memorial weekend as the North Dakota fallen firefighters memorial weekend and require that flags at state buildings be flown at half staff.

1-03-17. Patriots' Day 🗎 PDF 

The third Monday in April of each year is Patriots' Day. To commemorate the start of the American Revolutionary War and the battles of Lexington and Concord, the governor shall issue a proclamation each year designating the third Monday in April as Patriots' Day. This section may not be interpreted to make Patriots' Day a day on which schools and other entities are required to close.

1-03-18. Juneteenth 🗎 PDF 

To commemorate the ending of slavery in the United States, the nineteenth of June of each year is designated and established as Juneteenth for the state of North Dakota.

01-03-19. Right-To-Life Day 🗎 PDF 

To celebrate the right-to-life, reaffirm the dignity and value of every human being, and to give thanks for the gift of life, the twenty-second of January of each year is designated and established as Right-To-Life Day.

1-03-20. Fetal Alcohol Spectrum Disorder Awareness Day 🗎 PDF 

To celebrate the life of all affected by fetal alcohol spectrum disorder, reaffirm the dignity and value of every human being, and to create awareness of the number of people affected by the disorder, the ninth day of September of each year is designated and established as Fetal Alcohol Spectrum Disorder Awareness Day for the state of North Dakota.

1-03-21. Military Appreciation Month 🗎 PDF 

May of each year is Military Appreciation Month. Each year the governor shall issue a proclamation on May first in honor of the men and women of the United States armed forces who have served and are now serving, and the significant contributions and incredible sacrifices they have made and continue to make in the defense of this nation and the preservation of our freedom.

1-03-22. Prisoner of War and Missing in Action Day 🗎 PDF 

The third Friday in September of each year is Prisoner of War and Missing in Action Day. To remember and honor the sacrifices of those who were held captive and returned, as well as those who remain missing, the governor shall issue a proclamation each year designating the third Friday in September as Prisoner of War and Missing in Action Day, a state holiday. This section may not be interpreted to make Prisoner of War and Missing in Action Day a day on which schools and other entities are required to close.

1-03-23. North Dakota Constitution Day 🗎 PDF 

To commemorate the adoption of the Constitution of North Dakota on August 17, 1889, by constitutional convention, and the ratification by vote on October 1, 1889, by the people of the territory that would become North Dakota, and to encourage state citizens to seek greater knowledge and understanding of the Constitution of North Dakota, the first of October of each year is designated and established as North Dakota Constitution Day.

Chapter 04 — Validation Of Instruments

1-04-01. Execution, acknowledgment, filing, and recording legalized 🗎 PDF 

The execution, acknowledgment, filing, and recording of all deeds, leases, mortgages, assignments, satisfactions, and other written instruments affecting the title to real property in this state, in good faith made, taken, or certified, and which have been filed or recorded in the proper counties of this state for a period of five years or more, are declared to be legal and valid for all purposes, anything in the laws of this state, or of any other state, territory, or country at the time of the execution, acknowledgment, filing, or recording to the contrary notwithstanding.

1-04-02. Acts of executors, administrators, deputies, officers, or attorneys in fact legalized 🗎 PDF 

The acts of each properly appointed and constituted executor, administrator, guardian, officer of a corporation, manager of a limited liability company, deputy public officer, and attorney in fact, done in good faith, in the execution and acknowledgment of any instrument mentioned in section 1-04-01, hereby are declared to be valid for all purposes, notwithstanding the fact that such executor, administrator, guardian, officer of a corporation, manager of a limited liability company, deputy public officer, or attorney in fact may not have signed the same in the form required by the law in force at the time of execution, or that the same was not sealed or stamped as required by laws in force at such time, or that the certificate of acknowledgment thereon may not be in the form required by law at the time of making the same.

1-04-03. Acts of notary public and other officers legalized 🗎 PDF 

The acts of every notary public, county justice, or other officer, done in good faith in taking or certifying to the acknowledgment of any instrument mentioned in section 1-04-01, whether within or without the state, and whether such officer was qualified by law at the time to do so or not, hereby are declared legal and valid for all purposes.

1-04-04. Good faith presumed 🗎 PDF 

Good faith is presumed on the part of each person and officer in the execution, acknowledgment, filing, and recording of such instruments as are mentioned in section 1-04-01, and it is presumed prima facie that each officer acted therein within the scope of that officer's authority.

1-04-05. Prior instruments legalized 🗎 PDF 

Any instrument affecting a lien upon, title to, or interest in, real estate executed and acknowledged in good faith by the treasurer or cashier in behalf of any loan, trust, or banking corporation, or by the regional treasurer of any United States corporation, prior to July 1, 1937, is declared valid and effectual to the same extent as it would have been had sections 6-08-21, 10-07-01, and 10-07-02 been in force at the time of its execution.

1-04-06. Instruments affecting real or personal property by representative legalized 🗎 PDF 

If any instrument affecting real or personal property in this state heretofore executed by or to any person purporting to act in a representative capacity fails clearly to identify the beneficiary and the nature of the trust, the person by or to whom such instrument was executed, within six months after the taking effect of this code, may file and have recorded in the office of the recorder of the county in which such instrument was recorded, a statement in writing, referring to any such instrument by date, name of the parties, when and where recorded, the nature of the instrument, a description of the property affected thereby, and fully and clearly by name identifying the beneficiary and the nature of the trust. Such statement must be acknowledged so as to entitle the same to record.

1-04-07. Assignment of mortgage by foreign executor, administrator, or guardian 🗎 PDF 

Any assignment of a mortgage upon property within this state heretofore made by any executor or administrator appointed in any other state or foreign country on the estate of any person where no executor or administrator had been appointed in this state, if such executor or administrator has filed in the office of the recorder of any county in which any such mortgage was filed or recorded an authenticated copy of the person's appointment, and any assignment of a mortgage upon property within this state heretofore made by any heir or legatee of such deceased person, if such heir or legatee has recorded in the office of the recorder an authenticated copy of the judgment or decree of the foreign court transferring to such heir or legatee the ownership of such mortgage, and any assignment of a mortgage upon property within this state heretofore made by any guardian appointed in any other state or foreign country, of a minor, spendthrift, or an individual who is incompetent, holding and owning a mortgage upon property in this state, if such guardian has filed in the office of the recorder of the county in which the property is situated an authenticated copy of the person's appointment as guardian, and an authenticated copy of the judgment or decree of the foreign court, if any, transferring to the guardian's ward the ownership of such mortgage, if such assignment was made prior to the date of the taking effect of this code, hereby is declared to be legal and valid for all purposes, and of the same force and effect as though such executor, administrator, guardian, heir, or legatee had been authorized specifically by law to make such assignment. The provisions of this section apply to all mortgages, judgments, or other liens upon real or personal property, and to the foreclosure of any such mortgage or lien on real or personal property.

1-04-08. Deed to real property by receiver of foreign corporation 🗎 PDF 

Any deed to real property in this state made by the duly appointed and qualified receiver of a foreign corporation prior to January 1, 1943, under order of a foreign court having jurisdiction of such corporation, hereby is declared valid and sufficient. In any such case there shall be recorded in the office of the recorder where such real property is situated a properly authenticated copy of the order of appointment of such receiver and the order of the foreign court having jurisdiction of such foreign corporation authorizing or approving the conveyance.

1-04-09. Curing defects in title to real property 🗎 PDF 

Any corporation organized otherwise than under the laws of this state, having acquired, or attempted to acquire, or to convey legal title by deed or lease to any real property in this state, before complying with the provisions of North Dakota law governing foreign corporations, which prior to July 1, 1959, has complied with those laws is relieved from any disability or prohibition relating to the acquisition and holding of the property so acquired, or attempted to be acquired, and the title so acquired, or attempted to be acquired, hereby is confirmed.

1-04-10. Deeds, judgments, decrees, mortgage foreclosures, and other transfers legalized 🗎 PDF 

Any deed, judgment, decree, mortgage foreclosure, or other transfer, including a sheriff's certificate of sale, affecting the title to real property in this state, in good faith taken, made, or rendered in favor or in the name of a deceased person, or in the name of the estate of a deceased person, or to the executor or administrator thereof, prior to January 1, 1943, must be construed and held to be made and to be in favor of the domestic or foreign executor or administrator, as the case may be, of the estate of such deceased person, and the same hereby is declared to be legal and valid for all purposes. Such executor or administrator hereby is authorized and empowered to assign, transfer, and set over any such property to the person entitled thereto. If a final decree of distribution has been issued by any domestic or foreign court relating to any property so acquired, assigning or transferring any such property to any person, such final decree of distribution shall vest in and transfer to such person so designated, fully and completely, all right, title, interest, claim, or demand thereto of the deceased and the estate of the deceased person.

1-04-11. Issuance of sheriff's deed pursuant to decree of court 🗎 PDF 

If a sheriff's certificate of sale of any real property in this state, made in favor or in the name of a deceased person, or of the estate of a deceased person, or the executor or administrator thereof, prior to January 1, 1943, on which a sheriff's deed has not been issued, it is lawful and proper in case of the issuance of a sheriff's deed upon such certificate, to issue the same to the domestic or foreign executor or administrator of said estate, as the case may be, or if a final decree of distribution has been issued by any domestic or foreign court having jurisdiction and control of a mortgage under and through which a sheriff's certificate was obtained assigning or transferring such sheriff's certificate to any person, it is lawful and proper to issue a sheriff's deed to the person to whom such certificate has been assigned or transferred, upon the recording of an authenticated copy of such decree in the office of the recorder of the county in which such property is located. The fact that any such deed, judgment, decree, or other transfer has been issued, is in itself presumptive evidence of good faith.

1-04-12. Separate deeds of husband and wife to same property legalized 🗎 PDF 

In any case where a married man or woman, prior to January 1, 1943, conveyed real property which may have been the homestead of the husband, or the wife, or the family, by a deed duly signed and acknowledged by the husband or wife only, but not signed by the other, and the husband or wife who did not join the other in executing a deed, either before or after, by a deed duly signed and acknowledged, conveys the same real estate to the same grantee or a subsequent grantee, the conveyance by such separate deed is declared to be valid and effectual to pass the title to such grantee or subsequent grantee the same as if the conveyance had been made by a single instrument duly executed and acknowledged by both husband and wife.

1-04-13. Validating deed or mortgage 🗎 PDF 

The record in the office of the recorder, prior to January 1, 1943, of a deed, mortgage, or assignment of mortgage which has failed to contain the post-office address of the grantee, mortgagee, or assignee named in such deed, mortgage, or assignment as provided by section 35-03-04, if such deed, mortgage, or assignment otherwise was entitled to record, is hereby validated and declared to be operative fully as constructive notice.

1-04-14. Validation of mineral reservations and deeds 🗎 PDF 

Notwithstanding the provisions of sections 47-10-21 and 47-10-22:
  1. All reservations of minerals or mineral deposits other than coal, contained in all deeds and transfers of real property in this state; and
  2. All conveyances and transfers of minerals or mineral deposits other than coal, separate from the surface rights, by mineral deed or otherwise, executed prior to January 1, 1943, hereby are declared legal and valid for all purposes. No action to contest the validity or legality of such reservations or conveyances or transfers by reason of any of the said provisions may be brought in the courts of this state unless commenced within ninety days after the taking effect of this code.

1-04-15. Validation of oil and gas leases adopted by board of county commissioners prior to July 1, 1941 🗎 PDF 

All confirmations, approvals, and adoptions of oil and gas leases made by any board of county commissioners prior to July 1, 1941, and which comply substantially with the terms and conditions of chapter 38-09, are declared valid.

1-04-16. Validation of oil and gas leases made by executor, administrator, or guardian prior to March 7, 1941 🗎 PDF 

A lease made for any of the purposes mentioned in section 30-13-05 and which has been executed and delivered under the authority of an order of a county court having jurisdiction, or which was approved by such court prior to March 7, 1941, is declared legal and valid.

1-04-17. Validation of oil and gas leases adopted by governing body of township, city, school district, or park district 🗎 PDF 

All oil and gas leases executed prior to July 1, 1941, by the governing body of a township, city, school district, or park district, covering lands under its control, are declared to be valid.

1-04-18. Validating certain mineral deeds 🗎 PDF 

Any record of a mineral deed actually made in the office of the recorder of any county of this state prior to March 7, 1941, is declared to be valid and fully operative as constructive notice though it was not certified for transfer by the county auditor as provided by section 11-13-12, and though at the time such deed was filed for record and actually recorded there may have been delinquent taxes or special assessments on the land described in such deed.

1-04-19. Validation of conveyances made under decree of specific performance 🗎 PDF 

Every conveyance of real estate made prior to January 1, 1943, by an executor or administrator of an estate pursuant to a decree of specific performance rendered by any county court of this state, as provided by section 30-13-12, without the entry of a subsequent order or judgment approving or confirming such conveyance, is hereby declared valid and of full force and effect if:
  1. Such estate has been closed;
  2. The executor or administrator has been discharged; and
  3. The conveyance was legal.

1-04-20. Validating transfers in joint tenancy 🗎 PDF 

Any transfer of any legal or equitable title to or interest in any real property in the state of North Dakota made prior to March 5, 1943, by any person, firm, or corporation to himself, herself, or such firm or corporation and any other person or persons, firm or firms, corporation or corporations, including the spouse or spouses of said grantor or grantors, in joint tenancy with right of survivorship, is declared legal and valid.

1-04-21. Validation of acknowledgments heretofore taken 🗎 PDF 

Any and all acknowledgments taken before March 5, 1943, and subsequent to September 16, 1940, in substantial compliance with the provisions of sections 47-19-17 and 47-19-31 are hereby declared legal and valid for all purposes and to the same extent as acknowledgments taken subsequent to the effective date of said sections.

1-04-22. Validating deed or mortgage 🗎 PDF 

The record in the office of the recorder, prior to January 1, 1955, of a deed, mortgage, or assignment of mortgage which has failed to contain the post-office address of the grantee, mortgagee, or assignee named in such deed, mortgage, or assignment as provided by section 35-03-04, if such deed, mortgage, or assignment otherwise was entitled to record, is hereby validated and declared to be operative fully as constructive notice.

Chapter 05 — Validation Of Execution And Foreclosure Sales

1-05-01. Delayed recording - Sheriff's certificate of sale validates 🗎 PDF 

Any sale of real estate made under execution or in foreclosure of a mortgage, prior to January 1, 1943, hereby is declared to be legal and valid for all purposes though the sheriff's certificate of sale issued in completion of such sale was not filed for record in the office of the recorder within sixty days after the date of such sale, but this provision does not apply to nor affect any action or proceeding pending in any court of this state upon the taking effect of this code.

1-05-02. Validation of powers of attorney 🗎 PDF 

All sales of real estate made in proceedings for the foreclosure of mortgages prior to January 1, 1943, hereby are declared legal and valid for all purposes even though:
  1. The power of attorney to foreclose was not recorded in the office of the recorder of the county wherein said real estate is located on or before the date of sale but was executed before the date of sale and is recorded in the office of the recorder of the county wherein said real estate is located within six months after the taking effect of this code; or
  2. The power of attorney to foreclose was not executed and delivered to the attorney named therein prior to the commencement of such foreclosure proceedings but was executed and recorded in the office of the recorder of the county wherein said real estate is located prior to the time of said sale.

1-05-03. Validation of foreclosure - Assignment unrecorded 🗎 PDF 

Any sale of real estate under a judgment of foreclosure entered prior to the passage and taking effect of this code hereby is declared legal and valid for all purposes, though any assignment of the mortgage foreclosed was not recorded prior to the institution of the action to foreclose, if such assignment was executed and recorded before the entry of such judgment.

1-05-04. Validation of foreclosure of mortgage by foreign executor, administrator, or guardian 🗎 PDF 

If any real estate mortgage given prior to January 1, 1943, was foreclosed in any action or proceeding by a foreign executor, administrator, or guardian, such foreclosure, after six months from and after the date this code takes effect, may not be set aside by reason of the appointment of a resident executor, administrator, or guardian, or by reason of the failure of any such foreign executor, administrator, or guardian to file an authenticated copy of the person's appointment as such executor, administrator, or guardian, in the office of the clerk of the district court, or to record such copy in the office of the recorder of the county in which the action or proceeding to foreclose such mortgage was commenced, if a certified copy of such appointment heretofore has been recorded in such county, and if in the action or proceeding to foreclose such mortgage a sheriff's certificate has been issued prior to January 1, 1943.

1-05-05. Validating foreclosure when proceedings defective 🗎 PDF 

From and after January 1, 1944, no action may be commenced or maintained, and no defense or counterclaim in any action shall be recognized, in the courts of this state, upon the ground that any real estate mortgage foreclosure, sale in connection with which was had prior to January 1, 1943, is defective, legally insufficient, or void, unless such action, defense, or counterclaim is upon grounds other than the following:
  1. That no notice of intention to foreclose the mortgage was served upon the record owner or other person or persons in the manner required by law, or that any such notice is defective in form or substance, or in manner of service or filing;
  2. That no application for permission to foreclose such mortgage was made to or granted by the district court;
  3. That the printer's affidavit of publication of the notice of mortgage foreclosure sale in connection with such foreclosure was made by an employee of the newspaper printing the notice, other than the printer, publisher, foreman, clerk, or bookkeeper of such newspaper; or
  4. That no power of attorney, or attorney's affidavit was filed or recorded as provided by law.

1-05-06. Action to set aside mortgage foreclosure - Time limitation 🗎 PDF 

After January 1, 1944, all proceedings for and preliminary to the foreclosure of a real estate mortgage if sale was had prior to January 1, 1943, are deemed valid and sufficient notwithstanding the defects enumerated in section 1-05-05.

1-05-07. Validation of foreclosure sale without notice of intention 🗎 PDF 

Any sale of real estate heretofore or hereafter made upon the foreclosure of a mortgage executed prior to July 1, 1919, is declared legal and valid for all purposes though no notice of intention to foreclose has been given or served as required by section 32-19-20.

Chapter 06 — Validation Of Official Acts

1-06-01. Validating certain city elections 🗎 PDF 

All acts done prior to March 9, 1937, in connection with the calling, giving notice, holding, or in anywise appertaining to a special election held in any city on the question of erecting, operating, and maintaining an electric light and power plant, site, buildings, and equipment thereof, for the purpose of furnishing electric energy for heat, light, and power for such city and its inhabitants and industries, and to pay for the cost thereof from the earnings thereof, if a majority of the voters voting at such election voted in favor of erecting, operating, and maintaining such a system, hereby are validated notwithstanding any defects, errors, or omissions in any of the acts done. Any such city hereby is authorized to erect, operate, and maintain an electric light and power plant, site, buildings, distribution system, and equipment thereof for the purpose of furnishing electric energy for heat, light, and power for the inhabitants and industries of such city.

1-06-02. Validation of acts of board of county commissioners and state highway commission 🗎 PDF 

All acts or proceedings irregularly done or had, by any board of county commissioners and the state highway commission, prior to February 13, 1929, for the acquisition of any land to constitute part of any state highway, or for any state highway purpose, whether acquired by purchase or condemnation, either voluntarily by such board of county commissioners, or upon motion, request, or petition of the state highway commission, and the issuance of any warrant by any county auditor, and the payment thereof by any county treasurer, pursuant to such acts and proceedings, are hereby confirmed, ratified, and declared legal the same as if such acts and proceedings had been done according to law.

1-06-03. Validation of acts of state water commission 🗎 PDF 

All acts and proceedings of the water commission done and performed by said commission under and pursuant to the provisions of chapter 61-02 are declared valid in all things.

1-06-04. Validating organization and acts of irrigation districts 🗎 PDF 

The organization of any irrigation district prior to the passage, approval, and taking effect of this code in substantial compliance with the provisions of the statutes of this state authorizing the organization of irrigation districts is hereby declared to be a valid and legal district, and all acts and proceedings of such district, and of the board of directors thereof, done and performed in substantial compliance with such statutes, are hereby declared legal and valid.

1-06-05. Municipal transfers validated 🗎 PDF 

Any sale or transfer of lands acquired by any municipality under the provisions of section 11-27-08, by any governing body of any municipality or park district in this state is hereby validated and confirmed and declared to be fully effective and operative to convey the estates therein granted, free and clear of any restrictions as to their use for park purposes. The provisions of this section apply to all estates granted or conveyed prior to March 3, 1955.

1-06-06. Improvement district proceedings validated 🗎 PDF 

In all cases where the governing body of any city with a population of over ten thousand has heretofore entered into an agreement with the department of transportation of the state of North Dakota for the improvement of streets and construction of street lights, sewers, water mains or any of such facilities, and for such purpose has created a special improvement district or districts and has by resolution declared the necessity of such improvement, whether or not final plans and specifications for such work and estimates of the cost thereof have previously been prepared and filed, and has caused such resolution to be published in the official newspaper of the city, and no protests have been filed with the city auditor within thirty days after the first publication of such resolution by owners of property situated within the improvement district, or the protests so filed are signed by owners of less than seventy-five percent of such property, all such proceedings are hereby legalized and validated, notwithstanding any errors, omissions or defects therein, including, but without limitation, any defect which exists or may exist by reason of the execution of any such agreement and the award of a contract for construction of all or any part of any such improvement by the city or the department of transportation prior to the adoption of and hearing of protests against the resolution of necessity, and any and all such agreements and contracts heretofore entered into are likewise legalized and validated, and such cities are hereby authorized to pay all or any part of their share of the cost of any such improvement by the levy of special assessments upon benefited properties within the improvement district created therefor, or by the levy of ad valorem taxes upon all taxable property within their corporate limits, or by both of such means, in the manner prescribed in title 40, provided that in no case may the principal sum be paid initially by the levy of ad valorem taxes exceed twenty percent of the total cost of any such improvement, and such cities are further authorized to issue warrants in anticipation of the collection of such special assessments and taxes and to take all measures for the collection of said assessments and taxes and the payment of said warrants as are provided in said title 40.

1-06-07. Validation of documents executed with facsimile signatures 🗎 PDF 

Licenses, permits, or other authorizations provided for by the statutes, ordinances, resolutions, or rules of this state, any city, county, school district, or other political subdivision which were executed with a facsimile signature which was on file with the appropriate office at the time of execution may not be declared invalid solely by virtue of the fact they were executed with a facsimile signature.

Chapter 07 — Validation Of Municipal Securities

1-07-01. Definitions 🗎 PDF 

In this chapter, unless the context or subject matter otherwise requires:
  1. "Bonds" include bonds, notes, warrants, debentures, certificates of indebtedness, temporary bonds, temporary notes, interim receipts, interim certificates, and all instruments or obligations evidencing or representing indebtedness or evidencing or representing the borrowing of money, or evidencing or representing a charge, lien, or encumbrance on specific revenues, income of property of a public body, and all instruments or obligations payable from a special fund.
  2. "Public body" means the state of North Dakota, any county, city, township, and any school district of any class.

1-07-02. Validation of bonds issued in financing project under federal emergency administration of public works 🗎 PDF 

All bonds issued prior to July 1, 1937, for the purpose of financing or aiding in the financing of any work, undertaking, or project by any public body to which any loan or grant heretofore has been made by the United States through the federal emergency administrator of public works for the purpose of financing or aiding in the financing of such work, undertaking, or project, including all proceedings for the authorization and issuance of such bonds, and the sale, execution, and delivery thereof, are validated, ratified, approved, and confirmed, notwithstanding:
  1. Any lack of power, other than constitutional, of such public body or the governing body, commission, or officers thereof, to authorize and issue such bonds, or to sell, execute, or deliver the same;
  2. Any defects or irregularities, other than constitutional, in such proceedings, or in such sale, execution, or delivery; and
  3. That such governing body, commission, or officers may not have been elected, appointed, or qualified for the offices they purported to hold. Such bonds are and shall be binding, legal, valid, and enforceable obligations of such public body.

1-07-03. Validation of proceedings in financing project under federal emergency administration of public works 🗎 PDF 

All proceedings, taken prior to July 1, 1937, for the purpose of financing or aiding in the financing of any work, undertaking, or project by any public body or by any board of flood irrigation to which any loan or grant is under contract to be made by the United States through the federal emergency administrator of public works for the purpose of financing such work, undertaking, or project, including all proceedings for the authorization and issuance of bonds, and for the sale, execution, and delivery thereof, are validated, ratified, approved, and confirmed, notwithstanding:
  1. Any lack of power, other than constitutional, of such public body, the governing body, or commission, or officers thereof, or of any board of flood irrigation to authorize and issue such bonds, or to sell, execute, or deliver the same;
  2. Any defects or irregularities, other than constitutional, in such proceedings, including the fact that notices in connection with the creation of any flood irrigation district or hearings for the assessment of damages and benefits resulting from flood irrigation projects may not have been given in accordance with the statutes; and
  3. That the members of such governing body may not have been elected, appointed, or qualified for the office they purported to hold.

1-07-04. Procedure on public securities of municipalities validated 🗎 PDF 

Validations heretofore effected by legislative enactment of defective or irregular procedure in the creation, execution, or issuance of bonds or any other forms of public securities of any municipality, and validations of debts, bonds, or other public securities of such municipalities theretofore contracted or issued without authority previously existing therefor, shall continue unaffected by the repeal or by the consolidation and revision of any validating act. Any debts, bonds, or other public securities may be funded or refunded under the provisions of title 21.

1-07-05. Validation of elections on bond issues for municipal sewer and water systems 🗎 PDF 

All elections held prior to February 1, 1939, for the purpose of voting on the issuance of bonds for the joint construction of a water and sewer system are declared legal and valid notwithstanding the combination of such purposes in the question submitted to the voters.

1-07-06. Validating sales of lands for special assessments made prior to March 17, 1937 🗎 PDF 

All sales of real property for delinquent special assessments, or installments thereof, made prior to March 17, 1937, by any county auditor under section 40-25-09 hereby are declared to be valid sales notwithstanding the fact that the real property subject to sale for delinquent general taxes and delinquent special assessments, or installments thereof, were not sold separately as required by said section and notwithstanding the fact that separate certificates were not issued for the delinquent general taxes and the delinquent special assessments or installments thereof.

1-07-07. Validating proceedings by county funding and refunding indebtedness 🗎 PDF 

Repealed by S.L. 1981, ch. 277, § 2.

1-07-08. Validation of acts of municipal officers 🗎 PDF 

Where the officers of any incorporated city of this state, prior to July 1, 1929, have purchased, erected, operated, maintained, enlarged, improved, extended, or leased from any person, firm, or corporation, or sold or leased to any person, firm, or corporation, any electric plant, system, or line, or part thereof, such acts of such municipal officers are legalized and validated.

1-07-09. Validation of bonds and warrants of municipality for electric plant 🗎 PDF 

Repealed by S.L. 1981, ch. 277, § 2.

1-07-10. Validating county poor relief warrants and levies 🗎 PDF 

Repealed by S.L. 1981, ch. 277, § 2.

1-07-11. Limitations on validation of poor relief warrants and levies 🗎 PDF 

Repealed by S.L. 1981, ch. 277, § 2.

1-07-12. Validation of tax levies for payment of poor relief warrants 🗎 PDF 

Repealed by S.L. 1981, ch. 277, § 2.

1-07-13. Validating refunding special assessment warrants 🗎 PDF 

Repealed by S.L. 1981, ch. 277, § 2.

1-07-14. Previous validating acts not repealed 🗎 PDF 

Repealed by S.L. 1981, ch. 277, § 2.

Chapter 08 — Miscellaneous

1-08-01. Validating legal publications 🗎 PDF 

Any publication of any nature, required by law to be made in an official or legal newspaper and made prior to January 1, 1943, in any newspaper published in the state of North Dakota, is declared valid and of the same force and effect as though made in full compliance with the then existing statutes.

1-08-02. Authority for devises, bequests, legacies, and gifts to state institutions 🗎 PDF 

Devises, legacies, bequests, and gifts may be made lawfully to any state educational, charitable, or penal institution, and the title to any property, real, personal, or mixed which shall be devised, bequeathed, or given to any such institution, or to the state of North Dakota for the use and benefit thereof, shall vest in the state of North Dakota, to be held by it in trust for the benefit and use of the institution to which or for whose benefit such devise, legacy, bequest, or gift is made. Unless otherwise authorized by the will or other instrument providing for such devise, bequest, legacy, or gift, no part of said property, nor the income therefrom, may be diverted or used for any other purpose.

1-08-03. Validating devises, bequests, legacies, and gifts to state institutions 🗎 PDF 

All devises, bequests, legacies, and gifts made, executed, and delivered, prior to January 1, 1943, to any state educational, charitable, or penal institution, whether vested or not, and whether executed or executory, accrued or to accrue, and all provisions in any will making any such devise, bequest, legacy, or gift, are hereby declared to be legal and valid for all purposes, and subject to the provisions of this code.

1-08-04. Authorizing state and counties, cities, and other municipalities to accept devises, bequests, legacies, and gifts 🗎 PDF 

Devises, legacies, bequests, and gifts may be lawfully made to the state or any county, township, city, school district, or park district of the state of North Dakota. The title to any property that is devised, bequeathed, or given to the state, or to any such county, township, city, school district, or park district, for the use and benefit thereof, vests in the state or such county, township, city, school district, or park district, to be by it held in trust under the terms and conditions provided for in the devise, legacy, bequest, or gift. Unless otherwise authorized by the will or other instrument providing for the devise, legacy, bequest, or gift, no part of the property, nor of the income therefrom, may be diverted or used for any other purpose. The officers charged with the management of the fiscal affairs of the state may only accept and receive a devise, legacy, bequest, or gift that is consistent with the statutory responsibilities of the specific officer involved. The officers charged with the fiscal management of any county, township, city, school district, or park district may accept and receive any such devise, legacy, bequest, or gift. The officer who accepts and receives the devise, legacy, bequest, or gift shall administer the same for and on behalf of the state, or any such county, township, city, school district, or park district.

1-08-04.1. State property having historical or artistic significance - Responsibilities of state historical society and council on the arts - Review and advice on property for exhibition 🗎 PDF 

Except for the board of higher education and state institutions under the jurisdiction of the board, every state official or entity that, on behalf of the state, holds, acquires, or receives property having historical or artistic significance shall document and inventory that property on forms furnished by the state historical society. One copy of the completed form must be retained in the office of that official or entity and one copy must be filed with the state historical society. The information filed with the society must include a description of the property, the identity of the donor if acquired by gift, the date the property was acquired or received, any conditions on acceptance of the property if given by gift, and appropriate evidence of ownership. The information must also indicate whether the property is intended for permanent or long-term exhibition on the capitol grounds or in public areas in the state capitol. With respect to property intended for permanent or long-term exhibition on the capitol grounds or in public areas in the state capitol, the state historical society shall notify the state council on the arts. The council on the arts shall advise the capitol grounds planning commission with respect to permanent or long-term exhibition of the property on the capitol grounds or in public areas in the capitol. Before transfer of ownership or other disposal of property documented and inventoried under this section, that property must be offered to the state historical society for inclusion in its historical collections.

1-08-05. Validating proceedings of a corporation by two-thirds vote 🗎 PDF 

Proceedings had or authorized prior to July 1, 1941, by a two-thirds vote shall be in all things deemed legal and binding upon all stockholders or members of a corporation unless, within ninety days after this code takes effect, nonassenting stockholders or members by action to enjoin or by other appropriate judicial process shall question the legality of any sale made or act done pursuant to such authorization.

1-08-06. Validation of certain sales 🗎 PDF 

Any sale of real property made and consummated more than three years prior to March 7, 1931, by any board of county commissioners in any county in this state, under the provisions of section 11-11-14, hereby is validated and confirmed. No action hereafter may be commenced to vacate or set aside the same.

1-08-07. Validation of flood irrigation proceedings 🗎 PDF 

All proceedings had or taken by the board of county commissioners of any county of this state to appoint a board of flood irrigation in such county, and all proceedings had or taken by the board of flood irrigation appointed to establish and construct flood irrigation projects in the county, and all indebtedness incurred by either or both of said boards to establish, construct, and complete any such flood irrigation project, and all proceedings had or taken prior to February 15, 1937, to assess benefits or levy assessments and taxes for the cost thereof, including notices of hearings in connection with the creation of any flood irrigation district or for any assessment of damages and benefits resulting from flood irrigation projects, and all bonds, warrants, orders, or other evidences of indebtedness, and all obligations incurred to establish and construct any such flood irrigation projects, hereby are declared to be valid and legal. All bonds, warrants, or other evidences of indebtedness issued to fund said indebtedness or any part thereof, or to finance the cost of any such flood irrigation project the construction of which was started prior to such date, hereby are declared to be valid and legal obligations, notwithstanding any defects in giving notice of hearings, or any other irregularities in any proceedings.

1-08-08. Validation of land titles acquired by corporations before March 7, 1935 🗎 PDF 

The title and ownership of any real estate acquired in any manner by any domestic or foreign corporation after July 29, 1932, and before March 7, 1935, is declared to be valid for all purposes, subject, however, to chapter 10-06.1.

1-08-09. Service of civil process within boundary of an open polling place 🗎 PDF 

During any primary, general, or special election held in this state, or in any district, county, city, or precinct, civil process may not be served on any person entitled to vote at the election within one hundred feet [30.48 meters] from the outermost entrance leading into the building or facility in which a polling place is located and open for voting.

1-08-10. Acceptance by North Dakota of cession of property by Minnesota 🗎 PDF 

Whereas, due to flood control work upon the Red River of the North, an avulsion has occurred leaving two parcels of land described as: Those portions of government lot two in the northeast quarter, section twenty-nine, township one hundred forty north, range forty-eight west and the northeast quarter, section seven, township one hundred thirty-nine north, range forty-eight west of the fifth principal meridian, county of Clay, state of Minnesota, bounded by the thread of the Red River of the North as it existed prior to January 1, 1959, and the new thread of the Red River of the North as established by the United States army corps of engineers under Project CIVENG-21-018-59-22, containing respectively nine and seventy-eight hundredths and twelve and seventy-six hundredths acres [3.95 and 5.16 hectares] more or less, detached from the state of Minnesota and attached to the state of North Dakota. The state of North Dakota, upon passage by the legislature of the state of Minnesota of the necessary enabling legislation, does hereby accept jurisdiction over the above-described property, which property shall thereafter be a part of the state of North Dakota and title thereof shall be vested in the city of Fargo, North Dakota. Nothing contained in the provisions of this section shall be construed in such manner as to prejudice the title, right, or claim of any person to any of the lands herein involved. The recorder of Cass County, North Dakota, shall accept and record, without charge therefor, patents, deeds, or other evidences of ownership or interest in any lands recorded in Clay County, Minnesota, which were previously a part of the state of Minnesota but are now within the boundaries of the state of North Dakota. Recordings made under the provisions of this section have retroactive effect to the date of their original recording in the state of Minnesota. The act of the legislature of the state of Minnesota referred to in this section, together with this section, shall constitute the agreement between the states of Minnesota and North Dakota. The Congress of the United States, upon passage of such acts by the respective legislatures of the states of Minnesota and North Dakota, is petitioned, pursuant to article 1, section 10, clause 3 of the Constitution of the United States, to give its consent to this agreement and to amend the enabling acts of such states accordingly. The secretary of state of North Dakota shall transmit duly certified copies of this act to the presiding officers of the senate and house of representatives of the United States and to the several senators and representatives of the states of Minnesota and North Dakota in the Congress of the United States, who are petitioned to take such action as they deem proper to procure the consent of the Congress of the United States to this agreement between the states of Minnesota and North Dakota. This agreement shall become effective when it has been ratified and approved by the legislatures of the states of Minnesota and North Dakota and approved by the Congress of the United States.

1-08-11. Acceptance by North Dakota of cession of property by Minnesota 🗎 PDF 

Whereas, due to the construction of a dam on the Red River of the North for industrial and municipal water supply purposes, an avulsion has occurred leaving a parcel of land described as: That portion of government lot one, section eighteen, township one hundred fifty-nine north, range fifty west of the fifth principal meridian, county of Kittson, state of Minnesota, bounded by the thread of the Red River of the North as it existed prior to April, 1964, and the thread of the new channel and spillway constructed to the east of the old channel said parcel contains two and eighty-three hundredths acres [1.14 hectares] of land more or less, detached from the state of Minnesota and attached to the state of North Dakota. The state of North Dakota, upon passage by the legislature of the state of Minnesota of the necessary enabling legislation, does hereby accept jurisdiction over the above-described property, which property shall thereafter be a part of the state of North Dakota and title thereto shall be vested in the city of Drayton, North Dakota. Nothing contained in the provisions of this section shall be construed in such manner as to prejudice the title, right, or claim of any person to any of the lands herein involved. The recorder of Pembina County, North Dakota, shall accept and record, without charge therefor, patents, deeds, or other evidences of ownership or interest in any lands recorded in Kittson County, Minnesota, which were previously a part of the state of Minnesota but are now within the boundaries of the state of North Dakota. Recordings made under the provisions of this section have retroactive effect to the date of their original recording in the state of Minnesota. The act of the legislature of the state of Minnesota referred to in this section, together with this section, shall constitute the agreement between the states of Minnesota and North Dakota. The Congress of the United States, upon passage of such acts by the respective legislatures of the states of Minnesota and North Dakota, is petitioned, pursuant to article 1, section 10, clause 3 of the Constitution of the United States, to give its consent to this agreement and to amend the enabling acts of such states accordingly. The secretary of state of North Dakota shall transmit duly certified copies of this act to the presiding officers of the senate and house of representatives of the United States and to the several senators and representatives of the states of Minnesota and North Dakota in the Congress of the United States, who are petitioned to take such action as they deem proper to procure the consent of the Congress of the United States to this agreement between the states of Minnesota and North Dakota. This agreement shall become effective when it has been ratified and approved by the legislatures of the states of Minnesota and North Dakota and approved by the Congress of the United States.

1-08-12. Alternative methods of signing, subscribing, or verifying documents filed by electronic means 🗎 PDF 

A state agency, as defined in section 44-08-04.2, charged by law with the duty of receiving signed, subscribed, or verified documents may accept such documents filed by electronic means, including telecommunications. The secretary of state may adopt rules in the manner provided in chapter 28-32 to govern methods for signing, subscribing, or verifying documents filed by electronic means, except documents filed with the tax commissioner. A signature on a document filed by electronic means which is accepted by the state agency and complies with the rules of the secretary of state has the same validity and consequence as the actual signature and written declaration for a paper document.

Title 2 — Aeronautics

Chapter 01 — Regulation

This chapter has been repealed. 🗎 PDF

Chapter 02 — Airports And Landing Fields

2-02-01. Authority to acquire, operate, and regulate airports 🗎 PDF 

The North Dakota aeronautics commission and all counties, cities, park districts, and townships of this state, separately or jointly, may acquire, establish, construct, expand, own, lease, control, equip, improve, maintain, operate, regulate, and police airports and landing fields for the use of aircraft either within or without the geographic limits of such political subdivisions, and may use for such purpose or purposes any available property owned or controlled by the state aeronautics commission or such political subdivisions. Any property acquired, owned, leased, controlled, or occupied for the purpose or purposes enumerated herein hereby is declared to be acquired, owned, leased, controlled, or occupied for a public purpose and as a matter of public need, and there is no liability on the part of the state aeronautics commission or any county, city, park district, or township in connection therewith, or in the operation thereof, except to its own employees.

2-02-02. Property - How acquired 🗎 PDF 

Private property needed by a county, city, park district, or township for an airport or landing field, or for the expansion of an airport or landing field, may be acquired by grant, purchase, lease, or other means, if the political subdivision is able to agree with the owners of the property on the terms of the acquisition, and otherwise, subject to chapter 32-15, by right of eminent domain.

2-02-03. Purchase price - How paid - Bond issue 🗎 PDF 

The purchase price or award for real property acquired in accordance with the provisions of this chapter for an airport or landing field may be paid for by appropriation of moneys available therefor or wholly or partly from the proceeds of the sale of bonds of said counties, cities, park districts, and townships, as the proper officials of such political subdivisions shall determine, but any bonds for such purpose must be authorized and issued under the provisions of chapter 21-03.

2-02-04. Air rights - How acquired 🗎 PDF 

Where necessary, in order to provide unobstructed air space for the landing and taking off of aircraft utilizing airports and landing fields acquired or maintained under the provisions of this chapter, the counties, cities, park districts, and townships may acquire such air rights over private property as are necessary to ensure safe approaches to the landing areas of said airports and landing fields. Such air rights may be acquired by grant, purchase, lease, or by right of eminent domain in the same manner as is provided in section 2-02-02 for the acquisition of the airport or landing field itself or the expansion thereof.

2-02-05. Rights for marking fields - How acquired 🗎 PDF 

Such political subdivisions may acquire the right or easement for a term of years or perpetually to place and maintain suitable marks for the daytime, and to place, operate, and maintain suitable lights for the nighttime marking of buildings or other structures or obstructions interfering with the safe operation of aircraft utilizing airports and landing fields acquired or maintained under the provisions of this chapter. Such rights or easements may be acquired in the manner provided in section 2-02-02.

2-02-06. Authority to construct, operate, regulate, or lease airports 🗎 PDF 

Counties, cities, park districts, and townships which have established airports or landing fields, or which acquire, lease, or set apart real property for such purpose or purposes, may:
  1. Construct, equip, maintain, and operate the same, or vest authority for the construction, equipment, improvement, maintenance, and operation thereof, in an officer, board, or body of such political subdivision. The expenses of such construction, equipment, improvement, maintenance, and operation are a responsibility of said political subdivision.
  2. Adopt regulations and establish charges, fees, and tolls for the use of such airports or landing fields and fix penalties for the violation of said regulations.
  3. Lease such airports or landing fields to private parties for operation, or lease or assign to private parties for operation, space, area, improvements, and equipment on such airports or landing fields, if in each case the public, in so doing, is not deprived of its rightful use thereof.
  4. Establish toll access roadways leading to air carrier terminal buildings. The toll access charge may not exceed one dollar per vehicle.

2-02-07. Authority to raise money by taxation and use airport income 🗎 PDF 

The local public authorities having power to appropriate moneys within the political subdivisions acquiring, establishing, developing, operating, maintaining, or controlling airports under the provisions of this chapter may appropriate and cause to be raised by taxation under section 2-06-15 or from revenue derived from general fund levy authority in such political subdivisions, moneys sufficient to carry out therein the provisions of this chapter, and also may use for such purpose or purposes moneys derived from said airports.

2-02-08. Police power outside geographic limits 🗎 PDF 

Counties, cities, park districts, and townships acquiring, establishing, developing, operating, maintaining, or controlling airports or landing fields under the provisions of this chapter without the geographic limits of such subdivisions have the same police powers over such airports or landing fields as they may exercise within the geographic limits of such subdivisions.

2-02-09. Authorization for airport liability insurance - Exceptions 🗎 PDF 

After June 30, 1967, any airport authority, county, city, township, or other political subdivision which operates an airport, is hereby authorized to carry liability insurance for its own protection and the protection of any employee from claim for loss or damage for bodily injury or property damage arising out of or by reason of its operation and maintenance of airport facilities in connection therewith or landing fields; provided, that any airport authority or political subdivision, and its agents, servants, and employees have full government immunity for any claims in excess of the limits afforded by such insurance policies or full governmental immunity in the event no insurance is carried. The existence of insurance coverage may not be conveyed to the jury in the event of suits thereon, either directly or indirectly. If a dispute exists concerning the amount or nature of the insurance coverage, the dispute must be tried separately before the main trial determining the claims and damages of the claimant. This statute confers no right for a claimant to sue the insurer directly.

Chapter 03 — Substantive And Jurisdictional Provisions

2-03-01. Definitions 🗎 PDF 

In this chapter, unless the context or subject matter otherwise requires:
  1. "Aircraft" means any contrivance now known or hereafter invented, used, or designed for navigation of or flight in the air. Provided, a hydroplane, while at rest on water and while being operated on or immediately above water, shall be governed by the rules regarding water navigation.
  2. "Airman" means any individual who engages, as the person in command, or as pilot or member of the crew, in the operating and navigation of an aircraft while underway.
  3. "Passenger" includes any person riding in an aircraft, but having no part in its operation.

2-03-02. Sovereignty in space 🗎 PDF 

Sovereignty in the space above the lands and waters of this state is declared to rest in the state, except where granted to and assumed by the United States pursuant to a constitutional grant from the people of this state.

2-03-03. Ownership of space 🗎 PDF 

The ownership of the space above the lands and waters of this state is declared to be vested in the several owners of the surface beneath, subject to the right of flight described in section 2-03-04.

2-03-04. Lawfulness of flight and landing 🗎 PDF 

Flight in aircraft over the lands and waters of this state is lawful, unless at such a low altitude as to interfere with the then existing use to which the land or water, or the space over the land or water is put by the owner, or unless so conducted as to be imminently dangerous to persons or property lawfully on the land or water beneath. The landing of an aircraft on the lands or waters of another, without the owner's consent, is unlawful except in the case of a forced landing. For damages caused by a forced landing, however, the owner or lessee of the aircraft or the airman is liable, as provided in section 2-03-05.

2-03-05. Damage to persons and property 🗎 PDF 

The owner and the pilot, or either of them, of every aircraft which is operated over the lands or waters of this state are liable for injuries to persons or property on the land or water beneath caused by the ascent, descent, or flight of the aircraft, or the dropping or falling of any object therefrom, in accordance with the rules of law applicable to torts in this state, unless the injury is caused in whole or in part by the negligence of the person injured, or of the owner or bailee of the property injured. If the aircraft is leased at the time of the injury to person or property, both owner and lessee are liable and they may be sued jointly, or either or both of them may be sued separately. An airman who is not the owner or lessee is liable only for the consequences of that person's own negligence. The injured person, or owner, or bailee of the injured property, has a lien on the aircraft causing the injury to the extent of the damage caused by the aircraft or objects falling from it. As used in this section, "owner" includes a person having full title to aircraft and operating it through servants, and also includes a bona fide lessee or bailee of such aircraft, whether gratuitously or for hire; but "owner", as used in this section, does not include a bona fide bailor or lessor of such aircraft, whether gratuitously or for hire, or a mortgagee, conditional seller, trustee for creditors of such aircraft or other person having a security title only, nor is the owner of such aircraft liable when the pilot thereof is in possession thereof as a result of theft or felonious conversion. The person in whose name an aircraft is registered with the United States department of transportation or the aeronautics commission of this state is prima facie the owner of such aircraft within the meaning of this section.

2-03-06. Collision of aircraft 🗎 PDF 

The liability of the owner of one aircraft to the owner of another aircraft, or to the airmen or passengers on either aircraft, for damage caused by collision on land or in the air, must be determined by the rules of law applicable to torts on land.

2-03-07. Aircraft - Common carriers 🗎 PDF 

Aircraft carrying passengers or property for hire are deemed common carriers and are subject to all of the rules applicable thereto.

2-03-08. Jurisdiction over crimes and torts 🗎 PDF 

All crimes, torts, and other wrongs committed by or against an airman or passenger while in flight over this state are governed by the laws of this state, and the question whether damage occasioned by or to an aircraft while in flight over this state constitutes a tort, crime, or other wrong by or against the owner of such aircraft, must be determined by the laws of this state.

2-03-09. Jurisdiction over contracts 🗎 PDF 

All contractual and other legal relations entered into by airmen or passengers while in flight over this state have the same effect as if entered into on the land or water beneath.

2-03-10. Reckless operation - Operation while intoxicated - Tampering with aircraft - Misdemeanors - Penalties 🗎 PDF 

  1. Any person who operates any aircraft within the airspace over, above, and upon the lands and waters of this state, carelessly and heedlessly in willful disregard of the rights or safety of others, or without due caution and circumspection in a manner so as to endanger or be likely to endanger any person or property, is guilty of a class A misdemeanor.
  2. Whoever operates any aircraft in this state on land, water, or in the air while in an intoxicated condition or while under the influence of alcoholic beverages or any controlled substance, is guilty of a class A misdemeanor.
  3. No person may act as a crew member of any aircraft or start an engine of any aircraft within eight hours after the consumption of any alcoholic beverage or while using any controlled substance that affects that person's faculties in any way contrary to safety. Anyone violating the provisions of this subsection is guilty of a class A misdemeanor.
  4. No person may, without express or implied authority of the owner, operate, climb upon, enter, manipulate the controls or accessories of, set in motion, remove parts or contents therefrom, or otherwise tamper with any civil aircraft within this state with intent to injure the same or cause inconvenience to the owner or operator thereof, or knowingly cause or permit the same to be done. Any person who violates any of the provisions of this subsection is guilty of a class B misdemeanor.

2-03-11. Notice 🗎 PDF 

Whenever a person, firm, corporation, limited liability company, or association shall erect anywhere in this state a building, structure, or tower of any kind over two hundred feet [60.96 meters] in height above the terrain such person, firm, corporation, limited liability company, or association shall first file a notice with the state of North Dakota aeronautics commission.

2-03-12. Obstructions near runway approaches 🗎 PDF 

It is unlawful to build or maintain any obstruction near the runway approach to any airport in the state open for public use, except pursuant to rules and regulations adopted by the aeronautics commission.

2-03-13. Penalty 🗎 PDF 

Each violation of section 2-03-11 or 2-03-12 or any regulations, orders, or rulings promulgated or made pursuant to this chapter constitutes a class A misdemeanor.

2-03-14. Civil liability for injuries to guest passenger 🗎 PDF 

No person transported by the owner or operator of any aircraft as a guest without payment for such transportation has claim for relief for damages against the owner or operator for injury, death, or loss in case of accident, unless the accident was caused by the gross negligence, intoxication, or willful and wanton misconduct of the owner or operator of the aircraft, and unless the gross negligence, intoxication, or willful and wanton misconduct of the owner or operator of the aircraft contributed to the injury, death, or loss. No person so transported has claim for relief if that person has willfully or by want of ordinary care brought about that person's own injury. For purposes of this section, the word "guest" means any person other than an employee of the owner or registrant of any aircraft, or of a person responsible for its operation with the owner's or registrant's express or implied consent, being in or upon, entering or leaving the same, except any passenger for hire and except any passenger while the aircraft is being used in the business of demonstrating or testing. The sharing of expense does not constitute a carriage for hire within the meaning of this section.

Chapter 04 — Airport Zoning

2-04-01. Definitions 🗎 PDF 

As used in this chapter, unless the context otherwise requires:
  1. "Airport" means any area of land or water designed and set aside for the landing and taking off of aircraft and utilized or to be utilized in the interests of the public for such purposes.
  2. "Airport hazard" means any structure or tree or use of land which obstructs the airspace required for the flight of aircraft in landing or taking off at any airport or is otherwise hazardous to such landing or taking off of aircraft.
  3. "Airport hazard area" means any area of land or water upon which an airport hazard might be established if not prevented as provided in this chapter.
  4. "Person" means any individual, firm, copartnership, corporation, limited liability company, company, association, joint-stock association, the state of North Dakota or any political subdivision thereof, and includes any trustee, receiver, assignee, or other similar representative thereof.
  5. "Political subdivision" means any county, city, park district, or township.
  6. "Structure" means any object constructed or installed by man, including, but without limitation, buildings, towers, smokestacks, and overhead transmission lines.
  7. "Tree" means any object of natural growth.

2-04-02. Airport hazards contrary to public interest 🗎 PDF 

It is hereby found that an airport hazard endangers the lives and property of users of the airport and of occupants of land in its vicinity, and also, if of the obstruction type, in effect reduces the size of the area available for the landing, taking off, and maneuvering of aircraft, thus tending to destroy or impair the utility of the airport and the public investment therein. Accordingly, it is hereby declared that:
  1. The creation or establishment of an airport hazard is a public nuisance and an injury to the community served by the airport in question;
  2. It is therefore necessary in the interest of the public health, public safety, and general welfare that the creation or establishment of airport hazards be prevented; and
  3. This should be accomplished, to the extent legally possible, by exercise of the police power, without compensation. It is further declared that both the prevention of the creation or establishment of airport hazards and the elimination, removal, alteration, mitigation, or marking and lighting of existing airport hazards are public purposes for which political subdivisions may raise and expend public funds and acquire land or property interests therein.

2-04-03. Power to adopt airport zoning regulations 🗎 PDF 

  1. In order to prevent the creation or establishment of airport hazards, every political subdivision having an airport hazard area within its territorial limits may adopt, administer, and enforce, under the police power and in the manner and upon the conditions hereinafter prescribed, airport zoning regulations for such airport hazard area, which regulations may divide such area into zones, and, within such zones, specify the land uses permitted and regulate and restrict the height to which structures and trees may be erected or allowed to grow.
  2. Where an airport is owned or controlled by a political subdivision and any airport hazard area appertaining to such airport is located outside the territorial limits of said political subdivision, the political subdivision owning or controlling the airport and the political subdivision within which the airport hazard area is located may, by ordinance or resolution duly adopted, create a joint airport zoning board, which board has the same power to adopt, administer, and enforce airport zoning regulations applicable to the airport hazard area in question as that vested by subsection 1 in the political subdivision within which such area is located. Each such joint board shall have as members two representatives appointed by each political subdivision participating in its creation and in addition a chairman elected by a majority of the members so appointed.
  3. If in the judgment of a political subdivision owning or controlling an airport, the political subdivision within which is located an airport hazard area appertaining to that airport, has failed to adopt or enforce reasonably adequate airport zoning regulations for such area under subsection 1 and if that political subdivision has refused to join in creating a joint airport zoning board as authorized in subsection 2, the political subdivision owning or controlling the airport may itself adopt, administer, and enforce airport zoning regulations for the airport hazard area in question. In the event of conflict between such regulations and any airport zoning regulations adopted by the political subdivision within which the airport hazard area is located, the regulations of the political subdivision owning or controlling the airport govern and prevail.

2-04-04. Relation to comprehensive zoning regulations 🗎 PDF 

  1. Incorporation. In the event that a political subdivision has adopted, or hereafter adopts, a comprehensive zoning ordinance regulating, among other things, the height of buildings, any airport zoning regulations applicable to the same area or portion thereof, may be incorporated in and made a part of such comprehensive zoning regulations, and be administered and enforced in connection therewith.
  2. Conflict. In the event of conflict between any airport zoning regulations adopted under this chapter and any other regulations applicable to the same area, whether the conflict be with respect to the height of structures or trees, the use of land, or any other matter, and whether such other regulations were adopted by the political subdivision which adopted the airport zoning regulations or by some other political subdivision, the more stringent limitation or requirement governs and prevails.

2-04-05. Procedure for adoption of zoning regulations 🗎 PDF 

  1. No airport zoning regulations shall be adopted, amended, or changed under this chapter except by action of the legislative body of the political subdivision in question, or the joint board provided for in subsection 2 of section 2-04-03 after a public hearing in relation thereto, at which parties in interest and citizens shall have an opportunity to be heard. At least fifteen days' notice of the hearing shall be published in an official newspaper, or a newspaper of general circulation, in the political subdivision or subdivisions in which is located the airport hazard area to be zoned.
  2. Prior to the initial zoning of any airport hazard area under this chapter, the political subdivision or joint airport zoning board which is to adopt the regulations shall appoint a commission, to be known as the airport zoning commission, to recommend the boundaries of the various zones to be established and the regulations to be adopted therefor. The commission shall make a preliminary report and hold public hearings thereon before submitting its final report, and the legislative body of the political subdivision or the joint airport zoning board shall not hold its public hearings or take other action until it has received the final report of such commission. If a city planning commission or zoning commission already exists, it may be appointed as the airport zoning commission.

2-04-06. Airport zoning requirements 🗎 PDF 

  1. Reasonableness. All airport zoning regulations adopted under this chapter must be reasonable and none may impose any requirement or restriction which is not reasonably necessary to effectuate the purposes of this chapter. In determining what regulations it may adopt, each political subdivision and joint airport zoning board shall consider, among other things, the character of the flying operations expected to be conducted at the airport, the nature of the terrain within the airport hazard area, the character of the neighborhood, and the uses to which the property to be zoned is put and adaptable.
  2. Nonconforming uses. No airport zoning regulations adopted under this chapter may require the removal, lowering, or other change or alteration of any structure or tree not conforming to the regulations when adopted or amended, or otherwise interfere with the continuance of any nonconforming use, except as provided in subsection 3 of section 2-04-07.

2-04-07. Permits and variances 🗎 PDF 

  1. Permits. Any airport zoning regulations adopted under this chapter may require that a permit be obtained before any new structure or use may be constructed or established and before any existing use or structure may be substantially changed or substantially altered or repaired. In any event, however, all such regulations must provide that before any nonconforming structure or tree may be replaced, substantially altered or repaired, rebuilt, allowed to grow higher, or replanted, a permit must be secured from the administrative agency authorized to administer and enforce the regulations, authorizing such replacement, change, or repair. No permit may be granted that would allow the establishment or creation of an airport hazard or permit a nonconforming structure or tree or nonconforming use to be made or become higher or become a greater hazard to air navigation than it was when applicable regulation was adopted or than it is when the application for a permit is made. Except as provided herein, all applications for permits must be granted.
  2. Variances. Any person desiring to erect any structure, or increase the height of any structure, or permit the growth of any tree, or otherwise use that person's property in violation of airport zoning regulations adopted under this chapter may apply to the board of adjustment for a variance from the zoning regulations in question. Such variances must be allowed where a literal application or enforcement of the regulations would result in practical difficulty or unnecessary hardship and the relief granted would not be contrary to the public interest but do substantial justice and be in accordance with the spirit of the regulations and this chapter; provided, that any variance may be allowed subject to any reasonable conditions that the board of adjustment may deem necessary to effectuate the purposes of this chapter.
  3. Hazard marking and lighting. In granting any permit or variance under this section, the administrative agency or board of adjustment may, if it deems such action advisable to effectuate the purposes of this chapter and reasonable in the circumstances, so condition such permit or variance as to require the owner of the structure or tree in question to permit the political subdivision, at its own expense, to install, operate, and maintain thereon such markers and lights as may be necessary to indicate to flyers the presence of an airport hazard.

2-04-08. Appeals 🗎 PDF 

  1. Any person aggrieved, or taxpayer affected, by any decision of an administrative agency made in its administration of airport zoning regulations adopted under this chapter, or any governing body of a political subdivision, or any joint airport zoning board, which is of the opinion that a decision of such administrative agency is an improper application of airport zoning regulations of concern to such governing body or board, may appeal to the board of adjustment authorized to hear and decide appeals from the decisions of such administrative agency.
  2. All appeals taken under this section must be taken within a reasonable time, as provided by the rules of the board, a notice of appeal specifying the grounds thereof. The agency from which the appeal is taken shall forthwith transmit to the board all the papers constituting the record upon which the action appealed from was taken.
  3. An appeal stays all proceedings in furtherance of the action appealed from, unless the agency from which the appeal is taken certifies to the board, after the notice of appeal has been filed with it, that by reason of the facts stated in the certificate a stay would, in its opinion, cause imminent peril to life or property. In such cases, proceedings may not be stayed otherwise than by order of the board on notice to the agency from which the appeal is taken and on due cause shown.
  4. The board shall fix a reasonable time for the hearing of appeals, give public notice and due notice to the parties in interest, and decide the same within a reasonable time. Upon the hearing, any party may appear in person or by attorney.
  5. The board may, in conformity with the provisions of this chapter, reverse or affirm wholly or partly, or modify, the order, requirement, decision, or determination appealed from and may make such order, requirement, decision, or determination as ought to be made, and to that end has all the powers of the administrative agency from which the appeal is taken.

2-04-09. Administration of airport zoning regulations 🗎 PDF 

All airport zoning regulations adopted under this chapter must provide for the administration and enforcement of such regulations by an administrative agency which may be an agency created by such regulations or any official, board, or other existing agency of the political subdivision adopting the regulations or of one of the political subdivisions which participated in the creation of the joint airport zoning board adopting the regulations, if satisfactory to that political subdivision, but in no case may such administrative agency be or include any member of the board of adjustment. The duties of any administrative agency designated pursuant to this chapter include that of hearing and deciding all permits under subsection 1 of section 2-04-07, but such agency shall not have or exercise any of the powers herein delegated to the board of adjustment.

2-04-10. Board of adjustment 🗎 PDF 

  1. All airport zoning regulations adopted under this chapter must provide for a board of adjustment to have and exercise the following powers:
    1. To hear and decide appeals from any order, requirement, decision, or determination made by the administrative agency in the enforcement of the airport zoning regulations, as provided in section 2-04-08.
    2. To hear and decide any special exceptions to the terms of the airport zoning regulations upon which such board may be required to pass under such regulations.
    3. To hear and decide specific variances under subsection 2 of section 2-04-07.
  2. If a zoning board of appeals or adjustment already exists, it may be appointed as the board of adjustment. Otherwise, the board of adjustment shall consist of five members, each to be appointed for a term of three years by the authority adopting the regulations and to be removable by the appointing authority for cause, upon written charges and after public hearing.
  3. The concurring vote of a majority of the members of the board of adjustment is sufficient to reverse any order, requirement, decision, or determination of the administrative agency, or to decide in favor of the applicant on any matter upon which it is required to pass under the airport zoning regulations, or to effect any variation in such regulations.
  4. The board shall adopt rules in accordance with the provisions of the ordinance or resolution by which it was created. Meetings of the board shall be held at the call of the chairman and at such other times as the board may determine. The chairman, or in the chairman's absence the acting chairman, may administer oaths and compel the attendance of witnesses. All hearings of the board must be public. The board shall keep minutes of its proceedings, showing the vote of each member upon each question, or, if absent, or failing to vote, indicating such fact, and shall keep records of its examinations and other official actions, all of which must immediately be filed in the office of the board and shall be a public record.

2-04-11. Judicial review 🗎 PDF 

  1. Any person aggrieved, or taxpayer affected, by any decision of a board of adjustment, or any governing body of a political subdivision or any joint airport zoning board which is of the opinion that a decision of a board of adjustment is illegal, may present to the district court a verified petition setting forth that the decision is illegal, in whole or in part, and specifying the grounds of the illegality. Such petition must be presented to the court within fifteen days after the decision is filed in the office of the board.
  2. Upon presentation of such petition the court may allow a writ of certiorari directed to the board of adjustment to review such a decision of the board. The allowance of the writ does not stay proceedings upon the decision appealed from, but the court may, on application, on notice to the board and on due cause shown, grant a restraining order.
  3. The board of adjustment is not required to return the original papers acted upon by it, but it is sufficient to return certified or sworn copies thereof or of such portions thereof as may be called for by the writ. The return must concisely set forth such other facts as may be pertinent and material to show the grounds of the decision appealed from and must be verified.
  4. The court has exclusive jurisdiction to affirm, modify, or set aside the decision brought up for review, in whole or in part, and if need be, to order further proceedings by the board of adjustment. The findings of fact of the board, if supported by substantial evidence, must be accepted by the court as conclusive, and no objection to a decision of the board may be considered by the court unless such objection has been urged before the board, or, if it was not so urged, unless there were reasonable grounds for failure to do so.
  5. Costs may not be allowed against the board of adjustment unless it appears to the court that it acted with gross negligence, in bad faith, or with malice, in making the decision appealed from.
  6. In any case in which airport zoning regulations adopted under this chapter, although generally reasonable, are held by a court to interfere with the use or enjoyment of a particular structure or parcel of land to such an extent, or to be so onerous in their application to such a structure or parcel of land, as to constitute a taking or deprivation of that property in violation of the Constitution of North Dakota or the Constitution of the United States, such holding does not affect the application of such regulations to other structures and parcels of land.

2-04-12. Enforcement and remedies 🗎 PDF 

Each violation of this chapter or of any regulations, orders, or rulings promulgated or made pursuant to this chapter, constitutes a class B misdemeanor. In addition, the political subdivision or agency adopting zoning regulations under this chapter may institute in any court of competent jurisdiction, an action to prevent, restrain, correct, or abate any violation of this chapter, or of airport zoning regulations adopted under this chapter, or of any order or ruling made in connection with their administration or enforcement, and the court shall adjudge to the plaintiff such relief, by way of injunction (which may be mandatory) or otherwise, as may be proper under all the facts and circumstances of the case, in order fully to effectuate the purposes of this chapter and of the regulations adopted and orders and rulings made pursuant thereto.

2-04-13. Acquisition of air rights 🗎 PDF 

In any case in which:
  1. It is desired to remove, lower, or otherwise terminate a nonconforming structure or use;
  2. The approach protection necessary cannot, because of constitutional limitations, be provided by airport zoning regulations under this chapter; or
  3. It appears advisable that the necessary approach protection be provided by acquisition of property rights rather than by airport zoning regulations, the political subdivision within which the property or nonconforming use is located or the political subdivision owning the airport or served by it may acquire, by purchase, grant, or condemnation in the manner provided by the law under which political subdivisions are authorized to acquire real property for public purposes, such air right, navigation easement, or other estate or interest in the property or nonconforming structure or use in question as may be necessary to effectuate the purposes of this chapter.

2-04-14. Short title 🗎 PDF 

This chapter must be known and may be cited as the "Airport Zoning Act".

Chapter 05 — Aeronautics Commission

2-05-01. Aeronautics commission - Creation - Membership 🗎 PDF 

The North Dakota aeronautics commission consists of five members. The governor shall appoint each member for a term of five years, except that a member appointed to fill a vacancy before the expiration of the term for which the member's predecessor was appointed must be appointed only for the remainder of the term. Each member shall serve until the appointment and qualification of the member's successor. Each member of the commission must be a qualified elector of this state. Any member of the commission may be removed by the governor for inefficiency, neglect of duty, or malfeasance in office. Each member of the commission shall receive compensation of seventy-five dollars for each day or portion of a day the member is actually engaged in the performance of the duties of the member's office and payment for mileage and travel expenses as provided in sections 44-08-04 and 54-06-09.

2-05-02. Director of aeronautics - Appointment - Qualifications - Compensation 🗎 PDF 

A director of aeronautics must be appointed by the commission to serve at the pleasure of the commission. The director of aeronautics shall devote full time to the duties of the office, and shall have no pecuniary interest in or any stock or bonds of any civil aeronautical enterprises. The director of aeronautics shall receive such compensation as the commission may determine and must be reimbursed for all traveling and other expenses incurred by the director in the discharge of official duties, at the same rates and under the same conditions for the payment of traveling expenses and board and lodging as is provided in section 2-05-01.

2-05-03. Powers and duties of director 🗎 PDF 

The director shall be the executive officer of the commission. The director shall attend all meetings of the commission, but has no voting power. At the direction of the commission, the director shall, together with the chairman of the commission, execute all contracts entered into by the commission which are legally authorized. The director shall appoint, subject to the approval of the commission, such employees as may be necessary for the proper discharge of the functions of the commission. The director shall act as the agent of the tax commissioner for purposes of enforcement of chapter 57-40.5.

2-05-04. Commission reports - Offices 🗎 PDF 

The commission may submit a biennial report to the governor and the secretary of state in accordance with section 54-06-04. The commission shall maintain its office in the state capitol or as authorized under section 54-21-24.

2-05-05. Duty of commission in development of aeronautics 🗎 PDF 

The commission shall have general supervision over aeronautics within this state and shall:
  1. Encourage the establishment of airports and air navigation facilities;
  2. Cooperate with and assist the federal government, the municipalities of this state, and other persons in the development and coordination of all aeronautical activities;
  3. Represent the state in aeronautical matters before state and federal agencies;
  4. Participate as party plaintiff or defendant or as intervenor on behalf of the state or any municipality in any controversy which involves the interest of the state in aeronautics;
  5. Establish or promote with the public sector or private sector, or both, and provide financing, in whole or in part, of aeronautical educational programs and support of the educational programs of aeronautical museums in the state; and
  6. Establish or promote with the public sector or private sector, or both, and provide financing, in whole or in part, of programs informing the public of commercial and general aviation services available in the state.

2-05-06. Federal aid 🗎 PDF 

The commission may act as agent of all municipalities in accepting, receiving, receipting for, and disbursing federal moneys, made available to finance, in whole or in part, the planning, acquisition, construction, improvement, maintenance, or operation of municipal airports or air navigation facilities. The commission, as principal on behalf of the state, and for any municipality, may enter into any contracts, with the United States, with any municipality, or with any person, which may be required in connection with a grant or loan of federal moneys for municipal airport or air navigation facility purposes, provided that no contract may be entered into on behalf of any municipality except pursuant to written request of such municipality. All federal moneys accepted under this section must be accepted and transferred or expended by the commission upon such terms and conditions as are prescribed by the United States. All moneys received by the commission pursuant to this section must be deposited in the state treasury, and, unless otherwise prescribed by the authority from which such moneys were received, shall be kept in separate funds designated according to the purpose for which the moneys were made available, and held by the state for such purposes. All such moneys are hereby appropriated for the purposes, for which the same were made available, to be disbursed or expended in accordance with the terms and conditions upon which they were made available.

2-05-06.1. Authorization to accept federal or other moneys 🗎 PDF 

The North Dakota aeronautics commission, or any county, city, park district, or township is authorized to accept, receive, and receipt for federal moneys, and other moneys, either public or private, for the acquisition, construction, enlargement, improvement, maintenance, equipment, or operation of airports and other air navigation facilities, and sites therefor, and to comply with the provisions of the laws of the United States and any rules and regulations made thereunder for the expenditure of federal moneys upon such airports and other air navigation facilities.

2-05-06.2. Designation of aeronautics commission as agent 🗎 PDF 

The governing body of any political subdivision referred to in section 2-05-06.1 is authorized to designate the state aeronautics commission of the state as its agent to accept, receive, and receipt for federal moneys in its behalf for airport purposes and to contract for the acquisition, construction, enlargement, improvement, maintenance, equipment, or operation of such airports, or other air navigation facilities, and may enter into an agreement with such aeronautics commission prescribing the terms and conditions of such agency in accordance with federal laws, rules and regulations, and applicable laws of this state. Such moneys as are paid over by the United States government must be paid over to said municipality under such terms and conditions as may be imposed by the United States government in making such grant.

2-05-06.3. Contracts 🗎 PDF 

All contracts for the acquisition, construction, enlargement, improvement, maintenance, equipment, or operation of airports or other air navigation facilities, made by any of the political subdivisions referred to in sections 2-05-06.1 and 2-05-06.2, by itself or through the agency of the aeronautics commission of the state, must be made pursuant to the laws of this state governing the making of like contracts; provided, however, that if such acquisition, construction, improvement, enlargement, maintenance, equipment, or operation is financed wholly or partly with federal moneys the municipality, or the aeronautics commission as its agent, may let contracts in the manner prescribed by the federal authorities, acting under the laws of the United States, and any rules or regulations made thereunder, notwithstanding any other state law to the contrary.

2-05-06.4. Declaration of purpose - Financial assistance to airports 🗎 PDF 

Repealed by S.L. 2011, ch. 57, § 8.

2-05-06.5. State assistance for airports 🗎 PDF 

Each public airport in this state may be provided assistance according to guidelines established by the commission by rule, within the limits of legislative appropriations from the state general fund. The governing body or airport authority which operates an airport that receives assistance under this section shall deposit the moneys received in the same account or accounts as other airport funds are deposited and may expend the moneys as provided by law for other airport funds, including matching any funds made available by the United States.

2-05-07. State airways system 🗎 PDF 

The state airways system shall consist of all air navigation facilities available for public use now existing or hereafter established, whether publicly or privately owned or except those under the jurisdiction of the federal government. Jurisdiction over the state airways system in matters of safety is vested in the aeronautics commission. The commission may expend state funds duly appropriated for such purpose in the interest of safety on any or all facilities of the system which serve a useful public purpose and satisfy a public need. The commission may make, promulgate, and amend reasonable safety rules, safety regulations, and safety procedures, and establish minimum safety standards covering the activities for each such facility.

2-05-08. Rules, regulations, standards 🗎 PDF 

Repealed by S.L. 2011, ch. 57, § 8.

2-05-09. Reckless operation of aircraft 🗎 PDF 

Repealed by S.L. 1975, ch. 106, § 673.

2-05-10. Registration of airmen 🗎 PDF 

Repealed by S.L. 1999, ch. 52, § 1.

2-05-11. Aircraft registration - Fees 🗎 PDF 

  1. Except as provided in section 2-05-11.3, every aircraft or ultralight vehicle operating within this state for more than thirty days must be registered with the aeronautics commission for each calendar year in which the aircraft or ultralight vehicle is operated within this state, subject to rules adopted by the commission. The commission shall charge a fee for each annual registration. The following fees apply: Gross Weight in PoundsRegistration Fees 0 to 500$ 15.00 501 to 1,00030.00 1,001 to 1,50038.00 1,501 to 2,00045.00 2,001 to 2,50060.00 2,501 to 3,00075.00 3,001 to 3,50090.00 3,501 to 4,000105.00 4,001 to 5,000120.00 5,001 to 6,000150.00 6,001 to 7,000180.00 7,001 to 8,000210.00 8,001 to 9,000240.00 9,001 to 10,000270.00 10,001 to 15,000300.00 15,001 to 20,000450.00 20,001 to 30,000600.00 30,001 to 40,000900.00 40,001 to 50,0001,200.00 50,001 to 75,0001,500.00 75,001 to 100,0002,250.00 100,001 and over3,000.00 For aircraft that become based in the state after June thirtieth of a calendar year, the registration fee is one-half the annual fee.
  2. All weights must be based upon the maximum permissible take-off weight, except that the weights must be empty weights for all ultralight vehicles which are not certificated for maximum permissible take-off weight.
  3. The aeronautics commission may charge a reasonable cost of service fee for registration of aircraft operated by state agencies, political subdivisions, aviation schools operated by state institutions of higher education, or the civil air patrol in lieu of the regular registration fee.
  4. All fees received under this section must be deposited in the aeronautics commission special fund.

2-05-11.1. Definitions 🗎 PDF 

As used in sections 2-05-11.1 through 2-05-11.3, unless the context otherwise requires:
  1. "Antique aircraft" means an aircraft built and originally federally certified by its manufacturer before January 1, 1941.
  2. "Classic aircraft" means an aircraft built and originally federally certified by its manufacturer after January 2, 1941, and before January 1, 1948.
  3. "Warbird aircraft" means military aircraft no longer in military service.

2-05-11.2. Permanent registration of certain older aircraft 🗎 PDF 

On making proper application to the commission and paying the fee required under section 2-05-11.3, the owner of an antique, classic, or warbird aircraft may permanently register that aircraft in accordance with this section. An aircraft so registered may be used only for display, airshow demonstration, testing, and maintenance, and preparation flights necessary to maintain flight safety of operations otherwise permitted under this section. An aircraft so registered cannot be used for conducting commercial or private aviation business. An aircraft entitled to a permanent registration may be transferred to a new owner under that permanent registration. The new owner is entitled to permanent registration as long as the owner qualifies in accordance with this section.

2-05-11.3. Fee for a permanent registration - Issuance of registration decal - Disposition of fee 🗎 PDF 

The fee for a permanent registration under section 2-05-11.2 is one hundred twenty-five dollars. The commission shall prepare a distinctive decal denoting permanent registration under section 2-05-11.2. The fee must be deposited in the aeronautics commission special fund.

2-05-12. Licensing of air schools and aeronautics instructors 🗎 PDF 

Repealed by S.L. 2011, ch. 57, § 8.

2-05-13. Investigations, hearings 🗎 PDF 

The commission may hold investigations and hearings concerning matters covered by the provisions of this chapter which must be open to the public and must be held upon such call or notice as the commission deems advisable. Each member of the commission may administer oaths and issue subpoenas.

2-05-14. Enforcement of aeronautics laws 🗎 PDF 

The commission, its members, the director, officers, and the employees of the commission, and every highway patrol trooper and all peace officers shall enforce and assist in the enforcement of this chapter.

2-05-15. Common carrier certificate required 🗎 PDF 

Repealed by S.L. 2011, ch. 57, § 8.

2-05-15.1. Bond required 🗎 PDF 

Repealed by S.L. 2011, ch. 57, § 8.

2-05-16. Filing of tariffs required 🗎 PDF 

Repealed by S.L. 2011, ch. 57, § 8.

2-05-17. Penalty 🗎 PDF 

Repealed by S.L. 2011, ch. 57, § 8.

2-05-18. License for aerial spraying - Fees - Rules - Penalty 🗎 PDF 

A person may not engage in aerial spraying without a license from the North Dakota aeronautics commission. Application must be made by a commercial aerial sprayer in the name of the business and each application must be made upon forms provided by the commission. Upon the payment of a license fee, not to exceed two hundred dollars, and upon compliance with reasonable rules adopted by the commission for the safety and protection of persons and property, the commission shall issue a license to an applicant for an aerial spraying license. The license and fees provided in this section are in addition to any other license or registration required by law, and the proceeds must be deposited in the aeronautics commission special fund. A person violating this section or rules adopted under this section is guilty of a class B misdemeanor.

2-05-19. Cease and desist orders 🗎 PDF 

The aeronautics commission may issue and serve upon any person, engaged in aerial spraying, an order to cease and desist when the commission has reason to believe the person is violating, has violated, or is attempting to violate this chapter or any rule adopted by the commission. An interested party may appeal the issuance of a cease and desist order under chapter 28-32 by filing written notice of appeal within seven days after service of the order. A hearing must be held within ten days after a notice of appeal has been timely filed. A person who has been issued an order to cease and desist that has been determined to be final either through default or an adjudicative proceeding may not engage in aerial spraying for any other commercial applicator in this state.

2-05-20. Assessment of civil money penalties 🗎 PDF 

The aeronautics commission may impose civil money penalties against any person willfully violating an order to cease and desist or any provision of this chapter or any of the rules adopted by the commission in an amount not to exceed five hundred dollars for each violation. As used in this section, the term "willfully" means that the person engaged in the conduct intentionally, knowingly, or recklessly. An interested party may appeal the assessment of civil money penalties under chapter 28-32 by filing written notice of appeal within twenty days after service of the assessment of civil money penalties. A civil money penalty collected under this section must be paid to the state treasurer and deposited in the aeronautics commission's special fund.

2-05-21. Anemometer towers - Definitions - Penalty 🗎 PDF 

  1. As used in this section, unless the context otherwise requires:
    1. "Anemometer" means an instrument for measuring and recording the speed of wind.
    2. "Anemometer tower" means a structure, including all guy wires and accessory facilities, on which an anemometer is mounted for the purposes of documenting wind resources for the operation of a wind turbine generator.
    3. "Commission" means the North Dakota aeronautics commission.
  2. An anemometer tower that is fifty feet [15.24 meters] in height above the ground or higher, is located outside the zoning jurisdiction of a city, and the appearance of which is not otherwise regulated by state or federal law must be marked, painted, flagged, or otherwise constructed to be recognizable in clear air during daylight hours and:
    1. Must be painted in equal, alternating bands of orange and white, beginning with orange at the top of the tower and ending with orange at the bottom of the tower;
    2. One or more seven-foot [2.13-meter] safety sleeves must be placed at each anchor point and must extend from the anchor point along each guy wire attached to the anchor point; and
    3. At least one marker ball must be attached to each guy wire in the highest set of guy wires which does not affect the stability of the tower and the measurement of wind speed.
  3. The commission may establish and maintain a database that contains locations of all existing anemometer towers by January 1, 2012. The commission may contract with a governmental entity or a private entity to create and maintain the database.
    1. Within sixty days after April 26, 2011, an owner of any anemometer tower erected in the state shall provide the commission with global positioning system coordinates of the center of the anemometer tower.
    2. At least ten days before the erection of an anemometer tower, an owner of the tower shall provide coordinates to the commission.
    3. Within ten days after the removal of an anemometer tower, an owner of the tower shall notify the commission.
  4. The commission may enforce this section. A violation of this section is an infraction.

2-05-22. Aeronautics commission special fund 🗎 PDF 

  1. A special fund known as the aeronautics commission special fund is established.
  2. The aeronautics commission special fund must be administered and expended by the commission for the following:
    1. Administration of the commission.
    2. Airport construction and improvement projects, including:
      1. Airport administration and terminal buildings, hangers, and landing strips for aircraft;
      2. Purchase of land for airports or landing fields and easements for such facilities;
      3. Maintenance and maintenance equipment; and
      4. Clearing of sites, marking, lighting and engineering, and navigational aids.
    3. Administration, construction, reconstruction, repair, maintenance, and operation of airports near communities, recreational areas, or parks, including the International Peace Garden airport, and for necessary expenses and purchases of land and easements for such facilities.
    4. Expenses related to the duties of the commission as set out in section 2-05-05, including the creation and distribution of education grants.
  3. All money derived from the investment of the aeronautics commission special fund or any portion of the fund, including aircraft excise tax funds collected and received under chapter 57-40.5, must be credited to the aeronautics commission special fund.

2-05-23. Airport infrastructure fund 🗎 PDF 

There is created in the state treasury the airport infrastructure fund. The fund consists of all moneys deposited in the fund pursuant to chapter 57-51.1. Moneys in the fund may be spent by the aeronautics commission pursuant to legislative appropriations to provide grants to airports for infrastructure projects. Grant funds must be distributed giving priority to projects that have been awarded or are eligible to receive federal funding.

Chapter 06 — Airport Authorities Act

2-06-01. Definitions 🗎 PDF 

In this chapter:
  1. "Airport" means any real or personal property used or intended to be used for the navigation, landing, and taking off of aircraft, and any real or personal property used or intended to be used for airport operations or maintenance, buildings, facilities, rights of way, or approaches and clear zones.
  2. "Airport authority" or "authority" means any regional airport authority or municipal airport authority created under this chapter, and the governing body of a municipality exercising the powers of a municipal airport authority.
  3. "Airport hazard" means any structure, object, or use of property which obstructs the airspace required for, or is otherwise hazardous to, the flight of aircraft in landing or taking off at an airport.
  4. "Bonds" means any bonds, notes, interim certificates, debentures, or similar obligations issued by an authority under this chapter.
  5. "Clerk" means the custodian of the official records of a municipality.
  6. "Governing body" means the official or officials authorized by law to exercise ordinance or other lawmaking powers of a municipality.
  7. "Municipal airport authority" or "municipal authority" means a municipal airport authority created under section 2-06-02.
  8. "Municipality" means any county, city, or township of this state.
  9. "Real property" means lands, structures, and interests in land, including lands under water and riparian rights, and all things and rights usually included within the term real property, including fee simple absolute and all lesser interests, such as easements, rights of way, uses, leases, licenses, and all other incorporeal hereditaments and every estate, interest, or right, legal or equitable, pertaining to real property.
  10. "Regional airport authority" or "regional authority" means a regional airport authority created under section 2-06-03.

2-06-01.1. Aeronautics commission may exercise powers of airport authority - Exceptions 🗎 PDF 

The North Dakota aeronautics commission has the powers of an airport authority provided in this chapter, except powers to certify or levy taxes or issue bonds, for the purpose of constructing and operating a public airport near the International Peace Garden and other public airports near international border ports of entry, state or national parks, or recreational areas.

2-06-01.2. Airport operation and income 🗎 PDF 

The aeronautics commission has operational control of airports constructed under section 2-06-01.1 and may provide for the imposition of landing fees, granting of fuel and service concessions, or the lease of portions of the premises for other related airport services or for purposes consistent with the use of the premises for airport purposes. All income from the operation of such airports must be deposited in the state treasury in a special operating fund to be known as the airport operating fund. All expenditures from such fund must be within the limits of legislative appropriations and must be made upon vouchers, signed and approved by the director of the aeronautics commission.

2-06-02. Creation of municipal airport authority - Dissolution 🗎 PDF 

  1. A governing body of a municipality, by resolution, may create a municipal airport authority or choose to exercise the powers provided to a municipal airport authority under this chapter.
  2. Upon the adoption of a resolution creating a municipal airport authority, the governing body of the municipality shall appoint five commissioners of the authority. The commissioners who are first appointed must be designated to serve for terms of one, two, three, four, and five years, respectively, but thereafter, each commissioner must be appointed for a term of five years, except that vacancies occurring other than by expiration of term must be filled for the unexpired term by the governing body.
  3. Upon the adoption of a resolution to exercise the powers provided to a municipal airport authority under this chapter, the members of the governing body of the municipality constitute the commissioners of the authority.
  4. After payment of all debts, a municipal airport authority may be dissolved by resolution of the governing body of the municipality. Before dissolution, the property of the airport authority must be transferred to the municipality or sold, and the net proceeds of sale deposited in the general fund of the municipality.

2-06-03. Regional airport authority creation or expansion - Dissolution 🗎 PDF 

  1. A municipality in North Dakota, by joint resolution with one or more municipalities in North Dakota or an adjoining state, may create a regional airport authority which may exercise its functions upon the issuance by the secretary of state of a certificate of incorporation. Under the joint resolution, the governing bodies of the municipalities participating in the creation of a regional airport authority shall appoint at least five commissioners of the regional airport authority. The number to be appointed and their representation must be provided for in the joint resolution. The commissioners who are first appointed must be designated to serve terms of one, two, three, four, or five years with at least one commissioner's term expiring each year. Each regional airport authority shall organize, elect officers, and adopt procedural rules consistent with section 2-06-06.
  2. A regional airport authority may be expanded to serve one or more additional municipalities if the governing body of each additional municipality, the governing body of each of the municipalities included in the regional authority, and the commissioners of the regional authority each adopt a resolution consenting to the expansion. If a municipal airport authority exists for any municipality seeking to be included in a regional authority, the commissioners of that municipal authority must consent to the inclusion of the municipality in the regional authority. If the municipal authority has any bonds outstanding, one hundred percent of the bondholders must provide written consent to the inclusion of the municipality in the regional authority. Upon the inclusion of any municipality in the regional authority, all rights, contracts, obligations, and property, real and personal, of the municipal authority must be in the name of and vest in the regional authority.
  3. The area encompassed in a regional airport authority may be decreased if each of the municipalities included in the regional authority and the commissioners of the regional authority consent to the decrease and make provisions for the retention or disposition of its assets and liabilities. If the regional authority has any bonds outstanding, no decrease may be effected unless one hundred percent of the bondholders provide written consent to the decrease.
  4. A municipality may not adopt any resolution authorized by this section without a public hearing on the resolution. Ten days prior notice of the hearing must be published in a newspaper published in the municipality or, if there is no newspaper published in the municipality, in a newspaper having general circulation in the municipality.
  5. The term of a commissioner of a regional airport authority is five years, except that a vacancy in an unexpired term must be filled for the remainder of the term.
  6. After payment of all debts, a regional airport authority may be dissolved by a joint resolution of the governing bodies of the participating municipalities. Before dissolution, the property of the regional airport authority must be sold, transferred, or distributed as agreed by the participating municipalities. Any remaining funds of the regional airport authority must be distributed to the general funds of the participating municipalities in proportion to their support of the regional airport authority.

2-06-04. Certificate of incorporation of regional airport authority 🗎 PDF 

  1. Upon the appointment and qualification of the commissioners first appointed to a regional airport authority, the commissioners shall submit to the secretary of state a certified copy of each resolution adopted under section 2-06-03 by the municipalities included in the regional authority, and the secretary of state shall issue a certificate of incorporation to the regional airport authority upon receipt of the resolutions.
  2. When a regional airport authority is increased or decreased under section 2-06-03, it shall forward to the secretary of state a certified copy of each resolution adopted under that section, and the secretary of state shall issue an amended certificate of incorporation upon receipt of the resolutions.

2-06-05. Proof of existence of authority 🗎 PDF 

Repealed by S.L. 2017, ch. 60, § 24.

2-06-06. Commissioners - Compensation - Meetings - Officers 🗎 PDF 

Each commissioner of an airport authority shall hold office until the commissioner's successor has been appointed and has qualified. The certificates of the appointment and reappointment of commissioners must be filed with the authority. The appointing authority shall establish the rate of compensation for commissioners, and actual expenses incurred by commissioners may be reimbursed at the official reimbursement rates of the appointing authority. The powers of each authority are vested in its commissioners. A majority of the commissioners of an authority constitutes a quorum for the purpose of conducting business. Action may be taken by the authority upon a vote of not less than a majority of the commissioners present. Each authority shall elect a chairman and vice chairman from among the commissioners. An authority may employ an executive director, secretary, technical experts, and other officers, agents, and employees, permanent and temporary, as it may require, and shall determine their qualifications, duties, and compensation. An authority may obtain legal services from the chief law officer of the municipality or municipalities included in the authority or may employ its own legal counsel. An authority may delegate powers or duties to its agents or employees as it deems proper.

2-06-07. General powers of an authority 🗎 PDF 

An authority has all the powers necessary or convenient to carry out the purposes of this chapter including the power to certify, annually to the governing bodies creating it, the amount of the proposed tax to be levied by the governing bodies for airport purposes within the limitations in section 2-06-15, and the power:
  1. To sue and be sued, to have a seal, and to have perpetual succession.
  2. To execute contracts and other instruments necessary or convenient to carry out the purposes of this chapter.
  3. To plan, establish, acquire, develop, construct, purchase, enlarge, improve, maintain, equip, operate, regulate, and protect airports, within this state and within any adjoining state, including the acquisition, construction, installation, equipment, maintenance, and operation at such airports or buildings and other facilities for the servicing of aircraft or for comfort and accommodation of air travelers, and the purchase and sale of supplies, goods, and commodities as are incident to the operation of its airport properties. For such purposes, an authority may by purchase, gift, devise, lease, eminent domain proceedings, or otherwise acquire property, real or personal, including easements in airport hazards or land outside the boundaries of an airport or airport site, as necessary to permit the removal, elimination, obstruction-marking or obstruction-lighting of airport hazards, or to prevent the establishment of airport hazards.
  4. To establish comprehensive airport zoning regulations in accordance with the laws of this state. For the purpose of this chapter, a regional airport authority has the same powers as all other political subdivisions to adopt and enforce comprehensive airport zoning regulations under the laws of this state.
  5. To acquire, by purchase, gift, devise, lease, eminent domain proceedings or otherwise, existing airports, provided an authority may not acquire or take over any airport owned or controlled by another authority, a municipality, or public agency of this or any other state without the consent of the authority, municipality, or public agency.
  6. To establish or acquire and maintain airports in, over, and upon any public waters of this state, and any submerged lands under such public waters; and to construct and maintain terminal buildings, landing floats, causeways, roadways, and bridges for approaches to or connecting with any airport, and landing floats and breakwaters for the protection of an airport.
  7. To establish toll access roadways leading to air carrier terminal buildings. The toll access charge may not exceed one dollar per vehicle.

2-06-08. Eminent domain 🗎 PDF 

In the acquisition of property by eminent domain proceedings authorized by this chapter, an airport authority shall proceed in the manner provided by chapter 32-15 and other applicable laws. An airport authority may use eminent domain to acquire property acquired by its current owner by eminent domain proceedings. The authority may enter land to make surveys and examinations related to eminent domain proceedings as long as doing so results in no unnecessary damage. Notwithstanding the provisions of any other statute, an authority may take possession of any property to be acquired by eminent domain proceedings at any time after the commencement of the proceedings. The authority may abandon the proceedings at any time before final order and decree of the court having jurisdiction of the proceedings, provided the authority is liable to the owner of the property for any damage done to the property during possession by the authority.

2-06-09. Disposal of airport property 🗎 PDF 

Except as limited by any grant, loan, or agreement authorized by section 2-06-13, an authority may, by sale, lease, or otherwise, dispose of any airport or other property interest acquired under this chapter. The disposal by sale, lease, or otherwise must be in accordance with the laws of this state governing the disposition of other public property, except that in the case of disposal to another authority, a municipality or an agency of the state or federal government for use and operation as a public airport, the sale, lease, or other disposal may be effected in the manner the commissioners of the authority deem in the best interest of civil aviation.

2-06-10. Bonds and other obligations 🗎 PDF 

  1. An authority may borrow money and issue bonds for any of its corporate purposes, including refunding bonds, in the form and upon the terms as it chooses, payable out of any revenues of the authority, including grants or contributions from the federal government or other sources. The bonds may be sold at not less than ninety-eight percent of par plus the interest accrued on the bonds to the date of the delivery.
  2. Bond issues sold at private sale must bear interest at a rate or rates and be sold at a price resulting in an average net interest cost not exceeding twelve percent per annum. There is no interest rate ceiling on those issues sold at public sale or to the state or any of its agencies or instrumentalities.
  3. Any bonds issued under this chapter by an authority, or by a governing body exercising the powers of an authority, are payable, as to principal and interest, solely from revenues of an airport and must so state on their face, but if any issue of bonds constitutes an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction, each bond of the issue is, subject to the requirements of subsection 9, an equally valid and binding special obligation of the authority or municipality, in accordance with its terms, in an amount proportionate to the total amount of the issue which is within the limitation or restriction. Neither the commissioners of an authority nor the governing body of a municipality nor any person executing the bonds is liable personally by reason of the issuance, except to the extent the bonds, if constituting an indebtedness, exceed any applicable limitation or restriction.
  4. If any commissioners or officers of an authority or municipality whose signatures appear on any bonds or coupons ceases to be a commissioner or officer after authorization but before the delivery of the bonds, the signature of the commissioner or official remains valid and sufficient for all purposes, the same as if the commissioner or officer had remained in office until delivery. Any law to the contrary notwithstanding, any bonds issued under this chapter are fully negotiable.
  5. Any bond reciting in substance that it has been issued by the authority or municipality under this chapter and for a purpose authorized by this chapter must be deemed, in any suit, action, or proceeding involving the validity or enforceability of the bond or the security for the bond, to have been issued under this chapter and for that purpose.
  6. Bonds issued by an authority or municipality under this chapter are declared to be issued for an essential public and governmental purpose and, together with interest on the bonds, and income from the bonds, are exempt from all taxes.
  7. For the security of any such bonds, the authority or municipality may by resolution enter any covenant, agreement, or indenture authorized to be made as security for revenue bonds issued under chapter 40-35. The sums required to pay principal and interest and to create and maintain a reserve for the bonds may be made payable from any revenues referred to in this chapter, before the payment of current costs of operation and maintenance of the facilities.
  8. The governing body of a municipality that issues revenue bonds under this chapter shall levy a general tax upon all taxable property in the municipality for the payment of any deficiency in airport authority funds to pay principal or interest due for the bonds before August 1, 2015, and made payable from revenues of an airport authority. The governing body of the municipality may levy a general tax upon all taxable property in the municipality for the payment of any deficiency that is likely to occur within one year in airport authority funds to pay principal or interest due for revenue bonds issued under this chapter before August 1, 2015, and made payable from revenues of an airport authority. The taxes levied by the municipality under this subsection are not subject to any limitation of rate or amount applicable to other municipal taxes.
  9. Revenue bonds issued by an airport authority after July 31, 2015, must include the commitment of the municipality for the payment of any deficiency in airport authority funds to pay principal or interest due for revenue bonds as provided in this subsection. The governing body of the municipality shall levy a general tax upon all taxable property in the municipality for the payment of any deficiency in airport authority funds to pay principal or interest due for revenue bonds issued under this chapter after July 31, 2015, and made payable from revenues of an airport authority. The governing body of the municipality may levy a general tax upon all taxable property in the municipality for the payment of any deficiency that is likely to occur within one year in airport authority funds to pay principal or interest due for revenue bonds issued under this chapter after July 31, 2015, and made payable from revenues of an airport authority. The taxes levied by the municipality under this subsection are not subject to any limitation of rate or amount applicable to other municipal taxes. The commitment of the municipality and the issuance of the bonds must be approved by a majority vote of the governing body of each municipality involved or, upon placement of the question on the ballot at a primary, general, or special election, by approval of a majority of the qualified electors of the municipalities voting on the question.

2-06-11. Operation and use privileges 🗎 PDF 

    1. In connection with the operation of an airport owned or controlled by an authority, the authority may enter contracts, leases, and other arrangements for terms not to exceed thirty years with any persons:
      1. Granting the privilege of using or improving the airport or any portion or facility of the airport for commercial purposes;
      2. Conferring the privilege of supplying goods, commodities, things, services, or facilities at the airport; and
      3. Making available services to be furnished by the authority or its agents at the airport.
    2. In each case the authority may establish the terms and conditions and fix the charges, rentals, or fees for the privileges or services, which must be reasonable and uniform for the same class or privilege or service and must be established with due regard to the property and improvements used and the expenses of operation to the authority. However, the public may not be deprived of its rightful, equal, and uniform use of the airport or portion of the airport.
  2. Except as may be limited by any grant, loan, or agreement authorized by section 2-06-13, an authority may by contract, lease, or other arrangements, upon a consideration fixed by it, grant to any qualified person for a term not to exceed thirty years the privilege of operating, as agent of the authority or otherwise, any airport owned or controlled by the authority. However, the person may not be granted authority to operate an airport other than as a public airport, and may not enter any contracts, leases, or other arrangements in connection with the operation of the airport which the authority might not have undertaken under subsection 1.

2-06-12. Regulations 🗎 PDF 

An authority may adopt, amend, and repeal any reasonable resolutions, rules, and orders necessary for the management, government, and use of any airport it owns or controls. An airport authority may not issue any rule, order, or standard inconsistent with, or contrary to, any act of the Congress of the United States or any regulation or standard established under federal law. Each airport authority shall keep on file at the principal office of the authority for public inspection a copy of all its rules.

2-06-13. Federal and state aid 🗎 PDF 

  1. An authority may accept, receive, receipt for, disburse, and expend federal and state moneys and other moneys, public or private, made available by grant or loan or both, to accomplish any of the purposes of this chapter. All federal moneys accepted under this section must be accepted and expended by the authority upon the terms and conditions prescribed by the United States and consistent with state law, and all state moneys accepted under this section must be accepted and expended by the authority upon the terms and conditions prescribed by the state.
  2. An authority may designate the state aeronautics commission as its agent to:
    1. Accept, receive, receipt for, and disburse federal and state moneys, and other moneys, public or private, made available by grant or loan or both, to accomplish any of the purposes of this chapter; and
    2. Contract for and supervise the planning, acquisition, development, construction, improvement, maintenance, equipment, or operation of any airport.
  3. An authority may enter an agreement with the aeronautics commission prescribing the terms and conditions of the agency in accordance with the terms and conditions prescribed by the United States, if federal money is involved, and in accordance with applicable laws of this state. All federal moneys accepted under this section by the state aeronautics commission must be accepted and transferred or expended by the commission upon the terms and conditions prescribed by the United States. All moneys received by the state aeronautics commission under subsection 2 must be deposited in the state treasury, and unless otherwise prescribed by the agency from which the moneys were received, must be kept in separate funds designated according to the purposes for which the moneys were made available, and held by the state in trust for those purposes.

2-06-14. Tax levy may be requested by airport authority or municipality - Financial report 🗎 PDF 

An airport authority may request annually from the governing bodies of the municipalities within the authority, an amount of tax to be levied by each municipality, and the municipalities may levy the amount requested, under the law authorizing cities and other political subdivisions of this state to levy taxes for airport purposes. With its levy request under this section, an airport authority may certify its current and anticipated revenues and resources, any anticipated revenue shortfall for bonded debt payment, and the amount necessary from its property tax levy authority for its annual principal and interest payment for bonded debt incurred under this chapter. If the authority finds the certified amount is necessary for the annual bonded debt payment, the municipality shall levy for the airport authority not less than the certified amount. In the year for which the levy is sought, an airport authority that is not a city or county governing body and which is seeking approval of a property tax levy of a city or county governing body under this chapter shall file with the auditor of each participating city or county, at a time and in a format prescribed by the auditors, a financial report for the preceding calendar year showing the ending balances of each fund held by the airport authority during that year. The levy made may not exceed the maximum levy permitted by the laws of this state for airport purposes. The municipality shall collect the taxes levied for an airport authority in the same manner as other taxes are levied and collected. The proceeds of the taxes must be deposited in a special account in which other revenues of the authority are deposited, and may be expended by the authority as allowed under this chapter. Before the issuance of bonds under section 2-06-10, the airport authority or the municipality may by resolution provide its commitment under section 2-06-10 that the total amount of taxes then authorized by law, or such portion as may be specified by the resolution, will be certified, levied, and deposited annually until the bonds and interest are fully paid.

2-06-15. Tax levy by county, city, or township for airport or airport authority purposes 🗎 PDF 

A county, city, or township supporting an airport or airport authority may levy up to four mills for airport or airport authority purposes. If any city or township within the county is levying a tax for support of an airport or airport authority and the total of the county and city or county and township levies exceeds four mills, the county tax levy within the city or township levying under this section must be reduced so the total levy in the city or township does not exceed four mills.

2-06-16. Joint operations 🗎 PDF 

  1. For the purposes of this section, unless otherwise qualified, the term "public agency" includes municipality and authority, any agency of the state government and of the United States, and any municipality, political subdivision, and agency of an adjoining state; and the term "governing body" includes commissioners of an authority, the governing body of a municipality, and the head of an agency of a state or the United States if the public agency is not an authority or municipality. All powers, privileges, and authority granted by this chapter may be exercised by an authority jointly with any public agency of this state, and jointly with any public agency of any adjoining state or of the United States to the extent that the laws of the other state or the United States permit such joint exercise. Any agency of the state government, when acting jointly with any authority, may exercise all the powers, privileges, and authority conferred by this chapter upon an authority.
  2. Any two or more public agencies may enter agreements with each other for joint action under this section. Each agreement must specify its duration, the proportionate interest that each public agency must have in the property, facilities, and privileges involved in the joint undertaking, the proportion of costs to be borne by each public agency, and other terms as necessary or required by law. The agreement may provide for amendments and termination; disposal of the property, facilities, and privileges jointly owned, before, or at such times as the property, facilities, and privileges cease to be used for the purposes provided in this chapter, or upon termination of the agreement; the distribution of the proceeds received upon any disposal, and of any funds or other property jointly owned; the assumption of payment of any indebtedness arising from the joint undertaking which remains unpaid upon the disposal of all assets or upon a termination of the agreement; and other provisions as necessary or convenient.
  3. Public agencies acting jointly under this section shall create a joint board consisting of members appointed by the governing body of each participating public agency. The number to be appointed and the term and compensation of the members must be provided for in the joint agreement. Each joint board shall organize, select officers for terms that are fixed by the agreement, and adopt and amend rules for its own procedure. The joint board, as agent of the participating public agencies, may plan, acquire, establish, develop, construct, enlarge, improve, maintain, equip, operate, regulate, protect, and police any airport or airport hazard to be jointly acquired, controlled, and operated, and the participating public agencies may authorize the joint board to exercise all the powers of the constituent public agencies with respect to the airport or airport hazard, subject to the limitations of subsection 4.
    1. The total expenditures to be made by the joint board for any purpose in any calendar year must be as determined by a budget approved by the constituent public agencies on or before the preceding December first, or as otherwise specifically authorized by the constituent public agencies.
    2. No airport or airport hazard, or real or personal property, the cost of which is in excess of sums fixed by the joint agreement or allotted in the annual budget, may be acquired, established, or developed by the joint board without the approval of the governing bodies of its constituent public agencies.
    3. Subject to chapter 32-15, the joint board may institute eminent domain proceedings under this section only if the governing bodies of the constituent public agencies of the joint board authorize the board to do so. If authorized, the proceedings must be instituted in the names of the constituent public agencies jointly, and the property acquired must be held by the public agencies as tenants in common.
    4. The joint board may not dispose of any airport or real property under its jurisdiction except with the consent of the governing bodies of its constituent public agencies, except the joint board may, without that consent, enter contracts, leases, or other arrangements contemplated by section 2-06-11.
    5. Any resolutions, rules, or orders of the joint board dealing with subjects authorized by section 2-06-11 become effective only upon approval of the governing bodies of the constituent public agencies. Upon the approval, the resolutions, rules, or orders of the joint board have the same effect in the territories or jurisdictions involved as the ordinances, resolutions, rules, or orders of each public agency would have in its territory or jurisdiction.
  5. The joint board shall create a joint fund for the purpose of providing the joint board with moneys for necessary expenditures to carry out this section, and into which must be deposited the share of each of the constituent public agencies as provided by the joint agreement. Any federal, state, or other grants, contributions, or loans, and the revenues obtained from the joint ownership, control, and operation of any airport under the jurisdiction of the joint board must be paid into the joint fund. Disbursements from the fund must be made by order of the board, subject to the limitations prescribed in subsection 4.

2-06-17. Public purpose 🗎 PDF 

The acquisition of any land, or interest therein, pursuant to this chapter, the planning, acquisition, establishment, development, construction, improvement, maintenance, equipment, operation, regulation, and protection of airports, including the acquisition or elimination of airport hazards, and the exercise of any other powers granted to authorities and other public agencies, to be severally or jointly exercised, are public and governmental functions, exercised for a public purpose, and matters of public necessity. All land and other property and privileges acquired and used by or on behalf of any authority or other public agency in the manner and for the purposes in this chapter are acquired and used for public and governmental purposes and as a matter of public necessity.

2-06-18. Airport property and income exempt from taxation 🗎 PDF 

Any property in this state acquired by an authority for airport purposes under this chapter, and any income derived by the authority from the ownership, operation, or control of the property, is exempt from taxation to the same extent as other property used for public purpose.

2-06-19. Municipal cooperation 🗎 PDF 

For the purpose of aiding and cooperating in the planning, undertaking, construction, or operation of airports under this chapter, any municipality for which an authority has been created may, with or without consideration:
  1. Lend or donate money to the authority.
  2. Provide that all revenues received by the municipality for airport purposes, be transferred, paid, or credited to an airport authority fund. The city auditor or county treasurer may establish and maintain the fund to account for airport authority revenues and shall make payments from the fund for invoices submitted and approved by the governing body of the airport authority. On request of the city auditor or county treasurer and during an audit, the governing board of the airport authority shall supply its records on a timely basis. The fund may not revert to the governing body of the municipality at the end of any fiscal year. The fund must be used exclusively for the establishment and maintenance of airport facilities.
  3. Cause water, sewer, or drainage facilities, or any other facilities that it is empowered to provide, to be furnished adjacent to or in connection with airports.
  4. Dedicate, sell, convey, or lease any of its interest in any property, or grant easements, licenses, or any other rights or privileges in the property to the authority.
  5. Furnish, dedicate, close, pave, install, grade, regrade, plan or replan streets, roads, roadways, and walks from established streets or roads to airports.
  6. Do all things not prohibited by law, necessary or convenient to aid and cooperate with the authority in the planning, undertaking, construction, or operation of airports.
  7. Enter agreements with the authority respecting action to be taken by the municipality under this section.

2-06-20. Out-of-state airport jurisdiction authorized - Reciprocity with adjoining states and governmental agencies 🗎 PDF 

  1. For the purpose of this section, "governmental agency" means any municipality, city, county, public corporation, or other public agency.
  2. This state or any governmental agency of this state having powers with respect to planning, establishing, acquiring, developing, constructing, enlarging, improving, maintaining, equipping, operating, regulating, or protecting airports within this state, may exercise those powers within any state or jurisdiction adjoining this state, subject to the laws of that state or jurisdiction.
  3. Any state adjoining this state or any governmental agency thereof may plan, establish, acquire, develop, construct, enlarge, improve, maintain, equip, operate, regulate, and protect airports within this state, subject to the laws of this state applicable to airports. Subject to chapter 32-15, the adjoining state or governmental agency has the power of eminent domain in this state, which must be exercised in the manner provided by the laws of this state governing condemnation proceedings, except the power of eminent domain may not be exercised unless the adjoining state authorizes the exercise of that power in that state by this state or any governmental agency of this state having any of the powers mentioned in this section.
  4. The powers granted in this section may be exercised jointly by two or more states or governmental agencies, including this state and its governmental agencies, in such combination agreed upon by them.

2-06-21. Supplemental authority 🗎 PDF 

In addition to the general and special powers conferred by this chapter, every authority may exercise powers necessary to the exercise of the authority's general and special powers.

2-06-22. Zoning 🗎 PDF 

This chapter does not supersede the authority of a municipality to regulate airport hazards by zoning.

2-06-23. Short title 🗎 PDF 

Repealed by S.L. 2017, ch. 60, § 24.

Chapter 07 — Weather Modification

This chapter has been repealed. 🗎 PDF

Chapter 08 — Aircraft And Ultralight Vehicle Dealers

2-08-01. Definitions 🗎 PDF 

The following words, terms, and phrases, when used in this chapter, have the meaning ascribed to them in this section, except where the context clearly indicates a different meaning:
  1. "Aircraft" includes airplanes and helicopters.
  2. "Aircraft dealer" means every person, partnership, association, corporation, or limited liability company engaged in the business of buying, selling, leasing, or exchanging more than three aircraft in any twelve consecutive months, except for a business liquidation of used aircraft, or who advertises or holds out to the public as being engaged in the business of buying, selling, leasing, or exchanging of aircraft. Any person, partnership, association, corporation, or limited liability company doing business in several locations or airports must be considered a separate dealer in each location.
  3. "Ultralight vehicle dealer" means every person, partnership, association, corporation, or limited liability company engaged in the business of buying, selling, leasing, or exchanging more than two ultralight vehicles in any twelve consecutive months, or who advertises or holds out to the public as being engaged in the business of buying, selling, leasing, or exchanging of ultralight vehicles. Any person, partnership, association, corporation, or limited liability company doing business in several locations must be considered a separate dealer at each location.
  4. "Ultralight vehicles" means piloted vehicles which are flown in airspace and are not required by the federal aviation administration to have a federal certificate of airworthiness. All other piloted ultralight vehicles required to have a federal experimental airworthiness certificate are defined as aircraft.

2-08-02. Exemption 🗎 PDF 

This chapter does not apply to any person who only leases aircraft to state institutions of higher education.

2-08-03. Aircraft dealer's license - Fees - Dealer's place of business 🗎 PDF 

No person, partnership, association, corporation, or limited liability company may engage in the business of buying, selling, leasing, or exchanging aircraft, or advertise or hold out to the public as being in the business of buying, selling, leasing, or exchanging of aircraft without first being licensed as provided in this chapter. The aeronautics commission shall prescribe and furnish license and renewal license application forms. A nonrefundable fee of one hundred fifty dollars must accompany each application for each dealer location. A dealer's license expires on December thirty-first of each year, and application for renewal must be made before the expiration of the current dealer's license. For each annual one hundred fifty dollar license fee or renewal, the dealer must be issued one dealer's registration for one demonstrator aircraft. Additional dealer's demonstrator aircraft registrations must be issued to a licensed dealer upon the payment of ten dollars for each additional demonstrator aircraft, provided such demonstrator aircraft are not used for commercial purposes to produce rental or air taxi revenue, or used for aerial spraying while awaiting sale or trade. All new or used demonstrator aircraft which are for resale but are used by a dealer to produce commercial revenue, or air taxi or rental revenue or for aerial spraying must be registered with the commission and the annual registration fees paid in accordance with the laws of this state. Fees from license applications of aircraft dealers must be deposited with the state treasurer and credited to the aeronautics commission special fund. Fees received for additional aircraft registrations for demonstrator aircraft must be deposited with the state treasurer, who shall deposit such funds in the aeronautics commission special fund. An applicant for a license or renewal of a license shall submit to the aeronautics commission an inventory of aircraft held by the applicant along with a separate demonstration flight log of time accumulated for those demonstration flights and aircraft tachometer readings for each aircraft on the date of initial application and on November thirtieth before the yearly renewal time. Information on inventory must be provided to the commission on an approved report form. If an aircraft is held in inventory for more than twelve months and is flown more than fifty hours of flight time in any given twelve-month period of time, the commission shall determine if the aircraft is a demonstration aircraft. When the hours flown exceed fifty hours in the twelve-month period, the aircraft is presumed not to be a demonstration aircraft and the aircraft excise tax must be remitted to the aeronautics commission under chapter 57-40.5 unless upon satisfactory proof the aeronautics commission determines the aircraft is used exclusively for demonstration purposes. The aeronautics commission shall issue dealer's licenses only to dealers who maintain a permanent place of business on an airport open for public use, whether publicly or privately owned in the state of North Dakota, with runway length, aprons, and safe aircraft approaches adequate for fixed wing aircraft or helicopters of the type sold by such a dealer. An established central place on an airport means that such dealer has an enclosed office, building, or structure owned or leased with adequate facilities and equipment for the maintenance, service, and repair of aircraft. The dealer shall maintain business records in the dealer's place of business. The dealer's place of business must be adequate to conduct an aircraft dealer's business where selling, trading, and bartering of aircraft may be conducted and may not be a residence or temporary quarters or so-called permanent quarters occupied pursuant to temporary arrangements. An applicant for an aircraft dealer's license cannot qualify with only a privately owned aircraft hangar as a place of business, which is usually used for storage of aircraft on an airport open for public use. An aircraft dealer to qualify for a dealer's license must maintain an aircraft or helicopter service and repair shop on an airport open for public use with a minimum of five thousand dollars in tools, equipment, aircraft parts, and supplies, as determined by a representative of the director of the aeronautics commission. The aeronautics commission shall issue a license only after inspection and approval of the aircraft dealer's facilities.

2-08-04. Ultralight vehicle dealer's license - Fees - Dealer's place of business 🗎 PDF 

No person, partnership, association, corporation, or limited liability company may engage in the business of buying, selling, leasing, or exchanging ultralight vehicles, or advertise or hold out to the public as being in the business of buying, selling, leasing, or exchanging of ultralight vehicles without first being licensed as provided in this chapter. The aeronautics commission shall prescribe and furnish license and renewal license application forms. A nonrefundable fee of fifty dollars must accompany each application for each dealer location. A dealer's license expires on December thirty-first of each year, and application for renewal must be made before the expiration of the current dealer's license. For each annual fifty dollar license fee or renewal, the dealer must be issued one dealer's registration for one demonstrator ultralight vehicle. Additional dealer's demonstrator ultralight vehicle registrations must be issued to a licensed dealer upon the payment of ten dollars for each additional demonstrator ultralight vehicle. Fees from license applications of ultralight vehicle dealers and any other fees received for additional demonstrator ultralight vehicle registrations must be deposited in the aeronautics commission special fund. An ultralight vehicle dealer shall maintain a permanent place of business in North Dakota which may be off or on an airport; provided, if the place of the business is off an airport, such dealer shall maintain a cleared area of sufficient size and length to safely demonstrate ultralight vehicles without undue approach hazards or hazards to other persons or property. The dealer shall maintain business records in the dealer's place of business. An ultralight dealer to qualify for a dealer's license shall maintain at least one flyable ultralight vehicle for demonstration purposes and shall maintain a minimum of five hundred dollars in tools, equipment, parts, or supplies to provide service for ultralight vehicles. The aeronautics commission has the option of inspection of each ultralight dealer prior to issuing a dealer's license or a renewal.

2-08-05. Dealers to furnish information to director of aeronautics commission 🗎 PDF 

All dealers engaged in the sale of aircraft or ultralight vehicles in this state shall furnish the director of the aeronautics commission and purchasers with information as to model, specification, selling price, with no trade-in allowances, and names and addresses of purchasers and such other data requested by the director of the aeronautics commission as may be necessary in carrying out the provisions of this chapter. All dealers shall keep records of all aircraft and ultralight vehicle sales for two years.

2-08-06. Examination of books and records 🗎 PDF 

The director of the aeronautics commission or the director's duly authorized representative may inspect the pertinent books, letters, records, and contracts of any licensed aircraft or ultralight vehicle dealer relating to specific complaints made against such dealer and which may be in violation of any provisions of this chapter or title 2 or 57.

2-08-07. Powers of the aeronautics commission 🗎 PDF 

In addition to other powers provided by law, the aeronautics commission has the following powers and duties which must be exercised in conformity with this chapter:
  1. To cancel, revoke, or suspend a dealer's license as provided for in this chapter.
  2. To prescribe rules and regulations not inconsistent with this chapter governing the application for dealer's licenses and the cancellation or suspension or revocation of dealer's licenses.
  3. To employ and pay such persons as may be necessary to inspect dealers in this state, investigate dealers for the information needed by the aeronautics commission, to procure evidence in connection with any prosecution or other action to suspend, revoke, or cancel a dealer's license in relation to any matter in which the aeronautics commission and the director has any duty to perform.

2-08-08. Grounds for denial, suspension, cancellation, or revocation of dealer's license 🗎 PDF 

The director of the aeronautics commission may deny an application for a dealer's license or suspend, revoke, or cancel such a license after it has been granted for the following reasons:
  1. For any material misstatement by an applicant in the application for the license.
  2. For any willful failure to comply with the provisions of this chapter or with any rule or regulation promulgated by the aeronautics commission.
  3. For knowingly permitting any salesperson to sell or exchange, or offer or attempt to sell or exchange, any aircraft or ultralight vehicle except for the licensed dealer by whom the salesperson is employed, or to offer, transfer, or assign any sale or exchange that the salesperson may have negotiated to any other dealer.
  4. For having violated any law relating to the sale, distribution, or financing of aircraft or ultralight vehicles.
  5. For having ceased to have an established place of business as herein defined. Such cancellation and revocation shall be done in the manner and according to the procedure described in chapter 28-32.

2-08-09. Dealer permitting license to be used by another dealer - License revoked 🗎 PDF 

Any dealer who permits the use of that person's dealer's license by any other dealer, or permits the use of such license for the benefit of any other dealer, shall have that person's dealer's license revoked.

2-08-10. Officers to administer chapter 🗎 PDF 

The aeronautics commission, its director and staff, is responsible for the administration of the provisions of this chapter.

2-08-11. Penalty for violation of chapter 🗎 PDF 

Any person violating any of the provisions of this chapter is guilty of an infraction for which a maximum fine of five hundred dollars may be imposed. For a second and subsequent offense, such person shall be guilty of a class B misdemeanor.

Title 3 — Agency

Chapter 01 — Creation And Termination Of Agency

3-01-01. Definition 🗎 PDF 

Agency is the relationship which results when one person, called the principal, authorizes another, called the agent, to act for the principal in dealing with third persons.

3-01-02. General and special agent defined 🗎 PDF 

An agent for a particular act or transaction is called a special agent. All others are general agents.

3-01-03. Actual and ostensible agency defined 🗎 PDF 

An agency is either actual or ostensible. It is actual when the agent really is employed by the principal. It is ostensible when the principal intentionally or by want of ordinary care causes a third person to believe another to be the principal's agent, who really is not employed by the principal.

3-01-04. Who may appoint an agent - Who may be agent 🗎 PDF 

Any person having capacity to contract may appoint an agent and any person may be an agent.

3-01-05. Authorization to agent 🗎 PDF 

An agent may be authorized to do any acts which the agent's principal might do, except those to which the principal is bound to give personal attention.

3-01-06. How agency created 🗎 PDF 

An agency may be created and an authority may be conferred by a prior authorization or a subsequent ratification.

3-01-07. No consideration necessary 🗎 PDF 

The relationship of principal and agent can be created although neither party receives consideration.

3-01-08. Ratification of agency - How made - Extent 🗎 PDF 

A ratification can be made only in the manner that would have been necessary to confer an original authority for the act ratified or, when an oral authorization would suffice, by accepting or retaining the benefit of the act with notice thereof. A ratification is not valid unless at the time of ratifying the act done the principal has power to confer authority for such an act and ratification of part of an indivisible transaction is a ratification of the whole.

3-01-09. Retroactive ratification limited 🗎 PDF 

No unauthorized act can be made valid retroactively to the prejudice of third persons without their consent.

3-01-10. Rescission of ratification 🗎 PDF 

A ratification may be rescinded when made without such consent as is required in a contract or with an imperfect knowledge of the material facts of the transaction ratified, but not otherwise.

3-01-11. Termination of agency 🗎 PDF 

  1. An agency is terminated as to every person having notice thereof by:
    1. Expiration of its term;
    2. Extinction of its subject;
    3. Death of the agent;
    4. Renunciation by the agent; or
    5. Incapacity of the agent to act as such.
  2. Unless the power of an agent is coupled with an interest in the subject of the agency, it is terminated as to every person having notice thereof by:
    1. Its revocation by the principal;
    2. Death of the principal; or
    3. Incapacity of the principal to contract.

Chapter 02 — Principal And Agent Relation

3-02-01. Acts done by or to agent 🗎 PDF 

Every act which legally may be done by or to any person may be done by or to the agent of such person for that purpose, unless a contrary intention clearly appears.

3-02-02. Actual or ostensible authority 🗎 PDF 

An agent has such authority as the principal actually or ostensibly confers upon the agent. Actual authority is such as a principal intentionally confers upon the agent or intentionally or by want of ordinary care allows the agent to believe the agent possesses. Ostensible authority is such as the principal intentionally or by want of ordinary care causes or allows a third person to believe the agent possesses.

3-02-03. Agent authority 🗎 PDF 

Every agent has actually such authority as is defined by this title unless specially deprived thereof by the agent's principal, and has even then such authority ostensibly, except as to persons who have actual or constructive notice of the restriction upon the agent's authority.

3-02-04. Authority limited to specific terms 🗎 PDF 

When an authority is given partly in general and partly in specific terms, the general authority gives no higher powers than those specifically mentioned.

3-02-05. General authority limited 🗎 PDF 

An authority expressed in general terms, however broad, does not authorize an agent to act in the agent's own name unless doing so is the usual course of business, to define the scope of the agent's agency, or to do any act that a trustee is forbidden to do under chapters 59-09, 59-10, 59-11, 59-12, 59-13, 59-14, 59-15, 59-16, 59-17, 59-18, and 59-19.

3-02-06. Form of authorization 🗎 PDF 

An oral authorization is sufficient for any purpose, except that an authority to enter into a contract required by law to be in writing, other than an instrument covered by chapter 41-03 can be given only by an instrument in writing.

3-02-07. Fraud limits authority 🗎 PDF 

An agent never can have authority, either actual or ostensible, to do an act which is, and is known or suspected by the person with whom the agent deals to be, a fraud upon the principal.

3-02-08. Authority to do necessary acts and make representations 🗎 PDF 

An agent has authority:
  1. To do everything necessary or proper and usual in the ordinary course of business to effect the purpose of the agent's agency.
  2. To make a representation respecting any matter of fact, not including the terms of the agent's authority, but upon which the agent's right to use the agent's authority depends and the truth of which cannot be determined by the use of reasonable diligence on the part of the person to whom the representation is made.

3-02-09. When agent may disobey instructions 🗎 PDF 

An agent has power to disobey instructions in dealing with the subject of the agency in cases when it is clearly for the interest of the agent's principal that the agent should do so and there is not time to communicate with the principal.

3-02-10. Authority to warrant property sold 🗎 PDF 

Authority to sell and convey real property includes authority to give the usual covenants of warranty. Authority to sell personal property includes authority to warrant the title of the principal and the quality and quantity of the property.

3-02-11. Authority of general and special agent to receive price 🗎 PDF 

A general agent to sell, who is entrusted by the principal with the possession of the thing sold, has authority to receive the price. A special agent to sell has authority to receive the price on delivery of the thing sold, but not afterwards.

3-02-12. Agent must inform principal - Not exceed authority 🗎 PDF 

An agent must use ordinary diligence to keep the agent's principal informed of the agent's acts in the course of the agency. An agent must not exceed the limits of the agent's actual authority as defined by this title.

3-02-13. When agent can delegate powers 🗎 PDF 

An agent, unless specially forbidden by the agent's principal to do so, can delegate the agent's powers to another person in any of the following cases, and in no others:
  1. When the act to be done is purely mechanical.
  2. When it is such as the agent personally cannot, and the subagent lawfully can, perform.
  3. When it is the usage of the place to delegate such power.
  4. When such delegation is specially authorized by the principal.

3-02-14. Lawful subagent principal's agent 🗎 PDF 

A subagent lawfully appointed represents the principal in like manner with the original agent, and the original agent is not responsible to third persons for the acts of the subagent.

3-02-15. Responsibility of mere agent or unauthorized subagent 🗎 PDF 

A mere agent of an agent is not responsible as such to the principal of the latter. If an agent employs a subagent without authority, the former is a principal and the latter is the former's agent and the principal of the former has no connection with the latter.

3-02-16. Duty of agent as collector of negotiable instrument 🗎 PDF 

An agent employed to collect a negotiable instrument must collect it promptly and take all measures necessary to charge the parties thereto in case of its dishonor, and, if it is a bill of exchange, must present it for acceptance with reasonable diligence.

3-02-17. Limitation of duties of licensed real estate agents 🗎 PDF 

The duties of real estate brokers and real estate salespersons, who are licensed under chapter 43-23, and the civil liabilities arising from the duties, are limited to those duties set forth in chapter 43-23 or under rules adopted under that chapter.

Chapter 03 — Principal And Third Person Relation

3-03-01. Rights and liabilities accruing to principal 🗎 PDF 

An agent represents the agent's principal for all purposes within the scope of the agent's actual or ostensible authority, and all the rights and liabilities which would accrue to the agent from the transactions within such limit, if they had been entered into on the agent's own account, accrue to the principal.

3-03-02. Principal bound when agent exceeds authority 🗎 PDF 

When an agent exceeds the agent's authority, the agent's principal is bound by the agent's authorized acts so far only as they can be plainly separated from those which are unauthorized.

3-03-03. When ostensible authority binding 🗎 PDF 

A principal is bound by acts of the principal's agent under a merely ostensible authority to those persons only who in good faith and without ordinary negligence have incurred a liability or parted with value upon the faith thereof.

3-03-04. Instrument within scope of authority binding 🗎 PDF 

Any instrument within the scope of the agent's authority by which an agent intends to bind the agent's principal does bind the principal if such intent is plainly inferable from the instrument itself.

3-03-05. Notice to principal or agent 🗎 PDF 

As against a principal, both principal and agent are deemed to have notice of whatever either has notice and ought, in good faith and the exercise of ordinary care and diligence, to communicate to the other.

3-03-06. Incomplete execution of authority 🗎 PDF 

A principal is bound by an incomplete execution of an authority when it is consistent with the whole purpose and scope thereof, but not otherwise.

3-03-07. Credit to agent - Principal exonerated 🗎 PDF 

If exclusive credit is given to an agent by the person dealing with the agent, the agent's principal is exonerated by payment or other satisfaction made by the principal to the agent in good faith before receiving notice of the creditor's election to hold the principal responsible.

3-03-08. Setoff against agent 🗎 PDF 

One who deals with an agent without knowing or having reason to believe that the agent acts as such in the transaction may set off against any claim of the principal arising out of the same all claims which the person dealing with the agent might have set off against the agent before notice of the agency.

3-03-09. Negligence of agent 🗎 PDF 

Unless required by or under the authority of law to employ that particular agent, a principal is responsible to third persons for the negligence of the principal's agent in the transaction of the business of the agency, including wrongful acts committed by the agent in and as a part of the transaction of the business, and for the agent's willful omission to fulfill the obligations of the principal. The principal is not responsible for:
  1. Other wrongs committed by the principal's agent unless the principal has authorized or ratified them, even though they are committed while the agent is engaged in the principal's service.
  2. Injuries or death to passengers and other persons or damage to properties resulting from:
    1. Operation or use of a motor vehicle, not owned, leased, or contracted for by the principal in a ridesharing arrangement, as defined in section 8-02-07.
    2. Information, incentives, or other encouragement to agents to participate in a ridesharing arrangement, as defined in section 8-02-07.

Chapter 04 — Agent And Third Person Relation

3-04-01. Agent warrants authority 🗎 PDF 

One who assumes to act as an agent thereby warrants to all who deal with that person in that capacity that the person has the authority which the person assumes.

3-04-02. When agent liable as principal 🗎 PDF 

One who assumes to act as an agent is responsible to third persons as a principal for that person's acts in the course of that person's agency in any of the following cases, and in no others:
  1. When, with that person's consent, credit is given to that person personally in a transaction.
  2. When that person enters into a written contract in the name of that person's principal without a good-faith belief in having the authority to do so.
  3. When that person's acts are wrongful in their nature.

3-04-03. Surrender of property adversely claimed 🗎 PDF 

If an agent receives anything for the benefit of the agent's principal, to the possession of which another person is entitled, the agent on demand must surrender it, or so much of it as the agent has under the agent's control at the time of the demand, to such other person, on being indemnified for any advance which the agent has made to the agent's principal in good faith on account of the same. The agent is responsible therefor, if the agent delivers it to the agent's principal after notice from the owner.

Chapter 05 — Auctioneers

3-05-01. Authority from seller 🗎 PDF 

An auctioneer, in the absence of special authorization or usage to the contrary, has authority from the seller only as follows:
  1. To sell by public auction to the highest bidder.
  2. To sell for cash only, except such articles as usually are sold on credit at auction.
  3. To warrant the title, quality, and quantity of personal property sold by the auctioneer.
  4. To prescribe reasonable rules and terms of sale.
  5. To deliver the thing sold upon payment of the price to the clerk of the auction.
  6. To do whatever else is necessary or proper and usual in the ordinary course of business for effecting these purposes.

3-05-02. Authority to bind both parties 🗎 PDF 

An auctioneer has authority from a bidder at the auction as well as from the seller to bind both by a memorandum of the contract whenever a written memorandum is required by any statute or by usage to make a valid contract of sale, and such memorandum must be in the form and content prescribed.

Chapter 06 — Factors

3-06-01. Definition 🗎 PDF 

A factor is an agent who, in the pursuit of an independent calling, is employed by another to buy or sell property in the factor's own name and is entrusted by the principal with the possession or control of the property or authorized to receive payment therefor from the purchaser.

3-06-02. Authority of factors 🗎 PDF 

In addition to the authority of agents in general, a factor has actual authority from the factor's principal unless specially restricted:
  1. To insure property consigned to the factor uninsured.
  2. To sell property consigned to the factor on such credit as is usual, except such things as it is contrary to usage to sell on credit, but having once agreed with the purchaser upon the terms of credit, a factor may not extend it, nor may the factor pledge, mortgage, or barter the property so consigned.
  3. To delegate the factor's authority to the factor's partner or servant, but not to any person in an independent employment.

3-06-03. Ostensible authority of factor 🗎 PDF 

A factor has ostensible authority to deal with the property of the factor's principal as the factor's own in transactions with persons not having notice of the actual ownership.

3-06-04. Must obey instructions - Exception 🗎 PDF 

A factor must obey instructions of the factor's principal to the same extent as any other employee, notwithstanding any advances the factor may have made to the principal upon the property consigned to the factor, except that if the principal forbids the factor to sell at the market price, the factor nevertheless may sell for the factor's reimbursement after giving to the factor's principal reasonable notice of the factor's intention to do so and of the time and place of sale, and proceeding in all respects as a pledgee.

3-06-05. Liability under guaranty commission 🗎 PDF 

A factor who charges the factor's principal with a guaranty commission upon a sale thereby assumes absolutely to pay the price when it falls due as if it were a debt of the factor's own and not as a mere guarantor for the purchaser, but the factor does not thereby assume any additional responsibility for the safety of the factor's remittance of the proceeds.

3-06-06. Relieved of liability by consent only 🗎 PDF 

A factor who receives property for sale under a general agreement or usage to guarantee the sale or the remittance of the proceeds cannot obtain relief from responsibility therefor without the consent of the factor's principal.

Title 4 — Agriculture

Chapter 01 — Agriculture Commissioner

This chapter has been repealed. 🗎 PDF

Chapter 02 — Agricultural Fair Associations

This chapter has been repealed. 🗎 PDF

Chapter 02.1 — State Fair Association

This chapter has been repealed. 🗎 PDF

Chapter 03 — North Dakota Corn Show

This chapter has been repealed. 🗎 PDF

Chapter 04 — Farmers' Institutes

This chapter has been repealed. 🗎 PDF

Chapter 05 — Experiment Stations

This chapter has been repealed. 🗎 PDF

Chapter 05.1 — Agricultural Experiment Station And Agricultural Research

This chapter has been repealed. 🗎 PDF

Chapter 06 — Cooperatives

This chapter has been repealed. 🗎 PDF

Chapter 07 — Cooperative Marketing Law

This chapter has been repealed. 🗎 PDF

Chapter 08 — County Agent

This chapter has been repealed. 🗎 PDF

Chapter 09 — State Seed Department

This chapter has been repealed. 🗎 PDF

Chapter 09.1 — Inspections And Grading Of Agricultural Commodities

This chapter has been repealed. 🗎 PDF

Chapter 10 — Inspection And Grading Of Potatoes And Other Produce

This chapter has been repealed. 🗎 PDF

Chapter 10.1 — Potato Industry Promotion Act

This chapter has been repealed. 🗎 PDF

Chapter 10.2 — Oilseed Industry Promotion

This chapter has been repealed. 🗎 PDF

Chapter 10.3 — Dry Bean Industry Promotion

This chapter has been repealed. 🗎 PDF

Chapter 10.4 — Barley

This chapter has been repealed. 🗎 PDF

Chapter 10.5 — Soybean Council

This chapter has been repealed. 🗎 PDF

Chapter 10.6 — Corn Industry Promotion

This chapter has been repealed. 🗎 PDF

Chapter 10.7 — Dry Pea And Lentil Council

This chapter has been repealed. 🗎 PDF

Chapter 11 — Regulation Of Wholesale Potato Dealers

This chapter has been repealed. 🗎 PDF

Chapter 11.1 — Potato Production Contracts

This chapter has been repealed. 🗎 PDF

Chapter 12 — Bees

This chapter has been repealed. 🗎 PDF

Chapter 12.1 — Honey Promotion Act

This chapter has been repealed. 🗎 PDF

Chapter 12.2 — Beekeeping

This chapter has been repealed. 🗎 PDF

Chapter 12.3 — Alfalfa Leafcutter Bees

This chapter has been repealed. 🗎 PDF

Chapter 13 — Poultry

This chapter has been repealed. 🗎 PDF

Chapter 13.1 — Turkey Promotion Act

This chapter has been repealed. 🗎 PDF

Chapter 13.2 — Poultry Division

This chapter has been repealed. 🗎 PDF

Chapter 14 — Unfair Discrimination In Purchase Of Farm Products

This chapter has been repealed. 🗎 PDF

Chapter 14.1 — Agriculturally Derived Fuel Tax Fund

This chapter has been repealed. 🗎 PDF

Chapter 14.2 — Northern Crops Institute

This chapter has been repealed. 🗎 PDF

Chapter 15 — Grasshoppers

This chapter has been repealed. 🗎 PDF

Chapter 16 — Eradication Of Gophers, Rabbits, And Crows

This chapter has been repealed. 🗎 PDF

Chapter 17 — Dairy Department

This chapter has been repealed. 🗎 PDF

Chapter 18 — Regulations Governing Dairy Products

This chapter has been repealed. 🗎 PDF

Chapter 18.1 — Milk Marketing Board

This chapter has been repealed. 🗎 PDF

Chapter 19 — Forestry And Tree Distribution

This chapter has been repealed. 🗎 PDF

Chapter 20 — Nurseries And Nursery Stock

This chapter has been repealed. 🗎 PDF

Chapter 21 — Tree Bounty

This chapter has been repealed. 🗎 PDF

Chapter 21.1 — Nurseries And Nursery Stock

This chapter has been repealed. 🗎 PDF

Chapter 21.2 — Trees For North Dakota Program

This chapter has been repealed. 🗎 PDF

Chapter 22 — Soil Conservation Districts Law

This chapter has been repealed. 🗎 PDF

Chapter 23 — Agricultural Conservation And Adjustment Law

This chapter has been repealed. 🗎 PDF

Chapter 24 — Miscellaneous

This chapter has been repealed. 🗎 PDF

Chapter 25 — Seed Sales Regulations

This chapter has been repealed. 🗎 PDF

Chapter 26 — Seed Potato Act

This chapter has been repealed. 🗎 PDF

Chapter 27 — Dairy Promotion Commission

This chapter has been repealed. 🗎 PDF

Chapter 28 — North Dakota State Wheat Commission

This chapter has been repealed. 🗎 PDF

Chapter 28.1 — Flax Utilization Research Tax

This chapter has been repealed. 🗎 PDF

Chapter 29 — Dairy Department

This chapter has been repealed. 🗎 PDF

Chapter 30 — Dairy Products Regulations

This chapter has been repealed. 🗎 PDF

Chapter 31 — Grasshopper Control Program

This chapter has been repealed. 🗎 PDF

Chapter 32 — Interstate Pest Control Compact

This chapter has been repealed. 🗎 PDF

Chapter 33 — Plant Pests

This chapter has been repealed. 🗎 PDF

Chapter 34 — Beef Promotion Act

This chapter has been repealed. 🗎 PDF

Chapter 35 — Pesticide Act

This chapter has been repealed. 🗎 PDF

Chapter 35.1 — Chemigation Regulation

This chapter has been repealed. 🗎 PDF

Chapter 35.2 — Pesticide And Pesticide Container Disposal

This chapter has been repealed. 🗎 PDF

Chapter 36 — Agricultural Development Act

This chapter has been repealed. 🗎 PDF

Chapter 37 — Agriculture In The Classroom

This chapter has been repealed. 🗎 PDF

Chapter 38 — Organic Foods Standards

This chapter has been repealed. 🗎 PDF

Chapter 39 — Cultivated Ginseng

This chapter has been repealed. 🗎 PDF

Chapter 40 — Crop Protection Products

This chapter has been repealed. 🗎 PDF

Chapter 41 — Industrial Hemp

This chapter has been repealed. 🗎 PDF

Chapter 42 — Seeds And Crops Inspection And Analysis

This chapter has been repealed. 🗎 PDF

Chapter 43 — Meatpacking Plant Assistance

This chapter has been repealed. 🗎 PDF

Chapter 44 — Crop Insurance Proposal Development

This chapter has been repealed. 🗎 PDF

Title 4.1 — Agriculture

Chapter 01 — Agriculture Commissioner

4.1-01-01. Definitions 🗎 PDF 

As used in this title, unless otherwise provided:
  1. "Commissioner" means the agriculture commissioner or the designee or authorized representative of the commissioner.
  2. "Department" means the North Dakota department of agriculture.

4.1-01-02. Salary of agriculture commissioner 🗎 PDF 

The annual salary of the agriculture commissioner is one hundred forty thousand seven hundred eighty dollars through June 30, 2026, and one hundred forty-five thousand three dollars after that date.

4.1-01-03. Compelling attendance of witnesses and production of books and papers 🗎 PDF 

The commissioner may compel the attendance of persons at hearings before the commissioner, and the production of books and papers. The commissioner may examine witnesses under oath and may administer oaths. The commissioner's office must file and preserve any testimony taken by the commissioner.

4.1-01-04. Exhibits at fairs 🗎 PDF 

The commissioner shall have charge of the exhibits of products or resources of the state which are shown at any fair or exposition in the United States. The commissioner shall cooperate with any railroad company doing business in the state, and with any person interested in securing an exhibit at any fair or exposition in the United States.

4.1-01-05. Cooperation with federal agencies in destruction of predatory animals, destructive birds, and injurious field rodents 🗎 PDF 

  1. The commissioner may cooperate with the United States department of agriculture, animal and plant health inspection service, or other appropriate federal agency, in the control and destruction of:
    1. Fur-bearers and field rodents that are injurious to:
      1. Livestock;
      2. Poultry; or
      3. Big and small game.
    2. Big game threatening human health or domestic livestock; and
    3. Birds causing crop damage or substantial economic loss or threatening human health.
  2. The control and destruction of animals must be approved by the director of the game and fish department. The commissioner may enter written agreements with the animal and plant health inspection service or other appropriate federal agency, and the director of the game and fish department to determine:
    1. The methods and procedures for the control and destruction of the birds and animals;
    2. The extent of supervision required by the commissioner and the animal and plant health inspection service or other appropriate federal agency; and
    3. The use and expenditure of the funds appropriated by the legislative assembly for the control and destruction of the animals.
  3. The commissioner, in cooperation with the animal and plant health inspection service or other appropriate federal agency, may enter agreements with other governmental agencies and with counties, associations, corporations, limited liability companies, or individuals for control and destruction of birds and animals under this section.

4.1-01-06. Expenditures authorized - Who to approve vouchers - Qualifications of hunters and trappers hired - When bounties not payable 🗎 PDF 

The commissioner may authorize expenditures from funds available for equipment, supplies, and other expenses, including expenditures for personal services of hunters and trappers, as may be necessary to execute the functions of the commissioner under section 4.1-01-05. Hunters and trappers employed under section 4.1-01-05 must be state residents. Hunters and trappers employed under section 4.1-01-05 are not entitled to bounty provided by state laws for the killing or extermination of birds and animals under that section. All vouchers for expenditures made by the commissioner under this section must be approved by the duly authorized agent of the animal and plant health inspection service or other appropriate federal agency.

4.1-01-07. Disposition of proceeds of furs, skins, and specimens taken 🗎 PDF 

All furs, skins, and specimens taken by hunters and trappers paid out of funds appropriated to carry out section 4.1-01-05 must be disposed of in a manner the commissioner determines is in the best interest of the state. If furs, skins, or specimens are sold, the net proceeds of the sales, up to fifteen thousand dollars per biennium, must be used by the United States department of agriculture wildlife services to fund program activities benefiting the state's livestock producers.

4.1-01-08. Marketing bureau 🗎 PDF 

The commissioner shall establish and maintain a marketing bureau to gather and disseminate statistical information on any agricultural marketing problems of the state and to engage in marketing services of agricultural products. Any moneys received or generated by the pride of Dakota program must be deposited in the agriculture department operating fund in the state treasury.

4.1-01-08.1. International business and trade office - Advisory board - Continuing appropriation 🗎 PDF 

  1. The commissioner shall administer the international business and trade office. The purpose of the office is to assist North Dakota businesses to expand exports to international markets by:
    1. Advocating for exporters;
    2. Offering export educational opportunities to North Dakota businesses;
    3. Researching and raising awareness of export opportunities, issues, and challenges impacting North Dakota businesses;
    4. Assisting North Dakota businesses in identifying, developing, and cultivating international markets for products; and
    5. Organizing and carrying out trade missions that seek to facilitate contact and communication between North Dakota businesses and international markets.
  2. The commissioner may designate a nonprofit corporation incorporated in this state which has the primary purpose of assisting North Dakota exporters or contract with a third party for the provision of services for the international business and trade office. If the commissioner designates a nonprofit corporation or contracts with a third party under this subsection, all data and databases collected and created by the third party in performing services for the office are the property of the department and the third party.
  3. The commissioner may seek and accept any gift, grant, or donation of funds, property, services, or other assistance from public or private sources for the purpose of furthering the objectives of the international business and trade office. Any funds accepted under this subsection are appropriated to the commissioner on a continuing basis.
  4. The commissioner may establish an international business and trade office advisory board with whom the commissioner may consult in administering the international business and trade office. Each member of the advisory board is entitled to receive per diem compensation at a rate established by the director not exceeding sixty-two dollars and fifty cents and reimbursement of expenses as provided by law for state officers, while attending meetings or performing duties directly related to board membership, except that per diem compensation under this section may not be paid to any member who receives compensation or salary as a regular state employee or official.

4.1-01-09. Certified beef program 🗎 PDF 

The commissioner may collaborate with the state board of animal health, the North Dakota stockmen's association, North Dakota state university beef systems, and the United States secretary of agriculture to develop a source-verified and process-verified beef marketing program known as the certified beef program.

4.1-01-10. Sustainably grown in North Dakota - Application - Logo - Promotion of commodities 🗎 PDF 

  1. The commissioner may implement a program to promote agricultural commodities sustainably grown in North Dakota.
  2. If a program under subsection 1 is implemented, the program must require a producer to file an application with the commissioner. If a producer demonstrates the producer's growing practices with respect to a particular commodity meet the commissioner's established criteria for sustainability, the commissioner shall authorize the producer to label and market the commodity as being sustainably grown in North Dakota.
  3. The commissioner may develop, and make available for use by authorized producers, a logo indicating the commodity is sustainably grown in North Dakota. The commissioner may actively support and promote the sale and use of products identified as sustainably grown in North Dakota.
  4. The commissioner may establish and charge producers a fee for participating in the program. The commissioner shall forward all fees collected under this section to the state treasurer for deposit in the general fund.
  5. The commissioner may engage in research and educate members of the public regarding agricultural commodities that are sustainably grown in this state.
  6. For purposes of this section, "sustainably grown" means a crop grown using research-based practices resulting in:
    1. Increased efficiencies in soil and nutrient preservation;
    2. Decreased reliance on tillage and other soil-depleting practices;
    3. Increased efficiencies in the use of water;
    4. Increased efficiencies in the use of other necessary and measurable agricultural inputs;
    5. Increased yield efficiencies; and
    6. Greater economic benefit to producers.

4.1-01-11. Advisory committee on sustainable agriculture - Creation - Duties - Powers - Compensation - Report to legislative management - Continuing appropriation 🗎 PDF 

Repealed by S.L. 2023, ch. 74, § 1.

4.1-01-12. Commodity groups - Agriculture commissioner - Meetings 🗎 PDF 

  1. The commissioner may participate, as a nonvoting member, in any regular or special meeting of a commodity group, including any executive session held by a commodity group.
  2. Annually, the commissioner shall call a meeting of representatives from each commodity group to engage in collaborative efforts to promote and market agricultural commodities.
  3. For purposes of this section, "commodity group" means the:
    1. North Dakota barley council;
    2. North Dakota beef commission;
    3. North Dakota beekeepers association;
    4. North Dakota corn utilization council;
    5. North Dakota dairy promotion commission;
    6. North Dakota dry bean council;
    7. North Dakota dry pea and lentil council;
    8. North Dakota oilseed council;
    9. North Dakota potato council;
    10. North Dakota soybean council;
    11. North Dakota turkey federation; and
    12. North Dakota wheat commission.

4.1-01-13. Publicly owned land - Noxious weed control or eradication 🗎 PDF 

  1. The commissioner shall arrange a noxious weed control or eradication program with all state and federal agencies owning, controlling, or having jurisdiction over land within the state.
  2. Each weed control officer shall arrange a noxious weed control or eradication program with political subdivisions owning or controlling public land within the weed control officer's jurisdiction.
  3. If a federal agency does not control or eradicate noxious weeds on land under its jurisdiction and does not develop a management plan for controlling or eradicating the noxious weeds, the appropriate weed control office shall notify the agency of the failure to control or eradicate the noxious weeds. The federal agency shall provide a report to the weed control authorities detailing the methods used by the federal agency and showing cause why the federal agency is not controlling or eradicating the noxious weeds. The commissioner may specify the forms on which the federal agency report must be submitted.
  4. Upon being notified by a weed board of the federal agency's failure to control or eradicate noxious weeds, the commissioner may hold a public hearing to determine the reason for the failure.

4.1-01-14. Equine slaughter - Establishments 🗎 PDF 

The commissioner shall monitor federal statutory and regulatory actions related to the slaughter of horses, mules, and other equines, and in particular, actions pertaining to the establishments in which the slaughter and preparation of the carcasses may take place. The commissioner may pursue or support federal legislative, regulatory, or contractual avenues allowing for the slaughter and processing of horses, mules, and other equines in this state, without the restriction that the slaughter or product preparation be conducted in establishments separate from any in which cattle, sheep, swine, or goats are slaughtered or their products are prepared.

4.1-01-15. Agricultural wetland credits - Database 🗎 PDF 

The commissioner shall create and maintain an electronic database of wetland credits available for purchase by an agricultural landowner.

4.1-01-16. Grape and wine advisory committee - Membership 🗎 PDF 

The commissioner shall appoint a grape and wine advisory committee. The committee must include:
  1. Two individuals who are grape producers;
  2. One individual who is the producer of a fruit, other than grapes, used in vinification;
  3. Two individuals who own wineries located in this state; and
  4. One representative of the North Dakota grape and wine association.

4.1-01-17. Pipeline restoration and reclamation oversight program - Generally 🗎 PDF 

  1. The commissioner shall establish a program providing technical assistance and support to surface owners and surface tenants on pipeline restoration and followup support to surface owners and surface tenants on pipeline reclamation.
  2. The commissioner may contract for ombudsmen to be a resource for technical assistance and followup on pipeline issues. The ombudsmen may not investigate or assist with any pipeline installed before January 1, 2006, or regulated by the public service commission under title 49, and may not assist in easement negotiations.
  3. The program may provide technical education, support, and outreach on pipeline- related matters in coordination with other entities.
  4. The commissioner may contract with local individuals, deemed trustworthy by the surface owners and surface tenants, to be ombudsmen. The commissioner is not subject to the provisions of chapter 54-44.4 when contracting for the services of ombudsmen.
  5. The names of surface owners and surface tenants who receive assistance under the program are closed records as defined in section 44-04-17.1.

4.1-01-18. Federal environmental law impact review committee 🗎 PDF 

  1. The federal environmental law impact review committee consists of:
    1. The commissioner, who shall serve as the chairman;
    2. The governor or the governor's designee;
    3. The majority leader of the house of representatives, or the leader's designee;
    4. The majority leader of the senate, or the leader's designee;
    5. One member of the legislative assembly from the minority party, selected by the chairman of the legislative management;
    6. One individual appointed by the North Dakota corn growers association;
    7. One individual appointed by the North Dakota grain growers association;
    8. One individual appointed by the North Dakota soybean growers association;
    9. One individual appointed by the North Dakota stockmen's association;
    10. One individual appointed by the North Dakota farm bureau;
    11. One individual appointed by the North Dakota farmers union;
    12. The chairman of the public service commission or the chairman's designee;
    13. The director of the department of water resources or the director's designee;
    14. The director of the game and fish department, or the director's designee;
    15. The director of the department of transportation, or the director's designee;
    16. The director of the department of environmental quality, or the director's designee;
    17. One representative of an investor-owned utility company;
    18. One representative from the North Dakota association of rural electric cooperatives; and
    19. Two individuals from the energy community, of which one individual must be a representative of an organization that supports lignite energy in the state appointed by the commissioner and one individual must be a representative of an organization that supports oil and gas activity in the state appointed by the governor.
  2. The committee shall review federal environmental legislation and regulations detrimentally impacting or potentially detrimentally impacting the state's agricultural, energy, or oil production sectors. The committee shall confer with the attorney general with respect to participation in administrative or judicial processes pertaining to the legislation or regulations.
    1. Any member of the legislative assembly serving on the committee is entitled to compensation at the rate provided for attendance at interim committee meetings and reimbursement for expenses, as provided by law for state officers, if the member is attending meetings of the committee or performing duties directed by the committee.
    2. The compensation and reimbursement of expenses, as provided for in this subsection, are payable by the legislative council.

4.1-01-19. Environmental impact - Cost of participation 🗎 PDF 

  1. Any expenses incurred by the commissioner or by the federal environmental law impact review committee in meeting the requirements of section 4.1-01-18 must be paid by the commissioner from the federal environmental law impact review fund.
  2. If the attorney general elects to participate in an administrative or judicial process pertaining to federal environmental legislation or regulations, which detrimentally impact or potentially detrimentally impact the state's agricultural, energy, or oil production sectors, any expenses incurred by the attorney general in the participation must be paid by the commissioner from the federal environmental law impact review fund.
  3. For purposes of this section, "expenses" include administrative costs, consulting fees, research costs, expert witness fees, attorney fees, and travel costs.

4.1-01-20. Gifts - Grants - Donations 🗎 PDF 

The commissioner may accept gifts, grants, and donations for the purposes set forth in section 4.1-01-19, provided the commissioner posts the amount and source of any gifts, grants, and donations on the department's website. Any moneys received in accordance with this section must be deposited in the federal environmental law impact review fund.

4.1-01-20.1. Bioscience innovation grant program - Continuing appropriation 🗎 PDF 

  1. The commissioner shall collaborate with a local association having bioscience experience to develop and administer a bioscience innovation grant program through the bioscience innovation grant fund. The commissioner shall collaborate with the department of commerce when awarding bioscience innovation grants to coordinate the management of the commissioner's bioscience innovation grant program and the department of commerce's biotechnology grant program.
  2. The commissioner shall collaborate with the committee established under subsection 5 to adopt rules and criteria necessary to administer the bioscience innovation grant program. The rules must include criteria for program eligibility, including requiring a bioscience business that receives funding through the program match up to fifty percent of the amount of the grant received.
  3. The bioscience innovation grant fund is a special fund created in the state treasury. Moneys in the fund are appropriated on a continuing basis to the commissioner to award grants to:
    1. Support biotechnology innovation and commercialization in areas including crop genetics, biofuels, biomaterials, biosensors, and biotechnology in relation to food, nutrition, animals, humans, equipment, medical and health products and services, medical diagnostics, medical therapeutics, and farm-based pharmaceuticals;
    2. Promote the creation of bioscience jobs in the state to be filled by graduates from institutions under the control of the state board of higher education;
    3. Encourage the development of new bioscience technologies and bioscience startup companies in the state;
    4. Leverage the agriculture industry in the state to support the development of bioscience technologies impacting livestock operations and crop production;
    5. Promote bioscience research and development at institutions under the control of the state board of higher education; and
    6. Encourage coordination and collaboration among other entities and programs in the state to promote bioscience innovation goals.
  4. A bioscience business operating in the state is eligible to receive a grant under the program if the business:
    1. Employs at least two employees;
    2. Has documented annual sales of less than two million five hundred thousand dollars; and
    3. Is a corporation, partnership, limited liability company, limited partnership, or limited liability partnership registered in the state.
  5. The bioscience innovation program shall award grant funding through a committee consisting of:
    1. One representative from the department of agriculture appointed by the agriculture commissioner;
    2. One representative from the bioscience association of North Dakota appointed by the board of the bioscience association of North Dakota; and
    3. One representative from the department of commerce appointed by the commissioner of the department of commerce.
  6. Grant funds awarded under this section may not be used for capital improvements, academic programming or curriculum, or workforce training.

4.1-01-21. Federal environmental law impact review fund - Continuing appropriation - Investments 🗎 PDF 

  1. The federal environmental law impact review fund consists of:
    1. Any moneys appropriated or transferred for the purposes set forth in section 4.1-01-19;
    2. Any gifts, grants, and donations forwarded to the commissioner for the purposes set forth in section 4.1-01-19; and
    3. Any interest or investment earnings upon moneys in the fund.
  2. All moneys in the federal environmental law impact review fund are appropriated to the commissioner on a continuing basis for the purposes set forth in section 4.1-01-19. The state treasurer may invest moneys in the fund in accordance with section 21-10-07.

4.1-01-21.1. Environmental impact mitigation fund - Report to legislative management - Continuing appropriation - Investments 🗎 PDF 

  1. There is created in the state treasury the environmental impact mitigation fund. The fund consists of all moneys deposited in the fund under section 49-22-09.2 and all interest or investment earnings upon moneys in the fund. All moneys in the fund are appropriated to the commissioner on a continuing basis for disbursement by the commissioner in accordance with this section. The state treasurer may invest moneys in the fund in accordance with section 21-10-07.
  2. Moneys in the fund may be used only for:
    1. Consultation with environmental scientists or engineers, industry specialists, or others for relevant services to analyze or implement mitigation required from the impact of development;
    2. Creation, restoration, or mitigation of similar habitat affected by the construction or operation of an energy conversion or transmission facility. Mitigation of adverse impacts from development under this section shall be conducted in the following order of priority:
      1. The area immediately impacted by the development;
      2. The county impacted by the development;
      3. The region impacted by the development; and
      4. Other areas within the state; and
    3. Purchasing and maintaining easements or leaseholds.
  3. The commissioner is not subject to chapter 54-44.4 when contracting for services under this chapter.
  4. In consultation with the federal environmental law impact review committee, the commissioner shall adopt rules pursuant to chapter 28-32 to implement the provisions of this section.
  5. Easements or leaseholds purchased by a person to mitigate adverse environmental effects of the construction or operation of an energy conversion or transmission facility under chapter 49-22 must be limited to the operational life of the facility as defined under chapter 49-22. Any payment made to mitigate adverse environmental effects of the construction or operation of an energy conversion or transmission facility under section 49-22-09.2 must be made to the commissioner who shall deposit the payment into the environmental impact mitigation fund. Prior to the public service commission issuing a permit or certificate to an applicant under chapter 49-22, the commissioner shall notify the public service commission of mitigation efforts under this section to create, restore, or mitigate similar habitat affected by the construction or operation of an energy conversion or transmission facility.
  6. The commissioner shall provide a biennial report of environmental impact mitigation fund disbursements to the legislative management.
  7. For purposes of this section, the environmental impact mitigation fund is not subject to subsection 2 of section 4.1-01-18.

4.1-01-21.2. Low-carbon fuels fund - Continuing appropriation 🗎 PDF 

  1. The low-carbon fuels fund is created as a special fund in the state treasury. The fund consists of all moneys transferred to the fund under section 39-04-39. The moneys in the fund are appropriated to the commissioner on a continuing basis to distribute low-carbon fuels incentives and carbon intensity verification under this section.
  2. The commissioner shall distribute low-carbon fuels incentives to ethanol production facilities for eligible capital projects that increase the efficiency of a facility and decrease the carbon intensity of the production process. Distributions of low-carbon fuels incentives to an ethanol production facility are limited to fifty percent of the cost of eligible capital projects and may not exceed:
    1. Three million dollars per biennium;
    2. Cumulative distributions of ten million dollars per facility; and
    3. A period of ten years beginning with the first distribution to the facility.
  3. For purposes of this section, "eligible capital projects" means construction of new infrastructure or replacement of existing infrastructure for carbon dioxide capture and storage, beneficial use of carbon dioxide, energy efficiency enhancements, or ethanol yield improvements.
  4. The commissioner may use up to one million dollars from the fund to contract with an entity to develop a carbon intensity verification process.
  5. At least once per biennium, the commissioner shall provide a report to the legislative management regarding the status of the fund, including the revenues deposited in the fund, the low-carbon fuels incentives distributed from the fund, and the balance of the fund.

4.1-01-22. Agriculture in the classroom program 🗎 PDF 

  1. The agriculture commissioner shall administer an agriculture in the classroom program with the advice of the agriculture in the classroom council.
  2. The agriculture in the classroom council consists of seven individuals. The agriculture commissioner shall appoint six council members. The seventh council member is the superintendent of public instruction or the superintendent's designee. Annually, the council shall elect one of its members to serve as the chairman.
  3. At the call of the chairman, the council shall meet at least twice each year, to confer with and advise the agriculture commissioner regarding issues related to the agriculture in the classroom program.
  4. The agriculture commissioner may award grants and contract with any person for the provision of an agriculture in the classroom program, the development of agricultural curriculum activities applicable to students from kindergarten through grade twelve, and the training of teachers in agricultural curriculum activities.
  5. The agriculture commissioner may:
    1. Consult and work with the superintendent of public instruction, the department of career and technical education, the United States department of agriculture, and any other public or nonpublic entities to provide and promote an agriculture in the classroom program;
    2. Prepare instructional, informational, and reference publications on the North Dakota agricultural economy and rural lifestyles;
    3. Provide training programs for public school teachers in agricultural curriculum activities;
    4. Encourage research on and identification of new instructional, informational, and reference publications relating to this state's agricultural economy and rural lifestyles; and
    5. Monitor the quality and condition of the agriculture in the classroom program.
  6. The agriculture commissioner may accept and expend gifts, grants, and donations in support of the agriculture in the classroom program. If any gifts, grants, or donations are designated for a specific purpose, the commissioner shall honor the purpose provided the purpose is consistent with this chapter.
  7. Members of the agriculture in the classroom council may not receive any compensation for their services on the council, but are entitled to be reimbursed for their expenses incurred in performing their duties in the amounts provided by law for state employees.

4.1-01-23. Wind energy restoration and reclamation oversight program 🗎 PDF 

  1. The agriculture commissioner shall establish a program that provides technical assistance, support, and outreach to property owners on wind property restoration and followup support to property owners on wind property reclamation.
  2. The agriculture commissioner may contract for ombudsmen for purposes of being a resource for technical assistance and followup on wind property issues. The ombudsmen may not investigate or assist in any easement negotiations.
  3. The agriculture commissioner may contract with local individuals, deemed trustworthy by property owners, to be ombudsmen. The agriculture commissioner is not subject to chapter 54-44.4 when contracting for the services of ombudsmen.
  4. The agriculture commissioner shall work in cooperation with the public service commission to carry out the duties described in this section.

4.1-01-24. Livestock-friendly county designation 🗎 PDF 

  1. The commissioner shall establish a livestock-friendly county designation to recognize and assist efforts to develop, maintain, or expand livestock sectors within the counties of this state.
  2. A county may apply to the commissioner to become designated as a livestock-friendly county. A county is eligible for the designation under this section if the county:
    1. Through its board of county commissioners, has adopted and enacted a resolution expressing interest in developing, maintaining, or expanding livestock production and processing sectors within the county;
    2. Intends to collaborate with all appropriate political subdivisions within the county to develop, maintain, or expand livestock production and processing sectors;
    3. Has submitted a plan detailing the necessary actions to develop, maintain, or expand livestock production and processing sectors;
    4. Has conducted and completed a study identifying suitable locations for rural economic development, including locations for confined animal feeding operations, agricultural processing facilities, agricultural storage facilities, and other agricultural-related development; and
    5. Has disclosed other existing or planned activities and initiatives within the county to develop, maintain, or expand livestock production and processing sectors.
  3. If the commissioner determines a county has complied with the provisions in subsection 2, the commissioner publicly shall designate the county as a livestock- friendly county.
  4. To retain the designation, a county shall submit an application to the commissioner every four years.
  5. The commissioner may revoke a county's designation as a livestock-friendly county if the commissioner determines the county no longer meets the requirements for the designation under subsection 2.
  6. The commissioner may adopt rules to effectuate the provisions of this section.

4.1-01-25. Regional livestock development and planning program - Grants 🗎 PDF 

  1. The commissioner shall administer a grant program to assist counties and regional planning councils, as defined in chapter 54-40.1, for livestock development planning. A county or a regional planning council may submit an application for assistance under this section to the commissioner.
  2. The commissioner shall award grants to counties and regional planning councils for purposes of coordinating strategic planning and accommodating and encouraging investment in livestock production. Grants shall be awarded for the following activities:
    1. Identification of suitable locations for rural economic development, including animal feeding operations, agricultural processing and storage facilities, and other agricultural-related development. The following factors must be considered when identifying suitable locations for rural economic development:
      1. Local zoning and land use regulations;
      2. State permitting requirements; and
      3. Availability of infrastructure and natural resources necessary to accommodate rural economic development projects.
    2. Review and updating of township zoning and land use regulations.
  3. Grants awarded under this section may not exceed:
    1. Up to twelve thousand dollars for every county included in an application for activities described in subdivision a of subsection 2.
    2. Up to five hundred dollars for every township included in an application for activities described in subdivision b of subsection 2.
  4. Any information created, collected, or maintained by the commissioner which identifies individual parcels of land for rural economic development is confidential and not subject to the open records requirements of section 44-04-18.

4.1-01-26. Postproduction royalty oversight program - Report 🗎 PDF 

  1. The commissioner shall establish a program providing technical assistance and support to mineral owners, lease owners, and mineral companies relating to royalty payment issues.
  2. The commissioner may contract for ombudsmen to be a resource for technical assistance and followup on royalty payment issues.
  3. The program may provide technical education, support, and outreach on royalty payment-related matters in coordination with other entities.
  4. The commissioner may contract with local individuals, deemed trustworthy by the mineral owners, lease owners, and mineral companies, to be ombudsmen. The commissioner is not subject to the provisions of chapter 54-44.4 when contracting for the services of ombudsmen.
  5. The names of mineral owners, lease owners, and mineral companies that receive assistance under the program are not subject to section 44-04-18 and section 6 of article XI of the Constitution of North Dakota.
  6. The commissioner shall submit expenses related to the implementation of the program to the industrial commission for reimbursement.
  7. By June first of each even-numbered year, the commissioner shall provide a report to the energy development and transmission committee.

4.1-01-27. Agriculture infrastructure grant program 🗎 PDF 

  1. The agriculture commissioner, in consultation with the director of the department of transportation, shall develop policies to administer the agriculture infrastructure grant program to include a grant application process and eligibility criteria.
  2. The agriculture commissioner, in consultation with the director of the department of transportation, shall award grants to a county, township, or city with a population of one thousand five hundred residents or less, for road and bridge improvements necessary to accommodate value-added agriculture businesses. Grant funding under this subsection may be used for:
    1. Corridor improvements on city, county, and township roadways; and
    2. Improvements to roads or bridges that provide access to value-added agriculture businesses.
  3. The agriculture commissioner shall award grants to entities for water and sewer line improvements and electrical and gas supply improvements necessary to accommodate value-added agriculture businesses.
  4. Grants awarded under this section may not exceed:
    1. The lesser of one million two hundred fifty thousand dollars per project or eighty percent of the infrastructure project cost for grants awarded under subsection 2.
    2. The lesser of three hundred fifty thousand dollars per project or eighty percent of the capital improvement project costs for grants awarded under subsection 3.
  5. For purposes of grant eligibility under this section, value-added agriculture businesses include the same businesses as provided under section 4.1-01.1-07.
  6. Grant funding under this section may not be used for routine maintenance or operating costs.

4.1-01-28. Model zoning review task force - Report to the legislative management 🗎 PDF 

  1. Model zoning review task force consists of:
    1. The agriculture commissioner or the commissioner's designee, as chair.
    2. The director of the department of environmental quality or the director's designee.
    3. The executive director of the North Dakota Indian affairs commission or the director's designee.
    4. Two members from the North Dakota township association. One member must be an agriculture producer.
    5. Two members from the North Dakota association of counties. One member must be an agriculture producer.
    6. One member of the milk producers association of North Dakota.
    7. One member of the North Dakota stockmen's association.
    8. One member of the North Dakota pork council.
    9. One member of the North Dakota corn growers association.
    10. One member of the North Dakota soybean growers association.
    11. One member of the North Dakota farmers union.
    12. One member of the North Dakota farm bureau.
    13. One member of the North Dakota planning association.
  2. The task force shall:
    1. Develop a new, or update a previously created model zoning ordinance during the 2023-24 biennium.
    2. Review low-density agriculture districts and applicable setbacks and uses.
    3. Review current zoning districts for the purpose of considering the impact of overlay districts.
    4. Provide a report to the legislative management on changes to the model zoning ordinance.
    5. Meet every five years to review and update the model zoning ordinance, if necessary.
  3. The agriculture commissioner shall provide the task force with administrative services.
  4. For purposes of this section "model zoning ordinance" means the most current model zoning ordinance related to animal feeding operations in this state.

4.1-01-29. Farm management program 🗎 PDF 

The commissioner shall implement and oversee a program to:
  1. Coordinate new and existing farm management programs offered by a state agency, board, or commission; and
  2. Create and expand marketing clubs as adjuncts to new and existing farm management programs.

4.1-01-30. Grasslands grazing grant program 🗎 PDF 

  1. The agriculture commissioner shall administer a grasslands grazing grant program to provide grants to organizations representing cooperative grazing associations in the state.
    1. An organization that receives a grant under this program may distribute the funding to cooperative grazing associations for eligible infrastructure projects, which must be located on national grasslands within the state.
    2. Eligible infrastructure projects include:
      1. Water development.
      2. Fencing.
      3. Conservation initiatives.
      4. Compliance with federal permitting requirements, including fees for professional services.
      5. Other projects to enhance wildlife habitat, capture carbon, or increase the health of grasslands.
    3. Program participants shall develop and implement a grazing land plan in compliance with local soil conservation district guidance, and the plan must be approved by the local soil conservation district.
  3. To be eligible for a grant, an organization shall provide one dollar of matching funds from nonstate sources for every four dollars of grant funding. The agriculture commissioner shall establish additional guidelines for the program.

4.1-01-31. Conservation easement or leasehold 🗎 PDF 

The commissioner may purchase and hold an easement or leasehold in the name of the state to administer this title. The commissioner shall terminate any easement or leasehold if the easement or leasehold is no longer necessary.

Chapter 01.1 — Agricultural Products Utilization Commission

4.1-01.1-01. Agricultural products utilization commission - Composition - Appointment 🗎 PDF 

The agricultural products utilization commission shall administer the agricultural products utilization fund. The commission shall consist of nine members, five of whom must be appointed by the agriculture commissioner for terms of two years each, arranged so that two terms expire in odd-numbered years and three terms expire in even-numbered years. Four members appointed by the agriculture commissioner must be actively engaged in farming in this state and one member appointed by the agriculture commissioner must be actively engaged in business in this state. The governor shall appoint one member for a term of two years which expires in odd-numbered years. The member appointed by the governor must be actively engaged in business in this state. Commission members may be reappointed. Terms of commissioners commence on the first day of July. The commissioner of commerce, the president of North Dakota state university, and the agriculture commissioner, or their designees, are members of the commission. The commission shall elect one of its members as chairman.

4.1-01.1-02. Agricultural products utilization commission - Authority 🗎 PDF 

  1. The North Dakota agricultural products utilization commission may apply for, accept, and expend any appropriation, grant, gift, or service made available from public or private sources.
  2. The commission may administer grant programs including:
    1. A basic and applied research grant program;
    2. A utilization and marketing grant program;
    3. A cooperative marketing grant program;
    4. A nature-based tourism grant program;
    5. A technical assistance grant program for value-added businesses;
    6. A farm diversification grant program;
    7. An agricultural prototype development grant program;
    8. An agricultural technologies grant program; and
    9. A North American marketing grant program.
  3. As a condition of any grant administered by the commission, the commission may require the recipient repay some or all of the grant if the recipient does not fulfill the conditions of the grant. Repayment may be monetary or any other type or method determined by the commission.

4.1-01.1-03. Agricultural products utilization commission - Meetings - Personnel - Reports 🗎 PDF 

The agricultural products utilization commission, an office of the agriculture commissioner, shall meet as necessary and shall report to each session of the legislative assembly. The commissioner shall provide office space, employ required personnel for the performance of its duties, hire consultants, spend any funds appropriated to the commission, and contract with public entities or private parties for services.

4.1-01.1-04. Agricultural products utilization commission - Reimbursement - Compensation 🗎 PDF 

Members of the agricultural products utilization commission are entitled to be reimbursed for expenses incurred in the performance of their duties, in the same manner as other state officials are reimbursed, according to sections 44-08-04 and 54-06-09. If not otherwise employed by the state of North Dakota, members of the commission are entitled to receive per diem compensation of one hundred thirty-five dollars for each day of attending meetings and performing other duties relating to official business of the commission. The commission chairman, if not otherwise employed by the state of North Dakota, may receive an additional one hundred dollars for each day of a regular meeting attended as payment for reviewing and evaluating grant proposals.

4.1-01.1-05. Agricultural products utilization commission - Administrative expenses 🗎 PDF 

Administrative expenses of the agricultural products utilization commission, including expenses of members of the commission, employment of required personnel, hiring of consultants, and contracting with public or private entities for services may not exceed ten percent of the funds appropriated to the commission by the legislative assembly each biennium, excluding federal funds.

4.1-01.1-06. Agricultural products utilization fund - Purposes 🗎 PDF 

The agricultural products utilization fund in the state treasury must be used to fund programs for agricultural research, equipment, development, processing, technology, and marketing. The fund must be used to defray the expenses of the North Dakota agricultural products utilization commission. Interest earned on moneys in the fund must be credited to the fund.

4.1-01.1-07. Agriculture diversification and development fund - Continuing appropriation. (Effective through June 30, 2029) 🗎 PDF 

  1. There is created in the state treasury the agriculture diversification and development fund. The fund consists of all moneys transferred to the fund by the legislative assembly, interest upon moneys in the fund, and payments of interest and principal on loans made from the fund. Moneys in the fund are appropriated to the Bank of North Dakota on a continuing basis for loan disbursements and administrative costs pursuant to this section, and moneys in the fund are appropriated to the agriculture commissioner on a continuing basis for grants and value-added agriculture facility incentive funding pursuant to this section and section 4.1-01-27. The agriculture diversification and development committee shall designate the amount available from the fund for loans, interest rate buydowns, grants, and value-added agriculture facility incentive funding.
  2. Loans, interest rate buydowns, or grants under subsections 3 and 4 may be issued from the fund to support new or expanding value-added agriculture businesses that demonstrate financial feasibility, enhance profitability for farmers and ranchers, create jobs, and grow the state's economy. Grants under section 4.1-01-27 may be issued from the fund for infrastructure improvements necessary for the development or expansion of new or existing value-added agriculture businesses. Value-added agriculture businesses include food production or processing facilities; feed or pet food processing facilities; commodity processing facilities; agriculture product manufacturers; and animal agriculture production facilities, including swine, poultry, dairy, and feed lot production facilities.
  3. The Bank of North Dakota shall develop policies for loans and interest rate buydowns from the fund in consultation with the agriculture diversification and development committee. The Bank shall review loan applications. To be eligible for a loan under this section, an entity shall agree to provide the Bank with information as requested. The Bank may develop policies for loan participation with local financial institutions. The Bank shall deposit in the fund all principal and interest paid on the outstanding loans. The Bank may use a portion of the interest paid as a servicing fee to pay for administrative costs, which may not exceed one-half of one percent of the amount of the outstanding loans. The fund must be audited annually pursuant to section 6-09-29, and the cost of the audit must be paid from the fund.
  4. The agricultural diversification and development committee shall develop policies for grants from the fund to support new or expanding value-added agriculture businesses, including eligibility criteria, maximum grant amounts, and reporting requirements. Based on recommendations from the agricultural diversification and development committee, the agriculture commissioner shall distribute the grant funding.
  5. The agriculture diversification and development committee shall develop a value-added milk processing facility incentive program to provide grants.
    1. Grant funding under this subsection is limited to the lesser of five million dollars or five percent of the total construction cost of building or expanding a value-added milk processing facility in the state capable of processing at least three million pounds [1360777 kilograms] of milk each year.
    2. Grant funding under the program is a reimbursement for infrastructure, site acquisition, or other capital expenditures necessary for the value-added milk processing facility construction, including natural gas supply, electricity supply, roads, water lines, wastewater lines, storm water conveyance, or rail lines.
    3. Upon achieving one hundred percent of the processing capacity of the value-added milk processing facility, the agriculture commissioner shall distribute the grant award from funding available in the agriculture diversification and development fund.
  6. The agriculture diversification and development committee may use funding available in the agriculture diversification and development fund for in-state travel, per diem, and related costs of administering grants under this section. The agriculture commissioner may reimburse agriculture diversification and development committee members for in-state travel, per diem, and related costs incurred associated with the program as authorized under subsection 2 of section 4.1-01.1-08.
  7. The agricultural diversification and development committee shall develop a value- added agriculture production facility incentive program to provide grants. Grant award funding for the value-added agriculture production facility incentive program under this subsection is limited to thirty million dollars.
    1. To be eligible for a grant award under the value-added agriculture production facility incentive program, the production facility must:
      1. Be located within the state;
      2. Be a new construction project on an industrial-ready site with access to existing municipal infrastructure;
      3. Have capital investment of at least three hundred fifty million dollars and leverage regional agricultural producer capital investment to support the facility's operations;
      4. Have a competing offer from at least one other midwestern state;
      5. Produce a new agriculture product or variant of an existing agriculture product to provide a domestic supply of the product and to diversify the market for agriculture products; and
      6. Have an estimated economic contribution of at least twenty million dollars when fully operational based on an economic analysis conducted by the Bank.
    2. Grant funding under the program is a reimbursement for infrastructure, site acquisition, or other capital expenditures necessary for the value-added agriculture facility construction, including natural gas supply, electricity supply, roads, water lines, wastewater lines, storm water conveyance, or rail lines.
    3. Upon issuance of a certificate of occupancy for the value-added agriculture production facility, the agriculture commissioner shall distribute a grant equal to fifty percent of the total grant award from funding available in the agriculture diversification and development fund.
    4. Upon achieving fifty percent of the production capacity of the value-added agriculture production facility, the agriculture commissioner shall distribute the remainder of the grant award from funding available in the agriculture diversification and development fund.
    5. The Bank of North Dakota may extend a line of credit of up to thirty million dollars to the agriculture commissioner to support a grant from the fund under this subsection. The interest rate associated with the line of credit must be the prevailing interest rate charged to North Dakota governmental entities.
    6. If the agriculture diversification and development committee approves a grant under this subsection, the agriculture commissioner may access the line of credit under this subsection through June 30, 2029, to provide funding for the grant. Any moneys borrowed from the Bank pursuant to this subsection must be transferred to the fund. If the agriculture commissioner accesses the line of credit, the commissioner shall request from the legislative assembly a deficiency appropriation to repay the line of credit.

Agriculture diversification and development fund - Continuing appropriation. (Effective after June 30, 2029)
  1. There is created in the state treasury the agriculture diversification and development fund. The fund consists of all moneys transferred to the fund by the legislative assembly, interest upon moneys in the fund, and payments of interest and principal on loans made from the fund. Moneys in the fund are appropriated to the Bank of North Dakota on a continuing basis for loan disbursements and administrative costs pursuant to this section, and moneys in the fund are appropriated to the agriculture commissioner on a continuing basis for grants pursuant to this section and section 4.1-01-27. The agriculture diversification and development committee shall designate the amount available from the fund for loans, interest rate buydowns, and grants.
  2. Loans, interest rate buydowns, or grants under subsections 3 and 4 may be issued from the fund to support new or expanding value-added agriculture businesses that demonstrate financial feasibility, enhance profitability for farmers and ranchers, create jobs, and grow the state's economy. Grants under section 4.1-01-27 may be issued from the fund for infrastructure improvements necessary for the development or expansion of new or existing value-added agriculture businesses. Value-added agriculture businesses include food production or processing facilities; feed or pet food processing facilities; commodity processing facilities; agriculture product manufacturers; and animal agriculture production facilities, including swine, poultry, dairy, and feed lot production facilities.
  3. The Bank of North Dakota shall develop policies for loans and interest rate buydowns from the fund in consultation with the agriculture diversification and development committee. The Bank shall review loan applications. To be eligible for a loan under this section, an entity shall agree to provide the Bank with information as requested. The Bank may develop policies for loan participation with local financial institutions. The Bank shall deposit in the fund all principal and interest paid on the outstanding loans. The Bank may use a portion of the interest paid as a servicing fee to pay for administrative costs, which may not exceed one-half of one percent of the amount of the outstanding loans. The fund must be audited annually pursuant to section 6-09-29, and the cost of the audit must be paid from the fund.
  4. The agricultural diversification and development committee shall develop policies for grants from the fund to support new or expanding value-added agriculture businesses, including eligibility criteria, maximum grant amounts, and reporting requirements. Based on recommendations from the agricultural diversification and development committee, the agriculture commissioner shall distribute the grant funding.
  5. The agriculture diversification and development committee shall develop a value-added milk processing facility incentive program to provide grants.
    1. Grant funding under this subsection is limited to the lesser of five million dollars or five percent of the total construction cost of building or expanding a value-added milk processing facility in the state capable of processing at least three million pounds [1360777 kilograms] of milk each year.
    2. Grant funding under the program is a reimbursement for infrastructure, site acquisition, or other capital expenditures necessary for the value-added milk processing facility construction, including natural gas supply, electricity supply, roads, water lines, wastewater lines, storm water conveyance, or rail lines.
    3. Upon achieving one hundred percent of the processing capacity of the value-added milk processing facility, the agriculture commissioner shall distribute the grant award from funding available in the agriculture diversification and development fund.
  6. The agriculture diversification and development committee may use funding available in the agriculture diversification and development fund for in-state travel, per diem, and related costs of administering grants under this section. The agriculture commissioner may reimburse agriculture diversification and development committee members for in-state travel, per diem, and related costs incurred associated with the program as authorized under subsection 2 of section 4.1-01.1-08.

4.1-01.1-08. Agriculture diversification and development committee 🗎 PDF 

  1. The agriculture diversification and development committee consists of eleven members, five of whom must be appointed by the commissioner for terms of two years each, arranged so that two terms expire in odd-numbered years and three terms expire in even-numbered years.
    1. Four of the members appointed by the commissioner must be actively engaged in farming in this state and the fifth member appointed by the commissioner must be actively engaged in agribusiness in this state.
    2. The governor shall appoint one member for a term of two years which expires in odd-numbered years.
    3. The member appointed by the governor must be actively engaged in business in this state.
    4. The remaining committee members must consist of:
      1. One representative from the independent community banks of North Dakota;
      2. One representative from the North Dakota bankers association;
      3. The commissioner of commerce or the commissioner's designee;
      4. The president of North Dakota state university or the president's designee; and
      5. The agriculture commissioner or the commissioner's designee.
    5. The committee shall elect one of its members as chairman.
  2. The agriculture diversification and development committee shall develop guidelines for the grants, including eligibility criteria and reporting requirements. The guidelines must include priority for businesses with a majority of the ownership comprised of North Dakota residents. The agriculture diversification and development committee shall review grant applications and make funding determinations. Members of the committee are entitled to be reimbursed for expenses incurred in the performance of their duties, in the same manner as other state officials are reimbursed, in accordance with sections 44-08-04 and 54-06-09. If not otherwise employed by the state of North Dakota, members of the committee are entitled to receive per diem compensation of one hundred thirty-five dollars for each day of attending meetings and performing other duties relating to official business of the committee.

4.1-01.1-09. Agriculture diversification and development fund grants program - Access to records 🗎 PDF 

  1. To the extent the agriculture diversification and development committee determines the materials or data provided under section 4.1-01.1-07 consist of trade secrets or commercial, financial, or proprietary information of individuals or entities applying for grants with the committee, materials and data submitted to, made by, or received by the committee, are not public records subject to section 44-04-18 and section 6 of article XI of the Constitution of North Dakota, and are subject to section 44-04-18.4.
  2. A person may file a request with the committee to have material designated as confidential under subsection 1. The request must contain any information required by the committee and must include at least the following:
    1. A general description of the nature of the information sought to be protected;
    2. An explanation of why the information derives independent economic value, actual or potential, from not being generally known to other persons;
    3. An explanation of why the information is not readily ascertainable by proper means of other persons;
    4. A general description of any person that may obtain economic value from disclosure or use of the information, and how the person may obtain this value; and
    5. A description of the efforts used to maintain the secrecy of the information.
  3. A request under subsection 2 is confidential. The committee shall examine the request and determine whether the information is relevant to the matter at hand and is a trade secret under the definition in section 47-25.1-01 or 44-04-18.4. If the committee determines the information is not relevant or not a trade secret, the committee shall notify the requester and the requester may ask for the return of the information and the request within ten days of the notice. If no return is sought, the information and request are public records.
  4. The names or identities of independent technical reviewers on a project or program are confidential, may not be disclosed by the committee, and are not public records subject to section 44-04-18 or section 6 of article XI of the Constitution of North Dakota.

Chapter 02 — Barley Council

4.1-02-01. Definitions 🗎 PDF 

As used in this chapter:
  1. "Barley" means all varieties of barley harvested in the state.
  2. "Council" means the North Dakota barley council.
  3. "First purchaser" means any person accepting for shipment or otherwise acquiring barley from a producer. The term includes a mortgagee, pledgee, lienor, or other person having a claim against the producer, if the actual or constructive possession of the barley is taken as partial payment or in satisfaction of the mortgage, pledge, lien, or claim.
  4. "Participating producer" means a producer that has not applied for a refund under section 4.1-02-16 during the preceding twelve months.
  5. "Producer" means any person that:
    1. Plants or causes to be planted a barley crop in which the person has an ownership interest, with the intent that upon maturity the crop will be harvested;
    2. Will have met the requirements of subdivision a during the next available growing season; or
    3. Has met the requirements of subdivision a during the immediately preceding growing season.

4.1-02-02. Barley council - Districts 🗎 PDF 

The state consists of the following five barley districts:
  1. Benson, Cavalier, Pembina, Ramsey, Towner, and Walsh Counties.
  2. Eddy, Foster, Grand Forks, Griggs, McLean, Nelson, Sheridan, Steele, Traill, and Wells Counties.
  3. Barnes, Burleigh, Cass, Dickey, Emmons, Kidder, LaMoure, Logan, McIntosh, Ransom, Richland, Sargent, and Stutsman Counties.
  4. Bottineau, McHenry, Pierce, Renville, and Rolette Counties.
  5. Adams, Billings, Bowman, Burke, Divide, Dunn, Golden Valley, Grant, Hettinger, McKenzie, Mercer, Morton, Mountrail, Oliver, Sioux, Slope, Stark, Ward, and Williams Counties.

4.1-02-03. Council - Membership - Election - Term - Appointment to fill vacancies 🗎 PDF 

  1. The council consists of one individual elected from each district established in section 4.1-02-02.
  2. Each member of the council must be a participating producer.
  3. The term of each elected member is four years and begins on April first. The terms must be staggered so that no more than two terms expire each year.
  4. If at any time during a member's term the member ceases to possess any of the qualifications provided for in this section, the member's office is deemed vacant and the council, by majority vote, shall appoint another qualified producer for the remainder of the term.
  5. An elected member of the council may not serve more than three consecutive terms. If an individual is appointed to complete a vacancy, that service is not counted as a term, for purposes of this section, unless the duration of that service exceeds one year.
  6. If a district fails to elect a district representative under section 4.1-02-05 due to the unavailability of a participating producer within the district, the vacant office must be filled on an at large basis. By a majority vote of the council, the council shall appoint a participating producer from another district to represent that district until the next election. The at large participating producer appointed to represent the district may seek re-election as the district representative from the district in which the participating producer was appointed under this section.

4.1-02-04. Election of county representative 🗎 PDF 

    1. No later than March first of the year in which the term of a council member is to expire, the extension agent for each county in that member's district shall hold a meeting of barley producers for the purpose of electing a county representative.
    2. The council shall publish notice of the meeting in the official newspaper of the county for two consecutive weeks. The last notice must be published no fewer than five nor more than ten days before the meeting.
    3. The meeting must be held within the county.
    4. During the meeting, the county extension agent shall conduct the election.
    5. Any participating producer who resides in the county may vote in the election.
    6. The county extension agent shall canvass the votes, notify the director of the North Dakota state university extension service and the council that the election has taken place, and provide to the director and the council the name and address of the newly elected county representative.
  2. Subsection 1 does not apply if the extension agent for a county, in consultation with the executive director of the county farm service agency office, determines and notifies the council that no barley producers willing to serve as county representatives reside within the county.

4.1-02-05. Election of district representative - Council member 🗎 PDF 

  1. Upon receiving the notice required by subdivision f of subsection 1 of section 4.1-02-04, the director of the North Dakota state university extension service shall call a meeting of all county representatives in the district represented by the member whose term is to expire.
  2. The director shall notify each county representative in the district of the meeting, by registered mail, at least five days before the meeting.
  3. The meeting must be held within the district.
  4. At the meeting, the county representatives shall elect one from among themselves to serve as the council member from that district.
  5. The director shall notify the governor and the council that the election has taken place and shall provide to the governor and the council the name and address of the newly elected council member.

4.1-02-06. Election costs - Responsibility 🗎 PDF 

All costs of holding county and district elections are the responsibility of the council.

4.1-02-07. Quorum 🗎 PDF 

A majority of the council's voting members constitutes a quorum for the transaction of business.

4.1-02-08. Election of chairman - Meetings 🗎 PDF 

  1. Annually, the council shall elect one member to serve as the chairman.
  2. The chairman shall call all meetings of the council and shall call a special meeting of the council within seven days when petitioned to do so by three council members.

4.1-02-09. Council members - Compensation 🗎 PDF 

Each member of the council is entitled to receive compensation in the amount established by the council, but not exceeding one hundred thirty-five dollars per day plus reimbursement for expenses as provided by law for state officers if the member is attending meetings or performing duties directed by the council.

4.1-02-10. Council - Powers 🗎 PDF 

  1. The council may:
    1. Expend moneys collected pursuant to this chapter for its administration;
    2. Employ, bond, and compensate necessary personnel;
    3. Accept gifts, grants, and donations of money, property, and services, to carry out this chapter;
    4. Contract with any person for any purpose permitted under this chapter;
    5. Sue and be sued; and
    6. Do all things necessary and proper to enforce and administer this chapter.
  2. The council may not engage in a commercial business enterprise.

4.1-02-11. Council - Duties 🗎 PDF 

  1. The council shall determine the uses to which any moneys raised under this chapter may be expended. The uses may include:
    1. The funding of research, education programs, and market development efforts; and
    2. The support of state, regional, national, and international entities that promote barley utilization.
  2. The council shall develop and disseminate information regarding the purpose of the barley assessment and ways in which the assessment benefits barley producers.

4.1-02-12. Assessment 🗎 PDF 

An assessment at the rate of thirty mills per bushel [35.24 liters] is imposed upon all barley grown in this state, delivered to this state, or sold to a first purchaser in this state. The assessment does not apply to barley grown by a producer and used by the producer as livestock feed.

4.1-02-13. Collection of assessment - Records 🗎 PDF 

  1. The first purchaser shall collect the assessment from the seller by deducting the assessment from the total price of the barley being purchased by the first purchaser.
  2. The first purchaser shall keep documents regarding all purchases, sales, and shipments of barley for a period of three years. The first purchaser shall make these records available to the council for examination at all reasonable times.
  3. No later than thirty days after the conclusion of each calendar quarter, each first purchaser shall file with the council a report stating the quantity of all barley received, sold, or shipped by the first purchaser.

4.1-02-14. Submission of assessments - Civil penalty 🗎 PDF 

  1. The first purchaser shall forward to the council all assessments collected by the first purchaser within thirty days after the conclusion of each calendar quarter.
  2. If a first purchaser fails to submit the assessments as required by this section, the council may impose a penalty equal to ten percent of the amount due, plus interest at the rate of six percent per annum from the due date.

4.1-02-15. Out-of-state sale - Submission of assessment by producer - Civil penalty 🗎 PDF 

  1. If a producer sells barley to a first purchaser located outside this state and if the first purchaser has not contracted with the barley council to collect and remit assessments in accordance with this chapter, the producer shall determine the assessment due and shall submit that amount to the council within thirty days after the conclusion of the calendar quarter. The producer shall keep a record of the transaction for a period of three years and shall make the record available to the council for examination upon request.
  2. If a producer fails to submit an assessment as required by this section, the council may impose a penalty equal to ten percent of the amount due, plus interest at the rate of six percent per annum from the due date.

4.1-02-16. Refund of assessment 🗎 PDF 

  1. To receive a refund of any assessment paid in accordance with this chapter, a producer shall submit to the council a written request for a refund application within sixty days after the date of the assessment or final settlement.
  2. The producer shall complete the refund application and return the application to the council, together with a record of the assessment collected, within ninety days after the date of the assessment or final settlement. The council shall then refund the net amount of the assessment that had been collected.
  3. If a request for a refund is not submitted to the council within the prescribed time period, the producer is presumed to have agreed to the assessment.
  4. A producer is not entitled to a refund under this section unless the refundable amount meets or exceeds five dollars.

4.1-02-17. Reimbursement for double payments 🗎 PDF 

Notwithstanding section 4.1-02-16, if a producer documents to the council that the producer has paid the assessment more than once on the same barley, the council shall reimburse the producer for the double payment.

4.1-02-18. Expenditure of funds 🗎 PDF 

The council shall approve all expenditures made pursuant to this chapter and shall submit an itemized voucher to the office of management and budget for payment.

4.1-02-19. Continuing appropriation 🗎 PDF 

The council shall forward all moneys received under this chapter to the state treasurer for deposit in the barley fund. All moneys in the barley fund are appropriated on a continuing basis to the council to carry out this chapter.

4.1-02-20. Advisory referendum 🗎 PDF 

    1. When petitioned to do so by at least fifteen percent of the participating producers, the council shall conduct a referendum among the participating producers of the state to determine the amount by which the assessment imposed by this chapter should be raised or lowered.
    2. To be considered a valid petition, no more than fifty percent of the participating producers who signed the petition may reside in one district.
  2. The council shall prepare the ballots and mail the ballots to each participating producer at least thirty days before the last date for filing ballots.
  3. Each ballot must include a statement indicating:
    1. The date on which the petition was filed and the number of signatures on the petition;
    2. The date, time, and location at which the council will open and tabulate the ballots;
    3. The last date by which the ballots must be postmarked or filed with the council; and
    4. That any participating producer may be present at the time the ballots are opened and tabulated.
  4. The date selected by the council for the opening and tabulation of ballots must be at least five days after the date by which ballots must be postmarked or filed with the council.
  5. If a majority of the participating producers voting upon the question are in favor of the proposed change, the council shall submit a bill to the next legislative assembly to amend this chapter.

4.1-02-21. Penalty 🗎 PDF 

Any person willfully violating this chapter is guilty of a class B misdemeanor.

Chapter 03 — Beef Commission

4.1-03-01. Definitions 🗎 PDF 

As used in this chapter:
  1. "Beef producer" means any person that has an ownership interest in cattle.
  2. "Cattle" means live domesticated bovine animals.
  3. "Cattle feeder" means a person in the business of feeding cattle for the purpose of adding weight to the cattle prior to slaughter.
  4. "Commission" means the North Dakota beef commission.
  5. "Dairy producer" means any person in the business of producing and selling milk from cows.
  6. "Livestock auction market" means a public market or private buying station in which livestock is offered for sale or sold.
  7. "Livestock dealer" means a person that purchases cattle and is required to be licensed under chapter 36-04.
  8. "Participating producer" means a producer that has not obtained a refund of any assessment paid on the sale of cattle under this chapter for the preceding three years.

4.1-03-02. North Dakota beef commission - Membership - Qualifications 🗎 PDF 

  1. The North Dakota beef commission consists of:
    1. Three beef producers;
    2. One cattle feeder;
    3. One dairy producer;
    4. One representative of a public livestock market; and
    5. Three at-large representatives.
  2. The governor shall appoint:
    1. Each beef producer from a list of at least two names submitted by the North Dakota stockmen's association;
    2. The cattle feeder from a list of at least two names submitted by the North Dakota stockmen's association feeder council;
    3. The dairy producer from a list of at least two names submitted by the milk producers association of North Dakota;
    4. The representative of a public livestock market from a list of at least two names submitted by the North Dakota livestock marketing association; and
    5. The three at-large representatives.
    1. Each member of the commission must:
      1. Be a United States citizen and a resident of this state;
      2. Be actively engaged in that phase of the cattle industry the member represents; and
      3. Have been actively engaged in that phase of the cattle industry for a period of five years.
    2. Each member of the commission, except the representative of a public livestock market, must be a participating producer.
    3. For purposes of this subsection, "actively engaged" means that the individual:
      1. Has an ownership interest in an operation that is of sufficient scope and significance as to constitute a distinct activity; and
      2. Has and regularly exercises direct control of the operation.

4.1-03-03. Term of office 🗎 PDF 

  1. The term of office for each member is three years and begins on July first. The terms must be staggered so that no more than three terms expire each year.
  2. A member of the commission may not serve more than two consecutive terms. If an individual is appointed after August 1, 2009, to complete a vacancy, that service is not counted as a term, for purposes of this section, unless the duration of that service exceeds one year.

4.1-03-04. Vacancy 🗎 PDF 

If a member's office is vacant, the position must be filled, for the remainder of the term, in the same manner as the original appointment. A member's office is vacant if:
  1. At any time during a member's term the member ceases to possess any of the qualifications provided for in this chapter;
  2. Any event enumerated in section 44-02-01 occurs; or
  3. The commission determines that a member has failed to attend three consecutive meetings of the commission without justification.

4.1-03-05. Nonvoting members - Appointment 🗎 PDF 

The commission may appoint up to four nonvoting members. The term of office for a member appointed under this section is one year. The number of terms that may be served by a member under this section is not limited. The commission shall adopt policies governing the appointments and qualifications of nonvoting members.

4.1-03-06. Quorum 🗎 PDF 

A majority of the commission's voting members constitutes a quorum for the transaction of business.

4.1-03-07. Chairman - Meetings 🗎 PDF 

  1. Annually, the commission shall elect one member to serve as the chairman.
  2. The chairman shall call all meetings of the commission and shall call a special meeting within seven days when petitioned to do so by three voting members of the commission.
  3. The commission shall hold at least three regular meetings each year.

4.1-03-08. Commission members - Compensation 🗎 PDF 

Each member of the commission is entitled to receive compensation in the amount established by the commission, but not exceeding one hundred thirty-five dollars per day plus reimbursement for expenses as provided by law for state officers if the member is attending meetings or performing duties as directed by the commission.

4.1-03-09. Commission - Powers 🗎 PDF 

The commission may:
  1. Expend moneys collected pursuant to this chapter for its administration;
  2. Employ, bond, and compensate necessary personnel;
  3. Accept gifts, grants, and donations of money, property, and services to carry out this chapter;
  4. Contract with any person for any purpose related to this chapter;
  5. Borrow money, provided the total of all the commission's debt may not exceed its estimate of the current year's revenues;
  6. Sue and be sued; and
  7. Do all things necessary and proper to enforce and administer this chapter.

4.1-03-10. Commission - Duties 🗎 PDF 

The commission shall:
  1. Establish and maintain an office centrally located within this state;
  2. Keep accurate records of all assessments and other financial transactions under this chapter; and
  3. Determine the uses to which any moneys raised under this chapter may be expended. The uses may include the funding of research, education programs, and market development efforts, as well as participation in programs under the auspices of state, regional, national, and international organizations.

4.1-03-11. Assessment - Penalty. (Contingent expiration date - See note) 🗎 PDF 

    1. Any person who sells cattle in this state or from this state must pay an assessment equal to the amount set forth in federal law.
    2. In addition to the assessment required in subdivision a, any person who sells cattle in this state or from this state must pay an assessment equal to one dollar for each animal sold.
  2. The assessment provided for in subsection 1 does not apply to cattle owned by a person who certifies to the commission, on forms provided by the commission, that:
    1. The person's only share in the proceeds of a sale is a sales commission, handling fee, or other service fee; or
      1. The person acquired ownership of the cattle to facilitate the transfer of ownership to a third party;
      2. The person resold the cattle within ten days from the date on which the person acquired ownership; and
      3. Any assessment that was levied upon the prior owner has been collected and remitted or will be remitted in a timely fashion.
  3. Any person willfully providing false or misleading information to the commission under this section is guilty of a class B misdemeanor.

4.1-03-12. Collection of assessment 🗎 PDF 

  1. Each livestock auction market and livestock dealer shall:
    1. Collect the assessments due under this chapter by deducting the assessments from any credit given or payment made to the seller of the cattle, at the time of the transaction; and
    2. Forward the assessments to the commission in accordance with section 4.1-03-13.
    1. If a person sells North Dakota cattle outside this state or if a person sells North Dakota cattle to an out-of-state buyer, the person shall forward any assessments due under this chapter to the commission in accordance with section 4.1-03-13.
    2. This subsection does not apply if the assessment has been paid to a brand inspector in another state or to another qualified state beef council.
  3. Any other person selling cattle in this state shall forward any assessments due under this chapter to the commission in accordance with section 4.1-03-13.

4.1-03-13. Submission of assessments - Penalty 🗎 PDF 

  1. Any person required to forward assessments to the commission in accordance with section 4.1-03-12 shall do so no later than the fifteenth day of the month following that in which the cattle were sold.
  2. Any unpaid assessments due pursuant to this chapter must be increased by two percent on the sixteenth day of each month.
  3. Any person who fails to forward assessments as required by this chapter within thirty days following the month in which the cattle were sold is guilty of a class B misdemeanor.
  4. For purposes of this section, an assessment is deemed to have been forwarded to the commission:
    1. On the date of its postmark if mailed;
    2. On the date of its verified shipment if sent by courier; or
    3. On the date of its receipt by the commission if delivered personally or electronically.

4.1-03-14. Transaction records - Inspection by commission 🗎 PDF 

  1. Any person required to collect or submit an assessment under this chapter shall keep a record of:
    1. The number of cattle:
      1. Purchased;
      2. Initially transferred; and
      3. Otherwise subject to assessment under this chapter;
    2. The date of any transaction involving cattle referenced in subdivision a;
    3. The name of the person who sold the cattle;
    4. The number of cattle imported or the equivalent of beef or beef products;
    5. The amount of any assessment forwarded;
    6. The reason for any discrepancy between the amount forwarded and the dollar amount obtained when multiplying the number of cattle referenced in subdivision a by the per head assessment; and
    7. The date on which any assessment was paid.
  2. All records required by this section and any records required to verify other information provided to the commission in accordance with this chapter must be:
    1. Maintained for a period of at least three years; and
    2. Made available for inspection by the commission upon request.

4.1-03-15. Authorization to request records - Penalty 🗎 PDF 

  1. The commission may require the purchaser of cattle subject to assessment under this chapter to furnish the commission with a list of persons from whom cattle were purchased.
  2. Any person knowingly refusing to furnish the commission with required information is guilty of a class B misdemeanor.

4.1-03-16. Continuing appropriation 🗎 PDF 

The commission shall forward all moneys received under this chapter to the state treasurer for deposit in the North Dakota beef commission fund. All moneys in the North Dakota beef commission fund are appropriated on a continuing basis to the commission to be used exclusively to carry out this chapter.

4.1-03-17. Permitted refunds of assessment - Refunds requiring certification by attorney general 🗎 PDF 

    1. When the attorney general certifies to the commission that refunds of assessments paid under subdivision a of subsection 1 of section 4.1-03-11 are no longer precluded by federal law, the commission may provide to producers refunds of assessments paid under subdivision a of subsection 1 of section 4.1-03-11.
    2. Refunds of assessments paid under subdivision b of subsection 1 of section 4.1-03-11 are available, subject to the requirements of this section.
    1. To receive a permitted refund of any assessment paid in accordance with this chapter, a producer shall request a refund application from the commission within sixty days after the date of the sale. The request may be made orally, in writing, or in electronic form.
    2. The producer must complete the refund application and return the application to the commission, together with a record of the assessment paid, within ninety days after the date of the sale. The application may be returned to the commission in person, by mail, or in electronic form. The commission shall then refund the net amount of the assessment that had been collected.
    3. If a request for a refund is not submitted to the commission within the prescribed time period, the producer is presumed to have agreed to the assessment.

4.1-03-18. Open records exceptions 🗎 PDF 

  1. The following are not public records subject to section 44-04-18 and section 6 of article XI of the Constitution of North Dakota:
    1. Records furnished to the commission pursuant to section 4.1-03-14;
    2. Records furnished to the commission pursuant to section 4.1-03-15; and
    3. The identity of a person that applied for a refund under section 4.1-03-17 and the amount of the refund requested.
  2. This section does not preclude the commission from:
    1. Issuing general statements based upon the reports of persons subject to this chapter; or
    2. Publishing the name of any person found guilty of violating this chapter and describing the offense committed.

Chapter 04 — Corn Utilization Council

4.1-04-01. Definitions 🗎 PDF 

As used in this chapter:
  1. "Commissioner" means the agriculture commissioner or the commissioner's designee.
  2. "Corn" means all varieties of corn, except sweet corn and popcorn.
  3. "Council" means the North Dakota corn utilization council.
  4. "Designated handler" means:
    1. Any public warehouse, licensed grain buyer, roving grain buyer, processing plant, merchandising company, or ethanol plant that purchases corn from a producer; and
    2. Any person having a claim against the producer if the actual or constructive possession of the corn is taken as security, partial payment, or in satisfaction of a mortgage, pledge, lien, or claim.
  5. "Producer" means any person that:
    1. Plants or causes to be planted a corn crop in which the person has an ownership interest, with the intent that upon maturity the crop will be harvested;
    2. Will have met the requirements of subdivision a during the next available growing season; or
    3. Has met the requirements of subdivision a during the immediately preceding growing season.

4.1-04-02. Corn districts - Establishment 🗎 PDF 

The state consists of the following seven corn districts:
  1. Richland County;
  2. Cass, Steele, and Traill Counties;
  3. Benson, Bottineau, Burke, Cavalier, Divide, Grand Forks, McHenry, Mountrail, Nelson, Pembina, Pierce, Ramsey, Renville, Rolette, Towner, Walsh, Ward, and Williams Counties;
  4. Barnes, Eddy, Foster, Griggs, and Stutsman Counties;
  5. Sargent and Ransom Counties;
  6. Dickey and LaMoure Counties; and
  7. All remaining counties in which corn is grown.

4.1-04-03. Corn council - Membership - Term 🗎 PDF 

  1. The council consists of one producer elected from each of the seven districts established in section 4.1-04-02.
  2. Each member of the council must be a resident of the district that the member represents.
  3. A member of the council may not have requested a refund under section 4.1-04-13 during the preceding year.
  4. The term of each member is four years and begins on April first following the member's election. The terms must be staggered so that no more than two expire each year.
  5. If at any time during a member's term the member ceases to possess any of the qualifications provided for in this chapter, the member's office is deemed vacant and the council, by majority vote, shall appoint another qualified producer for the remainder of the term.
  6. An elected member of the council may not serve more than two consecutive terms.
  7. If an individual is appointed to complete a vacancy, that service is not counted as a term for purposes of this section unless the duration of that service exceeds one year.

4.1-04-04. Election of county representative 🗎 PDF 

    1. No later than March first of the year in which the term of a council member is to expire, the extension agent for each county in that member's district shall hold a meeting of corn producers for the purpose of electing a county representative.
    2. The council shall publish notice of the meeting in the official newspaper of the county for two consecutive weeks. The last notice must be published no fewer than five nor more than ten days before the meeting.
    3. The meeting must be held within the county.
    4. During the meeting, the county extension agent shall conduct the election.
    5. Any producer who resides in the county and who did not request a refund during the preceding year may vote in the election.
    6. The county extension agent shall canvass the votes, notify the director of the North Dakota state university extension service and the council that the election has taken place, and provide to the director and the council the name and address of the newly elected county representative.
  2. Subsection 1 does not apply if the extension agent for a county, in consultation with the executive director of the county farm service agency office, determines and notifies the council that no corn producers willing to serve as county representatives reside within the county.

4.1-04-04.1. Election of district representative - Council members 🗎 PDF 

  1. Upon receiving the notice required by subdivision f of subsection 1 of section 4.1-04-04, the director of the North Dakota state university extension service shall call a meeting of all county representatives in the district represented by the member whose term is to expire.
  2. The director shall notify each county representative in the district of the meeting, by registered mail, at least five days before the meeting.
  3. The meeting must be held within the district.
  4. At the meeting, the county representatives shall elect one from among themselves to serve as the council member from that district.
  5. The director shall notify the governor and the council that the election has taken place and shall provide to the governor and the council the name and address of the newly elected council member.

4.1-04-05. Election costs - Responsibility 🗎 PDF 

All costs of holding an election are the responsibility of the council.

4.1-04-06. Meetings 🗎 PDF 

  1. Annually, the council shall elect one member to serve as the chairman.
  2. The chairman shall call all meetings of the council and shall call a special meeting of the council within seven days when petitioned to do so by three council members.

4.1-04-07. Council members - Compensation 🗎 PDF 

Each member of the council is entitled to receive compensation in the amount established by the council but not exceeding one hundred thirty-five dollars per day plus reimbursement for expenses as provided by law for state officials if the member is attending meetings or performing duties directed by the council.

4.1-04-08. Council - Powers 🗎 PDF 

The council may:
  1. Expend moneys collected pursuant to this chapter for its administration;
  2. Employ, bond, and compensate necessary personnel;
  3. Accept gifts, grants, and donations of money, property, and services to carry out this chapter;
  4. Contract with any person for any purpose related to this chapter, including research, education, publicity, promotion, and transportation;
  5. Establish a grant program and guidelines to provide funding to corn-related programs and organizations that benefit North Dakota corn producers, consistent with this chapter;
  6. Sue and be sued; and
  7. Do all things necessary and proper to enforce and administer this chapter.

4.1-04-09. Council - Duties 🗎 PDF 

  1. The council shall determine the uses for which any moneys raised under this chapter may be expended. The uses may include the funding of research, education programs, corn policy development, promotion, and market development efforts, as well as participation in programs under the auspices of other state, regional, national, and international promotion groups.
  2. The council shall develop and disseminate information regarding the purpose of the corn assessment and ways in which the assessment benefits corn producers.
  3. The council shall hold two public input meetings per year with organizations dedicated to serving North Dakota corn producers to discuss recommendations for the use of moneys received under this chapter.

4.1-04-10. Assessment 🗎 PDF 

Until the commissioner certifies that a national corn checkoff is in effect, an assessment at the rate of one-quarter of one percent of the value of a bushel must be imposed upon all corn purchased by the first designated handler in this state.

4.1-04-11. Collection of assessment - Records 🗎 PDF 

  1. A designated handler shall collect the assessment from the producer by deducting the assessment from the purchase price of the corn.
  2. Each designated handler shall keep documents regarding all purchases, sales, and shipments of corn for a period of three years. The records may be examined by the council upon request.
  3. At the time and in the manner prescribed by the council, each designated handler shall file a report with the council. The report must state, in individual and total amounts, the quantity of all corn that the designated handler received, sold, or shipped, and the source of all corn that the designated handler received, sold, or shipped.

4.1-04-12. Submission of assessment by producer - Civil penalty 🗎 PDF 

  1. If a producer sells corn to a person that is not a designated handler, the producer shall forward the assessment to the council within thirty days after the end of each calendar quarter.
  2. If a producer fails to submit the assessments as required by this section, the council may levy a penalty equal to ten percent of the assessment due, plus interest at the rate of twelve percent per annum from the due date.

4.1-04-13. Refund of assessment - Form 🗎 PDF 

  1. To receive a refund of any assessment paid in accordance with this chapter, a producer shall submit to the council a written request for a refund application within sixty days after the date of the assessment or final settlement.
  2. The producer shall complete the refund application and return the application to the council, together with a record of the assessment collected, within ninety days after the date of the assessment or final settlement. The council shall then refund to the producer the net amount of the assessment that had been collected from the producer.
  3. If a request for a refund is not submitted to the council within the prescribed time period, the producer is presumed to have agreed to the assessment.
  4. A producer is not entitled to a refund under this section unless the refundable amount meets or exceeds five dollars.

4.1-04-14. Reimbursement for double payments 🗎 PDF 

Notwithstanding section 4.1-04-13, if a producer documents to the council that the producer has paid the assessment more than once on the same corn, the council shall reimburse the producer for the double payment.

4.1-04-15. Submission of assessments - Civil penalty 🗎 PDF 

  1. Each designated handler shall forward to the council all assessments collected by the designated handler within thirty days after the end of each calendar quarter.
  2. If a designated handler fails to submit the assessments as required by this section, the council may levy a penalty equal to ten percent of the assessment due, plus interest at the rate of twelve percent per annum from the due date.

4.1-04-16. Expenditures - Approval - Records 🗎 PDF 

The council shall approve all expenditures made pursuant to this chapter. The expenditures must be recorded on itemized vouchers and the records must be maintained as directed by the state records administrator.

4.1-04-17. Continuing appropriation 🗎 PDF 

The council shall forward all moneys received under this chapter to the state treasurer for deposit in the corn fund. All moneys in the corn fund are appropriated on a continuing basis to the council to be used exclusively to carry out this chapter.

4.1-04-18. Advisory referendum 🗎 PDF 

    1. When petitioned to do so by fifteen percent of the producers, the council shall conduct a referendum among the producers of the state to determine the amount by which the assessment imposed by this chapter should be raised or lowered.
    2. To be considered a valid petition, no more than fifty percent of the producers who signed the petition may reside in one district.
  2. The council shall determine the date on which in-person voting will take place.
  3. The council shall prepare the ballots and make the ballots available to producers at each county extension office in the state.
  4. Each ballot must include a statement indicating:
    1. The date, time, and location at which the council will open and tabulate the ballots; and
    2. That any producer may be present at the time the ballots are opened and tabulated.
    1. Beginning no sooner than thirty days before the date established for in-person voting in accordance with subsection 2, the council also shall provide absentee ballots upon request to producers who expect to be absent from their county of residence on the date established for in-person voting in accordance with subsection 2.
    2. The council shall include with each absentee ballot requested a form indicating that the producer is eligible to participate in the referendum. The form must be signed by the absentee producer and returned with the absentee ballot.
    3. In order to be counted, an absentee ballot and the voter's statement of eligibility must be received by the council at least forty-eight hours before the time at which the council stated it would open and tabulate ballots.
  6. If a majority of the producers voting upon the question are in favor of the proposed change, the council shall submit proposed legislation to the next regular session of the legislative assembly to amend this chapter.

4.1-04-19. Penalty 🗎 PDF 

Any person willfully violating this chapter is guilty of a class B misdemeanor.

Chapter 05 — Dairy Promotion Commission

4.1-05-01. Definitions 🗎 PDF 

As used in this chapter:
  1. "Commission" means the North Dakota dairy promotion commission.
  2. "Dairy product" means a product for human consumption which is derived from the processing of milk from a healthy four-legged hooved mammal. The term includes a milk product normally consumed in liquid form as a beverage.
  3. "Dealer" means any person that handles, ships, buys, or sells dairy products, or who acts as a sales or purchasing agent, broker, or factor of dairy products.
  4. "Gross receipts" means the amount paid to a producer for milk or for a product derived from milk and sold by such producer.
  5. "Milk" means the lacteal secretion, practically free of colostrum, obtained by the complete milking of a healthy hooved mammal, including any member of the order Cetartiodactyla and including a member of the family:
    1. Bovidae, including cattle, water buffalo, sheep, goats, and yaks;
    2. Cervidae, including deer, reindeer, and moose;
    3. Equidae, including horses and donkeys; and
    4. Camelidae, including llamas, alpacas, and camels.
  6. "Processor" means a person that takes delivery of milk or cream and then:
    1. Cans, dries, prepares, or packages the milk or cream; or
    2. Produces another product from the milk or cream.
  7. "Producer" means a person engaged in the production of milk from a four-legged mammal for commercial use.

4.1-05-02. North Dakota dairy promotion commission - Membership - Terms 🗎 PDF 

  1. The North Dakota dairy promotion commission consists of the following voting members:
    1. Two producers appointed by the governor from a list of nominees submitted by the milk producers association of North Dakota;
    2. The chairman of the North Dakota division of the midwest dairy association; and
    3. Two individuals who are members of and elected by the North Dakota division of the midwest dairy association.
    1. The term of each producer appointed by the governor is two years and must be staggered so that the term of only one producer expires each year.
    2. The term of each individual who is a member of and elected by the North Dakota division of the midwest dairy association is two years and must be staggered so that the term of only one individual expires each year.
  3. Each term of office begins July first.
  4. Whenever an association is required by subsection 1 to submit nominees to the governor, that association shall submit at least two nominees for each position to be filled.

4.1-05-03. Nonvoting members - Appointment 🗎 PDF 

The commission may appoint up to four nonvoting members. The commission shall adopt policies governing the appointments and qualifications of nonvoting members.

4.1-05-04. Election of chairman and officers - Meetings 🗎 PDF 

  1. Annually, the commission shall elect one member to serve as the chairman.
  2. The chairman shall call all meetings of the commission and shall call a special meeting of the commission within seven days when petitioned to do so by three commission members.
  3. Annually, the commission shall elect other officers, including a vice chairman and a secretary-treasurer.

4.1-05-05. Commission members - Compensation 🗎 PDF 

Each member of the commission is entitled to receive compensation, in the amount established by the commission, but not exceeding one hundred thirty-five dollars per day plus reimbursement for expenses as provided by law for state officers if the member is attending meetings or performing duties directed by the commission. The compensation provided for in this section may not be paid to any member of the commission who receives a salary or other compensation as an employee or official of this state if the individual is serving on the commission by virtue of the individual's state office or state employment.

4.1-05-06. Commission - Powers 🗎 PDF 

The commission may:
  1. Expend moneys collected pursuant to this chapter for its administration;
  2. Employ, bond, and compensate necessary personnel;
  3. Accept gifts, grants, and donations of money, property, and services, to carry out this chapter;
  4. Contract with any person for any purpose permitted under this chapter;
  5. Sue and be sued; and
  6. Do all things necessary and proper to enforce and administer this chapter.

4.1-05-07. Commission - Duties 🗎 PDF 

The commission shall determine the uses to which any moneys raised under this chapter may be expended. The uses may include the funding of research, education programs, and market development efforts, to promote the increased sale and consumption of dairy products, as well as participation in programs under the auspices of state, regional, national, and international dairy promotion groups.

4.1-05-08. Assessment - Collection 🗎 PDF 

  1. Each producer must pay an assessment of ten cents per hundredweight [45.36 kilograms] on all milk sold by the producer and on any milk used by the producer to manufacture other products.
  2. All assessments imposed by this section:
    1. Must be collected by the first dealer or processor by deducting the amount of the assessment from the producer's gross receipts; or
    2. Are payable by the producer upon sale of the milk products by the producer directly to the consumer.

4.1-05-09. Submission of assessments - Civil penalty 🗎 PDF 

  1. Any person in possession of assessments required by this section shall forward the assessments to the commission on or before the final day of the month following the month in which the milk or milk products were marketed.
  2. If a person fails to submit the assessments imposed by this chapter to the commission as required by this section, the commission may assess a one-time penalty equal to one and one-half percent of the amount of the assessment.

4.1-05-10. Record retention 🗎 PDF 

Any person responsible for the collection and submission of assessments under this chapter shall keep a record of all gross receipts subject to the assessment. These records must be retained for a period of three years from the date of the transaction and are subject to inspection by the commission.

4.1-05-11. Reports 🗎 PDF 

  1. Any person required by section 4.1-05-10 to keep a record shall:
    1. Submit to the commission a form indicating:
      1. The amount of milk that was subject to the assessment during the preceding month; and
      2. Any other information that the commission requests; and
    2. Retain a copy of the form for a period of three years from the date of the submission.
  2. Any dealer or processor required to submit a form under this section shall make the form available upon request to any producer who sold milk to the dealer or processor.

4.1-05-12. Refund of assessment - Required certification by attorney general 🗎 PDF 

  1. When the attorney general certifies to the commission that refunds of assessments paid in accordance with this chapter are no longer precluded by the Dairy Research and Promotion Act [7 U.S.C. 4501 et seq.] or by any other applicable law, the commission may provide refunds to producers.
    1. To receive a refund of any assessment paid in accordance with this chapter, a producer shall submit to the commission a written request for refund application within sixty days after the date of the assessment or final settlement.
    2. The producer shall complete the refund application and return the application to the commission, together with a record of the assessment paid, within ninety days after the date of the assessment or final settlement. The commission shall then refund the net amount of the assessment that had been collected.
    3. If a request for a refund is not submitted to the commission within the prescribed time period, the producer is presumed to have agreed to the assessment.

4.1-05-13. Expenditure of funds 🗎 PDF 

The commission shall approve all expenditures made pursuant to this chapter and shall submit an itemized voucher to the office of management and budget for payment.

4.1-05-14. Continuing appropriation 🗎 PDF 

The commission shall forward all moneys received under this chapter to the state treasurer for deposit in the North Dakota dairy promotion commission fund. All moneys in the North Dakota dairy promotion commission fund are appropriated on a continuing basis to the commission to be used exclusively to carry out this chapter.

4.1-05-15. Penalty 🗎 PDF 

Any person willfully violating this chapter is guilty of a class B misdemeanor.

Chapter 06 — Dry Bean Council

4.1-06-01. Definitions 🗎 PDF 

As used in this chapter:
  1. "Commissioner" means the agriculture commissioner or the commissioner's designee.
  2. "Council" means the North Dakota dry bean council.
  3. "Designated handler" means any person that initially places dry beans into the channels of trade and commerce or any person that is engaged in the processing of beans into food for human consumption. The term does not include a producer selling the producer's unharvested dry beans or delivering the producer's dry beans from the farm on which they are produced to storage facilities, packing sheds, or processing plants within the state.
  4. "Dry beans" mean all varieties of dry beans harvested in this state. The term does not include soybeans.
  5. "Participating producer" means a producer that has not applied for a refund under section 4.1-06-15 during the preceding twelve months.
  6. "Producer" means any person that:
    1. Plants or causes to be planted a dry bean crop in which the person has an ownership interest, with the intent that upon maturity the crop will be harvested;
    2. Will have met the requirements of subdivision a during the next available growing season; or
    3. Has met the requirements of subdivision a during the immediately preceding growing season.

4.1-06-02. Dry bean districts - Establishment 🗎 PDF 

The state consists of the following six dry bean districts:
  1. Cavalier, Pembina, and Towner Counties.
  2. Ramsey and Walsh Counties.
  3. Grand Forks and Nelson Counties.
  4. Griggs, Steele, and Traill Counties.
  5. Barnes, Cass, Dickey, Kidder, LaMoure, Logan, McIntosh, Ransom, Richland, Sargent, and Stutsman Counties.
  6. Adams, Benson, Billings, Bottineau, Bowman, Burke, Burleigh, Divide, Dunn, Eddy, Emmons, Foster, Golden Valley, Grant, Hettinger, McHenry, McKenzie, McLean, Mercer, Morton, Mountrail, Oliver, Pierce, Renville, Rolette, Sheridan, Sioux, Slope, Stark, Ward, Wells, and Williams Counties.

4.1-06-03. North Dakota dry bean council - Membership - Term 🗎 PDF 

  1. The council consists of one participating producer elected from each of the districts established in section 4.1-06-02.
  2. Each member of the council must be a United States citizen.
  3. Each member of the council must be a resident of and participating producer in the district that the member represents.
  4. The term of each elected member is three years and begins on May first following the member's election. The terms must be staggered so that no more than two expire each year.
  5. If at any time during a member's term the member ceases to possess any of the qualifications provided for in this chapter, the member's office is deemed vacant and the council, by majority vote, shall appoint another qualified producer for the remainder of the term.
  6. An elected member of the council may not serve more than three consecutive terms. If an individual is appointed to complete a vacancy, that service is not counted as a term, for purposes of this section, unless the duration of that service exceeds one year.

4.1-06-04. Election of council member 🗎 PDF 

  1. Each year during the month of February the commissioner shall identify the districts represented by council members whose terms are about to expire.
    1. The commissioner shall forward to each producer residing in the district a letter inviting the producer to place the producer's own name or the name of another producer into nomination for election to the council.
    2. The commissioner shall include a statement of eligibility to be completed by the producer seeking election and a nomination petition to be signed by four other producers.
  3. For a name to be placed on the ballot, the statement of eligibility and the nomination petition must be received by the council on the date specified by the commissioner which may not be later than April tenth.
  4. The commissioner shall prepare election ballots and mail the ballots to the producers in the district together with a statement indicating:
    1. The last date by which the ballots must be postmarked or filed with the council;
    2. The date, time, and location at which the council will open and tabulate the ballots; and
    3. That any participating producer may be present at the time the ballots are opened and tabulated.
  5. The date selected for the opening and tabulation of ballots must be at least five days after the date by which ballots must be postmarked or filed with the council.
  6. After the election, the council shall notify the governor that the election has taken place and shall provide to the governor the name and address of the newly elected council member.
  7. If, by April tenth or the date specified by the commissioner, the council does not receive any nomination petitions from eligible producers in districts represented by council members whose terms are about to expire, the council may appoint an eligible producer from the district to serve on the council until the seat is filled by a write-in candidate in accordance with subsection 4.

4.1-06-05. Election costs - Responsibility 🗎 PDF 

All costs of holding county and district elections are the responsibility of the council.

4.1-06-06. Quorum 🗎 PDF 

A majority of the council's voting members constitutes a quorum for the transaction of business.

4.1-06-07. Election of chairman - Meetings 🗎 PDF 

  1. Annually, the council shall elect one member to serve as the chairman.
  2. The chairman shall call all meetings of the council and shall call a special meeting of the council within seven days when petitioned to do so by three council members.

4.1-06-08. Council members - Compensation 🗎 PDF 

Each member of the council is entitled to receive compensation in the amount established by the council, but not exceeding one hundred thirty-five dollars per day plus reimbursement for expenses as provided by law for state officers if the member is attending meetings or performing duties directed by the council.

4.1-06-09. Council - Powers 🗎 PDF 

  1. The council may:
    1. Expend moneys collected pursuant to this chapter for its administration;
    2. Employ, bond, and compensate necessary personnel;
    3. Accept gifts, grants, and donations of money, property, and services, to carry out this chapter;
    4. Contract with any person for any purpose permitted under this chapter;
    5. Sue and be sued; and
    6. Do all things necessary and proper to enforce and administer this chapter.
  2. The council may not engage in a commercial business enterprise.

4.1-06-10. Council - Duties 🗎 PDF 

  1. The council shall determine the uses for which any moneys raised under this chapter may be expended. The uses may include the funding of research, education programs, and market development efforts, as well as participation in programs under the auspices of other state, regional, national, and international commodity councils.
  2. The council shall develop and disseminate information regarding the purpose of the dry bean assessment and ways in which the assessment benefits dry bean producers.

4.1-06-11. Designated handler - Certificate 🗎 PDF 

  1. Before a designated handler may sell, process, or ship dry beans, the designated handler shall obtain a certificate from the council.
  2. The certificate is available upon submission to the council of an application containing the name under which the designated handler is transacting business within this state, the designated handler's place of business, and the location of loading and shipping places of the designated handler's agents.
    1. If the designated handler is a corporation, the application must include the corporate name and the names and addresses of the principal officers and agents within this state.
    2. If the designated handler is a partnership, the application must include the names and addresses of the persons constituting the partnership.
    3. If the designated handler is a limited liability company, the application must include the name of the limited liability company and the names and addresses of its principal managers and agents within this state.
  3. The designated handler shall notify the council whenever there is a change of information required by this section.

4.1-06-12. Assessment 🗎 PDF 

  1. An assessment at the rate of ten cents per hundredweight [45.36 kilograms] must be imposed upon all dry beans grown in this state, delivered into this state, or sold to a designated handler.
  2. The assessment imposed by this section does not apply to dry bean seeds nor to dry beans used for purposes other than human consumption.

4.1-06-13. Collection of assessment - Records 🗎 PDF 

  1. The designated handler shall collect the assessment from the seller by deducting the assessment from the total price of the dry beans being purchased by the designated handler.
  2. Each designated handler shall keep documents regarding all purchases, sales, and shipments of raw dry beans for a period of three years. The records may be examined by the council upon request.
  3. At the time and in the manner prescribed by the council, each designated handler shall file a report stating, in individual and total amounts, the quantity of all dry beans that the handler received, sold, or shipped, and the source of all dry beans that the handler received, sold, or shipped.

4.1-06-14. Submission of assessments - Civil penalty 🗎 PDF 

  1. Each designated handler shall forward to the council all assessments collected by the handler no later than the thirtieth day after the end of each calendar quarter.
  2. If a designated handler fails to submit the assessments as required by this section, the council may impose a penalty equal to ten percent of the amount due, plus interest at the rate of six percent per annum from the due date.

4.1-06-15. Refund of assessment 🗎 PDF 

  1. To receive a refund of any assessment paid in accordance with this chapter, a producer shall submit to the council a written request for a refund application within sixty days after the date of the assessment or final settlement.
  2. The producer shall complete the refund application and return the application to the council, together with a record of the assessment collected, within ninety days after the date of the assessment or final settlement. The council shall then refund to the producer the net amount of the assessment that had been collected.
  3. If a request for a refund is not submitted to the council within the prescribed time period, the producer is presumed to have agreed to the assessment.
  4. A producer is not entitled to a refund under this section unless the refundable amount meets or exceeds five dollars.

4.1-06-16. Reimbursement for double payment 🗎 PDF 

Notwithstanding section 4.1-06-15, if a producer documents to the council that the producer has paid the assessment more than once on the same dry beans, the council shall reimburse the producer for the double payment.

4.1-06-17. Expenditure of funds 🗎 PDF 

The council shall approve all expenditures made pursuant to this chapter and shall submit an itemized voucher to the office of management and budget for payment.

4.1-06-18. Continuing appropriation 🗎 PDF 

The council shall forward all moneys received under this chapter to the state treasurer for deposit in the dry bean fund. All moneys in the dry bean fund are appropriated on a continuing basis to the council to be used to carry out this chapter.

4.1-06-19. Advisory referendum 🗎 PDF 

    1. When petitioned to do so by fifteen percent of the participating producers, the council shall conduct a referendum among the participating producers of the state to determine the amount by which the assessment imposed by this chapter should be raised or lowered.
    2. To be considered a valid petition, no more than fifty percent of the participating producers who signed the petition may reside in one district.
  2. The council shall prepare the ballots and mail the ballots to each participating producer at least thirty days before the last date for filing ballots.
  3. Each ballot must include a statement indicating:
    1. The date on which the petition was filed and the number of signatures on the petition;
    2. The date, time, and location at which the council will open and tabulate the ballots;
    3. The last date by which the ballots must be postmarked or filed with the council; and
    4. That any participating producer may be present at the time the ballots are opened and tabulated.
  4. The date selected by the council for the opening and tabulation of ballots must be at least five days after the date by which ballots must be postmarked or filed with the council.
  5. If the majority of the participating producers voting upon the question are in favor of the proposed change, the council shall submit a bill to the next legislative assembly to amend this chapter.

4.1-06-20. Penalty 🗎 PDF 

Any person willfully violating this chapter is guilty of a class B misdemeanor.

Chapter 07 — Dry Pea And Lentil Council

4.1-07-01. Definitions 🗎 PDF 

As used in this chapter:
  1. "Council" means the North Dakota dry pea and lentil council.
  2. "Dry peas and lentils" include chickpeas, lupins, and fava beans.
  3. "First purchaser" means any person accepting for sale or otherwise acquiring dry peas and lentils from a grower after harvest. The term includes a mortgagee, pledgee, lienor, and any person having a claim against the producer, when the actual or constructive possession of dry peas and lentils is taken as partial payment or in satisfaction of a mortgage, pledge, lien, or claim.
  4. "Participating producer" means a producer that has not applied for a refund under section 4.1-07-15 for at least three years.
  5. "Producer" means any person that:
    1. Plants or causes to be planted a dry pea and lentil crop in which the person has an ownership interest, with the intent that upon maturity the crop will be harvested; or
    2. Has planted and subsequently will plant a dry pea and lentil crop as part of the person's crop rotation within a six-year period.

4.1-07-02. Dry pea and lentil districts - Establishment 🗎 PDF 

The state consists of the following five dry pea and lentil districts:
  1. Burke, Divide, McKenzie, Mountrail, and Williams Counties.
  2. Adams, Billings, Bowman, Dunn, Golden Valley, Grant, Hettinger, Mercer, Morton, Oliver, Sioux, Slope, and Stark Counties.
  3. Benson, Bottineau, McHenry, Pierce, Renville, Rolette, Towner, and Ward Counties.
  4. Burleigh, Emmons, Kidder, Logan, McIntosh, McLean, Sheridan, and Wells Counties.
  5. Barnes, Cass, Cavalier, Dickey, Eddy, Foster, Grand Forks, Griggs, LaMoure, Nelson, Pembina, Ramsey, Ransom, Richland, Sargent, Steele, Stutsman, Traill, and Walsh Counties.

4.1-07-03. Dry pea and lentil council - Membership - Term 🗎 PDF 

  1. The council consists of one participating producer elected from each district established in section 4.1-07-02.
  2. Each member of the council must be a United States citizen.
  3. Each member of the council must be a resident of and participating producer in the district that the member represents.
  4. The term of each elected member is three years and begins on April first following the member's election. The terms must be staggered so that no more than two expire each year.
  5. If at any time during a member's term the member ceases to possess any of the qualifications provided for in this chapter, the member's office is deemed vacant and the council, by majority vote, shall appoint another qualified producer for the remainder of the term.
  6. An elected member of the council may not serve more than three consecutive terms.
  7. If an individual is appointed to complete a vacancy, that service is not counted as a term for purposes of this section unless the duration of that service exceeds one year.

4.1-07-04. Election of county representative 🗎 PDF 

    1. No later than March first of the year in which the term of a council member is to expire, the extension agent for each county in that member's district shall hold a meeting of dry pea and lentil producers for the purpose of electing a county representative.
    2. The council shall publish notice of the meeting in the official newspaper of the county for two consecutive weeks. The last notice must be published no fewer than five nor more than ten days before the meeting.
    3. The meeting must be held within the county.
    4. During the meeting the county extension agent shall conduct the election.
    5. Any producer who resides in the county may vote in the election.
    6. The county extension agent shall canvass the votes, notify the director of the North Dakota state university extension service and the council that the election has taken place, and provide to the director and the council the name and address of the newly elected county representative.
  2. Subsection 1 does not apply if the county extension agent, in consultation with the executive director of the county farm service agency office, determines and notifies the council that no dry pea and lentil producers willing to serve as county representatives reside within the county.

4.1-07-05. Election of district representative - Council member 🗎 PDF 

  1. Upon receiving the notice required by subdivision f of subsection 1 of section 4.1-07-04, the director of the North Dakota state university extension service shall call a meeting of all county representatives in the district represented by the member whose term is to expire.
  2. The director shall notify each county representative in the district of the meeting, by mail, at least five days before the meeting.
  3. The meeting must be held within the district.
  4. At the meeting, the county representatives shall elect one from among themselves to serve as the council member from that district.
  5. The director shall notify the governor and the council that the election has taken place and shall provide to the governor and the council the name and address of the newly elected council member.

4.1-07-06. Election costs - Responsibility 🗎 PDF 

All costs of holding county and district elections are the responsibility of the council.

4.1-07-07. Election of chairman - Meetings 🗎 PDF 

  1. Annually, the council shall elect one member to serve as the chairman.
  2. The chairman shall call all meetings of the council and shall call a special meeting of the council within seven days when petitioned to do so by three council members.

4.1-07-08. Council members - Compensation 🗎 PDF 

Each member of the council is entitled to receive compensation in the amount established by the council but not exceeding one hundred thirty-five dollars per day plus reimbursement for expenses as provided by law for state officers if the member is attending meetings or performing duties directed by the council.

4.1-07-09. Council - Powers 🗎 PDF 

The council may:
  1. Expend moneys collected pursuant to this chapter for its administration;
  2. Employ, bond, and compensate necessary personnel;
  3. Accept gifts, grants, and donations of money, property, and services, to carry out this chapter;
    1. Contract with the governmental entity that is responsible for administration of the dry pea and lentil assessment in another state or province and provide for:
      1. The return by that governmental entity of any assessment charged on dry peas and lentils grown in this state; and
      2. The return by the council of any assessment charged on dry peas and lentils grown in another state or province; and
    2. Contract with any person for any other purpose permitted under this chapter;
  5. Sue and be sued; and
  6. Do all things necessary and proper to enforce and administer this chapter.

4.1-07-10. Council - Duties 🗎 PDF 

  1. The council shall determine the uses to which any moneys raised under this chapter may be expended. The uses may include the funding of research, education programs, and market development efforts, as well as participation in programs under the auspices of the United States dry pea and lentil council.
  2. The council shall develop and disseminate information regarding the purpose of the dry pea and lentil assessment and ways in which the assessment benefits dry pea and lentil producers.

4.1-07-11. First purchaser - Certificate 🗎 PDF 

  1. Before a first purchaser of dry peas and lentils may sell, process, or ship any dry peas or lentils, the first purchaser shall obtain a certificate from the council.
  2. The certificate is available upon submission to the council of an application containing the name under which the first purchaser is transacting business within this state, the first purchaser's place of business, and the location of loading and shipping places of the first purchaser's agents.
    1. If the first purchaser is a corporation, the application must include the corporate name and the names and addresses of the principal officers and agents within this state.
    2. If the first purchaser is a partnership, the application must include the name of the partnership and the names and addresses of the persons constituting the partnership.
    3. If the first purchaser is a limited liability company, the application must include the name of the limited liability company and the names and addresses of its principal managers and agents within this state.
  3. The first purchaser shall notify the council whenever there is a change of information required by this section.

4.1-07-12. Assessment 🗎 PDF 

An assessment at the rate of one percent of the net value of dry peas and lentils is levied upon all dry peas and lentils grown in the state or sold to a first purchaser.

4.1-07-13. Collection of assessment - Records 🗎 PDF 

  1. A first purchaser shall collect the assessment from the producer by deducting the assessment from the net purchase price of the dry peas and lentils being purchased by the first purchaser.
  2. Each first purchaser shall keep documents regarding all purchases, sales, and shipments of dry peas and lentils for a period of three years. The records may be examined by the council upon request.
  3. At the time and in the manner prescribed by the council, each first purchaser shall file a report with the council stating, in individual and total amounts, the quantity and source of all dry peas and lentils that the first purchaser received, sold, or shipped.

4.1-07-14. Submission of assessment - Civil penalty 🗎 PDF 

  1. Each first purchaser shall forward to the council all assessments collected by the first purchaser no later than the thirtieth day after the end of each calendar quarter.
  2. If a first purchaser fails to submit the assessments as required by this section, the council may impose a penalty equal to ten percent of the assessment due, plus interest at the rate of twelve percent per annum from the due date.

4.1-07-15. Refund of assessment 🗎 PDF 

  1. To receive a refund of any assessment paid in accordance with this chapter, a producer shall submit to the council a written request for a refund application within sixty days after the date of the assessment or final settlement.
  2. The producer shall complete the refund application and return the application to the council, together with a record of the assessment collected, within ninety days after the date of the assessment or final settlement. The council then shall refund to the producer the net amount of the assessment that had been collected from the producer.
  3. If a request for refund is not submitted to the council within the prescribed time period, the producer is presumed to have agreed to the assessment.
  4. A producer is not entitled to a refund under this section unless the refundable amount meets or exceeds five dollars.

4.1-07-16. Reimbursement for double payment 🗎 PDF 

Notwithstanding section 4.1-07-15, if a producer documents to the council that the producer has paid the assessment more than once on the same dry peas or lentils, the council shall reimburse the producer for the double payment.

4.1-07-17. Expenditure of funds 🗎 PDF 

The council shall approve all expenditures made pursuant to this chapter. The expenditures must be recorded on itemized vouchers and the records must be maintained as directed by the state records administrator.

4.1-07-18. Continuing appropriation 🗎 PDF 

All moneys received by the council under this chapter are appropriated on a continuing basis to the council to be used to carry out this chapter.

4.1-07-19. Advisory referendum 🗎 PDF 

    1. When petitioned to do so by fifteen percent of the participating producers, the council shall conduct a referendum among the participating producers of the state to determine the amount by which the assessment imposed by this chapter should be raised or lowered.
    2. To be considered a valid petition, no more than fifty percent of the participating producers who signed the petition may reside in one district.
  2. The council shall prepare the ballots and mail the ballots to each participating producer at least thirty days before the last date for filing ballots.
  3. Each ballot must include a statement indicating:
    1. The date on which the petition was filed and the number of signatures on the petition;
    2. The date, time, and location at which the council will open and tabulate the ballots;
    3. The last date by which the ballots must be postmarked or filed with the council; and
    4. That any participating producer may be present at the time the ballots are opened and tabulated.
  4. The date selected by the council for the opening and tabulation of ballots must be at least five days after the date by which ballots must be postmarked or filed with the council.
  5. If the majority of the participating producers voting upon the question are in favor of the proposed change, the council shall submit proposed legislation to the next regular session of the legislative assembly to amend this chapter.

4.1-07-20. Penalty 🗎 PDF 

Any person willfully violating this chapter is guilty of a class B misdemeanor.

Chapter 08 — Honey Assessments

4.1-08-01. Definitions 🗎 PDF 

As used in this chapter:
  1. "Beekeeper" means any person owning or controlling a colony of bees for the production of honey, beeswax, or byproducts.
  2. "Commissioner" means the agriculture commissioner.

4.1-08-02. Assessment 🗎 PDF 

An annual assessment in the amount of ten cents is imposed on each colony of honeybees licensed by the beekeeper. The minimum annual assessment is one dollar.

4.1-08-03. Submission of assessments - Civil penalty 🗎 PDF 

  1. Each beekeeper shall submit the assessment required by section 4.1-08-02 to the commissioner at the same time the beekeeper submits the license application required by section 4.1-16-02.
  2. If a beekeeper fails to submit the assessment as required by this section, the commissioner may impose a penalty equal to five percent of the amount due, plus interest at the rate of six percent per annum from the due date.

4.1-08-04. Refunds 🗎 PDF 

  1. To receive a refund of any assessment paid in accordance with this chapter, a beekeeper shall obtain an application form from the commissioner within sixty days from the date the commissioner received the assessment required by section 4.1-08-02.
  2. The beekeeper shall return the completed form to the commissioner within ninety days from the date the commissioner received the assessment required by section 4.1-08-02.
  3. A beekeeper is not entitled to a refund under this section unless the refundable amount meets or exceeds five dollars.

4.1-08-05. Continuing appropriation 🗎 PDF 

The commissioner shall forward all moneys received under this chapter to the state treasurer for deposit in a special fund known as the honey fund. All moneys in the honey fund are appropriated on a continuing basis to the commissioner to carry out this chapter.

4.1-08-06. Assessment - Authorized expenditures 🗎 PDF 

The assessment required by this chapter may be used to fund research, including efforts that focus on honeybee colony health; education programs; and market development efforts, as well as promotional efforts such as the North Dakota honey queen program.

4.1-08-07. Commissioner - Powers 🗎 PDF 

The commissioner may:
  1. Expend moneys appropriated under this chapter for the purposes set forth in section 4.1-08-06, provided the commissioner first consults with the board of directors of the North Dakota beekeepers' association; and
  2. Do all things necessary and proper to enforce and administer this chapter.

4.1-08-08. Biennial report - Information regarding honey assessments 🗎 PDF 

When compiling the biennial report required by section 54-06-04, the commissioner shall provide information regarding activities under this chapter, including the amount of assessments collected and the manner in which the moneys were expended.

4.1-08-09. Penalty 🗎 PDF 

Any person willfully violating this chapter is guilty of a class B misdemeanor.

Chapter 09 — Oilseed Council

4.1-09-01. Definitions 🗎 PDF 

As used in this chapter:
  1. "Council" means the North Dakota oilseed council.
  2. "First purchaser" means any person that buys, accepts for shipment, or otherwise acquires oilseeds from a producer. The term includes a mortgagee, pledgee, lienor, and any other person having a claim against a producer if the actual or constructive possession of the oilseed is taken as partial payment or in satisfaction of the mortgage, pledge, lien, or claim.
  3. "Oilseeds" include canola, crambe, flax, rapeseed, safflowers, and sunflowers.
  4. "Participating producer" means a producer that has not applied for a refund under section 4.1-09-19 during the preceding twelve months.
  5. "Producer" means any person that:
    1. Plants or causes to be planted an oilseed crop in which the person has an ownership interest, with the intent that upon maturity the crop will be harvested;
    2. Will have met the requirements of subdivision a during the next available growing season; or
    3. Has met the requirements of subdivision a during the immediately preceding growing season.

4.1-09-02. Sunflower districts - Establishment 🗎 PDF 

The state consists of the following seven sunflower districts:
  1. Cavalier, Grand Forks, Nelson, Pembina, Ramsey, and Walsh Counties.
  2. Barnes, Cass, Griggs, Steele, and Traill Counties.
  3. Dickey, LaMoure, Ransom, Richland, and Sargent Counties.
  4. Burleigh, Emmons, Kidder, Logan, McIntosh, and Stutsman Counties.
  5. Benson, Eddy, Foster, Pierce, Rolette, Sheridan, Towner, and Wells Counties.
  6. Bottineau, Burke, Divide, Renville, McHenry, McLean, Mountrail, Ward, and Williams Counties.
  7. Adams, Billings, Bowman, Dunn, Golden Valley, Grant, Hettinger, McKenzie, Mercer, Morton, Oliver, Sioux, Slope, and Stark Counties.

4.1-09-03. Canola districts - Establishment 🗎 PDF 

The state consists of the following three canola districts:
  1. Adams, Billings, Bowman, Burke, Divide, Dunn, Golden Valley, Grant, Hettinger, McKenzie, McLean, Mercer, Morton, Mountrail, Oliver, Renville, Sioux, Slope, Stark, Ward, and Williams Counties.
  2. Benson, Bottineau, Burleigh, Dickey, Eddy, Emmons, Foster, Kidder, LaMoure, Logan, McHenry, McIntosh, Pierce, Rolette, Sheridan, Stutsman, and Wells Counties.
  3. Barnes, Cass, Cavalier, Grand Forks, Griggs, Nelson, Pembina, Ramsey, Ransom, Richland, Sargent, Steele, Towner, Traill, and Walsh Counties.

4.1-09-04. North Dakota oilseed council - Membership - Term 🗎 PDF 

  1. The council consists of:
    1. One participating sunflower producer elected from each of the seven districts established in section 4.1-09-02;
    2. One participating canola producer elected from each of the three districts established in section 4.1-09-03;
    3. One participating safflower producer appointed by the governor;
    4. One participating flax producer appointed by the governor;
      1. One participating producer of an oilseed other than sunflowers, canola, safflowers, or flax, appointed by the governor; or
      2. One participating producer of any oilseed, appointed by the governor, if the governor is unable to appoint a participating producer who meets the requirements of paragraph 1; and
    6. One individual appointed by the director of the agricultural experiment station.
  2. Each member of the council who represents a district must be a resident of and participating producer in that district.
    1. The term of each member who represents a sunflower district is three years and begins on April first following the member's election. The terms of members who represent sunflower districts must be staggered so that:
      1. No more than three expire in any one year; and
      2. The term of the member who represents Bottineau, Burke, Divide, Renville, McHenry, McLean, Mountrail, Ward, and Williams Counties is identical to that of the member who represents Adams, Billings, Bowman, Dunn, Golden Valley, Grant, Hettinger, McKenzie, Mercer, Morton, Oliver, Sioux, Slope, and Stark Counties.
    2. The term of each member who represents a canola district is three years and begins on April first following the member's election. The terms of members who represent canola districts must be staggered so that no more than one term expires in any one year.
    3. The term of each member who is appointed is three years and begins on April first following the member's appointment. The terms of members who are appointed must be staggered so that no more than two expire in any one year.
  4. If at any time a member of the council ceases to possess any of the qualifications required by this section, the member's office is deemed vacant.
    1. If the office was held by an elected member, the remaining members of the council shall appoint another qualified producer for the remainder of the term.
    2. If the office was held by a gubernatorial appointee, the governor shall appoint another qualified producer.
    3. If the office was held by an appointee of the director of the agricultural experiment station, the director shall appoint another qualified individual.
  5. A member of the council may not serve more than four consecutive terms.
  6. If an individual is appointed to complete a vacancy, that service is not counted as a term for purposes of this section unless the duration of that service exceeds one year.

4.1-09-05. Election of county representative - Sunflower producers - Waiver 🗎 PDF 

    1. No later than March first of the year in which the term of a council member who represents a sunflower district is to expire, the extension agent for each county in that member's district shall hold a meeting of sunflower producers for the purpose of electing a county representative.
    2. The council shall publish notice of the meeting in the official newspaper of the county for two consecutive weeks. The last notice must be published no fewer than five nor more than ten days before the meeting.
    3. The meeting must be held within the county.
    4. During the meeting, the county extension agent shall conduct the election.
    5. Any participating sunflower producer who resides in the county may vote in the election.
    6. The county extension agent shall canvass the votes, notify the director of the North Dakota state university extension service and the council that the election has taken place, and provide to the director and the council the name and address of the newly elected county representative.
  2. Subsection 1 does not apply if the county extension agent, in consultation with the executive director of the county farm service agency office, determines and notifies the council that no sunflower producers willing to serve as county representatives reside within the county.

4.1-09-06. Election of county representative - Canola producers - Waiver 🗎 PDF 

    1. No later than March first of the year in which the term of a council member who represents a canola district is to expire, the extension agent for each county in that member's district shall hold a meeting of canola producers for the purpose of electing a county representative.
    2. The council shall publish notice of the meeting in the official newspaper of the county for two consecutive weeks. The last notice must be published no fewer than five nor more than ten days before the meeting.
    3. The meeting must be held within the county.
    4. During the meeting, the county extension agent shall conduct the election.
    5. Any participating canola producer who resides in the county may vote in the election.
    6. The county extension agent shall canvass the votes, notify the director of the North Dakota state university extension service and the council that the election has taken place, and provide to the director and the council the name and address of the newly elected county representative.
  2. Subsection 1 does not apply if the county extension agent, in consultation with the executive director of the county farm service agency office, determines and notifies the council that no canola producers willing to serve as county representatives reside within the county.

4.1-09-07. Election of council member - Sunflower district representative 🗎 PDF 

  1. Upon receiving the notice required by subdivision f of subsection 1 of section 4.1-09-05, the director of the North Dakota state university extension service shall call a meeting of all county representatives in the sunflower district represented by the member whose term is to expire.
  2. The director shall notify each county representative in the sunflower district of the meeting, by mail, at least five days before the meeting.
  3. The meeting must be held within the district.
  4. At the meeting, the county representatives shall elect one from among themselves to serve as the council member from that district.
  5. The director shall notify the governor and the council that the election has taken place and shall provide to the governor and the council the name and address of the newly elected council member.

4.1-09-08. Election of council member - Canola district representative 🗎 PDF 

  1. Upon receiving the notice required by subdivision f of subsection 1 of section 4.1-09-06, the director of the North Dakota state university extension service shall call a meeting of all county representatives in the canola district represented by the member whose term is to expire.
  2. The director shall notify each county representative in the canola district of the meeting, by mail, at least five days before the meeting.
  3. The meeting must be held within the district.
  4. At the meeting, the county representatives shall elect one from among themselves to serve as the council member from that district.
  5. The director shall notify the governor and the council that the election has taken place and shall provide to the governor and the council the name and address of the newly elected council member.

4.1-09-09. Election costs - Responsibility 🗎 PDF 

All costs of holding county and district elections are the responsibility of the council.

4.1-09-10. Quorum 🗎 PDF 

A majority of the council's voting members constitutes a quorum for the transaction of business.

4.1-09-11. Election of chairman - Meetings 🗎 PDF 

  1. Annually, the council shall elect one member to serve as the chairman.
  2. The chairman shall call all meetings of the council and shall call a special meeting of the council within seven days when petitioned to do so by three council members.

4.1-09-12. Council members - Compensation 🗎 PDF 

Each member of the council, except the individual appointed by the director of the agricultural experiment station, is entitled to receive compensation in the amount established by the council but not exceeding one hundred thirty-five dollars per day plus reimbursement for expenses as provided by law for state officers if the member is attending meetings or performing duties directed by the council.

4.1-09-13. Council - Powers 🗎 PDF 

  1. The council may:
    1. Expend moneys collected pursuant to this chapter for administration;
    2. Employ, bond, and compensate necessary personnel;
    3. Accept gifts, grants, and donations of money, property, and services, to carry out this chapter;
    4. Contract with any person for any purpose permitted under this chapter;
    5. Sue and be sued; and
    6. Do all things necessary and proper to enforce and administer this chapter.
  2. The council may not engage in a commercial business enterprise.

4.1-09-14. Council - Duties 🗎 PDF 

  1. The council shall determine the uses for which any moneys raised under this chapter may be expended. The uses may include the funding of research, education programs, and market development efforts, as well as participation in programs under the auspices of other state, regional, national, and international oilseed promotion councils.
  2. The council shall develop and disseminate information regarding the purpose of the oilseed assessment and ways in which the assessment benefits oilseed producers.

4.1-09-15. First purchaser - Certificate 🗎 PDF 

  1. Before a first purchaser may sell, process, or ship any oilseeds, the first purchaser shall obtain a certificate from the council.
  2. The certificate is available upon submission to the council of an application containing the name under which the first purchaser is transacting business within this state, the first purchaser's place of business, and the location of loading and shipping places of the first purchaser's agents.
    1. If the first purchaser is a corporation, the application must include the corporate name and the names and addresses of the principal officers and agents within this state.
    2. If the first purchaser is a partnership, the application must include the names and addresses of the persons constituting the partnership.
    3. If the first purchaser is a limited liability company, the application must include the name of the limited liability company and the names and addresses of its principal managers and agents within this state.
  3. The first purchaser shall notify the council whenever there is a change of information required by this section.

4.1-09-16. Assessment 🗎 PDF 

  1. An assessment at the rate of four cents per hundredweight [45.36 kilograms] is imposed upon all sunflowers and canola grown in this state or sold to a first purchaser.
  2. An assessment at the rate of three cents per bushel [35.24 liters] is imposed upon all flax grown in this state or sold to a first purchaser.
  3. An assessment at the rate of three cents per hundredweight [45.36 kilograms] is imposed upon all other oilseeds grown in this state or sold to a first purchaser.

4.1-09-17. Collection of assessment - Records 🗎 PDF 

  1. The first purchaser shall collect the assessment from the producer by deducting the assessment from the total price of the oilseeds being purchased by the first purchaser.
  2. Each first purchaser shall keep documents regarding all purchases, sales, and shipments of oilseeds for a period of three years. The records may be examined by the council upon request.
  3. At the time and in the manner prescribed by the council, each first purchaser shall file a report stating, in individual and total amounts, the quantity of all oilseeds that the first purchaser received, sold, or shipped.

4.1-09-18. Submission of assessments - Civil penalty 🗎 PDF 

  1. Each first purchaser shall forward to the council all assessments collected by the first purchaser within thirty days after the end of each calendar quarter.
  2. If a first purchaser fails to submit the assessments as required by this section, the council may impose a penalty equal to ten percent of the amount due, plus interest at the rate of six percent per annum from the due date.

4.1-09-19. Refund of assessment 🗎 PDF 

  1. To receive a refund of any assessment paid in accordance with this chapter, a producer shall submit to the council a written request for a refund application within sixty days after the date of the assessment or final settlement.
  2. The producer shall complete the refund application and return the application to the council, together with a record of the assessment collected, within ninety days after the date of the assessment or final settlement. The council shall then refund the net amount of the assessment that had been collected.
  3. If a request for a refund is not submitted to the council within the prescribed time period, the producer is presumed to have agreed to the assessment.
  4. A producer is not entitled to a refund under this section unless the refundable amount meets or exceeds five dollars.

4.1-09-20. Reimbursement for double payments 🗎 PDF 

Notwithstanding section 4.1-09-19, if a producer documents to the council that the producer has paid the assessment more than once on the same oilseeds, the council shall reimburse the producer for the double payment.

4.1-09-21. Expenditure of funds 🗎 PDF 

The council shall approve all expenditures made pursuant to this chapter and shall submit an itemized voucher to the office of management and budget for payment.

4.1-09-22. Continuing appropriation 🗎 PDF 

The council shall forward all moneys received under this chapter to the state treasurer for deposit in the oilseed fund. All moneys in the oilseed fund are appropriated on a continuing basis to the council to carry out this chapter.

4.1-09-23. Advisory referendum 🗎 PDF 

    1. When petitioned to do so by fifteen percent of the participating producers, the council shall conduct a referendum among the participating producers of the state to determine the amount by which the assessment imposed by this chapter should be raised or lowered.
    2. To be considered a valid petition, no more than fifty percent of the participating producers who signed the petition may reside in one district.
  2. The council shall prepare the ballots and mail the ballots to each participating producer at least thirty days before the last date for filing ballots.
  3. Each ballot must include a statement indicating:
    1. The date on which the petition was filed and the number of signatures on the petition;
    2. The date, time, and location at which the council will open and tabulate the ballots;
    3. The last date by which the ballots must be postmarked or filed with the council; and
    4. That any participating producer may be present at the time the ballots are opened and tabulated.
  4. The date selected by the council for the opening and tabulation of ballots must be at least five days after the date by which ballots must be postmarked or filed with the council.
  5. If the majority of the participating producers voting upon the question are in favor of the proposed change, the council shall submit proposed legislation to the next regular session of the legislative assembly.

4.1-09-24. Penalty 🗎 PDF 

Any person willfully violating this chapter is guilty of a class B misdemeanor.

Chapter 10 — Potato Council

4.1-10-01. Definitions 🗎 PDF 

As used in this chapter:
  1. "Commissioner" means agriculture commissioner or the commissioner's designee.
  2. "Council" means the North Dakota potato council.
  3. "Designated handler" means a person that initially places potatoes into the channels of trade and commerce or a person who processes potatoes into food for human consumption.
  4. "Participating producer" means a producer that has not gained exemption from the payment of an assessment under this chapter for a particular year or a producer that is not exempt from the payment of an assessment under the terms of this chapter.
  5. "Potato" means any variety of Irish potatoes harvested within this state.
  6. "Producer" means a person that:
    1. Plants or causes to be planted, on at least ten acres [4.05 hectares], a potato crop in which the person has an ownership interest, with the intent that upon maturity the crop will be harvested;
    2. Will have met the requirements of subdivision a during the next available growing season; or
    3. Has met the requirements of subdivision a during the immediately preceding growing season.

4.1-10-02. Potato districts - Establishment 🗎 PDF 

The state consists of the following five potato districts:
  1. Cavalier and Pembina Counties;
  2. Walsh County in and west of range fifty-four;
  3. Walsh County in and east of range fifty-three;
  4. Benson, Grand Forks, and Nelson Counties; and
  5. All remaining counties in the state.

4.1-10-03. North Dakota potato council - Membership - Term 🗎 PDF 

  1. The North Dakota potato council is composed of one participating producer elected from each of the five districts established in section 4.1-10-02.
  2. Each member of the council must be a United States citizen.
  3. Each member of the council must be a resident of and participating producer in the district that the member represents.
  4. The term of each elected member is three years and begins on July first following the member's election. The terms must be staggered so that no more than two expire each year.
  5. If at any time during a member's term that member ceases to possess any of the qualifications provided for in this chapter, that member's office is deemed vacant and the council shall appoint another qualified producer for the remainder of the term.
  6. An elected member of the council may not serve more than two consecutive terms.
  7. If an individual is appointed to complete a vacancy, that service is not counted as a term, for purposes of this section, unless the duration of that service exceeds one year.

4.1-10-04. Election of council members 🗎 PDF 

  1. Each year during the month of May, the commissioner shall identify the districts represented by council members whose terms are about to expire.
    1. The commissioner shall forward to each producer residing in the district a letter inviting the producer to place the producer's own name or the name of another producer into nomination for election to the council.
    2. The commissioner shall include a statement of eligibility to be completed by the producer seeking election and a nomination petition to be signed by five other producers.
  3. In order for a name to be placed on the ballot, the statement of eligibility and the nomination petition must be received by the council on the date specified by the commissioner. That date may not be later than May thirty-first.
  4. The commissioner shall prepare election ballots and mail the ballots to the participating producers in the district, together with a statement indicating:
    1. The last date by which the ballots must be postmarked or filed with the council;
    2. The date, time, and location at which the council will open and tabulate the ballots; and
    3. That any participating producer may be present at the time the ballots are opened and tabulated.
  5. The date selected for the opening and tabulation of ballots must be at least five days after the date by which ballots must be postmarked or filed with the council.
  6. After the election, the council shall notify the governor that the election has taken place and shall provide to the governor the name and address of the newly elected council member.

4.1-10-05. Chairman - Meetings 🗎 PDF 

Annually, the council shall elect one member to serve as the chairman. The chairman shall call all meetings of the council and shall call a special meeting of the council within seven days when petitioned to do so by three council members.

4.1-10-06. Council members - Compensation 🗎 PDF 

Each member of the council is entitled to receive compensation in the amount established by the council but not exceeding one hundred thirty-five dollars per day plus reimbursement for expenses as provided by law for state officers if the member is attending meetings or performing duties directed by the council.

4.1-10-07. Council - Powers 🗎 PDF 

  1. The council may:
    1. Expend moneys collected pursuant to this chapter for its administration;
    2. Employ, bond, and compensate necessary personnel;
    3. Accept gifts, grants, and donations of money, property, and services to carry out this chapter;
    4. Contract with any person for any purpose permitted under this chapter;
    5. Sue and be sued; and
    6. Do all things necessary and proper to enforce and administer this chapter.
  2. The council may not engage in a commercial business enterprise.

4.1-10-08. Council - Duties 🗎 PDF 

  1. The council shall determine the uses to which any moneys raised under this chapter may be expended. The uses may include funding for research, education programs, transportation issues, and market development efforts, as well as participation in programs under the auspices of state, regional, national, and international promotion groups.
  2. The council shall develop and disseminate information regarding the purpose of the potato assessment and ways in which the assessment benefits potato producers.

4.1-10-09. Designated handler - Certification 🗎 PDF 

  1. Before a designated handler may sell, process, or ship potatoes, the designated handler shall obtain certification from the council. The certification is available upon submission to the council of an application containing the name under which the handler is transacting business within the state, the designated handler's place of business, and the location of loading and shipping places of the designated handler's agents.
    1. If the designated handler is a corporation, the application must include the corporate name and the names and addresses of its principal officers and agents within the state.
    2. If the designated handler is a partnership, the application must include names and addresses of the persons constituting the partnership.
    3. If the designated handler is a limited liability company, the application must include the names and addresses of its principal managers and agents within the state.
  3. The designated handler shall notify the council whenever there is a change of information required by this section.

4.1-10-10. Assessment 🗎 PDF 

  1. Except as otherwise provided, an assessment at the rate of three cents per hundredweight [45.36 kilograms] is imposed upon all potatoes grown in this state or sold to a designated handler.
  2. The council may increase the assessment by no more than one-half cent per hundredweight [45.36 kilograms] annually until a maximum assessment of four cents per hundredweight [45.36 kilograms] is reached.
  3. This assessment is not imposed on any potatoes retained by producers for seed or for consumption by the producer, the producer's family, and nonpaying guests.

4.1-10-11. Collection of assessment - Records 🗎 PDF 

  1. Each designated handler shall collect the assessment from the seller by deducting the assessment from the total price of the potatoes purchased by the designated handler.
  2. Each designated handler shall keep documents regarding all purchases, sales, and shipments of raw potatoes for a period of three years. The records may be examined by the council upon request.
  3. At the time and in the manner prescribed by the council, each designated handler shall file a report stating the quantity of potatoes that the designated handler received, sold, or shipped.

4.1-10-12. Submission of assessments - Civil penalty 🗎 PDF 

  1. Each designated handler shall forward to the council all assessments collected by the handler no later than the thirtieth day after the end of each calendar quarter.
  2. If a designated handler fails to submit the assessments as required by this section, the council may levy a penalty equal to ten percent of the amount due, plus interest at the rate of six percent per annum from the due date.

4.1-10-13. Refund of assessment - Letters of request 🗎 PDF 

  1. To receive a refund of any assessments paid in accordance with this chapter, a producer shall:
    1. Between January first and July fifteenth, submit a letter to the council indicating that the producer intends to request a refund of assessments paid on potatoes grown during that calendar year; and
    2. Between June first and June fifteenth of the calendar year following the date of the letter required by subdivision a, submit a letter to the council requesting the refund of assessments paid by the producer on potatoes grown during the previous calendar year.
  2. Upon verification that the requirements of this section have been met, the council shall provide the requested refund to the producer.
  3. Notwithstanding subsections 1 and 2, a producer is not entitled to a refund under this section unless the refundable amount meets or exceeds five dollars.

4.1-10-14. Expenditures 🗎 PDF 

The council shall approve all expenditures made pursuant to this chapter and shall submit an itemized voucher to the office of management and budget for payment.

4.1-10-15. Continuing appropriation 🗎 PDF 

The council shall forward all moneys received under this chapter to the state treasurer for deposit in the potato fund. All moneys in the potato fund are appropriated on a continuing basis to the council for purposes of carrying out this chapter.

4.1-10-16. Advisory referendum 🗎 PDF 

    1. When petitioned to do so by fifteen percent of the participating producers, the council shall conduct a referendum among the participating producers of the state to determine the amount by which the assessment imposed by this chapter should be raised or lowered.
    2. To be considered a valid petition, no more than fifty percent of the participating producers who signed the petition may reside in one district.
  2. The council shall prepare the ballots and mail the ballots to each participating producer at least thirty days before the last date for filing ballots.
  3. Each ballot must include a statement indicating:
    1. The date on which the petition was filed and the number of signatures on the petition;
    2. The date, time, and location at which the council will open and tabulate the ballots;
    3. The last date by which the ballots must be postmarked or filed with the council; and
    4. That any participating producer may be present at the time the ballots are opened and tabulated.
  4. The date selected by the council for the opening and tabulation of ballots must be at least five days after the date by which ballots must be postmarked or filed with the council.
  5. If a majority of the participating producers voting upon the question are in favor of the proposed change, the council shall submit proposed legislation to the next regular session of the legislative assembly to amend this chapter.

4.1-10-17. Penalty - Criminal 🗎 PDF 

Any person willfully violating this chapter is guilty of a class B misdemeanor.

Chapter 11 — Soybean Council

4.1-11-01. Definitions 🗎 PDF 

As used in this chapter:
  1. "Council" means the nongovernmental entity, known as the North Dakota soybean council.
  2. "Designated handler" means any person that initially places soybeans into the channels of trade and commerce or any person that processes soybeans into food for human consumption.
    1. "Producer" means any person that:
      1. Plants or causes to be planted a soybean crop in which the person has an ownership interest, with the intent that upon maturity the crop will be harvested;
      2. Will have met the requirements of paragraph 1 during the next available growing season; or
      3. Has met the requirements of paragraph 1 during the immediately preceding growing season.
    2. The term does not include an organic producer that has been exempted from the payment of assessments, in accordance with federal law.

4.1-11-02. Soybean districts - Establishment - Review of district lines 🗎 PDF 

  1. The state consists of the following twelve soybean districts:
    1. District one: Richland County;
    2. District two: Ransom and Sargent Counties;
    3. District three: Dickey and LaMoure Counties;
    4. District four: Cass County;
    5. District five: Barnes County;
    6. District six: Stutsman County;
    7. District seven: Grand Forks and Traill Counties;
    8. District eight: Griggs, Nelson, and Steele Counties;
    9. District nine: Eddy, Foster, and Wells Counties;
    10. District ten: Cavalier, Pembina, and Walsh Counties;
    11. District eleven: Benson, Bottineau, Burke, Divide, McHenry, Mountrail, Pierce, Ramsey, Renville, Rolette, Towner, Ward, and Williams Counties; and
    12. District twelve: Adams, Billings, Bowman, Burleigh, Dunn, Emmons, Golden Valley, Grant, Hettinger, Kidder, Logan, McIntosh, McKenzie, McLean, Mercer, Morton, Oliver, Sheridan, Sioux, Slope, and Stark Counties.
  2. The council shall review the district boundaries at least once every seven years to ensure accurate producer representation. If, upon review, the council determines the districts do not accurately represent producers in the state based upon acreage, the council may redistrict upon a two-thirds vote of the members elected to the council.

4.1-11-03. North Dakota soybean council - Membership - Terms 🗎 PDF 

  1. The council consists of one producer elected from each of the districts established in section 4.1-11-02.
  2. Each member of the council must be a resident of the district the member represents and a producer.
    1. The term of each elected member is three years and begins on July first following the member's election. Except as otherwise provided in this subsection, the terms must be staggered so that no more than four expire each year.
    2. Between December first and March thirty-first of the subsequent year, each district established by section 4.1-11-02 which has a vacancy shall elect an individual to serve as a council member with a term beginning July first. The terms of all council members expire on June thirtieth of the third year of each member's term.
  4. If at any time during a member's term the member ceases to possess any of the qualifications provided for in this section, the member's office is deemed vacant and the council, by majority vote, shall appoint another qualified producer to serve for the remainder of the term.
  5. An elected member of the council may not serve more than two consecutive terms.
  6. If an individual is appointed to complete a vacancy, that service is not counted as a term for purposes of this section unless the duration of that service exceeds one year.

4.1-11-04. Election of county representative 🗎 PDF 

  1. Before January first, the council shall identify each district represented by a council member whose term is about to expire and notify the extension agent for each county in that member's district that an election to select a county representative must occur before March first.
  2. Each year during the month of December, the council shall publish notice of the election in the official newspaper of the county for one week. The notice must contain a description of the election process, a request for the nomination of potential candidates for the position, and a deadline for the receipt of all nominations.
  3. In order for a nomination to be valid, it must be submitted to the county extension agent in writing and signed by a nominating producer who resides in the county. The county extension agent shall determine if a nomination is valid. A decision by the county extension agent under this subsection is final.
  4. The county extension agent shall:
    1. Compile all valid nominations;
    2. Contact each nominee to determine if the nominee consents to being on the ballot; and
    3. Forward the name of each nominee to the council.
  5. The council shall prepare the election ballots and mail to each producer of record in the county:
    1. A ballot;
    2. A stamped self-addressed return envelope;
    3. Instructions for completing and returning the ballot; and
    4. A statement indicating the last date by which the ballots must be postmarked or filed with the county extension agent.
  6. The council shall publish notice of the pending election in the official newspaper of the county for one week. The notice must announce the election, provide information regarding the manner in which a producer may obtain a ballot if one was not received by mail, and indicate the deadline by which all ballots must be returned.
  7. Any producer who resides in the county may vote in the election.
  8. Immediately after the passing of the deadline by which the ballots must be returned, the county extension agent shall:
    1. Tabulate the ballots;
    2. Notify the director of the North Dakota state university extension service and the council that the election has taken place and provide to the director and the council the name and address of the newly elected county representative; and
    3. Notify the newly elected county representative.
  9. Subsections 1 through 8 do not apply if the county extension agent, in consultation with the executive director of the county farm service agency office, determines and notifies the council that no soybean producers willing to serve as county representatives reside within the county.

4.1-11-05. Election of council member - District representative 🗎 PDF 

  1. Upon receiving notice that the election has taken place, as required by subsection 8 of section 4.1-11-04, the director of the North Dakota state university extension service shall call a meeting of all county representatives in the district represented by the member whose term is to expire.
  2. The director shall notify each county representative in the district of the meeting by registered mail at least five days before the meeting.
  3. At the discretion of the director of the North Dakota state university extension service, the meeting may be held by any means, including by conference call or other electronic medium. If the meeting requires physical presence at a particular location, that location must be within the district.
  4. At the meeting, the county representatives shall elect one from among themselves to serve as the council member from that district.
  5. The director shall notify the council that the election has taken place and shall provide to the council the name and address of the newly elected council member.
  6. If the county representatives fail to elect an individual, as required by this section, the director of the North Dakota state university extension service shall notify the council and the council shall appoint a producer from the district to serve as the district's council member. An individual appointed under this subsection has the same rights, duties, and privileges as an elected council member.

4.1-11-06. Election costs - Responsibility 🗎 PDF 

All costs of holding county and district elections are the responsibility of the council.

4.1-11-07. Election of chairman - Meetings 🗎 PDF 

  1. Annually, the council shall elect one member to serve as the chairman.
  2. The chairman shall call all meetings of the council and shall call a special meeting of the council within seven days when petitioned to do so by three council members.

4.1-11-08. Council members - Compensation 🗎 PDF 

Each member of the council is entitled to receive compensation in the amount established by the council plus reimbursement for expenses if the member is attending meetings or performing duties directed by the council.

4.1-11-09. Council powers 🗎 PDF 

The council may:
  1. Expend moneys collected pursuant to this chapter for its administration;
  2. Employ, bond, and compensate necessary personnel;
  3. Accept gifts, grants, and donations of money, property, and services to carry out this chapter;
  4. Contract with any person for any purpose permitted under this chapter;
  5. Sue and be sued; and
  6. Do all things necessary and proper to enforce and administer this chapter.

4.1-11-10. Council duties and reports 🗎 PDF 

  1. The council shall develop policies and initiate programs to promote the development of markets for and increase the utilization of soybeans grown in this state.
  2. The council shall develop and disseminate information regarding the purpose of the soybean assessment and ways in which the assessment benefits soybean producers.
  3. The council shall determine the uses for which any moneys raised under this chapter may be expended. The uses may include the funding of research, education programs, and market development efforts, as well as participation in programs under the auspices of national soybean promotion organizations.
  4. Annually, the council shall prepare and submit a report summarizing the activities of the council to the state auditor and commissioner. The report must show all income, expenses, and other relevant information concerning fees collected and expended.
  5. The council shall request and submit a certificate of good standing, issued by the secretary of state, as part of the report described in subsection 4.

4.1-11-11. Assessment 🗎 PDF 

If a federal assessment under the Soybean Promotion, Research, and Consumer Information Act [Pub. L. 101-624; 104 Stat, 3881; 7 U.S.C. 92 et seq.] or a similar act remains in place, a state assessment under this section is prohibited. If the Soybean Promotion, Research, and Consumer Information Act [Pub. L. 101-624; 104 Stat, 3881; 7 U.S.C. 92 et seq.] or similar act eliminates a federal assessment, the council shall implement a state assessment equaling one-half of one percent of the value of the sale must be imposed upon all soybeans sold to a designated handler.

4.1-11-12. Collection of assessment by designated handler - Records 🗎 PDF 

If an assessment is in place under section 4.1-11-11:
  1. Each designated handler shall collect the assessment from the seller by deducting the assessment from the purchase price of all soybeans subject to the assessment;
  2. Each designated handler shall keep all records regarding the quantity of soybeans received and assessed for a period of three years; and
  3. All records required by this section may be examined by the council upon request.

4.1-11-13. Quarterly report - Submission to council 🗎 PDF 

At the time and in the manner prescribed by the council, each designated handler shall file with the council a quarterly report stating the quantity of all soybeans the handler purchased and assessed under section 4.1-11-11.

4.1-11-14. Submission of assessments - Delinquent assessment 🗎 PDF 

Each designated handler shall forward to the council all assessments collected by the handler under section 4.1-11-11 within thirty days after the end of each calendar quarter. If a designated handler fails to submit the assessments as required by this section, the council shall increase the amount owed by two percent each month, beginning with the day following that on which the assessments came due.

4.1-11-15. Continuing appropriation - Use of council funds 🗎 PDF 

All moneys received under this chapter must be deposited in the soybean checkoff account at the Bank of North Dakota. All moneys in the soybean checkoff account are appropriated on a continuing basis to the council and may be used by the council for the payment of claims by the council based on the obligations incurred in the performance of council activities, functions, and purposes as provided in this chapter. The board shall segregate moneys in the soybean checkoff account from all other moneys of the council.

4.1-11-16. Penalty 🗎 PDF 

Any person willfully violating this chapter is guilty of a class B misdemeanor.

Chapter 12 — Turkey Promotion

4.1-12-01. Definitions 🗎 PDF 

  1. "Commissioner" means the agriculture commissioner.
  2. "Processor" means any person that purchases more than one thousand turkeys each year for slaughter.
  3. "Producer" means any person that does business within this state and raises turkeys for slaughter each year.

4.1-12-02. Assessment - Determination 🗎 PDF 

  1. The assessment required by this chapter is determined by:
    1. Calculating the flock average live weight at the time of delivery to a processor; and
    2. Calculating the actual number of turkeys in that flock after processing.
    1. If the actual number of turkeys in a flock after processing had an average live weight of less than eighteen pounds, the assessment is equal to one cent per turkey.
    2. If the actual number of turkeys in a flock after processing had an average live weight of at least eighteen pounds but less than twenty-eight pounds, the assessment is equal to one and one-half cents per turkey.
    3. If the actual number of turkeys in a flock after processing had an average live weight of at least twenty-eight pounds, the assessment is equal to one and three-quarter cents per turkey.

4.1-12-03. Assessment - Collection - Remittance by processor 🗎 PDF 

The processor shall collect the assessment required by this chapter at the time the turkeys are delivered to a processing plant, by deducting the amount required under section 4.1-12-02 from the price paid to the producer.

4.1-12-04. Invoice - Contents - Preparation by processor 🗎 PDF 

At the time turkeys are delivered to a processor, the processor shall prepare and sign an invoice documenting:
  1. The name and address of the producer;
  2. The name and address of the seller, if the producer is not the seller;
  3. The name and address of the processor;
  4. The number of turkeys sold in that particular transaction;
  5. The assessment collected on that particular transaction; and
  6. The date.

4.1-12-05. Submission of assessments - Civil penalty 🗎 PDF 

  1. A processor shall submit all assessments collected under this chapter to the commissioner within thirty days after the conclusion of each calendar quarter.
  2. If a processor fails to submit the assessments as required by this section, the commissioner may impose a penalty equal to five percent of the amount due, plus interest at the rate of six percent per annum from the due date.

4.1-12-06. Out-of-state processors 🗎 PDF 

The commissioner may contract with out-of-state processors for the collection and remittance of the assessment required by section 4.1-12-02.

4.1-12-07. Refund of assessment - Form 🗎 PDF 

To receive a refund of any assessment paid in accordance with this chapter, a producer shall obtain an application form from the commissioner within sixty days from the date the producer's turkeys were delivered to a processor. The producer shall return the completed form to the commissioner within ninety days from the date the producer's turkeys were delivered to a processor. The producer is not entitled to a refund under this section unless the refundable amount meets or exceeds five dollars.

4.1-12-08. Continuing appropriation 🗎 PDF 

The commissioner shall forward all moneys received under this chapter to the state treasurer for deposit in a special fund known as the turkey fund. All moneys in the turkey fund are appropriated on a continuing basis to the commissioner to carry out this chapter.

4.1-12-09. Authorized expenditures 🗎 PDF 

The assessment required by this chapter may be used to fund research, education programs, and market development efforts, as well as participation in programs under the auspices of the national turkey federation.

4.1-12-10. Powers of the commissioner 🗎 PDF 

The commissioner may:
  1. Expend moneys raised under this chapter for the purposes set forth in section 4.1-12-09, provided the commissioner first consults with a committee appointed by the North Dakota turkey federation;
  2. Require a processor to prepare and submit additional information and documents if necessary for the enforcement and administration of this chapter; and
  3. Do all other things necessary and proper to enforce and administer this chapter.

4.1-12-11. Biennial report - Information regarding turkey assessments 🗎 PDF 

When compiling the biennial report required by section 54-06-04, the commissioner shall provide information regarding activities under this chapter, including the amount of assessments collected and the manner in which the moneys were expended.

4.1-12-12. Penalty 🗎 PDF 

Any person willfully violating this chapter is guilty of a class B misdemeanor.

Chapter 13 — Wheat Commission

4.1-13-01. Definitions 🗎 PDF 

As used in this chapter:
  1. "Commercial channels" means the sale of wheat by a producer to any person who resells wheat or any product produced from wheat.
  2. "Commission" means the North Dakota state wheat commission.
  3. "Final settlement" means:
    1. The date that wheat upon which a loan was obtained is:
      1. Sold to a person other than a governmental entity; or
      2. Assigned or transferred to a United States government agency; or
    2. The date upon which payment for the wheat is actually made if the wheat is sold in accordance with the terms of a deferred payment contract.
  4. "First purchaser" means any person buying, accepting for sale, or otherwise acquiring, after harvest, the property in or to wheat, from the producer. The term includes a mortgagee, pledgee, lienor, or other person having a claim against the producer if the actual or constructive possession of wheat is taken as partial payment or in satisfaction of a mortgage, pledge, lien, or claim.
  5. "Producer" means any person that:
    1. Plants or causes to be planted a wheat crop in which the person has an ownership interest, with the intent that upon maturity the crop will be harvested;
    2. Will have met the requirements of subdivision a during the next available growing season; or
    3. Has met the requirements of subdivision a during the immediately preceding growing season.
  6. "Sale" includes any pledge or mortgage of wheat, after harvest, to any person.
  7. "Wheat" includes all classes of wheat.

4.1-13-02. Wheat districts - Establishment 🗎 PDF 

The state consists of the following six wheat districts:
  1. Adams, Billings, Bowman, Dunn, Golden Valley, Grant, Hettinger, Mercer, Morton, Oliver, Sioux, Slope, and Stark Counties;
  2. Burke, Divide, McKenzie, Mountrail, Renville, Ward, and Williams Counties;
  3. Burleigh, Eddy, Emmons, Foster, Kidder, Logan, McIntosh, McLean, Sheridan, Stutsman, and Wells Counties;
  4. Benson, Bottineau, McHenry, Pierce, Ramsey, Rolette, and Towner Counties;
  5. Barnes, Cass, Dickey, Griggs, LaMoure, Ransom, Richland, Sargent, Steele, and Traill Counties; and
  6. Cavalier, Grand Forks, Nelson, Pembina, and Walsh Counties.

4.1-13-03. Wheat commission - Membership - Eligibility 🗎 PDF 

  1. The wheat commission consists of:
    1. One individual elected from each of the six districts established in section 4.1-13-02; and
    2. One individual appointed to represent the state at large.
  2. Each elected member of the wheat commission must be a resident of the district that the member represents, a qualified elector, and a producer.
  3. The member at large must be a resident of this state, a qualified elector, and a producer.
  4. Any individual who requested a refund under section 4.1-13-18 during the twelve months preceding the date on which the term being sought would begin is not eligible to serve as a member of the commission.

4.1-13-04. Terms of office 🗎 PDF 

  1. The term of each commission member is four years.
  2. The term of an elected member begins on July first following the date of the member's election and continues until the member's successor has been elected and qualified. The term of the member at large begins on July first of the year in which the member is appointed and continues until the member's successor has been appointed.
  3. The terms must be staggered so that no more than two expire each year.
  4. An individual may not serve more than three terms as a commission member.
  5. If an individual is appointed to complete a vacancy, that service is not counted as a term for purposes of this section unless the duration of that service exceeds one year.

4.1-13-05. Election of county representative 🗎 PDF 

  1. No later than May first of the year in which the term of an elected commission member is to expire, the extension agent for each county in that member's district shall hold a meeting of producers for the purpose of electing a county representative.
  2. The commission shall publish notice of the meeting in the official newspaper of the county for two consecutive weeks. The last notice must be published no fewer than five nor more than ten days before the meeting.
  3. The meeting must be held within the county.
  4. During the meeting, the county extension agent shall conduct the election.
  5. Any participating producer who resides in the county may vote in the election.
  6. The county extension agent shall canvass the votes, notify the director of the North Dakota state university extension service and the commission that the election has taken place, and provide to the director and the commission the name and address of the newly elected county representative.
  7. Only those individuals who would be qualified to serve as elected commission members may be elected as county representatives after July 31, 2009.
  8. If an individual is unable or unwilling to continue serving as a county representative, the county extension agent may appoint another qualified producer to serve in that capacity, until the next county representative is elected in accordance with this section.

4.1-13-06. Election of district representative - Commission member 🗎 PDF 

  1. Upon receiving the notice required by subsection 6 of section 4.1-13-05, the director of the North Dakota state university extension service shall call a meeting of all county representatives in the district represented by the member whose term is to expire.
  2. The director shall notify each county representative in the district of the meeting, by registered mail, at least five days before the meeting.
  3. The meeting must be held within the district.
  4. At the meeting, the county representatives shall elect one from among themselves to serve as the commission member from that district.
  5. The director shall notify the governor and the commission that the election has taken place and shall provide to the governor and the commission the name and address of the newly elected commission member.

4.1-13-07. County representative - Additional duties - Reimbursement of expenses 🗎 PDF 

In addition to any other duties established in section 4.1-13-06, the commission may require county representatives to attend meetings for the purpose of promoting commission programs and to perform other duties as directed by the commission. The commission shall reimburse the expenses of county representatives who perform such additional duties in the same manner as that provided by law for state officials.

4.1-13-08. Election costs - Responsibility 🗎 PDF 

All costs of holding county and district meetings and elections are the responsibility of the commission.

4.1-13-09. Member at large - Nominating commission - Appointment by governor 🗎 PDF 

  1. No sooner than sixty days before the term of the commission's member at large is to expire, the agriculture commissioner, serving as the chairman, shall convene a nominating committee consisting of the following individuals:
    1. The agriculture commissioner;
    2. The director of the North Dakota agricultural experiment station;
    3. The president of the North Dakota crop improvement association;
    4. The president of the North Dakota farm bureau;
    5. The president of the North Dakota farmers union;
    6. The president of the North Dakota grain dealers association;
    7. The president of the North Dakota grain growers association;
    8. The director of the North Dakota state university extension service; and
    9. A resident of this state who is a member of, and selected by, the United States durum growers association.
  2. The committee shall submit to the governor the names of three individuals who are qualified to serve as a member at large.
  3. Before the member's term is to expire, the governor shall appoint one of the three individuals to serve as the member at large.
  4. Any member of the nominating committee may appoint a designee to carry out the requirements of this section.

4.1-13-10. Commission vacancies 🗎 PDF 

  1. The commission shall declare a member to be ineligible and the member's position vacant if the commission determines that the member no longer meets the qualifications set forth in section 4.1-13-03.
  2. The commission may declare a member to be ineligible and the member's position vacant if the commission determines that the member has failed to attend two consecutive commission meetings.
  3. If an elected commission member is declared by the commission to be ineligible or is otherwise unable to continue serving for the duration of the term to which the member was elected, the commission shall direct the county representatives to hold an election for the purpose of filling the vacancy. The election must be conducted in the same manner as that provided for under section 4.1-13-06.
  4. If the commission member serving at large is declared by the commission to be ineligible or is otherwise unable to continue serving for the duration of the term to which the member was appointed, the commission shall direct the nominating committee to submit the names of three eligible individuals to the governor for the purpose of filling the vacancy. The appointment must be conducted in the same manner as that provided for under section 4.1-13-09.

4.1-13-11. Election of chairman - Meetings 🗎 PDF 

  1. Annually, the commission shall elect one member to serve as the chairman and another to serve as the vice chairman.
  2. The chairman shall call all meetings of the commission and shall call a special meeting of the commission within seven days when petitioned to do so by three commission members.
  3. The commission shall meet at least once every calendar quarter.

4.1-13-12. Commission members - Compensation 🗎 PDF 

Each member of the commission is entitled to receive compensation in the amount established by the commission, but not exceeding one hundred thirty-five dollars per day plus reimbursement for expenses as provided by law for state officers if the member is attending meetings or performing duties directed by the commission.

4.1-13-13. Commission - Powers 🗎 PDF 

  1. The commission may:
    1. Expend moneys collected pursuant to this chapter for its administration;
    2. Employ, bond, and compensate necessary personnel;
    3. Accept gifts, grants, and donations of money, property, and services to carry out this chapter;
    4. Contract with any person for any purpose permitted under this chapter;
    5. Sue and be sued; and
    6. Do all things necessary and proper to enforce and administer this chapter.
  2. The commission may not engage in a commercial business enterprise.

4.1-13-14. Commission - Duties 🗎 PDF 

  1. The commission shall determine the uses for which any moneys raised under this chapter may be expended. The uses may include the funding of research, education programs, and market development efforts, as well as participation in efforts under the auspices of other state, regional, national, and international organizations.
  2. The commission shall develop and disseminate information regarding the purpose of the wheat assessment and ways in which the assessment benefits wheat producers.

4.1-13-15. Assessment 🗎 PDF 

An assessment at the rate of twenty mills per bushel [35.24 liters] by weight is imposed upon all wheat:
  1. Grown in this state, at the time of its sale;
  2. Delivered into this state, at the time of its sale; and
  3. Sold through commercial channels to a first purchaser in this state.

4.1-13-16. Collection of assessment - Records 🗎 PDF 

  1. The first purchaser shall collect the assessment from the seller by deducting the assessment from the total price of the wheat being purchased. If the wheat is subject to a lien, pledge, or mortgage, the assessment must:
    1. Be deducted from the proceeds of the loan; or
    2. The claim must be secured and must be subject to adjustment at the time of settlement if the number of bushels [liters] is not accurately determined at the time of the lien, pledge, or mortgage.
  2. At the time of the sale, the first purchaser shall provide a record of the transaction to the seller in the manner prescribed by the commission.

4.1-13-17. Submission of assessments 🗎 PDF 

No later than thirty days after the conclusion of each calendar quarter, each first purchaser shall:
  1. Complete and file with the commission a form prescribed by the commission; and
  2. Forward to the commission all assessments collected by the first purchaser.

4.1-13-18. Refund of assessment - Form - Exception 🗎 PDF 

    1. To receive a refund of any assessment paid in accordance with this chapter, a producer shall submit to the commission a written request for a refund application within sixty days after the date of the assessment or final settlement.
    2. The producer shall complete the refund application and return the application to the commission, together with a record of the assessment collected within ninety days after the date of the assessment or final settlement. The commission then shall refund the net amount of the assessment that had been collected.
    3. If a request for a refund is not submitted to the commission within the prescribed time period, the producer is presumed to have agreed to the assessment.
  2. A producer is not entitled to a refund under this section unless the refundable amount meets or exceeds five dollars.
  3. Notwithstanding subsection 1, a member of the wheat commission is not eligible to receive a refund under this section.

4.1-13-19. Reimbursement for double payments 🗎 PDF 

Notwithstanding section 4.1-13-18, if a producer documents to the commission that the producer has paid the assessment more than once on the same wheat, the commission shall reimburse the producer for the double payment.

4.1-13-20. Expenditure of funds 🗎 PDF 

The commission shall approve all expenditures made pursuant to this chapter. All expenditures must be recorded on vouchers approved by the commission.

4.1-13-21. Continuing appropriation 🗎 PDF 

The commission shall forward all moneys received under this chapter to the state treasurer for deposit in the state wheat commission fund. All moneys in the state wheat commission fund are appropriated on a continuing basis to the commission to carry out this chapter.

4.1-13-22. Commission - Report to legislative assembly 🗎 PDF 

At the time the commission presents the report required by section 4.1-44-04, the commission shall present a separate report detailing the nature and extent of the commission's efforts to address trade and domestic policy issues. The commission may invite other entities with which it has contracted to assist in the presentation.

4.1-13-23. Contract with trade associations 🗎 PDF 

The commission shall expend an amount at least equal to that raised by two mills of the assessment provided for in section 4.1-13-15 to contract for activities related to domestic wheat policy issues, wheat production, promotion, and sales. The contracts may be with no more than two trade associations that are incorporated in this state and which have as their primary purpose the representation of wheat producers. The contracts must require that any trade association receiving money under this section pay from that money all dues required as a condition of the trade association's membership in any national trade association. The contracts must prohibit any trade association receiving money under this section from eliminating any dues required as a condition of membership in that trade association or from reducing such dues below the amount required for membership as of January 1, 2005.

4.1-13-24. Contract with trade associations - Report to legislative assembly 🗎 PDF 

At the time the commission presents the report required by section 4.1-54-04, each trade association with which the commission has contracted under section 4.1-13-23 shall present a report detailing all activities in which the trade association engaged under the contract.

4.1-13-25. Legal counsel - Provision by attorney general 🗎 PDF 

The attorney general shall provide legal counsel to the commission or designate an assistant for that purpose.

4.1-13-26. Penalty 🗎 PDF 

Any person willfully violating this chapter is guilty of a class B misdemeanor.

Chapter 14 — Forage Certification

4.1-14-01. Certification of forage - Compliance with other standards 🗎 PDF 

  1. To obtain certification that weeds prohibited according to the standards of the North American invasive species management association are not cut when producing viable seeds and included in baled forage, the owner of the forage shall request that the agriculture commissioner conduct a certification inspection.
  2. Upon receiving the request, the agriculture commissioner shall:
    1. Inspect the forage acreage within ten days before harvest to verify that weeds prohibited according to the standards of the North American invasive species management association are not present and producing viable seeds; and
      1. Ascertain that the scheduled harvest has occurred;
      2. Determine the number of bales for which certification tags or department-approved twine, or both, must be issued; and
      3. Verify that the baled forage is stored or will be stored only in an area where weeds prohibited according to the standards of the North American invasive species management association are not present and producing viable seeds.
  3. If the agriculture commissioner determines that the conditions of subsection 2 have been met, the commissioner shall issue and affix or cause to be affixed on each bale of forage one dated certification tag or shall authorize the use of department-approved twine to bale the forage.

4.1-14-02. Agents of the commissioner - Designation - Training 🗎 PDF 

The agriculture commissioner may designate individuals to serve as agents of the commissioner for the purpose of conducting the inspections permitted by this chapter. To be designated as an agent, an individual must:
  1. Be a weed control officer;
  2. Be a member of a county or a city weed board;
  3. Be determined by the commissioner to have a level of education and experience sufficient to accurately perform the requested certifications; or
  4. At least once every thirty-six months, successfully complete a training program conducted by the commissioner.

4.1-14-03. Reciprocal recognition of certification 🗎 PDF 

The agriculture commissioner may contract with any governmental entity that is responsible for the certification of forage in another state or province and provide for the reciprocal recognition of such certifications.

4.1-14-04. Fees - Continuing appropriation 🗎 PDF 

The agriculture commissioner may set and charge fees for certifying forage in accordance with this chapter. The commissioner shall deposit moneys collected under this chapter in the environment and rangeland protection fund.

Chapter 15 — Northern Crops Institute

4.1-15-01. Northern crops institute - Northern crops council - Powers and duties - Gifts and grants - Continuing appropriation 🗎 PDF 

  1. The northern crops institute is administered by and in conjunction with North Dakota state university.
  2. The northern crops council, in consultation with the president of North Dakota state university, shall appoint the director of the northern crops institute and may remove the director for cause. The director shall manage the institute, hire and compensate necessary personnel within the limits of legislative appropriations, prepare a biennial budget, and serve as executive secretary to the northern crops council. The council shall fix the salary of the director, within the limits of legislative appropriations, in consultation with the president of North Dakota state university.
  3. The president of North Dakota state university may participate in the hiring of a director for the institute, including serving on search committees, advertising, and interviewing and negotiating with candidates.
  4. Funds appropriated to the northern crops institute may not be commingled with funds appropriated to North Dakota state university. Appropriation requests of the northern crops institute must be separate from appropriation requests of North Dakota state university.

4.1-15-02. Northern crops council - Duties - Chairman - Meetings 🗎 PDF 

The northern crops council shall establish policies for the operation of the northern crops institute.
  1. The council consists of:
    1. The agriculture commissioner or the commissioner's designee;
    2. The president of North Dakota state university of agriculture and applied science or the president's designee;
    3. The president and general manager of the North Dakota mill and elevator association;
    4. An individual selected by the North Dakota barley council;
    5. An individual selected by the North Dakota oilseed council;
    6. An individual selected by the North Dakota soybean council;
    7. An individual selected by the North Dakota wheat commission;
    8. No fewer than five nor more than seven individuals who produce northern crops, selected by the members referenced in subdivisions a through g; and
    9. No more than four representatives of industries that process northern crops, selected by the members designated in subdivisions a through g.
    1. The term of office for each member of the council referenced in subdivisions d through i of subsection 1 is three years, and those members are limited to two 3-year terms.
    2. Each term of office begins with the first meeting after the member's appointment.
  3. Annually, the council members shall select one of the individuals referenced in subdivisions d through i of subsection 1 to serve as the chairman.
  4. The council shall meet at least three times annually at the times and places as determined by the council and may meet in special meeting upon the call and notice as may be prescribed by rules adopted by the council.
  5. If a member is unable to attend a meeting of the council, the member may be represented by an individual who has a written proxy from the member.

4.1-15-03. Purpose - Powers and duties 🗎 PDF 

The northern crops institute shall provide technical and marketing assistance through specialized training courses and technical services that facilitate domestic and market development and expanded sales of northern grown crops. The institute shall render services including:
  1. In-plant consultations regarding crop quality problems, product manufacturing, and possible purchasing methods and standards.
  2. Short courses in product milling and processing, plant management, county elevator management, grain grading, and marketing of crops.
  3. Educational and career and technical education training programs in milling, processing, manufacturing, purchasing methods, marketing procedures, product sales techniques, and other related subjects to be conducted for users of northern crops.
  4. Short-term investigations, consultation, evaluation, and research to solve technical problems involved in the maintenance of quality and utilization of northern crops.
  5. Annual surveys and quality analyses of new northern crops and monitoring of the quality and condition of commodities in market channels.
  6. Research on northern crop damage problems and solutions.
  7. Identification of problem areas in marketing northern crops abroad.
  8. Preparation of instructional, informational, and reference publications on the end use, technical aspects of marketing, and utilization of northern crops for distribution domestically and abroad.

4.1-15-04. Gifts and grants - Continuing appropriation 🗎 PDF 

The northern crops institute may contract for and accept private contributions and gifts and grants-in-aid from the federal government, private industry, and other sources. Those funds may be spent only for the purposes of this chapter and for any purposes designated in the gift, grant, or donation and those funds are appropriated on a continuing basis to the northern crops institute for those purposes.

Chapter 16 — Beekeeping

4.1-16-01. Definitions 🗎 PDF 

In this chapter, unless the context otherwise requires:
  1. "Apiary" means the site at which one or more colonies of bees are kept.
  2. "Bee" means a honey-producing insect of the genus Apis, including all stages of its life.
  3. "Beekeeper" means a person who by virtue of ownership or a lease is responsible for the maintenance of bees located in or placed in this state.
  4. "Colony" means a familial group of adult bees consisting of drones, workers, and a queen.
  5. "Hive" means a manmade structure that houses a colony.

4.1-16-02. Beekeeper's license - Application - Declaration 🗎 PDF 

  1. Before a person may act as a beekeeper in this state, the person must be licensed by the agriculture commissioner.
  2. To obtain a beekeeper's license, a person must complete an application and submit it to the commissioner.
  3. The application must include:
    1. The applicant's name, address, and telephone number;
    2. The maximum number of colonies to be located in or placed in this state; and
    3. The name, address, and telephone number of a resident agent who is authorized to accept service of process.
  4. As a condition of licensure, the applicant shall declare that:
    1. An apiary will not be placed at a location without first obtaining the consent of the property owner; and
    2. An apiary will be relocated at the request of the agriculture commissioner if:
      1. The commissioner, after examining documentary evidence, has determined that the health or welfare of an individual is endangered as a result of the apiary's location;
      2. The individual referenced in paragraph 1 resides on land contiguous to that on which the apiary has been placed;
      3. The commissioner has identified another acceptable location for placement of the apiary; and
      4. There are no other contractual or other legal impediments to the relocation.

4.1-16-03. Beekeeper's license - Application of minor - Liability 🗎 PDF 

An individual who is less than eighteen years of age may be licensed as a beekeeper, if that individual's application for license is signed by the individual's parent. Any civil or administrative liability for a violation of this chapter by a beekeeper who is less than eighteen years of age is imputed to the parent who signed the application. The parent is jointly and severally liable with the beekeeper.

4.1-16-04. Beekeeper's license - Transferability - Expiration 🗎 PDF 

  1. A beekeeper's license issued under this chapter is not transferable.
  2. A beekeeper's license issued under this chapter expires on December thirty-first.

4.1-16-05. License - Grounds for denial 🗎 PDF 

  1. The agriculture commissioner may suspend, revoke, or refuse to grant a license to any person who:
    1. Has repeatedly violated this chapter;
    2. Failed to pay an adjudicated civil penalty for violating this chapter, within thirty days after a final determination that the civil penalty is owed; or
    3. Provided false or misleading information in connection with any application or notification required by this chapter.
  2. Any person denied a license under this section may request a hearing before the commissioner within thirty days after the date of the denial.

4.1-16-06. License fee 🗎 PDF 

The fee for a beekeeper's license is five dollars. All fees collected must be deposited in the agriculture commissioner operating fund.

4.1-16-07. Colony assessment 🗎 PDF 

In addition to the license fee required by section 4.1-16-06, an applicant for a license must submit a colony assessment in an amount equal to fifteen cents multiplied by the maximum number of colonies listed in the application. All fees collected must be deposited in the agriculture commissioner operating fund.

4.1-16-08. Apiary location - Notification 🗎 PDF 

  1. Before placing or locating hives in this state, a beekeeper shall notify the agriculture commissioner of:
      1. The location of each apiary to the nearest section, quarter section, township, and range, and, if within the corporate limits of a city, the number or name of the lot, block, and addition in the city; or
      2. The location of each apiary using satellite navigation system coordinates; and
    2. The name of the person who owns or leases the property on which the apiary is located.
  2. The notification required by this section may be provided to the commissioner in written or in electronic format.

4.1-16-09. Identification of apiary 🗎 PDF 

  1. A beekeeper shall identify each apiary for which the beekeeper is responsible by:
    1. Affixing a three-digit identification number, assigned by the agriculture commissioner, that is prominently displayed and visible upon approach to the apiary's main entrance, provided each digit is at least three inches [7.62 centimeters] high, one-half inch [1.27 centimeters] wide, and weather-resistant; and
    2. Displaying the beekeeper's name and phone number in a location that is prominently displayed and visible upon approach to the apiary's main entrance, provided the numbers and letters used are at least one and one-half inches [3.81 centimeters] high and weather-resistant.
  2. Any apiary that is not identified, as required by this section, may be subject to seizure by the commissioner.

4.1-16-10. Unidentified apiary - Notice - Seizure 🗎 PDF 

  1. If the agriculture commissioner determines that an apiary is not identified, as required by section 4.1-16-09, and if after making a reasonable effort the commissioner fails to identify the beekeeper responsible for the apiary, the commissioner shall publish in the official newspaper of the county in which the apiary is located, a notice indicating that at a time certain, all of the colonies, the hives, including their content, and all beekeeping equipment present at the apiary, will be seized and sold at auction or destroyed, unless the beekeeper or other responsible person appears to claim the property and pay for any costs incurred by the commissioner under this section.
  2. A seizure under this section may not occur until at least the sixth day after the date of the published notice.

4.1-16-11. Confiscation and disposal 🗎 PDF 

Except as provided for in section 4.1-16-10, the agriculture commissioner or a law enforcement officer may confiscate bees, hives, or beekeeping equipment, being transported or maintained in violation of this chapter. Any bees, hives, or beekeeping equipment, confiscated under this section, must be disposed of pursuant to a court order or an administrative order issued by the commissioner, unless the beekeeper or other responsible person appears to claim the property and pay any costs incurred by the commissioner due to the confiscation and any civil penalties imposed under this section.

4.1-16-12. Agriculture commissioner - Powers 🗎 PDF 

The agriculture commissioner may:
  1. Assist farmers in identifying beekeepers who provide pollination services; and
  2. Enter upon private land during daylight hours, for the purpose of enforcing this chapter. Except when conducting an inspection in accordance with section 4.1-16-13, the commissioner shall first make a good faith effort to notify the owner of the land or a lessee regarding the entry.

4.1-16-13. Agriculture commissioner - Inspection of apiary - Issuance of certificate 🗎 PDF 

At the request of a beekeeper, the agriculture commissioner shall inspect an apiary for the purpose of issuing a certificate of inspection or other official document or validation. The commissioner may charge a fee to cover the costs of inspecting an apiary under this section.

4.1-16-14. Agriculture commissioner - Inspection of apiary - Noncertification purposes 🗎 PDF 

The agriculture commissioner may:
  1. At the request of a beekeeper, inspect apiaries for any purpose other than the issuance of a certificate of inspection or other official document or validation; and
  2. Charge a fee to cover the costs of inspecting an apiary under subsection 1.

4.1-16-15. Quarantine - Declaration - Hearing - Penalty 🗎 PDF 

    1. If the agriculture commissioner determines that a quarantine of this state or any portion thereof may be necessary to eradicate or control the spread of disease, insects, or pests, within the apicultural industry, the commissioner shall schedule a public hearing on the matter and provide notice of the hearing by publishing its time, place, and date in the official newspaper of each county having land within the proposed quarantine area.
    2. If after the hearing the commissioner orders the imposition of a quarantine, the order must include the date by which or the circumstances under which the commissioner shall lift the quarantine order.
  2. If the commissioner determines that the imposition of an emergency quarantine is necessary to eradicate or control the spread of disease, insects, or pests, within the apicultural industry, the commissioner may impose such an order for a period not exceeding fourteen days. Within the fourteen-day period, the commissioner shall hold a public hearing as provided for in subsection 1 and determine whether a quarantine order under subsection 1 should be imposed.
  3. Following the establishment of a quarantine, the movement of any colonies, hives, or other beekeeping equipment, described in the quarantine order, is subject to the order.
  4. For purposes of this section, "insects" include Africanized honeybees.

4.1-16-16. Service of process 🗎 PDF 

If neither the beekeeper nor the beekeeper's registered agent can be located for the purpose of serving process, in connection with a violation of this chapter or rules adopted to implement this chapter, the agriculture commissioner becomes the statutory agent for service of process and any service upon the commissioner is deemed to be complete.

4.1-16-17. Penalties 🗎 PDF 

  1. A person violating this chapter is guilty of a class A misdemeanor.
  2. In addition to criminal sanctions that may be imposed pursuant to subsection 1, a person found to have violated this chapter or rules adopted under this chapter is subject to a civil penalty not to exceed five thousand dollars per violation. The civil penalty may be adjudicated by a court or by the agriculture commissioner through an administrative hearing pursuant to chapter 28-32.
  3. The commissioner may maintain a civil action in the name of the state against any person violating this chapter.
  4. The violation of any condition of licensure, as set forth in section 4.1-16-02, is deemed to be a violation of this chapter.

4.1-16-18. Beekeeping - Agricultural practice 🗎 PDF 

Beekeeping is deemed to be an agricultural practice.

Chapter 17 — Ginseng

4.1-17-01. Ginseng - Rules - Certificates 🗎 PDF 

  1. The agriculture commissioner may implement rules relating to the management and harvesting of ginseng, including the registration of persons buying or selling ginseng, the creation and maintenance of records, inspection requirements, and the issuance of any certificates or other documents required in accordance with state or federal law.
  2. For purposes of this section, "ginseng" means Panax quinquefolius L. and includes ginseng seeds, tissue culture, live root, and dried root.

Chapter 18 — Industrial Hemp

This chapter has been repealed. 🗎 PDF

Chapter 18.1 — Hemp

4.1-18.1-01. Definitions 🗎 PDF 

  1. "Broad spectrum" means hemp extract or hemp commodity or product containing naturally occurring hemp-derived cannabinoids, terpenes, and other naturally occurring compounds, but where tetrahydrocannabinol has been removed to nondetectable levels using a fit-for-purpose method, with a total tetrahydrocannabinol level not to exceed an amount determined by the commissioner.
  2. "Chemically derived cannabinoid" means a chemical substance created by a chemical reaction that changes the molecular structure of any chemical substance derived from the plant cannabis. The term does not include cannabinoids produced by decarboxylation from a naturally occurring cannabinoid acid without the use of a chemical catalyst.
  3. "Full spectrum" means hemp extract or hemp commodity or product containing naturally occurring hemp-derived cannabinoids, terpenes, and other naturally occurring compounds, processed without intentional complete removal of any compound and without the addition of isolated cannabinoids, with a total tetrahydrocannabinol level not to exceed an amount determined by the commissioner.
  4. "Hemp" means the plant cannabis sativa L. and any part of the plant, including the seeds and flowers, whether growing or not, with a total tetrahydrocannabinol concentration in an amount determined by the commissioner. The term does not include hemp extract, commodity or product using hemp, or a hemp substance or product prohibited by this chapter.
  5. "Hemp commodity or product" means a product made from hemp or hemp extract, including cloth, cordage, fiber, food, fuel, paint, paper, particleboard, plastics, seeds, seed meal, and seed oil for consumption, a hemp tincture, and a hemp topical.
    1. The term includes:
      1. Hemp processed through retting or other processing such that it is a suitable fiber for textiles, rope, paper, hempcrete, or other building or fiber materials;
      2. Hemp seed processed such that it is incapable of germination and processed such that is suitable for human consumption;
      3. Hemp seed pressed or otherwise processed into oil;
      4. Cannabidiol, also known as CBD, products and cannabigerol, also known as CBG, including broad spectrum, full spectrum, and isolate products, with a total tetrahydrocannabinol level not to exceed an amount determined by the commissioner; and
      5. A hemp commodity or product approved in writing by the agriculture commissioner.
    2. The term does not include:
      1. Hemp that has been chopped, separated, or dried for purposes of transfer or storage;
      2. A chemical compound extracted from hemp used to formulate, process, or otherwise make an inhalant;
      3. A product containing delta-8 tetrahydrocannabinol, also known as delta-8 THC;
      4. A product containing chemically derived cannabinoids, including:
        1. Tetrahydrocannabinol acetate, also known as THC-O-Acetate and THC-O;
        2. Hexahydrocannabinol, also known as HHC; and
        3. Tetrahydrocannabiphorol, also known as THCP; or
      5. A psychotropic hemp commodity or product disapproved in writing by the commissioner.
  6. "Hemp extract" means a concentrate or extract obtained by separating cannabinoids from hemp by a mechanical, chemical, or other process. The term does not include hemp seed pressed or otherwise processed into oil.
  7. "Hemp tincture" means a solution that may not exceed thirty milliliters consisting of:
    1. At least twenty-five percent of non-denatured alcohol, in addition to a hemp extract, and other ingredients intended for human consumption or ingestion; or
    2. Glycerin or plant-based oil and hemp extract, and is intended for human consumption or ingestion.
  8. "Hemp topical" means a hemp commodity or product intended to be applied to the skin or hair. The maximum concentration or amount of total tetrahydrocannabinol permitted in a hemp topical is fifty milligrams per container.
  9. "Isolate" means hemp extract or hemp commodity or product comprised of a single cannabinoid compound.
  10. "Tetrahydrocannabinol" means delta-9 tetrahydrocannabinol and any structural, optical, or geometric isomers of tetrahydrocannabinol, including:
    1. Delta-7 tetrahydrocannabinol;
    2. Delta-8 tetrahydrocannabinol; or
    3. Delta-10 tetrahydrocannabinol.
  11. "Total tetrahydrocannabinol" means the sum of the percentage, by weight, of tetrahydrocannabinolic acid multiplied by eight hundred seventy-seven thousandths plus the percentage of weight of tetrahydrocannabinol.

4.1-18.1-01.1. Administrative rules 🗎 PDF 

The commissioner may adopt and amend rules consistent with this chapter governing the sale, distribution, testing, labeling, and regulation of hemp and hemp commodities or products, and substances and products prohibited by this chapter.

4.1-18.1-02. Hemp - Licensure 🗎 PDF 

Any person desiring to grow or process hemp shall apply to the agriculture commissioner for a license on a form prescribed by the commissioner. A license must be obtained before a person purchases or obtains hemp material for planting or propagation. The applicant is responsible for anyone working under the applicant's license for all sections of this chapter.
  1. The application for a license must include the name and address of the applicant, and the legal description of the land area to be used to produce or process hemp.
  2. The commissioner shall require each applicant for initial licensure to submit to a statewide and nationwide criminal history record check. The nationwide criminal history record check must be conducted in the manner provided in section 12-60-24. All costs associated with the criminal history record check are the responsibility of the applicant.
  3. Criminal history records provided to the commissioner under this section are confidential. The commissioner may use the records only in determining an applicant's eligibility for licensure.
  4. The commissioner shall deny licensure to any person convicted of a felony relating to a controlled substance under state or federal law in the last ten years.
  5. If the applicant has completed the application process to the satisfaction of the commissioner, the commissioner shall issue the license. A license issued under this chapter expires December thirty-first.
  6. An application for a license under this subsection may be submitted to the commissioner anytime before the purchase of hemp seed or viable propagation material.

4.1-18.1-03. License fee 🗎 PDF 

The commissioner shall assess each producer and processor a fee not to exceed three hundred fifty dollars. The commissioner shall deposit fees collected under this chapter in the commissioner's operating fund which are appropriated to the commissioner on a continuing basis for the purpose of enforcing this chapter.

4.1-18.1-04. License - Grounds for denial 🗎 PDF 

  1. The agriculture commissioner may deny or revoke a license to any person who:
    1. Repeatedly violates this chapter;
    2. Provides false or misleading information in connection with any application required by this chapter; or
    3. Has been convicted of a felony, as described in section 4.1-18.1-02, since the most recent criminal history background check.
  2. Any person denied a license under this section may request a hearing before the commissioner within thirty days after the date of the denial.

4.1-18.1-04.1. Commissioner - Authority - Tetrahydrocannabinol concentration 🗎 PDF 

The commissioner shall determine the total tetrahydrocannabinol concentration under this chapter up to an amount not to exceed the federal Agriculture Improvement Act of 2018 [Pub. L. 115-334; 132 Stat. 4490] and federal domestic hemp production program regulations under title 7, Code of Federal Regulations, part 990.

4.1-18.1-04.2. Hemp testing - Fee - Exemption 🗎 PDF 

  1. The commissioner may charge a fee of up to one hundred twenty-five dollars to inspect, sample, and test hemp under this chapter.
  2. The commissioner shall deposit fees collected under this section in the commissioner's operating fund.
  3. The provisions of chapter 54-44.4 do not apply to hemp testing under this section.

4.1-18.1-04.3. Prohibited acts - Licensee 🗎 PDF 

A licensee may not:
  1. Chemically modify or convert a hemp extract, or engage in any process that converts cannabidiol into delta-9, delta-8, delta-10-tetrahydrocannabinol, or other tetrahydrocannabinol isomers, analogs, or derivatives; and
  2. Sell or distribute hemp or hemp commodities or products that contain chemically derived cannabinoids or were created by chemically modifying or converting a hemp extract.

4.1-18.1-04.4. Hemp commodities or products - Allowable products - Retailers 🗎 PDF 

  1. A person may only sell hemp and hemp commodities or products allowed under this chapter. All hemp and hemp commodities or products must undergo testing and report in a certificate of analysis and in the product label the testing results of the total tetrahydrocannabinol concentration amount. The certificate of analysis must be made available to the commissioner upon request.
  2. A person may not sell hemp, or hemp commodities or products that contain chemically derived cannabinoids or delta-8 tetrahydrocannabinol.
  3. All other cannabis- or hemp-derived products that are not allowable hemp commodities or products under this chapter must be regulated in accordance with chapter 19-24.1.
  4. All hemp commodities or products sold pursuant to this section must comply with all product labeling rules as mandated by the Food, Drug, and Cosmetic Act [21 U.S.C. 9 et seq.] and related administrative rules, both the Act and rules incorporated by reference.
  5. Under the Food, Drug, and Cosmetic Act [21 U.S.C. 9 et seq.], incorporated by reference, non-food and drug administration approved hemp-derived products may not be sold as dietary supplements, food or beverage products, or marketed with medical claims.

4.1-18.1-05. Violations 🗎 PDF 

  1. A producer found in violation of this chapter for negligently failing to provide the legal description of the land where the producer is growing hemp, failing to obtain a license, or by producing hemp with a total tetrahydrocannabinol concentration greater than the amount determined by the commissioner is subject to:
    1. Meeting a deadline set by the commissioner to come into compliance with this chapter; and
    2. Additional reporting requirements set by the commissioner for a period of no less than two years.
  2. An applicant or person licensed to grow hemp under this chapter found in violation of the chapter with a culpable mental state greater than negligence must be reported to the attorney general.

4.1-18.1-06. Confiscation and disposal 🗎 PDF 

  1. Any hemp found to be in violation of this chapter is subject to confiscation and disposal by the commissioner.
  2. Any disposal-related costs will be the responsibility of the producer, owner, or person responsible for the hemp.
  3. The commissioner is not liable for any destruction of hemp or hemp products carried out under this chapter.

4.1-18.1-07. Commissioner powers 🗎 PDF 

The commissioner may enter on any land or areas where hemp is grown, stored, or processed for the purposes of inspections, sample collection, testing, or investigation for the purposes of enforcing this chapter.

4.1-18.1-07.1. Powers of commissioner 🗎 PDF 

If the commissioner reasonably suspects a person is about to engage in, has engaged in, or is engaging in, a violation of this chapter, the commissioner may:
  1. Require the person to file, on forms the commissioner prescribes, a statement or report in writing, under oath or otherwise, of all the facts and circumstances concerning the creation, sale, distribution, or advertisement of the hemp commodity or product by the person, as well as other data;
  2. Examine under oath the person in connection with the creation, sale, distribution, or advertisement of any hemp commodity or product;
  3. Examine any merchandise or sample, record, book, document, account, or paper concerning the creation, sale, distribution, or advertisement of hemp commodity or product by the person; and
  4. Pursuant to an order of a district court, seize and retain any merchandise or sample, record, book, document, account, paper, or other evidence as authorized by the order.

4.1-18.1-08. Hemp - Research 🗎 PDF 

  1. Any researcher associated with or operating under an institution under the control of the state board of higher education is exempt from obtaining a license described under section 4.1-18.1-02 to grow hemp. A researcher shall notify the commissioner of the researcher's intent to plant hemp and provide the following information to the commissioner:
    1. The name and contact information of the primary investigator; and
    2. The legal description of all land where hemp will be grown as part of the project.
  2. The research institution shall ensure the primary investigator and all other project participants meet the criminal history background restrictions in section 4.1-18.1-02.

4.1-18.1-09. Subpoena - Hearing 🗎 PDF 

To regulate compliance with this chapter, the commissioner, in addition to other powers conferred upon the commissioner by this chapter, may issue subpoenas to any person, administer an oath or affirmation to any person, and conduct hearings in aid of any investigation or inquiry.

4.1-18.1-10. Failure to supply information or obey subpoena 🗎 PDF 

If a person fails or refuses to file any statement or report requested by the commissioner, or obey any subpoena issued by the commissioner, the commissioner may, after notice, apply to a district court and request an order:
  1. Granting injunctive relief, restraining the creation, sale, distribution, or advertisement of any hemp commodity or product merchandise by a person;
  2. Vacating, annulling, or suspending the charter of a for-profit or nonprofit corporation or limited liability company created by or under the laws of this state or revoking or suspending the certificate of authority to do business in this state of a foreign corporation or limited liability company or revoking or suspending any other licenses, permits, or certificates issued pursuant to law to a person which are used to violate this chapter; and
  3. Granting such other relief as may be required.

4.1-18.1-11. Assurance of voluntary compliance 🗎 PDF 

The commissioner may accept an assurance of voluntary compliance for an act or practice the commissioner determines may be in violation of this chapter, from any person the commissioner alleges is about to engage in, engaging in, or has engaged in the violation. The assurance of voluntary compliance must be in writing and must be filed with and is subject to the approval of the district court of the county in which the alleged violator resides or has as a principal place of business, conducts business, or in Burleigh County.

4.1-18.1-12. Remedies - Injunction - Other relief - Receiver - Cease and desist orders - Civil penalties - Costs recoverable in adjudicative proceedings 🗎 PDF 

  1. If the commissioner reasonably suspects a person is about to engage in, has engaged in, or is engaging in a practice in violation of this chapter, the commissioner may seek and obtain in an action in a district court an injunction enjoining the person from engaging in the violation, continuing the violation, or doing any act in furtherance of the violation after proper notice to the person. The notice must state generally the relief sought and be served at least ten days before the hearing of the action.
  2. If the commissioner reasonably suspects a person is about to engage in, has engaged in, or is engaging in a violation of this chapter, and the person is about to conceal assets that may have been acquired in violating this chapter, conceal oneself, or leave the state, the commissioner may apply to the district court, ex parte, for an order appointing a receiver of the assets of the person.
  3. Upon a showing made by affidavit or other evidence that shows reasonable grounds the person is about to engage in, has engaged in, or is engaging in a violation of this chapter and the person is about to conceal assets that may have been acquired in violating this chapter, conceal oneself, or leave the state, the court shall order the appointment of a receiver to receive the assets of the person. From the received assets, the court may make an order or judgment necessary to restore to another person who has suffered damages due to another person violating this chapter any money or property.
  4. If the commissioner reasonably suspects a person is about to engage in, has engaged in, or is engaging in a violation of this chapter, or by an order of the commissioner issued under this chapter, the commissioner, without notice and hearing, may issue a cease and desist order.
    1. In addition to any other remedy authorized by this chapter, the commissioner may impose by order and collect a civil penalty against a person found in an adjudicative proceeding to have violated a cease and desist order issued pursuant to this section, in an amount not more than five thousand dollars for each violation.
    2. The person may request a hearing before the commissioner if a written request is made within ten days after the receipt of the order. Unless otherwise specifically provided, an adjudicative proceeding under this section must be conducted in accordance with chapter 28-32.
    3. If the commissioner prevails in an adjudicative proceeding pursuant to this section, the commissioner may assess the nonprevailing person for all adjudicative proceeding and hearing costs, including reasonable attorney's fees, investigation expenses, costs, and other expenses of the investigation and action.

4.1-18.1-13. Powers of receiver 🗎 PDF 

  1. When a receiver is appointed by the court pursuant to this chapter, the receiver may sue for, collect, receive, or take into possession all the goods and chattels, rights and credits, moneys and effects, lands and tenements, books, records, documents, papers, choses in action, bills, notes, and property of every description, derived by means of a violation of this chapter, including property with which the property has been commingled if it cannot be identified in kind because of the commingling, and sell, convey, and assign the property and hold and dispose of the proceeds under the direction of the court.
  2. A person who has suffered damages due to another person violating this chapter and submits proof to the satisfaction of the court that the person has in fact been damaged may participate with general creditors in the distribution of the assets to the extent the person has sustained losses. The court has jurisdiction of all questions arising in these proceedings and may make orders and judgments as necessary.

4.1-18.1-14. Costs recoverable 🗎 PDF 

If the commissioner prevails in an action brought to district court under this chapter, the court shall award the commissioner reasonable attorney's fees, investigation expenses, costs, and other expenses associated with the action. All attorney's fees, investigation expenses, costs, and other expenses received by the commissioner under this section must be deposited into the attorney general's general operating fund.

4.1-18.1-15. Civil penalties 🗎 PDF 

The court may assess for the benefit of the state a civil penalty of not more than five thousand dollars for each violation of this chapter. The penalty provided in this section is in addition to those remedies otherwise provided by this chapter. The penalty must be awarded to the commissioner and deposited into the commissioner's general operating fund for use in regulating compliance with this chapter.

Chapter 19 — Eggs And Poultry

4.1-19-01. Definitions 🗎 PDF 

As used in this chapter:
  1. "Eggs" means eggs in the shell which are the product of a domesticated poultry.
  2. "Poultry" means domesticated fowl bred for the primary purpose of producing eggs, meat, or both, including chickens, turkeys, ostriches, emus, rheas, cassowaries, waterfowl, and game birds, but excluding doves and pigeons.

4.1-19-02. Administration - Enforcement 🗎 PDF 

The agriculture commissioner shall administer and enforce this chapter.

4.1-19-03. Purposes - Duties 🗎 PDF 

The agriculture commissioner shall:
  1. Promote improved poultry breeding practices and cooperate with the board of animal health in controlling and eradicating contagious or infectious diseases of poultry.
  2. Act as the official state agency for North Dakota in cooperation with the veterinary services, animal plant health inspection service, and United States department of agriculture, for the purpose of furthering the objectives and supervising the state's participation in the national poultry improvement plan.
  3. Promote the welfare and improvement of the poultry industry and the marketing of poultry and poultry products within the state.
  4. Adopt rules under chapter 28-32 as necessary to effectuate the purposes of this chapter.

4.1-19-04. Licensing - Fees - Bonding 🗎 PDF 

Repealed by S.L. 2025, ch. 81, § 3.

4.1-19-05. Penalty 🗎 PDF 

  1. A person in violation of this chapter or rule adopted under this chapter may be subject to a civil penalty not to exceed one thousand dollars for each violation. The civil penalty may be adjudicated by the courts or by the agriculture commissioner through an administrative hearing conducted by an independent hearing officer pursuant to chapter 28-32.
  2. The agriculture commissioner may maintain an appropriate civil action in the name of the state against any person violating this chapter or rule adopted under this chapter.
  3. For purposes of this section, "person" means an individual, partnership, corporation, limited liability company, association, cooperative, or any business entity.

4.1-19-06. Egg dealers to be registered - Exemption 🗎 PDF 

  1. All eggs sold or offered for sale other than to an end consumer in this state must be candled, labeled, and meet all other requirements as the commissioner deems necessary. All eggs sold or offered for sale to an end consumer are exempt from this requirement.
  2. The agriculture commissioner may adopt appropriate rules under chapter 28-32 to provide for registration of egg dealers and standards for candling, grading, and inspecting eggs as to size, quality, purity, strength, holding requirements, transportation, labeling, and sanitation in conformity with United States department of agriculture regulations governing the grading and inspecting of eggs.

Chapter 20 — Soil Conservation

4.1-20-01. Policy and scope of chapter 🗎 PDF 

It is the policy of this state and within the scope of this chapter to provide for the conservation of the soil and soil resources of this state and for the control and prevention of soil erosion, and to preserve the state's natural resources, control floods, prevent impairment of dams and reservoirs, assist in maintaining the navigability of rivers, preserve wildlife, protect the tax base, protect public lands, and protect and promote the health, safety, and general welfare of the people of this state.

4.1-20-02. Definitions 🗎 PDF 

In this chapter, unless the context otherwise requires:
  1. "Committee" means the state soil conservation committee.
  2. "Director" means the director of the North Dakota state university extension service.
  3. "District" means a political subdivision of this state organized as a soil conservation district under this chapter.
  4. "Due notice" means notice published at least twice, with at least seven days between publications, in a newspaper or other publication of general circulation within the appropriate area.
  5. "Government" includes the government of this state, the government of the United States, and any subdivision, agency, or instrumentality, corporate or otherwise, of either of them.
  6. "Land occupier" includes any person that holds title to or is in possession of any lands lying within a district.
  7. "Qualified elector" means an individual who is at least eighteen years old, is a citizen of the United States, and has resided in the precinct thirty days next preceding the election.
  8. "Supervisor" means one of the members of the governing body of a district, elected or appointed, in accordance with this chapter.

4.1-20-03. State soil conservation committee - Elective and appointive members - Records and seal 🗎 PDF 

  1. The committee shall perform the functions conferred upon it in this chapter within the limits of legislative appropriations. The committee consists of seven voting members. Five members must be elected and two must be appointed by the governor.
  2. For the purpose of electing the five elective members of the committee, the state is divided into five areas.
      1. Area I includes Benson, Cavalier, Eddy, Foster, Grand Forks, Nelson, Pembina, Ramsey, Towner, Walsh, and Wells Counties.
      2. Area II includes Barnes, Cass, Dickey, Griggs, LaMoure, Ransom, Richland, Sargent, Steele, and Traill Counties.
      3. Area III includes Bottineau, Burke, Divide, McHenry, Mountrail, Pierce, Renville, Rolette, and Ward Counties.
      4. Area IV includes Burleigh, Emmons, Kidder, Logan, McIntosh, McLean, Morton, Oliver, Sheridan, Sioux, and Stutsman Counties.
      5. Area V includes Adams, Billings, Bowman, Dunn, Golden Valley, Grant, Hettinger, McKenzie, Mercer, Stark, Slope, and Williams Counties.
    2. One member of the committee must be elected from each of the five areas by vote of the members of the boards of supervisors of the districts in that area. Every voting member of a board of supervisors of a district organized under this chapter is eligible to vote in the election for a member of the committee in the area in which the district is located.
    3. Elections must be held under rules adopted by the committee and in cooperation with and at the time of the North Dakota association of soil conservation districts area meetings. If the district does not lie wholly within the boundaries of one of the five areas established under this section, the rules must provide for the assignment of the district by the committee, for the purposes of the elections, to the area within which most of its population resides.
    4. The committee shall conduct the election of members of the committee. The election need not be held on the same dates or in the same places as the general elections for state or local officers.
  3. The governor shall appoint two members of the committee. The governor shall appoint individuals who can represent those interests within the state not already represented, or less fully represented, by one or more of the five elected members of the committee. The governor shall attempt, so far as feasible, to make possible suitable representation for all interests in the state in the membership of the committee, including the interests of farmers, livestock growers, rural areas, small and large cities, and industry and business, recognizing that any single member of the committee may sometimes appropriately be regarded as representing more than one of these interests.
  4. The committee shall invite representatives of the state association of soil conservation districts, North Dakota state university extension service, soil conservation service, state water commission, agriculture commissioner, and game and fish department to serve as advisory, nonvoting members of the committee.
  5. The term of office of every member of the committee is three years and until a successor is elected or appointed. A member of the committee is eligible for re-election and reappointment, but no member may serve for more than two full, successive terms. The governor may fill a vacancy in either an elective or appointive term for the unexpired term.

4.1-20-04. Committee - Chairman - Quorum - Compensation 🗎 PDF 

The committee shall meet annually and select its chairman, who shall serve until a successor is selected and takes office. An individual may be selected as chairman for a total of three terms. Additional meetings may be held by the committee as considered necessary by the chairman, at a time and place to be fixed by the chairman. The chairman shall call special meetings upon written request of any four members. The members of the committee are entitled to receive one hundred thirty-five dollars per day as compensation for their services on the committee, and are entitled to expenses, including traveling expenses, necessarily incurred in the discharge of their duties on the committee, in the same manner and at the same rate as prescribed by law for state employees and officials.

4.1-20-05. Duties and powers generally 🗎 PDF 

The committee has the following duties and powers:
  1. To offer such assistance as may be appropriate to the supervisors of districts in the carrying out of any of their powers and programs.
  2. To keep the supervisors of each of the several districts informed of the activities and experience of all other districts, and to facilitate an interchange of advice and experience among such districts and cooperation among them.
  3. To secure the cooperation and assistance of state, federal, regional, interstate, and local, public, and private agencies with districts and to facilitate arrangements under which districts may assist or serve county governing bodies and other agencies in the administration of any activity concerned with the conservation of natural resources.
  4. To review agreements, or forms of agreements, proposed to be entered into by districts with other districts or with state, federal, interstate, or other public or private organizations, and advise the districts concerning such agreements or forms of agreement.
  5. To recommend to the director biennial budgets necessary to finance the activities of the committee and districts and to distribute moneys appropriated by the legislative assembly for grants to soil conservation districts.
  6. To represent the state in matters affecting soil conservation.
  7. To require annual reports from districts.
  8. To establish uniform accounting methods that must be used by districts, and to establish a uniform auditing reporting system.
  9. To receive from other state and local agencies for review and comment suitable descriptions of their plans, programs, and activities affecting the conservation of natural resources for purposes of coordination with district conservation programs; arrange for and participate in conferences necessary to avoid conflict among such plans and programs; call attention to omissions; and avoid duplication of effort.

4.1-20-06. Extension service assistance to state soil conservation committee - Duties 🗎 PDF 

The North Dakota state university extension service shall assist the committee in performing the committee's duties, within the limits of legislative appropriation. The director shall instruct extension agents to cooperate in the delivery of information and services to the districts.

4.1-20-07. Districts - Petition - Contents - More than one petition filed 🗎 PDF 

  1. Any twenty-five qualified electors living within the limits of the area proposed to be organized into a district may file a petition with the state soil conservation committee asking that a soil conservation district be organized in the area described in the petition. The petition must set forth:
    1. The proposed name of the district.
    2. The need for a soil conservation district to function in the area described in the petition.
    3. A description of the area proposed to be organized as a district.
    4. A request that the state soil conservation committee duly define the boundaries for the district, that an election be held within the defined area on the question of the creation of a soil conservation district in that area, and that the committee determine that such a district be created.
  2. When more than one petition is filed covering parts of the same area, the state soil conservation committee may consolidate all or any of such petitions.

4.1-20-08. Hearings on petitions - When held - Notice - Determinations 🗎 PDF 

  1. Within thirty days after a petition under section 4.1-20-07 has been filed, the state soil conservation committee shall cause publication of due notice of a hearing on the desirability of creation of a soil conservation district, the appropriate boundaries to be assigned to the district, the propriety of the petition and the other proceedings taken under this chapter, and upon all other relevant questions. All qualified electors living within the area described in the petition, and of lands within any area considered for addition to the area described in the petition, and all other interested parties have the right to attend and be heard at the hearing. If it appears at the hearing that it may be desirable to include within the proposed district additional area outside of the area within which due notice of hearing has been given, the hearing must be adjourned and due notice of further hearing must be given throughout the entire area considered for inclusion in the district, and further hearing must be held.
  2. If the committee determines, upon the facts presented at the hearing and upon other available relevant facts and information, there is need, in the public interest, for a soil conservation district to function in the area considered at the hearing, the committee shall record that determination and define the district boundaries by metes and bounds or legal subdivisions. In making the determination and defining the boundaries, the committee shall give due weight and consideration to:
    1. The topography of the area considered and of the state;
    2. The composition of soils, distribution of erosion, prevailing land use practices, and desirability and necessity of including within the boundaries the area under consideration;
    3. The benefits the area may receive from being included within such boundaries;
    4. The relation of the proposed area to existing watersheds and agricultural regions, and to other soil conservation districts already organized or proposed for organization under this chapter; and
    5. Any other relevant physical, geographic, and economic factors, having due regard to the legislative policy set forth in section 4.1-20-01.
  3. If the committee determines, after the hearing and due consideration of the relevant facts, there is no need for a soil conservation district to function in the area considered at the hearing, the committee shall record that determination and deny the petition. After six months has expired from the date of the denial of that petition, a subsequent petition covering the same or substantially the same area may be filed and a new hearing held and new determinations made.

4.1-20-09. Election - When held - Contents of ballot - Who may vote 🗎 PDF 

After the committee has determined the necessity for the organization of a district and has defined the boundaries of the proposed district, the committee shall hold an election within the proposed district upon the creation of the proposed district and shall cause due notice of the election to be given. The question must be submitted by ballot in substantially the following form: Shall a soil conservation district be created embracing lands situated in the counties of __________ and __________ and described as follows: (Here inserting description). Yes ☐ No ☐ All qualified electors residing within the boundaries of the proposed district are entitled to vote in the election.

4.1-20-10. Publication of election results - Determination of feasibility of operation of district 🗎 PDF 

The committee shall publish the results of any election. If a majority of the votes cast are in favor of the creation of a district, the committee shall determine whether the operation of a district within the boundaries specified on the election is administratively feasible. In making that determination, the committee shall consider such factors, objects, and other determinations as to accomplish the policy and scope of this chapter as set forth in section 4.1-20-01.

4.1-20-11. District determined feasible - Statement filed with secretary of state 🗎 PDF 

If the committee determines the operation of a proposed district is administratively feasible, the committee shall file with the secretary of state a certified statement identifying the boundaries and name of that district. The statement must include the reasons for the formation of the district and the result of the election.

4.1-20-12. District to be a political subdivision - Boundaries of district 🗎 PDF 

Upon the certification by the committee to the secretary of state under section 4.1-20-11, the district becomes a political subdivision of the state and a body corporate and politic. The secretary of state shall issue to the committee a certificate of the due organization of the district under the seal of the state and record the certificate with the application and statement. The boundaries of the district include the area as determined by the committee, but may not include any area included within the boundaries of another soil conservation district.

4.1-20-13. Petition to include additional area within existing district 🗎 PDF 

Petitions to include additional area within an existing district may be filed with the committee at any time, and the proceedings provided in connection with a petition to organize a district must be observed in the case of a petition for such inclusion. A portion of a district may upon petition of a majority of the qualified electors in that portion, and without an election, be annexed to an adjoining district, and become a part of that adjoining district upon filing the petition with the state soil conservation committee.

4.1-20-14. Districts presumed to be organized legally - Copy of certificates as evidence 🗎 PDF 

In any suit, action, or proceeding involving or relating to the validity or enforcement of any contract, proceeding, or action of a district, the district is deemed to have been established in accordance with the provisions of this chapter, upon proof of the issuance of the certificate of organization by the secretary of state. A copy of the certificate, when duly certified by the secretary of state, is admissible in evidence in any suit, action, or proceeding and is proof of the filing and its contents.

4.1-20-15. Notice to file nominating petitions and of election of district supervisors 🗎 PDF 

As soon as practicable after the issuance by the secretary of state of the certificate of organization of a soil conservation district, and before the next general election, the committee shall give notice that nominating petitions may be filed with the county auditor, and that at the next general election held in the district three supervisors must be elected, who must be land occupiers of the district and who constitute the governing body of the district.

4.1-20-16. Nominating petitions - Petitions required - Final filing date 🗎 PDF 

  1. Any individual running for the office of supervisor shall present to the county auditor of the county in which the district lies a petition giving that individual's name and mailing address and the title and term of the office, and containing the signatures of not less than twenty-five nor more than three hundred qualified electors of the district. When a district lies in more than one county, the petition must be filed with the county auditor of the county where the candidate resides, and that county auditor shall certify to the county auditors of the other counties in which the district lies the name and mailing address of the candidate filing such petition.
  2. An individual may not participate directly or indirectly in the nomination for more than one individual for each office to be filled. The final filing date for nominating petitions is no later than four p.m. sixty-four days before the day of the election.
  3. Upon receipt of the petition or the certification as provided in this section, the county auditor shall place, without fee, the name of the candidate so nominated on the no-party ballot at the ensuing general election.

4.1-20-17. Regular election of district - When held - Regulations governing 🗎 PDF 

The regular election of soil conservation districts must be held at the same time, and at the same place, as the general election is held. All qualified electors in the district may vote in any regular election of the district. Any land occupier living in the district desiring to be a candidate for the office of supervisor at a district election and who has failed to file a nominating petition may campaign and be elected as a write-in candidate for the office.

4.1-20-18. Supervisors - Terms of office - Vacancies - Removal - Compensation - Expenses 🗎 PDF 

  1. At each general election, one district supervisor must be elected for a term of six years, or until the successor is duly elected and qualified, to each expiring or vacant term. The county auditor of the county or counties in which the district lies shall canvass the returns and issue certificates of election under chapter 16.1-15. When a district lies in more than one county, the county auditor of the county in which the candidate resides shall issue the certificate of election.
  2. To be eligible for election to the office of district supervisor, candidates must be land occupiers and physically living in the district. Candidates must be elected on a nonpartisan ballot. If the office of any supervisor becomes vacant, the remaining members of the board of supervisors, with the advice and consent of the committee, shall fill the vacancy by appointment. If vacancies occur in the office of two supervisors, the remaining supervisor and the committee shall fill the vacancy. If the offices of all supervisors of a district become vacant, the committee shall fill the vacancies by appointment. A supervisor appointed to fill a vacancy holds office until the next general election. A supervisor elected to fill a vacancy serves the balance of the unexpired term in which the vacancy occurred.
  3. Upon resolution of the three elected supervisors, a soil conservation district, may appoint two additional supervisors who shall serve for a term of one year from the date of appointment. Those supervisors must be appointed by a majority of the three elected supervisors and have all the powers, voting privileges, duties, and responsibilities of elected supervisors, except that the expense allowances of the appointed supervisors must be paid by the local soil conservation district concerned. As far as possible, the appointed supervisors shall represent interests within the district which are not represented by the elected supervisors.
  4. After notice given and hearing held in accordance with chapter 28-32, a supervisor of a soil conservation district may be removed from office by the committee.
    1. Upon a majority vote of the supervisors, while performing duties as a member, the soil conservation district board shall provide to each member:
      1. Compensation of at least seventy-five dollars per day but not more than the rate set for a member of the legislative assembly under section 54-03-20;
      2. An allowance for meals and lodging at the rate set in section 44-08-04; and
      3. Mileage and travel expenses at the rate set in section 54-06-09.
    2. All compensation and expenses under this subsection must be paid from district funds.

4.1-20-19. Soil conservation district supervisors - Training 🗎 PDF 

As soon as practicable after an individual is elected or appointed to the position of a soil conservation district supervisor, the individual shall attend a training session delivered by the state soil conservation committee, and the individual shall attend or participate in annual training as determined by the state soil conservation committee.

4.1-20-20. Supervisors may employ assistants - Attorney general and state's attorneys to advise - Reports to committee 🗎 PDF 

The supervisors may employ necessary permanent and temporary officers, agents, or employees, and shall determine their qualifications, duties, and compensation. The supervisors may call upon the attorney general or the state's attorney of any county in which the district is situated for those legal services as the supervisors may require. The supervisors may delegate to their chairman or to any of their number such duties as they may deem proper and shall furnish to the committee, upon request, copies of any ordinances, rules, regulations, orders, contracts, or other documents the supervisors adopt or employ, and any other information concerning their activities as the committee may require.

4.1-20-21. Assistance for district supervisors 🗎 PDF 

Upon request of the supervisors of a soil conservation district, a board of county commissioners may assign an employee or employees of the county to assist the supervisors in the performance of the supervisors' duties authorized by this chapter. The board of county commissioners of each county within a soil conservation district may provide assistance for the supervisors. The duties of the employee or employees are under the direct supervision of the supervisors of the soil conservation district.

4.1-20-22. Supervisors to provide for surety bonds, keeping records, and annual audit 🗎 PDF 

The supervisors shall provide for the execution of surety bonds for all employees and officers who are entrusted with funds or property of the district, for the keeping of a full and accurate record of all the supervisors' proceedings and of all resolutions, regulations, and orders issued or adopted by the supervisors, and for an annual audit of the accounts of receipts and disbursements of the district. The surety bonds provided for in this section may be issued by the state bonding fund.

4.1-20-23. Supervisors may consult city or county representatives 🗎 PDF 

The supervisors may invite the governing body of any city or county located within or near the district to designate a representative to advise and consult with the supervisors on issues that may affect the property, water supply, or other interests of the city or county.

4.1-20-24. Powers and duties of districts and supervisors 🗎 PDF 

  1. A soil conservation district may exercise the public powers ordinarily exercised by a political subdivision of the state, and the district and the supervisors of the district have the following powers in addition to those granted in other sections of this chapter:
    1. To conduct surveys, investigations, and research relating to the character of soil erosion and the preventive and control measures needed; to publish the results of those surveys, investigations, or research; and to disseminate information concerning the preventive and control measures. To avoid duplication of research activities, a district may not initiate any research program except in cooperation with the government of this state or any of its agencies, or with the United States or any of its agencies.
    2. To conduct demonstrational projects within the district on lands owned or controlled by this state or any of its agencies, with the cooperation of the agency administering and having jurisdiction of the land, and on any other lands within the district after obtaining the consent of the occupier of those lands or the necessary rights or interests in those lands, to demonstrate by example the means, methods, and measures by which soil and soil resources may be conserved and soil erosion in the form of soil blowing and soil washing may be prevented and controlled.
    3. To carry out preventive and control measures within the district, including engineering operations, methods of cultivation, the growing of vegetation, and changes in use of land, on lands owned or controlled by this state or any of its agencies, with the cooperation of the agency administering and having jurisdiction of the land, and on any other lands within the district upon obtaining the consent of the occupier of those lands or the necessary rights or interest in those lands.
    4. To cooperate or enter agreements with, and, within the limits of appropriations duly made available to it by law, to furnish financial or other aid to any agency, governmental or otherwise, or any occupier of lands within the district in the carrying on of erosion control and prevention operations within the district, subject to the conditions as the supervisors may deem necessary to advance the purposes of this chapter.
    5. To obtain options upon and to acquire by purchase, exchange, lease, gift, grant, bequest, devise, or otherwise any property, real or personal, or any property rights or interest; to maintain, administer, and improve any properties acquired; to receive income from those properties and to expend that income in carrying out the purposes and provisions of this chapter; and to sell, lease, or dispose of otherwise any of its property or interest therein in furtherance of the purposes and the provisions of this chapter.
    6. To make available, on terms the soil conservation district prescribes, to land occupiers, government units or qualified electors within the district, agricultural and engineering machinery and equipment, fertilizer, seeds and seedlings, and any other material or equipment as will assist those land occupiers, government units or qualified electors to carry on operations upon their lands for the conservation of soil and water resources and for the prevention and control of soil erosion.
    7. To construct, improve, and maintain structures as may be necessary or convenient for the performance of any of the operations authorized in this chapter.
    8. To develop comprehensive plans for the conservation of soil resources and for the control and prevention of soil erosion within the district, which plans must specify in such detail as may be possible the acts, procedures, performances, and avoidances that are necessary or desirable for the effectuation of those plans, including the specification of engineering operations, methods of cultivation, the growing of vegetation, cropping programs, tillage practices, and changes in use of land, and to publish such plans and information and bring them to the attention of occupiers of lands within the district.
    9. To take over, by purchase, lease, or otherwise, and to administer any soil conservation, erosion control, or erosion prevention project located within its boundaries undertaken by the United States or any of its agencies, or by this state or any of its agencies; to manage, as agent of the United States, or any of its agencies or of this state or any of its agencies, any soil conservation, erosion control, or erosion prevention project within its boundaries; to act as agent for the United States or any of its agencies or for this state or any of its agencies in connection with the acquisition, construction, operation, or administration of any soil conservation, erosion control, or erosion prevention project within its boundaries; and to accept donations, gifts, and contributions in money, services, materials, or otherwise from the United States or any of its agencies or from this state or any of its agencies, and to use or expend those moneys, services, materials, or other contributions in carrying on its operations.
    10. To sue and be sued in the name of the district.
    11. To have a seal, which seal must be noticed judicially.
    12. To have perpetual succession unless terminated as provided in this chapter.
    13. To make and execute contracts and other instruments necessary or convenient to the exercise of its powers, and to borrow funds and pledge all or any part of any income from the district's facilities, equipment, and operations for repayment.
    14. To make, amend, or repeal regulations consistent with this chapter.
    15. To require contributions in money, services, materials, or otherwise to any operations conferring benefits under this chapter and to require land occupiers to enter and perform agreements or covenants to use the lands in a manner that will prevent or control erosion.
    16. To expend moneys for education, promotion, and recognition activities consistent with the purposes of this chapter.
    17. To levy taxes as follows:
      1. The supervisors may make a general fund tax levy, not exceeding two and one-half mills, for the payment of the expenses of the district, including mileage and other expenses of the supervisors, and technical, administrative, clerical, and other operating expenses.
      2. Immediately after the completion of the district budget and the adoption of the annual tax levy by the district supervisors, but not later than July first, the supervisors shall send one certified copy of the levy as adopted to the county auditor of each county in the district.
      3. The county auditor of each county in the district shall extend the levy upon the tax list of the county for the current year against each description of real property lying both within the county and the district in the same manner and with the same effect as other taxes are extended.
      4. The treasurer of each county in the district shall collect all district taxes together with interest and penalty thereon in the same manner as the general taxes are collected, and shall pay over to the soil conservation district by the tenth working day of each month, all taxes so collected during the preceding month, with interest and penalties collected thereon and shall immediately send notification of such payment to the treasurer of the soil conservation district.
      5. Voter-approved levy authority authorized by electors of a district under the provisions of this section before January 1, 2015, remains in effect through taxable year 2024 or for the time period authorized by the electors, whichever expires first.
  2. Any provisions with respect to the acquisition, operation, or disposition of property by other public bodies are not applicable to a district unless the same specifically are made applicable by law.

4.1-20-25. Supervisors may formulate land use regulations for submission to qualified electors 🗎 PDF 

The supervisors of any district may formulate regulations governing the use of lands within the district in the interest of conserving soil and soil resources and preventing and controlling soil erosion, and may conduct public meetings and hearings upon tentative regulations as may be necessary to assist the supervisors in this work. The proposed regulations must be embodied in a proposed ordinance for submission to the qualified electors in the district, and copies of the proposed ordinance must be available for inspection by the qualified electors in the district during the period of time between the publication of the notice of election upon the ordinance and the date of the election.

4.1-20-26. Notice of election - Form of ballot - Conduct of election - Who may vote 🗎 PDF 

The notice of election on a proposed ordinance submitted to the qualified electors in the district under section 4.1-20-24 must be provided in the manner required by section 4.1-20-14 relating to notice of election of supervisors, and must recite the contents of the proposed ordinance or must state where copies of the proposed ordinance may be examined. The question of adoption or rejection of the proposed ordinance must be submitted by ballot at an election to be held in the district. The ballot must be in substantially the following form: Shall proposed ordinance number __________, prescribing land use regulations for conservation of soil and prevention of erosion be adopted? Yes ☐ No ☐ The supervisors shall supervise the election, prepare appropriate regulations governing the conduct of the election, and publish the result of the election. The right to vote in the election is limited to qualified electors residing within the district. No informalities in the conduct of the election or in any matters relating to the election may invalidate the election or its result if the notice of election has been given substantially as required by this section and the election has been fairly conducted.

4.1-20-27. Two-thirds voter approval required to adopt ordinance - Effect of ordinance after adoption 🗎 PDF 

An ordinance under this chapter does not become effective unless it is approved by at least two-thirds of the qualified electors voting on the question. If a proposed ordinance is approved, the supervisors shall enact it into law. Land use regulations prescribed in any ordinance adopted by the supervisors pursuant to this section have the force and effect of law in the district and are binding and obligatory upon all qualified electors living within the district.

4.1-20-28. What may be contained in land use regulations 🗎 PDF 

The land use regulations that may be adopted by the supervisors under this chapter may include:
  1. Provisions requiring the carrying out of necessary engineering operations, including the construction of terraces, terrace outlets, check dams, dikes, ponds, ditches, and other necessary structures.
  2. Provisions requiring observance of particular methods of cultivation, including contour cultivating, contour furrowing, lister furrowing, sowing, planting, stripcropping, and seeding and planting of lands to water conserving and erosion-preventing plants, trees, and grasses, forestation, and reforestation.
  3. Specifications of cropping programs and tillage practices to be observed.
  4. Provisions requiring the retirement from cultivation of highly erosive areas or of areas on which erosion may not be controlled adequately if cultivation is carried on.
  5. Provisions for any other means, measures, operations, and programs as may assist conservation of soil and water resources and prevent or control soil erosion in the district, having due regard to the declaration of policy set forth in this chapter.

4.1-20-29. Regulations to be uniform - Copies furnished in district 🗎 PDF 

Land use regulations must be uniform throughout the district except that the supervisors may classify the lands within the district with reference to such factors as soil type, degree of slope, degree of erosion threatened or existing, cropping and tillage practices in use, and other relevant factors, and may provide regulations varying with the type or class of land affected but uniform as to all lands within each class or type. Copies of land use regulations adopted under this chapter must be printed and made available to all qualified electors living within the district.

4.1-20-30. Amending, supplementing, or repealing land use regulations 🗎 PDF 

Any qualified elector living within a district at any time may file a petition with the supervisors asking that any or all of the land use regulations in any ordinance adopted by the supervisors under this chapter be amended, supplemented, or repealed. Land use regulations in that ordinance may not be amended, supplemented, or repealed except in accordance with the procedure prescribed in this chapter for the adoption of land use regulations. Elections on adoption, amendment, supplementation, or repeal of land use regulations may not be held more than once in any six-month period.

4.1-20-31. Supervisors to enforce land use regulations 🗎 PDF 

The supervisors may enter upon any land within the district to determine whether land use regulations adopted under this chapter are being observed.

4.1-20-32. Failure to perform land use regulations - Hearing on - Supervisors to perform - Costs and expenses 🗎 PDF 

  1. If the supervisors of any district find any land use regulations prescribed in any ordinance are not being observed on particular lands, tending to increase erosion on those lands and interfering with the prevention or control of erosion on other lands within the district, the supervisors may present to the district court a duly verified petition setting forth:
    1. The adoption of the ordinance prescribing land use regulations;
    2. The alleged failure of the defendant land occupier to observe the regulations and perform particular work, operations, or avoidances required by the regulations and that the failure tends to increase erosion on those lands and interfere with the prevention or control of erosion on other lands within the district; and
    3. Requesting that the court order the defendant to perform the work, operations, or avoidances within a reasonable time and that if the defendant fails to do so, the supervisors may:
      1. Enter upon the land;
      2. Perform the necessary work to bring the condition of the land into conformity with the regulations; and
      3. Assess the costs and expenses of the work, with interest, to the defendant.
  2. Upon presentation of a petition under subsection 1, the court shall cause process to be issued against the defendant, and shall hear the case.
    1. If it appears to the court testimony is necessary for the proper disposition of the matter, the court may take evidence or appoint a referee to take evidence as it may direct and report the evidence to the court with the referee's findings of fact and conclusions of law.
    2. If a referee is appointed, the report of the referee constitutes a part of the proceedings upon which the determination of the court must be made.
    3. The court may dismiss the petition or it may order the defendant to perform the work, operations, or avoidances. The court may provide upon the failure of the defendant to initiate performance as ordered by the court within the time specified in the order of the court and to prosecute the same to completion with reasonable diligence, the supervisors may enter upon the lands involved and perform the necessary work to bring the condition of the land into conformity with the regulations and assess the costs and expenses of the work, with interest at the rate of five percent per annum, to the defendant.
    4. If the person in possession of lands subject to a petition under subsection 1 is other than the owner, the owner of those lands must be joined as a party defendant. In all cases, notice must be given to all other interested parties in person, or by publication in the manner provided in this chapter for publication of due notice.
    5. In any case under this section, the court shall retain jurisdiction until any work ordered by the court has been completed.
  3. Upon completion of any work ordered by the court under subsection 2, the supervisors may file a petition with the court and serve a copy upon the defendants, stating the costs and expenses sustained by the supervisors in the performance of the work and asking for judgment in that amount, with interest. The court may enter judgment for the amount of costs and expenses approved by the court plus interest at the rate of five percent per annum until paid. The supervisors may certify to the county auditor of the county in which the district is located the amount of the judgment, which is a lien upon the lands and must be collected as taxes or assessments are collected. As the judgment is paid or collected, the proceeds must be paid over to the district that certified the judgment to the auditor.

4.1-20-33. Board of adjustment - Members - Appointment - Vacancies - Compensation 🗎 PDF 

When the supervisors of any district adopt an ordinance prescribing land use regulations, the supervisors shall provide by ordinance for the establishment of a board of adjustment to consist of three members, each to be appointed for a term of three years, except the members first appointed who are appointed for terms of one, two, and three years respectively. The members of each board of adjustment must be appointed by the committee with the advice and approval of the supervisors of the district for which the board has been established, and are removable, upon notice and hearing, for neglect of duty or malfeasance in office, but for no other reason. A hearing on the removal of a member of a board of adjustment must be conducted jointly by the committee and the supervisors. A vacancy on a board of adjustment must be filled in the same manner as the original appointment except the appointment is for the unexpired vacant term. Members of the committee and the supervisors of the district may not serve as members of the board of adjustment. The members of the board shall receive five dollars a day for the time spent on the work of the board in addition to their expenses, including traveling expenses necessarily incurred in the discharge of their duties. The supervisors shall pay the necessary administrative and other expenses of operation incurred by the board upon the certificate of the chairman of the board.

4.1-20-34. Board of adjustment - Rules - Chairman - Meetings - Quorum - Records 🗎 PDF 

The board of adjustment shall adopt rules to govern its procedure, in accordance with this chapter and any ordinance adopted under this chapter. The board shall designate, and may replace at any time, a chairman from among its members. Meetings of the board must be held at the call of the chairman and at any other time as the board may determine. Any two members of the board constitute a quorum. The chairman, or another member of the board designated by the chairman to serve as acting chairman, may administer oaths and compel the attendance of witnesses. All meetings of the board are open to the public. The board shall keep a full and accurate record of its proceedings, all documents filed with it, and all orders entered by the board. The record must be filed in the office of the board and is a public record.

4.1-20-35. Petition to board of adjustment to vary land use regulations - Service - Hearing - Board's powers 🗎 PDF 

Any qualified elector residing in the district may file a petition with the board of adjustment seeking a variance from strictly complying with the land use regulations. Copies of a petition must be served upon the chairman of the supervisors of the district where the lands are located and upon the chairman of the committee. The board shall fix a time for the hearing of the petition and cause due notice of the hearing to be given. The petitioner may appear in person, by agent, or by attorney at the hearing and the supervisors and the committee may appear and be heard. If the board determines on the facts presented at the hearing that there are great practical difficulties or unnecessary hardships in the way of applying the strict letter of any of the land use regulations upon the lands of the petitioner, the board shall make and record the determination and findings of fact as to the specific conditions that establish the great practical difficulties or unnecessary hardships. Upon the findings and determination, the board may enter an order authorizing a variance from the terms of the land use regulations in its application to the lands of the petitioner consistent with the spirit of the land use regulations, and with substantial justice and the public health, safety, and welfare.

4.1-20-36. Taking of testimony at hearing 🗎 PDF 

At the request of the board of supervisors, the testimony at a hearing conducted under section 4.1-20-35 must be taken by a court reporter, by a stenographer, or by use of an electronic recording device. The board of supervisors is responsible for the cost of taking testimony.

4.1-20-37. Aggrieved petitioner and supervisors may appeal to district court from order of board - Procedure 🗎 PDF 

Any petitioner or the supervisors of any district may appeal an order of a board of adjustment to the district court as provided in section 28-34-01.

4.1-20-38. Cooperation among district supervisors 🗎 PDF 

The supervisors of any two or more districts organized under this chapter may cooperate with one another in the exercise of any or all powers conferred in this chapter.

4.1-20-39. State agencies to cooperate with district supervisors 🗎 PDF 

Agencies of this state having jurisdiction over any state-owned lands, and agencies of any county or other political subdivision of this state having jurisdiction over any county-owned or other publicly owned lands lying within the boundaries of any district shall cooperate to the fullest extent with the supervisors of the district in the effectuation of programs and operations undertaken by the supervisors under this chapter. The supervisors have free access to enter and perform work upon such publicly owned lands. The provisions of land use regulations adopted under this chapter have the force and effect of law over all such publicly owned lands and must be in all respects observed by the agencies administering such lands.

4.1-20-40. Discontinuance of districts - Petition - Referendum - Eligible qualified electors 🗎 PDF 

Five years after the date a district was organized, twenty-five percent of the qualified electors living within the boundaries of the district may file a petition with the state soil conservation committee to terminate the operations of the district. The committee then shall conduct public hearings upon the petition to determine whether there is sufficient basis for an election to be held. If the committee determines there is sufficient basis for an election, the committee shall give due notice of the holding of an election and shall issue appropriate regulations governing the conduct of the election within sixty days after the committee has made its determination. The question to be voted on at the election must be submitted by ballot in substantially the following form: Should the (insert name of district) be terminated?Yes ☐ No ☐ All qualified electors residing within the boundaries of the district are eligible to vote in the election. The committee shall supervise the election. Informalities in the conduct of the election or in any matters relating to the election do not invalidate the election or its result if notice of the election has been given substantially as required by this chapter and the election has been fairly conducted.

4.1-20-41. Duties of committee after election on discontinuance of the district has been held 🗎 PDF 

The committee shall publish the result of any election on the question of discontinuance of a district immediately after the vote has been had. If a majority of the votes cast in the election favored the discontinuance of the district, the committee shall make its certificate that it has determined that the continued operation of the district is not administratively feasible. If a majority of the votes cast in the referendum favored the continuance of the district, the committee shall consider and determine whether the continued operation of the district within the defined boundaries is administratively feasible. If the committee determines the continued operation of the district is administratively feasible, the committee shall record that determination and deny the petition for discontinuance, and if the committee determines the continued operation thereof is not administratively feasible, the committee shall record the determination and certify its determination to the supervisors of the district. In making its determination, the committee shall give due weight and regard to the number and attitudes of the qualified electors residing within the district, the number voting in the referendum, the proportion that the votes cast in favor of the discontinuance of the district are of the total number of votes cast, the probable expense of carrying on erosion control operations within the district, and any other economic and social factors as may be relevant to the determination having regard to the legislative policy as set forth in this chapter.

4.1-20-42. Termination of affairs of district - Disposal of property - Certificate of dissolution 🗎 PDF 

Upon receipt from the committee of its certification that the committee has determined the continued operation of the district is not administratively feasible, the supervisors shall proceed to terminate the affairs of the district. The supervisors of the district may dispose of all or part of any property belonging to the district at public auction and shall use the proceeds of the sale to pay any liabilities. The balance of any funds and undisposed property becomes the property of the county or counties the district is a part of as directed by the supervisors. The supervisors thereupon shall file an application, duly verified, with the secretary of state for the discontinuance of the district, and shall transmit with such application the certificate of the committee setting forth its determination that the continued operation of the district is not administratively feasible. The application must recite what property, if any, of the district has been disposed of, the liabilities paid, and the property or proceeds paid over as provided herein and must set forth a full accounting of such properties and their sale proceeds. The secretary of state shall issue to the supervisors a certificate of dissolution and record the certificate in an appropriate record in the secretary of state's office.

4.1-20-43. Ordinances, regulations, and contracts of districts after dissolution 🗎 PDF 

After a certificate of dissolution has been issued as provided in section 4.1-20-42, all ordinances and regulations that have been adopted and in force within the dissolved district are of no further force and effect. All contracts that have been made, to which the district supervisors are parties, remain in force and effect for the period provided in the contracts, and the committee is substituted for the district or supervisors as party to the contracts. The committee is entitled to all the benefits and subject to all the liabilities under the contracts and has the same right as the supervisors of the district would have had.

4.1-20-44. Petitions for discontinuance of district - Limitation on filing 🗎 PDF 

The state soil conservation committee may not entertain petitions for the discontinuance of any district, conduct elections upon those petitions, or make determinations pursuant to the petitions in accordance with the provisions of this chapter more than once in any five-year period.

4.1-20-45. Consolidation of districts - Petition - Election - Conduct of election 🗎 PDF 

Two or more districts may be consolidated into one district by compliance with this chapter. A petition for consolidation of soil conservation districts must be filed with the state soil conservation committee and must be signed by at least twenty-five qualified electors living in each district. Upon the filing of a petition, the committee by resolution shall fix a date for an election to be held in each district and shall direct the supervisors to cause notice of the election to be posted in at least five conspicuous places within the district and to be published once each week for two consecutive weeks before the election in a newspaper of general circulation in the districts involved. Only qualified electors living within the district are eligible to vote at the election. The notice must state the date of the election, identify each polling place for holding the election, the time when the polls will open and close, and the question to be submitted to the qualified electors. The notice must be substantially in the following form: On _________, ______, an election will be held at ____________________________________________ for the purpose of submitting (Designate polling place or places) to the qualified electors within _________________________________ soil conservation (Name of district) district the question as to whether _________________________________ soil conservation (Names of districts) districts embracing the following townships _____________________________________ (Designate townships, by number and range) shall be consolidated into one soil conservation district. The ballot must be in the following form: Shall _____________________ soil conservation districts embracing the (Names of districts) following townships ____________________________________ be (Designate townships, by number and range) consolidated into one soil conservation district? Yes ______ No _______ The board of supervisors of the district shall appoint the board of election for each polling place. The board of election must consist of one inspector, one judge, and one clerk. Members of the election board are entitled to receive five dollars for their services.

4.1-20-46. Conduct of election - Canvass of votes 🗎 PDF 

An election upon the question of consolidating two or more soil conservation districts must be conducted in accordance with the laws of the state prescribing the conduct of general elections. After the polls are closed, the board of election shall canvass the votes and the clerk of the board shall certify to the board of supervisors of the clerk's district and to the committee the result of the election. The committee shall publish the result of the election. If a majority of the ballots cast on the question in each district are for consolidation, the committee shall file with the secretary of state a statement certifying that the consolidated district has been duly and regularly established.

4.1-20-47. Supervisors of consolidated district - Terms of office - Powers and duties 🗎 PDF 

The members of the board of supervisors of a newly consolidated district are the supervisors from each of the districts that have been consolidated whose existing terms of office would last expire if the new consolidated district were not established. Those members shall determine by lot the order in which their terms of office in the consolidated district will expire. If more than three districts are consolidated, the members of the board of supervisors of the consolidated district must be determined by lot among the supervisors from the districts whose existing terms would expire last. If only two districts are consolidated, the third member of the board of supervisors of the consolidated district must be determined by lot among the remaining supervisors from both such districts. The supervisors thus selected shall hold office until the next general election of the district and until their successors are elected and qualified. Supervisors of a consolidated district have all the powers and duties of supervisors of a soil conservation district as enumerated in this chapter. The name of a consolidated district must be determined by the new supervisors of the consolidated district.

4.1-20-48. Costs and expenses of consolidation - Disposition of property - Contracts of districts after consolidation 🗎 PDF 

All costs and expenses incidental to the consolidation of two or more districts must be borne equally by each of the consolidated districts. All property and money of the districts that have been consolidated become the property of the newly established district. All contracts to which the supervisors of each of the districts consolidated are parties remain in force and effect for the period provided in the contracts and the supervisors of the consolidated district are substituted as parties in the contracts. Supervisors of a consolidated district are entitled to all the benefits and subject to all the liabilities under the contracts and have the same rights as the supervisors of the district that entered the contract would have had if a consolidated district had not been established.

4.1-20-49. Soil conservation trust lands 🗎 PDF 

The state of North Dakota holds in trust for use by the soil conservation districts of the state for the soil conservation program the property in Burleigh County described as follows: Township one hundred thirty-eight north, range eighty west, fifth principal meridian: west one-half of section fifteen and that portion of the southeast quarter of section sixteen described as follows: beginning at the southeast corner of said section sixteen, thence running north on the east line of said section six hundred sixty feet [201.17 meters]; thence west parallel with the south line of said section two thousand three hundred ten feet [704.09 meters]; thence south six hundred sixty feet [201.17 meters] to a point on the south line of said section two thousand three hundred ten feet [704.09 meters] west of the southeast corner of said section; thence east along the south line of said section two thousand three hundred ten feet [704.09 meters] to the place of beginning; containing thirty-five acres [14.16 hectares], more or less. Subject, however, to the following rights, easements, exceptions, and reservations:
  1. Easements for existing or established roads, highways, and public utilities, if any.
  2. Right reserved by the Department of the Army "to enter thereon and remove gravel and use the established rubbish disposal area as long as any part of Fort Lincoln Military Reservation is used by the Department of the Army".
  3. Reservation to the United States of America and its assigns of an undivided three-fourths interest in all coal, oil, gas, and other minerals, including three-fourths of all sand, gravel, stone, clay and similar materials, in or under the property, together with the usual mining rights, powers, and privileges, including the right at any and all times, to enter upon the land and use those parts of the surface as may be necessary in prospecting for, mining, saving and removing the minerals or materials, provided the quantities of sand, gravel, stone, clay and similar materials, as may be required, may be utilized in the operation or improvement of the lands. The lands, having been conveyed to the state of North Dakota by the United States of America for use in carrying out the soil conservation program of the soil conservation districts of the state, are further subject to the condition the land must be used for public purposes and if at any time cease to be so used must revert to and become revested in the United States. Upon approval by the United States of America in accordance with the original grant of the trust lands, the trust lands may be leased, sold, conveyed, traded for, or replaced by other land suitable for the benefit of the soil conservation program in this state. No lease, sale, conveyance, trade, or replacement of the trust lands may be made under conditions that will cause or may cause the reversion of the lands back to the United States of America. The control, custody, possession, supervision, management, operation, and transfer of the trust lands and any replacement lands is hereby vested in the North Dakota association of soil conservation districts for use in carrying out the soil conservation program of the soil conservation districts of the state and the association in such control, custody, possession, supervision, management, operation, and transfer shall hold all accumulations of personal property or surplus funds derived from said lands in trust for the soil conservation districts of the state for use in carrying out the soil conservation program. Any transfer, sale, trade, or replacement of trust lands is excepted from section 38-09-01, and the North Dakota association of soil conservation districts may transfer all or a portion of the minerals held by the state or the association which are located under the trust lands. Any funds generated through bonuses, leases, royalties, or otherwise generated by minerals reserved by the association or funds generated from the sale of minerals must be held in trust as provided in this section.

Chapter 21 — Forestry

4.1-21-01. State forester - Appointment - Qualifications - Duties 🗎 PDF 

The board of higher education shall appoint the state forester.
  1. The state forester must be a graduate of an accredited school of forestry with a minimum education of a bachelor of science degree in forestry. The state forester shall serve as the director of the state forest service and, subject to the approval of the board of higher education and the president of North Dakota state university, may employ assistants and secure office facilities and equipment necessary for the administration of this chapter and the performance of the powers and duties of the office.
  2. The state forester shall:
    1. Supervise the raising and distribution of seeds and forest tree planting stock as provided in this chapter.
    2. Promote practical forestry and compile and disseminate information relative to practical forestry to landowners, community groups, schools, and other organizations interested in forestry.
    3. Encourage the development, use, and wise stewardship of forest resources.
    4. Provide assistance to landowners, producers, and public bodies relating to forestry, reforestation, protection of forest resources, prevention and suppression of fires, planting of trees and shrubs, and the growing, harvesting, marketing, and management of forest resources.

4.1-21-02. State nursery - Maintenance - Purpose 🗎 PDF 

A state nursery, under the direction of the state forester, must be maintained at Towner. The nursery shall propagate seeds and forest tree planting stock adapted to the climatic conditions of this state.

4.1-21-03. Powers - Cooperative state agreements 🗎 PDF 

Under the general supervision of the board of higher education, the state forester may:
  1. Establish procedures for the administration of this chapter.
  2. Provide grants to, and enter cooperative agreements with, public and private entities for purposes consistent with this chapter.
  3. Establish councils to advise the state forester on the administration of this chapter.

4.1-21-04. State forester reserve account 🗎 PDF 

The state forester reserve account is established as a special account in the state treasury. All moneys received for charges in excess of the cost of production of seedlings from the state nursery must be deposited in the reserve account. The state forester may use the reserve account within limits of legislative appropriations for expenses relating to nursery seedling losses or other unanticipated events requiring additional funding as determined necessary by the state forester. If the balance of the state forester reserve account exceeds one million five hundred thousand dollars, charges for state nursery seedlings must not exceed estimated production costs until the account balance is less than one million two hundred thousand dollars, at which time the state forester may charge one hundred ten percent of production costs.

4.1-21-05. Distribution of seeds and planting stock 🗎 PDF 

Seeds and planting stock from the state nursery may be distributed by the state forester to citizens and landowners of this state upon payment by them of a price not greater than one hundred ten percent of the cost to the state of production in the case of planting stock or collection in the case of seeds, and the cost of transportation from the nursery. The seeds and planting stock may be used to establish or reestablish forests, windbreaks, shelterbelts, living snow fences, farm woodlots, Christmas tree plantings, wildlife habitats, and other conservation tree plantings and for erosion control and water quality management.

4.1-21-06. State forester may accept land for forestry purposes 🗎 PDF 

The state forester may accept gifts, donations, or contributions of land suitable for forestry purposes and may enter agreements for acquiring, by lease, purchase, or otherwise, such lands as in the state forester's judgment are desirable for state forestry purposes.

4.1-21-07. Obligations incurred in acquiring land - Payment 🗎 PDF 

Obligations incurred by the state forester in the acquisition of land under this chapter must be paid solely and exclusively from revenues derived from that land, and may not impose any liability upon the general credit and taxing power of the state.

4.1-21-08. Powers of state forester when lands acquired or leased 🗎 PDF 

When lands are acquired or leased under section 4.1-21-06, the state forester may make expenditures from any funds not otherwise obligated for the management, development, and utilization of those areas. The state forester may provide recreational services within those areas and may charge a user fee in an amount sufficient to cover the cost of providing those services. The state forester may sell or otherwise may dispose of products from those lands and may make necessary rules to carry out the purposes of this chapter.

4.1-21-09. Revenue received from lands acquired or leased - Regulations governing - Payments in lieu of taxes 🗎 PDF 

All revenues derived from lands acquired or leased under this chapter must be segregated by the state treasurer for the use of the state forester in the acquisition, management, development, and use of such lands. However, from those revenues derived from agricultural leases there must be paid over to the governing body of the county in which those lands are located, an amount sufficient to cover the loss of tax revenues, if any, resulting from such acquisition or lease.

4.1-21-10. State forester may sell, exchange, or lease lands 🗎 PDF 

The state forester may sell, exchange, or lease lands under the state forester's jurisdiction when in the state forester's judgment it is advantageous to the best orderly development and management of state forests and state parks, except any sale, lease, or exchange may not be contrary to the terms of any contract that the state has entered.

4.1-21-11. Agreements for shelterbelt lands by state 🗎 PDF 

Any board or officer having the control or management of any real estate belonging to or controlled by this state or any of its political subdivisions may enter agreements with the officers and agents of the United States for the improvement by the United States of any of those lands by the establishment and maintenance on those lands of shelterbelts composed of trees, other plants, and necessary protective structures and works. Every agreement must describe particularly the land to be covered by the shelterbelt, must be recorded at the expense of the United States in the county where the land is situated, and thereafter all leases, sales, and other disposition of such land are subject to the agreement.

4.1-21-12. Trees for North Dakota program and trust fund 🗎 PDF 

The trees for North Dakota program is created for the public purpose of strengthening the tradition of tree planting and management in this state. A special fund known as the trees for North Dakota program trust fund is established in the state treasury. Income earned on moneys in the fund must be credited to the fund. The state forester shall deposit all program funds received from governmental and private sources in the trust fund. Program funds may be expended for direct costs or distributed for grants and contracts by the state forester within the limits of legislative appropriations for defraying the costs associated with execution of the trees for North Dakota program. Any political subdivision of the state may provide financial aid or supportive services to the trees for North Dakota program.

Chapter 22 — Nurseries

4.1-22-01. Definitions 🗎 PDF 

In this chapter, except as otherwise provided:
  1. "Certificate of inspection" means a document issued or authorized by the commissioner stating nursery stock is practically free from damaging pests.
  2. "Commissioner" means the agriculture commissioner or the commissioner's designee.
  3. "Grower" means any person that takes a reproductive part of nursery stock and increases the size and development of the stock for at least one full growing season. A grower includes a person producing nursery stock from tissue culture.
  4. "Infested" means infected with a quantity of pests or so exposed to a quantity of pests that it would be reasonable to believe potential for harm or threat to the health of the host nursery stock exists.
  5. "Nonhardy" means plant species, varieties, and cultivars that will not survive climatic conditions in North Dakota.
  6. "Nursery" means any place where nursery stock is propagated, grown, or offered for sale.
  7. "Nursery stock" means all trees, shrubs, woody vines and their parts that are capable of propagation or growth, except seed. Only plants intended for outdoor planting are considered nursery stock.
  8. "Pest" means any invertebrate animal, pathogen, parasitic plant, or other similar organism that can cause damage to nursery stock.
  9. "Place of business" means each separate location from which nursery stock is being offered for sale.
  10. "Viable nursery stock" means nursery stock that is capable of living and accomplishing the purpose for which it is grown, whether for foliage, flowers, fruit, or special use.

4.1-22-02. Administration - Rulemaking authority 🗎 PDF 

The commissioner shall administer this chapter. The commissioner may adopt rules under chapter 28-32 to implement this chapter.

4.1-22-03. Authority for inspection 🗎 PDF 

The commissioner shall inspect all nursery stock being grown in North Dakota at least once each year and may enter and inspect any nursery or place of business during normal business hours.

4.1-22-04. Authority for abatement - Removal from sale 🗎 PDF 

After giving notice to the owner or the owner's agent, the commissioner may destroy, treat, or remove from sale, at the owner's expense, any nursery stock offered for sale found to be not viable, not accompanied by a certificate of inspection, not labeled correctly, or infested with a pest.

4.1-22-05. Certification of nursery stock 🗎 PDF 

The commissioner shall issue a certificate of inspection annually for nursery stock grown in licensed nurseries within the state found to be practically free from damaging pests. Certificates expire on December thirty-first each year unless canceled at an earlier date. Certification may be withheld by the commissioner when nursery stock is infested with a pest or if weeds or other objects prevent an adequate inspection of the nursery stock. All nursery stock being offered for sale within the state must be from officially inspected sources. A copy of a certificate of inspection from the state of origin must accompany each commercial lot or shipment of nursery stock that is transported into or offered for sale within North Dakota. All copies of the North Dakota certificate of inspection required for shipping purposes must be approved by the commissioner.

4.1-22-06. Nursery license - Fee 🗎 PDF 

A person may not sell nursery stock without a license issued by the commissioner. Licenses expire on December thirty-first each year unless revoked at an earlier date. An application for renewal of license with any additional information required by the commissioner must be submitted and accompanied by a fee of fifty dollars on or before December thirty-first each year. A separate license is required for each place of business. A fee of ten dollars must be submitted for each additional license, other than the principal place of business. A license may not be issued to a grower unless the grower has first been issued a certificate of inspection.

4.1-22-07. Labeling and standards for nursery stock 🗎 PDF 

A person may not sell or offer for sale any nursery stock not labeled in accordance with the international code of nomenclature for cultivated plants with the complete correct botanical or approved recognized common name. All nonhardy trees and shrubs, as determined by the commissioner, must be labeled "nonhardy in North Dakota". All nursery stock offered for sale or distribution must be in a viable condition and must be stored and displayed under conditions that will maintain its viability. Materials used to coat the aerial parts of the plant which change the appearance of the plant surface to prevent adequate inspection are prohibited.

4.1-22-08. Misrepresentation 🗎 PDF 

A person may not misrepresent the name, age, origin, grade, variety, quality, or hardiness of any nursery stock being offered for sale.

4.1-22-09. Reciprocal agreements 🗎 PDF 

The commissioner may enter reciprocal agreements with officers of other states for the recognition of official licenses and inspection certificates.

4.1-22-10. Exemptions 🗎 PDF 

The commissioner may exempt certain nursery stock, nurseries, or persons from all or part of the provisions of this chapter. Exemptions from licenses and fees may include:
  1. Persons growing and propagating nursery stock for research or experimental purposes;
  2. Soil conservation districts selling nursery stock for the prevention of soil and wind erosion or other conservation plantings; and
  3. Persons growing nursery stock for noncommercial purposes or that the commissioner designates as exempt.

4.1-22-11. Penalties - Criminal - Civil - License revocation or nonrenewal 🗎 PDF 

  1. It is a class B misdemeanor for any person to violate this chapter, or any rules adopted under this chapter.
  2. Any person who violates any provision of this chapter, or rule adopted under this chapter, is subject to a civil penalty not to exceed five hundred dollars for each violation. The civil penalty may be adjudicated by the courts or by the commissioner through an administrative hearing under chapter 28-32.
  3. The department may maintain, in accordance with the laws of this state, an appropriate civil action in the name of the state against any person violating this chapter or rules adopted under this chapter.
  4. The commissioner may refuse to grant a license to any person found guilty of repeated violations of this chapter or rules adopted under this chapter, or to any person who has failed to pay an adjudicated civil penalty for violation of this chapter within thirty days after a final determination that the civil penalty is owed.

Chapter 23 — Plant Pests

4.1-23-01. Definitions 🗎 PDF 

In this chapter, unless the context or subject matter otherwise requires:
  1. "Certificate" means a document issued or authorized by the commissioner indicating a regulated article is not contaminated with a pest.
  2. "Commissioner" means the agriculture commissioner or the commissioner's authorized representative.
  3. "Host" means any plant or plant product upon which a pest is dependent for completion of any portion of its life cycle.
  4. "Infested" means infected with a quantity of pests or so exposed to a quantity of pests that it would be reasonable to believe that potential for harm or threat to the health of the host exists.
  5. "Move" means to ship, offer for shipment, receive for transportation, carry, or otherwise transport, or allow to be transported.
  6. "Permit" means a document issued or authorized by the commissioner to provide for the movement of regulated articles to restricted destinations for limited handling, utilization, or processing.
  7. "Person" means any individual, corporation, limited liability company, company, society, or association, or other business entity.
  8. "Pest" means any invertebrate animal, pathogen, parasitic plant, or similar organism that can cause damage to a plant or part of a plant or any processed, manufactured, or other product of plants.
  9. "Phytosanitary certificate" means an international document issued or authorized by the commissioner stating that a plant or plant product is considered free from quarantine pests and practically free from injurious pests and that the plant or plant product is considered to conform with the current phytosanitary regulations of the importing country.
  10. "Plant" means any part of a plant, tree, aquatic plant, plant product, plant material, shrub, vine, fruit, rhizome, vegetable, seed, bulb, stolon, tuber, corm, pip, cutting, scion, bud, graft, fruit pit, or agricultural commodity.
  11. "Regulated article" means any article of any character as described in a quarantine carrying or capable of carrying the plant pest against which the quarantine is directed.

4.1-23-02. Administration - Rulemaking authority 🗎 PDF 

The commissioner shall administer this chapter. The commissioner shall employ an individual who has a baccalaureate degree in entomology, plant pathology, or biological sciences. The commissioner may adopt rules to carry out this chapter.

4.1-23-03. Authority for control measures 🗎 PDF 

The commissioner, either independently or in cooperation with political subdivisions, farmers' associations or similar organizations, individuals, federal agencies, or agencies of other states, is authorized to carry out operations or measures to locate, suppress, control, eradicate, prevent, or retard the spread of pests with the consent of the owners of the property involved.

4.1-23-04. Authority for plant quarantine 🗎 PDF 

  1. The commissioner is authorized to quarantine this state or any portion of the state if the commissioner determines that quarantine is necessary to prevent or retard the spread of a pest within or from this state, and to quarantine any other state or portion of another state if the commissioner determines a pest exists in another state and a quarantine is necessary to prevent or retard the spread of the pest into this state. Before determining that a quarantine is necessary, the commissioner, after due notice to interested parties, shall hold a public hearing under rules adopted by the commissioner.
  2. Any interested party may appear and be heard either in person or by attorney at the public hearing, provided, the commissioner may impose a temporary quarantine for a period not to exceed ninety days during which time a public hearing, as provided for in this section, must be held if it appears the quarantine may require more than the ninety-day period to prevent or retard the spread of the pest. The commissioner shall give notice of the quarantine in those newspapers in the quarantined area selected by the commissioner. The commissioner may limit the application of the quarantine to the infested portion of the quarantined area and appropriate environs, to be known as the regulated area, and, without further hearing, may extend the regulated area to include additional portions of the quarantined area:
    1. Upon publication of a notice in newspapers in the quarantined area selected by the commissioner; or
    2. By direct written notice to those concerned.
  3. Following establishment of the quarantine, a person may not move any regulated article described in the quarantine or move the pest against which the quarantine is established, within, from, into, or through this state contrary to rules adopted by the commissioner. Notice of the rules must be published in newspapers in the quarantined area selected by the commissioner.
  4. The rules may restrict the movement of the pest and any regulated articles from the quarantined or regulated area in this state into or through other parts of this state or other states and from the quarantined or regulated area in other states into or through this state. The rules may impose inspections, disinfections, certifications, permits, and other requirements as the commissioner deems necessary to effectuate the purposes of this chapter.

4.1-23-05. Authority for abatement and emergency measures 🗎 PDF 

If the commissioner finds any article that is infested or reasonably believed to be infested or a host or pest exists on any premise or is in transit in this state, the commissioner, upon giving notice to the owner or the owner's agent in possession of the host or pest, may seize, quarantine, treat, or otherwise dispose of such pest, host, or article in the manner as the commissioner deems necessary to suppress, control, eradicate, or to prevent or retard the spread of the pest. The commissioner may order the owner or agent to treat or dispose of the pest, host, or article. If large areas or metropolitan areas, involving many people, are to be treated, notice may be given through newspaper, radio, or other news media. A notice must prominently appear, at least ten days prior to treatment, in at least three issues of a daily paper having local coverage.

4.1-23-06. Authority for inspections - Warrants 🗎 PDF 

  1. The commissioner, with a warrant or the consent of the owner, may make reasonable inspection of any premises in this state and any property in or on the premises. The commissioner, without a warrant with the assistance of any law enforcement agency may stop and inspect, in a reasonable manner, any means of transportation moving in this state upon probable cause to believe it contains or carries any pest, host, or other article subject to this chapter. The commissioner may make any other reasonable inspection of any premises or means of transportation for which no warrant is required under the Constitution of the United States and the Constitution of North Dakota.
  2. District courts in this state may issue warrants for inspections of property or transportation upon a showing by the commissioner of probable cause to believe there exists in or on the property or transportation to be inspected a pest, host, or other article subject to this chapter.

4.1-23-07. Cooperation 🗎 PDF 

  1. The commissioner is authorized to cooperate with any agency of the federal government in operations and measures the commissioner deems necessary to suppress, control, eradicate, prevent, or retard the spread of any plant pest including the right to expend state funds on federal lands.
  2. The commissioner is authorized to cooperate with agencies of adjacent states in such operations and measures the commissioner deems necessary to locate; to suppress, control, eradicate, prevent, or retard the spread of any pest, provided, that the use of funds appropriated to carry out this chapter, for operations in adjacent states, must be approved in advance by the governor or the governor's designee.

4.1-23-08. Penalties 🗎 PDF 

  1. It is a class A misdemeanor for:
    1. Any person to violate any provision of this chapter or use without authority any certificate or permit or other document provided for in this chapter or in the rules of the commissioner provided for in this chapter; or
    2. Any person to knowingly move any regulated article into this state from any quarantined area of any other state, when the article has not been treated or handled under provisions of the quarantine and rules at the point of origin.
  2. In addition to criminal sanctions, a person found guilty of violating this chapter or rules is subject to a civil penalty not to exceed five thousand dollars for each violation. The civil penalty may be adjudicated by the courts or by the commissioner through an administrative hearing pursuant to chapter 28-32. The commissioner may maintain an appropriate civil action in the name of the state against any person violating this chapter.

4.1-23-09. Authority for compensation 🗎 PDF 

The commissioner may authorize the payment of reasonable compensation to growers in infested areas for not planting host crops pursuant to instructions issued by the commissioner prior to the planting season, for losses resulting from the destruction of any regulated articles. A payment may not be authorized for the destruction of regulated articles moved in violation of any rule or any host planted contrary to instructions issued by the commissioner. Any compensation payment program authorized by the commissioner must be approved by the legislative assembly.

4.1-23-10. Authority for local pest control and regulations 🗎 PDF 

The governing body of any political subdivision, by ordinance or resolution, may adopt and enforce regulations to control and prevent the spread of pests. If state rules are in effect, any similar local regulations must be approved by the commissioner. State rules must be in effect if the commissioner finds that adequate measures are not being taken by the political subdivision. The commissioner shall notify the appropriate officials of the political subdivision before any action is taken by the commissioner. The rules may authorize appropriate officers and employees to enter and inspect any public or private place which might harbor pests.

4.1-23-11. Authority for financing local control programs - County pest coordinator 🗎 PDF 

  1. The board of county commissioners may appropriate money for the control of pests under this chapter. If state funds are involved, the money must be expended according to control plans approved by the commissioner. The board of county commissioners shall determine the portion, if any, of control program costs to be paid by the county. Costs of the control program may be paid from revenues derived from general fund levy authority of the county or from the county noxious weed control levy authority under section 4.1-47-14.
  2. The board of county commissioners for any county shall designate an individual to serve as county pest coordinator. The county pest coordinator shall administer local and private funds in cooperation with state and federal pest control programs. When state funds are involved, the county pest coordinator shall submit county and township control plans to the agriculture commissioner for approval.

4.1-23-12. Authority for domestic and export certification 🗎 PDF 

The commissioner may inspect and certify any plant and plant product, when offered for export or shipment from within the state and to certify, to shippers and interested parties as to the freedom of the products from injurious pests according to the phytosanitary requirements of other states and foreign countries. Authority for inspection and certification under this section is not limited to plants defined in section 4.1-23-01. The commissioner may make reasonable charges and use any means necessary to accomplish this objective. A portion of the fees collected may be deposited in the commissioner's operating fund equivalent to the amount that the United States department of agriculture assesses the department for federal plant export certificates issued by the commissioner. A certificate may be withheld or not issued if the product does not meet phytosanitary or import requirements and if all state licensing and bonding requirements have not been met. Consignee names and addresses on phytosanitary certificates are confidential.

Chapter 25 — Dairy Product Regulation

4.1-25-01. Definitions 🗎 PDF 

  1. "Cheese factory" means a facility that makes cheese for commercial purposes.
  2. "Commissioner" means the agriculture commissioner or the commissioner's designee.
  3. "Condensery" means a facility where condensed or evaporated milk is produced.
  4. "Dairy animal" means any healthy four-legged hooved mammal maintained for the commercial production of milk to be offered for sale for use in the processing or manufacturing of milk or dairy products.
  5. "Dairy farm" means a place where one or more dairy animals are kept.
  6. "Dairy product" includes milk, cream, sour cream, butter cream, butter, skimmed milk, ice cream, whipped cream, flavored milk or skim milk drink, dried or powdered milk, cheese, cream cheese, cottage cheese, creamed cottage cheese, ice cream mix, sherbet, condensed milk, evaporated milk, or concentrated milk.
  7. "Department" means the department of agriculture.
  8. "Distributor" means a person that provides storage, transportation, delivery, or distribution of dairy products to any person who sells dairy products.
  9. "Drying plant" means a facility that manufactures dry milk products by removing water from milk or milk products.
  10. "Filled dairy products" means any milk, cream, or skimmed milk, or any combination of them, whether or not condensed, evaporated, concentrated, frozen, powdered, dried, or desiccated, or any food product made or manufactured from those products, to which has been added, blended, or compounded with, any fat or oil, other than milk fat, to imitate a dairy product. "Filled dairy products" may not be construed to mean or include:
    1. Any distinctive proprietary food compound not readily mistaken for a dairy product, if the compound is customarily used on the order of a physician and is prepared and designed for medicinal or special dietary use and prominently so labeled;
    2. Any dairy product flavored with chocolate or cocoa or the vitamin content of which has been increased, or both, if the fats or oils other than milk fat contained in the product do not exceed the amount of cacao fat naturally present in the chocolate or cocoa used and the food oil, not in excess of one-hundredth per centum of the weight of the finished product, used as a carrier of such vitamins; or
    3. Margarine.
  11. "Grading" means the examination of milk or milk products by sight, odor, taste, or laboratory analysis, the results of which determine a rating of the quality of the product.
  12. "Ice cream plant" means a facility that makes ice cream for commercial purposes.
  13. "Ice milk plant" means a facility that makes ice milk for commercial purposes.
  14. "Imitation milk" or "imitation milk product" means a food product or food compound made to resemble milk or a milk product when any of the following occurs:
    1. The food physically resembles milk or a milk product. "Physical resemblance" means those characteristics relating to the composition of food, including fat and moisture content, nonfat solids content, and functional ingredient or food additive content such as emulsifiers, stabilizers, flavor, or color additives.
    2. The packaging used resembles the packaging used for milk or for a milk product.
    3. The food product or food compound is displayed in a retail establishment in the same manner as milk or a milk product.
    4. Verbal or pictorial expressions are used on the food products or food compounds, labeling, or in advertisements or other similar devices used to promote the food products or food compounds that state or imply that the food is milk or a milk product.
    5. The food product or food compound in any other way is manufactured, packaged, or labeled so as to resemble the identity, intended use, or physical and sensory properties of milk or a milk product. "Physical and sensory properties" means those characteristics relating to flavor, texture, smell, and appearance of a food product or food compound.
  15. "Milk" means the lacteal secretion, practically free of colostrum, obtained by the complete milking of a healthy hooved mammal, including any member of the order Cetartiodactyla and including a member of the family:
    1. Bovidae, including cattle, water buffalo, sheep, goats, and yaks;
    2. Cervidae, including deer, reindeer, and moose;
    3. Equidae, including horses and donkeys; and
    4. Camelidae, including llamas, alpacas, and camels.
  16. "Milk hauler" means a person that owns vehicles used to transport raw milk from a dairy farm to a dairy facility.
  17. "Milk plant or bottling plant" means a facility where milk or milk products are collected, handled, processed, stored, and prepared for distribution.
  18. "Milk solids or total solids" means the total amount of solids in milk.
    1. "Pasteurization" as applied to milk or skim milk means either:
      1. The process of heating every particle of milk to at least one hundred forty-five degrees Fahrenheit [62.78 degrees Celsius] and cream and other milk products to at least one hundred fifty degrees Fahrenheit [65.55 degrees Celsius], and holding it at that temperature continuously for at least thirty minutes; or
      2. Heating every particle of milk to at least one hundred sixty-one degrees Fahrenheit [71.67 degrees Celsius] and cream and other milk products to at least one hundred sixty-six degrees Fahrenheit [74.44 degrees Celsius], and holding it at that temperature continuously for at least fifteen seconds in approved and properly operated equipment.
    2. When applied to cream for butter making, "pasteurization" means the cream must be held at a temperature of not less than one hundred sixty-five degrees Fahrenheit [73.89 degrees Celsius] for at least thirty minutes or not less than one hundred eighty-five degrees Fahrenheit [85.00 degrees Celsius] for at least fifteen seconds.
    3. This subsection may not be construed as barring any other process that has been demonstrated to be equally efficient which assures proper pasteurization and keeping quality, which is consistent with the most desirable quality, and which is approved by the commissioner.
  20. "Pasteurized milk ordinance" means the 2023 revision of the Grade "A" Pasteurized Ordinance issued by the United States food and drug administration and by the United States department of agriculture's public health service.
  21. "Peddler" means a person that purchases milk or milk products and sells the milk or milk products directly to consumers at any place other than from a store, stand, or other fixed place of business.
  22. "Person" means individuals, firms, partnerships, associations, trusts, estates, corporations, and limited liability companies, and any and all other business units, devices, or arrangements.
  23. "Processing or manufacturing" means the treatment of milk or milk products by pasteurizing, bottling, churning, adding flavors to, freezing, dehydrating, packaging, coagulating, or treating in any manner that changes the natural, physical, or chemical properties of the original product.
  24. "Producer dairy" means a dairy farm that sells milk or cream to a dairy plant for processing or manufacturing.
  25. "Producer-processor" or "producer-distributor" means a producer that is also a processor or distributor.
  26. "Raw milk or raw milk products" means products that have not been treated by the process of pasteurization.
  27. "Retail" means the sale of milk or milk products directly to the consumer.
  28. "Sampler" means a person, other than a milk producer or dairy plant employee, who transports samples for official use of raw milk or milk products from a dairy farm to a dairy facility.
  29. "Sampling" means a procedure taking a portion of milk or milk products for grading or testing.
  30. "Shared animal ownership agreement" means any contractual arrangement under which an individual:
    1. Acquires an ownership interest in a milk-producing animal;
    2. Agrees to pay another for, reimburse another for, or otherwise accept financial responsibility for the care and boarding of the milk-producing animal at the dairy farm; and
    3. Is entitled to receive a proportionate share of the animal's raw milk production as a condition of the contractual arrangement.
  31. "Skim milk solids or solids-not-fat" means the total solids in milk after all fat has been removed.
  32. "Standard Methods" means the seventeenth edition of the Standard Methods for the Examination of Dairy Products published by the American public health association.
  33. "Testing" means an examination of milk or milk products by sight, odor, taste, or laboratory analysis to determine the quality, wholesomeness, or composition of the product.
  34. "Wholesale" means the sale of milk or milk products to a retail dealer for resale.

4.1-25-02. Licenses required - Fees - Term 🗎 PDF 

  1. The license required by this section must be obtained for each place of business in this state owned or operated by:
    1. A producer-processor, peddler, or distributor;
    2. A person purchasing milk or milk products for processing or manufacturing;
    3. A person owning, operating, or leasing a creamery, cheese factory, condensery, drying plant, ice cream plant, ice milk plant, or milk plant;
    4. A person owning, operating, or leasing any other business engaged in the processing or manufacturing of milk or milk products; and
    5. An organization acquiring milk or milk products on its own behalf or as an agent of others.
  2. Application for a license must be made to the commissioner upon forms prescribed by the commissioner. An application for a license constitutes the implied consent of the applicant for department inspections. If the commissioner finds the applicant conforms to the North Dakota laws and the rules of the commissioner, the commissioner shall issue a license to conduct the operations listed on the license.
  3. If a licensee wishes to conduct operations other than those listed on an existing license, the licensee may make an application to the commissioner for a license to conduct additional operations. If the commissioner finds the additional operations are in conformance with North Dakota laws and the rules of the commissioner, the commissioner shall approve them.
  4. The license must be posted conspicuously in each licensed business.
  5. All licenses issued under this section expire on the thirtieth day of June of each year and are not transferable.
  6. The license fee is twenty-five dollars.
  7. Every organization acquiring milk or milk products as an agent of others is deemed to be a purchaser of milk from a dairy producer.

4.1-25-03. Financial records release authorization with application for licensure 🗎 PDF 

A purchaser of milk in North Dakota shall file with the license application a release authorizing the commissioner to access the applicant's financial records held by financial institutions, accountants, and others. The release must be in a form approved by the commissioner. The commissioner may use the release in the course of licensing or relicensing the applicant, conducting an investigation of a complaint against the applicant due to a complaint, or when evidence is obtained establishing probable cause of a violation of this chapter. Information gained through the use of a release is confidential. The commissioner may furnish information obtained through the use of the records release to any state agency and to any prosecutorial official requiring the information for use in performing official duties.

4.1-25-04. Financial condition - Assurance of prompt payment 🗎 PDF 

Each applicant for a license under section 4.1-25-02 who intends to purchase milk from dairy producers shall satisfy the department that the financial condition of the applicant is adequate to assure prompt payment to the dairy producers for purchased milk.

4.1-25-05. Statement of business operations or financial condition - Filing - Review by Bank of North Dakota - Confidential - Audited 🗎 PDF 

Each applicant for a license under section 4.1-25-02 who purchases milk from a dairy producer annually shall file with the department an audited financial statement prepared by an independent certified public accountant or licensed public accountant in accordance with generally accepted accounting practices and principles, verified by the accountant as accurately representing business operations and financial conditions of the applicant for which the statement is rendered, prepared as of the close of the most recent fiscal year of the applicant. In lieu of filing an audited financial statement, an applicant may file other forms of security as provided in section 4.1-25-06. All audited financial statements must be reviewed by the Bank of North Dakota. All statements under this section are confidential and not open for public inspection. The department may require additional statements to be audited by a certified public accountant or a licensed public accountant.

4.1-25-06. Surety bond, trustee agreement, or other security or assurances 🗎 PDF 

If it appears the financial condition of any applicant or licensee who purchases milk from a dairy producer is not adequate to reasonably assure payment to dairy producers when due for the milk to be purchased, or in lieu of annually filing with the department an audited financial statement as required in section 4.1-25-05, the department shall require from an applicant or licensee security or other assurances in one of the following forms:
  1. The filing of a surety bond acceptable to the department. The amount of the surety bond must be determined on the basis of average purchases of milk from dairy producers during the previous year. If payment for milk purchased from dairy producers is made on a weekly basis, the amount of the surety bond must be at least in an amount equal to the average weekly purchases of milk. If payment for milk purchased from dairy producers is made on a semimonthly basis, the amount of the surety bond must be at least in an amount equal to the average semimonthly purchases of milk. If the period of payment for milk purchased from dairy producers is made on a basis involving periods of time greater than semimonthly, the amount of the surety bond must be at least in an amount equal to the average purchases of milk for that greater period of time. The amount of the bond for each period of payment must also include an amount equal to at least the average purchases for three days following the close of the period of payment. The amount of the surety bond of any licensee who pays assignments to creditors of a producer of milk at a lesser frequency than the licensee pays the producer must also include an amount equal to the value of assignments from the prior payment period. The commissioner must be named as obligee, but the bond or draft must be held for the purpose of protecting, and for the benefit of, any dairy producer, and the full and complete payment to that dairy producer for all milk purchased by the licensee. The aggregate liability of the bonding company or the department to all dairy producers may not exceed the amount of the bond.
  2. Providing an amount of protection for dairy producers equal to the amount of protection provided in subsection 1. The security must be held by the department solely for the protection of dairy producers, in one or more of the following forms:
    1. Cash deposited with a bank or trust company and held under an escrow agreement with the department;
    2. Bonds of the United States deposited with the department;
    3. Stocks, bonds, or other marketable securities at current market values, which have regularly reported quotations, deposited with the department; or
    4. A certified bank draft, certified check, irrevocable letter of credit, or certificate of deposit held in favor of the department.
  3. The filing of an agreement providing complete control over all manufactured or processed milk and dairy products by a trustee to be selected at least annually by the dairy producers. The trustee shall file a trustee's bond and contracts signed by the owner or operator and the purchaser of the dairy products requiring that payment for all dairy products sold be made to the trustee. The trustee shall maintain a separate bank account for that purpose and at least annually shall render a true and correct account of trustee dealings to the department and to the dairy producers.

4.1-25-07. Financial basis for license - Statement to producer - Notification to department 🗎 PDF 

All milk purchasers licensed under section 4.1-25-02 shall inform producers of the financial basis on which the license was issued, including the type and amount of security, if any, filed under section 4.1-25-06, by an annual written statement to each producer. A person may not receive milk that will increase the amount due and accrued beyond the amount represented as a basis for the issuance of a license without first notifying the department.

4.1-25-08. Additional security 🗎 PDF 

When the department determines the value of milk purchased or received from producers has increased or an increase reasonably may be anticipated, so the total amount of security does not comply with the amount required by subsection 1 or 2 of section 4.1-25-06, the department shall require additional security to afford producers the protection intended by section 4.1-25-06. The department may suspend or revoke any license if the licensee fails to provide the additional security required by the department under this section.

4.1-25-09. Filing of security before license year 🗎 PDF 

An applicant or licensee shall file bonds or other security for the license year with the department by the first day of June immediately preceding the beginning of each license year. If an applicant or licensee fails to file a surety bond or other security by July first of the license year and has not been relieved from filing a surety bond or other security, the department shall notify producers that the applicant or licensee has not filed any security or made other provisions for assuring payments for milk purchases for the license year.

4.1-25-10. Failure to file security - Notice to producers 🗎 PDF 

  1. If an applicant or licensee fails to file a surety bond or other security within the time fixed by section 4.1-25-09 or fails to comply with a demand for additional security, the department shall publish in newspapers having circulation in the areas where the producers whose milk is sold or delivered to the applicant or licensee reside, a notice stating:
    1. The department made a demand for additional security from the applicant or licensee;
    2. The applicant or licensee has failed to comply;
    3. The department does not have on file a surety bond or other security as demanded; and
    4. Adequate security to protect producers may not be available to them.
  2. In addition to a published notice to producers, the department shall send, by registered mail, a copy of the notice to each producer delivering milk to the applicant or licensee as determined from available records. The notice must be addressed to the producer's last-known address.

4.1-25-11. Out-of-state dealers, processors, or producers not exempt 🗎 PDF 

Sections 4.1-25-04 through 4.1-25-13 apply to all milk purchasers licensed under section 4.1-25-02 doing business in this state. The protection to producers afforded by sections 4.1-25-04 through 4.1-25-13 is available to the producers of any state selling milk to any licensee licensed under section 4.1-25-02, but the surety bond or other security required by sections 4.1-25-06 and 4.1-25-08 is payable only for the benefit of producers who are located within this state.

4.1-25-12. Entry, inspection, and investigation 🗎 PDF 

Authorized representatives of the department may enter, at reasonable hours, places of business where a licensee or license applicant maintains books, papers, accounts, records, or other documents related to the production, storage, processing, manufacturing, or sale of dairy products. The commissioner may subpoena, and the commissioner's authorized representative may inspect, audit, and make copies of relevant books, papers, records, accounts, or other documents of persons doing business with licensees. Any information gained by the department or by the commissioner under this section is confidential and may be used only for the administration of this chapter. The department or the commissioner may divulge the information when testifying in any departmental administrative hearing, in a duly noticed proceeding before the milk marketing board, or in any court proceeding in which the department or the commissioner is a party. This chapter does not prevent the department or the commissioner from using the information to compile or disseminate general statistical data so long as the data does not reveal individual information for any licensee or license applicant. The commissioner may subpoena and take the testimony under oath of persons believed by the commissioner to have information needed in administering and enforcing this chapter.

4.1-25-13. Records and reports 🗎 PDF 

Licensees shall maintain the records the commissioner deems necessary to assure the financial condition of the licensee is adequate to assure prompt payment to producers.

4.1-25-14. Department to become trustee upon default in required security 🗎 PDF 

If a licensee defaults on any of the required security provisions, the licensee is deemed to be insolvent for purposes of this chapter. The claim for relief for damages and the amount recovered in any action for the conversion of milk or milk products, purchased by the licensee while the license is in effect, and the assets of the licensee not subjected to any claim in federal bankruptcy court by a secured or general creditor within four months of the appointment of the department as trustee under this chapter, constitute a trust fund in the hands of the department for all persons having a claim for relief against the licensee on the required security.

4.1-25-15. Application by department for appointment of trustee - Hearing - Appointment 🗎 PDF 

Upon the insolvency of a licensee as defined in section 4.1-25-14, the department shall apply to the district court of the county in which the licensee maintains its principal place of business for the appointment of the department as trustee. Upon notice to the licensee as the court prescribes, but not exceeding ten days, or upon waiver of such notice in writing by the licensee, the court shall proceed to hear and determine the application. If it appears to the court the licensee is insolvent within the meaning of this chapter and it is in the best interest of persons holding claims against the licensee that the department execute the trust, the court shall issue an order appointing the department as a trustee, without bond, and the department shall proceed in the manner set out in this chapter without further direction from the court.

4.1-25-16. Notice to file claims - When claims barred 🗎 PDF 

The department, as trustee, shall notify all persons having claims against the licensee personally by certified mail to file the claims with the department. Any person who fails to file a claim with the department and to surrender any receipts obtained from the licensee within thirty days after receiving notice is barred from pursuing the claim in any fund marshalled by the department as prescribed in this chapter. The department may proceed as prescribed by law when all producers have responded to the notification.

4.1-25-17. Remedy of claimants - Separate action by claimant permissible 🗎 PDF 

A claimant has no separate claim for relief against the required security of a licensee unless the department fails or refuses to apply for appointment as trustee under this chapter. Any claimant, either independently or in conjunction with other claimants, may pursue concurrently with the department any other remedy the claimant or claimants may have against the licensee, or against the property of the licensee, for the whole of their claim or claims or for any deficiency that occurs after payments have been made from the trust fund.

4.1-25-18. Appeal or compromising of action by department 🗎 PDF 

The department may prosecute an action for any claims arising under this chapter in any court, may appeal from any adverse judgment to the courts of last resort, and may settle and compromise the action whenever it is in the best interests of the claimants. Upon payment to the department of the amount of any compromise, or of the full amount of any required security, the department may exonerate the person compromising or paying from further liability growing out of the action.

4.1-25-19. Claims collections to be deposited in Bank of North Dakota 🗎 PDF 

All money collected and received by the department as trustee must be deposited in the Bank of North Dakota.

4.1-25-20. Trust fund report - Notice to claimants - Approving or modifying report 🗎 PDF 

Upon recovery of the trust fund, or so much as is possible to recover, or as is necessary to pay all outstanding claims, the department shall file a report in court showing the amount payable upon each claim, after recognizing any proper liens, pledges, assignments, or deductions with legal interest. If the fund proves insufficient to redeem all claims in full, the fund must be prorated among the claimants in a manner the department deems fair and equitable. Once the report is received from the department, the court shall notify all claimants by mail to appear on a day fixed in the notice and show cause why the report should not be approved and the funds distributed as outlined in the report. Upon such hearing the court shall approve or modify the report as justice may require and shall issue an order directing the distribution of the fund and discharging the department as trustee.

4.1-25-21. Attorney general to represent department and may employ assistants - Department need not pay court costs 🗎 PDF 

The attorney general shall represent the department in any action or proceeding brought under section 4.1-25-14, and may employ outside legal assistance when necessary. The attorney general may deduct the expense of retaining outside legal assistance from the trust fund. The department is not required to pay any filing fee or other court cost or disbursement in connection with an application for appointment as trustee or with any action brought under section 4.1-25-14 when the fee, cost, or disbursement accrues to the state or to a county of the state.

4.1-25-22. License needed to sample, haul, or test - Training - Examination - Term - Fee 🗎 PDF 

A person may not sample, haul, or test milk or milk products for the purpose of determining the value or grade without obtaining a license from the department. In case of illness or necessary absence, a licensee may appoint a substitute for a period not to exceed six days in one calendar year, unless specific approval for a longer period is obtained from the commissioner. The licensee is responsible for the acts of the substitute. An applicant shall file an application with the department stating the type of sampling, hauling, or testing for which the applicant wishes to be licensed. Before a license is issued, the applicant shall receive training in the sampling of milk or milk products as may be required by the department, and shall pass a written examination prepared and administered by the department. The applicant must show knowledge of the requirements of this chapter and must prove by actual demonstration that the applicant is competent and qualified to perform each type of sampling and testing listed on the application. The commissioner shall issue a license which states the types of sampling, hauling, or testing for which the applicant is qualified. Additions may be added to the application form and license, without charge, after the license has been issued, upon the request of the licensee, after receiving additional training and passing the required examinations. Examinations must be given by the department at times and places as the department shall determine. A licensee is not required to take additional examinations when renewing a license unless required by the commissioner. All testers and samplers shall attend a training session sponsored by the department every two years. Retraining or retesting or both may be required when the commissioner reasonably determines it to be necessary. Licenses issued under this section expire on December thirtieth of each year. Testers' licenses must be posted conspicuously in the licensee's place of operation, and are not transferable. Samplers' licenses must be carried by the sampler at all times during sampling activities and are not transferable. The annual license fee is ten dollars. A five dollar penalty fee is applied if renewals are not paid by January thirty-first.

4.1-25-23. Commissioner to investigate complaint 🗎 PDF 

The commissioner shall investigate any complaint claiming any provision of this chapter or the rules of the commissioner have been violated. If the commissioner finds a provision of this chapter or the rules of the commissioner have been violated, the commissioner may take any action deemed appropriate.

4.1-25-24. Inspections 🗎 PDF 

Upon notification, the commissioner shall have free access to all places of business, buildings, vehicles, and equipment used in the production, storage, handling, processing, manufacturing, transporting, and marketing of milk and milk products, and their substitutes. The commissioner may open and inspect any container suspected of containing a substance produced, stored, handled, processed, manufactured, transported, sold, or offered for sale under the provisions of this chapter. It is a violation of this chapter to refuse to allow inspections of any dairy facilities licensed under this chapter. The commissioner may suspend a license for failure to comply with this section.

4.1-25-25. Suspension or revocation of license - Judicial review - Emergency order 🗎 PDF 

Any proceedings under this chapter for the suspension or revocation of a license, or to determine compliance with this chapter or the rules and orders of the commissioner, must be conducted in accordance with the provisions of chapter 28-32 and appeals may be made as provided. When an emergency exists requiring immediate action to protect the public health and safety, without notice or hearing, the commissioner may issue an order reciting the existence of the emergency and requiring action be taken to protect the public health and safety. Notwithstanding any provision of this chapter, the order is effective immediately, but on application to the department an interested person must be afforded a hearing before the department within ten days. On the basis of the hearing, the emergency order must be continued, modified, or revoked within thirty days after the hearing.

4.1-25-26. Sampling and testing procedures - Equipment - Supplies 🗎 PDF 

The laboratory procedures, equipment, chemicals, and other apparatus or substances used in the sampling, hauling, or testing of milk or milk products must conform to those described in the Standard Methods, a copy of which must be kept on file in the department. Any equipment, chemicals, or other apparatus or substance used in the sampling, hauling, or testing of milk or milk products not conforming to the requirements of this chapter may not be sold or offered for sale. The commissioner, through the adoption of rules, may alter, amend, or prohibit any specific requirement of this section and may approve other sampling, hauling, or testing procedures or equipment. The commissioner, when appropriate, may check calibration of farm bulk milk tanks and equipment.

4.1-25-27. Sampling of milk 🗎 PDF 

Every purchaser of milk from a dairy producer shall collect a minimum sample of two ounces [59.15 milliliters] from each bulk tank of milk received from a producer. Samples must be collected and maintained in accordance with those procedures contained in the Standard Methods. Records must be kept, which readily identify the sample, with those items used to determine payment for the milk. Those items must include weight, butterfat content, protein, solids-not-fat, and the total amount of money paid for the milk.

4.1-25-28. Standards for the production of manufacturing grade milk - Minimum standards of rules 🗎 PDF 

At a minimum, rules governing the production and processing of milk for manufactured dairy products must comply with United States department of agriculture minimum standards for manufacturing grade dairy products.

4.1-25-29. Standards for dairy manufacturing or processing - Minimum standards of rules 🗎 PDF 

At a minimum, rules governing the approval of dairy processing and manufacturing plants and standards for grades of dairy products must comply with United States department of agriculture general specifications for approved dairy plants and standards for grades of dairy products. A plant may not be operated or any dairy products sold in violation of these rules.

4.1-25-30. Standards for grade A milk and milk products - Adoption of rules 🗎 PDF 

Only grade A milk may be sold as a fluid beverage for human consumption. The minimum standards for milk and milk products designated as grade A are the same as the minimum requirements of the pasteurized milk ordinance. The commissioner may adopt rules imposing other standards in the interest of public safety, wholesomeness of product, consumer interest, sanitation, good supply, saleability, and promotion of grade A milk and milk products.

4.1-25-31. State milk sanitation rating and sampling surveillance officer - Duties - Guidelines 🗎 PDF 

The state milk sanitation rating and sampling surveillance officer is responsible for the rating and certification of milk and dairy products. The rating and certification of milk and dairy products must be in accordance with the procedures outlined in the public health service food and drug administration publication entitled "Methods of Making Sanitation Ratings of Milk Shippers and the Certifications/Listings of Single-Service Containers and/or Closures for Milk and/or Milk Products Manufacturers 2023 Revision, Edition" and the sampling of milk and dairy products must be in accordance with the guidelines in the Standard Methods.

4.1-25-32. Milk laboratory evaluations officer - Duties - Guidelines 🗎 PDF 

The milk laboratory evaluations officer is responsible for the certification and evaluation of milk and dairy products laboratories within the state. Evaluations and certification of milk laboratories must be made in accordance with the Standard Methods and the procedures outlined in the public health service food and drug administration publication entitled "Evaluation of Milk Laboratories - 2023 Edition".

4.1-25-33. Grade A pasteurized milk ordinance 🗎 PDF 

Dairy producers, processors, and manufacturers shall comply with the pasteurized milk ordinance and follow the standards set by the "Procedures Governing the Cooperative State-Public Health Service Food and Drug Administration Program of the National Conference on Interstate Milk Shipments, 2023 Revision".

4.1-25-34. Quality records to be kept - Term 🗎 PDF 

Adequate records for testing and grading in conformance with this chapter and the rules of the commissioner must be kept by each business sampling or testing milk for at least twelve months in a manner approved by the commissioner.

4.1-25-35. Milk haulers - License required - Commissioner to adopt rules 🗎 PDF 

A person may not own or operate any tank truck, bulk milk truck, or other vehicle used or designed to carry bulk raw milk without a license issued by the department. The commissioner shall adopt rules governing the operation, inspection, design, and licensure of such persons. The license of any person operating a vehicle in violation of this section or the rules of the commissioner is subject to revocation or suspension in accordance with procedure established by law. A license to haul milk issued under this section may be issued in conjunction with or as part of any license to sample or test milk or milk products issued pursuant to section 4.1-25-22.

4.1-25-36. Adulterated, impure, or unwholesome milk or milk products not to be transported, stored, sold, or offered for sale 🗎 PDF 

Any milk or milk products produced or kept under unclean or unsanitary conditions or; produced from animals that are diseased or fed unwholesome, impure, or toxic feed; or milk that tastes from colostrum, must be deemed impure and unwholesome. Milk or milk product that is deemed to be adulterated, impure, or unwholesome may not be transported, stored, sold, or offered for sale in this state.

4.1-25-37. Sale of milk or milk products in violation of this chapter prohibited 🗎 PDF 

A person may not sell, or offer for sale, any milk or milk product, their imitations or substitutes, that is produced, processed, manufactured, transported, or stored, in violation of the laws of this state or the rules of the commissioner, or which do not subscribe to the definition as stated in this chapter or defined by the commissioner.

4.1-25-38. Exception for uses as directed by physicians 🗎 PDF 

This chapter does not prohibit the manufacture or sale of filled dairy products or imitation milk and imitation milk products when those products are prominently labeled to show their composition and the fact the products are sold customarily for use as directed by order of a physician and are prepared and designed for medicinal or special dietary use.

4.1-25-39. Sale of foods not imitation milk, imitation milk products, or filled dairy products 🗎 PDF 

This chapter does not prohibit the manufacture or sale of proprietary foods that are clearly not imitation milk, imitation milk products, or filled dairy products; which do not contain imitation milk, imitation milk product, or filled dairy product; and which are not conducive to substitution, confusion, deception, and fraud upon the purchasers of milk, milk products, or filled dairy products by their manufacture or sale.

4.1-25-40. Shared animal ownership agreement - Raw milk 🗎 PDF 

It is not a violation of this chapter to transfer or obtain raw milk under a shared animal ownership agreement. A person may not resell raw milk or raw milk products obtained under a shared animal ownership agreement.

4.1-25-40.1. Sale of raw milk or raw milk products directly to a consumer - Prohibitions - Exemptions 🗎 PDF 

  1. A farm may sell raw milk or raw milk products directly to the end consumer in this state for personal consumption.
  2. A farm may not sell raw milk or raw milk products to a wholesaler or retail store for mass consumption under this chapter. The seller may not sell raw milk or raw milk products outside this state. The sale may not involve interstate commerce. Raw milk or raw milk products may not be donated.
  3. A farm selling raw milk or raw milk products under the provisions of this section is not subject to any other provision of this chapter, chapters 4.1-05, 4.1-26, 19-02.1, or 23-9, or title 64.
  4. A farm selling raw milk or raw milk products shall label the products as "raw milk" or "made with raw milk".

4.1-25-41. Labeling and identity standards 🗎 PDF 

A person who sells milk or milk products at retail in the state shall comply with the labeling standards and standards of identity set forth in 21 U.S.C. 343(q)(r) and in rules adopted by the commissioner.

4.1-25-42. Reports - Blanks - When made - Contents 🗎 PDF 

The commissioner shall furnish blanks to all licensed creameries, cheese factories, condenseries, drying plants, ice cream plants, ice milk plants, milk plants, and producer-distributors for the purpose of making a report of the amount of milk and milk products handled. Each proprietor or manager of those businesses shall report to the commissioner on the last days of June and of December of each year, or immediately upon cessation of operation, the pounds [kilograms] of butterfat in cream, the pounds [kilograms] of manufacturing grade milk, and the pounds [kilograms] of bottling milk purchased during the period covered by the report, the aggregate amount paid for each, the number of pounds [kilograms] of butter and cheese, and the number of gallons [liters] of ice cream and ice milk manufactured during such period.

4.1-25-43. Test results disputes 🗎 PDF 

If a disagreement between a seller and a buyer or the legal representatives of both or either arises over the percentage of butterfat contained in any quantity of milk sold or offered for sale at the request of the owner and in the owner's presence, a sample of the milk obtained as provided in section 4.1-25-27 and mutually agreed upon by the interested parties as being a representative sample must be sealed and mailed by the buyer to the office of the commissioner. Each sample mailed to the commissioner must include a statement giving the name and address of the seller and the buyer of the milk in question, the net weight, the percentage and amount of butterfat contained, the price per pound [.45 kilogram] for butterfat, and the amount of money paid or offered in payment for the same and bearing the signature of the seller and the buyer. The commissioner shall determine the percentage of butterfat contained in the sample and shall report of the result in triplicate, the original to be filed in the commissioner's office, one copy to be sent to the seller, and one to the buyer of the milk. The percentage of butterfat determined and reported constitutes the "official butterfat test" and is the basis on which final settlement must be made. The fee for the official butterfat test and any other tests required must be in an amount as set by rule of the commissioner, considering the actual costs of the test, and the fee must be mailed to the commissioner at the time of forwarding the sample for the official butterfat or other test.

4.1-25-44. Test sample disputes 🗎 PDF 

If the buyer and seller do not agree upon a sample of milk as provided in section 4.1-25-43, the party selling or offering for sale that milk may require that the buyer or prospective buyer to forward the sample taken to the department in compliance with section 4.1-25-27. Each sample so forwarded must include an affidavit from the buyer or prospective buyer, stating that the sample was taken in compliance with the provisions of section 4.1-25-27, and the statement must contain all information required in section 4.1-25-43, except that the signature of the seller is not required. Each sample must be tested and reported on as prescribed in section 4.1-25-43, and the percentage of butterfat determined and reported constitutes the "official butterfat test" and is the basis on which final settlement must be made.

4.1-25-45. Standards considered minimum - Municipality may provide more stringent standards 🗎 PDF 

The standards in this chapter constitute only minimum standards. This chapter may not be construed to prevent any municipality from providing, by ordinance, more stringent or comprehensive standards than are contained within this chapter. Neither this chapter nor in the rules of the commissioner may be construed to prevent any person concerned with the dairy business from using standards, inspections, or other practices or procedures that are more stringent or comprehensive.

4.1-25-46. Fees and penalties collected to be placed in general fund 🗎 PDF 

All fees and penalties collected under this chapter must be deposited with the state treasurer and credited to the general fund.

4.1-25-47. Disposal of illegal milk or milk products - Seizure 🗎 PDF 

Any milk or cream offered for sale in violation of any provision of this chapter or the rules of the commissioner must be colored with a harmless food coloring and returned to the seller. In addition, any milk or milk product that is in violation of any provision of this chapter or the rules of the commissioner may be seized or ordered held by the commissioner and must be disposed of as any other illegal food or drug as provided in chapter 19-02.1.

4.1-25-48. Penalty for violation of chapter - Additional civil penalty - Failure to pay civil penalty 🗎 PDF 

A person violating any provision of this chapter or any rule or order of the commissioner, for which another criminal penalty is not specifically provided is guilty of a class B misdemeanor. In addition, a civil penalty not to exceed five hundred dollars per day for each violation or continuing violation may be imposed. The civil penalty may be imposed by the courts in a civil proceeding or by the commissioner through an administrative hearing under chapter 28-32. If a civil penalty is imposed by the commissioner through an administrative hearing and the civil penalty is not paid, the commissioner may collect the civil penalty by a civil proceeding in any appropriate court. The commissioner may suspend or revoke a license issued under this chapter for failure to pay a civil penalty within thirty days after a final determination is made that the civil penalty is owed. The commissioner may refuse to renew or issue a license if the licensee or license applicant has repeatedly violated the provisions of this chapter or rules or orders of the commissioner.

4.1-25-49. State's attorney's endorsement to complaint unnecessary upon violation of chapter 🗎 PDF 

A complaint made for a violation of this chapter does not require the endorsement of the state's attorney, but when the court hearing a complaint made is satisfied of the truthfulness of the complaint, the court shall issue a warrant.

4.1-25-50. Rules 🗎 PDF 

The commissioner may adopt rules under chapter 28-32 to implement this chapter.

4.1-25-51. Shared animal ownership agreement rules limitation 🗎 PDF 

Notwithstanding chapter 28-32, the commissioner may not adopt any rule that restricts, limits, or imposes additional requirements on any person transferring or obtaining raw milk in accordance with the terms of a shared animal ownership agreement.

4.1-25-52. Enforcement 🗎 PDF 

The commissioner shall administer and supervise the enforcement of this chapter, provide for periodic inspections and investigations deemed necessary to ensure compliance with this chapter or the rules under this chapter, receive and provide for the investigation of complaints; and provide for the institution and prosecution of civil or criminal actions or both. This chapter and the rules under this chapter may be enforced by injunction in any court having jurisdiction to grant injunctive relief. Filled dairy products, imitation milk, or imitation milk products, illegally held or otherwise in violation of this chapter may be seized and disposed under an appropriate court order.

Chapter 26 — Milk Marketing Board

4.1-26-01. Definitions 🗎 PDF 

Unless the context otherwise requires, the definitions in this section apply to this chapter.
  1. "Bulk milk" means milk that is purchased by a processor from a person other than a dairy farmer and which is purchased in a container other than the one in which the milk will be resold to a retailer or to a consumer.
  2. "Dairy farmer" means any person who produces grade A raw milk for sale to a processor.
  3. "Dairy farmer-processor" means a person who is both a dairy farmer and a processor and who does not purchase raw milk from other dairy farmers, provided:
    1. A dairy farmer-processor is a dairy farmer with respect to the sale of raw milk produced by that person to a processor; and
    2. A dairy farmer-processor is a processor with respect to any processing, manufacturing, or sale of milk products or frozen dairy products or with respect to the receipt of bulk milk from a source other than that person's own production.
  4. "Dealer" means any processor or distributor.
  5. "Distributor" means a person, other than a processor, that sells to consumers on one or more home delivery routes, that sells to retailers, or that sells to both.
  6. "Distributor price" means the price at which any milk product or frozen dairy product, not intended for resale at a fixed location owned by a distributor, is purchased by a distributor.
  7. "Frozen dairy product" means:
    1. Ice cream;
    2. Ice milk;
    3. Frozen custard;
    4. Fruit sherbet;
    5. The mix from which any such product listed in subdivisions a through d is made; and
    6. Any frozen product that contains milk solids not fat, or butterfat, and which is commonly referred to in the dairy industry as a novelty.
  8. "Marketing area" means a geographical portion of this state, within which minimum or maximum prices established by the board must be uniform.
  9. "Milk" means the lacteal secretion, practically free of colostrum, obtained by the complete milking of a healthy hooved mammal, including any member of the order Cetartiodactyla and including a member of the family:
    1. Bovidae, including cattle, water buffalo, sheep, goats, and yaks;
    2. Cervidae, including deer, reindeer, and moose;
    3. Equidae, including horses and donkeys; and
    4. Camelidae, including llamas, alpacas, and camels.
  10. "Milk product" means:
      1. Buttermilk, including plain and creamed;
      2. Concentrated milk;
      3. Creamline milk;
      4. Flavored milk;
      5. Flavored skim milk;
      6. Fortified milk;
      7. Homogenized milk;
      8. Low fat milk;
      9. Raw milk;
      10. Regular milk;
      11. Skim milk;
      12. Special milk;
      13. Standardized milk; and
      14. Whole pasteurized milk;
      1. Cottage cheese; and
      2. Creamed cottage cheese;
    3. Eggnog;
      1. Fluid cream;
      2. Half and half;
      3. Sour cream;
      4. Whipped cream; and
      5. Whipping cream; and
    5. Yogurt.
    1. "Processor" means a person who:
      1. Processes or manufactures milk products or frozen dairy products;
      2. Purchases raw milk from a grade A dairy farmer for resale to a person who processes or manufactures milk products or frozen dairy products; or
      3. Purchases bulk milk from anyone for resale to a person who processes or manufactures milk products or frozen dairy products.
    2. The term "processor" does not include a person who purchases ice cream mix, ice milk mix, or other frozen dairy products, provided:
      1. The person's processing activities are limited to converting the mix into a frozen dairy product; and
      2. More than half the sales of which are then made by the person to consumers at retail on the premises where the processing activities take place.
  12. "Retail price" means the price at which any milk product or frozen dairy product is purchased by any person who makes such purchase for purposes other than resale.
  13. "Retailer" means any person who is engaged in transferring title to milk products or frozen dairy products to consumers at one or more retail establishments located in this state.
  14. "Stabilization plan" means a plan that contains minimum prices, maximum prices, or both, and enforcement mechanisms.
  15. "Wholesale price" means the price at which any milk product or frozen dairy product is purchased by a retailer.

4.1-26-02. Milk marketing board - Membership 🗎 PDF 

  1. The milk marketing board consists of:
    1. A dairy farmer appointed by the governor from a list of two names submitted by the milk producers association of North Dakota;
    2. A processor appointed by the governor from a list of two names submitted by the North Dakota dairy industries association;
    3. A retailer appointed by the governor from a list of two names submitted by the North Dakota grocers association; and
    4. Two consumer representatives appointed by the governor, provided that neither consumer representative may have a financial interest in a dairy farm nor in an entity that processes, distributes, or sells milk products.
  2. An individual is not qualified to serve on the board if the individual held any other public office, in an elected or an appointed capacity, during the two-year period preceding appointment to the board.
  3. A member of the board may not hold any other public office, in an elected or an appointed capacity, during the member's term of office.
  4. In considering individuals for appointment to the board, the governor shall ensure that a geographic balance is maintained.

4.1-26-03. Terms of office 🗎 PDF 

  1. The term of office for each member is five years and begins on July first.
  2. Terms of office must be staggered so that no more than one term expires each year.
  3. If at any time during a member's term the member ceases to possess any of the qualifications required by this chapter, the member's office is deemed vacant and the governor shall appoint another individual for the remainder of the term.

4.1-26-04. Compensation 🗎 PDF 

Each member of the board is entitled to receive compensation in the amount established by the board, but not exceeding one hundred thirty-five dollars per day, plus reimbursement for expenses as provided by law for state officers, if the member is attending meetings or performing duties directed by the board.

4.1-26-05. Chairman - Meetings 🗎 PDF 

  1. Annually, the board shall elect one member to serve as the chairman.
  2. The chairman shall call all meetings of the board and shall call a special meeting of the board within seven days when petitioned to do so by three board members.

4.1-26-06. Board powers 🗎 PDF 

The board may:
  1. Do all things necessary and proper to enforce and administer this chapter;
  2. Employ and compensate necessary personnel;
  3. Employ an attorney licensed in this state;
  4. Serve as a mediator or an arbitrator in any dispute among or between dairy farmers, processors, distributors, retailers, or consumers, provided:
    1. All parties to the dispute request the board to provide such services; and
    2. The dispute pertains to the production, transportation, processing, storage, distribution, or sale of milk products or frozen dairy products; and
  5. Contract with any person for any purpose related to this chapter.

4.1-26-07. Director 🗎 PDF 

The board shall employ and compensate a director and annually review the appointment of the director. The director serves at the pleasure of the board.

4.1-26-08. Authority of governmental entities 🗎 PDF 

  1. This chapter does not limit, decrease, or amend the authority of the agriculture commissioner, any public board of health, or any public health official, with respect to matters of health and sanitation.
  2. This chapter does not authorize the milk marketing board to regulate the sale of raw milk that is not grade A.

4.1-26-09. Milk marketing areas - Boundaries 🗎 PDF 

  1. The milk marketing board shall divide the state into milk marketing areas.
  2. All real property in the state must belong to a milk marketing area.
  3. The board may increase the number of marketing areas in the state, decrease the number of marketing areas in the state, or alter the boundaries of marketing areas, provided the board holds a hearing in accordance with chapter 28-32 and considers:
    1. Testimony and documentary evidence regarding the production, distribution, and sale of milk products and frozen dairy products in the areas;
    2. The regulation of prices paid by processors for raw milk in accordance with federal milk marketing orders; and
    3. Any other factors affecting implementation of this chapter.

4.1-26-10. Milk stabilization plans - Required provisions 🗎 PDF 

The milk marketing board shall establish a milk stabilization plan for each milk marketing area.
    1. Each milk stabilization plan must include the minimum price that processors located within the particular milk marketing area must pay to dairy farmers for raw milk.
    2. In establishing the minimum price, as required by this subsection, the board shall consider various factors pertinent to the milk marketing area, including:
      1. Supplies of raw milk;
      2. Reserve supplies of raw milk;
      3. Production and retail sales data;
      4. Feed prices; and
      5. Wage rates.
    1. Each milk stabilization plan must include the minimum price that a processor must charge a retailer for milk products, provided the minimum price for each item is applicable, regardless of the location at which the retailer accepts delivery.
    2. Each milk stabilization plan must include the minimum price that a distributor must charge a retailer for milk products, provided the minimum price for each item is applicable, regardless of the location at which the retailer accepts delivery.
    3. Each milk stabilization plan must include the minimum price that any person must charge a consumer for milk products.
    4. In establishing the minimum price, as required by this subsection, the board shall consider various factors pertinent to the milk marketing area, including:
      1. Raw milk prices;
      2. Processing and distribution costs;
      3. Returns upon investment; and
      4. Retail sales volumes.

4.1-26-11. Milk stabilization plans - Optional provisions 🗎 PDF 

    1. A milk stabilization plan established in accordance with section 4.1-26-10 may include the minimum price that must be charged for milk products and frozen dairy products by any person other than those referenced in subsection 2 of section 4.1-26-10.
      1. Nothing in this subsection requires the establishment of minimum prices for all items in a category.
      2. Nothing in this subsection requires the establishment of both minimum wholesale and retail prices for a particular item.
  2. A milk stabilization plan established in accordance with section 4.1-26-10 may provide for a classified pricing system predicated upon utilization and may provide for a marketwide pooling arrangement or a handler pooling arrangement, as defined in the Agricultural Marketing Agreement Act of 1937 [7 U.S.C. 601 et seq.], as amended.
  3. If some portion of a milk marketing area falls under the jurisdiction of a federal milk marketing order, a milk stabilization plan established in accordance with section 4.1-26-10 for the marketing area may require that licensed processors subject to both the milk stabilization plan and the federal milk marketing order:
    1. Pay minimum raw milk class prices that exceed the minimum raw milk class prices established by the federal milk marketing order; and
    2. Pay the difference between the federal and state minimums directly to dairy farmers, on a handler pool basis.
  4. A milk stabilization plan established in accordance with section 4.1-26-10 may contain a formula that automatically changes the minimum price payable to dairy farmers, provided the formula is based on changes in the factors set forth in subdivision b of subsection 1 of section 4.1-26-10.
  5. A milk stabilization plan established in accordance with section 4.1-26-10 may:
    1. Establish the prices payable by a processor for raw milk purchased from sources other than dairy farmers; and
    2. Contain provisions necessary to ensure that the prices paid for butterfat and milk solids not fat, whether in the form of raw milk or otherwise, are uniform for all processors whose raw milk purchases are regulated under the plan.
  6. If a milk stabilization plan established in accordance with section 4.1-26-10 contains a marketwide pooling arrangement, the plan may require that raw milk produced by dairy farmer-processors be included in the pooling arrangement.
  7. A milk stabilization plan established in accordance with section 4.1-26-10 may provide for price adjustments based upon:
    1. The butterfat content of the raw milk;
    2. The location at which the raw milk is received;
    3. The location of a plant receiving raw milk that the processor purchased and thereafter transferred or diverted from the plant at which such raw milk is normally utilized; and
    4. Any other factors for which price adjustments are permitted in the Agricultural Marketing Agreement Act of 1937 [7 U.S.C. 601 et seq.], as amended.

4.1-26-12. Milk stabilization plans - Optional provisions - Maximum prices 🗎 PDF 

  1. A milk stabilization plan established in accordance with section 4.1-26-10 may include maximum prices for sales of milk products by a:
    1. Processor;
    2. Distributor; or
    3. Retailer.
  2. In establishing the maximum prices as permitted by this section, the board must consider various factors pertinent to the milk marketing area, including:
    1. Supplies of raw milk;
    2. Reserve supplies of raw milk;
    3. Production and retail sales data;
    4. Feed prices; and
    5. Wage rates.

4.1-26-13. Milk stabilization plans - Optional provisions - Quantity discounts to retailers 🗎 PDF 

A milk stabilization plan established in accordance with section 4.1-26-10 may permit processors and distributors to provide quantity discounts to retailers, in connection with the sales of milk products and frozen dairy products.
  1. If quantity discounts are permitted, the milk stabilization plan must include for each retailer:
    1. A quantity discount rate for purchases of milk products that is based upon the retailer's total purchases of milk products from all suppliers, during an established base period of one, three, six, or twelve months; and
    2. A quantity discount rate for purchases of frozen dairy products that is based upon the retailer's total purchases of frozen dairy products from all suppliers, during an established base period of one, three, six, or twelve months.
  2. Any processor or distributor delivering milk products or frozen dairy products to an eligible retailer may provide the quantity discounts regardless of the product quantities actually purchased by the eligible retailer from a processor or distributor.
  3. If a retailer operates two or more separate places of business, the quantity discount rate must be applied to each place of business and based upon the quantity of milk products or frozen dairy products that the retailer purchased for resale at each place of business.

4.1-26-14. Milk stabilization plans - Optional provisions - Frozen dairy products - Wholesale price - Filing 🗎 PDF 

  1. A milk stabilization plan established in accordance with this chapter may require that processors and distributors file with the board the uniform wholesale price at which a frozen dairy product will be sold within the marketing area.
  2. If price filings are required, as permitted by this section, the board:
      1. Shall prescribe the time at which and the manner in which the initial price filings must be submitted; and
      2. Shall permit a processor or distributor desiring to meet the lower prices of a competitor to do so in such portions of the marketing area as specified in the amended price filing;
    2. May not prohibit a processor or distributor from meeting lawful competition without delay in connection with the sale of a frozen dairy product; and
    3. May establish other requirements as necessary to implement this section.

4.1-26-15. Cost variances - Recognition 🗎 PDF 

  1. Minimum and maximum prices established in accordance with this chapter for products other than raw milk may reflect packaging cost differences.
  2. Minimum and maximum prices established in accordance with this chapter for home- delivered products may vary from the prices established for products sold to consumers by retailers.

4.1-26-16. Minimum prices payable to dairy farmers - Effect of change 🗎 PDF 

Whenever a milk stabilization plan is changed with respect to the minimum price that processors located within a particular milk marketing area must pay to dairy farmers for raw milk, the milk marketing board shall ensure that simultaneous changes occur in all other minimum and maximum prices established in accordance with this chapter.

4.1-26-17. Licenses 🗎 PDF 

    1. A person must be licensed by the milk marketing board as a dairy farmer if the person sells grade A raw milk that the person has produced to a processor that:
      1. Must be licensed in accordance with this chapter; and
      2. Processes the milk at a plant located in this state.
    2. This subsection is applicable regardless of whether the person's dairy farm is located within or outside of this state.
  2. A person must be licensed as a processor by the milk marketing board if the person:
    1. Operates a processing plant located in this state;
    2. Sells milk products or frozen dairy products to a retailer for resale at a retail establishment in this state, regardless of whether:
      1. The processor's plant is located in this state or outside of this state; or
      2. The retailer takes title to or possession of the products in this state or outside of this state; or
    3. Sells milk products or frozen dairy products to a distributor for resale to:
      1. North Dakota consumers on home delivery; or
      2. A retailer.
  3. A person must be licensed as a distributor by the milk marketing board if the person sells milk products or frozen dairy products to:
    1. North Dakota consumers on one or more home delivery routes; or
    2. A retailer.
    1. A person must be licensed as a retailer by the milk marketing board if the person:
      1. Purchases milk products or frozen dairy products for purposes of resale to consumers; or
      2. Sells milk products or frozen dairy products to consumers.
      1. A person licensed as a dairy farmer, a processor, or a distributor shall also be licensed as a retailer, if the person sells milk products or frozen dairy products to consumers at a fixed place of business located in this state.
      2. Each fixed placed of business referenced in this subdivision requires separate licensure.
  5. In order to effectuate the purchase of milk products and frozen dairy products at wholesale prices, the following entities may be licensed as retailers:
    1. School districts;
    2. Nonpublic schools;
    3. Hospitals;
    4. State institutions; and
    5. Not-for-profit entities.
  6. This section requires separate licensure for each place of business.

4.1-26-18. Vending machine suppliers - Authorization to license 🗎 PDF 

The milk marketing board, by rule, may provide for the licensing of persons engaged in supplying milk products or frozen dairy products to consumers through the use of vending machines.

4.1-26-19. License - Application 🗎 PDF 

To obtain a license required by this chapter, a person must complete an application form and submit it to the milk marketing board.

4.1-26-20. Licenses - Additional requirements 🗎 PDF 

  1. Before a processor may be licensed by the milk marketing board, as required by this chapter, the processor shall obtain a license from the agriculture commissioner, in accordance with chapter 4.1-25.
  2. Before a distributor may be licensed by the board, as required by this chapter, the distributor shall obtain a license from the agriculture commissioner, in accordance with chapter 4.1-25.
  3. Before a dairy farmer may be licensed by the board, as required by this chapter, the dairy farmer shall provide proof of inspection by the agriculture commissioner or the department of health and human services, as provided for in accordance with section 23-01-16.
  4. A person who is a dairy farmer-processor shall obtain both a dairy farmer's license and a processor's license.

4.1-26-21. License application - Hearing 🗎 PDF 

  1. Within thirty days after receiving an application for a license under this chapter, the milk marketing board shall:
    1. Issue the license; or
    2. Notify the applicant of the date on which a hearing will be held to receive evidence relative to the application.
  2. A hearing under this section may not be held less than twenty days after the date on which notice is given, unless the board and the applicant agree to an earlier date.
  3. Within thirty days after the hearing is closed, or as soon thereafter as practicable, the board shall notify the applicant of its decision in the matter.

4.1-26-22. Refusal to license 🗎 PDF 

The milk marketing board may refuse to license any person, except a dairy farmer.

4.1-26-23. Processor's license - Distributor's license - Grounds for denial 🗎 PDF 

The milk marketing board may deny an application for a processor's license or a distributor's license if the board determines that:
  1. Persons currently licensed by the board in that capacity are supplying an adequate variety and quantity of high-quality milk products and frozen dairy products to retailers and consumers in this state;
  2. Deliveries are being made with sufficient regularity and frequency; and
  3. The issuance of additional licenses of the type sought will:
    1. Result in an excess of processing plant capacity;
    2. Tend to increase to unsatisfactory levels the average unit processing or average unit distribution costs for persons already licensed by the board; or
    3. Otherwise tend to prevent achievement of the objectives of this chapter.

4.1-26-24. License application - Required declaration 🗎 PDF 

  1. As a condition of licensure, an applicant for a processor's license shall declare in the application that the applicant:
    1. Will not sell milk products or frozen dairy products to any person who is not properly licensed in accordance with this chapter;
    2. Will sell such milk products or frozen dairy products as are customarily handled by a processor to any retailer who:
      1. Desires to purchase such products from the processor; and
      2. Has a place of business in any community in which the processor processes, distributes, or sells milk products or frozen dairy products; and
    3. Will offer to any retailer the same frequency of delivery and the same in-store services as are customary in the community.
  2. As a condition of licensure, an applicant for a distributor's license shall declare in the application that the applicant:
    1. Will not sell milk products or frozen dairy products to any person who is not licensed in accordance with this chapter;
    2. Will not purchase milk products or frozen dairy products from any person who is not licensed in accordance with this chapter;
    3. Will sell such milk products or frozen dairy products as are customarily handled by a distributor to any retailer who:
      1. Desires to purchase such products from the distributor; and
      2. Has a place of business in any community in which the distributor distributes or sells milk products or frozen dairy products; and
    4. Will offer to any retailer the same frequency of delivery and the same in-store services as are customary in the community.
  3. As a condition of licensure, an applicant for a retailer's license shall declare in the application that the applicant will not purchase milk products or frozen dairy products from any person who is not licensed in accordance with this chapter.
  4. For purposes of this section, "community" means a city, together with any commonly recognized residential or business area adjacent to the city.

4.1-26-25. License - Expiration 🗎 PDF 

A license issued under this chapter is effective until:
  1. There is a change of ownership or of location;
  2. The license is suspended or revoked; or
  3. The business that is licensed is discontinued or is inactive for more than thirty days.

4.1-26-26. License - Fees prohibited 🗎 PDF 

The milk marketing board may not charge a fee for the issuance or maintenance of any license required by this chapter.

4.1-26-27. Assessments - Continuing appropriation 🗎 PDF 

    1. Each licensed processor shall pay to the milk marketing board an amount determined by the board but not exceeding eighteen cents per hundredweight [45.36 kilograms], on all milk and milk equivalents used by the processor in manufacturing milk products and frozen dairy products.
    2. The assessment required in accordance with this section is not imposed on milk products or frozen dairy products sold outside this state.
  2. The assessment required by this section must be calculated quarterly and paid within fourteen days after the end of each calendar quarter.
  3. The board shall forward all moneys received under this chapter to the state treasurer for deposit in the milk marketing fund. All moneys in the milk marketing fund are appropriated on a continuing basis to the board to carry out this chapter.

4.1-26-28. Records - Retention 🗎 PDF 

  1. The milk marketing board shall specify by rule all records that each licensee must maintain.
  2. Each licensee shall retain the records required in accordance with this section for a period of three years.

4.1-26-29. Records - Confidential - Penalty 🗎 PDF 

  1. Any information created, collected, or maintained by the milk marketing board under this chapter is confidential and not subject to the open records requirements of section 44-04-18, except that the board may:
    1. Utilize the information in the administration of this chapter;
    2. Provide testimony regarding the information in a judicial proceeding or an administrative proceeding conducted in accordance with chapter 28-32;
    3. Provide the information to the agriculture commissioner for the purpose of determining a licensee's financial condition, as required by chapter 4.1-25; and
    4. Utilize the information in compiling and disseminating general statistical data.
  2. Any person divulging confidential information in violation of this section is guilty of a class A misdemeanor.

4.1-26-30. Prohibitions 🗎 PDF 

  1. A licensee may not buy or sell any milk product or any frozen dairy product at a price that is less than the minimum price nor more than the maximum price set forth in the applicable milk stabilization plan.
  2. If price filings are required, as permitted by section 4.1-26-14:
    1. A dealer may not sell a frozen dairy product at a price that varies from the filed price in effect on the date of the sale; and
    2. A retailer may not purchase a frozen dairy product at a price that varies from the filed price in effect on the date of the sale.
  3. A licensee may not engage in any act or omission that is contrary to a declaration made in the person's application for a license, as submitted to the milk marketing board.
    1. A licensee may not use or attempt to use any method, device, or transaction that:
      1. Is intended to accomplish or has the effect of accomplishing, the sale or attempted sale of milk products or frozen dairy products at less than the minimum prices set forth in the applicable milk stabilization plan;
      2. Is intended to accomplish or has the effect of accomplishing the purchase or attempted purchase of milk products or frozen dairy products at less than the minimum prices set forth in the applicable milk stabilization plan;
      3. Is designed to circumvent any price requirements provided for in this chapter; or
      4. Has the effect of substantially undermining the effectiveness of any price requirements provided for in this chapter.
    2. The provisions of subdivision a are applicable regardless of whether the method, device, or transaction:
      1. Is applied directly to the milk product or frozen dairy product sold or purchased; or
      2. Is used in connection with the sale or handling of any other product, commodity, article, or service.
    1. A distributor may not purchase milk products or frozen dairy products at prices that are less than minimum wholesale prices if the products are resold to consumers at a fixed place of business owned by the distributor.
    2. This subdivision does not prohibit a distributor from purchasing at wholesale prices those milk products or frozen dairy products that are to be resold at a fixed place of business owned by the distributor, provided the distributor purchases at distributor prices all other milk products and frozen dairy products that are to be resold by the distributor.
  6. A retailer may not sell or offer to sell milk products or frozen dairy products of a particular brand at a price that is different from that charged by the retailer for the same quantity, type, quality, or grade of a different brand, unless the price differential equals the difference in the price paid by the retailer for the referenced products.

4.1-26-31. Disruptive trade practices 🗎 PDF 

  1. A person may not provide discounts, rebates, or allowances in connection with the sale of milk products or frozen dairy products, unless the discounts, rebates, or allowances are permitted in accordance with section 4.1-26-13.
  2. A dealer may not provide free equipment or services to a retailer. This subsection does not prohibit a dealer from:
    1. Stocking the dairy case or frozen products cabinet of a retailer; or
    2. Stamping on each milk product or frozen dairy product the retail price at which the retailer desires to sell the product.
  3. A person may not provide advertising or display allowances.
    1. A person may not give a free milk product or a free frozen dairy product to a customer.
    2. This subsection does not prohibit a person from:
      1. Providing tasting samples to an individual; or
      2. Donating products for charitable purposes.
  5. A dealer may not make loans to a retailer, renew loans to a retailer, or provide financial assistance in any other form to a retailer.
  6. A dealer may not furnish signs to a retailer.
  7. A person may not sell, offer to sell, or advertise any milk product or frozen dairy product in combination with any other product or service.
  8. A person may not sell, offer to sell, or advertise any product or service at a price that is available only to purchasers of a milk product or a frozen dairy product.
  9. A dealer may not provide a gift to a retailer.
    1. A dealer may not lease, lend, or rent equipment to a retailer.
    2. If a dealer sells equipment to a retailer, the board shall prescribe the minimum markup, based upon the seller's invoice cost or the depreciated value in the case of used equipment.
    1. (1)Except as otherwise provided in this subdivision, a person may not require a deposit if milk products or frozen dairy products are purchased in returnable containers.
      1. A person may require a deposit on a milk case, provided the deposit does not exceed the replacement value of the milk case.
    2. A person may not provide an allowance or a credit in connection with the return of a container.
    1. Except as otherwise provided, a dealer may not provide payment to a franchisor, a wholesale grocer, or any other person closely connected with a retailer for central billing, customer solicitation, or other services, if the purpose or effect of the payment is to induce the recipient to influence or attempt to influence a retailer's decision regarding:
      1. The brand of milk products or frozen dairy products to be purchased and resold by the retailer; or
      2. The amount of space to be allocated to any brand of milk products or frozen dairy products.
    2. If a wholesale grocer establishes a central billing service to guarantee the collection of dealer accounts:
      1. All dealers that supply member or corporate stores must be afforded the same service; and
      2. The central billing service fee may not exceed two percent of the invoice cost.

4.1-26-32. Inspections and investigations 🗎 PDF 

  1. A representative of the milk marketing board may enter upon real property and access any structure and personal property, at any time, for the purpose of:
    1. Inspecting or pursuing an investigation pertaining to the production, storage, processing, manufacturing, or sale of raw milk, milk products, or frozen dairy products; or
    2. Inspecting records to determine statutory and regulatory compliance.
  2. The milk marketing board may subpoena records, copy records, and audit records of any person doing business with an individual licensed under this chapter.

4.1-26-33. License - Suspension and revocation 🗎 PDF 

  1. The board may suspend or revoke a license granted to any person under this chapter if the person violates:
    1. This chapter;
    2. A milk stabilization plan issued in accordance with this chapter; or
    3. Any rule that implements this chapter.
  2. The provisions of this subsection do not apply to a dairy farmer.

4.1-26-34. Violation of chapter - Civil penalty 🗎 PDF 

A person violating this chapter, a milk stabilization plan issued in accordance with this chapter, or any rule that implements this chapter, is subject to a civil penalty in an amount not exceeding five hundred dollars per day for each violation. The civil penalty may be adjudicated by a court or by the milk marketing board through an administrative hearing.

4.1-26-35. Administrative and regulatory functions 🗎 PDF 

All administrative and regulatory functions of the board must be exercised in accordance with chapter 28-32.

4.1-26-36. Legal actions 🗎 PDF 

All legal actions may be brought by or against the board in the name of the North Dakota milk marketing board.

Chapter 27 — Livestock Auction Markets

4.1-27-01. Definitions 🗎 PDF 

In this chapter, unless the context or subject matter otherwise requires:
  1. "Commissioner" means the agriculture commissioner.
  2. "Livestock" means horses, mules, asses, bison, cattle, swine, sheep, farmed elk, and goats.
  3. "Livestock auction market" means a place or establishment conducted or operated for compensation or profit as a public market or a private buying station, consisting of pens or other enclosures and their appurtenances; in which livestock is received, held, or kept for sale; and where that livestock is sold or offered for sale, at either public auction or private sale.

4.1-27-02. Premises excluded from application of chapter 🗎 PDF 

The provisions of this chapter do not apply to:
  1. Any place used solely for the dispersal sale of the livestock of a farmer, dairy producer, livestock breeder, or feeder who is discontinuing the person's business.
  2. The premises of any butcher, packer, or processor who receives animals exclusively for immediate slaughter.
  3. Any place where any individual or duly constituted association of breeders of livestock of any class assembles and offers for sale and sells under the individual's or association's management registered livestock or breeding sires owned by the individual or members of the association if the individual or association:
    1. Assumes all responsibility of the sale;
    2. Guarantees title of the livestock; and
    3. Makes proper provision for the inspection of all animals sold.
  4. Any place where a duly constituted association of breeders of livestock of any class assembles and offers for sale and sells under its management, at an annual production sale not exceeding twenty-one calendar days, livestock raised or held for at least one year by producers affiliated with the association, if the association:
    1. Assumes all responsibility of the sale;
    2. Guarantees title of the livestock; and
    3. Makes proper provision for the inspection of all animals sold.

4.1-27-03. License requirements - Application - Fee - Commission schedule - Facilities 🗎 PDF 

A person may not establish or operate a livestock auction market within this state without procuring a license to do so from the commissioner. The commissioner may not approve any application without written permission from the state veterinarian. An applicant for a license shall:
  1. Make a written application in the form prescribed by the commissioner;
  2. File evidence required by the state board of animal health or the commissioner to show the person is financially responsible to operate an auction market and the person will own or control adequate facilities for the care, sorting, feeding, loading and unloading, and shipment of livestock;
  3. Pay to the commissioner a license fee of two hundred dollars;
  4. File with the commissioner a schedule of fees and commissions that will be charged to owners, sellers, or their agents. The schedule must be posted conspicuously at the auction market. The schedule may not be altered except upon notification to the commissioner. The altered schedule must be reposted upon notification to the commissioner;
  5. State the location where the applicant proposes to operate a livestock auction market;
  6. Make a complete and detailed description of the property and facilities proposed to be used in connection with the livestock auction market; and
  7. Make a showing of public convenience and necessity to the satisfaction of the commissioner.

4.1-27-04. Bond to accompany application for license - Amount - Approval - Conditions - Exemptions 🗎 PDF 

  1. An applicant for a license to operate a livestock auction market shall file a surety bond of at least ten thousand dollars with the application for license or renewal of a license. The bond must be approved by the commissioner as to the amount, form, and surety. The commissioner must be named the obligee in the bond. The bond must be for the benefit of, and for the purpose of protecting, any person selling to or through the licensed livestock auction market, or buying livestock through or from the licensed livestock auction market or the licensee's agent. The commissioner may require an additional bond of the licensee when the commissioner deems the volume of the business of the licensee warrants the additional bond. The bond must be conditioned for:
    1. The payment of all money received by the licensee and the operator of the livestock auction market, less reasonable expenses and agreed commissions;
    2. The faithful performance by the licensee of the duties of a livestock auction market operator; and
    3. The faithful performance by the licensee of all duties imposed by law relating to the purchase, sale, or holding of livestock.
  2. The bond must cover the entire license period. If the commissioner is the trustee or obligee of a surety bond in which the auction market operator is the principal and is operating and is bonded under the Packers and Stockyards Act, 1921 [Pub. L. 67-51; 42 Stat. 159; 7 U.S.C. 181 et seq.], the commissioner may accept that bond in lieu of the one required under this section, except that the minimum bond requirements of ten thousand dollars will be continued.

4.1-27-05. Records release required with application for licensure 🗎 PDF 

A livestock auction market shall file with the license application a release in a form approved by the commissioner authorizing the commissioner to access financial records of the livestock auction market held by financial institutions, accountants, and other sources. The commissioner may use the release in the course of licensing or relicensing a livestock auction market or in the course of an investigation of a livestock auction market. Any information gained through the use of a release is confidential. The commissioner may furnish information obtained through the use of the records release to the attorney general, other state agencies, and any prosecuting officials requiring the information for use in pursuit of official duties.

4.1-27-06. Expiration and renewal of license - Fee returned upon failure to issue or renew license 🗎 PDF 

Each license issued under this chapter expires on the thirty-first day of March following the date of issuance. Each license must be renewed annually on or before March thirty-first. The fee for a renewal license is the same as for an original license. If the commissioner does not issue a requested original license or renewal license, the fee paid must be refunded to the applicant.

4.1-27-07. Investigation of auction market - Hearing to determine whether license should be issued or revoked 🗎 PDF 

  1. The commissioner, upon the commissioner's own motion or upon a complaint by any person, may enter an investigation of the sales and transactions of any livestock auction market and of the conditions under which the business of the livestock auction market is conducted. The commissioner may conduct a hearing to determine whether the license of any auction market should be revoked or whether the application of the owner or operator of a livestock auction market for an original or renewal license should be denied.
  2. The commissioner shall conduct an investigation of an alleged violation of this chapter when:
    1. A complaint, allegation, or order to show cause, alleging an act which would constitute a violation of this chapter, is filed by the packers and stockyards administration of the United States;
    2. The commissioner has information sufficient to form a reasonable belief that a violation of this chapter has occurred; or
    3. The commissioner has received a sworn statement, affidavit, or other evidence from any person alleging a violation of this chapter.
  3. The commissioner shall conduct a hearing to determine whether a violation has occurred when, pursuant to an investigation, probable cause exists that a violation of this chapter has occurred.
  4. The commissioner shall conduct an audit, or cause an audit to be conducted, when probable cause exists that any livestock auction market has violated any of the financial provisions of this chapter, when it reasonably appears that the liabilities of the livestock auction market exceed its assets, or when the auction market has refused to pay a proper claim without reasonable cause.

4.1-27-08. Cease and desist authority 🗎 PDF 

The commissioner may issue an order to cease and desist when, in the opinion of the commissioner, any auction market within the state is taking or planning any action which is or may be in violation of this chapter. If an order is granted, the commissioner shall conduct a hearing within thirty days of the issuance of the order to determine whether the actions of the person named in the order violated or would have violated this chapter. After the hearing, but not later than forty-five days after the issuance of the order, the commissioner shall revoke the order or make it permanent, as determined by the evidence.

4.1-27-09. Injunctive authority 🗎 PDF 

The commissioner may seek an order from the district court of Burleigh County to enjoin a prohibited act when the commissioner believes any auction market or person is violating this chapter or is pursuing a course of action which may lead to a violation of this chapter.

4.1-27-10. Sanitary regulations of livestock auction market 🗎 PDF 

Each livestock auction market must be maintained in a sanitary condition in accordance with this chapter. Any portion of a livestock auction market used for the handling of hogs, including all hogpens, alleys, and auction markets, must be equipped with concrete floors at least three inches [7.62 centimeters] thick. The concrete floors must be cleaned and disinfected after each sale, or in case of a continuous sale, not less than once each week or as may be prescribed by the state board of animal health.

4.1-27-11. Scales maintained by auction market to be inspected 🗎 PDF 

All scales used in the operation of a livestock auction market must be tested and inspected by the department of weights and measures as provided by law. All livestock sold by weight must be weighed on such scales, and the purchaser and seller of the livestock must be furnished with a true and correct statement of the weight.

4.1-27-12. Records to be kept by operator of auction market - Contents - Examination - Report 🗎 PDF 

  1. The operator of each livestock auction market shall keep on file an accurate record of the following:
    1. The date on which each consignment of animals was received and sold;
    2. The name and address of the buyer and seller of the consigned animals;
    3. The number and species of the animals received and sold; and
    4. The marks and brands on each such animal.
  2. The records, together with the gross selling price, commission, and other proper care, handling, and sales charges on each consignment of livestock must be available for inspection by the commissioner, or authorized inspectors. A copy of the information required in this section must be supplied to the owner of the livestock. All records of sales during the preceding twelve months must be kept readily accessible for immediate examination by the commissioner.

4.1-27-13. Notice - Nonsufficient funds checks 🗎 PDF 

A livestock auction market that receives a check for the sale of livestock which is returned unpaid with a notation that the payment has been refused because of nonsufficient funds shall notify the commissioner within two business days after receipt of the returned check.

4.1-27-14. Inspection of livestock - Fees and rules governing 🗎 PDF 

Before it is offered for sale, each animal that enters a livestock auction market must be inspected for health by a veterinarian licensed in this state and approved by the state board of animal health. Cattle also must be inspected for brands by a trained brand inspector, acting under rules adopted by the North Dakota stockmen's association and the state board of animal health. Veterinary inspection must include all livestock, whether it is to be moved interstate or intrastate. The veterinary inspector must be recommended by the livestock auction market and approved by the state board of animal health. The veterinarian must be a local veterinarian or a veterinarian of the vicinity, unless there is no such veterinarian available. If the livestock auction agency fails to recommend a veterinarian within a reasonable time, the board may approve a veterinarian, if qualified and willing to accept the position at the market, and provide notice to the market agency of the appointment. The services and duties of the veterinary inspector are under the supervision of the state board of animal health and the inspector must be relieved of office when the inspector fails to perform the required services and duties. Fees for the inspection must be paid to the veterinarian by the livestock auction market company and must be in an amount agreed upon by the auction market company and the veterinarian.

4.1-27-15. Livestock unfit for sale 🗎 PDF 

  1. Livestock may not be offered for sale or sold at any licensed public livestock auction market if the livestock has a condition including the following:
    1. Is infected with a disease that permanently renders the livestock unfit for human consumption;
    2. Has severe neoplasia;
    3. Has severe actinomycosis;
    4. Is unable to rise to its feet by itself; or
    5. Has a fractured long bone or other fractures or dislocation of a joint that renders the livestock unable to bear weight on the affected limb without the limb collapsing.
  2. If, in the judgment of a veterinarian licensed in this state and approved by the state board of animal health, the livestock consigned and delivered to the premises of a livestock auction market is affected by any of the conditions described above, the veterinarian shall humanely euthanize the livestock or direct the consignor to immediately remove the livestock from the premises of the livestock auction market. All expenses incurred for euthanasia and disposal of the livestock under this section are the responsibility of the consignor. Collection of expenses is not the responsibility of the consignee.

4.1-27-16. Treatment administered to livestock before removal from auction market - Fees for inspection and treatment 🗎 PDF 

An operator of a livestock auction market may not permit the removal of any livestock from the establishment until the livestock has been treated in accordance with the rules adopted by the state board of animal health. If livestock is destined to be shipped interstate, the authorized veterinarian of the board shall furnish to each purchaser a certificate showing that inspection has been made and treatment administered in accordance with the requirements of the state of destination. All fees for veterinary inspection, treatment, and services, including brand inspection, must be collected by the operator of the livestock auction market and paid to the inspector.

4.1-27-17. Grievance committee 🗎 PDF 

  1. Any livestock auction market who has a complaint against the veterinarian assigned to the livestock auction market, or any veterinarian that has a complaint against the auction market to which the veterinarian is assigned, may submit a written complaint to the grievance committee. The grievance committee consists of:
    1. The president of the North Dakota stockmen's association or the president's designee;
    2. The president of the livestock auction market association or the president's designee; and
    3. The president of the North Dakota veterinary medical association or the president's designee.
  2. The members of the committee shall choose one member to serve as chairman. The committee shall meet at the call of the chairman. The committee shall take all complaints under consideration and report a recommendation of the committee to the state board of animal health within thirty days after receipt of the complaint.

4.1-27-18. Operator to warrant title to purchaser - Dispute in title of animal sold 🗎 PDF 

The operator of each livestock auction market shall warrant to the purchaser the title of all livestock bought by the purchaser through the auction market and the operator is liable to the rightful owner of any livestock sold through the auction market for the net proceeds in cash received for the livestock. If the operator of an auction market is notified by an authorized brand inspector that there is a question as to whether any designated livestock sold through the auction market is lawfully owned by the consignor of the livestock, the operator shall hold the proceeds received from the sale of the livestock for a reasonable time, not to exceed sixty days, to permit the consignor to establish ownership. At the expiration of the allotted time, if the consignor fails to establish lawful ownership of the livestock to the satisfaction of the brand inspector, the proceeds must be remitted to the state treasurer for deposit in the North Dakota stockmen's association fund.

4.1-27-19. Use of fees - Grounds for refusal or revocation of license - Procedure on default of licensee 🗎 PDF 

All fees collected by the commissioner under this chapter must be credited to the general fund of the state treasury. A license to operate a livestock auction market may be refused or revoked for any of the reasons specified in section 4.1-83-10 or 4.1-83-19. When the holder of a license issued under this chapter defaults in any of the conditions of any bond filed with the commissioner by the licensee, the commissioner will become trustee of the bond and sections 4.1-83-21 through 4.1-83-28 govern the procedure to be followed.

4.1-27-20. Review by the court 🗎 PDF 

The action of the commissioner in denying an application for a license or in revoking or suspending a license may be appealed to the district court of Burleigh County by the procedure applicable to appeals taken in the manner provided in chapter 28-32, except the commissioner's order revoking or suspending the license may be stayed by the court appealed to upon filing with the clerk of the court a bond approved by and in the amount set by the judge of the district court for the faithful observance of the laws of the state relative to the operation of the business licensed during the pendency of the appeal.

4.1-27-21. Unlawful acts 🗎 PDF 

It is a violation of this chapter for any livestock auction market or person to:
  1. Make or cause any false entry or statement of fact to be made in any application, financial statement, or report filed with the department under this chapter;
  2. Fail to keep and maintain suitable records that disclose all purchases and sales of livestock or refuse to allow any authorized agent of the department to have access, during reasonable hours, to inspect and to copy any or all of the records relating to the dealer's business;
  3. Fail or refuse to furnish the information required under this chapter as prescribed by the department;
  4. Fail to notify the commissioner of the receipt of a nonsufficient funds check as required by section 4.1-27-13;
  5. Fail to pay brand inspection fees or veterinarian fees as required by law;
  6. Fail to collect beef promotion assessments pursuant to chapter 4.1-03; or
  7. Fail to pay for livestock purchased, including the issuance of a check or payment for livestock purchased, when the check is returned unpaid with a notation that the payment has been refused because of nonsufficient funds.

4.1-27-22. Penalties - Criminal - Civil 🗎 PDF 

  1. Any auction market or person who willfully violates any provision of this chapter is guilty of a class A misdemeanor.
  2. Any auction market or person who willfully violates any provision of this chapter is subject to a civil penalty not to exceed five thousand dollars for each violation. The civil penalty may be adjudicated by the courts or by the commissioner through an administrative hearing under chapter 28-32.

4.1-27-23. Public livestock markets or commission firms - Duplicate scale tickets 🗎 PDF 

All public livestock markets or commission firms doing business in this state shall deliver to each person consigning livestock to the market or purchasing livestock from the market a duplicate scale ticket showing the weight of such livestock.

Chapter 28 — Video Livestock Auction Markets

4.1-28-01. Definitions 🗎 PDF 

In this chapter, unless the context otherwise requires:
  1. "Commissioner" means the agriculture commissioner or the commissioner's designee.
  2. "Internet livestock auction" means a place or establishment conducted or operated for compensation or profit as a public market where livestock located in this state is sold or offered for sale at a facility or website within or outside the state through the use of the internet.
  3. "Livestock" means horses, mules, cattle, swine, sheep, farmed elk, and goats.
  4. "Representative" means a dealer licensed under chapter 4.1-83 or a livestock auction market licensed under chapter 4.1-27.
  5. "Video livestock auction market" means a place or establishment conducted or operated for compensation or profit as a public market where livestock located in this state is sold or offered for sale at a facility within or outside the state through the use of video at a public auction.

4.1-28-02. Video livestock auction market and internet auction - Authority to transact business 🗎 PDF 

A video livestock auction market or internet livestock auction market may not transact business in this state unless the market transacts business through a representative.

4.1-28-03. Application for license - Contents 🗎 PDF 

Repealed by S.L. 2025, ch. 84, § 2.

4.1-28-04. Use of fees - Grounds for refusal or revocation of license - Review by court 🗎 PDF 

Repealed by S.L. 2025, ch. 84, § 2.

4.1-28-05. Inspection of livestock 🗎 PDF 

Before any livestock sold pursuant to this chapter is delivered, whether interstate or intrastate, the livestock must be inspected for health by a veterinarian licensed in this state and approved by the state board of animal health and, in the case of cattle, for brands by a trained brand inspector, acting under rules adopted by the North Dakota stockmen's association and the state board of animal health. The inspection must take place at the time of the initial delivery of the livestock. If livestock is destined to be shipped interstate, the authorized veterinarian shall furnish to each purchaser a certificate showing that the inspection has been made and treatment administered in accordance with the requirements of the state of destination. The services and duties of the veterinary inspector are under the supervision of the state board of animal health. Fees for the veterinary inspection must be an amount agreed upon by the representative and the veterinarian. All fees for veterinary inspection, treatment, and services must be collected by the representative and paid to the inspector.

4.1-28-06. Method of payment 🗎 PDF 

Payment to the seller for livestock sold through a video livestock auction market or internet livestock auction market must be made in United States currency, with an instrument payable on demand drawn on a financial institution chartered and regulated by a state or the federal government, or by wire transfer or other electronic form of payment from a financial institution chartered and regulated by a state or the federal government.

4.1-28-07. Sale of livestock by weight - Scales to be inspected 🗎 PDF 

Notwithstanding section 36-21-15, all livestock sold by weight through a video livestock auction market or internet livestock auction market must be sold based on the weight of the livestock on the day of delivery. All livestock sold by weight must be weighed on scales that have been tested and inspected by the department of weights and measures in the manner provided by law.

Chapter 30 — Livestock Purchased By Packing Plants

4.1-30-01. Packing plant defined 🗎 PDF 

The term "packing plant" as used in this chapter means a place where livestock, exclusive of poultry, is purchased for the purpose of slaughtering, dressing, curing, or processing the same for storage and distribution at wholesale for human consumption.

4.1-30-02. Livestock purchased by weight to be graded - Penalty 🗎 PDF 

An officer or employee of a packing plant within this state may not purchase any livestock by weight unless such livestock has been graded and sorted in the yard and the price per pound [.45 kilogram] for each grade fixed and determined before the livestock is weighed. Any officer or employee of a packing plant who violates this section is guilty of an infraction.

4.1-30-03. Penalty for purchase of livestock by weight without grading 🗎 PDF 

Each purchase of livestock in violation of section 4.1-30-02 is a separate offense and constitutes an infraction upon the part of every owner of a packing plant in which such violation occurs.

Chapter 31 — Meat Inspection

4.1-31-01. Definitions 🗎 PDF 

  1. "Adulterated" means a carcass or meat food product:
    1. That includes a poisonous or harmful substance that may render it injurious to health;
    2. That includes a chemical pesticide that is unsafe under the Federal Food, Drug, and Cosmetic Act [21 U.S.C. 301 et seq.];
    3. That includes a food or color additive that is unsafe under the Federal Food, Drug, and Cosmetic Act [21 U.S.C. 301 et seq.];
    4. That includes a filthy, putrid, or decomposed substance or is for any other reason unfit for human food;
    5. That has been prepared, packed, or held under unsanitary conditions;
    6. That includes the product of an animal that has died in a manner other than slaughter or includes the product of an animal condemned by reason of disease that existed at the time of slaughter;
    7. The container of which includes a poisonous or harmful substance that may make the contents harmful to health;
    8. That has been intentionally subjected to radiation, unless the use of the radiation conformed with a regulation or exemption in effect under the Federal Food, Drug, and Cosmetic Act [21 U.S.C. 301 et seq.];
    9. That is damaged or inferior and that damage or inferiority has been concealed; or
    10. That has had a substance added to it or mixed or packed with it so as to increase its bulk or weight, or make it appear better or of greater value than it is.
  2. "Animal" includes cattle, swine, sheep, goats, farmed cervidae, llama, horses, equines, bison, other large domesticated animals, domesticated rabbits, and poultry.
  3. "Carcass" includes all or any part of an animal carcass.
  4. "Container" means a receptacle of a meat food product.
  5. "Custom exempt establishment" means an establishment as determined by the commissioner where slaughter and processing activities of an animal carcass or meat food products are done as a service for only the owner of the animal and the meat is returned to the owner for personal use.
  6. "Custom processing" means slaughtering, eviscerating, dressing, or processing an animal carcass or meat food products for the owner of the animal carcass or the meat food products, if all meat food products derived from the custom processing are returned to that owner.
  7. "Inspector" means an inspector appointed by the commissioner to perform duties under this chapter.
  8. "Intrastate commerce" means commerce within this state.
  9. "Meat" means the edible flesh of an animal born and harvested for the purpose of human consumption. 10"Meat food product" means a product usable as human food which contains any part of a carcass from an animal born and harvested for the purpose of human consumption. The term does not include any product that contains any part of an animal carcass in a relatively small proportion or which historically has not been considered by consumers as a product of the meat food industry, and which is not represented as a meat food product.
  10. "Official establishment" means an establishment as determined by the commissioner at which state inspection of the slaughter of livestock or poultry or the processing of meat or meat food products for human consumption is maintained under the authority of this chapter, but does not include:
    1. Establishments subject to federal inspection.
    2. Custom exempt establishments.
  11. "Poultry" includes domesticated fowl bred for the primary purpose of producing eggs or meat, or both, including chickens, turkeys, ostriches, emus, rheas, cassowaries, waterfowl, and game birds, but excluding doves and pigeons.
  12. "Prepared" means slaughtered, canned, salted, rendered, boned, cut up, or otherwise manufactured or processed.

4.1-31-01.1. Federal meat inspection regulations 🗎 PDF 

All federal meat and poultry inspection regulations effective as of July 3, 2024, as provided under title 9, Code of Federal Regulations, parts 301-320, 325, 329, 381, 391, 416-418, 424, 430, 441, 442, and 500, but excluding parts 307.5 and 381.38, are incorporated by reference and made a part of this title.

4.1-31-02. Inspectors - Appointments - Duties 🗎 PDF 

  1. The commissioner shall appoint inspectors to examine and inspect meat food products prepared solely for intrastate commerce in a slaughtering, meat canning, salting, packing, or similar establishment. The inspections must take place at any time during which the slaughtering of animals or the preparation of meat food products is being conducted. Upon completing an inspection, the inspector shall mark, stamp, tag, or label the product "North Dakota inspected and passed" if it is unadulterated or as "North Dakota inspected and condemned" if the product is found to be adulterated.
  2. The commissioner shall appoint inspectors to examine and inspect each slaughtering, meat canning, salting, packing, or similar establishment in which meat food products are prepared solely for intrastate commerce. The commissioner shall adopt rules of sanitation applicable to these establishments. The commissioner may not allow any meat food product from any facility not meeting the sanitary conditions required by those rules to be labeled, marked, stamped, or tagged as "North Dakota inspected and passed".
  3. Meat food products inspected and passed under this chapter may be sold at retail in this state.
  4. Neither the commissioner, nor any inspector appointed by the commissioner, may undertake any activity that is duplicative of an activity performed by meat inspectors of the United States department of agriculture.

4.1-31-03. Access by inspectors - Penalty 🗎 PDF 

  1. For purposes of enforcement of this chapter, the commissioner may enter and inspect:
    1. Any place where food or any other product, the manufacture, sale, use, or transportation of which is restricted, regulated, or prohibited by a law of this state, is or may be manufactured, prepared, stored, sold, used, transported, offered for sale or transportation, or possessed with intent to use, sell, or transport;
    2. Any place where an animal is pastured or stabled;
    3. Any vehicle used to transport a meat food product or an animal;
    4. Any place where food is or may be cooked, prepared, sold, or kept for sale to or for the public or distributed as a part of the compensation of an employee or agent; and
    5. Any place where a meat food product may be manufactured, sold, used, offered for sale or transportation, or possessed with intent to use, sell, or transport.
  2. The commissioner may inspect any container believed to hold food, a food ingredient, or some other product, the manufacture, use, sale, or transportation of which is restricted, regulated, or forbidden by state law, and may take samples from it for analysis.
  3. It is a class A misdemeanor for any person to obstruct entry or inspection under this chapter or to fail, upon request, to assist in an inspection authorized by this chapter.

4.1-31-04. Marks and labels 🗎 PDF 

  1. If a meat food product that is inspected and marked "North Dakota inspected and passed" is being placed or packed in a container, the person preparing the product shall attach to the container, under supervision of an inspector, a label indicating that the product has been "North Dakota inspected and passed". An inspection under this chapter is not complete until the product has been sealed or enclosed in the container, under the supervision of an inspector.
  2. A meat food product inspected under this chapter and found not to be adulterated must bear, directly or on its container, a legible label or official mark as required by the commissioner.
  3. The commissioner shall prescribe by rule the style and size of type to be used in labeling meat under this chapter and standards of identity, composition, and fill of container for meat food products inspected under this chapter, but the standards must be consistent with those established under federal law.

4.1-31-05. False or misleading marks, labels, and containers 🗎 PDF 

A person may not sell in intrastate commerce any meat food product subject to inspection under this chapter under a name, mark, or label that is false or misleading, or in a container of a misleading form or size. If the commissioner has reason to believe that a mark, label, or container is false or misleading, the commissioner may direct that its use be withheld unless the mark, label, or container is modified in a manner approved by the commissioner. If the person using or proposing to use the mark, label, or container does not accept the determination of the commissioner, the person may request a hearing. The commissioner may direct that the mark, label, or container not be used pending a hearing and final determination by the commissioner. A determination by the commissioner is conclusive unless the person adversely affected appeals to the district court within thirty days after receiving the notice of final determination.

4.1-31-05.1. Misrepresentation of cell-cultured protein as meat food product prohibited 🗎 PDF 

  1. A person may not advertise, offer for sale, sell, or misrepresent cell-cultured protein as a meat food product. A cell-cultured protein product:
    1. May not be packaged in the same, or deceptively similar, packaging as a meat food product; and
    2. Must be labeled as a cell-cultured protein food product.
  2. For purposes of this section, "deceptively similar" means packaging that could mislead a reasonable person to believe the product is a meat food product.

4.1-31-06. Prohibitions 🗎 PDF 

A person may not:
  1. Slaughter an animal or prepare an article usable as human food at any establishment preparing articles solely for intrastate commerce, unless the person complies with this chapter;
  2. Sell, transport, offer for sale or transportation, or receive for transportation, in intrastate commerce any article that is usable as human food and which is adulterated or misbranded or any article that has not been inspected and passed under this chapter; or
  3. Alter an article that is usable as human food while the article is being transported in intrastate commerce or held for sale after transportation, if the alteration is intended to cause or has the effect of causing the article to be adulterated or misbranded.

4.1-31-07. Official marks and certificates - Required authorization 🗎 PDF 

A person may not:
  1. Cast, print, or otherwise make a device containing an official mark, simulation of an official mark, label bearing a mark or simulation, or form of official certificate or simulation, without authorization from the commissioner;
  2. Forge an official device, mark, or certificate;
  3. Use a real or simulated official device, mark, or certificate, or alter, detach, deface, or destroy an official device, mark, or certificate, without authorization from the commissioner;
  4. Fail to use an official device, mark, or certificate if appropriate;
  5. Knowingly possess, without promptly notifying the commissioner, a counterfeit, simulated, forged, or improperly altered official certificate, device, or label, or a carcass bearing a counterfeit, simulated, forged, or improperly altered official mark;
  6. Knowingly make a false statement in a certificate; or
  7. Knowingly represent falsely that an article has been inspected and passed, or exempted, under this chapter.

4.1-31-08. Horse meat - Requirements 🗎 PDF 

A person may not sell, transport, offer for sale or transportation, or receive for transportation in intrastate commerce carcasses of horses, mules, or other equines or meat food products derived from them, unless they are plainly and conspicuously marked, labeled, or otherwise identified to show the kinds of animals from which they were derived. The commissioner by rule may require that the preparation of equine carcasses and equine meat food products take place in establishments separate from those in which cattle, sheep, swine, or goats are slaughtered or in which their carcasses or meat food products are prepared.

4.1-31-09. Bribery 🗎 PDF 

A person may not give or receive anything of value to influence the performance of an inspector under this chapter.

4.1-31-10. Individual and custom processing - Exemption from inspection requirements 🗎 PDF 

  1. This chapter does not apply to an individual processing the individual's own animals and the individual's preparation and transportation in intrastate commerce of the carcasses and meat food products provided the animals are for the exclusive use of the individual, members of the individual's household, the individual's nonpaying guests, and employees.
  2. The provisions of this chapter requiring inspection of the slaughter of animals, the preparation of the carcasses and meat and meat food products at establishments conducting those operations do not apply to the custom processing by a person of animals delivered by the owner for processing, and the preparation or transportation in intrastate commerce of the carcasses and meat food products of the animals, provided the products are to be used exclusively in the household of the animal's owner by the owner and members of the owner's household, nonpaying guests, and employees.
  3. A custom processor may not engage in the business of buying or selling carcasses or meat food products of animals, other than poultry, usable as human food unless the carcasses or meat food products have been inspected and passed and are identified as inspected and passed by the commissioner or the United States department of agriculture.
  4. The provisions of this chapter requiring inspection of the preparation of poultry carcasses and poultry food products at establishments conducting those operations do not apply to any retailer with respect to poultry products sold in commerce directly to consumers in an individual retail store, provided the retailer does not engage in the business of custom slaughter, and provided the poultry products sold in commerce are derived from poultry inspected and passed by the commissioner or the United States department of agriculture.

4.1-31-11. Storing and handling conditions 🗎 PDF 

The commissioner shall adopt rules regarding the manner in which all carcasses and meat food products of animals usable as human food and subject to this chapter must be stored, handled, and transported.

4.1-31-12. Articles not intended as human food 🗎 PDF 

The commissioner may not provide inspection under this chapter at an establishment for the slaughter of animals or the preparation of carcasses or parts or products of animals which are not intended for use as human food. Before these articles are offered for sale or transportation in intrastate commerce, the articles must be denatured or otherwise identified, as prescribed by rules of the commissioner, to deter the articles use for human food, unless the articles are naturally inedible by humans. A person may not buy, sell, transport, offer for sale or transportation, or receive for transportation, in intrastate commerce, any carcasses or meat food products of animals which are not intended for use as human food, unless the articles are denatured or otherwise identified.

4.1-31-13. Records 🗎 PDF 

The following persons shall keep records that fully and accurately disclose the transactions described:
  1. A person in the business of slaughtering animals or preparing, freezing, packaging, or labeling animal carcasses or products of carcasses for use as human or animal food.
  2. A person buying, selling, transporting, or storing animal carcasses or products of animal carcasses.
  3. A person rendering or buying, selling, or transporting dead, dying, disabled, or diseased animals or the carcasses of animals that died other than by slaughter.

4.1-31-14. Records - Examination 🗎 PDF 

Upon notice by the commissioner, any person subject to the recordkeeping requirements of this chapter shall give the commissioner and the United States department of agriculture access to the person's place of business at all reasonable times and an opportunity to examine the facilities, inventory, and records of the business, to copy business records, and to take reasonable samples of the person's inventory upon payment of the fair market value of the samples.

4.1-31-15. Records - Retention 🗎 PDF 

Any person subject to the recordkeeping requirements of this chapter shall maintain the records for the period prescribed by the commissioner.

4.1-31-16. Registration and licensure of business 🗎 PDF 

  1. A person may not engage in intrastate business as a meat broker, renderer, or animal food manufacturer; a wholesaler of animal carcasses intended for human food or other purposes; a public warehouse operator storing carcasses of animals in or for intrastate commerce; or a buyer, seller, or transporter of dead, dying, disabled, or diseased animals, or the carcasses of animals that died other than by slaughter, unless the person first provides the commissioner with the person's name, the address of each place of business under which the person conducts business, and all trade names under which the person conducts business.
  2. A person, in order to operate under this chapter, shall obtain a license in accordance with the rules adopted by the commissioner. Application for a license must be made on forms provided by the commissioner. The commissioner may refuse to issue a license if the applicant or the establishment of the applicant is not in compliance with this chapter and related rules. If the commissioner finds that the person to which the license is issued violates this chapter or related rules, the commissioner may suspend or revoke the license, or upon revocation and with good cause, refuse to issue a new license.
  3. A person applying for a license pursuant to this section shall pay a license fee to the commissioner as follows:
    1. The license fee for an official establishment is twenty-five dollars;
    2. The license fee for a custom exempt establishment is twenty-five dollars; and
    3. The license fee for any other establishment or entity required to be licensed under this chapter is twenty-five dollars.

4.1-31-17. Dead, dying, disabled, or diseased animals - Rules 🗎 PDF 

The commissioner shall adopt rules to ensure dead, dying, disabled, or diseased animals are not used as human food.

4.1-31-18. Cooperation with federal government 🗎 PDF 

The commissioner shall cooperate with the United States department of agriculture to develop and administer the state meat inspection program provided for under this chapter and to ensure its requirements are at least equal to those imposed by federal law. The commissioner may accept, from the United States department of agriculture, advice and assistance in planning and otherwise developing the state meat inspection program; technical and laboratory assistance and training, including necessary curricular and instructional materials and equipment; and financial and other assistance for the administration of the program.

4.1-31-19. Refusal or withdrawal of inspection 🗎 PDF 

  1. For the length of time the commissioner considers necessary to carry out the purposes of this chapter, the commissioner may refuse to provide, or may withdraw, inspection services from an establishment if after a hearing the commissioner determines that the recipient or potential recipient is unfit to engage in any business requiring inspection under this chapter because the recipient, potential recipient, or anyone responsibly connected with the recipient or potential recipient has been convicted of:
    1. An offense determined by the commissioner to have a direct bearing on the person's ability to serve the public in a business requiring inspection under this chapter, or the commissioner determines the person is not sufficiently rehabilitated under section 12.1-33-02.1;
    2. More than one violation of a law based on the acquisition, handling, or distributing of unwholesome, mislabeled, or deceptively packaged food; or
    3. Fraud in connection with transactions involving food.
  2. For the purpose of this section anyone responsibly connected with a business means an individual who is a partner, officer, director, holder, or owner of ten percent or more of its voting stock or an employee in a managerial or executive capacity.

4.1-31-20. Detention of animals or products 🗎 PDF 

  1. An inspector may detain an article or animal for up to twenty days pending a hearing or notification of authorities having jurisdiction over the article or animal if the inspector finds the article or animal on premises where it is held for purposes of, during, or after distribution in intrastate commerce and the inspector reasonably believes:
    1. The article or animal is adulterated or misbranded and would otherwise be usable as human food;
    2. The article or animal has not been inspected, in violation of this chapter or federal law; or
    3. The article or animal has been or is intended to be distributed in violation of this chapter or federal law.
  2. Until it is released by the commissioner, a detained article or animal may not be moved by any person from the place at which it was located when detained. The commissioner may require all official marks to be removed from the detained article or animal before it is released unless the commissioner is satisfied the article or animal is eligible to retain the official marks.

4.1-31-21. Seizure and condemnation 🗎 PDF 

The commissioner may initiate action to seize and condemn a carcass or meat food product, or a dead, dying, disabled, or diseased animal that is being transported in intrastate commerce, or is held for sale in this state after transportation in intrastate commerce if:
  1. The article is or has been prepared, sold, transported, or otherwise distributed or offered or received for distribution in violation of this chapter;
  2. The article is adulterated or misbranded and not suitable for use as human food; or
  3. The article is in any other way violative of this chapter.

4.1-31-22. Destruction or sale of condemned items 🗎 PDF 

If an article or animal is condemned, it must be disposed of by destruction or sale, as directed by a court. If an article or animal is sold, the proceeds must be paid to the state, less the court costs, fees, storage, and reasonable expenses, but the article or animal must not be sold contrary to this chapter or federal law. If a bond is delivered conditioned that the article or animal not be sold or otherwise disposed of contrary to this chapter or federal law, the court may direct the article or animal be delivered to its owner subject to supervision by the commissioner.

4.1-31-23. Types of proceedings - Award of costs 🗎 PDF 

If a decree of condemnation is entered against an article or animal and it is released under bond or destroyed, a court may award costs, fees, storage, and other reasonable expenses against any person intervening as a claimant of the article or animal. Either party to a proceeding may demand trial by jury of any issue of fact joined in the case, and all proceedings must be in the name of the state. Nothing in this section changes the authority for condemnation or seizure otherwise conferred by law.

4.1-31-24. Powers of commissioner 🗎 PDF 

For the purposes of this chapter, the commissioner may:
  1. Gather and compile information concerning and investigate the organization, business, conduct, practices, and management of a person in intrastate commerce and the person's relation to other persons.
  2. Require a person engaged in intrastate commerce file with the commissioner, in the form and manner prescribed by the commissioner, annual and special reports or written answers to specific questions, giving the commissioner the information the commissioner requires about the organization, business, conduct, practices, management, and relation to other persons, of the person filing the reports or answers.
  3. Examine and copy documentary evidence of a person being investigated or being proceeded against. A person may not refuse to submit to the commissioner, for inspection and copying, any documentary evidence of a person subject to this chapter in the person's possession or control.
  4. Fix the time of filing for a person required by this chapter to file an annual or special report. A person required by this chapter to file an annual or special report may not continue the failure for thirty days after notice of failure to file.
  5. Adopt rules to implement this chapter, including establishing inspection fees for providing inspection services under this chapter.

4.1-31-25. Interstate shipment 🗎 PDF 

Meat and meat products inspected under this chapter may be shipped in interstate commerce when federal law permits state-inspected meat and meat products to be marketed interstate.

4.1-31-26. Penalties 🗎 PDF 

  1. A person who willfully violates a provision of this chapter is guilty of a class A misdemeanor.
  2. A person willfully violating this chapter or a rule adopted under this chapter is subject to a civil penalty not to exceed two hundred fifty dollars for each violation. The civil penalty may be imposed by a court or by the agriculture commissioner in an administrative proceeding.
  3. Imposing a penalty allowed in subsection 1 or 2 does not preclude the commissioner from seeking to impose other sanctions or from seeking other remedies for violation of this chapter or rules adopted under this chapter.

Chapter 32 — Rendering Plants

4.1-32-01. License required to operate rendering plant 🗎 PDF 

A person may not operate a rendering plant or other establishment using the carcasses of domestic or wild animals, not intended for human consumption, for processing without first obtaining a license from the agriculture commissioner. A license to operate a rendering plant may be issued only upon a written application filed with the commissioner in accordance with this chapter and rules adopted by the board.

4.1-32-02. Inspection of rendering plant of applicant by state veterinarian 🗎 PDF 

The state veterinarian shall inspect an establishment for which a license is requested to operate a rendering plant, including its equipment and vehicles and the manner in which its business is conducted, with reference and due regard to the danger of animal disease transmission and dissemination, upon the receipt of an application for a license to operate a rendering plant or other establishment for processing the carcasses of domestic or wild animals, not intended for human consumption.

4.1-32-03. Granting of license - Fee - Term 🗎 PDF 

The agriculture commissioner shall issue a license to operate a rendering plant, if the inspection does not reveal any danger of animal disease transmission, upon payment of a fee of fifty dollars. The license is valid for a period of one year from the date of issuance unless it is revoked for cause by the commissioner before expiration.

4.1-32-04. Unloading chutes and vehicles used by rendering plant - Regulations governing 🗎 PDF 

  1. Any unloading places or chutes used by a rendering plant or establishment must be on cement floors that can be cleaned and disinfected. Every vehicle used for transporting carcasses of dead animals to a rendering plant or establishment must:
    1. Have a bed or tank not less than fifty inches [127 centimeters] in width which is all metal, metal lined, or watertight for at least six inches [15.24 centimeters] above the floor of the box or bed of the vehicle.
    2. Have a metal-lined endgate that is hinged at the bottom of the bed or box of the vehicle and is fastened firmly to the top of the bed or box of the vehicle when closed.
    3. Have sides, a top, and an endgate that will prevent flies and other insects from entering the vehicle.
    4. Carry a tank filled with a solution approved by the state veterinarian for use as a disinfectant.
    5. Be disinfected with the solution described in subdivision d after it has been used for collecting a dead animal and before it enters upon any public highway of this state. Special attention must be given to all those parts of the vehicle which came in contact with the ground while upon the premises.
    6. Be thoroughly washed and disinfected with the solution described in subdivision d or with live steam, or both, after the dead animal has been unloaded at the rendering plant.
  2. The operator of any vehicle used for transporting the carcasses of dead animals to a rendering plant shall wash with disinfectant, paying special attention to disinfecting the operator's hands and footwear, with the solution described in subdivision d of subsection 1 immediately after leaving any farm at which the operator has collected the carcass of a dead animal.

4.1-32-05. Removal of carcasses from vehicle - Prohibition 🗎 PDF 

A carcass collected at any farm in this state may not be removed from the vehicle except at a rendering plant or other establishment using the carcasses of domestic or wild animals, not intended for human consumption, for processing and final disposal.

4.1-32-06. Operator of vehicle for rendering plant to have certificate 🗎 PDF 

Any person operating a vehicle for an establishment licensed under this chapter must have an authorized certificate from the establishment which has been approved by the agriculture commissioner.

4.1-32-07. Inspection of plant authorized 🗎 PDF 

The operator of any establishment licensed under this chapter shall permit an official authorized by the state veterinarian or any health officer to inspect the licensed establishment at any time.

4.1-32-08. Rendering done by packing plants operating under federal inspection - Exception 🗎 PDF 

All rendering done by a packing plant operating under federal inspection in a building adjacent to or on the same premises as the packing plant is exempt from the provisions of this chapter, except that the transportation by the packing plant or any establishment licensed under this chapter of carcasses and other animal substances on any public highway or street is subject to the sanitary requirements of this chapter and the rules adopted by the state board of animal health.

4.1-32-09. Money collected - Where credited 🗎 PDF 

Money collected under this chapter must be deposited in the general fund by the state treasurer.

4.1-32-10. Restrictions on locating rendering plants 🗎 PDF 

An establishment licensed under this chapter may not be constructed within three miles [4.83 kilometers] of the limits of any municipality or within one mile [1.61 kilometers] of any farmstead unless the owner of the farmstead gives written consent.

4.1-32-11. Penalty 🗎 PDF 

Any person violating any provision of this chapter is guilty of a class B misdemeanor.

Chapter 33 — Pesticide Control

4.1-33-01. Definitions 🗎 PDF 

As used in this chapter:
  1. "Animal" means vertebrate and invertebrate species, including humans and other mammals, birds, fish, and shellfish.
  2. "Antimicrobial pesticide" means a substance or mixture of substances intended for preventing, destroying, repelling, suppressing, or mitigating the growth of micro-organisms, including bacteria, viruses, and fungi on inanimate objects and surfaces.
  3. "Applicator" means a person who applies a pesticide to land.
  4. "Certified applicator" means an individual who is certified under this chapter to purchase or use a restricted use pesticide.
  5. "Commercial applicator" means a person who, by contract or for hire, engages in the business of applying pesticides for compensation.
  6. "Defoliant" means a substance or mixture of substances intended to cause the leaves or foliage to drop from a plant, with or without causing abscission.
  7. "Desiccant" means a substance or mixture of substances intended to artificially accelerate the drying of plant tissue.
  8. "Device" means an instrument or contrivance, other than a firearm, which is intended for trapping, destroying, repelling, or mitigating any pest or any other form of plant or animal life, other than human and other than bacteria, virus, or other micro-organism on or in living humans or other living animals, but not including equipment used for the application of pesticides when sold separately from pesticide.
  9. "Distribute" means to offer for sale, hold for sale, sell, barter, ship, deliver, or supply pesticides in the state.
  10. "Environment" includes water, air, land, and all plants, humans, and other animals living there, and the interrelationships existing among them.
  11. "Equipment" means a type of ground, water, or aerial equipment or contrivance using motorized, mechanical, or pressurized power and used to apply a pesticide on land and anything that may be growing, inhabiting, or stored on or in that land. The term does not include a pressurized hand-held household apparatus used to apply a pesticide, or equipment or contrivance of which the individual who is applying the pesticide is the source of power or energy to make the pesticide application.
  12. "Fungus" means a non-chlorophyll-bearing thallophytes, that is, a non-chlorophyll-bearing plant of a lower order than mosses and liverworts as, for example, rust, smut, mildew, mold, yeast, and bacteria, except fungus on or in living humans or other living animals, and except fungus on or in processed food, beverages, or pharmaceuticals.
  13. "Insect" means one of the numerous small invertebrate animals generally having the body more or less obviously segmented, for the most part belonging to the class of insecta, comprising six-legged, usually winged forms, and to other allied classes of arthropods for which members are wingless and usually have more than six legs.
  14. "Label" means the written, printed, or graphic matter on, or attached to, the pesticide or device or any of the pesticide or device's containers or wrappers.
  15. "Labeling" means the label and other written, printed, or graphic matter:
    1. Accompanying the pesticide or device; or
    2. To which reference is made on the label or in literature accompanying or referring to the pesticide, except when accurate nonmisleading references are made to current official publications of the board, the United States environmental protection agency, the United States departments of agriculture and interior, the United States department of health and human services, state agricultural colleges, and other similar federal or state institutions or agencies authorized by law to conduct research in the field of pesticides.
  16. "Land" means land and water areas, including airspace, and plants, animals, structures, buildings, contrivances, and machinery, appurtenant to or situated on land, fixed or mobile, including any used for transportation.
  17. "Nematode" means an invertebrate animal of the phylum nemathelminthes, and class nematoda, i.e., unsegmented round worms with elongated, fusiform, or saclike bodies covered with cuticle, and inhabiting soil, water, plants, or plant parts, may also be called nemas or eelworms.
  18. "Pest" means an insect, rodent, nematode, fungus, or weed; or other form of terrestrial or aquatic plant or animal life, viruses, bacteria, or other micro-organism, except viruses, bacteria, or other micro-organisms on or in living humans or other living animals.
  19. "Pesticide" means:
    1. A substance or mixture of substances intended for preventing, destroying, repelling, or mitigating any pest; and
    2. A substance or mixture of substances intended for use as a plant regulator, defoliant, or desiccant.
  20. "Pesticide certification standards" means the requirements under title 40, Code of Federal Regulations, sections 171.101 through 171.107, as those sections existed on January 4, 2017.
  21. "Pesticide dealer" means a person, other than a pesticide wholesaler, distributing pesticides.
  22. "Plant regulator" means a substance or mixture of substances intended, through physiological action, to accelerate or retard the rate of growth or rate of maturation, or to otherwise alter the behavior of plants or the produce thereof, but does not include substances to the extent that they are intended as plant nutrients, trace elements, nutritional chemicals, plant inoculants, or soil amendments.
  23. "Private applicator" means an individual who is required to be a certified applicator to buy or use a restricted use pesticide on property owned or rented by the applicator or the applicator's employer or, if applied without compensation other than trading of personal services between producers of agricultural commodities, on the property of another person.
  24. "Public applicator" means an applicator who applies pesticides, other than ready-to-use pesticides, as an employee of:
    1. A governmental agency, municipal corporation, or public utility; or
    2. A hospital, privately owned golf course, nursery, or greenhouse.
  25. "Ready-to-use pesticide" means a pesticide other than a restricted use pesticide which is applied directly from its original container consistent with label directions, and includes aerosol spray cans, ready-to-use spray containers, bait packs, and other types of containers that do not require mixing or loading before application.
  26. "Restricted use pesticide" means a pesticide formulation classified as restricted use by the United States environmental protection agency or the agriculture commissioner under section 4.1-34-06.
  27. "Rinsate" means a diluted mixture of pesticide obtained from triple rinsing or pressure rinsing pesticide containers or from rinsing the inside and outside of spray equipment.
  28. "Tank mix" means a pesticidal formulation used alone or in combination with another pesticide and mixed with a liquid carrier prior to application.
  29. "Unreasonable adverse effects on the environment" means an unreasonable risk to humans or the environment, taking into account the economic, social, and environmental costs and benefits of the use of any pesticide.
  30. "Weed" means a plant that grows where not wanted.
  31. "Wildlife" means living things that are not human, domesticated, or, as defined in this chapter, pests, including mammals, birds, and aquatic life.

4.1-33-01.1. Standards for pesticide certification 🗎 PDF 

The pesticide certification standards as defined under section 4.1-33-01, are incorporated by reference and made part of this chapter.

4.1-33-02. Pesticide control board - Enforcement by agriculture commissioner 🗎 PDF 

  1. The pesticide control board consists of the agriculture commissioner, the director of the cooperative extension division of the North Dakota state university of agriculture and applied science, and the director of the agricultural experiment station at North Dakota state university of agriculture and applied science. The agriculture commissioner is chairman of the board. The board shall meet at the call of the chairman.
  2. The agriculture commissioner is responsible for the enforcement of this chapter. Any authority of the commissioner under this chapter may be executed by such employees or agents designated by the commissioner.
  3. The members of the board must be compensated for their expenses in performing their duties under this chapter at the same rate as other state officials and the board's expenses must be paid from funds provided to the agriculture commissioner for the administration of this chapter. The board may act through the office of the agriculture commissioner and the commissioner's staff shall provide staff services for the board as directed by the commissioner.

4.1-33-03. Pesticide control board to administer chapter and adopt rules 🗎 PDF 

    1. The pesticide control board shall administer this chapter and may adopt rules under chapter 28-32 to implement this chapter. The rules may prescribe methods to be used in the application of pesticides. The rules may relate to the time, place, manner, methods, materials, and amounts and concentrations, in connection with the application of the pesticide, and may restrict or prohibit use of pesticides in designated areas during specified periods of time and must encompass all reasonable factors that the board deems necessary to prevent damage or injury by drift or misapplication to:
      1. Plants, including forage plants, on adjacent or nearby lands.
      2. Wildlife in the adjoining or nearby areas.
      3. Fish and other aquatic life in waters in proximity to the area to be treated.
      4. Persons, animals, or beneficial insects.
    2. In adopting rules, the board shall give consideration to pertinent research findings and recommendations of other agencies of the state, federal government, or other reliable sources.
  2. In adopting rules under this chapter, the board shall prescribe standards and requirements for the certification of applicators of pesticides. The standards and requirements must relate to the use and handling of pesticides. In determining the standards and requirements, the board shall adopt standards and requirements prescribed by the United States environmental protection agency in the pesticide certification standards.
  3. Rules adopted under this chapter may not permit any pesticide use that is prohibited by the Federal Insecticide, Fungicide, and Rodenticide Act [7 U.S.C. 136 et seq.] or regulations or orders issued thereunder.
  4. To comply with the pesticide certification standards and the Federal Insecticide, Fungicide, and Rodenticide Act [7 U.S.C. 136 et seq.], the board shall make reports to the United States environmental protection agency in the form and containing the information as the agency requires.
  5. Rules to implement this chapter may provide for:
    1. The collection, examination, and reporting of samples of pesticides.
    2. The safe handling, transportation, storage, display, distribution, and disposal of pesticides and pesticides containers.
    3. The identification of pests under this chapter if the board finds particular organisms to be annoying or otherwise injurious or harmful to agriculture, health, and the environment.

4.1-33-04. Limitation on authority of political subdivisions regarding pesticides 🗎 PDF 

A political subdivision, including a home rule city or county, may not adopt or continue in effect any ordinance, resolution, or home rule charter provision regarding the registration, labeling, distribution, sale, handling, use, application, transportation, or disposal of pesticides. This section does not apply to city zoning ordinances.

4.1-33-05. Application to governmental entities and public utilities 🗎 PDF 

All governmental agencies and public utilities are subject to this chapter and rules adopted under this chapter.

4.1-33-06. Classification of commercial certificates 🗎 PDF 

The board may classify commercial certificates to be issued under this chapter. The classifications may include pest control operators, wood treaters, ornamental or agricultural pesticide applicators, or right-of-way pesticide applicators. Separate classifications may be specified as to ground, aerial, or manual methods used by any applicator to apply pesticides or to the use of pesticides to control insects and plant diseases, rodents, or weeds. Each classification of certification may be subject to separate testing procedures and training requirements. A person may be required to pay an additional fee if the person desires to be certified in one or more of the classifications provided for by the board under this section.

4.1-33-07. Commercial and public applicator's certification 🗎 PDF 

  1. A commercial or public applicator may not purchase, use, or supervise the use of a pesticide without first complying with the certification standards and requirements of this chapter, or other restrictions as may be determined by the board.
  2. An individual may be certified as a commercial or public applicator within a classification if the individual successfully completes an examination for the classification as prescribed by the board and administered by the North Dakota state university extension service or the service's designee. An application for certification must be on a form prescribed by the board and accompanied by a reasonable examination fee set by the board.
  3. If the North Dakota state university extension service, or its designee, finds, after examination as the board requires, the applicant qualified to apply pesticides in the classifications for which the applicant has applied and the applicant meets all other requirements of this chapter, the North Dakota state university extension service shall issue a commercial or a public applicator's certificate limited to the classifications in which the applicant is qualified.
  4. If certification is not to be issued as applied for, the North Dakota state university extension service, or its designee, shall inform the applicant in writing of the reasons for not issuing the certification.

4.1-33-07.1. Certification requirements - Waiver for emergencies 🗎 PDF 

If the governor declares a statewide state of disaster or emergency that affects the certification requirements under this chapter, the pesticide control board may temporarily waive statutory requirements, or any associated rules, relating to the certification for the duration of the declared state of disaster or emergency.

4.1-33-08. Expiration of certification - Renewal 🗎 PDF 

A certificate issued under section 4.1-33-07 expires as of the first day of April following two years from the date of issuance. A certificate is renewable every three years on April first. A certificate may be renewed upon completion of a seminar approved by the board or upon successfully completing an examination required by the board, or both, if required by the board. The board shall require a person holding a current valid certificate to take an examination within the three-year period if the board determines additional knowledge related to classifications for which the applicant has applied makes a new examination necessary or that a new evaluation is necessary to assure a continuing level of competence and ability to safely and properly use pesticides.

4.1-33-09. Nonresident application - Designation of agent for service of process 🗎 PDF 

  1. A nonresident applying for certification as an applicator or dealer under this chapter shall file a written power of attorney in a form as to render effective the jurisdiction of the courts of this state over the nonresident applicant designating either:
    1. North Dakota state university extension service or its designee as the nonresident's agent upon whom service of process may be had in the event of any suit against that nonresident person; or
    2. The duly appointed nonresident person's resident agent upon whom process may be served as provided by law.
  2. The extension service is allowed such fees for service as a registered agent as provided by law for designating resident agents. The nonresident must be furnished with a copy of the designation of the extension service or of a resident agent. The copy must be duly certified by the extension service.

4.1-33-10. Proof of financial responsibility - Exceptions 🗎 PDF 

  1. A commercial applicator certificate may not be issued unless the applicant furnishes proof of financial responsibility. Financial responsibility must be maintained in the amount of one hundred thousand dollars. Financial responsibility may be demonstrated by a notarized letter from an officer of a financial institution or from a certified public accountant attesting to the existence of net assets equal to at least one hundred thousand dollars, a performance bond, or a general liability insurance policy. The performance bond or insurance policy must contain a provision requiring the issuing company to notify the agriculture commissioner at least ten days before the effective date of cancellation, termination, or other modification of the bond or insurance policy. When requested by the agriculture commissioner, a commercial applicator immediately shall furnish proof of compliance with this section. If the applicator is unable to furnish the required proof, the commissioner may stop a pesticide application and not allow resumption until the applicator furnishes proof of compliance. The agriculture commissioner shall immediately suspend the certification of a commercial applicator who fails to maintain the financial responsibility standards of this section. If there is any recovery against the commercial applicator, the applicator shall demonstrate continued compliance with the requirements of this section. An application for reinstatement of a certificate suspended under this section must be accompanied by proof that any judgment previously rendered against the applicant has been satisfied.
  2. This section does not apply to:
    1. A rancher who must obtain a commercial applicator certificate for controlling noxious weeds on the leased federal acreage as a condition of a federal grasslands lease.
    2. A grazing association and its members if either the association or any member must obtain a commercial applicator certificate for controlling noxious weeds on the leased federal acreage as a condition of a federal grasslands lease.
    3. A person who must be certified in the right-of-way category.
    4. A commercial applicator who controls noxious weeds on grassland, land producing tame hay, or other lands not devoted to the production of an annual crop.
    5. An employee of a commercial applicator if the commercial applicator complies with this section.

4.1-33-11. Pesticide dealer certification - Employees - Requirements for purchase 🗎 PDF 

  1. A pesticide dealer may not distribute restricted use pesticides or act as a restricted use pesticide dealer, without first having obtained certification from the North Dakota state university extension service, or the service's designee. During hours the business is open, a certified person must be at any location or outlet from which restricted use pesticides are distributed. Any manufacturer or distributor that has no pesticide dealer outlet within this state and which distributes such pesticides directly into this state shall obtain a pesticide dealer certificate for its principal out-of-state location or outlet.
  2. Application for a certificate must be on a form prescribed by the board accompanied by an examination fee set by the board. The application must include the address of each outlet, the principal business address of the applicant, the name of a person domiciled in this state authorized to receive and accept service of summons of legal notices of all kinds for the applicant, and any other necessary information prescribed by the board.
  3. The board shall require each pesticide dealer to demonstrate to the North Dakota state university extension service or the service's designee knowledge of pesticide laws and regulations; pesticide hazards to humans, animals, and the environment; and the safe distribution, disposal, and use and application of pesticides by satisfactorily passing an examination or meeting other requirements as prescribed by the board within each classification for which certification is sought.
  4. Each pesticide dealer is responsible for the acts of each individual employed by the dealer in the solicitation and sale of restricted use pesticides and all claims and recommendations for use of such pesticides. The dealer's certification is subject to suspension or revocation, after a hearing, for any violation of this chapter committed by the dealer or by the dealer's officer, agent, or employee.
  5. A certificate issued under this section expires on the first day of April following two years from the date of issuance. A certificate is renewable every three years on April first. The board may condition renewal of a certificate upon completion of a seminar approved by the board or successful completion of an examination required by the board, or both. The board may require any person holding a current valid certificate to take an examination within the three-year period if the board determines additional knowledge related to pesticides makes an additional examination necessary or that a new evaluation is necessary to assure a continuing level of competence and ability to safely and properly distribute pesticides.
  6. Restricted use pesticides may be sold only to:
    1. Persons certified as applicators by this state; and
    2. Persons certified to use restricted use pesticides by another state, provided the pesticide control board determines the certifying state's requirements are substantially similar to those of this state and that the person does not use the restricted use pesticide in this state.

4.1-33-12. Private applicators - Certification 🗎 PDF 

    1. An individual who would be a private applicator, if certified, may not buy any restricted use pesticide unless the individual first complies with the certification requirements established by the board.
    2. An individual who would be a private applicator, if certified, may not use any restricted use pesticide unless the individual:
      1. Complies with the certification requirements established by the board; or
      2. Is under the direct supervision of a certified applicator while applying a restricted use herbicide.
  2. Certification standards to determine the individual's competency with respect to the use and handling of the pesticide or class of pesticides the private applicator is to be certified to use must be determined by the board. In determining these standards, the board shall consider similar standards of the United States environmental protection agency. The North Dakota state university extension service, or its designee, shall issue a certificate to any private applicator who has qualified as prescribed by the board. The North Dakota state university extension service, or its designee, may require any applicant required to be certified under this section to pay a reasonable fee, not greater than the cost to the North Dakota state university extension service, for materials provided to the applicant for training and education.

4.1-33-13. Unlawful acts and grounds for denial, suspension, or revocation of a certification 🗎 PDF 

  1. It is a violation of this chapter for a person to:
    1. Make false or fraudulent claims through any media, misrepresenting the effect of materials or methods to be utilized, or advertise a pesticide without reference to its classification.
    2. Make a pesticide recommendation, application, or use inconsistent with the labeling or other restrictions prescribed by the board.
    3. Apply materials known by that person to be ineffective or improper.
    4. Operate faulty or unsafe equipment.
    5. Operate in a faulty, careless, or negligent manner.
    6. Neglect or, after notice, refuse to comply with this chapter, the rules adopted to implement this chapter, or any lawful order of the commissioner.
    7. Refuse or neglect to keep and maintain the records required by this chapter or to make reports when and as required.
    8. Make false or fraudulent records, invoices, or reports.
    9. Apply pesticide to the property of another, without the permission of the owner or lessee, unless the application is made under the direction of a governmental entity.
    10. Use fraud or misrepresentation in making an application for, or for renewal of, certification.
    11. Refuse or neglect to comply with any limitations or restrictions on or in a duly issued certification.
    12. Aid or abet a person to evade this chapter, conspire with a person to evade this chapter, or allow the person's certification to be used by another person.
    13. Knowingly make false statements during or after an inspection or an investigation.
    14. Impersonate a federal, state, county, or city inspector or official.
    15. Distribute any restricted use pesticide to any person who is not properly certified to use or purchase the pesticide.
    16. Buy, use, or supervise the use of any pesticide without first complying with the certification requirements of this chapter, unless otherwise exempted.
    17. Apply any pesticide that is not registered under chapter 4.1-34.
  2. A certification issued under this chapter may be denied, removed, or suspended if a person:
    1. Receives a criminal conviction under section 136l of the Federal Insecticide, Fungicide, and Rodenticide Act [7 U.S.C. 136 et seq.];
    2. Is subject to a final order imposing a civil penalty under section 136l of the Federal Insecticide, Fungicide, and Rodenticide Act [7 U.S.C. 136 et seq.]; or
    3. Is subject to a concluded enforcement action for a violation of state law or regulation relating to pesticide use.

4.1-33-14. Records - Retention - Submission to commissioner 🗎 PDF 

The board shall require pesticide dealers, commercial applicators, and public applicators to maintain records of sales and purchases of restricted use and special exemption pesticides. The board shall require commercial applicators and public applicators to maintain records of all applications of pesticides. The board may require restricted use pesticide application records of private applicators. The records must be kept for a period of three years from the date of the application, sale, or purchase of the pesticide. Upon request, all or any requested part of these records must be submitted to the commissioner.

4.1-33-15. Reciprocal agreement 🗎 PDF 

The North Dakota state university extension service, or its designee, may issue a certification on a reciprocal basis, without examination, to a nonresident who is certified to buy, distribute, or use restricted use pesticides under a plan substantially similar to this chapter and after the applicant has paid a fee, set by the board, not greater than the fee or charge authorized under section 4.1-33-07, 4.1-33-11, or 4.1-33-12 if the applicant would have taken the appropriate examination. Such a certification may be suspended or revoked in the same manner and on the same grounds as certifications under this chapter, and must be suspended or revoked if the nonresident's home state certification is suspended or revoked.

4.1-33-16. Certification exemptions 🗎 PDF 

  1. The certification requirements of this chapter do not apply to an individual applying nonrestricted use pesticides under the direct supervision of a private or commercial applicator, unless the pesticide label requires that a certified applicator personally apply the pesticide. A pesticide is applied under the direct supervision of a private or commercial applicator if the pesticide is applied by an individual acting under the instruction and control of a certified applicator who is physically available if needed. The certified applicator need not be present when the pesticide is applied. Direct supervision with respect to applications using aircraft requires that the pilot of the aircraft be appropriately certified. The certification requirements of this chapter do not apply to a competent person applying a restricted use herbicide under the direct supervision of a private applicator, unless the herbicide label requires that a certified applicator personally apply the particular herbicide. An herbicide is deemed to be applied under the direct supervision of a private applicator if it is applied by a competent person acting under the instruction and control of a private applicator who is available if needed, even though the private applicator is not physically present at the time and place the herbicide is applied.
  2. The certification requirements of this chapter do not apply to any person conducting laboratory-type research using restricted use pesticides or to a doctor of medicine or a doctor of veterinary medicine applying a pesticide as a drug or as medication during the course of normal practice.
  3. The certification requirements of this chapter do not apply to an individual applying nonrestricted-use antimicrobial pesticides.

4.1-33-17. Discarding and storing of pesticides, pesticide containers, and rinsate 🗎 PDF 

A person may not discard, store, display, or permit the disposal of surplus pesticides, empty pesticide containers and devices, or rinsate in such a manner as to endanger the environment or to endanger food, feed, or any other products that may be stored, displayed, or distributed with such pesticides. The board shall adopt rules governing the discarding, storage, display, or disposal of any pesticide, rinsate, pesticide containers, or devices.

4.1-33-18. Pesticide application - Alleged property damage - Notification of applicator 🗎 PDF 

    1. Before a person may file a civil action seeking reimbursement for property damage allegedly stemming from the application of a pesticide, the person shall notify by certified mail the pesticide applicator of the alleged damage within the earlier of:
      1. Twenty-eight days from the date the person first knew or should have known of the alleged damage; or
      2. Before twenty percent of the crop or field allegedly damaged is harvested or destroyed.
    2. Subdivision a does not apply if the person seeking reimbursement for property damage was the applicator of the pesticide.
  2. Upon notifying the applicator as required under subsection 1, the person seeking reimbursement for the alleged property damage shall permit the applicator and up to four representatives of the applicator to enter the person's property for the purpose of observing and examining the alleged damage. If the person fails to allow entry, the person is barred from asserting a claim against the applicator.

4.1-33-19. Subpoenas 🗎 PDF 

In any hearing to enforce this chapter, the commissioner may issue subpoenas to compel the attendance of witnesses or production of books, documents, and records pertaining to pesticide applications, sales, and purchases in the state.

4.1-33-20. Penalties 🗎 PDF 

  1. Any person other than a private applicator who knowingly violates this chapter is guilty of a class A misdemeanor.
  2. Any private applicator who knowingly violates this chapter is guilty of a class B misdemeanor.
  3. When construing and enforcing the provisions of this chapter, the act, omission, or failure of any officer, agent, or other person acting for or employed by any person must in every case be also deemed to be the act, omission, or failure of such person as well as that of the person employed.
  4. A person who violates this chapter or the rules adopted under this chapter is subject to a civil penalty not to exceed five thousand dollars for each violation. The civil penalty may be imposed by a court in a civil proceeding or by the agriculture commissioner through an adjudicative proceeding pursuant to chapter 28-32. The assessment of a civil penalty does not preclude the imposition of other sanctions authorized by law, this chapter, or rules adopted under this chapter.
  5. After providing an opportunity for a hearing, the commissioner may deny, suspend, revoke, or modify the provision of any certification issued under this chapter, if the commissioner determines that the applicant for certification or the holder of a certificate has violated this chapter or any rules adopted under this chapter, or has a criminal conviction subject to a final order imposing a civil penalty under section 136l of the Federal Insecticide, Fungicide, and Rodenticide Act [7 U.S.C. 136 et seq.].

4.1-33-21. Enforcement 🗎 PDF 

  1. The commissioner shall enforce the requirements of this chapter and any rules adopted under this chapter.
  2. The commissioner may bring an action to enjoin the violation or threatened violation of this chapter, or any rule adopted under this chapter, in the district court of the county in which the violation occurs or is about to occur.
  3. If any person violates this chapter, the commissioner may issue an order requiring the person to cease and desist from the unlawful activity. If the violator fails to obey, the commissioner shall cause the appropriate criminal complaint to be filed.
  4. The commissioner may enter upon any public or private premises at reasonable times, to:
    1. Inspect any equipment subject to this chapter and the premises on which the equipment is stored or used.
    2. Inspect or sample lands actually or reported to be exposed to pesticides.
    3. Inspect storage or disposal areas.
    4. Inspect or investigate complaints of injury to humans or land.
    5. Draw samples of a reasonable amount of tank mix pesticides and tank mixes without compensation to the owner for values less than three dollars.
    6. Observe the use and application of a pesticide.
    7. Inspect any place where pesticides or devices are stored or held for distribution, sale, or use, and obtain samples of any pesticides packaged, labeled, and released for shipment and samples of any containers or labeling for the pesticides.
    1. At any reasonable time, the commissioner may access records pertaining to the pesticide application, sales, purchases, and repackaging by any person. The commissioner may copy or make copies of the records for the purpose of this chapter. These records are confidential. However, the commissioner may use these records in any way to enforce this chapter. Any record the commissioner uses as an exhibit in an enforcement action is no longer a confidential record.
    2. If an individual alleges exposure to pesticides and if the individual's medical provider requests that the commissioner reveal the name of the pesticide, the commissioner may reveal the name of the pesticide to the individual making the request, together with the registration number assigned by the United States environmental protection agency. The commissioner may require a request under this section be made in writing.
  6. If access is refused or if the commissioner determines critical enforcement documentation may be lost, the commissioner may apply to any court for a search warrant authorizing access to land or records. Upon compliance with chapter 29-29.1, the court may issue the search warrant for the purposes requested.
  7. The commissioner may suspend or revoke a certification issued under this chapter for failure to pay a civil penalty within thirty days after a final determination is made that the civil penalty is owed.

4.1-33-22. Stop-sale orders 🗎 PDF 

If the commissioner has reason to believe on the basis of inspection or tests that any pesticide or device is in violation of any provision of this chapter, or if the registration of the pesticide has been canceled or suspended by the state or United States environmental protection agency, the commissioner may issue a written or printed "stop-sale, use, or removal" order to any person who owns, controls, or has custody of the pesticide or device. After receipt of the order, a person may not sell, use, or remove the pesticide or device described in the order except in accordance with the provisions of the order.

4.1-33-23. Information and instruction 🗎 PDF 

In cooperation with private, local, state, or federal agencies, the board may publish information and conduct short courses of instruction in the areas of knowledge required by this chapter.

4.1-33-24. Cooperation by the board with other entities 🗎 PDF 

The board may cooperate, receive grants-in-aid, and enter cooperative agreements with any agency of the federal government, of this state or its subdivisions, or with any agency of another state, to:
  1. Secure uniformity of regulations.
  2. Enter cooperative agreements with and submit plans to the United States environmental protection agency for approval to issue experimental use permits under the authority of this chapter and the Federal Insecticide, Fungicide, and Rodenticide Act [7 U.S.C. 136 et seq.].
  3. Cooperate in the enforcement of the federal pesticide control laws and state laws through the use of state or federal personnel and facilities and to implement cooperative enforcement programs.
  4. Enter contracts with other agencies, including federal agencies, for the purpose of training pesticide applicators, managers, dealers, and pesticide consultants.
  5. Gain assistance in implementation of this chapter.
  6. Regulate certified applicators.
  7. Comply with other purposes prescribed by rules of the commissioner.

4.1-33-25. Disposition of funds - Certification and training fund 🗎 PDF 

All moneys received by the pesticide control board under this chapter must be deposited to the credit of the certification and training fund under the control of the board.

Chapter 34 — Pesticide Registration

4.1-34-01. Definitions 🗎 PDF 

For the purposes of this chapter, unless the context or subject matter otherwise requires:
  1. "Active ingredient" means:
    1. In the case of a pesticide other than a plant regulator, defoliant, or desiccant, any ingredient that will prevent, destroy, repel, or mitigate pests.
    2. In the case of a plant regulator, any ingredient that, through physiological action, will accelerate or retard the rate of growth or rate of maturation or otherwise alter the behavior of ornamental or crop plants or the product thereof.
    3. In the case of a defoliant, any ingredient that will cause the leaves or foliage to drop from a plant.
    4. In the case of a desiccant, any ingredient that will artificially accelerate the drying of plant tissue.
  2. "Adulterated" applies to any pesticide if its strength or purity falls below the professed standard or quality as expressed on labeling or under which it is sold, or if any substance has been substituted wholly or in part for the pesticide, or if any valuable constituent of the pesticide has been wholly or in part abstracted.
  3. "Antidote" means the most practical immediate treatment in case of poisoning and includes first-aid treatment.
  4. "Commissioner" means the agriculture commissioner and includes any employee or agent designated by the commissioner.
  5. "Defoliant" means any substance or mixture of substances intended to cause the leaves or foliage to drop from a plant with or without causing abscission.
  6. "Desiccant" means any substance or mixture of substances intended to artificially accelerate the drying of plant tissues.
  7. "Device" means any instrument or contrivance intended for trapping, destroying, repelling, or mitigating pests but does not include equipment used for the application of pesticides when sold separately therefrom, or rodent traps.
  8. "Environment" means air, water, land, and all plants and man and other animals living therein and the interrelationships that exist among these.
  9. "Federal Act" means the Federal Insecticide, Fungicide, and Rodenticide Act [7 U.S.C. 136 et seq.].
  10. "Fungi" means all non-chlorophyll-bearing thallophytes, that is, all non-chlorophyll-bearing plants of a lower order than mosses and liverworts, as, for example, rusts, smuts, mildews, molds, yeasts, and bacteria, except those on or in living humans or other animals, and those on or in processed food, beverages, or pharmaceuticals.
  11. "Fungicide" means any substance or mixture of substances intended for preventing, destroying, repelling, or mitigating any fungi.
  12. "Herbicide" means any substance or mixture of substances intended for preventing, destroying, repelling, or mitigating any weed.
  13. "Inert ingredient" means an ingredient that is not an active ingredient.
  14. "Ingredient statement" means:
    1. A statement of the name and percentage of each active ingredient, together with the total percentage of the inert ingredients, in the pesticide; or
    2. A statement of the name of all active ingredients in the order of their predominance in the product, together with the name of each and total percentage of any inert ingredients in the pesticide, except subdivision a applies if the preparation is highly toxic to humans, determined as provided in section 4.1-34-06, and in addition to subsections 1 and 2 of section 4.1-34-06. If the pesticide contains arsenic in any form, a statement must contain the percentages of total and water-soluble arsenic, each calculated as elemental arsenic.
  15. "Insect" means any of the numerous small invertebrate animals generally having the body more or less obviously segmented, for the most part belonging to the class insecta, comprising six-legged, usually winged forms, as for example, beetles, bugs, bees, flies, and to other allied classes of arthropods whose members are wingless and usually have more than six legs, as, for example, spiders, mites, ticks, centipedes, and wood lice.
  16. "Insecticide" means any substance or mixture of substances intended for preventing, destroying, repelling, or mitigating any insects that may be present in any environment.
  17. "Label" means the written, printed, or graphic matter on, or attached to, the pesticide or device, or any of its containers or wrappers.
  18. "Labeling" means all labels and other written, printed, or graphic matter:
    1. Upon the pesticide or device or any of its containers or wrappers;
    2. Accompanying the pesticide or device at any time; or
    3. To which reference is made on the label or in literature accompanying the pesticide or device, except when accurate, nonmisleading reference is made to current official publications of a state or federal agency, state agricultural experiment station, or state agricultural college.
  19. "Misbranded" applies:
    1. To any pesticide or device if its labeling bears any statement, design, or graphic representation relative to the pesticide or device or to its ingredients which is false or misleading in any particular; and
    2. To any pesticide:
      1. If the pesticide is an imitation of or is offered for sale under the name of another pesticide;
      2. If the pesticide's labeling bears any reference to registration under this chapter;
      3. If the labeling accompanying the pesticide does not contain directions for use which are necessary and, if complied with, adequate to protect health and the environment;
      4. If the label does not contain a warning or caution statement that may be necessary and, if complied with, adequate to protect health and the environment;
      5. If the label does not bear an ingredient statement on that part of the immediate container and, if there is an outside container or wrapper, if the outside container or wrapper does not have affixed a correct copy of the required labeling information from the immediate container or does not contain an opening through which the ingredient statement on the immediate container can be clearly read, of the retail package that is presented or displayed under customary conditions of purchase; except that a pesticide is not misbranded under this subsection if:
        1. The size or form of the immediate container, or the outside container or wrapper of the retail package, makes it impracticable to place the ingredient statement on the part that is presented or displayed under customary conditions of purchase; and
        2. The ingredient statement appears prominently on another part of the immediate container, or outside container or wrapper, permitted by the commissioner;
      6. The labeling does not contain a statement of the use classification under which the product is registered if the product is a restricted use pesticide;
      7. There is no label information affixed to its container, and, if there is an outside container or wrapper of the retail package, there is no label information affixed to the outside container or wrapper and the outside container or wrapper does not contain an opening through which the label information on the immediate container can be clearly read. The label information must include:
        1. The name and address of the producer, registrant, or person for whom produced;
        2. The name, brand, or trademark under which the pesticide is sold; and
        3. The net weight or measure of the content;
      8. The pesticide contains any substance or substances in quantities highly toxic to humans, unless the label bears, in addition to any other matter required by this chapter:
        1. The skull and crossbones;
        2. The word "poison" prominently in red on a background of distinctly contrasting color; and
        3. A statement of a first aid or other practical treatment in case of poisoning by the pesticide;
      9. If any word, statement, or other information required under this chapter to appear on the labeling is not prominently placed thereon with such conspicuousness, as compared with other words, statements, designs, or graphic matter in the labeling, and in such terms as to render it likely to be read and understood by the ordinary individual under customary conditions of purchase and use;
      10. If in the case of an insecticide, nematocide, fungicide, or herbicide, when used as directed or in accordance with commonly recognized practice, it is injurious to humans or vertebrate animals or vegetation, except weeds to which it is applied, or to the individual applying the pesticide; or
      11. If a plant regulator, defoliant, or desiccant when used as directed is injurious to humans or vertebrate animals, or the vegetation to which it is applied. The physical or physiological effect on plants may not be deemed injurious when this is the purpose for which the plant regulator, defoliant, or desiccant is applied in accordance with label claims and recommendations.
  20. "Nematocide" means any substance intended to prevent, destroy, repel, or mitigate nematodes.
  21. "Nematode" means any of the nonsegmented roundworms harmful to agricultural plants.
  22. "Person" means any individual, partnership, association, corporation, limited liability company, or organized group of persons whether incorporated or not.
  23. "Pest" means any insect, rodent, nematode, fungus, weed, or any other form of terrestrial or aquatic plant or animal life, viruses, bacteria, or other micro-organisms except viruses, bacteria, or other micro-organisms on or in living humans or animals.
  24. "Pesticide" means any substance or mixture of substances intended for preventing, destroying, repelling, or mitigating any pests and any substance or mixture of substances intended for use as a plant regulator, defoliant, or desiccant.
  25. "Plant regulator" means any substance or mixture of substances intended, through physiological action, to accelerate or retard the rate of growth or maturation, or to otherwise alter the behavior of ornamental or crop plants or the produce thereof, but does not include substances insofar as they are intended to be used as plant nutrients, trace elements, nutritional chemicals, plant inoculants, or soil amendments. The term "plant regulator" does not include any of such of those nutrient mixtures or soil amendments as are commonly known as vitamin-hormone horticultural products, intended for improvement, maintenance, survival, health, and propagation of plants, and as are not for pest destruction and are nontoxic and nonpoisonous in the undiluted packaged concentration.
  26. "Protect health and environment" means protection against any unreasonable adverse effects on the environment.
  27. "Registrant" means the person registering any pesticide pursuant to this chapter.
  28. "Restricted use pesticides" means any pesticide formulation that is classified for restricted use by the United States environmental protection agency. The term also includes a pesticide formulation classified for restricted use by the commissioner under section 4.1-34-06.
  29. "Rodenticide" means any substance or mixture of substances intended for preventing, destroying, repelling, or mitigating rodents or any other vertebrate animal that the commissioner declares to be a pest.
  30. "Snails" or "slugs" includes all harmful agricultural mollusks.
  31. "Unreasonable adverse effects on the environment" means any unreasonable risk to humans or the environment, taking into account the economic, social, and environmental costs and benefits of the use of any pesticide.
  32. "Weed" means any plant that grows where not wanted.

4.1-34-02. Prohibited acts 🗎 PDF 

  1. A person may not distribute, sell, or offer for sale within this state or deliver for transportation or transport in intrastate commerce or between points within this state through any point outside this state any of the following:
    1. Any pesticide that has not been registered under section 4.1-34-03, or any pesticide if any of the claims made for it or any of the directions for its use differ in substance from the representations made in connection with its registration, or if the composition of a pesticide differs from its composition as represented in connection with its registration. The commissioner may allow a change in the labeling or formula of a pesticide to be made within a registration period without requiring reregistration of the product.
    2. Any pesticide unless the pesticide is in:
      1. The registrant's or the manufacturer's unbroken immediate container; or
      2. A container repackaged by a facility or person with a United States environmental protection agency issued establishment number, and there is affixed to such container, and to any outside container or wrapper of the retail package, a correct copy of the required labeling information from the immediate container or there is in the outside container or wrapper an opening through which the required labeling information on the immediate container can be clearly read.
    3. The pesticide commonly known as standard lead arsenate, basic lead arsenate, calcium arsenate, magnesium arsenate, zinc arsenate, zinc arsenite, sodium fluoride, sodium fluosilicate, and barium fluosilicate unless the pesticide has been distinctly colored or discolored as provided by rules issued in accordance with this chapter, or any other white powder pesticide that the commissioner, after investigation of and after public hearing on the necessity for the action for the protection of the public health and the feasibility of the coloration or discoloration, by rule, requires to be distinctly colored or discolored; unless it has been so colored or discolored. The commissioner may exempt any pesticide to the extent it is intended for a particular use or uses from the coloring or discoloring required or authorized by this section if the commissioner determines the coloring or discoloring for the use is not necessary for the protection of the public health.
    4. Any pesticide that is adulterated or misbranded, or any device that is misbranded.
  2. A person may not detach, alter, deface, or destroy, in whole or in part, any label or labeling provided for in this chapter or rules adopted under this chapter, or to add any substance to, or take any substance from, a pesticide in a manner that may defeat the purpose of this chapter.
  3. A person may not use for the person's own advantage or reveal other than in response to a proper subpoena, except to a physician or other qualified person for use in the preparation of an antidote, any information relative to the formula of any product acquired by authority of this chapter.

4.1-34-03. Registration - Fees - Deposit of collections 🗎 PDF 

  1. Before selling or offering for sale any pesticide for use within this state, a person shall file biennially with the commissioner an application for registration of the pesticide. The application must:
    1. Give the name and address of each manufacturer or distributor.
    2. Give the name and brand of each product to be registered.
    3. Be accompanied by a current label of each product to be registered.
    4. Be accompanied by a registration fee of three hundred fifty dollars for each product to be registered.
    5. Be accompanied by a material safety data sheet for each product to be registered.
  2. The commissioner may require an applicant or registrant to provide efficacy, toxicity, residue, and any other data necessary to determine if the pesticide will perform its intended function without unreasonable adverse effects on the environment. If the commissioner finds the application conforms to law, the commissioner shall issue to the applicant a certificate of registration of the product.
  3. Each registration covers a designated two-year period beginning January first of each even-numbered year and expiring December thirty-first of the following year. A certificate of registration may not be issued for a term longer than two years, and is not transferable from one person to another, or from the ownership to which it is issued to another ownership. A penalty of fifty percent of the license or registration fee must be imposed if the license or certificate of registration is not applied for on or before January thirty-first following the expiration date. Each product must go through a two-year discontinuance period in order to clear all outstanding products in the channel of trade.
  4. This section does not apply to a pesticide sold by a retail dealer if the registration fee has been paid by the manufacturer, jobber, or any other person, as required by this section.
  5. At the close of each calendar month, the commissioner shall transmit to the state treasurer all moneys received for the registrations under this section. The state treasurer shall credit the registration fees to the environment and rangeland protection fund.

4.1-34-04. Reporting requirements 🗎 PDF 

Within thirty days after request by the commissioner, a registrant shall report the amount and type of each registered pesticide sold, offered for sale, or otherwise distributed in the state. The information required must include the brand name, amount, and formulation of each pesticide sold, offered for sale, or otherwise distributed in the state. However, specific brand names may not be identified in any report or otherwise made public.

4.1-34-05. Protection of trade secrets 🗎 PDF 

  1. In submitting data required by this chapter, the applicant may:
    1. Clearly mark any portions that the applicant requests the commissioner to determine to be trade secrets or commercial or financial information; and
    2. Submit the marked material separately from other material.
  2. After consideration of the applicant's request submitted under subsection 1, the commissioner may not make any information public which in the commissioner's judgment contains or relates to trade secrets or to commercial or financial information obtained from an applicant. When necessary, information relating to formulas of products may be revealed to any state or federal agency consulted with similar protection of trade secret authority and may be revealed at a public hearing or in findings of facts issued by the commissioner.
  3. If the commissioner proposes to release information that the applicant or registrant believes to be protected from disclosure under this section, the commissioner shall notify the applicant or registrant by certified mail. The commissioner may not make the information available for inspection until thirty days after receipt of the notice by the applicant or registrant. During this period, the applicant or registrant may institute an action in an appropriate court for a declaratory judgment as to whether the information is subject to protection under this section.

4.1-34-06. Determinations - Rules - Uniformity 🗎 PDF 

  1. After providing an opportunity for a hearing, the commissioner may:
    1. Declare as a pest any form of plant or animal life or virus which is injurious to plants, humans, domestic animals, articles, or substances.
    2. Determine whether pesticides are highly toxic to humans and whether their use should be restricted.
    3. Determine standards of coloring or discoloring for pesticides and to subject pesticides to the requirements of subdivision c of subsection 1 of section 4.1-34-02.
  2. The commissioner may adopt appropriate rules for carrying out this chapter, including rules providing for the collection and examination of samples of pesticides or devices. The commissioner also may adopt rules, applicable to and in conformity with the primary standards established by this chapter, prescribed by the United States environmental protection agency with respect to pesticides to provide uniformity among the requirements of the several states and the federal government.

4.1-34-07. Enforcement 🗎 PDF 

The commissioner shall examine pesticides or devices for compliance with this chapter. If after examination the commissioner intends to initiate criminal proceedings against any person, the commissioner shall cause appropriate notice to be given to the person. Any person notified must be given an opportunity to present the person's views, either orally or in writing, with regard to the contemplated proceedings and if thereafter in the opinion of the commissioner it appears the chapter has been violated by the person, the commissioner shall refer the facts to the state's attorney for the county in which the violation has occurred with a copy of the results of the analysis or the examination of the article. The commissioner is not required to report for prosecution or for the institution of libel proceedings minor violations of this chapter if the commissioner believes the public interests will be best served by a suitable written notice of warning. A state's attorney to whom any violation is reported under this section, without delay, shall cause appropriate proceedings to be instituted and prosecuted in the proper court of jurisdiction. The commissioner, by publication in the manner the commissioner prescribes, shall give notice of all judgments entered in actions instituted under the authority of this chapter.

4.1-34-08. Stop-sale orders 🗎 PDF 

The commissioner may issue and enforce a stop-sale order to the owner or custodian of any pesticide when the commissioner finds that the product is being offered for sale in violation of this chapter. The order must direct the product be held at a designated place until released in writing by the commissioner. The owner or custodian of the product has the right to petition a court of competent jurisdiction in the county where the product is found for an order releasing the product for sale in accordance with the findings of the court.

4.1-34-09. Exemptions 🗎 PDF 

  1. The penalties provided for violations of section 4.1-34-02 do not apply to:
    1. A carrier while lawfully engaged in transporting a pesticide within this state, if the carrier, upon request, permits the commissioner to copy all records showing the transactions in and movement of the articles.
    2. A public official of this state or the federal government engaged in the performance of official duties.
    3. The manufacturer or shipper of a pesticide for experimental use only:
      1. By or under the supervision of an agency of this state or of the federal government authorized by law to conduct research in the field of pesticides; or
      2. By others if the pesticide is not sold and if the pesticide container is plainly and conspicuously marked "For experimental use only - Not to be sold", together with the manufacturer's name and address.
    4. A person using, distributing, selling, or offering for sale an unregistered pesticide for which the United States environmental protection agency has granted an emergency exemption for at least one use in North Dakota under section 18 of the federal Act.
  2. An article may not be deemed in violation of this chapter when intended solely for export to a foreign country and when prepared or packed according to the specifications or directions of the purchaser. If not so exported, all the provisions of this chapter apply.

4.1-34-10. Minimum-risk pesticide exemption 🗎 PDF 

  1. Section 4.1-34-02 does not apply to any person who distributes, sells, or offers for sale within this state or delivers for transportation or transports in intrastate commerce or between points within this state through any point outside this state a minimum-risk pesticide exempt from registration under the federal Act, provided the person has obtained a certificate of exemption from the commissioner.
  2. To obtain a certificate of exemption for a minimum-risk pesticide, a person shall file an application with the commissioner. The application must include:
    1. The name and address of the product's manufacturer or distributor;
    2. The name and brand name of the product;
    3. A current label for the product; and
    4. A fee equal in amount to the fee set under section 4.1-34-03 for the registration of a pesticide.
  3. The commissioner shall remit any fees collected under this section to the state treasurer for deposit in the environment and rangeland protection fund.
  4. Each exemption from registration covers a designated two-year period beginning January first of each even-numbered year and expiring December thirty-first of the following year.

4.1-34-11. Penalties 🗎 PDF 

Any person violating this chapter is guilty of an infraction. If a registrant was issued a warning by the commissioner under this chapter, upon violating this chapter, other than subdivision a of subsection 1 of section 4.1-34-02, that registrant is guilty of a class A misdemeanor and the registration of the article with which the violation occurred automatically terminates. A pesticide for which the registration has been terminated may not again be registered unless the pesticide, its labeling, and other material required to be submitted appear to the commissioner to comply with the requirements of this chapter. In addition to any criminal penalty, a person found guilty of violating this chapter or the rules adopted under this chapter is subject to a civil penalty not to exceed one thousand dollars for each violation. The civil penalty may be imposed by a court in a civil proceeding or by the commissioner through an administrative hearing under chapter 28-32.

4.1-34-12. Seizures 🗎 PDF 

  1. Any pesticide or device that is distributed, sold, or offered for sale within this state or delivered for transportation or transported in intrastate commerce or between points within this state through any point outside this state is liable to be proceeded against in any proper court of jurisdiction in any county of the state where it may be found and seized for confiscation by process of libel for condemnation:
    1. In the case of a pesticide:
      1. If it is adulterated or misbranded;
      2. If it has not been registered under section 4.1-34-03;
      3. If it fails to bear on its label the information required by this chapter; or
      4. If it is a white powder pesticide and is not colored as required under this chapter.
    2. In the case of a device, if it is misbranded.
  2. If the pesticide is condemned, after entry of decree, the pesticide must be disposed of by destruction or sale as the court may direct and any proceeds, less legal costs, must be paid to the state treasurer. The pesticide may not be sold contrary to the provisions of this chapter. Upon payment of cost and execution and delivery of a good and sufficient bond conditioned that the pesticide may not be disposed of unlawfully, the court may direct the pesticide be delivered to its owner for relabeling or reprocessing. When a decree of condemnation is entered against the pesticide, court costs and fees and storage and other proper expenses must be awarded against any person intervening as claimant of the pesticide.

4.1-34-13. Cooperation 🗎 PDF 

The commissioner may cooperate and enter agreements with any other agency of this state or of the federal government or any other state or agency thereof for the purpose of carrying out this chapter and securing uniformity of regulations.

4.1-34-14. Experimental use permits 🗎 PDF 

If the state is authorized by the administrator of the United States environmental protection agency to issue experimental use permits, the commissioner may:
  1. Issue an experimental use permit to an applicant if the commissioner determines that the applicant requires the permit to accumulate information necessary to register a pesticide use. An application for an experimental use permit may be filed when an application for registration is filed or before or after filing the application.
  2. Prescribe terms, conditions, and the period of time for use under the experimental use permit.
  3. Revoke an experimental use permit if the commissioner finds the permit's terms or conditions are being violated or that the permit's terms and conditions are inadequate to avoid unreasonable adverse effects to human health or the environment.

4.1-34-15. Minimum-risk pesticide - Certificate of exemption 🗎 PDF 

  1. Section 4.1-34-02 does not apply to any person who distributes, sells, or offers for sale within this state or delivers for transportation or transports in intrastate commerce or between points within this state through any point outside this state a minimum-risk pesticide exempt from registration under the federal Act, provided the person has obtained a certificate of exemption from the commissioner.
  2. To obtain a certificate of exemption for a minimum-risk pesticide, a person shall file an application with the commissioner. The application must include:
    1. The name and address of the product's manufacturer or distributor;
    2. The name and brand name of the product;
    3. A current label for the product; and
    4. A fee equal in amount to the fee set under section 4.1-34-03 for the registration of a pesticide.
  3. The commissioner shall remit any fees collected under this section to the state treasurer for deposit in the environment and rangeland protection fund.
  4. Each exemption from registration covers a designated two-year period beginning January first of each even-numbered year and expiring December thirty-first of the following year.

Chapter 35 — Chemigation Regulation

4.1-35-01. Definitions 🗎 PDF 

As used in this chapter:
  1. "Chemigation" means any process by which chemicals, including pesticides and fertilizers, are applied to land or crops through an irrigation system.
  2. "Commissioner" means the agriculture commissioner and includes any employee or agent designated by the commissioner.
  3. "Fertilizer" means any fertilizer as defined by section 4.1-40-01.
  4. "Pesticide" means that term defined in section 4.1-33-01.

4.1-35-02. Compliance with rules 🗎 PDF 

Farm irrigation systems used for chemigation which are designed, constructed, and operated in compliance with rules adopted under this chapter are considered to be in compliance with this chapter.

4.1-35-03. Rules - Standards for chemigation, installation, maintenance, and modifications 🗎 PDF 

The commissioner shall adopt rules regulating chemigation through irrigation systems in this state to minimize the possibility of chemical, pesticide, fertilizer, or other contamination of irrigation water supply and other rules as necessary to implement this chapter. The commissioner may establish by rule standards for application of pesticides and fertilizers through irrigation systems; for installation and maintenance of all equipment and devices used for chemigation purposes; modifications or changes in design, technology, or irrigation practices; or other purposes relating to the use or placement of equipment or devices. The commissioner may adopt rules requiring periodic calibration and inspection of equipment and system operation during periods of chemigation.

4.1-35-04. Inspections - Assistance of department of water resources 🗎 PDF 

The department of water resources shall cooperate with the commissioner in the inspection of any irrigation system using chemigation. The department shall inform the commissioner of any violation of this chapter which is discovered in the course of the department's regular inspections of irrigation systems using chemigation.

4.1-35-05. Enforcement 🗎 PDF 

  1. The commissioner shall enforce this chapter and any rules adopted under this chapter.
  2. The commissioner may seek an injunction in the district court in the county in which a violation occurs or may issue a cease and desist order to any person for any alleged violation of this chapter or any rules adopted under this chapter.
  3. For the purpose of carrying out the provisions of this chapter, the commissioner and the department of water resources may enter upon any public or private premises at reasonable times in order to:
    1. Have access for the purpose of inspecting any equipment subject to this chapter and the premises on which the equipment is stored or used.
    2. Inspect or sample lands actually, or reported to be, exposed to pesticides or fertilizers through chemigation.
    3. Inspect storage or disposal areas.
    4. Inspect or investigate complaints of injury to humans or animals.
    5. Sample pesticides and fertilizers and pesticide or fertilizer mixes being applied or to be applied.
    6. Observe the use and application of a pesticide or fertilizer through chemigation.
    7. Have access for the purpose of inspecting a premise or other place where equipment or devices used for chemigation are held for distribution, sale, or use.

4.1-35-06. Penalties 🗎 PDF 

  1. Any person who violates a provision of this chapter or any rule adopted under this chapter is guilty of a class A misdemeanor.
  2. When construing and enforcing the provisions of this chapter or any rules adopted under this chapter, the act, omission, or failure of any officer, agent, or other person acting for or employed by any person must in every case also be deemed to be the act, omission, or failure of such person as well as that of the person employed.
  3. Any person found to have violated a provision of this chapter or rule adopted under this chapter is subject to a civil penalty not to exceed five thousand dollars for each violation. The civil penalty may be imposed by a court in a civil proceeding or by the commissioner through an administrative hearing under chapter 28-32.

Chapter 36 — Pesticide And Pesticide Container Disposal Program

4.1-36-01. Pesticide and pesticide container disposal program - Pesticide container management - Compensation 🗎 PDF 

  1. The definitions contained in section 4.1-33-01 apply to this chapter.
  2. In consultation with an advisory board consisting of the state health officer and director of the North Dakota state university extension service, two individuals selected by the agriculture commissioner representing agribusiness organizations, and two individuals selected by the agriculture commissioner representing farm organizations, the commissioner shall continue to implement project safe send. The purpose of the project is to:
    1. Collect and either recycle or dispose of unusable pesticides and unusable pesticide containers. The commissioner shall provide for the establishment and operation of temporary collection sites for the pesticides and pesticide containers. The commissioner may limit the type and quantity of pesticides and pesticide containers acceptable for collection.
    2. Promote proper pesticide container management. In consultation with the director of the North Dakota state university extension service, the commissioner shall evaluate and promote proper methods of pesticide container management, including information on the variety of pesticide containers available.
  3. Any entity collecting pesticide containers or unusable pesticides shall manage and dispose of the containers and pesticides in compliance with applicable federal and state requirements. When called upon, any state agency shall assist the commissioner in implementing the project.
  4. For services rendered in connection with the design and implementation of this project, the advisory board members selected by the commissioner are entitled to reimbursement for mileage and travel expenses in the same manner and for the same amounts provided for state employees and officials. Compensation and expense reimbursement must be paid from the environment and rangeland protection fund.

4.1-36-02. Project scope and evaluation 🗎 PDF 

The project described in section 4.1-36-01 must occur in areas to be determined by the agriculture commissioner in consultation with the advisory board described in section 4.1-36-01.

4.1-36-03. Project safe send pesticide and pesticide container collection - User fees 🗎 PDF 

The agriculture commissioner, in consultation with the advisory board for the project safe send pesticide and pesticide container disposal program, may charge a fee for collection of rinsate. The fees must be established at a level that will generate enough revenue to cover the cost of disposal associated with the rinsate that is collected. Collections from this fee must be deposited in the environment and rangeland protection fund.

4.1-36-04. Report on pesticide container disposal program 🗎 PDF 

The agriculture commissioner shall submit a biennial report to a joint meeting of the house of representatives and senate agriculture committees on the status of the pesticide container disposal program.

Chapter 37 — Anhydrous Ammonia Facilities

4.1-37-01. Anhydrous ammonia safety rules 🗎 PDF 

The agriculture commissioner shall adopt rules necessary to implement this chapter and adopt the 2014 American national standard safety requirements for the storage and handling of anhydrous ammonia. The commissioner may adopt rules that deviate from the 2014 American national standard safety requirements if certain provisions of the standard impose undue hardship or if literal adherence to the provisions fails to provide adequate safety.

4.1-37-02. Definitions 🗎 PDF 

As used in this chapter, unless the context otherwise requires:
  1. "Anhydrous ammonia storage facility" means a bulk anhydrous ammonia storage facility with a capacity exceeding six thousand gallons [22712.47 liters] which is owned or operated by a user or vendor of anhydrous ammonia.
  2. "Mobile storage container" means a United States department of transportation class MC-331 cargo tank, or an American society of mechanical engineers code constructed and national board registered mobile storage container, approved by the United States department of transportation, used for the temporary storage of anhydrous ammonia to be downloaded into a nurse tank.

4.1-37-03. License required - Anhydrous ammonia facilities and mobile storage container 🗎 PDF 

  1. The owner or operator of an anhydrous ammonia storage facility or a mobile storage container shall apply to the agriculture commissioner for a license to site and operate the facility or mobile storage container. Neither an anhydrous ammonia storage facility nor mobile storage container may be operated without a license issued by the agriculture commissioner.
  2. Any permanent anhydrous ammonia storage facility constructed before July 1, 1985, is exempt from the siting requirements of this chapter and may receive a license under this chapter regardless of noncompliance with the siting requirements.
  3. The commissioner may deny a license for:
    1. Failure to remit the proper fee;
    2. Failure to comply with the siting requirements of this chapter and rules adopted under this chapter if constructed after June 30, 1985; or
    3. The facility failing to meet the initial inspection standards required by this chapter and any rules adopted under this chapter.
  4. To obtain a license, an applicant shall submit with the application drawings or photographs showing, and a signed affidavit stating, the facility or mobile downloading site has been measured and meets the siting requirements. The drawings or photographs must show the proposed location of the tank and the surroundings in all directions.
  5. An applicant for a mobile storage container license also shall submit a certification from the United States department of transportation.
  6. The agriculture commissioner shall provide the board of county commissioners, of the county in which the facility is located, a written notification of intent to issue a storage facility operator's license for a new proposed facility. The written notification must include copies of the submitted application materials. Upon receipt of the notification, the county has forty-five days to request an allowance for a local zoning review. If a local zoning review is requested, the agriculture commissioner shall allow the county sixty days to complete the review and give written approval. If the county fails to respond within the specified time frame the agriculture commissioner may issue a license. If the county applies additional zoning requirements, the agriculture commissioner may require compliance with local ordinance before issuing a license.

4.1-37-04. State license fee 🗎 PDF 

The agriculture commissioner shall charge a one-time twenty-five dollar fee for a private anhydrous ammonia storage facility or a mobile storage container license, and a one-time one hundred dollar fee for a retail anhydrous ammonia storage facility or a mobile storage container license. Expansion of an existing anhydrous ammonia storage facility does not require reapplication for licensing, but all siting requirements must be met. The license is valid indefinitely but may not be transferred. A new license is required when an anhydrous ammonia storage facility changes ownership. If a storage facility changes ownership, the agriculture commissioner shall provide a written notification to the county when the commissioner issues a license to the new owner.

4.1-37-05. State siting requirements - Anhydrous ammonia storage facilities constructed after June 30, 1985 🗎 PDF 

For facilities constructed after June 30, 1985:
  1. Any anhydrous ammonia storage facility with a container nominal capacity of less than one hundred thousand gallons [378541.2 liters] must be located at least:
    1. Fifty feet [15.24 meters] from the line of any adjoining property, which may be built upon, or any highway or railroad mainline.
    2. Four hundred fifty feet [137.16 meters] from any place of public assembly or residence, other than the company's business office.
    3. Seven hundred fifty feet [213.36 meters] from any institutional residence.
  2. Any anhydrous ammonia storage facility with container nominal capacity of one hundred thousand gallons [378541.2 liters] or more must be located at least:
    1. Fifty feet [15.24 meters] from the property line of adjoining property, which may be built upon, or any highway or railroad mainline.
    2. Six hundred feet [182.88 meters] from any place of public assembly or residence, other than the company's business office.
    3. One thousand feet [300.48 meters] from any institutional residence.
  3. Upon relocation of any permanent storage container to an anhydrous ammonia storage facility, the container must be hydrostatically pressure tested at the maximum allowable working pressure of the vessel, wet fluorescent magnetic particle tested, also referred to as black light tested, or any other acceptable testing method as determined by the agriculture commissioner. Before the container may be put into service and before licensing may occur, proof of testing must be supplied to the board of county commissioners and the agriculture commissioner.
  4. All valves and other appurtenances to any anhydrous ammonia storage facility must be protected against physical damage. All shutoff valves must be kept closed and locked when not in use and when the facility is unattended.
  5. Any anhydrous ammonia storage facility relocated or constructed after August 1, 1995, may not be located within city limits, unless approved by the city.

4.1-37-06. Transfer hose requirements 🗎 PDF 

  1. Any transfer hose utilized at an anhydrous ammonia storage facility:
    1. Which is a liquid transfer hose and is not drained of liquid upon completion of transfer operations must be equipped with an approved shutoff valve at the discharge end.
    2. Must have a hydrostatic relief valve or equivalent must be installed in each section of hose or pipe in which liquid ammonia can be isolated between shutoff valves to relieve the pressure that could develop from the trapped liquid. If an equivalent pressure relief device is used, the maximum accumulated pressure possible within the system may not exceed the limits of the system. A hydrostatic relief valve must be installed between each pair of valves in which liquid is trapped. The start-to-discharge pressure setting of the relief valve must not be less than three hundred fifty pounds per square inch [2413.18 kilopascals] gauge nor more than four hundred pounds per square inch [2757.92 kilopascals] gauge.
    3. Must have etched, cast, or impressed on the outer coating all of the following:
      1. The words "ANHYDROUS AMMONIA".
      2. The maximum working pressure of the transfer hose.
      3. The name of the manufacturer of the hose.
      4. The date of manufacture or the expiration date of the hose.
    4. Which is cut, scraped, cracked, or weathered so that the inner white cord is visible must be replaced. A transfer hose with an expiration date printed on the hose must be replaced prior to that date. Transfer hoses without an expiration date must be replaced as follows:
      1. Rayon hoses must be replaced within two years of the date of manufacture.
      2. Nylon hoses must be replaced within four years of the date of manufacture.
      3. Steel-reinforced hoses must be replaced within six years of the date of manufacture.
  2. Notwithstanding the replacement dates determined under subdivision d of subsection 1 for transfer hoses with or without an expiration date, an additional year must be allowed for replacement of transfer hoses in order to take into account delays in the original installation of transfer hoses.

4.1-37-07. Pressure relief devices 🗎 PDF 

Bulk storage containers constructed according to the American society of mechanical engineers code, and all nurse tanks, must be equipped with pressure relief valves constructed according to the American society of mechanical engineers code and capacity certified by the national board of boiler and pressure vessel inspectors. A pressure relief valve using nonmetallic seats must be replaced every five years with a new valve meeting the standards specified in this section. A pressure relief valve using metallic seats must be tested, and repaired if deemed necessary, every five years in lieu of replacement. Repairs deemed necessary must be made by the valve manufacturer or by a safety valve repair organization having a valid "VR" certificate of authorization for the repairs from the national board of boiler and pressure vessel inspectors.

4.1-37-08. Inspection 🗎 PDF 

  1. The agriculture commissioner shall develop and implement an initial and periodic inspection program for anhydrous ammonia storage facilities.
  2. The agriculture commissioner shall inspect each anhydrous ammonia storage facility at least once every five years and may inspect any implement of husbandry designed to apply anhydrous ammonia which is in the vicinity of an anhydrous ammonia storage facility.
  3. The agriculture commissioner may inspect any anhydrous ammonia storage facility if the commissioner has reason to believe violations of safety standards exist.
  4. The agriculture commissioner may revoke or suspend the license of any anhydrous ammonia storage facility for a violation of this chapter or the rules adopted under this chapter. The commissioner may order the discontinuance of use of any implement of husbandry designed to apply anhydrous ammonia which is found unsafe or hazardous.

4.1-37-09. Reinstalled and secondhand anhydrous ammonia storage containers - Requirement 🗎 PDF 

  1. A person intending to store anhydrous ammonia in a reinstalled or secondhand container, including a nurse tank, shall furnish the agriculture commissioner with:
    1. Evidence that the container is registered with the national board of boiler and pressure vessel inspectors; or
    2. The manufacturer's data report for the container.
  2. Subsection 1 is only applicable to the owner of an anhydrous ammonia storage container installed in this state before November 1, 1987, if the storage container is reinstalled at another location.

4.1-37-10. Use of fees - Safety promotion - Administration - Inspections 🗎 PDF 

All fees collected under this chapter must be used by the agriculture commissioner to promote safety in anhydrous ammonia use and storage, administer the program, and inspect facilities.

4.1-37-11. Prohibitions 🗎 PDF 

The following actions are prohibited:
  1. Filling a nurse tank directly from a railcar;
  2. Filling or using a nurse tank that has an outdated hose;
  3. Filling or using a nurse tank that has outdated relief valves;
  4. Towing more than two nurse tanks on a public road;
  5. Filling department of transportation transport containers not meeting the requirements of the department of transportation;
  6. Filling anhydrous ammonia storage containers not meeting the requirements of this chapter;
  7. Filling a storage container or nurse tank while unattended;
  8. Making repairs or additions of appurtenances directly to pressurized storage containers or nurse tanks by any individual not authorized under rules adopted by the commissioner;
  9. Painting or obscuring the American society of mechanical engineers data plates on storage containers or nurse tanks;
  10. Painting hydrostatic safety and safety relief valves on storage containers or nurse tanks;
  11. Filling nonrefrigerated storage containers or nurse tanks beyond the filling densities permitted by the American national standards institute K61.1, section 5.9.1; and
  12. Using the American society for testing and materials A-53 type f piping for anhydrous ammonia piping systems.

4.1-37-12. Anhydrous ammonia - Bulk delivery 🗎 PDF 

Upon obtaining a commercial driver's license with an endorsement for hazardous materials, an individual may transport anhydrous ammonia in a bulk delivery vehicle and fill nurse tanks with anhydrous ammonia from the bulk delivery vehicle.

4.1-37-13. Hydrostatic test procedures 🗎 PDF 

Any hydrostatic test conducted under section 4.1-37-05 must comply with the requirements of the national board inspection code (ANSI-NB 23) and be conducted in a manner approved by the agriculture commissioner.

4.1-37-14. Wet fluorescent magnetic particle test procedures 🗎 PDF 

Any wet fluorescent magnetic particle test of a pressure vessel weld conducted under section 4.1-37-05 must comply with the requirements of the society for nondestructive testing SNT-TC-1A standard and must be conducted by a person certified as a level II technician by the society.

4.1-37-15. Enforcement 🗎 PDF 

  1. The agriculture commissioner shall enforce the requirements of this chapter and any rules issued under it.
  2. The commissioner may bring an action to enjoin the violation or threatened violation of this chapter, or any rule issued pursuant to this chapter, in the district court of the county in which the violation occurs or may occur.
  3. The agriculture commissioner may issue a cease and desist order to any person allegedly violating this chapter. If any person violates the cease and desist order, the commissioner shall file the appropriate criminal complaint.
  4. The agriculture commissioner may enter upon any public or private premises at reasonable times to:
    1. Inspect any equipment subject to this chapter and the premises on which the equipment is stored or used;
    2. Inspect or investigate complaints; or
    3. Inspect any premises or other place where anhydrous ammonia or related devices are held for distribution, sale, or use.
  5. If a civil penalty is imposed under section 4.1-37-16 by the agriculture commissioner through an administrative hearing and the civil penalty is not paid, the commissioner may initiate a civil action in any appropriate court. Additionally, the commissioner may suspend or revoke a license issued under this chapter for failure to pay a civil penalty within thirty days after a final determination is made.

4.1-37-16. Penalty 🗎 PDF 

  1. Any person violating this chapter is guilty of a class A misdemeanor.
  2. When construing and enforcing this chapter, the act, omission, or failure of any officer, agent, or other person acting for or employed by any person is deemed to be the act, omission, or failure of the person as well as that of the person employed.
  3. In addition to the criminal sanctions that may be imposed, a person found guilty of violating this chapter or the rules adopted under this chapter is subject to a civil penalty not to exceed five thousand dollars for each violation. The civil penalty may be imposed by a court in a civil proceeding or by the agriculture commissioner through an administrative hearing.

Chapter 38 — Anhydrous Ammonia Risk Management

4.1-38-01. Risk management program - Anhydrous ammonia 🗎 PDF 

To determine compliance with the risk management program requirements set forth in section 112 of the Clean Air Act of 1990 [42 U.S.C. 7401 et seq.], as amended through June 30, 2011, the agriculture commissioner may:
  1. Request information from any person that:
    1. Sells, stores, or handles anhydrous ammonia for agricultural purposes; and
    2. Is required to comply with the risk management program requirements;
  2. Conduct inspections of any person that:
    1. Sells, stores, or handles anhydrous ammonia for agricultural purposes; and
    2. Is required to comply with the risk management program requirements; and
  3. Obtain and review risk management plans required under 40 Code of Federal Regulations, part 68, as amended through June 30, 2011, and other records applicable to any person that:
    1. Sells, stores, or handles anhydrous ammonia for agricultural purposes; and
    2. Is required to comply with the risk management program requirements.

4.1-38-02. Risk management program - Enforcement authority 🗎 PDF 

If the agriculture commissioner determines there is noncompliance on the part of any person that sells, stores, or handles anhydrous ammonia for agricultural purposes and that is required to comply with the risk management program requirements referenced in section 4.1-38-01, the agriculture commissioner may:
  1. Bring an action to enjoin a violation or a threatened violation;
  2. Issue a cease and desist order; and
  3. Impose a civil penalty through an administrative hearing in an amount not exceeding ten thousand dollars per day for each violation.

Chapter 39 — Crop Protection Products

4.1-39-01. Crop protection product harmonization and registration board - Recovery of funds 🗎 PDF 

The crop protection product harmonization and registration board may accept funds for expenses paid relating to the registration of pesticides or donations offered to or for the benefit of the board. All moneys received under this section must be deposited in the minor use pesticide fund to pay expenses relating to the registration of pesticides or for the specific purpose for which they are given. Whenever possible, the board shall attempt to recover funds expended relating to the registration of pesticide. The board shall adopt rules to administer this section.

4.1-39-02. Crop protection product harmonization and registration board - Membership - Duties - Grants 🗎 PDF 

  1. The crop protection product harmonization and registration board consists of:
    1. The governor or the governor's designee;
    2. The agriculture commissioner or the commissioner's designee;
    3. The chairman of the house agriculture committee or the chairman's designee;
    4. The chairman of the senate agriculture committee or the chairman's designee;
    5. A member of the house or senate agriculture committee who is not a member of the faction in which the committee chairman is a member, appointed by the legislative management chairman;
    6. A crop protection product dealer in the state appointed by the governor from a list of three nominees submitted by the North Dakota agricultural association;
    7. A consumer of crop protection products appointed by the governor from a list of three nominees submitted by the North Dakota grain growers association;
    8. A consumer of crop protection products appointed by the governor from a list of three nominees submitted by the North Dakota oilseed council;
    9. A representative of the crop protection product manufacturing industry appointed by the chairman of the legislative management; and
    10. The director of the North Dakota state university agricultural experiment station.
  2. The director of the agricultural experiment station shall serve as a nonvoting member. The governor or the governor's designee shall serve as chairman of the board.
  3. The board shall:
    1. Identify and prioritize crop protection product labeling needs;
    2. Explore the extent of authority given to this state under the Federal Insecticide, Fungicide, and Rodenticide Act [7 U.S.C. 136a];
    3. Identify the data necessary to enable registration of a use to occur in a timely manner;
    4. Determine necessary research to fulfill the data requirements for activities listed in this section;
    5. Request the agriculture commissioner to pursue specific research funding options from public and private sources;
    6. Request the North Dakota state university agricultural experiment station to pursue specific research to coordinate registration efforts; and
    7. Pursue opportunities to make more crop protection product options available to state agricultural producers through any means the board determines advisable.
  4. The board may contract with a consultant to provide studies, research, or information regarding crop protection product registration and labeling needs.
  5. The board may administer a grant program through which agriculture commodity groups may apply for funds to be used to address issues related to the registration of crop protection products. To be eligible for a grant, an applicant must submit an application to the board requesting a specific amount of funds, specifying the exact purposes for which the grant would be used, and providing a detailed timetable for the use of the grant funds. The board may impose any additional conditions it determines appropriate for grant recipients, including requiring periodic reports and furnishing of matching funds. The board may terminate funding of a previously approved grant at any time if the board is dissatisfied with the performance of the grant recipient.
  6. The board may use not more than fifteen percent of the funds under its supervision for administrative purposes, including the cost of contracting for administrative services and reimbursement of board member expenses. The members of the board who are members of the legislative assembly are entitled to compensation and expense reimbursement from the legislative council for attendance at board meetings at the rate provided for members of the legislative assembly for attendance at interim committee meetings.
  7. The board may adopt rules to implement this section.

4.1-39-03. Crop protection products - Canadian labels 🗎 PDF 

The agriculture commissioner, with the advice and consent of the appropriate agricultural commodity group, may authorize the sale and use in this state of a crop protection product that has a Canadian label, if the commissioner determines that a crop protection product having an American label contains substantially similar active ingredients and that the importation and use of the product with a Canadian label does not violate federal law. The commissioner shall require an applicator to possess the American label and apply the product in accordance with the American label provisions.

4.1-39-04. Special local needs exemption - Tolerances 🗎 PDF 

The agriculture commissioner, in cooperation with the environmental protection agency, shall use tolerance data established or obtained in North America in pursuing special local needs exemptions for crop protection products under the Federal Insecticide, Fungicide, and Rodenticide Act [7 U.S.C. 136 et seq.].

4.1-39-05. Crop protection products - Registration process - Joint labeling 🗎 PDF 

The governor and the agriculture commissioner shall work with all appropriate public and private entities to foster the development of a single, uniform process for the joint North American labeling of crop protection products not available for sale and use in this state as of April 19, 1999.

4.1-39-06. Crop protection products - Request to petition for registration 🗎 PDF 

On the written request of any agricultural commodity group, the agriculture commissioner shall petition the environmental protection agency for the American registration of a crop protection product approved for use in Canada.

4.1-39-07. Environment and rangeland protection fund 🗎 PDF 

The environment and rangeland protection fund is a special fund in the state treasury. The moneys in this fund may be used for rangeland improvement projects and to address issues relating to harmonization of crop protection product standards. The rangeland improvement projects may include noxious weed control; ground water testing, analysis, protection, and improvement; analysis of food products for residues of pesticides and other materials; and analysis and disposal of unusable pesticides and pesticide containers.

4.1-39-08. Minor use pesticide fund - Continuing appropriation 🗎 PDF 

The minor use pesticide fund is created as a special fund in the state treasury. All moneys in the fund are appropriated on a continuing basis to the crop protection product harmonization and registration board for the purpose of conducting or commissioning studies, investigations, and evaluations regarding the registration and use of pesticides for minor crops, minor uses, and other uses as determined by the board.

Chapter 40 — Fertilizer And Soil Conditioner

4.1-40-01. Definitions 🗎 PDF 

As used in this chapter:
  1. "Brand" means a term, design, or trademark, used in connection with one or several grades of fertilizer, fertilizer material, micronutrients, specialty fertilizer, soil amendments, or plant amendments.
  2. "Bulk" means in a nonpackaged form.
  3. "Compost" means a material derived primarily or entirely from biological decomposition of vegetative organic matter or animal manure that may have inorganic fertilizer added to promote decomposition.
  4. "Deficiency" means an amount of plant nutrient or active ingredient found by analysis to be less than the amount guaranteed, resulting from a lack of plant nutrient, active ingredients, or uniformity.
  5. "Distributor" means a person who imports, consigns, manufactures, produces, compounds, mixes, or blends or who sells or offers for sale fertilizer, fertilizer materials, micronutrients, specialty fertilizers, soil amendments, or plant amendments in this state.
  6. "End user" means a person who uses a fertilizer, fertilizer materials, micronutrients, specialty fertilizers, soil amendment, or plant amendment in a manner for which the product was intended.
  7. "Fertilizer" means any substance containing one or more recognized plant nutrients which is used for its plant nutrient content and which is designed for use or claimed to have value in promoting plant growth, except unmanipulated animal and vegetable manures, marl, lime, limestone, wood ashes, and other products excluded by rule of the commissioner.
  8. "Fertilizer material" means a fertilizer which:
    1. Contains no more than one of the primary plant nutrients;
    2. Has approximately eighty-five percent of its primary plant nutrient content present in the form of a single chemical compound; or
    3. Is derived from a plant or animal residue or byproduct or a natural material deposit and has been processed in such a way that its content of primary plant nutrients has not been materially changed except by purification or concentration.
  9. "Grade" means the percentages of total nitrogen, available phosphate, and soluble potassium or soluble potash stated in the same terms, order, and percentages as in the "guaranteed analysis".
  10. "Guaranteed analysis" means the minimum percentage of plant nutrients claimed.
  11. "Investigational allowance" means an allowance for variations inherent in the taking, preparation, and analysis of an official sample of fertilizer, soil amendment, or plant amendment.
  12. "Label" means all written, printed, or graphic materials upon or accompanying any fertilizer, fertilizer material, micronutrients, specialty fertilizer, soil amendment, or plant amendment and any printed material or media announcements used in promoting their sale.
  13. "Licensee" means a person licensed by the commissioner to distribute fertilizer, fertilizer material, micronutrients, specialty fertilizer, soil amendment, or plant amendment.
  14. "Manipulated" means to have manufactured, blended, or mixed fertilizers, fertilizer materials, micronutrients, specialty fertilizers, soil amendments, or plant amendments, or to have treated in any manner any animal or vegetable manures, including mechanical drying, grinding, pelleting, and other means, or by adding other chemicals or substances.
  15. "Micronutrient" means a fertilizer that contains only essential chemical elements that are required at low levels for normal plant growth.
  16. "Mobile mechanical unit" means any portable machine or apparatus used to blend, mix, or manufacture fertilizers, fertilizer material, micronutrients, specialty fertilizers, soil amendments, or plant amendments.
  17. "Official sample" means any sample of fertilizer, fertilizer material, micronutrients, specialty fertilizer, soil amendment, or plant amendment, taken and designated as "official" by the commissioner.
  18. "Organic" in reference to fertilizer nutrients, means only naturally occurring substances, generally recognized as the hydrogen compounds of carbon and their derivatives or synthetic products of similar composition with a water insoluble nitrogen content of at least sixty percent of the guaranteed total nitrogen.
  19. "Percent" or "percentage" means the percentage by weight.
  20. "Plant amendment" means a substance applied to plants or seeds which is intended to improve germination, growth, yield, product quality, reproduction, flavor, or other desirable characteristics of plants except fertilizers, unless the fertilizer is represented to contain, as an active ingredient, a substance other than a primary plant nutrient or micronutrient, or is represented as promoting plant growth by supplying something other than a primary plant nutrient or micronutrient.
  21. "Plant nutrient" means a substance generally recognized as beneficial for plant growth, including nitrogen, phosphorus, potassium, calcium, magnesium, sulfur, boron, chlorine, cobalt, copper, iron, manganese, molybdenum, sodium, and zinc.
  22. "Primary plant nutrients" means nitrogen, phosphate, and potash.
  23. "Registrant" means the person who registers fertilizers, soil amendments, or plant amendments under this chapter.
  24. "Sell" when applied to fertilizers, fertilizer material, micronutrients, specialty fertilizers, soil amendments, or plant amendments means:
    1. Transferring or offering to transfer ownership through a sale, exchange, gift, or distribution; or
    2. Receiving, accepting, holding, or possessing for sale, exchange, gift, or distribution.
  25. "Soil amendment" means any substance intended to improve the characteristics of the soil except unmanipulated animal or vegetable manures, pesticides, and fertilizers, unless the fertilizer is represented to contain, as an active ingredient, a substance other than a primary plant nutrient or micronutrient or is represented as promoting plant growth by supplying something other than a primary plant nutrient or micronutrient.
  26. "Specialty fertilizer" means a fertilizer distributed primarily for nonfarm use.
  27. "Ton" means a net weight of two thousand pounds avoirdupois [907.18 kilograms].

4.1-40-02. Product registration - Fees 🗎 PDF 

  1. Each brand and grade of fertilizer, fertilizer material, micronutrient, specialty fertilizer, soil amendment, and plant amendment must be registered in the name of the person whose name appears upon the label before being offered for sale or distributed in this state.
  2. The application for registration must be submitted to the commissioner on a form furnished by the commissioner and must be accompanied by:
    1. A current product label; and
    2. A fee of fifty dollars per product.
  3. Each brand and grade registration is effective for a two-year period beginning July first and ending June thirtieth of each even-numbered year.
  4. Any request for a registration renewal received after July thirty-first must be assessed a penalty of one hundred dollars per product.
    1. A distributor is not required to register any product listed in subsection 1 if that product is already registered by another person, providing the label complies with the issued registration.
    2. A distributor is not required to register a custom-blended fertilizer combination, blended to the customer's specification, if the fertilizer combination provided contains only products registered under subsection 1.
    3. Compost that is transferred between parties without compensation does not require registration.
  6. The agriculture commissioner shall forward all fees received under this section to the state treasurer for deposit in the environment and rangeland protection fund.

4.1-40-03. Distributor's license - Fees 🗎 PDF 

  1. A person may not distribute any fertilizer, fertilizer material, micronutrient, specialty fertilizer, soil amendment, or plant amendment in this state without first obtaining a distributor's license from the commissioner.
  2. A license is required for each location or mobile mechanical unit used by a distributor in the state.
  3. The application for a license must be submitted on a form furnished by the commissioner and must be accompanied by a fee of one hundred dollars.
  4. A license is effective for a two-year period beginning July first and ending June thirtieth of each even-numbered year.
  5. Any license renewal application received after July thirty-first must be assessed a penalty of one hundred dollars per location.
  6. Any license issued under this section:
    1. Is not transferable;
    2. Must be conspicuously posted at each location used by the distributor; and
    3. Must be carried in each mobile mechanical unit operated by the distributor in the state.
  7. The requirements of this section do not apply to persons that distribute only:
    1. Specialty fertilizers to end users; or
    2. Seed inoculants.
  8. The agriculture commissioner shall forward all fees received under this section to the state treasurer for deposit in the environment and rangeland protection fund.

4.1-40-04. Proof of effectiveness 🗎 PDF 

The commissioner may require proof of claims made for any product covered by this chapter and may require proof of value when used as directed or recommended. The commissioner must rely on data from scientifically designed and reported studies conducted under conditions similar to those in this state under which the product is intended to be used. The commissioner may accept or reject other sources of proof as supplemental evidence.

4.1-40-05. Guaranteed analysis 🗎 PDF 

  1. Guaranteed analysis must be claimed as follows:
    1. Total Nitrogen (N) _____ percent;
    2. Available Phosphate (P2O5) _____ percent; and
    3. Soluble Potash (KO) _____ percent. 2
  2. The total phosphate or degree of fineness, or both, may also be guaranteed, in the case of unacidulated mineral phosphatic materials and basic slag, bone, tankage, and other organic phosphatic materials.
  3. Rules implemented under this chapter may allow or require guarantees for plant nutrients other than nitrogen, phosphorus, and potassium.
    1. Guarantees under this subsection must be expressed in the form of the element.
    2. The commissioner may require that the sources of other nutrients, including oxides, salt, and chelates, be stated on the application for registration and included as a parenthetical statement on the label.
    3. Other beneficial substances or compounds, determinable by laboratory methods, may be guaranteed with permission of the commissioner after consultation with the director of the North Dakota state university extension service.
  4. Any guaranteed plant nutrients, other substances, or compounds are subject to inspection and analysis according to the methods and rules prescribed by the commissioner.
    1. The commissioner, by rule, may require potential basicity or acidity expressed in terms of calcium carbonate equivalent in multiples of one hundred pounds [45.36 kilograms] per ton [907.18 kilograms].
    2. The guaranteed analysis of a soil amendment or plant amendment must be an accurate statement of composition, including the percentages of each ingredient. If the product is a microbiological product, the number of viable micro-organisms per milliliter for a liquid or the number of viable micro-organisms per gram for a dry product must also be listed.

4.1-40-06. Label requirement 🗎 PDF 

Any fertilizer, fertilizer material, micronutrient, specialty fertilizer, soil amendment, or plant amendment distributed in this state must be labeled.
  1. If the product is in a container, the label must be plainly printed in English and conspicuously placed on or attached to the container. The label must include:
    1. The net weight of the product;
    2. The brand;
    3. The grade, unless no primary nutrients are claimed;
    4. The guaranteed analysis;
    5. The name and address of the registrant; and
    6. For soil or plant amendments, the purpose for which the product is used.
  2. If the product is distributed in bulk, a document providing the same information required in subsection 1 must accompany the delivery and be provided to the end user at the time of delivery.
  3. A fertilizer formulated according to specifications furnished by a consumer prior to mixing must be labeled to show the net weight, the guaranteed analysis or amount of each plant nutrient it contains in pounds [kilograms], and the name and address of the registrant.

4.1-40-07. Inspection fees - Tonnage reports - Penalty 🗎 PDF 

    1. An inspection fee of ten dollars or twenty cents per ton [907.18 kilograms], whichever is greater, must be paid to the commissioner on all fertilizer, fertilizer material, micronutrients, specialty fertilizer, soil amendments, and plant amendments distributed in this state.
    2. This subsection does not apply to:
      1. Exchanges of product between manufacturers and distributors; or
      2. Individual fertilizers, fertilizer material, micronutrients, specialty fertilizers, soil amendments, or plant amendments sold exclusively in packages of ten pounds [4.54 kilograms] or less.
    1. On or before January thirty-first, each licensed person who distributes a fertilizer, fertilizer material, micronutrient, specialty fertilizer, soil amendment, or plant amendment in this state shall:
      1. File with the commissioner a form stating the number of net tons [kilograms] of each listed product distributed in this state during the preceding calendar year; and
      2. Submit to the commissioner the inspection fee required by this section.
    2. If a person fails to submit an inspection fee, at the time and in the manner required by this section, the commissioner may impose a penalty of ten dollars or ten percent of the amount due, whichever is greater.
    3. The requirements of subdivisions a and b apply only to the last licensed person to handle the same lot of fertilizer.
  3. Each distributor shall keep all records regarding purchases and sales for a period of three years. The records may be examined by the commissioner upon request.
  4. The agriculture commissioner shall forward all fees received under this section to the state treasurer for deposit in the environment and rangeland protection fund.

4.1-40-08. Inspection, sampling, analysis 🗎 PDF 

  1. To determine compliance with this chapter and rules implemented under this chapter, the commissioner may enter real property during regular business hours and access any structure or personal property to sample, inspect, analyze, and test fertilizers, fertilizer material, micronutrients, specialty fertilizers, soil amendments, and plant amendments distributed in this state.
  2. The commissioner shall adopt methods of analysis and sampling from reputable sources such as the Journal of the AOAC International.
  3. A single package may constitute an official sample. In determining whether any fertilizer, fertilizer material, micronutrient, specialty fertilizer, soil amendment, or plant amendment is deficient, the commissioner shall only consider the analysis of the official sample.
  4. If the results of the commissioner's official analysis indicate that a fertilizer, fertilizer material, micronutrient, specialty fertilizer, soil amendment, or plant amendment may be the subject of a penalty or other legal action, the commissioner shall forward the analysis to the registrant at least ten days before the report is submitted to the purchaser. If during the ten-day period no adequate evidence to the contrary is made available to the commissioner by the registrant, the report becomes official.
  5. The commissioner shall retain any official samples found to be deficient for thirty days following the issuance of the analytical report.
  6. Upon request, the commissioner shall furnish to the registrant a portion of any sample found to be the subject of a penalty or other legal action.

4.1-40-09. Misbranding 🗎 PDF 

  1. A person may not distribute a misbranded fertilizer, fertilizer material, micronutrient, specialty fertilizer, soil amendment, or plant amendment.
  2. A fertilizer, fertilizer material, micronutrient, specialty fertilizer, soil amendment, or plant amendment is misbranded if:
    1. False or misleading statements concerning the product are disseminated in any manner or by any means;
    2. The product label carries a false or misleading statement;
    3. The product is distributed under the name of another product;
    4. The product is not labeled as required by this chapter or rules implemented under this chapter; or
    5. The product is inaccurately represented as a fertilizer, or is inaccurately represented as containing a plant nutrient or fertilizer unless the plant nutrient or fertilizer conforms to the definition, if any, prescribed in rule by the commissioner.
  3. In adopting rules, the commissioner shall consider commonly accepted definitions and official fertilizer terms such as those issued by the association of American plant food control officials.

4.1-40-10. Publications 🗎 PDF 

The commissioner may publish:
  1. Information concerning the distribution of fertilizers, fertilizer material, micronutrients, specialty fertilizers, soil amendments, and plant amendments; and
  2. Results of analyses based on official samples of fertilizers, fertilizer material, micronutrients, specialty fertilizers, soil amendments, and plant amendments distributed within the state as compared with the analyses guaranteed under sections 4.1-40-05 and 4.1-40-06.

4.1-40-11. Rules 🗎 PDF 

The commissioner may adopt and enforce rules relating to investigational allowances, definitions, records, licensing, inspection, analysis, labeling, storage, and distribution of fertilizers, fertilizer material, micronutrients, specialty fertilizers, soil amendments, and plant amendments.

4.1-40-12. Deficiencies 🗎 PDF 

  1. A product is deficient if:
    1. One or more of its guaranteed primary plant nutrients falls below the investigational allowances and compensations established by rule;
    2. One or more other guaranteed active ingredients falls below the investigational allowances and compensations established by rule; or
    3. The overall index value of the fertilizer is shown below the level established by rule.
  2. A nonuniformity deficiency in an official sample of mixed fertilizer is not distinguishable from a deficiency due to actual plant nutrient shortage and is properly subject to official action.
  3. To determine the commercial index value to be applied, the commissioner shall determine at least annually the values per unit of nitrogen, available phosphate, and soluble potash in fertilizers in this state.
  4. Any fertilizer, fertilizer material, micronutrients, specialty fertilizer, soil amendment, or plant amendment in the possession of a consumer found by the commissioner to be short in weight, a penalty must be assessed to the registrant of the product. Within thirty days after official notice from the commissioner, the registrant of the product shall pay a penalty equal to four times the value of the actual shortage to the consumer.

4.1-40-13. Cancellation of registrations 🗎 PDF 

  1. The commissioner, upon compelling evidence that a registrant, licensee, or distributor used fraudulent or deceptive practices in the evasion or attempted evasion of this chapter or any implemented rule, may:
    1. Cancel the registration of any brand of fertilizer, fertilizer material, micronutrient, specialty fertilizer, soil amendment, or plant amendment;
    2. Cancel the license of any distributor;
    3. Refuse to register any brand of fertilizer, fertilizer material, micronutrient, specialty fertilizer, soil amendment, or plant amendment; or
    4. Refuse to license any distributor.
  2. The commissioner shall provide an opportunity for a hearing prior to refusing a registration or revoking a license.

4.1-40-14. Stop-sale orders 🗎 PDF 

The commissioner may issue a "stop-sale, use, or removal" order to the owner or custodian of any lot of fertilizer, fertilizer material, micronutrient, specialty fertilizer, soil amendment, or plant amendment, if the commissioner finds that the product is being offered for sale in violation of this chapter or any implemented rule. The order must remain in effect until the commissioner:
  1. Determines that the violation has been corrected;
  2. Gives written authorization for the disposal of the product; or
  3. Gives written authorization for the product to be offered for sale.

4.1-40-15. Seizure, condemnation, and sale 🗎 PDF 

  1. Any lot of fertilizer, fertilizer material, micronutrient, specialty fertilizer, soil amendment, or plant amendment, not in compliance with this chapter or implemented rules, is subject to seizure upon the filing of a complaint by the commissioner with the district court of the county in which the product is located.
  2. If the court finds the product to be in violation of this chapter or any implemented rule and orders its condemnation, the product must be disposed of in any manner consistent with the quality of the product and the laws of the state.
  3. Before ordering the disposition of a product, a court shall give the claimant an opportunity to apply for the release of the product or for permission to process or relabel the product to bring it into compliance with this chapter and implemented rules.

4.1-40-16. Violations - Criminal penalty 🗎 PDF 

  1. If evidence from the examination of any fertilizer, fertilizer material, micronutrient, specialty fertilizer, soil amendment, or plant amendment indicates this chapter or the implemented rules have been violated, the commissioner shall notify the registrant, licensee, manufacturer, distributor, or possessor from whom the sample was taken of the violation. Any person notified must be given an opportunity to be heard. After the hearing, either in the presence or absence of the person so notified, the commissioner may certify the facts to the proper prosecuting attorney if evidence exists this chapter or the implemented rules have been violated.
  2. Any person violating this chapter or the implemented rules or that impedes, obstructs, hinders, or otherwise prevents or attempts to prevent the commissioner in the performance of the commissioner's duty under this chapter is guilty of a class A misdemeanor.
  3. All prosecutions involving the composition of a lot of fertilizers, fertilizer material, micronutrients, specialty fertilizers, soil amendments, or plant amendments, require a certified copy of the official analysis signed by the person performing the analysis or that person's assigned agent. The certified and signed copy of the official analysis is prima facie evidence of the composition.
  4. The commissioner is not required to initiate prosecution or seizure proceedings for minor violations of the chapter if the commissioner believes the public interest will be best served by a suitable written warning.
  5. The commissioner may apply for and the court may grant a temporary or permanent injunction restraining any person from violating or continuing to violate this chapter or any implemented rule, notwithstanding the existence of other remedies at law. An injunction under this section must be issued without bond.

4.1-40-17. Violations - Civil penalty 🗎 PDF 

Any person that violates this chapter or an implemented rule is subject to a civil penalty in an amount up to two thousand five hundred dollars per violation. The civil penalty may be imposed by a court or by the agriculture commissioner in an administrative hearing.

4.1-40-18. Exchanges between manufacturers 🗎 PDF 

This chapter may not be construed to restrict or avoid sales or exchanges of fertilizers, fertilizer materials, micronutrients, specialty fertilizers, soil amendments, or plant amendments to each other by importers, manufacturers, or manipulators that mix fertilizers, fertilizer materials, micronutrients, specialty fertilizers, soil amendments, or plant amendments for sale or as preventing the free and unrestricted shipments of fertilizer, fertilizer materials, micronutrients, specialty fertilizers, soil amendments, or plant amendments to manufacturers or manipulators that have registered their brands as required by this chapter.

Chapter 40.1 — Biostimulant And Beneficial Substance Regulation

4.1-40.1-01. Definitions 🗎 PDF 

  1. "Beneficial substance" means a substance or compound, which includes a plant amendment, plant biostimulant, plant inoculant, soil amendment, soil inoculant, and other chemical or biological materials benefiting the growing environment of plants demonstrated by scientific research to be beneficial to one or more species of plants, soils, or media. The term does not include a primary, secondary, or microplant nutrient or pesticides.
  2. "Brand" means a term, designation, trademark, product name, or other specific designation under which an individual beneficial substance is offered for sale.
  3. "Bulk" means products in nonpackaged form.
  4. "Distribute" means to import, consign, manufacture, produce, compound, mix, or blend beneficial substances, or offer for sale, sell, barter, or otherwise supply beneficial substances in the state.
  5. "Distributor" means a person that imports, consigns, manufactures, produces, compounds, mixes, or blends beneficial substances, or offers for sale, sells, barters, or otherwise supplies beneficial substances in the state.
  6. "Label" means the display of all written, printed, or graphic matter upon the immediate container or statement accompanying a beneficial substance.
  7. "Labeling" means informational materials advertising the sale of a beneficial substance, which includes a written, printed, graphic, or electronic communication.
  8. "Official sample" means any sample of a beneficial substance taken by the commissioner or the commissioner's agent and designated as official by the commissioner.
  9. "Person" means an individual or organization.
  10. "Plant amendment" means a substance applied to a plant or seed intended to improve growth, yield, product quality, reproduction, flavor, or other favorable characteristics of plants. The term does not include fertilizers, soil amendments, agricultural liming materials, animal and vegetable manure, pesticides, plant regulators, and other materials which may be exempt by regulation.
  11. "Plant biostimulant" means a substance or micro-organism that, when applied to seeds, plants, the rhizosphere, soil, or other growth media, supports a plant's natural nutrition processes independently of the biostimulant's nutrient content, which ultimately improves nutrient availability, uptake, or use efficiency; tolerance to abiotic stress; and consequent growth, development, quality, or yield.
  12. "Plant inoculant" means a product consisting of micro-organisms applied to a plant or soil to enhance the availability or uptake of plant nutrients through the root system.
  13. "Registrant" means the person that registers the beneficial substance that bears the person's company name on the label and is the guarantor.
  14. "Soil amendment" means any substance or a mixture of substances which is intended to improve the physical, chemical, biochemical, biological, or other characteristic of the soil. The term does not include fertilizers, agricultural liming materials, unmanipulated animal manures, unmanipulated vegetable manures, pesticides, and other materials exempt by regulation.
  15. "Soil inoculant" means a microbial product applied to colonize soil to benefit soil chemistry, biology, or structure.

4.1-40.1-02. Required labeling 🗎 PDF 

  1. Except for materials exempt under this chapter, the label on a beneficial substance must contain in a readable and conspicuous form:
    1. The brand, including the product name;
    2. The net weight or net volume in both customary and metric measurements;
    3. The name and address of the guarantor, registrant, and manufacturer;
    4. A statement identifying the purpose of the product;
    5. The directions for use; and
    6. A statement of composition showing the amount of each ingredient under the heading "CONTAINS BENEFICIAL SUBSTANCES", which is the agent in a product primarily responsible for the intended effects, containing the:
      1. Name and percentage of each beneficial substance and the ingredient source if applicable;
      2. Genus and species of the micro-organism, if applicable; and
      3. Specific measurement of the colony forming unit or other acceptable unit.
  2. For a product claiming micro-organisms, the labels must include the:
    1. Information required under subsection 1;
    2. Expiration date for use; and
    3. Appropriate storage conditions and practices.
  3. If an ingredient not presently defined by the American association of plant food control officials in the United States is used in a beneficial substance, the label must include efficacy data to support beneficial substance ingredient claims.
  4. If a beneficial substance is part of a bulk shipment, the information provided under subsection 1 must accompany delivery and be supplied to the purchaser at the time of delivery.

4.1-40.1-03. Distributor's license - Fees 🗎 PDF 

  1. A person may not distribute a beneficial substance in this state without first obtaining a distributor's license from the commissioner.
  2. A license is required for each location or mobile mechanical unit used by a distributor in the state.
  3. The application for a license must be submitted on a form furnished by the commissioner and must be accompanied by a fee of one hundred dollars.
  4. A license is effective for a two-year period beginning July first and ending June thirtieth of each even-numbered year.
  5. A license renewal application received after July thirty-first must be assessed a penalty of one hundred dollars per location.
  6. A license issued under this section:
    1. Is not transferable;
    2. Must be conspicuously posted at each location used by the distributor; and
    3. Must be carried in each mobile mechanical unit operated by the distributor in the state.
  7. The commissioner shall forward all fees received under this section to the state treasurer for deposit in the environment and rangeland protection fund.

4.1-40.1-04. Product registration - Fees 🗎 PDF 

  1. Each brand of a beneficial substance must be registered in the name of the person appearing on the label before being offered for sale or distributed in this state.
  2. The application for registration must be submitted to the commissioner on a form furnished by the commissioner and must be accompanied by a:
    1. Current product label; and
    2. Fee of fifty dollars per product.
  3. Each brand registration is effective for a two-year period beginning July first and ending June thirtieth of each even-numbered year.
  4. A request for a registration renewal received after July thirty-first must be assessed a penalty of one hundred dollars per product.
  5. A distributor is not required to register a product listed in subsection 1 if that product is already registered by another person, provided the label complies with the issued registration.
  6. The commissioner shall forward all fees received under this section to the state treasurer for deposit in the environment and rangeland protection fund.

4.1-40.1-05. Inspection fee 🗎 PDF 

  1. An inspection fee of ten dollars or twenty cents per ton [907.18 kilograms], whichever is greater, must be paid to the commissioner on a beneficial substance distributed in this state.
  2. This subsection does not apply to:
    1. Exchanges of product between a manufacturer and distributor; or
    2. An individual beneficial substance sold exclusively in a package of ten pounds [4.54 kilograms] or less.
  3. On or before January thirty-first, each licensed person that distributes a beneficial substance in this state shall:
    1. File with the commissioner a form stating the number of net tons [kilograms] of each listed product distributed in this state during the preceding calendar year; and
    2. Submit to the commissioner the inspection fee required by this section.
  4. If a person fails to submit an inspection fee, at the time and in the manner required by this section, the commissioner may impose a penalty of ten dollars or ten percent of the amount due, whichever is greater. The requirements of subsection 3 apply only to the last licensed person to handle the same lot of a beneficial substance.
  5. Each distributor shall keep records regarding purchases and sales for three years. The records may be examined by the commissioner upon request.
  6. The commissioner shall forward all fees received under this section to the state treasurer for deposit in the environment and rangeland protection fund.

4.1-40.1-06. Exemptions 🗎 PDF 

  1. When clearly and conspicuously identified on a label, soil amending materials under this subsection are exempt, which include:
    1. Hay;
    2. Straw;
    3. Peat;
    4. Leaf mold;
    5. Sand;
    6. Perlite;
    7. Vermiculite;
    8. Gypsum; and
    9. Vermicompost.
  2. Instead of a statement of composition as required in this chapter, the label of the following soil amendments when clearly and conspicuously identified on the label must include an ingredient statement, unless specific beneficial substance claims are made:
    1. Compost;
    2. Garden soil;
    3. Landscaping soil or topsoil;
    4. Mulch or wood products;
    5. Planting mix;
    6. Potting mix; and
    7. Soilless growing media.
  3. The commissioner may exempt soil amendments and other products under this chapter.

4.1-40.1-07. Cancellation of registration 🗎 PDF 

  1. The commissioner may cancel the registration of any beneficial substance product or refuse to register any beneficial substance product as provided in this chapter due to:
    1. An incomplete or insufficient registration application;
    2. The misbranding or adulteration of a beneficial substance; or
    3. A violation of this chapter or rules adopted under this chapter.
  2. If the commissioner cancels or refuses to renew an existing registration due to the misbranding or adulteration of a beneficial substance or due to a violation of this chapter or a rule adopted under this chapter, the registrant or applicant may request a hearing.

4.1-40.1-08. Inspection, sampling, and analysis 🗎 PDF 

  1. The commissioner may act through an authorized agent to sample, inspect, make analyses of, and test beneficial substances distributed within the state when it is necessary to determine if a beneficial substance complies within the provisions of this chapter. The commissioner may enter into or upon any point of distribution during operating hours upon notice and open and sample any bulk material, bundle, package, or other container containing or thought to contain a beneficial substance, and to inspect labels or access records pertaining to the distribution of the beneficial substance.
  2. The methods of analysis and sampling must be methods approved by the commissioner, including methods adopted by the journal of the association of agricultural chemists international.
  3. A single package may constitute an official sample. In determining whether a beneficial substance is deficient, the commissioner may consider only the analysis of the official sample.
  4. If the results of the commissioner's official analysis indicate a beneficial substance may be the subject of a penalty or other legal action, the commissioner shall forward the analysis to the registrant at least ten days before the report is submitted to the purchaser. If during the ten-day period, no adequate evidence to the contrary is made available to the commissioner by the registrant, the report becomes official.
  5. The commissioner shall retain an official sample found to be deficient for thirty days following the issuance of the analytical report.
  6. Upon request, the commissioner shall furnish to the registrant a portion of a sample found to be the subject of a penalty or other legal action.

4.1-40.1-09. Unlawful acts 🗎 PDF 

It is unlawful for a person to:
  1. Distribute an unregistered beneficial substance, unless exempt from the registration requirements of this section;
  2. Distribute a misbranded or adulterated beneficial substance;
  3. Distribute a beneficial substance if the label does not reflect its composition;
  4. Distribute a product as a beneficial substance if the sole function is to serve as a pesticide;
  5. Fail to supply the commissioner with an analysis of a beneficial substance when requested by the commissioner or the commissioner's designee;
  6. Fail to disclose on the label sources of potentially deleterious components;
  7. Fail to cease distribution of any beneficial substance for which the commissioner has issued a stop sale order; or
  8. Obstruct the commissioner in the performance of the duties under this chapter.

4.1-40.1-10. Misbranding of beneficial substance prohibited 🗎 PDF 

A person may not distribute a misbranded beneficial substance. A beneficial substance is deemed to be misbranded if the:
  1. Labeling is false or misleading;
  2. Beneficial substance is distributed under the name of another beneficial substance; and
  3. Beneficial substance is not labeled as required by this chapter or in accordance with regulations prescribed under this chapter.

4.1-40.1-11. Adulteration of a beneficial substance prohibited 🗎 PDF 

A person may not distribute an adulterated beneficial substance. A beneficial substance is deemed to be adulterated if the beneficial substance:
  1. Contains any deleterious or harmful substance in sufficient amount to render it injurious to beneficial plant life, animals, humans, aquatic life, soil, or water when applied in accordance with directions for use on the label;
  2. Does not provide on the label of the substance adequate warning statements and directions for use, which may be necessary to protect plant life, animals, humans, aquatic life, soil, or water;
  3. Composition falls below or differs from that which it is purported to possess by its label or any labeling which describes the composition of the beneficial substance; or
  4. Contains unwanted crop or weed seed, or primary noxious or secondary noxious weed seed.

4.1-40.1-12. Stop sale order 🗎 PDF 

If the commissioner finds the beneficial substance product is being offered or exposed for sale in violation of this chapter, the commissioner may issue an order to stop the sale or use to the owner or custodian of any product containing beneficial substances. The order must remain in effect until the commissioner:
  1. Determines the law has been complied with;
  2. Gives written authorization for the disposal of the product; or
  3. Gives written authorization for the product to be offered for sale.

4.1-40.1-13. Penalties 🗎 PDF 

  1. Any person that knowingly violates this chapter is guilty of a class A misdemeanor.
  2. When construing and enforcing the provisions of this chapter, the act, omission, or failure of any officer, agent, or other person acting for or employed by any person must be deemed also to be the act, omission, or failure of the person or the employed person.
  3. A person that violates this chapter or the rules adopted under this chapter is subject to a civil penalty not to exceed two thousand five hundred dollars per violation. The civil penalty may be imposed by a court in a civil proceeding or by the agriculture commissioner through a proceeding under chapter 28-32. The assessment of a civil penalty does not preclude the imposition of other sanctions authorized by law, this chapter, or rules adopted under this chapter.
  4. After the hearing, the commissioner may deny, suspend, revoke, or modify the provision of a certification issued under this chapter, if the commissioner determines the applicant for certification or the holder of a certificate has violated this chapter or a rule adopted under this chapter.

4.1-40.1-14. Rules 🗎 PDF 

The commissioner may adopt rules under chapter 28-32 to to effectuate the provisions of this chapter.

Chapter 41 — Commercial Feed

4.1-41-01. Definitions 🗎 PDF 

In this chapter, unless the context otherwise requires:
  1. "Brand name" means any word, name, symbol, or device, used singly or in combination, that identifies commercial feed and distinguishes it from that of all others.
  2. "Commercial feed" means any materials, used singly or in combination, which are distributed, or are intended to be distributed, for use as feed or for mixing in feed, except:
    1. Unmixed whole seeds and unmixed physically altered seeds, provided the seeds are not chemically changed or adulterated;
    2. Commodities such as hay, straw, stover, silage, cobs, husks, and hulls, provided the commodities are:
      1. Not intermixed or mixed with other materials;
      2. Not adulterated; and
      3. Specifically exempted by the commissioner;
    3. Individual chemical compounds or substances, provided the chemical compounds or substances are:
      1. Not intermixed or mixed with other materials;
      2. Not adulterated; and
      3. Specifically exempted by the commissioner; and
    4. Unprocessed grain screenings or unprocessed mixed grain screenings, provided:
      1. The distributor does not make oral or written reference to the nutritional value of the screenings;
      2. The screenings are not adulterated; and
      3. The screenings are specifically exempted by the commissioner.
  3. "Commissioner" means the agriculture commissioner or the commissioner's designee.
  4. "Contract feeder" means an independent contractor that feeds commercial feed to animals pursuant to a contract under which the commercial feed is supplied, furnished, or otherwise provided to the independent contractor and the independent contractor's remuneration is determined in whole or in part by feed consumption, mortality, profits, or the amount or quality of the product.
  5. "Customer-formula feed" means a commercial feed that is manufactured according to the specific instructions of the final purchaser.
  6. "Distribute" means to:
    1. Offer for sale, sell, exchange, or barter commercial feed or customer-formula feed; or
    2. Supply, furnish, or otherwise provide commercial feed or customer-formula feed to a contract feeder.
  7. "Drug" means any article:
    1. Intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in an animal other than a human; and
    2. Other than feed, intended to affect the structure or function of an animal's body.
  8. "Feed ingredient" means each of the constituent materials making up a commercial feed.
  9. "Guarantor" means the person whose name and principal mailing address appear on a feed label and who is responsible for guaranteeing the information contained on the label.
  10. "Label" means any written, printed, or graphic information on or attached to a commercial feed or customer-formula feed container or its wrapper, or the written information accompanying the distribution of commercial feed or customer-formula feed, including the invoice or delivery slip.
  11. "Labeling" means the written, printed, or graphic information accompanying the distribution of commercial feed or customer-formula feed, including promotional materials distributed to market the feed and statements and promotions through radio, television, or internet interface, or on an organization's website.
  12. "Manufacture" means to grind, mix, blend, or further process a commercial feed for distribution.
  13. "Mineral feed" means a commercial feed intended to supply primarily mineral elements or inorganic nutrients.
  14. "Official sample" means any feed taken by the commissioner in accordance with section 4.1-41-13.
  15. "Percent" or "percentage" means a rate determined by weight.
  16. "Pet food" means any commercial feed prepared and distributed for consumption by dogs or cats.
  17. "Product name" means a term that identifies a commercial feed as to its kind, class, or specific use and which distinguishes that feed from all other products bearing the same brand name.
  18. "Quantity statement" means the net weight, mass, volume, or count of the feed.
  19. "Specialty pet food" means a commercial feed prepared and distributed for consumption by domesticated animals, not including dogs or cats, normally maintained in a cage or a tank.
  20. "Ton" means a net weight of two thousand pounds avoirdupois [907.18 kilograms].

4.1-41-02. Manufacturer's license - Retailer's license 🗎 PDF 

    1. A person shall obtain a commercial feed manufacturer's license for each facility at which the person manufactures commercial feed if the person distributes the feed within this state.
    2. A person shall obtain a commercial feed manufacturer's license if the person's name appears on the label of a commercial feed as a guarantor.
    3. This subsection does not apply to a person that manufactures or guarantees pet food or specialty pet food.
  2. A person shall obtain a commercial feed retailer's license for each facility at which the person sells commercial feed other than pet food or specialty pet food. This subsection does not apply to a person licensed as a commercial feed manufacturer. To obtain an initial license required by this section, a person shall submit an application form at the time and in the manner required by the commissioner and:
    1. If the person is applying for a manufacturer's license, a fee in the amount of one hundred twenty dollars for a manufacturer's license; or
    2. If the person is applying for a retailer's license, a fee in the amount of sixty dollars.
  3. To renew a license required by this section, a person shall submit an application form at the time and in the manner required by the commissioner and:
    1. If the person is applying for a manufacturer's license renewal, a fee in the amount of one hundred dollars; or
    2. If the person is applying for a retailer's license renewal, a fee in the amount of fifty dollars.
  4. A license issued under this section is valid during the period beginning on January first of an even-numbered year and ending on December thirty-first of the ensuing odd-numbered year.
  5. A license issued under this section is not transferable.
  6. If a person fails to renew a license within thirty-one days of its expiration, that person must apply for an initial license.

4.1-41-03. Product registration 🗎 PDF 

Each commercial feed manufacturer required to be licensed under this chapter shall register all feeds distributed in this state with the agriculture commissioner, at the time and in the manner required by the commissioner. This section does not apply to customer-formula feeds.

4.1-41-04. License - Registration - Hearing 🗎 PDF 

After providing an affected person with an opportunity for an informal hearing, the commissioner may:
  1. Refuse to issue a license to an applicant that is not in compliance with this chapter;
  2. Revoke an existing license if the licensee is not in compliance with this chapter; or
  3. Refuse to register any feed and cancel the registration of any feed if the registrant is not in compliance with this chapter.

4.1-41-05. Pet food - Specialty pet food - Registration - Exemption - Penalty 🗎 PDF 

  1. Before being distributed in this state, each pet food product and each specialty pet food product must be registered with the commissioner. This requirement does not apply to a distributor, provided the pet food or specialty pet food is registered by another person.
  2. To register and renew pet food and specialty pet food, a person shall submit:
    1. An application form at the time and in the manner required by the commissioner;
    2. A fee in the amount of one hundred dollars per product manufactured out-of-state; and
    3. A fee in the amount of fifty dollars per product manufactured in the state.
  3. A registration issued under this section is valid during the period beginning on January first of an even-numbered year and ending on December thirty-first of the ensuing odd-numbered year.
  4. If a person fails to renew a registration within thirty-one days of its expiration, that person must apply for an initial registration.
  5. Upon approving an application for an initial registration or a renewed registration, the commissioner shall furnish a certificate of registration to the applicant. A certificate of registration is not transferable.
  6. Any person violating this section is subject to a penalty of twenty-five dollars for each product that must be registered.
  7. A person is exempt from this section if the person:
    1. Is a resident of this state;
    2. Produces pet food in a noncommercial kitchen;
    3. Sells the pet food directly to the end consumer at a community event or farmer's market; and
    4. Does not use meat, poultry, fish, or their byproducts as an ingredient in the product.

4.1-41-06. Commercial feed - Label - Content 🗎 PDF 

Except as provided in section 4.1-41-07, any commercial feed that is distributed in this state must be labeled. The label must include:
  1. The product's name, including any brand name under which the product is distributed;
  2. The product's weight, volume, or quantity, as appropriate;
  3. A guaranteed analysis expressed on an "as is" basis as determined by the commissioner to adequately advise the consumer of the composition and contents of the commercial feed or to support claims made in the labeling. The composition and contents of the commercial feed must be determinable by laboratory tests, such as the methods published by the association of official analytical chemists international;
  4. Unless waived by the commissioner in the interest of consumers, the commonly accepted name of each ingredient or, if permitted by the commissioner, a collective term for a group of ingredients that perform a similar function;
  5. The name and principal mailing address of the manufacturer or the distributor;
  6. Directions for the safe and effective use of all commercial feed containing drugs and those determined by the commissioner as being necessary; and
  7. Any precautionary statements recommended by the commissioner to ensure the safe and effective use of the feed.

4.1-41-07. Customer-formula feed - Label - Content 🗎 PDF 

Any customer-formula feed that is distributed in this state must be labeled.
  1. The label must include:
    1. The name and address of the manufacturer;
    2. The name and address of the purchaser;
    3. The date of delivery;
    4. The product's name;
    5. The quantity statement of each ingredient, including commercial feed;
    6. Directions for the safe and effective use of all customer-formula feed containing drugs and those determined by the commissioner as being necessary; and
    7. Any precautionary statement recommended by the commissioner to ensure the safe and effective use of the feed.
  2. If the feed contains drugs, the label must also include:
    1. The purpose of each drug;
    2. The weight, volume, or quantity, as appropriate, of each drug; and
    3. The name of each active ingredient.

4.1-41-08. Inspection fee 🗎 PDF 

  1. An inspection fee at the rate of twenty cents per ton [907.18 kilograms] is required for all commercial feed distributed in this state. The minimum fee payable under this section is ten dollars.
  2. Subsection 1 does not apply if:
    1. The fee was paid earlier in the year by another person;
    2. The commercial feed is to be used in the manufacturing of a registered commercial feed;
    3. The feed is a customer-formula feed and the fee has been paid on the commercial feeds used as ingredients; or
    4. The manufacturer produces only customer-formula feed.

4.1-41-09. Inspection fee - Responsibility for payment - Report - Penalty 🗎 PDF 

  1. The person responsible for payment of the inspection fee is:
    1. The manufacturer listed on the label;
    2. The guarantor listed on the label; or
    3. The distributor listed on the label.
  2. Before the close of business on each February fifteenth, the person responsible for the payment of the inspection fee shall provide to the commissioner:
    1. A tonnage report indicating the number of net tons [kilograms] of commercial feed, by class, which the person distributed in this state during the immediately preceding calendar year; and
    2. The inspection fees due in accordance with this chapter.
  3. If the person responsible for the payment of the inspection fee fails to submit the assessments as required by this section, the commissioner may impose a penalty equal to ten percent of the amount due, plus interest at the rate of six percent per annum from the due date. If imposed, a penalty under this section may not be less than ten dollars nor more than two hundred fifty dollars.

4.1-41-10. Inspection fee - Records 🗎 PDF 

  1. The person responsible for payment of the inspection fee shall maintain, for a period of three years, records of all transactions necessary to verify the statement of tonnage required by section 4.1-41-09.
  2. The person shall make the records required by this section available to the commissioner for examination upon request.
  3. If the commissioner determines the records required by this section were not maintained accurately, the commissioner may cancel all licenses on file for the distributor.

4.1-41-11. Adulteration 🗎 PDF 

  1. A person may not distribute any commercial feed that is adulterated. Commercial feed is adulterated if it:
    1. Contains any poisonous or harmful substance that may render the feed injurious to health. However, if the substance naturally occurs in the feed and is not an added substance, the commercial feed may be considered adulterated under this subdivision only if the substance is present in sufficient quantity to render it injurious to health.
    2. Contains any added substance that is poisonous, harmful, or nonnutritive, and unsafe within the meaning of section 406 of the Federal Food, Drug, and Cosmetic Act, as amended [21 U.S.C. 346]. This subdivision does not apply to any pesticide in or on a raw agricultural commodity or to a food additive.
    3. Contains any food additive that is unsafe within the meaning of section 409 of the Federal Food, Drug, and Cosmetic Act, as amended [21 U.S.C. 348].
    4. Is a raw agricultural commodity and it contains a pesticide that is unsafe within the meaning of section 408a of the Federal Food, Drug, and Cosmetic Act, as amended [21 U.S.C. 346a].
      1. However, if a pesticide has been used in or on a raw agricultural commodity in conformity with an exemption granted or a tolerance prescribed under section 408 of the Federal Food, Drug, and Cosmetic Act, as amended [21 U.S.C. 346a] and if the raw agricultural commodity has been subjected to a process such as canning, cooking, dehydration, freezing, or milling, any pesticide residue remaining in or on the processed feed may be deemed safe, provided:
        1. The residue in or on the raw agricultural commodity has been removed to the extent possible in good manufacturing practice; and
        2. The concentration of the residue in the processed feed is not greater than the tolerance prescribed for the raw agricultural commodity.
      2. The exception set forth in paragraph 1 does not apply if the consumption of the processed feed may result in the edible product of the animal evidencing a pesticide residue that is unsafe within the meaning of section 408a of the Federal Food, Drug, and Cosmetic Act, as amended [21 U.S.C. 346a].
    5. Contains any color additive that is unsafe within the meaning of section 721 of the Federal Food, Drug, and Cosmetic Act, as amended [21 U.S.C. 379e].
    6. Contains any new animal drug that is unsafe within the meaning of section 512 of the Federal Food, Drug, and Cosmetic Act, as amended [21 U.S.C. 360b].
  2. In addition to the provisions of subsection 1, commercial feed is adulterated if:
    1. Any valuable constituent has been omitted, in whole or in part, thereby providing a lower nutritive value in the finished product;
    2. The composition or quality of the feed falls below or differs from that which is stated on its label;
    3. The feed contains added hulls, screenings, straw, cobs, or other high fiber material, unless each material is stated on the label;
    4. The feed contains viable weed seeds in amounts exceeding four and one-half viable restricted seeds per pound avoirdupois [453.59 grams];
    5. The feed contains a drug and the methods used in or the facilities or controls used for its manufacturing, processing, or packaging do not conform to current good manufacturing practice rules adopted by the commissioner to ensure the drug meets the identity, strength, quality, purity, and safety requirements of this chapter;
    6. The feed consists in whole or in part of any filthy, putrid, or decomposed substance, or if the feed is otherwise unfit for its intended use;
    7. The feed has been prepared, packed, or held under unsanitary conditions that may have caused it to become contaminated with filth or rendered injurious to health;
    8. The feed consists in whole or in part of the product of a diseased animal or of an animal that has died otherwise than by slaughter which is unsafe within the meaning of section 402(a)(1) or (2) of the Federal Food, Drug, and Cosmetic Act, as amended [21 U.S.C. 342];
    9. The feed's container is composed, in whole or in part, of any poisonous or harmful substance that may render the contents injurious to health;
    10. The feed has been packaged in bags or totes that previously contained pesticide products, treated seeds, or other hazardous materials; or
    11. The feed has been intentionally subjected to radiation, unless the use of the radiation was in conformity with the regulation or exemption in effect pursuant to section 409 of the Federal Food, Drug, and Cosmetic Act, as amended [21 U.S.C. 348].

4.1-41-12. Misbranding 🗎 PDF 

A person may not distribute any commercial feed that is misbranded. Commercial feed is misbranded if:
  1. Its label is false or misleading;
  2. It is distributed under the name of another commercial feed;
  3. It is not labeled in accordance with this chapter;
  4. It purports to be or is represented as being a commercial feed, or if it purports to contain or is represented as containing a commercial feed ingredient, unless the commercial feed or feed ingredient conforms to the definition of identity, if any, prescribed by rules of the agriculture commissioner; or
  5. Any information required on the label is not prominently placed, with conspicuousness, so as to render it readable and comprehensible by an individual under customary conditions of purchase and use.

4.1-41-13. Inspection, sampling, analysis 🗎 PDF 

  1. For purposes of enforcing this chapter, designated officers and employees of the commissioner may enter and inspect any factory, warehouse, establishment, or vehicle in which commercial feeds are manufactured, processed, packed, held for distribution, or transported, provided the individuals first present their credentials and written notice to the owner, manager, or driver.
  2. Any inspection authorized under this section must take place at reasonable times, within reasonable limits, and in a reasonable manner. The inspection may include the verification of records and production and control procedures, as necessary to determine compliance with this chapter and rules implemented under this chapter.
  3. A separate notice must be given for each authorized inspection. However, a separate notice is not required for each entry made during the period covered by the inspection. Each inspection must be commenced and completed with reasonable promptness. Upon completion of the inspection, the individual in charge of the facility or the individual in charge of the vehicle must be notified.
  4. If the officer or employee making an inspection has obtained a sample in the course of the inspection, upon completion of the inspection and prior to leaving the premises, the officer or employee shall give to the owner or manager a receipt describing the samples obtained.
  5. If an officer or employee of the commissioner is denied entry as authorized by this section, the commissioner may obtain a warrant directing the owner or manager to submit the premises described in the warrant to inspection.
  6. Any officer or employee of the commissioner authorized to enter any structure or vehicle in accordance with this section, may obtain samples and examine records relating to distribution of commercial feeds.
  7. Sampling and analysis under this section must be conducted in accordance with generally recognized methods, such as methods published by the association of official analytical chemists international.
  8. The commissioner shall forward the results of any sample analysis to the person named on the label and to the purchaser.
  9. If an analysis indicates that a commercial feed has been adulterated or misbranded, within thirty days following receipt of the analysis, the person named on the label may request that the commissioner provide a portion of the sample.
  10. In determining for administrative purposes whether a commercial feed is deficient in any component, the commissioner must be guided by the official sample.

4.1-41-14. Detained commercial feeds 🗎 PDF 

  1. If the agriculture commissioner has reasonable cause to believe a lot of commercial feed is being distributed in violation of this chapter or any rules implementing this chapter, the commissioner may issue a "withdrawal from distribution" order, prohibiting the distributor from disposing of the lot until written permission is given by the commissioner or by a court. The commissioner shall release the lot of commercial feed when there has been compliance with this chapter and the rules implementing this chapter. If compliance is not obtained within thirty days, the commissioner may begin, or upon request of the distributor shall begin, proceedings for condemnation.
  2. Any lot of commercial feed not in compliance with this chapter or rules implementing this chapter is subject to seizure on complaint of the commissioner to a court of competent jurisdiction. If the court finds the commercial feed to be in violation of this chapter or rules implementing this chapter and orders the condemnation of the commercial feed, it must be disposed of in any manner consistent with the quality of the commercial feed and the laws of the state. A court may not order disposition of the commercial feed without first giving the claimant an opportunity to apply for its release or for permission to process or relabel the commercial feed to bring it into compliance with this chapter and rules implementing this chapter.

4.1-41-14.1. Prohibited acts 🗎 PDF 

Committing the following acts and causing the following acts are prohibited:
  1. The manufacture or distribution of commercial feed that is adulterated or misbranded;
  2. The adulteration or misbranding of commercial feed;
  3. The distribution of agricultural commodities such as whole seed, hay, straw, stover, silage, cobs, husks, and hulls, which are adulterated within the meaning of section 4.1-41-11;
  4. The removal or disposal of commercial feed in violation of an order under section 4.1-41-14;
  5. The failure or refusal to register in accordance with section 4.1-41-03 or section 4.1-41-05;
  6. The failure or refusal to register in accordance with section 4.1-41-02; and
  7. The failure to pay inspection fees or file reports as required by section 4.1-41.

4.1-41-15. Penalties 🗎 PDF 

  1. It is a class A misdemeanor for any person to violate this chapter, the rules implementing this chapter, or impeding, obstructing, hindering, preventing, or attempting to prevent the agriculture commissioner from performing the commissioner's duties in connection with this chapter. In all prosecutions under this chapter involving the composition of a lot of commercial feed, a certified copy of the official analysis signed by the person performing the analysis, or that person's authorized agent, must be accepted as prima facie evidence of the composition.
  2. This chapter does not require the commissioner to seek prosecution or take any other legal action based on minor violations of the chapter if the commissioner deems the public interest will be best served by a suitable written warning.
  3. Each state's attorney to whom any violation is reported shall institute appropriate proceedings to be prosecuted in a court of competent jurisdiction without delay. Before the commissioner reports a violation for prosecution, the commissioner shall provide an opportunity for the distributor to show cause why the violation should not be reported for prosecution.
  4. The commissioner may apply for and the court may grant a temporary or permanent injunction restraining any person from violating or continuing to violate this chapter or any rule implementing this chapter. An injunction must be issued without bond.
  5. Any person adversely affected by an act, order, or ruling made pursuant to this chapter may within forty-five days appeal the action to the district court for Burleigh County.

4.1-41-16. Publications 🗎 PDF 

  1. The commissioner may publish information regarding commercial feeds, including their production, sales, and use, and publish a comparison of the analyses of official samples of commercial feeds sold in this state with the analyses guaranteed in their registration and on their label.
  2. Information regarding the production and use of commercial feeds may not disclose the operations of any person.

4.1-41-17. Cooperation with other entities 🗎 PDF 

The commissioner may cooperate with and enter into agreements with governmental agencies of this state, other states, the federal government, and private associations to carry out this chapter.

4.1-41-18. Certificates - Fees 🗎 PDF 

The commissioner may:
  1. Implement a program to inspect, audit, and certify commercial feed manufacturing and distribution facilities, at the request of an owner;
  2. Issue commercial feed export certificates; and
  3. Establish a schedule of fees for the services provided under this section.

4.1-41-19. Deposit of fees 🗎 PDF 

The commissioner shall forward all inspection fees, license fees, and registration fees received under this chapter to the state treasurer. The state treasurer shall deposit the first seven hundred twenty-seven thousand five hundred dollars of fees received under this chapter each biennium in the environment and rangeland protection fund and any remaining fees in the general fund.

4.1-41-20. Administration - Rulemaking authority 🗎 PDF 

The commissioner shall administer this chapter. The commissioner may adopt rules under chapter 28-32 to implement this chapter.

Chapter 43 — Livestock Medicine

4.1-43-01. Definitions 🗎 PDF 

As used in this chapter:
  1. "Livestock medicine" means all devices, remedies, cures, tonics, powders, proprietary medicines, type A medicated articles, and similar preparations for the treatment or prevention of any disease of livestock, poultry, or other domestic animals which are administered internally for their stimulating, invigorating, curative, or other than nutritive powers, and also all powders, sprays, dips, and other preparations for external use in the curing of scab or the eradication of ticks, lice, and other mites and parasites on livestock, poultry, or other domestic animals. The term does not include medicines that are manufactured, sold, or recommended primarily for human use.
  2. "Type A medicated article" means a product with standardized potency containing one or more new animal drugs intended for use in the manufacture of another medicated article or a medicated feed.

4.1-43-02. Registration of livestock medicine 🗎 PDF 

The commissioner shall register any livestock medicine that does not violate this chapter, upon the completion of an application by the manufacturer or distributor of the livestock medicine and the payment of the registration fee prescribed in section 4.1-53-04. Registration of livestock medicine is valid for a two-year period beginning July first and ending June thirtieth of every even-numbered year unless it is canceled by the commissioner because a change is made in the ingredients or formula of the livestock medicine or in the name, brand, or trademark under which the medicine is sold. In the event of any change, the medicine must be registered once again through an original application with the commissioner. The certificate of registration must include a disclosure of the name and quantity or proportion of each active ingredient and the names of the inert ingredients or fillers.

4.1-43-03. Regulations for sale 🗎 PDF 

A person may not sell, offer for sale, expose for sale, or possess with the intent to sell, any livestock medicine:
  1. That is sold under a name, brand, trademark, or labeling that is misleading, deceptive, false, or dangerous to animals under the conditions of use prescribed in the labeling or advertising;
  2. That purports to cure any infectious disease of domestic animals for which no genuine cure is known;
  3. That has not been registered by the commissioner for sale in this state;
  4. That does not have printed or written upon the label of each package sold at retail, in type not less than one-fourth the size of the largest type on the package:
    1. The common name, in English, of all active ingredients in the order of their predominance in the product;
    2. A statement of the actual percentage or relative amounts of each ingredient active and inert, unless exemptions are established by rules adopted by the commissioner;
    3. The net contents, by weight, measure, or numerical count of the package;
    4. The name and principal address of the manufacturer or person responsible for placing the livestock medicine on the market; and
    5. Complete and explicit directions for use of the medicine.
  5. If the contents of the package as originally manufactured have been removed in whole or in part, and other contents have been placed in the package.

4.1-43-04. Registration fee 🗎 PDF 

A registration fee of forty dollars must be paid to the commissioner for each livestock medicine that is registered prior to each two-year registration ending June thirtieth of every even-numbered year. An application for registration which is received by the commissioner after July thirty-first of the year in which the application is due must be assessed an additional late registration fee of ten dollars.

4.1-43-05. Commissioner may cancel registration 🗎 PDF 

The commissioner may cancel the registration of any livestock medicine that is sold in violation of this chapter.

4.1-43-06. Commissioner may adopt rules, take testimony, grant public hearings 🗎 PDF 

The commissioner may adopt rules under chapter 28-32, governing applications for registration, the submission of samples for analysis, and all other matters necessary to give effect to this chapter. The commissioner may take expert and other testimony and, upon request, shall grant a public hearing prior to the cancellation of a registration and also to any manufacturer or distributor whose request for registration of any livestock medicine has been denied.

4.1-43-07. Enforcement 🗎 PDF 

The commissioner shall enforce this chapter through inspection, chemical analysis, and any other appropriate method. All samples for analysis must be taken from stocks held within, or intended for sale in, this state. The commissioner may require any manufacturer or distributor applying for registration of a livestock medicine to supply samples of the medicine for analysis. The commissioner may institute any action at law or in equity as may appear necessary to enforce compliance with the provisions of this chapter, and in addition to any other remedy, may apply to the district court for relief by injunction, mandamus, or any other appropriate remedy in equity. In such actions, the commissioner is not required to give or post bond in any action to which the commissioner is a party whether upon appeal or otherwise.

4.1-43-08. Penalty - Criminal - Civil 🗎 PDF 

It is a class B misdemeanor for any person to willfully violate a provision of this chapter or any rule adopted under this chapter, or who willfully and falsely represents that any livestock medicine is registered for sale in this state. A person who violates a provision of this chapter or a rule adopted under this chapter is subject to a civil penalty not to exceed five hundred dollars per violation. Each day of noncompliance constitutes a separate violation for purposes of penalty assessments. The civil penalty may be imposed by a court in a civil proceeding or by the commissioner through an administrative hearing under chapter 28-32.

Chapter 44 — Miscellaneous

4.1-44-01. Sale of chemically treated grain - Misdemeanor 🗎 PDF 

A person may not sell grain for the purpose of human or animal consumption which has been chemically treated for insect or fungus control, without informing the purchaser of the treatment. Any person selling chemically treated grain without informing the purchaser of the treatment is guilty of a class B misdemeanor.

4.1-44-02. North Dakota winter show - Official site of the North Dakota agricultural hall of fame 🗎 PDF 

The North Dakota winter show, an annual exhibition, shall be held in Valley City. No other event may be designated as, nor call itself, the North Dakota winter show, or any similar name designed to confuse the public with the exhibition sponsored every year in Valley City by the North Dakota winter show. The North Dakota winter show is a nonprofit corporation organized under the laws of this state. The North Dakota winter show is the official site of the North Dakota agricultural hall of fame.

4.1-44-03. Agricultural commodity assessments funds - Investment income allocation 🗎 PDF 

  1. Notwithstanding any other provision of law, the state treasurer shall invest in accordance with section 21-10-07 all available moneys in:
    1. The potato fund;
    2. The oilseed fund;
    3. The dry bean fund;
    4. The dry pea and lentil fund;
    5. The barley fund;
    6. The corn fund;
    7. The honey fund;
    8. The turkey fund;
    9. The milk marketing fund;
    10. The dairy promotion commission fund;
    11. The state wheat commission fund;
    12. The ethanol fund; and
    13. The North Dakota beef commission fund.
  2. The investment of moneys must be made in cooperation with the governing body of the respective agricultural commodity entity. The state treasurer shall establish rules, in cooperation with the agricultural commodity organizations, to be followed regarding the investment of moneys in each fund. The state treasurer shall credit twenty percent of the investment income derived from each fund to the general fund in the state treasury as payment for accounting, printing, data processing, legal, and other services when provided without cost by the state to the agricultural commodity entity. The state treasurer shall credit eighty percent of the investment income derived from each fund to the respective fund.

4.1-44-04. Agricultural commodity promotion groups to report to the legislative assembly - Report contents 🗎 PDF 

  1. From the first to the tenth legislative day of each regular legislative session, the following entities must file a uniform report at a public hearing before the standing agriculture committee of each house of the legislative assembly:
    1. The North Dakota ethanol council;
    2. The North Dakota potato council;
    3. The North Dakota oilseed council;
    4. The North Dakota dry bean council;
    5. The North Dakota dry pea and lentil council;
    6. The North Dakota barley council;
    7. The North Dakota soybean council;
    8. The North Dakota corn utilization council;
    9. The North Dakota beekeepers association;
    10. The North Dakota turkey federation;
    11. The North Dakota milk marketing board;
    12. The North Dakota dairy promotion commission;
    13. The North Dakota state wheat commission; and
    14. The North Dakota beef commission.
  2. The presiding officer of each house of the legislative assembly may direct the reports be filed with some other standing committee of that house. Each report must contain a summary of the activities of the commodity group during the current biennium, and a single-page uniform statement of revenues and expenditures for the next biennium. Each report, except the reports of the North Dakota beekeepers association and the North Dakota turkey federation, also must include an auditor's report on the commodity group's single-page uniform statement of revenues and expenditures for the previous two fiscal years or an annual financial statement audit as required by the respective group's national association.

4.1-44-05. North Dakota agricultural hall of fame - Establishment - Induction 🗎 PDF 

The North Dakota agricultural hall of fame is established at the North Dakota winter show.
  1. To be eligible for induction into the North Dakota agricultural hall of fame, an individual must:
    1. Have reached the age of forty-five;
    2. Have been involved in the state's agricultural industry for a minimum of twenty years; and
    3. Be nominated for induction by a member of the North Dakota agricultural hall of fame committee.
  2. A nomination must be in writing and must include the nominee's personal history, education, employment, and history of contributions to and achievements in the state's agricultural industry; the nominee's participation in professional organizations; the nominee's career-related activities and civic contributions, honors, and awards; a statement from the candidate, if possible; and the date and signature of the nominator.
  3. The North Dakota agricultural hall of fame committee shall select inductees by majority vote. The selections must be based on the nominee's record of accomplishment in the state's agricultural industry. The committee shall give due consideration to the nominee's participation in organizations represented by members of the North Dakota agricultural hall of fame committee.

4.1-44-06. North Dakota agricultural hall of fame committee - Members 🗎 PDF 

  1. The North Dakota agricultural hall of fame committee consists of the following individuals, each of whom must be selected by the governing body of the entity or the official to be represented:
    1. A representative of the North Dakota winter show;
    2. A representative of agricultural media;
    3. A representative of agriculture in the area of career and technical education;
    4. A representative of the North Dakota stockmen's association;
    5. A representative of the North Dakota grain growers association;
    6. A representative of the North Dakota oilseed council;
    7. A representative of county extension agents;
    8. A representative of the agriculture commissioner;
    9. A representative of the North Dakota pork producers;
    10. A representative of the North Dakota sheep producers;
    11. A representative of the national agricultural marketing association;
    12. A representative of the North Dakota implement dealers association;
    13. A representative of the North Dakota farm bureau;
    14. A representative of the North Dakota farmers union; and
    15. A representative of the national farmers organization.
  2. The committee, by a two-thirds majority, may add a new agricultural organization to select a representative on the North Dakota agricultural hall of fame committee. The committee, by a majority vote, may remove the name of an organization that no longer exists from the North Dakota agricultural hall of fame committee.
  3. The representative of the North Dakota winter show shall serve as the chairman of the committee and the secretary of the North Dakota winter show shall serve as the secretary of the committee. The chairman shall determine the time and location of all committee meetings.
  4. The committee shall determine the number of nominees to be inducted into the North Dakota agricultural hall of fame each year. Any person who is nominated for induction into the North Dakota agricultural hall of fame and fails to receive the requisite votes for induction but receives at least one vote is automatically carried over for consideration for induction the following year. The nominee may provide the committee with updated or additional information to be considered.
  5. The committee shall select the inductees by secret ballot and shall announce the selection at the North Dakota agricultural hall of fame banquet, to be held each year during the North Dakota winter show. Inductees must receive a plaque and have their photographs displayed at the North Dakota agricultural hall of fame.

4.1-44-07. Purple coneflowers (Echinacea purpurea or Echinacea angustifolia) - Unauthorized removal - Penalty 🗎 PDF 

  1. It is a class A misdemeanor for any person to willfully enter upon state-owned land or land owned by another and remove or attempt to remove a purple coneflower, Echinacea purpurea or Echinacea angustifolia, from the land without the express written consent of the landowner. A person in violation of this section is subject to court-ordered restitution to the landowner, and is also subject to a civil penalty of up to ten thousand dollars.
  2. It is a class A misdemeanor for any person to willfully possess a purple coneflower removed from land in violation of this section. A person in violation of this section is also subject to a civil penalty of up to ten thousand dollars.
  3. Any vehicle used to transport a purple coneflower removed or possessed in violation of this section is forfeitable property under chapter 29-31.1.

4.1-44-08. Genetically modified seed - Patent infringement - Sampling - Mediation 🗎 PDF 

  1. For purposes of this section, "farmer" means the person responsible for planting a crop on, managing the crop, and harvesting the crop from land on which a patent infringement is alleged to have occurred.
    1. Before a person holding a patent on a genetically modified seed may enter upon any land farmed by another for the purpose of obtaining crop samples to determine whether patent infringement has occurred, the person holding the patent shall:
      1. Provide written notice to the agriculture commissioner of the person's belief that a patent infringement has occurred and include facts supporting the allegation;
      2. Provide written notice to the farmer of the allegation that a patent infringement has occurred and request written permission to enter upon the farmer's land; and
      3. Obtain the written permission of the farmer.
    2. If the farmer withholds written permission, the person holding a patent may petition the district court of the judicial district in which the property is located for an order granting permission to enter upon the farmer's land.
  3. The farmer may accompany the person holding the patent at the time any samples are taken.
  4. If requested by the farmer or the person holding the patent, the state seed commissioner shall accompany the person holding the patent at the time any sample is taken. The state seed commissioner may impose a fee for providing that service. The patent holder and the farmer shall each pay one-half of the fee charged by the commissioner.
  5. If the person holding a patent believes that the crop from which samples are to be taken may be subject to intentional damage or destruction, the person may seek a protection order from the district court. The protection order may not interrupt or interfere with normal farming practices, including harvest and tillage.
  6. The person holding the patent may take samples from a standing crop, from representative standing plants in the field, or from crops remaining in the field after harvest.
  7. The person holding the patent may not obtain more samples than are reasonably necessary to make a determination regarding patent infringement. An equal number of samples must remain in the custody of the state seed commissioner or the farmer for future comparison and verification purposes. All samples taken must be placed in containers labeled as to the date, time, and location from which they were taken. The labels must be signed by the farmer, the person who took the samples, and the state seed commissioner if the commissioner was present at the time the samples were taken. The patent holder and the farmer shall share equally the cost of the containers needed for the second set of samples that are retained by the state seed commissioner or the farmer. The farmer and the person holding the patent shall share equally the cost of the containers and the cost of obtaining the samples.
  8. Within sixty days from the date the samples are taken, an independent laboratory shall conduct all tests to determine whether patent infringement has occurred. The person holding the patent shall notify the farmer of the test results, by certified mail or by any other method of delivery for which a signature is required, within twenty-one days from the date the results were reported to the person holding the patent.
  9. The parties may participate in mediation at any time. The mediation must be conducted by a mediator jointly selected by the farmer and the person holding the patent. If the farmer and the person holding the patent are unable to select a mediator, the mediation must be conducted by an independent mediation service.
  10. If the case is not settled after mediation, either party may file a claim for relief with the federal district court having jurisdiction over the claim. Unless otherwise specified in a contract between the farmer and the person holding the patent, the appropriate state district court is the one that has jurisdiction over that portion of this state in which the farmer's land is located.

Chapter 45 — State Fair Association

4.1-45-01. State fair association - North Dakota state fair 🗎 PDF 

The North Dakota state fair association shall conduct an annual North Dakota state fair, including exhibition of the agricultural, stockbreeding, horticultural, mining, mechanical, industrial, and other products and resources of this state. The North Dakota state fair must be held at Minot, North Dakota, at a site to be selected by the state fair association. No other fair in the state may include in its name the words "state fair".

4.1-45-02. State fair association members 🗎 PDF 

  1. The state fair association membership must be selected in the following manner:
    1. Three members must be chosen annually from each county, who are residents of the county. From each county, one member must be selected by the county fair board, one member selected by the board of county commissioners, and one member selected by the county agent. In a county in which there is no county fair board or county agent, or neither, the board of county commissioners shall select the members for which there is no other appointing authority under this subsection. A majority of the members must be selected under this subsection.
    2. By a two-thirds vote of the board of directors, the directors may elect individuals as nonvoting honorary life members in recognition of eminent services in agriculture, horticulture, or associated arts and sciences; long and faithful service in the association; or benefits conferred upon the association.
  2. The election and selection of members must be made and certified to the state fair association on or before each annual meeting. The term of each member, except honorary life members, begins at the opening of the annual meeting after being chosen under subsection 1 and continues until the opening of the succeeding annual meeting. Each member holds office until that member's successor is chosen and qualified. A member who is a director remains a member through that member's term of office as director. Any member may resign from membership by filing a written resignation with the secretary of the association but memberships are not transferable or assignable. By majority vote of all members of the board, the board of directors may suspend or expel a member for cause.

4.1-45-03. Meetings of the association - Time and place - Notice 🗎 PDF 

  1. The annual meeting of the state fair association must be held as provided in the bylaws of the association. The annual meeting must include election of directors and the transaction of other business of the association. If the election of directors is not held on the day designated for the annual meeting or at an adjournment of the annual meeting, the board of directors shall cause the election to be held at a special meeting as soon thereafter as convenient. The failure to hold the annual meeting at the designated time does not result in a forfeiture or dissolution of the association.
  2. A special meeting may be held upon the call of the president or by order of the board of directors. The president shall call a special meeting upon request by ten percent or more of the association members.
  3. The president or board of directors, whichever calls the meeting, may designate any place within the state as the place of an annual or special meeting.
  4. At least ten but not more than fifty days before an association meeting, written or printed notice stating the place, day, and hour of any meeting of the association must be delivered to each member entitled to vote at the meeting, personally or by mail or by any form of digital communication directed with verification of receipt to a digital communication address at which the member has consented to receive notice. Delivery of notice must be done by, or at the direction of, the president or the secretary or the officers or persons calling the meeting. For a special meeting, or when required by law or the bylaws, the purpose for which the meeting is called must be stated in the notice. If mailed, the notice of the meeting is deemed to be delivered when deposited in the United States mail, addressed to the member at the member's address as it appears on the records of the association with prepaid postage.

4.1-45-04. Compensation and expenses of members 🗎 PDF 

Each member of the board of directors is entitled to receive compensation in the amount of one hundred thirty-five dollars per day plus reimbursement of expenses as provided by law for state officers while attending meetings or performing duties directed by the board. The board of directors may pay to members rendering unusual or special services to the association special compensation appropriate to the value of the services.

4.1-45-05. Board of directors - Terms 🗎 PDF 

The affairs of the state fair association must be managed by its board of directors, which must consist of nine members unless otherwise provided in the association bylaws. A decrease in the number of directors may not affect the term of any incumbent director. Each director shall hold office for a term of three years, and until that director's successor has been elected and qualified. The terms of the directors must be staggered so three directors are elected annually. The directors must be members of the state fair association and residents of the state.

4.1-45-06. Annual meeting of the board of directors - Special meetings - Notice 🗎 PDF 

  1. A regular annual meeting of the board of directors must be held immediately after and at the same place as the annual meeting of the association. Notice of the regular annual meeting of the board of directors must be included in the notice of the annual meeting of the state fair association. The board of directors may provide by resolution the time and place for the holding of additional regular meetings of the board without other notice than that resolution.
  2. Special meetings of the board of directors may be called by the president or upon the written request of two of the directors. The president shall fix the time and place for the holding of any special meeting of the board of directors.
  3. Notice of any special meeting of the board must be given to each director at least three days before the meeting by written notice delivered personally, sent by mail, or by any form of digital communication directed with verification of receipt to a digital communication address at which the director has consented to receive notice. Any director may waive notice of any meeting. The attendance of a director at any meeting constitutes a waiver of notice of that meeting, except when a director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted, nor the purpose of any regular or special meeting of the board of directors, need be specified in the notice or waiver of notice of such meeting.

4.1-45-07. Quorum of board of directors to transact business 🗎 PDF 

A majority of the board of directors constitutes a quorum for the transaction of business at any meeting of the board. If less than a majority of the directors are present at a meeting, a majority of those present may adjourn the meeting from time to time without further notice. The act of a majority of the directors present at a meeting at which a quorum is present is the act of the board of directors unless the act of a greater number is required by law or by the bylaws. A director participating in a meeting through an electronic communication medium may be considered to be present at the meeting for purposes of this chapter.

4.1-45-08. Vacancies and special compensation of board members 🗎 PDF 

Any vacancy occurring on the board of directors must be filled by the board of directors for the unexpired term of the vacancy. The board of directors may contract for and pay directors rendering unusual or exceptional services to the association special compensation appropriate to the value of those services.

4.1-45-09. Officers - Removal - Vacancies 🗎 PDF 

The officers of the association must be a president, vice president, secretary, treasurer, and such other officers as may be created by the board of directors. An officer of the association shall perform the duties of the office as prescribed by law, the bylaws, or the board of directors. Any two or more offices may be held by the same individual except the offices of president and secretary. The president, vice president, secretary, and treasurer must be elected annually by the board of directors. Any office created by the board may be filled by appointment at any meeting of the board. Each elected officer holds office until that officer's successor has been duly elected and qualified. Any officer elected or appointed may be removed by the board. The removal of any officer is without prejudice to any contractual rights of the officer. Election or appointment of an officer or agent does not create contractual rights. A vacancy in any office may be filled by the board of directors for the unexpired portion of the term.

4.1-45-10. Officers - Duties 🗎 PDF 

  1. The president is the principal executive officer of the association and shall supervise and control the business and affairs of the association and preside at all meetings of the association and the board of directors. The president may sign, with the secretary or any other officer of the association authorized by the board of directors, any deeds, mortgages, bonds, contracts, or other instruments the board of directors has authorized to be executed, except when the signing is expressly delegated by the board of directors, the bylaws, or law to some other officer or agent of the association. The president shall perform all duties incident to the office of president and duties as may be prescribed by the board of directors.
  2. In the absence, inability, or refusal to act of the president, the vice president shall perform the duties of the president and when so acting has all the power of and is subject to all the restrictions upon the president. If there is more than one vice president, the vice president elected or appointed earliest in time shall perform the duties of the president. A vice president shall perform such duties as assigned by the president or board of directors.
  3. If required by the board of directors, the treasurer shall give a bond for the faithful discharge of the treasurer's duties in a sum with that surety as determined by the board. The treasurer shall perform or supervise the performance of all the duties incident to the office of the treasurer and shall:
    1. Keep accurate financial records for the association;
    2. Deposit all money, drafts, and checks in the name of and to the credit of the association in the depositories designated by the board;
    3. Endorse for deposit all notes, checks, and drafts received by the association as directed by the board, making proper vouchers;
    4. Disburse association funds and issue checks and drafts in the name of the association, as directed by the board;
    5. Give to the president and the board, when requested, an account of all transactions by the treasurer and of the financial condition of the association; and
    6. Perform other duties assigned by the board or the president.
  4. The secretary shall keep the minutes of the meetings of the board of directors; see that all notices are duly given in accordance with the bylaws or as required by law; be custodian of the association records; keep a register of the post-office address of each member as furnished to the secretary by the member; and, in general, perform or supervise the performance of all duties incident to the office of secretary and other duties as assigned by the president or by the board of directors.
  5. Any other officers created by the board of directors may be required to give bonds for the faithful discharge of their duties in such sum and with such sureties as determined by the board of directors and shall perform duties assigned to them by the treasurer, secretary, president, or board of directors.

4.1-45-11. Director's liability limited 🗎 PDF 

The individual members of the board of directors of the state fair association are not liable for the negligence of any person, firm, corporation, or limited liability company staging any show, race, or other amusement at the state fair, nor for the negligence of any person employed by them.

4.1-45-12. Bylaws, rules, and regulations 🗎 PDF 

The state fair association may make all bylaws, rules, and regulations, not inconsistent with law, which it deems necessary or proper to carry out its responsibilities under this chapter and for the government of the state fair grounds, and for all activities on the state fair grounds, and for the protection, health, safety, and comfort of the public. The bylaws, rules, and regulations are in effect from the time of filing with the secretary of the association.

4.1-45-13. Appointment of necessary employees 🗎 PDF 

The president, or any other person delegated the authority by the board of directors, shall appoint and employ deputies and other subordinates; contractors, architects, builders, clerks, accountants, and other experts; and agents and servants as required to carry out the functions of the state fair association. Salaries and other compensation must be set by the president and board of directors and any expenses incurred in the performance of employment must be reimbursed in the same manner and for the same amounts as is provided for officials and employees of the state.

4.1-45-14. State fair operating fund - Continuing appropriation 🗎 PDF 

A special fund for the North Dakota state fair association to be known as the state fair operating fund must be maintained in the state treasury. All income, fees, rents, interest, and any other moneys, from any source derived by the state fair association, must be deposited in that fund for the use of the North Dakota state fair association. Moneys credited to the fund are appropriated as a standing appropriation for the purposes provided in this chapter. The fund is not subject to section 54-44.1-11.

4.1-45-15. Organization under corporation laws - Real property transactions - Contracts 🗎 PDF 

The state fair association has the rights, privileges, and liabilities of a corporation under the corporation laws of this state except as provided by this chapter. The association may purchase, hold, lease, exchange, trade, or sell real estate for the purpose of promoting and conducting a state fair. Real estate controlled by the state fair association may be leased, subleased, rented, or used for other than fair purposes when the property is not needed for fair purposes. The state fair association may contract in its own name, but as an agency of the state, and shall make all of its purchases under the purchasing laws of the state, except as exempted by the director of the office of management and budget.

4.1-45-16. Name in which business conducted and titles taken - Execution of written instruments 🗎 PDF 

All business of the association must be conducted under the name of "North Dakota state fair association". Title to property obtained in regard to the operation of the association must be obtained and conveyed in the name of the state of North Dakota, doing business as the North Dakota state fair association. Written instruments must be executed in the name of the state of North Dakota.

4.1-45-17. Certified audit of state fair association 🗎 PDF 

The state fair association shall submit annually to the governor and the legislative audit and fiscal review committee an audit report prepared by a certified public accountant based upon an audit of all records and accounts of the association.

4.1-45-18. Attorney general to act as legal adviser 🗎 PDF 

The attorney general shall appoint an assistant attorney general or a special assistant attorney general to provide legal assistance to the state fair association. The appointment is revocable at the pleasure of the attorney general. This section does not prohibit the state fair association from employing any other attorney to carry out the legal functions of the association or provide additional legal services, other than those provided through the office of the attorney general, necessary for the proper administration of the state fair association.

4.1-45-19. Law enforcement - Arrangements with local law enforcement agencies 🗎 PDF 

The state fair association shall make arrangements with local law enforcement agencies for the provision of law enforcement personnel. For the purpose of enforcing any state and local laws, rules, regulations, bylaws, and ordinances of the state fair association, negotiations may be entered with local law enforcement agencies for the use of law enforcement personnel or the deputizing of employees of the state fair association. The cost of providing law enforcement personnel is the responsibility of the state fair association, except in the case of law enforcement officials who are functioning in their normal capacity as agents of the state or its political subdivisions. Law enforcement personnel shall wear appropriate badges of office while acting as such.

4.1-45-20. Service of process 🗎 PDF 

In any action or proceeding upon a claim arising out of the conduct of the state fair, service of process may be made as provided in section 53-05-04.

4.1-45-21. Regulation and licensing 🗎 PDF 

The state fair association shall regulate all shows, exhibitions, performances, establishments, and privileges carried on during the state fair and ensure those enterprises are properly licensed according to local and state laws. The state fair association may license any enterprises not required to be licensed by state or local laws. The state fair association shall ensure that shows, exhibitions, performances, establishments, and exercise of fair privileges are conducted in compliance with all state and local laws and all rules and regulations of the state fair association.

4.1-45-22. Nonliability of state for debts - Exception 🗎 PDF 

The state is not liable for any of the debts or liabilities of the state fair association except as appropriations are made for that purpose by the legislative assembly.

4.1-45-22.1. Facility operations and maintenance costs 🗎 PDF 

Repealed by S.L. 2025, ch. 41, § 5.

4.1-45-23. Annual report 🗎 PDF 

The secretary or other officer charged with compiling an annual report of the proceedings of the state fair association and its financial condition for the preceding fiscal year by the annual meeting shall file a copy in the office of the agriculture commissioner. The commissioner shall include it, in whole or in part, in the commissioner's biennial report to the governor and the secretary of state.

4.1-45-24. The Iverson grandstand 🗎 PDF 

The grandstand constructed by the state fair association on the state fairgrounds during the 2009-11 biennium is designated the Iverson grandstand.

Chapter 47 — Noxious Weed Control

4.1-47-01. Definitions 🗎 PDF 

As used in this chapter:
  1. "Board member area" means a geographical area within the county from which a member of the weed board is appointed.
  2. "City weed control officer" means an individual designated by a city weed board to be responsible for the operation and enforcement of this chapter within the city.
  3. "Commissioner" means the agriculture commissioner or the commissioner's designee.
  4. "Control" means to prevent a noxious weed from spreading by:
    1. Suppressing its seeds or propagating parts; or
    2. Destroying either the entire plant or its propagating parts.
  5. "County weed control officer" means an individual designated by the county weed board to be responsible for the operation and enforcement of this chapter within each county.
  6. "Noxious weed" means a plant propagated by either seed or vegetative parts and determined to be injurious to public health, crops, livestock, land, or other property by:
    1. The commissioner in accordance with section 4.1-47-05;
    2. A county weed board in accordance with section 4.1-47-10; or
    3. A city weed board in accordance with section 4.1-47-21.
  7. "Township road" means an improved public road that is:
    1. Located outside of an incorporated city;
    2. Not designated as part of a county, state, or federal aid road system; and
    3. Constructed, maintained, graded, and drained by the township, or by the county if the township is unorganized.

4.1-47-02. Control of noxious weeds 🗎 PDF 

  1. Each person shall do all things necessary and proper to control the spread of noxious weeds.
  2. No person may distribute, sell, or offer for sale within this state a noxious weed.

4.1-47-03. Noxious weed control - Agriculture commissioner - Powers 🗎 PDF 

The commissioner may enter upon any land in the state to perform duties and to exercise powers under this chapter, including taking specimens of weeds or other materials, without the consent of the landowner or other person responsible for the land and without being subject to any action for trespass or damages, provided reasonable care is exercised.

4.1-47-04. Noxious weed control - Agriculture commissioner - Duties 🗎 PDF 

The commissioner shall:
  1. Maintain a state noxious weed list;
  2. Direct the removal of a noxious weed from a county or city noxious weed list if the commissioner, after consultation with the respective weed board and the North Dakota state university extension service, determines there is insufficient justification for the continued inclusion of that particular noxious weed;
  3. Except as otherwise provided, forward all complaints to the proper weed control authority; and
  4. Call an annual meeting of all weed control officers to review noxious weed control efforts in this state.

4.1-47-05. State noxious weed list - Compilation 🗎 PDF 

  1. Before the commissioner may add a weed to or remove a weed from the state noxious weed list, the commissioner shall consult with the North Dakota state university extension service.
  2. Before January 1, 2010, and at least every five years thereafter, the commissioner shall review the state noxious weed list. The commissioner shall provide each county and city weed board with at least fourteen days' notice of the time and place at which the list will be reviewed and, no later than fourteen days after conclusion of the review, shall provide each county and city weed board with written notice of any changes to the state noxious weed list.

4.1-47-06. County weed board - Members - Terms - Compensation 🗎 PDF 

  1. Each board of county commissioners shall:
    1. Establish contiguous county weed board member areas; or
    2. Determine that county weed board members must be appointed at large.
  2. The board of county commissioners shall appoint a county weed board consisting of three, five, or seven members. Members shall serve for a term of four years or until their successors are appointed and qualified. The terms must be staggered so that no more than two expire each year.
  3. If the board of county commissioners has established county weed board member areas as provided for in subsection 1, any qualified elector residing in the county weed board member area is eligible to represent that area on the board. If the board of county commissioners has determined that county weed board members must be appointed at large as provided for in subsection 1, any qualified elector residing in the county is eligible to serve on the county weed board.
  4. A board member shall assume office at the first regular meeting of the county weed board following that member's appointment.
  5. The board of county commissioners shall remove a member of the county weed board for repeated unexcused failures to attend meetings, for refusal to act as a board member, or for incapacity. If a vacancy occurs on a county weed board, the board of county commissioners, at its next regular meeting, shall appoint an individual who possesses the necessary qualifications to fill the unexpired term.
    1. The county weed board shall elect a chairman and a vice chairman from among its members.
    2. The county weed board shall appoint a secretary and a treasurer. The secretary and treasurer need not be members of the board.
  7. The board of county commissioners shall establish the rate of compensation for county weed board members. Actual expenses incurred by board members may be reimbursed at the official reimbursement rates of the appointing authority.

4.1-47-07. County weed board - Jurisdiction 🗎 PDF 

The jurisdiction of a county weed board extends to all land within the county but does not include any land within the corporate limits of a city if that city has its own noxious weed control program under this chapter.

4.1-47-08. County weed board - Powers 🗎 PDF 

A county weed board may:
  1. Expend funds from all available sources if it determines that the extent of noxious weed infestation on certain land is so severe that control efforts would place an extreme financial burden on the landowner.
  2. Employ and compensate additional personnel to assist with noxious weed control efforts.

4.1-47-09. County weed board - Duties 🗎 PDF 

Each county weed board shall:
  1. Implement a program for the control of noxious weeds;
  2. Provide for the control of noxious weeds along county and township roads and along county highways;
  3. Establish the time and place of regular board meetings;
  4. Meet at least once each year;
  5. Keep minutes of its board meetings and a complete record of all official acts;
  6. Control and disburse all moneys received by the county from any source for noxious weed control;
    1. Provide for the compensation of its members and its secretary and treasurer;
    2. Reimburse its members and its secretary and treasurer for actual and necessary expenses; and
    3. Provide a mileage allowance at the same rate as that established for state employees; and
    1. Employ and provide for the compensation of a weed control officer;
    2. Reimburse the weed control officer for actual and necessary expenses; and
    3. Provide a mileage allowance at the same rate as that established for state employees.

4.1-47-10. County weed board - Development of county weed list 🗎 PDF 

  1. A county weed board may designate as noxious certain weeds that are not on the state noxious weed list, provided the county weed board consults with the North Dakota state university extension service and that the designation is approved by the commissioner.
  2. Before January 1, 2010, and at least every five years thereafter, each county weed board shall review its noxious weed list and, by majority vote, may remove any weed from its list. The county weed board shall provide the commissioner with at least fourteen days' notice of the time and place at which its list will be reviewed and, no later than fourteen days after conclusion of the review, shall provide the commissioner with written notice of any changes to the county list.
  3. A county weed board shall immediately remove any noxious weed from its list when directed to do so by the commissioner in accordance with section 4.1-47-04.

4.1-47-11. County weed control officer - Membership on county weed board - Employment 🗎 PDF 

  1. A county weed control officer may serve as a member of the weed control board by which the officer is employed if the officer is otherwise qualified to do so.
  2. An individual may be employed as a weed control officer by several weed boards simultaneously.

4.1-47-12. County weed control officer - Powers 🗎 PDF 

A county weed control officer may enter upon any land within the jurisdiction of the officer to perform duties and to exercise powers under sections 4.1-47-01 through 4.1-47-30, including taking specimens of weeds or other materials, without the consent of the landowner or other person responsible for the land and without being subject to any action for trespass or damages, provided reasonable care is exercised.

4.1-47-13. County weed control officer - Duties 🗎 PDF 

The county weed control officer shall:
  1. Cooperate with the board and be responsible for the operation and enforcement of this chapter within the county;
  2. Become acquainted with the location of noxious weeds within the county;
  3. Meet the pesticide certification requirements set forth in chapter 4.1-33;
  4. Encourage noxious weed control by all landowners and land occupants within the county;
  5. Investigate all signed complaints received by the officer regarding noxious weeds;
  6. Post or publish in the official newspaper of the county any notices the commissioner deems necessary to further noxious weed control under this chapter;
  7. Prepare reports as requested by the commissioner; and
  8. Attend meetings called by the commissioner to further noxious weed control under this chapter.

4.1-47-14. County noxious weed control program - Payment of expenses - Financial report - Tax levy authorization 🗎 PDF 

  1. The board of county commissioners may pay the expenses of a county noxious weed control program authorized under this chapter from the county general fund, the noxious weed control fund, or both. In addition to the other program expenditures authorized in this chapter, the board of county commissioners may expend funds from the levy authorized under subsection 11 of section 57-15-06.7 to control noxious weeds or undesirable vegetation along county or township roads in the county.
    1. The county weed board may annually request from the board of county commissioners the levy of a tax, not to exceed the levy limitation in subsection 11 of section 57-15-06.7, but any tax levied under this section does not apply to property that lies within the boundaries of a city having a noxious weed control program under this chapter. In the year for which the levy is sought, a county weed board seeking approval of a property tax levy under this chapter must file with the county auditor, at a time and in a format prescribed by the county auditor, a financial report for the preceding calendar year showing the ending balances of each fund held by the county weed board during that year.
    2. The board of county commissioners may levy the taxes authorized by this subsection and shall place those moneys in a separate fund designated as the weed control fund, which may be used to pay the expenses authorized under this section.
  3. For purposes of this section, the expenses of a county noxious weed control program include compensation for and the reimbursement of expenses incurred by the county weed board, the county weed control officer and other employees of the board, and expenses incurred as authorized by this chapter.

4.1-47-15. State appropriations for noxious weed control - Distribution - Determination 🗎 PDF 

  1. The commissioner shall consult with the county and city weed boards and develop a method for the distribution to county and city weed boards of all moneys appropriated by the state for noxious weed control, other than the landowner assistance grants provided for in section 4.1-47-16.
  2. The method must:
    1. Limit the amount that any county or city weed board is entitled to receive under this section to seventy-five percent of the board's actual expenditures under this section; and
    2. Allow the commissioner to waive the limit provided for in this subsection if the commissioner determines that a noxious weed is seriously endangering areas of a county, a city, or the state.

4.1-47-16. State appropriations for noxious weed control - Landowner assistance program 🗎 PDF 

  1. The commissioner shall consult with representatives of county and city weed boards and develop a formula for the distribution to eligible county weed boards and eligible city weed boards of all moneys appropriated by the state for the landowner assistance program.
    1. The formula must require that county officials budget, from revenues derived from county sources, an amount equal to the revenue that could be raised by a levy of at least three mills for noxious weed control against taxable property in the county which does not lie within the boundaries of a city having a noxious weed control program under this chapter.
    2. The formula must require that city officials budget, from city sources, an amount equal to the revenue that could be raised by a levy of at least three mills for noxious weed control.
    1. The formula must require that the landowner contribute an amount equal to at least twenty percent of the cost to be expended on behalf of the landowner.
    2. The nature and type of the landowner's contribution must be determined by the weed board having jurisdiction over the area in which the landowner's property is located.

4.1-47-17. Control of noxious weeds within cities 🗎 PDF 

The governing body of any city having a population of three thousand or more may establish a program for the control of noxious weeds within the jurisdictional limits of the city. If a program is not established, the county weed board shall administer a program for the city.

4.1-47-18. City weed board members - Terms - Compensation 🗎 PDF 

  1. If the governing body of a city elects to establish a noxious weed control program, as authorized by section 4.1-47-17, the governing body shall appoint a weed board consisting of three, five, or seven members.
  2. The term of office for a board member is four years or until a successor is appointed and qualified. The terms must be staggered so that no more than two expire each year.
  3. Any qualified elector residing within the city is eligible to serve on the board.
  4. A board member shall assume office at the first regular meeting of the city weed board following the member's appointment.
  5. The governing body of the city shall remove a member of the city weed board for repeated unexcused failures to attend meetings, for refusal to act as a board member, or for incapacity. If a vacancy occurs on a city weed board, the governing body of the city, at its next regular meeting, shall appoint an individual who possesses the necessary qualifications to fill the unexpired term.
  6. The city weed board shall elect a chairman and a vice chairman from among its members.
  7. The city weed board shall appoint a secretary and a treasurer. The secretary and treasurer need not be members of the board.
  8. The governing body of the city shall establish the rate of compensation for city weed board members.

4.1-47-19. City weed board - Powers 🗎 PDF 

A city weed board may:
  1. Expend funds from all available sources if it determines that the extent of noxious weed infestation on certain land is so severe that undertaking control efforts would place an extreme financial burden on the landowner.
  2. Employ and compensate additional personnel to assist with noxious weed control efforts.

4.1-47-20. City weed board - Duties 🗎 PDF 

Each city weed board shall:
  1. Implement a program for the control of noxious weeds;
  2. Establish the time and place of regular board meetings;
  3. Meet at least once each year;
  4. Keep minutes of its meetings and a complete record of all official acts;
  5. Control and disburse all moneys received by the city from any source for noxious weed control;
    1. Provide for the compensation of its members and its secretary and treasurer;
    2. Reimburse its members and its secretary and treasurer for actual and necessary expenses; and
    3. Provide a mileage allowance at the same rate as that established for state employees; and
    1. Employ and provide for the compensation of a weed control officer;
    2. Reimburse the weed control officer for actual and necessary expenses; and
    3. Provide a mileage allowance at the same rate as that established for state employees.

4.1-47-21. City weed board - Development of city weed list - Review - Removal 🗎 PDF 

  1. A city weed board may designate as noxious certain weeds that are not on the state or county noxious weed list, provided the city weed board first consults with the North Dakota state university extension service and that the designation is approved by the commissioner.
  2. Before January 1, 2010, and at least every five years thereafter, each city weed board shall review its noxious weed list and, by majority vote, may remove any weed from its list. The city weed board shall provide the commissioner with at least fourteen days' notice of the time and place at which its list will be reviewed and, within fourteen days of the review, shall provide the commissioner with written notice of any changes to the city list.
  3. A city weed board immediately shall remove any noxious weed from the board's list when directed to do so by the commissioner in accordance with section 4.1-47-04.

4.1-47-22. City weed control officer - Membership on city weed board - Employment 🗎 PDF 

  1. A city weed control officer may serve as a member of the weed control board by which the officer is employed if the officer is otherwise qualified to do so.
  2. An individual may be employed as a weed control officer by several weed boards simultaneously.

4.1-47-23. City weed control officer - Powers 🗎 PDF 

A city weed control officer may enter upon any land within the jurisdiction of the officer to perform duties and to exercise powers under this chapter, including taking specimens of weeds or other materials, without the consent of the landowner or other person responsible for the land and without being subject to any action for trespass or damages, provided reasonable care is exercised.

4.1-47-24. City weed control officer - Duties 🗎 PDF 

The city weed control officer shall:
  1. Cooperate with the board and be responsible for the operation and enforcement of this chapter within the city;
  2. Become acquainted with the location of noxious weeds within the city;
  3. Meet the pesticide certification requirements set forth in chapter 4.1-33;
  4. Encourage noxious weed control by all landowners and land occupants within the city;
  5. Investigate all signed complaints received by the officer regarding noxious weeds within the city;
  6. Post or publish in the official newspaper of the city any notices the commissioner deems necessary to further noxious weed control under this chapter;
  7. Prepare reports as requested by the commissioner; and
  8. Attend meetings called by the commissioner to further noxious weed control under this chapter.

4.1-47-25. City noxious weed control program - Payment of expenses - Financial report 🗎 PDF 

  1. The governing body of a city may provide funding for a city noxious weed control program authorized under this chapter from revenues derived from its general fund levy authority.
  2. The city weed board may annually request the governing body of a city to provide funds derived from its general fund levy authority in the amount necessary for the city noxious weed control program. In the year for which the levy is sought, a city weed board seeking approval of a property tax levy under this chapter must file with the city auditor, at a time and in a format prescribed by the city auditor, a financial report for the preceding calendar year showing the ending balances of each fund held by the city weed board during that year.
  3. For purposes of this section, the expenses of a city noxious weed control program include compensation for and the reimbursement of expenses incurred by the city weed board, the city weed control officer, and other employees of the board, and expenses incurred in the provision of noxious weed control, as authorized by this chapter.

4.1-47-26. Publicly owned land - Noxious weed control 🗎 PDF 

Each state agency shall provide for the control of noxious weeds on land within its jurisdiction. If a state agency fails to control noxious weeds on land under its jurisdiction, the county weed board, upon approval of the commissioner, may enter upon the land to control the noxious weeds. The state agency shall reimburse the county weed board for expenses incurred in controlling the noxious weeds, within thirty days after the agency receives the bill.

4.1-47-27. Noxious weed control - Enforcement responsibilities of other agencies 🗎 PDF 

Law enforcement agents shall cooperate with the commissioner, a weed control board, and a weed control officer for the purpose of enforcing this chapter.

4.1-47-28. Entry upon land for noxious weed control purposes - Notices - Landowner rights - Remedial requirements - Liens 🗎 PDF 

    1. If a county weed officer determines that any land other than that referenced in subsection 2 contains noxious weeds, the county weed control officer may first contact the occupant and request that the occupant control the noxious weeds within a prescribed time period and in a prescribed manner. If the county weed control officer determines that the occupant has failed to control the noxious weeds, as requested, the county weed officer shall serve upon the landowner written notice, either personally or by certified mail, requiring the landowner to control the noxious weeds within the time period prescribed by the county weed control officer.
    2. The notice must:
      1. Specify the minimal remedial requirements;
      2. Specify the time within which the landowner must meet the minimum remedial requirements;
      3. Specify that the landowner may be subject to penalties provided under this chapter if the landowner fails to comply with the remedial requirements;
      4. Include a statement of costs if the landowner fails to control the noxious weeds and the county weed officer must provide for control of the weeds; and
      5. Provide that the landowner may stay any efforts by the county weed officer to control noxious weeds on the land by requesting in writing that the county weed board hold a hearing on the matter.
    3. If the landowner does not meet the minimum remedial requirements within the time specified in the notice and does not request a hearing on the matter by the county weed board, the county weed control officer may cause the noxious weeds to be controlled and the expenses charged against the land of the landowner. These expenses are part of the taxes to be levied against the land for the ensuing year and must be collected in the same manner as other real estate taxes.
    4. If after holding a hearing on the matter, the county weed board directs that the noxious weeds be controlled by the county weed officer, the landowner may appeal the decision to the board of county commissioners. A decision by the board of county commissioners is final.
    5. If the landowner does not appeal the decision to the board of county commissioners, or if the board of county commissioners upholds the decision of the county weed board, the county weed control officer may cause the noxious weeds to be controlled and any expenses incurred by the county weed officer in controlling the weeds must be charged against the land of the landowner. These expenses are part of the taxes to be levied against the land for the ensuing year and must be collected in the same manner as other real estate taxes.
    1. If a city weed control officer determines that land within the officer's jurisdiction contains noxious weeds, the officer may serve upon the landowner written notice either personally or by certified mail, requiring the landowner to control the noxious weeds within the time period prescribed by the city weed control officer.
    2. The notice must:
      1. Specify the minimal remedial requirements;
      2. Specify the time within which the landowner must meet the minimum remedial requirements;
      3. Specify that the landowner may be subject to penalties provided under this chapter if the landowner fails to comply with the remedial requirement;
      4. Include a statement of costs if the landowner fails to control the noxious weeds and the city weed officer must provide for control of the weeds; and
      5. Provide that the landowner may stay any efforts by the city weed officer to control noxious weeds on the land, by requesting in writing that the city weed board hold a hearing on the matter.
    3. The city weed officer shall deliver a copy of the notice personally or forward a copy of the notice by certified mail to any tenant, lessee, or operator of the land on which the noxious weeds are located.
    4. If the landowner does not meet the minimum remedial requirements within the time specified in the notice and does not request a hearing on the matter by the city weed board, the city weed control officer may cause the noxious weeds to be controlled and the expenses charged against the land of the landowner. These expenses are part of the taxes to be levied against the land for the ensuing year and must be collected in the same manner as other real estate taxes.
    5. If after holding a hearing on the matter the city weed board directs that the noxious weeds be controlled by the city weed officer, the landowner may appeal the decision to the governing body of the city. A decision by the governing body is final.
    6. If the landowner does not appeal the decision to the governing body of the city, or if the governing body of the city upholds the decision of the city weed board, the city weed control officer may cause the noxious weeds to be controlled and any expenses incurred by the city weed officer in controlling the weeds must be charged against the land of the landowner. These expenses are part of the taxes to be levied against the land for the ensuing year and must be collected in the same manner as other real estate taxes.

4.1-47-29. Quarantine - Declaration - Hearing - Penalty 🗎 PDF 

  1. If the commissioner determines that a quarantine of this state or any portion thereof may be necessary to prevent the spread of noxious weeds, the commissioner shall schedule a public hearing on the matter and provide notice of the hearing by publishing its time, place, and date in the official newspaper of each county having land within the area of the proposed quarantine. If after the hearing the commissioner orders the imposition of a quarantine, the order must include the date by which or the circumstances under which the commissioner shall lift the quarantine order.
  2. If the commissioner determines that the imposition of an emergency quarantine is necessary to prevent the spread of noxious weeds, the commissioner may impose such an order for a period not to exceed fourteen days. Within the fourteen-day period, the commissioner shall hold a public hearing as provided for in subsection 1 and determine whether a quarantine order under subsection 1 should be imposed.
  3. Following the establishment of a quarantine, the movement of any product or material described in the quarantine order is subject to the order.
  4. Any person who violates a quarantine order issued under this section is guilty of a class B misdemeanor.

4.1-47-30. Preventing the dissemination of noxious weeds - Penalty 🗎 PDF 

    1. A person may not willfully transport any material that contains noxious weed seeds or propagating parts, on a public road, in a manner that allows for the dissemination of noxious weeds.
    2. A person may not willfully drive or transport any equipment, on a public road, in a manner that allows for the dissemination of noxious weeds.
    3. A person may not willfully dispose of any material that contains noxious weed seeds or propagating parts in a manner that allows for the dissemination of noxious weeds.
  2. Any person who violates this section is guilty of a class B misdemeanor.

4.1-47-31. Civil penalty 🗎 PDF 

    1. In addition to any other penalties provided for in this chapter, a person who violates this chapter or any rules adopted under this chapter is subject to a civil penalty in an amount not to exceed eighty dollars per day for each day of violation, subject to a maximum penalty of four thousand dollars per year.
    2. Penalties imposed upon a landowner for failing to comply with the remedial requirements, as set forth in section 4.1-47-28, are a lien against the property of the landowner from the day the notice is delivered to the landowner under section 4.1-47-28.
    3. A person who violates subsection 2 of section 4.1-47-02 is subject to a civil penalty not to exceed one hundred dollars for each violation.
  2. All penalties collected under this section must be credited to the noxious weed control fund of:
    1. The city in which the violation occurred if the city has a noxious weed control program under this chapter; or
    2. The county in which the violation occurred.
  3. Any penalties provided for under this section may be adjudicated by a court, a county weed board, or a city weed board after a hearing.
  4. An aggrieved person may appeal the imposition of a penalty by a county weed board to the board of county commissioners. An aggrieved person may appeal the imposition of a penalty by a city weed board to the governing body of the city.

4.1-47-32. Action on complaint - Request for hearing 🗎 PDF 

    1. If an individual filed a signed complaint with a county weed board or the county weed control officer and if the individual believes that the complaint has not been addressed satisfactorily within twenty-one days from the date of the complaint, the individual may file a written request for a hearing with the board of county commissioners.
    2. Upon receiving a request for a hearing, the board of county commissioners shall schedule a public hearing within twenty-one days and shall provide notice of the hearing by publishing its time, place, and date in the official newspaper of the county.
    3. Within fourteen days after the hearing, the board of county commissioners shall issue a determination regarding the matter and shall issue appropriate directives to the county weed board.
    4. A decision by the board of county commissioners under this section is final.
    1. If an individual filed a signed complaint with a city weed board or the city weed control officer and if the individual believes that the complaint has not been addressed satisfactorily within twenty-one days from the date of the complaint, the individual may file a written request for a hearing with the governing body of the city.
    2. Upon receiving a request for a hearing, the governing body of the city shall schedule a public hearing and shall provide notice of the hearing by publishing its time, place, and date in the official newspaper of the county.
    3. Within fourteen days after the hearing, the governing body of the city shall issue a determination regarding the matter and shall issue appropriate directives to the city weed board.
    4. A decision by the governing body of the city under this section is final.

4.1-47-33. County and city weed boards - Control of invasive species - Acceptance of funds 🗎 PDF 

  1. If a county or a city weed board determines that an invasive species is present within its jurisdiction, the weed board shall notify the commissioner.
    1. If funds for the control of invasive species are available to the commissioner, the commissioner may forward the funds to a weed board for the purpose of controlling the invasive species on public land and assisting private landowners in their efforts to voluntarily control the invasive species provided:
      1. The commissioner determines that, without intervention, the invasive species is likely to become a noxious weed during the ensuing five-year period; and
      2. The weed board files a plan with the commissioner detailing the manner in which and the time within which the funds are to be expended.
    2. Notwithstanding any other law, a county or a city weed board may accept funds under this subsection and implement a plan, approved by the commissioner, for the control of invasive species within its jurisdiction.
  3. In addition to any funds available from the commissioner, a county or a city weed board may accept funds from any other source to control invasive species within its jurisdiction.
  4. For purposes of this section, an invasive species means a plant species that has been introduced into this state and which the North Dakota state university extension service determines has caused or is likely to cause:
    1. Economic harm;
    2. Environmental harm; or
    3. Harm to human health.

4.1-47-34. Noxious weed certification - Gravel and sand pits 🗎 PDF 

  1. If requested by any person needing certification, a county weed board may certify, based on standards set by the commissioner after consulting with representatives of county or city weed boards, gravel, scoria, topsoil, or sand surface mining operations are not contaminated with noxious weeds.
  2. The commissioner may adopt a schedule of fees that county weed boards may charge for inspecting, testing, analyzing, and certifying gravel, scoria, topsoil, or sand surface mining operations.
  3. Certification of gravel, scoria, topsoil, or sand surface mining operations as being free from contamination of noxious weeds is not a warranty of any kind as to the quality of the gravel, scoria, topsoil, or sand from an inspected and certified location.

Chapter 48 — Potato Production Contracts

4.1-48-01. Definitions 🗎 PDF 

In this chapter, unless the context or subject matter otherwise requires:
  1. "Buyer" means an individual, group of individuals, organization, or entity that in the ordinary course of business buys potatoes or byproducts of potatoes grown in this state or that contracts with a potato producer to grow potatoes in this state.
  2. "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.
  3. "Potatoes" means potatoes or byproducts of potatoes produced for use in or as food, seed, feed, or other byproducts of the farm for the same or similar use.
  4. "Producer" means an individual, group of individuals, organization, or entity that produces or causes to be produced potatoes by contracting with a buyer or processor to provide management, labor, machinery, facilities, or any production input for the production of potatoes.

4.1-48-02. Unfair acts and practices prohibited 🗎 PDF 

The following prohibited acts or practices, when engaged in by a buyer in connection with a potato production contract or purchase involving potatoes constitute unfair acts or practices for purposes of this chapter. A buyer may not:
  1. Use coercion, intimidation, the threat of retaliation or the threat of contract termination, cancellation, or nonrenewal to impose, demand, compel, or dictate terms, payment or manner of payment, or the signing of a contract by a potato producer.
  2. Use coercion, intimidation, the threat of retaliation, or the threat of contract termination, cancellation, or nonrenewal to require a producer to make capital improvements such as buildings or equipment.
  3. Interfere with, restrain, or coerce a producer in the exercise of the right to join, form, or assist a producer bargaining cooperative or association.
  4. Refuse to deal with a producer because of the exercise of the right to join and belong to a producer bargaining cooperative or association.
  5. Refuse to provide to the producer, upon request, the statistical information and the data used to determine compensation paid to the producer for settlement.
  6. Refuse to allow a producer or the producer's designated representative to observe, by actual observation at the time of weighing, the weights and measures used to determine the producer's compensation at settlement.
  7. Use the performance of any other producer to determine the settlement of a producer.
  8. Refuse to bargain with an established producer bargaining cooperative or association formed for the purpose of negotiating contracts and agreements.

4.1-48-03. Civil liability for damages from an unfair act or practice 🗎 PDF 

A person who engages in conduct that constitutes an unfair act or practice under section 4.1-48-02 is liable to a producer for all damages caused to the producer by the unfair act or practice.

4.1-48-04. Good faith - Damages for violation - Penalty 🗎 PDF 

There is an implied promise of good faith by all parties to a potato production contract. In an action to recover damages, if the court or a jury finds there has been a breach of the implied promise of good faith, in addition to other damages authorized by law, attorney's fees and court costs may be awarded.

4.1-48-05. Recapture of capital investment required by a potato production contract 🗎 PDF 

  1. A contractor may not terminate or cancel a contract that requires a producer to make a capital investment in buildings or equipment that cost one hundred thousand dollars or more and have a useful life of five or more years until:
    1. The producer has been given written notice of the intention to terminate or cancel the contract at least one hundred eighty days before the effective date of the termination or cancellation, or as provided in subsection 3; and
    2. The producer has been reimbursed for damages incurred by an investment in buildings or equipment that was made for the purpose of meeting minimum requirements of the contract.
  2. Except as provided in subsection 3, if a producer fails to comply with the provisions of a contract that requires a capital investment subject to subsection 1, a contractor may not terminate or cancel that contract until:
    1. The contractor has given written notice with all the reasons for the termination or cancellation at least ninety days before termination or cancellation, or as provided in subsection 3; and
    2. The recipient of the notice fails to correct the reasons stated for termination or cancellation in the notice within sixty days of receipt of the notice.
  3. The one hundred eighty-day notice period under subsection 1, and the ninety-day notice period and the sixty-day notice period under subsection 2, are waived and the contract may be canceled or terminated immediately if the alleged grounds for termination or cancellation are:
    1. Voluntary abandonment of the contract relationship by the producer; or
    2. Conviction of the producer of an offense directly related to the business conducted under the contract.

Chapter 52 — Seed Department And Seed Commission

4.1-52-01. Seed department - Location 🗎 PDF 

The North Dakota seed department is the official seed-certifying agency of the state. The seed department must be located on the campus of North Dakota state university.

4.1-52-02. Seed department - Official seal 🗎 PDF 

The seed department shall use an official departmental seal that has been recorded in the office of the secretary of state.

4.1-52-03. Seed commission membership 🗎 PDF 

The seed commission is the governing board of the seed department. The seed commission consists of the following members:
  1. An individual appointed by the North Dakota crop improvement association;
  2. An individual appointed by the North Dakota certified seed potato growers association;
  3. An individual appointed by the North Dakota dry edible bean seed growers association;
  4. An individual appointed by the North Dakota agricultural association;
  5. An individual appointed by the North Dakota potato council;
  6. A resident of this state appointed by the northern plains potato growers association;
  7. An individual who operates a seed-conditioning plant approved by the seed department, appointed by the North Dakota grain dealers association;
  8. The director of the agricultural experiment station or the director's designee; and
  9. The agriculture commissioner or the agriculture commissioner's designee.

4.1-52-04. Seed commission - Chairman - Meetings 🗎 PDF 

  1. The agriculture commissioner shall serve as the chairman of the seed commission.
  2. The chairman shall call all regular meetings of the seed commission and shall call a special meeting within seven days if petitioned to do so by two members of the seed commission.
  3. The seed commission shall hold at least two regular meetings each year.

4.1-52-05. Seed commission - Appointment of proxy 🗎 PDF 

If a member of the seed commission is unable to attend a meeting of the commission, the member may appoint a proxy. The appointment must be in writing and must be presented to the chairman. The vote of the proxy is final.

4.1-52-06. Seed commission - Members - Compensation 🗎 PDF 

Each member of the seed commission, except the agriculture commissioner and the director of the agricultural experiment station, is entitled to receive compensation at the rate of one hundred thirty-five dollars per day and reimbursement for expenses, as provided by law for state officers, if the member is attending a commission meeting or performing duties directed by the commission.

4.1-52-07. Seed commission - Powers 🗎 PDF 

The seed commission may:
  1. Establish branch offices and laboratories at locations in this state, other than the campus of North Dakota state university, if the seed commissioner determines that the offices and laboratories are necessary to carry out the duties of the seed commission, the seed commissioner, or the seed department;
  2. Dismiss the seed commissioner for cause;
  3. Appoint an acting seed commissioner if the position becomes vacant; and
  4. Engage in efforts to promote and market certified seed produced in this state.

4.1-52-08. Seed commission - Duties 🗎 PDF 

The seed commission shall:
  1. Appoint a seed commissioner;
  2. Compensate the seed commissioner; and
  3. Review the appointment of a seed commissioner, annually.

4.1-52-09. Seed commissioner - Powers 🗎 PDF 

The seed commissioner may:
  1. Contract with North Dakota state university for the use of facilities and equipment;
  2. Contract with any person for any lawful purpose;
  3. Enter upon real property and access any structure and personal property, at any time, to:
    1. Inspect, sample, and test seeds, potatoes, including seed potatoes, and other commodities for purposes of determining statutory and regulatory compliance; and
    2. Inspect records for purposes of determining statutory and regulatory compliance;
  4. Collect royalty, research, and patent fees; and
  5. Issue phytosanitary certificates if authorized to do so by the United States department of agriculture animal and plant health inspection service or the agriculture commissioner.

4.1-52-10. Seed commissioner - Duties 🗎 PDF 

The seed commissioner shall:
  1. Manage the seed department;
  2. Provide, equip, and maintain offices, laboratories, and any other facilities necessary to carry out this chapter, subject to the approval of the seed commission;
  3. Employ and compensate necessary personnel;
  4. Permit North Dakota state university to use the seed department facilities and the services of the seed department laboratories at convenient times;
    1. Determine the nature and size of any seed and plant samples required by the seed department in order to conduct official tests or make official determinations; and
    2. Prescribe the manner in which the seed and plant samples are to be obtained and delivered to the seed department;
  6. Provide commodity inspection services upon request;
  7. Establish and charge fees for services, subject to the approval of the seed commission;
  8. Provide periodic reports to the seed commission regarding the management and operation of the seed department;
  9. Recommend to the seed commission the annual budget and annual salary schedules for the seed department;
  10. Do all things necessary to enforce the chapters over which the commissioner has authority and the rules implementing those chapters; and
  11. Perform any other duties as directed by the seed commission.

4.1-52-11. Seed department fund - Continuing appropriation 🗎 PDF 

  1. The seed commissioner shall forward all moneys received under the chapters over which the commissioner has authority to the state treasurer for deposit in a special fund known as the seed department fund. All moneys in the seed department fund are appropriated on a continuing basis to the seed department to carry out its statutory and regulatory obligations.
  2. The seed commissioner shall approve all expenditures made pursuant to the chapters over which the commissioner has authority and shall document the expenditures at the time and in the manner required by the office of management and budget.
  3. The seed commissioner shall provide a report to the house and senate appropriations committees of the legislative assembly, at the time and in the manner directed by the chairmen of the committees. The report must contain a summary of the department's activities during the current biennium and a statement of revenues and expenditures for the ensuing biennium.
  4. At the direction of the seed commission, the state treasurer shall invest all available moneys in the seed department fund. The state treasurer shall credit twenty percent of the investment income to the general fund and the remaining eighty percent of the investment income to the seed department fund.

Chapter 53 — Seeds

4.1-53-01. Definitions 🗎 PDF 

In this chapter, unless the context otherwise requires:
  1. "Agricultural seed" means:
    1. The seed of cereal, fiber, forage, grass, or oil crops;
    2. Irish potato seed tubers;
    3. Lawn seed;
    4. Any other seed designated by the seed commissioner as agricultural seed; and
    5. Any mixture of seeds referenced in this subsection.
  2. "Blend" means seed that consists of more than one variety, provided each variety consists of more than five percent of the whole, by weight.
  3. "Brand" means a design, name, number, symbol, or word used to identify the seed of one person and distinguish the seed from that of another person.
  4. "Certification" means a process that:
    1. Is designed to maintain the genetic purity and varietal identity of crop cultivars; and
    2. Requires a variety of components, including:
      1. An examination of records provided by the producer;
      2. An inspection of the field in which the plants producing seed for certification are growing; and
      3. The testing and grading of a representative sample.
  5. "Certified" means a designation that the seed department has authorized a labeler to use on seed that met the requirements for certification.
  6. "Conditioning" means any process to remove unwanted seeds or other matter from a seed lot in order to produce a uniform product.
  7. "Flower seed" means the seed of a herbaceous plant grown for its bloom, ornamental foliage, or other ornamental part.
  8. "Germination" means the physiological process of development and the emergence from the seed embryo of essential structures that are indicative of the ability to produce a normal plant under favorable conditions.
  9. "Hard seed" means a seed that has an impermeable seed coat and has not absorbed water by the end of the prescribed test period.
  10. "Inert matter" means anything other than unbroken seeds.
  11. "Kind" means one or more related species or subspecies known singly or collectively by a common name.
  12. "Label" means a device or tag attached to a seed container, printed or stamped information on a seed container, or written information accompanying a lot of bulk seed.
  13. "Labeler" means the person identified by name and address on the label.
  14. "Lot" means an identifiable quantity of seed that is uniform within permitted tolerances for the factors that appear on its label.
  15. "Mixture" means seed consisting of more than one kind, each in excess of five percent of the whole, by weight.
  16. "Official seed-certifying agency" means:
    1. An agency that is authorized under the laws of a state, territory, or possession to officially certify seed and which has standards and procedures approved by the United States secretary of agriculture to assure the genetic purity and identity of any seed it certifies; or
    2. An agency of a foreign country if the United States secretary of agriculture has determined that the agency adheres to seed certification procedures and standards that are comparable to those generally adhered to by a seed-certifying agency meeting the criteria set forth in subdivision a.
  17. "Prohibited weed seed" means:
    1. The seed or propagule of any weed designated as noxious by the agriculture commissioner in accordance with section 4.1-47-05; or
    2. The seed or propagule of any weed determined by the seed commissioner to be highly destructive and difficult to control by good cultural practices or by the use of herbicides.
  18. "Pure seed" means a quantity of seed that belongs to a particular kind or variety and which does not contain either inert matter or seeds of another kind or variety.
  19. "Record" includes all information relating to origin or source, variety, lot identification, quantity, inspection, processing, testing, labeling, distribution, and file samples of the seed.
  20. "Restricted weed seed" means a seed that is determined by the seed commissioner to be:
    1. Objectionable in agricultural seed, lawn or turf seed, vegetable seed, and flower seed; and
    2. Controllable by good cultural practices or the use of herbicides.
  21. "Selection" means a subgroup of a variety and includes clones, lines, and strains.
  22. "Treated" means a seed has received an application of a substance intended to enhance the performance of the seed or alter a physiological process of the plant.
  23. "Unbroken seed" means a seed that is more than fifty percent intact.
  24. "Variety" means a subdivision of a kind that:
    1. Can be differentiated by one or more identifiable morphological, physiological, or other characteristics from other varieties of the same kind;
    2. Has describable variations in essential and distinct characteristics; and
    3. Will remain unchanged in its essential and distinct characteristics and uniformity when reproduced or reconstituted, as required by the different categories of varieties.

4.1-53-02. Seed department - Location 🗎 PDF 

Repealed by S.L. 2013, ch. 71, § 5.

4.1-53-03. Official seal 🗎 PDF 

Repealed by S.L. 2013, ch. 71, § 5.

4.1-53-04. Seed commission - Membership 🗎 PDF 

Repealed by S.L. 2013, ch. 71, § 5.

4.1-53-05. Seed commission - Chairman - Meetings 🗎 PDF 

Repealed by S.L. 2013, ch. 71, § 5.

4.1-53-06. Seed commission - Appointment of proxy 🗎 PDF 

Repealed by S.L. 2013, ch. 71, § 5.

4.1-53-07. Seed commission - Members - Compensation 🗎 PDF 

Repealed by S.L. 2013, ch. 71, § 5.

4.1-53-08. Seed commission - Powers 🗎 PDF 

Repealed by S.L. 2013, ch. 71, § 5.

4.1-53-09. Seed commission - Duties 🗎 PDF 

Repealed by S.L. 2013, ch. 71, § 5.

4.1-53-10. Seed commissioner - Powers 🗎 PDF 

Repealed by S.L. 2013, ch. 71, § 5.

4.1-53-11. Seed commissioner - Duties 🗎 PDF 

Repealed by S.L. 2013, ch. 71, § 5.

4.1-53-12. Agricultural seed - Label requirements 🗎 PDF 

    1. Agricultural seed offered for sale or sold in this state, for planting purposes, must be labeled.
    2. The requirements of subdivision a extend to agricultural seed used for cover crops.
    1. If the agricultural seed is offered for sale or sold in a container, the label must be plainly printed in English and conspicuously placed on or attached to the container.
    2. If the agricultural seed is offered for sale or sold in bulk, the label must be plainly printed in English and provided to the purchaser at or before the time of delivery.

4.1-53-13. Agricultural seed - Label - Content 🗎 PDF 

A label required by section 4.1-53-12 must include:
  1. The lot number or other lot identification;
    1. The state or foreign country in which the seed was grown; or
    2. A statement indicating that the origin of the seed is unknown;
  3. The percentage by weight of all weed seed;
  4. The name of each restricted weed seed present and its rate of occurrence per pound [453.59 grams], if:
    1. In seeds of grasses and small seeded legumes, the rate of occurrence exceeds thirteen seeds per pound [453.59 grams]; or
    2. In any other agricultural seeds, the rate of occurrence exceeds five seeds per pound [453.59 grams];
  5. The percentage by weight of any other agricultural seeds present;
  6. The percentage by weight of inert matter;
    1. The percentage of germination, exclusive of hard or dormant seed;
    2. The percentage of hard or dormant seed, if applicable; and
    3. The month and year in which the percentages were determined; and
  8. The full name and address of the labeler.

4.1-53-14. Agricultural seed - Label requirements - Treated seed 🗎 PDF 

  1. In addition to any other requirements set forth in this chapter, if the seed has been treated, the label must indicate that the treatment has occurred and must include the commonly accepted, coined, chemical, or abbreviated chemical name of the substance used in the treatment.
    1. If the substance with which the seed was treated is harmful to humans or to other vertebrate animals, the label must contain a cautionary statement prohibiting use of the seed for human or animal consumption.
    2. If the substance with which the seed was treated is a mercurial or a similarly toxic substance, the label must contain a statement and symbol indicating that the substance is poison.
    3. If the substance with which the seed was treated is an inoculant, the label must contain the date beyond which the inoculant is claimed not to be effective for use on that particular seed.
  2. The information required by this section may be placed on a separate label.

4.1-53-15. Agricultural seed - Label requirement - Hermetically sealed containers 🗎 PDF 

In addition to any other label requirements set forth in this chapter, if agricultural seed that is offered for sale or sold is in a container that has been hermetically sealed, the label must so indicate.

4.1-53-16. Agricultural seed - Additional label requirements - Limited applicability 🗎 PDF 

  1. In addition to any other label requirements set forth in this chapter, the label on each container of barley, canola, dry beans, durum, field peas, flax, oats, soybeans, and wheat seed offered for sale or sold in this state for planting purposes must include:
    1. The kind of each agricultural seed;
    2. The variety of each agricultural seed component constituting more than five percent of the whole; and
    3. The percentage by weight of each agricultural seed component constituting more than five percent of the whole.
  2. In addition to any other requirements set forth in this chapter, the label on each container of agricultural seed other than barley, canola, dry beans, durum, field peas, flax, oats, soybeans, and wheat seed offered for sale in this state for planting purposes:
    1. Must include the kind of each agricultural seed;
    2. May include the variety of each agricultural seed component constituting more than five percent of the whole; and
    3. Must include the percentage by weight of each agricultural seed component constituting more than five percent of the whole.

4.1-53-17. Agricultural seed - Selling by brand - Label requirement 🗎 PDF 

The seed of barley, canola, dry beans, durum, field peas, flax, oats, soybeans, and wheat may be sold by brand, provided the true variety name or number is clearly stated on the label.

4.1-53-18. Canola seed - Additional label requirements 🗎 PDF 

In addition to any other requirements set forth in this chapter, if the agricultural seed is canola, the seed must:
  1. Have been certified by the seed commissioner as meeting the standards of this state; or
  2. Have been certified by the appropriate agency of another state or country having canola certification standards that are determined by the seed commissioner to meet or exceed the standards of this state.

4.1-53-19. Agricultural seed components - Label requirements - Mixture or blend - Designation 🗎 PDF 

If more than ten percent of the whole consists of an aggregate of agricultural seed components, each present in an amount not exceeding five percent of the whole, the label must include each component in excess of one percent of the whole named together with the percentage by weight of each. Each component must be listed in the order of its predominance. If more than one component is named, the word "mixture" or "blend" must be stated appropriately with the name of the mixture or blend.

4.1-53-20. Agricultural seed - Sale of small quantities - Container label requirements 🗎 PDF 

If agricultural seed is sold in quantities of five pounds [2.26796 kilograms] or less, the container into which the seed is placed is exempt from the labeling requirements of this chapter provided:
  1. The container from which the seed is taken is in compliance with the labeling requirements of this chapter; and
  2. The seed is removed from the container referenced in subsection 1 and weighed, in the presence of the purchaser.

4.1-53-21. Vegetable seed - Label requirements 🗎 PDF 

  1. Each container of vegetable seed offered for sale or sold in this state, for planting purposes, must be labeled.
  2. The label must be plainly printed in English and placed conspicuously on or attached to the container.

4.1-53-22. Vegetable seed - Label - Content 🗎 PDF 

The label for vegetable seed packed in units of one pound or less and the label for vegetable seed on prepared mats, tapes, or in preplanted containers must include:
  1. The kind and variety of seed;
  2. The lot number or other lot identification;
  3. The full name and address of the labeler;
  4. The month and year in which the germination test was completed; and
    1. The percentage of germination; or
    2. The date by which the seed must be sold, as established in section 4.1-53-52.

4.1-53-23. Vegetable seed - Additional label requirements 🗎 PDF 

If the germination test referenced in section 4.1-53-22 results in a finding that the seed does not meet the standards for germination, as established by the commissioner, the label must include:
  1. The percentage of germination, exclusive of hard seed;
  2. The percentage of hard seed, if present; and
  3. The words "below standard" in at least eight-point type.

4.1-53-24. Vegetable seed - Larger units - Label requirements - Exception 🗎 PDF 

  1. The label for any vegetable seed other than that referenced in section 4.1-53-22 must include:
    1. The lot number or other lot identification;
      1. The kind and variety of vegetable seed present in excess of five percent by weight;
      2. The percentage by weight of each seed referenced in paragraph 1, in order of its predominance;
      3. The percentage of germination for each seed referenced in paragraph 1, exclusive of hard seed;
      4. The percentage of hard seed, if present; and
      5. The month and year that the percentages were determined; and
    3. The full name and address of that labeler.
  2. If vegetable seed is sold in quantities of five pounds [2.26796 kilograms] or less, the container into which the seed is placed is exempt from the labeling requirements of this chapter provided:
    1. The container from which the seed is taken is in compliance with the labeling requirements of this chapter; and
    2. The seed is removed from the container referenced in subsection 1 and weighed, in the presence of the purchaser.

4.1-53-25. Vegetable seed - Quantity - Label requirement 🗎 PDF 

If the vegetable seeds are on a mat, on tape, or in some other germination medium, and the quantity of seed cannot be readily determined, the label must include the minimum number of seeds per definable unit.

4.1-53-26. Vegetable seed - Label requirements - Treated seed 🗎 PDF 

  1. In addition to any other requirements set forth in this chapter, if the vegetable seed has been treated, the label must indicate that the treatment has occurred and must include the commonly accepted, coined, chemical, or abbreviated chemical name of any substance used in the treatment.
  2. If the substance with which the seed was treated is harmful to humans or to other vertebrate animals, the label must contain a cautionary statement prohibiting use of the seed for human or animal consumption.
  3. If the substance with which the seed was treated is a mercurial or a similarly toxic substance, the label must contain a statement and symbol indicating that the substance is poison.
  4. If the substance with which the seed was treated is an inoculant, the label must contain the date beyond which the inoculant is claimed not to be effective on that particular seed.
  5. The information required by this section may be placed on a separate label.

4.1-53-27. Vegetable seed - Label requirement - Hermetically sealed containers 🗎 PDF 

In addition to any other label requirements set forth in this chapter, if vegetable seed that is offered for sale or sold is in a container that has been hermetically sealed, the label must so indicate.

4.1-53-28. Flower seed - Label requirements 🗎 PDF 

  1. Each container of flower seed offered for sale or sold in this state, for planting purposes, must be labeled.
  2. The label must be plainly printed in English and conspicuously placed on or attached to the container.

4.1-53-29. Flower seed - Label - Content 🗎 PDF 

  1. The label for flower seed must include:
      1. The kind and variety; or
      2. The information required by rule with respect to type and performance characteristics;
      1. The month and year in which the seed was tested; or
      2. The year for which the seed was packaged; and
    3. The full name and address of the labeler.
  2. If the flower seed is packed in units of more than one pound [453.59 grams], the label must also include the lot number or other lot identification, unless the flower seed is on prepared mats, on tapes, or in preplanted containers.
  3. If the flower seed is of a kind for which standard testing procedures are prescribed by the association of official seed analysts, the label must also include:
    1. The percentage of germination exclusive of hard seed; and
    2. The percentage of hard seed, if present.
  4. If the flower seed is of a kind for which standard testing procedures are prescribed by the association of official seed analysts and if the seed does not meet the standard for germination required by rule, the label must also include the percentage of germination exclusive of hard seeds and the words "below standard" in at least eight-point type.

4.1-53-30. Flower seed - Quantity - Label requirement 🗎 PDF 

If the flower seeds are on a mat, on tape, or in some other germination medium and the quantity of seed cannot be readily determined, the label must include the minimum number of seeds per definable unit.

4.1-53-31. Flower seed - Label requirements - Treated seed 🗎 PDF 

  1. In addition to any other requirements set forth in this chapter, if the flower seed has been treated, the label must indicate that the treatment has occurred and must include the commonly accepted, coined, chemical, or abbreviated chemical name of the substance used in the treatment.
    1. If the substance with which the flower seed was treated is harmful to humans or to other vertebrate animals, the label must contain a cautionary statement prohibiting use of the seed for human or animal consumption.
    2. If the substance with which the seed was treated is a mercurial or a similarly toxic substance, the label must contain a statement and symbol indicating that the substance is poison.
    3. If the substance with which the seed was treated is an inoculant, the label must contain the date beyond which the inoculant is claimed not to be effective on that particular seed.
  2. The information required by this section may be placed on a separate label.

4.1-53-32. Tree seed and shrub seed - Label requirements 🗎 PDF 

    1. Each container of tree seed or shrub seed offered for sale or sold in this state, for planting purposes, must be labeled.
    2. The label must be plainly printed in English and conspicuously placed on or attached to the container.
  2. If seed is supplied in fulfillment of a contract for the collection and gathering of the seed, the label requirements of this section may be met by an analysis tag attached to the invoice if each container is clearly identified by a lot number stenciled on the container or if the seed is in bulk.
  3. If the seed is offered for sale or sold in bulk, the label must be provided to the purchaser at or before the time of delivery.

4.1-53-33. Tree seed and shrub seed - Label - Content 🗎 PDF 

A label required by this section must include:
  1. The common name of the tree or shrub species and, if appropriate, the name of the subspecies;
  2. The scientific name of the genus, the species, and, if appropriate, the name of the subspecies;
  3. The lot number or other lot identification;
  4. The elevation at which or the upper and lower elevations within which the seed was collected;
  5. The percentage of pure seed by weight; and
  6. The full name and address of the labeler.

4.1-53-34. Tree seed and shrub seed - Label - Statement of origin 🗎 PDF 

In addition to any other label requirements set forth in section 4.1-53-33, the label of tree seed or shrub seed must identify the location from which the seeds were collected by:
  1. Latitude and longitude; or
  2. County or township.

4.1-53-35. Tree seed and shrub seed - Label requirements - Percentage of germination 🗎 PDF 

  1. If the tree seed or shrub seed belongs to a species for which standard germination testing procedures are prescribed by the association of official seed analysts, the label must include:
      1. The percentage of germination, exclusive of hard seed;
      2. The percentage of hard seed; and
      3. The month and year in which the percentage of germination was determined; or
    2. A statement indicating that the test to determine the percentage of germination is not yet completed and that the results will be supplied upon request.
  2. If the tree seed or shrub seed belongs to a species for which standard germination testing procedures are not prescribed, the label must include the year in which the seed was collected.

4.1-53-36. Tree seed and shrub seed - Label requirements - Treated seed 🗎 PDF 

  1. In addition to any other requirements set forth in this chapter, if the tree seed or shrub seed has been treated, the label must indicate that the treatment has occurred and must include the commonly accepted, coined, chemical, or abbreviated chemical name of any substance used in the treatment.
  2. If the substance with which the seed was treated is harmful to humans or to other vertebrate animals, the label must contain a cautionary statement prohibiting use of the seed for human or animal consumption.
  3. If the substance with which the seed was treated is a mercurial or a similarly toxic substance, the label must contain a statement and symbol indicating that the substance is poison.
  4. If the substance with which the seed was treated is an inoculant, the label must contain the date beyond which the inoculant is claimed not to be effective for use on that particular seed.

4.1-53-37. Tolerances 🗎 PDF 

  1. To determine correctness and accuracy in labeling seed as required by this chapter, the seed commissioner shall:
    1. Apply the tolerances established by the Federal Seed Act of August 9, 1939 [53 Stat. 1275; 7 U.S.C. 1551 et seq.], as amended through August 6, 2020; or
    2. Establish stricter tolerances by rule.
  2. Notwithstanding subsection 1, the tolerance for yellow starthistle is zero.

4.1-53-38. Seed sales permit - Reports - Fees - Civil penalty 🗎 PDF 

  1. Before a resident or nonresident person in this state may label or sell agricultural, vegetable, flower, or tree or shrub seed and before a person may label agricultural, vegetable, flower, or tree or shrub seed for delivery into this state, the person shall obtain a seed sales permit from the seed commissioner.
  2. A permit issued under this section applies to employees and agents of the permitholder.
  3. Each person issued a seed sales permit under this section shall:
    1. Record all seeds sold by that person in this state;
    2. Report all seeds sold by that person in this state to the seed commissioner at the time and in the manner determined by the seed commissioner; and
    3. Submit at the time and in the manner determined by the seed commissioner, fees in the amount set by the seed commissioner and applicable to all seeds that the person sells in this state.
  4. If a person issued a seed sales permit under this section fails to submit the reports or fees required by this section within thirty days of the date determined by the seed commissioner, the seed commissioner may assess a penalty.

4.1-53-39. Invoice and records 🗎 PDF 

A labeler shall:
  1. Retain a record of each lot of seed handled for three years after final disposition of the lot;
  2. Retain a file sample of each lot of seed handled for one year after final disposition of the lot; and
  3. Make the records and file samples required by this section available to the seed commissioner upon request.

4.1-53-40. Shipments from out of state - Label requirements 🗎 PDF 

The purchaser, vendor, or any other person receiving seed shipped into this state must have the seed labeled:
  1. In accordance with this chapter; or
  2. If permitted by the seed commissioner, in accordance with requirements applicable in other jurisdictions.

4.1-53-41. Nonresident seed dealer's license 🗎 PDF 

Repealed by S.L. 2021, ch. 68, § 7.

4.1-53-42. Certified seed - Establishment of certification system 🗎 PDF 

  1. The seed commissioner shall establish a seed certification system for this state.
  2. The seed certification system must include standards of quality for any lot or stock of seed that may be or may become eligible for field inspection or for final certification.
  3. The seed commissioner shall make the requirements for seed certification readily available in electronic and printed formats.

4.1-53-43. Requests for certification - Required submissions 🗎 PDF 

  1. Any person may submit kinds, varieties, selections, and names of seed stock and request that the seed commissioner consider the submission for certification.
  2. To pursue certification, a person shall provide to the seed commissioner:
    1. The name of the variety;
    2. A statement regarding the variety's origin and the breeding procedure or reproductive stabilization used in its development;
    3. A description of the morphological, physiological, or other characteristics that distinguish the variety from other varieties;
    4. Evidence supporting the identity of the variety;
    5. A statement regarding the geographic area of adaptation;
    6. A statement regarding plans and procedures for the maintenance of seed classes, including the number of generations through which the variety may be multiplied;
    7. A description of the manner in which the variety is constituted when a particular cycle of reproduction or multiplication is specified;
    8. Any additional restrictions on the variety specified by the breeder; and
    9. A sample of seed that is representative of the variety as marketed.

4.1-53-44. Certified seed - Specific label requirements 🗎 PDF 

The seed commissioner shall prescribe the labels, seals, certificates, and statements that must be used for, or in relation to, any seed, or the various kinds and qualities grown, handled, stored, offered for sale, or sold in this state as "breeders", "foundation", "registered", or "certified" seed, and shall specify the words and information required to be on the labels, seals, certificates, and seed containers.

4.1-53-45. Certified seed - Use of certain terms - Required authorization 🗎 PDF 

A person may not use the terms "breeders", "foundation", "registered", or "certified", and may not use substantially equivalent terms, in the labeling or in the advertising, characterization, or representation of seed that is offered for sale or sold in this state, unless authorized to do so by the seed commissioner. The prohibition of this section applies to oral and written forms of advertising, characterizations, and representations.

4.1-53-46. Seed conditioning facilities - Other facilities - Standards 🗎 PDF 

The seed commissioner may establish standards for:
  1. Seed conditioning facilities and any other facilities that handle seed eligible for certification; and
  2. Facilities that handle and market "breeders", "foundation", "registered", or "certified" seed.

4.1-53-47. Seed for certification purposes - Increase in foundation seed stocks 🗎 PDF 

The seed commissioner may participate with any public or private entity in the selection, testing, and production of seed for certification purposes and in efforts to increase foundation seed stocks suitable for the production of certified seed.

4.1-53-48. Plant Variety Protection Act - Requirements for certification 🗎 PDF 

  1. If a certificate of plant variety protection issued under the Plant Variety Protection Act [7 U.S.C. 2121 et seq.], as amended through July 31, 2022, specifies that the variety may be sold only as a class of certified seed, that seed must be certified by an official seed-certifying agency before it can be advertised for sale, offered for sale, or sold.
  2. Seed from a certified lot may be used in a blend or mixture by or with the approval of the owner of the variety.

4.1-53-49. Identity-preserved seed and crops - Determination of genetic traits 🗎 PDF 

  1. The seed commissioner may inspect and analyze seed or crops grown, sold, or otherwise present in this state to determine and verify the genetic traits of the seed or the crops.
  2. For purposes of conducting the inspection, analysis, or verification, the seed commissioner may:
    1. Accept samples of seed or crops grown in this state, sold in this state, or otherwise present in this state from any person that owns the seed or crops; and
    2. Upon request of the owner, obtain samples of the seed or crops.

4.1-53-50. Identity-preserved seed and crops - Verification and certification services 🗎 PDF 

The seed commissioner may establish programs and procedures to provide producers with customized verification and certification services pertaining to identity-preserved seed and crops.

4.1-53-51. Sale of seed - Prohibitions 🗎 PDF 

A person may not offer for sale or sell any seed that:
  1. Is not labeled in accordance with the requirements of this chapter;
  2. Is labeled with information the person knows is false or misleading;
  3. Is designated, represented, or advertised as having a variety name other than that by which the seed was originally known;
  4. Contains restricted weed seeds in excess of twenty-five seeds per pound [453.59 grams];
  5. Exceeds the stated tolerances for noxious weed seeds; or
  6. Contains weed seeds in excess of one percent by weight.

4.1-53-52. Germination test - Requirement for sale 🗎 PDF 

    1. Except as provided in subsection 4, a person may not offer for sale or sell any agricultural seed unless:
      1. The seed has been tested to determine the percentage of germination; and
      2. The period of time between the first day of the month following that in which the germination test was completed and the date on which the seed is offered for sale or sold does not exceed nine months.
    2. Subdivision a is not applicable to lawn and turf grasses.
    1. Except as provided in subsection 4, a person may not offer for sale or sell any flower, vegetable, grass, or forb seed unless:
      1. The seed has been tested to determine the percentage of germination; and
      2. The period of time between the first day of the month following that in which the germination test was completed and the date on which the seed is offered for sale or sold does not exceed twelve months.
    2. Subdivision a is not applicable to lawn and turf grasses.
  3. Except as provided in subsection 4, a person may not offer for sale or sell any lawn and turf grass seed, or any blends or mixtures of lawn and turf grass seed, unless:
    1. The seed has been tested to determine the percentage of germination; and
    2. The period of time between the first day of the month following that in which the germination test was completed and the date on which the seed is offered for sale or sold does not exceed fifteen months.
  4. A person may not offer for sale or sell any agricultural, flower, vegetable, or tree or shrub seed in hermetically sealed packages unless:
    1. The seed has been tested to determine the percentage of germination; and
    2. The period of time between the first day of the month following that in which the germination test was completed and the date on which the seed is offered for sale or sold does not exceed thirty-six months.

4.1-53-53. Prohibited activities 🗎 PDF 

A person may not:
  1. Detach, alter, deface, or destroy any label provided for in this chapter;
  2. Alter or substitute seed with the intent to defeat the purpose of this chapter;
  3. Engage in false or misleading advertising regarding seeds;
  4. Use the name of the seed department or the name of the official laboratory for advertising purposes in connection with seed analyzed or tested by the seed department or the official laboratory, except in the case of certified seed;
  5. Fail to comply with a stop-sale order issued by the seed commissioner;
  6. Use the words "type" or "trace" on a label in connection with the name and description of any seed;
  7. Disclaim in any manner or form a vendor's responsibility for any label content required by law; or
  8. Sell or transfer a protected variety to another producer for the purpose of planting without obtaining the approval of the variety owner or developer.

4.1-53-54. Stop-sale order - Issuance - Enforcement - Appeal 🗎 PDF 

  1. The seed commissioner may issue a written stop-sale order to the owner or custodian of any lot of seed that the seed commissioner finds to be in violation of this chapter.
  2. The seed commissioner may attach terms and conditions that must be fulfilled before the order will be lifted.
  3. The stop-sale order shall remain in effect until the seed commissioner is satisfied that the violation no longer exists. Upon making that determination, the seed commissioner shall lift the stop-sale order.
  4. The seed commissioner shall do all things necessary and proper to enforce a stop-sale order issued under this section.
  5. Any person subject to a stop-sale order under this section may appeal the order to a court of competent jurisdiction.

4.1-53-55. Seizure and injunction - Action 🗎 PDF 

  1. If the seed commissioner determines that any lot of seed is not in compliance with this chapter, the seed commissioner may petition a court of competent jurisdiction for seizure of the seed. If the court orders the condemnation of the seed, it must be denatured, processed, destroyed, relabeled, or otherwise disposed of in accordance with the laws of this state.
  2. A court may not order disposition of the seed without first having given the owner an opportunity to apply to the court for release of the seed, or for permission to process or relabel the seed in compliance with this chapter.
  3. Any violation of this chapter may be enjoined in a court of competent jurisdiction without bringing any other civil or criminal action.

4.1-53-56. Prosecution for violations - Duty of attorney general and state's attorney 🗎 PDF 

Repealed by S.L. 2011, ch. 70, § 23.

4.1-53-57. Penalty - Criminal - Civil - Exemption 🗎 PDF 

  1. Any person willfully violating this chapter or the rules implementing this chapter is guilty of a class A misdemeanor.
  2. When construing and enforcing this chapter, the act, omission, or failure of any officer, agent, or other person acting for or employed by any person must be deemed to be the act, omission, or failure of such person as well as that of the person employed.
  3. Any person found guilty of violating this chapter or the rules implementing this chapter is subject to a civil penalty in an amount not to exceed ten thousand dollars for each violation. The civil penalty may be imposed by the seed commissioner. The seed commissioner may make application to the district court to compel payment of civil penalties imposed under this section.
  4. A person is not subject to the penalties of this chapter for having offered for sale or sold any seed that was incorrectly represented as to kind, variety, or origin and which could not be identified through examination, unless the person failed to:
    1. Obtain an invoice or grower's declaration stating the required information; or
    2. Take other actions necessary to ensure that the seed was properly identified.

4.1-53-58. Certificates and reports - Publication 🗎 PDF 

If the seed commissioner signs a document relating to the findings and determinations made in a laboratory by seed department personnel, a court shall accept the document as prima facie evidence of the statements contained in the document. The seed commissioner is subject to court order for a review of the findings and determinations set forth in the document.

4.1-53-59. Liability of seed commission, seed department, seed commissioner, and certified or noncertified agricultural seed producers 🗎 PDF 

A warranty of any kind, either expressed or implied, including a warranty of merchantability, fitness for a particular purpose, varietal identity, or absence of disease, is not made by the seed commission, the seed department, the seed commissioner, or certified or noncertified seed producers as to the quantity or quality of the crop produced from the seeds or as to other produce, which is inspected and certified, except as provided in this section. The sole warranty made is that the seeds were inspected under the rules of the seed department or the United States department of agriculture. The seed commissioner functions and serves only in an official regulatory manner.

4.1-53-60. Seed department records - Exemption 🗎 PDF 

The following records of the seed department are exempt from section 44-04-18:
  1. Records of any plant or seed analysis, testing, and variety or disease determination conducted by the seed department on a fee-for-service basis for private persons; and
  2. Information that is received by the seed department under this chapter from a private person and which the private person determines is proprietary information or a trade secret.

4.1-53-61. Applicability of chapter 🗎 PDF 

This chapter does not apply to:
  1. Seed that is not intended for planting purposes; and
  2. Seed grown by a producer and sold by that producer without advertising and without using a third party as an agent or broker to effect the sale, provided this exemption is not applicable if the seed is a variety protected by the Plant Variety Protection Act [7 U.S.C. 2321 et seq.], as amended through July 31, 2022.

4.1-53-62. Seed department fund - Continuing appropriation 🗎 PDF 

Repealed by S.L. 2013, ch. 71, § 5.

Chapter 54 — Seed Arbitration Board

4.1-54-01. Seed arbitration board - Membership 🗎 PDF 

The seed arbitration board consists of the following members:
  1. The agriculture commissioner;
  2. The seed commissioner;
  3. The director of the North Dakota state university extension service;
  4. The director of the North Dakota agricultural experiment station;
  5. The chairman of the seed trade division of the North Dakota agriculture association; and
  6. A producer appointed by the agriculture commissioner.

4.1-54-02. Seed arbitration board - Compensation 🗎 PDF 

The chairman of the seed division of the North Dakota agriculture association and the producer are entitled to receive compensation in the amount of one hundred thirty-five dollars per day plus reimbursement for expenses as provided by law for state officials, if the individual is attending meetings or performing duties directed by the board. The compensation and reimbursement for expenses required by this section must be paid by the agriculture commissioner.

4.1-54-03. Seed arbitration board - Rules of operation and procedure 🗎 PDF 

The seed arbitration board shall adopt rules of operation and procedure for arbitration hearings, including a formula for reimbursement by the parties of the expenses of the arbitration process.

4.1-54-04. Seed arbitration board - Petition - Hearing - Recommendation 🗎 PDF 

  1. A seed labeler, seed dealer, or seed customer may file with the agriculture commissioner a petition for a hearing to settle a dispute involving a seed transaction.
  2. The agriculture commissioner shall forward the petition to the seed arbitration board.
  3. The seed arbitration board shall hold a hearing and within thirty days issue a nonbinding recommendation for a resolution of the dispute.

4.1-54-05. Seed arbitration board - Hearing - Use of evidence 🗎 PDF 

Any evidence and testimony presented at a seed arbitration hearing and any findings or recommendations by the seed arbitration board are admissible in any subsequent proceeding.

Chapter 55 — Seed Potatoes

4.1-55-01. Definitions 🗎 PDF 

In this chapter, unless the context otherwise requires:
  1. "Certification" means a process that includes the random inspection of potato plants growing in the field, the random inspection of seed potatoes after they have been harvested, and a determination that the seed potatoes are within acceptable disease tolerance levels.
  2. "Certified" means a designation, the use of which is authorized by the seed commissioner, to indicate that the seed potatoes have met the requirements for certification.
  3. "Closed container" means a container that is sewn, tied, sealed, glued, nailed, or otherwise secured for handling.
  4. "Inspection" means the examination of a random sample of potato plants or potato tubers in accordance with rules of the seed department or requirements of the United States department of agriculture.
  5. "Label" means a tag or device attached to a container, stamped or printed information on a container, or documentation accompanying a container, which sets forth the information required by law.
  6. "Potato" means an Irish potato.
  7. "Selection" means a subgroup of a potato variety and includes clones, lines, strains, and sports.
  8. "Variety" means a subdivision of a kind that:
    1. Can be differentiated by one or more identifiable morphological, physiological, or other characteristics from other varieties of the same kind;
    2. Has describable variations in essential and distinct characteristics; and
    3. Will remain unchanged in its essential and distinct characteristics and uniformity when reproduced or reconstituted, as required by the different categories of varieties.

4.1-55-02. Seed commissioner - Duties 🗎 PDF 

The seed commissioner shall:
  1. Establish a system for the certification of seed potatoes; and
  2. Provide for grade inspections of commercial potatoes in accordance with standards established by the United States department of agriculture or by contract.

4.1-55-03. Seed potato grades 🗎 PDF 

  1. Seed potatoes may be graded:
      1. U.S. No. 1 seed potatoes;
      2. U.S. No. 2 seed potatoes; or
      3. North Dakota Certified Seed; or
    2. As otherwise designated by the seed commissioner.
  2. The U.S. grades must meet all of the requirements and standards established by the United States department of agriculture provided, however, that the seed commissioner may authorize an exception based on size.

4.1-55-04. Label requirements 🗎 PDF 

    1. Except as otherwise provided in this subsection, every container of seed potatoes must be labeled if the potatoes:
      1. Were grown in this state;
      2. Are transported or shipped into this state; or
      3. Are offered for sale or consignment in this state.
    2. Subdivision a does not apply to potatoes that are not intended for planting purposes.
  2. The label must:
    1. Be plainly printed in English;
    2. Indicate the net weight when packed;
    3. Indicate the correct grade or designation; and
    4. Meet any other criteria established by the seed commissioner.

4.1-55-05. Seed potatoes - Certification - Exception 🗎 PDF 

1.a.A person may not plant seed potatoes unless the seed potatoes:
  1. Have been certified by the seed commissioner as meeting the standards of this state;
  2. Have been certified by another state or province having seed potato standards that are determined by the seed commissioner to meet or exceed the standards of this state; or
  3. At the request of the producer, were field inspected and approved for planting by the seed commissioner.
  • Subdivision a does not apply to a person who:
    1. Plants less than one acre [.405 hectare] of seed potatoes; or
    2. Is within twelve months of having that person's own certified parent seed potatoes.
  • The seed commissioner shall permit a North Dakota producer to sell or otherwise transfer certified seed potatoes to another North Dakota producer. The recipient producer may plant the seed potatoes only for commercial production. The seed potatoes may not be recertified or retained for use in the following production cycle.
    1. If the seed commissioner determines that seed potatoes meeting the requirements of this section are not available in sufficient quantities to fulfill planting needs, the seed commissioner may permit the planting of seed potatoes with a higher disease content, provided that bacterial ring rot is not present and that no other serious disease threat is posed.
    2. For purposes of this section, a "North Dakota producer" means a person that grows potatoes on property located within this state.

    • 4.1-55-06. Records 🗎 PDF 

    Any producer that plants more than one acre [.405 hectare] of seed potatoes shall maintain records indicating the acreage [hectarage], varieties, and source of all seed potatoes planted. The producer shall retain the records for a period of two years from the completion of planting and make the records available to the seed commissioner upon request.

    4.1-55-07. Imported seed potatoes - Certification requirement 🗎 PDF 

    All seed potatoes brought into this state must be accompanied by:
    1. A grade certificate;
    2. A health certificate indicating that the seed potatoes were field inspected by an official certifying agency and meet standards that are determined by the seed commissioner to be similar to those established by this chapter; and
    3. Any other documentation required by the jurisdiction of origin for seed potatoes entering that jurisdiction.

    4.1-55-08. Exported seed potatoes - Certification requirement 🗎 PDF 

    All seed potatoes leaving this state must be accompanied by:
    1. A grade certificate; and
    2. If required by the receiving jurisdiction, a health certificate.

    4.1-55-09. Official inspection locations - Designation 🗎 PDF 

    1. The seed commissioner shall designate the locations at which potato shipment inspections are conducted. In determining the locations, the seed commissioner shall consider the volume of shipments requiring inspection and the expense of maintaining the locations.
    2. Upon request, the seed commissioner may provide inspection services at locations other than those designated in subsection 1. The seed commissioner may charge a fee for conducting any inspections requested under this subsection.

    4.1-55-10. Potatoes shipped into state - Labeling requirement - Exception 🗎 PDF 

    If seed potatoes are shipped into this state, the person receiving the potatoes shall ensure that the potatoes are labeled:
    1. In the same manner as required for potatoes grown in this state; or
    2. In accordance with the requirements of the state, territory, or country of origin, if permitted by the seed commissioner.

    4.1-55-11. Grade inspection certificate - Prima facie evidence 🗎 PDF 

    A grade inspection certificate issued by the seed commissioner is prima facie evidence that the seed potatoes described in the certificate were of the grade, quality, and condition indicated on the certificate at the time of inspection.

    4.1-55-12. Liability - Potato crop quantity and quality 🗎 PDF 

    A warranty of any kind, either expressed or implied, including a warranty of merchantability, fitness for a particular purpose, absence of disease, varietal identity, or selection identity, is not made by the seed commission, the seed department, the seed commissioner, or any certified seed potato producer, as to the quantity or quality of the crop produced from the seed potatoes that were inspected and certified. The sole warranty is that the potatoes were inspected under the rules of the seed department or the United States department of agriculture. The seed commissioner functions and serves only in an official regulatory manner.

    4.1-55-13. Plant and seed records - Exempt 🗎 PDF 

    The following records of the seed commission are exempt from section 44-04-18:
    1. Records of any plant or seed inspection, analysis, or testing and germination, purity, variety, or disease determinations conducted by the seed department on a fee-for-service basis for nonpublic entities or persons; and
    2. Information received by the seed commissioner under this chapter from a nonpublic entity or person that the nonpublic entity or person determines is proprietary information or a trade secret.

    4.1-55-14. Prohibitions 🗎 PDF 

    1. A person may not offer for sale, sell, transport, or ship any seed potatoes that:
      1. Are not labeled in accordance with this chapter; or
      2. Are labeled with information the person knows is false or misleading.
    2. A person that sells seed may not alter the label or a grade inspection certificate issued by the seed commissioner.

    4.1-55-15. Seizure of seed potatoes - Liability 🗎 PDF 

    1. The seed commissioner may seize any seed potatoes, if the seed commissioner believes that the seed potatoes are mislabeled.
    2. The seed commissioner may hold any seed potatoes seized under this section until they are:
      1. Graded or reconditioned to meet the claims on their label; or
      2. Properly relabeled.
    3. The seed commissioner is not liable for any loss or damage, or any other costs due to seizure when acting in accordance with this chapter and any applicable rules.
    4. A person aggrieved by a seizure under this section may request a hearing pursuant to chapter 28-32.

    4.1-55-16. Enforcement - Hearing 🗎 PDF 

    1. If the seed commissioner believes that a violation of this chapter or the rules implementing this chapter may have occurred, the seed commissioner may hold a hearing.
    2. If based on the testimony and evidence presented at the hearing the seed commissioner determines that a violation has occurred or if the person involved fails to appear, the seed commissioner may impose the civil penalty provided for in this chapter or consult with the attorney general regarding the institution of further legal proceedings.

    4.1-55-17. Penalties 🗎 PDF 

    1. Any person willfully violating this chapter is guilty of a class A misdemeanor.
    2. Any person willfully violating this chapter is subject to a civil penalty in an amount not exceeding ten thousand dollars for each violation. The civil penalty may be imposed by the seed commissioner. The seed commissioner may make application to the district court to compel payment of civil penalties imposed under this section.

    4.1-55-22.1. Facility operations and maintenance costs 🗎 PDF 

    Repealed by S.L. 2019, ch. 54, § 13.

    Chapter 56 — Seed Potato Control Areas

    4.1-56-01. Definition 🗎 PDF 

    As used in this chapter, unless the context otherwise requires, "potato" means an Irish potato.

    4.1-56-02. Seed potato control area - Proposal - Notice of meeting 🗎 PDF 

    1. In order to form a seed potato control area, five individuals who own land within the proposed area shall schedule and provide notice of a meeting that is open to all landowners and occupants in the proposed area.
      1. The notice must define the boundaries of the proposed seed potato control area.
      2. The notice must be published at least twice, for two successive weeks, in the official newspaper of each county containing land in the proposed seed potato control area.
    2. If consented to by a majority of the landowners and occupants present at the meeting, a petition to form a seed potato control area may be circulated among all landowners in the proposed area.

    4.1-56-03. Seed potato control area - Petition for formation 🗎 PDF 

    The petition to be circulated, as provided in section 4.1-56-02, must:
    1. Describe the boundaries of the proposed seed potato control area; and
    2. State the quality of seed that may be planted within the proposed seed potato control area.

    4.1-56-04. Seed potato control area - Creation 🗎 PDF 

    1. Once the petition has been signed by at least eighty percent of the persons owning land in the proposed seed control area, the petition may be presented to the seed commissioner for approval.
    2. If the seed commissioner determines that the petition meets the requirements of this chapter, the seed commissioner may order the creation of:
      1. The seed potato control area as described in the petition; or
      2. A seed potato control area having boundaries that are not as extensive as those set forth in the petition.
      1. In the order establishing the seed potato control area, the seed commissioner shall prescribe the quality of seed potatoes that may be planted within the control area. The quality prescribed may differ from that set forth in the petition.
      2. After the establishment of a seed potato control area, the seed commissioner may issue an order changing the quality of seed potatoes that may be planted within the control area.

    4.1-56-05. Seed potato control area - Governance committee 🗎 PDF 

    1. Each seed potato control area must be governed by a committee consisting of three individuals who are appointed by the seed commissioner from a list of landowners or occupants within the control area.
    2. The terms of office for members of the governance committee and its rules of operation must be provided for in the seed potato control area's bylaws and agreed to by at least eighty percent of the landowners or occupants within the control area.
    3. If fewer than three qualified individuals are willing or able to serve as members of the governance committee, the governance committee shall consist of the lesser number. If, however, no qualified individual is willing or able to serve on the governance committee, the seed commissioner shall dissolve the seed potato control area.

    4.1-56-06. Governance committee - Powers 🗎 PDF 

    The governance committee may:
    1. Expend moneys collected pursuant to this chapter;
    2. Employ and compensate necessary personnel;
    3. Accept gifts, grants, and donations of money, property, and services to carry out this chapter; and
    4. Do all things necessary and proper to enforce this chapter and any rules adopted to implement this chapter.

    4.1-56-07. Governance committee - Duties 🗎 PDF 

    The governance committee shall:
    1. Keep a record of its expenses;
    2. Submit the record to the seed commissioner at the time and in the manner required by the seed commissioner; and
    3. Provide reports at the time and in the manner required by the seed commissioner.

    4.1-56-08. Prohibition 🗎 PDF 

    A person may not plant or authorize the planting of seed potatoes other than those permitted within the seed potato control area.

    4.1-56-09. Assessment 🗎 PDF 

    1. The governance committee may impose an assessment at a rate determined by the committee, but not exceeding two and one-half cents per hundredweight [45.36 kilograms] on all seed potatoes produced within the control area.
    2. Any person producing seed potatoes within the control area shall pay the assessment at the time and in the manner required by the governance committee.

    4.1-56-10. Shipment of potatoes - Payment of assessment 🗎 PDF 

    A person producing seed potatoes in a seed potato control area may not ship or transport the seed potatoes out of the area unless the person pays the assessment provided for in this chapter.

    4.1-56-11. Seed commissioner - Orders 🗎 PDF 

    The seed commissioner may by order:
    1. Alter the boundaries of the seed potato control area;
    2. Assign additional powers and duties to the governance committee;
    3. Prescribe requirements for seed selection, seed treatment, field isolation, cultural practices, disease removal, and insect control;
    4. Prescribe requirements for the governance committee with respect to seed potato control efforts;
    5. Prescribe or authorize seed quality for use within the control area;
    6. Provide for the inspection, testing, and approval of seed to be used within the control area; and
    7. Set forth additional requirements or prohibitions with respect to activities within the seed potato control area.

    4.1-56-12. Seed potato control area - Dissolution 🗎 PDF 

    Upon a showing of good cause, or as otherwise authorized by this chapter, the seed commissioner may order the dissolution of a seed potato control area.

    4.1-56-13. Penalty 🗎 PDF 

    1. Any person willfully violating this chapter is guilty of a class A misdemeanor.
    2. Any person willfully violating this chapter is subject to a civil penalty in an amount not exceeding ten thousand dollars for each violation. The civil penalty may be imposed by a court in a civil proceeding or by the seed commissioner.

    Chapter 57 — Potato Dealers

    4.1-57-01. Definitions 🗎 PDF 

    In this chapter, unless the context otherwise requires:
    1. "Potato" means an Irish potato.
    2. "Wholesale potato dealer" means any person who:
      1. Buys potatoes in wholesale lots directly from a producer or a producer cooperative;
      2. Sells or handles potatoes in wholesale lots for the purpose of processing or resale; or
      3. Handles potatoes on account of or as an agent for another.

    4.1-57-02. Wholesale potato dealer - License required 🗎 PDF 

    Before a person may engage in the business of a wholesale potato dealer, the person must be licensed by the seed commissioner.

    4.1-57-03. Application for license - Content 🗎 PDF 

    To obtain a license as a wholesale potato dealer, a person must complete an application and submit it to the seed commissioner. The application must be signed by the applicant and notarized and must include:
    1. The location in which the applicant intends to operate as a wholesale potato dealer;
    2. The estimated dollar amount of business to be done monthly;
    3. The dollar amount of business done the preceding year, if any;
    4. The greatest volume of potatoes, by hundredweight, purchased during any one month in the preceding calendar year;
    5. The greatest value of potatoes purchased during any one month in the preceding calendar year;
    6. The name of each partner if the applicant is a partnership;
    7. The name of each corporate officer and the state of incorporation if the applicant is a corporation;
    8. The name of each manager and the state of organization if the applicant is a limited liability company;
    9. The name of every agent employed by the applicant on the date of the application;
    10. A financial statement prepared in accordance with generally accepted accounting principles showing the assets and liabilities of the applicant;
    11. A list of similar licenses issued to the applicant by other states; and
    12. The name of each state that has:
      1. Refused to issue the applicant a wholesale potato dealer's license;
      2. Suspended or revoked a wholesale potato dealer's license that had been issued to the applicant;
      3. Refused to issue a wholesale potato dealer's license to an agent of the applicant; or
      4. Suspended or revoked a wholesale potato dealer's license that had been issued to an agent of the applicant.

    4.1-57-04. Application for license - Required security 🗎 PDF 

    1. As a condition of licensure, the seed commissioner shall require an applicant to file:
      1. A cash bond or a surety bond, in an amount and form determined by the seed commissioner; or
      2. An irrevocable letter of credit.
    2. The security required by the seed commissioner under subsection 1 is for the benefit of potato producers in this state and must be conditioned for the payment of any financial obligation owed by a wholesale potato dealer to a potato producer in this state.

    4.1-57-05. Termination of bond - Notice to seed commissioner - Suspension of license 🗎 PDF 

    The surety may terminate its liability under a bond by giving the seed commissioner at least ninety days' written notice of intent to terminate. The surety is released from all future liability accruing on the bond after the expiration of ninety days from the date the seed commissioner received the notice or on a later date specified by the surety. This section does not relieve, release, or discharge the surety from any liability incurred before the expiration of the ninety-day period. Unless the wholesale potato dealer files a new bond or an irrevocable letter of credit at least thirty days before the surety's liability ceases, the seed commissioner, without hearing, shall suspend the wholesale potato dealer's license. The seed commissioner may not remove the suspension until a new bond or an irrevocable letter of credit has been filed with and approved by the seed commissioner.

    4.1-57-06. License - Fee - Expiration 🗎 PDF 

    The seed commissioner shall establish the fee for a wholesale potato dealer's license, subject to approval by the seed commission. A license issued under this chapter expires on June thirtieth of each year.

    4.1-57-07. License - Posting 🗎 PDF 

    The wholesale potato dealer shall post the license or a certified copy of the license in the office at each location where the dealer transacts business.

    4.1-57-08. License - Refusal - Suspension - Cancellation - Grounds 🗎 PDF 

    1. The seed commissioner may refuse to issue a license to operate as a wholesale potato dealer if:
      1. The applicant was refused a wholesale potato dealer's license by another state;
      2. The applicant had a wholesale potato dealer's license suspended or revoked by another state; or
      3. The applicant employs in a position of responsibility an individual who had a wholesale potato dealer's license suspended or revoked by another state.
    2. The seed commissioner may suspend or revoke a license to operate as a wholesale potato dealer if:
      1. The dealer had a wholesale potato dealer's license suspended or revoked by another state;
      2. The dealer employs in a position of responsibility an individual who had a wholesale potato dealer's license suspended or revoked by another state; or
      3. The dealer has been convicted of:
        1. An offense under section 4.1-57-22;
        2. An offense involving fraudulent use of the mails; or
        3. Any other offense pertaining to the conduct of the person as a wholesale potato dealer.

    4.1-57-09. Agent of licensee - Ineligibility 🗎 PDF 

    The seed commissioner may determine that an individual may not act as an authorized agent for a licensee if the individual was refused a wholesale potato dealer's license by another state or if the individual had a wholesale potato dealer's license suspended or revoked by another state.

    4.1-57-10. Accounts and records 🗎 PDF 

    A wholesale potato dealer shall keep accurate accounts and retain records of all transactions as a dealer for eighteen months. The dealer shall make the records available to the seed commissioner upon request.

    4.1-57-11. Discontinuation of business - Duty of dealer 🗎 PDF 

    If a wholesale potato dealer sells, disposes of, or discontinues the business for which the dealer obtained a license during the period covered by the license, the dealer shall notify the seed commissioner in writing and, at the request of the seed commissioner, produce a statement of assets and liabilities as of the date the business was sold, disposed of, or discontinued.

    4.1-57-12. Security - Requirements for increase - Production of verified financial statements - Hearing 🗎 PDF 

    The seed commissioner at any time may increase the security required of a wholesale potato dealer. The seed commissioner at any time may require verified financial statements from a dealer. If a dealer fails to furnish the information or fails to provide increased security when directed by the seed commissioner, the seed commissioner shall suspend the dealer's license. After providing the dealer with at least ten days' notice and a hearing, the seed commissioner may revoke the dealer's license.

    4.1-57-13. Seed commissioner - Appointment as trustee 🗎 PDF 

    1. If a person notifies the seed commissioner that a wholesale potato dealer has breached any of the conditions for which security was given under this chapter, the seed commissioner shall investigate the allegation.
    2. The seed commissioner may hold a hearing to obtain additional testimony and documentary evidence. If the seed commissioner determines that the allegation is supportable, the seed commissioner shall apply to the district court of the county in which the claim is alleged to have occurred for appointment as trustee.
    3. Upon notice to the wholesale potato dealer as the court may prescribe or upon waiver of notice by the dealer, the court shall hear the matter in a summary manner. If the court determines that the dealer has breached any condition for which security was given under this chapter and if the court determines that it would be in the best interest of all persons holding claims against the dealer that the seed commissioner execute the trust, the court shall issue an order appointing the seed commissioner as a trustee, without bond. The seed commissioner shall proceed in the manner provided for in this chapter.
    4. The seed commissioner, as trustee, shall notify by certified mail all persons having claims against the dealer that the claims must be filed with the seed commissioner by a date certain. Any person who fails to file a claim within the time allotted is barred from participation in any fund marshalled by the seed commissioner under this chapter.
    5. All moneys collected and received by the seed commissioner as trustee must be deposited in the Bank of North Dakota pending the marshalling of the fund.

    4.1-57-14. Report - Notice to claimants - Payment of claims 🗎 PDF 

    Upon recovery of the trust fund, or so much of the fund as is possible to recover or necessary to pay all outstanding claims, the seed commissioner shall file a report in court showing the amount payable on each claim. If the fund is insufficient to pay all claims in full, the seed commissioner shall prorate the fund among the claimants. The court shall notify the claimants by mail regarding the proposed distribution and direct that the claimants show cause why the report should not be approved and distribution made in accordance with the report. After holding a hearing on the matter, the court shall approve or modify the report, issue an order directing the distribution of the fund, and discharge the seed commissioner from all duties as trustee.

    4.1-57-15. Expenses of seed commissioner - Deduction from trust fund 🗎 PDF 

    Any expenses incurred by the seed commissioner in carrying out the duties set forth in sections 4.1-57-13 and 4.1-57-14 may be deducted from the trust fund.

    4.1-57-16. Inspection of potatoes - Rights to demand certificate of inspection 🗎 PDF 

    1. When potatoes are ready for sale or are on their way to market, the owner, conveyor, prospective buyer, or any other interested party may demand and is entitled to inspection of the potatoes and to an inspection certificate as provided by law.
    2. Whenever potatoes are shipped to or received by a wholesale potato dealer for handling, purchase, or sale in this state and the wholesale potato dealer finds the potatoes to be spoiled, damaged, unmarketable, in unsatisfactory condition, mislabeled, or misrepresented in any way, unless both parties waive inspection before sale or other disposition, the wholesale potato dealer shall cause the potatoes to be examined by an inspector assigned by the seed commissioner for that purpose. The inspector shall execute and deliver a certificate to the wholesale potato dealer stating the day, the time, and the place of inspection and the condition of the potatoes. The wholesale potato dealer shall mail or deliver a copy of the certificate to the shipper of the inspected potatoes.

    4.1-57-17. Report by wholesale potato dealer - payment 🗎 PDF 

    Repealed by S.L. 2011, ch. 70, § 23.

    4.1-57-18. Sales reports unsatisfactory - Remedy of shipper 🗎 PDF 

    Repealed by S.L. 2011, ch. 70, § 23.

    4.1-57-18.1. Liability - Potato crop quantity and quality 🗎 PDF 

    A warranty of any kind, either expressed or implied, including a warranty of merchantability, fitness for a particular purpose, absence of disease, varietal identity, or selection identity, is not made by wholesale potato dealers licensed under this chapter, as to the quantity or quality of the crop produced from the seed potatoes that were inspected and certified. The sole warranty is that the potatoes were inspected under the rules of the seed department or the United States department of agriculture.

    4.1-57-19. Investigation - Hearing - Action on license 🗎 PDF 

    1. The seed commissioner may enter upon real property and access any structure and personal property at any time to inspect and sample potatoes for compliance with the laws of this state.
    2. After an investigation, the seed commissioner may suspend the license of any wholesale potato dealer. Within ten days of the suspension, the seed commissioner shall schedule, provide notice of, and hold a hearing on the suspension.
    3. After receiving both testimony and documentary evidence, the seed commissioner may reverse the suspension, continue the suspension, or revoke the wholesale potato dealer's license. If appropriate, the seed commissioner may demand the return of any agent's identification card issued by the seed commissioner.
    4. Any aggrieved party may appeal a decision of the seed commissioner under this section to the district court.

    4.1-57-20. Fees and collections - Continuing appropriation 🗎 PDF 

    Repealed by S.L. 2013, ch. 71, § 5.

    4.1-57-21. Enforcement of chapter 🗎 PDF 

    Repealed by S.L. 2013, ch. 71, § 5.

    4.1-57-22. Violations of chapter - Penalty 🗎 PDF 

    1. A person is guilty of a class A misdemeanor and subject to a civil penalty in an amount up to ten thousand dollars per violation, which may be imposed by the seed commissioner in an administrative hearing, if the person:
      1. Makes any false statement or report as to the grade, condition, markings, quality, or quantity of potatoes received or delivered, or acts in a manner designed to deceive the consignor or purchaser of the potatoes;
      2. Breaches any contract for the purchase or sale of potatoes to which the person was a party unless the breach is based on a state inspection certificate, secured with reasonable promptness after receipt of the shipment and showing that the kind or quality of potatoes is not that which was purchased or ordered;
      3. Fails to account for potatoes or to pay for potatoes within the time required by this chapter;
      4. Purchases for the person's own account any potatoes received on consignment, either directly or indirectly, without the consent of the consignor;
      5. Issues false or misleading market quotations;
      6. Cancels any quotations during the period advertised by the person;
      7. Makes any false or misleading statement on an application for licensure as a wholesale potato dealer;
      8. Increases the sales charges on shipped potatoes by means of fictitious sales;
      9. Receives potatoes from foreign states or countries for sale or resale, within or outside this state, and gives the purchaser the impression through any method of advertising or description that the potatoes are from a source other than their true origin; or
      10. Violates this chapter or any rule implementing this chapter.
    2. The seed commissioner may make application to the district court to compel payment of civil penalties imposed under this section.

    Chapter 58 — Grain And Seed Warehouses

    4.1-58-01. Definitions 🗎 PDF 

    In this chapter, unless the context or subject matter otherwise requires:
    1. "Credit-sale contract" means a written contract for the sale of grain under which the sale price is to be paid or may be paid more than thirty days after the delivery or release of the grain for sale and which contains the notice provided in section 4.1-58-21. If a part of the sale price of a contract for the sale of grain is to be paid or may be paid more than thirty days after the delivery or release of the grain for sale, only that part of the contract is a credit-sale contract.
    2. "Deferred-payment contract" means a credit-sale contract for which the amount owed for the sale of grain has been established, but the payment is postponed until a later date.
    3. "Grain" means wheat, durum, oats, rye, barley, buckwheat, flaxseed, speltz, safflower, sunflower seeds, tame mustard, peas, beans, soybeans, corn, clover, millet, alfalfa, and any other commercially grown grain or grass seed. "Grain" as defined in this chapter does not include grain or grass seeds owned by or in the possession of the warehouseman which have been cleaned, processed, and specifically identified for an intended use of planting for reproduction and for which a warehouse receipt has not been issued.
    4. "Noncredit-sale contract" means a contract for the sale of grain other than a credit-sale contract.
    5. "Public warehouse" means an elevator, mill, warehouse, subterminal, grain warehouse, terminal warehouse, or other structure in which grain is received for storing, buying, selling, shipping, or processing for compensation.
    6. "Public warehouseman" means the person operating a public warehouse located or doing business within this state, regardless of whether the owner or operator resides within this state. The term does not include a person permitted to sell seed under chapter 4.1-53, if that person does not store grain for the public and buys grain only for processing and subsequent resale as seed, or an authorized dealer or agent of a seed company holding a permit in accordance with section 4.1-53-43.
    7. "Receipts" means grain warehouse receipts, scale tickets, checks, or other memoranda given by a public warehouseman for, or as evidence of, the receipt, storage, or sale of grain except when the memoranda was received as a result of a credit-sale contract.
    8. "Receiving station" means any facility other than an individually licensed warehouse which is used by a licensed public warehouseman to receive and temporarily store grain before transferring the grain to the warehouseman's primary licensed warehouse location or delivering it directly to market.

    4.1-58-02. Duties of the commissioner 🗎 PDF 

    The commissioner shall:
    1. Exercise general supervision of the public warehouses of this state, including the handling, weighing, and storing of grain, and the management of public warehouses.
    2. Investigate all complaints of fraud and injustice, unfair practices, and unfair discrimination.
    3. Examine and inspect, during ordinary business hours, any licensed warehouse, including all books, documents, and records.
    4. Require the filing of reports pertaining to the operation of the warehouse.
    5. Make all proper rules for carrying out and enforcing any law in this state regarding public warehouses.

    4.1-58-03. Federal licensed inspector and employees 🗎 PDF 

    The commissioner may employ a federal licensed inspector and other employees as necessary to carry out this chapter.

    4.1-58-04. Grain marketing - Procedure for resolving disputes 🗎 PDF 

    1. If any dispute or disagreement arises between the person receiving and the person delivering grain at any public warehouse as to the proper grade, dockage, vomitoxin level, moisture content, or protein content of any grain, an average sample of at least three pints [1.65 liters] of the grain in dispute may be taken together by both parties interested.
      1. The sample must be certified by each party as a true and representative sample of the grain in dispute on the day the grain was delivered.
      2. The sample must be forwarded in a suitable container by parcel post or express, prepaid with the name and address of both parties for inspection by a federal licensed inspector, or a mutually agreed-upon third party, who will examine the grain and adjudge what grade, dockage, vomitoxin level, moisture content, or protein content the sample of grain is entitled to under the inspection rules and grades adopted by the secretary of agriculture of the United States.
      3. The person requesting the inspection service shall pay for the inspection.
      4. If the grain in question is damp, otherwise out of condition, or if moisture content is in dispute, the sample must be placed in an airtight container.
      5. Payment for the grain involved in the dispute must be made and accepted on the basis of the determination made by the federal licensed inspector or third party.
      6. All other quality factors may also be considered in determining the price of the grain.
      7. An appeal of the determination made by a third party other than a federal licensed inspector may be made to a federal licensed inspector.
      8. An appeal of the determination made by a federal licensed inspector may be made as provided under the United States Grain Standards Act [Pub. L. 103-354; 108 Stat. 3237; 7 U.S.C. 79(c) and (d)] and under 7 CFR 800.125-800.140.
      9. A person not abiding by a final determination is liable for damage resulting from not abiding by the determination.
    2. If a dispute or disagreement arises between the person delivering grain and the person receiving grain as to the determination of quality factors of grain purchased or delivered for which inspection rules and grades have not been adopted by the secretary of agriculture of the United States, an average sample of at least three pints [1.65 liters] of the grain in dispute may be taken together by the parties interested.
      1. The sample must be certified by each party as a true and representative sample of the grain in dispute on the day the grain was delivered.
      2. If the grain is damp or otherwise out of condition, the sample must be placed in an airtight container.
      3. The sample must be forwarded in a suitable container by parcel post or express, prepaid with the name and address of both parties, for inspection by a federal licensed inspector, or a mutually agreed-upon third party, who may examine the grain and determine the quality factors in dispute.
      4. The person requesting the inspection service shall pay for the inspection.
      5. The determination made by the inspector, or the third party, must be used in the settlement of the dispute.

    4.1-58-05. Notice of procedures for resolving disputes over grain 🗎 PDF 

    A public warehouse shall post a notice containing the procedures specified in section 4.1-58-04 for resolving disputes. The commissioner shall prescribe the form of the notice and shall provide a copy of the notice to each public warehouse. The public warehouseman shall post the notice in the grain inspection room of the warehouse. The notice must specifically mention the procedure for resolving disputes applies to the grade, dockage, moisture content, and protein content of grain and to the quality factors of grain for which inspection rules and grades have not been adopted by the secretary of agriculture of the United States.

    4.1-58-06. Release of records - Confidentiality 🗎 PDF 

    1. As a condition of licensure under section 4.1-58-08, an applicant shall agree to provide to the commissioner, upon request, any financial record the commissioner deems relevant for purposes related to:
      1. The issuance or renewal of a public warehouse license; or
      2. An investigation after issuance or renewal of a public warehouse license.
    2. As a condition of licensure, an applicant shall file a records release with the commissioner, authorizing the commissioner to obtain from any source any financial record the commissioner deems relevant for purposes related to:
      1. The issuance or renewal of a public warehouse license; or
      2. An investigation after issuance or renewal of a public warehouse license.
    3. Information obtained by the commissioner under this section is confidential and may be provided only:
      1. To federal authorities in accordance with federal law;
      2. To the attorney general, state agencies, and law enforcement agencies, for use in the pursuit of official duties; and
      3. As directed by an order of a court pursuant to a showing of good cause.

    4.1-58-07. Public warehouse license - Financial criteria to be met 🗎 PDF 

    1. To be eligible to receive an annual public warehouse license, an applicant shall submit financial documentation to the commissioner verifying the applicant has satisfactory net worth and working capital, as determined by the commissioner.
    2. A licensed public warehouseman or an applicant for initial licensure shall report balance sheets and income statements to the commissioner annually on written application for initial licensure or license renewal if the applicant purchased up to ten million dollars worth of grain during the previous licensing period, or intends to purchase up to ten million dollars worth of grain during the first year of operation.
    3. As a condition of licensure, an applicant shall provide the commissioner, upon request, any financial record or bank verification release the commissioner deems relevant for the purpose of verifying the financial information of an applicant pursuant to the requirements of this section.
    4. As a condition of licensure, a new applicant must:
      1. Pass a background check;
      2. Have a satisfactory credit score, as determined by the commissioner; and
      3. Be a responsible person with a good business reputation, as determined by the commissioner, that:
        1. Is in the public warehouse business;
        2. Has knowledge of, and experience with, generally accepted grain warehousing and handling practices;
        3. Is competent and willing to operate a public warehouse in accordance with state and federal regulations; and
        4. Has not committed fraud or a criminal offense indicating a lack of business integrity or honesty that undermines the person's responsibility as a warehouse operator.

    4.1-58-08. Public warehouse license - Fee - Posting of license 🗎 PDF 

    1. A license must be obtained from the commissioner for each public warehouse in operation in this state. A license issued is for one year and terminates on the thirty-first day of July in the year of expiration. An initial annual license application that becomes effective after June first does not expire until July thirty-first of the following calendar year.
    2. A license may not describe more than one public warehouse nor grant permission to operate a public warehouse other than the one described.
      1. The annual license fee for a public warehouse is:
        1. Four hundred dollars for a warehouse that purchased up to one million dollars worth of grain during the previous licensing period, or intends to purchase up to one million dollars worth of grain during the first year of operation;
        2. Eight hundred dollars for a warehouse that purchased more than one million dollars worth of grain but not more than ten million dollars worth of grain during the previous licensing period, or intends to purchase more than one million dollars worth of grain but not more than ten million dollars worth of grain during the first year of operation; and
        3. One thousand two hundred dollars for a warehouse that purchased more than ten million dollars worth of grain during the previous licensing period, or intends to purchase more than ten million dollars worth of grain during the first year of operation.
      2. An application for an annual license renewal received after July fifteenth must include an additional one hundred dollar fee per warehouse.
    4. If a public warehouseman operates two or more warehouses in the same city or railroad siding, in conjunction with each other and with the same working force, and keeps one set of books and records for the warehouses, and issues one series of scale tickets, warehouse receipts, checks, and credit-sale contracts for the grain stored and purchased, only one license is required for the operation of all the warehouses. When two or more warehouses are operated under one license, the license fee is based upon the combined value of the grain purchased by the warehouses during the previous licensing period.
    5. The license must be posted in a conspicuous place in the public warehouse.

    4.1-58-09. Warehouseman to operate warehouse owned by another 🗎 PDF 

    A warehouseman may operate under its license a warehouse owned by another person. Storage performed for the person in the entire licensed warehouse is excepted from the storage rate and discrimination provisions contained in sections 4.1-58-19 and 4.1-58-22 to the extent of the person's owned capacity in the warehouse.

    4.1-58-10. Receiving stations 🗎 PDF 

    1. A licensed public warehouseman may establish a receiving station without a separate warehouse license for that facility if:
      1. The station is colocated with another licensed public warehouse, the operator of which takes delivery of the grain on behalf of the warehouseman that established the receiving station.
      2. The storage space used by the receiving station is used solely by the receiving station and is not licensed as part of the warehouse located at that site.
      3. The grain taken in by the receiving station is not commingled with other grain at that site.
      4. The warehouseman establishing the station requests and receives permission from the commissioner to increase licensed capacity to include the space to be used at the receiving station.
      5. Grain received at the receiving station is recorded on scale tickets issued by the warehouseman that established the station and is covered by that warehouseman's bond.
      6. Warehouse-receipted grain received at the receiving station is available for redelivery to the receiptholder at that location even if the station has been closed. A charge for redelivery must be stated in the warehouseman's redelivery policy.
    2. The storage space used by a receiving station need not be physically disconnected from the facilities of the other licensed warehouse located at that site.

    4.1-58-11. Bond filed by public warehouseman 🗎 PDF 

    1. Before a license is effective for a public warehouseman, the applicant for the license shall file a bond with the commissioner which must:
      1. Be in a sum not less than one hundred thousand dollars for any one warehouse.
      2. Be continuous, unless the corporate surety by certified mail notifies the licensee and the commissioner the surety bond will be canceled ninety days after receipt of the notice of cancellation.
      3. Run to this state for the benefit of all persons storing or selling grain in that warehouse.
      4. Be conditioned:
        1. For the faithful performance of the licensee's duties as a public warehouseman.
        2. For compliance with the provisions of law and the rules of the commissioner relating to the storage and purchase of grain by the warehouseman.
      5. Specify the location of each public warehouse intended to be covered by the bond.
      6. Be for the specific purpose of:
        1. Protecting the holders of outstanding receipts.
        2. Covering the costs incurred by the commissioner in the administration of this chapter in the event of the licensee's insolvency.
      7. Not accrue to the benefit of any person entering a credit-sale contract with a public warehouseman.
    2. The aggregate liability of the surety under a bond does not accumulate for each successive annual license renewal period during which the bond is in force but, for losses during an annual license renewal period, is limited in the aggregate to the bond amount stated or changed by appropriate endorsement or rider.
    3. The commissioner shall set the amount of the bond and may require an increase in the amount of a bond as the commissioner deems necessary to accomplish the purposes of this section. The amount of the bond must be:
      1. Based on the dollar value of the grain purchased; and
      2. Calculated using the value of the amount of grain intended to be purchased by a new licensee during the first year of operation, or the three-year rolling annual average of the value of grain purchased at the time of license renewal.
    4. The surety on the bond must be a corporate surety company, approved by the commissioner, and authorized to do business within the state. The commissioner may accept cash, a negotiable instrument, or a bond executed by personal sureties in lieu of a surety bond if, in the commissioner's judgment, the cash, negotiable instrument, or personal surety bond properly will protect the holders of outstanding receipts.
    5. One bond only may be given for a line of elevators, mills, or warehouses, owned, controlled, or operated by one individual, firm, corporation, or limited liability company, and the bond must be construed to cover the elevators, mills, or warehouses, as a whole and not a specific amount for each.

    4.1-58-12. Bond cancellation - Release of surety 🗎 PDF 

    1. The surety on a bond is released from all future liability accruing on the bond after the expiration of ninety days from the date of receipt by the commissioner of notice of cancellation by the surety or on a later date specified by the surety. This provision does not operate to relieve, release, or discharge the surety from any liability already accrued or which accrues before the expiration of the ninety-day period.
    2. Unless the warehouseman files a new bond at least thirty days before liability ceases, the commissioner, without hearing, immediately shall suspend the warehouseman's license and the suspension may not be removed until a new bond has been filed and approved by the commissioner.
    3. If a license is suspended under this section, the warehouseman shall give notice of the suspension to each receiptholder having grain stored in the warehouse.
    4. The warehouseman shall notify each receiptholder having grain stored in the warehouse that the grain must be removed from the warehouse or the grain will be priced and redeemed in cash in accordance with section 4.1-58-40.

    4.1-58-13. Bond discount 🗎 PDF 

    1. The licensee may request a bond reduction based upon the licensee's conversion policy.
      1. The required bond is reduced by thirty percent for a licensee that establishes and follows a conversion policy approved by the commissioner of ten days or fewer.
      2. The required bond is reduced by fifteen percent for a licensee that establishes and follows a conversion policy approved by the commissioner of eleven to twenty-one days.
    2. A reduction under this section may not be used to reduce the required bond below the minimum bond set in law.

    4.1-58-14. Revocation and suspension 🗎 PDF 

    1. Except as provided in subsection 2, the commissioner may suspend or revoke the license of a warehouseman for cause upon notice and hearing.
    2. Notwithstanding any other provision of this chapter, the commissioner immediately shall suspend the license of a warehouseman for failure at any time to have or to maintain either a bond or insurance policy in the amount and type required.
    3. During a license suspension, the warehouseman, upon the commissioner's approval, may operate the warehouse and purchase or redeliver grain previously received, but may not receive additional grain for purchase, storage, shipping, or processing. The warehouseman may sell grain only with the prior approval of the commissioner.

    4.1-58-15. Scale ticket - Contents - Conversion 🗎 PDF 

    1. Every public warehouseman, upon receiving grain into the warehouse, shall issue a uniform scale ticket for each load of grain received.
      1. The scale tickets must be numbered consecutively, and one copy of each ticket must be retained and remain as a permanent record.
      2. The original ticket must be delivered to the individual from which the grain is received, upon receipt of each load of grain.
      3. All scale tickets must be converted into cash, noncredit-sale contracts, credit-sale contracts, or warehouse receipts, within thirty days after the grain is delivered to the warehouse.
    2. This chapter does not require a warehouseman to receive, store, or purchase grain. A warehouseman shall publish and post, in a conspicuous place in the warehouse, a publication identifying whether storage will be available to patrons or whether grain will be accepted via cash or a credit-sale contract arrangement.
    3. A producer that fails to convert a scale ticket in accordance with subsection 1 forfeits any trust fund or credit-sale contract indemnity fund protection provided under sections 4.1-58-11, 4.1-58-21, and 4.1-58-45.

    4.1-58-16. Purchase by warehouseman - Form of receipt 🗎 PDF 

    1. A warehouseman may print on each warehouse receipt issued by the warehouseman a receipt executed by the owner for use if the grain represented on the receipt is purchased by the warehouseman. The warehouseman shall record the purchase, as to the amount paid per bushel, on the stub record or copy of the warehouseman's warehouse receipt books. The receipt must be in substantially the following form: Received from __________, __________ dollars and _________ cents net, in full payment for the grain represented by this warehouse receipt. Gross price per bushel __________, storage per bushel _________, net price per bushel _________. I certify that I am the owner of the grain for which this receipt was issued, and that there are no liens, chattel mortgages, or other claims against the grain represented by this receipt. Dated _____________, ______. Signed _________________ Owner.
    2. This section does not affect in any manner the conditions of the storage contract specified in sections 4.1-58-19 and 4.1-58-20.

    4.1-58-17. Warehouse receipts - Copy 🗎 PDF 

    1. A warehouseman shall provide a stub record or copy of each warehouse receipt issued by the warehouseman, showing:
      1. The serial number and date of receipt.
      2. The kind and grade of grain.
      3. The dockage and net weight of the grain.
    2. The warehouseman shall retain possession of the record or copy for inspection by the commissioner and others properly interested.

    4.1-58-18. Warehouse receipt - Contents and provisions 🗎 PDF 

    A warehouseman shall provide a warehouse receipt that must:
    1. Be issued only upon the actual delivery of grain to the warehouse for storage.
    2. Contain the following provisions:
      1. The place and date the grain was received;
      2. The name and address of the owner of the grain;
      3. The kind and grade of the grain according to the official standards established by the secretary of agriculture of the United States, except that receipts issued for dry edible beans must reference, in lieu of a grade designation, the number of the scale tickets containing a description of the beans, including the percentage of foreign material, splits, check seed coats, total pick, and moisture; and
      4. The gross weight, dockage, and net weight of the grain according to this state's standard weight.
    3. Be numbered consecutively, and no two receipts bearing the same number and series may be issued during the same year.
    4. Not be altered by any warehouseman by the insertion in the receipt of any language limiting or modifying its liability as imposed by the law.
    5. Contain, either on its face or reverse side, the warehouse and storage contract provided for in section 4.1-58-19.
    6. Have printed upon the receipt the following words: "All storage contracts on grain in store at public grain warehouses terminate on _________, as identified in the publication required by section 4.1-58-19. If storage charges and warehouseman's advances remain unpaid at the time of termination, the warehouseman may sell a sufficient amount of grain to pay the charges and advances. The receiptholder shall surrender the receipt to the issuing warehouseman for settlement."

    4.1-58-19. Warehouse and storage contract - Storage rates - Terminal delivery 🗎 PDF 

    1. A warehouse receipt must contain, either on its face or reverse side, the following warehouse and storage contract: This grain is received, insured, and stored subject to the laws and rules of the state of North Dakota, the terms of this contract, and the charges and conditions stated herein and as filed with the North Dakota agriculture commissioner. Upon surrender of this receipt and payment or tender of all applicable charges, the amount, kind, and grade of grain identified in this receipt will be delivered to the person named above or the person's order as rapidly as due diligence, care, and prudence will permit. At the option of the holder of this receipt, the amount, kind, and grade of grain for which this receipt is issued, upon demand, must be delivered back to the holder at any terminal point customarily shipped to, or at the place where received, upon the payment of any charges for receiving, handling, storage, and insurance and in case of terminal delivery, the payment in addition to the above of the regular freight charges on the gross amount called for by this ticket or in lieu thereof, a receipt issued by a bonded warehouse or elevator company doing business at the terminal point. This receipt does not require the delivery of the identical grain specified herein, but an equal amount of grain of the same kind and grade must be delivered.
    2. A warehouseman shall publish and post, in a conspicuous place in its warehouse, the fees that will be assessed for receiving, storing, processing, or redelivering grain and the termination date of its warehouse receipts. This publication must be filed with the commissioner as a part of the warehouse license process or annual renewal. The fees and termination date must be stated on the warehouse receipt issued for the grain. The fees or termination date may be changed upon filing a revised publication with the commissioner.

    4.1-58-20. Covenant against liens may be inserted in warehouse receipt 🗎 PDF 

    A public warehouseman also may insert in the warehouse receipt the following provision: If any of the grain embraced in this receipt proves to be covered by a chattel mortgage or other lien, or the partial or absolute title proves to be in someone other than the person to whom this receipt was issued, the same, if discovered before the delivery of the grain, is sufficient reason for the refusal to deliver to the holder of the receipt, or if discovered after the delivery of the grain, the delivery is deemed an additional delivery for which the holder of this receipt, to whom the delivery is made, is accountable.

    4.1-58-21. Credit-sale contracts 🗎 PDF 

    1. A warehouseman may not purchase grain by a credit-sale contract except as provided in this section. All credit-sale contracts must be in writing and must be consecutively numbered when printing the contract. The warehouseman shall maintain an accurate record of all credit-sale contract numbers, including the disposition of each numbered form, whether by execution, destruction, or otherwise. Each credit-sale contract must contain or provide for:
      1. The seller's name and address.
      2. The conditions of delivery.
      3. The amount and kind of grain delivered.
      4. The price per unit or basis of value.
      5. The date payment is to be made.
      6. The duration of the credit-sale contract.
      7. Notice in a clear and prominent manner that the sale is not protected by the bond coverage provided for in section 4.1-58-11. However, if the warehouseman has obtained bond coverage in addition to that required by section 4.1-58-11 and that coverage extends to the benefit of credit-sale contracts, the warehouseman may state that in the credit-sale contract along with the extent of the coverage.
    2. The contract must be signed by both parties and executed in duplicate. An electronic signature satisfies the requirement. An unsigned contract must be considered an unconverted scale ticket in accordance with section 4.1-58-15. The warehouseman shall retain one copy and deliver one copy to the seller. Upon revocation, termination, or cancellation of a warehouseman's license, the payment date for all credit-sale contracts, at the seller's option, must be advanced to a date not later than thirty days after the effective date of the revocation, termination, or cancellation, and the purchase price for all unpriced grain must be determined as of the effective date of revocation, termination, or cancellation in accordance with all other provisions of the contract. When a public warehouse is transferred under this chapter, credit-sale contracts may be assigned to another licensed public warehouseman.
    3. A warehouseman that uses deferred-payment contracts shall inform producers of bond protection.

    4.1-58-22. Discrimination by public warehouseman prohibited - Posting prices 🗎 PDF 

    1. A public warehouseman may not discriminate:
      1. In the buying, selling, receiving, and handling of grain or in the charges made or the service rendered to owners of stored grain;
      2. In the receiving of grain offered for sale or storage;
      3. In regard to the persons offering grain for sale or storage; or
      4. Between points or stations except as the marketing factors or transportation costs or grain quality premiums may warrant.
    2. A public warehouseman is not required to receive for storage any grain that is heating or otherwise out of condition. Storing grain free of charge is prohibited except as prescribed by law. A warehouseman shall post grain prices paid in a conspicuous place in the office or driveway of the warehouseman's place of business.

    4.1-58-23. Issuance of informal memoranda forbidden - Penalty 🗎 PDF 

    A warehouseman that fails to issue a receipt, as is provided in sections 4.1-58-16 and 4.1-58-17, or issues slips, memoranda, or any other form of receipt embracing a different warehouse or storage contract than is provided for specifically in this chapter, is guilty of a class A misdemeanor.

    4.1-58-24. Liability of warehouseman 🗎 PDF 

    A public warehouseman is liable to the owner for the delivery of the kind, grade, quality, and quantity of grain called for by the warehouse receipt. Unless otherwise agreed, the value of any difference in kind, grade, quality, and quantity must be settled at the price on the local market on the day the warehouseman receives written request for delivery. The warehouseman may withhold from delivery a sufficient quantity of grain, based upon the local market price, to satisfy the value of any difference in kind, grade, or quality.

    4.1-58-25. Records to be kept by public warehouseman 🗎 PDF 

    1. A public warehouseman shall keep a record of all grain received, stored, and shipped, stating the:
      1. Weight.
      2. Grade.
      3. Dockage for dirt or other causes.
      4. Name of owner.
      5. Price paid.
      6. Storage charge collected.
    2. A warehouseman with a principal office or headquarters located outside this state shall make available, if requested, all books, documents, and records relevant to a warehouse in this state for inspection during ordinary business hours at any of the warehouseman's warehouses located in this state or other mutually acceptable place.

    4.1-58-26. Reports to be made by public warehouseman - Confidential information - Penalty for failure 🗎 PDF 

    1. Each licensed and bonded public warehouseman shall:
      1. Prepare for each month a report giving facts and information called for on the form of report prepared by the commissioner. The report must contain or be verified by a written declaration the report is made under the penalties of perjury. The report may be called for more frequently if the commissioner deems necessary. Information pertaining to the volume of grain handled is a confidential trade secret and is not a public record. The commissioner may make the information available for use by other governmental entities, but the commissioner may not release the information in a manner that jeopardizes the confidentiality of individual licensees.
      2. File the report with the commissioner not later than the last day of the following month, and failure to file this report promptly is cause for revoking the warehouse license after due notice and hearing.
      3. Keep a separate account of the grain business, if the warehouseman is engaged in handling or selling any other commodity, and under no circumstances may the grain account and other accounts be mixed.
      4. Submit additional information requested by the commissioner pursuant to a report or an inspection within five business days.
    2. The commissioner may refuse to renew a license to any public warehouseman that fails to make a required report.

    4.1-58-27. Bailment not a sale 🗎 PDF 

    When grain is delivered to any public warehouse and an unconverted scale ticket or a warehouse receipt is issued, the delivery is a bailment and not a sale of the grain delivered. The grain delivered may not be liable to seizure upon process of a court in an action against the bailee, except in an action by an owner of the unconverted scale ticket or warehouse receipt to enforce the terms of the delivery or obtain redelivery of the delivered grain. In the event of the failure or insolvency of the warehouseman, all the grain in the warehouse, whether the grain is stored or not, first must be applied at all times to the satisfaction of receipts issued by the warehouseman.

    4.1-58-28. Receiptholder's lien 🗎 PDF 

    Grain contained in a warehouse, including grain owned by the warehouseman, is subject to a first priority lien for outstanding receiptholders storing, selling, or depositing grain in the warehouse. The lien created under this section is preferred to any lien or security interest for any creditor of the warehouseman regardless of the time when the creditor's lien or security interest attached to the grain. Notice of the lien created under this section need not be filed to perfect the lien. The lien created by this section is discharged as to grain sold by the warehouseman to a buyer in the ordinary course of business. The sale does not discharge the lien for an individual receiptholder in the remaining grain in the warehouse.

    4.1-58-29. Standard weights to be used - Exception 🗎 PDF 

    A person purchasing, selling, or storing grain in a public warehouse in this state may not use any measure for the grain other than the standard bushel, and no number of pounds may be used or called a bushel other than the number of pounds provided by law as the standard weight of the kind of grain in question, except during the months of October and November, not exceeding eighty-two pounds [37.19 kilograms], and during the months of December and January, not exceeding seventy-six pounds [34.47 kilograms], may be used as the standard weight per bushel of new ear corn.

    4.1-58-30. Federal grades to control - Grades to be posted 🗎 PDF 

    All public warehousemen shall purchase and store grain except dry edible beans in accordance with the official grades established by the secretary of agriculture of the United States, except as otherwise provided in rules and regulations applicable thereto adopted by federal officials pursuant to law.
    1. Public warehousemen shall post in a conspicuous place in the public warehousemen's warehouse the official grades established and also any change that may be made.
    2. Warehousemen of dry edible beans shall purchase, store, and deliver beans in accordance with the policy of the warehousemen which must be filed with the commissioner and posted in a conspicuous place in the warehouse of the public warehousemen.
    3. Other grading standards may be used if mutually agreed to in writing by the warehouseman and the owner of the grain. However, the owner may demand the use of federal grading standards.
    4. The commissioner, after a hearing, may prohibit the use of nonfederal grades.

    4.1-58-31. Grading of grain - Penalty 🗎 PDF 

    1. A public warehouseman before testing for grade any grain handled by the warehouseman shall remove and make due allowance for any dockage of the grain made by reason of the presence of straw, weed seeds, dirt, or any other foreign matter.
    2. A public warehouseman that violates this section is guilty of a class B misdemeanor.

    4.1-58-32. Termination of public grain warehouse storage contracts - Notice to receiptholder 🗎 PDF 

    1. A storage contract terminates on the date identified in the publication required by section 4.1-58-19. If a different termination date is not identified in the publication, a storage contract on grain in a public grain warehouse terminates on June thirtieth of each year, except for a storage contract on dry edible beans which terminates on April thirtieth of each year.
    2. Storage of grain in a public grain warehouse may be terminated by the receiptholder at any time before the applicable date by the payment of all legal charges and the surrender of the warehouse receipt, with a demand for delivery of the grain in storage, or notice to the public warehouseman to sell the stored grain.
    3. Upon the expiration of the storage contract, the warehouseman is not obligated to renew the storage contract.
    4. At least thirty days before the termination date of a storage contract, the public warehouseman shall notify the receiptholder by mail of the warehouseman's intention to terminate the storage contract on the date identified in the storage contract, unless the receiptholder, before that time, demands redelivery, authorizes sale, extends the storage contract, or enters a new contract with the public warehouseman for restorage. Failure to notify the receiptholder, as required by this section, results in the forfeiture of storage charges accrued for the grain during the previous twelve months.
    5. In the absence of a demand for delivery, an order to sell, or an agreement between the public warehouseman and the receiptholder for storage after the termination date of the storage contract, the warehouseman, upon the expiration of the storage contract, may sell at the local market price on the close of business on that day, all stored grain of the receiptholder and tender to the receiptholder the proceeds of the sale, less accrued storage charges and the public warehouseman's advances upon any previous storage contract of the receiptholder.

    4.1-58-33. Reissue warehouse receipts - Provisions 🗎 PDF 

    Upon payment of all legal accrued charges and the surrender to the warehouseman of a receipt, if the receiptholder and the warehouseman agree to continue the storage contract, the warehouseman may extend the storage contract or issue a new warehouse receipt to the owner and cancel the former receipt by endorsing on the receipt the words: "Canceled by the issuance of warehouse receipt no.__________", inserting the number of the reissue warehouse receipt thereafter, and the holder's name must be signed thereto by the holder or by the holder's authorized agent. The reissue warehouse receipt must be designated by stamping on the receipt: "Reissue of warehouse receipt no.__________".

    4.1-58-34. Delivery of grain - Demand terminates storage charge 🗎 PDF 

    On the return and surrender of any receipt and the payment of all lawful charges, the grain represented on the receipt must be deliverable to the owner and is not subject to any further charge for storage after demand for delivery is made and proper facilities for receiving or shipping the grain have been provided. The owner of the receipt shall order the receptacle in which the grain covered by the owner's receipt is to be transported, and the grain must be delivered when the ordered receptacle is in proper condition for loading and is placed at the warehouse. The licensee may not assess receiving or redelivery fees on the grain redelivered during a suspension, following a revocation, or when the owner of the grain is taking redelivery because the licensee is unable to pay for the grain.

    4.1-58-35. Grain to be kept insured for benefit of owner by warehouseman 🗎 PDF 

    A public warehouseman license is not effective unless all grain in storage or on deposit in the warehouse is kept fully insured at the expense of the warehouseman for the benefit of the owner at the current market value of the grain against loss by fire, lightning, internal explosion, windstorm, cyclone, tornado, and other risks of direct physical loss as provided by the insurer in a policy approved by the insurance commissioner. An insurance policy covering grain in a public warehouse may not be transferred or assigned to any person for any purpose, except for grain that is not on warehouse receipt or deposit. The insurance policy must be continuous and may only be canceled in accordance with section 4.1-58-36.

    4.1-58-36. Insurance - Cancellation - Suspension of license 🗎 PDF 

    An insurance company shall give at least ten days' notice to the commissioner and the insured by certified mail return receipt requested before cancellation of an insurance policy required under section 4.1-58-35. The warehouseman shall notify each receiptholder having grain stored in the warehouse the grain must be removed from the warehouse or the grain will be priced and redeemed in cash in accordance with section 4.1-58-40.

    4.1-58-37. Destruction of grain in public warehouse - First lien by holder of outstanding receipt 🗎 PDF 

    The holder of an unconverted scale ticket or warehouse receipt issued by any public warehouseman has a first lien, to the extent of the value of the grain when lost at the place where held, on all insurance of the warehouse for any loss sustained by the receiptholder, on account of the loss of the grain by fire, tornado, or any other cause covered by the insurance policy.

    4.1-58-38. Refund of license fee by commissioner 🗎 PDF 

    If requested in writing, the commissioner shall refund the license fee of a public warehouse, or so much as in the commissioner's judgment is just and reasonable, if satisfactory proof is furnished the warehouse has been transferred to some other person, and the new owner has obtained a license for the same warehouse for the unexpired period for which the original license was issued. If a warehouse is destroyed by fire or other cause, the license fee may be prorated as the commissioner may determine.

    4.1-58-39. Transfer of warehouse - Redemption of receipts 🗎 PDF 

    1. If a public warehouseman desires to transfer a warehouse, either by sale or lease to any other person, the warehouseman shall:
      1. Notify the commissioner of the warehouseman's intention to transfer the warehouse, giving the name and address of the proposed lessee or purchaser.
      2. Furnish a statement of all proper claims that may be filed or pending against the warehouseman pertaining to the storage, inspection, and marketing of grain, with a statement of:
        1. The number of bushels of grain of each kind and grade in store in the warehouse;
        2. The number and amount of receipts outstanding; and
        3. The names and addresses of the receiptholders.
      3. Serve notice by registered mail, at least thirty days before the transfer, upon all receiptholders having claims against the warehouse to call for delivery of the grain covered by the receipts, and to pay all storage charges due, the warehouseman to make no charge for redelivery. The commissioner may waive the thirty-day notice period upon receipt of written consent of all receiptholders.
      4. Transfer all stored grain undelivered at the expiration of the thirty-day period to the warehouseman's successor, if licensed, or to the nearest licensed warehouse for restorage, taking receipts for the restorage for the owner of the grain transferred.
      5. Surrender to the commissioner the warehouseman's license for cancellation, at which time the proposed lessee or purchaser shall file in due form for a new license and tender a new bond for review by the commissioner, at which time, the commissioner, first being duly satisfied all the outstanding receipts have been redeemed, or that the redemption of all outstanding receipts has been provided for, the commissioner may permit a new license to become effective for the lessee or purchaser.
    2. A sale, lease, or transfer of any warehouse may not be recognized by the commissioner except when made in accordance with this section.

    4.1-58-40. Going out of business - Redemption of receipts 🗎 PDF 

    1. If a public warehouseman ceases business through the destruction of a warehouse by fire or other cause, or through insolvency, the warehouseman shall redeem all outstanding unconverted scale tickets or warehouse receipts at the price prevailing on the date the warehouse was destroyed or closed because of insolvency. The holder of the receipts, upon due notice, shall accept this price and surrender the receipts.
    2. A public warehouseman that voluntarily ceases business or fails to renew an existing warehouse license or has the warehouse license revoked shall notify the commissioner and all outstanding receiptholders of the closing and redeem all outstanding unconverted scale tickets or warehouse receipts at the price prevailing on the date the warehouse closed or at the option of the owner of the receipt redeliver the kind, grade, and quantity of grain called for by the unconverted scale ticket or warehouse receipt.
    3. On commingled grain the value of over and under deliveries in quantity, grade, and protein must be settled in cash and priced on the market on the day of closing.

    4.1-58-41. Cease and desist 🗎 PDF 

    If a warehouseman engages in an activity or practice contrary to this chapter or related rules, the commissioner, upon the commissioner's own motion without complaint, with or without hearing, may order the warehouseman to cease and desist from the activity until further order of the commissioner. An order may include any corrective action up to and including license suspensions. A cease and desist order must be accompanied by a notice of opportunity to be heard on the order within fifteen days of the issuance of the order.

    4.1-58-42. Agricultural contracts - Mediation or arbitration 🗎 PDF 

    If a written contract for the sale of grain does not contain provisions to settle disagreements concerning factors not governed by section 4.1-58-04, the parties shall attempt to resolve the disagreements through mediation or arbitration.

    4.1-58-43. Licensed warehouse capacity and condominium storage 🗎 PDF 

    1. Unless an entire warehouse facility is used for nonpublic purposes, all physically connected portions of the facility must be licensed in accordance with this chapter.
    2. The warehouseman shall issue receipt memoranda for all grain received.
    3. Facilities that are physically connected to the licensed warehouse may be sold under a condominium arrangement or leased to other entities for nonpublic use and sales and lease agreements must be based on the capacity of the bins involved and not on the number of bushels held in the space.
    4. The licensee shall provide contents insurance and bond coverage for the space.
    5. If a licensee becomes insolvent, the contents of the space must be considered an asset to the trust fund established under this chapter and owners and lessees are entitled to trust fund protection in a manner equal to all other valid grain receiptholders.

    4.1-58-44. Insolvency of warehouseman 🗎 PDF 

    A licensee is insolvent when the licensee refuses, neglects, or is unable upon proper written demand, including electronic communication, to pay for grain purchased or marketed by the licensee or to make redelivery or payment for grain stored.

    4.1-58-45. Trust fund established - Trustee 🗎 PDF 

    1. Upon the insolvency of a warehouseman, a trust fund must be established:
      1. For the benefit of noncredit-sale receiptholders of the insolvent warehouseman, other than those that have waived their rights as beneficiaries of the trust fund in accordance with section 4.1-58-15; and
      2. To pay the costs incurred by the commissioner in the administration of this chapter.
    2. The trust fund consists of the following:
      1. The grain in the warehouse of the insolvent warehouseman or the proceeds as obtained through the sale of the grain;
      2. The proceeds, including accounts receivable, from any grain sold from the time of the filing of the claim that precipitated an insolvency until the commissioner is appointed trustee;
      3. The proceeds of insurance policies upon grain destroyed in the elevator;
      4. The claims for relief, and proceeds from the claims for relief, for damages upon any bond given by the warehouseman to ensure faithful performance of the duties of a warehouseman;
      5. The claims for relief, and proceeds from the claims for relief, for the conversion of any grain stored in the warehouse;
      6. Unencumbered accounts receivable for grain sold before the filing of the claim that precipitated an insolvency;
      7. Unencumbered equity in grain hedging accounts; and
      8. Unencumbered grain product assets.
    3. Upon the insolvency of a warehouseman, the commissioner shall act as trustee of the trust fund.

    4.1-58-46. Possession of grain 🗎 PDF 

    Upon the commissioner's appointment, the commissioner shall seek possession of the grain to be included in the trust fund. Upon the commissioner's possession of any grain in the warehouse, the commissioner shall sell the grain and apply the proceeds to the trust fund.

    4.1-58-47. Joinder of surety - Deposit of proceeds 🗎 PDF 

    The surety on the warehouseman's bond must be joined as a party to the insolvency proceeding upon a motion by the commissioner if the commissioner believes proceeds from the warehouseman's bond may be needed to redeem outstanding receipts issued by the warehouseman. If it appears in the best interests of the receiptholders, the commissioner may order the surety to deposit the penal sum of the bond, or so much of the sum as may be deemed necessary, into the trustee's trust account pending a final determination of the surety's liability under the bond.

    4.1-58-48. Notice to receiptholders and credit-sale contract claimants 🗎 PDF 

    1. Upon the commissioner's appointment, the commissioner may take possession of relevant books and records of the warehouseman.
    2. The commissioner shall cause a notice of the commissioner's appointment to be published once each week for two consecutive weeks in a newspaper in the county in which the warehouse is located and may notify by ordinary mail the holders of record of outstanding receipts and those that are potential credit-sale contract claimants, as shown by the warehouseman's records.
    3. The notices must require outstanding receiptholders and credit-sale contract claimants to file claims against the warehouseman with the commissioner along with the receipts, contracts, or any other evidence of the claims as required by the commissioner.
    4. If an outstanding receiptholder or credit-sale contract claimant fails to submit a claim within forty-five days after the last publication of the notice or a longer time as prescribed by the commissioner, the commissioner is relieved of further duty or action under this chapter on behalf of the receiptholder or credit-sale contract claimant and the receiptholder or credit-sale contract claimant may be barred from payment for any amount due.
    5. Outstanding receiptholders and credit-sale contract claimants are not parties to the insolvency action unless admitted by the court upon a motion for intervention.

    4.1-58-49. Remedy of receiptholders 🗎 PDF 

    A receiptholder does not have a separate claim for relief upon the warehouseman's bond, for insurance, against any person converting grain, nor against any other receiptholder, except through the trustee, unless, upon demand of five or more receiptholders, the commissioner fails or refuses to apply for the commissioner's own appointment. This chapter does not prohibit or prevent a receiptholder, either individually or with other receiptholders, from pursuing concurrently other remedies against the person or property of the warehouseman, for the whole, or any deficiency occurring in the redemption, of the receipts.

    4.1-58-50. Commissioner to marshall trust assets 🗎 PDF 

    Upon the commissioner's appointment, the commissioner may maintain suits at law or in equity, or any special proceeding, in the name of this state, upon the commissioner's own relation, but for the benefit of all receiptholders against: the insurers of grain; the warehouseman's bond; a person that may have converted any grain; or a receiptholder that received more than the receiptholder's just and pro rata share of grain, for the purpose of marshalling all trust fund assets and distributing the same among the receiptholders. The commissioner shall seek possession of any grain in the warehouse before recourse is had against the insurers of grain, and the remedy against the insurers of grain must be exhausted before recourse is had against the bond, and against the bond before recourse is had against the person honestly converting grain, unless the commissioner deems it necessary to the redemption of the receipts that all the above remedies be pursued at the same time.

    4.1-58-51. Power of commissioner to prosecute or compromise claims 🗎 PDF 

    The commissioner may:
    1. Prosecute an action provided in this chapter in any court in this state or in any other state.
    2. Appeal from an adverse judgment to the courts of last resort.
    3. Settle and compromise an action if it is in the best interests of the receiptholders.
    4. Settle and compromise an action if it is in the best interests of the credit-sale contract claimants.
    5. Upon payment of the amount of the compromise or of the full amount of an insurance policy, bond, or conversion claim, exonerate the person so compromising or paying in full from further liability growing out of the action.

    4.1-58-52. Commissioner's authority - Warehouseman - Trust assets 🗎 PDF 

    Upon the commissioner's determination continued operation of a warehouseman is likely to result in probable loss of assets to receiptholders, the commissioner may immediately suspend, close, or take control of the assets held in a trust fund described in section 4.1-58-45, or take any combination of these actions as the commissioner deems necessary to begin an orderly liquidation of those trust fund assets as provided in this chapter.

    4.1-58-53. Money received by trustee - Deposited in Bank of North Dakota 🗎 PDF 

    All moneys collected and received by the commissioner as trustee under this chapter, pending the marshalling of the fund, must be deposited in the Bank of North Dakota.

    4.1-58-54. Report of trustee - Approval - Distribution 🗎 PDF 

    1. Upon the receipt and evaluation of claims, the commissioner shall file a report showing the amount and validity of each claim after recognizing relevant:
      1. Liens or pledges;
      2. Assignments;
      3. Deductions due to advances or offsets accrued for the licensee;
      4. Cash claims or checks;
      5. Credit-sale contracts or noncredit-sale contract; and
      6. The amount remaining to be paid based on the terms of the contract.
    2. The report also must contain the proposed reimbursement to the commissioner for the expenses of administering the insolvency, the proposed distribution of the trust fund assets to receiptholders, less expenses incurred by the commissioner in the administration of the insolvency, and the proposed credit-sale contract indemnity fund payments to credit-sale contract claimants. If the trust fund is insufficient to redeem all receiptholder claims in full, the report should list the funds as prorated.
    3. The commissioner shall set a hearing and the appropriate notice for interested persons to show cause why the commissioner's report should not be approved and distribution of the trust fund be made as proposed. Copies of the report and notice of hearing must be served by the commissioner by certified mail upon the licensee and the surety and by ordinary mail upon all persons having claims filed with the commissioner.
    4. An aggrieved person having an objection to the commissioner's report shall file the objection with the commissioner and serve copies on the commissioner, the licensee, and the surety at least twenty days before the hearing. Failure to file and serve objections in the time set is a waiver of the objection.
    5. Following the hearing, the commissioner shall approve or modify the report and issue an order directing payment of the necessary bond proceeds, distribution of the trust fund, payments from the credit-sale contract indemnity fund, and discharge of the commissioner from the commissioner's trust.
    6. If an aggrieved person still has objection with the commissioner's report after hearing the person may appeal to district court.

    4.1-58-55. Filing fees and court costs - Expenses 🗎 PDF 

    1. In any action in a state court in this state, the commissioner may not be required to pay any filing fee or other court costs or disbursements if the fees accrue to the county or to the state.
    2. The attorney general may employ outside legal services to assist the commissioner in the prosecution of such action as in the attorney general's judgment may be necessary and the commissioner shall deduct the expenses of the legal services from the trust fund and the credit-sale contract indemnity fund as appropriate.
    3. All other necessary expenses incurred by the commissioner in carrying out this chapter, including adequate insurance to protect the commissioner, the commissioner's employees, and others engaged in carrying out this chapter, must be reimbursed to the commissioner from the trust fund and credit-sale indemnity funds as appropriate.

    4.1-58-56. Violations of chapter - Criminal penalty - Civil penalty 🗎 PDF 

    1. A person violating a provision of this chapter or a rule adopted pursuant to this chapter, if punishment is not specifically provided for, is:
      1. Guilty of an infraction; and
      2. Subject to a civil penalty in an amount not to exceed five thousand dollars for each violation.
    2. The civil penalty may be adjudicated by the agriculture commissioner through an administrative hearing or by a court in an appeal of an administrative hearing.

    Chapter 59 — Grain Buyers

    4.1-59-01. Definitions 🗎 PDF 

    In this chapter, unless the context or subject matter otherwise requires:
    1. "Credit-sale contract" means a written contract for the sale of grain pursuant to which the sale price is to be paid or may be paid more than thirty days after the delivery or release of the grain for sale and which contains the notice provided in section 4.1-59-13. If a part of the sale price of a contract for the sale of grain is to be paid or may be paid more than thirty days after the delivery or release of the grain for sale, only that part of the contract is a credit-sale contract.
    2. "Deferred-payment contract" means a credit-sale contract for which the amount owed for the sale of grain has been established, but the payment is postponed until a later date.
    3. "Facility" means a structure in which grain purchased by a grain buyer is received or held.
    4. "Grain" means wheat, durum, oats, rye, barley, buckwheat, flaxseed, speltz, safflower, sunflower seeds, tame mustard, peas, beans, soybeans, corn, clover, millet, alfalfa, and any other commercially grown grain or grass seed. "Grain" does not include grain or grass seeds owned by or in the possession of the grain buyer which have been cleaned, processed, and specifically identified for an intended use of planting for reproduction and for which a warehouse receipt has not been issued.
    5. "Grain broker" means a person that:
      1. Is involved in the negotiation of grain transactions in the state;
      2. Receives compensation from at least one party to the transaction; and
      3. Does not take title to the grain and is not under any financial or contractual obligation related to the transaction.
    6. "Grain buyer" means a person, other than a public warehouseman as defined in chapter 4.1-58, which purchases or otherwise merchandises grain for compensation. The term includes a roving grain buyer, grain broker, and grain processor. The term does not include:
      1. A producer of grain that purchases grain from other grain producers to complete a carload or truckload in which the greater portion of the load is grain grown by the purchasing producer or used by the purchasing producer for on-farm feedlot operations in which at least fifty percent of the livestock is owned by the owner of the farm.
      2. A person permitted to sell seed under chapter 4.1-53, if that person buys grain only for processing and subsequent resale as seed.
      3. A person that is an authorized dealer or agent of a seed company holding a permit in accordance with section 4.1-53-38.
    7. "Grain processor" means an entity that purchases grain to process into end products of a substantially different makeup or nature than the original grain.
    8. "Noncredit-sale contract" means a contract for the sale of grain other than a credit-sale contract.
    9. "Receipts" means scale tickets, checks, or other memoranda given by a grain buyer for, or as evidence of, the receipt or sale of grain except when the memoranda was received as a result of a credit-sale contract.
    10. "Roving grain buyer" means a grain buyer that does not operate a facility where grain is received.

    4.1-59-02. Duties of the commissioner 🗎 PDF 

    The commissioner shall:
    1. Exercise general supervision of grain buyers of this state.
    2. Investigate all complaints of fraud and injustice, unfair practices, and unfair discrimination.
    3. Examine and inspect, during ordinary business hours, any books, documents, and records.
    4. Make all proper rules for carrying out and enforcing any law in this state regarding grain buyers.

    4.1-59-03. Commissioner's authority - Grain buyer - Trust assets 🗎 PDF 

    Upon the commissioner's determination continued operation of a grain buyer is likely to result in probable loss of assets to receiptholders, the commissioner may immediately suspend, close, or take control of the assets held in a trust fund described in section 4.1-59-22, or take any combination of these actions as the commissioner deems necessary to begin an orderly liquidation of those trust fund assets as provided in this chapter.

    4.1-59-04. Federal licensed inspector and employees 🗎 PDF 

    The commissioner may employ a federal licensed inspector and other employees as necessary to carry out this chapter.

    4.1-59-05. Grain marketing - Procedure for resolving disputes 🗎 PDF 

    1. If a dispute or disagreement arises between the person receiving and the person delivering grain as to the proper grade, dockage, vomitoxin level, moisture content, or protein content of any grain, an average sample of at least three pints [1.65 liters] of the grain in dispute may be taken together by both interested parties.
      1. The sample must be certified by each party as a true and representative sample of the grain in dispute on the day the grain was transferred.
      2. The sample must be forwarded in a suitable container by parcel post or express, prepaid with the name and address of both parties for inspection by a federal licensed inspector, or a mutually agreed-upon third party, that may examine the grain and adjudge what grade, dockage, vomitoxin level, moisture content, or protein content the sample of grain is entitled to under the inspection rules and grades adopted by the secretary of agriculture of the United States.
      3. The person requesting the inspection service shall pay for the inspection.
      4. If the grain in question is damp, otherwise out of condition, or if moisture content is in dispute, the sample must be placed in an airtight container.
      5. Payment for the grain involved in the dispute must be made and accepted on the basis of the determination made by the federal licensed inspector or third party. All quality factors also may be considered in determining the price of the grain.
      6. An appeal of the determination made by a third party other than a federal licensed inspector may be made to a federal licensed inspector.
      7. An appeal of the determination made by a federal licensed inspector may be made as provided under the United States Grain Standards Act [Pub. L. 103-354; 108 Stat. 3237; 7 U.S.C. 79(c) and (d)] and under 7 CFR 800.125-800.140.
      8. A person not abiding by a final determination is liable for damage resulting from not abiding by the determination.
    2. If a dispute or disagreement arises between the person delivering grain and the person receiving grain as to the determination of quality factors of grain purchased or delivered in the state for which inspection rules and grades have not been adopted by the secretary of agriculture of the United States, an average sample of at least three pints [1.65 liters] of the grain in dispute may be taken together by the interested parties.
      1. The sample must be certified by each party as a true and representative sample of the grain in dispute on the day the grain was transferred.
      2. If the grain is damp or otherwise out of condition, the sample must be placed in an airtight container.
      3. The sample must be forwarded in a suitable container by parcel post or express, prepaid with the name and address of both parties, for inspection by a federal licensed inspector, or a mutually agreed-upon third party, that may examine the grain and determine the quality factors in dispute.
      4. The person requesting the inspection service shall pay for the inspection.
      5. The determination made by the inspector, or the third party, must be used in the settlement of the dispute.

    4.1-59-06. Release of records - Confidentiality 🗎 PDF 

    1. As a condition of licensure, an applicant shall agree to provide the commissioner, upon request, any financial record the commissioner deems relevant for purposes related to:
      1. The issuance or renewal of a grain buyer license; or
      2. An investigation after issuance or renewal of a grain buyer license.
    2. As a condition of licensure, an applicant shall file a records release with the commissioner, authorizing the commissioner to obtain from any source any financial record the commissioner deems relevant for purposes related to:
      1. The issuance or renewal of a grain buyer license; or
      2. An investigation after issuance or renewal of a grain buyer license.
    3. Information obtained by the commissioner under this section is confidential and may be provided only:
      1. To federal authorities in accordance with federal law;
      2. To the attorney general, state agencies, and law enforcement agencies for use in the pursuit of official duties; and
      3. As directed by an order of a court pursuant to a showing of good cause.

    4.1-59-07. Grain buyer license - Financial criteria to be met 🗎 PDF 

    1. To be eligible to receive an annual license, an applicant shall submit financial documentation to the commissioner verifying the applicant has satisfactory net worth and working capital, as determined by the commissioner.
    2. A licensed grain buyer or an applicant for initial licensure shall report balance sheets and income statements to the commissioner annually on written application for initial licensure or license renewal if the applicant purchased up to ten million dollars worth of grain during the previous licensing period, or intends to purchase up to ten million dollars worth of grain during the first year of operation.
    3. As a condition of licensure, an applicant shall provide to the commissioner, upon request, any financial record or bank verification release the commissioner deems relevant for the purpose of verifying the financial information of an applicant under this section.
    4. As a condition of licensure, a new applicant must:
      1. Pass a background check;
      2. Have a satisfactory credit score, as determined by the commissioner; and
      3. Be a responsible person with a good business reputation, as determined by the commissioner, that:
        1. Is in the grain buying business;
        2. Has knowledge of, and experience with, generally accepted grain buying and handling practices;
        3. Is competent and willing to operate as a grain buyer in accordance with state and federal regulations; and
        4. Has not committed fraud or a criminal offense indicating a lack of business integrity or honesty that undermines the person's responsibility as a grain buyer.

    4.1-59-08. Grain buyer license - How obtained - Fee - Penalty 🗎 PDF 

    1. Grain buyers that purchase, solicit, merchandise, or take possession of grain in this state shall obtain an annual license from the commissioner. Except as provided in this section, each license expires on July thirty-first of each year. If a licensee's initial license is issued effective after May thirty-first, that license expires on July thirty-first of the following year. The annual license fee for a grain buyer is:
      1. Four hundred dollars for a grain buyer that purchased up to one million dollars worth of grain during the previous licensing period, or intends to purchase up to one million dollars worth of grain during the first year of operation;
      2. Eight hundred dollars for a grain buyer that purchased more than one million dollars worth of grain but not more than ten million dollars worth of grain during the previous licensing period, or intends to purchase more than one million dollars worth of grain but not more than ten million dollars worth of grain during the first year of operation; and
      3. One thousand two hundred dollars for a grain buyer that purchased more than ten million dollars worth of grain during the previous licensing period, or intends to purchase more than ten million dollars worth of grain during the first year of operation.
    2. A license renewal application received after July fifteenth must be assessed an additional one hundred dollar fee per receiving location.
    3. A license issued under this section is not transferable.
    4. The commissioner may refuse to issue or renew or may revoke a license:
      1. If the licensee or applicant has been convicted of a criminal offense;
      2. If the licensee or applicant has failed to comply with the requirements of this section;
      3. If the commissioner has evidence the licensee negotiated in bad faith; or
      4. For any other reason as determined by the commissioner.
    5. A licensed grain buyer shall submit a monthly report to the commissioner by the tenth day of each month. The report must include the total value of each commodity brokered in the preceding month.
    6. A licensed grain buyer shall notify each potential commodity seller of the identity of the potential commodity buyer before the final confirmation of the transaction.
    7. Before a license is effective for a grain buyer, the licensee or applicant shall file a bond with the commissioner for not less than one hundred thousand dollars.
    8. A grain buyer must have the buyer's license in possession at all times.
    9. A grain buyer that transacts business without first procuring a license and giving a bond is guilty of a class B misdemeanor.

    4.1-59-09. Bond filed by grain buyer 🗎 PDF 

    1. Before a license is effective for a grain buyer under this chapter, the applicant for the license shall file a bond with the commissioner which must:
      1. Be in a sum not less than one hundred thousand dollars.
      2. Be continuous, unless the corporate surety by certified mail notifies the licensee and the commissioner the surety bond will be canceled ninety days after receipt of the notice of cancellation.
      3. Run to this state for the benefit of all persons selling grain to or through the grain buyer.
      4. Be conditioned:
        1. For the faithful performance of the licensee's duties as a grain buyer.
        2. For compliance with the provisions of law and the rules of the commissioner relating to the purchase of grain by the commissioner monthly.
      5. Be for the specific purpose of:
        1. Protecting the sellers of grain.
        2. Covering the costs incurred by the commissioner in the administration of the licensee's insolvency.
      6. Not accrue to the benefit of any person entering a credit-sale contract with a grain buyer.
    2. The aggregate liability of the surety under a bond does not accumulate for each successive annual license renewal period during which the bond is in force but, for losses during any annual license renewal period, is limited in the aggregate to the bond amount stated or changed by appropriate endorsement or rider.
    3. The commissioner shall set the amount of the bond and may require an increase in the amount of a bond as the commissioner deems necessary to accomplish the purposes of this section.
    4. The amount of the bond for a grain buyer must be based on the dollar value of the grain purchased, solicited, or merchandised.
    5. A grain buyer shall report purchases, solicitations, and merchandising agreements to the commissioner monthly.
    6. The surety on the bond must be a corporate surety company, approved by the commissioner and authorized to do business within the state. The commissioner may accept cash, a negotiable instrument, or a bond executed by personal sureties in lieu of a surety bond when, in the commissioner's judgment, cash, a negotiable instrument, or a personal surety bond properly will protect the holders of outstanding receipts.

    4.1-59-10. Bond discount 🗎 PDF 

    1. The licensee may request a bond reduction based upon the licensee's payment policy.
      1. The required bond is reduced by thirty percent for a licensee that establishes and follows a payment policy approved by the commissioner of ten days or fewer.
      2. The required bond is reduced by fifteen percent for a licensee that establishes and follows a payment policy approved by the commissioner of eleven to twenty-one days.
    2. A reduction under this section may not be used to reduce required bond below the minimum bond set by law.

    4.1-59-11. Bond cancellation - Release of surety 🗎 PDF 

    The surety on a bond is released from all future liability accruing on the bond after the expiration of ninety days from the date of receipt by the commissioner of notice of cancellation by the surety or on a later date specified by the surety. This provision does not operate to relieve, release, or discharge the surety from any liability already accrued or which accrues before the expiration of the ninety-day period. Unless the grain buyer files a new bond at least thirty days before liability ceases, the commissioner, without hearing, immediately shall suspend the grain buyer's license and the suspension may not be removed until a new bond has been filed and approved by the commissioner.

    4.1-59-12. Revocation and suspension 🗎 PDF 

    The commissioner may suspend or revoke the license of a grain buyer for cause upon notice and hearing. Notwithstanding any other provision of this chapter, the commissioner shall suspend the license of a grain buyer for failure at any time to maintain a bond.

    4.1-59-13. Scale ticket - Contents 🗎 PDF 

    Every grain buyer, upon receiving grain, shall issue a uniform scale ticket or comparable receipt for each load of grain received. Receipts must be numbered consecutively and one copy of each receipt must be retained and remain as a permanent record. The original receipt must be delivered to the person from which the grain is received, upon each load of grain.

    4.1-59-14. Credit-sale contracts 🗎 PDF 

    1. A grain buyer may not purchase grain by a credit-sale contract except as provided in this section. All credit-sale contracts must be in writing and must be consecutively numbered when printing the contract. The grain buyer shall maintain an accurate record of all credit-sale contract numbers, including the disposition of each numbered form, whether by execution, destruction, or otherwise. Each credit-sale contract must include:
      1. The seller's name and address.
      2. The conditions of delivery.
      3. The amount and kind of grain delivered.
      4. The price per unit or basis of value.
      5. The date payment is to be made.
      6. The duration of the credit-sale contract.
      7. Notice in a clear and prominent manner that the sale is not protected by the bond coverage provided for in section 4.1-59-09. However, if the grain buyer has obtained bond coverage in addition to that required by section 4.1-59-09 and the coverage extends to the benefit of credit-sale contracts, the grain buyer may state that fact in the credit-sale contract along with the extent of the coverage.
    2. The contract must be signed by both parties and executed in duplicate. An electronic signature satisfies this requirement. A holder of an unsigned contract is not eligible for any protection provided by chapter 4.1-61. The grain buyer shall retain one copy and deliver one copy to the seller. Upon revocation, termination, or cancellation of a grain buyer's license, the payment date for all credit-sale contracts, at the seller's option, must be advanced to a date not later than thirty days after the effective date of the revocation, termination, or cancellation, and the purchase price for all unpriced grain must be determined as of the effective date of revocation, termination, or cancellation in accordance with all other provisions of the contract.
    3. A buyer that offers deferred-payment contracts shall inform producers of bond protection.

    4.1-59-15. Discrimination by grain buyer prohibited 🗎 PDF 

    1. A grain buyer may not discriminate:
      1. In the buying, selling, receiving, and handling of grain or in the charges made or the service rendered to owners of purchased grain;
      2. In the receiving of grain offered for sale, but this chapter does not require a processor to receive or purchase any lot or kinds of grain;
      3. In regard to the persons offering grain for sale; or
      4. Between points or stations except as the marketing factors or transportation costs or grain quality premiums may warrant.
    2. A grain buyer is not required to receive any grain that is heating or otherwise out of condition.

    4.1-59-16. Records required to be kept by grain buyers 🗎 PDF 

    A grain buyer shall keep such accounts, records, and memoranda concerning the buyer's dealing as the grain buyer as may be required by the commissioner and shall make any reports of purchases of grain as may be required by the rules adopted by the commissioner. The commissioner at all times must have access to the accounts, records, and memoranda.

    4.1-59-17. Reports to be made by grain buyers - Penalty for failure - Confidential records 🗎 PDF 

    1. Each licensed and bonded grain buyer shall:
      1. Prepare for each month a report giving facts and information called for on the form of report prepared by the commissioner.
        1. The report must contain or be verified by a written declaration the report is made under the penalties of perjury.
        2. The report may be called for more frequently if the commissioner deems necessary.
        3. Information pertaining to the value of grain handled is a confidential trade secret and is not a public record. The commissioner may make this information available for use by other governmental entities, but the information may not be released by those entities in a manner that jeopardizes the confidentiality of individual licensees.
      2. File the report with the commissioner not later than the last day of the following month. Failure to file this report promptly is cause for revoking the grain buyer license after due notice and hearing.
      3. Keep a separate account of the grain business. If the grain buyer is engaged in handling or selling any other commodity, the grain account and other accounts may not be mixed.
      4. Submit additional information requested by the commissioner pursuant to a report or an inspection within five business days.
    2. The commissioner may refuse to renew a license to any grain buyer that fails to make a required report.

    4.1-59-18. Standard weights to be used - Exception 🗎 PDF 

    A person purchasing grain may not use any measure for the grain other than the standard bushel, and a number of pounds may not be used or called a bushel other than the number of pounds provided by law as the standard weight of the kind of grain in question, except that during the months of October and November, not exceeding eighty-two pounds [37.19 kilograms], and during the months of December and January, not exceeding seventy-six pounds [34.47 kilograms], may be used as the standard weight per bushel of new ear corn.

    4.1-59-19. Federal grades to control - Grades to be posted 🗎 PDF 

    1. A grain buyer shall purchase grain, except dry edible beans, in accordance with the official grades established by the secretary of agriculture of the United States, except as otherwise provided in applicable rules and regulations adopted by federal officials pursuant to law.
    2. A grain buyer of dry edible beans shall purchase and deliver beans in accordance with the buyer's policy, which must be filed with the commissioner and, if applicable, posted in a conspicuous place in the buyer's facility.
    3. Other grading standards may be used if mutually agreed to in writing by the grain buyer and the owner of the grain. However, the owner may demand the use of federal grading standards.
    4. After hearing, the commissioner may prohibit the use of nonfederal grades.

    4.1-59-20. Grading of grain - Penalty 🗎 PDF 

    A grain buyer, before testing for grade any grain handled by the grain buyer, shall remove and make due allowance for any dockage of the grain made by reason of the presence of straw, weed seeds, dirt, or any other foreign matter. A grain buyer that violates this provision is guilty of a class B misdemeanor.

    4.1-59-21. Insolvency of grain buyer 🗎 PDF 

    A licensee is insolvent when the licensee refuses, neglects, or is unable upon proper written demand, including electronic communication, to pay for grain purchased or marketed by the licensee or is unable to make redelivery upon proper written demand, including electronic communication. The licensee may not assess receiving or redelivery fees on grain.

    4.1-59-22. Trust fund established - Trustee 🗎 PDF 

    1. Upon the insolvency of a licensee, a trust fund must be established for the benefit of noncredit-sale receiptholders and to pay the costs incurred by the commissioner in the administration of the insolvency. The trust fund consists of the following:
      1. Nonwarehouse receipt grain of the insolvent licensee held in storage or the proceeds obtained from the conversion of the grain.
      2. The proceeds, including accounts receivable, from any grain sold from the time of the filing of the claim that precipitated an insolvency until the commissioner is appointed trustee must be remitted to the commissioner and included in the trust fund.
      3. The proceeds of insurance policies on destroyed grain.
      4. The claims for relief, and proceeds from the claims for relief, for damages upon bond given by the licensee to ensure faithful performance of the duties of a licensee.
      5. The claim for relief, and proceeds from the claim for relief, for the conversion of any grain stored in the warehouse.
      6. Unencumbered accounts receivable for grain sold before the filing of the claim that precipitated an insolvency.
      7. Unencumbered equity in grain hedging accounts.
      8. Unencumbered grain product assets.
    2. Upon the insolvency of a grain buyer, the commissioner shall act as trustee of the trust fund.
    3. All funds received by the commissioner as trustee must be deposited in the Bank of North Dakota.

    4.1-59-23. Joinder of surety - Deposit of proceeds 🗎 PDF 

    Each surety on the insolvent licensee's bonds must be joined as a party to the insolvency proceeding. If it is in the best interests of the receiptholders, the court may order a surety to deposit some or all of the penal sum of the bond into the trustee's trust account pending determination of the surety's liability under the bond.

    4.1-59-24. Joinder - Grain broker 🗎 PDF 

    A licensed grain broker may be joined as a party to an insolvency proceeding if the commissioner determines the grain broker negotiated a grain transaction with an insolvent grain buyer or which was discriminatory, predatory, or in bad faith.

    4.1-59-25. Notice to receiptholders and credit-sale contract claimants 🗎 PDF 

    1. Upon the commissioner's appointment, the commissioner may take possession of relevant books and records of the licensee.
    2. If the insolvency involves a roving grain buyer, the commissioner shall publish a notice of the commissioner's appointment once each week for two consecutive weeks in all daily newspapers in the state and may notify, by ordinary mail, the holders of record of outstanding receipts and those that are potential credit-sale contract claimants, disclosed by the licensee's records.
    3. If the insolvency involves a grain processor, the notice must be published once each week for two consecutive weeks in a newspaper in the county in which the facility is located.
    4. The notice must require outstanding receiptholders and credit-sale contract claimants to file claims with the commissioner along with the receipts, contracts, or other evidence of the claims required by the commissioner.
    5. If an outstanding receiptholder or credit-sale contract claimant fails to submit a claim within forty-five days after the last publication of the notice or a longer time set by the commissioner, the commissioner is relieved of further duty in the administration of the insolvency on behalf of the receiptholder or credit-sale contract claimant and the receiptholder may be barred from participation in the trust fund, and the credit-sale contract claimant may be barred from payment for any amount due.
    6. Outstanding receiptholders and credit-sale contract claimants are not parties to the insolvency action unless admitted by the court upon a motion for intervention.

    4.1-59-26. Remedy of receiptholders 🗎 PDF 

    A receiptholder does not have a separate claim for relief upon any insolvent licensee's bond, for insurance, against any person converting grain, nor against any other receiptholder, except through the trustee, unless, upon demand of five or more receiptholders, the commissioner fails or refuses to apply for the commissioner's own appointment or unless the district court denies the application. This chapter does not prohibit a receiptholder, either individually or with other receiptholders, from pursuing concurrently any other remedy against the person or property of the licensee.

    4.1-59-27. Commissioner to marshall trust assets 🗎 PDF 

    Upon the commissioner's appointment, the commissioner shall marshall all trust fund assets. The commissioner may maintain suits in the name of the state of North Dakota for the benefit of all receiptholders against the licensee's bonds, insurers of grain, any person that may have converted any grain, and any person that may have received preferential treatment by being paid by the insolvent licensee after the first default.

    4.1-59-28. Power of commissioner to prosecute or compromise claims 🗎 PDF 

    The commissioner may:
    1. Prosecute an action provided in sections 4.1-59-21 through 4.1-59-31 in any court in this state or in any other state.
    2. Appeal from an adverse judgment to the courts of last resort.
    3. Settle and compromise an action if it will be in the best interests of the receiptholders.
    4. Settle and compromise an action if it is in the best interests of the credit-sale contract claimants.
    5. Upon payment of the amount of any settlement or of the full amount of any bond, exonerate the person so paying from further liability growing out of the action.

    4.1-59-29. Report of trustee - Approval - Distribution 🗎 PDF 

    1. Upon the receipt and evaluation of claims, the commissioner shall file a report showing the amount and validity of each claim after recognizing:
      1. Relevant liens or pledges.
      2. Relevant assignments.
      3. Relevant deductions due to advances or offsets accrued in favor of the licensee.
      4. Relevant cash claims or checks, the amount of the claim.
      5. Relevant credit-sale contract or noncredit-sale contract, the amount remaining to be paid based on the terms of the contract.
    2. The report also must contain the proposed reimbursement to the commissioner for the expenses of administering the insolvency, the proposed distribution of the trust fund assets to receiptholders, less expenses incurred by the commissioner in the administration of the insolvency, and the proposed credit-sale contract indemnity fund payments to credit-sale contract claimants. If the trust fund is insufficient to redeem all receiptholder claims in full, the report must list the funds as prorated.
    3. The commissioner shall set a hearing and the appropriate notice for interested persons to show cause why the commissioner's report should not be approved and distribution of the trust fund be made as proposed. The commissioner shall serve copies of the report and notice of hearing by certified mail upon the licensee and the surety and by ordinary mail upon all persons having claims filed with the commissioner.
    4. An aggrieved person having an objection to the commissioner's report shall file the objection with the commissioner and serve copies on the commissioner, the licensee, and the surety at least twenty days before the hearing. Failure to file and serve objections in the time set is a waiver of the objection.
    5. Following the hearing, the commissioner shall approve or modify the report and issue an order directing payment of the necessary bond proceeds, distribution of the trust fund, payments from the credit-sale contract indemnity fund, and discharge of the commissioner from the commissioner's trust.
    6. If an aggrieved person still has objection with commissioner's report after hearing the person may appeal to district court.

    4.1-59-30. Filing fees and court costs - Expenses 🗎 PDF 

    1. The commissioner may not be required to pay any filing fee or other court costs or disbursements.
    2. The attorney general may appoint outside legal counsel to assist the commissioner in the prosecution of the action and the cost of employing outside counsel must be paid from the trust fund and the credit-sale contract indemnity fund as appropriate.
    3. All other necessary expenses incurred by the commissioner in carrying out this chapter, including adequate insurance to protect the commissioner, the commissioner's employees, and others engaged in carrying out sections 4.1-59-21 through 4.1-59-31, must be reimbursed to the commissioner from the trust fund and credit-sale contract indemnity funds as appropriate.

    4.1-59-31. Cease and desist 🗎 PDF 

    If a person engages in an activity or practice contrary to the provisions of this chapter or related rules, the commissioner, upon the commissioner's own motion without complaint, with or without hearing, may order the person to cease and desist from the activity until further order of the commissioner. An order may include any corrective action up to and including license suspensions. A cease and desist order must be accompanied by a notice of opportunity to be heard on the order within fifteen days of the issuance of the order.

    4.1-59-32. Agricultural contracts - Mediation and arbitration 🗎 PDF 

    If a written contract for the sale of grain does not contain provisions to settle disagreements concerning factors not governed by section 4.1-59-04, the parties shall attempt to resolve the disagreements through mediation or arbitration.

    4.1-59-33. Roving grain buyers - Exception - Applicability of provisions 🗎 PDF 

    Notwithstanding any other law, this chapter does not apply to any person that purchases, solicits, or merchandises grain, that has been cleaned, processed, and made ready for consumption, from a public warehouseman licensed and bonded under chapter 4.1-58. If the person engages in any activity other than those described in this section, the person is subject to the law governing those other activities.

    4.1-59-34. Violations of chapter - Criminal penalty - Civil penalty 🗎 PDF 

    1. A person violating a provision of this chapter or a rule adopted pursuant to this chapter, if punishment is not specifically provided for, is:
      1. Guilty of an infraction; and
      2. Subject to a civil penalty in an amount not to exceed five thousand dollars for each violation.
    2. The civil penalty may be adjudicated by a court or by the agriculture commissioner through an administrative hearing.

    Chapter 60 — Uniform Accounting For Public Elevators And Warehouses

    4.1-60-01. Public elevators and warehouses - Commissioner may require uniform accounting system 🗎 PDF 

    The commissioner may require every association, copartnership, corporation, or limited liability company conducting a public elevator or warehouse in this state to adopt a uniform accounting system established by the commissioner.

    4.1-60-02. Examination of financial accounts of elevator or warehouse by competent examiner - Request by percentage of stockholders 🗎 PDF 

    The commissioner may install, and if requested by not less than fifteen percent of the partners, stockholders, or members of any association, copartnership, corporation, or limited liability company conducting the public elevator or warehouse, shall install, the uniform system of accounting provided for in section 4.1-60-01. The commissioner on the commissioner's own motion may, or on request of the required percentage of partners, stockholders, or members, the commissioner shall, send a competent examiner to examine the books and financial accounts of the elevator or warehouse. If a request for the examination of the accounts of any association, copartnership, corporation, or limited liability company has been made to the commissioner, as provided for in this section, subsequent examinations must be made at least once every year until the commissioner is requested to discontinue the examination by resolution adopted by the partners, stockholders, or members at any annual meeting. If the examination has been made, the examiner shall report immediately the results of the examination to the president and the secretary of the association, copartnership, corporation, or limited liability company and to the commissioner.

    4.1-60-03. Certificate issued by commissioner after examination of accounts 🗎 PDF 

    1. If the commissioner is satisfied from the commissioner's examination that the association, copartnership, corporation, or limited liability company examined is solvent and the method of doing business is likely to be beneficial to all its members or persons interested therein, the commissioner shall issue a certificate, countersigned by the examiner, to the agent or manager. The certificate must be kept posted conspicuously in the warehouse or elevator of the association, copartnership, corporation, or limited liability company and must state:
      1. That the methods of doing business are sound.
      2. That the association, copartnership, corporation, or limited liability company is solvent.
      3. That its books and accounts are kept properly.
    2. If the affairs and methods of doing business of the association, copartnership, corporation, or limited liability company do not seem sound or satisfactory to the commissioner, the commissioner shall issue a certificate or statement, countersigned by the person that made the examination, stating in what particular and in what respect the business methods practiced or methods of keeping books and accounts of the association, copartnership, corporation, or limited liability company are not deemed safe. The commissioner shall mail a copy of the statement or certificate to each of the shareholders or stockholders as may have requested the commissioner to make the examination. The commissioner also shall send a copy to the president and the secretary of the association, copartnership, corporation, or limited liability company.

    4.1-60-04. Fees of examiner for installing and examining accounting system 🗎 PDF 

    For installing a uniform accounting system and examining the financial accounts of an elevator or public warehouse, an association, copartnership, corporation, or limited liability company shall pay the examiner a reasonable fee, as determined by the commissioner. If an association, copartnership, corporation, or limited liability company wrongfully refuses or neglects to pay the fees, the commissioner may cancel the license to do business. All fees must be paid into the state treasury. The expenses incurred by the examiner under this chapter must be paid out of the appropriations made by the legislative assembly for this purpose and the expenses must be audited and paid in the same manner as other expenses are audited and paid.

    Chapter 61 — Credit-Sale Contract Indemnity

    4.1-61-01. Credit-sale contracts - Assessment on grain - Submission of assessment 🗎 PDF 

    An assessment at the rate of two-tenths of one percent is placed on the value of all grain sold in this state under a credit-sale contract, as provided for in sections 4.1-58-17 and 4.1-59-13. The licensee purchasing the grain shall note the assessment on the contract required under sections 4.1-58-21 and 4.1-59-14 and shall deduct the assessment from the purchase price payable to the seller. The licensee shall submit any assessment collected under this section to the commissioner no later than thirty days after each calendar quarter. The commissioner shall deposit the assessments received under this section in the credit-sale contract indemnity fund.

    4.1-61-02. Credit-sale contract indemnity fund - Creation - Continuing appropriation 🗎 PDF 

    There is created in the state treasury the credit-sale contract indemnity fund. The state treasurer shall invest available moneys in the fund in accordance with section 21-10-07 and in cooperation with the commissioner shall deposit any income earned through the investments into the fund. The fund and earnings of the fund are appropriated to the commissioner on a continuing basis to be used exclusively to carry out the intent and purpose of this chapter.

    4.1-61-03. Credit-sale contract indemnity fund - Suspension of assessment 🗎 PDF 

    At the end of the calendar quarter in which the credit-sale contract indemnity fund reaches a level of six million dollars, the commissioner shall suspend collection of the assessment required by this chapter. If after suspension of collection the balance in the fund is less than three million dollars, the commissioner shall require collection of the assessment.

    4.1-61-04. Credit-sale contract indemnity fund - Eligibility for reimbursement 🗎 PDF 

    A person is eligible to receive indemnity payments from the credit-sale contract indemnity fund if:
    1. After August 1, 2003, the person sold grain to a licensed warehouse or a grain buyer in this state under a credit-sale contract;
    2. The licensed warehouse to which the person sold grain or the grain buyer to which the person sold grain becomes insolvent; and
    3. The licensed warehouse or the grain buyer, as a result of the insolvency, does not fully compensate the person in accordance with the credit-sale contract.

    4.1-61-05. Credit-sale contract indemnity fund - Availability of money 🗎 PDF 

    Upon the insolvency of a licensed warehouse or a grain buyer and a declaration the commissioner serve as the trustee, the commissioner shall make the proceeds of the credit-sale contract indemnity fund available for use in meeting the licensee's obligations with respect to the reimbursement of a person that sold grain to the licensee under a credit-sale contract and who was not fully compensated in accordance with the contract.

    4.1-61-06. Credit-sale contract indemnity fund - Reimbursement limit 🗎 PDF 

    The amount payable to an eligible person from the credit-sale contract indemnity fund for each insolvency may not exceed the lesser of eighty percent of the amount owed to that eligible person in accordance with all of that person's unsatisfied credit-sale contracts or two hundred eighty thousand dollars.

    4.1-61-07. Credit-sale contract indemnity fund - Prorated claims 🗎 PDF 

    If claims for indemnity payments from the credit-sale contract indemnity fund exceed the amount in the fund, the commissioner shall prorate the claims and pay the prorated amounts. As future assessments are collected, the commissioner shall continue to forward indemnity payments to each eligible person until the person receives the maximum amount payable in accordance with this chapter.

    4.1-61-08. Reimbursement for later insolvencies 🗎 PDF 

    The commissioner shall ensure all persons eligible for payment from the indemnity fund as a result of an insolvency are fully compensated to the extent permitted by this chapter before any payments from the indemnity fund are initiated as a result of a later insolvency. The chronological order of insolvencies is determined by the date the commissioner is appointed trustee under section 4.1-58-40 or 4.1-59-21.

    4.1-61-09. Credit-sale contract indemnity fund - Reimbursement for administrative expenses 🗎 PDF 

    Any expense incurred by the commissioner in administrating the credit-sale contract indemnity must be reimbursed from the fund before any other claim for indemnity is paid.

    4.1-61-10. Credit-sale contract indemnity fund assessment - Failure to collect assessment - Penalty 🗎 PDF 

    A person that knowingly or intentionally refuses or fails to collect the assessment required under this chapter from producers or to submit any assessment collected from producers to the commissioner for deposit in the credit-sale contract indemnity fund is guilty of a class A misdemeanor.

    4.1-61-11. Revocation and suspension 🗎 PDF 

    The commissioner may suspend or revoke the license of a licensee for cause upon notice and hearing for violation of this chapter.

    4.1-61-12. Cease and desist 🗎 PDF 

    If a person engages in an activity or practice contrary to this chapter or rules adopted by the commissioner, the commissioner, upon the commissioner's own motion without complaint and with or without a hearing, may order the person to cease and desist from the activity until further order of the commissioner. The order may include any corrective action up to and including license suspension. A cease and desist order must be accompanied by a notice of opportunity to be heard on the order within fifteen days of the issuance of the order.

    4.1-61-13. Claims 🗎 PDF 

    A claim concerning a grain buyer must be administered in a manner consistent with chapter 4.1-59. A claim concerning a state licensed grain warehouse must be administered in a manner consistent with chapter 4.1-58. A payment may not be made from the credit-sale contract indemnity fund for a claim based on losses resulting from the sale of grain to a person not licensed under chapter 4.1-58, chapter 4.1-59, or the United States Warehouse Act [Pub. L. 106-472; 114 Stat. 2061; 7 U.S.C. 241 et seq.].

    4.1-61-14. Subrogation 🗎 PDF 

    Money paid from the credit-sale contract indemnity fund in satisfaction of a valid claim constitutes a debt obligation of the person against which the claim was made. The commissioner may take action on behalf of the fund against a person to recover the amount of payment made, plus costs and attorney's fees. Recovery for reimbursement to the fund must include interest computed at the weight average prime rate charged by the Bank of North Dakota. Upon payment of a claim from the credit-sale contract indemnity fund, the claimant shall subrogate the interest of the claimant, if any, to the commissioner in a cause of action against all parties, to the amount of the loss that the claimant was reimbursed by the fund.

    4.1-61-15. Roving grain buyers - Exception - Applicability of provisions 🗎 PDF 

    Notwithstanding any other law, this chapter does not apply to a person that purchases, solicits, or merchandises grain, that has been cleaned, processed, and made ready for consumption, from a public warehouseman licensed and bonded under chapter 4.1-58. If the person engages in any activity other than those described in this section, the person is subject to the law governing those other activities.

    Chapter 72 — Stockmen'S Association

    4.1-72-01. North Dakota stockmen's association - Statutory authority 🗎 PDF 

    1. The North Dakota stockmen's association is a livestock association organized under the laws of this state and registered as a market agency under the Packers and Stockyards Act, 1921 [7 U.S.C. 181 et seq.]:
      1. For the protection of the livestock industry of this state; and
      2. To secure uniformity of inspection and cooperation with the United States department of agriculture.
    2. The association shall inspect all cattle, horses, and mules, which are shipped or consigned to any livestock auction market, buying station, or packing plant, in this state, and all those that are shipped or consigned to a livestock auction market, buying station, or packing plant, located outside this state, if brand inspection services are provided in accordance with section 4.1-73-24, for the purpose of determining or verifying ownership and for any other purpose established by law.

    4.1-72-02. Discrimination - Prohibited 🗎 PDF 

    The North Dakota stockmen's association may not discriminate between members of the association and persons who are not members of the association with respect to fees, recordings, complaints, requests for assistance, or any other duties assigned under this chapter.

    4.1-72-03. Office for recording brands - Chief brand inspector - Employment 🗎 PDF 

    The North Dakota stockmen's association shall:
    1. Maintain an office for recording brands; and
    2. Employ an individual to serve as the chief brand inspector of this state.

    4.1-72-04. Chief brand inspector - Deputy brand inspectors - Licensed peace officers 🗎 PDF 

    The chief brand inspector and any individual employed by the North Dakota stockmen's association to serve as a deputy brand inspector must be licensed peace officers in accordance with chapter 12-63 or hold a limited peace officer license under section 12-63-09. As used in this section "peace officer" has the same meaning as in section 12-63-01. These peace officers may exercise the full authority of their license to enforce the brand laws and any other state laws relating to livestock. The chief brand inspector and the deputy brand inspectors may provide aid and assistance to other law enforcement agencies or officers, upon request, provided the requests are not for continuous or ongoing assistance.

    4.1-72-04.1. Uniform complaint and summons - Promise to appear - Penalty 🗎 PDF 

    1. There is established a uniform complaint and summons that may be used by licensed peace officers under section 4.1-72-04 in cases involving violations of this title or other violations of state law. Whenever the complaint and summons established by this section is used, the provisions of the North Dakota Rules of Criminal Procedure apply. The uniform complaint and summons must comply with the North Dakota Rules of Criminal Procedure.
    2. The time of court appearance to be specified in the summons must be at least five days after the issuance of the summons unless the defendant demands an earlier hearing.
    3. Upon receipt from the defendant of a written promise to appear at the time and place specified in the summons, the defendant must be released from custody. After signing a promise to appear, the defendant must be given a copy of the uniform complaint and summons. Any individual refusing to give a written promise to appear may be arrested if proper cause exists, or proceeded against by complaint and warrant of arrest as provided in the North Dakota Rules of Criminal Procedure.
    4. If an individual fails to appear in court after promising to do so, the court may issue an arrest warrant.

    4.1-72-05. Premises identification program - Administration 🗎 PDF 

    The North Dakota stockmen's association shall serve as a state administrator and allocator for that portion of any federally sponsored premises identification program which pertains to cattle, horses, and mules.

    4.1-72-06. Federally sponsored programs - Administration - Records 🗎 PDF 

    1. Except as provided in subsection 2, any information created, collected, or maintained by the state veterinarian or the North Dakota stockmen's association with respect to the administration of any federally sponsored program pertaining to livestock as permitted by section 4.1-72-05 is confidential and not subject to the open records requirements of section 44-04-18.
    2. Neither the state veterinarian nor the North Dakota stockmen's association may release any information designated as confidential under subsection 1, except:
      1. Upon the written consent of every person identified or identifiable by the information;
      2. In accordance with federal law;
      3. To any state or federal agency for the purpose of animal disease control or animal disease traceback;
      4. To the attorney general and any other law enforcement agency pursuing a criminal investigation; or
      5. Pursuant to an order issued by a court upon a showing of good cause.
    3. This section does not preclude the exchange of information between the state veterinarian and the North Dakota stockmen's association.
    4. Any person violating this section is subject to the remedies set forth in section 44-04-21.2. For purposes of applying section 44-04-21.2, "public entity" includes any person that has contracted with the state for the administration of any federally sponsored program pertaining to livestock.

    4.1-72-07. Collection of fees - Continuing appropriation 🗎 PDF 

    The North Dakota stockmen's association shall forward all moneys received under this title to the state treasurer for deposit in a special fund known as the North Dakota stockmen's association fund. All moneys in the North Dakota stockmen's association fund, together with all income earned on the moneys in the fund, are appropriated on a continuing basis to the North Dakota stockmen's association to carry out its statutory directives.

    4.1-72-08. Biennial audit 🗎 PDF 

    At least once every two years, the North Dakota stockmen's association shall provide for an audit by a certified public accountant or a licensed public accountant and shall submit an electronic copy of the audit report to the legislative council.

    Chapter 73 — Branding Livestock

    4.1-73-01. Definition 🗎 PDF 

    For purposes of this chapter, "brand" means an identifying imprint placed on livestock by use of a hot branding iron or a freeze branding technique.

    4.1-73-02. Brand - Application for ownership 🗎 PDF 

    1. To acquire ownership of a brand, a person shall file an application with the North Dakota stockmen's association.
    2. The application must contain a depiction of the proposed brand.
    3. The application must include a statement regarding:
      1. The kind of livestock on which the brand will be placed; and
      2. The placement or position of the brand on each kind of livestock listed in subdivision a.
    4. The chief brand inspector shall review each application to ensure compliance with the requirements of this chapter.

    4.1-73-03. Brands - Requirements for recording 🗎 PDF 

    1. The chief brand inspector shall approve an application for ownership of a brand, filed in accordance with section 4.1-73-02, and record the brand, unless:
      1. The chief brand inspector determines that:
        1. Official records indicate the brand is owned by another person;
        2. The brand is deceptively similar to another recorded brand;
        3. The brand is recorded in another state;
        4. The brand may not be legible when placed on livestock; or
        5. The proposed placement or position of the brand does not meet the requirements of section 4.1-73-05; or
      2. The brand:
        1. Consists of only one letter, number, or symbol, except as provided in subsection 2;
        2. Contains either the letter "g" or the letter "q";
        3. Contains a letter not found in the modern English alphabet;
        4. Contains the numeral "0" or "1";
        5. Contains a dot;
        6. Contains a letter, number, or symbol placed within another letter, number, or symbol; or
        7. Contains a symbol other than:
          1. A diamond;
          2. An arrow;
          3. A mill iron;
          4. A cross;
          5. A heart;
          6. A box;
          7. A triangle;
          8. A quarter circle;
          9. A bar;
          10. A star; or
          11. A forward or a backward slash.
    2. The chief brand inspector may permit the recording of a brand that consists of one letter, number, or symbol, provided the brand meets all other statutory requirements for recording and is to be placed only on goats or sheep.

    4.1-73-04. Brand inspection certificate 🗎 PDF 

    Upon approving an application, the chief brand inspector shall provide a brand certificate to the owner. The certificate is evidence of the brand's ownership.

    4.1-73-05. Brands - Permissible locations 🗎 PDF 

    1. In the case of cattle, brands that meet all other statutory requirements for recording may be placed only on:
      1. A designated shoulder;
      2. A designated rib; or
      3. A designated hip.
    2. In the case of horses and mules, brands that meet all other statutory requirements for recording may be placed only on:
      1. A designated shoulder;
      2. A designated hip; or
      3. A designated jaw.
    3. In the case of bison, brands that meet all other statutory requirements for recording may be placed only on:
      1. A designated rib; or
      2. A designated hip.
    4. In the case of any other livestock, brands that meet all other statutory requirements for recording may be placed only on those locations designated by the chief brand inspector. For purposes of this subsection, the designation of locations is not subject to rulemaking under chapter 28-32.

    4.1-73-06. Recorded numerical brand - Impermissible placement 🗎 PDF 

    A person may not place a recorded brand that consists entirely of upright numbers on the hips of cattle.

    4.1-73-07. Numerical brands - Applicability of designated placement provisions 🗎 PDF 

    The design and placement restrictions set forth in this chapter do not apply to:
    1. A numerical brand that was first recorded before July 1,1957, and which has been continually rerecorded; or
    2. An unrecorded numerical brand that is used for purposes such as herd or animal identification or registration.

    4.1-73-08. Chief brand inspector - Determination regarding brand 🗎 PDF 

    A determination by the chief brand inspector regarding the acceptability of a brand or the permissibility of its location or placement, for purposes of recording, is final.

    4.1-73-09. Cancellation of brand 🗎 PDF 

    1. The chief brand inspector shall cancel a legally recorded brand if the chief brand inspector:
      1. Receives for filing a bill of sale for the brand, properly executed by the owner, as shown in the records of the chief brand inspector;
      2. Determines that the brand duplicates a previously recorded brand; or
      3. Determines that the brand was obtained through fraud, misrepresentation, or other illegal means.
    2. The chief brand inspector may cancel a legally recorded brand if the chief brand inspector determines that the brand has been recorded in another state.

    4.1-73-10. Expiration of brands 🗎 PDF 

    On January 1, 2016, and every five years thereafter, each livestock brand recorded in this state expires, unless:
    1. The brand was issued within the six-month period immediately preceding the date of expiration; or
    2. The brand has been rerecorded in accordance with this chapter.

    4.1-73-11. Expiration of brand - Notice to owner 🗎 PDF 

    1. Before September 1, 2015, and every five years thereafter, the chief brand inspector shall provide to each owner of record:
      1. Written notice of the brand's expiration date;
      2. Written notice of the owner's right to rerecord the brand; and
      3. A written statement indicating that if the brand is allowed to expire, the person will have lost ownership interest in the brand and may no longer use the brand.
    2. The chief brand inspector shall send the notice and statement required by this section to the owner:
      1. Electronically; or
      2. By first-class mail if requested by the owner.

    4.1-73-12. Expiration of brands - Notice by publication 🗎 PDF 

    1. The chief brand inspector shall publish in the official newspaper of each county a notice of the date by which livestock brands must be rerecorded in accordance with this chapter.
    2. The notice must be published at least once per week for three successive weeks. The first publication must occur between the first and fifteenth day of September, before the expiration of all brands.

    4.1-73-13. Brands authorized for rerecording 🗎 PDF 

    Notwithstanding any other provision of this chapter, the chief brand inspector shall accept for rerecording:
    1. Any brand that the owner previously recorded; and
    2. A brand that consists of one letter, number, or symbol, provided the brand is to be placed only on goats or sheep.

    4.1-73-14. Recording and rerecording brands - Fee 🗎 PDF 

    Each application for recording or rerecording a brand must be accompanied by a fee of fifty dollars.

    4.1-73-15. Reassignment of expired brand 🗎 PDF 

      1. Except as provided in subdivision b, for a period of one year from the date of a brand's expiration, the chief brand inspector may not reassign the expired brand to any person other than the registered owner at the time of the brand's expiration.
      2. If the person who owned the brand at the time it expired provides the chief brand inspector with written authorization, the chief brand inspector may reassign the brand to a new owner, at any time during the one-year period.
    2. Upon expiration of a brand and the passage of time or the procurement of authorization, as set forth in subsection 1, the chief brand inspector may accept an application to record the brand, provided the brand meets the requirements of this chapter.

    4.1-73-16. Use of unrecorded brand - Penalty 🗎 PDF 

    A person is guilty of a class B misdemeanor if the person places upon an animal a brand that has not been recorded in accordance with this chapter.

    4.1-73-17. Defacing brands - Unlawful branding - Penalty 🗎 PDF 

    A person is guilty of a class A misdemeanor for a first offense and a class C felony for a second or subsequent offense if the person:
    1. Alters, defaces, or attempts to alter or deface the brand on any animal owned by another for the purpose of deceiving others as to the animal's ownership; or
    2. Willfully brands, or causes to be branded, any animal owned by another for the purpose of deceiving others as to the animal's ownership.

    4.1-73-18. Bill of sale - Copy with shipment - Effect - Penalty 🗎 PDF 

      1. Except as provided in subsection 2, a person may not sell any livestock carrying a recorded brand unless the seller is the owner of the recorded brand and delivers a bill of sale for the livestock to the purchaser. The bill of sale must include:
        1. The date;
        2. The name, address, and signature of the seller;
        3. The name, address, and signature of an individual who is at least eighteen years of age and who can verify the name and signature of the seller;
        4. The name and address of the buyer;
        5. The total number of animals sold;
        6. A description of each animal sold as to sex and color; and
        7. A depiction of the recorded brand.
      2. The seller must deliver a bill of sale to the purchaser within fifteen days of the date of the sale.
      3. The buyer shall retain the bill of sale for as long as the buyer owns any animals described in the bill of sale.
      4. The seller shall provide a copy of the bill of sale to the individual hauling the livestock. The individual shall ensure that the document remains with the livestock while in transit.
      5. The bill of sale or a copy of the bill of sale must be shown by the possessor on demand to any law enforcement officer or brand inspector.
      6. The bill of sale is prima facie evidence of the sale of the livestock described in the bill of sale.
    2. Subsection 1 does not apply to the sale of livestock for which a brand inspector has issued a certificate of ownership.
    3. Any person willfully violating this section is guilty of a class B misdemeanor for a first offense and a class A misdemeanor for a second or subsequent offense.

    4.1-73-19. Proof of ownership - Alteration or falsification - Penalty 🗎 PDF 

    A person that knowingly makes, completes, alters, or in any way falsifies any document evidencing proof of livestock ownership, with the intent to deceive or harm another, is guilty of a class B felony.

    4.1-73-20. False proof of ownership - Sale of livestock - Penalty 🗎 PDF 

    A person willfully providing false proof of ownership in conjunction with the sale of livestock is guilty of a class B misdemeanor for a first offense and a class A misdemeanor for a second or subsequent offense.

    4.1-73-21. Transportation of livestock from state - Brand inspection - Penalty 🗎 PDF 

    1. A person may not transport or attempt to transport cattle, horses, or mules from this state unless a brand inspector has inspected the livestock and issued a certificate of ownership. The certificate must remain with the livestock while in transit and be presented to the purchaser upon arrival at the destination. This subsection does not apply to a person that:
      1. Transports cattle, horses, or mules from this state to obtain for the animals emergency medical treatment by a licensed veterinarian; or
      2. Transports cattle, horses, or mules from this state to a livestock auction market, buying station, or packing plant, that is located in a bordering state and which is provided with brand inspection services in accordance with section 4.1-73-24.
    2. A person may not remove cattle, horses, or mules from a livestock auction market, buying station, or packing plant until a brand inspector has inspected the livestock and issued a certificate of ownership.
    3. Any person willfully violating this section is guilty of a class A misdemeanor. Any person willfully violating this section a second time within five years or willfully violating this section three or more times is guilty of a class C felony.

    4.1-73-22. Request for reinspection - Cost 🗎 PDF 

    1. A person may request that a brand inspector conduct a reinspection if the person has reason to believe that:
      1. An error was made during the brand inspection; and
      2. Cattle, horses, or mules were shipped to an unintended destination as a result of the error.
    2. If it is determined that an error was made during the brand inspection, the North Dakota stockmen's association shall bear the cost of the reinspection. If it is determined that a brand inspection error was not made, the person that requested the reinspection shall reimburse the North Dakota stockmen's association for the cost of the reinspection.

    4.1-73-23. Brand inspection services - Out-of-state facilities 🗎 PDF 

    1. The state board of animal health may authorize the provision of brand inspection services at a livestock auction market, buying station, or packing plant located outside this state.
    2. In order to obtain brand inspection services under this section, an entity shall file a petition with the state board of animal health.
    3. Before making a determination on the petition, the state board of animal health shall provide the North Dakota stockmen's association with an opportunity to comment.
    4. The state board of animal health shall establish by rule the criteria to be considered in determining whether to authorize the services.

    4.1-73-24. Rules - Fees for brand inspection 🗎 PDF 

    1. The state board of animal health, after seeking advice from the North Dakota stockmen's association, shall adopt rules regarding:
      1. The provision of brand inspection services at livestock auction markets, packing plants, and buying stations; and
      2. The provision of brand inspection services at locations other than those listed in subdivision a.
    2. The rules must include:
      1. The fees to be charged for the provision of the brand inspections;
      2. The collection of fees by the brand inspectors; and
      3. The time and manner in which the brand inspectors must submit the fees to the North Dakota stockmen's association.

    4.1-73-25. Slaughtering of cattle - Records - Penalty 🗎 PDF 

    1. Any person slaughtering cattle on a custom basis or for the purpose of selling the meat at retail or wholesale shall record:
      1. The date each animal was purchased or accepted for custom slaughtering;
      2. The name and address of:
        1. The seller; or
        2. The person for whom custom slaughtering is being performed;
      3. The animal's age or estimated age;
      4. The animal's sex; and
      5. Any brand found on the animal.
    2. Any person required to record information in accordance with this section shall:
      1. Compile the information in the manner directed by the North Dakota stockmen's association; and
      2. Forward the information to the North Dakota stockmen's association at least quarterly.
    3. Until such time as the information is forwarded to the North Dakota stockmen's association, any person required to record information in accordance with this section shall make the information available for inspection by a representative of the association, upon request.
    4. Any information created, collected, or maintained by the North Dakota stockmen's association under this section is confidential and not subject to the open records requirements of section 44-04-18. The information may be released by the association only:
      1. Upon the written consent of every person identified or identifiable by the information;
      2. In accordance with federal law;
      3. To any state or federal agency for the purposes of animal disease control or animal disease traceback;
      4. To the attorney general and any other law enforcement agency pursuing a criminal investigation; or
      5. Pursuant to an order issued by a court upon a showing of good cause.
    5. Any person violating this section is guilty of an infraction.

    4.1-73-26. Record of brands 🗎 PDF 

    The chief brand inspector shall keep a record of all brands issued in this state. The record must include:
    1. The name and address of the person that owns the brand;
    2. A depiction of the brand;
    3. The type of livestock on which the brand is authorized for use; and
    4. The location or placement of the brand as authorized by the chief brand inspector.

    4.1-73-27. Chief brand inspector to issue brand book 🗎 PDF 

    1. The chief brand inspector shall compile and issue a brand book from the records required by section 4.1-73-26, as of the final date for rerecording and shall compile and issue an annual supplement.
      1. The chief brand inspector shall provide a paper or an electronic copy of the brand book and each annual supplement, free of charge, to:
        1. Each brand inspector; and
        2. Any other law enforcement officer located in this state upon request.
      2. The chief brand inspector shall make paper copies of the brand books and annual supplements available for purchase by all other persons. The purchase price must be established by the North Dakota stockmen's association and approved by the state board of animal health.
    3. The chief brand inspector shall post the brand book and each annual supplement on the North Dakota stockmen's association website.

    4.1-73-28. Official brand book - Presumptive evidence 🗎 PDF 

    The official brand book published by the chief brand inspector must be received in all courts of this state as presumptive evidence of the recording and ownership of livestock brands.

    4.1-73-29. Effect of recorded brand - Bill of sale to be given and kept 🗎 PDF 

    A brand recorded in accordance with this chapter and properly located on livestock is prima facie evidence that the animal bearing the brand is the property of the brand's owner, unless covered by a bill of sale as provided by section 4.1-73-18.

    Chapter 74 — Registered Livestock

    4.1-74-01. Registered livestock - Misrepresentation or falsification of records - Penalty 🗎 PDF 

    1. A person may not willfully:
      1. Sell any livestock with a certificate of registration or breeding that does not pertain to the livestock;
      2. Falsify a certificate of registration or breeding;
      3. Misrepresent or falsify any production or performance information referenced in a certificate of registration;
      4. Change the markings of livestock with the intent of deceiving a purchaser; or
      5. Misrepresent the sire to which livestock has been bred.
    2. A person violating this section is guilty of a class A misdemeanor for a first offense and a class C felony for a second or subsequent offense.

    Chapter 75 — Estrays

    4.1-75-01. Definition 🗎 PDF 

    In this chapter, unless the context otherwise requires, "estray" means cattle, horses, or mules, whether branded or unbranded, whose ownership has not been determined.

    4.1-75-02. Estrays - Possession 🗎 PDF 

    1. If an individual discovers an estray on property that the individual owns or controls, the individual shall make a good-faith effort to:
      1. Take possession of the estray;
      2. Determine its ownership; and
      3. Facilitate its return.
    2. If the individual is unable to determine its ownership, the individual shall:
      1. Notify the sheriff of the county in which the estray was found or the chief brand inspector, and:
        1. Provide to the sheriff or the chief brand inspector any information that may assist in determining ownership of the estray;
        2. Make the estray available for examination if requested by the chief brand inspector; and
        3. Follow the directives of the chief brand inspector regarding the estray's care and disposal; or
      2. Deliver the estray to a livestock auction market in this state or to an out-of-state livestock auction market that receives brand inspection services under section 4.1-73-24 and notify the brand inspector that it appears to be an estray.
    3. Any person failing to comply with this section is liable to the owner of the estray for treble damages and may not claim reimbursement for any expenses otherwise allowed under this chapter.

    4.1-75-03. Notification - Record of date and time 🗎 PDF 

    A county sheriff or the chief brand inspector shall make a record of the date and time that notification is received under section 4.1-75-02. The individual taking possession of the estray is not entitled to reimbursement for expenses incurred before the recorded date and time.

    4.1-75-04. Estrays - Notification of chief brand inspector 🗎 PDF 

    If an individual notifies a county sheriff that the individual has taken possession of an estray, the sheriff shall contact the chief brand inspector and relay any information regarding the estray.

    4.1-75-05. Claiming estrays 🗎 PDF 

    1. If before an estray is sold the chief brand inspector determines its owner, the individual who took possession of the estray shall return it to its owner, provided the owner reimburses the individual for all incurred expenses in accordance with the reimbursement schedule developed by the North Dakota stockmen's association or in any lesser agreed-to amount.
    2. If the individual who took possession of the estray and its owner are unable to reach an agreement regarding the return of the estray, as provided for in subsection 1, the individual who took possession of the estray shall:
      1. Deliver the estray to a livestock auction market in this state or to an out-of-state livestock auction market that receives brand inspection services under section 4.1-73-24; and
      2. Notify the brand inspector that the estray is to be sold and that reimbursement for the individual's expenses must be paid from the proceeds of the estray's sale, in accordance with the reimbursement schedule developed by the North Dakota stockmen's association.

    4.1-75-06. Reimbursement for costs - Schedule 🗎 PDF 

    1. Except as otherwise provided in section 4.1-75-05, the individual taking possession of an estray in accordance with this chapter is entitled to receive reimbursement for incurred expenses in accordance with a reimbursement schedule developed by the North Dakota stockmen's association.
    2. The amount reimbursable under this section must be deducted from the proceeds of the estray's sale. Any amount remaining thereafter must be forwarded to the North Dakota stockmen's association and submitted to the state treasurer for deposit in the North Dakota stockmen's association fund.

    4.1-75-07. List of estrays - Publication - Proof of ownership 🗎 PDF 

    1. Each December, the North Dakota stockmen's association shall publish at least twice in the official newspaper of each county, a list of all estrays found in the county and for which the association received sale proceeds during the preceding twelve months.
    2. The association shall maintain and make available on its website an updated list of all estrays for which the association received sale proceeds during the preceding seventy-two months.
    3. If a person demonstrates ownership of an estray to the satisfaction of the chief brand inspector within seventy-two months of the date on which the proceeds of its sale were distributed to the North Dakota stockmen's association, the association shall return to the owner the amount it received but shall retain any income earned on the amount.

    4.1-75-08. Possession of estray - Immunity from liability 🗎 PDF 

    1. If an individual, without being negligent, takes possession of an estray and complies with this chapter, that individual is not liable:
      1. For any injury or damage caused by the estray while in the individual's possession or in the event the estray escapes; or
      2. For any economic loss incurred by:
        1. The owner of the estray, if later identified; or
        2. Any other person having a claim to the estray.
    2. If an individual, without being negligent, attempts to take possession of an estray in order to comply with this chapter, that individual is not liable:
      1. For any injury or damage caused by the estray during the attempt to take possession; or
      2. For any economic loss incurred by:
        1. The owner of the estray, if later identified; or
        2. Any other person having a claim to the estray.

    4.1-75-09. Failure to comply with chapter - Penalty 🗎 PDF 

    Any individual who takes possession of an estray and willfully fails to comply with this chapter is guilty of a class B misdemeanor.

    Chapter 83 — Livestock Dealers

    4.1-83-01. Definition 🗎 PDF 

    In this chapter, unless the context otherwise requires, "livestock dealer" means a person that buys horses, mules, cattle, hogs, goats, or sheep from a producer or a livestock auction market:
    1. On the person's own account, more than once per year for the purpose of resale within thirty days;
    2. On commission; or
    3. For slaughter.

    4.1-83-02. Livestock dealer - License required 🗎 PDF 

    1. Before a person may transact business as a livestock dealer, the person must be licensed by the agriculture commissioner.
    2. This section does not apply to:
      1. A packing plant, provided the plant's annual purchases of cattle, goats, hogs, horses, mules, or sheep do not exceed five hundred thousand dollars; or
      2. The purchase of cattle, goats, hogs, horses, mules, or sheep:
        1. By a livestock cooperative from a member of the cooperative; or
        2. By one member of a livestock cooperative from another member.

    4.1-83-03. Application for livestock dealer's license - Required information 🗎 PDF 

    To obtain a livestock dealer's license, a person must complete an application and submit it to the agriculture commissioner. The application must include:
    1. The applicant's name and:
      1. The name of each partner if the applicant is a partnership;
      2. The name of each corporate officer and the state of incorporation if the applicant is a corporation; or
      3. The name of each manager and the state of organization if the applicant is a limited liability company;
    2. The applicant's mailing address; and
    3. The applicant's principal place of business.

    4.1-83-04. License - Fee - Expiration 🗎 PDF 

    1. The fee for a livestock dealer's license is fifty dollars.
    2. A livestock dealer's license issued under this chapter expires on June thirtieth of each year.
    3. A livestock dealer's license is not transferable.

    4.1-83-05. Application for license - Posting of bond 🗎 PDF 

    1. As a condition of licensure, the applicant shall post a bond with the agriculture commissioner. The bond must be:
      1. A surety bond;
      2. A cash bond; or
      3. An irrevocable letter of credit.
    2. The agriculture commissioner must be named as the obligee.
    3. The bond required by this section must be:
      1. In an amount and form required by this chapter;
      2. Applicable to the period during which the livestock dealer's license is in effect;
      3. For the benefit of any person selling livestock to the livestock dealer or the dealer's agent; and
      4. Conditioned for the payment of any financial obligation owed by a livestock dealer to another person in conjunction with the sale of livestock.

    4.1-83-06. Bond requirements - Alternative 🗎 PDF 

    Any applicant having a bond on file with the United States department of agriculture pursuant to the Packers and Stockyards Act, 1921 [7 U.S.C. 181 et seq.], may meet the requirements of section 4.1-83-05 by filing a copy of that bond with the agriculture commissioner, provided the commissioner is named as the trustee of the bond.

    4.1-83-07. Out-of-state applicant - Trustee 🗎 PDF 

    A bond posted by an out-of-state applicant for a livestock dealer's license may name as trustee a financially responsible, disinterested person who is satisfactory to the commissioner.

    4.1-83-08. Bond - Minimum amount 🗎 PDF 

    1. The agriculture commissioner shall determine the amount of the bond required in accordance with this chapter by using the same basis as that prescribed for livestock dealers who are subject to the provisions of the Packers and Stockyards Act, 1921 [7 U.S.C. 181 et seq.].
    2. Notwithstanding subsection 1, if at the time of licensure or at any point during the period of licensure the agriculture commissioner has reason to believe that a bond is inadequate to secure the performance of the livestock dealer's obligations, the commissioner shall require an increase in the amount of the bond.
    3. A bond required by this chapter may not be in an amount less than ten thousand dollars.

    4.1-83-09. Release of records - Confidentiality 🗎 PDF 

    1. As a condition of licensure, the applicant shall agree to provide to the agriculture commissioner, upon request, any financial record that the commissioner deems relevant for purposes related to:
      1. The issuance of a livestock dealer's license; or
      2. An investigation after issuance of a livestock dealer's license.
    2. As a condition of licensure, the applicant shall file a records release with the agriculture commissioner, authorizing the commissioner to obtain, from any source, any financial record that the commissioner deems relevant for purposes related to:
      1. The issuance of a livestock dealer's license; or
      2. An investigation after issuance of a livestock dealer's license.
    3. Any information gained by the agriculture commissioner under this section is confidential and may be provided only:
      1. To federal authorities in accordance with federal law;
      2. To the attorney general, state agencies, and law enforcement agencies, for use in the pursuit of official duties; and
      3. As directed by an order of a court pursuant to a showing of good cause.

    4.1-83-10. Dealer's license - Grounds for denial - Hearing 🗎 PDF 

    1. The agriculture commissioner shall deny an applicant a livestock dealer's license if:
      1. The applicant's current assets do not exceed the applicant's current liabilities; or
      2. The applicant submitted false or misleading information in connection with the application.
    2. The agriculture commissioner may deny an applicant a livestock dealer's license:
      1. If after due investigation, the commissioner has reason to believe that the applicant has failed to pay, in a timely manner and without reasonable cause, prior obligations incurred in connection with livestock transactions;
      2. If the applicant has failed to pay brand inspection fees or veterinary inspection fees, as required by law, within sixty days of the date on which they were due;
      3. If the applicant has violated any of the laws of this state governing the handling, shipment, or transportation of livestock; or
      4. For any other just and good cause.
    3. Any applicant denied a license under this section may request a hearing before the agriculture commissioner within thirty days of the denial.

    4.1-83-11. Change of circumstance - Notification of agriculture commissioner 🗎 PDF 

    A livestock dealer shall notify the agriculture commissioner of:
    1. Any legal change to the name in which the livestock dealer's license is issued;
    2. Any change to the legal status of the livestock dealer; and
    3. Any change in the nature and scope of the livestock dealer's business, if that change would warrant an increase in the amount of the bond posted by the dealer in accordance with this chapter.

    4.1-83-12. Records 🗎 PDF 

    Each livestock dealer shall keep records regarding all purchases and sales of livestock for a period of two years. The records may be examined by the agriculture commissioner upon request.

    4.1-83-13. Agent's license 🗎 PDF 

    Before an individual may serve as the agent of a livestock dealer, the individual must be licensed by the agriculture commissioner. In order for an individual to obtain an agent's license, the agent's principal must request the license, at the time and in the manner determined by the agriculture commissioner.

    4.1-83-14. Agent's license - Requirements - Liability of principal 🗎 PDF 

    Before the agriculture commissioner issues an agent's license, the commissioner shall verify that:
    1. The agent's principal is a livestock dealer licensed in accordance with this chapter; and
    2. The principal has filed with the agriculture commissioner a signed statement indicating that the principal is responsible for and will be held strictly liable for any acts and omissions arising out of the agent's livestock dealings, even if the dealings were not authorized by the principal.

    4.1-83-15. Agent's license - Grounds for denial 🗎 PDF 

    1. The agriculture commissioner may refuse to issue an agent's license:
      1. If the individual seeking the license was previously denied a livestock dealer's license or an agent's license;
      2. If the individual seeking the license had a livestock dealer's license or an agent's license revoked;
      3. If the individual seeking the license has been convicted of an offense for which a term of imprisonment or a fine is authorized by statute; or
      4. For any other just and good cause.
    2. Any applicant denied a license under this section may request a hearing before the agriculture commissioner, within thirty days of the denial.

    4.1-83-16. Agent's authority - Limitation 🗎 PDF 

    While acting as an agent, an individual may not conduct any transaction involving livestock in the agent's own name.

    4.1-83-17. Order to cease and desist - Hearing 🗎 PDF 

    The agriculture commissioner may issue an order to cease and desist if the commissioner has reason to believe that a person has committed or is about to commit a violation of this chapter. If the agriculture commissioner issues a cease and desist order, the commissioner shall hold a hearing within thirty days of the issuance and within sixty days of the issuance, revoke the order or make it permanent.

    4.1-83-18. Investigation of livestock dealer - Hearing 🗎 PDF 

      1. The agriculture commissioner shall investigate the conduct of any livestock dealer if the commissioner has reasonable cause to believe that the livestock dealer may have violated this chapter or engaged in any activity that constitutes a ground for license suspension or revocation under this chapter.
      2. Subdivision 1 does not apply if an investigation is being conducted by the grain inspection, packers and stockyards administration.
    2. If after conducting an investigation the agriculture commissioner has probable cause to believe that a violation of the chapter occurred or that the livestock dealer engaged in any activity that constitutes a ground for license suspension or revocation under this chapter, the commissioner may conduct a hearing to determine whether the license of the livestock dealer should be suspended or revoked.

    4.1-83-19. Grounds for suspension or revocation of license 🗎 PDF 

    The agriculture commissioner may suspend or revoke the license of a livestock dealer if:
    1. The livestock dealer has violated this chapter;
    2. The livestock dealer has violated any of the laws of this state governing the handling, shipment, or transportation of livestock;
    3. The livestock dealer has been found guilty of deceit, fraud, dishonesty, forgery, or theft, as a dealer in livestock;
    4. The livestock dealer submitted false or misleading information in connection with the application for licensure;
    5. The livestock dealer has failed to maintain records that disclose all purchases and sales of livestock, as required by section 4.1-83-12;
    6. The livestock dealer has refused the commissioner's request to provide financial records to the commissioner, as required by section 4.1-83-09;
    7. The livestock dealer has failed to pay brand inspection fees or veterinary inspection fees, as required by law, within sixty days of the date on which they were due;
    8. The livestock dealer is convicted under section 4.1-03-13 of failing to submit beef promotion assessments; or
    9. The livestock dealer has failed to pay for livestock purchased in a timely manner and without reasonable cause.

    4.1-83-20. License suspension or revocation - Hearing - Appeal 🗎 PDF 

    1. Before the agriculture commissioner may suspend or revoke a livestock dealer's license, the commissioner shall:
      1. Prepare a complaint;
      2. Designate the time and place for a hearing; and
      3. Serve a copy of the complaint and a notice of the hearing upon the livestock dealer at least fifteen days before the date of the hearing.
    2. The agriculture commissioner shall serve the required notice by registered mail or in the manner provided by the North Dakota Rules of Civil Procedure for the service of a summons.
    3. At the hearing, the agriculture commissioner shall take and receive testimony and evidence.
    4. After the hearing, the agriculture commissioner shall issue an order to:
      1. Dismiss the proceedings;
      2. Suspend the livestock dealer's license; or
      3. Revoke the livestock dealer's license.
    5. The aggrieved party may appeal the order to the district court of the county in which the party maintains its principal place of business.

    4.1-83-21. Bond - Claim for relief 🗎 PDF 

    If a livestock dealer defaults in the provisions of any bond required by this chapter, the livestock dealer is deemed to be insolvent within the meaning of this chapter. The claim for relief for damages upon the bond, and the amount recovered in any claim for relief for the conversion of livestock purchased by the livestock dealer while the license is in force and effect, constitutes a trust fund in the hands of the agriculture commissioner for all persons having a claim for relief against the livestock dealer on the bond.

    4.1-83-22. Appointment of trustee 🗎 PDF 

    1. Upon the insolvency of a livestock dealer, the agriculture commissioner shall provide notice to the livestock dealer and may immediately suspend, close, or take control of assets held in the trust fund pursuant to section 4.1-83-21, or take any combination of these actions as the agriculture commissioner deems necessary to begin orderly liquidation of trust fund assets as set forth in this chapter.
    2. Upon establishing the trust fund, the agriculture commissioner shall perform the duties of a trustee as set forth in this chapter.

    4.1-83-23. Possession of records and property - Notice to file claims 🗎 PDF 

      1. Upon establishing the trust fund, the agriculture commissioner shall take possession of all accounts and records pertaining to the livestock dealer's business. After reviewing the records, the agriculture commissioner may return to the dealer any records that are not necessary to the settlement of claims under this chapter.
      2. Upon establishing the trust fund, the agriculture commissioner shall take possession of all livestock purchased by the dealer under the dealer's license and remaining in the dealer's possession.
    2. The agriculture commissioner, as trustee, shall publish a notice once each week for three consecutive weeks in the official newspaper of each county in which the livestock dealer was conducting business, directing any person having a claim against the dealer to file the claim and all supporting documentation with the commissioner no later than forty-five days from the last date of publication. Any person failing to meet the filing requirements set forth in the notice is barred from participating in any funds marshalled by the agriculture commissioner under this chapter.

    4.1-83-24. Maintenance of action - Marshalling of assets 🗎 PDF 

    1. The agriculture commissioner, as trustee, may in the name of the state upon its own relation but for the benefit of all claimants against the livestock dealer's bond, maintain suits or special proceedings upon the bond and against any person who has converted any of the livestock, for the purpose of marshalling all of the trust assets of the insolvent dealer and distributing the assets among the claimants.
    2. However, recourse must be had against the bond before recourse is had against a person who knowingly and in good faith converted any of the livestock, unless the agriculture commissioner determines it necessary that all of the remedies be pursued at the same time.

    4.1-83-25. Remedy of claimants - Pursuit of separate action 🗎 PDF 

    1. A claimant may not pursue a separate claim for relief against the livestock dealer's bond unless the agriculture commissioner fails or refuses to apply for appointment as trustee.
    2. A claimant may pursue concurrently with the agriculture commissioner, however, any other remedy against the livestock dealer or the dealer's property that the claimant may have for the entire claim or for any deficiency that occurs after all payments have been made from the trust fund.

    4.1-83-26. Actions by agriculture commissioner - Exoneration 🗎 PDF 

    1. The agriculture commissioner may:
      1. Prosecute an action for any claim arising under this chapter;
      2. Appeal from any adverse judgment to the court of last resort; and
      3. Settle and compromise any action if the commissioner determines that doing so is in the best interests of the claimant.
    2. When the agriculture commissioner receives a compromise payment or the full amount of any bond or conversion claim, the commissioner may exonerate the person compromising or paying the claim from further liability growing out of the action.

    4.1-83-27. Moneys collected on claims - Required deposit 🗎 PDF 

    All moneys collected and received by the agriculture commissioner as trustee must be deposited in the Bank of North Dakota pending the marshalling of the fund.

    4.1-83-28. Report of amounts payable - Distribution of trust fund 🗎 PDF 

    1. Upon recovery of the trust fund, or so much of the fund as is recoverable or necessary to pay the outstanding claims, the agriculture commissioner shall file with the claimants a report showing the amount payable on each claim, after recognition of all proper liens, pledges, assignments, and deductions.
    2. If the trust fund is insufficient to pay all claims in full, the agriculture commissioner shall prorate the fund among the claimants.
    3. After holding a hearing on the matter, the agriculture commissioner shall:
      1. Approve or modify the report; and
      2. Issue an order directing that the trust fund be distributed.

    4.1-83-29. Court costs 🗎 PDF 

    The agriculture commissioner is not required to pay any filing fee or other court cost or disbursement in connection with an application for appointment as trustee or with any action brought under this chapter if the fee, cost, or disbursement accrues to the state or to a county in this state.

    4.1-83-30. Violations of chapter - Criminal penalty - Civil penalty 🗎 PDF 

    1. Any person violating this chapter is guilty of a class A misdemeanor.
    2. Any person violating this chapter is subject to a civil penalty in an amount not to exceed five thousand dollars for each violation. The civil penalty may be adjudicated by a court or by the agriculture commissioner through an administrative hearing.

    Chapter 88 — Wool Dealers

    This chapter has been repealed. 🗎 PDF

    Chapter 89 — Swine Health Improvement Plan

    4.1-89-01. Definitions 🗎 PDF 

    As used in this chapter, "swine" means domestic swine raised for breeding, feeding, or slaughter.

    4.1-89-02. Purposes - Duties 🗎 PDF 

    The commissioner shall:
    1. Serve on behalf of the department as the official state agency to cooperate with the veterinary services program of the animal plant health inspection services division of the United States department of agriculture, to further the objectives of the state and to supervise the state's participation in the United States swine health improvement plan.
    2. Promote the welfare and improvement of the swine industry and the marketing of swine and swine products within the state.
    3. Adopt rules under chapter 28-32 as necessary to effectuate the purposes of this chapter.

    Title 5 — Alcoholic Beverages

    Chapter 01 — General Provisions

    5-01-01. Definitions 🗎 PDF 

    In this title:
    1. "Alcohol" means neutral spirits distilled at or above one hundred ninety degrees proof, whether or not such product is subsequently reduced, for nonindustrial use.
    2. "Alcoholic beverages" means any liquid suitable for drinking by human beings, which contains one-half of one percent or more of alcohol by volume.
    3. "Beer" means any malt beverage containing one-half of one percent or more of alcohol by volume and includes an alcoholic beverage made by the fermentation of malt substitutes, including rice, grain of any kind, glucose, sugar, or molasses, which has not undergone distillation.
    4. "Bottle or can" means any container, regardless of the material from which made, having a capacity less than a bulk container for use for the sale of malt beverages at retail.
    5. "Direct shipper" means a person that is licensed by the commissioner and ships or causes to be shipped alcoholic beverages directly into this state to a consumer for the consumer's personal use and not for resale.
    6. "Distilled spirits" means any alcoholic beverage that is not beer, wine, sparkling wine, or alcohol.
    7. "Domestic distillery" means a distillery that produces twenty-five thousand gallons [94635 liters] or fewer of distilled spirits per year.
    8. "In bulk" means in containers having a capacity not less than one-sixth barrel for use for the sale of malt beverages at retail.
    9. "Licensed alcohol carrier" means a person licensed to transport or deliver alcoholic beverages to a consumer without first having the alcoholic beverage delivered through a wholesaler licensed in this state.
    10. "Licensed logistics shipper" means a person that provides fulfillment house services, including warehousing, packaging, distribution, order processing, or shipment of alcoholic beverages on behalf of a licensed direct shipper and by way of a licensed alcohol carrier.
    11. "Licensed premises" means the premises on which beer, liquor, or alcoholic beverages are normally sold or dispensed and must be delineated by diagram or blueprint which must be included with the license application or the license renewal application.
    12. "Liquor" means any alcoholic beverage except beer.
    13. "Local governing body" means the governing entity of a city, county, or federally recognized Indian tribe in this state.
    14. "Local license" means a city, county, or tribal retail alcoholic beverage license issued by the appropriate local governing body.
    15. "Manufacturing distillery" means a distillery that produces forty thousand gallons [151416 liters] or fewer of distilled spirits per year.
    16. "Microbrew pub" means a brewer that brews ten thousand or fewer barrels of beer per year and sells beer produced or manufactured on the premises for consumption on or off the premises or serves beer produced or manufactured on the premises for purposes of sampling the beer.
    17. "Organization" means a domestic or foreign corporation, general partnership, limited partnership, or limited liability company.
    18. "Satellite location" means an offsite location owned or leased by a manufacturing distillery to conduct retail operations.
    19. "Sparkling wine" means wine made effervescent with carbon dioxide.
    20. "Supplier" means an alcoholic beverage manufacturer, importer, marketer, or wholesaler selling alcoholic beverages to a wholesaler licensed in this state for purposes of resale.
    21. "Tribal licensee" means a person issued a local license by the governing body of a federally recognized Indian tribe in this state for the retail sale of alcoholic beverages within the exterior tribal reservation boundaries.
    22. "Twenty-one years of age" means it is after eight a.m. on the date twenty-one years after a person's date of birth.
    23. "Wine" means the alcoholic beverage obtained by fermentation of agricultural products containing natural or added sugar or such beverage fortified with brandy and containing not more than twenty-four percent alcohol by volume.

    5-01-02. Exceptions 🗎 PDF 

    Nothing contained in this title may be construed to apply to the following articles, when they are unfit for beverage purposes:
    1. Denatured alcohol produced and used pursuant to Acts of Congress, and the regulations thereunder;
    2. Patent, proprietary, medical, pharmaceutical, antiseptic, and toilet preparations;
    3. Flavoring extracts, syrups, and food products; or
    4. Scientific, chemical, and industrial products; nor to the manufacture or sale of said articles containing alcohol. This title does not apply to wines delivered to priests, rabbis, and ministers for sacramental use.

    5-01-03. Penalty 🗎 PDF 

    Repealed by S.L. 1975, ch. 106, § 673.

    5-01-04. Manufacture of alcoholic beverages prohibited - Exceptions 🗎 PDF 

    A person may manufacture alcoholic beverages for personal or family use, and not for sale, without securing a license if the amount manufactured is within quantities allowed by the alcohol and tobacco tax and trade bureau of the United States treasury department. Any person manufacturing alcoholic beverages within this state in quantities greater than those permitted by the alcohol and tobacco tax and trade bureau of the United States treasury department is guilty of a class A misdemeanor and property used for the same is subject to disposition by the court except any person may establish a brewery for the manufacture of malt beverages, a winery, or a distillery or other plant for the distilling, manufacturing, or processing of alcohol within this state if the person has secured a license from the tax commissioner. This license must be issued on a calendar-year basis with a fee of five hundred dollars. A first-time license fee may be reduced twenty-five percent for each full quarter of a year elapsed between the first day of the year for which the license is issued and the date on which the application for the license is filed with the tax commissioner. A license may not be issued for any period for a fee less than one-half of the annual license fee. This license shall allow sale to only licensed wholesalers.

    5-01-05. Public intoxication - Penalty 🗎 PDF 

    Repealed by S.L. 1969, ch. 91, § 5.

    5-01-05.1. Public intoxication - Assistance - Medical care 🗎 PDF 

    1. As used in this section "intoxicated" means a state in which an individual is under the influence of alcoholic beverages, drugs, or controlled substances, or a combination of alcoholic beverages, drugs, and controlled substances.
    2. A peace officer may take any apparently intoxicated individual to the individual's home, to a local hospital, to a detoxification center, or, whenever that individual constitutes a danger to that individual or others, to a jail. A tier 1b mental health professional, as defined under section 25-01-01, of a local hospital may hold that individual for treatment up to seventy-two hours.
    3. An intoxicated individual may not be held in jail because of intoxication more than twenty-four hours. An intoxicated individual may not be placed in a jail unless a jailer is constantly monitoring the individual and medical services are provided if the need is indicated.
    4. Upon placing that individual in jail, or if the individual is admitted to a hospital or detoxification center, upon admission, the peace officer shall make a reasonable effort to notify the intoxicated individual's family as soon as possible.
    5. Any additional costs incurred by the city, county, ambulance service, or medical service provider on account of an intoxicated individual are recoverable from that individual.

    5-01-05.2. No prosecution for intoxication 🗎 PDF 

    No person may be prosecuted in any court solely for public intoxication. Law enforcement officers may utilize standard identification procedures on all persons given assistance because of apparent intoxication.

    5-01-05.3. Disturbing the peace - Disorderly conduct - Penalty 🗎 PDF 

    Repealed by S.L. 1975, ch. 106, § 673.

    5-01-05.4. Informational, counseling, and referral centers for alcoholism 🗎 PDF 

    Any county or city within the state at the discretion of their governing bodies, either individually or jointly, may establish or provide office space, including personnel, for informational, counseling, and referral services for alcoholics and their families.

    5-01-06. Recovery of damages resulting from intoxication 🗎 PDF 

    Repealed by S.L. 1987, ch. 95, § 5; S.L. 1987, ch. 99, § 2.

    5-01-06.1. Claim for relief for fault resulting from intoxication 🗎 PDF 

    1. Every spouse, child, parent, guardian, employer, or other individual who is injured by any obviously intoxicated individual has a claim for relief for fault under section 32-03.2-02 against any person who knowingly disposes, sells, barters, or gives away alcoholic beverages to an individual under twenty-one years of age or to an incompetent or an obviously intoxicated individual, and if death ensues, the survivors of the decedent are entitled to damages defined in section 32-21-02. If a retail licensee is found liable under this section and exemplary damages are sought, the finder of fact may consider as a mitigating factor that the licensee provided to an employee alcohol server training that addressed intoxication, drunk driving, and underage drinking.
    2. If a retail licensee provided to an employee alcohol server training that addresses intoxication, drunk driving, and underage drinking, a person with a claim for relief under this section may not use the fact that the retail licensee provided this training to prove culpability.
    3. A claim for relief under this section may not be had on behalf of the intoxicated individual nor on behalf of the intoxicated individual's estate or personal representatives, nor may a claim for relief be had on behalf of an adult passenger in an automobile driven by an intoxicated individual or on behalf of the passenger's estate or personal representatives.

    5-01-07. Township beer or liquor licenses 🗎 PDF 

    No retail beer or liquor license may be issued in any organized township without the written consent of the board of township supervisors.

    5-01-08. Individuals under twenty-one years of age prohibited from using alcoholic beverages or entering licensed premises - Penalty 🗎 PDF 

    1. Except as permitted in this section and section 5-02-06, an individual under twenty-one years of age may not manufacture or attempt to manufacture, purchase or attempt to purchase, consume or have recently consumed other than during a religious service, be under the influence of, be in possession of, or furnish money to any individual for the purchase of an alcoholic beverage.
    2. An individual under twenty-one years of age may not enter any licensed premises where alcoholic beverages are being sold or displayed, except:
      1. A restaurant if accompanied by a parent or legal guardian;
      2. In accordance with section 5-02-06;
      3. If the individual is an independent contractor or the independent contractor's employee engaged in contract work and is not engaged in selling, dispensing, delivering, or consuming alcoholic beverages;
      4. If the individual is a law enforcement officer or other public official who enters the premises in the performance of official duty; or
      5. If the individual enters the premises for training, education, or research purposes under the supervision of an individual twenty-one or more years of age with prior notification of the local licensing authority.
    3. An individual who violates this section is guilty of an infraction. For a violation of subsection 1 or 2, the court also may sentence a violator to an evidence-based alcohol and drug education program operated under rules adopted by the department of health and human services under section 50-06-44. For a second or subsequent violation of subsection 1 or 2, the court also shall sentence a violator to an evidence-based alcohol and drug education program operated under rules adopted by the department of health and human services under section 50-06-44.
    4. The court, under this section, may refer the individual to an outpatient addiction facility licensed by the department of health and human services for evaluation and appropriate counseling or treatment.
    5. The offense of consumption occurs in the county of consumption or the county where the offender is arrested.
    6. An individual under twenty-one years of age is immune from criminal prosecution under this section if that individual contacted law enforcement or emergency medical services and reported that another individual under twenty-one years of age was in need of medical assistance due to alcohol consumption, provided assistance to the individual in need of medical assistance until assistance arrived and remained on the scene, or was the individual in need of medical assistance and cooperated with medical assistance and law enforcement personnel on the scene. The maximum number of individuals who may be immune for any one occurrence is five individuals.

    5-01-08.1. Misrepresentation of age - Penalty - Licensee may keep book 🗎 PDF 

    Any person who misrepresents or misstates that person's age or the age of any other person or who misrepresents that person's age through presentation of any document purporting to show that person to be of legal age to purchase alcoholic beverages is guilty of a class B misdemeanor. Any licensee may keep a book and may require anyone who has shown documentary proof of that person's age, which substantiates that person's age to allow the purchase of alcoholic beverages, to sign the book if the age of that person is in question. The book must show the date of the purchase, the identification used in making the purchase and the appropriate numbers of such identification, the address of the purchaser, and the purchaser's signature.

    5-01-08.2. Presumption of licensee's innocence when certain facts established 🗎 PDF 

    The establishment of the following facts by a person making a sale of alcoholic beverages to a person not of legal age constitutes prima facie evidence of innocence and a defense to any prosecution therefor:
    1. That the purchaser falsely represented and supported with other documentary proof that the purchaser was of legal age to purchase alcoholic beverages.
    2. That the appearance of the purchaser was such that an ordinary and prudent person would believe the purchaser to be of legal age to purchase alcoholic beverages.
    3. That the sale was made in good faith and in reliance upon the representation and appearance of the purchaser in the belief that the purchaser was of legal age to purchase alcoholic beverages.

    5-01-08.3. Proof of age - Seizure of false identification 🗎 PDF 

    1. A licensed retailer of alcoholic beverages or an employee of a licensed retailer may determine proof of age for purchasing or consuming an alcoholic beverage solely by inspection of one of the following:
      1. A valid driver's license or identification card issued by this state, another state, or a province of Canada which includes the photograph and date of birth of the licensed individual;
      2. A valid military identification card issued by the United States department of defense; or
      3. A valid passport issued or recognized by the United States.
    2. A licensed retailer or an employee of a licensed retailer may seize a form of identification displayed as proof of age if the licensed retailer or an employee of a licensed retailer has a reasonable belief that the form of identification has been altered, falsified, or is being used to unlawfully obtain alcoholic beverages.
    3. Within twenty-four hours of seizing a form of identification as allowed under this section, a licensed retailer or an employee of a licensed retailer shall notify a law enforcement agency of the seizure and the law enforcement agency shall take possession of the identification within twenty-four hours after receipt of the notice.

    5-01-09. Delivery to certain persons unlawful 🗎 PDF 

    1. Any individual knowingly delivering alcoholic beverages to an individual under twenty-one years of age, except as allowed under section 5-02-06, or to an incompetent or an obviously intoxicated individual is guilty of a class A misdemeanor, subject to sections 5-01-08, 5-01-08.1, and 5-01-08.2.
    2. An individual under twenty-one years of age is immune from criminal prosecution under this section if that individual contacted law enforcement or emergency medical services and reported that another individual under twenty-one years of age was in need of medical assistance due to alcohol consumption, provided assistance to the individual in need of medical assistance until assistance arrived and remained on the scene and cooperated with medical assistance and law enforcement personnel on the scene, or was the individual in need of medical assistance. The maximum number of individuals that may be immune for any one occurrence is five individuals.
    3. If an individual is convicted of this section for delivering alcoholic beverages to an individual under twenty-one years of age, the court shall consider the following in mitigation:
      1. After consuming the alcohol, the underage individual was in need of medical assistance as a result of consuming alcohol; and
      2. Within twelve hours after the underage individual consumed the alcohol, the defendant contacted law enforcement or emergency medical personnel to report that the underage individual was in need of medical assistance as a result of consuming alcohol.

    5-01-10. Bottle clubs prohibited - Penalty 🗎 PDF 

    Any person operating an establishment whereby persons are allowed to bring their own alcoholic beverages on the premises where the proprietor sells soft drinks, mix, ice, or charges for bringing such beverages on the premises is guilty of a class B misdemeanor.

    5-01-11. Unfair competition - Penalty 🗎 PDF 

    A manufacturer may not have any financial interest in any wholesale alcoholic beverage business. A manufacturer or wholesaler may not have any financial interest in any retail alcoholic beverage establishment and may not furnish any such retailer with anything of value. A retailer may not have any financial interest in any manufacturer, supplier, or wholesaler. A wholesaler may:
    1. Extend normal commercial credits to retailers for industry products sold to them. The state tax commissioner may determine by rule the definition of "normal commercial credits" for each segment of the industry.
    2. Furnish retailers with beer containers and equipment for dispensing of tap beer if the expense to the wholesaler associated with the furnishing of containers, equipment, and tap or coil cleaning service does not exceed one hundred fifty dollars per tap per calendar year.
    3. Furnish outside signs to retailers if the sign cost does not exceed four hundred dollars exclusive of costs of erection and repair.
    4. Furnish miscellaneous materials to retailers not to exceed one hundred dollars per year. "Miscellaneous materials" not subject to this limitation include any indoor point-of-sale items for retail placement. Point-of-sale items include back bar signs, pool table lights, neon window signs, and items of a similar nature. The point-of-sale items must be limited to five hundred dollars per retail account from the wholesaler for each of the wholesaler's brewers or suppliers. Any wholesaler, retailer, or manufacturer violating this section, or any rule adopted to implement this section, and any retailer receiving benefits thereby, is guilty of a class A misdemeanor. A microbrew pub is exempt from the provisions of this section to the extent that this section restricts the co-ownership of a manufacturer's license and a retail license for the purpose of a microbrew pub.

    5-01-12. Duty to enforce 🗎 PDF 

    Repealed by S.L. 1975, ch. 106, § 673.

    5-01-13. State's attorney's inquiry 🗎 PDF 

    The state's attorney may subpoena persons and take sworn testimony concerning any alleged violation of the alcoholic beverage laws and may apply to the district court for an order compelling persons subpoenaed to appear and testify. Such witnesses shall receive the same fees and mileage as in a civil case in district court.

    5-01-14. Microbrew pubs - Licensing - Taxes 🗎 PDF 

    1. A microbrew pub shall obtain a brewer license and a retailer license as required under this title. A microbrew pub may manufacture on the licensed premises, store, transport, sell to wholesale malt beverage licensees, and export no more than ten thousand barrels of malt beverages annually; sell malt beverages manufactured on the licensed premises; sell alcoholic beverages regardless of source to consumers for consumption on the microbrew pub's licensed premises; and sell or direct ship malt beverages manufactured on the licensed premises to an individual in this state for consumption in accordance with section 5-01-16. A microbrew pub may not engage in any wholesaling activities. Except as provided in subsection 3, all sales and delivery of malt beverages to any other retail licensed premises may be made only through a wholesale malt beverage licensee. Beer manufactured on the licensed premises and sold by a microbrew pub directly to the consumer for consumption on or off the premises is subject to the taxes imposed pursuant to section 5-03-07, in addition to any other taxes imposed on brewers and retailers. A microbrew pub is required to file a monthly sales report with the tax commissioner by the fifteenth day of the month following the month in which the sales are made. The report must be prepared and submitted in a form and manner as prescribed by the tax commissioner. A microbrew pub is not precluded from retailing beer it purchases from a wholesaler. Complimentary samples of beer may not be in an amount exceeding sixteen ounces [.47 liter] per patron. A licensee may sell beer to any person for off-premises consumption if sold in a brewery-sealed container and the total amount sold to each person does not exceed five and sixteen-hundredths gallons [19.53 liters] per day. This section may not be superseded under chapters 11-09.1 and 40-05.1.
    2. The tax commissioner may issue a special event permit for not more than forty events per calendar year to a microbrew licensee allowing the licensee, subject to local ordinance, to give free samples of beer manufactured by the licensee, sell beer manufactured by the glass or in closed containers, or dispense beer manufactured by the licensee, at off-premises events.
    3. A microbrew pub may transfer beer in bulk, as defined by section 5-01-01, manufactured by the microbrew pub to an affiliated microbrew pub licensee. For purposes of this subsection, "affiliated microbrew pub licensee" means a microbrew pub of which at least an eighty-five percent interest is owned by the microbrew pub measured annually and:
      1. The microbrew pub does not own more than three affiliated microbrew pub licensees;
      2. The microbrew pub licensee receiving the beer in bulk has produced no less than five thousand gallons [18927.06 liters] of beer on the premises in the preceding calendar year. For the purpose of calculating the production requirements, the production must be prorated based on the number of days beer was produced;
      3. The beer in bulk transferred in any calendar year constitutes no more than fifty percent of the beer being produced by the microbrew pub licensee receiving the beer; and
      4. For purposes of determining whether the ten thousand barrel production limit under subsection 1 is being exceeded, the beer being transferred is credited to the microbrew pub that manufactured the beer.
    4. A contractee brewer may contract with a contractor brewer to produce beer for the contractee brewer to the extent allowed by federal law under the following conditions:
      1. The contractee brewer and the contractor brewer must be licensed and owned separately;
      2. The contractee brewer must have a proper license issued under this section and maintain a physical brewing presence in the state;
      3. Beer brewed for a contractee brewer counts toward the contractee brewer's annual barrels produced, and the beer does not count toward the contractor brewer's annual barrels produced;
      4. The contractee brewer retains ownership of the product; and
      5. Each brewer is separately and distinctly responsible for compliance with this chapter.

    5-01-15. Penalty 🗎 PDF 

    Any person who violates any provision of this title, or any rule adopted to implement this title, is guilty of a class B misdemeanor, unless the penalty is provided for elsewhere.

    5-01-16. Direct sale from out-of-state person to consumer - Penalty 🗎 PDF 

    1. A person in the business of selling alcoholic beverages may not knowingly or intentionally ship, or cause to be shipped, any alcoholic beverage from an out-of-state location directly to a person in this state who is not a licensed wholesaler in this state.
    2. A person in the business of transporting goods may not knowingly or intentionally transport, or cause to be transported, any alcoholic beverage directly to a person in this state who is not a licensed wholesaler in this state.
    3. For a first violation of subsection 1 or 2, the tax commissioner shall notify, by certified mail, the person and order that person to cease and desist any shipment of alcoholic beverages in violation of subsection 1 or 2 and shall assess a civil penalty of one hundred dollars for each illegal shipment. For a second violation of subsection 1 or 2, the tax commissioner shall assess a civil penalty of two hundred dollars for each illegal shipment. For any subsequent violation of subsection 1 or 2, the tax commissioner shall assess a civil penalty of five hundred dollars for each illegal shipment.
    4. The alcoholic beverage transported in violation of this section and the vehicle used in violation of this section are forfeitable property under chapter 29-31.1.
    5. This section does not apply to a transaction by a person holding a valid manufacturer's or retailer's license issued by the state of its domicile and if the person obtains a direct shipping license from and on a form prescribed by the tax commissioner before making a shipment. The annual fee for a direct shipping license is fifty dollars. Licensed direct shippers may sell and ship to an individual twenty-one years of age or older 7.13 gallons [27 liters] or less of wine, two hundred eighty-eight fluid ounces [8517.18 milliliters] or less of beer, or 2.38 gallons [9 liters] or less of any other alcoholic beverages per month for personal use and not for resale.
      1. A direct shipper shall ship all containers of alcoholic beverages shipped directly to a resident of this state using a licensed alcohol carrier and may cause the alcoholic beverages to be shipped by a licensed logistics company.
      2. A direct shipper shall label all containers of alcoholic beverages shipped directly to an individual in this state with conspicuous words "SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY".
      3. A licensed direct shipper shall report and pay the wholesaler excise tax and retailer sales taxes to the tax commissioner on all alcoholic beverages sold to residents in this state at the rates set forth in sections 5-03-07 and 57-39.6-02. The excise tax reports are due January fifteenth of the year following the year sales and shipments were made. When the fifteenth day of January falls on a Saturday, Sunday, or legal holiday, the due date is the first working day thereafter. The report must provide such detail and be in format as prescribed by the tax commissioner and include the identification of any logistics or fulfillment houses the licensee used for such shipments. The sales and use tax reports are due as set forth in chapter 57-39.6. The sales and use tax reports must be in a format as prescribed by the tax commissioner. The tax commissioner may require that the report be submitted in an electronic format approved by the tax commissioner.
      4. All alcoholic beverages that are shipped directly to a resident of this state must be properly registered with the federal alcohol and tobacco tax and trade bureau and must be owned by the licensed direct shipper.
    6. A licensed alcohol carrier may ship alcoholic beverages into, out of, or within this state. A licensed alcohol carrier shall pay an annual fee of one hundred dollars and obtain a license on an application form provided by the tax commissioner and subject to any requirements determined by the tax commissioner.
      1. A licensed alcohol carrier shall ensure all containers of alcoholic beverages shipped directly to an individual in this state are labeled with conspicuous words "SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY". A licensed alcohol carrier may not deliver alcoholic beverages to a person under twenty-one years of age, or to a person who is or appears to be in an intoxicated state or condition. A licensed alcohol carrier shall obtain valid proof of identity and age before delivery and shall obtain the signature of an adult as a condition of delivery.
      2. A licensed alcohol carrier shall maintain records of alcoholic beverages shipped into, out of, or within this state which include the name of the licensed direct shipper, the name of any licensed logistics shipper, the date of each shipment, the recipient's name and address, and an electronic or paper form of signature from the recipient of the alcoholic beverages. A licensed alcohol carrier shall submit a report to the tax commissioner on a monthly basis in the form and format prescribed by the tax commissioner. The report is due on the last day of the month following the month of shipment. If the due date falls on a Saturday, Sunday, or legal holiday, the due date is the first working day after the due date. The tax commissioner may require that the report be submitted in an electronic format approved by the tax commissioner.
      3. If the tax commissioner has provided notice to a licensed alcohol carrier that a direct shipper is not licensed, the licensed alcohol carrier must notify the direct shipper that the direct shipper must obtain a direct shipper permit before tendering packages to the licensed alcohol carrier for delivery. Any assessed penalty may be waived by the tax commissioner for good cause upon request by the licensed alcohol carrier.
    7. Licensed logistics shippers must obtain a logistics shipping license from the tax commissioner and shall pay an annual fee of one hundred dollars before making or causing a shipment.
      1. A licensed logistics shipper shall ensure all containers of alcoholic beverages shipped directly to an individual in this state are labeled with conspicuous words "SIGNATURE OF PERSON AGE 21 OR OLDER REQUIRED FOR DELIVERY".
      2. All containers of alcoholic beverage shipped directly to a resident of this state must be shipped using a licensed alcohol carrier as provided in subsection 6.
      3. A licensed logistics shipper shall maintain records of alcoholic beverages shipped which include the license number and name of the licensed direct shipper, the license number and name of the licensed common carrier, the date of each shipment, the quantity and kind of alcohol shipped, and the recipient's name and address for each shipment. A licensed logistics shipper shall submit a report to the tax commissioner on a monthly basis in the form and format prescribed by the tax commissioner. The report is due on the last day of the month following the month of shipment. If the due date falls on a Saturday, Sunday, or legal holiday, the due date is the first working day after the due date. The tax commissioner may require that the report be submitted in an electronic format approved by the tax commissioner.
      4. Licensed logistics shippers may not ship alcoholic beverages from unlicensed direct shippers or through unlicensed carriers. For a violation, a licensed logistics shipper is subject to the penalties in subsection 3.
    8. The tax commissioner may initiate and maintain an action in a court of competent jurisdiction to enjoin a violation of this section and may request award of all costs and attorney's fees incurred by the state incidental to that action. Upon determination by the tax commissioner that an illegal sale or shipment of alcoholic beverages has been made to a consumer in this state by any person, the tax commissioner may notify both the alcohol and tobacco tax and trade bureau of the United States department of the treasury and the licensing authority for the state in which the person is domiciled that a state law pertaining to the regulation of alcoholic beverages has been violated and may request those agencies to take appropriate action.

    5-01-17. Domestic winery license 🗎 PDF 

    1. The tax commissioner may issue a domestic winery license to the owner or operator of a winery located within this state to produce wine. A domestic winery may purchase, at wholesale or retail, brandy for use of onpremises fortification. A domestic winery license may be issued and renewed for an annual fee of one hundred dollars, which is in lieu of all other license fees required by this title.
    2. A domestic winery may sell wine produced by that winery at on sale or off sale, in retail lots, and not for resale, and may sell or direct ship its wine to persons inside or outside of the state in a manner consistent with the laws of the place of the sale or delivery in total quantities not in excess of twenty-five thousand gallons [94635 liters] in a calendar year; glassware; wine literature and accessories; and cheese, cheese spreads, and other snack food items. A licensee may dispense free samples of the wines offered for sale. Subject to local ordinance, sales at on sale and off sale may be made on Sundays between eight a.m. and twelve midnight. The tax commissioner may issue special events permits for not more than forty events per calendar year to a domestic winery allowing the winery, subject to local ordinance, to give free samples of its wine and to sell its wine by the glass or in closed containers, at off-premises events. A domestic winery may not engage in any wholesaling activities. All sales and deliveries of wines to any other retail licensed premises in this state may be made only through a licensed North Dakota liquor wholesaler. For any month in which a domestic winery has made sales to a North Dakota wholesaler, that domestic winery shall file a report with the tax commissioner no later than the last day of each calendar month reporting sales made during the preceding calendar month. When the last day of the calendar month falls on a Saturday, Sunday, or legal holiday, the due date is the first working day thereafter.
    3. A domestic winery may obtain a domestic winery license and a retailer license allowing the onpremises sales of alcoholic beverages at a restaurant owned by the licensee and located on property contiguous to the winery.
    4. A domestic winery may purchase wine in bulk from within and outside the state, excluding label approved containers and not to exceed four thousand gallons [15142 liters] per calendar year.
    5. A domestic winery is subject to section 5-03-06 and shall report and pay annually to the tax commissioner the wholesaler taxes due on all wines sold by the licensee at retail, including all wines shipped directly to consumers as set forth in sections 5-03-07 and 57-39.6-02. The annual wholesaler tax reports are due January fifteenth of the year following the year sales were made. When the fifteenth of January falls on a Saturday, Sunday, or legal holiday, the due date is the first working day thereafter. The report must provide such detail and be in a format as prescribed by the tax commissioner. The tax commissioner may require that the report be submitted in an electronic format approved by the tax commissioner.

    5-01-18. Alcohol without liquid devices prohibited - Definition - Penalty 🗎 PDF 

    1. A person may not sell, offer to sell, purchase, possess, use, or if that person is a retail alcoholic beverage licensee, have on the premises an alcohol without liquid device. In this section, an "alcohol without liquid device" means an apparatus that is advertised, designed, or used to vaporize an alcoholic beverage to produce a vapor that may be inhaled by an individual. The term does not include an inhaler, nebulizer, atomizer, or other device that is designed and intended specifically for medical purposes to dispense prescribed or over-the-counter medications or water.
    2. This section does not apply to a hospital that operates primarily for the purpose of conducting scientific research, a state institution conducting bona fide research, a private college or university conducting bona fide research, or a pharmaceutical company or biotechnology company conducting bona fide research.
    3. A violation of this section is a class B misdemeanor.

    5-01-19. Domestic distillery 🗎 PDF 

    1. The tax commissioner may issue a domestic distillery license to the owner or operator of a distillery that is located within this state. A domestic distillery license may be issued and renewed for an annual fee of one hundred dollars. This fee is in lieu of all other license fees required by this title. The tax commissioner may not issue the domestic distillery license until the applicant has established that the applicant has applied for and obtained the necessary federal registrations and permits, as required under the Internal Revenue Code of 1986 [26 U.S.C. 5001 et seq.] and the federal Alcohol Administration Act [27 U.S.C. 203], for the operation of a distilled spirits plant.
    2. A domestic distillery may sell spirits produced by that distillery at on sale or off sale, in retail lots, and not for resale, and may sell or direct ship its spirits to persons inside or outside the state in a manner consistent with the laws of the place of the sale or delivery in total quantities not in excess of twenty-five thousand gallons [94635 liters] in a calendar year. Direct sales within this state are limited to two and thirty-eight hundredths gallons [9 liters] or less per month per person for personal use and not for resale. The packaging must conform with the labeling requirements in section 5-01-16. A licensee may dispense free samples of the spirits offered for sale. Subject to local ordinance, sales at on sale and off sale may be made on Sundays between eight a.m. and twelve midnight. A domestic distillery may hold events inside and outside its premises, but only on contiguous property under common ownership, allowing free samples of its spirits and to sell its spirits by the glass or in closed containers. The tax commissioner may issue special event permits for not more than forty events per calendar year to a domestic distillery allowing the domestic distillery, subject to local ordinance, to give free samples of its product and to sell its product by the glass or in closed containers, at off-premises events. A domestic distillery may not engage in any wholesaling activities. Except as provided by section 5-01-19.1, all sales and deliveries of spirits to any other retail licensed premises in this state may be made only through a licensed North Dakota liquor wholesaler. However, a domestic distillery may sell distilled spirits to a domestic winery if the distilled spirits were produced from products provided to the domestic distillery by the domestic winery. No later than the last business day of a calendar month, a farm distillery that has made sales to a North Dakota wholesaler during the preceding calendar month shall file a report with the tax commissioner reporting those sales.
    3. A domestic distillery may obtain a domestic distillery license and a retailer license allowing the onpremises sale of alcoholic beverages at a restaurant owned by the licensee and located on property contiguous to the domestic distillery. A domestic distillery also may own or operate a winery.
    4. A domestic distillery is subject to section 5-03-06 and shall report and pay annually to the tax commissioner the wholesaler taxes due on all spirits sold by the licensee at retail or to a retail licensee, including all spirits shipped directly to consumers as set forth in sections 5-03-07 and 57-39.6-02. The annual wholesaler tax reports are due January fifteenth of the year following the year sales were made. The report must provide the detail and be in a format as prescribed by the tax commissioner. The tax commissioner may require that the report be submitted in an electronic format approved by the tax commissioner.

    5-01-19.1. Direct sale by domestic distilleries 🗎 PDF 

    1. A domestic distillery that produces no more than twelve thousand proof gallons [45425 liters] of spirits per year may sell and deliver, onsite or offsite, the spirits produced by the distillery directly to licensed retailers. The distillery may sell and deliver spirits onsite to a licensed retailer that presents the retailer's license or a photocopy of the license. The distillery may deliver the spirits offsite if the distillery:
      1. Uses the distillery's equipment, trucks, and employees to deliver the spirits;
      2. Contracts with a licensed distributor to ship and deliver the spirits to the retailer; or
      3. Contracts with a common carrier to ship and deliver the spirits to the retailer directly from the distillery or the distillery's warehouse.
    2. The total amount of spirits each domestic distillery may sell or deliver directly to all licensed retailers may not exceed two hundred cases per year. Individual shipments delivered by common carrier may not exceed three cases a day for each licensed retailer. A case may not exceed two and thirty-eight hundredths gallons [9 liters].
    3. As used in this section, "proof gallon" means a gallon [3.79 liters] of liquid at sixty degrees Fahrenheit [15.5 degrees Celsius] which contains fifty percent ethyl alcohol by volume or its equivalent.

    5-01-19.2. Manufacturing distillery - Satellite locations 🗎 PDF 

    1. The tax commissioner may issue a manufacturing distillery license to the owner or operator of a distillery located within this state which uses a majority of North Dakota farm products to manufacture and sell spirits produced on the premises. A manufacturing distillery license may be issued and renewed for an annual fee of one hundred dollars. This fee is in lieu of all other license fees required by this title. The tax commissioner may not issue the manufacturing distillery license until the applicant has established the applicant has applied for and obtained the necessary federal registrations and permits, as required under the Internal Revenue Code of 1986 [26 U.S.C. 5001 et seq.] and the federal Alcohol Administration Act [27 U.S.C. 203], for the operation of a distilled spirits plant.
    2. A manufacturing distillery may sell spirits produced by that distillery at off sale, in retail lots, and not for resale, and may sell or direct ship its spirits to persons inside or outside the state in a manner consistent with the laws of the place of the sale or delivery in total quantities not in excess of forty thousand gallons [151416 liters] in a calendar year.
      1. Direct sales within this state are limited to two and thirty-eight hundredths gallons [9 liters] or less per month per person for personal use and not for resale. The packaging must conform with the labeling requirements in section 5-01-16. A licensee may dispense free samples of the spirits offered for sale. Subject to local ordinance, sales at off sale may be made on Sundays between twelve noon and twelve midnight.
      2. A manufacturing distillery may hold events inside its premises and at its satellite location. The tax commissioner may issue event permits for not more than forty event days per calendar year to a manufacturing distillery to allow the manufacturing distillery, subject to local ordinance, to give free samples of its product and to sell its product by the glass or in closed containers at events on the premises, off the premises, and at its satellite location.
      3. A manufacturing distillery may not engage in any wholesaling activities. Except as provided by section 5-01-19.1, all sales and deliveries of spirits to any other retail licensed premises in this state may be made only through a licensed North Dakota liquor wholesaler. However, a manufacturing distillery may sell distilled spirits to a domestic winery if the distilled spirits were produced from products provided to the manufacturing distillery by the domestic winery.
      1. As used in this subsection, "samples" means the serving of free tastings of a manufacturing distillery's products not to exceed six ounces [0.18 liter] of spirits per individual per day.
      2. A manufacturing distillery may operate one satellite location in addition to its licensed premises for the purpose of providing samples and on sale or off sale retail sales.
        1. The spirits sampled or sold at the satellite location must be produced by the manufacturing distillery.
        2. A manufacturing distillery may not produce any spirits at the satellite location.
        3. An event permit issued to a manufacturing distillery in accordance with subsection 2 for an indoor or outdoor event held at its satellite location does not count towards the forty event days per calendar year allowed under subsection 2. The manufacturing distillery may offer free samples of its spirits and may sell its spirits by the glass or in closed containers at the event held at the satellite location.
        4. The satellite location must be owned or leased by the manufacturing distillery licensee.
        5. A manufacturing distillery may not engage in wholesaling activities at its satellite location.
      3. A manufacturing distillery shall obtain a satellite location license from the tax commissioner before operating a satellite location. The tax commissioner may issue and renew a satellite location license for an annual fee of one hundred dollars. This fee is in addition to all other license fees required by this title.
      4. A manufacturing distillery is liable for any violation of alcohol or licensing requirements committed on the premises of its satellite location.
    4. A person may not hold a manufacturing distillery license and a domestic distillery license.
    5. A manufacturing distillery may obtain a manufacturing distillery license and a retailer license allowing the on-premises sale of alcoholic beverages at a restaurant owned by the licensee and located at the manufacturing distillery's satellite location.
    6. A manufacturing distillery is subject to section 5-03-06 and shall report and pay annually to the tax commissioner the wholesaler taxes due on all spirits sold by the licensee at retail or to a retail licensee, including all spirits shipped directly to consumers as set forth in sections 5-03-07 and 57-39.6-02. The annual wholesaler tax reports are due January fifteenth of the year following the year sales were made. The report must provide the detail and be in a format as prescribed by the tax commissioner. The tax commissioner may require the report to be submitted in an electronic format approved by the tax commissioner.

    5-01-20. Direct sale by licensed wineries 🗎 PDF 

    1. A licensed winery that produces no more than twenty-five thousand gallons [94635 liters] of wine per year may sell and deliver, onsite or offsite, the wine produced by the winery directly to licensed retailers. The licensed winery may sell and deliver wine onsite to a licensed retailer who presents the retailer's license or a photocopy of the license. The winery may deliver the wine offsite if the winery:
      1. Uses the winery's equipment, trucks, and employees to deliver the wine;
      2. Contracts with a licensed distributor to ship and deliver the wine to the retailer; or
      3. Contracts with a common carrier to ship and deliver the wine to the retailer directly from the winery or the winery's bonded warehouse.
    2. The shipments delivered by a winery's equipment, trucks, and employees in a year may not exceed four thousand five hundred cases. A case may not exceed 2.38 gallons [9 liters].
    3. Individual shipments delivered by common carrier may not exceed three cases a day for each licensed retailer. The shipments delivered by a common carrier in a year may not exceed three thousand five hundred cases. A case may not exceed 2.38 gallons [9 liters].

    5-01-21. Brewer taproom license 🗎 PDF 

    1. The tax commissioner may issue multiple brewer taproom licenses to the owner or operator of a brewery producing no more than twenty-five thousand barrels of malt beverages annually. A brewer with multiple taproom licenses must produce malt beverages at each location and the total amount of malt beverages produced at all locations combined may not exceed twenty-five thousand barrels of malt beverages annually. Each brewer taproom license may be issued and renewed for an annual fee of five hundred dollars, which is in lieu of all other state license fees required by this title. All provisions of this chapter which apply to a retail license must apply to a license issued under this section unless the provision is explicitly inconsistent with this section.
    2. A brewer holding a brewer taproom license may:
      1. Manufacture on the licensed premises, store, transport, sell, and export no more than twenty-five thousand barrels of malt beverages annually.
      2. Sell malt beverages manufactured on the licensed premises or through a contract for consumption on the premises of the brewery or a restaurant owned by the licensee and located on property contiguous to the brewery.
      3. Sell beer manufactured on the licensed premises or through a contract for off premises consumption in brewery-sealed containers of not more than five and sixteen-hundredths gallons [19.53 liters].
      4. Sell and deliver beer produced by the brewery to licensed beer wholesalers.
      5. Dispense free samples of beer offered for sale. Complimentary samples of beer may not be in an amount exceeding sixteen ounces [.47 liter] per patron.
      6. Sell and deliver beer produced by the brewery to licensed retailers within the state, but only if:
        1. The brewer uses the brewer's own equipment, trucks, and employees to deliver the beer;
        2. Individual deliveries, other than draft beer, are limited to the case equivalent of eight barrels per day to each licensed retailer;
        3. The total amount of beer sold or delivered directly to all retailers does not exceed ten thousand barrels per year; and
        4. A common carrier is not used to ship or deliver the brewery's product to the public or to licensed retailers. All other sales and deliveries of beer to licensed retailers in this state may be made only through a wholesaler licensed in this state.
      7. Sell or direct ship beer produced by the brewery to an individual in this state for consumption in accordance with section 5-01-16.
    3. The tax commissioner may issue special event permits for not more than forty events per calendar year to a brewer taproom licensee allowing the licensee, subject to local ordinance, to give free samples of its beer, sell its beer by the glass or in closed containers, or dispense beer manufactured by the licensee, at off-premises events.
    4. For any month in which a brewery has made sales to a wholesaler licensed in this state, that brewery shall file a report with the tax commissioner no later than the last day of each calendar month reporting sales made during the preceding calendar month. When the last day of the calendar month falls on a Saturday, Sunday, or legal holiday, the due date is the first working day after that day.
    5. A brewer taproom licensee is subject to section 5-03-06 and shall report and pay annually to the tax commissioner the wholesaler taxes due on all beer sold by the licensee at retail or to a retail licensee, including all beer sold directly to consumers as set forth in sections 5-03-07 and 57-39.6-02. The annual wholesaler tax reports are due January fifteenth of the year following the year sales were made. When the fifteenth of January falls on a Saturday, Sunday, or legal holiday, the due date is the first working day after that day. The report must provide the detail and be in a format as prescribed by the tax commissioner. The tax commissioner may require the report be submitted in an electronic format approved by the tax commissioner.
    6. A brewer may have multiple taproom licenses, but may not have an ownership interest in whole or in part, or be an officer, director, agent, or employee of any other manufacturer, brewer, importer, wholesaler, or retailer, or be an affiliate thereof, whether the affiliation is corporate or by management, direction, or control. A brewer may transfer beer in bulk, as defined by section 5-01-01, manufactured by the brewer to an affiliated brewer. For the purposes of this subsection, an "affiliated brewer taproom" means a licensed brewer taproom of which at least an eighty-five percent interest is owned by the brewer taproom, measured annually and:
      1. The brewer does not own more than three affiliated brewer taprooms;
      2. The licensed brewer taproom receiving the beer in bulk has produced no less than five thousand gallons [18927.06 liters] of beer on the premises in the preceding calendar year. For the purpose of calculating the production requirements, the production must be prorated based on the number of days beer was produced;
      3. The beer in bulk transferred in any calendar year constitutes no more than fifty percent of the beer being produced by the licensed brewer taproom receiving the beer; and
      4. For purposes of determining whether the twenty-five thousand barrel production limit under subsections 1 and 2 is being exceeded, the beer being transferred is credited to the brewer that manufactured the beer.
    7. A contractee brewer may contract with a contractor brewer to produce beer for the contractee brewer to the extent allowed by federal law under the following conditions:
      1. The contractee brewer and the contractor brewer must be licensed and owned separately;
      2. The contractee brewer must have a proper license issued under this section and maintain a physical presence in the state;
      3. Beer brewed for a contractee brewer counts toward the contractee brewer's annual barrels produced, and the beer does not count toward the contractor brewer's annual barrels produced;
      4. The contractee brewer retains ownership of product produced by a contractor brewer; and
      5. Each brewer is separately and distinctly responsible for compliance with this chapter.

    5-01-22. Powdered alcohol products prohibited - Penalty - Exceptions 🗎 PDF 

    1. As used in this section, "powdered alcohol product" means any alcohol prepared or sold in a powder form for either direct use or reconstitution in a liquid beverage or food.
    2. A person may not sell, offer to sell, purchase, offer to purchase, possess, or consume a powdered alcohol product.
    3. A violation of this section is a class B misdemeanor.
    4. This section does not apply to the use of powdered alcohol products for research by a:
      1. Health care provider that operates primarily for the purpose of conducting scientific research;
      2. State institution;
      3. Private college or university; or
      4. Pharmaceutical or biotechnology company.

    Chapter 02 — Retail Licensing

    5-02-01. State and local retail license required - Penalty - Exception 🗎 PDF 

    1. Except as otherwise provided in section 5-02-01.1, any person engaging in the sale of alcoholic beverages at retail without first securing an appropriate license from the attorney general and a local license from the governing body of any city, or if the business is located outside the corporate limits of a city, the board of county commissioners or the governing body of an Indian tribe, as the location requires, is guilty of a class A misdemeanor.
    2. This section does not apply to public carriers engaged in interstate commerce.
    3. This section does not apply to a nonprofit organization that sells an alcoholic beverage as part of a fundraising activity. As used in this subsection, fundraising activity includes an auction, raffle, or other prize contest for which consideration is given. If the alcoholic beverage is sold as part of a fundraising event, the sale may not be for consumption at that event.

    5-02-01.1. Event permit authorized - Penalty 🗎 PDF 

    1. The local governing body may by permit authorize a qualified alcoholic beverage licensee licensed under this chapter to engage in the sale of alcoholic beverages at events designated by the permit. For purposes of this section, "qualified alcoholic beverage licensee" means a licensee in a city that imposed a city lodging and restaurant tax on July 31, 1993, who paid the tax and who continues to pay any such tax imposed by the city or a licensee in a county, a licensee in a city that did not impose a city lodging and restaurant tax on July 31, 1993, or a tribal licensee. A fee for the local permit may be set by ordinance or resolution at not more than twenty-five dollars. The permit may not be valid for a period greater than fourteen days and may include Sundays. The local governing body may establish rules to regulate and restrict the operation of an event permit. Any person that dispenses, sells, or permits the consumption of alcoholic beverages in violation of this section or the conditions of a permit is guilty of a class B misdemeanor.
    2. The local governing body may authorize an individual under twenty-one years of age to attend the event but may not authorize the consumption or possession of an alcoholic beverage by an individual under twenty-one years of age.

    5-02-02. Qualifications for license 🗎 PDF 

    A retail license may not be issued to any person unless the applicant files a sworn application, accompanied by the required fee, showing the following qualifications:
    1. The applicant, other than an organization, must be a legal resident of the United States and be a person of good moral character.
    2. If the applicant is:
      1. A corporation, then:
        1. The manager of the licensed premises and the officers and directors must be legal residents of the United States and persons of good moral character; and
        2. The shareholders:
          1. Who are individuals, must be legal residents of the United States and of good moral character; and
          2. Which are organizations, must meet the requirements of this section for applicants which are organizations. Corporate applicants must first be properly registered with the secretary of state.
      2. A limited liability company, then:
        1. The manager of the licensed premises and the managers and governors must be legal residents of the United States and of good moral character.
        2. The members:
          1. Who are individuals, must be legal residents of the United States and of good moral character; and
          2. Which are organizations, must meet the requirements of this section for applicants that are organizations.
        3. The applicant must first be properly registered with the secretary of state.
      3. A limited partnership, then:
        1. The manager of the licensed premises must be a legal resident of the United States and of good moral character.
        2. The general partners and limited partners:
          1. If individuals, must be legal residents of the United States and of good moral character; and
          2. If organizations, must meet the requirements of this section for applicants that are organizations.
        3. The applicant must first be properly registered with the secretary of state.
      4. A general partnership, then:
        1. The manager of the licensed premises must be a legal resident of the United States and of good moral character; and
        2. The partners:
          1. Who are individuals, must be legal residents of the United States and of good moral character; and
          2. Which are organizations, must meet the requirements of this section for applicants that are organizations.
      5. A limited liability partnership, then:
        1. The manager of the licensed premises must be a legal resident of the United States and of good moral character; and
        2. The partners:
          1. Who are individuals, must be legal residents of the United States and of good moral character; and
          2. Which are organizations, must meet the requirements of this section for applicants that are organizations. Limited liability partnership applicants must first be properly registered with the secretary of state.
    3. The applicant or manager must not have been convicted of an offense determined by the attorney general to have a direct bearing upon an applicant's or manager's ability to serve the public as an alcoholic beverage retailer, or, following conviction of any offense, is determined not to be sufficiently rehabilitated under section 12.1-33-02.1.
    4. The building in which business is to be conducted must meet local and state requirements regarding the sanitation and safety.
    5. The applicant for a state license must have first secured a local license.
    6. The attorney general, or local governing body, may require the applicant to set forth such other information in the application as necessary to enable them to determine if a license should be granted.
    7. The applicant may not have any financial interest in any wholesale alcoholic beverage business.
    8. As a condition precedent to a background check, the attorney general may require the applicant to pay, in advance, an estimated additional fee necessary to defray the actual cost of a background check of a person for whom adequate background information sources are not readily available. The estimated additional fee must be placed in the attorney general's refund fund for use to defray the actual expenses of the background check. The remainder of the funds must be returned to the person within thirty days of the conclusion of the background check. In addition, the attorney general may require the applicant or such other person subject to a background check to execute a written consent if needed by the attorney general to obtain background or criminal history information.

    5-02-02.1. Sale of alcoholic beverages in gas stations, grocery stores, and convenience stores 🗎 PDF 

    Before a state retail off sale alcoholic beverage license may be issued to a person whose business to be licensed is located in a building that is primarily a gas station, grocery store, or convenience store, the area to be licensed for the sale of alcoholic beverages must be clearly set out in a blueprint or diagram. The area licensed for the sale of alcoholic beverages must be separated from the nonlicensed portion of the business by a wall designed to allow sales personnel to serve customers and make sales in both the licensed and unlicensed portions of the premises, and that may allow customers in either portion of the premises access to the other portion.

    5-02-03. Local license fees 🗎 PDF 

    The fee for an annual local on and off sale liquor license must be set by ordinance or resolution at not less than two hundred dollars nor more than two thousand dollars, except outside the corporate limits of a city the fee shall not exceed one thousand dollars. The fee for an annual on and off sale local beer license must be set by ordinance or resolution at not less than fifty dollars nor more than five hundred dollars. The fee for an annual local exclusive on sale liquor license must be set by ordinance or resolution at not less than two hundred dollars nor more than two thousand dollars, except outside the corporate limits of a city the fee must not exceed one thousand dollars. The fee for an annual local exclusive on sale local beer license must be set by ordinance or resolution at not less than fifty dollars nor more than five hundred dollars. The fee for an annual local exclusive off sale beer or off sale liquor license must not be more than the fee charged for an on and off sale license. The local governing body may by ordinance or resolution provide for issuance of licenses for any period not to exceed one year and may allow for proration and refunds of license fees. In addition to any other license fee permitted by this section, a license fee may be increased by not more than five dollars for each Sunday the licensee sells alcoholic beverages.

    5-02-04. State license fee 🗎 PDF 

    The fee for an annual state beer or liquor license is fifty dollars each, except in cities over five hundred population at the last federal decennial census, the fee is one hundred dollars for each license. The fee for an annual state license will be charged on a calendar-year basis. License fees will be prorated from the first day of the month in which the license is issued up to the last day of the month in which such license expires, except that no license fee will be less than twenty-five dollars. A reinstatement fee of one hundred dollars is required in addition to the annual license fee for each license renewal applied for after December thirty-first.

    5-02-05. Dispensing prohibited on certain days - Penalty 🗎 PDF 

    A person may not dispense or permit the consumption of alcoholic beverages on a licensed premises between two a.m. and eight a.m., on Christmas Day, or after six p.m. on Christmas Eve. In addition, a person may not provide off sale after two a.m. on Thanksgiving Day or between two a.m. and eight a.m. on Sundays. A person that violates this section is guilty of a class A misdemeanor.

    5-02-05.1. Sunday alcoholic beverage permit - Penalty 🗎 PDF 

    Repealed by S.L. 2017, ch. 104, § 2.

    5-02-05.2. Local approval of Sunday beer and wine sales by eating establishments - Fee 🗎 PDF 

    Repealed by S.L. 1993, ch. 63, § 6.

    5-02-06. Prohibitions for individuals under twenty-one years of age - Penalty - Exceptions 🗎 PDF 

    1. Except as permitted in this section, a licensee who dispenses alcoholic beverages to an individual under twenty-one years of age, or who permits an individual under twenty-one years of age to remain on the licensed premises while alcoholic beverages are being sold or displayed, is guilty of a class A misdemeanor, subject to sections 5-01-08, 5-01-08.1, and 5-01-08.2.
    2. An individual under twenty-one years of age may enter and remain on a licensed premises while alcohol is being sold or displayed, at the discretion of the owner of the licensed premises, if:
      1. The individual is accompanied by a parent or guardian who is twenty-one years of age or older. For purposes of this section, "guardian" means an individual who has the legal responsibility for the health and well-being of the individual under twenty-one years of age;
      2. The individual is on the premises to consume a meal or in an emergency situation;
      3. The premises serves at a tabletop, food that is prepared in a kitchen with at least an indoor grill;
      4. The individual is not on the licensed premises after ten p.m.; and
      5. The owner of the licensed premises receives permission of the local licensing authority for individuals to be on the premises as allowed under this section and the licensed premises is located in a city with a population of one thousand five hundred or fewer people, or the licensed premises is not located in a city.
      1. At the discretion of the owner of the licensed premises, an individual under twenty-one years of age may be permitted to enter and remain in a restaurant where alcoholic beverages are being sold and in the area of the restaurant designated for the opening or mixing of alcoholic beverages if the individual:
        1. Is accompanied by a parent or guardian;
        2. Is not seated at or within three feet [0.91 meters] of the bar counter; and
        3. Does not enter or remain in the designated area after ten p.m.
      2. At the discretion of the owner of a brewer taproom licensed under section 5-01-21, an individual under twenty-one years of age may be permitted to enter and remain in the brewer taproom if:
        1. The brewer taproom is connected to or contracts with an establishment, including a mobile food unit, at which food is prepared and available for purchase to be consumed in the brewer taproom and which is connected to or located at the brewer taproom and receives the majority of its gross sales from the sale of food; and
        2. The individual:
          1. Is accompanied by the individual's parent or guardian;
          2. Is not seated at or within three feet [0.91 meters] of the bar counter; and
          3. Does not enter or remain in the brewer taproom after ten p.m. or during any time that food is not available for consumption as provided in paragraph 1.
      3. An individual under twenty-one years of age may be permitted to remain in a restaurant where alcoholic beverages are being sold if the restaurant is separated from the designated area in which alcoholic beverages are opened or mixed and gross sales of food are at least equal to gross sales of alcoholic beverages which are consumed in the dining area, or if the individual is employed by the restaurant as a food waiter, food waitress, busboy, or busgirl under the direct supervision of an individual twenty-one years of age or older and is not engaged in the sale, dispensing, delivery, or consumption of alcoholic beverages.
      4. For purposes of this subsection, "mobile food unit" means a vehicle-mounted food service establishment designed to be readily movable from which a vendor prepares, cooks, sells, or serves food or beverages for immediate consumption.
    4. An individual under twenty-one years of age may enter and remain on the licensed premises if the individual is an independent contractor or the independent contractor's employee engaged in contract work and is not engaged in selling, dispensing, delivering, or consuming alcoholic beverages; if the individual is a law enforcement officer or other public official who enters the premises in the performance of official duty; or if the individual enters the licensed premises for training, education, or research purposes under the supervision of an individual twenty-one or more years of age with prior notification of the local licensing authority.
    5. An individual under twenty-one years of age may attend an event where alcoholic beverages are sold in accordance with the conditions of an event permit issued pursuant to section 5-02-01.1.
    6. A restaurant may employ an individual who is eighteen years of age or older but under twenty-one years of age as provided in subsection 3 to serve and collect money for alcoholic beverages, if the individual is under the direct supervision of an individual twenty-one or more years of age, but may not be engaged in mixing, dispensing, or consuming alcoholic beverages. Any establishment that sells alcoholic beverages may employ an individual from eighteen to twenty-one years of age to work on the premises as a musician, disc jockey, or entertainer, or to perform duties directly related to working as a musician, disc jockey, or entertainer if the individual is under the direct supervision of an individual twenty-one or more years of age.
    7. For purposes of this section, an individual is not twenty-one years of age until eight a.m. on that individual's twenty-first birthday.
    8. If an individual is convicted of this section, the court shall consider the following in mitigation:
      1. After consuming the alcohol, the underage individual was in need of medical assistance as a result of consuming alcohol; and
      2. Within twelve hours after the underage individual consumed the alcohol, the defendant contacted law enforcement or emergency medical personnel to report that the underage individual was in need of medical assistance as a result of consuming alcohol.

    5-02-06.1. Evidence of an individual under twenty-one years of age in a licensed premises - Proof of identification - Refusal - Penalty 🗎 PDF 

    1. If a peace officer has reasonable and articulable suspicion that an individual under the age of twenty-one is in a licensed premises for a purpose prohibited under section 5-02-06, the peace officer may request the individual to furnish a nondriver photo identification card or an operator's license to verify the individual's age.
    2. An individual who refuses to provide proof of identification upon request is guilty of an infraction.
    3. If an individual charged with an infraction under this section produces a nondriver photo identification card or an operator's license before the final disposition of the infraction establishing the individual was twenty-one years of age or older at the time of the peace officer's request to furnish identification, the prosecuting attorney shall dismiss the infraction against the individual.

    5-02-07. Sale of other items restricted - Penalty 🗎 PDF 

    Repealed by S.L. 1975, ch. 106, § 673.

    5-02-07.1. Sale of alcoholic beverages in exchange for goods prohibited 🗎 PDF 

    Any licensee engaged in the retail sale of alcoholic beverages who accepts goods, chattels, or other tangible personal property, other than money, checks, legal tender, negotiable instruments, or other evidences of debt, in exchange for any alcoholic beverages is guilty of a class B misdemeanor.

    5-02-07.2. Sale of beer in kegs - Registration and marking required 🗎 PDF 

    1. Any retail alcoholic beverage licensee who sells beer in a container with a liquid capacity greater than six gallons [22.71 liters] must place the licensee's state retail alcoholic beverage license number on the container and also must mark the container with a "registration" number or letters, or both, unique to that container. The paint or ink used to mark the containers or other manner of marking the containers must be approved by the attorney general.
    2. Whenever a retail alcoholic beverage licensee sells beer in a container with a liquid capacity greater than six gallons [22.71 liters], the licensee shall record the date of sale and the name, address, and driver's license number or number of other official state or military identification card of the person to whom the beer is sold, together with the signature, and registration number, or letters of the container, or both. Such records must be retained for a period of no less than six months and must be kept on the licensed premises of the retail establishment where the sales are made.
    3. Each retail alcoholic beverage licensee shall permit any law enforcement officer to inspect the records required to be kept pursuant to this section during times the retail establishment is normally open for business or at other reasonable times.
    4. This section does not apply to the sale of beer in a container by a retail alcoholic beverage licensee if the contents of the container are consumed on the licensed premises where the sale occurred.

    5-02-08. Disorderly conduct prohibited - Penalty 🗎 PDF 

    Repealed by S.L. 1975, ch. 106, § 673.

    5-02-09. Local regulations 🗎 PDF 

    The local governing body by ordinance or resolution may regulate or restrict the operation of licensees, including among other things determining the number of licenses to be granted, establishing health and safety standards for licensed premises, setting of hours, regulation of open door policies by fraternal organizations or private clubs, and regulation of dancing or various forms of entertainment on the premises.

    5-02-09.1. Attorney general to adopt rules 🗎 PDF 

    The attorney general pursuant to chapter 28-32 shall adopt rules necessary to carry out the provisions of this chapter.

    5-02-10. Hearing on alleged violations 🗎 PDF 

    1. If a person has information that a licensed retailer of alcoholic beverages has violated any provision of this title, the person may file with the attorney general, city attorney, or state's attorney an affidavit specifically explaining the violation within fourteen days of the date of the alleged violation.
    2. If a person timely files an affidavit under subsection 1, the city attorney or state's attorney shall set the matter for hearing not later than the next regular meeting of the local governing body or forward the affidavit to the attorney general.
    3. If a person timely files an affidavit under subsection 1, the attorney general shall set the matter for hearing in the local county courthouse not less than ten days after copies of the affidavit and notice of hearing have been mailed to the licensee by registered mail.
    4. If the hearing is held by the local governing body, a copy of the affidavit and notice of hearing must be mailed to the licensee by registered mail not less than five days before the hearing.
    5. A hearing conducted under this section must be recorded by stenographic notes or the use of an electronic recording device.

    05-02-10.1. Violations - Alcohol server training 🗎 PDF 

    For a first violation taken against the retail licensee by a licensing authority for serving alcoholic beverages, the licensing authority shall accept as a mitigating factor the retail licensee provided to the licensee's employees alcohol server training that addressed intoxication, drunk driving, and underage drinking, as approved by the licensing authority. Under this section, a mitigating factor must result in a lesser punishment than the retail licensee would have received if not for the mitigating factor.

    5-02-11. Suspension or revocation of license - Appeal 🗎 PDF 

    If after such hearing the attorney general or local governing body finds the violation charged in the affidavit has been proved by the evidence, an order must be served on the licensee revoking or suspending the licensee's license for a period of time. Such action may be appealed to the district court by following the appeal procedure set forth in chapter 28-32, except that the order revoking or suspending the license is inoperative while the appeal is pending.

    5-02-12. Witnesses - Subpoena - Fees 🗎 PDF 

    The attorney general or a member of the local governing body has the power to administer oaths and subpoena and examine witnesses. Any witness called by the prosecution, except a peace officer while on duty, shall receive the same fees and mileage as a witness in a civil case in district court.

    5-02-13. Removal of wine from restaurant 🗎 PDF 

    If a full bottle of wine has been opened and the contents partially consumed, a retail alcoholic beverage licensee whose gross sales of food are at least thirty percent of the gross sales of alcoholic beverages consumed on the premises may permit an individual purchasing the bottle to remove the bottle when leaving the licensed premises if the licensee reseals the bottle with a seal that must be made conspicuously inoperative to reopen the bottle, and places a receipt of sale with the bottle. The removal of the bottle under these conditions is not an off sale of wine and is permitted without an additional license.

    Chapter 03 — Beer And Liquor Wholesalers - Taxation

    5-03-01. State wholesale license required - Qualifications - Penalty - Exception 🗎 PDF 

    Before any person engages in the sale at wholesale of beer or liquor in this state, that person shall first procure a license from only the state tax commissioner. The license must only allow sale to licensed retailers, licensed wholesalers, regular retail outlets on federal military reservations, and sale for export from a federally bonded warehouse, or a foreign trade zone, to an export bonded warehouse. No license may be issued unless the applicant files a sworn application, accompanied by the required fee, showing the following qualifications:
    1. If the applicant is not a corporation, the applicant must be a citizen of the United States and a resident of this state and a person of good moral character. If the applicant is a corporation, the manager of the licensed premises must be a resident of this state, a citizen of the United States, and a person of good moral character, and the officers, directors, and stockholders must be citizens of the United States and persons of good moral character. Corporate applicants must first be properly registered with the secretary of state.
    2. The state tax commissioner may require the applicant to set forth other information necessary to enable the state tax commissioner to determine if a license should be granted.
    3. A person is not eligible for such a license unless that person has a warehouse and office in this state, in which is kept a complete set of records relative to that person's alcoholic beverage transactions in this state.
    4. The applicant may not have any financial interest in any retail alcoholic beverage business.
    5. The provisions of this section relating to warehousing do not apply to a wholesaler of beer located in an adjoining state that permits wholesalers licensed in North Dakota to deliver beer to retailers without warehousing in that state. A lender who acquires an inventory of beer or liquor by reason of a foreclosure of a security interest in the inventory is exempt from the requirement to obtain a license before the sale of the inventory. The lender shall offer the inventory for sale first to the wholesaler. A lender who forecloses upon a security interest in beer inventory for which the lender has a security interest shall dispose of the beer inventory within ninety days of obtaining possession of the inventory. Any person distributing alcoholic beverages in this state without compliance with this title is guilty of a class B misdemeanor.

    5-03-01.1. Conviction not bar to licensure - Exceptions 🗎 PDF 

    Conviction of an offense shall not disqualify a person from licensure under this chapter unless the state tax commissioner determines that the offense has a direct bearing upon a person's ability to serve the public as a beer or liquor wholesaler, or that, following conviction of any offense, the person is not sufficiently rehabilitated under section 12.1-33-02.1.

    5-03-01.2. Brand registration - Penalty 🗎 PDF 

    Repealed by S.L. 2005, ch. 73, § 5.

    5-03-02. Fees 🗎 PDF 

    The fee for an annual wholesale liquor license is one thousand dollars. The fee for an annual wholesale beer license is two hundred dollars. Fees must be reduced twenty-five percent for each full quarter of a year elapsed between the first day of the year for which the license is issued and the date on which the application for the license is filed with the state tax commissioner. When an application clearly indicates that the applicant does not desire to exercise the privileges granted by the license applied for until on or after the beginning of the quarterly period following the quarterly period in which the application is filed with the department, the fees must be reduced twenty-five percent for each full quarter of a year elapsing between the first day of the year for which the license is issued and the date indicated on the application. A license may not be issued for any period for a fee less than one-half of the annual license fee.

    5-03-03. Bond required 🗎 PDF 

    Repealed by S.L. 1995, ch. 74, § 5.

    5-03-04. Collection of taxes 🗎 PDF 

    The taxes imposed by this chapter are payable as follows:
    1. Except as provided in subsection 3, wholesalers shall pay the tax to the state tax commissioner on or before the fifteenth day of each month.
    2. Liquor wholesalers shall make the payments based on the total gallonage sold the preceding calendar month. Beer wholesalers shall make the payments based on the total gallonage purchased from brewers the preceding calendar month. Microbrew pubs shall make payments based on the total gallonage sold onpremises during the preceding calendar month.
    3. Sales of alcoholic beverages for export through a federally bonded warehouse, or a foreign trade zone, to an export bonded warehouse are excluded from the computation of the gallonage tax. If the alcoholic beverages are returned to this state from the federally bonded warehouse, the foreign trade zone, or the export bonded warehouse, the exemption no longer applies.
    4. Upon satisfactory proof, a tax credit is allowed beer wholesalers for beer purchased, but which cannot be sold in this state. A tax credit is allowed wholesalers on bad accounts which are charged off for income tax purposes, but a pro rata tax is again payable on any accounts subsequently collected.
    5. If any wholesaler makes an overpayment of taxes due, the state tax commissioner shall issue a credit applicable to future obligations or certify that amount to the office of management and budget for a refund.
    6. Any remittance within one dollar of the correct amount due may be accepted by the state tax commissioner as the correct amount due.

    5-03-05. Tax commissioner to adopt rules - Appeal 🗎 PDF 

    The tax commissioner, under chapter 28-32, shall adopt rules governing retailers, licensees, direct shippers, and manufacturers necessary to carry out the provisions of this title and to ensure efficient collection of beer and liquor taxes. All decisions of the tax commissioner are subject to court review.

    5-03-06. Examination by tax commissioner - Penalty for improper returns 🗎 PDF 

    The state tax commissioner may at any reasonable time make an examination of the books and premises of any retailer, wholesaler, manufacturer, domestic winery, domestic distillery, microbrew pub, direct shipper, licensed alcohol carrier, licensed logistics shipper, or other person to determine if the person has fully complied with all statutes and rules pertaining to the person's business. If any manufacturer, wholesaler, domestic winery, domestic distillery, microbrew pub, or direct shipper liable for any taxes imposed by this chapter fails to pay such tax on the date payment is due, there must be added to the tax a penalty of five percent of the total amount of the tax or five dollars, whichever is greater, plus interest of one percent of the tax per month or fraction of a month of delay, except the first month after the return or tax became due. Any manufacturer, wholesaler, domestic winery, domestic distillery, microbrew pub, direct shipper, licensed alcohol carrier, or licensed logistics shipper failing to furnish reports when required must be assessed a penalty of one hundred dollars for each day such reports are delinquent. The state tax commissioner may forgive all or part of any penalty for good cause shown. The tax commissioner shall give notice of the determination to the person liable for tax. If the determination of tax due relates to an incorrect or insufficient return filed by a taxpayer, notice of the determination must be given not later than three years after the last day on which the return was due or three years after the return was filed, whichever is later. If it is determined upon audit by the tax commissioner that the tax due was twenty-five percent or more above the amount reported on the return, notice of determination of tax due must be given not later than six years after the last day on which the return was due or six years after the return was filed, whichever is later. Notice of determination of tax due for any reporting period for which a taxpayer failed to file a return must be given not later than six years after the due date of the return, but if fraudulent information is given in a return or the failure to file a return is due to the fraudulent intent or willful attempt of the taxpayer in any manner to evade the tax, the time limitation provided in this section for giving notice of the determination of tax due does not apply. If any manufacturer, wholesaler, domestic winery, domestic distillery, microbrew pub, or direct shipper files a fraudulent return, there must be added to the tax an amount equal to the tax evaded or attempted to be evaded and such manufacturer, wholesaler, domestic winery, domestic distillery, microbrew pub, or direct shipper is also guilty of a class C felony. All such taxes and civil penalties may be collected by assessment or distraint, and no court of this state may enjoin the collection of any such tax or civil penalty. No wholesaler may purchase alcoholic beverages from a manufacturer after notice from the tax commissioner that such manufacturer has failed to file required reports with the tax commissioner's office. Any manufacturer, wholesaler, domestic winery, domestic distillery, microbrew pub, direct shipper, licensed alcohol carrier, or licensed logistics shipper may have its license suspended or revoked for violation of any of the provisions of this title after a hearing conducted similar to that prescribed by this law.

    5-03-06.1. Hearing on alleged violations - Denial of license 🗎 PDF 

    On licenses that are renewable annually, the state tax commissioner may not revoke or suspend a license or deny a renewal prior to conducting a hearing in accordance with chapter 28-32.

    5-03-07. Imposition of tax - Rate 🗎 PDF 

    A tax is hereby imposed upon all alcoholic beverage wholesalers, domestic wineries, domestic distilleries, microbrew pubs, brewer taproom licensees, and direct shippers for the privilege of doing business in this state. The amount of this tax shall be determined by the gallonage according to the following schedule: Beer in bulk containers - per wine gallon$.08 (.021 per liter) Beer in bottles and cans - per wine gallon.16 (.042 per liter) Wine, including sparkling wine, containing less than 17% alcohol by.50 (.132 per liter) volume - per wine gallon Wine containing 17%-24% alcohol by volume - per wine gallon.60 (.159 per liter) Distilled spirits - per wine gallon2.50 (.66 per liter) Alcohol - per wine gallon4.05 (1.07 per liter)

    5-03-08. Taxes and fees deposited in the general fund 🗎 PDF 

    All moneys collected by the tax commissioner under this chapter must be transferred to the state treasurer, within ten days after the end of the month in which they were collected, and deposited in the state general fund.

    5-03-09. Supplier license required - Filing requirements - Penalty 🗎 PDF 

    1. Before a supplier may engage in the sale or shipment of alcoholic beverages to a licensed North Dakota wholesaler, that supplier must first procure a supplier license from the state tax commissioner.
    2. For any month in which a licensed supplier has made sales to a North Dakota wholesaler, that supplier shall file a report with the state tax commissioner no later than the last day of each calendar month covering alcoholic beverages sold or shipped to a North Dakota wholesaler during the preceding calendar month. When the last day of the calendar month falls on a Saturday, Sunday, or legal holiday, the due date is the first working day thereafter. The report must provide such detail and be in a format as prescribed by the state tax commissioner. The state tax commissioner may require that the report be submitted in an electronic format approved by the state tax commissioner.
    3. If a supplier fails to file the required report as required by this section, there is imposed a penalty of twenty-five dollars per month for each calendar month or fraction of a month during which the delinquency continues beginning with the month during which the report was due. Any assessed penalty may be waived by the tax commissioner for good cause upon request by the supplier.
    4. A supplier in violation of this section or who furnishes information required by this section that is false or misleading is guilty of a class A misdemeanor.
    5. In addition, whenever the holder of a supplier's license fails to comply with any of the provisions of this title or any rules or regulations prescribed by the state tax commissioner and adopted under this title, the state tax commissioner, upon hearing after giving ten days' notice of the time and place of the hearing to show cause why the holder's license should not be revoked, may revoke the license. The state tax commissioner also shall have the power to restore licenses after such revocation. Whenever the holder of a license has had the license revoked for failure to comply with the provisions of this title or any rules and regulations prescribed by the state tax commissioner and adopted under this title, the state tax commissioner shall charge a fee of one hundred dollars for the reissuance of the license.

    Chapter 04 — Beer Wholesaler And Brewer Relationships

    5-04-01. Definitions 🗎 PDF 

    As used in this chapter, unless the context otherwise requires:
    1. "Agreement" means one or more of the following:
      1. A commercial relationship between a licensed beer wholesaler and a licensed brewer of a definite or indefinite duration which is not required to be evidenced in writing.
      2. A relationship whereby the beer wholesaler is granted the right to offer and sell a brand or brands of beer offered by a brewer.
      3. A relationship whereby the beer wholesaler, as an independent business, constitutes a component of a brewer's distribution system.
      4. A relationship whereby the beer wholesaler's business is substantially associated with a brewer's brand or brands, designating the brewer.
      5. A relationship whereby the beer wholesaler's business is substantially reliant on a brewer for the continued supply of beer.
      6. A written or oral arrangement for a definite or indefinite period whereby a brewer grants a license to a beer wholesaler to use a brand, trade name, trademark, or service mark, and in which there is a community of interest in the marketing of goods or services at wholesale or retail.
    2. "Ancillary business" means a business owned by a wholesaler, a stockholder of a wholesaler, or a partner of a wholesaler, the primary business of which is directly related to the transporting, storing, or marketing of the brewer's products with whom the wholesaler has an agreement.
    3. "Beer wholesaler" or "wholesaler" means any licensee, as outlined in section 5-03-01, importing or causing to be imported into this state or purchasing or causing to be purchased within this state, any beer for sale or resale to retailers or wholesalers licensed pursuant to chapter 5-02 or 5-03, without regard to whether the business of the person is conducted under the terms of an agreement with a licensed brewer.
    4. "Brand" means any word, name, group of letters, symbol, or combination thereof, that is adopted and used by a brewer or importer to identify a specific beer product, and to distinguish that beer product from another beer product.
    5. "Brand extension" is any brand that incorporates all or a substantial part of the unique features of a pre-existing brand of the same brewer or importer and which relies to a significant extent on the goodwill associated with that pre-existing brand.
    6. "Brewer" means every licensed brewer or importer of beer located within or without this state who enters into an agreement with any beer wholesaler licensed to do business in this state.
    7. "Person" means a natural person, corporation, limited liability company, partnership, trust, agency, or other entity as well as the individual officers, directors, or other persons in active control of the activities of each such entity. "Person" also includes heirs, assigns, personal representatives, conservators, and guardians.
    8. "Territory" or "sales territory" means the area of primary sales responsibility designated by any agreement between any beer wholesaler and brewer for the brand or brands of any brewer.

    5-04-02. Inducement or coercion prohibited 🗎 PDF 

    A brewer may not:
    1. Induce or coerce, or attempt to induce or coerce, a beer wholesaler to accept delivery of an alcoholic beverage or other commodity which has not been ordered by the beer wholesaler.
    2. Induce or coerce, or attempt to induce or coerce, a beer wholesaler to enter an agreement or take an action that would violate a law or rule of this state by threatening to amend, cancel, terminate, or refuse to renew an agreement existing between a brewer and a beer wholesaler.
    3. Require a wholesaler to assent to a condition, stipulation, or provision limiting the wholesaler's right to sell any other brewer's product anywhere in this state, provided the sale of another brewer's product does not materially impair the quality of service or quantity of sales of the existing brand or brands of the brewer seeking to impose the condition, stipulation, or provision.
    4. Require a wholesaler to submit specific, confidential information regarding competitive brands, as a condition of renewal or continuation of an agreement.
    5. Fail to provide each wholesaler of its brands with a written contract that conforms to this chapter and embodies the brewer's agreement with each wholesaler.
    6. Require a wholesaler to use or prohibit a wholesaler from using a business-to-business electronic commerce platform.

    5-04-03. Dual distributorship prohibited 🗎 PDF 

    No brewer who designates a sales territory for which a wholesaler shall be primarily responsible shall enter into an additional agreement with any other beer wholesaler for its brand or brands of beer in the same territory. No wholesaler may deliver beer to a retail account outside a sales territory designated by the brewer of a particular brand or brands.

    5-04-04. Agreement cancellation 🗎 PDF 

    Notwithstanding the terms, provisions, or conditions of any agreement, no brewer may amend, cancel, terminate, or refuse to renew any agreement, or cause a wholesaler to resign from an agreement, unless good cause exists for amendment, termination, cancellation, nonrenewal, noncontinuation, or causing a resignation. "Good cause" does not include the sale or purchase of a brewer. "Good cause" includes, but is not limited to, the following:
    1. Revocation of the wholesaler's license to do business in this state.
    2. The wholesaler's bankruptcy or insolvency.
    3. Assignment for the benefit of creditors or similar disposition of the wholesaler's assets.
    4. The wholesaler's failure to comply, without reasonable excuse or justification, with any reasonable and material requirement imposed upon the wholesaler by the brewer. In any dispute over an amendment, cancellation, termination, or nonrenewal, the brewer has the burden of proving the existence of good cause. If a wholesaler initiates a civil action, the brewer bears the burden of proving the existence of good cause after a prima facie showing by the wholesaler that good cause does not exist.

    5-04-05. Notice of intent to terminate 🗎 PDF 

    Except as otherwise provided in this section, a brewer shall provide a wholesaler with at least ninety days prior written notice of any intent to amend, terminate, cancel, or not renew any agreement. The notice must state all the reasons for the intended amendment, termination, cancellation, or nonrenewal. The wholesaler has ninety days after receiving notice in which to rectify any claimed deficiency. If the deficiency is rectified within ninety days of notice, the proposed amendment, termination, cancellation, or nonrenewal is void. The notice provisions of this section do not apply if the reason for the termination, cancellation, or nonrenewal is:
    1. The wholesaler's bankruptcy or insolvency.
    2. An assignment for the benefit of creditors or similar disposition of the business assets.
    3. Revocation of the wholesaler's license.
    4. Conviction or a plea of guilty or no contest to a charge of violating a law relating to the business that materially affects the wholesaler's ability to remain in business.

    5-04-06. Assignment, transfer, or sale of business 🗎 PDF 

    No brewer may unreasonably withhold consent to any assignment, transfer, or sale of the wholesaler's business whenever the wholesaler to be substituted meets the material and reasonable qualifications and standards required of the brewer's wholesalers. No brewer may unreasonably refuse, withhold, or unduly delay its approval of the issuance, sale, or transfer by a corporate beer wholesaler of its capital stock or any other corporate equity or debt security.

    5-04-07. Reasonable compensation for wrongful cancellation 🗎 PDF 

    1. Any brewer which amends, cancels, terminates, or refuses to renew any beer agreement, or causes a wholesaler to resign from an agreement, unless for "good cause" as defined by section 5-04-04, or which unreasonably withholds consent to any assignment, transfer, or sale of a wholesaler's business, shall pay the wholesaler reasonable compensation for the value of the wholesaler's business with relationship to the terminated brand or brands. The value of the wholesaler's business includes, but is not limited to, the fair market value of the wholesaler's business with respect to the terminated brand or brands, including the value of any ancillary business of the wholesaler and the goodwill of the business or ancillary business. The value of the wholesaler's business may not exceed the wholesaler's actual damages.
    2. If the brewer and the beer wholesaler are unable to mutually agree on reasonable compensation for the value of the wholesaler's business, the matter must be submitted to a neutral arbitrator to be selected by the parties or, if they cannot agree, by the presiding district judge of the district in which the wholesaler's main office is located. All arbitration costs shall be divided equally between the wholesaler and the brewer. The award of the neutral arbitrator shall be final and binding on the parties.

    5-04-08. Judicial remedies 🗎 PDF 

    If a brewer engages in conduct prohibited under this chapter, a wholesaler, with whom the brewer has an agreement pursuant to this chapter, may maintain a suit against the brewer. The venue of any legal action taken under this section, or pursuant to a dispute arising out of an agreement or breach thereof, or over the provisions of an agreement, is a court, state or federal, located in North Dakota, or where the wholesaler maintains its principal place of business in this state. The court may grant equitable relief as is necessary to remedy the effects of conduct which it finds to exist and which is prohibited under this chapter, including, but not limited to, declaratory judgment and injunctive relief. The court may award actual damages and costs. If the court finds the brewer has acted in bad faith in invoking amendment, termination, cancellation, or nonrenewal under this chapter or has unreasonably withheld its consent to any assignment, transfer, or sale of the wholesaler's agreement, the court may also award reasonable attorney's fees.

    5-04-09. Product price 🗎 PDF 

    No brewer, whether by means of a term or condition of an agreement or otherwise, may fix or maintain the price at which the wholesaler sells any alcoholic beverage.

    5-04-10. Retaliatory action prohibited 🗎 PDF 

    A brewer may not take retaliatory action against a wholesaler who files or manifests an intention to file a complaint of alleged violation of state or federal law or regulation by the brewer with the appropriate state or federal regulatory authority. "Retaliatory action" includes, but is not limited to, refusal without good cause to continue the agreement, or a material reduction in the quality of service or quantity of products available to the wholesaler under the agreement.

    5-04-11. Wholesaler management 🗎 PDF 

    No brewer may require or prohibit any change in management or personnel of any wholesaler unless the current or potential management or personnel fails to meet essential, reasonable, and nondiscriminatory requirements.

    5-04-12. Discrimination prohibited 🗎 PDF 

    No brewer may discriminate among its North Dakota wholesalers in the price of beer sold to the North Dakota wholesalers or in price promotions. No wholesaler may refuse to sell to any licensed alcoholic beverage retailer in its sales territory. No wholesaler may discriminate among the licensed alcoholic beverage retailers in its sales territory in the price of beer sold to the retailers or in price promotions.

    5-04-13. Waiver prohibited 🗎 PDF 

    No brewer may require any wholesaler to waive compliance with any provision of this chapter. Nothing in this chapter may be construed to limit or prohibit good-faith dispute settlements voluntarily entered into by the parties. However, no provision of any written agreement may require the law of any state other than North Dakota to govern the relationship of the parties.

    5-04-14. Sale of brewer 🗎 PDF 

    Except for good cause, as defined by section 5-04-04, the purchase of a brewer as defined in section 5-04-01 shall obligate the purchaser to all terms and conditions of the agreement in effect on the date of purchase. "Purchase", for the purposes of this chapter, includes the sale of stock, sale of assets, merger, lease, transfer, or consolidation.

    5-04-15. Application to agreements 🗎 PDF 

    The provisions of this chapter cover agreements in existence on July 1, 1981, as well as agreements entered into after July 1, 1981.

    5-04-16. Right of free association 🗎 PDF 

    No brewer or wholesaler may restrict or inhibit, directly or indirectly, the right of free association among brewers or wholesalers for any lawful purpose.

    5-04-17. Chapter to apply when in conflict with title 51 🗎 PDF 

    The provisions of this chapter apply in any instances when the provisions of this chapter conflict with the unfair practice provisions of title 51.

    5-04-18. Same brands - Assignment of brand extensions 🗎 PDF 

    Different categories of products manufactured and marketed under a common identifying trade name are the same brand. For example, "old faithful" includes "old faithful", "old faithful light", "old faithful draft", "old faithful dry", and other products identified principally by the old faithful name. Differences in packaging do not establish different brands. A brewer or importer may assign a brand extension only to the wholesaler with an exclusive sales territory to the brand that is the basis for the brand extension. This limitation does not apply to assignments of brand extensions to wholesalers which were made by a brewer or importer before August 1, 1995. If, before August 1, 1995, a brewer or importer assigned a brand extension to a wholesaler that is without exclusive sales territory to the brand that is the basis of the brand extension, any additional brand extension must be assigned to the wholesaler who first had the brand.

    Title 6 — Banks And Banking

    Chapter 01 — Department Of Financial Institutions

    6-01-01. Management and control - State department of financial institutions - Local ordinances preempted 🗎 PDF 

    The state department of financial institutions is under the supervision of the state banking board, state credit union board, and a chief officer designated as the commissioner of financial institutions. The state department of financial institutions has charge of the execution of all laws relating to state banks, trust companies, credit unions, building and loan associations, mutual investment corporations, mutual savings corporations, banking institutions, and other financial corporations, exclusive of the Bank of North Dakota. A local governing body may not adopt or enforce a resolution or an ordinance regulating a financial institution, financial corporation, or credit union.

    6-01-01.1. Regulatory fund established - Uses - Continuing appropriation. (Effective through June 30, 2029) 🗎 PDF 

    1. There is created a special fund designated as the financial institutions regulatory fund. The amounts received under the following chapters, and any other moneys received by the department of financial institutions, must be deposited into this fund: chapters 6-01, 6-03, 6-05, 6-06, 6-10, 13-04.1, 13-05, 13-08, 13-09.1, 13-10, and 13-11.
    2. All moneys deposited in the financial institutions regulatory fund are reserved for use by the department of financial institutions to defray the expenses of the department in the discharge of its administrative and regulatory powers and duties as prescribed by law, subject to the applicable laws relating to the deposit and expenditure of state moneys.
    3. All moneys in the financial institutions regulatory fund are appropriated on a continuing basis to the department of financial institutions to carry out its administrative and regulatory powers and duties within the limits of an annual or biennial budget approved by the state banking board and state credit union board.
    4. The department of financial institutions is responsible for the proper expenditure of these moneys as provided by law and shall document the revenues and expenditures of the fund at the time and in the manner required by the office of management and budget.
    5. Any cash balance in the financial institutions regulatory fund after all current biennium expenditures are met must be carried forward in the financial institutions regulatory fund for the next succeeding biennium.
    6. All moneys derived from the investment of any portion of the financial institutions regulatory fund must be credited to the fund.

    Regulatory fund established - Uses - Appropriation. (Effective after June 30, 2029)
    1. There is created a special fund designated as the financial institutions regulatory fund. The amounts received under the following chapters, and any other moneys received by the department of financial institutions, must be deposited into this fund: chapters 6-01, 6-03, 6-05, 6-06, 6-10, 13-04.1, 13-05, 13-08, 13-09.1, 13-10, and 13-11.
    2. All moneys deposited in the financial institutions regulatory fund are reserved for use by the department of financial institutions to defray the expenses of the department in the discharge of its administrative and regulatory powers and duties as prescribed by law, subject to the applicable laws relating to the appropriation of state funds and to the deposit and expenditure of state moneys. The department of financial institutions is responsible for the proper expenditures of these moneys as provided by law.
    3. Any cash balance in the financial institutions regulatory fund after all current biennium expenditures are met must be carried forward in the financial institutions regulatory fund for the next succeeding biennium.
    4. All moneys derived from the investment of any portion of the financial institutions regulatory fund must be credited to the fund.

    6-01-02. Definitions 🗎 PDF 

    As used in this title, unless the context or subject matter otherwise requires:
    1. "Association", "banking association", or "state banking association" means any corporation organized under the laws of this state covering state banking associations, and all corporations, limited liability companies, partnerships, firms, or associations whose business in whole or in part consists of the taking of money on deposit, except national banks, trust companies, and the Bank of North Dakota.
    2. "Bank" means any national bank, national banking association, corporation, state bank, cooperative financial institution, state banking association, or savings bank, whether organized under the laws of this state or of the United States, engaged in the business of banking.
    3. "Bank holding company" means bank holding company as defined in 12 U.S.C. 1841(a)(1).
    4. "Banking" means the business of receiving deposits, making loans, discounting commercial paper, issuing drafts, traveler's checks, and similar instruments, handling and making collections, cashing checks and drafts, and buying and selling exchange.
    5. "Banking department" means the state department of financial institutions.
    6. "Banking institution" means any bank, trust company, or bank and trust company organized under the laws of this state.
    7. "Branch" means a place of business where deposits are received, checks paid, or money lent as a result of a bank that was merged into another bank pursuant to an interstate merger.
    8. "Commissioner" means the commissioner of financial institutions.
    9. "Cooperative financial institution" means an institution without capital stock organized under chapter 6-06.2 and operated for mutual purposes and without profit, and which is subject by law to supervision and examination by the department and federal authority which have supervision over such institutions.
    10. "Corporate central credit union" means a credit union operated for the primary purpose of serving corporate accounts. A credit union is deemed to be a corporate central credit union when its total dollar amount of outstanding corporate loans plus corporate share and deposit holdings is equal to or greater than seventy-five percent of its outstanding loans plus share and deposit holdings.
    11. "Credit union" means a cooperative, nonprofit association organized for the purposes of encouraging thrift among its members, creating a source of credit at a fair and reasonable rate of interest, and providing an opportunity for its members to improve their economic and social condition.
    12. "Derivative transaction" means derivative transaction as defined in 12 U.S.C. 84(b)(3).
    13. "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.
    14. "Electronic communication" means any form of communication, not directly involving the physical transmission of paper that creates a record that may be retained, retrieved, and reviewed by a recipient of the communication and may be directly reproduced in paper form by the recipient through an automated process.
    15. "Electronic record" means a record created, generated, sent, communicated, received, or stored by electronic means.
    16. "Electronic signature" means an electronic sound, symbol, or process attached to or logically associated with a record and signed or adopted by a person with the intent to sign the record.
    17. "Financial corporation" means all entities regulated by the department of financial institutions, excluding financial institutions and credit unions.
    18. "Financial institution" means any bank, industrial loan company, or savings and loan association organized under the laws of this state or of the United States.
    19. "Market value" means the highest price for which property can be sold in the open market by a willing seller to a willing purchaser, neither acting upon compulsion and both exercising reasonable judgment.
    20. "Merger" or "merge" means the merging or consolidation of two or more banks including the purchase of all or substantially all of the assets and assumption of liabilities of a bank, facility, or branch.
    21. "Mutual investment corporation" or "mutual savings corporation" means a corporation organized to engage in the investment or savings business, but having no capital stock or a nominal capital stock.
    22. "National bank" or "national banking association" means an institution chartered by the comptroller of the currency under the National Bank Act [12 U.S.C. 24].
    23. "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
    24. "Technology service provider" includes any person that provides services to a financial institution, financial corporation, or credit union, including: core processing; information and transaction processing and settlement activities that support banking functions such as lending, deposit-taking, funds transfer, fiduciary, or trading activities; internet-related services; security monitoring; and system development and maintenance.
    25. "Tier 1, tier 2, and tier 3 capital" means those terms as set under title 12, Code of Federal Regulations, part 325, in effect on August 1, 2011.
    26. "Trust company" means any corporation formed for the purpose of transacting business as an annuity, safe deposit, surety, or trust company.

    6-01-03. State banking board and state credit union board 🗎 PDF 

    1. The state banking board consists of the commissioner and six members to be appointed by the governor, four of whom must each have had at least five years' experience in an executive capacity in the management of a state bank in the state of North Dakota, one of whom must have at least five years' experience in an executive capacity in the management of any state or national bank in North Dakota, and one of whom must be a laymember from the public at large. The term of office of the members of the board, other than the commissioner, is for a period of five years. In case of a vacancy in the board, by death, resignation, or removal of an appointed member, the vacancy must be filled by appointment by the governor for the unexpired term. The commissioner is the chairperson of the board and the attorney general is, ex officio, the attorney for the board. The assistant commissioner shall serve as its secretary. The board shall hold regular meetings in January, March, May, July, September, and November of each year and special meetings at the call of the commissioner in such place as the commissioner may designate within the state of North Dakota. The members of the board, other than the commissioner, shall receive one hundred dollars per day while attending meetings, or in the performance of such special duties as the board may direct. Expense reimbursements for meals, lodging, and transportation must be at the same rate as those allowed state employees.
    2. The state credit union board consists of the commissioner and four members to be appointed by the governor. Two of the members of the state credit union board must have at least five years' experience as an officer, director, or committee member of a North Dakota state-chartered credit union, one member of the board must have had at least five years' experience as an officer, director, or committee member of a state-chartered or a federally chartered credit union, and one member of the board must be a laymember from the public at large. The term of office of appointed board members is five years. In case of a vacancy in the board, by death, resignation, or removal of an appointed member, the governor shall appoint an individual to fill the vacancy for the unexpired term. The commissioner chairs the board and the attorney general is, ex officio, the attorney for the board. The assistant commissioner shall serve as its secretary. The members of the state credit union board are entitled to receive the same remuneration as is provided for the members of the state banking board. The state credit union board shall hold meetings in March, June, September, and December of each year and special meetings at the call of the commissioner in such places as the commissioner may designate within the state.
    3. The word "board" when used in this title includes the state banking board and the state credit union board.

    6-01-04. Powers and duties of the state banking board and state credit union board 🗎 PDF 

    (Effective through June 30, 2029)
    1. The state banking board may adopt rules for the government of financial institutions and trust companies mentioned in section 6-01-01 to the extent the rules do not conflict with any law of this state or of the United States. The state banking board shall make and enforce such orders as are necessary or proper to protect the public and the depositors or creditors of those financial institutions and trust companies.
    2. The same powers are given to the state credit union board with reference to credit unions as are granted to the state banking board with reference to financial institutions and trust companies named in this chapter.
    3. The state banking board and state credit union board shall hold a joint meeting to consider any budget recommendations from the commissioner. Upon consideration of a budget recommendation, the boards shall approve an annual or biennial budget for the department of financial institutions, including the number of full-time equivalent positions. A majority of the members of each board must be present to constitute a quorum for the joint meeting, and approval by a majority of the members present of each board is required to approve an annual or biennial budget for the department of financial institutions.

    Powers and duties of the state banking board and state credit union board. (Effective after June 30, 2029) The state banking board may adopt rules for the government of financial institutions and trust companies mentioned in section 6-01-01 to the extent the rules do not conflict with any law of this state or of the United States. The state banking board shall make and enforce such orders as are necessary or proper to protect the public and the depositors or creditors of those financial institutions and trust companies. The same powers are given to the state credit union board with reference to credit unions as are granted to the state banking board with reference to financial institutions and trust companies named in this chapter.

    6-01-04.1. Removal of officers, directors, and employees of financial corporations or institutions 🗎 PDF 

    1. The department of financial institutions or the board may issue, upon any current or former officer, director, or employee of a financial corporation, financial institution, or credit union subject to its jurisdiction and upon a financial corporation, financial institution, or credit union involved, an order stating:
      1. That the current or former officer, director, or employee is engaging, or has engaged, in any of the following conduct:
        1. Violating any law, regulation, board order, or written agreement with the board.
        2. Engaging or participating in any unsafe or unsound practice.
        3. Performing any act of commission or omission or practice which is a breach of trust or a breach of fiduciary duty.
      2. The term of the suspension or removal from employment and participation within the conduct of the affairs of a financial corporation, financial institution, credit union, or any other entity licensed by the department of financial institutions.
    2. The order must contain a notice of opportunity for hearing pursuant to chapter 28-32. The date for the hearing must be set not less than thirty days after the date the complaint is served upon the current or former officer, director, or employee of a financial corporation, financial institution, credit union, or any other entity licensed by the department of financial institutions. The current or former officer, director, or employee may waive the thirty-day notice requirement.
    3. If no hearing is requested within twenty days of the date the order is served upon the current or former officer, director, or employee, the order is final. If a hearing is held and the board finds that the record so warrants, it may enter a final order. The final order suspending or removing the current or former officer, director, or employee is final.
    4. A contested or default suspension or removal order is effective immediately upon issuance on the current or former officer, director, or employee and upon a financial corporation, financial institution, or credit union. A consent order is effective as agreed.
    5. Any current or former officer, director, or employee suspended or removed from any position pursuant to this section is not eligible, while under suspension or removal, to be employed or otherwise participate in the affairs of any financial corporation, financial institution, or credit union or any other entity licensed by the department of financial institutions until the suspension or removal is terminated by the department of financial institutions or board.
    6. When any current or former officer, director, employee, or other person participating in the conduct of the affairs of a financial corporation, financial institution, or credit union is charged with a felony in state or federal court, involving dishonesty or breach of trust, the commissioner may immediately suspend the person from office or prohibit the person from any further participation in a financial corporation's, financial institution's, or credit union's affairs. The order is effective immediately upon issuance of the order on a financial corporation, financial institution, or credit union and the person charged, and remains in effect until the criminal charge is finally disposed of or until modified by the board. If a judgment of conviction, a federal pretrial diversion, conviction or agreement to plea to lesser charges, or similar state order or judgment is entered, the board or commissioner may order that the suspension or prohibition be made permanent. A finding of not guilty or other disposition of the charge does not preclude the commissioner or the board from pursuing administrative or civil remedies.
    7. The commissioner or board may issue upon a current or former officer, director, employee, or other person participating in the conduct of the affairs of a financial corporation, financial institution, or credit union an order permanently suspending and prohibiting the person from participation in a financial corporation's, financial institution's, or credit union's affairs if convicted of any charge involving dishonesty or breach of trust in state or federal court. The suspension or removal order is effective immediately upon issuance on the current or former officer, director, or employee and upon a financial corporation, financial institution, or credit union.

    6-01-04.2. Cease and desist orders 🗎 PDF 

    1. The department of financial institutions or the board may issue and serve upon a financial corporation, financial institution, or credit union subject to its jurisdiction a complaint stating the factual basis for the department's or board's belief that the financial corporation, financial institution, or credit union is engaging in any of the following conduct:
      1. An unsafe or unsound practice.
      2. A violation in the past or on a continuing basis of any law, regulation, order, or written agreement entered into with the board or department of financial institutions.
    2. The complaint must contain a notice of opportunity for hearing pursuant to chapter 28-32. The date for the hearing must be set not less than thirty days after the date the complaint is served upon the financial corporation, financial institution, or credit union. The financial corporation, financial institution, or credit union may waive the thirty-day notice requirement.
    3. If the financial corporation, financial institution, or credit union fails to respond to the complaint within twenty days of its service, or if a hearing is held and the board concludes that the record so warrants, the board may enter an order directing the financial corporation, financial institution, or credit union to cease and desist from engaging in the conduct which was the subject of the complaint and hearing and to take corrective action.
    4. The commissioner or the board may enter an emergency, temporary cease and desist order if the commissioner or the board finds the conduct described in the complaint is likely to cause insolvency, substantial dissipation of assets, earnings, or capital of the financial corporation, financial institution, or credit union, or substantial prejudice to the depositors, shareholders, members, or creditors of the financial corporation, financial institution, or credit union. An emergency, temporary cease and desist order is effective immediately upon service on the financial corporation, financial institution, or credit union and remains in effect for no longer than sixty days or until the conclusion of permanent cease and desist proceedings pursuant to this section, whichever is sooner. An emergency, temporary cease and desist order may be issued without an opportunity for hearing. A bank or credit union may request a hearing before the state banking board or state credit union board within ten days of the order to review the factual basis used to issue the emergency, temporary cease and desist order. The decision made by the board during this hearing will be final. If a hearing is not requested, the initial decision of the commissioner or board will be final.

    6-01-04.3. Assessment of civil money penalties 🗎 PDF 

    1. The commissioner or the board may assess a civil money penalty against a financial institution, financial corporation, or credit union, or an officer, director, employee, agent, or person participating in the conduct of the affairs of the financial corporation, financial institution, or credit union upon finding one or more of the following:
      1. Failure to comply with a permanent or temporary cease and desist order that has been voluntarily consented to or issued pursuant to section 6-01-04.2;
      2. Failure to comply with a final order that has been voluntarily consented to or issued following formal proceedings under chapter 28-32;
      3. Payment of dividends in violation of section 6-03-36;
      4. Loans and leases to one borrower or concern which exceed the limitations set forth in sections 6-03-59 and 6-03-59.1;
      5. Loans to directors, officers, and employees in violation of section 6-03-60;
      6. The intentional filing of inaccurate or misleading call reports required by section 6-03-70 or 6-06-08;
      7. Violations of loan limitations under subsection 1 of section 6-06-12 or title 12, chapter 7, Code of Federal Regulations, subchapter A, part 723, as amended February 5, 2019;
      8. Loans in violation of section 6-06-14.1; or
      9. Failure to file notice of change of control under section 6-08-08.1.
    2. The commissioner or the board commences administrative proceedings to assess civil money penalties by serving a complaint on the respondent stating the factual basis for the commissioner's or board's belief that a violation has occurred and the amount of civil penalties that the complaint seeks to impose. The complaint must contain a notice of an opportunity for an administrative hearing conducted under chapter 28-32. The date for the hearing must be set not less than thirty days after the date the complaint is served upon the respondent. If assessment of civil money penalties are proposed based on conditions described in subdivisions c through i of subsection 1, a complaint may not be filed unless the respondent has been provided with prior orders, examination reports, or other written communications, and has willfully refused to take corrective action that the respondent was capable of taking at the time.
    3. If the respondent fails to answer the complaint within twenty days of its service, the commissioner or board may enter an order imposing civil money penalties upon the respondent. If a hearing is held and the board concludes that the record so warrants, the board may enter an order imposing civil money penalties upon the respondent. The assessment order is effective and enforceable immediately upon service or upon a date specified in the order, and remains effective and enforceable until it is stayed, modified, terminated, or set aside by action of the board or a reviewing court.
    4. In determining the amount of civil penalty imposed, the commissioner or board shall consider whether good faith was exercised, and the gravity of the violation and any previous violations. The commissioner or board may not impose a civil money penalty in excess of one hundred thousand dollars for each occurrence and one thousand dollars per day for each day that the violation continues after service of an order. Any civil money penalties collected under this section must be paid to the department of financial institutions and deposited in the financial institutions regulatory fund.

    6-01-04.4. Prompt corrective action 🗎 PDF 

    The commissioner or board may enter an order if the commissioner or board finds that a state bank is undercapitalized, significantly undercapitalized, or critically undercapitalized. For the purpose of this section, undercapitalized, significantly undercapitalized, and critically undercapitalized have the same definition as found in title 12, Code of Federal Regulations, part 324, section 403, as amended April 15, 2016. The order may require an undercapitalized state bank to take prompt corrective action as the commissioner or board determines reasonable to bring the bank to an adequately capitalized condition, including the submission and implementation of an acceptable capital restoration plan. A bank may request a hearing before the state banking board within ten days of the order to review the factual basis used to issue the request for prompt corrective action. The decision made by the board during this hearing is final. If a hearing is not requested, the initial decision of the commissioner or board is final. For a significantly or critically undercapitalized state bank, the commissioner or board may issue a temporary cease and desist order appointing a receiver in accordance with chapter 6-07.2.

    6-01-04.5. Investigation of bank holding companies 🗎 PDF 

    The department may investigate a bank holding company that owns or controls a North Dakota state chartered financial institution upon the commissioner's receipt of information material to the safety and soundness of the bank holding company, and may pursue and impose penalties under sections 6-01-04.1, 6-01-04.2, and 6-01-04.3 against such a bank holding company.

    6-01-05. Taking of testimony and enforcement of orders 🗎 PDF 

    The state banking board, the state credit union board, the commissioner, and the deputy examiners each have the power to subpoena witnesses, administer oaths, and generally to do and perform any and all acts and things necessary to the complete performance of the powers and duties imposed upon them in this title, and to enforce the provisions of law relating to financial corporations, financial institutions, and credit unions. For the purpose of enabling them to perform all the duties imposed upon them, the provisions of section 27-10-23 are applicable to their proceedings. Any and all orders made by the issuing board or commissioner are operative immediately and remain in full force until modified, amended, or annulled by the issuing board, commissioner, or by a court of competent jurisdiction in an action commenced by the party against whom such order has been issued.

    6-01-06. Appointment of receivers 🗎 PDF 

    The state banking board and state credit union board, except as otherwise provided in this title, have authority and power to appoint, by their own order, receivers for insolvent financial institutions and credit unions under their regulatory supervision. Such receivers have the same power and authority, and their acts have the same validity, as if they had been appointed under and by the direction of a district court. Nothing herein contained may be construed so as to take away from the courts the power to appoint receivers of such financial institutions and credit unions at any stage of the proceedings and thus to terminate the receivership ordered by the board.

    6-01-07. Records of state banking board, state credit union board, and commissioner 🗎 PDF 

    The state banking board and state credit union board shall keep a full and complete record of all their proceedings and of all orders made by them. The records and the proceedings of the boards and commissioner are open in accordance with sections 44-04-18 and 44-04-19. All reports, except supervisory reports of examination, made by or filed with the board or the commissioner relating to any financial institution, must be open to inspection and examination by stockholders, shareholders, depositors, creditors, and sureties on any bonds of any such institution or on the bonds of any officer or employee thereof, subject, however, to the following restrictions:
    1. A stockholder, shareholder, depositor, creditor, or surety of any institution desiring to inspect the information specified above of any institution shall make a written request for the inspection.
    2. A written request must:
      1. Specify the information to which access is requested; and
      2. Give the reasons for the request.
    3. Upon written request, the commissioner, or any person designated in writing by the commissioner, may disclose information specified in subsection 1 of section 6-01-07.1 only upon determining and to the extent that good cause exists for the disclosure.
    4. Either prior to or at the time of any disclosure, the commissioner or designee shall impose such terms and conditions as the commissioner deems necessary to protect the confidential nature of the information, the financial integrity of the financial institution to which the information relates, and the legitimate privacy interests of any individual named in the information.

    6-01-07.1. Records - Confidential 🗎 PDF 

    1. All facts and information obtained or created by the commissioner or the department in the following ways are confidential, except as provided in subsections 2 through 8:
      1. In the course of examining financial institutions, credit unions, and other licensed entities under the supervision of the commissioner, or in the course of receiving audit reports, reports of examining committee and reports of annual meetings of stockholders and directors of such institutions and licensees. The reports of examination may be made available to the financial institution's or licensee's board of directors, or the board's specifically authorized agents or representatives, but the reports remain the property of the department.
      2. From the federal reserve system, federal deposit insurance corporation, federal home loan bank board, national credit union administration, or any state bank or credit union supervisors or supervisors of other licensed entities of other states.
      3. In the course of investigating an institution under the supervision of, or licensed by, the commissioner, until such investigation is complete.
      4. In the course of a special investigation being carried out at the request of the governor or any court.
        1. In the form or nature of an application for a charter, license, or permission which meets any of the following criteria:
          1. Trade secrets and commercial or financial information.
          2. Personnel and medical files and similar files the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.
          3. Information contained in the application form which is in the nature of examination report information.
        2. Determination of what required application information falls within each category must be made by the body before which the application is brought.
      6. In the form of a complaint or comment from the public regarding a financial institution, credit union, or other licensed entity under the supervision of the commissioner, unless the commissioner is providing aggregate, nonspecific information.
    2. When the commissioner is required or permitted by law to report upon or take special action regarding the affairs of any institution or licensed entity under the commissioner's supervision, the commissioner shall divulge only such information specified in subsection 1 as is necessary and sufficient for the action taken or to be taken.
    3. The commissioner may furnish information to the attorney general, other state agencies, any prosecuting officials requiring the information for use in pursuit of official duties, and legislative investigations under chapter 54-03.2, if the commissioner determines necessary or proper to the enforcement of federal laws or the laws of this state or in the best interest of the public. Information furnished by the commissioner to any third party which is confidential in the commissioner's possession remains confidential in the possession of the third party. Information received by the commissioner from any third party which is confidential in the third party's possession remains confidential in the commissioner's possession.
    4. The commissioner may furnish information and enter sharing agreements as to matters of mutual interest to an official or examiner of the federal reserve system, federal deposit insurance corporation, federal home loan bank board, national credit union administration, office of thrift supervision, comptroller of the currency, any other federal government agency, insurance commissioner, regulatory trade associations, any state bank or credit union supervisors or supervisors of other licensed entities of other states, or a nationwide multistate licensing system.
    5. Information regarding complaints or comments from the public may be provided to other regulatory agencies, to the individual in response to the complaint or comment, or to the subject financial institution, credit union, or other licensed entity under the supervision of the commissioner.
    6. The commissioner shall not be required to disclose the name of any debtor of any financial institution, credit union, or licensed entity reporting to or under the supervision of the commissioner or anything relative to the private accounts, ownership, or transactions of any such institution, or any fact obtained in the course of any examination thereof, except as herein provided. All disclosures must be limited to only those documents directly relevant to the inquiry at issue.
    7. This section does not limit the right of access of stockholders, shareholders, depositors, creditors, and sureties on bonds to specified department records as, and to the extent, provided by section 6-01-07.
    8. The standards for confidentiality and disclosure by the commissioner set forth in this section, except the standard of the exercise of discretion, which shall only be exercised by the commissioner, apply equally to the state banking board, the state credit union board, and all department employees.

    6-01-08. Appointment of commissioner - Qualifications 🗎 PDF 

    The commissioner must be appointed by the governor and confirmed by the senate, and shall hold office for a term of four years and until a successor has been appointed, confirmed by the senate, and has qualified, unless the commissioner is removed sooner as herein provided. If the senate is not in session, the governor may make an interim appointment, and the interim appointee shall hold office until the senate confirms or rejects the appointment. The commissioner's term of office commences on the first day of July in each year next following a national presidential election. The commissioner must be a skilled accountant, and may not be an incumbent of any other public office in the state, or in any county, municipality, or public institution thereof, and ma