# Title 40 — Municipal Government

## Chapter 40-05.1 — Home Rule in Cities

### § 40-05.1-00.1. Definitions.

In this chapter, unless the context or subject matter otherwise requires:
1. "City officers" means the elected and appointed officers of the city and includes the
governing body of the city and its members.
2. "Executive officer" means the chief officer in whom resides the power to execute the
laws of the city.
3. "Governing body" means the body which performs the legislative functions of the city.
### § 40-05.1-01. Enabling clause.

Any city may frame, adopt, amend, or repeal home rule charters as provided in this chapter.
### § 40-05.1-02. Methods of proposing home rule charter.

The governing body of any city may on its own motion cause a home rule charter to be
framed and submitted for adoption to the qualified electors of the city in the manner provided in
this chapter, or such proposal may be made in a petition filed with the governing body and
signed by not less than fifteen percent of the qualified electors of the city voting in the last city
election.
### § 40-05.1-03. Charter commission - Membership - Preparation and submission of

charter - Compensation and expenses - Publication or distribution.
Within sixty days after proceedings have been initiated for a home rule charter, the
governing body of the city shall appoint a charter commission, composed of at least five
members, to frame the charter, unless a petition proposing a charter pursuant to section
composition of the commission is to be determined. The chairman of the charter commission
shall be designated by the governing body and shall be a charter commission member.
Compensation and expenses of commission members shall be as determined by the governing
body. The governing body may furnish the charter commission with office space, clerical help,
legal and other assistance, and supplies, and may appropriate and pay for same out of its
general funds. The charter commission shall hold at least one public hearing on the proposed
charter, and may use other suitable means to disseminate information, receive suggestions and
comments, and encourage public discussion of the proposed charter. The commission shall
prepare and submit the charter within one year after appointment, unless the governing body
allows additional time for submission of the charter. The proposed charter shall then be
published once in the city's official newspaper as provided in section 40-01-09. However, cities
with a population of one thousand or less may, in lieu of publishing the charter in a newspaper,
distribute copies of the charter door-to-door and have them posted and available at prominent
locations in the city. In the event a city does not publish the charter in a newspaper, it must still
publish a notice of the election.
### § 40-05.1-04. Submission of charter to electors.

At least sixty days, but no more than two years, after submission of the charter to the
governing body of the city, the proposed charter must be submitted to a vote of the qualified
electors of the city at a regular or special city election, or at any statewide election that is held
within that time, or at a special city election held concurrently with any statewide election. If the
proposed charter has been submitted to a vote of the qualified electors of the city, the governing
body of the city may call a special election to resubmit the proposed charter to a vote of the
qualified electors of the city, and the special election must take place at least sixty days after the
call for the special election. The governing body may amend the proposed charter prior to its
resubmission to the electors.

### § 40-05.1-05. Ratification by majority vote - Supersession of existing charter and state

laws in conflict therewith - Exception - Filing of copies of new charter.
If a majority of the qualified voters voting on the charter at the election vote in favor of the
home rule charter, the charter is ratified and is the organic law of the city, and extends to all its
local and city matters, unless limited by law. The charter and the ordinances made pursuant to
the charter in such matters, except for matters pertaining to city elections, supersede within the
territorial limits and other jurisdiction of the city any law of the state in conflict with the charter
and ordinances and must be liberally construed for such purposes. Except as provided under
subsection 9 of section 40-05.1-06, any ordinance enacted or adopted by a city pertaining to city
elections under a home rule charter in conflict with state law is void. One copy of the charter
ratified and approved must be filed with the secretary of state and one with the auditor of the city
to remain as a part of its permanent records. The courts shall take judicial notice of the new
charter upon its filing.
### § 40-05.1-05.1. Multicity home rule.

1. Two or more cities may draft and submit for adoption a multicity home rule charter to
the electors of each city pursuant to this section. The other provisions of this chapter
apply to a multicity home rule charter, except as otherwise provided by this section.
2. The process for drafting and submitting a multicity home rule charter may be initiated
by:
a. Separate motions by the governing bodies of the participating cities;
b. The execution of a joint powers agreement between participating cities; or
c. A petition filed with each governing body of two or more cities and signed by ten
percent or more of the total number of qualified electors of each city voting for
governor at the most recent gubernatorial election.
3. Within sixty days after proceedings are initiated for a multicity home rule charter, the
boards of governing bodies shall enter into a joint powers agreement specifying the
procedure for framing the charter, which may include the establishment of a single
cooperative charter commission with membership representing each city. As an
alternative, the governing bodies in each affected city may establish a separate charter
commission pursuant to section 40-05.1-03 to frame the charter in cooperative study
with the charter commission of any other affected city. The charter commissions must
submit a single joint report and proposed charter.
4. The charter commission, during its deliberation, may hold public hearings and
community forums and use other suitable means to disseminate information, receive
suggestions and comments, and encourage public discussion on the subject of the
proposed multicity home rule charter, and may report periodically to the affected
governing bodies on their progress. In preparing the charter, the charter commission
may:
a. Include any of the available powers enumerated in section 40-05.1-06;
b. Provide for adjustment of existing bonded indebtedness and other obligations in a
manner which will provide for a fair and equitable burden of taxation for debt
service;
c. Provide for the transfer or other disposition of property and other rights, claims,
assets, and franchises of the cities;
d. Provide for the reorganization, abolition, or adjustment of boundaries of any
existing boards, commissions, agencies, and special districts of the city
governments, including city park districts;
e. Include provisions for transition in implementing the charter, including elements
that consider the reasonable expectations of current officeholders or personnel
such as delayed effective dates for implementation at the end of a current term or
a future term, upon the occurrence of a vacancy, or on a date certain;
f. Include provision for the limited application or temporary implementation of the
charter, including provisions that permit implementation on an experimental or
pilot basis such as the expiration of the charter on a date certain in the future,

required reapproval of the charter by the electors at a future date, or a phased-in
implementation of various aspects of the charter; and
g. Include other provisions that the charter commission elects to include and which
are consistent with state law.
5. The proposed charter or accurate summary of the charter must be published in the
official newspaper of each affected city, at the expense of each city, at least once
during two different weeks within the thirty-day period immediately preceding the date
of election. However, a city with a population of one thousand or less may, instead of
publishing the charter in a newspaper, distribute copies of the charter door-to-door and
have them posted and available at prominent locations in the city.
6. If a majority of the qualified electors voting in each city on the charter vote in favor of
the multicity home rule charter, it is ratified and becomes the organic law of the cities
on the first day of January following the election or other effective date specified in the
charter.
7. The amendment or repeal of a multicity home rule charter may proceed pursuant to
the amendment and repeal provisions of section 40-05.1-07 on a multicity basis. A
majority vote of the qualified electors voting in each city in the election is required to
adopt any amendment of a multicity charter. A majority vote of the qualified electors of
only one or more participating cities is required to repeal a multicity charter.
### § 40-05.1-06. Powers.

From and after the filing with the secretary of state of a charter framed and approved in
reasonable conformity with the provisions of this chapter, such city, and the citizens thereof,
shall, if included in the charter and implemented through ordinances, have the following powers
set out in this chapter:
1. To acquire, hold, operate, and dispose of property within or without the corporate
limits, and, subject to chapter 32-15, exercise the right of eminent domain for such
purposes.
2. To control its finances and fiscal affairs; to appropriate money for its purposes, and
make payment of its debts and expenses; to contract debts, borrow money, issue
bonds, warrants, and other evidences of indebtedness; to establish charges for any
city or other services; and to establish debt limitations.
3. To levy and collect property taxes and special assessments for benefits conferred, for
its public and proprietary functions, activities, operations, undertakings, and
improvements, and establish mill levy limitations. Notwithstanding any authority
granted under this chapter, all property must be assessed in a uniform manner as
prescribed by the state board of equalization and the state supervisor of assessments
and all taxable property must be taxed by the city at the same rate unless otherwise
provided by law.
4. To levy and collect an infrastructure fee. The fee must replace a general special
assessment on all property for payment of infrastructure maintenance costs through a
utility bill issued by a municipality. The money collected under this subsection may not
be used for any purpose other than infrastructure maintenance costs. If a home rule
city levies an infrastructure fee, the home rule city also may levy and collect green field
special assessments. As used in this subsection:
a. "General special assessments" means special assessments levied for the
purpose of maintaining existing roads and infrastructure and special assessments
levied for the construction or repair of arterial roads and infrastructure that
provide a benefit to the entire community.
b. "Green field special assessments" means special assessments levied for
infrastructure costs associated with the development of agricultural or
undeveloped property.
5. To levy and collect excises, fees, charges, franchise and license taxes, sales and use
taxes, farm machinery gross receipts taxes, alcoholic beverage gross receipts taxes, a
city lodging tax, and a city restaurant tax. For purposes of this section, any taxes
imposed under this section on farm machinery, farm irrigation equipment, and farm

machinery repair parts used exclusively for agricultural purposes, or on alcoholic
beverages, which were in effect on December 31, 2005, become gross receipts taxes
after December 31, 2005. After December 31, 2005, any portion of a charter or any
portion of an ordinance passed pursuant to a charter which does not conform to the
requirements of this section is invalid to the extent it does not conform. The invalidity of
a portion of a charter or ordinance because it does not conform with this subsection
does not affect the validity of any other portion of the charter or ordinance of the
eligibility for a refund under section 57-01-02.1. Ordinances enacted after August 1,
2017, may not allow for the collection and levy of any tax not otherwise specified under
this section. Sales and use taxes and gross receipts taxes levied under this section:
a. Must conform in all respects with regard to the taxable or exempt status of items
under chapters 57-39.2, 57-39.5, 57-39.6, and 57-40.2 and may not be imposed
at multiple rates with the exception of sales of manufactured homes or mobile
homes.
b. May not be newly imposed or changed except to be effective on the first day of a
calendar quarterly period after a minimum of ninety days' notice to the
tax commissioner or, for purchases from printed catalogs, on the first day of a
calendar quarter after a minimum of one hundred twenty days' notice to the seller.
c. May not be limited to apply to less than the full value of the transaction or item as
determined for state sales and use tax purposes, except for farm machinery
gross receipts tax.
d. Must be subject to collection by the tax commissioner under an agreement under
section 57-01-02.1, with the exception of a city lodging or city restaurant tax, and
must be administered by the tax commissioner in accordance with the relevant
provisions of chapter 57-39.2, including reporting and paying requirements,
correction of errors, payment of refunds, and application of penalty and interest.
6. To fix the fees, number, terms, conditions, duration, and manner of issuing and
revoking licenses in the exercise of its governmental police powers.
7. To provide for city officers, agencies, and employees, their selection, terms, powers,
duties, qualifications, and compensation. To provide for change, selection, or creation
of its form and structure of government, including its governing body, executive officer,
and city officers.
8. To provide for city courts, their jurisdiction and powers over ordinance violations,
duties, administration, and the selection, qualifications, and compensation of their
officers; however, the right of appeal from judgment of such courts shall not be in any
way affected.
9. Notwithstanding section 40-21-07, to provide for all matters pertaining to signature
thresholds for nominating petitions for candidates for city offices and the limitations
provided under section 16.1-01-06.1.
10. To provide for the adoption, amendment, and repeal of ordinances, resolutions, and
regulations to carry out its governmental and proprietary powers and to provide for
public health, safety, morals, and welfare, and penalties for a violation thereof.
11. To lay out or vacate streets, alleys, and public grounds, and to provide for the use,
operation, and regulation thereof.
12. To define offenses against private persons and property and the public health, safety,
morals, and welfare, and provide penalties for violations thereof. This subsection is
subject to the provisions of section 62.1-01-03.
13. To engage in any utility, business, or enterprise permitted by the constitution or not
prohibited by statute or to grant and regulate franchises therefor to a private person,
firm, corporation, or limited liability company.
14. To provide for zoning, planning, and subdivision of public or private property within the
city limits. To provide for such zoning, planning, and subdivision of public or private
property outside the city limits as may be permitted by state law. This subsection is
subject to the provisions of section 62.1-01-03.
15. To exercise in the conduct of its affairs all powers usually exercised by a corporation.

16. To fix the boundary limits of said city and the annexation and deannexation of territory
adjacent to said city except that such power shall be subject to, and shall conform with
the state law made and provided.
17. To contract with and receive grants from any other governmental entity or agency, with
respect to any local, state, or federal program, project, or works.
It is the intention of this chapter to grant and confirm to the people of all cities coming within
its provisions the full right of self-government in both local and city matters within the powers
enumerated herein. The statutes of the state of North Dakota, so far as applicable, shall
continue to apply to home rule cities, except insofar as superseded by the charters of such cities
or by ordinance passed pursuant to such charters.
### § 40-05.1-06.1. Sales tax revenue transfer to school districts prohibited.

Notwithstanding the provisions of chapters 54-40 and 54-40.3 or any other provision of law,
revenue from sales, use, or other excise taxes levied under this chapter may not be transferred
to or for the primary benefit of a school district except for payment of bonded indebtedness
incurred before April 19, 2007, or for capital construction and associated costs approved by the
electors of the city before April 19, 2007.
### § 40-05.1-07. Amendment or repeal.

Except as provided in section 40-05.1-07.1, the home rule charter adopted by any city may
be amended or repealed by proposals submitted to and ratified by the qualified electors of the
city in the same general manner provided in sections 40-05.1-02 and 40-05.1-04 for the
adoption of the charter. Amendments may be proposed by the governing body of the city or by
petition of the number of electors provided in section 40-05.1-02 and submitted to the voters at
the same election. The voters may at their option accept or reject any or all of the amendments
by a majority vote of qualified electors voting on the question at the election. A proposal to
repeal a home rule charter that has been adopted must likewise be submitted to the electors of
the city as set forth in this section. One copy of a ratified amendment or a repeal of a home rule
charter must be filed with the secretary of state and one with the city auditor. Upon proper filing
of the amendment or repeal, the courts shall take judicial notice of the amendment or repeal.
### § 40-05.1-07.1. Conformance with statute or court order - Amendment.

1. When a portion of a home rule charter is preempted, superseded, or invalidated by a
legislative act or a court order, the city may amend portions of the home rule charter by
a resolution adopted by the governing body of the city. The resolution must reference
the authority supporting the amendment.
2. A resolution passed under subsection 1 is effective after adoption by the governing
body of the city. A petition, approval, or vote by the electors of the city is not required to
amend a city's home rule charter under this section. Within thirty days after adoption of
the resolution, the city shall publish the resolution once in the official newspaper of the
city or on the website of the city.
3. An amendment to a charter of a home rule city intended to add any power enumerated
in section 40-05.1-06, which was not included in the city's original home rule charter,
may not be amended under this section and must be amended under section
### § 40-05.1-07. The city auditor shall file a copy of an amendment to a charter of a home

rule city with the secretary of state.
### § 40-05.1-08. Commission - Terms of office - Vacancies.

The terms of office of the members of the charter commission shall be four years. Any
vacancy on said commission shall be filled by the governing body of the city.
### § 40-05.1-09. Restriction on proposals to amend or repeal.

Repealed by S.L. 1993, ch. 401, § 53.

### § 40-05.1-10. Manner of calling and holding elections.

The elections provided for in this chapter shall be called and held in the same manner as is
provided for the calling and holding of city elections except that all qualified voters of the city
shall be eligible to vote at such elections. The form of ballot shall be prescribed by the charter
commission so that the voter may signify whether the voter is for or against the proposed home
rule charter or the amendment or repeal, as the case may be.
### § 40-05.1-11. Effect of amendment or repeal on salary or term of office.

Repeal of a home rule charter shall cause the city affected by such repeal to revert to the
form of government of such city immediately preceding adoption of the home rule charter and
when positions to which officials were elected under the home rule charter are substantially the
same as positions under the form of government to which the city reverts upon repeal, such
elected officials shall continue to exercise the authority of such position for the salary prescribed
by the home rule charter until expiration of their terms of office as prescribed by the home rule
charter. No amendment of a home rule charter shall shorten the term for which any official was
elected or reduce the salary of the official's office for that term.
### § 40-05.1-12. Former powers preserved.

All powers heretofore granted any city by general law are hereby preserved to each home
rule city, respectively, and the powers so conferred upon said cities by general law, are hereby
granted to home rule cities.
### § 40-05.1-13. Vested property - Claims for relief - Actions saved.

The adoption of any charter hereunder or any amendment thereof shall never be construed
to destroy any property, action, claims for relief, claims, and demands of any nature or kind
whatever vested in the city under and by virtue of any charter theretofore existing or otherwise
accruing to the city, but all such claims for relief, claims, or demands vest in and inure to the city
and to any persons asserting any such claims against the city as fully and completely as though
the said charter or amendment had not been adopted hereunder. The adoption of any charter or
amendment hereunder shall never be construed to affect the right of the city to collect by special
assessment any special assessment theretofore levied under any law or charter for the purpose
of public improvements, nor affect any right of any contract or obligation existing between the
city and any person, firm, corporation, or limited liability company for the making of any such
improvements and for the purpose of collecting any such special assessments and carrying out
of any such contract.
