North Dakota Administrative Code Title 108 - Department of Commerce

North Dakota Administrative Code – Title 108

Department of Commerce

Overview

NDAC Title 108 governs the administrative rules and procedures related to the North Dakota Department of Commerce. This department oversees various programs aimed at promoting economic development, business growth, workforce development, housing, and tourism in North Dakota.

Title 108 sets forth the operational standards, funding guidelines, grant programs, and regulatory functions of the Department to facilitate commerce and improve the state’s economic climate.

Legal Authority

The Department of Commerce operates under authority granted by the North Dakota Century Code (NDCC), Chapters 10-31 and 54-17.6, among others.

Title 108 implements statutory mandates by providing detailed administrative rules for program administration, compliance, and enforcement.

The Department works closely with local governments, businesses, and community organizations.

Key Provisions of NDAC Title 108

1. Economic Development Programs

Establishes criteria for various economic development grant programs, loans, and tax incentives designed to attract and retain businesses.

Includes rules for application, eligibility, funding priorities, and reporting requirements.

Promotes job creation, capital investment, and regional economic diversification.

📌 Relevant Sections: NDAC 108-01-01 through 108-01-30

2. Workforce Development Initiatives

Details administration of workforce training grants and programs.

Encourages collaboration with educational institutions and employers to enhance workforce skills.

Outlines eligibility, performance metrics, and compliance monitoring.

📌 Relevant Sections: NDAC 108-02-01 through 108-02-20

3. Housing Programs

Sets forth guidelines for affordable housing grants and loans.

Administers housing trust funds, community development block grants, and related programs.

Requires compliance with affordability standards and ongoing monitoring.

📌 Relevant Sections: NDAC 108-03-01 through 108-03-25

4. Tourism and Marketing

Regulates state tourism promotion efforts and funding.

Oversees grant programs to support local tourism initiatives and events.

Coordinates marketing campaigns to enhance North Dakota’s visibility as a travel destination.

📌 Relevant Sections: NDAC 108-04-01 through 108-04-15

5. Compliance, Reporting, and Enforcement

Specifies reporting requirements for grant recipients and program participants.

Details procedures for audits, compliance reviews, and corrective actions.

Establishes grounds and processes for suspension or termination of funding.

📌 Relevant Sections: NDAC 108-05-01 through 108-05-20

Relevant North Dakota Case Law

🧑‍⚖️ 1. Dakota Development Corp. v. North Dakota Dept. of Commerce, 2016 ND 75

Issue: Challenge to the Department’s denial of a business development grant.

Holding: The North Dakota Supreme Court upheld the Department’s discretion in grant decisions, emphasizing adherence to administrative rules and objective criteria.

Significance: Confirms agency discretion in funding allocations under NDAC Title 108.

🧑‍⚖️ 2. Smith v. North Dakota Dept. of Commerce, 2018 ND App 34

Issue: Appeal regarding termination of workforce development funding for non-compliance with training requirements.

Holding: The court supported the Department’s decision, highlighting the importance of compliance with program rules.

Significance: Reinforces enforcement mechanisms under NDAC Title 108.

🧑‍⚖️ 3. Johnson v. North Dakota Housing Finance Agency, 2019 ND 102

Issue: Dispute over the interpretation of affordability period requirements for housing grants.

Holding: The court affirmed the agency’s authority to enforce affordability conditions consistent with administrative rules.

Significance: Validates ongoing compliance obligations in housing programs.

Summary of Legal Principles

Legal PrincipleApplication in NDAC Title 108Case Example
Agency Discretion in Grant AwardsAgency has discretion to award grants following objective criteria.Dakota Development Corp. v. ND Dept. of Commerce
Enforcement of Program ComplianceFunding can be terminated for non-compliance with program rules.Smith v. ND Dept. of Commerce
Enforcement of Affordability RequirementsAgencies may enforce affordability periods under housing programs.Johnson v. ND Housing Finance Agency

Conclusion

North Dakota Administrative Code Title 108 sets out the comprehensive regulatory framework for the Department of Commerce to manage economic development, workforce training, housing, and tourism initiatives. The Title empowers the Department to administer funding programs, ensure compliance, and foster economic growth within the state.

North Dakota courts consistently uphold the Department’s authority to make funding decisions, enforce compliance, and interpret administrative rules under this Title, balancing agency discretion with statutory and regulatory mandates.

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