All Roll Calls
Yes: 133 • No: 2
North DakotaHB 10262025 Regular SessionHouseWALLET
AN ACT to amend and reenact sections 23-24-07, 26.1-01-03, 26.1-21-01, 26.1-21-02, 26.1-21-04, 26.1-21-07, 26.1-21-09.1, 26.1-21-10, 26.1-21-11, 26.1-21-12, 26.1-21-14, 26.1-21-16, 26.1-21-18, 26.1-21-19, 26.1-21-21, 26.1-21-23, 61-06-08, and 61-16.1-05 of the North Dakota Century Code, relating to changing the administration of the state bonding fund from the insurance commissioner to the office of management and budget; to repeal sections 26.1-21-03, 26.1-21-08, 26.1-21-09, 26.1-21-13, 26.1-21-15, 26.1-21-17, 26.1-21-20, 26.1-21-22, and 26.1-21-24 of the North Dakota Century Code, relating to the administration of the state bonding fund; and to provide a continuing appropriation.
Sponsored By: Legislative Management
Became Law
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 1 benefits, 0 costs, 5 mixed.
OMB now runs the bonding fund
The Office of Management and Budget now manages the state bonding fund. The office can hire an outside administrator on two‑year contracts that end June 30 of odd years, with nonrenewal notice due by September 30 of even years. Money in the fund is continuously available to pay claims, admin contracts, auditor investigation costs, and reinsurance. The attorney general serves as legal counsel for fund cases. The office must include fund revenues, spending, and balance in its biennial report. The law defines “fund” and “office” for clarity, allows reinsurance above $25,000 per official or group at fund expense, and repeals older sections that governed prior administration.
Rules for public employee bond coverage
The office can cancel coverage for an employee or official after an investigation, with 30 days’ written notice. The office must immediately notify the employer by certified mail. If coverage is canceled, the person may buy a private bond at their own expense and must file proof with the office. The office sets coverage based on money or property handled; the minimum is the amount handled or $10,000, whichever is less. The legislative council sets coverage for legislative agencies, and the supreme court sets coverage for judicial agencies.
License agents’ $10 bond fee
Agents who sell hunting and fishing licenses pay a $10 yearly bond assessment. Each agent has at least $15,000 in coverage. The office can reduce or waive the fee if the fund has enough money. Payments go to the state bonding fund and are deposited with the state treasurer.
Claims and investigations for bond losses
Injured parties must file claims within 60 days after discovering a loss. The office reviews claims and pays only after the attorney general approves. You cannot sue the fund until you present a claim; you must sue within one year of presenting the claim. The fund covers only breaches within two years before the claim date. To recover from the fund in court, you must join the fund as a co‑defendant and get a judgment against the official. If the office sees misconduct that risks the fund, it must notify the state auditor to investigate; the fund may pay reasonable investigation costs. The office may seek an accounting and ask the governor to investigate possible removal of a defaulting official.
How local governments get bonded
State agencies and political subdivisions must apply for bonding at least once every two years, or when they request a coverage change. If an application is not denied within 60 days, it is approved. District officers and employees are deemed bonded once the district notifies the fund of the appointment, and the district must remit the stated premium. Water resource district treasurers must carry a bond set by the board, with at least $1,000 coverage, and must pay any assessed amount when notified.
When agencies pay bonding assessments
Agencies and local governments pay a minimum assessment of $2.50 per covered employee each year, in advance. The office collects assessments when the fund balance is under $3,000,000. When the balance is above $3,000,000, assessments are waived until it drops below $2,000,000.
Sponsors & Cosponsors
Sponsor
Legislative Management
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 4/8/2025
Second reading, passed, yeas 44 nays 2
Yes: 44 • No: 2
House vote • 1/31/2025
Second reading, passed, yeas 89 nays 0
Yes: 89 • No: 0
Actions Timeline
Filed with Secretary Of State 04/16
4/21/2025HouseSigned by Governor 04/16
4/18/2025HouseSent to Governor
4/15/2025HouseSigned by Speaker
4/15/2025HouseSigned by President
4/14/2025SenateReturned to House
4/9/2025HouseSecond reading, passed, yeas 44 nays 2
4/8/2025SenateReported back, do pass, place on calendar 5 0 0
4/2/2025SenateCommittee Hearing 09:30
3/31/2025SenateRereferred to Industry and Business
2/21/2025SenateRequest return from committee
2/21/2025SenateRereferred to Industry and Business
2/14/2025SenateRequest return from committee
2/14/2025SenateIntroduced, first reading, referred State and Local Government Committee
2/5/2025SenateReceived from House
2/3/2025SenateSecond reading, passed, yeas 89 nays 0
1/31/2025HouseReported back, do pass, place on calendar 12 0 2
1/29/2025HouseCommittee Hearing 09:00
1/14/2025HouseIntroduced, first reading, referred Industry, Business and Labor Committee
1/7/2025House
Bill Text
Enrollment
INTRODUCED
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