All Roll Calls
Yes: 133 • No: 2
North DakotaHB 10262025 Regular SessionHouse
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
Signed by Governor
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 2 benefits, 0 costs, 4 mixed.
State Can Investigate Threatened Bond Funds
The Office of Management and Budget must notify the state auditor when an official’s misconduct or inefficiency threatens the fund. The auditor may investigate, hire investigators, and review blanket-bond coverage during audits. The fund pays investigation costs. The office may also sue the official to require full disclosure of the public entity’s business.
State Bond Fund Gets New Management
North Dakota’s Office of Management and Budget now manages the State Bonding Fund instead of the insurance commissioner. Fund money remains available on an ongoing basis for claims, administrative contracts, auditor investigations, and reinsurance. The office may hire the North Dakota Insurance Reserve Fund or another entity to handle services. Contracts last two years and end June 30 in odd-numbered years. A party expecting not to renew must give notice by September 30 in an even-numbered year during the contract.
Bond Claimants Gain Time, Keep Limits
Claimants no longer face the former 60-day deadline after discovering an official’s or employee’s default or wrongful act. Claims go to the Office of Management and Budget, which sets the allowed amount and may await an auditor’s report. The attorney general must approve the claim and amount before payment. A lawsuit requires presenting the claim and receiving a denial, and must start within one year after presentation. The fund covers only breaches of bond conditions occurring within the two years before the claim was presented.
Public Workers Face Bond Cancellation Rules
After an investigation, the Office of Management and Budget may cancel a public employee’s or official’s bond coverage. Cancellation takes effect 30 days after written notice, and the employer must receive immediate notice by certified mail. Employees and officials may buy a private bond after cancellation or instead of fund coverage. The bond must come from an authorized surety company, with coverage amounts set by the office. Public money cannot pay for this private bond, and this provision does not require anyone to buy one.
Public Agencies Get Bond Coverage Options
Minimum fund coverage equals the money or property handled or $10,000, whichever is less, unless another law requires otherwise. The Office of Management and Budget sets coverage based on assets handled and the risk of misuse. The office may buy reinsurance for liability above $25,000 for one official or a group under a blanket bond. The fund pays reinsurance costs, which cannot exceed the assessment set under the law. Public agencies may also buy optional extra coverage from authorized surety companies at their own expense.
Public Agencies Pay Reserve-Based Bond Assessments
State agencies and local governments pay State Bonding Fund assessments in advance unless payments are waived. The minimum assessment is $2.50 per public employee each year. Assessments are collected when the fund balance is below $3 million. Above $3 million, assessments are waived and stay waived until the balance falls below $2 million. These charges fall on public entities, not directly on households.
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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