All Roll Calls
Yes: 212 • No: 15
North DakotaHB 10272025 Regular SessionHouseWALLET
AN ACT to amend and reenact sections 26.1-01-03, 26.1-22-01, 26.1-22-02, 26.1-22-02.1, 26.1-22-03.1, 26.1-22-09, 26.1-22-10, 26.1-22-11, 26.1-22-14, 26.1-22-16, 26.1-22-17, 26.1-22-21, and 26.1-22-22, subdivisions a and c of subsection 1 of section 26.1-23.1-01, and section 37-03-13 of the North Dakota Century Code, relating to changing the administration of the state fire and tornado fund from the insurance commissioner to the office of management and budget; to repeal sections 26.1-22-03, 26.1-22-05, 26.1-22-06, 26.1-22-06.1, 26.1-22-08, 26.1-22-10.1, 26.1-22-13, 26.1-22-15, 26.1-22-18, 26.1-22-19, and 26.1-22-21.1 of the North Dakota Century Code, relating to the administration of the state fire and tornado fund; to provide for a legislative management study; and to provide a continuing appropriation.
Sponsored By: Legislative Management
Became Law
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 0 benefits, 1 costs, 5 mixed.
New assessments and payment rules for state fund
When the fund’s reserve is under $12,000,000, the office charges an assessment on all policies to restore it. Assessments use coinsurance and indirect‑loss rates, are rounded up, and are usually capped at 60% of ISO rates unless the reserve is below $3,000,000. If a disaster drops the fund below $2,000,000, the office can issue bonds or borrow for up to 20 years, repaid by assessments on all policies. The office must buy excess loss reinsurance; its cost and any producer commissions are paid from premium‑assessment income and charged to benefiting policyholders. Assessments are due within 60 days; unpaid bills may be collected by the attorney general and county state’s attorney, and judgments earn 6% interest each year.
Fix hazards or risk losing coverage
If the office finds a risk unreasonably hazardous, the owner must make improvements within six months. If not, the office can cancel coverage at renewal with 30 days’ notice; the Industrial Commission must approve if it has custody of the property. After cancellation, the owner may buy private insurance and charge the premium to the owner’s budget. During building alterations, the office may waive the fund’s right to recover damage costs from the contractor for work‑related damage.
Coverage and value rules for public buildings
The office insures listed perils and other direct losses, but not above the agreed or arbitrated insurable value. State buildings built after 1939 are insured at replacement cost unless the office approves another value. On request, insureds can add indirect‑loss coverage; the office sets limits in its underwriting rules. Agencies, political subdivisions, and winter shows must report values in odd‑numbered years; state agencies need a full replacement‑cost appraisal at least every six years and must update values annually. If an appraisal causes a premium increase that current budgets cannot cover, the amount becomes an earned receivable and the agency must seek funding next session. If the office and the custodian cannot agree on value or loss, a binding appraisal/arbitration process decides; each side pays its own arbitrator and splits the third. Township and school district property outside city limits needs written approval to be covered.
How military sites get insured
After consulting the office, the adjutant general insures some military department buildings and contents with the state fund when it is in the state’s best interest. The adjutant general may not insure property the United States will replace.
OMB now manages the state property fund
The Office of Management and Budget now runs the State Fire and Tornado Fund. Money in the fund is always available to pay claims, reinsurance, inspections, and service contracts. The office may hire administrators on two‑year contracts that end June 30 of odd‑numbered years, with nonrenewal notice due by September 30 of the even‑numbered year. The act repeals older sections tied to the former administration.
Rules for local coverage and a study
Local government self‑insurance pools cannot sell the same property coverages the state fund offered on December 31, 1988, unless they contract with the office to provide fund services. During the 2025–26 interim, lawmakers study whether to remove political subdivisions from the state fund, needed law changes, and premium impacts, and report to the seventieth legislative assembly.
Sponsors & Cosponsors
Sponsor
Legislative Management
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 4/15/2025
Second reading, passed, yeas 84 nays 6
Yes: 84 • No: 6
Senate vote • 4/4/2025
Second reading, passed as amended, yeas 41 nays 4
Yes: 41 • No: 4
House vote • 2/3/2025
Second reading, passed, yeas 87 nays 5
Yes: 87 • No: 5
Actions Timeline
Filed with Secretary Of State 04/22
4/24/2025HouseSigned by Governor 04/21
4/23/2025HouseSent to Governor
4/21/2025HouseSigned by Speaker
4/21/2025HouseSigned by President
4/17/2025SenateSecond reading, passed, yeas 84 nays 6
4/15/2025HouseConcurred
4/15/2025HouseReturned to House (12)
4/7/2025HouseSecond reading, passed as amended, yeas 41 nays 4
4/4/2025SenateAmendment adopted, placed on calendar
4/4/2025SenateReported back amended, do pass, amendment placed on calendar 4 1 0
4/3/2025SenateCommittee Hearing 10:00
2/18/2025SenateIntroduced, first reading, referred Industry and Business Committee
2/5/2025SenateReceived from House
2/4/2025SenateSecond reading, passed, yeas 87 nays 5
2/3/2025HouseAmendment adopted, placed on calendar
1/30/2025HouseReported back amended, do pass, amendment placed on calendar 10 3 1
1/29/2025HouseCommittee Hearing 02:00
1/13/2025HouseIntroduced, first reading, referred Industry, Business and Labor Committee
1/7/2025House
Bill Text
Adopted by the House Industry, Business and Labor Committee
Adopted by the Senate Industry and Business Committee
Enrollment
FIRST ENGROSSMENT
FIRST ENGROSSMENT with Senate Amendments
INTRODUCED
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