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
Signed by Governor
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Bill Overview
Analyzed Economic Effects
10 provisions identified: 0 benefits, 3 costs, 7 mixed.
Local governments repay unlawful action defenses
A local government must repay its self-insurance pool's legal fees, expenses, and costs for defending an action. This applies only when a court finds its governing body intentionally violated state law through official action. The court must make that finding by clear and convincing evidence.
Public insurers charge fund refill assessments
When the fund falls below $12 million, OMB must assess active policies to restore that balance. Assessments generally cannot exceed 60% of Insurance Services Office rates, but that cap disappears below $3 million. Fractional assessment percentages round up. Insured agencies, local governments, and winter shows must pay within 60 days after OMB certifies the amount. At OMB's request, the attorney general and relevant county state's attorney must sue over overdue assessments; judgments include 6% yearly interest.
Public property claims face stricter duties
Insured entities must immediately report damage to OMB, providing property details, insurance amounts, likely loss, and likely cause. Unless their policy allows otherwise, they must leave property undisturbed until OMB adjusts the loss or confirms it has needed information. OMB can require an unreasonably hazardous risk to be fixed or removed. If the hazard remains after six months' notice, OMB can cancel coverage at renewal with 30 days' notice. Canceling coverage on property in the Industrial Commission's custody requires its approval; coverage disputes go to arbitration.
Contractors can receive damage recovery waivers
OMB can waive the fund's right to recover fire or explosion losses caused by contractors, their employees, or agents. The damage must occur during contracted work that alters or adds to a fund-insured building. A waiver is OMB's choice, not automatic. It reduces contractors' exposure to recovery claims but gives up the fund's right to recover those costs.
Disaster borrowing carries public policyholder costs
If one or more disasters push the fund below $2 million, OMB can borrow to restore it to $2 million. Industrial Commission approval is required for anticipation bonds or a Bank of North Dakota loan. Repayment can last no more than 20 years and must come from assessments on all active policies. The law also ends the former premium anticipation certificate option for restoring disaster-depleted reserves to $2 million. It removes the related certificate repayment assessments and state departments' authority to invest in those certificates.
New management for public property insurance
The Office of Management and Budget (OMB) replaces the Insurance Commissioner as manager of the State Fire and Tornado Fund. A dedicated treasury fund has ongoing spending authority for covered claims, loss reviews, administration, inspections, and reinsurance. OMB can hire administrators, delegate work, and use licensed producers; benefiting policyholders pay contract costs and producer commissions. Administrative contracts last two years, ending June 30 of odd-numbered years. Renewal notice is due September 30 of even-numbered years during the contract term.
Public buildings face replacement value rules
Insured state buildings built after 1939, including fixtures and permanent contents, require replacement-cost coverage unless OMB approves another value. OMB sets valuation and underwriting guidelines, may allow blanket coverage, and resolves value disputes through arbitration. Agencies must obtain replacement-cost appraisals every six years and report insured values every odd-numbered year; annual adjustments count as replacement value. If appraisal-driven premium increases exceed available appropriations, the unpaid amount remains owed to the fund. The agency must seek a deficiency or general appropriation in the next legislative session to pay it.
Public entities get limited insurance choices
Authorized private insurers can cover state mill and elevator buildings and contents, local-government public buildings, and public libraries' vandalism damage. Private coverage can replace or supplement fund insurance, and is also allowed after fund cancellation under the law. Otherwise, agencies, local governments, and winter shows cannot pay, contract, or incur debt for covered property insurance outside this chapter. Government self-insurance pools can offer the specified property coverage only through a service contract with OMB. Legislative Management must study removing local governments from the fund during the 2025–26 interim, including premium effects, and report to the 70th Legislative Assembly.
Public policyholders pay for disaster backup
OMB must buy and maintain excess-loss reinsurance, which provides backup insurance for the fund's large losses. Its cost comes from assessment income and is charged to policyholders who benefit. Reinsurers must be authorized to do business in North Dakota, and contracts must require at least 60 days' cancellation notice. OMB can hire a broker of record, who must be licensed and authorized in North Dakota.
Public property coverage with access limits
Upon application, OMB must insure buildings, fixtures, and permanent contents owned by state agencies, local governments, and winter shows. Covered risks include fire, lightning, explosions, windstorms, tornadoes, hail, strike-related riots, aircraft, smoke, and vehicles, subject to restrictions and exclusions. Upon request, OMB must also offer coverage for lost income or added expenses from insured events, within underwriting limits. Township and school district property outside city limits requires an application and written OMB approval. Guard property coverage requires the adjutant general to consult OMB and find that insurance serves the state's best interests; federally replaceable property is excluded.
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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