This bill amends various sections of the North Dakota Century Code to transfer the administration of the state bonding fund from the insurance commissioner to the office of management and budget. It establishes a continuing appropriation for the fund, which will now be managed by the office, and introduces new provisions for collecting assessments from state agencies and political subdivisions based on the fund's balance. The bill outlines the responsibilities of the office in managing the fund, including contracting for administrative services and conducting necessary investigations. Additionally, it repeals several sections related to the previous administration of the bonding fund and updates definitions and procedures for bonding public employees and officials.

Key insertions in the bill allow the state auditor to investigate state agencies or political subdivisions when fund interests are jeopardized, evaluate blanket bond coverage during audits, and recommend changes in coverage amounts. The bill specifies that costs incurred by the state auditor for investigations must be paid from the fund and permits the auditor to contract for investigations. It also modifies the conditions for bringing actions against the fund, requiring claims to be presented to the office and disallowed before legal action can commence, and establishes a one-year limitation for such actions. Other amendments include provisions for the cancellation of bond coverage and the ability for public officials to secure additional bonds at their own expense, with evidence of such bonds required to be filed with the office.

Statutes affected:
PREFILED: 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, 61-16.1-05
Enrollment: 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, 61-16.1-05
INTRODUCED: 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, 61-16.1-05