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 is designed to bond public employees and officials, and outlines the responsibilities of the office of management and budget, including the collection of assessments from state agencies and political subdivisions based on the fund's balance. The bill also requires the office to report on the fund's status in a biennial report. Additionally, it makes amendments to existing definitions and procedures related to bonding, such as minimum coverage amounts for public employees and the process for filing claims against the fund.

Furthermore, the bill grants the state auditor the authority to investigate state agencies or political subdivisions regarding jeopardized fund interests and evaluate blanket bond coverage. It specifies that costs incurred during these investigations must be paid from the fund and establishes a one-year limit for initiating actions against the fund following a claim presentation. The liability of the fund is limited to breaches occurring within two years prior to the claim. The bill also clarifies procedures for filing claims, the rights of injured parties to sue public officials, and conditions for canceling the fund's liability. It allows public officials to obtain additional bond coverage from authorized surety companies if their bond is canceled, with evidence of such bonds required to be filed with the office. Several sections of existing law are repealed to streamline the legal framework governing the bonding fund and enhance accountability for public officials.

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