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 investigating any misconduct by public officials that may jeopardize the fund. Additionally, it repeals several sections related to the previous management structure and updates definitions and procedures for bonding public employees and officials.

Further amendments clarify the processes for investigating claims against public employees and officials, granting the state auditor authority to evaluate blanket bond coverage and recommend changes. The bill specifies that costs incurred by the auditor during investigations must be paid from the fund and establishes a one-year limit for initiating actions against the fund, with liability limited to breaches occurring within two years prior to the claim. It also details the procedures for filing claims, the rights of injured parties to sue public officials, and the cancellation of bond coverage, while allowing public officials to secure additional bond coverage from authorized surety companies, prohibiting the use of public funds for such purchases. Overall, the bill aims 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