This bill proposes a comprehensive overhaul of the administration of the state fire and tornado fund in North Dakota, shifting oversight from the insurance commissioner to the office of management and budget. It removes the commissioner’s responsibility for managing the fund and introduces new provisions that establish a continuing appropriation for claims and administrative services under the office of management and budget. The bill also includes new definitions, such as "North Dakota insurance reserve fund" and "state agency," and mandates that state agencies obtain replacement cost appraisals for insured properties every six years, ensuring adequate coverage for public entities.

In addition to the management changes, the bill outlines new guidelines for determining insurable values of properties and specifies that insurance coverage does not automatically extend to townships or school districts outside city limits unless requested. It establishes a process for resolving disputes regarding insurable values through arbitration and ensures the fund maintains a minimum balance of twelve million dollars. The bill allows for the issuance of anticipation bonds if the fund balance falls below two million dollars and mandates the procurement of excess loss reinsurance. Furthermore, it grants the adjutant general control over military installations, requiring them to insure properties with the state fire and tornado fund, while also initiating a legislative study to assess the feasibility of removing political subdivisions from the fund.

Statutes affected:
INTRODUCED: 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, 26.1-22-22, 26.1-23.1-01, 37-03-13
Adopted by the House Industry, Business and Labor Committee: 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, 26.1-22-22, 26.1-23.1-01, 37-03-13
FIRST ENGROSSMENT: 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, 26.1-22-22, 26.1-23.1-01, 37-03-13
PREFILED: 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, 26.1-22-22, 26.1-23.1-01, 37-03-13