Committee hears bill to move administration of state bonding fund to OMB

Representative Emily O’Brien, R‑Grand Forks, told the Industry, Business and Labor Committee that House Bill 1026 would change administration of the State Bonding Fund from the Insurance Commissioner to the Office of Management and Budget and update archaic statutory language to provide contracting authority if current administrative contracts end.

Deputy Commissioner Arnold (Insurance Department) testified in support and said similar conflicts that motivated moving the Fire and Tornado Fund also apply to the Bonding Fund; Arnold recommended the committee support moving administration to OMB.

Todd Anderson, director of OMB’s Risk Management Division, testified neutral and warned OMB lacks current staff and IT capacity to directly administer the funds if existing contractor relationships (with the North Dakota Insurance Reserve Fund, NDIRF) were to terminate; he said OMB could contract for services but the department’s posture remains neutral.

Keith Peach, CEO of the North Dakota Insurance Reserve Fund, said NDIRF has administered the funds since 2019 under contract with the Insurance Department and prefers to continue doing so, taking a neutral position on moving administration but noting continuity concerns.

Committee members asked whether the move aligns with OMB’s mission and whether similar funds are already administered by OMB; OMB said it administers a self‑retention risk fund and could be a fit, but reiterated capacity concerns. The committee closed the hearing on HB 1026 after neutral testimony and did not take immediate committee action.

What’s next: Staff follow‑up on contract continuity, IT and staffing needs was discussed; the committee may weigh amendments or require a fiscal/operational plan before a committee vote.