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Appropriations panel authorizes BND line of credit for Office of Administrative Hearings
Summary
The committee adopted language allowing the Office of Administrative Hearings to obtain a line of credit from the Bank of North Dakota up to $150,000 to manage cash-flow fluctuations tied to billed hearing hours.
Representative Mitscog presented the Office of Administrative Hearings budget and described a recurring cash-flow issue: the office is funded by billings to state agencies and experiences fluctuations in revenue when cases settle, are resolved by settlement, or when billable hours decline due to remote hearings.
The committee discussed the agency’s prior authorization to take a general-fund loan and instead approved an amendment authorizing a line of credit through the Bank of North Dakota (BND) not to exceed $150,000. The amendment specifies the line’s interest rate may not exceed the prevailing rate charged to other state government entities, and the agency must repay the loan from its administrative hearings fund as revenues become available.
Committee members said the office has seen higher hearing requests but fewer billable hours because more matters are settled and more hearings are conducted via video. The committee adopted the BND line-of-credit amendment by roll call (23–0) and then approved the budget as amended. Representative Mitscog will carry the bill to the floor.
