Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Public Safety topic
No spam. Unsubscribe anytime.
Bill would broaden use of cigarette‑testing fund, move collections to insurance trust fund
Summary
House Bill 1086 would allow the State Fire Marshal and Insurance Department greater flexibility to use fees collected under the reduced cigarette ignition propensity program, move those fees into the Insurance Regulatory Trust Fund, and maintain a per‑brand testing fee.
The committee heard House Bill 1086, an agency bill introduced by the Insurance Department that would change how North Dakota administers and spends fees collected under the state’s reduced cigarette ignition propensity program.
Deputy Insurance Commissioner John Arnold said the program requires manufacturers to test each cigarette brand sold in the state every three years, and manufacturers submit a $250 fee per brand as part of the application and retesting process. The current fund was established in 2009 to pay for testing supplies, equipment and administrative support; Arnold told the committee the fund has a balance of about $494,611 and the department has collected roughly $102,500 this biennium while spending about $11,072.
The bill would eliminate some narrow restrictions on how the fund’s revenues may be used and move fee deposits into the Insurance Regulatory Trust Fund so the State Fire Marshal’s office—now housed in the Insurance Department—can use the funding to defray operational costs related to the program. The house amended the bill to remove the flat $250 fee from statute and direct the department to set an annual fee; the department testified it introduced the bill to keep the $250 fee but would accept legislative direction on fee structure.
State Fire Marshal Doug Nelson described the testing process: independent labs test brands under ASTM standards to confirm cigarettes self‑extinguish under controlled conditions to reduce indoor fire ignitions. Nelson said national statistics show cigarette‑caused fires and deaths have fallen since adoption of fire‑safer cigarette standards, and the department has not encountered many noncompliant brands in recent enforcement work.
Committee members asked about how fees are set, whether the program remains self‑sustaining and about the fund balance; Arnold said the fund largely sustains itself from per‑brand fees and said moving the balance and fee authority into the Insurance Regulatory Trust Fund will give the department more flexibility to cover the State Fire Marshal’s costs. The bill requests a due‑pass recommendation.
