Panel approves amendment allowing Office of Administrative Hearings a $150,000 line of credit

The Appropriations - Human Resources Division subcommittee approved an amendment to the Senate version of Senate Bill 2017 to permit the Office of Administrative Hearings to borrow up to $150,000 via a line of credit from the Bank of North Dakota and then accepted the amended Senate language.

The amendment specifies the Office of Administrative Hearings may borrow through a line of credit up to $150,000, that the interest rate may not exceed the prevailing interest rate charged to North Dakota government entities, and that the office shall repay the loan from Administrative Hearings funds as funds become available. The director of the Office of Administrative Hearings told the committee staff worked with the Office of Management and Budget on the language and that the $150,000 figure comes from earlier legislation.

Hope Hogan, director of the Office of Administrative Hearings, told the committee, “my sincere hope is we need none of that money. But we would like it available,” and said the amount is drawn from prior bills. Hogan described the office’s revenue volatility and said the office’s workload and funding mix have changed over time.

Committee members discussed alternatives including raising hourly rates for services (noting WSI is contractually exempt from certain rate changes) and whether a general-fund appropriation would be appropriate. Several members said the line of credit was a practical interim measure while the office evaluates long-term funding options. One member noted political sensitivity to adding general-fund money to a budget that otherwise contains no general-fund appropriation.

Representative Mitscog moved the amended Senate Bill 2017 and Representative O'Brien seconded; the clerk called the roll and the motions (both for the amendment and for accepting the amended Senate version) carried on recorded roll-call votes. The subcommittee designated Representative Mitscog as the bill carrier for the amended measure.

The committee recorded no further funding allocations for the Office of Administrative Hearings in this subcommittee action; members said the panel can revisit funding structure in future deliberations if the office continues to experience revenue shortfalls.