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Committee recommends House Bill 1278 to create state cash management board, names governor chair
Summary
The Government Operations Division advanced House Bill 1278, creating a Cash Management Board to centralize management of the state’s operating accounts and designating the governor or the governor’s designee as board chair; committee members voted to attach an amendment and gave the bill a do-pass recommendation.
The Government Operations Division of the Senate Appropriations Committee on the bill advanced House Bill 12-78 as amended, a measure that would create a Cash Management Board to coordinate how the state manages operating cash and to pursue higher returns while preserving liquidity.
Representative Mike Lefor, who represents District 37 (Dickinson) in the North Dakota House of Representatives, introduced the measure and described it as a continuation of work begun during an interim cash-management study. "In the last legislative session, as you know, we did a cash management study, that was completed in the interim," Lefor said, adding the bill "seeks to do is continue that work of analyzing the state's cash and how to better invest it and provide a pathway toward improving the state's return on cash." He told the committee he would like an amendment attached to the bill and formally asked that the committee adopt it.
The bill would direct the state treasurer, in coordination with the Bank of North Dakota and the newly created Cash Management Board, to review existing policies and, if necessary, develop new policies and procedures governing monies held in the state treasury. The language as explained to the committee focuses on operating accounts and explicitly excludes certain funds already managed by other entities, such as the State Investment Board. The Bank of North Dakota would provide staff services to the board.
Senator Patton, speaking in support, told the committee the measure targets "the operating accounts" that fund agencies’ work and that better matching of cash timing and agency needs could allow the state to invest surplus operating cash more advantageously. "When we model that out then the opportunity then to do investments for the longer term maturity and a higher rate of return becomes much more available to us," Patton said.
Representative Lefor and other proponents said the board would increase transparency and provide data-driven forecasts of agency cash flow needs for the current and future biennium, identify opportunities to commingle funds for investment where advantageous, and create tiered cash-flow structuring practices to preserve principal while optimizing returns.
The committee considered an amendment (version 6,001) that changes which official chairs the board: the amendment designates the governor or the governor's designee as board chair and makes the state treasurer (or a designee) a board member. Senator Sickler moved the amendment and Senator Burkhart seconded the motion. The amendment was adopted on a roll call recorded by the clerk; committee members on the record voted aye. After adopting the amendment, Senator Sickler moved that the committee give House Bill 12-78 a do-pass recommendation as amended; Senator Burkhart seconded. The committee adopted the do-pass recommendation by roll call.
Committee members and witnesses noted several implementation details that remain to be worked out, including improving agency reporting of cash-flow timing to the Bank of North Dakota and updating technology used to forecast inflows and outflows. The bill's sponsors said the interim task force that produced the initial cash-management study set a completion target of June 30, 2028, for follow-up work, and that the standing board could be extended in a later session if additional time is needed.
The committee discussion also touched on scheduling: the treasurer's budget was not scheduled for this hearing and will be heard next week, and members discussed upcoming agency budget hearings and facility tours to view projects tied to appropriations requests.
Votes at a glance - Motion to amend House Bill 12-78 (attach version 6,001 to designate governor or designee as board chair): Mover — Senator Sickler; Second — Senator Burkhart; Outcome — Adopted (aye votes recorded by clerk). - Motion for a do-pass recommendation on House Bill 12-78 as amended: Mover — Senator Sickler; Second — Senator Burkhart; Outcome — Do pass as amended (aye votes recorded by clerk).
