Senate Industry and Business Committee Chair Senator Jeff Barta convened the committee for a multi-item session that produced five formal roll-call outcomes and several staff-directed follow-ups.

The panel approved amendments to Senate Bill 2032 to change how leftover funds from the state high-risk association (CHAND) are returned, approved amended language for Senate Bill 2088 on cybersecurity-notification timing, voted a do-not-pass on Senate Bill 2181 (a law-enforcement mental-health outreach proposal), issued a do-not-pass on Senate Bill 2203 (a board-consolidation measure for audiology/hearing aid specialists), and held a policy hearing on Senate Bill 2,272 (an insurance incentive program) without taking a final vote. Committee members also paused action on a proposal tied to 988 staffing and a communications-fee change to allow more time to draft amendment language.

Why it matters: the committee’s votes affect how the state winds down its high-risk association, how insurers and licensees must notify consumers about cybersecurity incidents, which new programs will receive legislative support and whether the committee will ask appropriators to fund a new insurance incentive program. The 988 and telecom-tax discussion could affect behavioral-health crisis-line staffing, but members asked for more fiscal detail before moving forward.

What the committee did and why

Senate Bill 2032 (CHAND / high-risk association): The committee approved an amendment offered by the North Dakota Insurance Department to change the disposition of any excess funds after CHAND’s cessation of operations. Crystal Bartuska of the North Dakota Insurance Department told the committee the amendment reflects the Health Services Committee’s intent that leftover money not remain in the state insurance regulatory trust fund but instead be returned pro rata by the lead carrier to the insurers that were originally assessed. Megan Ruby of Blue Cross Blue Shield of North Dakota confirmed the carriers’ agreement with that approach, saying the carriers do not expect significant excess but prefer returning any leftover assessments to the assessed companies rather than having the funds sit in the regulatory trust fund.

The committee approved the amendment and then voted a due-pass recommendation on the bill as amended; the roll call recorded five aye votes and no no votes.

Senate Bill 2088 (cybersecurity notice timing and related provisions): Committee members accepted an amendment that changes the timing language for notifying the state/consumers after a cybersecurity event from 72 hours to "three business days" in the version considered in committee. Chair and staff explained several subsections remain under negotiation with national-model language (NAIC) and with trade groups; the parties agreed to continue local and national discussions on deviations from the NAIC model. The amendment and the bill as amended received a 5-0 due-pass recommendation.

Senate Bill 2181 (Law Enforcement Mental Health Outreach Network / WSI & DHHS program): Committee members heard background describing a program launched in 2023 (funded initially via ARPA funds) that provides trauma-trained clinicians for state-employed first responders and is being expanded to political subdivisions. The program’s ARPA funding was noted to expire in September and proponents said they will seek DHHS budget appropriations. Committee members expressed interest in existing program data (usage, number helped) and whether the program can scale; after discussion the committee adopted a do-not-pass recommendation (5-0). Senators said program continuation and funding can be pursued through budgeting processes rather than advancing 2181.

988 funding / telecommunications-fee language (bill/section under active amendment drafting): Committee members reviewed a draft amendment that would appropriate $500,000 for eight additional FTEs related to a 988/behavioral health crisis service, and simultaneously remove sections of the bill authorizing a communications-services fee (telecom tax) being used to support the appropriation. Members asked for clarity on total operating costs of 988 (First Link had supplied a cost estimate previously, cited by Senator Klein as $2.8 million), the breakdown of the $500,000 appropriation (the committee was told it would cover eight additional FTEs estimated at $529,000), and which statutory definitions must be stricken if the fee section is removed. Committee chairs directed staff and legislative counsel to draft clarified amendment language and to supply missing budget detail before further action; no final vote was taken on the amendment.

Senate Bill 2,203 (Audiology / Speech-Language Pathology Board consolidation): The committee received written comments and testimony from boards and licensees who said consolidation would require substantial statutory recodification and could increase administrative costs (for example, third-party test administration and website changes). After deliberation the committee adopted a do-not-pass recommendation (5-0) and discussed that the boards will continue to coordinate and that further statutory cleanup would be sizable and time-consuming.

Senate Bill 2,272 (Insurance Incentive Program): The committee heard extended testimony from Insurance Commissioner John Godfrey and Deputy Commissioner John Arnold about a proposed North Dakota Insurance Incentive Program modeled on Louisiana’s program. The measure would establish a matching-grant fund (proposed grant awards between $2 million and $10 million per insurer, matched 1:1, distributed over five years) to encourage insurers to invest capital and write more property insurance in North Dakota. The commissioner said the department would administer grant rounds and recommended a proposed initial funding source of $20 million drawn from insurance premium-tax distributions and excess regulatory trust-fund balances; the bill as introduced contains no appropriation. Committee members asked about safeguards, reporting, the 20% domestic-insurer allocation, sunset duration and performance metrics; staff asked for time to draft amendment language and possible appropriation language. No vote occurred on SB 2,272 during this session.

Votes at a glance

- Senate Bill 2032 (as amended): Amendment adopted; due-pass on amended bill — vote 5-0 (Klein Aye; Kessel Aye; Chairman Barta Aye; Vice Chairman Behn Aye; Senator Engott Aye).

- Senate Bill 2088 (as amended): Amendment adopted; due-pass on amended bill — vote 5-0 (Klein Aye; Kessel Aye; Chairman Barta Aye; Vice Chairman Behn Aye; Senator Engott Aye).

- Senate Bill 2181: Committee recommendation — do not pass — vote 5-0 (Klein Aye; Kessel Aye; Chairman Barta Aye; Vice Chairman Behn Aye; Senator Engott Aye).

- Senate Bill 2,203 (audiology/hearing aid specialist board consolidation): Committee recommendation — do not pass — vote 5-0 (Klein Aye; Kessel Aye; Chairman Barta Aye; Vice Chairman Behn Aye; Senator Engott Aye).

Other actions and directions

- Staff and legislative counsel were asked to draft clarified amendment language for the bill tied to 988 funding and to provide a fuller budget and operating-cost breakdown for 988 before further committee action.

- For SB 2,272 (insurance incentive), staff were asked to prepare potential amendment language including appropriation and sunset options (committee members suggested a multi-year trial or biennial review).

Key quotes (from transcript)

- Crystal Bartuska, North Dakota Insurance Department: "Instead of it going through into the insurance regulatory trust fund and that money sitting there and coming back to the state, it's now if there's any money left over, it just goes back to the insurance companies that were originally assessed."

- Megan Ruby, Blue Cross Blue Shield of North Dakota: "That was the understanding that we had as well. We're in agreement that we would not assess, except for sort of services rendered, and that the money would be returned to the carriers rather than go to the insurance regulatory trust fund."

- John Godfrey, North Dakota Insurance Commissioner: "The North Dakota Insurance Incentive Program is a forward-looking solution that seeks to prevent further deterioration of our state's property insurance market." He also warned that the alternate option — a state fair plan as an insurer of last resort — is costly and reactive.

Ending note

Committee members said they want more fiscal detail before acting on new appropriations (988 staffing, and potential funding for the insurance incentive program). The committee recessed to continue work later and directed staff and counsel to circulate refined amendment language and budget breakdowns for items left open.