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Committee backs bill letting Emergency Commission use State Disaster Relief Fund for state share after presidential disaster

January 10, 2025 | Government and Veterans Affairs, House of Representatives, Legislative, North Dakota


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Committee backs bill letting Emergency Commission use State Disaster Relief Fund for state share after presidential disaster
The House Government and Veterans Affairs Committee on Friday voted 14-0 to recommend House Bill 1073, a measure that would allow the Emergency Commission to pay the state share of post‑disaster costs directly from the State Disaster Relief Fund rather than first taking a loan from the Bank of North Dakota.

The bill, introduced on behalf of the Adjutant General, was presented by Darren Hanson, homeland security division director at the Department of Emergency Services. Hanson told the committee the change is optional and would not eliminate the existing loan option; it would simply allow the Emergency Commission to use disaster relief funds (DIRF) directly for eligible costs after a presidential disaster declaration.

The change addresses what Hanson described as an efficiency and cost issue under current practice. He said the state typically takes a short‑term loan from the Bank of North Dakota after a federal disaster, pays incurred costs during the remainder of the biennium, then repays the loan via a deficiency appropriation when federal aid and state funds arrive. Hanson told the committee the state has paid about $1,000,000 in loan interest per biennium in recent cycles and that he discussed the proposal with the Bank of North Dakota, which had no objection.

Hanson estimated the disaster relief fund had been about $16,000,000 at a recent request and noted state statute caps the fund at $20,000,000. He told lawmakers the bill does not change the federal requirement: the option to use DIRF would be available only after a presidential disaster declaration, which Hanson said limits the scope of the Emergency Commission’s authority under the change.

During questions, Representative Rohrer asked about fund size and oversight. Hanson said the Century Code limits use to declared disasters and that the bill preserves the Bank of North Dakota loan option for very large events, because DIRF would not suffice for catastrophes that vastly exceed the fund cap.

The committee closed the hearing with no public testimony and approved a motion for a "do pass" recommendation. Vice Chairman Satrim moved the recommendation; the record does not show the second’s name. The roll call recorded a unanimous 14‑0 recommendation in favor.

Votes at a glance

- Motion: Committee recommends "do pass" on House Bill 1073 (mover: Vice Chairman Satrim; second: not specified). Outcome: passed. Tally: Yes 14, No 0.

Why it matters: The change is procedural but could reduce interest costs and shorten reimbursement timelines for jurisdictions hit by federally declared disasters; it does not remove the Bank of North Dakota loan option for very large events and is limited to situations covered by federal declarations.

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