[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6363593,"mediaKeyId","2166087-c348993087681f413317808e5f0c05a0","parentId",2166087,"title","Committee reviews Tax Commissioner's budget; Gentax maintenance, IT and outreach funding draw questions","audioSeconds",3098,"startMs",5880000,"endMs",8978000,"viewUrl","/Search/View?dp=1&key=2166087-c348993087681f413317808e5f0c05a0&start=5880&end=8978","thumbnailUrl","https://assets.pipeline.soar.com/2166087-c348993087681f413317808e5f0c05a0/thumbnail_5880000.jpg","articleUrl","/articles/6363593/North-Dakota/Committee-reviews-Tax-Commissioners-budget-Gentax-maintenance-IT-and-outreach-funding-draw-questions","mediaUrl","https://secure.pipeline.soar.com/6363593-87419444f737a7f16472e69877057e07/orig.mp4?Expires=1771161521&Signature=gc3497HEVLgaAuadMMIsqJBeRHfdrXPp2Ak34rvKNDASr1uyByzUhs-FB1soSEQyehUITNz9HYSiaP1OzNJDZYtWoZfc900A6M7Bk0HJmupO-3YWfnidUczZvpm3ZUUZTUUMpKDS0gi-LHXs7Jrj53Z5g2XeCUWbfOax9vXgmW3DWB9mlJx4mBaHVS8GGjjc0Dq7IcaFZwWEo7p7FnL9r58E2gV2wbL9krPMLvv~VbsofbteHveCat0awpHfY3ZkQWYcGxRnje99-kp71Q34jNqWt6hs2-X6GK6loa95D~XvzkGWfCBV-9OqmyPkwc35DuNtTAr5Hzr6U705NV-bQA__&Key-Pair-Id=KUT5TJCACFTXG","author","House Appropriations - Government Operations Division, ND","date","2025-01-29T00:00:00Z","article","BISMARCK, N.D. — The House Appropriations Government Operations Division reviewed the Tax Commissioner's budget (bill 1006) and focused on contract and operating costs for the state's tax-processing system, information-technology charges and resources to administer property-tax relief programs.

The discussion matters for taxpayers because changes in vendor support and IT costs affect the department's ability to process returns, deliver refunds and administer new or renewed property-tax relief programs such as the primary residence credit and homestead programs.

Treasurer Croixus, addressing technical questions about the GenTax contract, said the current legislative base includes a $4,400,000 baseline for GenTax maintenance and support. The department requested an additional $450,000 in the next biennium to cover an expected contract price increase; the new maintenance total is $4,852,000. \"Every biennium, we are typically faced with a price increase from the vendor,\" the treasurer said.

Members questioned information-technology cost increases billed through the state's IT provider. The department's base IT charges were cited at about $1,495,000; the requested NDIT/IT rate adjustment is $358,321, which amounts to roughly a 20% increase on that base. Committee members also noted the capital tower rent rate: staff reported office space in the Capitol tower is charged at $16.21 per square foot and that the same per-square-foot rate applies to agencies in the tower.

Lawmakers discussed outreach and administrative resources tied to proposed or potential property-tax relief. The Tax Department received one-time funding of $1,500,000 in the previous biennium to program and market the primary residence credit; the department said it used roughly $1,000,000
nd would need a similar amount again if the program continues. The department warned that program administration generated heavy demand: outreach and application processing can generate tens of thousands of contacts during application seasons; the department estimated a substantial increase in call volume tied to such programs.

Committee members also discussed a broader budget issue: the governor's request that agencies identify a 3% base reduction for the executive base. Staff explained the appropriation worksheets at the hearing show the legislative base (the starting point the legislature uses) differs from the governor
djusted base. Lawmakers said the differing bases across agencies complicate comparisons and asked staff to clarify the numbers when the committee adopts amendments.

On committee direction, members asked that staff incorporate the GenTax support increase, the IT rate adjustment and the capital-rent adjustments into the house worksheet and draft amendment language. The committee declined to add a separate new-vacant FTE pool at this time and noted a separate bill (tax information portal) already contains an appropriation if needed. Members also asked staff to ensure any marketing and programming funding for property-tax relief proposals is tracked to the bill that ultimately becomes the vehicle for relief (for example, HB 1176). No roll-call votes were recorded at the hearing; staff were instructed to reflect the committee consensus in the draft amendment.

The committee scheduled follow-up work and asked staff to circulate a redlined amendment for review before the next meeting.","mediaType","Video","parentTitle","House Appropriations - Government Operations Division Jan 29, 2025\t","oneSentenceSummary","Lawmakers reviewed the Tax Commissioner's budget and discussed a $450,000 increase for Gentax software support, a roughly $358,000 IT rate adjustment, office rent and funding to administer property-tax relief programs including primary residence credits.","taxTitle","Appropriations - Government Operations Division, House of Representatives, Legislative, North Dakota","taxId",28887,"location","North Dakota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6363598,"N.D. Insurance Reserve Fund chief defends operations after market-conduct exam; committee presses on claims, reinsurance and Fire and Tornado Fund move",2603,438000,3041000,"/Search/View?dp=1&key=2166087-c348993087681f413317808e5f0c05a0&start=438&end=3041","https://assets.pipeline.soar.com/2166087-c348993087681f413317808e5f0c05a0/thumbnail_438000.jpg","/articles/6363598/North-Dakota/ND-Insurance-Reserve-Fund-chief-defends-operations-after-market-conduct-exam-committee-presses-on-claims-reinsurance-and-Fire-and-Tornado-Fund-move","https://secure.pipeline.soar.com/6363598-3dd6f708c2b707d6488ce4828429ea88/orig.mp4?Expires=1771161521&Signature=ZJdL6q5HdJQirtVE~~lT1gq31CYDByIRvjazq-RmPcmytIb0m-8bPAw-OL49OVtF24w4Zj8TwalEL~xCXws9CuhSFHSXwT7ZXcYFZ8dYi5sAecXZZQ5HX1Sz1azCPYwZrwgMvmrQ2J~h-jaGhKtGwPx-gRPdyVm4i0SD7acCKgmG6rDdljNkzCKSJsXbQyLEAgL0GEgksg5pLjgdyGnJxmY2-zmk0gS4RtGtMkNLbfG8q278Icc~uWGZLrqnJgrryVj0nrBSZGrmOIlc~Q6HWuBa1OhlCrwON2SxBJt8rynB9I3ea2oOOfNmAQnIdMgoMJmRf741QGAiKrUZBt1RMQ__&Key-Pair-Id=KUT5TJCACFTXG","BISMARCK, N.D. — The House Appropriations Government Operations Division heard testimony on House Bill 1010 and a market-conduct examination of the North Dakota Insurance Reserve Fund on a day when lawmakers pressed the fund
nd the Insurance Commissioner about claims handling, underinsured public properties and a pending transfer of the Fire and Tornado Fund.

The hearing matters because the reserve fund insures cities, counties, school districts and other political subdivisions across North Dakota; problems in claims practice or oversight can affect local budgets and taxpayers, lawmakers said.

Keith Peach, chief executive officer of the North Dakota Insurance Reserve Fund, told the committee the NDRF is a member-owned nonprofit established in 1986 to meet political subdivisions\foverage needs. \"The Naderf is not required to exist statutorily or constitutionally. We operate independently as a self insurance pool, but are regulated by the North Dakota Insurance Department, similar to insurance companies,\" Peach said. He told lawmakers the pool has saved members and taxpayers about $150,000,000 since its founding and has had only one general rate increase in the last 25 years.

The Insurance Department\u000examiner focused on claims-handling practices. The report identified files with incomplete documentation, differences in how first-party and third-party claims were handled, and denial letters that lacked detailed explanations. Peach said the examination evaluated documentation, not whether decisions were legally correct, and argued some files closed without payment were \"notice only\" files tracking potential claims that did not materialize. He said, during the audit period, \"only 27% of third party claim closures resulted from liability denials.\" Peach also cited an independent review by Farley Consulting that found some files marked deficient by the department did contain needed documentation.

Peach described steps the NDRF has taken in response: a complaints policy to track written grievances; hiring internal legal counsel and engaging outside counsel for complex matters; standardized claims workflows and checklists; a revised claims philosophy to ensure more consistent handling of first-party and third-party claims; and clearer denial letters that reference supporting evidence.

Lawmakers asked detailed questions about how claims are investigated and paid. Peach said the fund purchases reinsurance and maintains multiple coverage layers up to $10,000,000; amounts above $2,000,000 are reinsured. \"Anything over $2,000,000, we reinsure,\" Peach said, naming Great American as a reinsurer. He described a claims staff of nine employees (one director, one assistant director, six adjusters and one administrative assistant), split between inside desk adjusters for lower-dollar first-party claims and outside adjusters for complex or potentially litigious matters; he said all adjusters are based in Bismarck and the fund uses independent adjusters when needed.

The Foreman Museum collapse that left the local facility underinsured drew sustained attention from committee members. Representative Brandenburg described delays and frustration with payments for repairs and volunteer labor. Peach described the standard progression for large property claims: an initial actual cash value (ACV) payment, engineer review for structural repairs, then submission of documentation for recoverable depreciation and any replacement-cost payments. He also cited coinsurance deductions in the museum case that reduced payouts.

The Insurance Commissioner, John Gottfried, told the committee the department\u000exam stands and encouraged members to read the report, but said he acknowledged progress and that relationships with NDRF have improved.

Committee directions and staff notes recorded during the hearing show lawmakers asked staff to add language in the budget amendment to preserve continuing authority for federal grant funds that the Insurance Department administers; they also instructed staff to include a separate section for the elected insurance commissioner\fareer salary in the amendment. Committee members rejected a proposal (originating in the executive budget) to direct insurance premium tax revenue to a Fire Marshal operating fund, saying that provision was not recommended by the Insurance Department.

The committee did not record a roll-call vote on these decisions; staff instructed to reflect the committee\fonsensus on the worksheet and draft amendments.

Committee members said they will monitor implementation of the NDRF\forrective steps and whether legislative changes tied to the Fire and Tornado Fund transfer (bills referenced in committee discussion) produce automatic inflators and improved property valuations for political subdivisions.

The committee closed discussion on HB 1010 after staff confirmed worksheet changes and section language to carry forward the committee\rirections.","Keith Peach, CEO of the North Dakota Insurance Reserve Fund, told a House Appropriations panel the member-owned pool will correct documentation and communications problems flagged in a market-conduct exam while stressing the fund\fovers political subdivisions and has saved taxpayers an estimated $150 million.","actionData","errors"]

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Committee reviews Tax Commissioner's budget; Gentax maintenance, IT and outreach funding draw questions

N.D. Insurance Reserve Fund chief defends operations after market-conduct exam; committee presses on claims, reinsurance and Fire and Tornado Fund move