The North Dakota Legislature's HB 1003 Conference Committee convened on May 1, 2025, to discuss critical compliance issues related to a master settlement agreement with major tobacco companies. The meeting highlighted the need for increased resources to ensure the state meets its obligations under this agreement, which generates approximately $20 million annually for North Dakota.

Claire Ness, the chief deputy attorney general, presented the case for hiring a full-time compliance auditor. She explained that while the state currently has limited personnel dedicated to overseeing compliance—an attorney and a paralegal—these resources are insufficient to meet the growing demands of enforcement. Other states have begun allocating full-time equivalents (FTEs) to similar efforts, driven by increasing standards set by arbitration panels.

Ness emphasized that without a dedicated compliance auditor, North Dakota risks losing the $20 million in settlement funds, as tobacco companies could challenge the state's compliance in arbitration. She argued that the cost of hiring an auditor is minor compared to the potential financial loss, making it a prudent investment for the state.

Senator Sickler inquired about the specific duties of the current staff and how a new compliance officer would enhance the state's enforcement capabilities. This discussion underscored the urgency of addressing compliance to safeguard the state's financial interests.

The committee's deliberations reflect a growing recognition of the importance of robust compliance mechanisms in managing state agreements with large corporations, particularly in the tobacco sector. The outcome of this meeting could significantly impact North Dakota's approach to enforcing the master settlement agreement in the future.