26.1-21-02. State bonding fund - Office of management and budget - Administrative services - Continuing appropriation - Report

26.1-21-02. State bonding fund - Office of management and budget - Administrative services - Continuing appropriation - Report. 1. There is created in the state treasury the state bonding fund for the bonding of public employees and public officials. The fund consists of all assessments, interest, investment earnings, and other income collected under this chapter. 2. The office shall manage the fund. The office may contract for administrative services from the North Dakota insurance reserve fund or another entity to assist with the management of the fund. A contract for administrative services must have a two-year term ending on June thirtieth of each odd-numbered year, and the contract may not be terminated except at the end of the two-year term. If either party does not anticipate renewing the contract for another two-year term, the party shall give notice of the intent to not renew by September thirtieth of the even-numbered year during the two-year term. 3. Moneys in the fund are appropriated to the office on a continuing basis for paying claims against the fund, contracting for administrative services as provided under subsection 2, paying costs incurred by the state auditor for investigations under section 26.1-21-12, and paying reinsurance costs under section 26.1-21-21. 4. If the balance of the fund is less than three million dollars, the office shall collect assessments from state agencies and political subdivisions. If the balance of the fund exceeds three million dollars, the office shall waive assessments until the balance of the fund is less than two million dollars at which time the office shall resume collecting assessments. 5. If the office determines the interests of the fund are jeopardized by the misconduct or inefficiency of any public official, the office shall notify the state auditor to conduct an investigation. 6. The office shall include a summary of the fund in the biennial report submitted in accordance with section 54-06-04. The summary must include the revenues, expenditures, and balance of the fund.