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SB 2031

A BILL for an Act to create and enact chapter 23-17.8 of the North Dakota Century Code, relating to nursing services agencies; and to provide an effective date.

69th Legislative Assembly (2025-26)

Create a licensed, regulated framework for nursing services agencies to ensure oversight, patient safety, and accountability through licensing, standards, and annual reporting.

Second reading, failed to pass, yeas 3 nays 43
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Bill Summary · SB 2031

Summary — SB 2031 (Proposed Chapter 23-17.8, North Dakota Century Code)

Status note: the source material appears to combine records from multiple jurisdictions and contains inconsistent procedural entries. According to the bill header you provided, SB 2031 would create NDCC chapter 23-17.8 relating to nursing services agencies. The provided bill text and most substantive provisions below reflect that proposed North Dakota chapter. Verify final status with the official North Dakota Legislative Assembly site.

Purpose / Intent

Establish a new licensing and regulatory framework for “nursing services agencies” — entities that recruit, supply, or procure temporary nursing and related staff for health care facilities — to improve oversight, patient safety, and accountability.

Key provisions

  • Definitions (23‑17.8‑01)

    • “Department” = Department of Health and Human Services.
    • “Nursing services agency” = business engaged for hire in providing or procuring temporary services for nurses, LPNs, nursing assistants/aides, and orderlies. (Excludes individuals providing only their own temporary services.)

  • License required & rulemaking (23‑17.8‑02)

    • Agencies must be licensed by the department.
    • Department to adopt implementing rules.

  • Application & fees (23‑17.8‑03)

    • Department to prescribe application forms.
    • Required application information includes ownership structure, managers, proof of compliance with standards, records policy, list of other states of operation, and required insurance (see below).
    • Nonrefundable application fee: $2,000. If licensed, this satisfies the first year’s annual licensure fee.

  • Operational standards & annual fee (23‑17.8‑04)

    • Agencies must develop policies and procedures, comply with labor/tax/workers’ comp laws, maintain up‑to‑date contact info, document that personnel meet licensing/training/CE requirements, and document employment/contractor status.
    • Each agency employee/contractor must have an annual evaluation by a licensed, registered nurse who is an agency employee; those evaluations must be submitted to the department.
    • Maintain written personnel policies and a personnel file for each worker including: name, address, SSN; copy of license and license numbers; CPR certification; resume/education/employment verification; criminal history record check; competency testing results; job description; performance evaluations; disciplinary records; immunization documentation; and drug testing results.
    • Complaint, incident, and disciplinary reporting policies (including notification to facilities and reporting to the department where appropriate).
    • Department may inspect premises, review records, and interview staff.
    • Annual nonrefundable licensure fee: $2,000.

  • Insurance minimums (application requirement)

    • Professional malpractice insurance: at least $1,000,000 per occurrence and $3,000,000 aggregate.
    • General liability insurance (property damage/bodily injury): at least $1,000,000 per occurrence and $3,000,000 aggregate.

  • Enforcement (23‑17.8‑05)

    • Department may refuse, suspend, revoke, or decline to renew a license for causes including:
    • Willful submission of false/misleading info;
    • Refusing an inspection or investigation;
    • Violation of this chapter or applicable laws/rules;
    • Failure to meet standards of operation;
    • Noncompliance with department orders;
    • Acts that threaten public health/safety;
    • Felony conviction of the agency owner, employee, or contractor; or
    • Insufficient financial or other resources to operate safely.

  • Complaint system (23‑17.8‑06)

    • Department to establish a complaint intake, reporting, and investigation system (text truncated in source, but the bill requires a formal complaint process).

Who is affected

  • Primary: staffing/nursing services agencies that supply temporary nursing and aide personnel to health care facilities.
  • Secondary: health care facilities that use such agencies (hospitals, nursing homes, clinics, ambulatory centers, assisted living, etc.), agency-employed nurses/LPNs/aides, and patients/residents who receive care from temporary staff.
  • Smaller/individual temporary providers may be exempt if they are individuals providing only their own services.

Potential impacts

  • Increased regulatory compliance costs for agencies (licensing fees, insurance in specified amounts, administrative/recordkeeping and reporting requirements, annual nurse evaluations).
  • Potential quality and safety benefits from mandated background checks, competency testing, annual evaluations by licensed nurses, and formal complaint oversight.
  • Possible market effects: higher barriers to entry for very small or newly formed agencies; potential consolidation or increased insurance costs passed to facilities.

Procedural / timeline notes

  • Introduced by the Legislative Management (Health Care Committee). The bill text includes creation of NDCC chapter 23‑17.8 and many committee/processing entries in the source.
  • The source contains inconsistent procedural entries (some showing hearings and favorable reports, others showing failed second reading with yeas 3 / nays 43, and even entries from other jurisdictions). Confirm the bill’s current procedural status and enactment by checking the official North Dakota legislative website or the Department of Health and Human Services.

If you want, I can:
- Produce a side‑by‑side summary of compliance requirements for agencies,
- Draft a one‑page implementation checklist for agencies,
- Or check and report the bill’s definitive current status from the ND legislative tracking site.

Compiled from official sources — confirm details with the bill’s official record.

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