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HB 1278

Public Funds and Financing - As enacted, authorizes use of the Hurricane Helene interest payment fund to pay local governments' loan charges; makes related changes. - Amends TCA Title 4; Title 5; Title 6; Title 7; Title 9 and Title 58.

114th Regular Session (2025-2026) Introduced by Timothy Hill

Creates a multi‑member Cash Management Board to review and develop policies for managing state treasury moneys, improve transparency, and optimize liquidity and returns.

Pub. Ch. 521
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Bill Summary · HB 1278

Summary — HB 1278 (North Dakota)

AN ACT to create and enact two new sections to chapter 54‑11 of the North Dakota Century Code, relating to the management of moneys in the state treasury and a cash management board; to provide a report; and to provide an expiration date.

Main purpose / intent

HB 1278 establishes a formal, multi‑member cash management board and directs the state treasurer, in coordination with the Bank of North Dakota (BND), to review and—if needed—develop policies and procedures for managing moneys in the state treasury. The stated goals are greater transparency about the state's consolidated cash position, improved agency cash management, and policies that preserve principal, maintain liquidity, and optimize overall return consistent with statewide risk.

Key provisions

  • Creates a new statutory section requiring the state treasurer, working with BND and the cash management board, to review existing policies and develop management procedures for moneys in the state treasury.
  • Defines “moneys in the state treasury” to include the general fund and special funds, but explicitly excludes:
    • the veterans' postwar trust fund, and
    • funds invested by the State Investment Board and the Board of University and School Lands.
  • Creates a Cash Management Board with duties to:
    • review and (if necessary) develop policies for management of treasury moneys in coordination with the treasurer and BND;
    • provide transparency on the state's consolidated financial position;
    • identify agency and interagency cash flow characteristics and forecast cash flow needs;
    • review agency cash‑management technology and recommend operational efficiencies; and
    • identify practices to improve cash structures and transactional efficiency.
  • Policy elements the board may consider include:
    • an appropriate tiered cash‑flow structure;
    • authorization to commingle funds for management when advantageous; and
    • prioritization of cash‑flow structuring to align with agency missions and the state's consolidated position.
  • Bank of North Dakota shall provide staff services to the board.
  • State agencies must provide cash‑flow and liquidity information to the board upon request.
  • Board membership (as enrolled / first‑engrossment with Senate amendments) includes:
    • Governor (or designee) — chair;
    • Director, Office of Management & Budget (or designee);
    • President, Bank of North Dakota (or designee);
    • Two House members appointed by the House majority leader;
    • Two Senate members appointed by the Senate majority leader; and
    • State Treasurer (or designee).
  • Legislative members receive compensation and expenses per existing law; the Legislative Council pays those costs.
  • Reporting: the board must provide at least one report each fiscal year to the Budget Section.
  • Expiration: the Act is effective through June 30, 2028; after that date it is ineffective.

Who is affected / likely impacts

  • State Treasurer’s Office and the Bank of North Dakota — required coordination, staff support, and participation.
  • State agencies — required to supply cash‑flow and liquidity information on request.
  • State funds (general fund and most special funds) — subject to new board‑driven management policies; however certain trust and externally invested funds are excluded.
  • Legislature — several legislative members serve on the board and receive statutory compensation; the board reports annually to the Budget Section.
  • Potential operational impacts include improved statewide cash forecasting, potential commingling for management efficiencies, and formalized policies to balance liquidity and return.

Procedural / timeline notes

  • The Act (as enrolled / first engrossment with Senate amendments) includes an expiration date of June 30, 2028.
  • Bank of North Dakota is designated to provide staff services immediately upon implementation.
  • The board will deliver at least one report per fiscal year to the Budget Section while the Act is in effect.

Other versions / amendments considered

Earlier or alternate drafts circulated during the bill process (see draft materials) would have gone further — for example by:
- explicitly authorizing the State Treasurer to invest portions of treasury moneys as liquid or invested reserves;
- requiring application of the prudent‑investor rule, annual investment performance reports (market values, benchmarks, returns, investment costs), and payment of investment management costs; and
- creating criminal penalties for personal profiteering from transactions.
Those investment‑focused provisions appeared in some proposed amendments but are not part of the core enrolled/first‑engrossed text summarized above.

If you want, I can:
- Extract the exact statutory language for insertion into policy or briefing documents; or
- Produce a short analysis of likely operational changes and resource needs for the Treasurer’s Office and BND.

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

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