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HB 1086

School funding; school district general funds; general fund carryover; State Aid; calculation of per pupil revenue; exceptions; effective date; emergency.

2025 Regular Session Introduced by Dick Lowe and 1 co-sponsor

Shifts RCIP certification fees into the Insurance Regulatory Trust Fund, ends the RCIP fund, and transfers remaining RCIP balance to fund regulatory costs.

Becomes law without Governor's signature 05/22/2025
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Bill Summary · HB 1086

Summary — HB 1086 (North Dakota)

Status: Introduced Nov 12, 2024; filed with Secretary of State 03/31/2025. (Text and committee amendments available; bill passed through legislative process as shown in enrolled documents.)

Purpose

HB 1086 reorganizes how fees collected under North Dakota’s reduced cigarette ignition propensity (RCIP) program are handled and used. The bill redirects manufacturer certification fees into the state’s Insurance Regulatory Trust Fund, repeals a separate fire‑prevention fund, and requires a one‑time transfer of any remaining RCIP fund balance into the Insurance Regulatory Trust Fund.

Key provisions and changes

  • Certification and testing (section 18‑13‑03, as amended)

    • Manufacturers must submit written certification to the State Fire Marshal that each listed cigarette model has been tested per section 18‑13‑02 and meets the RCIP performance standard.
    • Each certified cigarette entry must include specified details (brand/style/length/circumference/flavor/filter/package/marking/lab name and contact/date of testing).
    • Certifications must be made available to the Insurance Commissioner and the State Tax Commissioner.
    • Recertification required every three years.
    • If a manufacturer changes a product in a way likely to affect compliance, the product must be retested and cannot be sold in ND unless it meets standards.

  • Fees and fund deposit

    • For each cigarette listed in a certification/recertification there is an initial fee of $250; the State Fire Marshal may establish an annual fee level to defray processing, testing, enforcement, and oversight costs.
    • All fees collected under 18‑13‑03 are to be deposited in the Insurance Regulatory Trust Fund (rather than being held in a separate RCIP enforcement fund).

  • Trust fund revisions (section 26.1‑01‑07.1, as amended)

    • Explicitly lists sums received under section 18‑13‑03 as deposits to the Insurance Regulatory Trust Fund.
    • Clarifies allowable uses: funds are reserved to defray Insurance Department administrative and regulatory expenses (subject to appropriation and state fiscal laws).
    • After the fiscal year is closed, the Office of Management and Budget must transfer any trust fund balance exceeding $1,000,000 to the general fund (threshold appears in later engrossed/enrolled versions).

  • Repeal and transfer

    • Repeals section 18‑13‑08 (the former fire prevention and public safety fund).
    • Directs the Office of Management and Budget to transfer any remaining balance in the Reduced Cigarette Ignition Propensity Fund to the Insurance Regulatory Trust Fund on August 1, 2025.

Who is affected

  • Cigarette manufacturers and testing laboratories: new/clarified certification, recordkeeping, recertification cadence, and fee obligations.
  • State Fire Marshal: continued processing, testing, enforcement duties; authority to set fees to defray costs.
  • Insurance Department and Insurance Commissioner: receives RCIP fee revenue via the Insurance Regulatory Trust Fund and may use those monies (by appropriation) for departmental regulatory expenses.
  • State Tax Commissioner: retains access to certifications for compliance purposes.
  • Prior recipients of money in the repealed fire prevention/public safety fund: funding stream consolidated into the Insurance Regulatory Trust Fund.

Fiscal and procedural notes

  • The change is primarily an internal reallocation of where RCIP certification fees are deposited and how they may be spent (from a dedicated RCIP enforcement fund to the Insurance Regulatory Trust Fund).
  • The bill sets a specific transfer date (August 1, 2025) for any remaining RCIP fund balance.
  • The State Fire Marshal may set an annual fee to cover program costs (moving from a fixed fee model to an administratively adjustable fee intended to defray actual costs).
  • Potential impacts: administrative/budgetary — Insurance Department receives additional revenue earmarked for its regulatory functions; the separate RCIP/firefighter fund ceases to exist. No new broad regulatory obligations on retailers are created by these amendments beyond existing product‑testing and sales restrictions.

If you want, I can extract the exact enacted language from the enrolled version and produce a side‑by‑side comparison of current vs. amended statutes (showing the precise text changes and cross‑references).

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

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