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North Dakota’s top investment consultant hasn’t changed in over 20 years. A new bidding process may change that.

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North Dakota’s top investment consultant hasn’t changed in over 20 years. A new bidding process may change that.


BISMARCK — The state’s basic funding advisor has been regularly guiding the State Funding Board for greater than 20 years with out having to undergo a proper aggressive bidding observe.

That exemption from the formal procurement course of is allowed by regulation — however the regulation might change if the North Dakota Legislature passes a invoice making it clear the exemption shouldn’t be “construed to permit an company to create or renew a contract perpetually and with out limitation.”

The Home Authorities and Veterans Affairs Committee voted 11 to 0 on Friday, Feb. 17, to present a “do cross” suggestion to Home Invoice 1278 with that stipulation. An earlier model would have required the overall funding contract be rebid each 5 years.

For greater than 20 years, the position of basic funding advisor has been stuffed by San Francisco-based Callan, a agency that has a relationship with the State Funding Board going again greater than 30 years.

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As beforehand reported by The Discussion board

, the state has paid Callan at the least $12.9 million over a interval of at the least 20 years. Callan acquired contract extensions, and state funding officers mentioned they commonly reviewed the agency’s efficiency, however the contract was not re-bid.

Rep. Bernie Satrom, R-Jamestown, the first sponsor of Home Invoice 1278, mentioned guaranteeing the State Funding Board’s basic funding advisor contract not be considered as open-ended is a matter of fine authorities.

Rep. Bernie Satrom, R-Jamestown

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“As a legislator and a steward of public assets, it’s solely good enterprise to have transparency and do what’s proper,” he mentioned.

The exemption from the state’s formal procurement course of for contracts for fiduciary providers — the place the service supplier has an obligation to behave within the consumer’s finest curiosity — was granted by the North Dakota Legislature in 2003 after being rejected in 2001.

Underneath state regulation, exempt companies together with the State Funding Board and its workers arm, the Retirement and Funding Workplace, set up their very own procedures for choosing consultants with pointers from the Lawyer Basic’s Workplace.

In impact, Satrom mentioned, the State Funding Board has had an “evergreen” or ongoing contract with Callan with periodic casual workers critiques that don’t comply with any prescribed course of.

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“This can be a main element of what occurs with all of our cash. We’re speaking about billions of {dollars}. I believe it’s a small ask,” he mentioned of the rebidding requirement. “We have to maintain doing higher.”

Jan Murtha, the manager director of the Retirement and Funding Workplace, mentioned the State Funding Board doesn’t have any “evergreen” contracts.

Though exempt from a proper bidding course of, “That doesn’t imply that we don’t do any procurement,” Murtha mentioned in earlier testimony earlier than the Home Authorities and Veterans Affairs Committee.

Murtha spoke in help of the amended invoice Friday and mentioned the Retirement Funding Workplace will undergo a extra intensive and formal procurement course of, together with a request for proposals, much like the one used final 12 months to rent a advisor to plan an asset allocation plan for the $8.5 billion Legacy Fund.

Callan’s present five-year contract expires in 2024, when the extra formal course of will probably be used for the overall funding advisor contract, Murtha mentioned.

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“I believe that is nice public coverage, all of those adjustments,” she instructed the committee.

The Retirement and Funding Workplace is proposing hiring workers to steer funding of 15% of its $18.5 billion funding portfolio within the subsequent biennium, relying much less on consultants, a transfer Murtha mentioned would end in a internet financial savings of $16 million per 12 months.

The intent can be to proceed to develop workers experience over time and additional scale back reliance on consultants and improve the financial savings, which might be handed alongside to consumer funds, she mentioned.

Rebidding necessities for investment-related providers are an ordinary observe in some states.

The Authorities Finance Officers Affiliation’s pointers for actuarial contracts involving public retirement plans name for rebidding.

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“Most state pension techniques have established contract renewal intervals of roughly 5 years, typically with two- to three-year extensions,” in response to the affiliation’s pointers.

The Minnesota State Board of Funding’s funding consulting providers overview notes that Minnesota regulation requires all advisor contracts to be rebid each 5 years, with a possible extension of as much as 5 years.

The New Mexico Academic Retirement Board’s funding providers procurement coverage requires contracts for all funding consultants, custodial financial institution providers and funding managers of publicly traded property to be restricted to an preliminary 4 years. A single extension of as much as two years could also be granted. Thereafter, a request-for-proposal course of is most well-liked.





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North Dakota

Sen. Kevin Cramer says competition is 'better for all of us’ as he runs for reelection

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Sen. Kevin Cramer says competition is 'better for all of us’ as he runs for reelection


GRAND FORKS — Running as a United States senator is very different from running for the U.S. House of Representatives, according to U.S. Sen. Kevin Cramer.

“In the House, we did it all the time, because you’re up for election every two years, so you’re always both campaigning and working,” he said. “The Senate, after six years of not campaigning, it’ll be interesting now just to have a month to do exactly that.”

Cramer, a Republican, is running for reelection for another six-year term. He was first elected to the Senate in 2018, ousting then-incumbent Democrat Sen. Heidi Heitkamp. This year, Cramer faces

Democratic candidate Katrina Christiansen

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. The pair will debate on Oct. 2 on Prairie Public.

Cramer won his primary,

competing unopposed during the June primary,

and said that now, with roughly a month to Election Day and voting already underway, he’ll be ramping up his campaign.

“I’ve been very intentional about — and I’ve generally done this throughout my career — setting specific benchmarks and key darts starting when ballots go out,” he said. “I started my advertising on the first day that ballots could go out for absentee (voters).

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“Too many candidates that I’ve watched over my career start advertising really early in the year, and they spend a lot of money before Labor Day, which is almost like not spending at all,” he continued.

Ballots for overseas and military North Dakota voters were sent out Sept. 20, but the vast majority of absentee ballots become available Sept. 26. In-person early voting where available generally starts two weeks to a week before the general election, depending on the county.

Cramer said some of his Senate colleagues, like Sen. Jon Tester of Montana and Sen. Sherrod Brown of Ohio, who are also running for reelection, have been advertising for well over a year. He doesn’t view that as being as helpful as focusing on the month before the election.

“We’ve got a pretty complete plan that is already fully funded and now in motion for the next six weeks,” Cramer said.

This is Cramer’s first reelection for the Senate seat. Cramer was first elected to federal office in 2012 and served three terms in the House as North Dakota’s sole representative. Being in the Senate allows him to do more work that focuses on the state, he said.

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“In North Dakota, we have the great blessing of being a small state with two senators, rather than a very large state with two senators,” he said. “That affords people like me that for six years, you do your job, and if you’re transparent and you’re able to talk to the media and talk to your constituents, it makes campaigning a lot easier.”

Having some competition in the race is a good thing, Cramer said.

“She seems to be better prepared — and you would be,” he said, referring to the fact that Christiansen has run multiple campaigns now. “I lost three elections before I started winning them, and so you do get better each time. She dives real into the deep end, and I think it makes for a much more interesting campaign. I think it’s better for all of us.”

Voigt covers government in Grand Forks and East Grand Forks.

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Illinois State vs. North Dakota State channel, time, schedule, live stream to watch Week 5 college football game | Sporting News

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Illinois State vs. North Dakota State channel, time, schedule, live stream to watch Week 5 college football game | Sporting News


Ella Morrissey is a freelance writer for The Sporting News ‘Watch’ team, covering all major North American sports carried on streaming services such as Fubo, Sling, Paramount+, DAZN, Apple+ and more. She is a graduate of Lehigh University, where she served as the sports editor of her college newspaper. Prior to joining The Sporting News, Ella worked in media relations with the New York City Football Club and currently helps to cover the WNBA for Winsidr. When not writing articles for TSN, Ella enjoys going to concerts, live sporting events and reading mystery novels.



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Plain Talk: Proponent and opponent debate North Dakota's Measure 5 legalization of marijuana

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Plain Talk: Proponent and opponent debate North Dakota's Measure 5 legalization of marijuana


MINOT — Steve Bakken is the former mayor of Bismarck, and the chair of the committee backing Measure 5, which seeks to legalize recreational marijuana in North Dakota.

Pat Finken is a longtime advertising professional and political activist. He’s a part of the coalition opposing Measure 5.

These gentlemen came together on Plain Talk to make their respective cases. The contrasts in their arguments, as you might expect, were sharp.

Bakken says Measure 5 is a “very conservative” legalization that gives state officials plenty of latitude to regulate lawful use of the drug. The measure “gives all the power to the state,” he said.

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But Finken painted the measure as exacerbating North Dakota’s existing problems with substance abuse. “The marijuana of today is not safe,” he said. “It’s 10 times more powerful” than what Americans may have been smoking in past decades. He rejected the argument that marijuana legalization is inevitable, saying that even if North Dakota were the last state in the union without legal access for recreational use, he wouldn’t mind it.

“I’m perfectly content for North Dakota to remain an island,” he said.

Bakken, for his part, argued that Finken’s alarmism is out of date. “That reefer madness mentality goes back to the 50s.”

To subscribe to Plain Talk, search for the show wherever you get your podcasts, or use one of the links below.

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Rob Port is a news reporter, columnist, and podcast host for the Forum News Service with an extensive background in investigations and public records. He covers politics and government in North Dakota and the upper Midwest. Reach him at rport@forumcomm.com. Click here to subscribe to his Plain Talk podcast.
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