01/19/2025 | Press release | Distributed by Public on 01/19/2025 15:14
Week two of the legislative session is officially in the books. And we can report you can still buy many consumer goods on Sunday mornings! The highlight of the week was Governor Kelly Armstrong's presentation of his executive budget recommendations for the 2025-27 biennium. Armstrong's $19.89 billion budget prioritizes property tax relief, education, housing, and prioritizing core government functions.
As legislative activity intensifies, bill-introduction deadlines are fast approaching. By January 20 (Monday), Representatives must introduce all their bills, with no more than three bills allowed per Senator after this date. Additionally, no Senate bill containing an appropriation may be introduced beyond this point. January 27 (the following Monday) is the final day for Senators to introduce bills. To date, 727 bills are already in the system, and legislative council has suggested that up to 1,800 draft requests are in progress-though not all will be formally introduced (let's pray).
SB 2008 - DFI Appropriation
Monday morning, the Government Operation Division of the Senate Appropriations Committee held its first hearing on SB 2008, the proposed appropriation for the ND Department of Financial Institutions. DFI Commissioner Kruse gave a detailed background on the Department. She also discussed the budget request contained in the bill. However, if SB 2028 (moving DFI to a continuing appropriation) passes, SB 2008 will be reduced to $0 or removed from further consideration. NDBA's Rick Clayburgh testified in support of the department and the continued support for the continuing appropriation contained in SB 2028. The hearing was closed. Note: SB 2028 passed the Senate and is now awaiting committee assignment in the House. The Senate Government Operations Committee will hold action on SB 2008 to see if the House passes SB 2028 and it is signed by the Governor.
SB 2122 - Uniform Commercial Real Estate Receivership Act
Monday morning, the Senate and Business Committee heard SB 2122. The bill adopts the Uniform Commercial Real Estate Receivership Act (UCRERA) which provides for a consistent set of rules for receiverships involving commercial property, which in turn creates more predictability for lenders. Parrell Grossman, representing the North Dakota Commission on Uniform Laws, introduced the bill. NDBA's Rick Clayburgh testified in support of the legislation. He explained receivership procedures vary widely from state to state, and North Dakota's receivership law has not changed much in the last 80 years. He noted a receiver is someone appointed by the court to take possession of another person's property and manage it and that the UCRERA will apply only to commercial real estate receiverships effective August 1, 2025. DIF Commissioner Kruse also testified in support. There was no opposition, and the hearing was closed. The committee gave the bill a 5-0 do pass recommendation. The full Senate passed the bill 47-0 Thursday afternoon.
SB 2123 - Uniform Special Deposits Act
Monday morning, the Senate and Business Committee heard SB 2122. The bill adopts the Uniform Special Deposits Act. Representative Larry Klemin, Chairman of the North Dakota Commission on Uniform State Laws, introduced the bill. Representative Klemin explained the bill and the work the Uniform Laws Commission put into the Act. NDBA's Rick Clayburgh testified in support of the legislation, explaining that special deposits are deposits of money at a bank created for a particular purpose where the person entitled to the money is not determined until the occurrence of a specified event or contingency occurs. He noted the legislation provides legal clarity as to the use of special deposits. DIF Commissioner Kruse testified in support as did the North Dakota Bar Association. There was no opposition, and the hearing was closed. The committee gave the bill a 5-0 do pass recommendation. The full senate passed the bill 47-0 Thursday afternoon.
HB 1184 - Digital Asset and Precious Metal Investments
Tuesday morning, the House Industry Business and Labor Committee heard HB 1184 allowing the board of university and school lands, the state investment board, and the State Treasurer to invest up to 10% in digital assets or precious mentals. The bill was introduced by Rep. Nathan Toman. Eric Peterson, Director of Asset Management, Satoshi Action Fund; Aaron Hall, Chief Mining Officer, Sundog Mining; and Jason Fry, Terrafin, spoke in favor. State Treasurer Thomas Beadle spoke in a neutral position. Representatives from ND Department of Trust Lands, Retirement and Investment Office took a neutral position; however, they testified they already had the authority to make such investments. BND President Don Morgan testified in a neutral position but expressed possible concerns to its impact on the bank. NDBA's Rick Clayburgh testified in opposition, noting the negative impact of diverting up to 10% of the general fund away from Bank of ND, which would have a significant impact on the role BND plays in supporting North Dakota banks in serving their communities. The hearing was closed without committee action.
HB 1127 - DFI Agency Update Bill
Tuesday afternoon, the House Industry Business and Labor Committee heard HB 1127 which was introduced by the Department of Financial Institutions. Commissioner Kruse walked the committee section by section through the bill. HB 1127 updates and clarifies sections of the century code relating to the removal of financial institution officers, directors, and employees; creates a new chapter 13-01.2 to address data security for non-banks. This section does not apply to banks, but only non-bank licensees, ensuring they have the same safeguards in place to protect consumer data as do banks. NDBA Rick Clayburgh testified in support. There was no opposition, and the hearing was closed without committee action.
HB 1149 - Revised Uniform Unclaimed Property Act
Wednesday afternoon, the House Industry Business and Labor Committee heard HB 1149 which amends provisions of North Dakota's Revised Uniform Unclaimed Property Act. Representative Larry Klemin, Chairman of the North Dakota Commission on Uniform State Laws, introduced the bill and explained how the Uniform Law Commission operates and the purpose of the Unclaimed Property Act. Susan Sommerfeld, Director of the Unclaimed Property Division of the North Dakota Department of Trust Lands, walked the committee through the bill. The most notable changes address the dormancy period for virtual currency and requiring the holder of virtual currency to liquidate the asset before turning the proceeds to the state. NDBA Rick Clayburgh testified in support. There was no opposition, and the hearing was closed without committee action.
SB 2164 - Disclosure To The North Dakota Protection and Advocacy Project
Wednesday morning, the Senate Human Service Committee heard SB 2164 which was introduced by the Protection and Advocacy Project. The bill would require financial institutions to release financial records to P&A when it is investigating suspected abuse, neglect, or financial exploitation of an individual with a disability. Staff from P&A testified in support of the legislation, stating banks were not releasing information they were requesting under federal law. NDBA's Rick Clayburgh testified in opposition. He reminded the committee the banking industry worked with the Human Service Committee and Senator Lee during the 2019 session to establish the rules dealing with confidentiality of information that banks hold and how it can be released if there is suspected exploitation. He noted it is insulting for P&A to suggest banks don't care about adults with disabilities, as banks take this seriously and follow the law in the protection of a customer's confidential information. He further noted if a bank suspects exploitation, the bank can reach out to law enforcement or the dept of health and human services. Also, banks can freeze transactions if there is suspected exploitation occurring. Clayburgh felt it is bad public policy to give P&A more authority than law enforcement in ND. The hearing was closed without committee action.
SB 2127 - Uniform Electronic Estate Planning Documents Act
Wednesday morning, the Senate Judiciary Committee heard SB 2127 which would adopt the Uniform Electronic Estate Planning Documents Act. Brad Myers, University of North Dakota School of Law and a member of the North Dakota Commission on Uniform State Laws, introduced and walked the committee through the legislation. NDBA's Rick Clayburgh testified in support of the legislation, noting UEEPDA addresses the execution of estate planning documents, including wills, trusts, and powers of attorney, in electronic form. He explained it allows for the online execution of wills while maintaining legal safeguards to ensure authenticity and it fills a gap in the law and complements North Dakota's Uniform Electronic Transactions Act and Uniform Electronic Wills Act. DIF Commissioner Kruse testified in support as did the North Dakota Bar Association. There was no opposition, and the hearing was closed. The committee gave the bill a 7-0 do pass recommendation. The full senate passed the bill 47-0 Thursday afternoon.