April 14, 2023 - Update
Posted: Apr 14 2023
This Week at the Legislature
Monday marks day 66 of 80 days that the Legislature can meet during the 2023 North Dakota Legislative Session. Legislators spent Friday in conference committees while Appropriators tweaked the remaining budgets.
This point of the legislative session is best characterized by the phrase “hurry up and wait.” Legislators have been convening for brief 8 a.m. legislative sessions. Those sessions then adjourn for conference committees to meet and try to resolve differences between the House and the Senate. The members of those conference committees are blessedly busy, but the many other legislators who are not on a conference committee pretty much sit and wait. Encouragingly, more freshman legislators are participating in conference committees, even as chairs, as they learn the ropes this session.
Meanwhile, while budgets were due out of Appropriations on the 11th, the deadlines were extended for a handful of agency budgets on both sides. Appropriators continue to hash through the bottom line, working to cut, cut, cut. However, Legislative budget analysts reported Friday that the $1.4 billion that had been overspent has decreased significantly. The general fund is now underwater by $365 million—a far improvement from the $1 billion—while appropriators returned funds to the Strategic Investment and Improvements Fund (SIIF) which now has a positive balance of nearly $95 million.
All this means we are getting close to the end!
Hearings and Other Action This Week (4.10.23 - 4.14.23)
HCR 3036 – Resolution Opposing the adoption of a Central Bank Digital Currency
The Senate Industry and Business committee heard HCR 3036 Monday morning. Representative Robin Weisz introduced the resolution. He explained he introduced the resolution in response to concerns that arose from the discussion surrounding HB 1082 (UCC) about the U.S. Government creating a CBDC. The resolution urges Congress not to support legislation, or other efforts, relating to the adoption of a Central Bank Digital Currency in the United States. NDBA’s Rick Clayburgh testified in support of the resolution. There was no other testimony, and the hearing was closed. The committee gave the resolution a 5 to 0 Do Pass recommendation. The full Senate adopted the resolution by a voice vote Monday afternoon and the resolution is now headed to the Governor for his review.
SB 2392 – UCC Definition of Deposit Account and a CBDC
The House Industry Business and Labor Committee heard SB 2392 Tuesday morning. Senator Bob Paulson introduced the bill. He explained the purpose of the bill is to ensure that a U.S. Central Bank Digital Currency is not considered a “deposit account” for the purpose of Article 9 of the UCC. NDBA’s Rick Clayburgh and ICBND’s Barry Haugen testified neutrally on the bill. They explained their Associations are opposed to the creation of a U.S. CBDC, noting the UCC bill (HB 1082) passed earlier this session does not create a CDBC. They explained that passage of SB 2392 does not create issues with North Dakota’s updated provisions of the UCC. The Hearing was closed, and the committee gave the bill a 12-0-2 Do Pass recommendation. On Wednesday, the full House passed the bill 82-8, and it is now headed to the Governor for his consideration.
SB 2206 – Insurance Cash Value Exemption
As reported previously, the House Industry, Business and Labor Committee heard SB 2206 on March 28. Introduced by Senator Merrill Piepkorn, SB 2206 eliminates the $8,000 limit in any accrued dividend or interest under, or loan value of, any unmatured life insurance contract by creating an unlimited bankruptcy exemption for any benefits including cash value and proceeds of an insurance policy or annuity contract. Chairman Louser appointed a subcommittee (Rep. Ostlie, Johnson, Kasper and Warrey) to further review the bill. Rep Ostlie chaired the subcommittee which felt they should look at all of the exemptions. The subcommittee met Tuesday afternoon and proposed a number of changes to the bankruptcy exemptions.
- Increase homestead exemption amount from $100,000 to $150,000 and the in lieu of homestead exemption homestead exemption from $10,000 to $25,000.
- Increase motor vehicle from $2,900 to $10,0000 and increase modified vehicle from $32,000 to $50,000.
- Debtor’s aggregate interest for tools from $1,500 to $10,000.
- Increase insurance cash value from $8,000 to $100,000 and include a requirement of one year for the annuity.
New language:
The debtor's aggregate interest, not to exceed in value one hundred thousand dollars less any amount of property transferred in the manner specified in 11 U.S.C. 542(d), in any accrued dividend or interest under, or loan value of, any unmatured life insurance contract owned by the debtor under which the insured is the debtor or an individual of whom the debtor is a dependent. Any cash deposits not previously scheduled to be made into such policies or non-qualified annuities over the previous twelve months is not exempt and is subject to levy. Benefits are not exempt from enforcement of any order to pay spousal support or child support, or a qualified domestic relations order under sections 15-39.1-12.2, 39-03.1-14.2, and 54-52- 4 17.6.
- Increase cash value of those retirements fund assets exempted may not exceed $100,000 to $200,000. Increase the retirement cap from 200,000 to $400,000 aggregate.The full committee adopted the amendments which were not yet in written form on Wednesday morning, then gave the bill a Do Pass recommendation. The Chairman is holding the bill to review the actual amendments from Legislative Council.
NDBA’s 2023 Legislative Tracking List
HB 1008
House: PASSED
House 87 – 3
Senate: PASSED
Senate 46 – 1
Governor
NDBA Supports
A BILL for an Act to provide an appropriation for defraying the expenses of the department of financial institutions.
In Conference Committee
HB 1014
House: PASSED
House 84 – 9
Senate: PASSED
Senate 44 – 2
Governor
NDBA Supports
A BILL for an Act to provide an appropriation for defraying the expenses of the industrial commission and the agencies under its control; to provide for a transfer; and to provide an exemption.
In Conference Committee
HB 1082
House: PASSED
House 84 – 9
Senate: PASSED
Senate 34 – 12
Governor: SIGNED
NDBA Supports
Relating to the adoption of the Uniform Commercial Code amendments (2022) relating transactions involving digital assets especially relating to (a) negotiability for virtual (non-fiat) currencies, (b) certain electronic payment rights, (c) secured lending against virtual (non-fiat) currencies, and (d) security interests in electronic (fiat) money, such as central bank digital currencies. The amendments also address other technological developments affecting electronic chattel paper, negotiable instruments, payment systems, electronic documents of title, and sales and leases of goods.
HB 1083
House: PASSED
House 92 – 0
Senate: PASSED
Senate 46 – 0
Governor: SIGNED
NDBA Supports
Relating to the adoption of the Revised Uniform Law on Notarial Acts (2021).
HB 1106
House: FAILED
House 6 – 87
NDBA Neutral
Relating to appraisal management companies.
HB 1107
House: PASSED
House 90 – 3
Senate: PASSED
Senate 46 – 0
House: PASSED
House: 88 – 2
Governor: SIGNED
NDBA Neutral
Relating to the regulation of real estate appraisers; and to provide a penalty.
HB 1228
House: PASSED
House 90 – 0
Senate: PASSED
Senate 47 – 0
House: PASSED
House: 91 – 0
Governor: SIGNED
Relating to the use of certain marketing practices involving an agreement containing a provision for automatic renewal; and to provide for application.
HB 1278
House: PASSED
House 92 – 1
Senate: FAILED
Senate 10 – 36
Relating to the prudent investor rule; and to amend and reenact section 21-10-02, subsection 1 of section 21-10-08.1, and subsection 2 of section 21-10-11 of the North Dakota Century Code, relating to the state investment board and the legacy fund.
HB 1283
House: FAILED
House 8 – 85
NDBA Opposes!
Relating to fair access to financial products and services; and to provide a penalty.
HB 1345
House: PASSED
House 85 – 8
Senate: FAILED
Senate 12 – 34
NDBA Opposes!
Relating to state purchasing contracts.
NDBA Opposes!
Relating to the state treasurer and financial institutions engaged in boycotts of energy companies; and to amend and reenact section 6-01-02 of the North Dakota Century Code, relating to definitions.
HB 1368
House: PASSED
House 86 – 7
Senate: PASSED
Senate 43 – 3
House: PASSED
House: 87 – 4
Governor: SIGNED
Relating to contracts with companies that boycott Israel and a prohibition on investments.
HB 1429
House: PASSED
House 93 – 0
Senate: PASSED
Senate 42 – 4
Relating to state contracts with certain companies that boycott energy, mining, and production agriculture.
In Conference Committee
HB 1469
House: FAILED
House 6 – 87
NDBA Opposes!
Relating to the investment and management of public funds.
HB 1487
House: PASSED
House 83 – 9
Senate: PASSED
Senate 46 – 1
NDBA Supports
Relating to financial institutions use of merchant codes to track firearm and ammunition-related purchases; and to provide a penalty.
In Conference Committee
HN 1499
House: PASSED
House 76 – 14
Senate: FAILED
Senate 13 – 34
Relating to an interest rate buydown program for homeowners with a primary residence mortgage.
SB 2111
Senate: PASSED
Senate 44 – 3
House: PASSED
House 74 – 11
Governor: SIGNED
Relating to certificate of title to be allowed in electronic form.
SB 2210
Senate: PASSED
Senate 47 – 0
House: PASSED
House 92 – 0
Governor: SIGNED
Relating to individual retirement and employee benefit trusts.
HB 2217
Senate: PASSED
Senate 26 – 21
House: FAILED
House 29 – 64
NDBA Opposes!
Relating to the calculation of interchange fees for electronic payment transactions; and to provide a penalty.
SB 2220
Senate: FAILED
Senate 16 – 31
Relating to an allocation from the legacy earnings fund and eligible projects under the housing incentive fund; to provide an effective date; and to declare an emergency.
SB 2263
Senate: PASSED
Senate 47 – 0
House: PASSED
House 93 – 0
Senate: PASSED
Senate: 47 – 0
Governor: SIGNED
NDBA Supports
Relating to escrow accounts.
SB 2266
Senate: PASSED
Senate 24 – 23
House: FAILED
House 39 – 53
NDBA Opposes!
Relating to credit union field-of-membership.
SB 2300
Senate: FAILED
Senate 0 – 47
Relating to notice to owner and law enforcement of abandoned vehicles.
SB 2392
Senate: PASSED
Senate 42 – 5
House: PASSED
House 82 – 8
Governor:
Relating to the definition of deposit account.
HCR 3036
House: PASSED
House 84 – 5
Senate: PASSED
Senate: Voice Vote
NDBA Supports
Relating to the adoption of a Central Bank Digital Currency in the United States.
How to Contact Your Legislators
During a legislative session, a legislator can be reached at the State Capitol through:
Otherwise, a legislator can be reached by mail, telephone or email at the address listed in the legislator’s biography, or one of the lists provided below. Individual legislator contact information is listed here:
Over the course of the session, NDBA may ask you to call your Senator or Representative to talk to them about a particular bill or to ask them to support or oppose a particular bill.
Legislator contacts from local bankers are extremely important, so, please, if we ask, contact your legislators!
Also, local legislative forums are great to attend because they inform you about issues beyond banking and let you get to know your legislators at home where they are most responsive to your interests and concerns.
Don’t be a stranger; get to know your representatives in Bismarck!