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January 9, 2023 - Update

January 9, 2023 - Update

Posted: Jan 20 2023

This Week at the Legislature

We’re off to the races!
 
The 68th Legislative Assembly convened on Tuesday, January 3. 
 
The afternoon was devoted to organization and ceremony with the swearing-in of a number of state officials and Governor Burgum’s State of the State Address.  That morning, legislators listened to the Tribal-State Relationship Message and the State of the Judiciary.  Committee hearings and agency overviews filled the remainder of the week.
 
Despite some technological challenges and processing backlogs, 338 bills have hit the system. The Legislative Council’s director has said that over 830 work orders for bill drafts have been submitted to date (including pre-filed bills), which is over 100 bills from where bill introductions were in the 2021 session. Suffice it to say, there are a lot of new legislators seemingly with lots of new ideas!

Hearings and Other Action this Week

HB 1106 – Appraisal Management Companies
The House Industry Business and Labor Committee heard HB 1106 Wednesday morning. The bill was introduced at the request of the ND Real Estate Appraiser Qualifications and Ethics Board. The bill changes the law to require that review appraisers – whether independent or an employee of an Appraisal Management Company (AMC) – must be certified or licensed in the State of North Dakota to perform appraisal reviews. Corey Kost, Chair of the Appraiser Board, testified in support. The ND Realtor Association and Home Builders Association testified in a neutral position, requesting the committee not take action allowing more time to review the proposal. The hearing was closed without committee action.
 
HB 1107 – Regulation of Real Estate Appraisers
The House Industry Business and Labor Committee heard HB 1107 Wednesday morning. A companion bill to HB 1106, HB 1107 was introduced at the request of the ND Real Estate Appraiser Qualifications and Ethics Board.  The bill is intended to update the regulatory oversite statues governing North Dakota Appraisers. Corey Kost, Chair of the Appraiser Board, explained the bill and testified in support. The ND Realtor Association and Home Builders Association testified in a neutral position, requesting the committee not take action allowing more time to review the proposal.  Of concern with both HB 1106 and HB 1107 are possible impacts on the Bank of North Dakota’s valuation program.  The hearing was closed without committee action.
 
SB 2090 – Residential Mortgage Lenders
The Senate Industry and Business Committee heard SB 2090 Wednesday morning. SB 2090 was introduced at the request of the ND Department of Financial Institutions.  The purpose of this bill is to remove residential mortgage lending from the money broker statutes and create own stand-alone statutes. Lise Kruse, Commissioner of Dept. of Financial Institutions, explained residential mortgage lending differs from other types of lending and grouping all lenders together has created confusion and difficulties for the industry to figure out which provisions apply. She testified that creating a separate chapter for residential mortgage lending will make things easier for all parties. There was no opposition, and the committee gave the bill a 5-0 do pass recommendation. The bill passed the full Senate 43-0 Friday afternoon and is now headed to the House for its consideration.
 
SB 2092 – Voluntary Liquidation of Credit Unions
The Senate Industry and Business Committee heard SB 2092 Wednesday morning. SB 2092 was introduced at the request of the ND Department of Financial Institutions. Commissioner Kruse testified in support of the bill, which deals with the voluntary liquidation of a credit union. She explained the process for voluntary liquidation of credit unions is currently in a stand-alone chapter of the code. The bill repeals the current chapter and places the liquidation process in the same chapter of code as voluntary bank liquidations. Several changes to the existing process are included to mirror the federal requirements. The bill also addresses when the department’s orders against fraud perpetrators become effective. Currently, the orders are effective upon service. With passage of this bill, orders are effective upon issuance. This also mirrors federal law. There was no opposition, and the committee gave the bill a 6 – 0 do pass recommendation. The bill passed the full Senate 43-0 Friday afternoon and is now headed to the House for its consideration.
 
SB 2119 – Regulation of Money Transmitters
The Senate Industry and Business Committee heard SB 2119 Wednesday afternoon. SB 2119 was introduced at the request of the ND Department of Financial Institutions. Commissioner Kruse testified in support of the bill, which deals with the regulation of money transmitters. The bill repeals the existing chapter and creates a new chapter in the code regarding money transmitters. Kruse explained the new chapter enacts the “Money Transmission Modernization Act,” which is a nationwide set of standards governing money transmitters. She noted the model law provides states with the tools needed to oversee money transmitters of all sizes, including those that operate globally or small businesses operating locally. There was no opposition, and the committee gave the bill a 5-0 do pass recommendation.  The bill passed the full Senate 43-0 Friday afternoon and is now headed to the House for its consideration.
 
HB 1068 – Residential Mortgage Loan Servicers
The House Industry Business and Labor Committee heard HB 1068 Wednesday afternoon. HB 1068 was introduced at the request of the ND Department of Financial Institutions. Commissioner Kruse testified in support of the bill, which deals with residential mortgage loan servicers. She explained the typical structure for residential mortgages includes a lender who originates the loan and a servicer who services the loan. Companies may originate loans, service loans, or both. In North Dakota, only the loan originators are required to have a license. HB 1068 requires servicers to also be licensed.  The Bill includes a fiscal note, which includes the addition of two FTEs. The total fiscal amount is $463,000, which covers salaries and benefits, examination travel, examiner training, and related NDIT costs. There was no opposition, and the hearing was closed without the committee acting.
 
SB 2111 – Electronic Certificate of Title
The Senate Transportation Committee heard SB 2111 Thursday morning. SB 2111 was introduced at the request of the ND Department of Transportation. Brad Schaffer, Interim Director of Department of Transportation, explained that allowing electronic form of title eliminates costs, makes the process more efficient and easier to transfer titles since most if not all title documents are stored electronically already. The bill allows for either paper or electronic form, giving lenders and owners the option of which form to use and prefer. NDBA’s Rick Clayburgh and ICBND’s Barry Haugen testified in favor of the bill.  There was no opposition, and the committee gave the bill a 5-0 do pass recommendation. It is now awaiting action by the full Senate.
 
HB 1008 – DFI Appropriation
Friday morning, the Government Operation Division of the House Appropriations Committee held its first hearing on HB 1008, the proposed appropriation for the ND Department of Financial Institutions.  DFI Commissioner Kruse explained the details underlying Governor Burgum’s suggested $10,929,465 budget for the 2023-2025 biennium. The total budget would fund 34 full-time positions.  Kruse noted the Department requested 6 additional FTEs as part of the budget process. The executive budget includes 3 FTEs covering licensing, large bank supervision, and examinations. The executive budget did not include the departments requested FTEs for cryptocurrency money transmission examinations, cybersecurity examinations, or data analytics.  She noted HB 1068, oversight of mortgage servicers, includes a fiscal note of $463,000 and 2 FTEs.  NDBA, ICBND and the Credit Unions spoke in favor of the department’s budget.  There was no opposition, and the hearing was closed without the committee acting.

Hearings This Week

01/09/2023 09:00 AM  
HB 1019
A BILL for an Act to provide an appropriation for defraying the expenses of the department of career and technical education.
House Appropriations - Education and Environment Division
Tracking

01/10/2023 09:00 AM  
HB 1047
Relating to the requirement that health insurers provide certain information to the department of health and human services.
House Human Services
Trust

01/10/2023 09:00 AM  
HB 1146
Relating to public employee fertility health benefits; to amend and reenact section 26.1-36.6-03 of the North Dakota Century Code, relating to self-insurance health plans; to provide for a report; to provide for application; to provide an expiration date; and to declare an emergency.
House Industry, Business and Labor
Trust

01/11/2023 09:00 AM  
HB 1158
Relating to the imposition of a flat income tax rate of one and one-half percent for individuals, estates, and trusts; and to provide an effective date.
House Finance and Taxation
Tracking

01/11/2023 09:30 AM  
SB 2135
Relating to assignment of dental insurance benefits; and to provide for application.
Senate Human Services
Trust

01/11/2023 10:00 AM  
SB 2140
Relating to accident and health insurance coverage of diabetes drugs and supplies; to amend and reenact section 26.1-36.6-03 of the North Dakota Century Code, relating to public employees self-insurance health plans; to provide for application; to provide an effective date; and to declare an emergency.
Senate Human Services
Trust

01/11/2023 02:30 PM  
HB 1106
Relating to appraisal management companies.
House Industry, Business and Labor
NDBA Priority

01/11/2023 02:30 PM  
HB 1095
Relating to the inclusion of comprehensive medication management services in health benefit plans.
House Industry, Business and Labor
Trust

01/12/2023 08:30 AM  
HB 1014
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.
House Appropriations - Government Operations Division
NDBA Priority

01/12/2023 02:00 PM  
HB 1014
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.
House Appropriations - Government Operations Division
NDBA Priority

01/13/2023 09:00 AM  
SB 2118
Relating to abandoned motor vehicles; and to declare an emergency.
Senate Energy and Natural Resources
Tracking

01/13/2023 10:00 AM  
HB 1108
Relating to international climate control regulations.
Senate Industry, Business and Labor 
NDBA Priority 

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!

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